Slide 1: STMicroelectronics Q1 2024 Financial Results
STMicroelectronics Q1 2024 Financial Results April 25, 2024
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 $3.47B decreased 18.4% Y/Y and 19.1% Q/Q. Gross margin was 41.7%. Q1 • Revenues and gross margin both came in below the mid-point of our business outlook range, driven by lower revenues in Automotive 2024 and Industrial, partially offset by higher revenues in Personal El
Slide 4: Q1 2024 Financial highlights
Q1 2024 Financial highlights Revenues = $3.47B Operating Margin = 15.9% 4.5 30% 4.2 25% 3.9 20% 3.6 -18.4% 15% 3.3 Y/Y 3.0 10% Q123 Q423 Q124 Q123 Q423 Q124 Gross Margin = 41.7% Net Income = $513M 50% 1,200 48% 900 46% 600 44% 42% 300 40% 0 Q123 Q423 Q124 Q123 Q423 Q124 4
Slide 5: Q1 2024 Revenues dynamic
Q1 2024 Revenues dynamic % by reportable segments % by end market Digital ICs and RF Products (D&RF) Others Communications equipment & -2.1%Y/Y computer peripherals -23.8%Q/Q - ~10%Y/Y 0.1% Analog products, -15% Q/Q 11% MEMS and 14% Sensors (AM&S) Automotive -13.1%Y/Y 35% Personal - ~ 2%Y/Y -14.2% Q
Slide 6: Q1 2024 Revenues
Q1 2024 Revenues % by shipment location % by region of origin % by customer type Americas Asia Distribution Top 10 15% Americas Pacific OEMs 29% 30% 38% 45% Asia 28% Pacific 57% EMEA 33% 25% Other EMEA OEMs 6
Slide 7: Revenues
Revenues Q124 Revenues = $3.47B 4.50 Q124 revenues down 18.4% Y/Y • AM&S declined 13.1%, P&D 9.8%, MCU 34.4% and D&RF 2.1%, 4.00 • By end market, Industrial declined more than 40%, Personal Electronics ~ 13%, CECP ~ 10% and Automotive ~ 2%, 3.50 • Revenues to OEMs and Distribution decreased 11.5% an
Slide 8: Gross margin
Gross margin Q124 Gross Margin = 41.7% 50% 45% Q124 Gross Margin • Down 800 bps Y/Y, mainly due to the combination of 40% sales price and product mix, unused capacity charges and reduced manufacturing efficiencies, 35% • Down 380 bps Q/Q, • 60 basis points below the mid-point of ST’s guidance. 30% Q
Slide 9: Net operating expenses
Net operating expenses* Q124 Net Operating Expenses = $893M 30% 1100 900 700 25% Q124 Combined SG&A and R&D at $953M • 27.5% of revenues. 500 300 20% Q124 Net Operating Expenses at $893M 100 • 25.8% of revenues. -100 15% Q123 Q223 ** Q323 Q423 Q124 SG&A R&D OIE, net Net OPEX % * Net operating expens
Slide 10: Q1 2024 Reportable segments results
Q1 2024 Reportable segments results Analog products, MEMS and Sensors (AM&S) Power and discrete products (P&D) Revenues = $1,217M Revenues = $820M Operating Margin = 15.2% Operating Margin = 16.8% 1,600 40% 1,600 40% 1,200 30% 1,200 30% 800 20% 800 20% 400 10% 400 10% 0 0% 0 0% Q123 Q223 Q323 Q423 Q
Slide 11: Q1 2024 Financial flexibility
Q1 2024 Financial flexibility Net Cash From Operating Net Capex* = $967M Free Cash Flow* = $(134)M Activities = $859M 2,000 1,400 30% 800 Capex / sales (%) 1,200 1,600 600 1,000 25% 1,200 800 400 20% 600 200 800 400 15% 400 0 200 0 0 10% -200 Q123 Q223 Q323 Q423 Q124 Q123 Q223 Q323 Q423 Q124 Q123 Q2
Slide 12: Solid capital structure
Solid capital structure $6.08B $6.24B ST is in a very solid position from a capital, liquidity $4.52B and balance sheet perspective. $2.93B $3.11B $2.66B $3.16B $3.13B $1.86B ST credit rating is now BBB+ with Stable Outlook from S&P and Baa1 with Positive Outlook from Moody’s. Q123 Q423* Q124* Liqui
Slide 13: Automotive
Automotive Car electrification Car digitalization 13
Slide 14: Industrial
Industrial Embedded processing Power & Energy Industrial sensing 14
Slide 15: Personal electronics; Communications equipment & computer peripherals
Personal electronics Communications equipment & computer peripherals 15
Slide 16: 2024 Sustainability Report
2024 Sustainability Report Carbon Neutrality - Milestones -45% Total emissions Carbon neutral on scope 1 & 2 and partially scope 3 by 2027 scope 1,2* Sourcing 100% renewable energy by 2027 Compliance with the 1.5°C scenario by 2025 – recognized by SBTi 2018 2023 • 50% reduction of direct (scope 1) a
Slide 17: Q2 2024 Outlook
Q2 2024 Outlook Net Revenues Q224 outlook, at the mid-point, is for net revenues of $3.2B, decreasing Y/Y by 26% and decreasing Q/Q by 7.6%, plus or minus 350 bps. Gross Margin Gross margin is expected to be about 40%, +/- 200 bps. This outlook is based on an assumed effective currency exchange rate
Slide 18: FY 2024 revenue plan revised down
FY 2024 We revised down our plan for FY24 revenues to be in the range of $14B to $15B, representing a decline over 2023 of about 19% to 13%. This takes into consideration the accelerated inventory correction in Industrial as well as the deceleration phase starting in Automotive. We plan to maintain
Slide 19: Takeaways
Takeaways We continue to adapt our plans according to these asynchronous market dynamics - with a downcycle in Industrial, a deceleration in Automotive and a stabilization in Personal Electronics and Computer Peripherals. In parallel, we will continue to execute our strategic initiatives consistentl
Slide 20: Appendix
Appendix life-augmented
Slide 21: Historical financial performance
Historical financial performance US$M, except EPS Q123 Q223 Q323 Q423 FY23 Q124 Net Revenues 4,247 4,326 4,431 4,282 17,286 3,465 Gross Margin 49.7% 49.0% 47.6% 45.5% 47.9% 41.7% Operating Income 1,201 1,146 1,241 1,023 4,611 551 Operating Margin 28.3% 26.5% 28.0% 23.9% 26.7% 15.9% Net Income – Repo
Slide 22: Appendix
Appendix • Net financial position and Adjusted 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 secu
Slide 23: Historical Revenues and Operating Margin by Product Groups and Segments
Historical Revenues and Operating Margin by new Product Groups and Reportable Segments US$M Q123 Q223 Q323 Q423 FY23 Q124 Analog products, MEMS and Sensors (AM&S) Revenue 1,400 1,293 1,367 1,418 5,478 1,217 Operating Margin 23.9% 20.0% 21.8% 21.1% 21.7% 15.2% Power and discrete products (P&D) Revenu
Slide 24: FY 2023 Reportable segment revenues by end market
FY 2023 Reportable segment revenues by end market Analog products, MEMS and Sensors (AM&S) Power and discrete products (P&D) 2% 3% 9% 33% 31% 40% 18% 64% Automotive Industrial Personal electronics Communications equipment Microcontrollers (MCU) Digital ICs and RF Products (D&RF) & computer periphera
Slide 25: © STMicroelectronics - All rights reserved.
© 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