Slide 1: STMicroelectronics Q3 2021 Financial Results
STMicroelectronics Q3 2021 Financial Results October 28, 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, substantially at the mid-point our business outlook range, were $3.20B, up 6.9% Q/Q and up 19.9% Y/Y. • The revenue performance was driven by strong global demand and by our engaged customer programs in Personal Electronics. This was partially offset by lower than expected
Slide 4: Q3 2021 Financial highlights
Q3 2021 Financial highlights Revenues = $3.20B Operating Margin = 18.9% 3.5 20% 3.0 15% 2.5 10% 2.0 5% 1.5 0% Q320 Q221 Q321 Q320 Q221 Q321 Gross Margin = 41.6% Net Income = $474M 500 42% 400 40% 38% 300 36% 200 34% 100 32% 0 Q320 Q221 Q321 Q320 Q221 Q321 4
Slide 5: 9M 2021 Financial highlights
9M 2021 Financial highlights Revenues = $9.20B Operating Margin = 16.7% 10.0 20% 15% 8.0 10% 6.0 5% 4.0 0% 9M20 9M21 9M20 9M21 Gross Margin = 40.4% Net Income = $1.25B 1.5 42% 40% 1.0 38% 36% 0.5 34% 32% 0.0 9M20 9M21 9M20 9M21 5
Slide 6: Q3 2021 Revenues
Q3 2021 Revenues % by product group % by shipment location % by region of origin Americas Americas Asia 11% Pacific Others 18% 32% EMEA Microcontrollers & 0.1% 45% Automotive & Digital ICs Group Discrete Group 71% (MDG) 23% (ADG) Asia 29% 31% Pacific EMEA % by customer type 40% Distribution 32% Top
Slide 7: Revenues
Revenues Q321 Revenues = $3.20B 3.50 Q321 revenues up 19.9% Y/Y • The Company recorded higher net sales in all product groups 3.00 except the RF Communications sub-group; • Revenues to OEMs and Distribution increased 9.9% and 48.6%, respectively. 2.50 Q321 revenues up 6.9% Q/Q 2.00 • Substantially i
Slide 8: Gross margin
Gross margin Q321 Gross Margin = 41.6% 45% Q321 Gross Margin 40% • Up 560 bps Y/Y mainly driven by improved product mix, manufacturing efficiencies, favorable pricing and lower unloading charges, partially offset by negative currency effects, net of hedging; 35% • Up 110 bps Q/Q; • 60 bps above the
Slide 9: Net operating expenses
Net operating expenses (*) Q321 Net Operating Expenses = $724M 800 35% 600 30% Combined SG&A and R&D at $757M 400 25% • 23.7% of revenues. 200 20% Net Operating Expenses at $724M 0 15% • 22.6% of revenues. -200 10% Q320 Q420** Q121 Q221 Q321 SG&A R&D OIE, net Net OPEX % * Net Operating Expenses: R&D
Slide 10: Q3 2021 Product group results
Q3 2021 Product group results Automotive & Discrete Analog, MEMS & Sensors Microcontrollers & Digital ICs (ADG) (AMS) (MDG) Revenues = $1,005M Revenues = $1,268M Revenues = $920M Operating Margin = 10.8% Operating Margin = 24.0% Operating Margin = 23.9% 1,500 30% 1,500 30% 1,500 30% 1,250 1,250 1,25
Slide 11: Q3 2021 Financial flexibility
Q3 2021 Financial flexibility Net Cash From Operating Free Cash Flow* = $420M Capex = $437M Activities = $895M 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% Q320 Q420 Q121 Q221 Q321 Q320 Q420 Q121 Q221 Q321 Q320 Q420 Q121 Q221 Q
Slide 12: Solid capital structure
Solid capital structure $4.25B $3.53B $3.46B $3.17B ST is in a solid position from a capital, liquidity $2.87B $2.66B and balance sheet perspective $1081M $662M $798M ST’s credit rating: investment grade with a Positive or Stable Outlook from Moody’s, S&P and Fitch Q320 Q221 Q321 Liquidity Debt Net
Slide 13: Q3 2021 Automotive highlights
Q3 2021 Automotive highlights Award a design for a Gen3 Silicon Carbide MOSFET for an Electric Automotive ADG Vehicle (EV) climate control compressor Won EV sockets for silicon MOSFETs, microcontrollers and VIPower in ADG Battery Management Systems, traction inverters, and EV battery packs Received
Slide 14: Q3 2021 Industrial highlights
Q3 2021 Industrial highlights Strengthened support for wireless design and Artificial intelligence with Industrial MDG additional tools that will help STM32 developers go faster ADG Won designs with Silicon Carbide transistors and modules, silicon MOSFETs, IGBTs, and diodes in various industrial app
Slide 15: Q3 2021 Personal Electronics highlights
Q3 2021 Personal Electronics highlights AMS Achieved wins in smartphones with motion sensors, ambient light sensors, Personal Electronics MDG time-of-flight ranging sensors for laser autofocus, wireless charging products, touch display controllers, and secure solutions AMS Received awards in accesso
Slide 16: Q3 2021 Communications Equipment, Computers & Peripherals Highlights
Q3 2021 Communications Equipment, Computers & Peripherals Highlights Communications Equipment, ADG Computers & Peripherals Awarded new sockets in an RF design for satellites Won designs with time-of-flight sensors for laptops, as well as many AMS MDG general purpose MCU designs in computers and peri
Slide 17: Q4 2021 Outlook
Q4 2021 Outlook Net Revenues Q421 outlook, at the mid-point, is for net revenues of $3.40B, growing 5.1% Y/Y and 6.3% Q/Q. Gross Margin Gross margin is expected to be about 43.0%, plus or minus 200 bps, representing Y/Y and Q/Q increases of 420 bps and 140 bps, respectively. This outlook is based on
Slide 18: FY 2021 Plan
FY 2021 Plan Based upon our year-to-date results and Q4 mid-point, we now expect 2021 net revenues of about $12.6B, at the high-end of the range we provided in July. This plan will translate into Y/Y growth of 23.3% at the mid-point. Drivers of this expected growth are the continuing strong dynamics
Slide 19: Takeaways
Takeaways Our results in Q321 and higher sales plan for Revenue growth stems from the expected FY21 reflect strong Y/Y revenue growth, continuation of strong dynamics in all the end translating into higher operating profitability, net markets we address and our engaged income and free cash flow. cus
Slide 20: Appendix
Appendix life-augmented
Slide 21: Historical financial performance
Historical financial performance 21 In US$M, except EPS Q120 Q220 Q320 9M20 Q420 FY20 Q121 Q221 Q321 9M21 Net Revenues 2,231 2,087 2,666 6,984 3,235 10,219 3,016 2,992 3,197 9,205 Gross Margin 37.9% 35.0% 36.0% 36.3% 38.8% 37.1% 39.0% 40.5% 41.6% 40.4% Operating Income 231 106 329 666 657 1,323 440
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 liquidity includes cash and cash equivalents, marketable securities, restricted cash and short-term deposits, and our total financial debt includes
Slide 23: © STMicroelectronics - All rights reserved. ST logo is a trademark or a registered
© 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