Slide 1: STMicroelectronics Q2 2021 Financial Results
STMicroelectronics Q2 2021 Financial Results July 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 and gross margin came in at the high-end of our business outlook range, driven by continued strong demand globally • Net revenues were $2.99B, up 43.4% Y/Y. Sequentially net revenues decreased 0.8% due to normal seasonality in Personal Electronics Q2 • Gross margin of 40.5%
Slide 4: Q2 2021 Financial highlights
Q2 2021 Financial highlights Revenues = $2.99B Operating Margin = 16.3% 3.5 20% 3.0 15% 2.5 10% 2.0 5% 1.5 0% Q220 Q121 Q221 Q220 Q121 Q221 Gross Margin = 40.5% Net Income = $412M 500 42% 400 40% 38% 300 36% 200 34% 100 32% 0 Q220 Q121 Q221 Q220 Q121 Q221 4
Slide 5: H1 2021 Financial highlights
H1 2021 Financial highlights Revenues = $6.01B Operating Margin = 15.5% 7.0 20% 6.0 15% 5.0 10% 4.0 5% 3.0 0% H120 H121 H120 H121 Gross Margin = 39.7% Net Income = $776M 800 42% 40% 600 38% 400 36% 200 34% 32% 0 H120 H121 H120 H121 5
Slide 6: Q2 2021 Revenues
Q2 2021 Revenues % by product group % by shipment location % by region of origin Americas Americas Asia 13% Pacific Others 36% 37% 0.2% EMEA Microcontrollers & 21% Automotive & Digital ICs Group 66% Discrete Group (MDG) 27% (ADG) Asia Pacific 30% 36% EMEA % by customer type 34% Distribution 36% 42%
Slide 7: Revenues
Revenues Q221 Revenues = $2.99B 3.25 Q221 revenues up 43.4% Y/Y 2.75 • The Company recorded higher net sales in all product groups except the RF Communications sub-group; • Revenues to OEMs and Distribution increased 38.4% and 53.1%, 2.25 respectively. Q221 revenues down 0.8% Q/Q 1.75 • 300 bps abov
Slide 8: Gross margin
Gross margin Q221 Gross Margin = 40.5% 42% Q221 Gross Margin • Up 550 bps Y/Y mainly due to the full saturation of our 40% fabs compared with the high level of unloading charges last year, manufacturing efficiencies, favorable pricing 38% and improved product mix, partially offset by negative curren
Slide 9: Net operating expenses
Net operating expenses (*) Q221 Net Operating Expenses = $725M 800 35% 600 30% Combined SG&A and R&D at $767M 400 25% • 25.6% of revenues. 200 20% Net Operating Expenses at $725M 0 15% • 24.2% of revenues. -200 10% Q220 Q320 Q420** Q121 Q221 SG&A R&D OIE, net Net OPEX % * Net Operating Expenses: R&D
Slide 10: Q2 2021 Product group results
Q2 2021 Product group results Automotive & Discrete Analog, MEMS & Sensors Microcontrollers & Digital ICs (ADG) (AMS) (MDG) Revenues = $1,077M Revenues = $1,013M Revenues = $897M Operating Margin = 9.5% Operating Margin = 18.6% Operating Margin = 22.9% 1,500 30% 1,500 30% 1,500 30% 1,250 1,250 1,250
Slide 11: Q2 2021 Financial flexibility
Q2 2021 Financial flexibility Net Cash From Operating Free Cash Flow* = $125M Capex = $438M Activities = $602M 1,000 600 500 Capex / sales (%) 18% 500 800 400 16% 400 600 300 300 14% 200 400 200 12% 100 200 100 10% 0 0 -100 0 8% Q220 Q320 Q420 Q121 Q221 Q220 Q320 Q420 Q121 Q221 Q220 Q320 Q420 Q121 Q
Slide 12: Solid capital structure
Solid capital structure $4.16B $4.25B $2.97B $3.17B ST is in a solid position from a capital, liquidity $2.62B and balance sheet perspective $2.05B $1185M $1081M $570M ST’s credit rating: investment grade with a Positive or Stable Outlook from Moody’s, S&P and Fitch Q220 Q121 Q221 Liquidity Debt Net
Slide 13: Market and business dynamics
Market and business dynamics In Q221 we were again operating with a backdrop of strong demand, stretching the global supply chains. We have continued to work closely with our customers across all verticals and channels to adapt to this difficult allocation situation. At the same time, we were - and
Slide 14: Q2 2021 Automotive highlights
Q2 2021 Automotive highlights Added design wins for Silicon Carbide devices in key electrification sub- Automotive ADG systems such as DC-DC converters and on-board chargers Announced a strategic cooperation with Renault Group to supply ADG advanced power semiconductors for electric and hybrid vehic
Slide 15: Q2 2021 Industrial highlights
Q2 2021 Industrial highlights Acquired Cartesiam – a company specialized in software enabling Industrial MDG Artificial Intelligence on the edge MDG Design win for multiple STM32 products in a drone for home security Wins for Silicon Carbide, MOSFETs, and IGBTs in solar inverters, energy ADG storage
Slide 16: Q2 2021 Personal Electronics highlights
Q2 2021 Personal Electronics highlights AMS Wins in smartphones with motion sensors, time-of-flight ranging sensors, Personal Electronics MDG wireless charging products, touch display controllers, & secure solutions AMS Designs in accessories and wearables with light, motion & environmental MDG sens
Slide 17: Q2 2021 Communications Equipment, Computers & Peripherals Highlights
Q2 2021 Communications Equipment, Computers & Peripherals Highlights Communications Equipment, MDG Received multiple RF-SOI Front End Module awards, as well as several Computers & Peripherals RF ASIC projects for telecommunications infrastructure MDG Started production of a second-generation RF Fron
Slide 18: Q3 2021 Outlook
Q3 2021 Outlook Net Revenues Q321 outlook, at the mid-point, is for net revenues of $3.20B, increasing Y/Y and sequentially by 20.0% and 7.0%, respectively. Gross Margin Gross margin is expected to be about 41.0%, plus or minus 200 bps, representing a Y/Y increase of 500 bps. Sequentially, this repr
Slide 19: FY 2021 Plan
FY 2021 Plan We will now plan to drive the Company based on Drivers of this expected growth are the continued 2021 net revenues of $12.5B, plus or minus strong dynamics in all the end markets we $100M. This plan will translate into Y/Y growth of address and our engaged customer programs. 22.3% at th
Slide 20: Takeaways
Takeaways Q2 2021 FY 2021 For FY21, we are driving the Company with a plan based Q221 net revenues and gross margin came in at the high- on net revenues of $12.5B, plus or minus $100M. This end of our business outlook range. growth stems from the expected continuation of strong dynamics in all the e
Slide 21: Appendix
Appendix life.augmented
Slide 22: Historical financial performance
Historical financial performance 22 In US$M, except EPS Q120 Q220 H120 Q320 Q420 FY20 Q121 Q221 H121 Net Revenues 2,231 2,087 4,318 2,666 3,235 10,219 3,016 2,992 6,008 Gross Margin 37.9% 35.0% 36.5% 36.0% 38.8% 37.1% 39.0% 40.5% 39.7 Operating Income 231 106 337 329 657 1,323 440 489 929 Operating
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 liquidity includes cash and cash equivalents, marketable securities, restricted cash and short-term deposits, and our total financial debt includes
Slide 24: © 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