STMicroelectronics

Philippe Lambinet
Executive Vice President
Home Entertainment & Displays (HED)

Consumer Electronics Show

g - Januaryy 5,, 2011
Las Vegas
EXPERIENCE
ENTERTAINMENT !

2
Executive Summary

2010: Gaining Share as Market Grows

Market Trends Driving HED Growth

Strategy and Assets

Priorities for 2011

3
HED Product Portfolio

S t T Box
Set-Top B
TV

Monitor Audio

4
 Gaining Share as Market Grows

ST 9M10 Sales: $7.5B HED 9M10 Sales: +38%YoY

40%

e Growth (9M09-9M10)
35%
30%
25%
20%
15%

Revenue
10%
5%
0%
HED
HED** Other Groups HED SAM*
SAM HED

** Excludes Imaging * Serviceable Available Market; ST, IMS Research, Gartner, iSuppli

5
 Leading the Set-Top Box Market
Set-Top Box Shipments
2010
Competitor Leader

US

RoW
ST Leader

Source: IMS Research

6
HED 2010 Highlights

 Strong revenue growth driven by continuing adoption of HED products

 Gaining market share

 Gen. 2 based STB massively deploying

 > 50 customers in production now
 > 50% of ST total STB shipments in 2010

 Gen. 3 volume ramp-up

 Freeman/FLI7510 solution for DTV designed in at multiple partners
 > 50 partners enabled with STi7108 platform
 Complete ecosystem developed for interactivity, gaming, rich multimedia…

7
HED 2010 Highlights

 Strong revenue growth driven by continuing adoption of HED products

 Gaining market share in all target markets

 Gen. 2
 based STB massively
Expanding in thedeploying
DTV Market
 > 50 customers in production now
 > 50% of ST total STB shipments from 2010


 Strong World Wide Position in the STB Market
Gen. 3 volume ramp-up
 Freeman/FLI7510 solution for DTV designed in at multiple partners
 >50 partners enabled with STi7108 platform
 Complete ecosystem developed for interactivity, gaming, rich multimedia…

8
Market Trends Driving HED Growth

CE 3.0
Digital Living Room

NEW USER EXPERIENCE

Rich Multimedia

ENVIRONMENTAL RESPECT
Green

9
 Digital Living
Room
Leading MPEG2 to H.264 Transition

Market ST Shipments 2010

200
180 >50% H.264 Set-
MPEG2 op Box
Top o
160 Shipments
140
ments (Mu)

120
100
80 H.264 MPEG2
Shipm

60
40
20 H.264
0
2008 2009 2010 2011 2012 2013 2014

Source: IMS Research

10
Digital Living
Room
Set-Top Box Market Trends

Gateway
3D
Added Value

HYBRID
HD PVR
HD
SD PVR
SD

1995 2000 2005 2010 2015

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Digital Living
Room
DTV Market Trends

Connectivity Wired / Wireless

2D/3D 2D 3D

Large Size 40”- 49” 50”- 52” 55”- 60” 60”-72”

Contrast Ratio 2000 1

2000:1 3000 1
3000:1 4000 1
4000:1 >5000 1
>5000:1

1080p 1080p (Full HD) 4K x 2K

120/100 Hz 120/100Hz 240Hz

Ultra Slim Ultra Slim LED B/L

Eco/Green Lower Power Consumption

Environmental Friendly

Low Cost Monitor Panels Lower Spec Panels (Brightness, etc)

for Emerging Countries

~2006
2006 2007 2008 2009~10
2009 10 ~2015
2015

12
 Digital Living
Room
Connected TV & STB Market

300
~30% of TVs shipped in 2011
250 will be internet enabled

Mu)
200
Shipments (M

TV STB
150

100

50

0
2009 2010 2011 2012 2013 2014

Source: iSuppli

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 Rich
Multimedia
3D Everywhere

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 Rich
Multimedia
3D Allows New Premium Services

