Second quarter net revenues of $1.92 billion; up 5.6% sequentially and 12.9% year-over-year

Capital structure in July 2017 strengthened with $1.5 billion convertible bond financing

On April 27, ST announced the appointment of Jean-Marc Chery as Deputy CEO, effective July 1, 2017 upon shareholder approval of the reappointment of Carlo Bozotti as the sole member of the Managing Board and President and CEO of ST at the Company’s June 20, 2017 Annual General Meeting of Shareholders. In his new role, Chery holds overall responsibility for Technology and Manufacturing as well as for Sales and Marketing and continues to report to Carlo Bozotti. Also effective July 1, ST has begun operating under a new organization and the Executive Team is now composed of:

Jean-Marc Chery, Deputy CEO

Orio Bellezza, President, Global Technology and Manufacturing

Marco Cassis, President, Global Sales and Marketing

Claude Dardanne, President, Microcontrollers and Digital ICs Group

Carlo Ferro, Chief Financial Officer and President, Finance, Legal, Infrastructure and Services

Marco Monti, President, Automotive and Discrete Group

Georges Penalver, Chief Strategy Officer and President, Strategy, Communication, Human Resources and Quality

Benedetto Vigna, President, Analog, MEMS and Sensors Group.

On May 24, ST announced the publication of the Company’s 2017 Sustainability Report. The report contains details and highlights of ST’s sustainability strategy and its 2016 performance, in alignment with the United Nations Global Compact Ten Principles and Sustainable Development Goals.

On June 20, ST announced that all the resolutions were approved at the Company’s Annual General Meeting of Shareholders (AGM). The main resolutions approved by the shareholders were:

The adoption of the Company’s Statutory Annual Accounts for the year ended December 31, 2016, prepared in accordance with International Financial Reporting Standards (IFRS);

The distribution of a cash dividend of US$0.24 per outstanding share of the Company’s common stock, to be distributed in quarterly installments of US$0.06 in each of the second, third and fourth quarters of 2017 and first quarter of 2018 to shareholders of record in the month of each quarterly payment;

The appointment of Mr. Frederic Sanchez as a new member of the Supervisory Board, for a three-year term expiring at the 2020 Annual General Meeting of Shareholders, in replacement of Mr. Didier Lombard whose mandate expired as of the 2017 AGM;

The reappointment, for a three-year term expiring at the 2020 Annual General Meeting of Shareholders, of the following members of the Supervisory Board: Ms. Heleen Kersten and Messrs. Jean-Georges Malcor, Alessandro Rivera and Maurizio Tamagnini;

The reappointment of Mr. Carlo Bozotti as the sole member of the Managing Board for a one-year term;

The approval of a new four-year Unvested Stock Award Plan for Management and Key Employees;

The approval of the stock-based portion of the compensation of the President and CEO;

The authorization to the Managing Board, for eighteen months following the AGM, to repurchase shares, subject to the approval of the Supervisory Board; and

The delegation to the Supervisory Board of the authority to issue new common and preference shares, to grant rights to subscribe for such shares and to limit and/or exclude existing shareholders’ pre-emptive rights on common shares for a period of eighteen months.

On June 22, ST announced the pricing of a US$1.5 billion offering of senior unsecured bonds convertible into new or existing ordinary shares of STMicroelectronics. The New Convertible Bonds were issued in two tranches, one of US$750 million with a maturity of 5 years and one of US$750 million with a maturity of 7 years. The offering proceeds, net of costs (including costs in respect of the share buy-back program), will be used by STMicroelectronics for general corporate purposes, including the early redemption of the outstanding US$600 million Zero Coupon Convertible Bonds due 2019 and the future redemption of the outstanding US$400 million 1.00 per cent. Convertible Bonds due 2021. The Company also announced the launch of a share buy-back program of up to 19 million shares for an amount up to US$297 million intended to meet obligations arising from debt financial instruments that are exchangeable into equity instruments and to meet obligations arising from share award programs and the early redemption of the 2019 Convertible Bonds.

Won new generation of airbag platform, with fully integrated system solution containing a squib driver and sensor interface from a major car-safety technology leader;

Selected as partner by Germany-based company for development of next-gen rear LED driver targeting major global carmakers;

Won class AB and class D audio-amplifier sockets with a global Tier1 for booster and radio applications;

Recorded multiple design–wins for high-temp silicon-controlled rectifiers and ultrafast diodes supporting car electrification from Automotive Tier1 and Tier2 suppliers;

Continued to reinforce leadership with ultrafast series diodes with wins at top air-conditioning makers;

Registered several wins for SiC diodes in Automotive and high-end Industrial markets and for SiC MOSFETs in Automotive applications;

Captured several wins for high-voltage MDmesh (Super Junction) devices for on-board chargers, battery chargers, and outdoor LEDs from major Automotive Tier1s and smartphone and lighting manufacturers;

Earned multiple wins with high-voltage IGBTs from Chinese, American, and European leaders in home appliances and electronic ignition for cars.

