Vision and Strategy

Foreword by Carlo Bozotti

CHIEF EXECUTIVE OFFICER

 


"In the end, what drives a
corporation to long-term
success is the commitment
of its people, and the strength
of its shared values."

2007 has been a milestone year for ST, as we have celebrated the 20th anniversary of our company, and our sales passed the US$10bn mark for the first time. Compared with the other top ten semiconductor companies worldwide, our growth has been faster, and the evolution of our operating profit has been better than the average of the top ten players in the industry.

Last year we confirmed our position as the world’s number one supplier in power management and in industrial applications. We are also the world leader in set-top box applications, and we are among the world’s top three suppliers in key market segments such as wireless and automotive.

These positive events were overshadowed by a number of macroeconomic challenges that the world is currently facing: recession risks in the US, the turmoil in the global credit markets and the negative impact of the euro-dollar exchange rate, to name a few. In this difficult environment, and amidst fierce competition, we are maintaining our course and we remain vigilant in the deployment of our key strategies:
• increasing our presence in strategic markets;
• developing and re-focusing our product portfolio; and
• improving our operational and financial performance.

We also continue to maintain our intense and long-standing focus on Corporate Responsibility, as we always have since the creation of STMicroelectronics. Creating value for our stakeholders – our definition of Sustainable Excellence – is the core of our values. This report demonstrates how we consistently deploy our programs and shows our results in all aspects of Corporate Responsibility. A few of our remarkable achievements include:
• Our energy consumption per unit has continued to decline and now represents 50% of its 1994 level.
• The deployment of our health plan has been finalized and now offers to each and every ST employee the same access to medical follow-up.
• Over 95% of our employees have been trained in Corporate Responsibility and all our managers have been trained on a specific course on compliance and ethics.
• A Corporate Ethics Committee was established in July 2007, and a Chief Compliance Officer was appointed in December.

Looking forward to 2008 and beyond, I am deeply convinced that STMicroelectronics is implementing the right strategies to maintain and reinforce its leadership position in the semiconductor industry. But strategies lead nowhere without the men and women who will deploy and champion them. In the end, what drives a corporation to long-term success is the commitment of its people, and the strength of its shared values. This is what makes the difference between a group of people and a winning team.

We are a winning team.

Carlo Bozotti
President and CEO of STMicroelectronics

This report has been prepared following the GRI G3 Guidelines. It represents a balanced and reasonable presentation of our organization’s economic, environmental and social performance. And it demonstrates our commitment to the UN Global Compact, to which we have been a signatory since 2000.