st microelectronics investor day 2012

Some of the statements contained in this release that are not historical facts are statements of future expectations and other forward-looking statements (within the meaning of

Section 27A of the Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934, each as amended) that are based on management’s current views and assumptions,

and are conditioned upon and also involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those in such

statements due to, among other factors:

• the possible impact of an impairment charge on the carrying value of the ST-Ericsson investment in our books of approximately $1.7 billion as well as on our consolidated results of

the successful execution of ST-Ericsson's new strategic direction plan and its related savings announced on April 23rd 2012;

• changes in demand in the key application markets and/or from key customers served by our products, including demand for products where we have achieved design wins and/or

demand for applications where we are targeting growth, all of which make it extremely difficult to accurately forecast and plan our future business activities;

• our ability in periods of reduced demand or visibility on orders to reduce our expenses as required, as well as our ability to operate our manufacturing facilities at sufficient levels

with existing process technologies to cover our fixed operating costs;

• our ability, in an intensively competitive environment, to identify and allocate necessary design resources to successfully develop and secure customer acceptance for new

products meeting their expectations as well as our ability to achieve our pricing expectations for high-volume supplies of new products in whose development we have been, or are

currently, investing;

• the financial impact of obsolete or excess inventories if actual demand differs from our expectations as well as the ability of our customers to successfully compete in the markets

they serve using our products;

• our ability to maintain or improve our competiveness when a high percentage of our costs are fixed and are incurred in Euros and currencies other than U.S. dollars, especially in

light of the increasing volatility in the foreign exchange markets and, more particularly, in the U.S. dollar exchange rate as compared to the Euro and the other major currencies we

use for our operations;

• the outcome of ongoing litigation as well as any new litigation to which we may become a defendant;

• changes in our overall tax position as a result of changes in tax laws, expected income or the outcome of tax audits, changes in international tax treaties which may impact our

results of operations as well as our ability to accurately estimate tax credits, benefits, deductions and provisions and to realize deferred tax assets;

• the impact of intellectual property (“IP”) claims by our competitors or other third parties, and our ability to obtain required licenses on reasonable terms and conditions;

• product warranty or liability claims based on epidemic or delivery failures or recalls by our customers for a product containing one of our parts;

• availability and costs of raw materials, utilities, third-party manufacturing services, or other supplies required by our operations; and

• current economic uncertainties involving the possibility during 2012 of limited growth or recession in global or important regions of the world economy, sovereign default, changes in

the political, social, economic or infrastructure environment, including as a result of military conflict, social unrest and/or terrorist activities, economic turmoil, as well as natural

events such as severe weather, health risks, epidemics, earthquakes, tsunami, volcano eruptions or other acts of nature in, or affecting, the countries in which we, our key

customers or our suppliers, operate and causing unplanned disruptions in our supply chain and reduced or delayed demand from our customers.

Such forward-looking statements are subject to various risks and uncertainties, which may cause actual results and performance of our business to differ materially and adversely from

the forward-looking statements. Certain forward-looking statements can be identified by the use of forward-looking terminology, such as “believes,” “expects,” “may,” “are expected to,”

“should,” “would be,” “seeks” or “anticipates” or similar expressions or the negative thereof or other variations thereof or comparable terminology, or by discussions of strategy, plans or

intentions.

Some of these risk factors are set forth and are discussed in more detail in “Item 3. Key Information — Risk Factors” included in our Annual Report on Form 20-F for the year ended

December 31, 2011, as filed with the SEC on March 5, 2012. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual

results may vary materially from those described in this release as anticipated, believed or expected. We do not intend, and do not assume any obligation, to update any industry

information or forward-looking statements set forth in this release to reflect subsequent events or circumstances.

Forward Looking Statements

1

1

Agenda 2

Speaker

Time Presentation

9:00 Introduction T. Sorensen

9:05 Company Strategy & Vision C. Bozotti

9:25 ST Business & Financial Roadmap P. Lambinet

9:55 ST-Ericsson D. Lamouche

10:20 Manufacturing & Technology R&D J.M. Chery

10:50 Break

11:05 PANEL: Digital & Multimedia Convergence G.L. Bertino, M. Cetto, R. Krysiak, P. Lambinet,

11:35 PANEL: Power P. Grimme , F. Guibert, M. Monti, C. Papa

12:05 PANEL: Sense E. Aussedat, M. Cassis, C. Dardanne, B. Vigna

12:35 Q & A Panel C. Bozotti, J.M. Chery, C. Ferro, P. Lambinet, D.

Lamouche, C. Papa

1:30 Lunch

2:30 Breakout Sessions

5:00 to 6:30 Reception

• Automotive Marco Monti, Paul Grimme

• Analog, MEMS & Sensors Benedetto Vigna, Marco Cassis

• Digital Convergence Gian Luca Bertino, Robert Krysiak

• Imaging, BiCMOS ASIC & Silicon Photonics Eric Aussedat, Flavio Benetti

• Industrial & Power Discretes Carmelo Papa, Matteo Lo Presti

• Microcontrollers Claude Dardanne, Francois Guibert

• ST-Ericsson Carlo Ferro, Ronen Ben-Hamou

Agenda – Breakout Sessions 3

Pearl Plymouth Minskoff Nederlander New

Amsterdam Palace

2:30 – 3:00 ST-Ericsson Digital

Convergence

Imaging, BiCMOS

ASIC & Silicon

Photonics

Automotive Analog, MEMS &

Sensors

3:00 – 3:30 Industrial & Power

Discretes Automotive Microcontrollers

Analog, MEMS &

Sensors

3:30 – 4:00 ST-Ericsson Digital

Convergence

Imaging, BiCMOS

ASIC & Silicon

Photonics

Industrial & Power

Discretes

4:00 – 4:30 Digital

Convergence Automotive Microcontrollers

Industrial & Power

Discretes

4:30 – 5:00 ST-Ericsson

Imaging, BiCMOS

ASIC & Silicon

Photonics

Microcontrollers Analog, MEMS &

Sensors

5:00 – 6:30 Reception – MAJESTIC Ballroom Foyer (5th Floor)

Philippe Lambinet

Executive Vice President Corporate Strategy Officer General Manager, Digital Sector

ST Business & Financial Roadmap

• A global semiconductor leader

• The largest European semiconductor company

• 2011 revenues of $9.73B(1)

• Approx. 50,000 employees worldwide(1)

• 12,000 people working in R&D

• 12 manufacturing sites

• Listed on New York Stock Exchange, Euronext Paris

and Borsa Italiana, Milano

About ST

(1) Including ST-Ericsson, a 50:50 joint venture with Ericsson

2

Partners of our Customers Worldwide with 78 sales offices in 36 countries

3

50/50 JV with Ericsson

Focused Product Segments

4

Digital

Convergence

Group

(DCG)

Imaging, BiCMOS ASIC

& Silicon Photonics

Group

(IBP)

Automotive

Products

Group

(APG)

Analog,

MEMS &

Sensors

(AMS)

Micro,

Memory &

Security

(MMS)

Industrial &

Power

Discrete

(IPD)

Digital Automotive Analog &

Microcontrollers

Power

Discrete Wireless

4

FY11 Revenues by Product Segments

17%

35%

13%

19%

16%

Automotive (APG)

• #1 in China • #1 ASIC • #1 Smart Power

• #3 Worldwide

Analog, MEMS &

Microcontrollers (AMM) • #1 in MEMS

Sensors and Microactuators

Power Discrete (PDP)

• #1 in Thyristor • #1 HV>400V PowerMOS

Digital

• #1 in Set-top Box outside US

• #2 in Set-top

Box Worldwide

Wireless

ST-Ericsson

*See appendix

Source: IHS iSuppli 2011 rankings

ST’s exposure to the Wireless

segment* at the earnings level

is 9%

5

Our Vision 6

1987 One Device = One Function

8

2012 Connecting Users to Content and Services

9

Technology Adoption Rates Acceleration

Source: Charlie Catlett, Argonne Nat'l Laboratory

10

Convergence of Functionalities

Camcorder

Camera

GPS

Web browsing

Content sharing

Email

MP3 player SMS

Social Networks

Picture stabilization

Battery life

Parental control

Home sharing

Content personalization

Data security

Gaming Apps stores

11

Application Drivers towards 2015

Infotainment Automotive Body

Ebooks

STB

Appliances

Game Consoles

TV

Flat Panel Monitor

Printer

HDD

SSD

Computer Systems

Medical

Energy Generation & Distribution

Fab Automation

Building & Home Automation

Fiber Broadband WLAN Acess/Routers

Mobile Phone 1G/2G

Tablets

Smartphones (4G CAGR > 100%)

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

100 1,000 10,000 100,000

2011 -

2015 C

AG

R

Market Size in 2015 ($M)

Automotive Electronics Categories Consumer Electronics Categories Data Processing Categories

Industrial Electronics Categories Wired Communications Categories Wireless Communications Categories

Source : IHS iSuppli (SAM, excl. DRAM, Flash, MPUs, Opto)

12

Key Attributes

Connect Interact Display

Power

13

Key Requirements

Multimedia Convergence + Sense & Power

Smart World Security

Interface Performance

Power

14

Leading Sense & Power

MCUs

MEMS/Sensors Power Management

Analog

Key Enablers

● Leading position in key products ● Rich portfolio of technologies ● Broad system know-how

Automotive Communications Computer

& Peripherals

Consumer Industrial

& Other

Supporting our target markets

15

• Increasing threats

Growth

Energy

Healthcare

&

Wellness

Security

Automotive

Growth Drivers for Sense & Power

• Rising global car

production and silicon

content drive market

• New opportunities

(HEV/EV)

• Aging/growing population

• Finite natural resources

16

New Sense & Power Products in 2012

• Automotive

• Power Amplifier • ABS, Air Bag, Powertrain, Smart Power • PowerTM MCU

• Analog & MEMS

• Motion MEMS Combo • Altimeter • Microphone

• Touch screen controllers • Operational amplifiers

• Smart Sensors (RF, MCU, Sensor)

• Memory, Microcontrollers & Security

• MCU Cortex - M0/M4 families • 32-bit F0 series

• 32-bit F3/F4 Series

• Secure MCU (ST31 on ARM SC000 core)

• NFC for mobile handsets • Android, Windows 8 and other

• EEprom dual interface

• Industrial & Power Discrete

• IGBT for motor control, solar and UPS • Amoled power management • Power MOSFET MDmesh V

• Smart Grid: • Power Line Modem

• Photovoltaic ICs

17

Driving Multimedia Convergence

Key Enablers

● Low-power and high performance CMOS process roadmap

● Leading position in all converging markets

● Broad system know-how

Imaging

Digital TV

& Monitor

Digital

Set-Top Box

Automotive

Infotainment

Smartphones

& Tablets

Network

Infrastructure

(ASIC)

18

Growth Drivers for Multimedia Convergence

Growth

Explosion of digital

content

Secure, ubiquitous,

personalized services

Emerging markets

19

New Multimedia Convergence Products in 2012

• Digital Convergence Platform

• Digital TV: Newman

• Set-top Box: Orly • DisplayPort

• Premium monitors: Athena • DisplayPort based Smart Connectivity:

Pegasus

• Networking ASICs

• Imaging

• Imaging diversification

• Consumer, computer,

automotive, medical

• Expanding customer base

20

Next Step in Multimedia Convergence

• We will offer a unified processing platform to serve all markets

• We will leverage our broad system knowledge and customer relationships

Unified

Processing

Platform

Specific

IPs

by

Market

HW/SW

Source: IHS iSuppli

0

500

1,000

1,500

2,000

2,500

3,000

2010 2016

Mobile PCs

E-book Readers

Handheld Video Game Players

Video Game Consoles

Digital Picture Frames

Digital Still Cameras

Camcorders

Portable navigation

Residential Gateways

Tablets

Smart Phones

Car Infotainment

Smart TVs

Digital Set Top Boxes

ST

Mu

21

Our Strengths

• CPU and graphics

• Power consumption

• Video quality

• Security

• Reliability

• Expertise in leading edge

platform

• Ecosystems • Google, Windows, Adobe, …

• Customer relationships

22

ST Unique Offer

32 nm

28 nm

28 nm

FDSOI

55/40 nm

80/55 nm

160/110 nm

22 um/AR 1:25

0.4 mm

CMOS Logic

CMOS Analog

Mixed Signal/RF

CMOS Embedded

Non Volatile Memory

Bipolar CMOS /

DMOS

MEMS

Power & Discrete

Process Key IPs

CPU cores

A/V decode

Transport

GPU

Security

DDR i/f

USB

SATA

HDMI

PCIe

Video

composition

& display

MCU

Analog

Gyroscope

Accelerometer

Functions

Display

User

Interface

Position

Motion

Audio

Video

Networking

Products Packages

More

Moore

M

ore

Than M

oore

QFP

BGA

LOC

LGA

Sensors

SOP

SiP

WLCSP

DIP

TO2xxx

SMDP

TSSOP

Multimedia Convergence

Platforms

Discrete &

Integrated

Power

Devices

Analog ICs &

MEMS

Microcontrollers

(MCUs)

ASICs

Markets

Automotive

Communications

Computer

& Peripherals

Consumer

Industrial & Others

Sense &

power

Multimedia

convergence

23

FY11 total revenues = $9.73B Wholly-Owned Businesses +1% year-over-year

Wireless down 30%

24

US$M

0

2000

4000

6000

8000

10000

12000

FY05 FY06 FY07 FY08 FY09 FY10 FY11

ST ex Flash Wholly-Owned Wireless

ST Total Revenues 24

Billings Bottomed in Q112

0

500

1000

1500

2000

2500

3000

Wholly-Owned Wireless Guidance

ST Q112 Revenues = $2.02B

Sequentially, Separate Revenue Dynamics Again Wholly-Owned Businesses down 3% Wireless down 29%

Q212 Revenue Guidance: +7.5%; +/- 3 percentage points

US$M

25

...expanding its market share to

5.8% from 5.7% ST’s Wholly-Owned Businesses outgrew

its SAM by +220bps during 2011...

