Company Presentation

November 2014

NXP Semiconductors

• The electronics industry is being driven by four mega trends that are helping shape our society:

Security, Connectivity, Mobility and Energy Efficiency. Connecting to these trends and enabling Secure

Connections for a Smarter World, NXP Semiconductors (NASDAQ: NXPI) creates solutions for the

Connected Car, Security, Portable & Wearable and the Internet of Things.

• Through our innovations, customers across a wide variety of industries – including automotive,

security, connected devices, lighting, industrial and infrastructure – are able to differentiate their

products through features, cost of ownership and/or time-to-market. With operations in more than 25

countries, NXP posted revenue of $4.82 billion in 2013. Additional information: www.nxp.com

Secure Connections for a Smarter World

Internet of ThingsSecurity Portable & WearableConnected Car

2

Stock

Price

Our Strategy

3.

• Focus on fast-growing markets

• Develop deep understanding of end-

applications and customer needs

• Deliver unique value add solutions

• Increase our relevance to customers

• Achieve growth 50% faster than peers

• Attain RMS >1.5x nearest competitor

• Focus on outstanding execution

3

Leveraging Secular Trends and Unique Capabilities

4

Source: (1) Market size, historic and future growth rates based on NXP CMI internal research of applicable peers; all growth rates are 3-year CAGR

Security

Connectivity

Mobility

Energy efficiency

Large with long life cycles

Growth in excess of overall market

Broad and diverse customer base

High barrier to entry

“Sticky” customer relationships

Strong IP and patent portfolio position

Broad mixed signal product portfolio

Differentiated process technology

Acknowledged leadership capability in

Low-power RF; cryptography; Mixed-signal MCU system design

Secular Trends and Demands Driving Growth

NXP Competitive Advantages

Characteristics of HPMS Focused Markets

Potential Future Market Growth ($M)(1)

Addressable Market Growth ($M)(1)

4% Y-Y

$24.943 $25.242 $24.802 $25.892

2010 2011 2012 2013

1%

CAGR

$24.802 $25.892 $27.504 $29.786

2012 2013 2014E 2015E

6%

CAGR

Research & Development Key enabler of Secure Connections for a Smarter World

Car-to-X Communication

with Senseg haptic feedback technology

Smart Lighting Control“RF Cooking”

Approx $640M/year in R&D

3,300 engineers at 21 locations

~8,900 issued and pending patents

World-class competences in all Analog and Mixed-Signal

technology domains

Collaborative R&D practice with customers, suppliers,

universities and institutes

Active in over 80 standardization bodies & consortia

“Feeling” Your Touch Screen R&D in a Nutshell

5

Connected Car

Car entertainment

In-vehicle networking

Secure car access

Secure V2X communications

Radar

Internet of ThingsSecurity Portable & Wearable

Strong Innovation Track RecordOur Innovative Solutions Are Used In a Wide Range of Applications

6

Smart home & buildings

Smart cities – smart grid

M2M – Industry 4.0

Intelligent Logistics

Mobile audio

High-speed Interfaces

Gaming

Personal health & fitness

Healthcare

Mobile transactions

E-Government

Smart bank cards

User authentication

Embedded security

Results Reflect Execution to Strategic Plan

7

Source: (1) Market size, historic and future growth rates based on NXP CMI internal research of applicable peers; all growth rates are 3-year CAGR

Strong Product Revenue Growth Driven

by Company Specific Design Opportunities

World-class Earnings Growth Driven by Revenue Growth,

Improving Margin and Reduced Leverage

Leading to Consistent Revenue Growth

in Excess of Peers (1)

$3.729 $3.869 $4.144 $4.678

2010 2011 2012 2013

8%

CAGR

1,5

1,0

0,5

1,0

1,5

Q111 Q411 Q312 Q213 Q114

NXP HPMS Revenue HPMS Peers Agg. Rev

$1,37 $1,80 $1,88 $3,29

2010 2011 2012 2013

34%

CAGR

Focused on High Relative Market Share (RMS)2013 Product Revenue = $4.7B, up 13% Y-Y

8

Market Leader (RMS>1.5);

37%

Strong Competitor (RMS<>1.5-

1.0); 28%

Competitive (RMS <>1.0-

0.5); 21%

Focused Contender (RMS <0.5);

14%Identification; $1.297 ; 28%

Automotive; $1.019 ; 22%

Infrastructure & Industrial; $729 ; 16%

Portable & Computing; $488 ; 10%

Standard Products;

$1.145 ; 24%

Note:

1. As of 1Q13, product classification for HPMS end markets “Infrastructure & Industrial” and “Portable & Computing” in addition to segment “Standard Products” have been redefined to reflect

underlying market dynamics, product complexity and organizational management. Prior periods have been realigned to conform with new end market definitions. Non-GAAP amounts exclude

stock-based compensation

Segment Contribution(1)

($M) Overall Relative Market Share (RMS)

Fueling Industry Leading GrowthNXP HPMS Growth at Least 50% Faster Than Market

9

-

1.500

3.000

4.500

6.000

7.500

$MM

>1.5x

Industry

Growth

CORE Product Revenue EMERGING Product Revenue

Internet

of Things

2010

NFC

Cyber

Security

Car-2-X

HPRF

HPMS

Solutions

Auto

Healthcare

Mobile

High Speed

Interface

Customers

Financials Stock Price

2010 2011 2012 2013

EES3.6

3.7

3.94.0

2010 2011 2012 2013

EBIT

$706M$833M $834M

$1,120M

2010 2011 2012 2013

NPS5%

18%

26% 26%

2010 2011 2012 2013

Stock

Price

$46

$15$21

A Success Story

10

Employees

$26

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Contact us for more information

@nxp /nxpsemiconductors/nxpsemi

/nxpsemiconductorsblog.nxp.com our campaigns: www.nxp.com/campaigns

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