DGAP-News: Infineon Technologies AG / Key word(s): Quarter Results/Forecast Infineon Technologies AG: SOLID START INTO 2016 FISCAL YEAR 02.02.2016 / 07:30 The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- - Q1 FY 2016: REVENUE OF EUR1,556 MILLION; SEGMENT RESULT EUR220 MILLION; SEGMENT RESULT MARGIN 14.1 PERCENT - OUTLOOK FOR Q2 FY 2016: QUARTER-ON-QUARTER REVENUE INCREASE OF 3 PERCENT (PLUS OR MINUS 2 PERCENTAGE POINTS), WITH SEGMENT RESULT MARGIN OF 13 PERCENT AT MID-POINT OF REVENUE RANGE - OUTLOOK FOR FINANCIAL YEAR 2016 CONFIRMED Neubiberg, Germany, February 2, 2016 - Infineon Technologies AG today reported results for the first quarter of the 2016 fiscal year (period ended December 31, 2015).

in Euro million                                 Q1 FY16   Q4 FY15  +/- in %

Revenue                                           1,556     1,598       (3)
Segment Result                                      220       286      (23)
Segment Result Margin [in %]                       14.1      17.9
Income (loss) from continuing operations            152       322      (53)
Income (loss) from discontinued operations,           -         3       ---
net of income taxes
Net income                                          152       325      (53)

in Euro
Basic earnings (loss) per share from               0.14      0.29      (52)
continuing operations1
Basic earnings (loss) per share from                  -         -         -
discontinued operations1
Basic earnings per share1                          0.14      0.29      (52)

Diluted earnings (loss) per share from             0.14      0.29      (52)
continuing operations1
Diluted earnings (loss) per share from                -         -         -
discontinued operations1
Diluted earnings per share1                        0.14      0.29      (52)

