NXP 2012 Analyst Day Final

Z
NXP Semiconductors
Analyst Day 2012
New York | September 13, 2012
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Agenda
Begin
End
Presenter
8:05
8:20
Introduction Rick Clemmer, Chief Executive Officer
8:20
8:50
Automotive Kurt Sievers, EVP and General Manager
8:50
9:05
Automotive Q & A
9:05
9:25
Infrastructure & Industrial Alexander Everke, EVP and General Manager
9:25
9:35
Infrastructure & Industrial Q & A
9:35
9:50
Break
9:50
10:20
Portable & Computing Dave French, EVP and General Manager
10:20
10:35
Portable & Computing Q & A
10:35
11:05
Identification Ruediger Stroh, EVP and General Manager
11:05
11:20
Identification Q & A
11:20
11:50
Financial Update Peter Kelly. Chief Financial Officer
11:50
12:05
Financial Q & A
12:05
12:15
Close Rick Clemmer, Chief Executive Officer
NXP Semiconductors
Z
Rick Clemmer
Chief Executive Officer
Overview
Strategy Review
Lessons Learned
Key Achievements
Business Strategy
1
Focused on high growth application segments fueled by key mega-trends
Leverage unique HPMS capabilities to power new product engine
Multiple growth drivers across a range of target applications
Margin expansion into long-term model
Capital structure de-leveraging
Above-market
Sales Growth
Unparalleled
Earnings Leverage
Focused on Growth from Key Mega Trends

Key Mega-Trends (>$1,100 billion spend1)
Energy
Efficiency
Connected
Devices
Security
Health
require
High-Performance Mixed-Signal Solutions

Application-optimized analog and digital solutions that help our customers to
truly differentiate their products in terms of features, cost and time to market
to address
Highest Growth Segments in 8 Priority Application Areas

Automotive
Identification
Wireless
Infrastructure
81. Represents estimated market size of the sectors shown
Lighting
Industrial
Mobile
Consumer
Computing
Product Engine Tuned to HPMS Capabilities

WW Patent Awards
TXN
Leading RF,
Mixed-Signal and
Power Design Skills
Broad Product
Portfolio Across
System Functions
Investment($M)1
389
2009
533
Deep IP
Portfolio
2011
Differentiated Processes
Technology + World-class
Manufacturing Assets
Source: Patent data from annual filings and company websites

Note: Total non-GAAP R&D expenses associated with HPMS segment.
11,000
ADI
MCHP
HPMS R&D
Deep Systems
Applications
Expertise
NXP
35,000
3,858
2,253
LLTC
1,100
MXIM
900
Continued Focus on the HPMS Market
($ in M)
Large, Fast Growing
and is Attractive Due to

Broad and diverse customer base
25,000
High barriers to entry

20,000
Sticky customer relationships

7%
15,000
Long product life cycles

Greater price stability
10,000
Sustainable and higher margins
5,000
2010
2011
2012E
2013E
2014E
2015E
HPMS SAM
HPMS SAM Estimated to Grow 7% 5-yr CAGR

Approximately 250300bps Faster than Overall
Semiconductor Market1
1. Based on NXP internal research and analysis of the serviceable and addressable market (SAM)
Lessons Learned
Product Investments
CFL Lighting Driver - rare earth cost and LED pricing closed opportunity
DAC Investment would not have yielded acceptable return or share
Margin Expansion
Gross margin expansion slower than anticipated model still valid

Operating margin expansion should accelerate faster
Cyclicality
Not immune from macro influence
Key Achievements
30x
Increased Product Traction1
20x
10x
~$575M
0x
3QCY2010
1QCY2011
3QCY2011
1QCY2012
3QCY2012E
Cumulative and Approved Design-win Award
Delivered Faster Growth2,3
1.60
1.5x
1.20
0.80
0.40
0.00
3QCY2010
1QCY2011
NXPI - HPMS
Reduced Leverage
$3.7
3QCY2011
1QCY2012
3QCY2012E
HPMS Peer
$3.8
$3.8
$3.7
$3.0
$3.1
$3.0
$3.0
$2.9
4.9x
2.9x
3QCY2010
1QCY2011
Net Debt ($B)
3QCY2011
Net Debt/TTM adj. EBITDA
1. Based on NXP internal design win tracking database, all values assume a 3-year lifecycle
2. Based on normalized NXP revenue growth, versus normalized, market-capitalization weighted index of HPMS Peers
3. Data for 3Q12 based on First Call estimates
1QCY2012
3QCY2012E
5x
4x
3x
2x
1x
0x
Competitive HPMS and Standard

Product Franchises
2011 Product Segment Contribution ($M) and 2011 Product Line Position1
Standard Products
9% Y-Y
Emerging
Player
17%
Automotive
~ Flat Y-Y
#3 - Focused
Contender
11%
Identification
+19% Y-Y
Portable &
Computing
(4%) Y-Y
Infrastructure
& Industrial
(3%) Y-Y
1. Based on NXP internal research and analysis of the serviceable and addressable market (SAM)
#2 - Competitive
22%
#1 - Market
Leader
50%
Automotive
Kurt Sievers
Executive Vice President & General Manager
Automotive Business Unit
NXP Connects the Car

802.11p
ISDB-T
802.11p
Ethernet
LF, UHF
NFC
Cellular
NFC
Car to Car, Car to Infrastructure, Car to Portable, Inside the Car
Automotive Market Opportunities

Core
Emerging
Car Entertainment
In-Vehicle
Networking
Car Access
Magnetic
Sensors
Business
$1.2B
$0.5B
$0.4B
$0.8B
$0.2B
Market Growth Rate2
6%
6%
6%
5%
40%
Market Share3
35%
52%
41%
12%
0%
NXP Rank4
#1
#1
#1
#3
N/A
RMS5
1.5
2.3
2.6
0.4
N/A
Market Size1
Key Products
Tuners
DSPs
Audio Amps
CAN/LIN
FlexRay
Ethernet
ABS Sensors
Immobilization
Keyless Entry/Go Angular
Sensors
SmartKey
Temp. Sensors
Key Competitors
STM
TXN
SLAB
IFX
ATML
TXN
TXN
ATML
IFX
Allegro
MELE
LED Drivers
Intelligent
Traffic
Management
LLTC
TXN
Key Customers
Source:
(1) Market size based on NXP CMI internal research of applicable peers for 2011; (2) Market growth rate is 3-yr. CAGR based on NXP CMI research for 2012 2015;
(3) Market share based on NXP CMI internal research versus applicable peers for 2011; (4) NXP rank 2011; (5) Relative Market Share 2011
Semiconductors to Outgrow Car Market

