DGAP-News

Infineon Technologies AG: INTERNATIONAL RECTIFIER SUCCESSFULLY INTEGRATED WITH STRONG CONTRIBUTION TO EARNINGS - Seite 2

www.infineon.com.

"The integration of International Rectifier has been a success. The
fourth-quarter margin generated by the acquired business was already 15
percent and hence in line with Infineon's target for Segment Result Margin
over the economic cycle. With that we have achieved our aim more than one
year ahead of schedule," stated Dr. Reinhard Ploss, CEO of Infineon
Technologies AG. "We will achieve further growth in revenue, earnings and
margin in the course of the current 2016 fiscal year."

REVIEW OF GROUP FINANCIALS FOR THE FOURTH QUARTER OF THE 2015 FISCAL YEAR
The Infineon Group's revenue edged up by EUR12 million or 1 percent to
EUR1,598 million in the fourth quarter of the 2015 fiscal year, compared
with EUR1,586 million in the previous quarter. The Industrial Power Control
(IPC), Power Management & Multimarket (PMM), and Chip Card & Security (CCS)
segments all contributed to revenue growth, whereas the Automotive (ATV)
segment recorded a 1 percent decrease.

The gross margin, which included depreciation and amortization related to
the purchase price allocation of EUR17 million rose to 39.0 percent
quarter-on-quarter. Gross margin in the preceding quarter was 34.8 percent.

Segment Result improved by 17 percent quarter-on-quarter from EUR245
million to EUR286 million in the fourth quarter. The fourth-quarter Segment
Result Margin came in at 17.9 percent, compared to 15.4 percent in the
preceding three-month period. The margin contributed by the businesses
acquired in conjunction with the purchase of International Rectifier,
including realized synergy benefits, has improved further since the
transaction closed in January, reaching a level of 15 percent by the final
quarter of the 2015 fiscal year. The fourth-quarter Segment Result Margin
also benefited from a favorable product mix and positive currency factors
on the cost side.

The non-segment result improved quarter-on-quarter from minus EUR126
million to minus EUR83 million in the fourth quarter of the 2015 fiscal
year. The fourth-quarter figure includes EUR62 million recognized for
depreciation and amortization related to the purchase price allocation and
other acquisition related expenses. The total amount of EUR83 million
comprises cost of goods sold (EUR28 million), research and development
expenses (EUR5 million), selling, general and administrative expenses
(EUR39 million) and other operating expenses (EUR11 million).

Operating income rose from EUR119 million in the third quarter of the 2015
fiscal year to EUR203 million in the fourth quarter. Income from continuing