Slide 1: STMicroelectronics Q1 2021 Financial Results
STMicroelectronics Q1 2021 Financial Results April 29, 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 $3.02B, up 35.2% Y/Y. All product groups contributed to this growth, on continued acceleration of demand globally. • On a sequential basis, net revenues decreased 6.8%, 270 bps above the mid-point of our outlook. Q1 • Gross margin, at 39.0%, 50 bps above the mid-point
Slide 4: Q1 2021 Financial highlights
Q1 2021 Financial highlights Revenues = $3.02B Operating Margin = 14.6% 3.5 25% 3.0 20% 2.5 15% 2.0 10% 1.5 5% Q120 Q420 Q121 Q120 Q420 Q121 Gross Margin = 39.0% Net Income = $364M 600 40% 38% 400 36% 34% 200 32% 30% 0 Q120 Q420 Q121 Q120 Q420 Q121 4
Slide 5: Q1 2021 Revenues
Q1 2021 Revenues % by product group % by shipment location % by region of origin Americas Americas Asia 12% Pacific Others 33% 41% EMEA Microcontrollers & 0.1% 21% Automotive & Digital ICs Group 67% Discrete Group (MDG) (ADG) 26% Asia 29% Pacific 35% EMEA % by customer type 36% Distribution 33% 46%
Slide 6: Revenues
Revenues Q121 Revenues = $3.02B 3.25 Q121 revenues up 35.2% Y/Y • The Company recorded higher net sales in all product groups 2.75 except the RF Communications sub-group; • Revenues to OEMs and Distribution increased 21.4% and 76.2%, 2.25 respectively. Q121 revenues down 6.8% Q/Q 1.75 • 270 bps abov
Slide 7: Gross margin
Gross margin Q121 Gross Margin = 39.0% 40% Q121 Gross Margin 38% • Up 110 bps Y/Y mainly due to lower unloading charges, manufacturing efficiencies and improved product mix, partially offset by negative currency effects, net of 36% hedging; • Up 20 bps Q/Q; 34% • 50 bps above the mid-point of the Co
Slide 8: Net operating expenses
Net operating expenses (*) Q121 Net Operating Expenses = $735M 800 35% 600 30% Combined SG&A and R&D at $769M 400 25% • 25.5% of revenues. 200 20% Net Operating Expenses at $735M 0 15% • 24.4% of revenues. -200 10% Q120 Q220 Q320 Q420** Q121 SG&A R&D OIE, net Net OPEX % * Net Operating Expenses: R&D
Slide 9: Q1 2021 Product group results
Q1 2021 Product group results Automotive & Discrete Analog, MEMS & Sensors Microcontrollers & Digital ICs (ADG) (AMS) (MDG) Revenues = $1,043M Revenues = $1,083M Revenues = $886M Operating Margin = 8.2% Operating Margin = 17.2% Operating Margin = 19.4% 1,500 30% 1,500 30% 1,500 30% 1,250 1,250 1,250
Slide 10: Financial flexibility
Q1 2021 Financial flexibility Net Cash From Operating Free Cash Flow* = $261M Capex= $405M Activities = $682M 1,000 600 450 Capex / sales (%) 18% 500 800 16% 400 300 600 300 14% 200 400 12% 100 150 200 10% 0 0 -100 0 8% Q120 Q220 Q320 Q420 Q121 Q120 Q220 Q320 Q420 Q121 Q120 Q220 Q320 Q420 Q121 • Cas
Slide 11: Solid capital structure
Solid capital structure $4.16B $3.72B ST is in a solid position from a capital, $2.97B liquidity and balance sheet perspective $2.71B $2.62B $2.04B $1099M $1185M ST’s credit rating: investment grade with $668M a Positive or Stable Outlook from Moody’s, S&P and Fitch Mar 20 Dec 20 Mar 21 Liquidity De
Slide 12: Q1 2021 Automotive highlights
Q1 2021 Automotive highlights Automotive ADG Added design wins for Silicon Carbide devices in applications such as traction inverters and on-board chargers Wins with high voltage MOSFETs, VIPower products and 32-bit ADG automotive microcontrollers for car electrification applications Won sockets in
Slide 13: Q1 2021 Industrial highlights
Q1 2021 Industrial highlights Industrial MDG Launched the new extreme low-power STM32U5 series, with advanced performance and cybersecurity features MDG Announced new STM32 Bluetooth Low Energy devices and the first STM32 Wireless Microcontroller Module Design wins for Silicon Carbide, high voltage
Slide 14: Q1 2021 Personal Electronics highlights
Q1 2021 Personal Electronics highlights Personal Electronics AMS Wins in smartphones with motion sensors, multi-zone time-of-flight ranging MDG sensors, wireless charging, touch display controllers, and secure solutions AMS Designs in True Wireless Stereo headsets, smart watches, bracelets and MDG s
Slide 15: Communications Equipment, Computers & Peripherals Highlights
Q1 2021 Communications Equipment, Computers & Peripherals Highlights Communications Equipment, Received multiple RF-CMOS ASIC awards for telecommunication Computers & Peripherals MDG infrastructure AMS Wins with time-of-flight and motion sensors for laptops and Chromebooks 15
Slide 16: Q2 2021 Outlook
Q2 2021 Outlook Net Revenues are expected to be $2.9B, increasing Y/Y by 39%, at the mid-point, with growth across all product groups. This translates into a sequential decrease of 3.8%, at the mid-point, due to usual seasonality in Personal Electronics. Gross Margin of about 39.5%, plus or minus 20
Slide 17: FY 2021 Plan
FY 2021 Plan We will drive the Company based on a plan for FY21 revenues of $12.1B, plus or minus $150M. With this plan, which translates into Y/Y growth of 18.4% at the mid-point, we expect to outperform the markets we serve. This growth is expected to be driven by strong dynamics in all end market
Slide 18: Takeaways
Takeaways Q1 2021 FY 2021 ST showed its ability to adjust to the strong and sudden FY21 Plan is for revenues of $12.1B, plus or minus upswings in semiconductor demand. We did that working $150M. We plan to invest about $2.0B in CAPEX, to alongside our customers and partners and with the increase our
Slide 19: Appendix
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Slide 20: Historical financial performance
Historical financial performance 20 In US$M, except EPS Q120 Q220 Q320 Q420 FY20 Q121 Net Revenues 2,231 2,087 2,666 3,235 10,219 3,016 Gross Margin 37.9% 35.0% 36.0% 38.8% 37.1% 39.0% Operating Income 231 106 329 657 1,323 440 Operating Margin 10.4% 5.1% 12.3% 20.3% 12.9% 14.6% Net Income – Reporte
Slide 21: 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 22: 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