- Q2 FY 2020: REVENUE OF €1,986 MILLION; SEGMENT RESULT €274 MILLION; SEGMENT RESULT MARGIN 13.8 PERCENT.

- ACQUISITION OF CYPRESS SUCCESSFULLY CONCLUDED. INFINEON IS DEVELOPING INTO A LEADING PROVIDER OF SYSTEMS SOLUTIONS FOR AUTOMOTIVE, INDUSTRIAL AND THE INTERNET OF THINGS (IOT), TURNING INTO ONE OF THE WORLD'S TOP 10 SEMICONDUCTOR MANUFACTURERS.

- OUTLOOK FOR FY 2020: BASED ON AN ASSUMED EXCHANGE RATE OF US$1.10 TO THE EURO, REVENUE IS EXPECTED TO BE AROUND €7.6 BILLION EXCLUDING CYPRESS AND AROUND €8.4 BILLION INCLUDING CYPRESS, PLUS OR MINUS 5 PERCENT. AT THE FORECASTED LEVEL OF REVENUE, THE SEGMENT RESULT MARGIN FOR THE COMBINED COMPANY IS PREDICTED TO COME IN AT AROUND 12 PERCENT.

- OUTLOOK FOR Q3 FY 2020: BASED ON AN ASSUMED EXCHANGE RATE OF US$1.10 TO THE EURO, REVENUE FOR THE COMBINED COMPANY IS EXPECTED TO BE BETWEEN €1.9 BILLION AND €2.3 BILLION. AT THE MIDPOINT OF THE GUIDED REVENUE RANGE, THE SEGMENT RESULT MARGIN FOR THE COMBINED COMPANY IS PREDICTED TO COME IN AT A POSITIVE MID-SINGLE DIGIT PERCENT LEVEL.

Neubiberg, Germany - 4 May 2020 - Infineon Technologies AG is today reporting results for the second quarter of the 2020 fiscal year (period ended 31 March 2020).

"The world is in the midst of a crisis of hitherto unseen proportions. The effects of the coronavirus pandemic are unprecedented, and the semiconductor industry is significantly feeling the impact. Also Infineon is not immune to such a massive slump in the global economy," said Dr. Reinhard Ploss, CEO of Infineon. "Our company is accustomed to coping with crisis situations. Despite all the difficulties, whether supply chain-related or in manufacturing, we have largely been able to maintain our operations in recent weeks. We also put cost-containment measures in place at an early stage. Nevertheless, the outlook for the second half of the fiscal year has significantly deteriorated. We expect a sharp drop in revenue in the Automotive segment. We are monitoring the situation in our target markets very closely and are prepared to respond swiftly to a variety of possible scenarios," Ploss continued. "Even in difficult times, Infineon continues to evolve. With the successful acquisition of Cypress, we are taking a major step forward in implementing our strategy of linking the real with the digital world."

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.

With effect from the beginning of 2020 fiscal year, Infineon is applying IFRS 16 (Leases) using the modified retrospective approach. As a result, prior periods are not adjusted to the new accounting policy. Overall, the first-time application of this Standard has not had any material impact.

GROUP PERFORMANCE IN SECOND QUARTER OF 2020 FISCAL YEAR
Group revenue grew from €1,916 million to €1,986 million quarter-on-quarter, with all four segments - Automotive (ATV), Industrial Power Control (IPC), Power & Sensor Systems (PSS)³ and Digital Security Solutions (DSS) - contributing to the 4 percent increase.

The gross margin came in at 34.5 percent, compared to 37.0 percent in the previous quarter. The second quarter included expenses totaling €21 million for various items, including acquisition-related depreciation and amortization and other expenses mainly connected with the earlier acquisition of International Rectifier. The adjusted gross margin decreased from 37.9 percent to 35.6 percent quarter-on-quarter. The second-quarter Segment Result amounted to €274 million, compared to the previous quarter's €297 million, while the Segment Result Margin for the three-month period declined from 15.5 percent to 13.8 percent. In the first quarter, both the gross margin and the Segment Result Margin benefited from a positive nonrecurring effect of approximately €36 million arising in connection with the refined allocation of centralized, production-related overhead costs. Excluding this exceptional factor, the first-quarter Segment Result Margin would have amounted to 13.6 percent.