Wholly-Owned Business Performance

4.0%

5.0%

6.0%

0.0

5.0

10.0

2010 2011

Mar

ket

Shar

e

Re

ven

ue

s (U

SD b

n)

Revenues Market Share

-1.5%

-1.0%

-0.5%

0.0%

0.5%

1.0%

1.5%

SAM excl. WLS ST-WO

Gro

wth

(%

)

• SAM = Serviceable Available Market • SAM Wholly-Owned Businesses = SAM excluding Wireless SAM • ST Wholly-Owned Businesses are comprised of Automotive, Digital, Analog, MEMS & Microcontrollers and Power Discrete

Source: WSTS, STMicroelectronics

26

* ST Wholly-Owned Businesses are comprised of Automotive, Digital, Analog, MEMS & Microcontrollers, Power Discrete and Others

** 100% of ST-Ericsson’s results (out of which 50% from the competence of ST) as consolidated by ST plus other margins of ST rel ated to ST-

Ericsson’s business

*** Q411 Wireless Minority Interests exclude the impact of $92M related to ST-Ericsson valuation allowance

Wholly-Owned Business vs. Wireless

In US$M FY10 FY11 Q112 FY10 FY11 Q112

Revenues 8,127 8,183 1,727 2,219 1,552 290

Operating Income (Loss) before impairment,

restructuring & one-time items 1,063 933 13 (483) (812) (293)

Operating Margin 13.1% 11.4% 0.8% na na na

Minority Interests na na na 297 413*** 168

Wholly-Owned* Wireless **

27

ST Gross Margin & Opex Evolution

20%

25%

30%

35%

40%

Q111 Q211 Q311 Q411 Q112 Q212

Gross Margin - Reported Unused Capacity

Arbitration Award Guidance

Opex expected to be:

Stable in $ in Q212 Down in $ in H212

Recovering from low

volumes recorded from mid-2011 and one-time arbitration

award

Operating Expenses Evolution

Key program:

ST-Ericsson restructuring

Gross Margin Evolution

Progressive

disappearance of unused capacity

charges and

improvement in manufacturing

efficiencies

0

200

400

600

800

1,000

Q111 Q211 Q311 Q411 Q112 Q212

R&D SG&A

US$M

28

-600

-200

200

600

1,000

1,400

12/31/08 12/31/09 12/31/10 12/31/11 3/31/2012 12/31/12e

Reported Attributable to ST

Net Financial Position*

*See appendix

**Includes ST-Ericsson short-term debt to Ericsson of $489M as of Mar. 31, 2012, $400M as Dec. 31, 2011, and $75M as of Dec. 31, 2010.

Expect net financial

position attributable to ST

to be stable to

slightly up at the end of

December 2012

Maintained strong net cash position throughout FY11 and Q112

despite weak market conditions from mid-2011 as well as a specific situation at a major customer

While funding $1.38B of capex… …and absorbing our portion of ST-Ericsson investment…

…redeemed $764M in debt and paid $415M in dividends

US$M

29

$1.27B

30

Dividend Evolution

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

$0.00

$0.05

$0.10

$0.15

$0.20

$0.25

$0.30

$0.35

$0.40

Dividend Yield

*Source: Bloomberg (May 21, 2012)

**2011 annualized dividend as submitted to the Annual General Meeting

• STM dividend yield of >8%

among the highest in the semiconductor industry

• ST cumulative dividends over the past 6 years (including the

$0.40 per share submitted to the 2011 AGM for approval) have been > $1.5B

• Quarterly dividend offers a

steady income to shareholders and also potential stock price

revaluation

30

Wireless

2011 Revenues: $1.55B; -30% Y/Y

• 50% Minority Interest

ST-Ericsson to lower breakeven point

Revised, more flexible business model

ST expects a significant reduction in

losses at ST-Ericsson in 2012

16%

ST-Ericsson

Operating Profitability Improvement

-70%

-35%

0%

35%

-1,000

-500

0

500

2009 2010 2011 Mid term

Operating Profit Operating Profit Margin

31

-15%

-10%

-5%

0%

5%

10%

Q111 FY11 Q112

Digital

2011 Revenues: $1.84B; -15% Y/Y

Operating Margin Expansion: Mid-term Target: Mid-Single Digit %

Operating Margin Mid-Term Drivers

Realize synergies related to unified processing platform

Capitalize on recovery in STB market

Ramp new products

TV, monitors, Smart Connectivity products

Communication infrastructure ASICs

Market/product diversification in Imaging

New applications – proximity sensing, user detection, etc.

New markets – auto, gaming, medical, security, sports 19%

32

-5%

0%

5%

10%

15%

20%

Q111 FY11 Q112

Power Discrete Products (PDP)

2011 Revenues: $1.24B; -6% Y/Y Operating Margin Mid-Term Drivers

Operating Margin Expansion: Mid-term Target: Mid-Teens %

13%

Capitalize on market megatrends

Energy saving, automations green & renewable energy

Improve product mix

IGBT & Power Modules drive motor control applications

Breakthrough low voltage Power MOSFET technology (OFT)

Manufacturing flexibility

Efficient front/back-end capabilities

Singapore conversion to 200mm

33

Capitalize on solid growth in Auto market

Increasing pervasion of electronics in the car

Volume opportunities in emerging markets

New and innovative products

32-bit Power MCU in eFlash, RF for Active Safety

Leader in BCD technologies; introducing new generation

Complete system offer in emerging markets

34

Automotive Product Group (APG)

2011 Revenues: $1.68B; +18% Y/Y

0%

5%

10%

15%

Q111 FY11 Q112

Operating Margin Expansion: Mid-Term Target: Mid-Teens %

Operating Margin Mid-Term Drivers

17%

34

0%

5%

10%

15%

20%

25%

Q111 FY11 Q112

Analog, MEMS & MCUs (AMM)*

2011 Revenues: $3.38B; +7% Y/Y Operating Margin Mid-Term Drivers

35%

Rapid growth in Motion MEMS / expanding product portfolio

Microphone, pressure sensor, compass, etc.

Enlargement of 32-bit MCU portfolio (GP & Secure)

Ramping new BCD technologies for motor control

New products for SmartGrid and OLED display drivers

New wave of advanced analog products

Expansion of customer base and targeted applications

Operating Margin Expansion: Mid-Term Target: Low-Twenties %

*New AMM perimeter starting January 1, 2012

35

ST Financial Model

ST remains committed to delivering on a fully consolidated basis:

9% to 12% operating margin

12% to 18% return on net assets (RONA) target

16% to 22% RONA attributable to ST

36

Key Programs to Increase Value

Increase Shareholder Value

Boost Innovation

Expand Customer

Base

Cost Reduction

ST-Ericsson

Turnaround

37

Appendix

2011

Trends

2012

38

Financial Performance

In US$M, except EPS

FY10

Q111

Q211

Q311

Q411

FY11

Q112

Net Revenues 10,346 2,535 2,567 2,442 2,191 9,735 2,017

Gross Margin 38.8% 39.1% 38.1% 35.8% 33.4% 36.7% 29.6%

Operating Income (Loss) before impairment,

restructuring & one-time items*

Operating Margin before impairment, restructuring & one-

time items attributable to ST*

580

9.2%

142

9.9%

114

9.1%

(13)

4.3%

(123)

(0.2%)

121

6.0%

(280)

(6.5%)

Net Income – Reported 830 170 420 71 (11) 650 (176)

EPS Diluted

Adjusted EPS Diluted*

0.92

0.75

0.19

0.20

0.46

0.14

0.08

0.09

(0.01)

(0.01)

0.72

0.41

(0.20)

(0.14)

Free Cash Flow*

Net Financial Position, adjusted for 50% investment in ST-Ericsson*

961

1,227

51

1,255

(250)

1,293

(136)

1,134

47

1,167

(288)

1,167

98

1,267

Effective Exchange Rate €/$ 1.36 1.33 1.37 1.40 1.36 1.37 1.33

39

Glossary • Free cash flow is defined as net cash from operating activities minus net cash from (used in) investing activities, excluding payment for purchases of and proceeds from the sale of

marketable securities (both current and non-current), short-term deposits and restricted cash. We believe free cash flow provides useful information for investors and management because it measures our capacity to generate cash from our operating and investing activities to sustain our operating activities. Free cash flow is not a U.S. GAAP measure and does not represent total cash flow since it does not include the cash flows generated by or used in financing activities. In addition, our definition of free cash flow may differ from definitions used by other companies.

• Net financial position: resources (debt), represents the balance between our total financial resources and our total financial debt. Our total financial resources include cash and cash

equivalents, net of bank overdrafts, if any, current and non-current marketable securities excluding Micron shares received in connection with the sales of Numonyx, short-term deposits and non-current restricted cash, and our total financial debt includes short term borrowings, current portion of long-term debt and long-term debt, all as reported in our consolidated balance sheet. We believe our net financial position provides useful information for investors because it gives evidence of our global position either in terms of net

indebtedness or net cash position by measuring our capital resources based on cash, cash equivalents and marketable securities and the total level of our financial indebtedness. Net financial position is not a U.S. GAAP measure.

• Return on Net Assets (RONA) is the ratio of operating income before impairment and restructuring charges divided by average net assets used during the period. ST defines average net assets as average total assets net of total liabilities as reported in our consolidated balance sheet excluding all items related to our financial position such as cash and cash equivalents, marketable securities, short term deposits, restricted cash, bank overdrafts, current portion of long term debt and long term debt.

• Operating income before impairment, restructuring and one time item excludes impairment, restructuring charges and other related closure costs and NXP Arbitration award.

• Operating income before impairment, restructuring and one-time item attributable to ST is calculated as operating income before impairment, restructuring and one time item

excluding 50% of ST-Ericsson operating loss before impairment and restructuring as consolidated by ST. Operating margin before impairment, restructuring and one time item attributable to ST is calculated as operating income before impairment, restructuring and one time item attributable to ST divided by reported revenues excluding 50% of ST-Ericsson revenues as consolidated by ST. Return on Net Assets (RONA) attributable to ST is calculated as annualized operating income before impairment, restructuring and one time item

attributable to ST divided by reported net assets excluding 50% of ST-Ericsson net assets as consolidated by ST.

• Adjusted net earnings and earnings per share (EPS) are used by our management to help enhance an understanding of ongoing operations and to communicate the impact of the excluded items. Adjusted earnings excludes impairment, restructuring charges and other related closure costs attributable to ST, the impact of equity investment divestiture and subsequent sale of Micron shares, other-than-temporary impairment (OTTI) charges and realized gain on financial assets, NXP Arbitration award net of the relevant tax impact.

• Consolidation of ST-Ericsson: ST-Ericsson, a joint venture owned 50% by ST, began operations on February 3, 2009 and is consolidated into ST’s operating results as of that date. ST-

Ericsson is led by a development and marketing company consolidated by ST. A separate platform design company providing platform designs mostly to the development and marketing company is accounted for by ST using the equity method.

• Wireless Segment: As of February 3, 2009, “Wireless” includes the portion of sales and operating results of the 50/50 ST-Ericsson joint venture as consolidated in the Company’s revenues and operating results, as well as other items affecting operating results related to the wireless business.

