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Q2 FY 2021: Revenue €2.7 billion; Segment Result €470 million; Segment Result Margin 17.4 percent; free cash flow €407 million
Outlook for Q3 FY 2021: Based on an assumed exchange rate of US$1.20 to the euro, revenue is predicted to come in between €2.6 billion and €2.9 billion. At the mid-point of the guided revenue range, the Segment Result Margin is expected to be around 18 percent
Outlook for FY 2021: Based on an assumed exchange rate of US$1.20 to the euro, revenue of around €11.0 billion (plus or minus 3 percent) is expected. At the mid-point of the guided revenue range, the Segment Result Margin is expected to come in at around 18 percent. Investments are still planned to be around €1.6 billion. Free cash flow is now anticipated to exceed €1.2 billion
Neubiberg, Germany – 4 May 2021 – Today, Infineon Technologies AG is reporting results for the second quarter of the 2021 fiscal year (period ended 31 March 2021).

"The semiconductor market is booming; electronics that help accelerate the energy transition and make work and home life easier remain in high demand. The push for digitalization continues unabated. Infineon is firmly on course to meet its targets for the current fiscal year," said Dr. Reinhard Ploss, CEO of Infineon. "Demand greatly exceeds supply for the majority of applications. Infineon's manufacturing facilities are running at full speed and we continue to invest in additional capacity. We see bottlenecks in those segments where we depend on chips supplied by foundries, especially in the case of automotive microcontrollers and IoT products. We are doing everything we can to provide our customers with the best possible support in this situation."

The Cypress Semiconductor Corporation ("Cypress") has been fully consolidated since 16 April 2020. The
comparability of current figures with those of previous periods is therefore limited.
€ in millions (unless otherwise stated) 3 months ended sequential 3 months
ended year-onyear 3 months ended 31 Mar 21 +/- in % 31 Dec 20 +/- in % 31 Mar 20
Revenue 2,700 3 2,631 36 1,986
Segment Result 470 (4) 489 72 274
Segment Result Margin (in %) 17.4% 18.6% 13.8%
Income from continuing operations 209 (18) 256 17 178
Income (loss) from discontinued operations, net of
income taxes (6) --- – --- –
Net income 203 (21) 256 14 178
Basic earnings per share (in euro) attributable to
shareholders of Infineon Technologies AG:1
Basic earnings per share (in euro) from continuing
operations 0.15 (21) 0.19 15 0.13
Basic losses per share (in euro) from discontinued
operations – – – – –
Basic earnings per share (in euro) 0.15 (21) 0.19 15 0.13
Diluted earnings per share (in euro) attributable to
shareholders of Infineon Technologies AG:1
Diluted earnings per share (in euro) from continuing
operations 0.15 (21) 0.19 15 0.13
Diluted losses per share (in euro) from discontinued
operations – – – – –
Diluted earnings per share (in euro) 0.15 (21) 0.19 15 0.13
Adjusted earnings per share (in euro) - diluted1,2 0.24 (14) 0.28 85 0.13
Gross margin (in %) 36.0% 37.4% 34.5%
Adjusted gross margin3 (in %) 39.3% 40.3% 35.6%
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 is presented on page 11.
3 The reconciliation of cost of goods sold to adjusted cost of goods sold and adjusted gross margin is presented on page 12.

