Company Presentation

July 22, 2010 22


To offer strategic independence to our partners worldwide, as a profitable and viable broad range semiconductor supp e supplier



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


A Global Semiconductor Company
Sales by region % of Q2’10 sales Q2 10
13 % Americas
2009 sales : US$ 8.51 billion (2) H1 2010 sales : US$ 4.856 billion Q2 2010 sales : US$ 2 531 billion 2.531 Approx. 51,000 employees in the group (3) 15 main production sites Advanced R&D centers in 10 countries

26 % EMEA (1) 44 % Greater China & South Asia

17 % Japan & Korea

(1) Europe, Middle East & Africa (2) Including revenues from ST-NXP Wireless for the month of January 09 and ST-Ericsson starting February 09 (3) Including ST-Ericsson


STMicroelectronics Awards

ST has received more than 100 awards and accolades worldwide, in the areas of both Quality and Environmental Protection, P t ti including the European Quality Award and the Malcolm Baldrige National Quality Award


Shareholding Structure
AREVA FT1C1 50 % (1) CEA


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)
* (1) (2) (3) At December 31, 2009 Based on Corporate Governance rights between FT1CI/Areva/CEA and CDP pursuant to STH Shareholders’ Agreement. New York Stock Exchange, Euronext, Paris and Borsa Italiana, Milano 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


COO Alain Dutheil Sales & Marketing Manufacturing & Technology R&D
Front-End Manufacturing Orio Bellezza Packaging and Test Manufacturing Jeffrey See Technology R&D Jean-Marc Chery

President & CEO Carlo Bozotti

CEO Carlo Bozotti Corporate Staff Functions

Product Groups

Americas Robert Krysiak EMEA Andrea Cuomo Greater China & South Asia François Guibert ç Japan & Korea Marco Cassis

Automotive Product Group Paul Grimme Computer & Comm. p Infrastructure Gian Luca Bertino Home Entertainment & Displays Philippe Lambinet Industrial & Multisegment Sector Carmelo Papa Analog, P A l Power & MEMS Carmelo Papa (acting)
Microcontrollers, Memories & Smartcards

Finance Carlo Ferro Infrastructures & Services Otto Kosgalwies Product Quality Excellence Georges Auguste

Business Dev. & Strategic Planning Loïc Lietar Communication Carlo E. Ottaviani

Administration Tjerk Hooghiemstra Legal Pierre Ollivier Human Resources Patrice Chastagner

Compliance Alisia Grenville

Claude Dardanne C


Diverse product portfolio focused on high hi h growth applications th li ti
Serving world class customers Leading technology and a global manufacturing infrastructure ST Q2 2010 results Heading for the future g


Sales by Market Segment / Channel*
ST Q2 2010 sales 100%=US$ 2 531 billi 100% US$ 2.531 billion
Communications* 32 % Consumer 13 % Computer 12 %

Automotive 14 % Distribution* 21 % Industrial & Others 8%

* Sales recorded by ST Ericsson and consolidated by ST are included in Communications and Distribution ST-Ericsson Sources: ST


Sales by Operating Segment
ST Q2 2010 sales 100% = US$ 2.531 billion $

Wireless 21 %

Industrial & Multisegment Sector 37 %

ACCI* 41 %

Others 1%

* ACCI : Automotive, Consumer, Computer and Telecom Infrastructure


Q2’10 ACCI Products and Wins
Digital Consumer Several design-wins for Freeman SoCs enabling 3D TV in a single-chip for 120Hz mainstream i t i t integrated di it l TV t d digital 55-nm STB platforms reached more than 10 million cumulative units Automotive Electronics Continued success of the 32-bit MCU family with major design-wins across all applications - powertrain, body-control, safety Latest-generation of VIPowerTM technology gained a design-win from a major Korean car maker for light-control module Automotive Infotainment Leading position in navigation strengthened with production deployment of Cartesio+ processor SoC Computer peripherals Two design-wins for motor-controller ICs from leading customers, for next-generation enterprise and desktop HDD applications SPEAr1300 architecture for future SPEAr® processors, targeting high-performance connectivity and embedded applications – design win already gained from major design-win communications-infrastructure OEM


Q210 IMS Products and Wins
MEMS High volume High-volume production of 3-axis digital gyroscope starts for next-generation smartphones 3 axis next generation Design-wins for 3-axis gyroscopes with several top-tier mobile phone makers Qualification from a Japanese game manufacturer for 2-axis analog gyroscope Power Launch of the SPV1020 solar-energy booster IC, the industry’s first IC combining important power-optimization and power-conversion for solar generators Key design-wins in power conversion ICs for lighting and appliance applications Launch of the new generation of MDmeshTM V power MOSFETs with advanced highperformance power package Memory & Microcontrollers Sampling of the STM32L series, the industry’s first ultra-low-power ARM® CortexTM-M3 microcontrollers Addition of a capacitive touch controller to ST’s touch sensor IC portfolio with the launch of e STM8T141 the S 8


