FIRST QUARTER REPORT 2010 FIRST QUARTER REPORT 2010 Claudia Levo Senior Vice President, Communications SAFE HARBOR 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. FIRST QUARTER REPORT 2010 Gilles Delfassy, President and CEO NET SALES ∙ Net sales $606 million ∙ Ongoing portfolio transition ∙ Some seasonal effect ∙ Lower number of days in the fiscal period $ million 800 700 600 500 400 YoY pro-forma: +8% QoQ: -18% 300 200 100 0 1 © ST-Ericsson 2010 2 3 2009 5 4 FIRST QUARTER REPORT 2010 2010 5 22/04/2010 TRANSFORMING THE COMPANY • Entry & feature phones ∙ Smartphones ∙ Connected devices ∙ High-value entry • Modem only ∙ Application engine ∙ Modem ∙ Connectivity • Three big customers ∙ Diversified customer portfolio ∙ Open/complete platforms • Custom solutions ∙ Global • Europe and Asia © ST-Ericsson 2010 6 FIRST QUARTER REPORT 2010 22/04/2010 ST-ERICSSON HIGHLIGHTS IN Q1 ∙ Launched entry smartphone platform, U6715 - shipping to Acer ∙ Shipped 10 million TD chipsets to our customers ∙ Enhancements to our advanced smartphone platform, U8500 ∙ Reached dual-core at 1.2GHz ∙ Best-in-class HSPA+ solution – multiple wins ∙ New multimode modem architecture for numerous access technologies ∙ Collaboration with China Mobile on TD-LTE © ST-Ericsson 2010 7 FIRST QUARTER REPORT 2010 22/04/2010 FIRST QUARTER SUMMARY ∙ Adjusted operating loss $114 million reflecting ∙ Lower sales ∙ Unfavorable product mix ∙ Lower contribution from European funding programs ∙ Inventory reduced by $14 million to $230 million ∙ Net cash $120 million ∙ Restructuring plans on track ∙ Around 50% of total savings of $230 million plan realized ∙ $115 million plan to contribute savings from H2 2010 ∙ R&D efficiency program initiated and integration of IT systems completed © ST-Ericsson 2010 8 FIRST QUARTER REPORT 2010 22/04/2010 OUTLOOK ∙ Sequential net sales approximately flat with respect to the first quarter 2010* ∙ Improvements of operating result not anticipated to occur until the second half of 2010* * This slide contains forward looking statements © ST-Ericsson 2010 9 FIRST QUARTER REPORT 2010 22/04/2010 WHAT OUR CUSTOMERS WANT Smartphones Connected devices • High-performance application engines • High-speed modems • Integrated or standalone solutions • Optimized thin modems • Multi-mode capable • Integrated or external Entry and low cost • Features at lowest cost and power • Single-chip integration • Market ready solutions © ST-Ericsson 2010 10 FIRST QUARTER REPORT 2010 22/04/2010 IN SUMMARY - 2010 PRIORITIES • Competitive cost structure • New portfolio • Prepare the company for future, profitable growth © ST-Ericsson 2010 11 FIRST QUARTER REPORT 2010 22/04/2010 Q&A