ST Presentation

Company PresentationCompany Presentation October 26 2010October 26, 2010 Mission To offer strategic independence to our g p partners worldwide, as a profitable and viable broad range semiconductor suppliersupplier 2 Vision We aim at becoming the undisputed leader in multimedia convergence and power applications, dedicating significant resources to product innovation and increasingly becoming a solution provider 3 STMicroelectronics A Global Semiconductor Company Sales by region % of Q3’10 sales 13 % Sales by region % of Q3 10 sales 13 % Americas 18 % Japan & 24 % EMEA (1) Korea45 % Greater China & South Asia ƒ 2009 sales : US$ 8.51 billion (2) ƒ 9M 2010 sales : US$ 7.513 billion ƒ Q3 2010 sales : US$ 2 657 billion & South Asiaƒ Q3 2010 sales : US$ 2.657 billion ƒ Approx. 51,000 employees in the group (3) ƒ 15 main production sites ƒ Advanced R&D centers in 10 countries (1) Europe, Middle East & Africa (2) Including revenues from ST-NXP Wireless for the month of January 09 and ST-Ericsson starting February 09 ƒ Advanced R&D centers in 10 countries 4 (3) Including ST-Ericsson STMicroelectronics Awards ST has received more than 100 awards and accolades worldwide, in the areas of both Quality and E i t l P t tiEnvironmental Protection, including the European Quality Award and the Malcolm Baldrige National Qualitythe Malcolm Baldrige National Quality Award 5 Shareholding Structure* AREVA CEA FT1C1 50 % (1) Cassa Depositi e Prestiti (CDP) 50 % (1) ST Holding N.V. 100 % ST Holding II B.V. 27.5 % Public (2) (3) 68.9% STMicroelectronics N.V. (ST) * At December 31, 2009 (1) Based on Corporate Governance rights between FT1CI/Areva/CEA and CDP pursuant to STH Shareholders’ Agreement. (2) New York Stock Exchange, Euronext, Paris and Borsa Italiana, Milano (3) In addition to the 27.5% held by ST Holding II B.V. and the 68.9% held by the Public, 3.5% are held by the Company as Treasury shares 6 Organization President & CEO Carlo Bozotti COO Alain Dutheil CEO Carlo Bozotti Product GroupsSales & Marketing Manufacturing & Technology R&D Corporate Staff Functions Finance Carlo Ferro Infrastructures Americas Robert Krysiak Front-End Manufacturing Orio Bellezza Computer & Comm. Automotive Product Group Paul Grimme Packaging and Test EMEA Legal Administration Tjerk Hooghiemstra Business Dev. & Strategic Planning Loïc Lietar Human Resources Patrice Chastagner & Services Otto Kosgalwies Product Quality Excellence Georges Auguste Greater China & South Asia François Guibert p Infrastructure Gian Luca Bertino Home Entertainment & Displays Philippe Lambinet Manufacturing Jeffrey See Technology R&D Jean-Marc Chery EMEA Andrea Cuomo Legal Pierre OllivierCommunicationCarlo E. Ottaviani Georges Augusteç Japan & Korea Marco Cassis Philippe Lambinet A l P & Industrial & Multisegment Sector Carmelo Papa Compliance Alisia Grenville Analog, Power & MEMS Carmelo Papa (acting) Microcontrollers, Memories & Smartcards 7 Claude Dardanne STMicroelectronics ƒ Diverse product portfolio focused on hi h th li tihigh growth applications S i ld l tƒ Serving world class customers L di t h l d l b l f t iƒ Leading technology and a global manufacturing infrastructure ƒ ST Q3 2010 results ƒ Heading for the future 8 Sales by Market Segment / Channel* ST Q3 2010 sales 100% US$ 2 657 billi100%=US$ 2.657 billion Communications* Consumer Computer Communications* 31 % Consumer 13 % 13 % Automotive Industrial & Automotive 14 % Industrial & Others 7 % Distribution* 22 % * Sales recorded by ST-Ericsson and consolidated by ST are included in Communications and Distribution 9 Sources: ST Sales recorded by ST Ericsson and consolidated by ST are included in Communications and Distribution Sales by Operating Segment ST Q3 2010 sales 100% = US$ 2.657 billion$ Wireless 21 % Industrial & Multisegment Sector 38 % Multisegment Sector ACCI* 41 %41 % 10 * ACCI : Automotive, Consumer, Computer and Telecom Infrastructure Q3’10 ACCI Products and Wins Digital Consumer ƒMajor design win at Sagemcom for ST’s 7108 