• Sales recorded by ST-Ericsson and consolidated by ST are included in Telecom and Distribution

40

40

Didier Lamouche

President and Chief Executive Officer

ST-Ericsson

The new strategic direction

3

Our roadmap to success

2012

Stabilization

2013

Growth

2014

Success

4

What it takes to transform our company

Products

• Clear market

strategy

• Focused portfolio

approach

• Differentiation

Customers

• Engage with market

shapers

• Diversification

Company Organization

• Execution

• Simplicity

• Speed

• Focus

Culture

• From technology focus

to customer focus

• Sustainable

profitability

• From brilliant ideas to

products delivered on

time

Repositioning our business model

5

Become a sustainable and profitable

technology leader in the wireless

industry, by repositioning our whole

business model and by leveraging our

strength in system integration

Our strategic objective and direction

6

SW Complexity

System

RF, Power

AMS

System + service

integration

System Solution

The value is in system integration Integration

Time

Modem Processor

Connectivity RF, Power

AMS

Chipset

Connectivity ModAp+

System integration


AMS

ModAP

Platform

Modem

SW System integration

Apps

Processor

Modem Processor


AMS

7

ModAp systems as a key strategic

differentiating offering through partnerships

∙ Focusing the R&D portfolio to deliver highly competitive complete system solutions in

the form of integrated ModAp platforms

∙ Repositioning whole business model to develop key building blocks either directly or

through partnerships

∙ Full continuity of ST-Ericsson committed roadmap and current customer engagements

• Partnership with ST

• Transfer of R&D

activities and

headcount

• Jointly promote

standalone APEs and

thin modems

• Build on current

capabilities

• Continue to develop

modem IP for ModAp

integration and to

offer thin modems to

customers

• Possibly license

modem IP to 3rd

parties


capabilities

•Develop either directly

or through

partnerships and

alliances

ModAp system integration

Modem Application

Processor Connectivity

RF

Power

Analog mixed signal

8

Application processor partnership with ST

Combining ST and ST-Ericsson

competencies in one Team

Market-specific

Complete platforms

Development of

common core APE

Common

Core APE

Application

Specific IPs

Common

IPs

Common

Core APE

CPU Graphics

Video Imaging

Display Security

Common

Core APE

Development

organization

9

Partnership value for ST-Ericsson

Value for ST-Ericsson ST 3rd Party Standalone

Roadmap continuity

= - =

Addressable market

+ + =

R&D cost reduction &

synergies

++ + =

Fixed cost to variable

++ ++ =

Royalties

- (long term) -- =

Cash savings

++ + =

ST Partnership has the highest value for ST-Ericsson

10

Roadmap continuity a key decision factor

U8520 U8500 To be

Announced

L8540 Next Gen

Partner A

Next Gen

Partner B

2013/2014 2015

With a 3rd

party

∙ Timing for our next generation ModAp platform significantly delayed

IMG

2xA9

1.2G

100

42

ARM

2xA9

1.2G

14

ARM

2xA9

1G

14

In Production/Sampling 2012

IMG

2xA9

1.85G

100

42

11

Roadmap continuity a key decision factor

U8520 U8500 To be

Announced

L8540 Next Gen

ST

To be

Announced

2013/2014 2015

With ST

∙ Roadmap and revenue continuity

∙ Full continuity for customers investment in our platforms today

∙ Timing for next generation shorter

IMG

Rogue

2xA15

2+G

150

84

IMG

2xA9

2+G

100

42

IMG

2xA9

1.2G

100

42

ARM

2xA9

1.2G

14

ARM

2xA9

1G

14

In Production/Sampling 2012

IMG

2xA9

1.85G

100

42

12

Execution efficiency as a revenue lever

∙ Improve R&D execution & accelerate time-to-market, while reducing operating

expenses

∙ Consolidation into a significantly smaller number of sites, specialized by technology

∙ Develop integrated excellence centers delivering larger portion of system value chain

∙ Increase revenues through faster R&D execution

For Illustrative purposes only

Product definition

SW Development

IC Development

System Development

Customer Engineering

Manufacturing

13

Lower the breakeven point

∙ Global workforce reduction of about 1,700

employees worldwide*, including the headcount that

would be transferred to ST

∙ Reducing R&D costs through partnership and site

consolidation

∙ Reduction of SG&A expenses by about 25 % versus 2011,

streamlining the general and administrative activities

∙ Discussions with employee representatives ongoing and on

track

∙ Partnership for application processors with ST

∙ Transfer fixed cost to variable

∙ Achieve scale to support sustainable execution

∙ On track for closing July 1st

∙ Target annualized net savings of $320M from new

and on-going restructuring plans on completion end

of 2013

∙ Restructuring charges $130-150M (including

remaining charges related to ongoing restructuring

plan to be completed at 2012-end) through

completion

∙ Bring breakeven point just below $600M per quarter

Operating Profitability

Improvement

-70%

-35%

0%

35%

-1,000

-500

0

500

2009 2010 2011 Mid term

Operating Profit Operating Profit Margin

Addressing the right market

15

Wireless industry (r)evolution

• From component to platforms

Source: Strategy Analytics, May 2012, ABI, March 2012

2Q 2009 Volume

Share

Nokia 41%

RIM 19%

Apple 13%

HTC 6%

Samsung 3%

4Q 2011 Volume

Share

Apple 24%

Samsung 23%

Nokia 13%

RIM 9%

HTC 6%

Source: Strategy Analytics, May 2012

0%

20%

40%

60%

80%

100%

2009 2010 2011 Q1

2012

Other

Blackberry OS

Symbian

Windows Phone

iOS

Android

• Rapid disruption in mobile OS

∙ Open source (Android + Linux) taking

over 50% market share in 3 years

∙ In the PC industry open source (Linux)

has only gone from 2% to 5% in the

last 10 years

• Drastically altered smartphone

device maker landscape

16

Highest smartphone volumes in mainstream

Will be addressed

by integrated

application

processor and

modem solutions

ModAp

Source: Strategy Analytics, Dec 2011

0

100

200

300

400

500

600

700

800

900

1'000

2012 2013 2014 2015

Un

its M

n

Premium

High

Mid

Entry

Targeting above 10% market share in volume by 2014

17

Samsung

46%

HTC

7%

Sony

7%

LG

6%

Motorola

6%

Japanese

4%

Chinese

22%

Others

2%

ST-Ericsson executing on Android

Android volume market share

Q1 2012

Android volume market share

Q3 2011

Samsung

38%

HTC

17%

Sony

9%

LG

6%

Motorola

7%

Japanese

5%

Chinese

16%

Others

2%

NovaThor ModAp platforms now in 10 devices already launched with

four top tier Android OEMs and multiple regional players

Source: Strategy Analytics, May 2012

18

CPU

DMIPS

2012 2013

Q1 Q2 Q3 Q4 Q1 Q2

ST-Ericsson

well

positioned in

the LTE ModAp

platforms

landscape NovaThor

NovaThor

L8540

NovaThor

(NovaThor

L9540)

Premium

High

Mid

Entry Competitor

products

Product Roadmap

20

Integrated ModAp solutions for

industry-leading bill of material and size

Leading thin modems for any device

Our approach

Full complement of connectivity

and enhancements

21

Roadmap

HSPA LTE

M5730/80

A9500 A9540

U9500 L9540

Connectivity

ARM

2xA9

1.2G

21

ARM

2xA9

1.85G

100

42

U8520

ARM

2xA9

1.2G

14

M7400/

M7300

In Production/Sampling 2012 2013/2014

U8500

ARM

2xA9

1G

14

To be

Announced

IMG

2xA9

1.2G

100

42

L8540

IMG

2xA9

1.85G

100

42

150

84 M74XX

To be

Announced

FD-SOI

IMG

Rogue

2xA15

2+G

150

84

To be

Announced

FD-SOI

IMG

2xA9

2+G

100

42

CG2900

GBF

To be

announced

CW1100

WLAN

CW1250

WLAN

CG2905

GBF

Partnership with ST for future

application processors

ModAps

GPU IP & speed (MHz)

ARM Processor & Speed (GHz)

Modem DL Speed (Mbps)

22

A disruptive innovation in modem technology

Modem PCB area:

~1400 mm2

Chipset area:

530 mm2

>60%

size

reduction

compared

to solutions

on the

market

today

Source: UBM TechInsigths & ST-Ericsson. Memory excluded/C2C.

Same board as to the left with picture edited to show Thor M7400 size

Thor™ M7400

• Groundbreaking architecture

• SW Modem

• Mass market LTE

• Mid to premium devices

Future architecture investment

– scalability and stability

1st generation

LTE 100+50Mbps

Power consumption

2nd

generation

23

Need to master the whole chain

ST-

Ericsson

Competitor

A

Competitor

B

Competitor

C

Competitor

D

Application

Processor

LTE Modem

Integration

capabilities (ModAp)

Multiple OS support

Advanced silicon

technology

Mastering the supply

chain

Strong

Good

Developing

24

Differentiation with FD-SOI Technology

∙ NovaThor L8540 in FD-SOI would have

∙ Operation up to 2.5Ghz

∙ 2x the performance possible at 0.6V

∙ 35% less power operating at max

performance of NovaThor L8540

∙ For a typical smartphone this

translates to:

∙ 4 hours more high-speed browsing

∙ 2.5 hours more HD video playback

∙ 2 hours more HD video recording

∙ Or an additional full waking day of use

∙ FD-SOI technology offers:

∙ More GHz and less power

∙ Reuse of existing design

∙ At comparable cost

∙ Working with ST

Customer traction continues

26

Latest NovaThor™ phones

Samsung

Galaxy Beam

Dual core 1GHz

HD camcorder

5 Mpixel camera

Integrated projector

Samsung Galaxy

Ace 2

Dual core 800MHz

HD camcorder

5 Mpixel camera

Xperia™ sola

by Sony

Dual core 1GHz

HD camcorder

5 Mpixel camera

Motorola

XT760

Dual core 1GHz

HD camcorder

8 Mpixel camera

27

Continuing to build momentum

Atrix 2

Motorola

Sony

Tablet P/S

Sharp

Aquos

Samsung

Exhibit 4G

Panasonic

Toughbook

Nokia

T7

Nokia

702T

Samsung

Infuse 4G

Samsung

Galaxy S 4G

Lenovo

ThinkPad

Panasonic

Eluga

Samsung

Galaxy S Advanced

Sony

Xperia P

Ont im

WP8500 Tablet

Sony

Xperia U

HTC Sensation

Z710t

Via

U8500

Sony

Xperia sola

Samsung

Galaxy Beam

Samsung

Galaxy Ace2

Motorola

XT760

Samsung

Sidekick 4G

28

Conclusion

2012

Stabilization

2013

Growth

2014

Success

∙ The wireless industry has gone through dramatic changes

∙ adapted our strategy to cope with new landscape

∙ Clear path to success defined

∙ execution of product delivery is priority one focus

∙ major re-positioning and actions in 5 months

∙ major organization re-alignment toward accountability and

execution focus

∙ strategy re-definition and main steps taken

∙ cost reduction roadmap defined

∙ Early signs of recovery visible

∙ successful bring-up of 6 smartphones from market leaders in

last 3 months

∙ Q2 sequential growth over 10%

∙ Confident on future success despite challenges

Thank you

Manufacturing

and Technology R&D

Jean-Marc Chery

Executive Vice President

Chief Manufacturing and Technology Officer

1. Introduction

2

Complete Products, IPs,

& Technologies Portfolio 3

Power

management

MEMS

sensors Analog MCUs / ASICS Imaging Automotive

Smartphones

and tablets

TV & digital

set-top box

Advanced CMOS Power &

Discrete

Analog Mixed

Signal/RF eNVM BCD MEMS

Leadframe package

leaded / leadless MEMS

Leadframe package

leaded / leadless

Laminated substrate

package wired

Laminated substrate

package flipchip

WLSP & 3D

Integration

Technology R&D Model 4

Technology R&D Model 5

Manufacturing Model 6

Flexible and

independent

manufacturing

2. Technology R&D

7

Multimedia Convergence:

The Ideal Technology 8

Multimedia convergence is about…

Performance

Power

leakage

Area scaling Cost of

ownership

Design

simplicity


28nm Bulk Weaknesses 9

0%

20%

40%

60%

80%

100%

180 nm 130 nm 90 nm 65 nm 45 nm 32 nm

Gain by traditional scaling Gain by innovation

Re

lati

ve

% Im

pro

ve

me

nt

Transistor performance improvement

E

nerg

y E

ffic

ien

cy

(DM

IPS

/mW

)

P

eak P

erf

orm

an

ce

(DM

IPS

)

Vdd

7%

4.7x

100%

200%

300%

400%

500%

0% 0%

20%

40%

60%

80%

100%

0.3 0.5 0.7 0.4 0.6 0.8 0.9 1.0 1.1 1.2

Peak performance vs. energy efficiency

Multimedia Convergence: Fully Depleted

Devices Enabling sub-20nm Technologies 10

• Main candidates after bulk are fully depleted devices

• For improved electrostatic control and device scalability

FDSOI = 2D FinFET = 3D

gate

Thin Silicon film

gate

drain

source

heig

ht

Thin Silicon f ilm


28nm FDSOI Better Energy Efficiency 11

En

erg

y E

ffic

ien

cy

(DM

IPS

/mW

)

Pe

ak

Pe

rfo

rma

nc

e

(DM

IPS

)

Vdd

7%

20%

3x

4.7x 1.3

X

100%

200%

300%

400%

500%

0% 0%

20%

40%

60%

80%

100%

0.3 0.5 0.7 0.4 0.6 0.8 0.9 1.0 1.1 1.2

6x


Value Proposition 12

14nm

Bulk-Trigate

28nm LP

High-K/Metal

gate

20nm LPM

Strained-Silicon

28nm Boost

FDSOI/UTBOX

+30%

+20%

Planar Technology – 2D 3D Technology

• High Logic/Memory Integration

• More complexity added to the process

• Available for Design: Q4 2012

• Enable New High Performance Product

2012 2013 2014 2015 2016

20nm Boost

FDSOI/UTBOX

• Available for Design: Now!

