3GSM Congress. Carlo Bozotti President and Chief Executive Officer

Transcription

1 3GSM Congress Carlo Bozotti President and Chief Executive Officer 3GSM Barcelona, February 13, 2007

2 2006: ST Highlights Gained market share: Revenues grew 11% to $9.85B EBIT increased to $677M compared to $244M in prior year. Restructuring programs completed EPS reached $0.83 compared to $0.30 in prior year Net operating cash flow* was $666M, a company record Substantially reducing capital intensity: 15.6% capex/sales in 2006; new target of 12% *Non US GAAP measure defined as: Net cash from operating activities minus net cash used in investing activities excluding payments for purchase of and proceeds from the sale of marketable securities and short term deposits.

3 ST s Revenues by Market Segment Based on FY 2006 Sales = $9.85B Telecom 37% Automotive 15% 17% Computer Industrial 14% 17% Consumer

4 ST Revenues in Mobile US$M $2.21B +20% $2.65B +18% $3.12B 1H04 2H04 1H05 2H05 1H06 2H06

5 2006 Key Wireless Achievements Expanded the customer base #3 wireless semiconductor supplier Leader in 3G RF, energy management and camera modules Significant market share gain in connectivity Serving the top 5 cell-phone makers in Flash memories and IPADs First Nomadik featured Smartphone shipped Key-account important design wins

6 ST s New Product Segments Application Specific Groups (ASG) Flash Memories Group (FMG) M. Licciardello Industrial & Multisegment Sector (IMS) C. Papa Automotive Product Group (APG) U. Carena Computer Peripheral Group (CPG) G. Bertino Home Entertainment & Displays (HED) C. Lagomichos Mobile, Multimedia & Communications (MMC) - T. Uhari Analog, Power & MEMS (APM) - C. Papa Microcontrollers, Memories & Smartcards (MMS) - C. Dardanne

7 3GSM Congress ST in Mobile Tommi Uhari Executive Vice President 3GSM Barcelona, February 13, 2007

8 ST s Mobile Strategy Cellular Communications Camera Application Processors Connectivity

9 Mobile Handset: Semiconductor Market Forecast US$M 60,000 50,000 40,000 30,000 20,000 Total 3G 10, Source: isuppli

10 Wireless Communications Delivering custom platform solutions to leading 3G suppliers Serving more than 55% of the growing W-CDMA market Strong growth in RF, mixed signal and in digital baseband #1 in 3G RF and Energy Management W-CDMA market platform supplier shares 60% 50% 40% 30% 20% 10% 0% Q105 Q205 Q305 Q405 Q106 Q206 Q306 Q406 OEM X Competitor Y Competitor Z Other EMP Source: EMP

11 A Complete Offering for Mobile Phones 3D Smart Digital Accelerometers Displays Multimedia Processors Imaging Camera Modules SIM Card Connectivity Storage Linear and Interface IPADs and Protection Assisted GPS Energy Management RF Advanced Logic and Analog Audio codec Analog and Digital ASICs Wireless Infrastructures

12 ST: Multimedia Convergence Solutions and Applications Enabler Digital Consumer Communications

13 3GSM Barcelona, February 13, 2007 Application Processor

14 Nomadik: Product Features Leading capability for mobile platforms and most compact solutions for slim and thin phones Integration with all leading Smartphone OS Integration with all leading 3G modems ST will introduce this year the STn8820 delivering rich multimedia experience to the end users (HDTV capable, advanced 2D/3D graphics)

15 Nomadik: Gaining Momentum Samsung introduced several highly-featured mobile TV phones based on Nomadik in 2006 LG announced their first S60 3 rd edition Smartphone based on Nomadik Product design proceeding with Nokia Designed in several mobile multimedia convergence products: Navigation systems for automotive industry Portable TV players (DVB-H) T-DMB mobile TV modules

16 Nomadik: Leveraging ST s Product Portfolio

17 Nomadik: Platform Solutions Platform Integration & Test Application Framework and User Interface (S60, Windows Mobile) Operating System (Symbian, Windows, Linux ) Operating System Adaptation Layer Nomadik Low Level Software Standard Multimedia Firmware Nomadik HW Reference: NDK 3rd Party Multimedia Firmware Optional Multimedia Firmware OS Specific Software Utilities Adaptation Adaptation & & Extension Extension Services Services ST 3rd Party

18 3GSM Barcelona, February 13, 2007 Connectivity

19 Connectivity: Gaining Momentum Ending 2006 with ~10% handset share in Bluetooth, and growing 3 rd position as Bluetooth supplier to the cellular market In volume in 45 phones and designed in >100 phones >20% market share in WLAN mobile In volume in 10 mobile devices and designed in >25 devices Combo Bluetooth + FM radio (RDS) Single-package designed-in on 10 phones, now in volume ramp up (STLC2590)