d d b d /b db d S T B Automotive Electronics ƒ First major award for EyeQ3, ST’s third- advanced broadcast/broadband Set-Top-Box decoder SoC ƒExpansion of the “Freeman” family with the launch of three highly integrated digital TV SoCs enabling enhanced ser e perience and ne Internet TV First major award for EyeQ3, ST s thirdgeneration vision processor for safety applications from a major European car maker ƒStrengthened leadership in “door zone” applications with a design win for a new device enhanced user experience and new Internet TV services ƒMajor design win for DisplayPort and TV scaler technology from a tier-one OEM pp g embedding “Partial Networking” IP, a potentially significant contributor to reductions in cost and CO2 emissions ƒ Important design win for a smart gate-driver IC in a world-leading power-steering platform, breaking 15 years of dominance of the major competitor in this field Computer peripherals ƒDesign win for a new 32nm ASIC from a world Automotive Infotainment ƒ Leadership strengthened in car radio li ti ith j d i i f l di leader in high-speed and high-precision instrumentation applications applications with a major design win from a leading maker of tuners and power amplifiers in Japan 11 Q3’10 IMS Products and Wins MEMS ƒHigh-volume sales of three-axis gyroscopesƒHigh-volume sales of three-axis gyroscopes spreading into mobile phone and gaming platforms ƒRamping up volume production of 3-axis accelerometer for new MP3 player from a leading consumer manufacturer Microcontrollersconsumer manufacturer ƒ Introduction of high-performance, low-power, stereo MEMS microphone targeting existing and emerging audio applications across a range of market segments ƒ 32-bit STM32 microcontrollers shipping in volumes to a major OEM for gaming accessories D i i f th 32 bit i t ll f il tƒ Design-ins of the 32-bit microcontroller family at world leading OEMs in healthcare, smart metering and high-end SIM card applications High-Performance Analog ƒDesign win for radiation-hardened op-amps for the Power g Galileo European navigation satellite system ƒRamping volume of Synchronous Rectification Controller for computer applications ƒController IC gained the major share in a switched-mode power-supply design for a new LED-backlit TV in Korea 12 Q3’10 ST-Ericsson Products and Wins • Over 100 million 2G/EDGE shipments year-to-date • Over 15 million TD-SCDMA shipments since launch • U8500 programs reached all major milestones agreed with customers • Lead partners for ARM’s Cortex-A15 MPCore processor • New HSPA+ 21 Mbps modem, M5730, in commercial devices early 2011 • M570 and M34x modems in Ericsson’s mobile broadband modules for tablets and notebooks 13 13 STMicroelectronics ƒ Diverse product portfolio focused on high growthƒ Diverse product portfolio focused on high growth applications ƒ Serving world class customers ƒ Leading technology and a global manufacturing infrastructure ƒ ST Q3 2010 results ƒ Heading for the future 14 Business Segments 50/50 JV ith E i Automotive, Consumer, Computer and Communication I f t t (“ACCI”) Industrial and Multisegment Sector (“IMS”) Wireless 50/50 JV with Ericsson Infrastructure (“ACCI”) ( ) Home Entertainment & Displays Computer & Communication Infrastructure Automotive Products Group Analog, Power and MEMS Microcontrollers , Memories and SmartcardsMajor Product Lines & Displays Infrastructure Group MEMS Smartcardsj Products Major CustomersMajor Customers 15 Diversified Customer Base 2009 Top 30* OEM and Top EMS Customers Consumer AutomotiveCommunications Consumer AutomotiveCommunications Huawei Nokia Research in Motion ADB Cisco/Scientific Atlanta Garmin Bosch Conti DelphiResearch in Motion Sony Ericsson Samsung Garmin LG Electronics Nintendo Pace Panasonic p Denso Marelli Panasonic Philips Sagem Sharp Th ( T h i l ) Computer EMSIndustrial Thomson (now Technicolor) DeltaApple Cal-Comp. Gemalto Siemens Dell Eastman Kodak HP Seagate Elcoteq Flextronics HonHai Foxconn Jabil 16 * Alphabetically listed by main