- Q3 FY 2021: REVENUE €2.722 BILLION; SEGMENT RESULT €496 MILLION; SEGMENT RESULT MARGIN 18.2 PERCENT; FREE CASH FLOW €477 MILLION

- OUTLOOK FOR Q4 FY 2021: BASED ON AN ASSUMED EXCHANGE RATE OF US$1.20 TO THE EURO, REVENUE OF AROUND €2.9 BILLION IS EXPECTED. ON THIS BASIS, SEGMENT RESULT MARGIN IS FORECAST AT AROUND 19 PERCENT

- OUTLOOK FY 2021: BASED ON THE OUTLOOK FOR Q4 FY 2021, REVENUE FOR THE FULL FISCAL YEAR IS PREDICTED AT ABOUT €11 BILLION. AT THIS LEVEL, A SEGMENT RESULT MARGIN OF ABOVE 18 PERCENT IS EXPECTED. INVESTMENTS STILL EXPECTED AT APPROXIMATELY €1.6 BILLION. FREE CASH FLOW ANTICIPATED TO COME IN AROUND €1.5 BILLION

Neubiberg, Germany, 3 August 2021 - Today, Infineon Technologies AG is reporting results for the third quarter of the 2021 fiscal year (period ended 30 June 2021).

"Demand for semiconductors is unbroken, as they play a key role in enabling the energy transition and digitalization. Currently, however, the market is faced with an extremely tight supply situation," said Dr. Reinhard Ploss, CEO of Infineon. "Inventories are at a historic low; our chips are being shipped from our fabs straight into the end applications. Under these circumstances, any pandemic-related restrictions on manufacturing, such as those recently imposed in Malaysia, are especially grave. We are doing our utmost to improve matters along the entire value chain and are working as flexibly as possible in the best interests of our customers. At the same time, we are continuously building up additional capacity."

The Cypress Semiconductor Corporation ("Cypress") has been fully consolidated since 16 April 2020. The comparability of current figures with the same period of the previous year is therefore limited.

¹ The calculation for earnings per share and for adjusted earnings per share is based on unrounded figures.

² The reconciliation of net income to adjusted net income and adjusted earnings per share as well as of cost of goods sold to adjusted cost of goods sold and adjusted gross margin can be found in the quarterly information at www.infineon.com.

GROUP PERFORMANCE IN THIRD QUARTER OF 2021 FISCAL YEAR
In the third quarter of the current fiscal year, Group revenue rose by €22 million to €2,722 million, compared to €2,700 million in the preceding three-month period. Despite continued strong demand, revenue grew by only 1 percent due to pandemic-related constraints on our manufacturing capacity in Melaka, Malaysia, and the aftermath of the winter storm in Austin, Texas. These various factors have primarily affected the Automotive (ATV) and Power & Sensor Systems (PSS) segments, both of which saw a decline in revenue compared to the previous quarter. By contrast, the Industrial Power Control (IPC) and Connected Secure Systems (CSS) segments recorded revenue growth.

The gross margin improved significantly from 36.0 percent to 39.1 percent quarter-on-quarter. The adjusted gross margin for the three-month period under report came in at 41.8 percent, up from 39.3 percent in the preceding quarter.

The Segment Result increased from €470 million to €496 million quarter-on-quarter, with the Segment Result Margin rising from 17.4 percent to 18.2 percent.

The non-segment result for the third quarter was a net loss of €149 million, compared to a net loss of €156 million in the previous three-month period. The non-segment result for the quarter included €74 million of cost of goods sold, €60 million of selling, general and administrative expenses and €6 million of research and development expenses. Net other operating expenses amounting to €9 million were also recorded in the third quarter.

Operating income for the third quarter of the current fiscal year rose to €347 million, compared with €314 million in the preceding three-month period.

The financial result amounted to minus €56 million compared with minus €42 million in the previous quarter.

The tax expense added up to €49 million, down from €62 million one quarter earlier.

Income from continuing operations improved from €209 million to €245 million quarter-on-quarter. Income from discontinued operations in the third quarter was break-even, compared to a loss of €6 million in the previous three-month period. Accordingly, net income for the third quarter of the current fiscal year also amounted to €245 million, compared with €203 million one quarter earlier.

Earnings per share from continuing operations increased to €0.18 (basic and diluted), compared to €0.15 in the preceding three-month period. Adjusted earnings per share³ (diluted) improved from €0.24 to €0.27 quarter-on-quarter.

Investments - which Infineon defines as the sum of purchases of property, plant and equipment, purchases of other intangible assets and capitalized development costs - totaled €285 million in the third quarter of the 2021 fiscal year, compared with €332 million in the preceding three-month period. Depreciation and amortization increased from €368 million to €380 million quarter-on-quarter.

Free cash flow continued to improve in the third quarter of the current fiscal year, rising to €477 million, compared with €407 million in the previous quarter. Net cash provided by operating activities from continuing operations went up from €742 million to €762 million.

