June 2011 Freescale, the Freescale logo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, t he Energy Efficient Solutions logo, mobilegt, PowerQUICC, QorIQ, StarCore and Symphony are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. BeeKit, BeeStack, ColdFire+, CoreNet, Flexis, Kinetis, MXC, Platform in a Package, Processor Expert, QorIQ Qonverge, Qorivva, QUICC Engine, SMAROS, TurboLink, VortiQa and Xtrinsic are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. 2011 Freescale Semiconductor, Inc.
Why Freescale Wins New and leading MCU platforms Deep system expertise Total solution: silicon, software and support 35 years of leadership and customer intimacy Trusted automotive supplier Product Overview Automotive 8-bit MCUs 16-bit MCUs (S12 and S12 MagniV) 32-bit Qorivva MCUs (Power Architecture) 32-bit i.mx apps processors (ARM) Industrial & Multi-Market 8-bit S08 MCUs 16-bit DSCs 32-bit Kinetis MCUs (ARM) 32-bit PX Series MCUs (Power Architecture) 32-bit ColdFire and ColdFire+ MCUs and MPUs Market Leading Positions #2 in Microcontrollers #2 in Auto Microcontrollers #2 in Auto Semiconductors in China Market Trends Automotive Energy efficiency / emission reduction Safety / collision avoidance Driver information systems / comfort Industrial & Multi-Market Portable and energy efficient devices MCU penetration into health monitoring Smart metering for energy management Source: IHS isuppli (May 11) 2
MSG 2010 Freescale Revenue Microcontroller Revenue by Segment Networking & Multimedia RF, Analog & Sensor Industrial & Multi-Market Microcontroller Other Cellular Automotive Market Share in Microcontrollers Key Customers TI, 5.3% S, 5.9% Fujitsu, 4.5% Automotive Industrial Microchip, 6.0% Other, 20.2% Atmel, 6.1% Infineon, 6.9% Renesas, 28.1% Samsung, 7.8% Freescale, 9.3% Source: IHS isuppli (May 11) 3
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Auto MCU Revenues Auto MCU Market Share $1018M 50% 40% 2009 2010 $714M 30% 20% 10% 2009 2010 0% Renesas / NEC Freescale Infineon Fujitsu TI ST Others Revenue Growth Q1 11 +16% yr/yr; +4% sequential 43% growth 2010 over 2009 Market Position #2 in high-growth automotive MCU market Gained market share in 2010 Source: Strategy Analytics (Apr 11) 5
100 90 80 70 60 50 $ Mu $B 120 10 MCU Content/Vehicle ($) LV Production (M) 100 8 80 6 60 Body & Security DIS Powertrain Chassis & Safety 40 4 30 40 20 10 20 2 0 0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Strong MCU content per vehicle and vehicle production growth Automotive MCU market with 13% CAGR Sources: Strategy Analytics (Feb 11), IHS Automotive (May 11) 6
Light Vehicle Sales Light Vehicle Sales Outlook 2011 World 76.2M U.S. 12.7M Europe 14.8M Light Vehicle Production Light Vehicle Production 2011 World 77.0M Quarterly Light Vehicle Production China 18.8M Japan 4.3M January - May U.S. SAAR: 12.8M Japan earthquake Significant impact on Japanese vehicle manufacturers, especially in Q2 We see only limited production impact at non- Japanese vehicle manufacturers LV Prod by OEM HQ Region (Million) 7 6 5 4 3 2 1 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2011 2010 2010 2010 2010 2011 2011 2011 2011 OEM HQ Region AMR Ford, GM Chrysler AP Chang an SAIC, Tata, Hyundai,.. EMEA VW, PSA, Fiat, BMW,.. JPN Honda, Nissan Toyota,.. Sources: Autodata Corp., IHS Automotive (June 11) 7
Hybrid/EV Powertrain Stop/Start Regenerative Braking Driver Information Infotainment Telematics Theater Quality Multimedia Powertrain Control Engine Control Gasoline Management Fuel Injection Chassis Breaking Systems Electronic Power Steering Active Suspension Safety Airbags with Faster Impact Detection Electronic Stability Program Collision Avoidance and Adaptive Cruise Control Body Electronics Body Control Module Seat, Door, and Window Control Remote Control HVAC Control Lighting Control/Bending/Leveling Automotive Networking/ Communication CAN LIN FlexRay Ethernet MOST Sizeable share in powertrain, body & networking; expansion in driver info, safety & chassis 8
Advanced NVM Technology & Manufacturing Multi-Fab Sourcing Quality Support Powertrain Safety & Chassis Power Architecture AUTOSAR Multi-Core Safety Security* Cores & Architectures DIS Body Automotive Market Solutions Global Capability Software & Enablement S/W Libraries Tool Ecosystem Reference Designs * Qorivva MPC5646C won embedded AWARD 2011 in hardware category at Embedded World 9
