Third quarter report 2012 Third quarter report 2012 Fabrizio - - PowerPoint PPT Presentation

Third quarter report 2012

Third quarter report 2012

Fabrizio Rossini

Head of investor relations

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Third 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. 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.

Third quarter report 2012

Didier Lamouche

President and CEO

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Third Quarter 2012 Report

Transforming our company

Solid execution in the last quarters 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

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Third Quarter 2012 Report Third Quarter 2012 Report

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Q3 Revenues

∙ $359 million revenues ∙ NovaThor ModAp platforms continue to grow as largest revenue segment with 7.4 million units shipped ∙ Feature phones and legacy about 40% of revenues ∙ Revenues stabilized ∙ Net sales to be approx. flat sequentially

1.3 5.3 7.4 100 200 300 400 500 600 700 1 2 3 4 5 6 7 8 Q210Q310Q410Q111Q211Q311Q411Q112Q212Q312

ModAp platforms MUnits Revenue MUSD MUnits MUSD

Continuing to execute well

• n NovaThor platform ramp

Products Customers Company Culture

Q4 Outlook

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Third Quarter 2012 Report

Continuing momentum

Q2 Q1 2012 2011

HTC Sensation Z710t 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

Q3

Lenovo LePhone S899t mMax Tablet+Phone Tier 1 Asian Customer Tier 1 Asian Customer Tier 1 Asian Customer

Products Customers Company Culture

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Third Quarter 2012 Report

Samsung GALAXY S III mini

Launched October 11th

Products Customers Company Culture

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Third Quarter 2012 Report

Didier LAMOUCHE President and CEO Ronen BEN-HAMOU R&D Peter Oaklander Sales & Marketing Carlo FERRO Chief Operating Officer

Organization

Marc CETTO Smart Platform Solutions Mats NORIN EVP, Chief Technology Officer

Members of the Executive Committee

Newly appointed Senior Vice President Sales & Marketing

Transforming our Sales focus in line with market developments

Products Customers Company Culture

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Financial Overview

∙ Net sales $359 million 4% sequential growth

• Execution of cost transformation

initiatives ahead of plan: $38 million savings vs. Q4 2011

• Operating loss halved from

Q1 2012 level to $148 million

• $87 million sequential reduction
• $146 million net operating cashflow
• $103 million sequential improvement

$ million 2012 Q3 2012 Q2 2012 Q1 Delta Q3 vs Q2 Net sales 359 344 290 15 Adjusted Operating income/(loss)* (148) (235) (297) 87 Net operating cashflow (146) (249) (159) 103

Adjusted operating income/(loss)*

Solid execution delivering progress on all our key financial metrics

$ million

*:.Adjusted Operating Income/(Loss) is a non-GAAP measure. Please refer to the press release for details.

Products Customers Company Culture

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Third Quarter 2012 Report

Conclusions

∙ In the last 9 months

∙ Repositioned company strategy and showing solid progress on execution ∙ Put in place the full organization to aggressively execute the strategy ∙ Ramped and delivered NovaThor platforms in volume ∙ Catching up on execution of our advanced LTE platforms ∙ Delivering FD-SOI silicon supporting our differentiated new platform roadmap ∙ Executing with sense of urgency on cost realignment in a predictable manner ∙ Delivering on key elements of strategy, such as application processor partnership ∙ Moving forward on site consolidation strategy

∙ However, we still have significant work ahead

∙ Recovering from large losses towards profitability and financial sustainability ∙ Execution of current and future platforms remains our priority focus ∙ Market remains competitive and we are dependent on our customers’ success

Products Customers Company Culture

Q&A