Investor Presentaiton

Operating highlights (Millions of dollars, except share and per-share amounts) Income statement Revenue Gross profit Operating expenses Operating profit Net income Earnings per share (diluted) 2016 2015 $ 13,370 $ 13,000 8,240 7,560 3,137 3,028 4,799 4,274 3,595 2,986 $ 3.48 $ 2.82 Cash flows statement Cash flow from operations (GAAP) $ 4,614 $ 4,397 Capital expenditures 531 551 Free cash flow (non-GAAP) 4,083 3,846 Shareholder return Dividends paid Shares repurchased $ 1,646 35.5M $ 1,444 51.4M Note: Free cash flow (non-GAAP) = Cash flow from operations less Capital expenditures. See page 21 for reconciliation. "It was a good year and we made solid progress in making TI a stronger company. In 2016, our revenue grew 3%. Gross margin and operating margin expanded to 61.6% and 35.9% of revenue, respectively. Most importantly, free cash flow increased to $4.1 billion, or 30.5% of revenue, reflecting the quality of our product portfolio and the efficiency of our manufacturing strategy." Rich Templeton, chairman, president and CEO 86% Analog & Embedded % of TI Revenue Growing at 8 percent CAGR, combined, since 2004 6% Free Cash Flow Growth Reflecting the ongoing strength of our business model $3.8B Returned to Shareholders Demonstrating our commitment to return cash to shareholders

View entire presentation