MPU i.mx Multimedia processors Quad-core and graphics performance Target Applications Center stack Instrument cluster Telematics 32-bit MCU Qorivva Highest-performance automotive MCU* Multicore with integrated safety and security Powertrain Safety & chassis Central body Vehicle networking 16-bit MCU S12 An industry-leading 16-bit architecture MagniV: Most integrated MCU Body electronics Instrument cluster 8-bit MCU S08 15-year automotive workhorse Most optimal and robust solution Companion MCUs Emerging markets Switch and touch panels *Embedded Microprocessor Benchmark Consortium s (EEMBC ) AutoBench 10
Hybrid/EV (25% CAGR*) Safety: ADAS (27% CAGR*) Driver Information (18% CAGR*) Freescale Advantages Strong powertrain position New products targeting: Power inverters, battery management, motor control Total solution capability: MCU, analog, power, S/W, tools Freescale Advantages Leadership in multicore Qorivva MCUs Advanced safety architecture Global design win momentum: Radar, vision, surround camera Freescale Advantages Industry-leading i.mx portfolio, built on ARM technology Key platforms enabled: Linux, Windows, Android, GENIVI & QNX The winner with Sync and OnStar Source: Strategy Analytics (Feb 11) * CAGR time period 2011-2016 11
Americas Key auto technology supplier Aligned with new growth areas and resurgence of U.S. OEMs Europe Strategic relationships on safety, vehicle networking and powertrain Munich center of excellence for S/W and safety technology China Korea India Japan Freescale s Traditional Regional Strength Our Strategic Growth Markets 12
China Largest vehicle market Joint engineering labs Local engineering support Reference platforms 200% 150% 100% 50% 0% China Design Wins 2008 2009 2010 Korea Hyundai / Kia Close relationships with Hyundai s supplier base Focus on safety & chassis, body and DIS 200% 150% 100% 50% 0% Korea Design Wins 2008 2009 2010 India Long-term growth Local engineering support Reference platforms Integrated solutions 300% 250% 200% 150% 100% 50% 0% India Design Wins 2008 2009 2010 Japan World-leading OEMs Opportunity to gain share Focused investment Secured key strategic design wins 200% 150% 100% 50% 0% Japan Design Wins 2008 2009 2010 13
Traditional MCU with Discrete Analog and Power Many external components Additional assembly steps Higher total system cost S12 MagniV Mixed-Signal MCUs Leading S12 16-bit architecture System-in-package (SiP) and single-die solutions Integration: Voltage regulator, LED drivers, LIN or CAN physical layer Simple, low-cost package Target Applications Instrument cluster Window lift HVAC control LED lighting 14
Significant market with 13% Auto MCU CAGR from 2010 to 2013 Gaining market share Industry-leading MCU platform (Qorivva) based on Power Architecture and automotive embedded flash know-how Total solutions: silicon, software & support all with world-class quality Long-term relationships with global customer base Investment and rapid growth in Asia Trusted automotive commitment Recent key platform wins in safety, powertrain, infotainment and body at strategic accounts We will power the automotive future! Source: Strategy Analytics (Feb 11) 15
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Shipped >350 Mu in 2010 Leadership position in mass market and distribution Leader in appliance MCUs Increased focus on medical, metering and power conversion 17
Market & Revenue Growth Recent Awards China ACE Awards 2011: Kinetis MCU Wins Mixed-Signal Product of the Year 50% 40% 30% 20% 2009-2010 +31% +44% 21 st Annual EDN Innovation Awards: Tower System Wins in the Development Kits, Reference Designs, and Single- Board Computers Category Kinetis Named by EDN in the Hot 100 Products of 2010: Microcontrollers and Processors Category 10% 0% TAM Growth* Revenue Growth MCF51EM256 Smart Metering IC Named by EDN in the Hot 100 Products of 2010: Power Category Kinetis Receives 2010 Embedded Systems Editor s Choice Award for Best 32-Bit MCU * Source: IHS isuppli, March 2011 18