At the end of the third quarter, the gross cash position stood at €3,863 million, up from €3,444 million at 31 March 2021. Net debt decreased further from €3,415 million to €2,945 million over the course of the three-month period. Gross debt amounted to €6,808 million at the end of the third quarter, compared with €6,859 million at 31 March 2021.

OUTLOOK FOR THE FOURTH QUARTER OF THE 2021 FISCAL YEAR
Based on an assumed exchange rate of US$1.20 to the euro, Infineon expects to generate revenue of around €2.9 billion in the fourth quarter of the 2021 fiscal year. While demand is rising at a dynamic pace, the overall supply situation remains tight due to various factors, including the pandemic-related manufacturing restrictions in Melaka, Malaysia, at the beginning of the quarter. In light of ongoing bottlenecks, revenue generated by the ATV and IPC segments is likely to remain at a similar level to the previous quarter. The CSS segment is forecast to record a slightly higher level of revenue. PSS segment revenue is set to rise sharply, mainly due to the recovery of demand for smartphones. At the level of revenue currently forecast, the Segment Result Margin is expected to come in at about 19 percent.

OUTLOOK FOR THE 2021 FISCAL YEAR
Based on the predicted level of revenue for the fourth quarter and an assumed unchanged exchange rate of US$1.20 to the euro, revenue is expected to total around €11 billion for the full 2021 fiscal year. At this level, the Segment Result Margin is forecast to come in at above 18 percent.

Investments in property, plant and equipment, intangible assets and capitalized development costs for the 2021 fiscal year are forecast at an unchanged level of around €1.6 billion. Depreciation and amortization are also expected to remain unchanged at between €1.5 billion and €1.6 billion, of which approximately €500 million is attributable to depreciation and amortization from purchase price allocations arising mainly in connection with the acquisition of Cypress and to a lesser extent with the acquisition of International Rectifier. Free cash flow is now anticipated to come in at around €1.5 billion.

Besides geopolitical and macroeconomic factors, the economic disruption caused by the coronavirus pandemic makes accurate prediction difficult. Key factors influencing the expected development of revenue and earnings during the pandemic will be the progression of global infection rates over time, the progress of vaccination campaigns, possible restrictions on economic activities, effects on production and supply chains, and the level and effectiveness of governmental stimulus programs.

³ Adjusted net income and adjusted earnings per share (diluted) should not be seen as a replacement or superior performance indicator, but rather as additional information to the net income and earnings per share (diluted) determined in accordance with IFRS.

Infineon's segments' performance in the third quarter of the 2021 fiscal year can be found in the quarterly information at www.infineon.com.

All figures in this quarterly information are preliminary and unaudited.

ANALYST TELEPHONE CONFERENCE AND TELEPHONE PRESS CONFERENCE
The Management Board of Infineon will host a telephone conference call including a webcast for analysts and investors (in English only) on 3 August 2021 at 9:30 am (CEST), 3:30 am (EDT). During the call, the Infineon Management Board will present the Company's results for the third quarter of the 2021 fiscal year as well as the outlook for the fourth quarter and the 2021 fiscal year. In addition, the Management Board will host a telephone press conference with the media at 11:00 am (CEST), 5:00 am (EDT). It can be followed over the Internet in both English and German. Both conferences will also be available live and for download on Infineon's website at www.infineon.com/investor.

The Q3 Investor Presentation is available (in English only) at:
https://www.infineon.com/cms/en/about-infineon/investor/reports-and-presentations/

INFINEON FINANCIAL CALENDAR (* preliminary)

- 1 Sep 2021 Jefferies Annual Semiconductor Conference, Chicago (virtual)

- 2 Sep 2021 Commerzbank Corporate Conference, Frankfurt (virtual)

- 2 Sep 2021 dbAccess European TMT Conference, London (virtual)

- 5 Oct 2021 Infineon CMD "IFX Day 2021", London // virtual

- 10 Nov 2021* Earnings Release for the Fourth Quarter and the 2021
Fiscal Year

ABOUT INFINEON
Infineon Technologies AG is a world leader in semiconductor solutions that make life easier, safer and greener. Microelectronics from Infineon are the key to a better future. In the 2020 fiscal year (ending 30 September), Infineon reported revenue of more than €8.5 billion with a workforce of some 46,700 people worldwide. Following the acquisition of the US company Cypress Semiconductor Corporation in April 2020, Infineon is now a global top 10 semiconductor company.

Infineon is listed on the Frankfurt Stock Exchange (ticker symbol: IFX) and in the USA on the over-the-counter market OTCQX International Premier (ticker symbol: IFNNY). Further information is available at www.infineon.com
This press release is available online at www.infineon.com/press

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D I S C L A I M E R
This press release contains forward-looking statements about the business, financial condition and earnings performance of the Infineon Group.

These statements are based on assumptions and projections resting upon currently available information and present estimates. They are subject to a multitude of uncertainties and risks. Actual business development may therefore differ materially from what has been expected.

Beyond disclosure requirements stipulated by law, Infineon does not undertake any obligation to update forward-looking statements.

Due to rounding, numbers presented throughout this press release and other reports may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

All figures mentioned in this press release are unaudited