Slide 1: STMicroelectronics Q2 2023 Financial Results
STMicroelectronics Q2 2023 Financial Results July 27, 2023
Slide 2: Forward looking information
Forward looking information Some of the statements contained in this release that are not historical facts are statements of future expectations and other forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934
Slide 3: Highlights
Highlights • Net revenues of $4.33B came in above the guidance mid-point, and Q2 gross margin of 49.0% was in line with guidance. • Q2 net revenues increased 12.7% Y/Y. The revenue performance continued to be driven by growth in Automotive and Industrial, Q2 partially offset by lower revenues in Per
Slide 4: Q2 2023 Financial highlights
Q2 2023 Financial highlights Revenues = $4.33B Operating Margin = 26.5% 4.5 30% 4.0 +12.7% 28% Y/Y 3.5 26% 3.0 24% 2.5 22% 2.0 20% Q222 Q123 Q223 Q222 Q123 Q223 Gross Margin = 49.0% Net Income = $1.00B 50% 1.2 48% 1.0 46% 44% 0.8 42% 40% 0.6 Q222 Q123 Q223 Q222 Q123 Q223 4
Slide 5: H1 2023 Financial highlights
H1 2023 Financial highlights Revenues = $8.57B Operating Margin = 27.4% 9.0 30% 8.0 25% 7.0 20% 6.0 15% 5.0 10% H122 H123 H122 H123 Gross Margin = 49.3% Net Income = $2.05B 50% 2.2 48% 2.0 46% 1.8 44% 1.6 42% 1.4 40% 1.2 H122 H123 H122 H123 5
Slide 6: Q2 2023 Revenues
Q2 2023 Revenues % by product group % by shipment location % by region of origin Americas Americas Asia Pacific Others 16% 34% 0.1% 32% Microcontrollers & Automotive & 55% Digital ICs Group Discrete Group 29% (MDG) (ADG) 34% EMEA Asia Pacific 33% 45% EMEA % by customer type 22% 39% Distribution 36%
Slide 7: Revenues
Revenues Q223 Revenues = $4.33B 4.50 Q223 revenues up 12.7% Y/Y 4.00 • ADG and MDG revenues increased 34.4% and 13.0%, respectively, AMS revenues decreased 15.7%, 3.50 • Revenues to OEMs and Distribution increased 9.8% and 18.3%, respectively. 3.00 Q223 revenues up 1.9% Q/Q • 110 bps above the mid-p
Slide 8: Gross margin
Gross margin Q223 Gross Margin = 49.0% 50% 48% Q223 Gross Margin 46% • Up 160 bps Y/Y mainly due to product mix, favorable pricing, positive currency effects, net of hedging, partially 44% offset by higher manufacturing costs, • Down 70 bps Q/Q, 42% • In line with the mid-point of the Company’s guid
Slide 9: Net operating expenses
Net operating expenses* Q223 Net Operating Expenses = $973M 25.0% 950 750 22.5% Q223 Combined SG&A and R&D at $969M 550 • 22.4% of revenues. 20.0% 350 17.5% Q223 Net Operating Expenses at $973M 150 • 22.5% of revenues. -50 15.0% Q222 Q322 Q422 Q123 Q223 ** SG&A R&D OIE, net Net OPEX % * Net operatin
Slide 10: Q2 2023 Product group results
Q2 2023 Product group results Automotive & Discrete Analog, MEMS & Sensors Microcontrollers & Digital ICs (ADG) (AMS) (MDG) Revenues = $1,955M Revenues = $940M Revenues = $1,427M Operating Margin = 31.9% Operating Margin = 14.8% Operating Margin = 35.4% 2,000 40% 2,000 40% 2,000 40% 1,600 1,600 1,60
Slide 11: Q2 2023 Financial flexibility
Q2 2023 Financial flexibility Net Cash From Operating Capex = $1,072M Free Cash Flow* = $209M Activities = $1,311M 1,800 1,200 30% 800 Capex / sales (%) 1,500 1,000 25% 600 1,200 800 900 600 20% 400 600 400 15% 200 300 200 0 0 10% 0 Q222 Q322 Q422 Q123 Q223 Q222 Q322 Q422 Q123 Q223 Q222 Q322 Q422 Q1
Slide 12: Solid capital structure
Solid capital structure $4.52B $4.56B ST is in a solid position from a capital, liquidity and $3.44B balance sheet perspective. $2.66B $2.65B $2.52B $1.86B $1.91B ST credit rating is well within investment grade $0.92B with Positive Outlook from S&P and Moody’s and a Stable Outlook from Fitch Q222 Q
Slide 13: Strategic manufacturing programs
Strategic manufacturing programs ST and Sanan Optoelectronics have signed an agreement to create a 200mm silicon carbide (SiC) device manufacturing Joint Venture in Chongqing, China Conclusion of the three-party agreement among the State of France, GlobalFoundries, and ST, as approved by the Europea
Slide 14: Silicon carbide momentum
Silicon carbide momentum Silicon Carbide Galvanically Isolated gate drivers 90 customers - 140 projects complementing our SiC MOSFETs Cooperation with Airbus on aviation electrification 14
Slide 15: Momentum in automotive digitalization
Momentum in automotive digitalization 15
Slide 16: Edge AI highlights
Edge AI highlights STM32N6 16
Slide 17: Q3 2023 Outlook
Q3 2023 Outlook Net Revenues Q323 outlook, at the mid-point, is for net revenues of $4.38B, increasing 1.2% Y/Y and 1.1% Q/Q, +/- 350 bps. Gross Margin Gross margin is expected to be about 47.5%, +/- 200 bps. As anticipated in January, we are entering H223 with a significant change in product mix in
Slide 18: FY 2023 Plan
FY 2023 Plan Based on our visibility, we will drive the Company based on a plan for FY23 revenues of $17.4B, plus or minus $150M. This represents a growth of 8% over 2022. This plan includes a gross margin exceeding 48.0%. We confirm our 2023 capex plan of about $4.0B. 18
Slide 19: Appendix
Appendix life.augmented
Slide 20: Historical financial performance
Historical financial performance In US$M, except EPS Q122 Q222 H122 Q322 Q422 FY22 Q123 Q223 H123 Net Revenues 3,546 3,837 7,383 4,321 4,424 16,128 4,247 4,326 8,573 Gross Margin 46.7% 47.4% 47.1% 47.6% 47.5% 47.3% 49.7% 49.0% 49.3% Operating Income 877 1,004 1,881 1,272 1,287 4,439 1,201 1,146 2,34
Slide 21: Appendix
Appendix • Net financial position (non-U.S. GAAP measure): represents the difference between our total liquidity and our total financial debt. Our total liquidity includes cash and cash equivalents, restricted cash, if any, short-term deposits, and marketable securities, and our total financial debt
Slide 22: © STMicroelectronics - All rights reserved
© STMicroelectronics - All rights reserved. ST logo is a trademark or a registered trademark of STMicroelectronics International NV or its affiliates in the EU and/or other countries. For additional information about ST trademarks, please refer to www.st.com/trademarks. All other product or service