Application Strategic Focus

Application Strategic Focus Georges Penalver Chief Strategy Officer

2

ST SAM Evolution by Application 3 % of ST SAM 2016 Contribution to ST SAM Growth (2016-2019) Wired Comm. 11% Wireless Comm. 13% Wireless Comm. 5.2% Wearables 1% Wired Comm. 6.2% Automotive 18% Wearables 7.6% Industrial 20% Industrial 44.7% Consumer 8% Home Appliances & Other Consumer Data Processing 4.5% 8.3% Home Appliances & Other Consumer 5% Data Processing 24% Consumer Automotive 5.2% 18.4% Source: IHS-Markit / Strategy Analytics

ST SAM Evolution by Product 4 % of ST SAM 2016 ST SAM Growth (CAGR 2016-2019) Sensors (MEMS,Actuators,Light) 7% Sensors (MEMS,Actuators,Light) 4.0% Power Discrete 10% Analog 28% Power Discrete 4.5% Others 1.3% Others 15% MCU 8.8% Digital (Auto, Industrial, Others) 13.4% MCU 12% Digital (Auto, Industrial, Others) 7% Digital (Data processing / Wired) 21% Digital (Data processing / Wired) Analog 3.3% 5.3% Source: IHS-Markit, AMFT, Light sensors Report, 2017

5

Internet of Things Connected Devices 6 Retail, Advertising, and Supply Chain 2016 2019 Wearable Computing Mobile Devices Retail, Advertising, and Supply Chain Wearable Computing Mobile Devices Utilities and Industrial IoT Smart Cities and Buildings Smart Home Others Utilities and Industrial IoT Smart Cities and Buildings Smart Home 15 Billion 26 Billion Others Source: IHS-Markit, excluding PC & digital home, connected cars

IoT From Device to Cloud ST positioning 7 Connectivity Services Smartphone App connecting to Smart Thing Cloud Applications Cloud Services Device-specific Application e.g. Smart Thermostat app Smart Thing Plastics and Housing Product Development Tools ST providing Application Enablers MMI elements ST providing and/or Partnering Middleware HW enablement Firmware PCB Semiconductor Building Blocks Evaluation and Prototype Development Tools Module

The Building Blocks of the IoT 8 Processing Security Sensing & Actuating Connectivity Conditioning & Protection Motor Control Power & Energy Management Smart Things Smart Home & City Ultra-Low Power to High Performance Scalable security solutions Full range of sensors and actuators 10 cm to 10 km Nano Amps to Kilo Amps Power conversion Monitoring Drivers Nano Watt to Mega Watt Smart Industry

ST Strategy and Offer for the IoT 9 IoT is an end-to-end system from device to cloud involving many actors ST has a coherent strategy to cover the market needs The right building blocks for IoT devices Lower barriers for developers getting started Lower barriers from prototyping to first product Lower barriers to connect devices to the Cloud Enable product & service commercialization Building Blocks Stackable Boards & modular SW Application specific SW Integration of Cloud Provider SDKs Partner Program Processing Security Audio Algorithms Sensor Fusion Sensing & Actuating Motor Control Connectivity Power & Energy Management Pre-integrated Software for vertical Applications Ready to use Smartphone Apps Conditioning & Protection

IoT Product Development Make it easy and make it fast 10

INTEGRATION ST Solutions for the IoT 11 Common SW Platform 3 Cloud Provider SDKs supported, enabling sensor-to-cloud 131 SW packages from drivers to full application examples and Mobile Applications 27 32 STM32 Nucleo development boards Covering the broad portfolio of STM32 MCU families STM32 Nucleo expansion boards (X-NUCLEO) Offering peripheral functions ST & 3 rd party form-factor boards Bluecoin Sensor Tile IoT Discovery Modular Hardware Form factor boards

Modular Hardware 12 27 development boards and growing in two flavors (Processing & Security) Covering all STM32 microcontroller families and different development needs 32 expansion boards and growing covering all the key functions Sense Connect Power Drive Move Actuate Translate 5 9 3 12 3 Motion & environmental sensors Proximity sensor Microphone BLE Wi-Fi Sub-GHz NFC Power management LED boost Motor drive Actuator Audio amplifier OpAmp

Software for end-to-end Cloud Solutions 13 Cloud Prototyping 3 Cloud providers SDK supported for direct connection to the Cloud Mobile Apps Prototyping Pre-integrated application examples (Function Packs) 21 Mobile applications Sample applications, with ready-made Integrated Developer Environment projects STM32Cube middleware High value middleware STM32Cube expansions STM32Cube expansion HAL 16 94 High value Libraries (Audio, Connectivity, Sensor..) with usage examples and free-to-use license Specific pre-integrated drivers and libraries with usage examples supporting STM32 Nucleo expansion boards STM32Cube Hardware Abstraction Layer (HAL) STM32 Nucleo development boards STM32 Nucleo expansion boards (X-NUCLEO)

