GlobalFoundries Inc. · NASDAQ:GFS
GlobalFoundries — Q2 2024 Earnings Presentation
22 slides from GlobalFoundries's earnings presentation, Aug 6, 2024
Slide 1: Second Quarter 2024 Financial Results
Second Quarter 2024 Financial Results(unaudited) August 6, 2024 1
Slide 2: Disclaimer
Disclaimer This presentation and the accompanying oral presentation include “forward-looking statements,” that reflect our current expectations and views of future events. These forward-looking statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Ac
Slide 3: Q2'24 Results
Q2'24 Results 3
Slide 4: Key Q2'24 Results
Key Q2'24 Results (Unaudited) Revenue Non-IFRS Adjusted EBITDA & Wafer Shipments Margin Millions USD Millions USD 300mm equivalents (k) -12% -9% -10% 1,845 1,632 668 610 573 517 36.2% 39.1% 37.4% Q2'23 Q2'24 Q2'23 Q2'24 Q2'23 Q2'24 Non-IFRS Adjusted EBITDA is a Non-IFRS measure. We define Non-IFRS A
Slide 5: Key Recent Announcements
Key Recent Announcements GF announced the BAE Systems and GF GF released its 2024 acquisition of Tagore announced a new Corporate Technology's collaboration across a Sustainability Report, proprietary and range of areas, which highlights the production-proven including advanced breadth of the Power
Slide 6: Quarterly Revenue Trend
Quarterly Revenue Trend (Unaudited, Millions USD) 1,845 1,852 1,854 -12% Y/Y 1,632 1,549 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 GlobalFoundries © 2024 All Rights Reserved 6
Slide 7: Non-IFRS Gross Margin Trend
Non-IFRS Gross Margin Trend (Unaudited) 29.6% 29.2% 29.0% -440 bps 26.1% 25.2% Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Non-IFRS gross profit is a Non-IFRS measure. We define Non-IFRS gross profit as gross profit adjusted for share-based compensation. Non-IFRS gross margin is Non-IFRS gross profit divided by r
Slide 8: Non-IFRS Adjusted EBITDA Margin Trend
Non-IFRS Adjusted EBITDA Margin Trend (Unaudited) 41.7% +120 bps 37.2% 37.4% 36.2% 36.0% Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Non-IFRS Adjusted EBITDA is a Non-IFRS measure. We define Non-IFRS Adjusted EBITDA as net income adjusted for the impact of finance expense, finance income, income tax expense (bene
Slide 9: Q2'24 Financial Summary
Q2'24 Financial Summary (Unaudited, in millions USD, except per share data and wafer shipments) Year-over-year Sequential Q2'24 Q1'24 Q2'23 Q2'24 vs Q2'23 Q2'24 vs Q1'24 Net revenue $ 1,632 $ 1,549 $ 1,845 $ (213) (12)% $ 83 5% Gross profit 395 393 532 $ (137) (26)% $ 2 1% Gross margin 24.2 % 25.4 %
Slide 10: Q2'24 Revenue by End Market
(Unaudited, in millions USD) Q2'24 Revenue by End Market ((in millions USD) Year-over-year Sequential Q2'24 Q1'24 Q2'23 Q2'24 vs Q2'23 Q2'24 vs Q1'24 Smart Mobile Devices $762 $680 $783 $(21) (3)% $82 12% Communications Infrastructure & Datacenter $154 $120 $211 $(57) (27)% $34 28% Home and Industri
Slide 11: Revenue Mix by End Market
Revenue Mix by End Market (Unaudited) 9 9% 11% Smart Mobile Devices Communications 17% 13% Infrastructure & Datacenter 42% 47% Home & Industrial IoT(1) Q2'24 Q2'23 Automotive 18% 22% Non-Wafer Revenue 9% 12% (1) Includes revenue from our Personal Computing end market of 3% for Q2'23. GlobalFoundries
Slide 12: Q3'24 Guidance
Q3’24 Guidance 12
Slide 13: Q3'24 Guidance
(1) Q3’24 Guidance (Unaudited, in millions USD except per share amounts) IFRS Share-Based Non-IFRS Adjusted(2) Compensation Net revenue $1,700 - $1,750 — — Gross profit $376 - $425 $13 - $15 $391 - $438 Gross margin (mid-point)(3) 23.2% 24.0% Operating profit $116 - $193 $45 - $55 $171 - $238 Operat
Slide 14: Appendix: Summary Financials and Reconciliations
Appendix: Summary Financials and Reconciliations 14
Slide 15: Statement of Operations
Statement of Operations (Unaudited, in millions USD except per share amounts) 2022 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Net revenue $ 1,940 $ 1,993 $ 2,074 $ 2,101 $ 1,841 $ 1,845 $ 1,852 $ 1,854 $ 1,549 $ 1,632 Cost of revenue 1,471 1,455 1,464 1,479 1,326 1,313 1,323 1,329 1,156 1,237 Gross pro
Slide 16: Statements of Financial Position
Statements of Financial Position (Unaudited, in millions USD) As of June 30, 2024 December 31, 2023 Assets: Cash and cash equivalents $ 2,184 $ 2,387 Receivables, prepayments and other 1,127 1,420 Marketable securities 1,183 1,033 Inventories 1,786 1,487 Current assets 6,280 6,327 Deferred tax asset
Slide 17: Statement of Cash Flows
Statement of Cash Flows (Unaudited, in millions USD) Three Months Ended June 30, 2024 June 30, 2023 Cash flows from operating activities: Net income $ 155 $ 237 Depreciation and amortization 402 340 Finance (income) expense, net and other (28) (14) Deferred income taxes 6 24 Other non-cash operating
Slide 18: IFRS to Non-IFRS Reconciliations
IFRS to Non-IFRS Reconciliations (Unaudited, in millions USD except per share amounts) 2022 2023 2024 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Net revenue $1,993 $2,074 $2,101 $1,841 $1,845 $1,852 $1,854 $1,549 $1,632 Gross profit $538 $610 $622 $515 $532 $529 $525 $393 $395 Gross margin 27.0% 29.4% 29.6% 28.0% 2
Slide 19: Unaudited Non-IFRS Adjusted Free Cash Flow
Unaudited Non-IFRS Adjusted Free Cash Flow Three Months Ended (in millions USD) June 30, 2024 March 31, 2024 June 30, 2023 Net cash provided by operating activities $402 $488 $546 Less: Purchase of property, plant and equipment and (101) (227) (400) intangible assets Add: Proceeds from government gr
Slide 20: Reconciliation of Net Income to Non-IFRS Adjusted EBITDA
Reconciliation of Net Income to Non-IFRS Adjusted EBITDA (Unaudited, in millions USD) 2022 2023 2024 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Net revenue $1,993 $2,074 $2,101 $1,841 $1,845 $1,852 $1,854 $1,549 $1,632 Net income for the period 264 336 668 254 237 249 278 134 155 Net income margin 13.2% 16.2% 31.8%
Slide 21: Financial Measures (Non-IFRS)
Financial Measures (Non-IFRS) In addition to the financial information presented in accordance with International Reporting Financial Standards ("IFRS"), this presentation and the accompanying oral presentation include the following Non-IFRS measures: Non-IFRS gross profit, Non-IFRS operating profit
Slide 22: Thank you
For further information, please contact: Investor Relations ir@gf.com Thank you The information contained herein is the property of GlobalFoundries and/or its licensors. This document is for informational purposes only, is current only as of the date of publication and is subject to change by Global