Slide 1: STMicroelectronics Q3 2023 Financial Results
STMicroelectronics Q3 2023 Financial Results October 26, 2023
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 $4.43B came in above the guidance mid-point, and Q3 gross margin of 47.6% was 10 bps above guidance. • Q3 net revenues increased 2.5% Y/Y. As expected, the revenue performance was driven mainly by continued growth in Automotive, Q3 partially offset by lower revenues in P
Slide 4: Q3 2023 Financial highlights
Q3 2023 Financial highlights Revenues = $4.43B Operating Margin = 28.0% 4.5 30% 4.4 +2.5% 28% Y/Y 4.3 26% 4.2 24% 4.1 22% 4.0 20% Q322 Q223 Q323 Q322 Q223 Q323 Gross Margin = 47.6% Net Income = $1.09B 50% 1.2 48% 1.0 46% 44% 0.8 42% 40% 0.6 Q322 Q223 Q323 Q322 Q223 Q323 4
Slide 5: 9M 2023 Financial highlights
9M 2023 Financial highlights Revenues = $13.0B Operating Margin = 27.6% 14.0 28% 13.0 26% 12.0 24% 11.0 10.0 22% 9M22 9M23 9M22 9M23 Gross Margin = 48.7% Net Income = $3.14B 50% 3.2 3.0 48% 2.8 46% 2.6 44% 2.4 9M22 9M23 9M22 9M23 5
Slide 6: Q3 2023 Revenues
Q3 2023 Revenues % by product group % by shipment location % by region of origin Americas Americas Asia Pacific Others 15% 29% 0.1% 38% Microcontrollers & Automotive & 28% 57% Digital ICs Group Discrete Group (MDG) (ADG) 33% EMEA Asia Pacific 32% EMEA 46% % by customer type 22% 33% Top 10 OEMs Distr
Slide 7: Revenues
Revenues Q323 Revenues = $4.43B 4.50 4.30 Q323 revenues up 2.5% Y/Y • ADG and MDG revenues increased 29.6% and 2.8%, 4.10 respectively, AMS revenues decreased 28.3%, • Revenues to OEMs and Distribution increased 2.1% and 3.4%, 3.90 respectively. 3.70 Q323 revenues up 2.4% Q/Q • 130 bps above the mid
Slide 8: Gross margin
Gross margin Q323 Gross Margin = 47.6% 50% 48% Q323 Gross Margin 46% • Stable Y/Y, as improved product mix was offset by higher manufacturing costs and unused capacity charges, 44% • Down 140 bps Q/Q, 42% • 10 bps above the mid-point of the Company’s guidance. 40% Q322 Q422 Q123 Q223 Q323 Q423E Actu
Slide 9: Net operating expenses
Net operating expenses* Q323 Net Operating Expenses = $868M 1150 25.0% 950 22.5% 750 Q323 Combined SG&A and R&D at $926M 550 20.0% • 20.9% of revenues. 350 17.5% Q323 Net Operating Expenses at $868M 150 • 19.6% of revenues. -50 15.0% Q322 Q422 Q123 Q223 ** Q323 SG&A R&D OIE, net Net OPEX % * Net ope
Slide 10: Q3 2023 Product group results
Q3 2023 Product group results Automotive & Discrete Analog, MEMS & Sensors Microcontrollers & Digital ICs (ADG) (AMS) (MDG) Revenues = $2,025M Revenues = $990M Revenues = $1,412M Operating Margin = 31.5% Operating Margin = 18.8% Operating Margin = 35.1% 2,100 40% 2,100 40% 2,100 40% 1,800 1,800 1,80
Slide 11: Q3 2023 Financial flexibility
Q3 2023 Financial flexibility Net Cash From Operating Net Capex* = $1,152M Free Cash Flow** = $707M Activities = $1,881M 2,000 1,200 30% 800 Capex / sales (%) 1,000 1,600 25% 600 800 1,200 600 20% 400 800 400 15% 200 400 200 0 0 10% 0 Q322 Q422 Q123 Q223 Q323 Q322 Q422 Q123 Q223 Q323 Q322 Q422 Q123
Slide 12: Solid capital structure
Solid capital structure $5.05B $4.56B ST is in a solid position from a capital, liquidity and $4.09B balance sheet perspective. $2.63B $2.65B $2.59B $1.91B $2.46B ST credit rating is well within investment grade $1.46B with Positive Outlook from S&P and Moody’s (BBB, Baa2 respectively). Fitch with s
Slide 13: Wide bandgap semiconductor momentum
Wide bandgap semiconductor momentum Volume production of PowerGaN devices Supported by galvanically isolated drivers Silicon Carbide 94 customers - 150 projects 2023 Silicon Carbide revenues ~$1.2B 13
Slide 14: Momentum in automotive digitalization
Momentum in automotive digitalization 14
Slide 15: ST Industrial Summit 2023 - Shenzhen, China
ST Industrial Summit 2023 - Shenzhen, China 15
Slide 16: Product & ecosystem expansion for industrial customers
Product & ecosystem expansion for industrial customers Edge AI tools & ecosystem Model NPU Graph conversion optimizer Memory Code STM32 Cube.AI optimization optimization Developer cloud Neural processor-enabled MCU 16
Slide 17: Expanding business in RF communications
Expanding business in RF communications BiCMOS Technology 17
Slide 18: Q4 2023 Outlook
Q4 2023 Outlook Net Revenues Q423 outlook, at the mid-point, is for net revenues of $4.3B, declining Y/Y and Q/Q by about 3%, plus or minus 350 bps. Gross Margin Gross margin is expected to be about 46.0%, +/- 200 bps. This outlook is based on an assumed effective currency exchange rate of approxima
Slide 19: FY 2023 Plan
FY 2023 Plan For FY 2023, the mid-point of our Q4 guidance translates into revenue growth of about 7.3% to $17.3B, with a gross margin of 48.1%. The $17.3B is consistent with the indicated range we provided late July. The $100M difference at mid-point relates mainly to the industrial end market in A
Slide 20: Appendix
Appendix life.augmented
Slide 21: Historical financial performance
Historical financial performance In US$M, except EPS Q122 Q222 Q322 9M22 Q422 FY22 Q123 Q223 Q323 9M23 Net Revenues 3,546 3,837 4,321 11,704 4,424 16,128 4,247 4,326 4,431 13,004 Gross Margin 46.7% 47.4% 47.6% 47.3% 47.5% 47.3% 49.7% 49.0% 47.6% 48.7% Operating Income 877 1,004 1,272 3,153 1,287 4,4
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, restricted cash, if any, short-term deposits, and marketable securities, and our total financial debt
Slide 23: © 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