Company Presentation - STMicroelectronicsGiuseppe Notarnicola Treasury Michael Anfang EMEA Region...

Company Presentation

April 2020

We are creators and makers of technology

• One of the world’s largest semiconductor companies

• 2019 revenues of $9.56B

• 46,000 employees of which 7,800 in R&D

• Over 80 Sales & marketing offices serving over

100,000 customers across the globe

• 11 Manufacturing sites

• Signatory of the United Nations Global Compact

(UNGC), Member of the Responsible Business

Alliance (RBA)

As of December 31, 2019

2

Global presence

Front-End

Back-End

Research & Development

Main Sales & Marketing

3

Claude DardanneMicrocontrollers

& Digital ICsGroup

Benedetto VignaAnalog, MEMS

& SensorsGroup

Marco MontiAutomotive& Discrete

Group

Lorenzo GrandiFinance,

Infrastructure & Services

CFO

Jean-Marc Chery*Human Resources & Corporate Social

Responsibility

Marco CassisSales, Marketing, Communications

& Strategy Development

Steve RoseLegal Counsel

Orio BellezzaTechnology,

Manufacturing& Quality

Eric Aussedat

Imaging

Sub-Group

Matteo Lo Presti

Analog

Sub-Group

Stefano Cantù

Supply Chain and

Operations

Giuseppe Notarnicola

Treasury

Michael Anfang

EMEA Region

Paul Cihak

Americas Region

Claudia LevoIntegrated

Marketing &Communications

Fabio GualandrisBack-End

Manufacturing & Technology

Joël HartmannDigital Front-End

Manufacturing& Technology

Jerome Roux

Asia Pacific Region

Nicolas Yackowlew

Product Quality &

Reliability

Alberto Della Chiesa

Supply Chain

ST Executive

Committee

Michael HummelAnalog & Power FE

Manufacturing& Technology

* Acting

Jean-Marc Chery

President &

Chief Executive Officer

Public Affairs

Thierry Tingaud

EU & France

Giuseppe

Notarnicola

Italy

Compliance & Ethics

Philippe Dereeper

Audit and Risk

Franck Freymond

Transformation Office

Chouaib Rokbi

4

ST stands for

Everywhere microelectronics

make a positive contribution to people’s lives,

ST is there

Our vision

5

Our value proposition

Return value in line with our

sustainable, profitable growth

objective

Provide differentiating enablers Committed to sustainability

Sustainable and profitable growth Independent, reliable & secure supply chain Our values: Integrity – People – Excellence

For other stakeholdersFor our customersFor our shareholders

6

At ST we create

technology that starts with

You

Our technology starts with You

Our employees

Our customers

Our partners

Our end customers

7

Where you find us

Making driving safer,

greener

and more connected

Enabling the evolution of

industry towards

smarter, safer and more

efficient factories and

workplaces

Making homes & cities

smarter, for better living,

higher security,

and to get more from

available resources

Making everyday things

smarter, connected

and more aware

of their surroundings

8

Trends and markets

Our technology stems from long-term strategic enablers

ST provides innovative solutions

to help our customers

make driving safer, greener

and more connected for everyone

Smart Mobility

ST technology and solutions

enable customers to increase energy

efficiency everywhere and support the

use of renewable energy sources

Power & Energy

ST provides sensors, embedded

processing solutions, connectivity,

security and power management, as

well as tools and ecosystems to make

development fast and easy for our

customers

Internet of Things & 5G

10

Smart Mobility

11

ST provides innovative solutions to help our customers make driving

safer, greener and more connected for everyone

Road crashes carry a high human toll

and cost > $500 Billion every year

Electric vehicles* from 9% in 2019 to

19% in 2025 of global car production

ICEs in > 90% of new vehicles produced

2020-2025

Increase safety for road users

& driver comfort and convenience

Affordable, desirable electric vehicles

Cleaner, greener Internal Combustion

Engines (ICE)

