Slide 1: STMicroelectronics Q1 2023 Financial Results
STMicroelectronics Q1 2023 Financial Results April 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 $4.25B came in better than expected in Automotive and Industrial partially offset by lower revenues in Personal Electronics, Q1 • Gross margin of 49.7%, 170 bps above guidance mid-point mainly due to product mix in a price environment that remained favorable, 2023 • Net
Slide 4: Q1 2023 Revenues
Q1 2023 Revenues % by product group % by shipment location % by region of origin Americas Americas Asia 16% Pacific Others 37% 30% 0.1% Microcontrollers & Automotive & 28% 56% Digital ICs Group Discrete Group (MDG) (ADG) 33% EMEA Asia 32% Pacific EMEA 43% % by customer type 25% 39% Distribution 36%
Slide 5: Q1 2023 Financial highlights
Q1 2023 Financial highlights Revenues = $4.25B Operating Margin = 28.3% 4.5 30% 4.0 +19.8% 28% Y/Y 3.5 26% 3.0 24% 2.5 22% 2.0 20% Q122 Q422 Q123 Q122 Q422 Q123 Gross Margin = 49.7% Net Income = $1.04B 50% 1.4 48% 1.2 46% 1.0 44% 0.8 42% 40% 0.6 Q122 Q422 Q123 Q122 Q422 Q123 5
Slide 6: Q1 2023 Product group results
Q1 2023 Product group results Automotive & Discrete Analog, MEMS & Sensors Microcontrollers & Digital ICs (ADG) (AMS) (MDG) Revenues = $1,807M Revenues = $1,068M Revenues = $1,368M Operating Margin = 32.0% Operating Margin = 20.4% Operating Margin = 36.2% 2,000 40% 2,000 40% 2,000 40% 1,600 1,600 1,
Slide 7: Revenues
Revenues Q123 Revenues = $4.25B 4.50 4.00 Q123 revenues up 19.8% Y/Y • ADG and MDG revenues increased 43.9% and 13.2%, 3.50 respectively, while AMS slightly decreased 0.9%, • Revenues to OEMs and Distribution increased 17.5% and 24.0%, 3.00 respectively. Q123 revenues down 4.0% Q/Q 2.50 • 110 bps ab
Slide 8: Gross margin
Gross margin Q123 Gross Margin = 49.7% 50% 48% Q123 Gross Margin 46% • Up 300 bps Y/Y mainly due to product mix, favorable pricing, positive currency effects, net of hedging, partially 44% offset by higher manufacturing costs, • Up 220 bps Q/Q, 42% • 170 bps above the mid-point of the Company’s guid
Slide 9: Net operating expenses
Net operating expenses* Q123 Net Operating Expenses = $909M 950 25.0% 750 22.5% Q123 Combined SG&A and R&D at $900M 550 20.0% • 21.2% of revenues. 350 17.5% Q123 Net Operating Expenses at $909M 150 • 21.4% of revenues. -50 15.0% Q122 Q222 Q322 Q422 Q123 SG&A R&D OIE, net Net OPEX % 9 * Net Operating
Slide 10: Q1 2023 Financial flexibility
Q1 2023 Financial flexibility Net Cash From Operating Free Cash Flow* = $206M Capex = $1,090M Activities = $1,320M 1,800 800 1,200 30% Capex / sales (%) 1,500 1,000 600 25% 1,200 800 900 400 600 20% 600 400 200 15% 300 200 0 0 0 10% Q122 Q222 Q322 Q422 Q123 Q122 Q222 Q322 Q422 Q123 Q122 Q222 Q322 Q4
Slide 11: Solid capital structure
Solid capital structure $4.52B $4.52B ST is in a solid position from a capital, liquidity and $3.39B balance sheet perspective. $2.72B $2.66B $2.55B $1.80B $1.86B ST credit rating is well within investment grade $0.84B with Positive Outlook from S&P and Moody’s and a Stable Outlook from Fitch Q122 Q
Slide 12: Q1 2023 Automotive highlights
Q1 2023 Automotive highlights Wins with ACEPACK power modules and SiC MOSFETs for traction ADG inverter. Wins with silicon MOSFETs in battery management systems Design wins from multiple Electric Vehicle makers including our Stellar ADG automotive MCU for an on-board charging application Wins with o
Slide 13: Q1 2023 Industrial highlights
Q1 2023 Industrial highlights Wins with system solutions comprised of power discrete, power management, and STM32 MCUs in renewable energy applications ADG AMS Multi-product solution designs for smart meters and smart grid applications MDG Won sockets with intelligent power switches, motor drivers,
Slide 14: Q1 2023 Personal electronics highlights
Q1 2023 Personal electronics highlights AMS Won sockets in flagship smartphones, watches and other wearable devices with NFC controllers and secure element solutions, wireless MDG charging products, MEMS sensors, and time-of-flight ranging sensors 14
Slide 15: Q1 2023 Communications Equipment, Computers & Peripherals Highlights
Q1 2023 Communications Equipment, Computers & Peripherals Highlights AMS Products for LEO satellites, computer peripherals including secure solutions, time-of-flight sensors and MCUs, and ASICs for MDG communications infrastructure based on our proprietary technologies 15
Slide 16: 2023 Sustainability Report - Key points
2023 Sustainability Report - Key points On track with our program to be carbon neutral by 2027 and we further increased our global sourcing of electricity from renewable energy growing to 62% in 2022, from 51% in 2021. Recognized by environmental non-profit CDP (Carbon Disclosure Project) as a globa
Slide 17: Q2 2023 Outlook
Q2 2023 Outlook Net Revenues Q223 outlook, at the mid-point, is for net revenues of $4.28B, increasing 11.5% Y/Y and 0.8% Q/Q, plus or minus 350 bps. Gross Margin Gross margin is expected to be about 49.0%, plus or minus 200 bps. This outlook is based on an assumed effective currency exchange rate o
Slide 18: We confirm our plan to invest about $4.0B in CAPEX
FY 2023 We confirm our plan to invest about $4.0B in CAPEX. 80% of this amount is mainly related to the increase of our 300mm wafer and silicon carbide manufacturing capacity including, for silicon carbide, our substrate initiative. The remaining 20% is for R&D, laboratories, manufacturing maintenan
Slide 19: Takeaways
Takeaways We are operating in an environment with significantly different dynamics depending on the end markets we serve. Based on our leadership positions, strategic approach and current visibility, we anticipate in 2023 another year of revenue growth and profitability improvement toward our $20B+
Slide 20: Appendix
Appendix
Slide 21: Historical financial performance
Historical financial performance In US$M, except EPS Q122 Q222 Q322 Q422 FY22 Q123 Net Revenues 3,546 3,837 4,321 4,424 16,128 4,247 Gross Margin 46.7% 47.4% 47.6% 47.5% 47.3% 49.7% Operating Income 877 1,004 1,272 1,287 4,439 1,201 Operating Margin 24.7% 26.2% 29.4% 29.1% 27.5% 28.3% Net Income – R
Slide 22: 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 23: © STMicroelectronics - All rights reserved. ST logo is a trademark or a registered
© 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