SLIDE 1
Fourth quarter report 2012
Fabrizio Rossini
Head of investor relations
Fourth quarter report 2012 Fourth quarter report 2012 Fabrizio - - PDF document
Fourth quarter report 2012 Fourth quarter report 2012 Fabrizio - - PDF document
Fourth quarter report 2012 Fourth quarter report 2012 Fabrizio Rossini Head of investor relations Safe harbor This presentation contains forward-looking statements that involve inherent risks and uncertainties. We have identified certain
SLIDE 2
SLIDE 3
3
Fourth Quarter 2012 Report
Safe harbor
This presentation contains forward-looking statements that involve inherent risks and
- uncertainties. We have identified certain important factors that may cause actual results
to differ materially from those contained in such forward-looking statements. In particular, the forward looking statements contained in this presentation and the fourth quarter 2012 closing are based on a going concern assumption. In the month of December 2012 ST-Ericsson’ shareholders issued press releases about their future intent with respect to ST-Ericsson, on December 10 by STMicroelectronics and on December 20 by Ericsson. Please consider this presentation in conjunction with this information. For a detailed description of risk factors see STMicroelectronics’ (NYSE:STM) and Ericsson's (NASDAQ:ERIC) filings with the US Securities and Exchange Commission, particularly each company's latest published Annual Report on Form 20-F.
SLIDE 4
Fourth quarter report 2012
Didier Lamouche
President and CEO
SLIDE 5
5
Fourth Quarter 2012 Report
Transforming our company
Solid execution in 2012 in line with the transformation roadmap
Products
- Clear market
strategy
- Focused portfolio
approach
- Differentiation
Customers
- Engage with market
shapers
- Diversification
Company Organization
- Execution
- Simplicity
- Speed
- Focus
Culture
- From technology focus
to customer focus
- Sustainable profitability
- From brilliant ideas to
products delivered on time
SLIDE 6
6
Fourth Quarter 2012 Report
Transforming our company
Solid execution in 2012 in line with the transformation roadmap
Products
- Clear market
strategy
- Focused portfolio
approach
- Differentiation
Customers
- Engage with market
shapers
- Diversification
Company Organization
- Execution
- Simplicity
- Speed
- Focus
Culture
- From technology focus
to customer focus
- Sustainable profitability
- From brilliant ideas to
products delivered on time Focused roadmap
Application processor partnership
SLIDE 7
7
Fourth Quarter 2012 Report
Transforming our company
Solid execution in 2012 in line with the transformation roadmap
Products
- Clear market
strategy
- Focused portfolio
approach
- Differentiation
Customers
- Engage with market
shapers
- Diversification
Company Organization
- Execution
- Simplicity
- Speed
- Focus
Culture
- From technology focus
to customer focus
- Sustainable profitability
- From brilliant ideas to
products delivered on time Focused roadmap
Application processor partnership
Feature phones
SLIDE 8
8
Fourth Quarter 2012 Report
Transforming our company
Solid execution in 2012 in line with the transformation roadmap
Products
- Clear market
strategy
- Focused portfolio
approach
- Differentiation
Customers
- Engage with market
shapers
- Diversification
Company Organization
- Execution
- Simplicity
- Speed
- Focus
Culture
- From technology focus
to customer focus
- Sustainable profitability
- From brilliant ideas to
products delivered on time Focused roadmap
Application processor partnership
Feature phones
Activities consolidated from 44 to 31 sites
SLIDE 9
9
Fourth Quarter 2012 Report
Transforming our company
Solid execution in 2012 in line with the transformation roadmap
Products
- Clear market
strategy
- Focused portfolio
approach
- Differentiation
Customers
- Engage with market
shapers
- Diversification
Company Organization
- Execution
- Simplicity
- Speed
- Focus
Culture
- From technology focus
to customer focus
- Sustainable profitability
- From brilliant ideas to
products delivered on time Focused roadmap
Application processor partnership
Feature phones
Activities consolidated from 44 to 31 sites LTE final stage certification & customer test
FD- SOI
SLIDE 10
10
Fourth Quarter 2012 Report
Transforming our company
Solid execution in 2012 in line with the transformation roadmap
Products
- Clear market
strategy
- Focused portfolio
approach
- Differentiation
Customers
- Engage with market
shapers
- Diversification
Company Organization
- Execution
- Simplicity
- Speed
- Focus
Culture
- From technology focus
to customer focus
- Sustainable profitability
- From brilliant ideas to
products delivered on time
Recent external developments increase the level of uncertainty going forward
SLIDE 11
11
Fourth Quarter 2012 Report