Global Car Production
Semi TAM to Outgrow Car Production

Indexed to 1 for 2011
Mill Units
(CAGR 2012 2015: 3%)

100
80
1.3
1.2
1.1
1.0
2012
60
Light Vehicle
Production [MU]
$/car
40
20
2013
2014
2015
Automotive SAM [M$]
Automotive
TAM [M$]
Average Semi Content Per Car ($)

500
450
460
419
400
350
344
323
300
250
0
2012
2013
2014
Europe 2%
China 7%
Japan -3%
ROW 5%
2015
N. America 2%
249
210
200
150
100
2012
Mature Regions
Source: IHS Automotive July 2012, Strategy Analytics July 2012, NXP estimates
213
190
2013
China
2014
ROW
2015
WW Average
Sharp Focus on Selected Segments
Non-Power Analog
Mixed Signal 24%
Power 23%
SAM [M$]
Automotive BU Focus SAM 6.5% 3-Yr CAGR

4000
3500
3000
2500
2000
1500
2011 TAM $23B
1000
500
0
Sensors
13%
Discrete 3%
C 28%
Opto 4%
2012E
2013E
2014E
Car Entertainment
Sensors
Car Access
SSL
2015E
IVN
Memory 5%
NXP is clear leader in selected Mixed

Signal segments
Strategy: SAM expansion through innovation
and add select emerging business
Source: Strategy Analytics, April 2012
Mega Trends Shaping Automotive
Energy Efficiency
Government regulations
Electrification of Drive-Train
Replacement of mechanics by smart electronics
Connected Devices
Safety
Entertainment & convenience
Intelligent traffic management
Security
Hacking prevention for connected cars

Theft prevention
Counterfeit part detection
Trends Driving the Connected Car
Safety
Entertainment
Assisted driving
Seamless media
Collision avoidance
Digital radio
eCall & roadside

assist
Multi-channel
sound
Hands free calls
Convenience
Remote car
management
Passive keyless
entry / go
Personalization
Traffic
Management
New mobility
- Car sharing
- eCar management
Road pricing
Driving Growth in Automotive Connect the Car

Core
Growth
Maximize Share
Expand SAM in Core
#1 Car Entertainment
#1 Car Access
#1 In-Vehicle Networking
#3 Magnetic Sensors
SW Defined Digital Radio

Class-D Amplifiers
Passive Keyless Entry/Go
Smart Key
FlexRay & Ethernet
Partial Networking
and Add Select

Emerging Business
LED Drivers
Intelligent Traffic Mgmt
Car Entertainment
SAM/Car
SAM/Car
SAM Expansion & Addition of Select Emerging Business

Car Access
Software Defined
Digital Radio
Smart-Key
Class-D
2 Way RF
RFCMOS 1-Chip (DSP & Tuner)
ClassAB
Remote Keyless Entry
AM/FM
Immobilizer
In-Vehicle Networking
Time
SAM/Car
SAM/Car
Time
Emerging Business
Ethernet
Car-2-X
Isolation
Partial Networking
LED Lighting
FlexRay
Telematics
CAN/LIN
Time
Time
SAM/Car
#1 in Car Entertainment Growth Strategy

Designed-In at 19 of Top 20 Tier-1
Car Entertainment
Expand #1 in AM/FM & Digital Radio

Software Defined
Digital Radio
Class-D
RFCMOS 1-Chip (DSP & Tuner)
ClassAB
Time
Digital
Radio
System Value:
$69 /Car
Expand SAM in fast growth

Digital Radio & TV
- Software Defined Radio
AM/FM
AM/FM &
Basic Audio
- Fully integrated 1-Chip
AM/FM
Sound
System/
Adv.
Audio
System Value:
$1325 /Car
Conversion Class-AB Class-D
#1 in Car Entertainment Leadership Products

SAF775x Industry 1st Analog/Digital
Radio One-Chip
Radio/audio processing and AM/FM/DAB tuners
Release early 2013
Designed-in at several leading OEMs and Tier-1s
SAF35xx Industry 1st Global

Automotive Digital Radio
HD Radio, DAB, DRM
Software-defined multi-standard
In mass production
Surround
Sound
Acoustic
Noise Cancel
SAM/Car
#1 in Car Access Growth Strategy

Car Access
Designed-In at almost all OEMs

Expand #1 in classic keys
Smart-Key
2 Way RF
Remote Keyless Entry
Immobilizer
- Fully scalable system solutions
Expand SAM with fast growth

convenience functions
- Passive keyless entry/go
Time
Classic Key
RKE
Passive Keyless
Entry/Go
PKE
2-3x
2x
1x
1x
System Value:
$5/car
~$7/car
2-way RF
incl. 2-way RF
~$10-13/car
- 2-way long range keys

- NFC enabled keys
#1 in Car Access Leadership Products

NCF2960 Industrys Smallest
One-Chip Car-Key
Immobilizer, keyless entry, AES security, 16bit
MCU
Full one-chip integration
Volume ramp in 2013 with leading EU car maker
NCF2983 Multi Channel 2-way

RF Transceiver
2-way communication
Multi channel simultaneous low power reception
Volume ramp 2013 Japanese car maker
#1 in In-Vehicle Networking Growth Strategy

SAM/Car
In-Vehicle Networking
Infotainment
Camera
Ethernet
100 Mbit/s
Emerging
Isolation
10 Mbit/s
Chassis
Partial Networking
NXP #1
FlexRay
1 Mbit/s
CAN/LIN
Drivetrain
NXP #1
20 kbit/s
Time
Body
NXP #1
30
20
Drive share and value in CAN/LIN