The non-segment result for the second quarter was a net loss of €48 million, compared to a net loss of €31 million for the previous three-month period. The non-segment result included €21 million of cost of goods sold, €18 million of selling, general and administrative expenses and €2 million of research and development expenses. In addition, net other operating expenses amounting to €7 million arose in the second quarter.

Operating income for the second quarter totaled €226 million, compared to €266 million in the preceding three-month period.

The financial result amounted to a net negative amount of €27 million, which included an expense of €10 million arising on interest rate hedges put in place in connection with the refinancing of the Cypress acquisition. The first-quarter financial result had been a net negative amount of €13 million.

Income tax expense in the second quarter of the 2020 fiscal year declined to €21 million, compared to €43 million in the previous quarter.

Income from continuing operations fell to €178 million in the second quarter, compared to €210 million in the preceding three-month period. As in the first quarter, income from discontinued operations in the second quarter was zero. For this reason, second-quarter net income also amounted to €178 million, compared to €210 million one quarter earlier.

Earnings per share from continuing operations for the second quarter amounted to €0.13 (basic and diluted), compared to €0.16 per share in the previous quarter. Second-quarter adjusted earnings per share⁴ (diluted) amounted to €0.13, down from €0.17 quarter-on-quarter.

Investments - which Infineon defines as the sum of purchases of property, plant and equipment, purchases of intangible assets, and capitalized development costs - amounted to €247 million in the second quarter of the 2020 fiscal year, down from €255 million in the preceding three-month period. Depreciation and amortization amounted to €249 million, almost unchanged from the previous quarter's figure of €250 million.

Free cash flow from continuing operations improved to €108 million in the second quarter of the 2020 fiscal year, turning positive again after the previous quarter's negative free cash flow of €86 million. Net cash provided by operating activities from continuing operations in the second quarter amounted to €354 million, compared to €183 million in the previous three-month period.

The gross cash position amounted to €4,588 million at 31 March 2020, compared to €4,859 million at 31 December 2019. The decrease mainly reflects the dividend paid in February 2020 amounting to €0.27 per share or €336 million in total, which was partially offset by the positive free cash flow. The net cash position decreased from €3,328 million to €3,051 million over the three-month period.

ACQUISITION OF CYPRESS SUCCESSFULLY CONCLUDED
Infineon received all the regulatory approvals required for the acquisition of Cypress Semiconductor Corporation in early April 2020, enabling the transaction to be successfully completed on 16 April 2020. On 3 June 2019, Infineon and Cypress had announced the signing of a purchase agreement under which Infineon offered to acquire Cypress for US$23.85 per share in cash, corresponding to an enterprise value of €9.0 billion. To finance the transaction, Infineon used its cash on hand alongside an acquisition financing facility provided by a consortium of banks.

Cypress' businesses will be allocated to Infineon's segments as at the date of acquisition and accounted for accordingly from the fiscal third quarter onwards. Infineon plans to publish combined figures in accordance with IFRS for the first time when the results for the quarter ending 30 June 2020 are announced.

OUTLOOK FOR THE 2020 FINANCIAL YEAR
Based on an assumed exchange rate of US$1.10 to the euro and for the former scope of operations, i.e. excluding Cypress, Infineon expects to generate revenues of around €7.6 billion in the 2020 fiscal year. This level of revenue would represent a 5 percent decrease compared to the previous year fiscal year. Cypress gets consolidated for the first time effective 16 April 2020 and is expected to generate revenue of around €0.8 billion during the remainder of the 2020 fiscal year, as a result of which Infineon's total revenue including Cypress would be around €8.4 billion, plus or minus 5 percent. The economic upheavals caused by the coronavirus pandemic make it extremely difficult to provide a reliable forecast. The outlook is therefore subject to a high degree of uncertainty. Key factors influencing the above-mentioned revenue figures are the trajectory of global infection rates and the revamping of economic activities, particularly in the automotive industry. The level and effectiveness of government support programs will also play an important role.