Pre-integrated Application Packages 14 Cloud Prototyping Mobile Apps Prototyping Function Packs Pre-packaged functionalities used in most popular application domains Pre-integrated application examples (Function Packs) STM32Cube middleware High value middleware STM32Cube expansions STM32Cube expansion HAL Wearable IoT Smart Things Home applications Building automation STM32Cube Hardware Abstraction Layer (HAL) integrating functionality from several expansion boards STM32 Nucleo development boards STM32 Nucleo expansion boards (X-NUCLEO)

The Artificial Intelligence Opportunities 15

Artificial Intelligence Centralized 16 Processing Connectivity Sensor Data Processing Connectivity Sensor Data Processing Connectivity Security Sensing & Actuating Actions Security Actions Security 1 Sensor 100 Sensors 10,000 Sensors Processing Requirements Connectivity/Bandwidth Requirements

Artificial Intelligence Distributed 17 Processing Connectivity Sensor Data Processing Connectivity Sensor Data Processing Connectivity Security Sensing & Actuating Actions Security Actions Security 1 Sensor 100 Sensors 10,000 Sensors Processing Requirements Connectivity/Bandwidth Requirements

The AI Opportunity for ST 18 The are many benefits to distributed AI Reduced central processing needs Reduced data communication requirements Faster response time Improved privacy and data security Overall reduced energy needs STM32 microcontrollers with integrated neural networks will be ideal to provide distributed artificial intelligence ST already working on proof-of-concept architectures, suitable for integration into various devices This new wave of AI will also create demand for many more smart sensors and actuator nodes

19

Smart Driving 20 ST SAM $B 9 7.7 7.4 6.2 3.4 4.7 2.9 3.7 5.1 4 4.2 Key Applications Active Safety - Passive Safety 1.8 Electric & Hybrid Vehicle Electrification Infotainment - Telematics Power Smart Power 32-bit MCU ADAS Infotainment Other 2016 2021 Powertrain Direct Injection Engine Automatic Gearbox Braking - Steering Source: Strategy Analytics

Smart Driving 21 Smart Driving is about putting the driving experience of the car occupants as the focus point ST is making driving safer, greener and more connected through a fusion of technology safer greener more connected

The Building Blocks of Smart Driving 22 Safer Greener More Connected Digital and Satellite radio receivers Machine Vision ADAS Processors RADAR 32-bit Auto Grade Microcontrollers Engine control ICs Secure Gateway Solutions V2X Communication Telematics processors Integrated VDC HD imaging ICs GPS/GNSS Low-noise ampl & receivers Ignition controllers and drivers Multiple- Phase Motor driver Analog Audio Processors EV/HEV Power management ICs Multiple channel Air Bags Auto MEMs, gyroscopes, accelerometers Communication transceivers Alternator regulators Door module drivers Class AB and D Audio Amplifiers AM/FM tuners Valve driver ICs Infotainment voltage regulators High/Low and configurable side drivers/switches Voltage regulators Field Effect Rectifiers SiC Diodes SiC MOSFETs Integrated filter and dataline protection Micro-batteries DC and Stepper Motor drivers Low/High Voltage Planar MOSFET Planar IGBT Low Voltage Trench MOSFET High Voltage Superjunction MOSFET Ultra Fast & Schottky Diodes 1200V Thyristors Field Effect Rectifiers Dataline & Load dump protection increasing complexity

ST Strategy and Offer for Automotive 23 Safer Greener More Connected Technology & Product leadership, focusing on high growth areas Continuing partnerships with automotive leaders to drive innovation Reinforce leadership in emerging markets also through distribution Partnerships for long-term success in China ST Supply Chain, Manufacturing & Quality BCD 90nm ViPower 180nm eflash 28nm CMOS 40nm FD-SOI 28nm SiC Machine Vision RADAR Positioning V2X Smart Power Engine Mgment Car Manufacturers Tier 1 OEMs Technology Leaders Full Kit Solutions Engine and Body control, Infotainment Dedicated Products Roadmap for Emerging Mkts China Emission Engine control Local Partners System Solutions for the Chinese Market In-house manufacturing Quality Automotive Quality mindset 30 Years of Qualification Experience Specific MCU solutions AEC-Q100-2 compliant product portfolios

24