Slide 1: STMicroelectronics Q3 2024 Financial Results
STMicroelectronics Q3 2024 Financial Results October 31, 2024
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 $3.25B were in line with the mid-point of guidance. Compared to our expectations, revenues were higher in Personal Electronics, declined less in Industrial and were lower in Automotive. Gross margin of 37.8% was broadly in line with guidance. Q3 2024 • Q3 net revenues de
Slide 4: Q3 2024 Revenues dynamics
Q3 2024 Revenues dynamics % by reportable segments % by end market Communications equipment & Digital ICs and RF computer peripherals Products (D&RF) - ~ 5%Y/Y -29.7%Y/Y - ~ 8% Q/Q -17.4%Q/Q Analog products, 12% MEMS & Sensors 13% (AM&S) Automotive -13.3%Y/Y - ~ 18%Y/Y Personal 36% +1.7% Q/Q electro
Slide 5: Q3 2024 Revenues
Q3 2024 Revenues % by shipment location % by region of origin % by customer type Americas Asia Distribution Top 10 17% Americas Pacific OEMs 29% 24% Asia 43% 23% Pacific 50% 60% EMEA 28% 26% Other EMEA OEMs 5
Slide 6: Q3 2024 Financial highlights
Q3 2024 Financial highlights Revenues = $3.25B Operating Margin = 11.7% 4.5 30% 3.0 -26.6% 20% Y/Y 1.5 10% 0.0 0% Q323 Q224 Q324 Q323 Q224 Q324 Gross Margin = 37.8% Net Income = $351M 50% 1,200 40% 900 30% 600 20% 10% 300 0% 0 Q323 Q224 Q324 Q323 Q224 Q324 6
Slide 7: 9M 2024 Financial highlights
9M 2024 Financial highlights Revenues = $9.95B Operating Margin = 13.1% 15.0 30% 10.0 20% 5.0 10% 0.0 0% 9M23 9M24 9M23 9M24 Gross Margin = 39.9% Net Income = $1.22B 50% 3.2 2.4 25% 1.6 0.8 0% 0.0 9M23 9M24 9M23 9M24 7
Slide 8: Revenues
Revenues Q324 Revenues = $3.25B 4.50 Q324 revenues down 26.6% Y/Y • AM&S declined 13.3%, P&D 18.4%, MCU 43.4% and D&RF 29.7%, 3.00 • By end market, Industrial declined more than 50%, Automotive ~ 18%, Personal Electronics ~ 9%, and CECP ~ 5%. • Revenues to OEMs and Distribution decreased 17.5% and 4
Slide 9: Gross margin
Gross margin Q324 Gross Margin = 37.8% 50% 40% Q324 Gross Margin 30% • Down 980 bps Y/Y, mainly due to product mix and, to a lesser extent, to sales price and higher unused capacity 20% charges, • Down 230 bps Q/Q, 10% • 20 bps below the mid-point of ST’s guidance. 0% Q323 Q423 Q124 Q224 Q324 Q424E
Slide 10: Net operating expenses
Net operating expenses* Q324 Net Operating Expenses = $847M 30% 1100 900 700 25% Q324 Combined SG&A and R&D at $877M • 27.0% of revenues. 500 300 20% Q324 Net Operating Expenses at $847M 100 • 26.1% of revenues. -100 15% Q323 Q423 Q124 Q224 Q324 SG&A R&D OIE, net Net OPEX % 10 * Net operating expens
Slide 11: Q3 2024 Reportable segments results
Q3 2024 Reportable segments results Analog products, MEMS and Sensors (AM&S) Power and discrete products (P&D) Revenues = $1,185M Revenues = $807M Operating Margin = 14.8% Operating Margin = 15.0% 1,600 40% 1,600 40% 1,200 30% 1,200 30% 800 20% 800 20% 400 10% 400 10% 0 0% 0 0% Q323 Q423 Q124 Q224 Q
Slide 12: Q3 2024 Financial flexibility
Q3 2024 Financial flexibility Net Cash From Operating Net Capex* = $565M Free Cash Flow* = $136M Activities = $723M 2,000 1,400 30% 800 Net Capex / sales (%) 1,200 1,600 600 1,000 25% 1,200 800 400 20% 600 200 800 400 15% 400 0 200 0 0 10% -200 Q323 Q423 Q124 Q224 Q324 Q323 Q423 Q124 Q224 Q324 Q323
Slide 13: Solid capital structure
Solid capital structure $6.29B $6.30B ST is in a very solid position from a capital, liquidity $5.05B and balance sheet perspective. $3.09B $3.12B $2.59B $3.20B $3.18B $2.46B ST credit rating is currently BBB+ with Stable Outlook from S&P and Baa1 with Positive Outlook from Moody’s. Q323 Q224* Q324*
