NXP Company presentation 2011

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NXP Semiconductors

NXP Semiconductors N.V. (NASDAQ: NXPI) provides High Performance Mixed Signal and Standard Product solutions that leverage its leading RF, Analog, Power Management, Interface, Security and Digital Processing expertise.

A global semiconductor company with operations in more than 25 countries, NXP posted revenue of $4.4 billion in 2010.

Our innovations are used in a wide range of automotive, identification, wireless infrastructure, lighting, industrial, mobile, consumer and computing applications.

Rick ClemmerPresident and CEO

Karl-Henrik Sundström CFO

Mike NoonenGlobal Sales & Marketing

Chris BeldenOperations

René Penning de VriesCTO

Alexander EverkeGeneral Manager HPMS (excl. Auto / ID)

Ruediger StrohGeneral Manager HPMS Identification

Kurt SieversGeneral Manager HPMS Automotive

Guido DierickGeneral Counsel

Peter KleijHuman Resource Management

NXP Semiconductors Management Team

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Frans ScheperGeneral Manager Standard Products

Peter KellyOperations

Financial track recordRevenue (millions of USD)

High Performance Mixed Signal Standard Products

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Highlights for Q1 2011

Total NXP revenue of $1,082 million, flat year-on-year– Above original guidance and better than normal seasonality– Product revenue of $979 million, up 9.5% year-on-year

• Up greater than $40 million– HPMS revenue of $742 million, up 6.8% year-on-year– Std. Product revenue of $237 million, up 19.1% year-on-year

Significant Year-on-Year Margin Expansion:– GAAP Gross margin increased to 46.8% from 37.4%– GAAP Operating margin increased to 10.0% from (1.4)%– Non-GAAP gross margin increased to 47.8% from 39.0%– Non-GAAP operating margin increased to 20.6% from 11.7%

Improved Cash Flow:– Trailing 12-month adjusted EBITDA $1.11 billion, up 104% year-on-year

Deleveraging Balance Sheet Continues: – Net debt reduced to $3.75 billion, a decline of $568 million year-on-year

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Key macro growth drivers in electronics

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Security

Energy Efficiency

Health

Connected Mobile Devices

Secure mobile transactions and secure identity

Authentication, tagging and tracking

Car and home access, security & remote diagnostics

Radar and (body) scanning installations

Efficient power conversion and low stand-by power

Energy-saving lighting and back-lighting

Energy conservation through demand side management

Electric/lighter vehicles, intelligent traffic management

Personal healthcare and portable emergency devices

Connected hearing aids and implantable devices

Car safety & comfort

Electronic diagnostics

Proliferation of mobile data usage, wireless infra build-out

Smart mobile devices: always-on, multimedia, location-based

Connected car, many broadcast & connectivity standards

New user interfaces (e.g., touch, joystick)

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High Performance Mixed Signal SolutionsB

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Sense, Interact, EmpowerHigh-Performance Components

Information Processing, Storage & Security45nm

65nm

90nm

c13

c18

c35

c75

Passives

High Voltage Power

Analog (amp, IF,

DC) RFSensors

ActuatorsBio-

chips

High-PerformanceMixed-Signal Solutions• Power Efficiency,

Autonomy• Cost Efficiency• Functional

Performance• Miniaturization• Quality, Ruggedness

and Adaptability

More Than Moore: Enrichment

PowerSensor

Actuator

Processor / Storage

Interface

Radio

Mixed-Signal Sub-Systems

Digital Advanced CMOS

More Than Moore RequiredApplication Optimized Mix of

Analog and Digital

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Leading Patent Portfolio

Leading Mixed-Signal and Digital

Design Skills

Specialty Processes & Competitive

Manufacturing Assets

Deep Applications

Expertise

Deep IP Portfolio

Broad Product

Portfolio Across System

Functions

• 8 priority applications

• Hired >100 Field Application Engineers in 2009

>2,600 experienced HPMS engineers

>3,100 (US)

>37,000 (WW)

3,126 (US)

2,103 (US)

~900 (US)

14,000 (WW)

• World class RF, HV power and Auto processes

• Scale back-end producing 60 billion parts per year

• Largely Asian manufacturing

6,800 HPMS products:

HP RF, Analog, Power, Interface, MCU, DSP, Logic, Security, Sensors,

ADC/DAC

Uniquely Positioned to Win in HPMS

Source: Patent data from annual filings and company web-sites

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Eindhoven (NL)

Caen (F)

Hamburg (GER)

Bangalore (India)

San Diego (US)San Jose (US)

Strong innovation track record dating 50+ yearsFocused investment of over $550 million per year in R&D

Nijmegen (NL)

R&D key figures Approximately 3,000 employees in R&D

of which over 2,600 support our High-Performance Mixed-Signal businesses

Engineering design teams in 22 locations ~14,000 issued and pending patents

Shanghai/Suzhou

Tempe (US)Hong Kong

Leuven (B)

Singapore

Gratkorn (Austria)

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101010

Hamburg (GER)

World class manufacturing capabilities Differentiated process technologies and competitive manufacturing

Nijmegen (NL)

Front EndBack End

Manchester

Jilin

Shanghai/Suzhou

Kaohsiung

Hong Kong/Guangdong

CabuyaoSingapore

Bangkok

Site name in blue = Joint Venture

Seremban

Wireless infra, lighting & industrial

Mobile, consumer & computing Distributors

Automotive Identification Standard Products

No account over 10% of sales, address 1,000+ Customer Design Centers directly, and over 30,000 via distribution

Partnering with the Leading Customers

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Our innovations are used in a wide range of applications

Lighting Industrial

ComputingAutomotive Identification Consumer

MobileWireless infra

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Key applications (1/2)

Lighting Industrial MobileWireless infra

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• Wireless base stations

• Point-to-point

• CATV infrastructure

• Broadcasting

• Lighting drivers (CFL, LED)

• Lighting networks

• Backlighting

• Smart grid

• White goods

• Home / building automation

• Power supplies

• Mobile devices

• Portable power supplies

• Personal health

• Chargers

Key applications (2/2)ComputingAutomotive Identification Consumer

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• In-vehicle networking

• Car access & immobilizers

• Car entertainment

• Solid State Lighting

• Telematics

• Lighting

• Secure identity

• Secure transactions

• Tagging & authentication

• TV

• Satellite, Cable, Terrestrial and IP set-top boxes

• Satellite outdoor units

• Tablet PCs

• Note- /Netbooks

• Desktops

• Power supplies. Monitors and peripherals

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Automotive

#1 CAN/LIN/FlexRay in-vehicle networking

#1 passive keyless entry and immobilizers

#1 car radio

#3 magnetic sensors

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Identification

#1e-Government

#1 Transport & Access management

#3/4 Banking

#1 NFC

#1 Radio frequency identification

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Wireless infrastructure, Lighting and Industrial

#2 in High Performance RF

Strong in lighting drivers

Leader in multi-market 32-bit ARM microcontrollers

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Mobile, Consumer and Computing

#1 in TV and STB tuners

Top 3 in interface, leader in specific niches

#2 in Digital Logic

Leader in notebook AC-DC power Adaptors

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Standard Products

A strong supplier of integrated discretes and modules, used for interface signal conditioning, filtering and ESD protection in mobile phones, consumer and computing

#2 supplier of small-signal discretes with one of the broadest product portfolios in the industry

Standard Products & Key product applications

Broad

Specialized

Mobile handsets & Computing

Various Consumer Electronics

Special emphasis on demands of Automotive & Communications market

All electronics

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