Lead emerging FlexRay
10
0
2008
2010
2012
2014
2016
2018
Total Market [Nodes/ Car]
On average, every new car

contains 8 NXP IVN-chips
- BMW, Audi, VW, Daimler
Seed ethernet OPEN Alliance
SAM/Car
Emerging Business
Emerging Business
Automotive LED lighting

- 1-channel driver for bulb
replacement (Launch Q1 2013)
Car-2-X
- Multi-channel drivers for

complete LED front-lighting module
- Design win with top global Tier1
LED Lighting
Telematics
Time
Telematics
- Secure location based service
- Designed In at leading OEMs
- >1500 cars in field trials globally
Car-2-X Communication
- Secure software defined radio
- 1st SoP at OEMs 2015/16
- >2500 cars in trials with leading OEMs
Automotive Sustainable Competitive Advantage
Technology
Trusted
Partner
Leading, in-house
Mixed-Signal
- High voltage/temperature
Automotive quality &

customer service
World class RF-CMOS

- High integration/
low power
Competent, motivated
and engaged workforce
Global supply-chain
Solutions
NXP connects the car
- Car entertainment
- Car access
- In-vehicle networks
- Telematics & Car-2-X
Unique application &
system expertise
NXP Connects the Car
Q&A
Infrastructure & Industrial

Z
Alexander Everke
Infrastructure & Industrial Business Unit
Leading RF and Power Process Technology

and System Know-How
RF Front-End
System
Know-How
Base Station
Product
Businesses
RF
Power
Amp
Proprietary
Process
Technologies
LDMOS
7/8
AC-DC Power Conversion
Broadcast
Broadband
RF
Small
Signal
RF
Transceiver
Power Adaptor
Lighting
Power
Adaptors
Lighting
Drivers
SiGe:C BiCMOS
0.14 0.25 m
High Voltage SOI
0.18 0.8 m
Supply chain:
In-house 8 Fabs
and Back-end
SSMC Singapore (JV TSMC)
ICN8, Nijmegen, NL
Back-end: APP,
APB, APK
Infrastructure & Industrial Market Opportunities

Mature
RF
Transceivers
Core
High Performance RF
Emerging
Power & Lighting Solutions
Emerging
Business
Power
Amplifier
Small
Signal
Power
Adapters
Lighting
Drivers
$0.51B
$0.93B
$1.10B
$0.62B
$0.18B
$1.35B
Market Growth Rate2
2%
4%
6%
5%
19%
14%
Market Share3
24%
23%
11%
8%
16%
3%
#1
#2
#3
#4
#1
N/A
Market Size1
NXP Rank4
Key Products
Silicon Tuners
TL/HID drivers
BST ICs
AC/DC
Controllers
CFL drivers
Smart Audio
Amplifier
Building
blocks
AC/DC
Regulators
LED drivers
Healthcare
BST PA &
MMIC
LNA, VGA
Broadcast PA
A&D PA
Low power RF
IPCAM
Key Competitors
MXL
SLAB
RDA
FSL
IFX
ADI
TXN
SWKS
HITT
ONNN
STM
FCS
POWI
POWI
iWatt
TXN
FCS
TXN
WLF
SLAB
STM
Key Customers
Source:
(3) Market share based on NXP CMI internal research versus applicable peers for 2011; (4) NXP rank based on NXP CMI research in 2011
Mega Trends Shaping Infrastructure & Industrial

Key Opportunities
Increasing cost of energy and
CO2 footprint regulations
GreenChipTM power adaptors

LED general lighting
Remote energy management
Connected Devices
3G/4G base station RF ICs
10-fold growth in mobile data

traffic 2012-15, Internet of Things
Mobile WLAN LNAs
Energy Efficiency
Health
Aging population and increasing
health care cost
Smart Lighting / Internet of Things
Wireless hearing aids / implantables

Wireless compliance monitoring
HPRF Strategy to Outgrow the Market1,2

Key Growth Drivers
HPRF Market Grows at 4% CAGR

$ Million
1.98
1.13
CAGR
12-15
2.03
1.91
1.10
0.39
0.42
0.47
0.50
2010
'11
1.07
1.98
1.08
2.05
1.11
2.13 Total
1.15 RF Small
Signal
0.37
0.39
0.41
RF PA
0.42 Microwave/
Broadband
0.47
0.50
0.53
0.56 RF PA
'12
'13
Base Station
'14
4%
6%
5%
RF PA: Capitalize on
leading market share in
3G/4G base stations
RF SS: Attack adjacent
GaAs market with our
next generation SiGe
Capture multimarket
opportunities through
specialty distributors
2%
2015
Source:
(1) Market size based on NXP CMI internal research; (2) Market growth rate is 3-yr. CAGR based on NXP CMI research for 2012 2015
RF PA: Capitalize on Leading Market Share in

3G/4G Base Stations
RF Power Market for Base Stations ($M)
600
4G
500
NXP MS 50%+
400
40 /50%+ DesignWin share in new

3G/4G platforms
3G
300
NXP MS ~40%+
200
2.5X market share

growth 20082011, and
continuing
2G
100
NXP MS ~15%
0
2010
'11
'12
Non-2G market
CAGR 15% for
201215
'13
Source: Market size based on NXP CMI internal research of applicable peers for 2011
'14
2015
RF SS: Attack Adjacent GaAs Market with our

Next Generation SiGe
LDMOS
SiGe intrinsically lower cost

than GaAs (4-8x)
Military & /Aero
GaN
GaAs
Comms
infra apps
8 vs. 4/6, substrate

cost, integration
High
BiCMOS
RF performance SiGe now

as good as GaAs
Medium
SiGe:C BiCMOS
Low
Performance/Output Power
Very high
HPRF Process Technology Landscape
Consumer Satellite/
Auto applications
Handset
applications
First target 0.6B$ of 2.6B$

fragmented GaAs market
Base stations, WLAN/GPS
LNAs
RF-CMOS
65/45/32 nm
10
30
Frequency(GHz)
Source: Strategy Analytics
Mobile Devices and Wireless Infrastructure