Q2’10 ST-Ericsson Products and Wins
Two l di T leading customers selected E49 t l t d E49xx, i l di S including Samsung Four customers in Asia selected U67xx Launched feature-rich mobile internet platform, T6718

Smart mobility & multimedia

U8500 selected by two additional customers Smartphone platforms family expanded with U5500

Multiple design wins for advanced modem solutions, M570 and M720 LTE wins with Nokia and Sagem Wireless First complete end-to-end TD-LTE solution showcased with Ericsson

13 13

Diverse product portfolio focused on high growth applications

Serving world class customers
Leading technology and a global manufacturing infrastructure ST Q2 2010 results Heading for the future


Business Segments

Wireless 50/50 JV with Ericsson ith E i

Automotive, Consumer, Computer and Communication Infrastructure (“ACCI”) I f t t

Industrial and Multisegment Sector ( (“IMS”) )

Major Product Lines j

Home Entertainment & Displays

Computer & Communication Infrastructure

Automotive Products Group

Analog, Power and MEMS

Microcontrollers, Memories and Smartcards


Major Customers


Diversified Customer Base
2009 Top 30* OEM and Top EMS Customers
Huawei Nokia Research in Motion Sony Ericsson Samsung

ADB Cisco/Scientific Atlanta Garmin LG Electronics Nintendo Pace Panasonic Philips Sagem Sharp Thomson (now Technicolor)

Bosch Conti Delphi Denso Marelli

Apple Dell Eastman Kodak HP Seagate Western Digital

Delta Gemalto Siemens

Cal-Comp. Elcoteq Flextronics HonHai Foxconn Jabil Sanmina - SCI

* Alphabetically listed by main application sector


Diverse product p p portfolio focused on high g g growth applications pp Serving world class customers

Leading technology and a global manufacturing g gy g g infrastructure
ST Q2 2010 results Heading for the future


A Leading Portfolio of Technologies

Prototyping start
High performance logic and derivatives BCD (analog/digital/power)







Embedded non-volatile memory*




* Logic with Embedded Memories


Investing in Innovation
R&D expenditure US$ millions illi
2365 2152 1802




* Including R&D charges associated with acquisitions


Global Manufacturing Infrastructure


France, (Crolles I & II, Rousset, Tours) Italy, (Agrate, Catania 6”& 8”) Morocco Malta

China (Shenzhen, Longgang) Philippines

Malaysia y

g p Singapore

Wafer fab Assembly & test y


Diverse product portfolio focused on high growth applications pp

Serving world class customers

Leading technology and a global manufacturing infrastructure

ST Q2 2010 results Q
Heading for the future

ST Q210 Revenues
Q210 Revenues = $2,531M
• +8.9% sequentially, with ACCI and IMS together growing 16%, better than seasonal, while Wireless decreased by 10.5% • +27.1% y-o-y, double-digit growth in all regions and market segments, excluding Telecom • Q210 revenues still ~10% below Q308 proforma peak • Q310 guidance: between +2% and +7% sequentially, +13% and +19% y-o-y

Q3 2010 guidance range g g

Note: FMG (Flash Memories Group) deconsolidated on March 30, 2008, NXP Wireless contribution starting August 2, 2008, EMP contribution starting February 2, 2009


Diverse product portfolio focused on high growth applications Serving world class customers Leading technology and a global manufacturing infrastructure ST Q2 2010 results

Heading for the future


Recent Initiatives & Heading for the Future
Genesis Microchip


Mobile Platforms

5 years R&D grants secured Manufacturing restructuring ST‐NXP synergy plan Headcount realignment ST‐Ericsson cost realignment Micron acquired Numonyx













Advancing Process R&D Partnerships
Leadership and reduced process development costs are enabled through the International Semiconductor Development Alliance (ISDA)

ST & Philips Semi (NXP) ST & Philips Semi (NXP)


Motorola (Freescale)





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)

Photovoltaic Joint Venture
* 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 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.


ST Commitment to Sustainable Excellence
Box color RB 0 82 142

For us, understanding our stakeholders’ expectations is a precise business strategy, reflecting our many years of experience and our conviction that socially responsible companies are intrinsically more competitive and generate higher returns for shareholders. We encourage ST employees to exercise a strong sense of individual responsibility to the environment and to the local communities in which we operate. Our approach to Corporate Responsibility extends well beyond our Company, as we actively seek to involve our suppliers in our approach, significantly expanding our impact. g y p g p