Slides
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STMicroelectronics Investor presentation May 2025
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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, each as amended) that are based on management’s current views and assumptions, and are conditioned upon and also involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those anticipated by such statements due to, among other factors: • changes in global trade policies, including the adoption and expansion of tariffs and trade barriers, that could affect the macro-economic environment and adversely impact the demand for our products; • uncertain macro-economic and industry trends (such as inflation and fluctuations in supply chains), which may impact production capacity and end-market demand for our products; • customer demand that differs from projections which may require us to undertake transformation measures that may not be successful in realizing the expected benefits in full or at all; • the ability to design, manufacture and sell innovative products in a rapidly changing technological environment; • changes in economic, social, public health, labor, political, or infrastructure conditions in the locations where we, our customers, or our suppliers operate, including as a result of macro-economic or regional events, geopolitical and military conflicts, social unrest, labor actions, or terrorist activities; • unanticipated events or circumstances, which may impact our ability to execute our plans and/or meet the objectives of our R&D and manufacturing programs, which benefit from public funding; • financial difficulties with any of our major distributors or significant curtailment of purchases by key customers; • the loading, product mix, and manufacturing performance of our production facilities and/or our required volume to fulfill capacity reserved with suppliers or third-party manufacturing providers; • availability and costs of equipment, raw materials, utilities, third-party manufacturing services and technology, or other supplies required by our operations (including increasing costs resulting from inflation); • the functionalities and performance of our IT systems, which are subject to cybersecurity threats and which support our critical operational activities including manufacturing, finance and sales, and any breaches of our IT systems or those of our customers, suppliers, partners and providers of third-party licensed technology; • theft, loss, or misuse of personal data about our employees, customers, or other third parties, and breaches of data privacy legislation; • the impact of IP claims by our competitors or other third parties, and our ability to obtain required licenses on reasonable terms and conditions; • changes in our overall tax position as a result of changes in tax rules, new or revised legislation, the outcome of tax audits or changes in international tax treaties which may impact our results of operations as well as our ability to accurately estimate tax credits, benefits, deductions and provisions and to realize deferred tax assets; • variations in the foreign exchange markets and, more particularly, the U.S. dollar exchange rate as compared to the Euro and the other major currencies we use for our operations; • the outcome of ongoing litigation as well as the impact of any new litigation to which we may become a defendant; • product liability or warranty claims, claims based on epidemic or delivery failure, or other claims relating to our products, or recalls by our customers for products containing our parts; • natural events such as severe weather, earthquakes, tsunamis, volcano eruptions or other acts of nature, the effects of climate change, health risks and epidemics or pandemics in locations where we, our customers or our suppliers operate; • increased regulation and initiatives in our industry, including those concerning climate change and sustainability matters and our goal to become carbon neutral in all direct and indirect emissions (scopes 1 and 2), product transportation, business travel, and employee commuting emissions (our scope 3 focus), and to achieve our 100% renewable electricity sourcing goal by the end of 2027; • epidemics or pandemics, which may negatively impact the global economy in a significant manner for an extended period of time, and could also materially adversely affect our business and operating results; • industry changes resulting from vertical and horizontal consolidation among our suppliers, competitors, and customers; • the ability to successfully ramp up new programs that could be impacted by factors beyond our control, including the availability of critical third-party components and performance of subcontractors in line with our expectations; and • individual customer use of certain products, which may differ from the anticipated uses of such products and result in differences in performance, including energy consumption, may lead to a failure to achieve our disclosed emission-reduction goals, adverse legal action or additional research costs. Such forward-looking statements are subject to various risks and uncertainties, which may cause actual results and performance of our business to differ materially and adversely from the forward-looking statements. Certain forward-looking statements can be identified by the use of forward-looking terminology, such as “believes”, “expects”, “may”, “are expected to”, “should”, “would be”, “seeks” or “anticipates” or similar expressions or the negative thereof or other variations thereof or comparable terminology, or by discussions of strategy, plans or intentions. Some of these risk factors are set forth and are discussed in more detail in “Item 3. Key Information — Risk Factors” included in our Annual Report on Form 20-F for the year ended December 31, 2024 as filed with the Securities and Exchange Commission (“SEC”) on February 27, 2025. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this press release as anticipated, believed or expected. We do not intend, and do not assume any obligation, to update any industry information or forward-looking statements set forth in this release to reflect subsequent events or circumstances. Unfavorable changes in the above or other factors listed under “Item 3. Key Information — Risk Factors” from time to time in our Securities and Exchange Commission (“SEC”) filings, could have a material adverse effect on our business and/or financial condition. Forward looking information 2
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STMicroelectronics in a snapshot
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We are creators and makers of technology 4 14 main manufacturing sites As of December 31, 2024 One of the world’s largest semiconductor companies $13.3 billion revenues in 2024 50,000 employees of which 9,000+ in R&D Over 80 sales & marketing offices serving over 200,000 customers across the globe Signatory of the United Nations Global Compact (UNGC) Member of the Responsible Business Alliance (RBA)
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FY 2024 revenues overview 5 % by reportable segments 59% 25% 16% Americas EMEA Asia Pacific % by shipment location % by end market % by region of origin 30% 30% 40% Americas EMEA Asia Pacific 41% 19% 29% 11% Analog products, MEMS & Sensors (AM&S) Power & discrete products (P&D) Embedded Processing (EMP) RF & Optical Communications (RF&OC) 46% 20% 21% 13% Automotive Communications equipment & computer peripherals Industrial Personal electronics
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We serve more than 200,000 customers 6 Standard process, reporting & follow-up in Sales & Marketing worldwide Differentiated approach by type of customer Unified worldwide account management tailored to each account to provide global coverage and service *In alphabetical order Distribution & Mass Market Globally Managed Accounts Top 10 Customers* 2024 Apple Mobileye Bosch Samsung Continental SpaceX Denso Tesla Hyundai Motor Vitesco 53% of revenues 47% of revenues Top 10 (OEMs)
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IDM model providing strong competitive advantage and supply chain resilience for our customers Chip design Wafer fabrication Process development and qualification Sales & support Assembly & test Full control and optimization of the value chain 7
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ST technology and manufacturing strategy is a key business enabler In-house manufacturing complemented by partnerships • Agile and competitive footprint • Reliable supply chain for our customers • Product differentiation through proprietary technologies Manufacturing roadmap • Accelerating silicon capacity transition from 200 mm to 300 mm • Test consolidation in two hubs • Silicon Carbide – transition to 200 mm in Catania with fully vertically integrated operations and JV in China • China-for-China supply chain ST in-house manufacturing 8
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China-for-China operating model to support domestic China growth Fully localized, scalable integrated device manufacturing Front-end manufacturing for Silicon Carbide with ST-Sanan JV Captive capacity corridor in partnership with HHGrace on 40 nm, OFT, BCD/IGBT GaN technology development and manufacturing agreement with Innoscience Back-end manufacturing extended Shenzhen Campus (Manufacturing assembly & test, R&D assembly & test, world-class failure analysis and reliability labs). Application center in Shanghai Shenzhen Back-end assembly & test Chongqing SiC Front-end manufacturing* Operate locally to support fast-changing and highly-competitive China market Cost-effective & resilient supply chain Selective use of local equipment vendors, predominant use of local materials vendors to minimize possible geopolitical constraints OFT: Oxide Filled Trench 9* Targeting to start production in Q4 2025
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Discrete, Power MOSFET, IGBT Silicon Carbide, Gallium Nitride Smart Power: BCD (Bipolar - CMOS - Power DMOS) Analog, RF CMOS & BiCMOS, Silicon photonics FD-SOI CMOS FinFET through Foundry eNVM CMOS Optical sensing solutions Packaging technologies Leadframe – Laminate – Sensor module – wafer level Vertical Intelligent Power Differentiated technologies are our foundation 10 MEMS for sensors & micro-actuators
