Slide 1: STMicroelectronics Q4 & FY 2020 Financial Results
STMicroelectronics Q4 & FY 2020 Financial Results January 28, 2021
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 were $3.24B, up 21.3% on a sequential basis, 580 bps above the high end of our outlook range. Our engaged customer programs in Personal Electronics, as well as continuous acceleration in demand especially of Automotive products and Microcontrollers, were the main factors th
Slide 4: Our strategy stems from key long-term enablers
Our strategy stems from key long-term enablers Smart Mobility Power & Energy Internet of Things & 5G ST provides innovative solutions ST technology and solutions ST provides sensors, embedded to help our customers enable customers to increase energy processing solutions, connectivity, make driving s
Slide 5: FY 2020 Market dynamics
FY 2020 Market dynamics Communications equipment, Automotive Industrial Personal electronics computers & peripherals 5
Slide 6: ST transformation: growth and resilience
ST transformation: growth and resilience Growth Resilience US$M FY15 FY16 FY17 FY18 FY19 FY20 ST Revenues 6,897 6,973 8,347 9,664 9,556 10,219 Served Market (SAM) Y/Y -1% 4% 13% 10% Flat +2.4%* ST Revenues Y/Y -6.8% 1.1% 19.7% 15.8% -1.1% +6.9% Gross Margin 33.8% 35.3% 39.2% 40.0% 38.7% 37.1% Operat
Slide 7: Q4 2020 Financial highlights
Q4 2020 Financial highlights Revenues = $3.24B Operating Margin = 20.3% 3.5 25% 3.0 20% 2.5 15% 2.0 10% 1.5 5% Q419 Q320 Q420 Q419 Q320 Q420 Gross Margin = 38.8% Net Income = $582M 600 40% 38% 400 36% 34% 200 32% 30% 0 Q419 Q320 Q420 Q419 Q320 Q420 7
Slide 8: FY 2020 Financial highlights
FY 2020 Financial highlights Revenues = $10.22B Operating Margin = 12.9% 11.0 14% 10.0 13% 9.0 12% 8.0 7.0 11% 6.0 10% FY19 FY20 FY19 FY20 Gross Margin = 37.1% Net Income = $1.1B 40% 1.2 38% 1.0 36% 34% 0.8 32% 30% 0.6 FY19 FY20 FY19 FY20 8
Slide 9: FY 2020 Revenues
FY 2020 Revenues % by product group % by shipment location % by region of origin Americas Americas Asia 12% Pacific Others 34% EMEA 42% Microcontrollers & 0.1% 19% Automotive & Digital ICs Group 69% Discrete Group (MDG) (ADG) Asia 24% Pacific 30% 32% EMEA % by customer type 38% Distribution 27% 49%
Slide 10: We serve more than 100,000 customers
We serve more than 100,000 customers Top 10 Customers* 2020 Apple Intel-Mobileye Bosch Nintendo Top Continental Samsung 10 HP Seagate Huawei Tesla Globally Unified worldwide account management tailored to each account to provide global Managed coverage and service Accounts Standard process, reportin
Slide 11: Revenues
Revenues Q420 Revenues = $3.24B FY20 Revenues = $10.22B 3.5 11.0 3.0 10.0 2.5 9.0 2.0 8.0 1.5 7.0 1.0 6.0 Q419 Q120 Q220 Q320 Q420 FY19 FY20 Q420 revenues up 17.5% Y/Y FY20 revenues up 6.9% Y/Y • The Company recorded higher sales in all product groups except the • Net revenues progressively strength
Slide 12: Gross margin
Gross margin Q420 Gross Margin = 38.8% FY20 Gross Margin = 37.1% 40% 40% 38% 38% 36% 36% 34% 34% 32% 32% Q419 Q120 Q220 Q320 Q420 FY19 FY20 Q420 Gross Margin FY20 Gross Margin • Down 50 bps Y/Y mainly due to usual price pressure and • Down 160 bps Y/Y principally reflecting higher unsaturation negat
Slide 13: Net operating expenses
Net operating expenses* FY20 Quarterly Net Operating Expenses Average= $614M** 750 35% 2.7 35% 600 30% 2.1 30% 450 25% 1.5 25% 300 20% 0.9 20% 150 0 15% 0.3 15% -150 10% -0.3 10% Q419 Q120 Q220 Q320 Q420** FY19 FY20** SG&A R&D OIE, net Net OPEX % SG&A R&D OIE, net Net OPEX % Q420 Net Operating Expen
