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NXP

Corporate Overview

IoT Security Tech Day 2019/05/21Stefan Sommer

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Secure Connections for

A Smarter World

NXP Semiconductors N.V. (NASDAQ: NXPI) enables secure

connections and infrastructure for a smarter world, advancing

solutions that make lives easier, better, and safer.

As the world leader in secure connectivity solutions for embedded

applications, NXP is driving innovation in the secure connected

vehicle, end-to-end security & privacy, and smart connected solutions

markets. Built on more than 60 years of combined experience and

expertise, the company has approximately 30,000 employees in more

than 30 countries and posted revenue of $9.41 billion in 2018.

NXP, the NXP logo, NXP SECURE CONNECTIONS FOR A SMARTER WORLD are trademarks of NXP B.V. All other product or service names are the property of their respective owners. The

Bluetooth® word mark and logos are registered trademarks owned by Bluetooth SIG, Inc. and any use of such marks by NXP Semiconductors is under license. Arm, Cortex and Mbed are trademarks

or registered trademarks of Arm Limited (or its subsidiaries) in the US and/or elsewhere. The related technology may be protected by any or all of patents, copyrights, designs and trade secrets. All

rights reserved. © 2019 NXP B.V.

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Operations in

30+ CountriesHeadquartered in Eindhoven,

the Netherlands

28,000+Employees

10,000+R&D Engineers

9,000+Patent Families

60+Years of

Combined

Experience

$9.26BAnnual Revenue1

A Position of Strength to Better

Serve Our 26,000+ Customers

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1 Posted revenue for 2017 – Please refer to the Financial Information

page of the Investor Relations section of our website atwww.nxp.com/investor for additional information

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NXP Locations~30,000 employees with operations

in more than 30 countries

Headquarters

Eindhoven, Netherlands

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Automotive Industrial & IoT MobileCommunication

Infrastructure

Our Leadership Focused End Markets

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Secure Connections for a Smarter World is Becoming a Reality

Cloud Infrastructure

Machine

LearningAuthentication

Services Data

Analytics

Edge to Node

Smart Home

Smart

Buildings

Smart Health

Voice

Assistant

Smart Retail

Robotics

Wearables

Media

Streaming

Home

Gateway

Auto

Gateway

Smart

City

Industrial

Controller

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Secure Connections for a Smarter World is Becoming a Reality

Cloud Infrastructure Enabling Technologies

Machine

Learning Authentication

Services Data

Analytics

Edge to Node

Smart Home

Smart

Buildings

Smart Health

Voice

Assistant

Smart Retail

Robotics

Wearables

Media

Streaming

Home

Gateway

Auto

Gateway

Smart

City

Industrial

ControllerProcessing(incl. AI/ML)

Safety &

Security

Connectivity

Sensing

NXP has all enabling technologies

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Bringing the Edge to Life

Advancing solutions that make

lives easier, better and safer.

Sense Process Connect Act

Leading functional safety & security

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AutomotiveSolutions for Safe and Secure Mobility

Value Proposition

Solution portfolioComprehensive System Solutions for fast time to

market and scalability

Innovation powerIn-house high-performance processing, security and

mobile eco-system capabilities

Automotive safety and reliabilityZero defects methodology

Leading with security and functional safety

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#1 Auto Analog / RF / DSP

#2 Auto Microcontrollers

#1 Auto Application Processors

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Technology

Leadership

Applications

Leadership

in Auto

Semiconductors2017 Global Auto Semi Market: $34.5B

+ =#1 Car Infotainment

#1 Secure Car Access

#1 In-Vehicle Networking

#1 Safety

#2 Powertrain

Innovation Leader ADAS

Innovation Leader Security

#1

NXP Makes Safe and Secure Mobility Happen

1. Based on 2017 Auto TAM

2. Auto RF/DSP includes Secure Car Access, Radio/Audio, V2X and Radar Transceivers

3. Source: Strategy Analytics, IHS Markit, NXP

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Industrial & IoTInnovating Edge to Cloud

Value Proposition

Broad, scalable portfolioUltra-low-power and high-performance applications processors

High-performance crossover processors

Low-power secure and connected MCUs

Common software and large partner ecosystem

Deep applications insightsFrom working with and supporting 26,000+

customers across thousands of applications

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Industrial & IoTFrom cloud to edge, NXP is at the forefront of innovation

in secure connected ecosystems for Industry 4.0 and

the future of IoT

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The AI / IoT Era Will Create New Industry Leaders1

Edge

Processing

Machine

Learning

Connected

Data

“The 4th Tectonic Shift in Computing”

10,000

Un

its S

hip

pe

d (

Mill

ion

s)

Mainframe Mini-Computer PCs Cell Phones AI / IoT

100

1

0.01

10

0.1

19

50

-

19

70

-

19

90

-

20

00

-

20

10

-

2020E

-

19

80

-

19

60

-

1000

Securi

ty

1. Jeffreies

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AI / IoT Disruption is the

New Growth Engine1,2,3,4…… Changing the Rules of

Engagement with the Market

IoT Endpoints, Worldwide Less diverse end devices

Concentrated customer base

Defined ecosystem

Very diverse end devices

Fragmented customer base

Wide range of applications & ecosystem2018E 2021E2016

2.7 Bpcs

6.1 Bpcs

1.6 BpcsSmart

Home &

Wearables

Industrial

31% CAGR

1. Charts/graphics created by NXP based on Gartner research. Source: Gartner Forecast: Internet of Things — Endpoints and Associated Services, Worldwide, 2017 ( Calculations performed by NXP)