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Our strategy stems from key long-term enablers 11 Helping car manufacturers make driving safer, greener, and more connected for everyone Smart Mobility Enabling industries to increase energy efficiency everywhere and the use of renewable energy Power & Energy Supporting the proliferation of secure, connected, autonomous devices enabled by edge AI Cloud-connected Autonomous Things
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Milestones Compliance with the 1.5°C scenario by 2025 – recognized by SBTi Carbon neutral by 2027 (on Scope 1 & 2 and focusing on product transportation, business travel and employee commuting emissions for scope 3) Sourcing 100% renewable electricity by 2027 Collaborative programs and partnerships for carbon neutrality throughout our ecosystems We will be carbon neutral by our 40th anniversary 12 In 2024 84% electricity from renewable sources 2027 0% 100% renewable electricityNet CO2 emissions CO2 offset 2018
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Our value proposition for all stakeholders 13 Return value in line with our objective Provide differentiating enablers Committed to sustainability Sustainable and profitable growth Independent, reliable & secure supply chain Our values: Integrity – People – Excellence For all our stakeholdersFor our customersFor our shareholders
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STMicroelectronics Q1 FY 2025 Financial Results
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Highlights 15*Non-U.S. GAAP measure. See Appendix for additional information explaining why the Company believes these measures are important. • Net revenues of $2.52B decreased 27.3% Y/Y and 24.2% Q/Q. Gross margin was 33.4%. • Revenues came in line with the mid-point of our business outlook range, driven by higher revenues in Personal Electronics offset by lower-than-expected revenues in Automotive and Industrial. Gross margin was slightly below the mid-point mainly due to product mix. • Operating margin was 0.1% and net income was $56M. Q1 2025 • Outlook at mid-point is for net revenues of $2.71B, declining 16.2% Y/Y and increasing 7.7% Q/Q. • Gross margin expected to be about 33.4% at the mid-point. Q2 2025 • We plan to maintain our Net Capex* plan for 2025 between $2.0B and $2.3B mainly to execute the reshaping of our manufacturing footprint. FY 2025 • In the first quarter, our book-to-bill ratio improved with both Automotive and Industrial above parity. • While we see Q1 2025 as the bottom, in the current uncertain environment we are focusing on what we can control: keep on innovating to continuously improve and accelerate the competitiveness of our product and technology portfolio, focus on advanced manufacturing and tightly manage our costs. In this respect our company-wide program to reshape ST manufacturing footprint and resize our global cost base is on track and we confirm the annual cost savings target in the high triple-digit million-dollar range exiting 2027.
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Corporate development 16 During Q1 ST announced the details of its three-year program to reshape the manufacturing footprint and resize the global cost base Confirmed the annual cost savings target in the high triple-digit million-dollar range exiting 2027 Program is expected to see up to 2,800 people leaving the company globally on a voluntary basis over 3 years, on top of normal attrition. This is expected to occur mainly in 2026 and 2027 Reshaping and modernization aim to achieve two main objectives: • prioritizing planned investments towards future-ready infrastructure such as 300mm silicon and 200mm silicon carbide wafer fabs • maximizing the productivity and efficiency of legacy 150mm capabilities and mature 200mm capabilities
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Q1 2025 Revenues dynamic Analog, Power & Discrete, MEMS and Sensors (APMS) Microcontrollers, Digital ICs and RF products (MDRF) % by reportable segments Others Analog products, MEMS and Sensors (AM&S) Power and discrete products (P&D) Embedded Processing (EMP) RF & Optical Communications (RF&OC) 42% 16% 30% 12% 0.1% Automotive Industrial Personal electronics Communications equipment & computer peripherals % by end market 39% 21% 24% 16% -39%Y/Y -32%Y/Y -11%Y/Y +1%Y/Y -23.9%Y/Y -37.1%Y/Y -29.1%Y/Y -19.2%Y/Y -34% Q/Q -18% Q/Q -17% Q/Q -14% Q/Q -20.7% Q/Q -34.1% Q/Q -26.0% Q/Q -16.5%Q/Q 17
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Q1 2025 Financial highlights 18 30% 34% 38% 42% Q124 Q424 Q125 2.0 2.3 2.6 2.9 3.2 3.5 Q124 Q424 Q125 0% 5% 10% 15% 20% Q124 Q424 Q125 0 200 400 600 Q124 Q424 Q125 Revenues = $2.52B Operating Margin = 0.1% Gross Margin = 33.4% Net Income = $56M -27.3% Y/Y
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Q1 2025 Financial flexibility 19 0 200 400 600 800 1,000 1,200 1,400 Q124 Q224 Q324 Q424 Q125 Net Cash From Operating Activities = $574M 10% 15% 20% 25% 30% 0 200 400 600 800 1,000 1,200 1,400 Q124 Q224 Q324 Q424 Q125 Capex / sales (%) Net Capex* = $530M -200 0 200 400 Q124 Q224 Q324 Q424 Q125 Free Cash Flow* = $30M *Non-U.S. GAAP measure. See Appendix for additional information explaining why the Company believes these measures are important. Cash dividends paid to stockholders totaled $72M in Q125. In Q125 we repurchased shares totaling $92M.
