Field Trip 2006 - London, May 23rd
Automotive
Ugo CarenaCorporate Vice President
APG
Ugo CarenaAutomotive Product Group
7.48.0
8.3
9.39.1
0
200
400
600
800
1000
1200
1400
2001 2002 2003 2004 20057.0
7.5
8.0
8.5
9.0
9.5
10.0
Sales Market Share (%)
ST Automotive Sales and Market Share Evolution
Early phase: smart power
Transition todigital core
Full systemsolution approach
Mar
ket
ST M
arke
t sha
re (%
)
APG
sal
es
Source: ST, iSuppli
2005 GrowthMarket : + 5 %ST: + 8 %
2001 – 2005 CAGRMarket : + 10 %ST: + 19 %
Ugo CarenaAutomotive Product Group
ST: Broad Range Supplier in AutomotivePowertrain
Market leader in Gasoline and Diesel Injection: > 35% market share *
SafetyMarket leader in ABS, Air Bag, Vehicle control:> 40% market share*
Car BodyMarket leader in door
control modules:> 20% market share*
InfotainmentMarket Leader in Power Amplifier
and Digital Broadcasting :> 50% market share *
* Source : Strategy Analytics (SA) 2005, ST data
Ugo CarenaAutomotive Product Group
ST Product Strategy in Automotive
ASIC
ASSP
• Advanced safety• Euro 5 Injection• Hybrid vehicle• Vehicle control • Infotainment
• Power Supply• Battery charging• Car Radio• Air Bag• 4 cylinder Injection
Lead R&D and technology roadmapMeet strategic partners needsHi-end products with higher ASP
Meet the standardization market evolutionDrive the emerging markets expansionOffer system kit solutions
Ugo CarenaAutomotive Product Group
ST increased Automotive R&D resources by 30% to
meet increased market demand for innovation
ST Commitment in Automotive R&D
Advanced Safety Camera
Hybrid vehicleLow emission
engine
Infotainment
Car sensors
Drive by wire
Car networking
Ugo CarenaAutomotive Product Group
Innovative ApplicationsHybrid Vehicle: the future of mobility
ST developing hybrid vehicle components with a major Japanese OEM
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
> $ 80 full kit value
Ugo CarenaAutomotive Product Group
Innovative ApplicationsPre-crash and driver information system: the future of safety
Source : SA
Night vision
Pedestrian protection
Convergence of multiple technologies
Camera
Radar
MEMS
Safety
Power
Videoprocessing
$60 full kit valueTAM > $1B in 2010
Emergencycall
Ugo CarenaAutomotive Product Group
Innovative ApplicationsConnectivity, Video and Navigation: the future of Car Infotainment
Leveraging on ST leadership in Home, Mobile and Personal Communication to address Advanced Multimedia in the Car
$75 full kit valueTAM > $1.5B in 2010
Source : SA
Navigation
Traffic Info + E Call Voice Recognition
Digital Mobile Video
Ugo CarenaAutomotive Product Group
Mastering Satellite Digital Broadcasting
WEATHERWEATHER
MUSICMUSIC
TRAFFIC INFOTRAFFIC INFO
SDARSBaseband SDARS
Front-end
ST market share *BB decoder : approx. 70%
FE chip : approx. 50%
NEWS & SPORTNEWS & SPORT
*Source: Sirius, XM
Ugo CarenaAutomotive Product Group
Leadership in Power Train
4 Cylinder Injection
> $20 kit value
Diesel Direct Injection
> $40 kit value
Gasoline DirectInjection
> $30 kit value
ASSP ASIC
Automatic Gearbox
> $30 kit value
Power Train 2005 TAM *: $3.6 B* Source : SA
Ugo CarenaAutomotive Product Group
ASSP ASICLeadership in Safety
Air Bag
> $25 kit value
Advanced Braking
> $20 kit value
Power Steering
> $15 kit value
Vehicle StabilityControl
> $30 kit value
Safety 2005 TAM *: $3.5B* Source : SA
Ugo CarenaAutomotive Product Group
ASSP ASICLeadership in Car Body
> $25 kit value
> $22 kit value > $6 kit value
> $15 kit value
Light Center
Door Zone & Positioning Systems
Tire Pressure Monitor
Climate Control
Car Body 2005 TAM *: $3.8B* Source : SA
Ugo CarenaAutomotive Product Group
ASSP ASICLeadership in Car Infotainment
> $15 kit value
> $25 kit value
Digital Car Radio
> $20 kit value
Navigation
OEM
Aftermarket
> $20 kit value
Digital Mobile Video Multimedia ConvergenceAudio & video processing
GPS UMTS Bluetooth + WLan
Speech processing
Infotainment 2005 TAM *: $2.8B* Source : SA
Ugo CarenaAutomotive Product Group
ST Business Model Evolution in Automotive
Partnership with competitors
System super-integration with
ASIC development for market leaders
Customer IPsintegration and
foundry
System definition with
car makers
Ugo CarenaAutomotive Product Group
Joint Development ProgramDriving the 32bit automotive
microcontroller roadmap defining a de-facto standard
TM
Power Train Drive-by-WireBraking Systems
Suspensions Control
Enabling real Software portability
Enabling a real dual source concept
Optimizing R&D investment effectiveness securing products
and technology development execution
Gateway
TM
Ugo CarenaAutomotive Product Group
ST Competitive Advantages in Automotive
Outperforming market growthExpanding the strategic client partnerships in new geographical areas Contributing to the excellence in innovation by the convergence of ST technology portfolio and IPsDriving the Quality of the manufacturing machineInternal second source assured to Customers across all process familiesHigh profitability