Designing with Freescale Press Briefing Moscow, November 30, 2010 TM Freescale, the Freescale logo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, mobileGT, PowerQUICC, StarCore, and Symphony are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. BeeKit, BeeStack, CoreNet, the Energy Efficient Solutions logo, Flexis, MXC, Platform in a Package, Processor Expert, QorIQ, QUICC Engine, SMARTMOS, TurboLink and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. © 2010 Freescale Semiconductor, Inc. Agenda ► Steve Wainwright Vice President Sales & Marketing; General Manager Freescale EMEA • Freescale update • Key market drivers & solutions ► Andrey Abramov Distribution Sales Manager, General Director Freescale Russia • Freescale Russia update • Key successes Q&A Freescale, the Freescale logo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, mobileGT, PowerQUICC, StarCore, and Symphony are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. BeeKit, BeeStack, CoreNet, the Energy Efficient Solutions logo, Flexis, MXC, Platform in a Package, Processor Expert, QorIQ, QUICC Engine, SMARTMOS, TurboLink and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. © 2010 Freescale Semiconductor, Inc. TM 2 Freescale Focus Four Product Platforms + Software Focused on Growth Markets Leveraging Three Growth Trends Freescale, the Freescale logo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, mobileGT, PowerQUICC, StarCore, and Symphony are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. BeeKit, BeeStack, CoreNet, the Energy Efficient Solutions logo, Flexis, MXC, Platform in a Package, Processor Expert, QorIQ, QUICC Engine, SMARTMOS, TurboLink and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. © 2010 Freescale Semiconductor, Inc. TM 3 Portfolio Solutions General Embedded Body & Security Base stations & Controllers Powertrain & Hybrid Routers & Switches Chassis & Safety Security Appliances Driver Infotainment Printers & Gateways General Embedded Appliance Control Smart Books Home Portable Medical eBooks Smart Meters, Smart Grids RF Remote Controls Factory Automation & Drives Sensors for Phones & Games Freescale, the Freescale logo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, mobileGT, PowerQUICC, StarCore, and Symphony are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. BeeKit, BeeStack, CoreNet, the Energy Efficient Solutions logo, Flexis, MXC, Platform in a Package, Processor Expert, QorIQ, QUICC Engine, SMARTMOS, TurboLink and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. © 2010 Freescale Semiconductor, Inc. TM 4 Third Quarter 2010 Overview ► Sequential • • • • revenue growth Revenue $1.15 B 3.6% increase from Q2 2010 29% increase from Q3 2009 All core businesses up sequentially and year over year ► Profitability • • Operating earnings of $158 million – 13.8% of sales EBITDA of $253 million – 22% of sales ► Strong • • improving liquidity $1.07 billion in cash & cash equivalents Operating cash flow of $182 million Operating earnings and EBITDA adjusted for purchase accounting and other items. See GAAP reconciliations at Freescale.com/investor. Freescale, the Freescale logo, AltiVec, C-5, CodeTEST, CodeWarrior, ColdFire, C-Ware, mobileGT, PowerQUICC, StarCore, and Symphony are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. BeeKit, BeeStack, CoreNet, the Energy Efficient Solutions logo, Flexis, MXC, Platform in a Package, Processor Expert, QorIQ, QUICC Engine, SMARTMOS, TurboLink and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. © 2010 Freescale Semiconductor, Inc. TM 5 Automotive key market Drivers “80% percent of innovation is electronic” “Impossible to comply with regulation without electronic systems” Electronic value as % of car -Automotive OEM ? Advanced Driver Assistance Active-Passive Safety Green Powertrain Radar / Vision Telematics Infotainment Airbag ABS / ESP Body Electronics Multiplexing 50% 35% 30% 22% Electronic Fuel Injection 2.5% 15% 10% 5% 1950 1960 1970 1980 1990 2000 2005 Freescale, the Freescale logo are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. QorIQ and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. The Power Architecture and Power.org word marks and the Power and Power.org logos and related marks are trademarks and service marks licensed by Power.org. © 2010 Freescale Semiconductor, Inc. . 2010 2030? TM 6 Freescale in Automotive We help put 160,000 new cars on the road every day More than 3 billion of our MCUs are operating the world’s fleet today Freescale has shipped over 200 million 32-bit Power Architecture MCUs, helping make cars smarter and safer Freescale, the Freescale logo are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. QorIQ and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. The Power Architecture and Power.org word marks and the Power and Power.org logos and related marks are trademarks and service marks licensed by Power.org. © 2010 Freescale Semiconductor, Inc. . TM 7 Qorivva Qorivva MCUs are based on industryleading Power Architecture technology, for a full range of automotive applications Single-core and multicore variants, allowing options for increased performance and safety Unleashing the Power of Automotive Innovation New MCU families built on advanced 55nm technology offer leading-edge integration and performance capabilities Embedded safety