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Solid capital structure 20 *Adjusted net financial position, taking into consideration the effect on total liquidity of advances from capital grants for which capital expenditures have not been incurred yet, stood at $2.78B as of March 30, 2024, $2.85B as of December 31, 2024, and $2.71B as of March 29, 2025. **Non-U.S. GAAP measure. See Appendix for additional information explaining why the Company believes these measures are important. ST is in a very solid position from a capital, liquidity and balance sheet perspective. ST credit rating is now BBB+ with Stable Outlook from S&P and Baa1 with Stable Outlook from Moody’s. $6.24B $6.18B $5.96B $3.11B $2.95B $2.88B $3.13B $3.23B $3.08B Q124* Q424* Q125* Liquidity Debt Net Financial Position**
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Q2 2025 Outlook 21 The second quarter will close on June 28, 2025. This outlook is based on an assumed effective currency exchange rate of approximately $1.08 = €1.00 for Q225 and includes the impact of existing hedging contracts. This business outlook does not include any impact for potential further changes to global trade tariffs compared to current situation. Net Revenues Q225 outlook, at the mid-point, is for net revenues of $2.71B, decreasing Y/Y by 16.2% and increasing Q/Q by 7.7%, plus or minus 350 bps. Gross Margin Gross margin is expected to be about 33.4%, +/- 200 bps.
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FY 2025 22 Considering the level of uncertainty for the economy globally and for ST end markets specifically, we are not providing an indication for FY25 revenues. We plan to maintain our Net Capex* plan for 2025 between $2.0B and $2.3B mainly to execute the reshaping of our manufacturing footprint. *Non-U.S. GAAP measure. See Appendix for additional information explaining why the Company believes these measures are important.
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Takeaways 23 While we see Q125 as the bottom, in the current uncertain environment we are focusing on what we can control: • Strict expense control while protecting R&D, continuously innovating to enhance and accelerate the competitiveness of our product and technology portfolio. • On track with our company-wide program to reshape our manufacturing footprint. We confirm that the cost savings target is in the high triple-digit million-dollar range exiting 2027. ST medium-term growth drivers remain solid. Specifically, they will come from MEMS and Optical sensing solutions, General Purpose Microcontrollers, Analog and LEO communication, while we see a lower and delayed growth in Power & Discrete due primarily to the well-known electrification market dynamics. Additional further growth beyond the medium-term horizon thanks to Automotive MCU and AI applications - at the Edge, and for power management and cloud optical interconnect in data centers and AI clusters. We will do so by leveraging our product and technology portfolio and roadmap, and our competitive reshaped manufacturing footprint.
