Slide 1: STMicroelectronics Q2 2024 Financial Results
STMicroelectronics Q2 2024 Financial Results July 25, 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 $3.23B were above the mid-point of our business outlook range, driven by higher revenues in Personal Electronics, partially offset by lower than expected revenues in Automotive. Gross margin of 40.1% was in line with expectations. Q2 • Q2 net revenues decreased 25.3% Y/Y
Slide 4: Q2 2024 Revenues dynamics
Q2 2024 Revenues dynamics % by reportable segments % by end market Communications equipment & Digital ICs and RF Others computer peripherals Products (D&RF) + ~ 2%Y/Y -7.6%Y/Y + ~ 15% Q/Q +8.6%Q/Q 0.1% Analog products, 14% MEMS & Sensors 16% (AM&S) Automotive -10.0%Y/Y - ~ 15%Y/Y Personal 36% -4.3%
Slide 5: Q2 2024 Revenues
Q2 2024 Revenues % by shipment location % by region of origin % by customer type Americas Asia Distribution Top 10 16% Americas Pacific OEMs 30% 27% Asia 39% 47% 26% Pacific 58% EMEA 31% 26% Other EMEA OEMs 5
Slide 6: Q2 2024 Financial highlights
Q2 2024 Financial highlights Revenues = $3.23B Operating Margin = 11.6% 4.5 30% 3.0 -25.3% 20% Y/Y 1.5 10% 0.0 0% Q223 Q124 Q224 Q223 Q124 Q224 Gross Margin = 40.1% Net Income = $353M 50% 1,200 40% 900 30% 600 20% 10% 300 0% 0 Q223 Q124 Q224 Q223 Q124 Q224 6
Slide 7: H1 2024 Financial highlights
H1 2024 Financial highlights Revenues = $6.70B Operating Margin = 13.8% 10.0 30% 8.0 20% 6.0 4.0 10% 2.0 0.0 0% H123 H124 H123 H124 Gross Margin = 40.9% Net Income = $865M 50% 2,100 1,400 25% 700 0% 0 H123 H124 H123 H124 7
Slide 8: Revenues
Revenues Q224 Revenues = $3.23B 4.50 Q224 revenues down 25.3% Y/Y • AM&S declined 10%, P&D 24.4%, MCU 46% and D&RF 7.6%, • By end market, Industrial declined more than 50%, Automotive ~ 15%, Personal 3.00 Electronics ~ 6%, while CECP was up ~ 2%. Excluding the impact of the change in product mix in
Slide 9: Gross margin
Gross margin Q224 Gross Margin = 40.1% 50% 40% Q224 Gross Margin 30% • Down 890 bps Y/Y, mainly due to the combination of product mix and sales price and higher unused capacity 20% charges, • Down 160 bps Q/Q, 10% • In line with the mid-point of ST’s guidance. 0% Q223 Q323 Q423 Q124 Q224 Q324E Actua
Slide 10: Net operating expenses
Net operating expenses* Q224 Net Operating Expenses = $921M 30% 1100 900 700 25% Q224 Combined SG&A and R&D at $954M • 29.5% of revenues. 500 300 20% Q224 Net Operating Expenses at $921M 100 • 28.5% of revenues. -100 15% Q223 ** Q323 Q423 Q124 Q224 SG&A R&D OIE, net Net OPEX % * Net operating expens
Slide 11: Q2 2024 Reportable segments results
Q2 2024 Reportable segments results Analog products, MEMS and Sensors (AM&S) Power and discrete products (P&D) Revenues = $1,165M Revenues = $747M Operating Margin = 12.4% Operating Margin = 14.7% 1,600 40% 1,600 40% 1,200 30% 1,200 30% 800 20% 800 20% 400 10% 400 10% 0 0% 0 0% Q223 Q323 Q423 Q124 Q
Slide 12: Q2 2024 Financial flexibility
Q2 2024 Financial flexibility Net Cash From Operating Net Capex* = $528M Free Cash Flow* = $159M Activities = $702M 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 Q223 Q323 Q423 Q124 Q224 Q223 Q323 Q423 Q124 Q224 Q223
Slide 13: Solid capital structure
Solid capital structure $6.24B $6.29B ST is in a very solid position from a capital, liquidity $4.56B and balance sheet perspective. $3.11B $3.09B $2.65B $3.13B $3.20B $1.91B ST credit rating is now BBB+ with Stable Outlook from S&P and Baa1 with Positive Outlook from Moody’s. Q223 Q124* Q224* Liqui
Slide 14: Automotive
Automotive Car electrification Car digitalization Arm®-based high- performance, multicore automotive MCUs 14
Slide 15: Industrial
Industrial Embedded world 2024 Momentum in edge AI 15
Slide 16: Personal electronics; Communications equipment & computer peripherals
Personal electronics Communications equipment & computer peripherals 16
Slide 17: ST Silicon Carbide Campus in Catania
ST Silicon Carbide Campus in Catania World’s first fully integrated silicon carbide facility for high-volume 200 mm silicon carbide power devices and modules, as well as test & packaging Together with the existing SiC wafer manufacturing facility, will form the ST Catania Silicon Carbide Campus inte
Slide 18: Q3 2024 Outlook
Q3 2024 Outlook Net Revenues Q324 outlook, at the mid-point, is for net revenues of $3.25B, decreasing Y/Y by 26.7% and increasing Q/Q by 0.6%, plus or minus 350 bps. Gross Margin Gross margin is expected to be about 38%, +/- 200 bps, impacted by about 350 basis points of unused capacity charges. Th
Slide 19: FY 2024 revenue plan
FY 2024 Entering H2, with our current Q3 and year-end backlog, and with the ongoing market dynamics, we have further revised our plan for 2024 revenues, which we now see in the range of $13.2B to $13.7B, representing a decline of about 22% at the mid-point compared to 2023. Within this plan, we expe
Slide 20: Takeaways
Takeaways Following an unprecedented chips shortage situation, the current semiconductor cycle is impacted by a number of factors: the desynchronization between the various end markets in terms of demand normalization or weakening and inventory adjustments or corrections; the available capacity, mov
Slide 21: Save the date: Capital Markets Day 2024
Capital Markets Day 2024 We will be hosting a Save Capital Markets Day on November 20th in Paris the to provide an update. date It will be an in-person event, and we will also webcast it live. 21
Slide 22: Appendix
Appendix
Slide 23: Historical financial performance
Historical financial performance US$M, except EPS Q123 Q223 H123 Q323 Q423 FY23 Q124 Q224 H124 Net Revenues 4,247 4,326 8,573 4,431 4,282 17,286 3,465 3,232 6,697 Gross Margin 49.7% 49.0% 49.3% 47.6% 45.5% 47.9% 41.7% 40.1% 40.9% Operating Income 1,201 1,146 2,347 1,241 1,023 4,611 551 375 925 Opera
Slide 24: 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 25: 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 Analog products, MEMS and Sensors Revenue 1,400 1,293 1,367 1,418 5,478 1,217 1,165 (AM&S) Operating Margin 23.9% 20.0% 21.8% 21.1% 21.7% 15.2% 12.4% Revenue Power and discr
Slide 26: 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 27: © 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