• Superior Power Performance

• Faster Design

• Enable Product Cost / Power Reduction

Other VLSI Key Differentiation Initiatives

• Embedded Flash PCM for future

shrink nodes

• Ultra Fast and Low Power

Microcontrollers

• Imaging sensor with BSI on bulk

13

Smart Power: The Ideal Technology 14

• Figures of merit: • Rsp = RonxA

• Gate charge (Qg) – Fsw up

to 5 Mhz

• Safe operating area

• Trends: • Integration density saturating

with LITHO scaling

• Device architecture and drain

engineering

• Thick copper metallization for high current

POWER DEVICES

• Thick Cu metallization & bonding over active areas

• Junction isolation • DTI (Deep Trench Isolation)

• SOI

ISOLATION

• LOGIC: from 100 K gates up to 500 K gates • e-Memories

• BCD8sP best in class for Power devices integration capabilities • Customized solutions by application Low Maks Count

• BCD9s (110 nm) ready for prototype in Q113 and BCD10 (90 nm) process architectures in definition

phase

ST ROADMAP

Smart Power: BCD9S 15

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

BCD6s-DCu BCD8sAuto BCD9s

1.0

0.7

0.5

1.25

0.84

0.59

Power areas comparison vs. BCD6s-DCu

Power Areas from Rdson (BCD6s-Dcu=1)

Power Areas from energy pulsing

Full Copper Metallization

POWER: Top Priority Technology Platforms 16

IGBT

MD6

OFT GaN

SiC

SENSE: Technology Coverage 17

SENSORS

• Accelerometers

• Gyroscopes

• Compasses

• iNEMOTM

• Pressure

• MicroPhone

ACTUATORS

• Thermal

• Piezoelectric

• Electrostatic

Packaging Technology R&D 18

Sense

MEMS and microphones (LGAs), Optical modules and Imagers towards BSI

Power & BCD

High dissipation, miniaturized packages (PSSO, QFNs)

Multimedia Convergence with advanced CMOS

Integration and miniaturization based on BGAs. Towards Flip Chip & WLP

3. Manufacturing

19

Front-End Manufacturing:

Flexibility/Efficiency

• Minimize unused capacity in the downturns and lean

investment to support upsides:

• Model deployment by technology cluster better balancing

internal vs. external with new major initiatives:

• Start new generation of BCD (Smart Power) outsourcing

• Start CMOS 28/20 nm FDSOI outsourcing

• Start advanced CMOS Imaging Sensor with BSI

• Guarantee in-out flexible sourcing at product level

• Make fixed cost variable wherever possible

20

Manufacturing flexibility across market cycle

200mm ? 300mm ?

Front–End Manufacturing:

Outsourcing Map 21

Technology / Source First:

Time to Market Second Alternative

CMOS 45LP Crolles 300 Foundry* No

CMOS 40LP Crolles 300 Foundry* Foundry**

CMOS 32LP Foundry* Crolles 300 No

CMOS 28LP Foundry* Crolles 300 Foundry**

CMOS 28 FDSOI Crolles 300 Foundry* No

Technology / Source First :


HCMOS9A Crolles 200 / 300 Rousset 8 Foundry*

CMOS65 / 55RF Crolles 300 Foundry* No

CMOS Imaging Sensor Crolles 300 Foundry* No

CMOS55

eFlash Crolles 300 Foundry* No

CMOS M10 / F10

eFlash / eEEPROM Rousset 8 Foundry* No

BCD8 Agrate 8 Catania 8 Foundry*

Adv PMOS / VIP /

MDMESH Catania 8 Singapore 8 Foundry*

MEMS Agrate 8 Catania 8 No

* One out of multi-foundry sources ** Another one of multi-foundry sources

• Fast Time to Volume, to catch new business opportunities:

• i.e. MEMS Gyroscope ramp-up within our 8” Fab

• Timely internal ramp-up of Crolles 12” ramp-up for Digital, Analog

CMOS and Microcontroller (embedded Flash).

• Low cost & timely 8” conversion of the Singapore fab for discretes and

mature BCD

Front-End Manufacturing-Internal Fabs Value:

Responsiveness, Differentiation, Efficiency 22

Packaging & Test Manufacturing:

Flexibility/Efficiency • Re-profile and balance some internal capacity

• Outsource proprietary packages growing volumes

• Complete Dual Source qualifications Internal vs. OSAT

(subcontractors)

• Accelerate gold to copper wire conversion toward World Wide

leadership

• Speed-up conversion to high density lead-frames

• Packaging & Test Manufacturing Hub for economy of scale, to call for

alliance is a possible option we are working on to accelerate

23

Packaging & Test Manufacturing:

Outsourcing Map 24

Technology (Adv Logic) /

Source

First:


BGA - FC POP OSAT* Muar Shenzhen

BGA - FC singulated OSAT* Malta No

WLCSP OSAT* OSAT** No

Technology (Others) /

Source

First : Time to

Market Second Alternative

BGA/ BGA-FC Muar Shenzhen OSAT

MEMS Malta Calamba No

Power Automotive Muar

Shenzhen/

Bouskoura Calamba

Power Discrete Longgang

Shenzhen/

Bouskoura OSAT**

QFN Calamba OSAT* OSAT**

Imaging Shenzhen No No

QFP small/Large Muar/Malta OSAT* OSAT**

SOIC Bouskoura Shenzhen OSAT*

Leadframe misc OSAT* OSAT** No

* One out of multi-OSAT sources ** Another one of multi-OSAT sources

Manufacturing and Technology R&D:

2012 Capital Spending

• Front-end manufacturing / R&D

• 20 nm FDSOI capability

• Crolles 300 mm 40 nm mix capacity increase

• Imaging sensor BSI capability

• Manufacturing and Engineering System

• Back-end manufacturing

• Capacity increase and mix evolution at

Asian plants

• MEMS capacity increase

• Manufacturing & Engineering System

• Copper wire conversion

• Others • Testing, IT, quality & safety

25

Investments focused on:

• Strategic growth businesses and key product ramps

• Proprietary manufacturing

Plan: $0.7B to $0.8B

5. Conclusion

26

Automotive Product Group

Marco Monti

Executive Vice President General Manager, Automotive Product Group

Paul Grimme Executive Vice President

General Manager, Sales & Marketing, Europe, Middle East and Africa

© STMicroelectronics, 2012


Focused Product Segments 2 2

Digital

Convergence

Group

(DCG)


& Silicon Photonics

Group

(IBP)

Automotive

Products

Group

(APG)

Analog,

MEMS &

Sensors

(AMS)

Micro,

Memory &

Security

(MMS)

Industrial &

Power

Discrete

(IPD)


Microcontrollers

Power

Discrete Wireless

Smart Power

1 ST

VI Power

1 ST

Total ST

3 ST

APG SAM

2 ST

ST: A Winning Player in the Automotive Market

615

717

855

1065

1153

1269

1331

1386

1004

1420

1674

5.0%

12.6%

0

200

400

600

800

1000

1200

1400

1600

1800

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

APG revenue

APG Market Share2011 market position

3

#1 China

Geographical position

#3 Japan #2 Europe

#2 USA

Partnership with the market leaders

Source: IHS iSuppli, STMicroelectronics

% of 2011 Production shipped to German

Customers ($)

% of 2011 Production

shipped in Germany($)

Source: Strategy Analytics, January 2012

IPs Market Technology & Manufacturing

Strong position with market

leaders

•Leadership position in :

•ASIC

•Intelligent power

•Market leader in:

• Infotainment

•Advanced Safety

Focused on emerging markets

•Market leader in China

•Two design centers in China to serve the local players

•A major design center in India

Partnership

•Long history of partnership with

customers (including COT), 3rd parties and competitors

Technology

•Market leader in Smart Power

technologies confirmed with the

110nm node

•40nm embedded Flash for

microcontroller

•Leader in Power Technologies

•Extending product offer thanks to RF,

Camera, IGBT, MEMS…

Products

•30 years of history in Smart Power

product design

•Power architecture for 32-bit microcontrollers with strong market

success with market leaders

•40 years of experience in Audio and

Infotainment

•Full product offer in Power •Complete system offer for most of

the Automotive systems

Leader in innovation

•Full product offer in high margin

Active Safety •Radio Frequency for safety and

Infotainment

•Prepare to serve the need of the car

electrif ication

Automotive-Committed

Internal Manufacturing

•In-house manufacturing driven by

Automotive

•Multiple internal sources to offer a market unique supply chain

protection

•Second source availabilities in

foundries to guaranty flexibility during

market cycles

Main ST Enablers 4

Automotive Semiconductor Growth Drivers 5

Semiconductor contents per car ($) Production car forecast (Units)

274

340 350

432

168

238

100

200

300

400

2011 2012 2013 2014 2015 2016 2017

Average Eur/USA/Jap China

Ignition

Door locking

Electronic gearbox

Air conditioning

Seat heating

Automatic mirror

Cruise Ctrl

Airbags

ABS

Gearbox

Night vision

Start Stop

Hybrids

LED lighting

Pedestrian detection

Driver assist maps

Car 2 car

Brake by wire

Electric vehicles

2. Volumes 1. Pervasion

Source: Strategy Analytics, January 2012, JD Powers, March 2012

1980 1990 2000 2010 2020 Year

30 35 40 70 >110 Mil Car 5% 15% 22% 30% 50%

Electronics

(% Car

Cost)

30

40

50

60

2011 2012 2013 2014 2015 2016 2017

Europe-US-Japan Emerging

Pervasion Driving Growth in Automotive 6

Semiconductor contents per car ($)

274

340 350

432

168

238

100

200

300

400

2011 2012 2013 2014 2015 2016 2017

Average Eur/USA/Jap China

Ignition

Door locking

Electronic gearbox

Air conditioning

Seat heating

Automatic mirror

Cruise Ctrl

Airbags

ABS

Gearbox

Night vision

Start Stop

Hybrids

LED lighting


Driver assist maps

Car 2 car

Brake by wire

Electric vehicles

1. Pervasion


1980 1990 2000 2010 2020 Year

30 35 40 70 >110 Mil Car 5% 15% 22% 30% 50%

Electronics

(% Car

Cost)

Pervasion Driven by Innovation 7

The concept of transportation system is changing

• Driven by performance

• Driven by engine • Dangerous • High consumption

• High pollution • For experts

• High maintenance

• Engine almost invisible

• Mechanics almost invisible • Safe • Green

• Family oriented/Easy-to-use • Zero maintenance/Reliable

• Comfortable • Entertaining

Cars represent 8% of total

petrol consumption

Car emissions represent

10% of the total CO2

generated by humans

Source: IHS iSuppli, STMicroelectronics

Electronics & Semiconductors Makes the Difference 8

TCS

ABS

ESP

• Power Train

• Safety

• Infotainment, connectivity,

active safety

The mechanics is evolving

but the speed is slow and mostly driven by the weight reduction

It is the evolution of the

electronics that makes the interaction with the mechanic more efficient

The Hybrid Car

Only the availability of a reliable, low cost,

high voltage power Integrated technology makes high volume production of hybrid cars possible

First electric car R. Anderson

First hybrid car F. Porsche

First Prius In the market

1839 1869 1997

9

Why ST in Innovation

More than 25 year presence

and commitment in Automotive

Partnership attitude with the

market leaders in Europe, Japan, Korea, USA and

China

Proprietary technology

portfolio able to cover all the Automotive applications

Broad range offer (leader in ASIC,

power & intelligent power, radar,

investing in 32-bit MCUs to support system solutions)

Internal manufacturing strategy: better cost & flexibility with a unique supply chain

security

$1.7B billing (FY11) with

strong cash flow and profitability financing R&D

Dedicated Automotive organization

10

A Sample of ST’s Innovative Products 11

110nm Smart Power

for Engine, Dual clutch gearbox,

Safety and Body

40nm eFlash 32-bit

multicore micro based on Power architecture for Power Train and

Safety

RF modules and

dedicated processor for active safety

X by wire systems

(Micro + Smart Power) with safety on board

Li-ion battery

management for electrification

Full system offer in

Infotainment (from car & satellite radio to Navigation to car to

car solutions)

Intelligent power for

Xenon and LED lamp controllers

More than $2B

design-wins

already achieved

ST Gate driver

ST-A1 Power Module

Aux power supply Current sensor

HEV Main Inverter

Battery Management

Inverter, DC/DC, Power module …

Ready for new urban mobility concept in

partnership with key customers

“Low voltage” electric car

ST Presence in Car Electrification 12

Evolution Towards Active Safety

Video

0 to 80m

Long range

radar

1 to 150m

Video

0 to 80m

Short range

radar

0.2 to 20m

Ultrasonic

0.2 to 3m

2010

2011

+42%

ST Sales Growth

77 GHz

24 GHz

48 GHz

Through sensors (RF, Camera, Gyro) the car recognizes a possible dangerous event and

autonomously takes action. The car is more and more becoming a node of an intelligent

distributed network

13

Car Volumes Driving Growth 14

Production car forecast (Units)

Ignition

Door locking

Electronic gearbox

Air conditioning

Seat heating

Automatic mirror

Cruise Ctrl

Airbags

ABS

Gearbox

Night vision

Start Stop

Hybrids

LED lighting


Driver assist maps

Car 2 car

Brake by wire

Electric vehicles

2. Volumes


1980 1990 2000 2010 2020 Year

30 35 40 70 >110 Mil Car 5% 15% 22% 30% 50%

Electronics

(% Car

Cost)

30

40

50

60

2011 2012 2013 2014 2015 2016 2017

Europe-US-Japan Emerging

Volumes Driven by Emerging Countries 15

2002 2020

Vehicles per 1000

inhabitants

• No time for a standard development cycle time

• Fast, accurate, reliable, low cost

• Full system approach

• No local IC makers are available

Semiconductor demand by Region ($B)

Source: Strategy Analytics, January 2012

The Chinese market

Source: Bosch, April 2012

5.3

3.4

7.3

3.2

4.3

7.9

4.9

10.3

8

8.6

USA

Japan

Eur.