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Our Financial Ambition & Model
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Summary $20B+ Ambition and attendant financial model is still valid but postponed Intermediate model with revenues expected at ~$18B in 2027 / 2028 ST has the right innovation capabilities, product portfolio, & end-market exposure to achieve this target Gross Margin expected in a 44-46% range in 2027 / 2028 Supported by reshaping and improved efficiency of manufacturing footprint and to reach ~50% by 2030 Improving FCF** to revenues ratio supported by increased profitability and lower capital intensity reaching 20%* of the revenues in 2027 / 2028 and >25% by 2030 Operating margin* expected in the 22-24% range in 2027 / 2028 Supported by resizing of our global cost base and to reach >30% by 2030 * Excluding one-offs **Non-U.S. GAAP measure. See Appendix for additional information explaining why the Company believes these measures are important. 25Source: STMicroelectronics Capital Markets Day 2024
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The $20B+ ambition is postponed but still intact A new intermediate point in FY 2027/2028 is set 2023 2024 2027-2028 By 2030 $17.3B $13.3B* $20B+~$18B Revenue trajectory Considering a changing market and competitive environment, we set a new intermediate Financial Model on the path towards the $20B+ ambition by 2030 8-11% CAGR 26Source: STMicroelectronics Capital Markets Day 2024
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Introducing a new intermediate financial model towards the $20B+ financial ambition Revenue ~$18B $20B+ Gross Margin ~44-46% ~50% Operating Margin ~22-24%* >30% Free Cash Flow Margin** ~20%* >25% Financials assume a currency exchange rate of approximately $1.09 = €1.00. See appendix for FX sensitivity * Excluding one-offs **Non-U.S. GAAP measure. See Appendix for additional information explaining why the Company believes these measures are important. Key financials $20B+ ambition (by 2030) Intermediate model (2027/28) 27 See Forward Looking Information for full disclosure. Such information is subject to various risks and uncertainties, which may cause actual results and performance of our business to differ materially and adversely from the Forward Looking Information. Source: STMicroelectronics Capital Markets Day 2024
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Targeting to grow around twice as fast as our SAM 2024 to 2027-28 CAGR ST revenues: 8-11%* ST SAM: ~5%** Accelerated growth drivers to represent about three quarters of 2024 to 2027-28 growth Revenue 2024 Accelerated growth drivers Others Revenue 2027-28 Accelerated growth drivers including engaged customer programs in personal electronics and CECP, Silicon Carbide, Auto ADAS and General-purpose MCUs $13.3B ~$18B ** 2024 to 2027 CAGR 28 See Forward Looking Information for full disclosure. Such information is subject to various risks and uncertainties, which may cause actual results and performance of our business to differ materially and adversely from the Forward Looking Information. Source: STMicroelectronics Capital Markets Day 2024
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Strengthening revenue growth capability and improving operating efficiency ST is adapting to a lower-than-expected revenue base by managing what is under our control Delivering enhanced product development innovation and efficiency, time-to-market as well as customer focus by end market. Improve productivity / efficiency of our fabs Generate structural cost savings Implementing new organization Reshaping of manufacturing footprint Resizing of global expense base 29Source: STMicroelectronics Capital Markets Day 2024
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High triple-digit $M range annual cost savings exiting 2027 Gross Opex + COGS base in 2024 Targeted annual savings exiting 2027 Gross Opex + COGS base exiting 2027* Evolution of Total Cost structure ($B) ~$11.8B High triple-digit $m annual cost savings exiting 2027, of which $300 to 360m of operating expenses (SG&A and R&D), compared to the cost base of 2024 High-single digit % reduction of overall current cost structure Mix of Cash and Non-Cash items Opex savings starting to be partially visible from 2025, COGS savings starting in 2026 and accelerating in 2027 Key financials High-triple digit $m *Cost base at 2024 volumes and excluding inflation. 30 See Forward Looking Information for full disclosure. Such information is subject to various risks and uncertainties, which may cause actual results and performance of our business to differ materially and adversely from the Forward Looking Information.