Medical Smart Grid General Embedded Appliance Connectivity CAGR: 11%* CAGR: 14%* CAGR: 10%* CAGR: 4%* CAGR: 20%* Portable medical Chronic diseases Strong growth due to smart meters deployment $5B TAM, highly fragmented (high margin) market Energy & water usage reduction Fast growth in AP RF4CE in consumer Sub-GHz, ZigBee and BTLE in metering, medical Capitalizes on Freescale analog integration & lowpower leadership Driving connectivity requirements into other segments Synergy with Freescale s strength in distribution Freescale motor control & EMC expertise Leadership in 802.15.4, low power and integration Capturing market growth potential in medical, smart grid and connectivity, while expanding leadership in general embedded and appliance Source: Industry Reports & FSL Analysis * CAGR time period 2010-2013 19
Scalable Portfolio From $0.2 to 1000 DMIPS Quality Support General Purpose Segment-Specific Precision Analog Appliance Power Medical Smart Grid Connectivity Conversion MQX RTOS RF Flex Memory Ultra Low Power Integration General-Purpose & Segment-Specific SOLUTIONS Assured Supply Software & Enablement SWELL GUI CodeWarrior Tower ProtoSystem 20
Current Portfolio Next Generation Target Applications PX Highest performance 1 single- and dual-core Multicore Functional Safety Advanced communications Factory automation Military and aerospace 32-bit Kinetis First ARM Cortex-M4 in the industry 2 Aggressive market expansion Multi-market ColdFire Scalable general purpose MCU lineup Low-power optimization Consumer Smart grid 16-bit Digital Signal Controllers Motor drive optimized Performance expansion into power conversion Motor drive Inverters Power supplies 8-bit S08 15-year established history Improved scalability & robustness Small appliances Lighting Battery chargers 1-Embedded Microprocessor Benchmark Consortium s (EEMBC ) AutoBench 2-First samples on the market in Q4 2010 21
Digital Signal Controller The Ultimate Enabler for Green, Energy-Efficient Applications Launch of 90 nm nextgeneration digital signal controllers Higher processing power Applications: motor control, switch-mode power supplies, wireless charging, lighting Kinetis Platform Freescale s Scalable ARM MCU Portfolio Aggressive expansion of Kinetis portfolio Address market demand: low to high performance Applications: medical, building control, point of sales, smart grid / metering PX Platform Unmatched Performance and Ruggedized Safety Features Launch of Power Architecture MCU family High-performance MCUs Applications: industrial automation & transportation, motor control/drives, power generation, aerospace & defense 22
Designing with Freescale Solves Real Problems Now And Here s How Fast & Complete Shorter Customer Development Cycles Average Design Cycle Time (months) 20 15 10 5 0 2009 2014 Scalable runtime software -- cross platform and feature-rich to reuse and redeploy software investment Modular hardware design simplifies mix-and-match solutions for plug-and-play development RTOS & Middleware Freescale MQX RTOS & Middleware Tower System for Fast Prototyping Easy & Affordable 70 60 50 40 30 20 10 0 Increased Project Complexity Lines of Code ('000s) 2009 2014 Solutions for industry standards future-proof customers investments Broad development tools support enabling developers to leverage existing investments immediately Addressing customers pain points early in the design cycle leads to increased customer loyalty and provides sticky solutions for the future Market-Driven Solutions In-House & 3 rd -Party Development Environments 23
Distribution Revenue Distribution Network Global Local Catalog 2009 2010 24
Winning with local OEMs Expanding distribution customer base Enabling new entrants with Freescale solutions China Design Wins 250% 200% China Design Wins Account for 21% of Total WW and Growing Focusing on emerging growth segments 150% 100% 50% 0% 2007 2008 2009 2010 25
Industrial & Multi-Market Automotive +19% +8% +34% +4% +4% +11% 2007 2008 2009 2010 26
$10B Industrial and Multi-Market MCU TAM Focus on highest-potential segments: medical, smart grid, appliance, factory automation Complete, award-winning portfolio backed by a differentiated enablement and solutions offering Focus on distribution growth and emerging markets Design-win momentum is building in target segments and with a broad customer base Positioned to win! Source: IHS isuppli (May 11) 27