Slide 14: Q4 2020 Product group results
Q4 2020 Product group results Automotive & Discrete Analog, MEMS & Sensors Microcontrollers & Digital ICs (ADG) (AMS) (MDG) Revenues = $953M Revenues = $1,419M Revenues = $859M Operating Margin = 9.9% Operating Margin = 28.3% Operating Margin = 20.3% 1,500 30% 1,500 30% 1,500 30% 1,250 1,250 1,250 1
Slide 15: FY 2020 Product group results
FY 2020 Product group results Automotive & Discrete Analog, MEMS & Sensors Microcontrollers & Digital ICs (ADG) (AMS) (MDG) Revenues = $3.28B Revenues = $3.89B Revenues = $3.03B Operating Margin = 5.5% Operating Margin = 20.8% Operating Margin = 16.6% 4.0 25% 4.0 25% 4.0 25% 20% 20% 20% 3.0 3.0 3.0
Slide 16: FY 2020 Financial flexibility
FY 2020 Financial flexibility Net Cash From Operating Free Cash Flow* = $627M Capex= $1.28B Activities = $2.09B 2.5 700 1.5 18% Capex / sales (%) 600 2.0 16% 500 1.0 4-year 1.5 400 14% average 300 1.0 12% 0.5 200 0.5 10% 100 0.0 0 0.0 8% FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 •
Slide 17: Solid capital structure
Solid capital structure ST is in a solid position from a capital, liquidity and balance sheet perspective $3.72B $3.53B In Q320 ST announced: • The early redemption of the outstanding $750M $2.74B $2.87B Convertible Bond due 2022. $2.62B • $1.5B dual-tranche offering of senior unsecured $2.07B conve
Slide 18: Q1 2021 Outlook
Q1 2021 Outlook Net revenues are expected to be $2.93B, decreasing 9.5% sequentially, plus or minus 350 basis points. Gross Margin of 38.5%, plus or minus 200 basis points. This outlook is based on an assumed effective currency exchange rate of approximately $1.20 = €1.00 for the 2021 first quarter
Slide 19: FY 2021 Plan
FY 2021 Plan We plan for solid revenue growth, outperforming the markets we serve. The broad, long-term trends in electronic systems that we are focused on, have accelerated during 2020 and are driving demand for our products. These trends are Smart Mobility, Power & Energy applications, and IoT & 5
Slide 20: FY 2021 Capital Investment
FY 2021 Capital Investment $1.8 - $2B CAPEX to meet the strong market demand and to advance our strategic initiatives PROBING, Investment includes the addition of capacity for our ASSEMBLY & TESTING existing Crolles 300mm fab, mix evolution for our most advanced 200mm fabs, Silicon Carbide capacity
Slide 21: Takeaways
Takeaways FY 2020 FY 2021 We returned to solid revenue growth, We are determined to continue to make ST outperforming the markets we serve. stronger. We are convinced that we have the right strategy and resources to do this - our balanced markets position, our focus on high growth We maintained our
Slide 22: Appendix
life.augmented
Slide 23: Historical financial performance
Historical financial performance 23 In US$M, except EPS Q119 Q219 Q319 Q419 FY19 Q120 Q220 Q320 Q420 FY20 Net Revenues 2,076 2,173 2,553 2,754 9,556 2,231 2,087 2,666 3,235 10,219 Gross Margin 39.4% 38.2% 37.9% 39.3% 38.7% 37.9% 35.0% 36.0% 38.8% 37.1% Operating Income 211 196 336 460 1,203 231 106
Slide 24: 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, marketable securities, restricted cash and short-term deposits, and our total financial debt includes
Slide 25: Thank you
Thank you © 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 o