Provide Leverage into Adjacent Markets
Wireless Infra
RF Small Signal
LNAs
VGAs
VCOs
RF Power Amplifiers
Mixers
Modulators
Power Transistors
MMICs
Industrial
Scientific
Medical
Shaper
applications
Multi-Market Portfolio
Re-use
Aerospace
& Defense
Discretes
Mobile
Portable LNAs
RF Small Signal
Range Extenders
Power Adaptors Growth Mainly Driven by

New Low-Power Charger Business1,2
Addressed Power Adapter Market CAGR 10%
CAGR
12-15
$ Million
612
200
201
615
641
668
701
130
748
Total
112
High-Power
(12%)
(Not Addressed)
386
Low Power
12%
Medium / High
Power
5%
5%
144
182
242
162
275
314
167
178
184
198
2010
'11
'12
'13
356
207
220
'14
2015
Key Growth Drivers

Maintain/grow
#1 position in
high/medium
power controllers
Establish new
position in lowpower chargers
Source:
Maintain/Grow #1 Position in High/Medium Power

Controllers Based on Two Key Differentiators
System Architecture: GreenChipTM
delivers leading efficiency & cost
Power efficiency up to 94%
Power density up to 20W/inch3
Enables small form factors
Minimal stand-by power
Dimming capability in
lighting applications
Process Technology: High-Voltage SOI

advantages vs. foundry HV BCD
Lowest total system cost
Lowest switch losses in lateral process
High-temperature reliability and ease of
design
Ruggedness thanks to full oxide

isolation
Also leveraging these differentiators into

low-power adaptors and LED drivers
Establish New Position in Low-Power Chargers
Highest level of
BoM integration &
small form factor
Leading power efficiency

at all load levels
100%
Estimated NXP revenue

mix 2012-15
4%
Low
Power
41%
Power efficiency
90%
80%
Mid/
High
Power
Industry
Benchmark
70%
96%
59%
The most
innovative platform
coming out of NXP
Power yet
60%
50%
200
400
600
800
Load (mW)
1000
1200
2012
2015
LED General Lighting Penetration Increasing Steeply

LED Penetration % Per Application
92
100
77
80
60
47
40
20
0
Backlighting
General Lighting
15
12
17
Auto Lighting
13
2010
2011
2012
35
2013
2014
2015
LED Bulb Retail Price ($)

70
60
40
60W LED
40
40
30
40W LED
20
20
10
100W CFL
20
10
10
5
0
2010
2011
2012
Regulation on energy conservation

and CO2 abatement driving
adoption
Next is steep cost reductions for
LED bulbs (~30% per year) versus
CFL
60
50
General lighting fastest growing

opportunity for high-brightness
LED drivers
2013
2014
Source: McKinsey Lighting the Way (2012), NXP CMI Research
7
3.5
2015
General Lighting Growth Strategy1,2

Lighting Driver Market Grows at 19% CAGR
$ Million
CAGR
12-15
404
Key Growth Drivers

343
292
275
241
LED
32%
Leverage Strong Customer

Base in Conventional Lighting
(15 year heritage)
218
183
146
Grow #1 position in LED with

lowest cost solutions
171
120
74
47
72
82
94
91
90
88
28
26
27
30
35
41
2010 '11
'12
'13
'14 2015
Conv.
(2%)
CFL
14%
Lead creation of Smart

Lighting category
Source:
Grow #1 Position in LED with Lowest Cost Solutions

70% BoM Part-count Reduction for Dimmable Controls
Possible Due to Proprietary SOI Process
Current isolated BoM
54 Pieces
Top
Bottom
Non-isolated BoM
41 Pieces
>3x reduction
Top
Bottom
LED direct to
Mains BoM
15 Pieces
Top
Bottom
Lead Creation of Smart Lighting Category

Smart LED Lighting = Potential for
25% Home Energy Savings
Very Attractive User Experience =
Convenience, Safety, Ease of
Installation
Large Semiconductor Opportunity
(>12B bulbs sold per year)
Smart Lighting is cornerstone of
broader Internet-of-Things strategy
Strong Growth Opportunity in Our Core Business

and More to Come
High Performance RF: Grow Market Share
Highest design-win share in fastest growing LTE market
Expanding SS RF serviceable market by attacking GaAs market with SiGe
Selling our base station and mobile portfolio into adjacent markets
Power & Lighting: Win in High Growth Market Segments

Leverage technology and expertise to capture high growth low-power
adaptor market
Expand leadership in LED drivers in general lighting
Shape emerging smart lighting application
Emerging Businesses: Capture New Growth Opportunities in

Mobile Audio, Healthcare and Internet of Things
Q&A
Break
Portable
& Computing
This Evenings
Agenda
Dave
French Mnchen
Oktoberfest
Executive
Vice 8:00
President
Departure:
PM
Portable & Computing Business Unit
We are in the intelligent, connected device business

Enabling the rapid creation of programmable systems
Z
Thank You
www.nxp.com
NXP is the trusted partner in high performance,

embedded MCUs and Interconnected ICs from broad
market success to focused solutions in mobile
Portable & Computing Market Opportunities

Core
Emerging
Interface Products
MCU
Logic
Mobility
$2.1B
$3B
$1.5B
$5B
Market Growth Rate2
4%
4%
2%
10%
Market Share3
11%
7%
22%
0%
#1
I2C, Multiprotocol
#11
MCU
#1 Volume, Auto,
Mobile
N/A
Market Size1
NXP Rank4
Key Products
Key Competitors
Auto Display Drivers

Display Port
Thunderbolt
GPIO
UART
Level Shifters
TXN
ADI
STM
Industrial Control
Building Automation
Consumer
STM
FSL
Renesas
Voltage Translators
Data Mux
Logic Gates
TXN
ON
Smart Power
High Speed
Smart Switches
Connector Hub
Sensor Hub
TXN
STM
MXIM
Key Customers
Source:
Mega Trends Driving Portable & Computing
Energy Efficiency
Embedded MCU optimizing power usage

Integrating connector data/power
Connected Devices
Multiple protocols, multispeed interfaces

Elegant connectors, easy plug and play
Security
Device identity based power/data switching

Secure interfaces
Medical
Intelligent, diagnostics devices

Easy to connect, home medical devices
54
Internet of Things Drives Connectivity Standards