Introduced flexible and multi-standard wireless charger ICs;

Landed a major design win for fast, wireless-charging ICs in mobile phones;

Won numerous sockets globally for STSPIN family in a broad range of Consumer and Industrial motor-control applications – including 3D printers and vacuum cleaners and fan controls and textile machines for Industry 4.0 factories;

Captured a design win for touchscreen controllers in a rigid-screen display for a top Chinese phone maker;

Launched extremely efficient Bluetooth 5.0-certified Bluetooth® Low Energy System-on-Chip processor;

Won multiple sub-GHz and Bluetooth Low Energy designs in a range of applications including wearable, home, and building automation;

Landed major design wins for MEMS microphones, inertial measurement unit, and magnetometer in PCs and tablet application with important manufacturers;

Captured multiple design wins with accelerometer and 6-axis motion sensor for bike-lock, security, and performance applications in China and Japan;

Earned a win for a 6-axis inertial measurement unit from a top Chinese smartphone manufacturer;

Received first order for waterproof pressure sensors for a wearable watch from a top global brand and won sockets globally for ultra-compact pressure sensor in multiple applications, including drones and appliances;

Enlarged family of 10-year-longevity sensors with the introduction of 6-axis module targeting Smart Industry applications.

Expanded STM32L4 series with lines featuring on-chip digital filter for sigma-delta modulators, enabling advanced audio capabilities;

Announced STM32L4 IoT Discovery kit to speed development of applications with direct connection to cloud services;

Enhanced STM32 Ecosystem to provide a scalable multi-protocol industrial Ethernet platform through a cooperative effort with Hilscher;

Released to production the latest high-performance NFC controller targeting consumer and mobile-security applications;

Launched STPay-Ivory, new STPay dual-interface banking solution based on the ST31 secure microcontroller;

Disclosed a drop-in solution for IoT Security, based on STSAFE Trusted Platform Module, in cooperation with Security Platform Inc;

Introduced tiny Dual-Flat No-lead package options while beginning production ramp of 256k-bit EEPROM for a top sportswear brand;

Gained wins for ST25D dynamic RFID tags in washing machines and for ST25R NFC reader ICs for point-of-sales terminals from major OEMs;

Launched ST25DV Dynamic NFC/RFID Tag expansion board for STM32 Nucleo ecosystem;

Introduced first European independent design platform dedicated to ASICs for space applications in 65nm low-power CMOS technology, in cooperation with ESA and CNES;

Qualified new FD-SOI digital ASIC for key networking OEM;

Captured several design wins for optical ICs at a key module manufacturer for applications in datacenters.

Continued to gain design-wins while building volume shipments of FlightSense™ Time-of-Flight proximity and ranging sensors to multiple smartphone OEMs.

Uncertain macro-economic and industry trends, which may impact end-market demand for our products;

Customer demand that differs from projections;

The ability to design, manufacture and sell innovative products in a rapidly changing technological environment;

Unanticipated events or circumstances, which may impact our ability to execute the planned reductions in our net operating expenses and / or meet the objectives of our R&D Programs, which benefit from public funding;

Changes in economic, social, labor, political, or infrastructure conditions in the locations where we, our customers, or our suppliers operate, including as a result of macro-economic or regional events, military conflicts, social unrest, labor actions, or terrorist activities;

The Brexit vote and the perceptions as to the impact of the withdrawal of the U.K. may adversely affect business activity, political stability and economic conditions in the U.K., the Eurozone, the EU and elsewhere. While we do not have material operations in the U.K. and have not experienced any material impact from Brexit on our underlying business to date, we cannot predict its future implications;

Financial difficulties with any of our major distributors or significant curtailment of purchases by key customers;

The loading, product mix, and manufacturing performance of our production facilities;

The functionalities and performance of our IT systems, which support our critical operational activities including manufacturing, finance and sales, and any breaches of our IT systems or those of our customers or suppliers;

Variations in the foreign exchange markets and, more particularly, the U.S. dollar exchange rate as compared to the Euro and the other major currencies we use for our operations;

The impact of intellectual property (“IP”) claims by our competitors or other third parties, and our ability to obtain required licenses on reasonable terms and conditions;

The ability to successfully restructure underperforming business lines and associated restructuring charges and cost savings that differ in amount or timing from our estimates;

Changes in our overall tax position as a result of changes in tax laws, the outcome of tax audits or changes in international tax treaties which may impact our results of operations as well as our ability to accurately estimate tax credits, benefits, deductions and provisions and to realize deferred tax assets;

The outcome of ongoing litigation as well as the impact of any new litigation to which we may become a defendant;

Product liability or warranty claims, claims based on epidemic or delivery failure, or other claims relating to our products,  or recalls by our customers for products containing our parts;

Natural events such as severe weather, earthquakes, tsunamis, volcano eruptions or other acts of nature, health risks and epidemics in locations where we, our customers or our suppliers operate;

Availability and costs of raw materials, utilities, third-party manufacturing services and technology, or other supplies required by our operations; and

Industry changes resulting from vertical and horizontal consolidation among our suppliers, competitors, and customers.

Net revenues of “Others” includes revenues from sales of Imaging Product Division, Subsystems, assembly services, and other revenue. Operating income (loss) of “Others” includes items such as unused capacity charges, impairment, restructuring charges and other related closure costs, phase out and start-up costs, and other unallocated expenses such as: strategic or special research and development programs, certain corporate-level operating expenses, patent claims and litigations, and other costs that are not allocated to product groups, as well as operating earnings of the Imaging Product Division, Subsystems and other products. “Others” includes $1 million, $1 million, $8 million and $10 million of unused capacity charges in the second and first quarters of 2017 and 2016, respectively; and $6 million, $5 million, $12 million and $28 million of impairment, restructuring charges, and other related closure costs in the second and first quarters of 2017 and 2016, respectively.