Enhanced offer to
Pay per View Premium 3D Games Store
HDTV’s subscribers
Channels
(VOD)

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 Rich
Multimedia
3D Services Announced

Cyfrowy+
Sky.de
Telekom

Virgin MediaUPC Akado

Comcast Sky NTV plus
IKO
IKO TV J:Com
Cablevision Numericable
N i bl BS11
DirecTV Canal+ RAI Skyperfect Jsat
Dish Orange Hikari
Canal+ Du
AT&T U-verse
Telefonica
Verizon FiOS

CJ Entertainment
Skylife
Foxtel
SK Telecom

Source: ST based on public information as of December 2010

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Green
Reducing Power in Consumer Products

 Government Regulations Compliancy

 Consumer Selection Criteria

 Optimized Product Cost

 Bill of material
 Product reliability

17
ST Strategy and Assets

CE 3.0
Digital Living Room

NEW USER EXPERIENCE

Rich Multimedia

ENVIRONMENTAL RESPECT
Green

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Digital Living
Room
SoundTerminal®
200 180

ST cumulative shipments (Mu)

3rd Generation 150
SoundTerminal Enables
100
Tablet PC with Solid
State Sensors 50

0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Microphone Speakers

Earphone
Sound Shaping
p g&
Speakers compensation
Digital Living
Room
MoCA

 ST “Contributor member” of
MoCA

 STi7108M available
 Supports MoCA 1.x (MoCA Alliance©)
& MidRF (DIRECTV ©) standards Headless Gateway

 Digital MAC & PHY processing

 MoCA 2.0 option for next

generation
 Introduction
I t d ti 2011
 Mass production 2012

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 Digital Living
Room
DisplayPort

Managed by VESA DisplayPort adopters

• Independent committee

Free & open standard

• Topology agnostic
• Content agnostic
• HDCP
200
Monitor shipments (Mu) 180
ST has an active role 160
140
120
0
100
• Lead architect/spec author is an ST 80
HED employee 60
40
20
0
2008 2009 2010 2011 2012 2013
Source: DisplaySearch Monitor DisplayPort Non DisplayPort
HED Platform Evolution
Gen. 2 Gen. 3 Gen. 4
Best New services
performance New UI Open Internet
/ cost ratio

STi7105 STi7108 STi71xx

Freeman
Freeman Ultra Newman
Diamond

1000 DMIPS CPU Dual CPU & L2 cache Multi-core SMP CPU
Introduction of: >2000 DMIPS >8500DMIPS
AVS HD Introduction of: Introduction of:
DDR2 1080p60 decode Dual 1080p60 decode
e-SATA Dual 32b DDR2/3 SVC decode
3D GL
GL-ES2.0
ES2 0 & SVG GPU HD encode
MoCA 1.x DisplayPort, MoCA 2

Mass Production Volume Ramp-up Introduction

MP: 2009  MP: 2011  MP: 2012 

 Rich
Multimedia
Solution by Market

Open Platforms
Complexitty
ssing & C

Walled Garden
Increased Proces

Broadcaster
Centric

23
 Rich
Multimedia
Broadband & Broadcast Ecosystem

Services Platforms Technology Enablers

BROADCAST MARKET PLACE

BROADCASTER

BROADBAND
MIDDLEWARE SOFTWARE

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 Rich
Multimedia
Leading the 3D Market

3D Gfx
Stereoscopic 3D

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 Rich
Multimedia
Supporting New Interactions
 Accelerometer
 Motion
 Shake
 Navigation
g

 Camera
 Parental Control
 Video Conferencing
 Contextual Information
 Control
 Interaction (QBR)

 Microphone
 Video Conferencing
 Control
 Music

 Finger Scan
 User recognition
 Payment

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Green
A Pioneer and Visionary Leader

 Corporate Environment Policy since 1993

 In 1995, ST was one of the first companies to set measurable and

time-defined goals for environmental performance and to publicly
commit to them

 Investing in the environment makes economic sense

ISO 14000: the business manager

manager's
s complete guide to environmental management
By Perry Lawrence Johnson

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Green
Energy Efficiency in our Products

