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NXP Semiconductors Reports Fourth Quarter and Full-Year 2012 Results


NXP Semiconductors Reports Fourth Quarter and Full-Year 2012 Results

EINDHOVEN, THE NETHERLANDS -- (Marketwire) -- 01/30/13 -- NXP Semiconductors N.V. (NASDAQ: NXPI)


 
                                                                            
                                                Q4 2012         Year 2012   
                                           ---------------- ----------------
      Revenue                               $1,116 million   $4,358 million 
      GAAP Gross margin                          43.9%            45.6%     
      GAAP Operating margin                      3.0%             9.5%      
      GAAP Diluted earnings per share           ($0.47)          ($0.46)    
                                                                            
      Non-GAAP Gross margin                      46.1%            45.8%     
      Non-GAAP Operating margin                  18.7%            18.0%     
      Non-GAAP Earnings per share                $0.50            $1.70     
                                                                            

 
--  Trailing twelve month adjusted EBITDA $1,042 million
--  Net debt reduced $181 million year-on-year to $2,875 million
--  Product revenue growth of 24 percent year-on-year, down 4 percent
    sequentially

NXP Semiconductors N.V. (NASDAQ: NXPI) today reported financial results for the fourth quarter and the full-year of 2012, ended December 31, 2012, and provided guidance for the first quarter 2013.

"Our results for the fourth quarter of 2012 came in at the higher end of our original guidance, as NXP delivered Product revenue of $1,066 million, a four percent sequential decline, and a twenty-four percent increase from the comparable year ago period. Total NXP revenue in the fourth quarter was $1,116 million, approximately a five percent sequential decline, and a twenty percent increase from the comparable year ago period," said Richard Clemmer, NXP Chief Executive Officer.

"Looking at the full-year results, NXP delivered Product revenue of $4,114 million, better than a seven percent year-on-year growth, as key design opportunities we outlined at the beginning of the year came to fruition. Specifically, full-year revenue in our core HPMS segment increa sed thirteen percent year-on-year due to strong growth in our Identification and Portable & Computing end markets. However, as a result of challenging market conditions, NXP experienced slower than anticipated growth in other areas of our HPMS segment, and a 10 percent year-on-year decline in our Standard product segment. Taken together, total NXP revenue increased four percent year-on-year to $4,358 million.

"As our recent actions demonstrate, we remain committed to improving our cost and expense structure, which should result in improved earnings growth and cash flow generation. Our strategy continues to be focused on providing unique and differentiated product solutions to enable our customer's success, which over the longer-term should allow NXP to outpace the cyclical growth of the overall semiconductor market," said Clemmer.

Fourth Quarter 2012 Results ($ millions, except EPS, unaudited)


 
                                                                            
----------------------------------------------------------------------------
                                                                            
                            Q4 2012   Q3 2012   Q4 2011    Q - Q     Y - Y  
                           --------  --------  --------  --------  -------- 
                                                                            
Product Revenue            $  1,066  $  1,114  $    857        -4%       24%
                                                                            
Mfg. & Other Revenue       $     50  $     56  $     74       -11%      -32%
                           --------  --------  --------                     
                                                                            
Total Revenue              $  1,116  $  1,170  $    931        -5%       20%
                                                                            
GAAP Gross Profit          $    490  $    536  $    389        -9%       26%
                                                                            
  Gross Profit Adjustments                                                  
   (1)                     $    (24) $     (6) $    (34)                    
                                                                            
Non-GAAP Gross Profit      $    514  $    542  $    423        -5%       22%
                                                                            
  GAAP Gross Margin            43.9%     45.8%     41.8%                    
                                                                            
  Non-GAAP Gross Margin        46.1%     46.3%     45.4%                    
                                                                            
GAAP Operating Income      $     33  $    168  $      7       -80%      371%
                                                                            
  Operating Income                                                          
   Adjustments (1)         $   (176) $    (64) $   (141)                    
                                                                            
Non-GAAP Operating Income  $    209  $    232  $    148       -10%       41%
                                                                            
  GAAP Operating Margin         3.0%     14.4%      0.8%                    
                                                                            
  Non-GAAP Operating Margin    18.7%     19.8%     15.9%                    
                                                                            
GAAP Net Income / (Loss)   $   (116) $    115  $   (182)       NM        NM 
                                                                            
  Net Income Adjustments                                                    
   (1)                     $   (242) $    (27) $   (241)                    
                                                                            
Non-GAAP Net Income /                                                       
 (Loss)                    $    126  $    142  $     59       -11%      114%
                                                                            
GAAP EPS                   $  (0.47) $   0.45  $  (0.73)       NM        NM 
  EPS Adjustments (1)      $  (0.97) $  (0.11) $  (0.97)                    
Non-GAAP EPS               $   0.50  $   0.56  $   0.24       -11%      108%
                                                                            
----------------------------------------------------------------------------
                                                                            
 
                                                         
---------------------------------------------------------
                                                         
                              2012      2011      Y - Y  
                            --------  --------  -------- 
                                                         
Product Revenue             $  4,114  $  3,831         7%
                                                         
Mfg. & Other Revenue        $    244  $    363       -33%
                            --------  --------           
                   
                                      
Total Revenue               $  4,358  $  4,194         4%
                                                         
GAAP Gross Profit           $  1,988  $  1,906         4%
                                                         
  Gross Profit Adjustments                               
   (1)                      $     (6) $    (82)          
                                                         
Non-GAAP Gross Profit       $  1,994  $  1,988         0%
                                                         
  GAAP Gross Margin             45.6%     45.4%          
                                                         
  Non-GAAP Gross Margin         45.8%     47.4%          
                                                         
GAAP Operating Income       $    412  $    357        15%
                                                         
  Operating Income                                       
   Adjustments (1)          $   (374) $   (453)          
                                                         
Non-GAAP Operating Income   $    786  $    810        -3%
                                                         
  GAAP Operating Margin          9.5%      8.5%          
                                                         
  Non-GAAP Operating Margin     18.0%     19.3%          
                                                         
GAAP Net Income / (Loss)    $   (115) $    390        NM 
                                                         
  Net Income Adjustments                                 
   (1)                      $   (544) $    (42)          
                                                         
Non-GAAP Net Income /                                    
 (Loss)                     $    429  $    432        -1%
                                                         
GAAP EPS                    $  (0.46) $   1.57        NM 
  EPS Adjustments (1)       $  (2.16) $  (0.14)          
Non-GAAP EPS                $   1.70  $   1.71        -1%
                                                         
---------------------------------------------------------

(1) Please see "Discussion of GAAP to non-GAAP Reconciliation" on page 3 of this release.