NovaThor launches 2012
Via U8500 Samsung Galaxy S Advance Sony Xperia Sola Sony Xperia P Sony Xperia go Samsung Galaxy Ace2 Samsung Galaxy Beam Motorola XT760 Shanda Bambook S1 Ontim WP8500 Tablet Sony Xperia U Yulong Coolpad CP7728 HTC OneSC HTC OneST HTC OneSU Lenovo LePhone S899t mMax Tablet+Phone
Accelerating TTM
HTC T329T Samsung Galaxy S III mini
SLIDE 12
12
Fourth Quarter 2012 Report
Portfolio execution
∙ Thor M7400 – LTE multi-mode ∙ Certification nearing completion ∙ Extensive field testing ongoing ∙ Market ready ∙ NovaThor L8540 – integrated LTE ModAp ∙ Sampled and testing with customers ∙ Ready for market mid 2013 ∙ NovaThor L8580 – FD-SOI integrated LTE ModAp ∙ First samples in December ∙ Breakthrough nature of technology confirmed ∙ Fastest and lowest power mobile processor
SLIDE 13
13
Fourth Quarter 2012 Report
NovaThor™ L8580 Faster in the real world
0,6 0,8 1 1,2 1,4 1,6 x times slower
Video transcoding before YouTube upload
Full HD HD 720p
L8540 – Dual A9 1.85GHz Product A - Quad A9 1.5GHz Product C - Quad A9 1.4GHz Product B - Quad Krait 1.5GHz L8580 – eQuad 2.5GHz x1.2 slower x1.4 slower x1.6 slower
Lower is better
Faster
Faster processors
(not just more cores)
means faster apps
SLIDE 14
14
Fourth Quarter 2012 Report
FD- SOI Transistor Bulk Transistor
Transistor innovation
Buried gate Top gate Buried Oxide (BOx)
Source Drain
Gate
Source Drain
FD-SOI
Smart body biasing Ultra-Thin buried
- xide layer
Vertical double-gate transistor Ultra-Thin Channel
Cooler
SLIDE 15
15
Fourth Quarter 2012 Report
NovaThor eQuad
Vertical Double Gate Transistor
High Performance mode Top Gate voltage High Performance mode Back biasing Low power mode Top Gate voltage Low power mode Back biasing
Simpler
SLIDE 16
16
Fourth Quarter 2012 Report Fourth Quarter 2012 Report 16
Q4 Revenues
∙ $358 million in line with outlook provided ∙ NovaThor ModAp platforms continue to grow as largest revenue segment with 10.7 million units shipped ∙ Feature phones and legacy about 35%
- f total
∙ Revenues included $43 million from licensing (vs. $35 million in Q3) ∙ Very significant sequential decline in net sales due to: ∙ Q1 seasonality ∙ No licensing revenues expected ∙ Further decline of legacy product ∙ Double digit YoY growth excluding former largest customer
MUnits MUSD
NovaThor shipments up 45% vs. Q3
1,3 5,3 7,4 10,7 100 200 300 400 500 600 700 1 2 3 4 5 6 7 8 9 10 11 12 Q210Q310Q410Q111Q211Q311Q411Q112Q212Q312Q412 ModAp platforms MUnits Revenue MUSD
Q1 Outlook
SLIDE 17
17
Fourth Quarter 2012 Report Fourth Quarter 2012 Report 17
Financial Overview
∙ Net sales $358 million, flat vs Q3
- Execution of cost transformation initiatives
ahead of plan:
- About 1,600 resources, 26% reduced
- $53 million savings vs. Q4 2011
- Operating loss continued to reduce : $15
million reduction sequentially; $164 million
- r 55% since Q1 2012
- $152 million net operating cashflow
- Recapitalization during Q4 by shareholders
waiving $1.54 billion of loans
$ million 2012 Q4 2012 Q3 2012 Q2 2012 Q1 Delta Q4 vs Q3 Net sales 358 359 344 290 (1) Adjusted Operating income/(loss)* (133) (148) (235) (297) 15 Net operating cashflow (152) (146) (249) (159) (6)
Adjusted operating income/(loss)*
*:.Adjusted Operating Income/(Loss) is a non-GAAP measure. Please refer to the press release for details.
$ million
Continued reduction of losses thanks to solid execution of plans
0,6 0,7 0,8 0,9 1 Q4 09 Q4 10 Q4 11 Q4 12
OPEX indexed to Q1 2009
SLIDE 18
18
Fourth Quarter 2012 Report
2012
Redefined the scope of the company
- Focused resources on modem and ModAp system integration while
partnering on key technology blocks
- Consolidated our R&D to a smaller number of sites
Aggressive transformation of our cost structure …
- Put in place the right organization to deliver with sense of urgency
- Reduced cost and operating losses faster and to a greater extent than
planned
.. While improving our product delivery capabilities
- Great market traction for our first generation of NovaThor platforms, with
more than 20 devices successfully launched
- Our first LTE NovaThor platforms and Thor modems ready to hit the market
in 2013
- Sampled our next generation FD-SOI silicon–based NovaThor as committed
SLIDE 19
19
Fourth Quarter 2012 Report
Positioning for 2013
- However, we remain focused on execution of
- ur unique assets:
- Revolutionary Thor LTE modem
- Highly integrated LTE ModAp platform
- Groundbreaking low power, high
performance next generation ModAp
- Recent external developments significantly increase the level of
uncertainty going forward ST-Ericsson’s management is committed to exploring all solutions to ensure that our expertise and capabilities will continue to play a leading role in innovation in the wireless industry
SLIDE 20