Car
Number of Connected
Devices (B Units)
2550
Industrials
Things
Consumer
Electronics
912
PC
~1
PCs
2000
2005
2010
2015
Early
2000s
Mobile
Smartphones/
Gaming
Consoles
2011
2020
Source: WSTS (extrapolated after 2011), Cisco, Machina Research / GSMA

Note: connected devices = Connections to remote sensing, monitoring and actuating devices, together with associated aggregation devices
~35%
Consumer
Electronics
~30%
Buildings
~10%
Utilities/
Energy
~10%
Automotive
~5%
Healthcare
~10%
Other
2020
Internet of Things
Connections
Intelligent Device Capabilities Converge in Mobile

Computing/Industrial
Smaller Chipset
22nm
Higher
Integration
Mobile Convergence
PC becomes mobile, phones
become full PCs
- Tablet & Ultra books for PC mobility
Portable/Mobile
Low Power
Smaller Chipset
28nm
Higher
Integration
- Docking for full PC experience of phone
Same connectivity used

in phones & PCs
Energy
Saving
Data Rate Increase

825Gbps
- Interfaces: USB, I2C, SD, HDMI

- Legacy IO support issue in PC &
phone
More
LED
Small &
Low Power
More
Sensors
Portable & Computing Three Product Lines
Logic
Core: Automotive,
PC, CE
Growth: Mobility
Mobile leadership;
proprietary mixed
voltage processes
Interface
Products
Core:
I2C, USB, Thunderbolt,
PC market
Growth: Mobility,
high speed switches
Low power, >20GHz
mixed data/power
MCU
Core: White Goods,
industrial, CE
Growth: Mobility,
secure processing
32-bit ARM; rich
analog I/O portfolio
Broad Core Business with Emerging Growth in Mobile
Communication
12%
Automotive
9%
Computing
11%
Electronic
Mkt Serv
7%
Consumer
31%
Industrial
30%
Reference year % of Sales: 2011
2011 Revenue Total:
$660M
Automotive
$61M
Consumer
$204M
Industrial
$196M
Electronic Mkt Serv
$48M
Computing
$70M
Communication
$81M
Logic Products: Customer Engagement Foundation1

Market Share in Volume (B units)
Market Share in Value ($B)

30%
20%
29%
19%
18%
25%
16%
13%
14%
20%
17%
12%
0.24
0.19
0.25
0.24
0.19
0.27
0.27
15%
2005
2006
WW GPL
2007
2008
WW NXP GPL
2009
2010
2011
NXP Unit Share (%)
NXP Logic #1 in units worldwide.

#1 and fastest growth in Mobility
NXP Logic #1 in Automotive establishing

automotive class quality
Source:
(1) WSTS Global Semiconductor June 2012 and NXP CMI internal research
10%
2005
2006
WW GPL
2007
2008
WW NXP GPL
2009
2010
20011
NXP Revenue Share (%)
NXP shipped 5.2 B units in 2011

7th year of continuous market share gains
as of 2011
Interface Products Show Analog Business Model1,2

Interface Market (SAM $M)
754
446
701
428
711
455
722
502
Interface Market (CAGR)
749
777
543
586
1006
1037
High Speed Interface (HIS)
8%
System Management (SM)
4%
Clocks, Watches, Graphics (CWG)
3%
HSI (High Speed Interface)

High-speed analog switches: multi-protocol
SM (System Management)
956
900
929
975
I2C enabled ASSP (GPIO, temp sensors,

LED controllers)
CWG (Clocks, Watches, Graphics)

High Speed Interface
System Management
CWG
LCD segment drivers; real time clocks

Precision circuits
Source:
Differentiation Supporting Diverse Base of Protocols

20 Gbps
Speed
Thunderbolt Switches
10 Gbps
PCIe Switches
5 Gbps
DisplayPort Switches & Adapters

mSATA, USB Switches,
USB3 Redrivers
Pre-2008
2009
2010
2011
2012
2013
2014
2015
Long Product Life in Fragmented Interface Segment

20 Gbps
Speed
20G+
10G
10 Gbps
Data,
Video, Power
over one
connector
8G
5.4G
5 Gbps
5G
3.4G
2.7G
Pre-2008
2009
2010
2011
2012
2013
2014
2015
MCU Market Transition to 32bit ARM Solutions

1,600
MOS MCU Market Monthly Sales ($B)1
1,400
1,200
1,000
800
600
400
200
Jan-97
8-bit
Jan-99
16-bit
Jan-01
32-bit
Jan-03
Jan-05
Jan-07
Jan-09
Jan-11
MCU
2012 (ytd) Total MCU Market
$6.07B
- 6.6%
vs. $6.5B (11)
2012 (ytd) 8-bit MCU Market
$1.62B
- 14.2%
26.7% of Total; Units: - 7.0%
2012 (ytd) 32-bit MCU Market
$2.85B
+ 0.7%
46.9% of Total; Units: + 23%
Source: 1. WSTS Global Semiconductor June 2012
NXP Positioned for Growth in 32bit ARM

2011 TAM: $16B
ARM Open
Ecosystem
Propriety Core &

Closed Ecosystem
8-bit/16-bit Architectures
32-bit, Multicore Architectures
Industrial Control
Portfolio
Portfolio
Differentiating Leading Cores with Diverse I/O

8/16-bit Mass Market Replacement
Integrated EEPROM
Analog sub-system
Low-pin-count packages
Configurable timer system

LCD Graphics control
Connectivity: USB, CAN
Connectivity: USB, Ethernet, CAN
Low active current @ 100 uAmp/MHz
Scalable base platforms: Cortex-M0, M3, M4
Scalable base platforms: Cortex-M0
Portable
Time
Portfolio
Portfolio
Time
1.8V supply voltage

USB-Audio Streaming
Low-cost USB
Building Automation
LCD Graphics
Digital signal processing

Connectivity: Ethernet, USB, CAN
Form factor (WLCSP, TFBGA)

Scalable base platforms: Cortex-M0, M3
Time
Low active current @ 100 uAmp/MHz

Scalable base platforms: Cortex-M0, M3, M4
Time
Energy Efficiency Demands Distributed Controllers
Sensor Hub System