2. Excludes Automotive

3. The Gartner Report(s) described herein, (the “Gartner Report(s)”) represent(s) research opinion or viewpoints published, as part of a syndicated subscription service, by Gartner, Inc. (“Gartner”), and are not representations of fact. Each Gartner Report speaks as of its original publication

date (and not as of the date of this Investor Presentation) and the opinions expressed in the Gartner Report(s) are subject to change without notice

4. Bpcs=B pieces

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Customer Pain Point: Rising Cost of IoT Solutions1

Rising Cost

of IoT Solutions

Network cost, data charges, latency and privacy

Mobile & desktop processors oversized for Industrial & IoT

Customer software resource constraint

“SW engineering costs now represent 60-70% of total OpEx”

(EETimes)

Data Privacy &

Security Concerns

Very High

System Complexity

1. Source: AspenCore Study 2017

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Fragmented

connectivity

protocols

Operating system

& software

portability Amazon

freeRTOS

Diverse cloud &

AI solutions“70% of embedded

developers decide

on the processor’s

ecosystem first”

2017 Embedded

Developers Survey

Data Breach Examples

Retail / HealthcareJun 2018, Feb 2015, May 2014,

Sep 2014 , Dec 2013

Banking / Credit Rating July 2017, June 2014

Social Media / Search June 2016, Aug 2013

Government regulations

China

Cyberspace Adm.

AirlinesSep 2018

Customer Pain Points: System Complexity & Security1

Rising Cost

of IoT Solutions

Data Privacy &

Security Concerns

1. Source: AspenCore Study 2017

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NXP Scalable Industrial & IoT Processing Continuum

Functional Integration

Pe

rfo

rma

nce

Software compatibility & ease-of-use

Purpose-built, dedicated SoC platforms

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Industrial Processing Needs Addressed by NXP

ReliabilitySecurity Longevity SoftwareC

on

ne

ctivity D

ata

Ra

te

Graphics & Display

Scalable

Processing

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Co

nn

ectivity D

ata

Ra

te

Graphics & Display

Scalable

Processing

Industrial Processing Needs Addressed by NXP

ReliabilitySecurity Longevity Software

Applications Processors

MCUs Crossover Processors

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Enabling Audio & Voice Processing at the Edge1

“Voice control front end to grow at 29% CAGR (‘17-’22) in the Smart Home”

Speech

Wake word, natural language

processing & ML applications

on integrated DSP

High-performance i.MX Performance i.MX, RT CrossoverLow-power i.MX, MCUs

One unified audio software framework to meet any customer need

Music

Dolby ATMOS® & DTS X:

advanced codecs for high-fidelity

streaming on Cortex-A

Voice

Low-cost addition of voice

recognition (e.g., Alexa Voice

Service) for end nodes

1. Source: ABI Research 1Q18

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Leading Low-Power Edge & End Node Solutions

Bringing Cloud to the

End Node with

Low-cost MCUs

Low-cost Voice Enablement

with i.MX RT

Ultra-low-power Wearables

with Low-power i.MX

Amazon

freeRTOS®

NXP

MCUXpresso

Software

NXP BoM

• i.MX RT1050 MCU

• Analog amplifier

• Authentication secure element

• Industry’s best power efficiency

(15 µW in deep sleep mode)

• Low-power GPUs for wearables and IoT

• Industry’s 1st embedded processor

based on FD-SOI technology

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Leading Low-Power Edge & End Node Solutions

Cloud

Infrastructure

NXP Software Platform

Customer Solutions

Application Application Application

EdgeScale™ Device Mgmt. PlatformData Analytics

Machine

Learning

Services

Ethernet

Switch

Industrial

ControllerWireless

Router

Home

Gateway

freeRTOS

Provisioning &

AuthenticationSecurity, Connectivity,

Machine Learning, Audio/Video

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NXP Enabling Machine Learning Revolution

i.MX 61-2 x Arm 32-bit

Crossover &

High. Perf. MCUs

Arm 32-bit MCU

+ML DSP

i.MX 8,

LayerscapeMulticore Arm 64-bit

High performance

• GPUs

• DSP

• Vector processing

i.MX 7, 8

1-4x Arm 32-/64-bit

Performance GPUs

Integrated DSP

Scalable & optimized inference engines across Embedded Processing continuum

Training in

the cloud

Trained Models

Inference Engines

Voice

Processing

Augmented

Reality

Multi-camera

Observation

Home

Environment

Personal /

Property

Active Object

Recognition

Gesture

Control

Smart Sense

& Control

Low-end Edge

Compute

Mid-end Edge

Compute

High-end Edge

Compute

and others

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Uniquely Positioned for Industrial & IoT Edge Compute

Broadest PortfolioMCU / Crossover / Application

Processors

Seamless

Cloud Connectivity& Lifecycle Management

Complete SolutionsSDK / HW / SW

& Ecosystem

High-precision Analog &

Audio/Video/Display

Security & PrivacyEmbedded &

Systems Level

Comprehensive Software Environment

Systems Level Integration

Edge Processing

Edge Compute Ecosystem

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MobileEnabling secure transactions

Value Proposition

Technology innovatorMobile wallet

Services2Go

Recognized secure application leader Payment

Transit

Access

Identification

Trusted partner across ecosystemsFinancial institutions

Governments

Public transit operators

OEMs

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Communication InfrastructureFocus on 5G technologies

Value Proposition

Broadest portfolioFrom DC to mmW frequencies

From 1.8 mW to 1.8 kW output power

Technology leadershipGaN

LDMOS

SiGe

GaAs

Unique in-house technologies

optimized for 5G applications

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