Automotive Products Group

Paul GrimmeGeneral Manager, Automotive Products Group (APG)

Automotive Inside ST

ST Q1 2010 sales100% = US$2.325B

14%14%

12%

12%

8%

35%

19%

2

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

Automotive Computer

Consumer Industrial & Other

Communications* Distribution*

ST: #3 in Global Automotive IC’s

ASIC-ASSP, MCU, MPU, VIPower, RF, Vision Sensors, DSP

Pro

du

cts

Power Train

Engine TransmissionDoor Modules,

Anti-theft

Lighting,

Wipers

Body Electronics

HVAC,

Cluster

Chassis-Safety

Braking

SteeringAirbag

Infotainment

Car

InfotainmentPND

Telematics

GPS

Seg

men

tsA

pp

lica

tio

ns

AC

ust

om

ers

3

Automotive Competitive Environment

Inside its specific perimeter, APG became WW leader in 2009

Rank Company

1 Infineon

2 Freescale

3 ST

Rank Company

1 ST

2 Freescale

3 InfineonRestricting to

Ranking

General Stability

became WW leader in 2009 3 ST

4 NEC

5 Renesas

3 Infineon

4 Renesas

5 NEC

power + analog + digital

Competition

Common enablers for leadership

Technology+ Products

BCD, VIPowerASIC portfolioMCU roadmapInfotainment

StrategyInnovationPartnerships

4

Broad range offer

Quality and relationships

ST is recognized as having a strong, wide range network of Tier-1 customers

Vs.

Source: Strategy Analytics

10%

85Production Sales production change

Car Market: After the Crisis

WW Data

2009 consumption was strongly incentivized by the world’s governments

4.3%5.7%

-4.2%

-13.0%

10%9%

7%

4.7%

55

60

65

70

75

80

Excluding China, production dropped 20%

Production fluctuation was muchbigger than that of sales

Positive signals now seen

Very positive Q1 pace in NAFTA and Asia

Platform developments restarted

50

2005 2006 2007 2008 2009 2010 2011 2012 2013

5

production dropped 20%

Developing countries are growing faster than EU and developed Asia

Source: Global Insight

Automotive Market Growth FactorsMore Cars, More Electronics

CAGR 2009-2016:Cars: 6.2%

Electronics: 8.5%Silicon: 10.2%250

270283

298311 319 325 333

20000

25000

30000

35000

ark

et (

M$

)

ASIC-ASSPMCUPowerSensors

Electronic ignitionCentral locking

Electronic gearboxAir conditioningAntilock brakesSeat heating

NavigationAdaptive cruise ctrlAirbagsStability control

Night visionTelematicsBluetoothStart/stopHybrids

Pedestrian detectionLane changeDriver assist mapsCar 2 carInternetBrake-by-wireSteer-by-wire

0

5000

10000

15000

2009 2010 2011 2012 2013 2014 2015 2016

Sili

con

Ma Sensors

StandardOthersSilicon/Car ($)

19751975 19851985 19951995 20052005 20152015

Central lockingCar radio

Seat heatingAutomatic mirror

Stability controlXenon light

HybridsLED lighting

Steer by wireElectric vehicles

25M cars 32M cars 36M cars 64M cars 86M cars

Source: Strategy Analytics

6

2010-2015 – Macro-trends in Automotive

Innovation fueled by social

A Global, Cost-Driven Market

responsibilitySaving energy, saving lives

New automotive concept, fast moving markets for cars & electronics

InnovateCar electrification

The safe and connected car

Simplify, SpeedupThe Small CarThe Low Cost CarA Global Supply Chain

7

Future winners shall be leaders of both processesJoin innovation eco-systems, Manage new market dynamics and standards

2010-2015 – Macro-trends in Automotive

Innovation fueled by social

responsibilitySaving energy, saving lives

InnovateCar electrification

The safe and connected car

8

Leveraging partnerships with the industry leadersCo-development as a model matching technology with know how

Strategy

Build on our strong positions via partnerships

Complete a full range of system components

Electric Power Steering

Electric oil, water, fuel pumps

Electric Parking Brake

Green Car

Innovation Fueled by Social ResponsibilityST Response: Technologies

p g y p

Technology portfolio as first enabler

Market position: ASIC, vision processing, GPS

Tech portfolio: MCU, power, camera, RF, sensors

Partnerships: global leaders (Tier 1 and OEM)

