Gilles Delfassy President and CEO ST-Ericsson
November 9, 2011 Safe harbor statement
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.
Ericsson CMD November 9, 2011
2 (14) Our journey 2009 2010 2011
Starting to see Formation Transformation the benefits
Integration New portfolio of Restructuring smartphone and tablet
platforms Execution and delivery of new platforms
Customer wins and Build on our foundation to market traction create new business
Ericsson CMD November 9, 2011
3 (14) Our journey 2009 2010 20112011
Transformation StartingStarting to to see see Formation thethe benefits benefits
Integration New portfolio of Number of R&Dsmartphone sites and -25%tablet Restructuring Number of employeesplatforms -24%
ExecutionExecution and and delivery delivery of of Customer wins and New products as a percentage of total sales crossednewnew platforms platforms market traction the 50% threshold in Q3 2011 Build Build on on our our foundation foundation to
Global Handset OEM Value Share 2Q 2011 Restructuring to createcreate newnew businessbusiness
Others 16% Sharp Apple completed 2% 23% Engaged with 7 of the top 9 device manufacturers, Sony Ericsson 3% Motorola 4% LG 5% Samsung RIM including HTC, Motorola, Nokia & Samsung 19% 7% HTC Nokia 8% 13%
Ericsson CMD November 9, 2011
4 (14) Q3 financial overview
∙ Net sales $412 million ∙ Operating loss $194 million ∙ Transition still ongoing: new products grew to about 55% of total sales
Net revenue
800 700 600 QoQ: +7% 500 400 $ million $ million 300 200 100 0
2009 2010 2011
Ericsson CMD November 9, 2011
5 (14) Our aim
Leadership in smartphones and tablets
Drive innovation in mobile broadband
Enable coolest, richest, affordable devices
Ericsson CMD November 9, 2011
6 (14) Competitive landscape Key competencies for advanced platforms
Qualcomm Intel Broadcom Renesas Marvell Mediatek TI Nvidia
HSPA+/LTE √ √ √ √ √ √ √
TD-LTE √ √ √
APE √ √ √ √ √ √ √ √ √
ModAp √ √ √ √ √ √ √ √
Connectivity √ √ √ √ √ √ √
√ = Meaningful presence √ = Recent move / in development
Recent moves reinforce and validate complete platform approach …but full integration takes up to 2+ years
Ericsson CMD November 9, 2011
7 (14) NovaThor™ outperforms competition side-by-side CPU, graphics, web browsing, power management
140% 130% 120% 110% 100% 90% 80% HTC Sensation Z710
Relative Performance 70% HTC Sensation Z710t 60% Softweg Mandro GLbenchmark 2.0 GLbenchmark BrowserMark Sunspider Egypt 2.0 Pro 50% CPU score Total Egypt PRO Softweg Mandro GLBenchmark 2.0 BrowserMark Sunspider * EricssonCPU single core CMD CPU dual core GraphicsNovember 9, 2011 Web browsing
8 (14) Innovative solutions for LTE leadership
M7400
• Industry smallest solution • Optimized for smartphones • LTE FDD/TDD, HSPA+ and TD • 8 band radio solution • VoLTE support
Same modem solution across the portfolio True & efficient multi-mode Unified handling of all 3GPP technologies
Software-defined radio access Fast introduction of new features and easy adaptation to latest standards
Scalability in size & performance Powerful high-end to cost-efficient entry
Ericsson CMD November 9, 2011
9 (14) Our traction today
Global Handset OEMs by value 2Q 2011
Others 16% Sharp Apple 2% 23% Actively engaged with Sony Ericsson 3% 7 of the top 9 Motorola 4% OEM manufacturers by revenue LG 5% Samsung RIM 19% Including NovaThor™ U8500 7% HTC Nokia platform design wins with 8% 13% five top OEMs
Source: Strategy Analytics, August 2011
Ericsson CMD November 9, 2011
10 (14) ST-Ericsson announcement snapshot 2011
Thor™ M7400 AT&T Infuse™ 4G modem selected as from Samsung China Mobile launches CES 2012 HTC Sensation Z710t, Innovations honoree
Ericsson modules in Panasonic Lumix T-Mobile Sidekick™ Lenovo ThinkPad™ phone 4G from Samsung
ST-Ericsson unveils NovaThor™
T-Mobile Exhibit 4G from Samsung Nokia selects T-Mobile Galaxy S 4G ST-Ericsson as from Samsung Ericsson wins Panasonic supplier for future Snowball developer Toughbooks™ Motorola Atrix 2 Windows Phone board and Igloo devices community
Ericsson CMD November 9, 2011
11 (14) ST-Ericsson role in Ericsson end-to-end strategy
Networks New telecom standards
New multimedia and application services Services Complete competitive platforms Multimedia
OS, developers Connected & ecosystem devices
Ericsson CMD November 9, 2011
12 (14) Summary
∙ Still in transition, a lot done, a lot left to do ∙ Industry leading roadmap to achieve leadership in fast-growing smartphone and tablet markets
∙ Actively engaged with 7 of top 9 device makers ∙ New products now in production and/or sampling with customers ∙ Integral role in Ericsson’s end-to-end strategy ∙ Determined to win!
Ericsson CMD November 9, 2011
13 (14) Thank you