Slide 14: Automotive
Automotive Car electrification Car digitalization Arm®-based safe & secure, real-time high-performance, automotive MCUs 14
Slide 15: Industrial
Industrial Power for AI servers Momentum with STM32 15
Slide 16: Personal electronics; Communications equipment & computer peripherals
Personal electronics Communications equipment & computer peripherals 16
Slide 17: Q4 2024 Outlook
Q4 2024 Outlook Net Revenues Q424 outlook, at the mid-point, is for net revenues of $3.32B, decreasing Y/Y by 22.4% and increasing Q/Q by 2.2%, plus or minus 350 bps. Gross Margin Gross margin is expected to be about 38%, +/- 200 bps, impacted by about 400 bps of unused capacity charges. This outloo
Slide 18: FY 2024 outlook
FY 2024 Our Q4 guidance at the mid-point translates into 2024 net revenues of about $13.27B. This represents a decrease of about 23.2% Y/Y in the low-end of the range indicated in the previous quarter. Within this guidance, we expect a gross margin of about 39.4%, impacted by about 290 bps of unused
Slide 19: Q1 2025
Q1 2025 At this time of the year, we usually do not comment two quarters ahead; but, based on our current customer backlog and order entry dynamics, we anticipate a revenue decline between Q424 and Q125 well above normal seasonality. This also includes a significant lower number of Calendar Days in
Slide 20: Launch of a new company-wide program
Launch of a new company-wide program • Today we have announced the launch of a new company-wide program to reshape our manufacturing footprint. • We are accelerating our wafer fab 300mm transition in Agrate and Crolles - in particular in Agrate, reaching a scale of about 4,000 wafers per week exitin
Slide 21: Takeaways
Takeaways As said last quarter the current market cycle dynamics, coupled with the ongoing transformation of the Automotive and Industrial end-markets, are bringing both opportunities and challenges in the short, medium and longer term. This is true for ST and for our customers equally. In the short
Slide 22: Capital Markets Day 2024
Capital Markets Day 2024 We look forward to updating you on our strategy at our Capital Markets Day on November 20th, either in person in Paris or via our live webcast. 22
Slide 23: Appendix
Appendix
Slide 24: Historical financial performance
Historical financial performance US$M, except EPS Q123 Q223 Q323 9M23 Q423 FY23 Q124 Q224 Q324 9M24 Net Revenues 4,247 4,326 4,431 13,004 4,282 17,286 3,465 3,232 3,251 9,947 Gross Margin 49.7% 49.0% 47.6% 48.7% 45.5% 47.9% 41.7% 40.1% 37.8% 39.9% Operating Income 1,201 1,146 1,241 3,588 1,023 4,611
Slide 25: Appendix
Appendix • Net financial position and Adjusted 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 secu
Slide 26: Historical Revenues and Operating Margin by Product Groups and Segments
Historical Revenues and Operating Margin by new Product Groups and Reportable Segments US$M Q123 Q223 Q323 Q423 FY23 Q124 Q224 Q324 Analog products, MEMS and Sensors Revenue 1,400 1,293 1,367 1,418 5,478 1,217 1,165 1,185 (AM&S) Operating Margin 23.9% 20.0% 21.8% 21.1% 21.7% 15.2% 12.4% 14.8% Revenu
Slide 27: FY 2023 Reportable segment revenues by end market
FY 2023 Reportable segment revenues by end market Analog products, MEMS and Sensors (AM&S) Power and discrete products (P&D) 2% 3% 9% 33% 31% 40% 18% 64% Automotive Industrial Personal electronics Communications equipment Microcontrollers (MCU) Digital ICs and RF Products (D&RF) & computer periphera
Slide 28: Copyright and trademark notice
© 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