China

ROW

2018

2011

A completely different market

Why ST in the Emerging Markets 16

Full system offer in all

car applications

Strong support function

including SW / HW specific automotive validation

Broad offer to support all

product line up (from small motorcycle to premium

vehicles)

Strong local presence with

two dedicated local design teams in China (SH, SZ) and one in India (Noida)

Internal manufacturing to

drive cost reduction

More than 30 years of IPs

ready for Automotive

Deep connections with

market leaders in China, India on top of European

and Japanese

ST Product Offer for Emerging Markets 17

1 / 2 / 4 Cyl Engine

control for Gasoline &

Diesel Direct Injection

Traditional and Low cost

Dual Clutch transmission

Air Bag modules

Single chip Body modules

(door, Junction box, ligh,

air conditioning ,,,) Car Connectivity and

Protocol

Low cost Navigation including

multi constellation GPS

(Glonass, Compass, Galileo)

OEM and After Market

car entertainment

ST Full Kit for GDI Engine Control* 18

2010

2011

+53%

Engine control in China

U-chip

32-bit micro

* GDI: Gasoline Direct Injection

ST Leadership in Car Infotainment 19

Positioning

(GPS-Glonass-Galileo-Compass)

Navigation & Audio

Controllers

Terrestrial & Satellite Tuners

Digital Audio Amplifier

Phone + Position + User Interface + Sound

Leveraging the new role of

Multimedia phones to enhance Infotainment experience

Leading the Terrestrial Radio

digitalization (DAB-DRM-HD)

Maintaining leadership in

Satellite Tuners

Bringing to market the First

Multi-Constellation Positioning IC

Reinforcing leadership in

Audio Power

http://www.st.com/stonline/stappl/publish/stwebresources/PL__Press__Release/TDA7850LV_p3066sHigh.jpeg

APG Business Priorities

• Grow faster than the market

• Keep Smart Power / intelligent power leadership

• Gain share in 32-bit MCUs (Power Architecture) on top of $2B already design won

• Extend the penetration of Power devices driven by Electrification

• Maintain leadership in Body and Infotainment while expanding penetration in

Emerging markets

• Focus on innovation to increase profitability

• New 110nm BCD generation

• 40nm eFlash to support microcontroller growth

• Complete system offer in emerging markets

• Lead high margin Advanced Safety with strong innovation contents

20

Analog, MEMS & Sensors

Benedetto Vigna Executive Vice President, General Manager, Analog, MEMS & Sensors Group

Marco Cassis Executive Vice President, President, Japan-Korea Region

0

100

200

300

400

500

600

700

800

900

US

$M

Merchant

Captive

Foundry

2011 MEMS Top Players Ranking

Source: IHS iSuppli

2

Thermal Inkjet Printhead

Accelerometer and Gyroscope

Leading the MEMS world of Micro-Actuators and Sensors

Source: IHS iSuppli, January 2012; Yole Developpement

•ST #1: MEMS Motion Sensors for consumer

electronics & mobile handset market •ST #1: Accelerometers, Market Share ~50%

2006 2011

•ST #1: Gyroscope

•Market Share ~60% •Achieved in only two years

60%

$650M

$30M

Strong and large IP portfolio

ST MEMS Revenue Gyroscope Market Share

3 Growing Faster Than the Market

•China

•Japan

•Korea

•USA

Source: Samsung Website

Rapid Disruption in Mobile OS

Leading Fast Growing Android Ecosystem 4

Source: Strategy Analytics, May 2012, ABI, March 2012

∙ Open source (Android + Linux) taking over 50%

market share in 3 years

∙ In the PC industry open source (Linux)

has only gone from 2% to 5% in the last 10 years

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2009 2010 2011 Q1 2012

Other

Blackberry OS

Symbian

Windows Phone

iOS

Android

5 Billion MEMS in the Market

Accelerometers, Gyroscopes, Compasses

Microphone and Pressure Sensors

2006 2011

2 Billion units of Motion

MEMS

3 Billion units of Thermal

Inkjet Printheads

+

Outstanding Global Manufacturing Capability with Dual Sourcing

5

A Modular & Complete Platform for iNEMO™ 6

Standalone Gyroscope Accelerometer + Gyroscope

Accelerometer + Gyroscope + Compass

2012: Year of the Environmental Sensors 7

High Performance Microphone

Altimeter for Indoor

Navigation

8 ST Masters Extreme Analog & MCUs

SENSORS + MICROCONTROLLER + RADIO

ST Leading the Motion Sense Revolution 9

3-Axis Digital

Gyroscope

6-Axis

Geomagnetic Module

iNEMO-M1 System-on-Board

9-Axis plus 32-Bit MCU

13x13 mm in a Board

iNEMO® System-in-Package

9-Axis plus 32-Bit MCU in

small footprint

32-bit Microcontroller

3-Axis

Accelerometer

3-Axis

Gyroscope

32-bit Microcontroller

System-on-Board System-in-Package

3-Axis

Magnetometer

Dawn of MEMS Consumerization Wave 10

Intuitive Interface

Accelerometers

Gyroscopes

Compasses

Nintendo 3DS Accelerometer

Smart Phone Gyroscope

Intuitive Touch Screen Interface 11

Multi-Touch + Hovering for

Enhanced User Interface in Tablets and Smartphones

New Applications Enabled by MEMS 12

Navigation

& LBS

Remote

Monitoring

Image

Stabilization

3-Dim Tagging

Fitness/Wellness and

In-House Tele-health

Augmented Reality

Location Based Services (LBS)

Indoor Navigation

and Dead Reckoning

Image Stabilization

Dual-Core 3x Digital Gyroscope 13

GAMING OPTICAL IMAGE

STABILIZATION

NO OIS YES OIS

+

MEMS for Indoor Navigation 14

ST is the only supplier able to supply all of the MEMS sensors

necessary for geo-localization

MEMS + GPS + WI-FI enable Indoor Navigation

Accelerometer, Gyroscope, Magnetometer, Pressure Sensors

Paving the Way to a New Acoustic Era

Acoustic

Overload Point

Signal to Noise

performances

Source Localization

Unidirectional

Beam Forming

Sensitivity Matching

Beam Forming

Voice Capturing

Increased Intelligibility

Conferencing

Smart Accessories

Microphones

Headphone

15

http://www.google.it/imgres?imgurl=http://phoneborn.com/wp-content/uploads/2011/02/CellPhoneTalking.jpg&imgrefurl=http://phoneborn.com/tag/news/&usg=__XBO56ldeEzO_lFU8OMI9XvQISTM=&h=381&w=305&sz=37&hl=it&start=3&zoom=1&tbnid=l25-xDBh-eYhLM:&tbnh=123&tbnw=98&ei=nnKhT7_iD8ey8QP02-mbCA&prev=/search?q=talking+mobile+phone&hl=it&safe=active&gbv=2&tbm=isch&itbs=1

Entering Automotive with Innovative Products 16

World First Automotive Grade 3-Axis Gyroscope

Analog and MEMS Around the Body 17

ECG

(Analog)

Glaucoma Lens

(MEMS)

Insuline Nano pumps

(MEMS)

3D Ultrasound

(Analog)

Remote Monitoring 18

ST Analog Front-End Ultra low power Small form factor

Blue NRG Radio

• BLE Controller

• BLE Stack for external Host Processor

• BLE profiles offer (proximity, watches, Health & Fitness)

Analog & MEMS for an Intelligent World 19

Sensors

(MEMS)

Analog

(ASSP) MCU

Wireless

(RF)

RF MEMS

ASSP

Sensors

(MEMS)

Analog

(ASSP)

Wireless

(RF)

Smart Sensors + On-Board Radio

Sensors & Radio in Smart System

Sport & Wellness

Healthcare Building Logistics Factory

Automation

http://www.cfs.it/website/department.aspx?id=3426&pkey=20&fl=

Conclusions 20

• # 1 in MEMS Market and growing fast:

• Wide product portfolio and extended customer base

• Nimble product development

• Timely investment in fully-owned state-of-the-art manufacturing

• Expanding our presence in Automotive

• Enlarging our customer base entering in small and medium size customers with

new applications

• Well positioned to become undisputed leader in Smart Sensors for emerging

applications in Consumer, Automotive, Industrial and Healthcare Markets

• Leverage leading MEMS position, our nimbleness and investments to increase

presence in analog world of General Purpose Analog and ASSP

Digital Convergence

Gian Luca Bertino Executive Vice President,

General Manager, Digital Convergence Group

Robert Krysiak Executive Vice President,

President, Americas Region




Digital

Convergence

Group

(DCG)


& Silicon Photonics

Group

(IBP)

Automotive

Products

Group

(APG)

Analog,

MEMS &

Sensors

(AMS)

Micro,

Memory &

Security

(MMS)

Industrial &

Power

Discrete

(IPD)


Microcontrollers

Power

Discrete Wireless

Digital Convergence Group:

A Complete and Flexible Offer 3

Smartphones

& Tablets

Digital TV

& Monitor

Digital

Set-Top Box

Automotive

Infotainment

Network

Infrastructure

(ASIC)

● ASIC for network infrastructure & legacy markets (i.e. printers)

● ASSP for Digital TV, Monitor, STB, car infotainment

Q1 2012 Highlights 4

• Earned seven major design wins in China, Europe and the US for the new 40nm-IC mainstream STB family.

• Continued strong momentum in India cable and satellite markets leading to a doubling of sales volume by earning multiple design wins.

• Collected several design wins in Europe and Asia for the ARM Cortex A9-based, “Orly” high-performance Home Application processor manufactured in 32nm process technology.

• Earned design-in of Freeman family of products with a Tier1 OEM customer serving the European market.

• Won multiple design-ins at Tier1 OEMs with the “Athena” multimedia monitor system-on-

a-chip family into a diverse range of products, including high-performance monitors, TVs, and digital signage.

• Earned two ASIC designs in 32nm process technology for networking applications from a leading player in the market.

