143 Consolidated Financial Statements 144 Consolidated Statement of Profit or Loss 144 Consolidated Statement of Comprehensive Income 145 Consolidated Statement of Financial Position 146 Consolidated Statement of Cash Flows 147 Consolidated Statement of Changes in Equity 148 Notes to the Consolidated Financial Statements Infineon Technologies | Annual Report 2020 144 Consolidated Statement Consolidated Statement of Profit or Loss of Comprehensive Income for the fiscal years ended 30 September 2020 and 2019 for the fiscal years ended 30 September 2020 and 2019 € in millions Notes 2020 2019 € in millions Notes 2020 2019 Revenue 4 8,567 8,029 21 Cost of goods sold 4 (5,791) (5,035) Net income 368 870 Gross profit 2,776 2,994 Actuarial gains (losses) on pension plans and similar commitments ¹ 21 (153) Research and development expenses 4 (1,113) (945) Total items not expected to be reclassified to profit or loss in the future 21 (153) Selling, general and administrative expenses 4 (1,042) (865) Currency translation effects (543) 85 Other operating income 76 56 Net change in fair value of hedging instruments (213) 155 Other operating expenses (116) (79) Cost of hedging 42 (42) Operating income 581 1,161 Total items expected to be reclassified to profit or loss in the future (714) 198 Financial income 4 29 26 Other comprehensive income (loss), net of tax (693) 45 Financial expenses 4 (177) (98) Total comprehensive income (loss), net of tax (325) 915 Loss from investments accounted for using the equity method 5 (9) (6) Attributable to: Income from continuing operations before income taxes 424 1,083 Shareholders and hybrid capital investors of Infineon Technologies AG (325) 915 Income tax 6 (52) (194) 1 Contains gains from investments accounted for using the equity method in the 2020 fiscal year of €0 miillion (2019: losses €2 million). Income from continuing operations 372 889 Loss from discontinued operations, net of income taxes 7 (4) (19) Net income 368 870 Attributable to: Shareholders and hybrid capital investors of Infineon Technologies AG 368 870 Basic earnings per share (in euro) attributable to shareholders of Infineon Technologies AG: ¹ Basic earnings per share (in euro) from continuing operations 8 0.26 0.77 Basic earnings (loss) per share (in euro) from discontinued operations 8 – (0.02) Basic earnings per share (in euro) 8 0.26 0.75 Diluted earnings per share (in euro) attributable to shareholders of Infineon Technologies AG: ¹ Diluted earnings per share (in euro) from continuing operations 8 0.26 0.77 Diluted earnings (loss) per share (in euro) from discontinued operations 8 – (0.02) Diluted earnings per share (in euro) 8 0.26 0.75 1 The calculation of earnings per share is based on unrounded figures. Infineon Technologies | Annual Report 2020 145 Consolidated Statement of Financial Position as of 30 September 2020 and 2019 Notes 30 Septem- 30 Septem- Notes 30 Septem- 30 Septem- € in millions ber 2020 ber 2019 € in millions ber 2020 ber 2019 ASSETS LIABILITIES AND EQUITY Cash and cash equivalents 1,851 1,021 Short-term financial debt and current portion Financial investments 9 1,376 2,758 of long-term financial debt 17 505 22 Trade receivables 10 1,196 1,057 Trade payables 1,160 1,089 Inventories 11 2,052 1,701 Current provisions 18 436 383 Current income tax receivables 6 77 83 Current income tax payables 6 340 144 Contract assets 12 97 91 Current leasing liabilities 16 59 – Other current assets 13 530 770 Other current liabilities 19 950 575 Assets classified as held for sale – 12 Total current liabilities 3,450 2,213 Total current assets 7,179 7,493 Long-term financial debt 17 6,528 1,534 Property, plant and equipment 14 4,110 3,510 Pension plans and similar commitments 20 739 733 Goodwill 15 5,897 909 Deferred tax liabilities 6 293 20 Other intangible assets 14 3,621 896 Non-current provisions 18 313 283 Right-of-use assets 16 286 – Non-current leasing liabilities 16 235 – Investments accounted for using the equity method 5 87 29 Other non-current liabilities 28 222 165 Non-current income tax receivables 6 1 – Total non-current liabilities 8,330 2,735 Deferred tax assets 6 627 599 Total liabilities 11,780 4,948 Other non-current assets 28 191 145 Equity: 21 Total non-current assets 14,820 6,088 Ordinary share capital 2,612 2,501 Additional paid-in capital 6,462 5,494 Hybrid capital 1,203 – Retained earnings 435 421 Other reserves (460) 254 Own shares (33) (37) Total equity 10,219 8,633 Total assets 21,999 13,581 Total liabilities and equity 21,999 13,581 Infineon Technologies | Annual Report 2020 146 Consolidated Statement of Cash Flows for the fiscal years ended 30 September 2020 and 2019 € in millions Notes 2020 2019 € in millions Notes 2020 2019 27 Purchases of financial investments 9 (6,045) (3,760) Net income 368 870 Proceeds from sales of