Adjusted earnings per share diluted2               0.17      0.16         6

1 The calculation for earnings per share is based on unrounded figures. 2 The reconciliation of net income to adjusted net income and adjusted earnings per share can be found in the quarterly information at www.infineon.com. "Our business performed better than expected in the past quarter. Infineon's broad diversification in terms of customers, markets and regions is paying off," stated Dr. Reinhard Ploss, CEO of Infineon Technologies AG. "We are doing particularly well in the automotive business, where Infineon's leading expertise is prevailing. Our solutions for driver assistance systems continue to generate growth. Electromobility is gaining momentum as well." REVIEW OF GROUP FINANCIALS FOR THE FIRST QUARTER OF THE 2016 FISCAL YEAR At EUR1,556 million, the Infineon Group's revenue totaled EUR42 million or 3 percent lower in the first quarter of the current fiscal year due to seasonal factors, down from EUR1,598 million in the fourth quarter of the 2015 fiscal year. The Industrial Power Control (IPC), Power Management & Multimarket (PMM) and Chip Card & Security (CCS) segments all reported decreases, whereas the Automotive segment (ATV) recorded revenue essentially flat compared to the previous quarter. The revenue decrease caused the gross margin to decline from 39.0 percent to 35.9 percent quarter-on-quarter. Acquisition-related depreciation, amortization and other with the acquisition of International Rectifier related expenses totaling EUR27 million were recorded in the first quarter. The first-quarter Segment Result amounted to EUR220 million, 23 percent down on the EUR286 million reported for the preceding three-month period. The Segment Result Margin came in at 14.1 percent, in line with guidance, compared with the previous quarter's 17.9 percent. The decreases in Segment Result and Segment Result Margin were primarily attributable to the seasonal drop in revenue, a less favorable product mix and currency effects on the cost side. The negative non-segment result continued to improve, from negative EUR83 million in the fourth quarter 2015 to negative EUR54 million in the first quarter of the current fiscal year. Of the first-quarter figure, EUR29 million related to cost of goods sold, EUR4 million to research and development expenses and EUR26 million to selling, general and administrative expenses. Other operating income respectively expenses net amounted to positive EUR5 million. The non-segment result includes a balanced amount of EUR45 million of depreciation and amortization arising in conjunction with the purchase price allocation and other expenses related to the acquisition of International Rectifier. Operating income decreased from EUR203 million in the fourth quarter to EUR166 million in the first quarter of the 2016 fiscal year. Income from continuing operations fell to EUR152 million, partly reflecting the fact that the fourth quarter figure of EUR322 million had included a net income tax benefit of EUR131 million. Income from discontinued operations amounted to EUR0 million, compared to EUR3 million in the preceding quarter. Net income was EUR152 million, compared with EUR325 million in the fourth quarter. Earnings per share (basic and diluted) fell from EUR0.29 to EUR0.14 quarter-on-quarter. Adjusted earnings per share* (diluted) increased from EUR0.16 in the fourth quarter of the 2015 fiscal year to EUR0.17 in the first quarter of the current year. For the purpose of calculating adjusted earnings per share (diluted), a number of items were eliminated, most notably acquisition-related depreciation/amortization and other expenses (net of tax) as well as reversals of valuation allowances on deferred tax assets. (*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.) Investments - which Infineon defines as the sum of purchases of property, plant and equipment, purchases of intangible assets and capitalized development costs - totaled EUR167 million, compared to EUR279 million in the fourth quarter of the previous fiscal year. At EUR211 million, depreciation and amortization remained unchanged compared to the fourth quarter. Free cash flow from continuing operations declined to break-even for the first quarter, in line with forecast. The equivalent figure for the previous three-month period was EUR177 million. Net cash provided by operating activities from continuing operations amounted to EUR175 million, compared to the previous quarter's EUR429 million. The gross cash position stood at EUR1,994 million at December 31, 2015, slightly down on the EUR2,013 million reported at the end of the fourth quarter. Similarly, the net cash position was also lower, falling from EUR220 million at September 30, 2015 to EUR204 million at December 31, 2015. OUTLOOK FOR THE SECOND QUARTER OF THE 2016 FISCAL YEAR In the second quarter of the 2016 fiscal year, Infineon expects a quarter-on-quarter revenue increase of 3 percent (plus or minus 2 percentage points). This forecast is based on an assumed exchange rate of US$1.10 to the euro. At the mid-point of the revenue range, the Segment Result Margin is expected to come in at approximately 13 percent. OUTLOOK FOR THE 2016 FISCAL YEAR Based on an assumed average exchange rate of US$1.10 to the euro, Infineon expects an unchanged year-on-year revenue growth of around 13 percent (plus or minus 2 percentage points) for the 2016 fiscal year and a Segment Result Margin of 16 percent at the mid-point of the range for the forecast revenue growth. The Power Management & Multimarket segment is expected to grow faster than the Group average. Revenue growth in the Industrial Power Control segment is forecast to be roughly in line with the Group average. The Automotive and Chip Card & Security segments are both expected to report growth below the Group average. The forecast includes the financial figures of International Rectifier for the full fiscal year. The results of operations for the 2015 fiscal year included figures for International Rectifier with effect from the closing of the acquisition on January 13, 2015. Investments in property, plant and equipment, intangible assets and capitalized development costs in the region of EUR850 million are planned for the 2016 fiscal year. The ratio for investments as a percentage of revenue (at the mid-point of the forecast range) is forecast at 13 percent. Depreciation and amortization are also expected to be in the region of EUR850 million. Infineon segments' performance in the first quarter and the 2016 fiscal year can be found in the quarterly information at www.infineon.com. All figures in this quarterly information are preliminary and unaudited. ANALYST AND PRESS TELEPHONE CONFERENCE Infineon will host a telephone conference call for analysts and investors (in English only) on February 2, 2016 at 9:30 am (CET), 3:30 am (EST). During the call, the Infineon Management Board will present the Company's results for the first quarter of the 2016 fiscal year. In addition, the Management Board will host a telephone conference with the media at 11:00 am (CET), 5:00 am (EST). 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 Q1 Investor Presentation is available (in English only) at: www.infineon.com/cms/en/about-infineon/investor/reporting/ INFINEON FINANCIAL CALENDAR (*preliminary) - Feb 18, 2016 Annual General Meeting 2016, Munich - Feb 23, 2016 Meetings at Mobile World Congress, Barcelona - Mar 1 - 2, 2016 Morgan Stanley TMT Conference, San Francisco - Mar 9, 2016 UBS European Technology Conference, London - May 3, 2016* Earnings Release for the Second Quarter of the 2016 Fiscal Year - May 30, 2016 Danske Bank German Corporate Day, Copenhagen - Jun 8 - 9, 2016 Deutsche Bank German, Suisse & Austrian Conference, Berlin - Jun 20, 2016 JPMorgan CEO Conference, London - Aug 2, 2016* Earnings Release for the Third Quarter of the 2016 Fiscal Year - Nov 30, 2016* Earnings Release for the Fourth Quarter and 2016 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 2015 fiscal year (ending September 30), the Company reported sales of about Euro 5.8 billion with some 35,400 employees worldwide. 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.com/Infineon - facebook.com/Infineon - plus.google.com/+Infineon 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. --------------------------------------------------------------------------- 02.02.2016 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: Infineon Technologies AG Am Campeon 1-12 85579 Neubiberg Germany Phone: +49 (0)89 234-26655 Fax: +49 (0)89 234-955 2987 E-mail: [email protected] Internet: www.infineon.com ISIN: DE0006231004 WKN: 623100 Indices: DAX Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart; Terminbörse EUREX End of News DGAP News Service --------------------------------------------------------------------------- 433887 02.02.2016