Supplemental Information ($ millions, unaudited)


 
                                                                            
----------------------------------------------------------------------------
                                                                            
                                                Percent                     
                  Q4 2012   Q3 2012   Q4 2011  Q4 Total    Q - Q     Y - Y  
                 --------- --------- --------- --------  --------  -------- 
                                                                            
  Automotive     $     227 $     239 $     218       20%       -5%        4%
                                                                            
  Identification $     290 $     275 $     155       26%        5%       87%
                                                                            
  Infrastructure                                                            
   & Industrial  $     156 $     165 $     149       14%       -5%        5%
                                                                            
  Portable &                                                                
   Computing     $     195 $     222 $     137       18%      -12%       42%
                 --------- --------- --------- --------  --------  -------- 
                                                                            
High Performance                                                            
 Mixed Signal                                                               
 (HPMS)          $     868 $     901 $     659       78%       -4%       32%
                                                                            
Standard                                                                    
 Products (STDP) $     198 $     213 $     198       18%       -7%        0%
                 --------- --------- --------- --------  --------  -------- 
                                                                            
Product Revenue  $   1,066 $   1,114 $     857       96%       -4%       24%
                                                                            
Manufacturing &                                                             
 Other           $      50 $      56 $      74        4%      -11%      -32%
                 --------- --------- --------- --------  --------  -------- 
                                                                            
Total Revenue    $   1,116 $   1,170 $     931      100%       -5%       20%
                                                                            
----------------------------------------------------------------------------
                                                                            
 
                                              
----------------------------------------------
                                              
                    2012      2011     Y - Y  
                 --------- --------- -------- 
                                              
  Automotive     $     939 $     930        1%
                                              
  Identification $     986 $     698       41%
                                              
  Infrastructure                              
   & Industrial  $     604 $     617       -2%
                                              
  Portable &                                  
   Computing     $     753 $     661       14%
                 --------- ---------          
                                              
High Performance                              
 Mixed Signal                                 
 (HPMS)          $   3,282 $   2,906       13%
                                              
Standard                                      
 Products (STDP) $     832 $     925      -10%
                 --------- ---------          
                                              
Product Revenue  $   4,114 $   3,831        7%
                                              
Manufacturing &                               
 Other           $     244 $     363      -33%
                 --------- ---------          
                                              
Total Revenue    $   4,358 $   4,194        4%
                                              
----------------------------------------------

Product Revenue is the combination of revenue from the High Performance Mixed Signal (HPMS) and Standard Products (STDP) segments.

Additional Information for the Fourth Quarter of 2012:


 
--  Total gross debt at the end of the fourth quarter 2012 was $3,492
    million, a reduction of $90 million from the $3,582 million in the
    prior quarter. Cash balance at the end of the fourth quarter of 2012
    was $617 million, resulting in a net-debt position of $2,875 million.
--  On December 11, 2012, NXP tendered and retired $500 million of its
    U.S.-dollar denominated 9 3/4 Senior Secured notes. In a subsequent
    transaction NXP entered into a new $500 million senior secured term
    loan facility ("Term Loan C") due January 2020, which carries a coupon
    of LIBOR + 350bps, and a LIBOR floor of 125bps. The proceeds of the
    new term loan was drawn under the terms and conditions of the existing
    senior secured loan facility.
--  Net cash interest paid in the fourth quarter of 2012 was $55 million.
--  SSMC, NXP's consolidated joint-venture wafer fab with TSMC, reported
    fourth quarter 2012 operating income of $46 million, EBITDA of $58
    million and a closing cash balance of $288 million.
--  Utilization in NXP wafer fabs averaged 85 percent in the fourth
    quarter 2012 compared to 71 percent in the year ago period and 91
    percent in the prior quarter.
--  During the fourth quarter of 2012 NXP booked a $98 million charge
    associated with a restructuring initiative designed to improve
    operational efficiency and to competitive
ly position the company for
    sustainable growth. The components of the restructuring initiative
    were: $55 million in SG&A to assist in driving SG&A to 12
    percent of revenue; $23 million in R&D to refocus resources; and
    $20 million in cost of goods sold, mainly related to the consolidation
    of MOS technologies from our German fabrication facility to the
    company's 8-inch Dutch facility.

Guidance for the First Quarter 2013: ($ millions, except share count and EPS) (1)


 
                                                                            
                                                                            
----------------------------------------------------------------------------
                                                                            
                                                   Guidance Range           
                                             Low         Mid        High    
                                         ----------  ----------  ---------- 
                                                                            
Product Revenue                          $    1,027  $    1,043  $    1,058 
                                                                            
  Q-Q                                            -4%         -2%         -1%
                                                                            
Mfg. & Other Revenue                     $       24  $       24  $       24 
                                         ----------  ----------  ---------- 
                                                                            
Total Revenue                            $    1,051  $    1,067  $    1,082 
                                                                            
  Q-Q                                            -6%         -4%         -3%
                                                                            
Non-GAAP Gross Profit                    $      497  $      504  $      511 
                                                                            
  Non-GAAP Gross Margin                          47%         47%         47%
                                                                            
Non-GAAP Operating Income                $      193  $      198  $      202 
                                                                            
  Non-GAAP Operating Margin                    18.4%       18.6%       18.7%
                                                                            
  Interest Expense                       $       50  $       50  $       50 
                                                                            
  Cash Taxes                             $        9  $        9  $        9 
                                                                            
  Non-controlling Interest               $       13  $       13  $       13 
                                         ----------  ----------  ---------- 
                                                                            
Non-GAAP Net Income                      $      121  $      126  $      130 
                                                                            
Ave. Diluted Shares                             255         255         255 
                                                                            
  Non - GAAP EPS                         $     0.47  $     0.49  $     0.51 
                                                                            
----------------------------------------------------------------------------

Note (1): NXP has based the guidance included in this release on judgments and estimates that management believes are reasonable given its assessment of historical trends and other information reasonably available as of the date of this release. The guidance included in this release consists of predictions only, and is subject to a wide range of known and unknown risks and uncertainties, many of which are beyond NXP's control. The guidance included in this release should not be regarded as representations by NXP that the estimated results will be achieved. Actual results may vary materially from the guidance we provide today. In relation to the use of non-GAAP financial information see the note regarding "Use of Non-GAAP Financial Information" elsewhere in this release. For the factors, risks and uncertainties to which judgments, estimates and forward-looking statements generally are subject see the note regarding "Forward-looking Statements." We undertake no obligation to publicly update or revise any forward-looking statements, including the guidance set forth herein, to reflect future events or circumstances. Considering the uncertain magnitude and variability of the foreign exchange consequences upon "PPA effects", "restructuring costs", "other incidental items" and any interest expense or taxes in future periods, management believes that GAAP financial measures are not available for NXP on a forward looking basis.

Discussion of GAAP to non-GAAP Reconciliations In addition to providing financial information on a basis consistent with U.S. generally accepted accounting principles ("GAAP"), NXP also provides the following selected financial measures on a non-GAAP basis: (i) "non-GAAP gross profit," (ii) "non-GAAP gross margin," (iii) "non-GAAP Research and development," (iv) "non-GAAP Selling, general and administrative," (v) non-GAAP Other income," (vi) "non-GAAP operating income (loss)," (vii) "non-GAAP operating margin," (viii) "non-GAAP net income/ (loss)," (ix) "PPA effects," (x) "Restructuring costs," (xi) "Other incidental items," (xii) "non-GAAP Financial Income (expense)," (xiii) "non-GAAP Results relating to equity-accounted investees," (xiv) "non-GAAP Cash tax (expense)," (xv) "non-GAAP EPS," (xvi) "EBITDA", "adjusted EBITDA" and "trailing 12 month adjusted EBITDA" and (xvii) "net debt."