Sources: www.asirt.org, Strategy Analytics

* Excluding Mild Hybrid EV

Power & Energy

12

ST technology and solutions enable customers to increase energy

efficiency everywhere & support the use of renewable energy sources

> 30% global electricity demand

increase from 2020 to 2030

45% CO2 emission reduction from 2010

to 2030 to limit warming to 1.5oC

Electrical energy from renewal sources

from ~10% in 2020 to ~20% in 2030

Sources: IEA, IPCC, BP

Rising demand for and usage of

electrical energy

Decrease carbon emissions to reduce

global warming impact

Increase use of renewable energy

Internet of Things & 5G

13

Two billion industrial IoT & utility

connected devices by 2022

IoT security services market > $10 billion

in 2021

> 90 million new 5G IoT connections

in 2026

Cloud connected and data-enabled

services

Digital security for all data

5G accelerating the connection of objects

to the IoT

Source: ABI

ST provides sensors, embedded processing, connectivity, security

and power management, as well tools and ecosystems

Our Strategy

We address four end markets

Automotive Industrial Personal electronicsCommunications equipment,

computers & peripherals

15

Our strategic objectives

IndustrialAutomotive Personal electronics Communications Equipment,

Computers & Peripherals

Leadership in

car electrification

Leadership in

car digitalization

Transform approach to

communication

infrastructure:

From digital wireline to

cellular and satellite

Leadership in selected

high-volume smartphone

applications:

Sensors, secure solutions,

power management, analog

and Front End Module

Capture opportunities in 5G

with RF mixed signal

Leadership in

industrial embedded

processing

Accelerate growth in

analog & sensors

for industrial

Acceleration of

growth with

industrial OEMs

Expansion in industrial

power & energy

management

16

Products and Technologies

Discrete, Power MOSFET, IGBT

Silicon Carbide, Gallium Nitride

Smart Power: BCD

(Bipolar - CMOS - Power DMOS)

Analog & RF CMOS

FD-SOI CMOS

FinFET through Foundry

eNVM CMOS Specialized imaging sensors

Packaging technologies

Leadframe – Laminate – Sensor module – Wafer level

MEMS

for sensors & Micro-actuators

Vertical Intelligent Power

Differentiated technologies are our foundation

18

Our products and solutions enable customer innovation

Dedicated

Automotive ICs

Discrete &

Power Transistors

Analog, Industrial &

Power Conversion ICs

MEMS & Specialized Imaging SensorsASICs based on ST

proprietary technologies

GP MCU & MPU,

Secure MCUs, EEPROM

19

Product

Portfolio

Dedicated

Automotive ICs

Analog, Industrial

& Power Conversion ICs

Discrete &

Power Transistors

GP MCU & MPU

Secure MCUs, EEPROM

MEMS & Specialized

Imaging Sensors

ASICs based on ST

proprietary technologies

ST Product portfolio enabling strategic trends

Smart Mobility Power & Energy Internet of Things & 5G

FD-SOI

RF-SOI

BiCMOS

20

Manufacturing and R&D

We offer quality, flexibility and supply security

Front-End

Back-End

China

(Shenzhen)

Philippines

(Calamba)

Malaysia

(Muar)

Singapore

Morocco

(Bouskoura)

Malta

(Kirkop)

France (Crolles,

Rousset, Tours)

Italy (Agrate,

Catania)