20 2007 New Products Market launch Q Bluetooth with Lisbon support (STLC2500D) BT + FM combo, with Lisbon support (STLC2592) WLAN 3 rd generation 11b,g solution; cost and PCB footprint reduced (STLC4560) Expanding product offering into new market segments: In development: headset product, combining our strong experience and expertise in Bluetooth, PMU and audio

21 2008: Extensive Family of 65nm Single-die Bluetooth Solutions Bluetooth, Bluetooth + FM radio (RX/TX) Sampling mid-2007 WLAN + BT + FM (RX/TX) WLAN (11a,b,g,n) Sampling 2H07 Stereo headset solutions sampling 2H07

22 3GSM Barcelona, February 13, 2007 Imaging Solutions

23 ST is a World Leader in Camera Modules Sanyo, 2% Others, 10% STMicroelectronics, 13% Hansung, 2% MCNex, 3% Lite-On, 4% SEMCO, 13% Sony, 5% Altus, 5% Matsushita, 8% Flextronics, 13% Sharp, 11% Toshiba, 12% Source: ST, Prismark

24 Mastering the 4 Pillars of Imaging

25 Lensed Module Roadmap Zoom-autofocus mechanical SmOP II family SMIA Moving optics Autofocus mechanical Advanced Fixed Focus With embedded passives Zoom-autofocus «electro-wetting» lens Extended depth of field Flat PCB Single-chip Miniaturization Socket Flex Ultra-small module reflowable Wafer level camera focus free - reflowable

26 2007: Evolving Product Mix & Customer Base 2MP 3MP (AF) CIF Other Mobile Other markets Q MP SVGA VGA #1 customer 3MP (AF) CIF Other markets Q (E) Other Mobile 2MP VGA SVGA 1MP #1 customer Note: February 2007 projection based on confirmed design-ins to date

27 ST s 3-megapixel autofocus Camera Module

28 3GSM Barcelona, February 13, 2007 Cellular Communications

29 250nm 130nm 90nm 90nm 65nm HCMOS7A Analog, Audio SoC Leading Technology 65nm 45nm CMOS65LP Low power 3.5G, HD video Multimedia CMOS90LP Low power 3G, A/V Multimedia HCMOS9A Power, Hifi audio, High speed I/F BICMOS7RF 3G RF HCMOS9SiGe 3G RF,connectivity CMOS45LP Low power 4G, Advanced Multimedia CMOS65 convergence Analog, Hifi audio, RF and Connectivity Preferred partner for custom solutions in RF, mixed signal and digital technologies Direct access to advanced technologies, libraries and CAD environments Wide pre-characterized IP portfolio

30 ST: The Leading ASIC Supplier Worldwide leader in energy management ICs Over 15 years experience and more than 2.5 billion ICs shipped to wireless OEMs +30% market share on cellular phone primary energy management and audio ICs Worldwide leader in 3G RF transceiver 3G DBB Worldwide supplier through partnership with Ericsson Mobile Platform

31 ST Innovation is Making a Difference ST is innovating with significant investments Mixed signal: architecture and IP RF: architecture and IP Baseband: low power design techniques, architecture and IP Proven capability to integrate mixed signal, RF and BB

32 3GSM Barcelona, February 13, 2007 Conclusion

33 Enabling Rich Multimedia User Experience

34 3GSM Barcelona, February 13, 2007 Q&A

35 Disclaimer This presentation may include statements that are not historical facts and are statements of future expectations and may include other forward looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended) that are based on management's current views and assumptions and that involve known and unknown risks and uncertainties that could cause actual results or performances to differ materially from those in such statements. In particular the following important factors could cause actual results to differ materially from the expectations of the Company or its management: (i) future developments in the world semiconductor market, in particular the future demand for semiconductor products in the key application markets and from key customers served by our products, (ii) pricing pressures, losses or curtailments of purchases from key customers, (iii) the financial impact of inadequate or excess inventories if actual demand differs from our anticipations, (iv) impact of foreign currency fluctuations, in particular a weakening of the U.S. dollar compared to the euro, (v) our ability to be successful in our strategic research and development initiatives to develop new products to meet anticipated market demand, as well as our ability to achieve our corporate performance roadmap by timely and successful completion of our other various announced initiatives to improve our overall efficiency and financial performance, (vi) anticipated benefits of research and development alliances and cooperative activities, (vii) the ability of our suppliers to meet our demands for products and competitive pricing, (viii) changes in the economic, social or political environment, as well as natural events in the counties where we and our key customers operate, (ix) Changes in our overall tax position as a result of changes in tax laws or the outcome of tax audits, (x) product liability or warranty claims for a product containing one of our parts, (xi) our ability to obtain required licenses on third party intellectual property and the outcome of litigation. Unfavorable changes in any of the above or other factors listed under Risk Factors noted from time to time in the Company s SEC reports including the Form 20F, most recently filed on March 3, 2006, and the Company s press release dated January 23, 2007 could materially affect the Company.