In this release, references to:


 
--  "non-GAAP gross profit," "non-GAAP research and development",
    "non-GAAP Selling, general and administrative", "non-GAAP Other
    income", "non-GAAP operating income (loss)" and "non-GAAP net income/
    (loss)" are to NXP's gross profit, research and development, selling
    general and administrative, operating income and net income/ (loss)
    calculated on a basis consistent with GAAP, net of the effects of
    purchase price accounting ("PPA"), restructuring costs and certain
    other incidental items. "PPA effects" reflect the fair value
    adjustments impacting acquisition accounting and other acquisition
    adjustments charged to the income statement applied to the formation
    of NXP on September 29, 2006 and all subsequent acquisitions.
    "Restructuring costs" consist of costs related to restructuring
    programs and gains and losses resulting from divestment activities and
    impairment charges. "Other incidental items" consist of process and
    product transfer costs (which refer to the costs incurred in
    transferring a production process and products from one manufacturing
    site to another) and certain charges related to acquisitions and
    divestitures. "Other adjustments" include or exclude certain items
    that management believes provides insight into our core operating
    results, our ability to generate cash and underlying business trends
    affecting our performance.
    
    
--  "non-GAAP gross margin" and "non-GAAP operating margin" are to our
    non-GAAP gross profit or our non-GAAP operating income as a percentage
    of our sales, respectively;
    
    
--  "non-GAAP Financial Income (expense)" is the interest income or
    expense net of impacts due foreign exchange changes on our
    Euro-denominated debt, gains or losses due to the extinguishment of
    long-term debt and less other financial expenses deemed to be one-time
    in nature;
    
    
--  "non-GAAP Cash tax (expense)" is the difference between our GAAP tax
    provision and the cash taxes paid during the period;
    
    
--  "non-GAAP EPS" attributable to stockholders are to non-GAAP net income
    or loss attributable to NXP's stockholders, divided by the weighted
    average number of common shares outstanding during the period,
    adjusted for treasury shares held;
    
    
--  "EBITDA" are to NXP's earnings before interest, taxes, depreciation
    and amortization. "EBITDA" excludes certain tax payments that may
    represent a reduction in cash available to us, does not reflect any
    cash capital expenditure requirements for the assets being depreciated
    and amortized that may have to be replaced in the future, does not
    reflect changes in, or cash requirements for, our working capital
    needs and does not reflect the significant financial expense, or the
    cash requirements necessary to service interest payments, on our
    debts;
    
    
 
--  "adjusted EBITDA" are to EBITDA after adjustments for "restructuring
    costs," "other incidental items" and results related to equity
    accounted investees.
    
    
--  "trailing 12 month adjusted EBITDA" are to adjusted EBITDA for the
    last 12 months from the date of this release; and
    
    
--  "net debt" is to the sum total of long and short term debt less total
    cash and cash equivalents, as reflected on the balance sheet.

Reconciliations of these non-GAAP measures to the most comparable measures calculated in accordance with GAAP are provided in the financial statements portion of this release in a schedule entitled "Financial Reconciliation of GAAP to non-GAAP Results (unaudited)."

NXP provides non-GAAP measures because management believes that they are helpful to understand the underlying operating and profit structure of NXP's operations, to provide additional insight as to how management assesses the performance and allocation of resources among its various segments and because the financial community uses them in its analysis of NXP's operating and/or financial performance, historical results and projections of NXP's future operating results. NXP presents "non-GAAP gross profit," "non-GAAP research and development", "non-GAAP Selling, general and administrative", "non-GAAP Other income," "non-GAAP operating income," "non-GAAP net income/ (loss)," "non-GAAP gross margin," "non-GAAP operating margin" and "non-GAAP EPS" because these financials measures are net of "PPA effects," "restructuring costs", "other incidental items," and "other adjustments" which have affected the comparability of NXP's results over the years. NXP presents "EBITDA," "adjusted EBITDA" and "trailing 12 month adjusted EBITDA" because these financials measures enhance an investor's understanding of NXP's financial performance.

Non-GAAP measures should not be considered a substitute for any information derived or calculated in accordance with GAAP, are not intended to be measures of financial performance or condition, liquidity, profitability or operating cash flows in accordance with GAAP, and should not be considered as alternatives to net income (loss), operating income or any other performance measures determined in accordance with GAAP. These non-GAAP measures can vary from other participants in the semiconductor industry. They have limitations as analytical tools and should not be considered in isolation for analysis of NXP's financial results as reported under GAAP.

Conference Call and Webcast Information NXP will host a conference call on January 31, 2013 at 8:00 a.m. U.S. Eastern Standard Time (2:00 p.m. Central European Time) to discuss its fourth quarter 2012 results and provide an outlook for the first quarter of 2013.

Interested parties may join the conference call by dialing 1 - 800 - 706 - 7749 (within the U.S.) or 1 - 617 - 614 - 3474 (outside the U.S.). The participant pass-code is 78451487. To listen to a webcast of the event, please visit the Investor Relations section of the NXP website at www.nxp.com/investor. The webcast will be recorded and available for replay shortly after the call concludes.

About NXP Semiconductors NXP Semiconductors N.V. (NASDAQ: NXPI) provides High Performance Mixed Signal and Standard Product solutions that leverage its leading RF, Analog, Power Management, Interface, Security and Digital Processing expertise. These innovations are used in a wide range of automotive, identification, wireless infrastructure, lighting, industrial, mobile, consumer and computing applications. A global semiconductor company with operations in more than 25 countries, NXP posted unaudited revenue of $4.36 billion in 2012. Additional information can be found by visiting www.nxp.com.

