Slide 1: Q4 & FY 2021 Financial Results
STMicroelectronics Q4 & FY 2021 Financial Results January 27, 2022
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 • As we announced on January 7, 2022, net revenues and gross margin came in better than expected, primarily due to better than anticipated operations in an ongoing dynamic market. Q4 • Net revenues of $3.56B were up 9.9% Y/Y and 11.2% Q/Q, coming in 140 bps above the high-end of our busin
Slide 4: FY 2021 Market dynamics
FY 2021 Market dynamics Communications equipment, Automotive Industrial Personal electronics computers & peripherals 4
Slide 5: Q4 2021 Financial highlights
Q4 2021 Financial highlights Revenues = $3.56B Operating Margin = 24.9% 4.0 25% 3.5 +9.9% 20% Y/Y 3.0 15% 2.5 2.0 10% Q420 Q321 Q421 Q420 Q321 Q421 Gross Margin = 45.2% Net Income = $750M 800 46% 700 42% 600 500 38% 400 34% 300 Q420 Q321 Q421 Q420 Q321 Q421 5
Slide 6: FY 2021 Financial highlights
FY 2021 Financial highlights Revenues = $12.76B Operating Margin = 19.0% 14.0 20% 12.0 +24.9% 15% Y/Y 10.0 10% 8.0 5% 6.0 0% FY20 FY21 FY20 FY21 Gross Margin = 41.7% Net Income = $2.0B 2.0 42% 40% 1.5 38% 1.0 36% 34% 0.5 FY20 FY21 FY20 FY21 6
Slide 7: FY 2021 Revenues
FY 2021 Revenues % by product group % by shipment location % by region of origin Americas Americas Asia 12% Pacific Others 41% 34% Microcontrollers & 0.2% EMEA 20% Automotive & Digital ICs Group 68% Discrete Group (MDG) 25% (ADG) Asia Pacific 30% 34% EMEA % by customer type 36% Distribution 34% 45%
Slide 8: Revenues
Revenues Q421 Revenues = $3.56B FY21 Revenues = $12.76B 4.0 14.0 12.0 3.0 10.0 2.0 8.0 1.0 6.0 Q420 Q121 Q221 Q321 Q421 FY20 FY21 Q421 revenues up 9.9% Y/Y FY21 revenues up 24.9% Y/Y • The Company recorded higher net sales in all product groups except • The Y/Y growth reflects a strong performance a
Slide 9: Gross margin
Gross margin Q421 Gross Margin = 45.2% FY21 Gross Margin = 41.7% 46% 46% 44% 44% 42% 42% 40% 40% 38% 38% 36% 36% 34% 34% Q420 Q121 Q221 Q321 Q421 FY20 FY21 Q421 Gross Margin FY21 Gross Margin • Up 640 bps Y/Y principally driven by favorable pricing, improved • Up 460 bps Y/Y mainly due to manufactur
Slide 10: Net operating expenses
Net operating expenses* FY21 Quarterly Net Operating Expenses Average = $726M 900 35% 35% 3.3 750 30% 30% 600 2.4 450 25% 25% 300 1.5 20% 20% 150 15% 0.6 15% 0 -150 10% -0.3 10% Q420** Q121 Q221 Q321 Q421 FY20** FY21 SG&A R&D OIE, net Net OPEX % SG&A R&D OIE, net Net OPEX % Q421 Net Operating Expens
Slide 11: Q4 2021 Product group results
Q4 2021 Product group results Automotive & Discrete Analog, MEMS & Sensors Microcontrollers & Digital ICs (ADG) (AMS) (MDG) Revenues = $1,226M Revenues = $1,260M Revenues = $1,062M Operating Margin = 17.6% Operating Margin = 26.6% Operating Margin = 29.9% 1,500 30% 1,500 30% 1,500 30% 1,250 1,250 1,
Slide 12: FY 2021 Product group results
FY 2021 Product group results Automotive & Discrete Analog, MEMS & Sensors Microcontrollers & Digital ICs (ADG) (AMS) (MDG) Revenues = $4.35B Revenues = $4.62B Revenues = $3.77B Operating Margin = 11.8% Operating Margin = 21.9% Operating Margin = 24.3% 5.0 25% 5.0 25% 5.0 25% 4.0 20% 4.0 20% 4.0 20%
Slide 13: FY 2021 Financial flexibility