architecture using redundant cores and fault monitoring for safety-critical applications Advanced software tools to optimize for multicore applications with the industry’s best 3rd party ecosystem support Freescale, the Freescale logo are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. QorIQ and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. The Power Architecture and Power.org word marks and the Power and Power.org logos and related marks are trademarks and service marks licensed by Power.org. © 2010 Freescale Semiconductor, Inc. . TM 9 Industrial Key Market Driver Freescale, the Freescale logo are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. QorIQ and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. The Power Architecture and Power.org word marks and the Power and Power.org logos and related marks are trademarks and service marks licensed by Power.org. © 2010 Freescale Semiconductor, Inc. . TM 10 Kinetis MCUs Design Potential. Realized. The most scalable portfolio of low-power ARM Cortex-M4 MCUs available today Innovative 90nm Thin-Film Storage Flash with FlexMemory embedded EEPROM capability Exceptional mixed-signal integration One of the most comprehensive ARM® enablement portfolios, including solutions from Freescale as well as the ARM connected community Kinetis products are now available Building the Industry’s most trusted portfolio Freescale, the Freescale logo are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. QorIQ and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. The Power Architecture and Power.org word marks and the Power and Power.org logos and related marks are trademarks and service marks licensed by Power.org. © 2010 Freescale Semiconductor, Inc. . TM 11 Networking Key Market Drivers Peak Download Speed Mobile Broadband Evolution 1 Gbps Wi-Fi Ethernet/Wired 100 Mbps HSPA WiMax Packet Based 10 Mbps 1 Mbps New EDGE 100kbps GPRS GSM Cell Based 10kbps 0 30 Feet 300 Feet 1 Mile 10 Miles 100 Miles Distance from Access Point for Optimum Speed Freescale, the Freescale logo are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. QorIQ and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. The Power Architecture and Power.org word marks and the Power and Power.org logos and related marks are trademarks and service marks licensed by Power.org. © 2010 Freescale Semiconductor, Inc. . TM 12 Freescale QorIQ Processor Platforms QorIQ P5 P5020/P5010 Up to 2.2 GHz, <30W Max, 64-bit core QorIQ P4 P4080/P4040 Up to 1.5 GHz, <30W Max, QorIQ P3 P3041 Up to 1.5 GHz, <15W Max, QorIQ P2 P2040, P2020/P2010 Up to 1.2 GHz, <8W Max, QorIQ P1 New! P1010/P1014 NEW! P1020/P1011, P1021/P1012, P1022/P1013, P1023/P1017 Up to 800 MHz, <5W Max • Network complexity driving need for more memory space (ie. routing tables) • Size, Weight, Power & Performance (SWaPP) • Combining data + control plane with a many core solution Metro Carrier Edge Router • Infrastructure consolidation leading to data + control plane • Power constrained to < 15W • Pervasive network connectivity with triple play convergence • High integration for a cost-effective, low power platform Service Provider Routers Network Admission Controls IMS Controller Converged Media Gateway Radio Network Control SSL, IPSec, Firewall Storage Networks Serving Node Router Access Gateway Unified Threat VoIP Carrier-Class Wireless Media Base Station Media Gateway Gateway Mgmt Integrated Services Router Freescale, the Freescale logo are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. QorIQ and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. The Power Architecture and Power.org word marks and the Power and Power.org logos and related marks are trademarks and service marks licensed by Power.org. © 2010 Freescale Semiconductor, Inc. . Network Attached Storage Digital Video Surveillance TM 13 Consumer Key Market Driver: Social Networks Explosion Country/Territory Population Date Last Updated % of World Population 1 China 1,333,680,000 October 23, 2009 19.64% 2 India 1,198,003,000 3 United States 307,768,000 4 Indonesia 229,965,000 5 Brazil 192,965,000 October 23, 2009 2.83% 6 Pakistan 167,761,000 October 23, 2009 2.47% 7 Bangladesh 162,221,000 2.39% 8 Nigeria 154,729,000 2.28% 9 Russia 141,881,000 October 23, 2009 2.09% 10 Japan 127,540,000 September 23, 2009 1.88% 11 Mexico 107,550,697 12 Philippines 92,226,600 Rank •350 Million Active Users •More than 2 billion photos uploaded each month •More than 8 billion minutes spent on facebook every day 50% of active users log onto facebook in any given day! Freescale, the Freescale logo are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. QorIQ and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. The Power Architecture and Power.org word marks and the Power and Power.org logos and related marks are trademarks and service marks licensed by Power.org. © 2010 Freescale Semiconductor, Inc. . 17.64% October 23, 2009 4.35% 3.39% 1.58% Mid, 2009 1.36% TM 14 Consumer Key Market Driver: Connected Devices Explosion Computing Growth Drivers Over Time, 1960-2020E 1,000,000 100,000 Mobile consumer Increased Integration Cell phone/ Desktop notebook 10,000 105M +Units PC 100 15M +Units Mini Computer 100M +Units 10 0 Mainframe 10M + Units 1M + Units 1960 1970 1980 Freescale, the Freescale logo are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. QorIQ and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. The Power Architecture and Power.org word marks and the Power and Power.org logos and related marks are trademarks and service marks licensed by Power.org. © 2010 Freescale Semiconductor, Inc. . 