Forward-looking Statements This document includes forward-looking statements which include statements regarding NXP's business strategy, financial condition, results of operations, and market data, as well as any other statements which are not historical facts. By their nature, forward-looking statements are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those projected. These factors, risks and uncertainties include the following: market demand and semiconductor industry conditions; the ability to successfully introduce new technologies and products; the end-market demand for the goods into which NPX's products are incorporated; the ability to generate sufficient cash, raise sufficient capital or refinance corporate debt at or before maturity; the ability to meet the combination of corporate debt service, research and development and capital investment requirements; the ability to accurately estimate demand and match manufacturing production capacity accordingly or obtain supplies from third-party producers; the access to production capacity from third-party outsourcing partners; any events that might affect third-party business partners or NXP's relationship with them; the ability to secure adequate and timely supply of equipment and materials from suppliers; the ability to avoid operational problems and product defects and, if such issues were to arise, to correct them quickly; the ability to form strategic partnerships and joint ventures and to successfully cooperate with alliance partners; the ability to win competitive bid selection processes to develop products for use in customers' equipment and products; the ability to successfully establish a brand identity; the ability to successfully hire and retain key management and senior product architects; and, the ability to maintain good relationships with our suppliers. In addition, this document contains information concerning the semiconductor industry and NXP's business segments generally, which is forward-looking in nature and is based on a variety of assumptions regarding the ways in which the semiconductor industry, NXP's market segments and product areas may develop. NXP has based these assumptions on information currently available, if any one or more of these assumptions turn out to be incorrect, actual market results may differ from those predicted. While NXP does not know what impact any such differences may have on its business, if there are such differences, its future results of operations and its financial condition could be materially adversely affected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak to results only as of the date the statements were made. Except for any ongoing obligation to disclose material information as required by the United States federal securities laws, NXP does not have any intention or obligation to publicly update or revise any forward-looking statements after we distribute this document, whether to reflect any future events or circumstances or otherwise. For a discussion of potential risks and uncertainties, please refer to the risk factors listed in our SEC filings. Copies of our SEC filings are available on our Investor Relations website, www.nxp.com/investor or from the SEC website, www.sec.gov.


 
                                                                            
NXP Semiconductors                                                          
Table 1: Condensed consolidated statement of operation (unaudited)          
--------------------------------------------------------------------------- 
                                                                            
                                                                            
($ in millions except                                                       
 share data)                 Three Months Ended              Full year      
                      -------------------------------  -------------------- 
                       Dec 31,    Sept 30,   Dec 31,                        
                         2012       2012       2011       2012       2011   
                    
  ---------  ---------  ---------  ---------  --------- 
                                                                            
Revenue               $   1,116  $   1,170  $     931  $   4,358  $   4,194 
                                                                            
Cost of revenue            (626)      (634)      (542)    (2,370)    (2,288)
                      ---------  ---------  ---------  ---------  --------- 
                                                                            
Gross profit                490        536        389      1,988      1,906 
                                                                            
Research and                                                                
 development               (171)      (153)      (151)      (628)      (635)
Selling, general and                                                        
 administrative            (288)      (236)      (236)      (977)      (918)
                      ---------  ---------  ---------  ---------  --------- 
Total operating                                                             
 expenses                  (459)      (389)      (387)    (1,605)    (1,553)
                                                                            
Other income                                                                
 (expense)                    2         21          5         29          4 
                      ---------  ---------  ---------  ---------  --------- 
                                                                            
Operating income                                                            
 (loss)                      33        168          7        412        357 
                                                                            
Financial income                                                            
 (expense):                                                                 
  Interest income                                                           
   (expense) - net          (55)       (65)       (74)      (266)      (307)
  Foreign exchange                                                          
   gain (loss)               31         48        (65)        28        128 
  Gain (loss) on                                                            
   extinguishment of                                                        
   long term debt          (114)       (11)        (7)      (161)       (32)
  Other financial                                                           
   expense                  (15)        (5)       (19)       (38)       (46)
                      ---------  ---------  ---------  ---------  --------- 
                                                                            
Income (loss) before                                                        
 taxes                     (120)       135       (158)       (25)       100 
                                                                            
Benefit (provision)                                                         
 for income taxes             7         (6)        (2)        (1)       (21)
Results relating to                                                         
 equity-accounted                                                           
 investees                   15          2        (15)       (27)       (77)
                      ---------  ---------  ---------  ---------  --------- 
                                                                            
Income (loss) from                                                          
 continuing                                                                 
 operations                 (98)       131       (175)       (53)         2 
Income (loss) on                                                            
 discontinued                                                               
 operations, net of                                                         
 tax                          -          -          2          1        434 
                      ---------  ---------  ---------  ---------  --------- 
Net income (loss)           (98)       131       (173)       (52)       436 
Net (income) loss                                                           
 attributable to non-                                                       
 controlling                                                                
 interests                  (18)       (16)        (9)       (63)       (46)
                      ---------  ---------  ---------  ---------  --------- 
Net income (loss)                                                           
 attributable to                                                            
 stockholders              (116)       115       (182)      (115)       390 
                                                                            
Earnings per share                                                          
 data:                                                                      
Net income (loss)                                                           
 attributable to                                                            
 stockholders per                                                           
 common share                                                               
                                                                            
Basic earnings per                                                          
 common share in $                                                          
  Income (loss) from                                                        
   continuing                                                               
   operations         $   (0.47) $    0.46  $   (0.74) $   (0.46) $   (0.17)
  Income (loss) from                                                        
   discontinued                                                             
   operations         $       -  $       -  $    0.01  $       -  $    1.74 
                      ---------  ---------  ---------  ---------  --------- 
Net income (loss)     $   (0.47) $    0.46  $   (0.73) $   (0.46) $    1.57 
                                                                            
Diluted earnings per                                                        
 common share                                                               
  Income (loss) from                                                        
   continuing                                                               
   operations         $   (0.47) $    0.45  $   (0.74) $   (0.46) $   (0.17)
  Income (loss) on                                                          
   discontinued                                                             
   operations         $       -  $       -  $    0.01  $       -  $    1.74 
                      ---------  ---------  ---------  ---------  --------- 
Net income (loss)     $   (0.47) $    0.45  $   (0.73) $   (0.46) $    1.57 
                                                                            
Weighted average                                                            
 number of shares of                                                        
 common stock (in                                                           
 thousands):                                                                
Basic                   248,505    247,498    247,586    248,064    248,812 
Diluted                 248,505    253,060    247,586    248,064    248,812 
                                                                            
                                                                            
                                                                            
                                                                            
NXP Semiconductors                                                          
Table 2: Condensed con
solidated balance sheet (unaudited)                   
                                                                            
----------------------------------------------------------------------------
                                                                            
($ in millions)                                                             
                                         -----------------------------------
                                           Dec 31,     Sept 30,    Dec 31,  
                                             2012        2012        2011   
                                         ----------- ----------- -----------
                                                                            
Current assets:                                                             
  Cash and cash equivalents              $       617 $       702 $       743
  Accounts receivable - net                      459         470         441
  Other receivables                               51          15          38
  Assets held for sale                            10           8          39
  Inventories                                    715         671         618
  Other current assets                           102         105          87
                                         ----------- ----------- -----------
Total current assets                           1,954       1,971       1,966
                                                                            
Non-current assets:                                                         
  Investments in equity-accounted                                           
   investees                                      45          42          37
  Other non-current assets                       128         144         144
  Property, plant and equipment                1,070       1,086       1,063
  Identified intangible assets                   965       1,017       1,171
  Goodwill                                
     2,277       2,241       2,231
                                         ----------- ----------- -----------
Total non-current assets                       4,485       4,530       4,646
                                                                            
