Slide 1: STMicroelectronics Q3 2020 Financial Results
STMicroelectronics Q3 2020 Financial Results October 22, 2020
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 $2.67B, up 27.8% on a sequential basis, above the high-end of our outlook range, due to significantly better than expected market conditions throughout the quarter. Demand for Automotive products, our engaged customer programs in Personal Q3 Electronics, as well as Mic
Slide 4: Q3 2020 Financial highlights
Q3 2020 Financial highlights Revenues = $2.67B Operating Margin = 12.3% 3.0 15% 2.5 10% 2.0 5% 1.5 1.0 0% Q319 Q220 Q320 Q319 Q220 Q320 Gross Margin = 36.0% Net Income = $242M 400 40% 38% 300 36% 200 34% 100 32% 30% 0 Q319 Q220 Q320 Q319 Q220 Q320 4
Slide 5: 9M 2020 Financial highlights
9M 2020 Financial highlights Revenues = $6.98B Operating Margin = 9.5% 7.0 15% 6.0 10% 5.0 5% 4.0 0% 9M19 9M20 9M19 9M20 Gross Margin = 36.3% Net Income = $525M 40% 800 38% 600 36% 400 34% 200 32% 30% 0 9M19 9M20 9M19 9M20 5
Slide 6: Q3 2020 Revenues
Q3 2020 Revenues % by product group % by shipment location % by region of origin Americas Americas Asia 11% Pacific Others 36% 40% EMEA 19% Microcontrollers & 0.1% Automotive & Digital ICs Group Discrete Group 70% (MDG) (ADG) Asia 24% Pacific 31% 32% EMEA % by customer type 37% Distribution 26% 51%
Slide 7: Revenues
Revenues Q320 Revenues = $2.67B 3.0 Q320 revenues up 4.4% Y/Y 2.5 • The Company recorded higher sales in Microcontrollers, RF Communications, MEMS and Analog, partially offset by lower sales in Automotive, Imaging and Power Discrete; 2.0 • Revenues to OEMS increased 7.5%, offset in part by a decreas
Slide 8: Gross margin
Gross margin Q320 Gross Margin = 36.0% 40% 38% Q320 Gross Margin • Down 190 bps Y/Y mainly due to price pressure and 36% unsaturation charges; • Up 100 bps Q/Q; 34% • Aligned with the mid-point of the Company’s guidance; • Includes about 140 bps of unsaturation charges. 32% Q319 Q419 Q120 Q220 Q320
Slide 9: Net operating expenses (*)
Net operating expenses (*) Q320 Net Operating Expenses = $628M 650 35% Combined SG&A and R&D at $652M • 24.5% of revenues. 30% 600 25% 550 Q320 Net Operating Expenses at $628M 20% • We continue to manage operating expenses in alignment 500 with our R&D, sales & marketing programs and 15% transformat
Slide 10: Q3 2020 Product group results
Q3 2020 Product group results Automotive & Discrete Analog, MEMS & Sensors Microcontrollers & Digital ICs (ADG) (AMS) (MDG) Revenues = $851M Revenues = $997M Revenues = $815M Operating Margin = 5.8% Operating Margin = 17.5% Operating Margin = 17.4% 1,250 30% 1,250 30% 1,250 30% 1,000 1,000 1,000 20%
Slide 11: Q3 2020 Financial flexibility
Q3 2020 Financial flexibility Net Cash From Operating Free Cash Flow* = $(25)M Capex= $319M Activities = $385M 800 500 400 Capex / sales (%) 18% 400 16% 600 300 300 14% 400 200 200 12% 100 200 100 0 10% 0 -100 0 8% Q319 Q419 Q120 Q220 Q320 Q319 Q419 Q120 Q220 Q320 Q319 Q419 Q120 Q220 Q320 Free Cash
Slide 12: Solid capital structure
Solid capital structure ST is in a solid position from a capital, liquidity and balance sheet perspective September 26 June 27 September 28 End of period (US$M) 2020 2020 2019 Total Liquidity 3,527 2,621 2,538 Total Financial Debt (2,865) (2,051) (2,190) Net Financial Position* 662 570 348 • Unutili
Slide 13: $1.5B Convertible Bond offering in July 2020