1990 2020 TM 15 i.MX ARM Based Processors Freescale, the Freescale logo are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. QorIQ and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. The Power Architecture and Power.org word marks and the Power and Power.org logos and related marks are trademarks and service marks licensed by Power.org. © 2010 Freescale Semiconductor, Inc. . TM 16 MMA9550L At-a-Glance MMA9550L Sensor Sensing Software Customer/Third Party Innovation ColdFire V1 32-Bit Processor Power Management Applications Connectivity: I2C/SPI Scheduler Communications ► Freescale’s extensive sensor expertise for over 30 years continues to advance with intelligent context awareness sensing for integrated interpretation and decision making. Inertial Sensor Gyro Pressure Touch Magnetics Freescale, the Freescale logo are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. QorIQ and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. The Power Architecture and Power.org word marks and the Power and Power.org logos and related marks are trademarks and service marks licensed by Power.org. © 2010 Freescale Semiconductor, Inc. . 17 TM Conclusion ► Key market drivers generate long term electronic content growth perspective ► Freescale well positioned to benefit from those growth markets ► Leading edge product & technology portfolio ► Provider of real, complete solutions ► Freescale is a global leader in Embedded processing solutions Freescale, the Freescale logo are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. QorIQ and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. The Power Architecture and Power.org word marks and the Power and Power.org logos and related marks are trademarks and service marks licensed by Power.org. © 2010 Freescale Semiconductor, Inc. . TM 18 Freescale in Russia Freescale, the Freescale logo are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. QorIQ and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. The Power Architecture and Power.org word marks and the Power and Power.org logos and related marks are trademarks and service marks licensed by Power.org. © 2010 Freescale Semiconductor, Inc. . TM 19 Freescale in Russia - Background ► Official opening of Motorola SPS lab, October 1995 ► FSL site in Russia is located near Moscow, in Zelenograd. Zelenograd is the home of numerous high tech companies and research institutes specializing in electronics, nanotechnology and environmental technology. ► 90 employees in 2009 – fast growing R&D team ► Main activities: • Library and memories which serve all business groups; • Design technologies tools for Library and Memories for internal customers • Design center for automotive analog • Sales office ► Site maintains active relationship with universities (Moscow Institute of Electronic Technology and 10 universities in network with microprocessor labs) Freescale, the Freescale logo are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. QorIQ and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. The Power Architecture and Power.org word marks and the Power and Power.org logos and related marks are trademarks and service marks licensed by Power.org. © 2010 Freescale Semiconductor, Inc. . TM 20 Freescale Strategy in Russia Target markets: ► Aligned with growth areas in Russia – Industrial, Automotive and Telecom. ► Industrial highlights: • E-metering, Motor Control, Appliance (energy efficiency/low power solutions) • Security and Video surveillance • Factory automation - Control and secure communications ► Automotive highlights • Emission controls / Engine management • Safety, Security and comfort / Telematics • ERA GLONASS ► Telecom • highlights SME, Broadcast and LTE Freescale, the Freescale logo are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. QorIQ and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. The Power Architecture and Power.org word marks and the Power and Power.org logos and related marks are trademarks and service marks licensed by Power.org. © 2010 Freescale Semiconductor, Inc. . TM 21 Freescale Strategy Distribution Network: ► Two years ago, Russian Distributor, Symmetron, was added to our Global Distributor network of Arrow, EBV, Silica. ► These additions to our channel form a key part of our strategy to extend our portfolio reach and technical support in the Russian Market ► Strong alignment between Freescale’s strategy, portfolio and solutions with all authorized distributors and partners. ► Their market, application and field technical expertise will enable strong local support for customers, backed up by extensive resources and support from a global Freescale. Freescale, the Freescale logo are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. QorIQ and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. The Power Architecture and Power.org word marks and the Power and Power.org logos and related marks are trademarks and service marks licensed by Power.org. © 2010 Freescale Semiconductor, Inc. . TM 22 Automotive Prime Minister Mr. Putin drives Lada Kalina • Navigation system