Slide 1: STMicroelectronics Q1 2020 Financial Results
STMicroelectronics Q1 2020 Financial Results April 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 Q1 2020 • Net revenues at $2.23B up 7.5% year-over-year with operating margin up to 10.4% and net income up 7.9% to $192M; • On a sequential basis, revenues were 5% below the midpoint of our outlook: the COVID-19 outbreak and subsequent containment measures by governments brought challeng
Slide 4: Q1 2020 Financial highlights
Q1 2020 Financial highlights Revenues = $2.23B Operating Margin = 10.4% 3.0 20% 2.5 15% 2.0 10% 1.5 5% 1.0 0% Q119 Q419 Q120 Q119 Q419 Q120 Gross Margin = 37.9% Net Income = $192M 40% 400 38% 300 200 36% 100 34% 0 Q119 Q419 Q120 Q119 Q419 Q120 4
Slide 5: Q1 2020 Revenues
Q1 2020 Revenues % by product group % by shipment location % by region of origin Americas Americas Asia 13% Pacific Others 33% 0.1% 40% Analog, MEMS & Automotive & 22% Sensors Group Discrete Group 65% EMEA (AMS) (ADG) Asia 27% Pacific EMEA 38% 34% % by customer type 28% Distribution 25% 42% Top 10 O
Slide 6: Revenues
Revenues Q120 Revenues = $2.23B 3.0 Q120 revenues up 7.5% Y/Y • The Company recorded higher sales of Imaging, Analog, and Microcontrollers, partially offset by lower sales in Automotive, Power 2.5 Discrete and Digital; • Revenues to OEMs increased 22.5% and to Distribution decreased 2.0 21.4%. Q120
Slide 7: Gross Margin
Gross Margin Q120 Gross Margin = 37.9% Q120 Gross Margin 40% • Down 150 basis points Y/Y mainly impacted by price pressure and unsaturation charges, including COVID-19 38% workforce related restrictions; • Down 140 bps Q/Q; 36% • 10 bps below the mid-point of Company’s guidance as product mix and pr
Slide 8: Net Operating Expenses
Net Operating Expenses (*) Q120 Net Operating Expenses = $610M 650 35% Combined SG&A and R&D at $645M 30% • 28.9% of revenues. 600 25% 550 20% Q120 Net Operating Expenses at $610M 500 • Net of Other Income & Expense; 15% • Below what we anticipated when entering the quarter; 450 10% Q119 Q219 Q319 Q
Slide 9: Product Group results
Q1 2020 Product Group results Automotive & Discrete Analog, MEMS & Sensors Microcontrollers & Digital ICs (ADG) (AMS) (MDG) Revenues = $753M Revenues = $852M Revenues = $623M Operating Margin = 3.0% Operating Margin = 20.8% Operating Margin = 11.5% 1,250 30% 1,250 30% 1,250 30% 1,000 1,000 1,000 20%
Slide 10: Financial flexibility
Q1 2020 Financial flexibility Net Cash From Operating Free Cash Flow* = $113M Capex= $266M Activities = $399M 800 500 400 Capex / sales (%) 18% 400 16% 600 300 300 14% 400 200 200 12% 100 200 100 0 10% 0 -100 0 8% Q119 Q219 Q319 Q419 Q120 Q119 Q219 Q319 Q419 Q120 Q119 Q219 Q319 Q419 Q120 • Cash divi
Slide 11: Solid capital structure
Solid capital structure ST is in a solid position from a capital, liquidity and balance sheet perspective March 28 December 31 March 30 End of period (US$M) 2020 2019 2019 Total Liquidity 2,710 2,744 2,698 Total Financial Debt (2,042) (2,072) (2,188) Net Financial Position* 668 672 510 • New €500M f
Slide 12: Supply chain situation
Q1 2020 Supply chain situation In Q120, all countries where we operate decided to apply lockdown measures, creating operational & logistic challenges impacting revenues and resulting in higher unsaturation charges • We managed to keep all our manufacturing sites operational, at reduced workforce lev
Slide 13: Automotive highlights
Q1 2020 Automotive highlights ADG Won several sockets for automotive-grade ultrafast, Schottky & Silicon Carbide diodes for on-board-chargers at major Tier1s and OEMs Won designs for high-voltage silicon MOSFETs for inverters and charging ADG stations and two programs for Battery Management Systems
Slide 14: Industrial highlights
Q1 2020 Industrial highlights Announced many additions to the STM32 microcontroller portfolio: new MDG products in our low power and high performance MCU families and the Industrial world’s first LoRa® System on Chip Wins with high- and low-voltage silicon MOSFETs and Intelligent Power ADG Modules f
Slide 15: Personal Electronics highlights
Q1 2020 Personal Electronics highlights AMS Won designs in flagship smartphones with time-of-flight ranging sensors, Personal Electronics ambient-light, MEMS motion and water-proof pressure sensors Won designs with key market players for MEMS motion sensors for True AMS Wireless Stereo applications,
Slide 16: Communications Equipment, Computers & Peripherals highlights
Q1 2020 Communications Equipment, Computers & Peripherals highlights Received design wins with industrial grade 6-axis motion sensors at Communications Equipment, AMS major European and Asian customers for mobile infrastructure Computers & Peripherals applications Won designs at multiple top PC manu
Slide 17: Q2 2020 Outlook
Q2 2020 Outlook Net revenues are expected to be $2.0B, a decrease of 10.3% sequentially, plus or minus 350 basis points. Gross Margin of 34.6%, plus or minus 200 basis points. Our Q220 outlook is taking into account the declining demand environment, especially in Automotive, as well as the ongoing o
Slide 18: FY 2020 Business Continuity Plan
FY 2020 Business Continuity Plan FY20 sales and operating plan is based on our current view of the market, as well as on continuous customer interaction. In the framework of an already solid financial situation, it aims at further increasing our financial flexibility, acknowledging the short-term gl
Slide 19: Takeaways
Takeaways In response to COVID-19 pandemic, we will continue to ensure the health and safety of all our employees and to execute our business continuity plans, working with our customers, partners and the communities where we operate. We have a sales and operational plan for this challenging year, t
Slide 20: Appendix
kyy life.augmented
Slide 21: Historical Financial Performance
Historical Financial Performance 21 In US$M, except EPS Q119 Q219 Q319 Q419 FY19 Q120 Net Revenues 2,076 2,173 2,553 2,754 9,556 2,231 Gross Margin 39.4% 38.2% 37.9% 39.3% 38.7% 37.9% Operating Income 211 196 336 460 1,203 231 Operating Margin 10.2% 9.0% 13.1% 16.7% 12.6% 10.4% Net Income – Reported
Slide 22: 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 23: 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.