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Key drivers of operating margin improvement >12% ~22-24% Operating margin in 2024 Capacity reservation fees Mix & price Unused capacity charges & efficiency Manufacturing reshaping & Opex base resizing Net Operating Leverage Operating margin in 2027-28 Unused capacity charges & efficiency, cost base resizing and operating leverage are the key drivers of operating margin improvement 31 See Forward Looking Information for full disclosure. Such information is subject to various risks and uncertainties, which may cause actual results and performance of our business to differ materially and adversely from the Forward Looking Information. Source: STMicroelectronics Capital Markets Day 2024
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Capital intensity is expected to decrease 0% 5% 10% 15% 20% 25% 30% 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 We are in a position to leverage the significant investments in the infrastructure done in the last few years Net Capex / Net Revenues (%) Average 2017-21: ~14% Average 2022-24: ~21% Average 2025-27/28: ~15% Improving FCF* to revenues ratio reaching 20% of revenues by 2027/2028 Main investments 2024-27 Capacity & mix Changes • Agrate and Crolles 300mm • Assembly & Testing SiC • Catania fully integrated 200 mm facility • JV with Sanan (200 mm) Maintenance, efficiency improvement, R&D, CO2 neutrality program & others * Excluding one-offs See Forward Looking Information for full disclosure. Such information is subject to various risks and uncertainties, which may cause actual results and performance of our business to differ materially and adversely from the Forward Looking Information. 32Source: STMicroelectronics Capital Markets Day 2024
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Investment & capital allocation Shareholder returns Return value to shareholders improving Company fundamental value Dividend policy consistent with our planned increased cash generation Balance Sheet Maintain solid capital structure and financial flexibility Investment-grade credit ratings Strategic M&A Fast bolt-on specialized acquisitions to boost innovation, reinforce our IP and product portfolio Organic growth Commitment to organic and self-financed growth complemented by strategic partnerships with Foundry and OSAT Accelerated transition towards 300 mm Silicon and 200 mm SiC Commitment to innovation and growth Market-driven R&D based on leading-edge products and technologies Accelerate R&D investment on critical success areas: wide bandgap materials, Edge AI, Silicon Photonics, Cloud-Connected Autonomous Things… 33Source: STMicroelectronics Capital Markets Day 2024
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Analog, Power & Discrete, MEMS and Sensors Group
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APMS Product Group focus and ambition Analog Large technology, IP & product portfolio for all markets Leveraging strong application and system knowhow Sensors Industry-leading technology fueling waves of opportunities Embedding intelligence, enabling countless applications Power Leading in Silicon Carbide, vertical integrated manufacturing Wide portfolio of technology and products supporting electrification Continuous investments in technology & product innovation Keeping leadership in traditional applications while benefiting from key trends Expanding product portfolio and gaining market share Smart Mobility Grow 2x vs SAM* Power & Energy Grow in line with SAM Intelligent things Grow 2x vs SAM Leveraging ST’s IDM model, investing in proprietary technologies to lead in smart mobility, power & energy and intelligent things * Excluding capacity reservation fees from carmakers 35Source: STMicroelectronics Capital Markets Day 2024
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APMS product portfolio Automotive: Battery Management, Traction, Braking, Airbag, Door Zone, Engine, PMIC Industrial: Motion control, Galvanic Isolated, Digital power, Smart Power GaN, PMIC, Medical ICs Storage & Server: PMIC, PreAmps Personal device: wireless charging, touch controller, display PMIC Analog AC-DC, DC-DC MOSFET, IGBT, SiC, GaN Gate Drivers Intelligent Power Switches, High- & Low-side drivers, LED drivers, Op Amps, Vref, Vreg, LDOs eFuses, current sensing, Real Time Clocks and Timers, Supervision, Control ICs Silicon MOSFETs IGBTs SiC MOSFETs GaN FETs Intelligent Power Modules Power Modules Thyristor & Triac Ultrafast & SiC Diodes Power Schottky Protection & ASIPs RF Integrated Passive Devices & Filters Power Smart sensors Biosensors 6-axis Inertial measurement unit Accelerometer & gyroscopes Vibrometers, Inclinometers Barometers, pressure, Temperature, electrostatic Magnetometers CMOS image sensors 3D Camera ToF sensors Ambient light sensors Proximity sensors Micro-optics Custom optical solutions Sensors Application specific General purposePower transistors Discrete & filter MEMS Imaging 36Source: STMicroelectronics Capital Markets Day 2024