$1.5B Convertible Bond offering in July 2020 To strengthen our capital structure and further enhance our financial flexibility • Senior unsecured bonds convertible into ST ordinary shares; • ST can satisfy the conversion rights either in cash or shares or a combination of the two, at its choice; • L
Slide 14: Q3 2020 Automotive highlights
Q3 2020 Automotive highlights ADG New design wins for Silicon Carbide MOSFETs - in applications such as on-board chargers for electric vehicles Wins with MDmesh MOSFETs, low-voltage transistors, VIPower products ADG and ultrafast & silicon carbide diodes for car electrification Won a power-supply pl
Slide 15: Q3 2020 Industrial highlights
Q3 2020 Industrial highlights MDG Acquisitions of Riot Micro, Bespoon and SOMOS Semiconductor to Industrial further strengthen wireless connectivity MDG STM32 Ecosystem development: Machine learning tools from a partner to support AI deployment & higher performance top end microcontrollers Received
Slide 16: Q3 2020 Personal Electronics highlights
Q3 2020 Personal Electronics highlights Present in Samsung Galaxy Note20 and Note20 Ultra with MEMS AMS pressure sensors, inertial measurement units, & EEPROM. The Note 20 Personal Electronics MDG Ultra also includes ST’s multi-zone direct Time-of-Flight. AMS Wins in smartphones with wireless chargi
Slide 17: Q3 2020 Communications Equipment, Computers & Peripherals Highlights
Q3 2020 Communications Equipment, Computers & Peripherals Highlights Win with our new SmartGaN Gallium Nitride (GaN) based-product in a Communications Equipment, AMS communication infrastructure application Computers & Peripherals Captured awards for multiple RF-CMOS ASICs, for our new STM32 MDG mic
Slide 18: Q4 2020 Outlook
Q4 2020 Outlook Net revenues are expected to be $2.99B, a growth of 12.0% sequentially, plus or minus 350 basis points. All product groups are expected to grow, except the RF Communications sub-group. Gross Margin of 38.5%, plus or minus 200 basis points. This outlook is based on an assumed effectiv
Slide 19: FY 2020 Sales and operating plan
FY 2020 Sales and operating plan For the full year, we now expect net revenues at the mid-point to be about $9.97B, translating into 4.3% year-over-year growth. • Based upon this updated plan, we expect to report a double-digit operating margin performance. • We are maintaining our CAPEX plan for 20
Slide 20: Takeaways
Takeaways In response to the global COVID-19 pandemic, we will continue to ensure both the ongoing health and safety of our employees and the business continuity of our business operations for our customers. These priorities remain of upmost importance for us. ST fundamentals are solid. The strategi
Slide 21: Appendix
life.augmented
Slide 22: Historical financial performance
Historical financial performance 22 In US$M, except EPS Q119 Q219 Q319 9M19 Q419 FY19 Q120 Q220 Q320 9M20 Net Revenues 2,076 2,173 2,553 6,802 2,754 9,556 2,231 2,087 2,666 6,984 Gross Margin 39.4% 38.2% 37.9% 38.4% 39.3% 38.7% 37.9% 35.0% 36.0% 36.3% Operating Income 211 196 336 743 460 1,203 231 1
Slide 23: Appendix
Appendix • Net financial position (non-U.S. GAAP measure): represents the difference between our total liquidity and our total financial debt. Our total financial resources include cash and cash equivalents, marketable securities, restricted cash and short-term deposits, and our total financial debt
Slide 24: Thank you
Thank you © STMicroelectronics - All rights reserved. The STMicroelectronics corporate logo is a registered trademark of the STMicroelectronics group of companies. All other names are the property of their respective owners.