Company Presentation January 2015 Who we are • A global semiconductor leader • The largest European semiconductor company • 2014 revenues of $7.40B • Approximately 43,600 employees worldwide • Approximately 8,700 people working in R&D • 11 manufacturing sites • Listed on New York Stock Exchange, Euronext Paris and Borsa Italiana, Milano As of December 31, 2014 2 Where you find us Our MEMS & Sensors are augmenting the consumer experience Our automotive products are making driving safer, greener and more entertaining Our digital consumer products are powering the augmented digital lifestyle Our Microcontrollers are everywhere making everything smarter and more secure Our smart power products are allowing our mobile products to operate longer and making more of our energy resources 3 Corporate Organization President & CEO Carlo Bozotti Chief Operating Officer Jean-Marc Chery Central Manufacturing Operations Packaging & Test Manufacturing (PTM) Georges Auguste Embedded Processing Solutions Jean-Marc Chery Sense & Power and Automotive Products Carlo Bozotti Sales & Marketing Corporate Staff Functions Digital Product Group Gian Luca Bertino Analog, MEMS & Sensors Group Benedetto Vigna Americas Bob Krysiak Finance, Legal, Infrastructure & Services CFO Carlo Ferro Strategy, Communication, HR and Quality CSO Georges Penalver Imaging Division Eric Aussedat Automotive Product Group Marco Monti EMEA Paul Cihak Financial Controller Lorenzo Grandi Human Resources Philippe Brun Microcontroller, Memory & Secure MCU Group Claude Dardanne Industrial & Power Discrete Group Carmelo Papa Greater China & South Asia Francois Guibert Infrastructures and Services Otto Kosgalwies Product Quality Excellence Fabio Gualandris Front-End Manufacturing & Technology R&D Joël Hartmann Front-End Manufacturing & Technology R&D Orio Bellezza Japan & Korea Marco Cassis Chief Technology Officer Philippe Magarshack Strategies and Business Management Mario Arlati Mass Market and Online Marketing Programs Paul Grimme Chairman 3Sun Advanced Systems Technology & Special Projects Andrea Cuomo 4 Product Segments Sense & Power and Automotive Products (SP&A) Analog, MEMS & Sensors (AMS) Automotive Product Group (APG) Industrial & Power Discrete Group (IPD) Embedded Processing Solutions (EPS) Imaging, BiCMOS, ASIC & Silicon Photonics (IBP)* Digital Convergence Group (DCG)* Digital Product Group (DCG)* Effective Q4 2014, DCG and IBP product groups merged to form DPG. Microcontroller, Memory & Secure MCU (MMS) 5 Flexible and Independent Manufacturing France (Crolles, Rousset, Tours) China (Shenzhen) Italy (Agrate, Catania) Morocco Malta Philippines Malaysia Singapore Front-End Back-End 6 An unwavering Commitment to R&D Advanced research and development centers around the globe ~ 15,000 patents; ~9,000 patent families; more than 500 new filings (in 2014) ~ 8,700 people working in R&D and product design As of December 31, 2014 7 Partners with our Customers worldwide 79 sales offices in 35 countries 8 Global Presence & Sales by Market Channel % by location of order shipment % by market channel FY2014 14% 15% ~31% 45% 26% Americas EMEA Greater China & South Asia Japan & Korea ~69% OEM Distribution 9 2014 Revenues by Product Group Analog, MEMS & Sensors (AMS) 25% Automotive Product Group (APG) 15% Digital Convergence Group (DCG)* Imaging, BiCMOS ASIC & 10% Silicon Photonics (IBP)* 5% EPS SP&A 20% 25% Microcontroller, Memory & Secure MCU (MMS) Embedded Processing Solutions (EPS) Sense & Power and Automotive Products (SP&A) Digital Product Group (DPG)* Industrial & Power Discrete (IPD) * Effective 4Q14, DCG and IBP product groups merged to form DPG – Digital Product Group . 10 ST’s vision and strategy 11 OUR VISION Everywhere microelectronics make a positive contribution to people’s lives, ST is there Smart Power OUR STRATEGY Leadership in Sense & Power, Automotive Products and Embedded Processing Solutions OUR 5 GROWTH DRIVERS Digital Consumer & ASICs MEMS and Sensors Automotive Microcontrollers Our vision 12 Our strategy: Leadership in… SENSE & POWER AND AUTOMOTIVE PRODUCTS EMBEDDED PROCESSING SOLUTIONS 13 Our growth drivers MEMS & Sensors Smart Power Automotive Microcontrollers Digital Consumer & ASICs Targeting areas Targeting areas where STST leads where leads or will orlead will lead 14 Focused product portfolio SENSE & POWER AUTOMOTIVE PRODUCTS SENSE & POWER ANDAND AUTOMOTIVE - PRODUCT FAMILIES • Analog, MEMS and Sensors • Industrial and Power • Automotive EMBEDDED PROCESSING EMBEDDED PROCESSING SOLUTIONS SOLUTIONS – PRODUCT FAMILIES • General Purpose Microcontroller, Memories and Secure MCU • Digital Consumer & ASICs, Imaging Solutions and Mixed Process 15 People are our Foundation… Present in over 35 countries ~900 ~800 ~4,500 Asia ~17,900 France Italy ~9,500 Mediterranean Americas Rest of Europe ~10,000 Manufacturing ~ 64% Research & Development ~ 20% Marketing & Sales, Divisional Functions, Administration & General services ~ 16% …working everyday to increase the quality and experience of life for all As of December 31, 2014 16 ST Sustainability strategy 17 Governance, Business Ethics and Compliance Our People Our Products The Environment • Innovation Management • GHG Emissions from operations • Sustainability in the Supply Chain • Sustainable Technology • Water Management • Local Sustainability impacts • Recruitment, Learning & Development • Customer Satisfaction • Employee Engagement • Labor & Human Rights • Product compliance • Energy Management • Employee Safety • Eco-design • Chemicals Management • Employee Health and Well-being • Responsible Products • Waste Management • Global Diversity and Equal Opportunities The Community • Conflict-Free Minerals • Transport and Logistics • Partnerships in R&D and Education • Public Affairs and Industry Networking Sustainability history at ST Deployment of ST Health Plan ST Environmental commitment 5th edition of ST “Environment, Health & Safety Decalogue” Launch of ST Principles for Sustainable Excellence 1ST Environmental Decalogue 1st ST Environmental report ST member of the EICC Creation of ST Ethics Committee 1st Environmental Certification ISO14001 1995 2000 2005 Creation of ST Foundation 2014 ST Sustainability Strategy Launch of reforestation programs ST signatory of United Nations Global Compact 2010 1ST Safety & Health Certification OHSAS 18001 1st Energy Management certification ISO 50001 4th edition of ST “Environment, Health & Safety Decalogue” 18 ST quality strategy 19 Our quality goal: “To provide our customers with the highest level of quality excellence in the semiconductor industry.” Quality Excellence Objectives A comprehensive approach built around 7 pillars Reactive quality Economic value Business processes, tools & indicators Flawless execution People Manufacturing & supply chain Zero excursions Product & technology development Change management Customers Proactive quality DPPM reduction