Slide 1: STMicroelectronics Q1 2022 Financial Results
STMicroelectronics Q1 2022 Financial Results April 27, 2022
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 and gross margin came in above the mid-point of our business outlook range. This performance, driven by strong demand in microcontrollers, was partially offset by temporarily reduced operations at our Shenzhen, China manufacturing facility due to the pandemic, Q1 which impa
Slide 4: Q1 2022 Revenues
Q1 2022 Revenues % by product group % by shipment location % by region of origin Americas Americas Asia 14% Pacific Others 38% 33% Microcontrollers & 0.1% EMEA 22% 64% Automotive & Digital ICs Group Discrete Group (MDG) 29% (ADG) Asia Pacific EMEA 34% 35% % by customer type 31% Distribution 34% 42%
Slide 5: Q1 2022 Financial highlights
Q1 2022 Financial highlights Revenues = $3.55B Operating Margin = 24.7% 4.0 25% 3.5 +17.6% 20% Y/Y 3.0 15% 2.5 2.0 10% Q121 Q421 Q122 Q121 Q421 Q122 Gross Margin = 46.7% Net Income = $747M 800 47% 700 43% 600 500 39% 400 35% 300 Q121 Q421 Q122 Q121 Q421 Q122 5
Slide 6: Product group results
Q1 2022 Product group results Automotive & Discrete Analog, MEMS & Sensors Microcontrollers & Digital ICs (ADG) (AMS) (MDG) Revenues = $1,256M Revenues = $1,087M Revenues = $1,198M Operating Margin = 18.7% Operating Margin = 22.6% Operating Margin = 34.0% 1,500 40% 1,500 40% 1,500 40% 1,250 1,250 1,
Slide 7: Revenues
Revenues Q122 Revenues = $3.55B Q122 revenues up 17.6% Y/Y 4.00 • The Company recorded higher sales in all product groups except, as expected, the Imaging sub-group; 3.50 • Revenues to OEMs and Distribution increased 14.4% and 24.0%, respectively. 3.00 Q122 revenues down 0.3% Q/Q • 130 basis points
Slide 8: Gross margin
Gross margin Q122 Gross Margin = 46.7% 50% 45% Q122 Gross Margin • Up 770 bps Y/Y principally due to improved product mix 40% and favorable pricing; • Up 150 bps Q/Q; 35% • 170 bps above the mid-point of the Company’s guidance, driven by improved product mix and favorable pricing. 30% Q121 Q221 Q321
Slide 9: Net operating expenses
Net operating expenses (*) Q122 Net Operating Expenses = $778M 1000 35% 800 30% 600 Combined SG&A and R&D at $835M 25% 400 • 23.5% of revenues. 20% 200 Net Operating Expenses at $778M 15% 0 • 21.9% of revenues. -200 10% Q121 Q221 Q321 Q421 Q122 SG&A R&D OIE, net Net OPEX % 9 * Net Operating Expenses
Slide 10: Financial flexibility
Q1 2022 Financial flexibility Net Cash From Operating Free Cash Flow* = $82M Capex = $840M Activities = $945M 1,000 500 1,000 25.0% Capex / sales (%) 400 800 22.5% 800 20.0% 600 300 600 17.5% 400 200 400 15.0% 200 100 200 12.5% 0 0 0 10.0% Q121 Q221 Q321 Q421 Q122 Q121 Q221 Q321 Q421 Q122 Q121 Q221
Slide 11: Solid capital structure
Solid capital structure $4.16B $3.52B $3.39B ST is in a solid position from a capital, liquidity and $2.97B balance sheet perspective. $2.54B $2.55B $1185M $977M $840M ST’s net financial position* of $840M includes a $107M increase in total financial debt in connection with the adoption on January 1
Slide 12: Automotive highlights
Q1 2022 Automotive highlights Earned design wins with ST power modules and with a module maker Automotive ADG using Gen3 SiC MOSFET technology EV Traction Inverter applications Won sockets with EV car makers and Tier1s for microcontrollers, silicon ADG MOSFETs, battery management solutions and ultra
Slide 13: Industrial highlights
Q1 2022 Industrial highlights Industrial MDG Ranked number 1 worldwide in general purpose microcontrollers in 2021 MDG Building momentum with our STM32 Microprocessor offer, with wins for lighting, programmable logic controllers and smart grid Awarded sockets with power discretes in various industri
Slide 14: Personal Electronics highlights
Q1 2022 Personal Electronics highlights Won sockets in new flagship smartphones with motion and environmental Personal Electronics AMS MDG sensors, time-of-flight ranging sensors, wireless charging products, touch display controllers, and secure solutions Awarded designs in smart watches and other w
Slide 15: Communications Equipment, Computers & Peripherals Highlights
Q1 2022 Communications Equipment, Computers & Peripherals Highlights Communications Equipment, MDG Continued to progress well with key customers engagements in cellular Computers & Peripherals and satellite communication infrastructure AMS Won socket with secure trusted platform solutions and time-o
Slide 16: Q2 2022 Outlook
Q2 2022 Outlook Net Revenues Q222 outlook, at the mid-point, is for net revenues of $3.75B, growing 25.3% Y/Y and 5.8% Q/Q. Gross Margin Gross margin is expected to be about 46.0%, plus or minus 200 bps. This outlook is based on an assumed effective currency exchange rate of approximately $1.13 = €1
Slide 17: FY 2022 Plan
FY 2022 Plan FY22 CAPEX Plan FY22 Revenue Plan We confirm our plan to invest about $3.4B Based on our strong customer demand and to $3.6B in CAPEX to further increase our our planned investments to increase production capacity and to support our capacity, we continue to drive the Company strategic i
Slide 18: Takeaways
Takeaways Our first quarter results and plans for 2022 underscore our tight focus on accelerating the execution of our strategy and value proposition. We are on track with our 2022 plans, both in terms of revenues and CAPEX investments to sustain our short and long-term growth objectives. We look fo
Slide 19: Appendix
Appendix
Slide 20: Historical financial performance
Historical financial performance 20 In US$M, except EPS Q121 Q221 Q321 Q421 FY21 Q122 Net Revenues 3,016 2,992 3,197 3,556 12,761 3,546 Gross Margin 39.0% 40.5% 41.6% 45.2% 41.7% 46.7% Operating Income 440 489 605 885 2,419 877 Operating Margin 14.6% 16.3% 18.9% 24.9% 19.0% 24.7% Net Income – Report
Slide 21: Appendix
Appendix • Net financial position (non-U.S. GAAP measure): Net Financial Position, a 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 ma
Slide 22: © 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