Growth Drivers:

Cloud Infrastructure & Multi-Screen Clients 5

Smartphones

Tablets, E-Readers

Set top boxes

Smart TVs

Mobile PCs Car Infotainment

Residential Gateways

Tremendous Business Opportunity 6

Source: ABI Research, HIS iSuppli, IMS Research Display Search, Strategy Analytics, Cisco, STMicroelectronics 2012-2015 Units

90M155M

245M285M

4M13M

80M100M

225M300M

645M1010M

120M200M

> 2 Billion Smart Consumer Devices by 2015 Global internet traffic to quadruple by 2015

Up

to

10

0 M

gate

s

20

0-4

00

mm

2

Up

to

50

Mga

tes

50

-20

0 m

m2

Up

to

20

Mga

tes

Up

to

50

mm

2

2008 2009 2010 2011

65nm 55nm 40nm 32nm

First Tape Out (Full Product)

First 28nm ASIC Award in Q1 2011

ASIC

2012

28nm

First ARM based Networking ASIC Award

in Q2 2012

> 10 new ASIC ramping up in 2012/2013

Best In Class • Technology • Methodology • IP Blocks

7

Athena

DisplayPort-based Product 8

HS Dual/ Quad LVDS

Audio L/R, SPDIF, I2S

DDR 2

Flash

VGA Component

3D Monitor/WQXGA

MFM

AIO PC / Net Monitor

Public Display

DP, iDP, eDP

Daisy Chaining

DAC

TTL

Audio L/R, SPDIF, I2S

9 Set-Top Box and TV

DCTS

All these and much more, already implemented & certified

Full range of Codec

Supporting All Connectivity

•Sata, PCIe, USB3, MultiPHY

•65/55nm shipping, 40nm ramping, 32/28nm sampling MiPhy

•1 GB/sec: 40nm available, 32/28nm sampling

•10 Gb/sec: 32/28nm in development (silicon in 2013) Ethernet

•65nm shipping,10 Gb/sec

•32/28nm in silicon, 14 Gbit/sec

•25 Gb/sec for 20nm in development

SerDes

•DP 1.2, 55nm shipping

•HDMI 1.4, 55/40nm shipping, 32/28nm in development

•MoCA, Docsis Consumer

Advanced Security and DRM

Best in Class Video IP

World Class IP Portfolio

Input

Video

Captu

re

D

R

A

M

DSP

Processor

RGB444 Graphics

Inp

ut

3x

3

Input

Scalin

g

TNR/SNR

CCS

AFM

DNR

MADi/MCDi

VPI

Output

Scaling

LTI/CTI

Sharpnes

s

SuperRe

s

ACC

ACM

Color

Controls

2D->3D

Composito

r

(picture

blender)

Pre

Gamma

LUT

Gamma

Map

3x3

LED

BKLT

DRV

Over

Driv

e

Post

Gamm

a

LUT

Dither

MVE

Frame Buffer

Controller

(DMA Control)

Input

Sourc

e

MUX

10

http://www.adobe.com/go/fmrms_rfi_en_us

Leading Convergence: Next Step

• Creation of a dedicated unified processing platform team

• Combining strengths between ST and ST-Ericsson

• Skills, IP, Ecosystems, IP, R&D Critical Mass

• ST will develop a unified processing platform for a wide range of applications

• ST-Ericsson will license ST Application Processor

• ST will sell

• Stand alone application processor for smartphones and tablets applications through

ST-Ericsson’s sale channel (when existing sales coverage is in place)

• Directly stand alone application processor for all cases and/or applications not

covered above

11

To offer a unified processing platform to serve all markets

Unified Processing Platform 12

Converging on ARM Cores

M/P 2012 ->

Next Step Converging on

Unified Processing Platform

Software Framework

Service Operators

New Markets

Manufacturers

The Benefits of a Unified Platform

Unified Platform

• Multi device • Multi screen • Multi market

13

Secure services provider

Benefits for ST • Development synergies • Take the best in each domain • Unique position on multi segment

Benefits for the industry • Better TTM for multi segment services • Less effort for 3rd parties / manufacturers • Multi-device & services vision

Summary & Key Opportunities for DCG 14

ST Assets

• STB Market Leader

• Performance Leader

• Environment Commitment

Market Trends

• Entertainment

• Cloud Services

• Multi Interface and Screen

ST Growth in 2012

• Ramp of new ASICs

• Ramp of Athena and other DisplayPort products

• Ramp of Orly and other STB products

Imaging,

BiCMOS ASIC & Silicon Photonics

Eric Aussedat Corporate Vice President

General Manager, Imaging, BiCMOS ASIC & Silicon Photonics Group

Flavio Benetti

Group Vice President

General Manager, Mixed Processes Division




Digital

Convergence

Group

(DCG)


& Silicon Photonics

Group

(IBP)

Automotive

Products

Group

(APG)

Analog,

MEMS &

Sensors

(AMS)

Micro,

Memory &

Security

(MMS)

Industrial &

Power

Discrete

(IPD)


Microcontrollers

Power

Discrete Wireless

BiCMOS ASIC &

Silicon Photonics


ICs for

Optical Interconnect

BiCMOS in Communication Infrastructure 4

BiCMOS process family

RF ICs for

Base Stations

Market Trends 5

US$M 2011 2016 CAGR

Y16/11

Optical Modules ICs

(include Photonics) 325 570 11%

Infrastructure RF 160 360 16%

Mixed Processes Div

TAM 485 930 13%

Internet traffic Mobile network SI-photonics

• Internet traffic growth drives fiber optics

pervasiveness

• Mobile data traffic push Wireless Network

evolution from Macro Base Station to

Heterogeneous Network based on Small Cells

(Micro/Pico / Femto BS) driving RF market

demand increase

• BiCMOS demand is driven by higher

frequency and integration

• Miniaturization, growth in speed and strong

demand for reduced power consumption will

be driving factors for Silicon Photonics

Parallel optics


Our Pillars 6

2016 2012

R

F

ICs for Wireless Base Station Infrastructure

Technology : BiCMOS7RF Packages QFP etc.

Products : Synthesizer, Mixers. Down-Converter

Op

tica

l M

od

ule

ICs for Telecom & Datacom Optical Transceivers

Technology : BiCMOS9/MW Packages QFP etc.

Products : Trans-Impedance Amplifiers, Clock Data Recovery, Photo Detector

S

ilico

n P

ho

ton

ics

Components for Optical Connections (Transceivers etc.)

Technologies : PIC25 Photonic, Advanced Copper Pillar, Optical Packaging

Products : Integrated Transceivers, HS Data Link

ASSP/COT

Coming

Silicon Photonics and Luxtera Licensing

• ST and Luxtera, a world leader in Silicon Photonics, signed a

partnership contract in December 2011

• ST has acquired Luxtera technology license, and is setting up the

process in ST CMOS 65nm 12” Crolles line (PIC25G)

• Solutions will be based on Hybrid integration with CMOS die through

copper pillar technology

• ST will design, manufacture and sell products based on PIC25G.

• PIC25G process will be available in Q1 2014.

7

TIA

TIA

Drivers

CMOS

Circuitry

Photodetector

Passive

Alignment

Modulator ECL

Filter Multiple

Channels Silicon Photonics is a technology that allows to process

and manipulate light signals on silicon and that can be

produced using existing semiconductor fabrication

techniques.

Silicon Photonics allows dramatic increase in processing

speed and outstanding power consumption reduction.


LAN

Data Center

Routers

Switches

HPC

Silicon Photonics Application Areas 8

Transport

Metro

Access

Active optical cable

Transceivers

Photonics ICs

ASICs

Parallel processing

Multicore

interconnection

WAN

Enterprise

Rack to Rack

Board to Board

Chip to chip

On Chip

PRODUCTS MARKET SEGMENTS


BiCMOS Strategy 9

Optical ICs

RF

Silicon Photonics

• RF

• Develop RF ASSP Roadmap

• Address HetNet topology evolution

• Optical Modules ICs

• Consolidate leadership with key customers

• Develop Optical ICs for open market

• Silicon Photonics

• Set up process in Crolles 12”

• Address key customers

• Master full supply chain

Imaging

Imaging Division at a Glance

Core technologies

• FSI & BSI CMOS imaging process

• Pixel & sensor design & integration

• Camera module design & automation

• Image improvement algorithms & integration

• Innovative system development & industrialization

Imaging teams

• R&D in UK, France, Singapore & India

• Operations & manufacturing in France,

Singapore & China

• VLSI Vision, a pioneer of CMOS imaging, acquired by ST in 1999

• 1st imaging products started in ST in 1995

• Internal sensor manufacturing since 2000

• >700M sensors & camera modules delivered to mobile phone makers

• >900M sensors delivered to industry players

• >700M ISP delivered to the industry

A long standing commitment

11

More than 20 years experience in

CMOS image sensor technology,

camera system expertise & mass

volume manufacturing.

A Unique Value Chain: From internal

manufactured sensors to Cameras and

System Processing.

Imaging Market Trends 12

0

5000

10000

15000

20000

25000

2011E 2012E 2013E 2014E 2015E 2016E

CMOS sensors Other sensors Modules ISPs

TAM (M$)

39%

3% 2%

42%

2% 4% 4%

38%

6% 2%

34%

3%

3% 2%

4% 6% Phone cameras

Tablet cameras

PC cameras

TV cameras

DSC/DSLR

Camcorders

Gaming

Security

Automotive

Medical

Others

2012

$8.4B 2016

$13.3B

Source: IHS iSuppli, TSR, STMicroelectronics

• Continuous & important TAM growth,

and a rising everyday use of image

capture & sharing

• Increasing camera attach rate in mobile

handsets and tablets • Primary & secondary camera (avg. 4.7Mp in 2016)

• Growing ASP due to resolution evolution & camera

module

• CMOS eliminating CCD in Digital Still

Camera, migrating from high-end to whole

range

• New applications fueling growth: • Proximity sensing, user detection, optical HMI

• New market segments growing: • Automotive, gaming, medical, security, sports

Imaging Strategy: Diversification… 13

• Deploy products diversification and innovation across various segments and

lead new applications

• Proximity sensors

• Man machine interface, gesture recognition

• Automotive, gaming, medical, security

• Partnership with leaders in defined segments

• Support diversified business models

• Image sensors, sensors, modules, ISPs, wafers

• Expand on higher value segments in mobile imaging products

• New Products expansion: new moving optics camera / BSI image sensors & modules / Prime

camera & video modules / Generic, Customer Driven ISP’s

• Extending Customer Base

Mobile

Imaging Digital

camera

New

applications New

Markets

http://www.google.fr/imgres?imgurl=http://www.smarthome.bg/images/IP camera YE-520P.gif&imgrefurl=http://www.smarthome.bg/index.php?cPath=42&osCsid=f8919df86bae33d203c554a0613d58ba&usg=__wk5BvD7u2pdpPmhBa0aKqzZbIE4=&h=420&w=450&sz=66&hl=fr&start=13&sig2=N79SEZ45Xu4Bsvrbh5E1cg&um=1&itbs=1&tbnid=rOJHNWEIgkgJlM:&tbnh=119&tbnw=127&prev=/images?q=IP+camera&um=1&hl=fr&sa=N&rlz=1T4GZEZ_frFR275FR275&tbs=isch:1&ei=_sYqTJu_HYfBsgb-tLjEBA


…keeping the 4 Pillars of ST Imaging 14

Im

ag

ing

Se

mi-co

nd

ucto

r Image Sensor

• Production from 1.4um to 5.6um pixel

• 1.1um development

• From VGA to 24Mpix

S

em

i-co

nd

ucto

r Sensor

• User detection

• Proximity module

• Optical navigation

• Man machine interface

• Automotive

• Medical

Pa

cka

ged

Le

ns &

Se

nso

r Module

• Fixed focus camera

• Wafer Level reflowable camera

• EDOF camera

• Auto-focus camera

• Innovative optics, assembly & test technologies

• ST manufacturing

• Key optics & supply chain partners

Ima

ge

Sig

na

l P

roce

ssin

g

Coprocessor

• Stand alone ISP

• Full ST video pipe IP

• Integration of third party IP on demand

• CMOS40nm ST & foundries in production

• Developing IC’s in12” CMOS28nm

• ST internal BGA assembly line

12’’ manufacturing capabilities both In-House and at Foundries

Recent Achievements 15

Mobile Phone

Design win and production volumes of a new improved low light sensor in some Windows smart-

phones. Phones shipping on the market now.

Design win and production volumes of a new ISP for an Android smart-phone market leader,

several phone models shipping on the market now.

3rd generation of fully integrated (ISP + image sensor), camera module in customer ramp-up.

Smart phones available now.

