GlobalFoundries Inc. · NASDAQ:GFS
GlobalFoundries — Q3 2023 Earnings Presentation
21 slides from GlobalFoundries's earnings presentation, Nov 7, 2023
Slide 1: Third Quarter 2023 Financial Results
Third Quarter 2023 Financial Results (unaudited) November 7, 2023 1
Slide 2: Disclaimer
Disclaimer This presentation and the accompanying oral presentation include “forward-looking statements,” that reflect our current expectations and views of future events. These forward-looking statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Ac
Slide 3: Q3'23 Results
Q3'23 Results 3
Slide 4: Key Q3'23 Results
Key Q3'23 Results (Unaudited) Revenue Adjusted EBITDA & Margin Wafer Shipments Millions USD Millions USD 300mm equivalents (k) -11% -16% -10% 2,074 793 1,852 667 637 575 38.2% 39.1% 36.0% Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 Note: Adjusted EBITDA is a Non-IFRS measure which we define adjusted EBITDA
Slide 5: Key Recent Announcements
Key Recent Announcements The U.S. Department of GF expanded its world- GF announced its most Defense awarded GF a class global operations advanced RF technology, new 10-year contract for with official grand 9SW RFSOI, that will a supply of securely openings at its offer significant manufactured, U.S
Slide 6: Quarterly Revenue Trend
Quarterly Revenue Trend (Unaudited, Millions USD) 2,074 2,101 -11% 1,841 1,845 1,852 Y/Y Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 GlobalFoundries © 2023 All Rights Reserved 6
Slide 7: Adjusted Gross Margin Trend
Adjusted Gross Margin Trend (Unaudited) 29.9% 30.1% 29.6% -70 bps 28.5% 29.2% Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Note: Adjusted gross profit is a Non-IFRS measure which we define as gross profit for a particular period, adjusted for share-based compensation expense; adjusted gross margin is adjusted gros
Slide 8: Adjusted EBITDA Margins Trend
Adjusted EBITDA Margins Trend (Unaudited) 38.2% 39.1% (220) bps 35.6% 36.2% 36.0% Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Note: Adjusted EBITDA is a Non-IFRS measure which we define as net income (loss), excluding the impact of finance expense, finance income, income tax expense, depreciation, amortization, s
Slide 9: Q3'23 Financial Summary
Q3'23 Financial Summary (Unaudited, in millions USD, except per share data and wafer shipments) Year-over-year Sequential Q3'23 Q2'23 Q3'22 Q3'23 vs Q3'22 Q3'23 vs Q2'23 Net revenue $ 1,852 $ 1,845 $ 2,074 $ (222) (11)% $ 7 —% Gross profit 529 532 610 $ (81) (13)% $ (3) (1)% Gross margin 28.6 % 28.8
Slide 10: Q3'23 Revenue by End Market
(Unaudited, in millions USD) Q3'23 Revenue by End Market ((in millions USD) Year-over-year Sequential Q3'23 Q2'23 Q3'22 Q3’23 vs Q3’22 Q3’23 vs Q2’23 Smart Mobile Devices $779 $783 $954 $(175) (18)% $(4) (1)% Communications Infrastructure & Datacenter $156 $211 $368 $(212) (58)% $(55) (26)% Home and
Slide 11: Revenue Mix by End Market
Revenue Mix by End Market (Unaudited) 11% 10% Smart Mobile Devices 2% 2% 5% Communications Infrastructure & Datacenter 17% 42% 46% Q3'23 19% Q3'22 Home & Industrial IoT Automotive Personal Computing 20% 8% 18% Non-Wafer & Corporate Other GlobalFoundries © 2023 All Rights Reserved 11
Slide 12: Q4'23 Guidance
Q4’23 Guidance 12
Slide 13: Q4'23 Guidance
(1) Q4’23 Guidance (Unaudited, in millions USD except per share amounts) IFRS Share-Based Non-IFRS Adjusted(2) Compensation Net revenue $1,825 - $1,875 — — Gross Profit $487 - $531 $13- $15 $502 - $544 Gross Margin (mid-point)(3) 27.5% 28.3% Operating Profit $277 - $349 $40 - $50 $327 - $389 Operati
Slide 14: Appendix: Summary Financials and Reconciliations
Appendix: Summary Financials and Reconciliations 14
Slide 15: Statement of Operations
Statement of Operations (Unaudited, in millions USD except per share amounts) 2021 2022 2023 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Net revenue $ 1,700 $ 1,847 $ 1,940 $ 1,993 $ 2,074 $ 2,101 $ 1,841 $ 1,845 $ 1,852 Cost of revenue 1,400 1,463 1,471 1,455 1,464 1,479 1,326 1,313 1,323 Gross profit $ 300 $ 384 $
Slide 16: Statements of Financial Position
Statements of Financial Position (Unaudited, in millions USD) As of September 30, 2023 December 31, 2022 Assets: Cash and cash equivalents $ 1,880 $ 2,352 Receivables, prepayments and other 1,404 1,487 Marketable securities 1,014 622 Inventories 1,509 1,339 Current assets 5,807 5,800 Deferred tax as
Slide 17: Statement of Cash Flows
Statement of Cash Flows (Unaudited, in millions USD) Three Months Ended (in millions USD) September 30, 2023 September 30, 2022 Cash flows from operating activities: Net income $ 249 $ 336 Depreciation and amortization 366 395 Finance expense, net and other(1) 7 6 Deferred income taxes (4) 11 Other
Slide 18: IFRS to Non-IFRS Reconciliations
IFRS to Non-IFRS Reconciliations (Unaudited, in millions USD except per share amounts) 2021 2022 2023 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Net revenue $1,700 $1,847 $1,940 $1,993 $2,074 $2,101 $1,841 $1,845 $1,852 Gross profit $300 $384 $469 $538 $610 $622 $515 $532 $529 Gross profit margin 17.6% 20.8% 24.2%
Slide 19: Unaudited reconciliation of Net Income to Adjusted EBITDA
Unaudited reconciliation of Net Income to Adjusted EBITDA (Unaudited, in millions USD) 2021 2022 2023 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Net Income for the period $5 $43 $178 $264 $336 $668 $254 $237 $249 Depreciation and amortization 415 419 408 411 395 409 343 340 366 Finance expense 28 28 29 26 28 28 31
Slide 20: Financial Measures (Non-IFRS)
Financial Measures (Non-IFRS) In addition to the financial information presented in accordance with IFRS, this earnings presentation includes the following Non-IFRS metrics: adjusted gross profit, adjusted selling, general and administrative, adjusted research and development expense, adjusted opera
Slide 21: Thank you
For further information, please contact: Investor Relations ir@gf.com Thank you The information contained herein is the property of GlobalFoundries and/or its licensors. This document is for informational purposes only, is current only as of the date of publication and is subject to change by Global