DGAP-News

Infineon Technologies AG: INFINEON POSTS SOLID FOURTH-QUARTER EARNINGS AND PROPOSES A DIVIDEND OF EUR0.18 PER SHARE - Seite 2

Infineon's Management Board and Supervisory Board want shareholders to
participate in this success and are therefore proposing a dividend of
EUR0.18 per share," stated Dr. Reinhard Ploss, CEO of Infineon Technologies
AG. "Despite a challenging market environment, we plan to continue growing
in the current 2015 fiscal year - in addition to growth resulting from the
planned acquisition of International Rectifier."

GROUP EARNINGS IN THE FOURTH QUARTER OF THE 2014 FISCAL YEAR
Revenue generated by the Infineon Group grew by 6 percent in the fourth
quarter of the 2014 fiscal year to EUR1,175 million, compared with EUR1,110
million in the preceding quarter. Revenue growth was particularly strong in
the Industrial Power Control (IPC), Power Management & Multimarket (PMM)
and Chip Card & Security (CCS) segments. From the strong revenue base
achieved in the preceding quarters, revenue for the Automotive (ATV)
segment grew by a further 2 percent.

Segment Result also increased on the back of this revenue growth, rising by
11 percent from EUR170 million in the preceding quarter to EUR188 million
in the fourth quarter of the 2014 fiscal year, with the Segment Result
Margin improving from 15.3 percent to 16.0 percent.

Income from continuing operations increased slightly from EUR143 million to
EUR148 million in the fourth quarter of the 2014 fiscal year. In addition
to the improved Segment Result, two other factors influenced this
development. On the one hand, operating income decreased from EUR165
million in the third quarter to EUR118 million in the fourth quarter,
mainly resulting from a fine of EUR83 million imposed by the European
Commission in conjunction with antitrust proceedings against several
manufacturers of semiconductors used in chip card applications (expense
recorded in other operating expenses). A tax benefit of EUR29 million
resulting from the revaluation of deferred tax assets on tax loss
carry-forwards worked in the opposite direction.

The result from discontinued operations improved from nil in the third
quarter to EUR33 million in the fourth quarter, primarily due to the
partial reversal of provisions to reflect the partial settlement reached
with the insolvency administrator of Qimonda AG in September.

Fourth-quarter net income improved to EUR181 million, following on from the
EUR143 million recorded in the previous quarter. Earnings per share (basic
and diluted) increased from EUR0.13 in the third quarter to EUR0.16 in the
fourth 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 EUR242 million in the fourth quarter and