Total assets                                   6,439       6,501       6,612
                                                                            
Current liabilities:                                                        
  Accounts payable                               562         549         455
  Liabilities held for sale                        -           3          21
  Accrued liabilities                            627         513         521
  Short-term debt                                307         244          52
                                         ----------- ----------- -----------
Total current liabilities                      1,496       1,309       1,049
                                                                            
Non-current liabilities:                                                    
  Long-term debt                               3,185       3,338       3,747
  Other non-current liabilities                  474         450         459
                                         ----------- ----------- -----------
Total non-current liabilities                  3,659       3,788       4,206
                                                                            
Non-controlling interests                        235         217         212
Stockholders' equity                           1,049       1,187       1,145
                                         ----------- ----------- -----------
Total equity                                   1,284       1,404       1,357
                                                                            
Total liabilities and equity                   6,439       6,501       6,612
                                                              
              
                                                                            
                                                                            
                                                                            
NXP Semiconductors                                                          
Table 3: Condensed consolidated statement of cash flow (unaudited)          
                                                                            
--------------------------------------------------------------------------- 
                                                                            
                                                                            
($ in millions)              Three Months Ended              Full year      
                      -------------------------------  -------------------- 
                       Dec 31,    Sept 30,   Dec 31,                        
                         2012       2012       2011       2012       2011   
                      ---------  ---------  ---------  ---------  --------- 
                                                                            
Cash Flows from                                                             
 operating activities                                                       
Net income (loss)     $     (98) $     131  $    (173) $     (52)       436 
(Income) loss from          
                                                
 discontinued                                                               
 operations, net of                                                         
 tax                          -          -         (2)        (1)      (434)
Adjustments to                                                              
 reconcile net income                                                       
 (loss):                                                                    
  Depreciation and                                                          
   amortization             132        128        151        533        591 
  Stock-based                                                               
   compensation              16         12         10         52         31 
  Net (gain) loss on                                                        
   sale of assets            (1)       (19)        (2)       (20)        10 
  (Gain) loss on                                                            
   extinguishment of                                                        
   debt                     114         11          7        161         32 
  Results relating to                                                       
   equity accounted                                                         
   investees                (15)        (2)        15         27         77 
Changes in operating                                                        
 assets and                                                                 
 liabilities:                                                               
  (Increase) decrease                                                       
   in trade                                                                 
   receivables               18         (8)       (45)        (6)       (60)
  (Increase) decrease                                                       
   in inventories           (41)       (20)       (14)       (61)      (104)
  Increase (decrease)                                                       
   in trade payables         10         19        (70)       101       (134)
  (Increase) decrease                                                       
   in other                                                                 
   receivables               33          3         28         47         25 
  Increase (decrease)                                                       
   in other payables         34        (22)       (11)       (35)      (198)
  Changes in deferred                                                       
   taxes                     (8)         -          4        (18)        13 
Exchange differences        (31)       (48)        65        (28)      (128)
Other items                   1          7          3         22         18 
                      ---------  ---------  ---------  ---------  --------- 
Net cash provided by                                                        
 (used for) operating                                                       
 activities                 164        192        (34)       722        175 
                                                                            
Cash flows from                                                             
 investing                                                                  
 activities:                                                                
  Purchase of                                                               
   identified                                                               
   intangible assets         (8)        (7)        (5)       (29)       (10)
  Capital                                                                   
   expenditures on                                                          
   property, plant                                                          
   and equipment            (46)       (92)       (41)      (251)      (221)
  Proceeds from                                                             
   disposals of                                                             
   property, plant                                                          
   and equipment              1          -          1          2         15 
  Proceeds from                                                             
   disposals of                                                             
   assets held for                                                          
   sale                       -          -         11          -         11 
  Purchase of                                                               
   interests in                                                             
   businesses                 -          -          -         (2)         - 
  Proceeds from sale                                                        
   of interests in                                                          
   businesses                (1)        27          -         26          - 
  Proceeds from                                                             
   return of equity                                                         
   investment                12          -          -         12          - 
  Other                      (3)         1          1         (1)         3 
                      ---------  ---------  ---------  ---------  --------- 
Net cash (used for)                                                         
 provided by                                                                
 investing activities       (45)       (71)       (33)      (243)      (202)
                                                                            
Cash flows from                                                             
 financing                                                                  
 activities:                                                                
  Net (repayments)                                                          
   borrowings of                                                            
   short-term debt            -          4         (1)         -         17 
  Repayments under                                                          
   the revolving                                                            
   credit facility            -       (200)         -       (530)      (600)
  Amounts drawn under                                                       
   the revolving                                                            
   credit facility          100          -          -        760        200 
  Repurchase of long-                                                       
   term debt               (802)       (59)    (1,089)    (1,676)    (1,997)
  Principal payments                                                        
   on long-term debt         (6)        (5)        (5)       (20)       (10)
  Net proceeds from                                                         
   the issuance of                                                          
   long-term debt           493          -      1,082        958      1,578 
  Dividends paid to                                                         
   non-controlling                                                          
   interests                  -         (1)         -        (40)       (67)
  Cash proceeds from                                                        
   exercise of stock                                                        
   options                    6          6          1         14         10 
  Purchase of                                                               
   treasury shares            -         (3)         -        (40)       (57)
                      ---------  ---------  ---------  ---------  --------- 
Net cash provided by                                                        
 (used for) financing                                                       
 activities                (209)      (258)       (12)      (574)      (926)
                                                                            
Net cash provided by                                                        
 (used for)                                                                 
 continuing                                                                 
 operations                 (90)      (137)       (79)       (95)      (953)
                                                                            
Cash flows from                                                             
 discontinued                                                               
 operations:                                                                
  Net cash provided                                                         
   by (used for)                                                            
   operating                                                                
   activities                 -          -          -          -         20 
  Net cash provided                                                         
   by (used for)                                                            
   investing                                                                
   activities                 -          -        (31)       (45)       791 
  Net cash provided                                                         
   by (used for)                                                            
   financing                                                                
   activities                 -          -          -          -         (2)
                      ---------  ---------  ---------  ---------  --------- 
Net cash provided by                                                        
 (used for)                                                                 
 discontinued                                                               
 operations                   -          -        (31)       (45)       809 
                                                                            
Net cash from                                                               
 continuing and                                                             
 discontinued                                                               
 operations                 (90)      (137)      (110)      (140)      (144)
Effect of changes in                                                        
 exchange rates on                                                          
 cash positions               5          2        (12)        14        (21)
                      ---------  ---------  ---------  ---------  --------- 
Increase (decrease)                                                         
 in cash and cash                                                           
 equivalents                (85)      (135)      (122)      (126)      (165)
Cash and cash                                                               
 equivalents at                                                             
 beginning of period        702        837        865        743        908 
                      ---------  ---------  ---------  ---------  --------- 
Cash and cash                                                               
 equivalents at end                                                         
 of period                  617        702        743        617        743 
                      ---------  ---------  ---------  ---------  --------- 
                                                                            
                                                                            
                                                                            