application sector S g Western Digital Jabil Sanmina - SCI STMicroelectronics ƒ Diverse product portfolio focused on high growth applicationsp p g g pp ƒ Serving world class customers g ƒ Leading technology and a global manufacturingLeading technology and a global manufacturing infrastructure ƒ ST Q3 2010 results ƒ Heading for the future 17 A Leading Portfolio of Technologies Prototyping start 2008/09 2010/112006/07 High performance logic and derivatives 55/45nm 40/32nm80/65nm BCD (analog/digital/power) 0.16µm 0.13µm0.18µm Embedded non-volatile memory* 80nm 55nm90nm * Logic with Embedded Memories 18 g Investing in Innovation R&D expenditure US$ illiUS$ millions 2152 2365 1802 2152 595 595 593 558 19 * Including R&D charges associated with acquisitions Global Manufacturing Infrastructure France, (Crolles I & II, Rousset, Tours) Italy, (Agrate, Catania 6”& 8”) MaltaMorocco Phoenix China (Shenzhen, Longgang) Malaysia Singapore Philippines Malaysia g p Wafer fab Assembly & test 20 Assembly & test STMicroelectronics ƒ Diverse product portfolio focused on high growth applicationsapplications ƒ Serving world class customers ƒ Leading technology and a global manufacturing infrastructureinfrastructure ƒ ST Q3 2010 resultsƒ ST Q3 2010 results ƒ Heading for the future 21 ƒ Heading for the future ST Q3’10 Revenues Q310 Revenues = $2,657M • +5.0% sequentially, with IMS, ACCI and Wireless growing 7%, 4% and 4% respectively US$M • +16.8% y-o-y, growth in all regions and market segments, excluding Telecom • Q410 guidance: between +2% and +7% sequentially US$M Q4 2010 guidance range 22 * Note: FMG (Flash Memories Group) deconsolidated on March 30, 2008, NXP Wireless contribution starting August 2, 2008, EMP contribution starting February 2, 2009 STMicroelectronics ƒ Diverse product portfolio focused on high growth applicationsapplications ƒ Serving world class customersƒ Serving world class customers ƒ Leading technology and a global manufacturingƒ Leading technology and a global manufacturing infrastructure ƒ ST Q3 2010 results ƒ Heading for the future 23 Recent Initiatives & Heading for the Future Genesis Microchip Wireless Mobile Platforms 5 years R&D grants secured Headcount realignment ST‐Ericsson cost realignment ST‐NXP synergy plan Manufacturing restructuring secured Micron acquired Numonyx Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 50% 24 Advancing Process R&D Partnerships Leadership and reduced process development costs are enabled through the International Semiconductor Development Alliance (ISDA) ST & PhilipsST & Philips Semi (NXP) Motorola (Freescale)+ ST & Philips Semi (NXP) (Freescale)Semi (NXP) 20081992 2001 2003 25 Photovoltaic Joint Venture Equity Injection (Almost All In-kind ≤€70M)* Equity Injection (Cash ≤€70M) Equity Injection (Cash ≤€70M) 1/3 ownership of JV 1/3 ownership of JV 1/3 ownership of JV State Grants + Project Financing (non-resource) * The ST contribution into the PV joint venture consists primarily of the contribution in-kind of the M6 factory. Through an option agreement with Numonyx, Numonyx will Photovoltaic Joint Venture transfer M6 to ST, against the off-set of a portion of the outstanding 30-year note due to ST, immediately before the closing of the PV JV. Upon closing, ST will then contribute M6 to the PV JV. 26 ST Commitment to Sustainable Excellence Box color RB 0 82 142 ƒ For us, understanding our stakeholders’ expectations is a precise business strategy, reflecting our many years of experience and our gy g y y p conviction that socially responsible companies are intrinsically more competitive and generate higher returns for shareholders. W ST l t i t f i di id lƒ We encourage ST employees to exercise a strong sense of individual responsibility to the environment and to the local communities in which we operate. ƒ Our approach to Corporate Responsibility extends well beyond our Company, as we actively seek to involve our suppliers in our approach, significantly expanding our impactsignificantly expanding our impact. 27