managed by Freescale i.MX • Support Russian Navigation Standard GLONASS • Will be set up in Lada Kalina and Lada Priora in 2011 Freescale is in almost all new designs or redesigns of local OEMs • Engine Control Unit • Infotainment • Body control / Clusters Active participation in developing of ERA GLONASS system Freescale, the Freescale logo are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. QorIQ and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. The Power Architecture and Power.org word marks and the Power and Power.org logos and related marks are trademarks and service marks licensed by Power.org. © 2010 Freescale Semiconductor, Inc. . TM 23 Energy Saving Lighting • ZigBee wireless system for Street Lighting • High Brightness / High Power Solid State Lightning based on DALI & DMX512 lighting protocols Smart Metering • ZigBee wireless system based on SNAP protocol for metering data acquisition • PLC – Power Line Communication • AMR – Wide range of Reference design based on i.MX, PowerPC and Kinetis Freescale, the Freescale logo are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. QorIQ and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. The Power Architecture and Power.org word marks and the Power and Power.org logos and related marks are trademarks and service marks licensed by Power.org. © 2010 Freescale Semiconductor, Inc. . TM 24 Environment Friendly Design Electrical bicycle • Electrical Motor is managed by best in class Freescale Digital Signal Controller • High Performance and Low Power increase battery life • 16 bit DSC MC56F8037 •PMSM 360 W (peak 1kW) motor with Vector Control • Efficiency 92% • Cruising range with 10Ah 42V battery: 50 km @ 15 km/h (only motor) Freescale, the Freescale logo are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. QorIQ and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. The Power Architecture and Power.org word marks and the Power and Power.org logos and related marks are trademarks and service marks licensed by Power.org. © 2010 Freescale Semiconductor, Inc. . TM 25 E-readers Pocketbook Global • Models 601 Revo and 603 are managed by Freescale ARM11 MCU i.Mx357 • Special Power-saving mode to extend battery life • Performance to get faster page flips E Ink and Freescale announced a partnership end of 2009 to develop the i.MX 508 integrated processor Freescale, the Freescale logo are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. QorIQ and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. The Power Architecture and Power.org word marks and the Power and Power.org logos and related marks are trademarks and service marks licensed by Power.org. © 2010 Freescale Semiconductor, Inc. . TM 26 www.towersystem.ru Присоединяйся. Общайся. Воплощай. Freescale, the Freescale logo are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. QorIQ and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. The Power Architecture and Power.org word marks and the Power and Power.org logos and related marks are trademarks and service marks licensed by Power.org. © 2010 Freescale Semiconductor, Inc. . TM http://www.towersystem.ru/forum/ Присоединяйся. Общайся. Воплощай. Freescale, the Freescale logo are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. QorIQ and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. The Power Architecture and Power.org word marks and the Power and Power.org logos and related marks are trademarks and service marks licensed by Power.org. © 2010 Freescale Semiconductor, Inc. . TM Freescale Offers Product Longevity Program ► The embedded market needs long-term product support ► Freescale is pleased to introduce a formal product longevity program for the market segments we serve • For the automotive and medical segments, Freescale will make a broad range of program devices available for a minimum of 15 years • For all other market segments in which Freescale participates, Freescale will make a broad range of devices available for a minimum of 10 years • Life cycles begin at the time of launch ► A list of participating Freescale products is available at: www.freescale.com/productlongevity Freescale, the Freescale logo are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. QorIQ and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. The Power Architecture and Power.org word marks and the Power and Power.org logos and related marks are trademarks and service marks licensed by Power.org. © 2010 Freescale Semiconductor, Inc. . TM 29 Conclusion • Target areas in Russia – Industrial, Automotive and Telecom • Product portfolio is perfectly align with growing market segments in Russia • A lot of success stories in Automotive Record for Design WINs • Kinetis Cortex-M4 MCUs open new opportunities and market segments • Longevity program reinforce confidence of Russian customers • Emphasis placed on addressing customer base in Russian Freescale, the Freescale logo are trademarks of Freescale Semiconductor, Inc., Reg. U.S. Pat. & Tm. Off. QorIQ and VortiQa are trademarks of Freescale Semiconductor, Inc. All other product or service names are the property of their respective owners. The Power Architecture and Power.org word marks and the Power and Power.org logos and related marks are trademarks and service marks licensed by Power.org. © 2010 Freescale Semiconductor, Inc. . TM 30 TM