NXP Semiconductors                                                          
Table 4: Reconcilliation of GAAP to non-GAAP Segment Results (unaudited)    
                                                                            
--------------------------------------------------------------------------- 
                                                                            
($ in millions)              Three Months Ended              Full year      
                      -------------------------------  -------------------- 
                       Dec 31,    Sept 30,   Dec 31,                        
                         2012       2012       2011       2012       2011   
                      ---------  ---------  ---------  ---------  --------- 
                                                                            
High Performance                                                            
 Mixed Signal (HPMS)        868        901        659      3,282      2,906 
Standard Products           198        213        198        832        925 
                      ---------  ---------  ---------  ---------  --------- 
  Product Revenue         1,066      1,114        857      4,114      3,831 
    Manufacturing                                                           
     Operations              43         49         62        211        316 
    Corporate and                                                           
     Other                    7          7         12         33         47 
                      ---------  ---------  ---------  ---------  --------- 
Total Revenue         $   1,116  $   1,170  $     931  $   4,358  $   4,194 
                      =========  =========  =========  =========  ========= 
                                                                            
                                                                            
--------------------------------------------------------------------------- 
                                                                            
HPMS Revenue          $     868  $     901  $     659  $   3,282  $   2,906 
  Percent of Total                                                          
   Revenue                 77.8%      77.0%      70.8%      75.3%      69.3%
  HPMS segment GAAP                                                         
   gross profit             453        463        321      1,745      1,573 
    PPA effects               -         (1)        (4)       (10)       (18)
    Restructuring            (1)         -        (20)        (1)       (20)
    Other incidentals        (1)        (1)         -         (4)         - 
    Other adjustments         -          -          -         46          - 
                      ---------  ---------  ---------  ---------  --------- 
  HPMS segment non-                                                         
   GAAP gross profit  $     455  $     465  $     345  $   1,714  $   1,611 
                      =========  =========  =========  =========  ========= 
                                                                            
    HPMS segment GAAP                                                       
     gross margin          52.2%      51.4%      48.7%      53.2%      54.1%
    HPMS segment non-                                                       
     GAAP gross                                                             
     margin                52.4%      51.6%      52.4%      52.2%      55.4%
                                                                            
  HPMS segment GAAP                                                         
   operating profit         119        178         20        527        339 
    PPA effects             (47)       (47)       (53)      (198)      (218)
    Restructuring           (26)         1        (38)       (24)       (43)
    Other incidentals        (4)        16          -          -         (1)
    Other adjustments         -          -          -         46          - 
                      ---------  ---------  ---------  ---------  --------- 
  HPMS segment non-                                                         
   GAAP operating                                                           
   profit             $     196  $     208  $     111  $     703  $     601 
                      =========  =========  =========  =========  ========= 
                                                                            
    HPMS segment GAAP                                                       
     operating margin      13.7%      19.8%       3.0%      16.1%      11.7%
    HPMS segment non-                                                       
     GAAP operating                                                         
     margin                22.6%      23.1%      16.8%      21.4%      20.7%
                                                                            
                                                                            
--------------------------------------------------------------------------- 
                                                                            
Standard Products                                                           
 Revenue              $     198  $     213  $     198  $     832  $     925 
  Percent of Total                                                          
   Revenue                 17.7%      18.2%      21.3%      19.1%      22.1%
  Standard Products                                                         
   segment GAAP gross                                                       
   profit                    41         73         67        238        336 
    PPA effects               -         (1)        (1)        (2)        (1)
    Restructuring           (15)         1         (4)       (15)        (5)
    Other incidentals         -          -          -          -          - 
                      ---------  ---------  ---------  ---------  --------- 
  Standard Products                                                         
   segment non-GAAP                                                         
   gross profit       $      56  $      73  $      72  $     255  $     342 
                      =========  =========  =========  =========  ========= 
                                                                            
    Standard Products                                                       
     segment GAAP                                                           
     gross margin          20.7%      34.3%      33.8%      28.6%      36.3%
    Standard Products                                                       
     segment non-GAAP                                                       
     gross margin          28.3%      34.3%      36.4%      30.6%      37.0%
                                                                            
  Standard Products                                                         
   segment GAAP                                                             
   operating profit         (12)        22         17         37        141 
    PPA effects             (13)       (13)       (14)       (52)       (57)
    Restructuring           (19)         -         (5)       (19)        (6)
    Other incidentals         -          2         (1)         1          - 
                      ---------  ---------  ---------  ---------  --------- 
  Standard Products                                                         
   segment non-GAAP                                                         
   operating profit   $      20  $      33  $      37  $     107  $     204 
                      =========  =========  =========  =========  ========= 
                                                                            
    Standard Products                                                       
     segment GAAP                                                           
     operating margin      -6.1%      10.3%       8.6%       4.4%      15.2%
    Standard Products                                                       
     segment non-GAAP                                                       
     operating margin      10.1%      15.5%      18.7%      12.9%      22.1%
                                                                            
--------------------------------------------------------------------------- 
                                                                            
                                                                            
                                                                            
NXP Semiconductors                                                          
Table 4: Reconcilliation of GAAP to non-GAAP Segment Results (unaudited)    
 (con't)                                                                    
                                                                            
--------------------------------------------------------------------------- 
                                                                            
                                                                            
($ in millions)              Three Months Ended              Full year      
                      -------------------------------  -------------------- 
                       Dec 31,    Sept 30,   Dec 31,                        
                         2012       2012       2011       2012       2011   
                      ---------  ---------  ---------  ---------  --------- 
Manufacturing                                                               
 Operations Revenue   $      43  $      49  $      62  $     211  $     316 
  Percent of Total                                                          
   Revenue                  3.9%       4.2%       6.7%       4.8%       7.5%
  Manufacturing                                                             
   Operations segment                                                       
   GAAP gross profit        (10)        (2)        (7)       (22)       (48)
    PPA effects              (2)        (2)        (1)        (8)        (8)
    Restructuring            (4)        (1)         1         (7)       (12)
    Other incidentals        (1)        (1)        (5)        (5)       (18)
                      ---------  ---------  ---------  ---------  --------- 
  Manufacturing                                                             
   Operations segment                                                       
   non-GAAP gross                                                           
   profit             $      (3) $       2  $      (2) $      (2) $     (10)
                      =========  =========  =========  =========  ========= 
                                                                            
    Manufacturing                                                           
     Operations                                                             
     segment GAAP                                                           
     gross margin         -23.3%      -4.1%     -11.3%     -10.4%     -15.2%
    Manufacturing                                                           
     Operations                                                             
     segment non-GAAP                                                       
     gross margin          -7.0%       4.1%      -3.2%      -0.9%      -3.2%
                                                                            
  Manufacturing                                                             
   Operations segment                                                       
   GAAP operating                                                           
   profit                   (15)        (6)       (10)       (36)       (60)
    PPA effects              (6)        (5)        (6)       (23)       (26)
    Restructuring            (4)        (1)         2         (7)       (12)
    Other incidentals        (1)        (2)        (4)        (3)       (17)
                      ---------  ---------  ---------  ---------  --------- 
  Manufacturing                                                             
   Operations segment                                                       
   non-GAAP operating                                                       
   profit             $      (4) $       2  $      (2) $      (3) $      (5)
                      =========  =========  =========  =========  ========= 
                                                                            