External Input
IR
Sensor
SPI
I2 C
External Input
Gyro
SPI
I2 C
or
External Input
Accelero
Meter
SPI
I2 C
USB
or SPI
External Input
Magneto
Sensor
SPI
I2 C
External Input
Temp
Sensor
SPI
I2 C
I 2C
Cortex-A
Application
Processor
For Mobile
X86
CPU for
Industrial/
Computing
LPC1100LV
1.8V Cortex-M0 MCU, CSP
LPC11U00
128KB Flash CM0 MCU, CSP
NXP MCU Applications in Smart Phones & Tablets

Auto Focus
Haptics
- Partner with camera module vendors
- Partner with Haptics vendors
- Actuation control for image

stabilization in camera modules
- MCU drives PWM for voltage control
Sensor Hub
Touchscreen
- Digital processing for analog sensor

and MEMS in a smartphone or tablet
- Digital MCU for touchscreen algorithm
- Reduces A/P load and system power
- CSP package option, SPI and I2C interface

- Full-speed USB option with LPM mode
Portable & Computing Sustainable Competitive Advantage
Logic
Interface
Products
MCU
#1 volume; deep
portfolio supplier
Analog business
model
Multicore, rich
connectivity
Foundation for
relationships
>20GHz switching
performance
Moving towards ASSP
Automotive quality
Low power
data/power designs
Mobile leadership
Ultra efficient power

management for
distributed controllers
Q&A
Identification
Z
Ruediger Stroh
Identification Business Unit
NXP is in the trust business

enabling convenience & security
in an increasingly networked world
Authenticating Identities
Securing Transactions
Identification Market Opportunities

Core
Emerging
eGovernment, Payment, Smart

Mobility, Tagging, Infrastructure
Market Size1
Mobile Transactions (excl. BulkSIM), Authentication
$1.47B
$0.36B
Market Growth Rate2
12%
37%
Market Share3
44%
12%
#1
#1 in Mobile, entering Authentication
NXP Rank4
Key Products
End to end system solutions

Secure Microcontrollers for Contact
& Contactless applications
Secure software
Packaging & antenna solutions
Key Competitors
IFX
Renesas
End to end system solutions

NFC Radio and Secure Elements for
embedded, SWP-SIM and microSD
Secure software
Packaging & antenna solutions
SSG
BRCM
STM
INSD
Key Customers
Source:
Identification is a Growth Market1,2

5,000
CAGR
15%
ID Market (M$)
CAGR
12-15
4,500
Authentication 50%
Mobile
24%
Emerging
Infrastructure
Tagging
eGov
Pay TV
Banking
Transit
Core
4,000
3,500
3,000
2,500
2,000
1,500
16%
30%
12%
1%
10%
7%
1,000
500
Bulk SIM (-3.0%)
2010
2011
2012
2013
2014
2015
Source:
Mega Trends Driving Sustainable Growth

Digitization of Documents
Urbanization & Smart Cities
25,600 miles* (>Earth

circumference)
50%
in urban centers
67%
in urban centers
* Assumes 1/4 thick passport stacked
Banking System Security
150M
Sources: Population Reference Bureau, United Nations
Smart Phone Adoption
0.3B
China, India, and

Brazil in top five
for smartphone
shipments
by 2016
1,037M
1B+
Shipments of
EMVco chip cards
Source: Schlumberger, Smart Payment Association
Source: Gartner (Oct 2011)
Identification Sustainable Competitive Advantage
Security
Contactless
Performance
Complete
Solutions
Deep Expertise in Security Technology

Tamper Resistant Circuits
The Security Cube
Hardened Silicon
Software Resistant
to Fault Injection
1000+ Engineers and >700 Related Patents
World-Class Contactless Performance

Fastest e-Passport Transaction Time
2x Operating Distance, 1/3 Antenna Size
Operating Distance
4G NFC: NXP PN547

3G NFC: NXP PN544
2x Performance
1/3 Footprint
1G NFC: Competition
>$0.50
Cost Savings
Antenna Cost/Footprint
Source: NXP
90% of Contactless POS Rely on NXP
Source: NXP
Source: NXP
MIFARE is the Industrys Choice
Source: NXP,
www.MIFARE.net
Complete Solutions Deliver Long Term Growth

NXP = Governments Trusted Partner
China Ministry
of Public Security
Contactless
Intelligence
Smart Card
Middle East
Over 1B
certified secure
micro controller
delivered to
citizens
Trusted by
86 out of 102
governments
for their
ePassports
90% of the
ecosystem
players have
qualified NXP
solution
Emerging Markets Are Our Next Growth Engine
Mobile
Anti-counterfeiting
Cyber-security
NFC Enables a Richer and Secure Consumer

Experience with Mobile
Mobile Apps
Loyalty
NFC
Radio
Payment
Secure
Element
NFC
Tag
Couponing
Presence
Based
Services
We Secure Complete Mobile Transactions Solutions
Host SW
NFC Radio
NFC Antenna
SE, Trusted Middleware, NFC Radio

driving Optimized Antenna
Secure Element
Secure OS
Anti-Counterfeit and Cyber Security Offer New

Growth Opportunities in Authentication
Anti-Counterfeit
Electronic
Accessories
Computing
Add-on
Cyber Security
High Value
Disposables
Industrial
Control
SmartGrid
Cloud
Computing
Brand Protection Networking
Benefit
Trusted
Contract Manufacturing on NET
Market Driver
Critical Services
Anti-Cloning Device
NXP Solution
Trusted
Global Leader in Authenticating Identities,

Securing Transactions and Convenient Interactions
eGovernment
Banking
Mobile Transactions
Anti-Counterfeit
Smart Mobility
Core
Cyber Security
Emerging
Q&A
NXP Semiconductors
Z
Peter Kelly
Chief Financial Officer
3Q12 Guidance Update

Original
Guidance
Revised
Guidance
Product Revenue
6 12%
8 10%
Total Revenue
4 10%
6 8%
$0.50 - $0.62
$0.53 - $0.59
Non-GAAP EPS
No other changes to original guidance

