DGAP-News

Infineon Technologies AG: INFINEON POSTS SOLID FOURTH-QUARTER EARNINGS AND PROPOSES A DIVIDEND OF EUR0.18 PER SHARE - Seite 3

were thus significantly higher than the previous quarter's figure of EUR144
million. Depreciation and amortization increased slightly from EUR131
million in the third quarter to EUR137 million in the fourth.

Free cash flow from continuing operations increased significantly
quarter-on-quarter from EUR78 million to EUR158 million. The considerably
higher level of net cash provided by operating activities was only partly
reduced by increased investments.

Due to the strong free cash flow, the gross cash position amounted to
EUR2,418 million at September 30, 2014, compared with EUR2,263 million at
the end of June 2014. The net cash position also improved over the same
period from EUR2,073 million to EUR2,232 million.

DIVIDEND FOR THE 2014 FISCAL YEAR: EUR0.18 PER SHARE
The Management Board and the Supervisory Board of Infineon Technologies AG
have decided to put forward a proposal at the Annual General Meeting (to be
held in Munich on February 12, 2015) that the dividend for the 2014 fiscal
year be raised by EUR0.06 to EUR0.18. This proposed level of dividend is at
the upper end of the range of EUR0.16 to EUR0.18 per share communicated in
May 2014.

Infineon's strategy is to pursue a dividend policy that enables
shareholders to participate appropriately in growing earnings or, in times
of flat or declining earnings and/or with negative free cash flows, to keep
the dividend at a constant level.

OUTLOOK FOR FIRST QUARTER OF 2015 FISCAL YEAR
Due to the seasonal decline of demand towards the end of the calendar year,
Infineon expects revenue to decrease by between 5 and 9 percent in the
first quarter of the 2015 fiscal year. The first-quarter Segment Result
Margin is forecast to come in at between 10 and 13 percent. Revenue is
expected to be lower in all four segments, with ATV recording the smallest
decrease in percentage terms.

OUTLOOK FOR THE 2015 FISCAL YEAR
For the 2015 fiscal year, based on an assumed exchange rate of US$1.30 to
the euro, Infineon forecasts a year-on-year growth in revenue of 8 percent,
plus or minus 2 percentage points. At the mid-point of the planned range
for revenue growth, the Segment Result Margin is expected to be about 14
percent.

The ATV, PMM and CCS segments are forecast revenue to grow either in line
with or slightly faster than the average for the Group as a whole. Revenue
growth in the IPC segment is expected to be significantly below the Group
average. Planned investments for the 2015 fiscal year are around EUR700
million, containing an amount of about 13 percent of sales for investments
for equipment within our operating facilities and for intangibles as one
part. In addition between EUR60 and EUR70 million will be spent for