Group performance in second quarter of 2021 fiscal year
In the second quarter of the 2021 fiscal year, Group revenue rose by €69 million to
€2,700 million, compared to €2,631 million in the preceding three-month period.
The 3 percent growth in revenue was driven by brisk demand, particularly in the
Automotive segment (ATV) and to a lesser extent in the Power & Sensor Systems
segment (PSS), whereas revenue generated in the Industrial Power Control (IPC)
and Connected Secure Systems (CSS) segments declined slightly.
The gross margin came in at 36.0 percent, compared to 37.4 percent in the
previous quarter. The adjusted gross margin was 39.3 percent after 40.3 percent
one quarter earlier.
The Segment Result for the second quarter amounted to €470 million, compared
to €489 million in the preceding three-month period, while the Segment Result
Margin declined to 17.4 percent. The Segment Result Margin of 18.6 percent in
the previous quarter benefitted from a number of positive non-recurring items such
as research subsidies and patent-related revenue.
The non-segment result for the second quarter was a net loss of €156 million,
compared to a net loss of €157 million in the previous quarter. The non-segment
result for the three-month period contained €89 million of cost of goods sold, €58
million of selling, general and administrative expenses and €4 million of research
and development expenses. Net other operating expenses amounting to €5 million
were also recorded in the second quarter.
Operating income for the period from January to March 2021 amounted to
€314 million, compared to €332 million in the preceding quarter.
The financial result came in at negative €42 million and was therefore down on the
negative €26 million reported for the first quarter, which had benefitted from
positive one-off items.
The tax expense increased from €49 million to €62 million quarter-on-quarter.
For the second quarter of the 2021 fiscal year, Infineon generated income from
continuing operations totaling €209 million, down on the figure of €256 million
reported for the first quarter. The loss from discontinued operations amounted to
€6 million in the second quarter, compared to a break-even result for the previous
three-month period. Net income for the second quarter was €203 million compared
with €256 million in the first quarter.
Earnings per share from continuing operations amounted to €0.15 (basic and
diluted), compared to €0.19 in the preceding three-month period. Adjusted
earnings per share1
(diluted) came in at €0.24 after €0.28 in previous quarter.
Investments – which Infineon defines as the sum of purchases of property, plant
and equipment, purchases of other intangible assets and capitalized development
costs – rose to €332 million in the second quarter of the current fiscal year,
1 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. The detailed calculation of adjusted earnings per share is presented on page 11.

compared with €283 million in the preceding three-month period. At €368 million,
depreciation and amortization remained unchanged from the previous quarter.
Free cash flow2
for the second quarter increased from €313 million to €407 million
quarter-on-quarter. Net cash provided by operating activities from continuing
operations increased to €742 million, up by €154 million compared to the previous
quarter's corresponding figure of €588 million.
At the end of the second quarter of the 2021 fiscal year, the gross cash position
stood at €3,444 million, compared to €3,334 million at 31 December 2020. Net
debt increased from €3,369 million to €3,415 million over the course of the second
quarter. Due to the increase in the exchange rate of the US dollar between the
measurement dates, financial debt increased to €6,859 million at the end of the
quarter under report, compared with €6,703 million at 31 December 2020.
Outlook for the third 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 between €2.6 billion and €2.9 billion in the third quarter of the
2021 fiscal year. Revenue growth will continue to be held down by supply
constraints, including the temporary shutdown of our manufacturing facilities in
Austin, Texas, in February, as well as capacity limitations at foundries. Taking
account of these developments, revenue in the CSS segment is expected to
decline slightly, whereas the IPC segment – which is less severely affected by
them than the other segments – is expected to grow revenue by a high single-digit
percentage rate quarter-on-quarter. Revenue generated by the ATV and PSS
segments is forecast to increase slightly. At the mid-point of the guided revenue
range, the Segment Result Margin is expected to come in at about 18 percent.
Outlook for the 2021 fiscal year
Based on its good performance in the first two quarters of the current fiscal year,
and continuously strong momentum of the semiconductor market, Infineon again
slightly raises its guidance for revenue and Segment Result Margin for the fiscal
year as a whole, despite tight capacities at foundries. Based on an unchanged
assumed exchange rate of US$1.20 to the euro, revenue is now forecast at
around €11.0 billion (plus or minus 3 percent). All segments are expected to
benefit from an improving supply situation and continued growth in demand during
2 For definitions and the calculation of free cash flow and the gross and net cash position, please see page 14

the second half of the fiscal year. At the mid-point of the guided revenue range,
the Segment Result Margin is now expected to be about 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. Also unchanged, depreciation and amortization are expected
to amount to 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. In light of strong
business performance, free cash flow is now expected to exceed €1.2 billion,
compared with the previous forecast of more than €800 million.
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.

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