Automotive, Consumer, Computer & Communication Infrastructure ( ACCI ) Home Entertainment & Displays ( HED )

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1 Automotive Product Group Paul Grimme Executive Vice President, General Manager Automotive Product Group Business Segments 50/50 JV with Ericsson Wireless Automotive, Consumer, Computer & Communication Infrastructure ( ACCI ) Industrial and Multisegment Sector ( IMS ) Major Product Lines Home Entertainment & Displays ( HED ) Computer & Communication Infrastructure ( CCI ) Automotive Products Group ( APG ) Analog, MEMS & Microcontrollers ( AMM ) Power Discrete Products ( PDP ) Products Major Customers

2 Automotive Product Group Electronics Division: Focus: enhance performance, safety and comfort, reduce environmental impact 17% of ST Revenues (Q1 2011) Applications Body & Chassis: lighting, door & window/wipers, dashboard, climate control, junction box, car steering and stability control Powertrain & Safety: engine emission, fuel economy improvement, passive/active safety systems, car electrification APG Other Groups Infotainment Division: Focus: digital broadcasting, connectivity, entertainment Applications Car Radio Navigation and positioning systems Tolling and telematics APG Revenues (US$M) Q111 3 Automotive Market Structure Car Market: 67M vehicles sold in 2010 First 10 OEMs sell 83% total cars Market value: over $1T Average car value: $15K Auto Systems Market (Tier-1): 1.48B units sold in 2010 (22/car avg) First 10 Tier-1s sell 36% of total units Market value: $150B Average unit value: $107 Data Sources Cars JDPower (Jan-11) Electronics SA (Oct-10) IC SA (Oct-10) Auto Semiconductor Market (Tier-2): 20B units sold in 2010 First 10 Tier-2s sell 65% total IC Market value: $21B ($313/car avg) Average unit value: $1.04 4

3 Silicon Market (M$) ST Market Environment Competitive Environment Customer Base Automotive Semiconductors Revenues 2010 (US$M) Renesas 2,973 Infineon 1,872 STMicroelectronics 1,737 Freescale 1,691 NXP 1,420 Robert Bosch 1,124 Texas Instruments 963 Toshiba 749 Osram 707 Panasonic 571 isuppli, March Automotive Silicon Content CAGR : Cars: 5.7% Systems: 7.3% Silicon: 8.6% ASIC-ASSP MCU Power Sensors Standard Others Silicon/Car ($) 5000 Source: Strategy Analytics Increasing content in Hybrid (~$600) and Electric (~$900) 6

4 Automotive Growth Driver: China Chinese-Owned Brand Chinese-Produced Vehicles Toyota Group Market Average ECU Content / Vehicle Normalized to = ST is #1 in China Automotive Semiconductors Proof point: 40% market share for engine control ICs ST has two R&D centers, manufacturing facilities, and increasing local support High-end cars, full options and creature comforts driving growth China is one of the main factors propelling our growth : Macro-trends in Automotive Innovation fueled by social responsibility Saving energy, saving lives A Global, Cost-Driven Market New automotive concept, fast moving markets for cars & electronics Innovate Car electrification The safe and connected car Simplify, Speed up The Small Car The Low Cost Car A Global Supply Chain Leverage partnerships with industry leaders ST Strategy Ease of use for cost and Time to market 8

5 : Macro-trends in Automotive Innovation fueled by social responsibility Saving energy, saving lives A Global, Cost-Driven Market New automotive concept, fast moving markets for cars & electronics Innovate Car electrification The safe and connected car Simplify, Speed up The Small Car The Low Cost Car A Global Supply Chain 2nd generation HEV Battery Manager awarded by a WW Market Leader 3rd generation Vision Processor awarded by Major German OEMs Driver for Power Steering awarded on WW biggest platform ST in 2010 Maintaining leadership in China with 2nd generation Engine Control kit at the largest indigineous Tier-1 Major kit award in Russia for Engine Control Increased penetration in Brazil in Body and Lighting with ST VIPower products 9 Innovation Fueled by Social Responsibility Application: Vision Based Active Safety Analyzes video to actively assist the driver in critical scenarios and prevent accidents Strategy: Partnership with Mobileye Co-development of three generations of video processing engine with WW leader Result: We re safest on the road Second, co-developed generation launched 2010 First system on market with pedestrian detection Third generation in development SOP 2013 Awards by over 10 OEMs, +$300M lifetime value 10

6 Innovation Fueled by Social Responsibility Application: Electric Car Battery Enable Li-Ion technology to enter Auto Market Strategy: Partnership with innovator Co-developed ASIC with LG-Chem Allow re-architecture to fit Automotive challenges (totally safe, long-lasting, affordable) Using well-proven silicon IPs Stack Modules MCU Charging strategy Smart Battery Manager Monitor Balance Communicate To VBat Lithium Battery Cells Result: We re first on the road First silicon fully functional, able to run system trials in Q209 First WW system validated by a major OEM Awards by over 5 OEMs SOP in Q310, over $100M lifetime value To GND 11 A Global, Cost-Driven Market From concept to production 2009 Reached 60% of internal market share 2011 ST is awarded for the full new generation Target: engine control for China 4- cylinder car ST provided all semiconductors, plus SW / HW support Joint technical team co-worked for two years ECU is present on most successful Chinese vehicles Solution proved to be competitive in other regions Revenues (M$) Smart, super-integrated ASIC in BCD technology 32bit Power MCU ECU produced at WW level

7 POWER ANALOG DIGITAL ST: Enabler in Automotive Technologies 5.6um Pixel Video Camera for Active Safety 40nm CMOS Video Processor for Active Safety 40nm CMOS for GPS and Navigation 0.13um BiCMOS RF 24/77GHz Radar for Active Safety 0.32um SOI BCD for Li-Ion Battery Management 55nm e-flash for Automotive Microcontroller D B C 0.16um BCD Smart Power for Safety, Powertrain, Body, Chassis PMOS, IGBT, VIPower for Drivers and Hybrid MEMS for Sensing 13 Main ST Enablers BCD Smart Power Solid #1 Worldwide 24% share in BCD technology* 600M parts sold in 2010 Sensor IFs Drivers Automotive-Committed Internal Manufacturing Regulators Logic H-Bridge Comm Blocks Partners to Market Leaders Top quality, long lifetime Dual source technologies Bosch, Conti, Denso Shared tech roadmaps Source: Strategy Analytics Sep-10 14

8 Main ST Enablers Power MCU JDP Alliance Unique business model Shared costs, lower risk Industry-leading architecture Automotive-Committed Internal Manufacturing 90nm->55nm roadmap Internal manufacturing as differentiator Architecture and Products Over 20 products in pipeline Targeting >15% share in 2016 Production starting in APG Main Growth Drivers & Expectations Growth above market Margin expansion Digital products add growth MCU MPU (ADAS, Infotainment) Capacity increases in line with long term demand In the future, further leverage in new technologies is planned PMOS, IGBT Sensors 16