Based on the forecast level of revenue of €8.4 billion for the 2020 fiscal year, Infineon expects a Segment Result Margin of around 12 percent. The respective existing businesses of Infineon and Cypress are likely to contribute roughly proportionately to this level of profitability. Benefits from synergies are not expected to have a noticeable effect in the short term. The Automotive segment will be most heavily impacted by the coronavirus pandemic and - excluding the business activities of Cypress - is predicted to report a significant drop in revenue compared to the previous fiscal year. The Industrial Power Control and Digital Security Solutions segments are likely to report slightly lower revenues year-on-year. The Power & Sensor Systems segment is predicted to generate revenues slightly above those of the 2019 fiscal year, in each case excluding the contributions from Cypress.

For the combined company, investments in property, plant and equipment and intangible assets including capitalized development costs in the 2020 fiscal year are forecast at around €1.2 billion to €1.3 billion. Hence the investment level will be taken down slightly, despite the integration of Cypress, as Infineon is reducing its expenditures for its former business. Depreciation and amortization are likely to be in the region of €1 billion. However, this figure does not yet include the effects of the purchase price allocation for Cypress, as this information is not yet available.

Free cash flow for the combined company will be strongly negatively impacted by the acquisition of Cypress and by the consequences of the coronavirus pandemic and hence foreseeably turn significantly negative. Excluding cash outs in relation to the acquisition of Cypress, free cash flow is forecast to come in between a positive €100 million and €300 million.

OUTLOOK FOR THE THIRD QUARTER OF THE 2020 FISCAL YEAR
Based on an assumed exchange rate of US$1.10 to the euro in the third quarter of the 2020 fiscal year, Infineon expects revenues for the combined company to be between €1.9 billion and €2.3 billion. At the mid-point of the expected revenue range for the combined company, the Segment Result Margin is predicted to be equivalent to a positive mid-single digit percentage.

³ Effective 1 April 2020, the "Power Management & Multimarket" segment was renamed "Power & Sensor Systems". However, the change in name has no impact on Infineon's organizational structure, strategy or scope of business.
⁴ 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 second quarter of the 2020 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 5 May 2020 at 9:30 am (CEST), 3:30 am (EDT). During the call, the Infineon Management Board will present the Company's results for the second quarter and the outlook for the third quarter and the 2020 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 Q2 Investor Presentation is available (in English only) at:
https://www.infineon.com/cms/en/about-infineon/investor/reports-and-presentations/

INFINEON FINANCIAL CALENDAR (* preliminary)

- 7 May 2020 Call Industrial Power Control, Business Update

- 13 - 14 May 2020 JPM Global Technology, Media & Communications Conference, Boston (virtual)

- 19 May 2020 JPM European TMT CEO Conference, London (virtual)

- 27 May 2020 Equita Conference 2020, Milan (virtual)

- 27 May 2020 UBS Best of Europe 1-1 Conference, New York (virtual)

- 3 - 4 Jun 2020 Deutsche Bank German, Swiss & Austrian Conference, Berlin (virtual)

- 9 - 10 Jun 2020 Exane 22^nd European CEO Conference, Paris (virtual)

- 4 Aug 2020* Earnings Release for the Third Quarter of the 2020
Fiscal Year

- 21 Sep 2020 Berenberg Goldman Sachs German Corporate Conference, Unterschleißheim (nearby Munich)

- 22 Sep 2020 Baader Investment Conference, Munich

- 6 Oct 2020 Automotive Call

- 9 Nov 2020* Earnings Release for the Fourth Quarter and the 2020
Fiscal Year

ABOUT INFINEON
Infineon Technologies AG is a world leader in semiconductor solutions that make life easier, safer and greener. Microelectronics from Infineon is the key to a better future. In the 2019 fiscal year (ending 30 September), the Company reported sales of €8.0 billion with around 41.400 employees worldwide. With the acquisition of US-based Cypress Semiconductor Corporation in April 2020, Infineon has become 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

Follow us: Twitter - Facebook - LinkedIn

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.