Mobile, Multimedia & Communications Tommi Uhari Executive Vice President MMC Group
2007 Accomplishments Leading positions* # 1 in Analog/mixed signal # 1 in 3G RF # 3 in Wireless Focus on high-growth segments and leading customers Complete mainstream multimedia platform with modem Positive momentum in 2007 EMP business ramped up 3X growth in connectivity Strong demand from existing customer base *Source: isuppli, ST 2
ST Wireless Revenues (ex Flash) Last Twelve Months in US$M LTM Wireless Revenues = $2.28B (+11% Y-o-Y) Q108 (+18% Y-o-Y) 700 600 500 400 300 200 100 0 Q106 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 3
Handset Market Remains Concentrated 2% 100% Top 5 Handset OEMs 1% 80% 60% 0% 2006 2007 40% RIM Apple 20% Innovation in Smartphones is driving share gains 0% 2004 2005 2006 2007 Nokia Samsung SEMC LG Motorola Source: ST and ABI Research 4
but Wireless Semi Market is Fragmented Mastering all the key products and IPs is necessary for success ST is working with all of the top 5 players and several of the emerging leaders ST/NXP joint venture started consolidation of the fragmented semi market 100% 80% 60% 40% 20% 0% Handset OEMs Wireless Semi TOP 5 TOP 15 Others Source: ST, isuppli and ABI Research 5
ST Mobile Strategy Technologies Multimedia Connectivity Imaging Intellectual property Focus on leading global customers Consolidation 6
Wireless Multimedia Platform Ingredients ST Strengths Multimedia Analog/Mixed Signal CMOS RF Connectivity Design for Low Power SoC Integration Software Integration Reference Design Partnering Processor Cellular Modem IP High-Level OS 32nm and beyond 7
Complete Wireless Multimedia Platform RF Front End Before SW Integration perimeter After SW Integration perimeter RF RF Front End RF DBB MS-ABB APE Connectivity 3G+ Stack DBB Modem IP IP APE MS-ABB Connectivity ASIC ASSP Licensed IP 8
Successful Parallel Business Models ASICs Platform Flexible Product Offering Required Nokia Samsung Motorola SEMC LG Emerging Leaders 9
Leadership in Wireless ASICs Major presence at tier-one OEMs Emphasis on fast-growing 3G segment Strong position in 2G / 2.5G / 2.75G RF, analog / mixed signal and DBB Record sales & shipments High-volume manufacturing capability Outstanding supply chain 10
Wireless Multimedia Platform NOKIA-ST technology agreement on 3G Leading chipset supplier to Nokia 45nm; production 2010 Nomadik platform shipping to 3 tier-one customers Nokia, LG, Samsung Pre-integration platform Symbian/S60 platform Cameras WLAN Bluetooth Energy management MEMS and TV-Out devices Next-generation Nomadik introduced at 2008 MWC 3-D graphics Adaptable for modem integration 11
Product Highlight: 3G Digital Baseband EMP DBB shipments 3X unit growth expected in 2008 ST continues to be a strategic partner to EMP in technology nodes beyond 90nm 12
Product Highlights: Connectivity WLAN handset market share >30% Bluetooth handset market share from standing start to >10% in 2 years ST connectivity products designed-in >150 phones; over half on the market today Increasing presence at 4 of top 5 Ramping up Bluetooth headsets 13
ST s Imaging Business Sensors Camera modules Image processors Business model 14
Product Highlights: Imaging Leading pixel performance Expanding our customer base Reflowable cameras shipping in volume Transitioning to wafer level camera 3MP Digital Auto-focus sampling Moving to higher resolution sensor Design win for 5MP sensor Diversifying customer base 25% of 2008 Imaging sales will be outside largest customer 15
US$ MM 6,000 5,000 4,000 3,000 2,000 1,000 0 Source: Company Information 16 Qualcomm Texas Instruments ST/ NXP Wireless STMicroelectronics Infineon Technologies NXP MediaTek Broadcom Freescale Semiconductor RF Micro Devices Renesas Technology Skyworks Solutions CSR Marvell Technology Group Intel Samsung Electronics Creating a Clear #3 Player in Wireless 2007 Ranking (est.) 1. Qualcomm 2. TI 3. ST/NXP 4. Mediatek/ADI 5. Infineon/Agere 6. Freescale 7. Broadcom 22% 18% 14% 6% 5.5% 5% 2.4%
Complementary Customers and Products ST Leading supplier to Nokia and EMP Leading 3G and Multimedia technology Strong Connectivity supplier NXP Wireless Leading supplier to Samsung Established 2G platform supplier to tier-one and tier-two handset OEMs TD-SCDMA (Chinese standard) Strong Connectivity supplier Combination NewCo will become a leading supplier to Nokia, Samsung and SEMC Strong opportunity to build 2G/2.5G market share at major customers Critical scale of revenue to sustain leading edge R&D roadmap Hedge against timing of 3G market transition Enhanced position in Connectivity through complementary products offering Consolidate leadership in RF and Energy Management Leverages ST s industrial base by significantly increasing Advanced CMOS wafer volumes High level of identified cost synergies in excess of $250M in 2011 17
Market Leading Product Portfolio + Wireless Assets Emerging but well positioned: GPS Baseband BT combos #3 or #4 #1 RF TRx PMU / ABB FM standalone USB WLAN Source: ST, NXP 18
Wireless Roadmap + Wireless Assets Multimedia Platform + TD-SCDMA 3G+ MODEM Digital Baseband Connect. Combos Analog / RF / PMU + 2G / 2.5G / 2.75G single-chip + GPS, USB-Audio and Acc, UWB + RFCMOS Imaging MEMS 2008 2009 19
Complete Portfolio for Mobile Applications + Wireless Assets User Interface Displays Keyboard Speakers Microphones Cameras Sensors Audio Accessories (USB headsets) Connectivity Multimedia Processing BT UWB WLAN USB Application Processors Multimedia Co-processors Application Software FM GPS VoIP UMA DRM Broadcast Digital Radio Broadcast TV Baseband Processor GSM/GPRS/EDGE/UMTS/LTE Telecom Software JV solution Via Parents PMU Smart card Security SIM PA RF Via Partners Cellular Pipe 20
Conclusion Delivered results in 2007, positive outlook for 2008 and beyond 3G market growth is supporting our wireless strategy Successfully expanding customer base Well positioned and committed to ASICs Platform business is ramping Mobile multimedia is becoming mainstream Wireless multimedia, imaging and connectivity create a unique and complete platform Merger of ST/NXP wireless businesses will create a wireless leader 21