We anticipate reporting 3Q12 results on October 25, 2012,
before the market opens.
Overview
Performance So Far
Our Financial Model
Our Capital Structure
Roadmap to Exceptional Earnings

Phase III
Phase II
Phase I
Create Independent Company

- Separate from Philips
- Refocus on HPMS from SoC
2007
2009
2011
2013
2015

Phase III
Phase II
Create Profitable Growth

-
Phase I
Restructure NXP
Reduce debt
Improve margin
Lower break-even
- Develop world class team

- IPO
- Invest for product growth

2007
2009
2011
2013
2015

Phase III
Accelerate Profitable Growth

-
Phase II
Consistently outgrow market

Improved profitability
Strong free cash flow
Investment grade capital structure
Create Profitable Growth

-
Phase I
Restructure NXP
Reduce debt
Improve margin
Lower break-even
- Develop world class team

- IPO
- Invest for product growth

2007
2009
2011
2013
2015
Financial Performance Revenue
HPMS Revenue
1.2x
1.12
1.1x
0.99
1.0x
1.00
$2,953
$2,898
$2,598
0.9x
0.8x
0.7x
0.6x
3Q09-2Q10
3Q10-2Q11
Normalized HPMS
Peer Growth (right)
NXP HPMS
Revenue
3Q11-2Q12
NXP HPMS Normalized

Growth (right)
Total Revenue
1.2x
1.00
$4,255
1.12
1.1x
1.00
1.0x
0.9x
$4,494
$4,063
0.8x
0.7x
0.6x
3Q09-2Q10
NXP Total Revenue
3Q10-2Q11
Normalized Peer
Revenue Growth (right)
3Q11-2Q12
NXP Product Revenue

Normalized (right)
1. Based on trailing-twelve month revenue. Normalized NXP revenue growth, versus normalized, market-capitalization weighted index of Peers
Financial Performance Operating Profit
HPMS Operating Profit

Target 24 29%
30%
25%
20%
674
559
429
15%
10%
5%
3Q09-2Q10
3Q10-2Q11
3Q11-2Q12
Operating Margin (right)
HPMS Operating Profit
Total Operating Profit

30%
Target 23 28%
25%
20%
845
703
15%
383
10%
5%
3Q09-2Q10
3Q10-2Q11
Total Operating Profit

1. Based on trailing twelve month revenue, non-GAAP operating profit and non-GAAP operating margin
Operating Margin (right)
3Q11-2Q12
Model Performance Gross Margin Next Steps

HPMS Gross Margin
64%
Target 58 -63%
62%
60%
58%
58%
56%
54%
55%
52%
53.3%
51.6%
50%
1Q12
2Q12
Next Step (1)
Next Step (2)
Target 52 56%
Total Gross Margin
56%
>53%
54%
52%
50%
>50%
48%
46%
46.2%
44%
44.3%
42%
1Q12
1. NXP non-GAAP gross margin for 1Q 12 and 2Q 12
2Q12
Next Step (1)
Next Step (2)
Model Performance Operating Margin Next Steps

HPMS Operating Margin
Target 24 29%
30%
28%
27%
25%
26%
24%
21.9%
22%
20%
18%
16%
17.3%
1Q12
2Q12
Next Step (1)
Next Step (2)
Target 23 28%
Total Operating Margin
28%
27%
26%
25%
24%
22%
20%
18.6%
18%
16%
14.4%
14%
1Q12
1. NXP non-GAAP operating margin for 1Q 12 and 2Q 12
2Q12
Next Step (1)
Next Step (2)
Opportunities for Operating Margin Expansion
28%
Target 23 28%
~27%
26%
~25%
24%
22%
20%
18.6%
18%
2Q12
1. NXP non-GAAP operating margin for 2Q 12
Next Step (1)
Next Step (2)
28%
Target 23 28%
~27%
26%
~25%
24%
22%
Gross Margin Opportunities

- Leverage internal cost structures
- Cost redn 3rd party relationships
Gross Margin Headwinds
- Mix large mobile design wins
- Transition to foundry (Short term)
20%
Operating Expense
- Continue to leverage existing base
- Move funding from G&A to R&D
18.6%
18%
2Q12
Next Step (1)
Next Step (2)
28%
Target 23 28%
~27%
26%
~25%
- Design for 3rd party and lever scale

- Value based pricing improvements
- Continue cost reduction
24%
- Monetization of IP portfolio
22%

- Leverage internal cost structures
- Cost redn 3rd party relationships
Gross Margin Headwinds
- Mix large mobile design wins
- Transition to foundry (Short term)
20%
Operating Expense
- Continue to leverage existing base
- Move funding from G&A to R&D
18.6%
18%
2Q12
Next Step (1)
Next Step (2)
Actions NXP is Focused On

Driving Profitable Growth
- Growing faster than the market
- Improving our gross margins
- Managing our operating expenses.
Generating Cash
-
Lower interest expense

Maintain minimal cash tax expense
Constrain CAPEX
Restructuring largely complete
We continue to demonstrate our ability to lever our Operating Margin

but clearly we have more to do
Translates to $100 to $200m of Potential Debt

Reduction per Quarter1
TTM June 12
Revenue ($M)
Operating Profit
Operating Margin
Depreciation
EBITDA
Current
Opportunity
4,063
703
17%
271
974
4,500
900
20%
250
1,150
Capex
Interest
Working Capital
Cash taxes
SSMC Dividend out
Restructuring
199
293
153
16
39
76
250
240
60
50
40
50
Cash Flow Available
198
460
Net Debt / TTM EBITDA
3.1x
2.2x
1. NXP non-GAAP financial estimates

TTM June 12
Revenue ($M)
Operating Profit
Operating Margin
Depreciation
EBITDA
Current
Opportunity
Grow Revenue
4,063
703
17%
271
974
4,500
900
20%
250
1,150
5,000
1,000
20%
250
1,250
Capex
Interest
Working Capital
Cash taxes
SSMC Dividend out
Restructuring
199
293
153
16
39
76
250
240
60
50
40
50
250
240
120
50
40
50
Cash Flow Available
198
460
500
3.1x
2.2x
2.0x

TTM June 12
Revenue ($M)
Operating Profit
Operating Margin
Depreciation
EBITDA
Current
Opportunity
Grow Revenue
Grow Revenue &

