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Automotive





Ugo Carena

Corporate Vice President

APG







Field Trip 2006 - London, May 23rd

ST Automotive Sales and Market Share

Evolution

2001 – 2005 CAGR Full system 2005 Growth

Market : + 10 % solution approach Market : + 5 %

Transition to

ST: + 19 % digital core ST: +8%



1400 10.0









ST Market share (%)

Early phase:

1200 smart power 9.5

APG sales









Market

1000

9.0

9.3

800 9.1

8.5

600

8.0

400 8.3

200

8.0 7.5



7.4

0 7.0

2001 2002 2003 2004 2005



Sales Market Share (% )

Source: ST, iSuppli



Automotive Product Group Ugo Carena

ST: Broad Range Supplier in Automotive

Powertrain

Market leader in Gasoline and Diesel

Injection: > 35% market share *









Car Body Safety

Market leader in door Market leader in ABS,

control modules: Air Bag, Vehicle control:

> 20% market share* > 40% market share*









Infotainment

Market Leader in Power Amplifier

and Digital Broadcasting :

> 50% market share *

* Source : Strategy Analytics (SA) 2005, ST data

Automotive Product Group Ugo Carena

ST Product Strategy in Automotive





Lead R&D and technology

roadmap • Advanced safety

• Euro 5 Injection

Meet strategic partners • Hybrid vehicle

needs • Vehicle control

C

A SI Hi-end products with • Infotainment

higher ASP





AS Meet the standardization

SP • Power Supply

market evolution • Battery charging

Drive the emerging • Car Radio

markets expansion • Air Bag

Offer system kit solutions • 4 cylinder Injection









Automotive Product Group Ugo Carena

ST Commitment in Automotive R&D



Drive by wire

Advanced Safety

Camera







ST increased Automotive

R&D resources by 30% to

Car sensors

meet increased market Car networking

demand for innovation





Infotainment

Hybrid vehicle

Low emission

engine



Automotive Product Group Ugo Carena

Innovative Applications

Hybrid Vehicle: the future of mobility



Integration of a combustion engine with

an electrical motor

Hybrid vehicle production will exceed

2.5 M units in 2011 (Strategy Analytics est.)

Almost 50% of the base cost of an hybrid

vehicle is made up by electrical systems

compared with 15% for the conventional car





ST developing hybrid vehicle components

with a major Japanese OEM







> $ 80 full kit value







Automotive Product Group Ugo Carena

Innovative Applications

Pre-crash and driver information system: the future of safety

Convergence of Night vision

multiple technologies



Radar Power

Emergency

call

MEMS

Pedestrian protection

Camera





Video

processing



Safety









$60 full kit value

TAM > $1B in 2010 Source : SA



Automotive Product Group Ugo Carena

Innovative Applications

Connectivity, Video and Navigation: the future of Car Infotainment









Navigation Digital Mobile Video

Leveraging on ST leadership in

Home, Mobile and Personal

Communication to address

Advanced Multimedia in the Car





$75 full kit value

TAM > $1.5B in 2010



Traffic Info + E Call Voice Recognition

Source : SA



Automotive Product Group Ugo Carena

Mastering Satellite Digital Broadcasting





SDARS

nd

Baseba SDARS

Front-end







NEWS & SPORT

MUSIC









WEATHER ST market share * TRAFFIC INFO

BB decoder : approx. 70%

*Source: Sirius, XM FE chip : approx. 50%

Automotive Product Group Ugo Carena

Leadership in Power Train

ASSP ASIC



4 Cylinder Gasoline Direct

Injection Injection



> $20 kit value > $30 kit value









Automatic

Gearbox

Diesel Direct Injection

> $30 kit value

> $40 kit value



* Source : SA Power Train 2005 TAM *: $3.6 B

Automotive Product Group Ugo Carena

Leadership in Safety

ASSP ASIC



Air Bag Vehicle Stability

Control



> $25 kit value > $30 kit value









Power Steering Advanced

Braking

> $15 kit value

> $20 kit value





* Source : SA Safety 2005 TAM *: $3.5B

Automotive Product Group Ugo Carena

Leadership in Car Body

ASSP ASIC



Light Center Tire Pressure Monitor

> $25 kit value > $15 kit value









Door Zone & Positioning Systems Climate Control





> $22 kit value > $6 kit value









* Source : SA Car Body 2005 TAM *: $3.8B

Automotive Product Group Ugo Carena

Leadership in Car Infotainment

ASSP ASIC

Digital Car Radio Navigation

OEM

Aftermarket



> $15 kit value > $20 kit value





Digital Mobile Video Multimedia Convergence

Audio & video processing

GPS UMTS Bluetooth + WLan

Speech processing

> $20 kit value > $25 kit value







* Source : SA Infotainment 2005 TAM *: $2.8B

Automotive Product Group Ugo Carena

ST Business Model Evolution in Automotive

System super-

integration with

ASIC development

for market leaders









Customer IPs

Partnership with integration and

competitors foundry









System

definition with

car makers





Automotive Product Group Ugo Carena

TM









Enabling real Software

portability

Joint Development Program

Driving the 32bit automotive

microcontroller roadmap defining a

de-facto standard

Gateway









Braking Systems

Power Train Drive-by-Wire Suspensions Control





T

M









Optimizing R&D investment

Enabling a real dual effectiveness securing products

source concept and technology development

execution

Automotive Product Group Ugo Carena

ST Competitive Advantages in Automotive





Outperforming market growth

Expanding the strategic client partnerships in new

geographical areas

Contributing to the excellence in innovation by the

convergence of ST technology portfolio and IPs

Driving the Quality of the manufacturing machine

Internal second source assured to Customers across

all process families

High profitability







Automotive Product Group Ugo Carena



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