Automotive

Ugo CarenaCorporate Vice President

Automotive Products Group (APG)

0

200

400

600

800

1000

1200

1400

2002 2003 2004 2005 2006 (*)0

5

10

15

20

25

30

APG sales 5Y CAGR MKT 5Y CAGR APG

ST Growing Faster than the MarketST Growing Faster than the Market

Transition todigital core

Full systemsolution approach

5 ye

ar C

AG

R (

%)

Sources: ST, Strategy Analytics (SA)

Early phase: smart power

APG

sal

es

(*) : SA market preliminary estimate

NXPNXPDelphiNXP5

NECTINXPTI4

IFXIFXIFXST3

FSLFSLSTIFX2

STSTFSLFSL1

ASSP & ASICChinaUSAWW2006 Ranking

•ST #1 in ASIC, ASSP, Body Control Modules, Digital & Analog Car Radio

•Leader in 16-bit µc and growing in fast emerging 32-bit µc

•Leader in the Technology Convergence and System Integration

Source: Dataquest: 2006 preliminary estimate

Automotive Semiconductor RankingAutomotive Semiconductor Ranking

Reduction of Vehicle Emission

Convergence of Integrated Safety

Evolution of Car Infotainment

Migration to Smart Junction Box

Innovation Trends In AutomotiveInnovation Trends In Automotive

Vehicle Emission Reduction From Conventional Power Train to Hybrid VehiclesVehicle Emission Reduction From Conventional Power Train to Hybrid Vehicles

Euro6 / 2015EPAFull Hybrid

Multi storage TurbochargingCylinder De-activation

2000

2005

2008

GASOLINE TECHNOLOGY

Magnetic InjectorCommon RailSmall Engine

Variable Geometry

Euro5 / 2008Carb / 2010EPADirect Injection (GDI)Variable Valvetrain

Piezo Injector

Euro4Multicatalyst

Variable Compression RatioCylinder De-activation

Lambda Sensor

Euro4TurbochargingDrive-by-wire

Distributor Pump

DIESEL TECHNOLOGY

• #1 in Injection:– Magnetic Injector Controllers– Piezo Injector Controllers– Gasoline Direct Injection– Common Rail

• #1 in Turbo Controller– Gasoline and Diesel Turbo Controller– Euro5 Small Engine Turbo Management– Pump Controllers

• #1 in Drive-by-Wire Engine– Variable Valve Train Controllers– Variable Geometry Controllers– Multi-Catalyst Controllers– Lambda Controllers

Power Train Product PortfolioPower Train Product Portfolio

Hybrid Power Train: Petrol & DieselSilicon per System: $140

Conventional Power Train:Silicon per System: $40

Sensors6%

PowerMOS / IGBT65%

Battery Control6%

Smart Power16%

Micro7%

2.5M vehicles estimated in 2011 (*)

<10M

<35M

<30M

2007

<10M

<40M

<20M

<10M

2010

<10M

<40M

<30M

<10M

2013

EURO-6

EURO-5

EURO-4

EURO-3

< EURO-3

Emis

sion

R

educ

tion

# of vehicles

Source: SA (*)

Innovations in Power TrainInnovations in Power Train

Acc

iden

t pro

babi

lity

Accelerated driver reaction

Rear

Red

uctio

n of

Fat

aliti

es

Crossing

2 way

Active Safety introduces pedestrian detection & vehicle communication, reducing reaction time and fatalities.

Estimate of Fatalities Reduction

)

Active to Passive Safety Control EvolutionActive to Passive Safety Control Evolution

Technical Trends

Speed adaptation -

2010

Speed Speed adaptation adaptation --

20102010

Basic ADAS - 2009

Basic ADAS Basic ADAS -- 20092009

Brake assist system -

2010

Brake assist Brake assist system system --

20102010

Electronic stability control

- 2006

Electronic Electronic stability control stability control

-- 20062006

Standard ABS -2003

Standard ABS Standard ABS --20032003

Tire pressure monitoring -

2008

Tire pressure Tire pressure monitoring monitoring --

20082008

E-call system -2009

EE--call system call system --20092009

Driver fatigue detection - 2010Driver fatigue Driver fatigue

detection detection -- 20102010

Alcohol ignition interlocks - 2012Alcohol ignition Alcohol ignition interlocks interlocks -- 20122012

Event data recorder -

2009

Event data Event data recorder recorder --

20092009

Anti-collision system - 2014AntiAnti--collision collision system system -- 20142014

Front-lateral airbags - 2008FrontFront--lateral lateral

airbags airbags -- 20082008

Whiplash protection - 2008

Whiplash Whiplash protection protection -- 20082008

Occupant detection -

2010

Occupant Occupant detection detection --

20102010

Advanced child restraint - 2006Advanced child Advanced child restraint restraint -- 20062006

Curtain-rollover airbags - 2010

CurtainCurtain--rollover rollover airbags airbags -- 20102010

Advanced ADAS - 2012

Advanced ADAS Advanced ADAS -- 20122012

Smart belts - 2008Smart belts Smart belts -- 20082008

Active SafetyActive Safety

PassiveSystemsPassiveSystems

Car Safety Legislation RoadmapCar Safety Legislation Roadmap

Source : SA

Night vision

Night

Convergence of Multiple Technologies

Camera

Radar

MEMS

Safety

Power

Video processing

$60 full kit valueTAM > $1B in 2010

Emergencycall

Vehicle & Lane

Pedestrian

Convergence Towards Active SafetyConvergence Towards Active Safety

Smart Junction Boxes enable savings of up to 20% on vehicle electric and electronic distribution system costs, while providing additional functionalities

Leveraging ST technologies:

BCDVertical PowerEmbedded flashEEPROMBiCMOSRadio FrequencySensorCamera VIPower

µC

ASSP

RF IC

Car Body Migration to Smart Junction BoxCar Body Migration to Smart Junction Box

19701970 19801980 19901990 20002000 20102010

INTEGRATED INFOTAINMENT

$30-$120NavigationTelematicsA/V EntertainmentInfomobilityCar to Car Communication

Audio Amplifiers

Full Radio Solution

Satellite Radio Receiver

Car Infotainment Driving Silicon ContentCar Infotainment Driving Silicon Content

From expensive systems to advanced portable navigation devices

Mastering all technologies to drive

in-vehicle A/V

Driving the Evolution of Car InfotainmentDriving the Evolution of Car Infotainment

IPCollaboration

Excellence in Service

Excellence in Quality

Leader in Automotive

Customer Partnership

Leading Technologies

Innovation

ST Leadership in AutomotiveST Leadership in Automotive

2007 Automotive Growth Drivers2007 Automotive Growth Drivers

• Electronic & semiconductor pervasion in the car

• Multiple air bags for low end models in Europe, USA and Japan

• Euro4 / 2008Carb conversion in Power Train

• Automotive and Infotainment full system solutions for the Chinese market

• Portable navigation through GPS modules

• Satellite radio

0

50

100

150

200

250

300

350

2004 2005 2006 2007

N. America Europe Japan China

Electronics Content per CarUS$

Source : SA