4th generation of reflowable camera module, with enhanced image quality in customer ramp-up

New applications

Security: Design win / business award at a leading security camera manufacturer

Medical: Business award of a new generation of CMOS X-Ray sensors for medical applications

with a leader in the industry

Digital still camera: Design win, business award in samples stage of a high performance large

image sensor for a leading brand

Proximity sensor: Technology hitting the market. Excellent customer feed-back based on

proprietary time of flight technology

Automotive: Won major safety system camera and processor for a key European Tier 1 and OEM

Industrial & Power Discrete (IPD)

Carmelo Papa Executive Vice President General Manager, Industrial and Multisegment Sector

Matteo Lo Presti

Group Vice President

General Manager, Industrial and Power Conversion Division

IPD at a Glance

• > 600 new products introduced in the

last two years

• 16% of sales with products less than 2

years old

• 160 new patents and patent applications

(filed or granted) in 2011

2

2009 2010 2011

2011 Key Facts

• TAM = $37.8 B • Billing = $2.1 B

• Market share = 5.5%

Innovation

Revenues

6,200 Available Products

5,900 Supported Customers


AMERICAS 11%

EMEA 23%

GC&SA 57%

JAPAN & KOREA

9%

IPD: 2011 Results & TAM 3

AMERICAS 25%

EMEA 32%

GC&SA 33%

JAPAN & KOREA

10%

Distribution 46%

EMS 7%

OEM 47%

39 41 44 45 48 50

2012 2013 2014 2015 2016 2017

US$B

IPD Total Available Market >5%

CAGR

2012-17

Sales by region of shipment Sales by region of origin Sales by customer type


New Products: Key Contribution to IPD Sales 4

Complementary to IPD advanced portfolio

Extremely competitive design

and manufacturing process

Power packages enabling

high power applications

and power density

optimization

10.5%

11%

> 14%

> 16%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

0

20

40

60

80

Q111 Q211 Q311 Q411

New Product Contribution (%) to IPD Sales

16 new key power and smart

power technologies

introduced in the last 2 years

2014 Target: 22%

Large Power, Analog and

Digital IPs portfolio for

developing Advanced Smart

Power products

Source: STMicroelectronics

IPD: Worldwide Leadership 5

High Voltage

Power

MOSFETs

( > 400 V)

#1

Market

Share

19%

Thyristors

& Triacs

( < 55A)

#1

Market

Share

24%

Schottky &

Ultrafast

Diodes

#1

Market

Share

14%

IPAD™

#1

Market

Share

23%

EOS, ESD &

Lighting

Protection

#1

Market

Share

13%

Analog

ASSP

(Industrial)

#2

Market

Share

11%

• A wide range of power and smart power

technologies

• Innovative power packages enhancing power-density

• Competitive manufacturing

• System-on-chip and system-in-package

expertise

• Innovative silicon structures and new composite materials

• Application know-how and experience

Distinctive Capabilities

Source: WSTS, IHS iSuppli, STMicroelectronics

Leading Positions in our Markets 6

Industrial 47%

Computer 19%

Telecom 15%

Automotive

10%

Consumer

9%

Computer

• #1 in Rectifiers for Server and Adapters

• #1 in HV Resonant Converter ICs for Adapters

• Key player in HDD Motor Control ICs

Telecom

• #1 in AMOLED Drivers

• #1 in ESD & EOS Protections for Mobile/Tablets

• #1 in IPADTM & RF IPD for Mobile/Tablets

• #1 in Protection for Phones, xDSL & Ethernet Gateways

• #1 in Rectifiers for Telecom Base Stations

Automotive

• Key player in HV Power Transistors for HEV/EV

• Key player in Rectifiers

• Key player in DC/DC for Car Infotainment

• Key player in Overvoltage & ESD Protection

Consumer

• Key player for HDMI-STB Protection

• Key player in HV Power MOSFETs for LCD TV

• Key player in LNB Supply ICs for STB and DTV

Industrial

• #1 in PLM for Smart Metering

• #1 in Fluorescent Lighting ICs

• #1 in PFC ICs & Diodes for SMPS

• #1 in HV Smart Driver for BLDC Motors

• #1 in Thyristors & Triacs for Heaters, Motor

Control, Load Activation and Light Dimming

Source: WSTS (end 2011), STMicroelectronics

Key Market Trends 7

Portable

Ultra low power & high efficiency

2015 IPD - TAM: $10B

CAGR (2012-15): 7%

Enhancing User Experience

Smart Grid

Green, sustainable, energy management & distribution

2015 IPD - TAM: $6.8B

CAGR (2012-15): 23%

Growing Energy Demand

Automation

Efficient, safe, comfortable, secure & private

2015 IPD - TAM: $7.6B

CAGR (2012-15): 14%

Integration & Connectivity

Source: IHS iSuppli, Semicast

Focus Applications & IPD TAM 8

Energy

Generation,

Conversion &

Storage

2015 TAM: $3.5B

CAGR12-15: 21%

Hybrid &

Electric

Vehicles

2015 TAM: $1.4B

CAGR12-15: 27%

Factory

Automation

2015 TAM: $2.2B

CAGR12-15: 7%

Industrial

Motor Drives

2015 TAM: $2.3B

CAGR12-15: 8%

Mobile,

Tablet &

Handheld

Consumer

2015 TAM: $6.4B

CAGR12-15: 13%

Consumer

Medical

2015 TAM: $1B

CAGR12-15: 9%

System Solution Approach

• Power Management and Smart Power ICs

• Industrial Analog ASSP and ASIC

• Rectifiers, Power Diodes & Protection

• Thyristor & Triac

• IPADTM and RF IPD

• LV Trench and HV Super Junction MOSFET

• IGBTs and Intelligent Power Modules (IPM)

• Microinverter and Power Optimizer for Photovoltaic

• Smart Metering with Power Line Communication

• Plug-in Hybrid and Electric Vehicles Battery Charger

• Power Modules for Industrial Automation

• LED Lighting

• AMOLED Power Supplies

Key Enabling Products

Smart Grid Automation Portable

Source: IHS iSuppli, Semicast, Yole Devéloppement, STMicroelectronics

• MDMeshTM V, the most innovative Super-junction technology

• Rectifier portfolio responding to all Inverter & µ-Inverter

topologies, output voltages and currents

• Intelligent Power Modules, hosting IGBT and Smart Drivers

Power Discrete

Focusing on Growing Markets 9

• Unique System-on-Chip architecture with highest integration for emerging SMART GRID applications

• Modular and flexible platforms allowing full application

coverage

• Narrowband and Broadband complete portfolio

Power Line Modem

80% Market Share in Smart

Metering

150% Sales Growth 2011 vs 2010


Tens of new Design-wins in key

customers on Appliances and Air Conditioning

$6.8B TAM in 2015 CAGR 12-15: 23%


Several Design-wins in Europe and

China now in ramp-up phase

2011 Key Achievements

Smart Grid

Source: IHS iSuppli, ABI Research 2011, STMicroelectronics

• IGBT, reducing power losses and improving power density; 3 new technologies introduced in the last two years

• smartDRIVE, advanced IGBT/MOS driver • Embedding OpAmp, Comparator and bootstrap Diode, smart

Shut-Down

IGBT and Gate Drivers


• Advanced Micro-Stepping and Multi-Motor Drivers (new easySPIN, dSPIN, FlexSPIN)

• Accurate and smooth motion with excellent position resolution

• Monolithic Motor Drivers (Power Spin)

• Compact, simple to use, scalable platform including a wide range

of devices to fit different design architecture

Motor Drivers ICs

$7.6B TAM in 2015 CAGR 12-15: 14% Automation



25% Market Share

More than 100 new worldwide

Design-wins

7% Market Share


Source: IHS iSuppli, WSTS, STMicroelectronics


• High Voltage Converters VIPerPlus • Towards zero stand-by consumption and monolithic power up to 40W

• Innovative Architecture for Mobile Phone Chargers

Smart Power: Low Power AC-DC

$10B TAM in 2015 CAGR 12-15: 7% Portable


• Complete system solution for mid-large size display • Full range portfolio including DC-DC supply, PMICs and Scan Driver ICs

• State-of-the-art BCD SOI technology

• Innovative miniaturized package

AMOLED Display ICs

• Common mode filter + ESD protection

• Deep attenuation ESD + EMI filters

• RF IPD (Couplers, Diplexers, Baluns, Filters) & Antenna Tuner

Integrated Passive and Active Devices (IPAD) & Protection

62% Market Share*

23% Market Share**



Source: IHS iSuppli, Semicast, * Barclays Capital, ** WSTS, STMicroelectronics

A Flavor on New Advanced Products

12

A Flavor on Advanced Power Discrete 13

Source: Yole Développement, STMicroelectronics

2015 SiC and GaN power

device TAM: > $0.5B

Innovative Structure with

respect to MDMeshTM V Power MOSFET MDMeshTM VI

• Improving performance with respect to MDMeshTM V

• 30% Lower Power Losses with respect to Best-In-Class

• Suitable for High End PV, HEV and Auxiliary Power Supply

SiC and GaN Developments

• 600/650V SiC Diode already available

• 1200V SiC Diode available in Q412

• 1200V SiC MOSFET (Planar Technology) available in Q412

• 650V / 200A HEMT GaN Transistor available in Q3 2013

WW

Growing

TAM 2015:

$5.6B

A Flavor on Advanced Power Discrete 14


IGBT

• IGBT Trench Field Stop: the most advanced IGBT technology

offering 50% better efficiency than planar technologies

• IGBT 1200V Emitter Implant, 100 um Wafer thinning for better thermal characteristics and Power Module applications

• IGBT Emitter Implant (100A and 200A) for HEV Motor Control Applications

Power Modules

• High Power Modules for Industrial and Automotive

applications

• Proprietary ST packages, compact size and available in Solderable or PressFit Pins

• Now available in Engineering Samples

STA3G40K120P6S

Gap DRIVE platform

A Flavor on Advanced Smart Power 15

Source: IHS iSuppli, Strategy Analytics, STMicroelectronics

Galvanic Isolation: Key Benefits

• Space Saving

• High System Reliability

• Fast Communication Link

• Strong Signal Integrity

• Magnetic Field Immunity

• Easy Diagnostic

• Improved Safety

Galvanic Isolation: Target Applications

New Edge Technology for a wide range of

SoC applications

• Industrial Drives & Motion Control

• Automotive EV & HEV Drive

• Factory Automation

• Industrial Networking

• Solar Inverters

• Isolated Current Sensing

• Energy Metering Smart Sensors

• Anti-Tampering system

• Isolated IPM Module

WW

Growing

TAM 2014:

$2B

ST Patented

Technology

Isolation voltage 6 kV

A Flavor on Advanced Power Line Modem 16

Source: ABI Research, May 2012

COMET: Flexible PLM Solution

• Flexible DSP & Multi Digital Cores to address multiple standards

• Comply with multiple worldwide regulations and frequency bands

• Single chip solution for High End Energy Metering

COMET: Super Integration Advantages

• Smart Meter system cost reduction

• Bill of materials and cost reduction

• Production costs reduction

• Supply chain simplification

• Reliability and quality enhancement

• Less number of parts and connections

PLC

Modem

Metrology

Application

Layer

All Smart Meter functions

in a single chip!

WW installed

Smart Meters

CAGR 2011-17: 34%

from 97 Million

to 561 Million

A Flavor on Advanced Digital Power Conversion 17

Digital Power

• Main Advantages:

• Topology independent solution

• Control, Communication and Monitoring functions

• Thermal management

• Easy to program, easy to use

• Very high efficiency with control law adapted to load conditions

• Improved reliability:

• Black Box Recorder

• Faults Detector & Precursor

Target Applications

• High Power & High Efficiency

Converters: Photovoltaic , Telecom, Cloud Computing and Server

• High End Professional Lighting

• Smartphone and Tablets

• CPU Power Supply

Networking

Sensors

Analog

Front

End

Computing Actuations

Connectivity

Digital Power Management

Smart Power Path Handling Battery Management

Automatic Load Detection Control Algorithm

DSP

A Flavor on Advanced Products 18

Longer

battery life

Fewer dropped /

missed calls

Faster

data-rate

Increased

TRP & TIS (Total Radiated Power &

Total Isotropic Sensitivity)

RF Tuner

HVDAC*

Antenna

Tunability

Available in Module & Discrete

Antenna Tuners

• Mobile Phone antenna is matched by design (GSM or

3G) and/or configuration (“in hand” or “free space”)

• ST tunable solution adapts the antenna impedance to

various modes and preset configurations in order to optimize signal reception and power efficiency

*HVDAC: High Voltage Digital to Analog Converter

WW Smartphone &

Tablets

CAGR 11-17: > 20%

TAM: > 1 Billion units

Summary

• Focusing on High-End Growing Markets: Smart Grid, Automation and

Portable

• Enriching Power Discrete product families by introducing SiC, GaN,

advanced IGBT and Power Modules

• Combining efficient Power Technologies (IGBT, SiC, GaN) with Smart

Power ICs in Advanced Modules (high temperature, high current, …)

for Smart Grid and Automation markets

• Entering Digital Power Conversion in High Performance and High

Efficiency applications supporting new stringent energy regulations.

19

Microcontrollers

Claude Dardanne

Executive Vice President,

General Manager, Microcontrollers, Memory & Secure MCU Group

Francois Guibert

Executive Vice President,

President, Greater China and South Asia Region

Overview

2

Microcontrollers in MMS Group 3

GP Microcontrollers

• Serial EEPROM • RF memories • #1 WW Supplier

Memories Secure Microcontrollers

• General Purpose 8-bit and 32-bit MCUs

• Automotive 8-bit MCUs

• Personal and embedded security

• Secure Hardware platforms and turnkey solutions

Key Enablers • State-of-the-art embedded NVM technology • Advanced 8 & 32-bit CPU platforms

• System & Security expertise • Market leadership in key products

Supporting our target markets

Healthcare SmartGrid / Industrial Consumer Security Appliances

WW TAM Microcontrollers* 2008-14

0

2,000

4,000

6,000

8,000

10,000

12,000

2008 2011 2014

$M

From ~$9B in 2008 to ~$10B in 2014

General Purpose MCUs Secure MCUs

* WW TAM Microcontrollers excluding automotive, payphone memories & cards Source WSTS February 2012

4

ST Microcontrollers Revenues 2007-11

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

0

100

200

300

400

500

600

700

800

900

1000

2007 2008 2009 2010 2011

US$M

GP MCUs Secure MCUs MCU share %

MCUs Total revenues = General Purpose MCUs + Secure MCUs Market share for consolidated MCUs excluding automotive, payphone memories & cards Source WSTS February 2012

5

GP Microcontrollers by Market Segment

19%

63%

2%

10%

6%

Automotive

Consumer

Computer

Distribution

Smartcard, Industrial

and Others

2011 Revenues

6

Secure Microcontrollers Market Segment 7

68% 6%

1%

25%

Automotive,

Industrial

and Others

Consumer

Computer

Smartcard

2011 Revenues

Microcontrollers Global Presence

Americas

20%

32%

EMEA

32%

37%

Greater China

& South Asia

37%

20%

Japan &

Korea

11%

12%

2011 revenue by geography

% by location of order shipment (2011)

% by customer origin

8

Microcontrollers Market Share

• GP + Secure MCUs consolidated

• TAM CAGR 07-11: +1.8% Market share 2007: 4.7%

• $M Revenue CAGR 07-11: +16.8% Market share 2011: 8.1%

• General Purpose MCUs



• Secure MCUs



9

Source: WSTS, February 2012

2011 WW GP & Secure MCUs Revenues 10

0

500

1,000

1,500

2,000

2,500

US$M

Secure

General Purpose

Source: IHS iSuppli , March 2012

ST

#7 in 2009

#5 in 2011

Microcontrollers Highlights

• General Purpose Microcontrollers

• Very fragmented multi-segments market Tens of thousands customers WW.