Grow Margin
4,063
703
17%
271
974
4,500
900
20%
250
1,150
5,000
1,000
20%
250
1,250
5,000
1,250
25%
250
1,500
Capex
Interest
Working Capital
Cash taxes
SSMC Dividend out
Restructuring
199
293
153
16
39
76
250
240
60
50
40
50
250
240
120
50
40
50
250
240
120
50
40
50
Cash Flow Available
198
460
500
750
3.1x
2.2x
2.0x
<2x
Capital Structure How We Feel About Our Debt1

Successful Track Record of Focused Cash Usage
-
Reduced debt by $1.24B over trailing 24-months

De-risked entire maturity profile in 4Q11
Recently retired 2013 Super Priority debt
Simultaneously restructured and refocused the business
1,877
1,120
920
922
616
400
474
362
237
2011 2012 2013 2014 2015 2016 2017 2018 2019

Gross Debt - End 2010
2011 2012 2013 2014 2015 2016 2017 2018 2019

Gross Debt - End 4Q12
Debt capital markets overview1,2

NXPs senior secured notes historical performance
NXP 9.75% Sr. Sec. Notes vs. CS High Yield Index
Jul-10
Sep-10
Nov-10
Jan-11
Mar-11
May-11
Jul-11
Sep-11
Nov-11
Jan-12
Mar-12
May-12
Jul-12
Sep-12
NXP 9.75s 9.09%
8.53%
7.88%
6.81%
6.85%
6.06%
6.89%
8.56%
7.77%
6.47%
5.70%
5.73%
4.68%
4.44%
BB Rated
6.40%
5.99%
6.14%
5.75%
5.65%
5.47%
5.57%
6.81%
6.42%
5.57%
5.42%
5.87%
5.17%
4.98%
B Rated
8.16%
7.77%
7.78%
6.98%
7.03%
7.12%
7.33%
9.42%
8.83%
7.60%
7.38%
7.88%
7.09%
6.73%
11.00%
10.00%
(1)
NXP 9.75s
trading slightly
tighter than the
BB rated CS HY
index
NXP 9.75s YTW

approx. 100bps
higher than B
rated CS HY
index
9.00%
8.00%
7.00%
6.00%
5.00%
4.00%
Jul-10 Aug-10 Oct-10 Nov-10 Dec-10 Feb-11 Mar-11 May-11 Jun-11 Jul-11 Sep-11 Oct-11 Dec-11 Feb-12 Jun-12 Jul-12Sep-12
NXP 9.75% Sr. Sec. Notes
BB Rated
B Rated
NXPs 9.75% Secured Notes are trading slightly tighter than the HY BB index
Source:
(1) Credit Suisse; (2) Through September 6, 2012
(1)
Roadmap to Exceptional Earnings1

EPS Leverage
Top line revenue growth faster than peer group
Double digit earnings momentum
Strong cash flow
>$4+
~$4
>$3
TTM '10
$1.73
$1.78
TTM '11
Q2 annualized
$5B @ 22% OM
$5B @ 25% OM
$5B @ 27% OM
Reduced Debt
Q&A
Z
Positioned to Deliver Industry Leading Growth

7,500
NXP HPMS Growth >50% Faster Than Market
$ MM
6,000
Healthcare
4,500
2,011
Mobile
High Speed
Interface
Cyber
Security
Internet
of Things
Car 2 - X
NFC
3,000
HPRF
>1.5x
Industry Growth
AUTO
1,500
HPMS
Solutions
2010
CORE Product Revenue
EMERGING Product Revenue
NXP Semiconductors
Z
Thank You

NXP 2012 Analyst Day Final

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Disclaimer and Forward Looking Statement

Disclaimer and Forward Looking Statement - cont

Introduction Rick Clemmer, Chief Executive Officer

Automotive Kurt Sievers, EVP and General Manager

Infrastructure & Industrial Alexander Everke, EVP and General Manager

Infrastructure & Industrial Q & A

Portable & Computing Dave French, EVP and General Manager

Portable & Computing Q & A

Identification Ruediger Stroh, EVP and General Manager

Financial Update Peter Kelly. Chief Financial Officer

Close Rick Clemmer, Chief Executive Officer

Focused on high growth application segments fueled by key mega-trends

Leverage unique HPMS capabilities to power new product engine

Multiple growth drivers across a range of target applications

Margin expansion into long-term model

Capital structure de-leveraging

Focused on Growth from Key Mega Trends

High-Performance Mixed-Signal Solutions

Highest Growth Segments in 8 Priority Application Areas

81. Represents estimated market size of the sectors shown

Product Engine Tuned to HPMS Capabilities

Source: Patent data from annual filings and company websites

Continued Focus on the HPMS Market

Large, Fast Growing

and is Attractive Due to

High barriers to entry

Sticky customer relationships

Long product life cycles

Sustainable and higher margins

HPMS SAM Estimated to Grow 7% 5-yr CAGR

Gross margin expansion slower than anticipated model still valid

Not immune from macro influence

Increased Product Traction1

Cumulative and Approved Design-win Award

Delivered Faster Growth2,3

Net Debt/TTM adj. EBITDA

Competitive HPMS and Standard

NXP Connects the Car

Car to Car, Car to Infrastructure, Car to Portable, Inside the Car

Automotive Market Opportunities

Market Growth Rate2

Semiconductors to Outgrow Car Market

Semi TAM to Outgrow Car Production

(CAGR 2012 2015: 3%)

Average Semi Content Per Car ($)

Sharp Focus on Selected Segments

Automotive BU Focus SAM 6.5% 3-Yr CAGR

2011 TAM $23B

NXP is clear leader in selected Mixed

Mega Trends Shaping Automotive

Hacking prevention for connected cars

Trends Driving the Connected Car

eCall & roadside

Driving Growth in Automotive Connect the Car

Expand SAM in Core

SW Defined Digital Radio

and Add Select

SAM Expansion & Addition of Select Emerging Business

RFCMOS 1-Chip (DSP & Tuner)

Passive Keyless Entry/Go

Remote Keyless Entry

#1 in Car Entertainment Growth Strategy