    Manufacturing                                                           
     Operations                                                             
     segment GAAP                                                           
     operating margin     -34.9%     -12.2%     -16.1%     -17.1%     -19.0%
    Manufacturing                                                           
     Operations                                                             
     segment non-GAAP                                                       
     operating margin      -9.3%       4.1%      -3.2%      -1.4%      -1.6%
                                                                            
                                                                            
--------------------------------------------------------------------------- 
                                                                            
Corporate and Other                                                         
 Revenue              $       7  $       7  $      12  $      33  $      47 
  Percent of Total                                                          
   Revenue                  0.6%       0.6%       1.2%       0.8%       1.1%
  Corporate and Other                                                       
   segment GAAP gross                                                       
   profit                     6          2          8         27         45 
    PPA effects               -          -          -          -          - 
    Restructuring             -          -          -          -          - 
    Other incidentals         -          -          -          -          - 
                      ---------  ---------  ---------  ---------  --------- 
  Corporate and Other                                                       
   segment non-GAAP                                                         
   gross profit       $       6  $       2  $       8  $      27  $      45 
                      =========  =========  =========  =========  ========= 
                                                                            
  Corporate and Other                                                       
   segment GAAP gross                                                       
   margin                    NM         NM         NM         NM         NM 
  Corporate and Other                                                       
   segment non-GAAP                                                         
   gross margin              NM         NM         NM         NM         NM 
                                                                            
  Corporate and Other                                                       
   segment GAAP                                                             
   operating profit         (59)       (26)       (20)      (116)       (63)
    PPA effects               -          -          -          -          - 
    Restructuring           (49)        (4)       (18)       (61)       (29)
    Other incidentals        (7)       (11)        (4)       (34)       (44)
                      ---------  ---------  ---------  ---------  --------- 
  Corporate and Other                                                       
   segment non-GAAP                                                         
   operating profit   $      (3) $     (11) $       2  $     (21) $      10 
                      =========  =========  =========  =========  ========= 
                                                                            
  Corporate and Other                                                       
   segment GAAP                                                             
   operating margin          NM         NM         NM         NM         NM 
  Corporate and Other                                                       
   segment non-GAAP                                                         
   operating margin          NM         NM         NM         NM         NM 
                                                                            
                                                                            
                                                                            
NXP Semiconductors                                                          
Table 5: Financial Reconcilliation of GAAP to non-GAAP Results (unaudited)  
                                                                            
--------------------------------------------------------------------------- 
                                                                            
                                                                            
($ in millions except                                                       
 share data)                 Three Months Ended              Full year      
                       ------------------------------  -------------------- 
                        Dec 31,    Sept 30,   Dec 31,                       
                         2012        2012      2011      2012        2011   
                       --------    --------  --------  --------    -------- 
                                                                            
Revenue                $  1,116    $  1,170  $    931  $  4,358    $  4,194 
                                                                            
GAAP Gross profit      $    490    $    536  $    389  $  1,988    $  1,906 
  PPA effects                (2)         (4)       (6)      (20)        (27)
  Restructuring             (20)          -       (23)      (23)        (37)
  Other incidentals          (2)         (2)       (5)       (9)        (18)
  Other adjustments           -           -         -        46           - 
                       --------    --------  --------  --------    -------- 
Non-GAAP Gross profit  $    514    $    542  $    423  $  1,994    $  1,988 
                       ========    ========  ========  ========    ======== 
                                                                            
GAAP Gross margin          43.9%       45.8%     41.8%     45.6%       45.4%
                                                                            
Non-GAAP Gross margin      46.1%       46.3%     45.4%     45.8%       47.4%
                                                                            
  GAAP Research and                                                         
   development         $   (171)   $   (153) $   (151) $   (628)   $   (635)
    PPA effects               -           -         -         -           - 
    Restructuring           (23)          -       (18)      (22)        (22)
    Other incidentals        (1)         (3)        -       (12)         (2)
                       --------    --------  --------  --------    -------- 
  Non-GAAP Research                                                         
   and development     $   (147)   $   (150) $   (133) $   (594)   $   (611)
                       ========    ========  ========  ========    ======== 
                                                                            
  GAAP Selling,                                                             
   general and                                                              
   administrative      $   (288)   $   (236) $   (236) $   (977)   $   (918)
    PPA effects             (64)        (61)      (67)     (253)       (274)
    Restructuring           (55)         (4)      (18)      (67)        (31)
    Other incidentals        (8)        (10)       (7)      (36)        (29)
                       --------    --------  --------  --------    -------- 
  Non-GAAP Selling,                                                         
   general and                                                              
   administrative      $   (161)   $   (161) $   (144) $   (621)   $   (584)
                       ========    ========  ========  ========    ======== 
                                                                            
  GAAP Other income                                                         
   (expense)           $      2    $     21  $      5  $     29    $      4 
    PPA effects               -           -         -         -           - 
    Restructuring             -           -         -         1           - 
    Other incidentals        (1)         20         3        21         (13)
                       --------    --------  --------  --------    -------- 
  Non-GAAP Other                                                            
   income (expense)    $      3    $      1  $      2  $      7    $     17 
                       ========    ========  ========  ========    ======== 
                                                                            
GAAP Operating income                                                       
 (loss)                $     33    $    168  $      7  $    412    $    357 
  PPA effects               (66)        (65)      (73)     (273)       (301)
  Restructuring             (98)         (4)      (59)     (111)        (90)
  Other incidentals         (12)          5        (9)      (36)        (62)
  Other adjustments           -           -         -        46           - 
                       --------    --------  --------  --------    -------- 
Non-GAAP Operating                                                          
 income (loss)         $    209    $    232  $    148  $    786    $    810 
                       ========    ========  ========  ========    ======== 
                                                                            
GAAP Operating margin       3.0%       14.4%      0.8%      9.5%        8.5%
                                                                            
Non-GAAP Operating                                                          
 margin                    18.7%       19.8%     15.9%     18.0%       19.3%
                                                                            
GAAP Financial income                                                       
 (expense)             $   (153)   $    (33) $   (165) $   (437)   $   (257)
  Foreign exchange                                                          
   gain (loss) on debt       31          48       (65)       28         128 
  Gain (loss) on                                                            
   extinguishment of                                                        
   long term debt          (114)        (11)       (7)     (161)        (32)
  Other financial                                                           
   expense                  (15)         (5)      (19)      (38)        (46)
                       --------    --------  --------  --------    -------- 
Non-GAAP Financial                                                          
 income (expense)      $    (55)   $    (65) $    (74) $   (266)   $   (307)
                       ========    ========  ========  ========    ======== 
                                                                            