Key Actions

Partnership with key IP companies

Smart battery charging

Engine start-stop

C t d C

Pedestrian Detection

Safe Car

Partnership with key IP companies

Electrification / safety joint programs

Government funded projects

Connected Car

9

Innovation Fueled by Social ResponsibilityST Response: A Test Case

Application: stability control for Japan

Target is to allow anoptimized ESC for all car

ST strategy: win with innovation

Silicon technology: BCD8, 0.18um, copper metalization

Result: a first silicon success

Joint development team with customerp

segments

Super-integrated IC withpower (>5W) + logic(>100Kgates)

Tough requirements on performance, price, timing

pp

Package: HiQuad110™, copper wires, life guaranteed@175°C

Re-use of consolidated, successful architectures

First silicon fully functional, able to run winter test in Q110

Over $100M lifetime value

P+ P+ N+N+N-well P-well

D G S D G S

Triple-N-well

P-bodyP+

HV-N-well

N+N+

D G S G D

P-bodyP+ N+N+

D G S G D

HV-N-well

3.3V CMOS

High SideNLDMOS

Low SideNLDMOS

P+ P+ N+N+N-well P-well

D G S D G S

Triple-N-well

P-bodyP+

HV-N-well

N+N+

D G S G D

P-bodyP+ N+N+

D G S G D

HV-N-well

3.3V CMOS

High SideNLDMOS

Low SideNLDMOS

M t

Vbatt

Voltage p

P++ substrate

P- epi

P-substrate

N+ Buried layer

Buried layer version

p

P++ substrate

P- epi

P-substrate

N+ Buried layer

Buried layer version

Battery

Wheel Speed

Sensors

Data Bus Bus Transceiver

Warning Lamp

LampDriver

Fail SafeRelay Driver

MotorRelay Driver

Pump Motor

Master Control Unit

Data Bus Bus Transceiver

Monitoring Unit

Flexible Wheel Speed Sensor

Interfaces

VoltageRegulators

PWM Valve Drivers

Current-controlled Valve Drivers

High precision CCValve Drivers

10

2010-2015 – Macro-trends in Automotive

A Global, cost-driven marketNew automotive concept,p ,fast moving markets for cars and electronics

Simplify, speed upThe small car

The low-cost car

A global supply chain

11

Adapting to the “new” world of AutomotiveDifferent support needs, cost positions, geographies

A Global, Cost-Driven MarketST Response: Ease Of Use For Cost, Time to Market

Strategy Engineer the portfolio to decrease

system cost/complexity

ST advantages and actions

Integration

Systems-in-packageSystems-on-chip

sense + power

Strong partnership with market leaders

Unique and strong ASIC history

Action: local development in geographies where growth is occurring

Strategy Support market newcomers with standard

solutions to allow fast and low risk time to

Full Solutions

Systems on chip

Target to growWW leadership in airbag and smallengine controlMCU

powerperipherals

solutions to allow fast and low-risk time-to-market

ST advantages and actions Unique ASSP portfolio covering all segments

System understanding of basic applications

Action: engineering and starter kits

Full IC kitHW + SW support

Target to growleadership in BRIC enginecontrol

analogfunctions

MCU

12

A Global, Cost-Driven MarketST Response: A Test Case

Year 2005: start of new partnership

Target: engine control forChi 4 li d

Year 2007: new system ready

Production begins

Year 2009: reached 60% of internal market share ECU is present on

successful Chinese vehiclesChina 4-cylinder car

Fully Chinese system development team

Requests to ST: support, speed, value

ST provided all semiconductors, plus SW / HW support

Joint technical team co-worked for two years

successful Chinese vehicles

Solution proved to becompetitive in other regions

2 14

31

5865

Revenues (M$)

2007 2008 2009 2010 2011

13

BCD

VIPower

APG – Main Growth Drivers & Expectations

Above market growth

Smart Power technologies willcontinue to be a main driver

Growth by Technology Family

MPU

32BIT MCU

Digital products add growth

MCU

MPU (ADAS, Infotainment)

New market enablers are nowbeing added to APG traditionalportfolio

2009 2010 2011 2012 2013 2014 2015

portfolio

In the future, further leveragein new technologies is planned

PMOS, IGBT

Sensors

14

Automotive electronics will be a continuing growth market, driven by vehicle demand and content per vehicle

Closing Comments

The market crisis in 2009 did not change the fundamentals, however it accelerated existing trends

Innovation and ease of use solutions will be critical components ofgrowth for automotive electronics

The global supply chain is being re-shaped by shifting tastes and g pp y g p y ggeographic locations of consumers

ST is among the few companies having all assets in place to turn this changing period into one of decisive growth

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