FY 2021 Financial flexibility Net Cash From Operating Capex = $1.83B Free Cash Flow* = $1.12B Activities = $3.06B 3.2 2.0 Capex / sales (%) 18% 1.2 2.4 16% 1.5 0.8 14% 1.6 1.0 5-year average 12% 0.4 0.8 0.5 10% 0.0 0.0 0.0 8% FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21
Slide 14: Solid capital structure
Solid capital structure $3.72B $3.46B $3.52B $2.66B ST is in a solid position from a capital, liquidity $2.62B $2.54B and balance sheet perspective $1099M $977M $798M Moody’s upgraded the credit rating to Baa2 and S&P improved business risk profile to satisfactory. As a result, ST is now well within
Slide 15: Q1 2022 Outlook
Q1 2022 Outlook Net Revenues Q122 outlook, at the mid-point, is for net revenues of $3.50B, growing 16.1% Y/Y and decreasing 1.6% Q/Q. Gross Margin Gross margin is expected to be about 45.0%, plus or minus 200 bps, representing a Y/Y increase of 600 bps and a Q/Q decrease of 20 bps. This outlook is
Slide 16: We will accelerate the execution of our strategy and value proposition
FY 2022 We will accelerate the execution of our strategy and value proposition: A STRATEGY which stems from three long-term enablers: • Smart mobility • Power & energy management • IoT & 5G A VALUE PROPOSITION based on: • sustainable and profitable growth • providing differentiating enablers to cust
Slide 17: FY 2022 Capital investment
FY 2022 Capital investment $3.4B - $3.6B CAPEX to further increase our production capacity and support our strategic initiatives Maintenance, efficiency Our CAPEX plans include: improvement and • ~ $2.1B for capacity additions and mix change in Capacity addition, carbon neutrality mix change, our ma
Slide 18: Our commitment to be Carbon neutral by 2027
Our commitment to be Carbon neutral by 2027 Milestones • Carbon neutral by 2027 • Compliance with the 1.5°C scenario by 2025 – recognized by SBTi • Sourcing 100% renewable energy by 2027 • Collaborative programs and partnerships for carbon neutrality throughout our ecosystems •In 2021, we improved o
Slide 19: FY 2022 Plan
FY 2022 Plan Based on the strong customer demand and our planned investments to increase capacity, we will drive the Company based on a 2022 revenue plan of $14.8B to $15.3B, representing revenue growth of about 16% to 20%. 19
Slide 20: Takeaways
Takeaways FY 2021 FY 2022 We continue to work on making ST stronger. ST delivered strong revenue growth and increased We are convinced that we have the right strategy and profitability. We worked alongside our customers, resources in place: continuing to adapt our supply chain to support their • our
Slide 21: Capital Markets Day 2022 Save the Date
Capital Markets Day 2022 SAVE THE DATE We will be hosting our Capital Markets Day on May 12th in Paris. We hope to be able to have an in-person event and will also webcast live. 21
Slide 22: Appendix
Appendix
Slide 23: Historical financial performance
Historical financial performance 23 In US$M, except EPS Q120 Q220 Q320 Q420 FY20 Q121 Q221 Q321 Q421 FY21 Net Revenues 2,231 2,087 2,666 3,235 10,219 3,016 2,992 3,197 3,556 12,761 Gross Margin 37.9% 35.0% 36.0% 38.8% 37.1% 39.0% 40.5% 41.6% 45.2% 41.7% Operating Income 231 106 329 657 1,323 440 489
Slide 24: 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 25: © 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