Gilles Delfassy President and CEO ST-Ericsson
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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 platforms Number of employees -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 .