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 Clemmer

President and CEO

Karl-Henrik

Sundström

CFO

Mike Noonen

Global Sales &

Marketing

Chris Belden

Operations

René Penning de

Vries

CTO

Alexander Everke

General Manager

HPMS (excl. Auto /

ID)

Ruediger Stroh

General Manager

HPMS Identification

Kurt Sievers

General Manager

HPMS Automotive

Guido Dierick

General Counsel

Peter Kleij

Human Resource

Management

NXP Semiconductors Management Team

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Frans Scheper

General Manager

Standard Products

Peter Kelly

Operations

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

as

eli

ne C

MO

S:

MP

U, M

em

ory

, L

og

ic

Mo

re M

oo

re:

Min

iatu

rizati

on

Sense, Interact, Empower

High-Performance Components

Information

Processing,

Storage &

Security45nm

65nm

90nm

c13

c18

c35

c75

Passives

High

Voltage

Power

Analog

(amp, IF,

DC) RFSensors

Actuators

Bio-

chips

High-Performance

Mixed-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 End

Back End

Manchester

Jilin

Shanghai/Suzhou

Kaohsiung

Hong Kong/Guangdong

CabuyaoSingapore

Bangkok

Site name in blue = Joint Venture

Seremban

Wireless infra, lighting

& industrial

Mobile, consumer

& computingDistributors

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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