22

We are drivers of your innovation

As of December 31, 2019

18,500 patents &

590 new filings in 2019

7,800 people working in

R&D and product design

16% of revenues

invested in R&D

Advanced R&D centers around the world for close collaboration with

operations and customers

23

How do we achieve

this

Quality as a key business enabler

24

Sustainable culture of quality excellence

Customer focus

Result-driven improvement programs

Ensure ST products meet the highest

quality and reliability requirements of

customers in the markets we address

Elevate ST to the highest

level of quality as an

asset for our customers

Our Quality Vision Our Quality Mission

Customers & Sales

We are partners with our customers worldwide

Over 80 sales offices in 35 countries

26

We serve more than 100,000 customers

Standard process, reporting & follow-up in

Sales & Marketing worldwide

Differentiated approach by type of customer

Unified worldwide account management

tailored to each account to provide global

coverage and service

*In alphabetical order

Distribution &

Mass Market

Top

10

Globally

Managed

Accounts

Top 10 Customers* 2019

Apple Huawei

Bosch Mobileye

Ciena Samsung

Continental Seagate

HP Tesla

27

Q1 2020 Revenues

Automotive &

Discrete Group

(ADG)

Microcontrollers &

Digital ICs Group

(MDG)

Analog, MEMS &

Sensors Group

(AMS)

% by product group

65%

22%

13%

Americas

EMEA

Asia

Pacific

42%

33%

25%

Top 10 OEMs

Other OEMs

Distribution

% by shipment location

% by customer type

34%

28%

38%

0.1%

Others

28

% by region of origin

33%

27%

40%

Americas

EMEA

Asia

Pacific

2019 revenuesby product group and customer type

38%

28%

34%

0.1%

45%

25%

30%

% by product group 2019 % by customer type 2019

Automotive &

Discrete Group

(ADG)

Microcontrollers &

Digital ICs Group

(MDG)

Analog, MEMS &

Sensors Group

(AMS)

Others

Top 10 OEMs

Other OEMs

Distribution

29

Shipment location Region of origin

33%

29%

38%

2019 revenuesShipment location and region of origin

Americas

EMEA

Asia Pacific

62%24%

14%

Americas

EMEA

Asia Pacific

30

Our People

Our technology starts with our people

Manufacturing ~ 67%

Research & Development ~ 17%

Marketing & Sales, Divisional Functions,

Administration & General services~ 16% As of December 31, 2019

Italy ~10,600

Asia ~18,400

Mediterranean ~4,700

Americas ~1000Others ~750

France ~10,100

32

Sustainability

1st

Environmental

report

1995

Sustainability is an integral part of ST

1987

1993

1997 2000

2001

2002

2003

2005

2006

2011

2014

2012

2017

2016

2018

ST’s creation Business conduct

& ethics policy

Environmental

policy

1st Environmental

Decalogue

Signatory

of the UNGC 10 principles

Reforestation

program

OHSAS 18001

Safety 1st certification

Conflict Minerals

program

Health Plan

Sustainable

Technology program

ISO 50001

Energy management

1st certification

5th Environment,

Health & Safety

Decalogue

ISO 22301

Business Continuity

1st certification

20th Sustainability

Report

Sustainability strategy

12 ambitions and 2025-goals

Supply Chain

Responsibility

program

2007Ethics

committee

member

ISO 14001

EMAS

1st ST Code of Conduct

Principles of Sustainable

Excellence

34

Our sustainability strategy

Based on 2017 external materiality exercise 35

We conduct our business responsibly to create value for all

stakeholders

Sustainable technology

Product compliance(Conflict-mineral free,

RoHS)

Product compliance(Material Declaration & ECOPACK®)

Eco-design devices(power-efficient &

low-carbon)

Responsible applications(planet-friendly & human-welfare)

Social & Environmental programs(RBA code of conduct, Water, Waste,

Energy & Climate Change, Chemicals)

Our Sustainable Technology program aims to develop responsible products which:

• improve our social and environmental footprint at every stage of the product life

• have the greatest positive impact on the planet and people in the end-application

36

Our sustainability ambitions & goals

37

Read ST’s 2019 sustainability report

• To learn more about ST’s sustainability performance in 2018

• To discover ST’s sustainable ambitions and goals for 2025

Available on www.st.com/company-reports

Among the highlights in 2018

38

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The STMicroelectronics corporate logo is a registered trademark of the STMicroelectronics

group of companies. All other names are the property of their respective owners.

Thank you