KWh/y Watts

250
4
200 Competition
G1 3
150 Energy Star
100 G2 G3 G4
2
G1 E.U.
50 1 G2 Regulations
G3 G4
0 T 0 T
2008 2009 2010 2011 2012 2008 2009 2010 2011 2012

PVR system Basic STB system

Yearly Power consumption Stand b Po
Stand-by Power
er e
evolution
ol tion

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Next Step: The Best of Two Leaders…

 Competitive STB & DTV SoC roadmap

 Leading Security System Integration
 Process leader

 Competitive Performance roadmap

 Fast growing Software Ecosystem
Processors  Undisputed Power Efficiency leader

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…Yields Breakthrough Products

DDR

A9 CPU

DDR
TRANSPORT

MALI MCTI
DEINT

VIDEO VDP

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Setting a New Benchmark
On a TV/STB multi-core integrated for Open Platforms
and Connectivity Applications

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HED Priorities for 2011

• Gain share in US
Continue to
Lead in STB • Increase leadership in all other
markets

32
 ST Leading in STB in Emerging Markets

Eastern Europe
& China 51Mu

India
16Mu
Latam
11Mu

ST Cumulative Shipments 2008-2010

33
HED Priorities for 2011

• Gain share in US
Continue to
Lead in STB • Increase leadership in all other
markets

Continue to • Ramp Up Freeman/Freeman Ultra

E
Expand d iin • Prepare for Newman
DTV

34
Conclusion

• US Market for Set-Top Box

Growth Opportunities • DTV Market
• SoundTerminal for Tablet PC

• Digital Living Room

Market Trends • Rich Multimedia
• Green
G

• Set-Top
Set Top Box Market Leader
ST Assets • Performance Leader
• Environmental Commitment

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Q&A

36
 Forward Looking Statements
 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:

 Changes in demand in the key application markets and from key customers served by our products, which make it extremely difficult to accurately 
forecast and plan our future business activities. In particular, following a period of significant order cancellations in 2009, we have in 2010 experienced  a 
forecast and plan our future business activities In particular following a period of significant order cancellations in 2009 we have in 2010 experienced a
strong surge in customer demand, which has led to capacity constraints in certain applications and may in the future, in case of excessive inventory at 
customers or distribution channels, experience order cancellations; 
 our ability to utilize and operate our manufacturing facilities at sufficient levels to cover fixed operating costs during periods of reduced customer 
demand, as well as our ability to ramp up production efficiently and rapidly to respond to increased customer demand, in an intensely cyclical and 
competitive industry, and the financial impact of obsolete or excess inventories if actual demand differs from our expectations;
 the operations of the ST‐Ericsson Wireless joint venture, which represents a significant investment and risk for our business and which may lead to 
significant additional impairment and restructuring charges, in the event ST‐Ericsson is unable to successfully compete in a rapidly changing and 
i
increasingly competitive market;
i l ii k
 our ability to compete in the semiconductor industry since a high percentage of our costs are fixed and are incurred in Euros and other currencies 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 or the outcome of tax audits, and 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 
h i f i ll l (“IP”) l i b i h hi d i d bili b i i d li bl
and conditions; 
 product warranty or liability claims based on epidemic failures or recalls by our customers for a product containing one of our parts;
 our ability in an intensively competitive environment to secure customer acceptance and to achieve our pricing expectations for high‐volume supplies of 
new products in whose development we have been, or are currently, investing;
 changes in the political, social or economic 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, volcano eruptions or other acts of nature in, or affecting, 
the countries in which we our key customers or our suppliers operate
the countries in which we, our key customers or our suppliers, operate.

 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, 2009, as filed with the SEC on March 10, 2010. Should one or more of these risks or uncertainties materialize, or should underlying 
the year ended December 31, 2009, as filed with the SEC on March 10, 2010. 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.

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