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APMS product strategy Strategic focus on industrial & automotive end markets Address specific high-volume opportunities in personal electronics Selective approach in communications equipment and computers & peripherals focusing on advanced power management OEMs and distribution Leveraging our proprietary technologies and integrated device manufacturer model Focused market approach 15,000+ products $100B+ SAM 100,000+ Customers Broad product portfolio Sensors MEMS sensors & actuators Optical sensing solutions Power Power transistors Discrete & filters Analog Application specific General purpose 37Source: STMicroelectronics Capital Markets Day 2024
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APMS growth stems from key trends Intelligent Things Greener generation Smarter transmission Efficient utilization 20% CAGR ‘24-’27 for L2+ cars 13% CAGR ‘24-’27 for EV cars Yole, TechInsights >3 billion edge AI devices shipments 31% CAGR ‘24-’27 ABI research Electricity consumption x2.5 from 2023 to 2050 McKinsey Safer Greener More connected Smart Mobility Power & Energy Intelligent Sustainable Transformative Source: STMicroelectronics Capital Markets Day 2024 38
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Smart mobility trends driving car architecture and technology evolution Enhanced safety features Advanced driver assistance systems Self-driving vehicles Safer Electric vehicles Stricter emissions standards Alternative fuels Greener Connected vehicles Digital experience Post-purchase Services More connected Proliferation of sensors Security In-car networking evolution Electrification Mild Hybrid EV 48V Full electricSW-defined vehicles Domain / Zonal architecture Digitalization ADAS / Autonomous vehicles Smart lighting Extended features Improved safety More electronics Braking systems 39Source: STMicroelectronics Capital Markets Day 2024
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Global EV growth pace and shift of focus to hybrid models Evolving customer landscape in the automotive market Slower than expected industrial recovery Strong growth of AI server market Increasingly competitive market Mid-term $2B+ revenue ambition by 2027/2028 Strong long-term growth of the SiC market ~30% long-term market share ambition ST’s manufacturing strategy • Full vertical integration – from powder to modules • SiC Campus Catania facility • 200 mm wafer transition • Joint-Venture with Sanan for front-end and assembly & test at ST Shenzhen for China Growth and diversification of customer base including industrial applications & AI servers Continuous technology innovation SiC market dynamics and strategic focus Recent trends Strategy & Ambition 40
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ST has more SiC engagements with top Chinese EV makers than any other supplier Car Maker A B C D E F G H I J K L M N O P Q Supplier 1 Supplier 2 Supplier 3 Supplier 4 Supplier 5 Supplier 6 Supplier 7 41Source: STMicroelectronics Capital Markets Day 2024
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Winning in smart mobility Large and growing opportunity thanks to transformation of industry Targeting to grow 2x the market Vertically integrated SiC manufacturing In-house front-end and back-end technology & owned capacity China-for-China end-to-end strategy Manufacturing capacity & resilience Key technologies SiC discretes and module Vertical Integrated Power BCD for automotive MEMS & optical sensing Products Application-specific and general-purpose analog and power product roadmaps fitting diverse E/E car architectures Anticipating further car architecture evolution Sensors enabling a broad range of applications Strong customer base Over 30 years of automotive experience Strong relationships with key automotive car makers and tier1’s across regions Innovating with market shapers Application knowhow Shift from customer-driven product to application driven products Leverage broad and deep knowledge of automotive systems to develop solutions optimized for targeted subsystems Localized technical support 42Source: STMicroelectronics Capital Markets Day 2024
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Power & energy trends Greener generation Smarter transmission Efficient utilization Rising demand Renewable sources Reducing emissions Smart grid technologies Smart buildings and IoT Charging infrastructure More power-hungry factories, servers.. Better use of every watt Efficient energy conversion 43Source: STMicroelectronics Capital Markets Day 2024
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Winning in power & energy Growing and fragmented market Target low teens growth in line with the market Wide power process technology from low to high power, from silicon to wide bandgap Power package portfolio supporting SiC and GaN roadmaps Broad front and back-end technology portfolio tailored to analog and smart power products 15,000 products to support growing applications Covering full product span: sensing, controller, driver, power stage Large set of IP to further enlarge portfolio Strong technology roadmaps Wide portfolio Go-to-Market strategy Addressing both OEMs and distribution Leveraging large portfolio to deliver solutions System and application knowhow Localized skilled technical support in all regions 44Source: STMicroelectronics Capital Markets Day 2024