• Well established and profitable business model.

• ST playing a leadership position in the migration to advanced 32-bit platforms.

• With the STM32 family, ST is providing the broadest portfolio based on ARM

Cortex-M CPU (> 300 P/N).

• Secure Microcontrollers

• Growth no longer driven only by the traditional “Smartcard” business.

• Growth also driven by new applications/customers requiring more and more

embedded security functionalities for:

• Near Field Communication

• Trusted Platforms

• Smart Grid

• Healthcare

• Brand Protection …

11

Growth Drivers and Market

Opportunities

12

From Societal Needs to Solutions 13

Energy

efficiency

& saving

Trust

&

Security

Healthcare

Societal trends IP & System Applications Solutions

Integrated Controllers

• Ultra low power

• A/D Converter…

Network and System

• IP protocols

• Harvested sensor nodes

• Power management…

RF Connectivity • NFC, Contactless card

• ZigBee, RF4CE, IPV6

• Bluetooth, BTLE, WiFi…

User interface

• Touch sensing

• Smart Display…

Security

• Trusted processing & SW

• Tamper resistance

• Cryptography…

Mobility

&

Ease of Life Home monitoring

Therapy control

Drug traceability

Pay TV, Touch Control

Brand protection

M2M

Mobile payment

ID, e-Passport

Sport coaching

Smart Metering

Appliance Control

Sensors Network

Appliances

Smart Grid &

Industrial

Consumer

& Audio

Security

General Purpose MCUs Strategy Outlook 14

Consumer

Advanced

Analog

Healthcare Market

focus

Priorities

SmartGrid

Ultra Low Power

& Wireless Technology

SW & Turn-key

platforms

Appliances Industrial

Secure MCUs Strategy Outlook 15

USIM, SE NFC, M2M

TPM Brand

Protection

Embedded Security

Advanced

security

PayTV

Transport Identity

Personal Security Market

focus

Priorities

Banking

Contactless

performance Technology SW & Turn-key

solutions

http://images.google.fr/imgres?imgurl=http://img163.imageshack.us/img163/220/notion7ye.png&imgrefurl=http://www.clubic.com/forum/audio-mp3-home-cinema/debuter-avec-une-parabole-id112776-page1.html&h=137&w=350&sz=72&hl=fr&start=25&tbnid=5uwdM-j2TYBfqM:&tbnh=47&tbnw=120&prev=/images?q=canal++terminal&start=21&gbv=2&hl=fr&sa=N

http://www.kalysis.com/content/images/nationalID.jpg

New Products

16

Very high speed Ultra low power

Advanced analog functions

In-house manufacturing

e-EEPROM 130nm 90nm

e-Flash 90nm 80nm 55nm

2009-10 2011-12 2013-14

e-NVM Technology Portfolio 17

STM32 L1

STM32 L4

STM32 L0

Product Families and Roadmaps

32-bit

Cortex SC300

ST33

Based on ARM Cortex - M family

32-bit

Cortex - M0

STM32 F0

32-bit

Cortex - M3

STM32 F1, F2

32-bit

Cortex - M4

STM32 F3,F4 Entry level

32-bit

Cortex SC000

ST31 Entry level

ST promote the

broadest portfolio

addressing a

very wide range

of applications

Address

8 & 16-bit market

Low cost, low

power focus

High computing

power including

digital signal

processing

capabilities

Address high

security market

requiring high

computing power

Cost & power

optimized to

address the

Contactless

market

High performance

Secure

MCUs

GP

MCUs

18

32-bit

Cortex - Mx

STM32 F5

Leading edge

computing power

and digital signal

processing

High

performance

Ultra Low Power Continuum

GP Microcontrollers – Features Trend

19

Memory

SRAM

FLASH

EEPROM

F/W Libraries

Peripherals

…More integration to connect the world and intuitively interface with people securely

Analog & Data Conversion

ADC, DAC, Comparators…

Sense & Drive

Accurately

Timers Counters

Hi-Resolution

Synchronize

Precisely

Digital Signal Processing

Enhanced instruction set

Magnify

User Experience

Wired Connectivity I²C, SPI, USART,

CAN, USB…

Transfer

Data

Wireless Connectivity

ZigBee, BTLE, ANT, RF4CE, WiFi, NFC…

Connect your

Digital Life

User Interface LCD, TFT,

Switches, Touch

Interact

Easily

Security & Crypto

Up to 256KB Up to 512KB Up to 2MB

Store

Increasingly Powerful

Computing

CPU

System

Power Mgt, Reset, Regulator, RTC,Osc

Secure Microcontrollers - Features Trend 20

Family Concept

ST23/31/32/33

MIFARE Classic & Plus,

DESFire

Flexible Memory

Concept

Wired Connectivity ISO 7816, USB, I²C, SPI, SWP…

Custom

Semi-custom

Wireless Connectivity NFC, ISO 14443

ST Secure OS +

Personalization =

ST Turnkey Solution

Card / OS vendors Secure and

Customized Software

MEMORY FLASH

Up to 1.2MB

EEPROM Up to 160KB

CPU Security

HW & SW Countermeasures

Cryptography

HW crypto engine

Crypto libraries

Key & Secret handling Black Box Secure

personalization

Enhance

Application Security

Pay Mobile

Connect your

Digital Life

Powerful

Computing

Authenticate

Surely

Protect

Secret

Protect against

Counterfeiting

… More security to enable a trusted and connected digital world

Integration

in Secure Ecosystem

Summary

21

Microcontrollers Summary

General Purpose Microcontrollers

Pursue market share gain capitalizing on 32-bit platform leadership.

Re-enforce STM32 family as the broadest WW portfolio based on ARM®

CortexTM-M cores, covering current and future needs for 8 to 32-bit markets

Bring added values around ARM® CortexTM-M cores

Enlarge portfolio with innovative IPs matching segmentation focus: Connectivity, Analog I/Os, specific FW libraries…

Capitalize on ST advanced e-NVM technologies enabling Ultra Low Power portfolio.

Secure Microcontrollers

Deploy security concept to new applications :

Brand Protection, M2M, Healthcare, Trusted Platform, Smart Grid, High end Telecom…

Introduce ST31 based on ARM® highly secure core SC000

Enlarge the contactless product portfolio

Migration to ST advanced e-Flash technology embedding

very advanced security features

22

ST-Ericsson – breakout session

Carlo Ferro

Chief Operating Officer

Ronen Ben-Hamou

Senior Vice President, Thin Modem Solutions, System Silicon

Development

May 23 2012

2

Safe harbor statement

This presentation contains forward-looking statements that involve

inherent risks and uncertainties. We have identified certain

important factors that may cause actual results to differ materially

from those contained in such forward-looking statements.

For a detailed description of risk factors see STMicroelectronics’

(NYSE:STM) and Ericsson's (NASDAQ:ERIC) filings with the US

Securities and Exchange Commission, particularly each company's

latest published Annual Report on Form 20-F.

3

Agenda

∙ Introduction

∙ Product Roadmap

∙ Q&A

4

Strengthening the fundamentals

∙ Strategy

∙ Focus

∙ Flexibility

∙ Customer base

∙ Expand accessible applications through partnership

∙ Grow beyond the traditional customer

∙ Cost structure

∙ Lowering the breakeven point

∙ Distinctive competencies

∙ >5000 patents plus parents IPR umbrella

∙ Know-how of about 4000 skilled R&D resources after restructuring

∙ Products

∙ Compelling roadmap

5

ModAp systems as a key strategic

differentiating offering through partnerships

∙ Focusing the R&D portfolio to deliver highly competitive complete system solutions in

the form of integrated ModAp platforms

∙ Repositioning whole business model to develop key building blocks either directly or

through partnerships

∙ Full continuity of ST-Ericsson committed roadmap and current customer engagements

• Partnership with ST

• Transfer of R&D

activities and

headcount

• Jointly promote

standalone APEs and

thin modems


capabilities

• Continue to develop

modem IP for ModAp

integration and to

offer thin modems to

customers

• Possibly license

modem IP to 3rd

parties


capabilities

• Develop either directly

or through

partnerships and

alliances

ModAp system integration

Modem Application

Processor Connectivity

RF

Power

Analog mixed signal

6

Halving the breakeven point

Opex reduction

Revenue breakeven point

Opex breakdown at completion

R&D focus at completion

ModAp

Modem

Connectivity

& Entry 4Q11 Margin

Improvement

Opex

Reductions

at Completion

Reven

ues (M

$ )

< 600M$

-

200

400

4Q11 4Q13

Op

ex (M

$)

SG&A

R&D

7

Roadmap

HSPA LTE

M5730/80

A9500 A9540

U9500 L9540

Connectivity

ARM

2xA9

1.2G

21

ARM

2xA9

1.85G

100

42

U8520

ARM

2xA9

1.2G

14

M7400/

M7300

In Production/Sampling 2012 2013/2014

U8500

ARM

2xA9

1G

14

To be

Announced

IMG

2xA9

1.2G

100

42

L8540

IMG

2xA9

1.85G

100

42

150

84 M74XX

To be

Announced

FD-SOI

IMG

Rogue

2xA15

2+G

150

84

To be

Announced

FD-SOI

IMG

2xA9

2+G

100

42

CG2900

GBF

To be

announced

CW1100

WLAN

CW1250

WLAN

CG2905

GBF

Partnership with ST for future

application processors

ModAps

GPU IP & speed (MHz)

ARM Processor & Speed (GHz)

Modem DL Speed (Mbps)

8

Thor™ M7400 is the major step

Traditional HW modem

Low synergy between RAT’s

Long time and high complexity to

add new NS features

Inefficient silicon area usage

SW/HW Modem

Flexibility of a soft modem

Power consumption of

a HW modem

Optimized silicon area

Thor M7400 transition

to the new architecture

Thor M5780 Thor next generation

Thor M7400 and next generation will harvest the benefits of the new architecture

9

A revolutionary modem architecture

Thor™ M7400

Groundbreaking architecture

Future architecture investment

Stability, flexibility and scalability

NAS

AS

PHY

HW

Common

& inter-RAT

Scalable common HW

GSM WCDMA LTE TD-

SCDMA

Common framework for data processing

Common framework for inter- RAT

10

Platforms for LTE smartphones and tablets

NovaThor U/L9540

(A9540+M7400)

10% power improvement

15 % size saving

20% less components

Significantly lower cost

NovaThor

3rd

Generation

NovaThor

L8540

Architectural continuity

Dual core ARM Cortex-A15

Imagination Rogue GPU

Next generation Thor modem

FD-SOI technology

NovaThor

L8540

11

NovaThor™ L8540 – Integrated LTE platform

Complete integrated LTE platform

• Dual ARM Cortex™ A9 @ 1.85GHz

• Imagination PowerVR™ SGX544 GPU

• LTE modem and full set of connectivity

Global 4G mobile broadband

• LTE (FDD/TDD) 100/50Mbps, HSPA+

42/11Mbps, TD-SCDMA

• Worldwide coverage with up to 8 bands

Best multimedia experience in an integrated

platform

• 1080p 3D and 1080p up to 60fps video

recording and playback

• State of the art 3D graphics

Extreme power efficiency for real-life usage

• Unique power management and low voltage

operation delivers up to 30% more battery life

12

Differentiation with FD-SOI Technology

∙ NovaThor L8540 in FD-SOI would have

∙ Operation up to 2.5Ghz

∙ 2x the performance possible at 0.6V

∙ 35% less power operating at max

performance of NovaThor L8540

∙ For a typical smartphone this

translates to:

∙ 4 hours more high-speed browsing

∙ 2.5 hours more HD video playback

∙ 2 hours more HD video recording

∙ Or an additional full waking day of use

∙ FD-SOI technology offers:

∙ More GHz and less power

∙ Reuse of existing design

∙ At comparable cost

∙ Working with ST

st microelectronics investor day 2012

Documents

actual demand

result of changes

tax credits

tax laws

key customers

ability t o

outcome of tax audits

defendant changes