GAAP Income tax                                                             
 benefit (provision)   $      7    $     (6) $     (2) $     (1)   $    (21)
  Other adjustments          17           3         4        27           4 
                       --------    --------  --------  --------    -------- 
Non-GAAP Cash tax                                                           
 (expense)             $    (10)   $     (9) $     (6) $    (28)   $    (25)
                       ========    ========  ========  ========    ======== 
                                                                            
GAAP Results relating                                                       
 to equity-accounted                                                        
 investees             $     15    $      2  $    (15) $    (27)   $    (77)
  Other adjustments          15           2       (15)      (27)        (77)
                       --------    --------  --------  --------    -------- 
Non-GAAP Results                                                            
 relating to equity-                                                        
 accounted investees   $      -    $      -  $      -  $      -    $      - 
                       ========    ========  ========  ========    ======== 
                                                                            
GAAP Income (loss)                                                          
 from continuing                                                            
 operations            $    (98)   $    131  $   (175) $    (53)   $      2 
  PPA effects               (66)        (65)      (73)     (273)       (301)
  Restructuring             (98)         (4)      (59)     (111)        (90)
  Other incidentals         (12)          5        (9)      (36)        (62)
  Other adjustments         (66) 1)      37      (102)     (125) 1)     (23)
                       --------    --------  --------  --------    -------- 
Non-GAAP Income (loss)                                                      
 from continuing                                                            
 operations            $    144    $    158  $     68  $    492    $    478 
                       ========    ========  ========  ========    ======== 
                                                                            
GAAP Income (loss) on                                                       
 discontinued                                                               
 operations - net of                                                        
 tax                   $      -    $      -  $      2  $      1    $    434 
  Other adjustments           -           -         2         1         434 
                       --------    --------  --------  --------    -------- 
Non-GAAP Income (loss)                                                      
 from discontinued                                                          
 operations            $      -    $      -  $      -  $      -    $      - 
                       ========    ========  ========  ========    ======== 
                                                                            
GAAP Net income (loss)                                                      
 attributable to                                                            
 stockholders          $   (116)   $    115  $   (182) $   (115)   $    390 
  PPA effects               (66)        (65)      (73)     (273)       (301)
  Restructuring             (98)         (4)      (59)     (111)        (90)
  Other incidentals         (12)          5        (9)      (36)        (62)
  Other adjustments         (66)         37      (100)     (124)        411 
                       --------    --------  --------  --------    -------- 
Non-GAAP Net income                                                         
 (loss) attributable                                                        
 to stockholders       $    126  2)$    142  $     59  $    429  2)$    432 
                       ========    ========  ========  ========    ======== 
                                                                            
  GAAP Weighted                                                             
   average shares -                                                         
   diluted              248,505     253,060   247,586   248,064     248,812 
    Non-GAAP                                                                
     Adjustment           5,474           -     2,329     5,007       4,086 
                       --------    --------  --------  --------    -------- 
  Non-GAAP Weighted                                                         
   average shares -                                                         
   diluted              253,979     253,060   249,915   253,071     252,898 
                       ========    ========  ========  ========    ======== 
                                                                            
GAAP Diluted net                                                            
 income (loss)                                                              
 attributable to                                                            
 stockholders per                                                           
 share                 $  (0.47)   $   0.45  $  (0.73) $  (0.46)   $   1.57 
Non-GAAP Diluted net                                                        
 income (loss)                                                              
 attributable to                                                            
 stockholders per                                                           
 share                 $   0.50    $   0.56  $   0.24  $   1.70    $   1.71 
                                                                            
--------------------------------------------------------------------------- 
                                                                            
1) Includes: During 4Q12: Foreign exchange gain on debt: $31 million; Loss  
 on extinguishment of long-term debt: ($114) million; Other financial       
 expense: ($15) million; Results relating to equity-accounted investees:    
 $15 million; and difference between book and cash income taxes: $17        
 million; for the full year 2012: Other adjustments Cost of Revenue $46     
 million; Foreign exchange gain on debt: $28 million; Loss on               
 extinguishment of long-term debt: $(161) million; Other financial expense: 
 $(38) million; Results relating to equity-accounted investees: $(27)       
 million; and difference between book and cash income taxes: $27 million.   
                                                                            
2) During 4Q12: Includes stock based compensation expense of $16 million;   
 for the full year 2012: Includes stock based compensation expense of $48   
 million. Stock based compensation expense of $4 million, which resulted    
 from a modification, is not included in the full year 2012 non-GAAP        
 results.                                                                   
                                                                            
                                                                            
                                                                            
NXP Semiconductors                                                          
Table 6: Adjusted EBITDA (unaudited)                                        
                                                                            
----------------------------------------------------------------------------
                                                                            
                                                                            
($ in millions)              Three Months Ended              Full year      
                      -------------------------------  ---------------------
                       Dec 31,    Sept 30,   Dec 31,                        
                         2012       2012       2011       2012       2011   
                      ---------  ---------  ---------  ---------  ----------
                                                                            
Net Income            $     (98) $     131  $    (173) $     (52) $      436
  Income (loss) on                                                          
   discontinued                                                             
   operations                 -          -          2          1         434
                      ---------  ---------  ---------  ---------  ----------
Income (loss) from                                                          
 continuing                                                                 
 operations           $     (98) $     131  $    (175) $     (53) $        2
                      =========  =========  =========  =========  ==========
                                                                            
Reconciling items to                                                        
 EBITDA                                                                     
  Financial (income)                                                        
   expense                  153         33        165        437         257
  Benefit (provision)                                                       
   for income taxes          (7)         6          2          1          21
  Depreciation               63         59         78        247         290
  Amortization               69         69         73        286         301
                      ---------  ---------  ---------  ---------  ----------
EBITDA                $     180  $     298  $     143  $     918  $      871
                      =========  =========  =========  =========  ==========
                                                                            
Reconciling items to                                                        
 adjusted EBITDA                                                            
  Results of equity-                                                        
   accounted                                                                
   investees                (15)        (2)        15         27          77
  Restructuring 1)           98          3         55        109          85
  Other incidental                                                          
   items 1)                  11         (5)         8         34          61
  Other adjustments           -          -          -        (46)          -
                      ---------  ---------  ---------  ---------  ----------
Adjusted EBITDA       $     274  $     294  $     221  $   1,042  $    1,094
                      =========  =========  =========  =========  ==========
                                                                            
Trailing twelve month                                                       
 adjusted EBITDA      $   1,042  $     989  $   1,094  $   1,042  $    1,094
                                                                            
----------------------------------------------------------------------------
                                                                            
                                                                            
1) Excluding depreciation property, plant and equipment related to:         
                                                                            
     Restructuring            -          1          4          2           5
     Other incidental                                                       
      items                   1          -          1          2           1

For further information, please contact: Investors: Jeff Palmer jeff.palmer@nxp.com +1 408 518 5411

Media: Lieke de Jong-Tops lieke.de.jong-tops@nxp.com +31(0)40 272 5202

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