financial investments 9 7,417 2,836 Plus: loss from discontinued operations, net of income taxes 4 19 Acquisitions of businesses, net of cash acquired 3 (7,433) (123) Adjustments to reconcile net income to net cash Proceeds from sales of businesses and interests in subsidiaries, provided by operating activities: net of cash disbursed (1) – Depreciation and amortization 14, 16 1,260 945 Investments in related companies 3 (44) (5) Income tax 6 52 194 Purchases of other intangible assets and other assets 14 (184) (156) Net interest result 4 101 36 Purchases of property, plant and equipment 14 (915) (1,295) Gains on disposals of property, plant and equipment (22) (11) Proceeds from sales of property, plant and equipment and other assets 33 15 Loss from sale of RF power business – 1 Net cash used in investing activities from continuing operations (7,172) (2,488) Dividends received 5 2 – Net cash used in investing activities from discontinued operations – – Impairment charges/reversals of impairments 14, 15, 30 12 6 Net cash used in investing activities (7,172) (2,488) Other non-cash result 56 16 Net change in related party financial receivables and payables 26 – (14) Change in trade receivables 10 46 71 Proceeds from issuance of long-term financial debt 17 9,815 1 Change in inventories 11 124 (239) Repayments of long-term financial debt 17 (5,372) (23) Change in trade payables (71) (109) Payments for leasing liabilities 16 (63) – Change in provisions 18 65 (25) Payments for financing-related derivatives 4 – (41) Change in other assets and liabilities – (4) Deposits for financing-related derivatives 4 25 19 Interest received 4 17 25 Proceeds from issuance of ordinary shares 21 1,043 1,530 Interest paid 4 (129) (67) Cash outflows due to changes of non-controlling interests (2) – Income tax paid 6 (68) (125) Dividend payments 21 (336) (305) Net cash provided by operating activities from continuing operations 1,817 1,603 Proceeds from hybrid capital 21 1,184 – Net cash used in operating activities from discontinued operations (6) (2) Cash outflow to hybrid capital investors 21 (20) – Net cash provided by operating activities 1,811 1,601 Net cash provided by financing activities from continuing operations 6,274 1,167 Net cash provided by financing activities from discontinued operations – – Net cash provided by financing activities 6,274 1,167 Net change in cash and cash equivalents 913 280 Effect of foreign exchange rate changes on cash and cash equivalents (83) 9 Cash and cash equivalents at beginning of period 1,021 732 Cash and cash equivalents at end of period 1,851 1,021 Infineon Technologies | Annual Report 2020 147 Consolidated Statement of Changes in Equity for the fiscal years ended 30 September 2020 and 2019 Notes Ordinary shares issued Additional Hybrid capital Retained Other reserves Own shares Total equity paid-in earnings Shares Amount capital (accumulated Foreign Hedges Cost of deficit) currency hedging translation € in millions, except for number of shares adjustment 21 Balance as of 30 September 2018 1,136,995,834 2,274 4,486 – (333) 59 (3) – (37) 6,446 Effects from the transition to IFRS 9 and IFRS 15 – – – – 37 – – – – 37 Balance as of 1 October 2018 1,136,995,834 2,274 4,486 – (296) 59 (3) – (37) 6,483 Net income – – – – 870 – – – – 870 Other comprehensive income (loss), net of tax – – – – (153) 85 155 (42) – 45 Total comprehensive income (loss), net of tax – – – – 717 85 155 (42) – 915 Dividends – – (305) – – – – – – (305) Issuance of ordinary shares: Exercise of stock options 914,314 1 4 – – – – – – 5 Share-based compensation 23 – – 10 – – – – – – 10 Capital increase 112,773,923 226 1,299 – – – – – – 1,525 Balance as of 30 September 2019 1,250,684,071 2,501 5,494 – 421 144 152 (42) (37) 8,633 Balance as of 1 October 2019 1,250,684,071 2,501 5,494 – 421 144 152 (42) (37) 8,633 Net income – – – 39 329 – – – – 368 Other comprehensive income (loss), net of tax – – – – 21 (543) (213) 42 – (693) Total comprehensive income (loss), net of tax – – – 39 350 (543) (213) 42 – (325) Dividends – – – – (336) – – – – (336) Issuance of ordinary shares: Exercise of stock options 237,066 1 1 – – – – – – 2 Emission hybrid capital – – – 1,184 – – – – – 1,184 Compensations to hybrid capital investors – – – (20) – – – – – (20) Share-based compensation 23 – – 11 – – – – – – 11 Capital increase 55,000,000 110 934 – – – – – – 1,044 Purchase of own shares – – – – – – – – 4 4 Other changes in equity – – 22 – – – – – – 22 Balance as of 30 September 2020 1,305,921,137 2,612 6,462 1,203 435 (399) (61) – (33) 10,219 Infineon Technologies | Annual Report 2020 148 Notes to the Consolidated Financial Statements The Infineon Group (“Infineon”) comprising Infineon Technologies AG (“the Company”) The fiscal year end for both Infineon and the Company is 30 September of each year.