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Intelligent things trends Intelligent Sustainable Transformative AI-driven decision making Edge computing Personalization Energy efficiency Eco-friendly material Circular economy User experience Changing work & lifestyle Enhancing health & wellness 45Source: STMicroelectronics Capital Markets Day 2024
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Winning in intelligent things Targeting to grow 2x the served market Roadmaps of engaged key customer programs Proprietary front-end & back-end technology Proven & scalable EU based front-end capacity 300 mm fabs Able to ramp in line with customer expectations In-house manufacturing capacityStrong technology roadmaps Differentiated products #1 European IDM for optical sensing technology MEMS & Imaging dedicated technology platforms & teams Unique advanced BCD technology Broadest industry sensor provider Large set of reusable analog & sensing IP Embedded processing & edge AI Enabling multiple innovative applications Partner with market shapers Intimacy with key players Standard & custom solutions tailored for specific applications Deep engineering expertise 46Source: STMicroelectronics Capital Markets Day 2024
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Microcontrollers, Digital ICs and RF products Group
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Continuously focus our R&D on markets where we are or we can become #1 or #2, accretive to ST GM and OM margin targets and leveraging our IDM model Leverage ST differentiated technology and manufacturing platform to: 1. Grow our GP MCU 1.5x faster than the market over 2017-2027 2. Build a leading position in automotive MCU 3. Sustain our secure MCU position Stay #1 and continue to expand our presence in the fast-growing LEO market Become #1 in AI cloud interconnect market through hyperscaler collaborations MDRF Product Group focus and ambition 48Source: STMicroelectronics Capital Markets Day 2024
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MDRF product portfolio Mobile consumer transactions. Authentication and brand protection. Payment systems solutions. Connected security for automotive. Embedded processing (Microcontrollers reporting segment) NFC / RFID Tags Dynamic NFC tags NFC / RFID Readers High-performance & high- endurance EEPROMs Scalable single- and multicore MCU solutions, Targeting cost-sensitive to highly advanced applications & Supporting next-generation SDV architectures and X-in- 1 approach. Comprehensive SW development ecosystem ADAS image signal processors Networking and satellite digital ASICs Built on proprietary CMOS and FD-SOI technologies as well as FinFET (through foundry) Automotive radar Automotive UWB Automotive audio amplifiers GHz RF ASICs for LEO Satellites ASICs for data center optical networking Built on advanced proprietary RFSOI, BiCMOS, & silicon photonics technologies Digital ICs & RF Products Secure solutions NFC & MemoryGeneral-purpose MCU & MPUs Automotive MCUs Digital ICs Analog & RF Products STM32 32-bit general- purpose MCUs and 32/64- bit MPUs Arm® Cortex® cores High performance, mainstream, ultralow power MCU offer Graphics & AI accelerators Wireless MCUs (BLE, WIFI) Extensive ecosystem with edge AI 49
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The trends we intend to benefit from Electrified & software defined vehicles AI at the (tiny) edge LEO satellite constellations Cloud optical interconnect Are flexible & upgradable: with over- the-air updates & modular improvements Provide enhanced safety & security: Predictive maintenance & adv. security. Have innovative features: autonomous driving & personalized experiences. Enables more energy-efficient & smarter decision making Reduces decision latency & data transferred to the cloud Enhances privacy and security Connect the unconnected: • Ensure global coverage • Provide high-speed internet to remote and underserved areas worldwide Cloud requires increasingly higher comm. bandwidth w/i and between AI data centers (DC) Cloud power consumption growth has to be mitigated Silicon Photonics will become the technology linchpin of the AI cloud $2B photonics foundry SAM in 2030 ST estimate $2.5B AI HW accelerated MCU SAM in 2030 ABI Research >$1.6B LEO semiconductor SAM in 2030 ST estimate >$16.5B automotive MCU SAM in 2030 Tech Insights 50Source: STMicroelectronics Capital Markets Day 2024
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The global opportunity for general-purpose, automotive and secure MCU 4.3 4.0 4.2 10.9 10.5 12.6 12.7 8.8 10.3 2023 2024 2027 General Purpose Automotive Secure #1 +5% CAGR ‘24-’27 ST 2023 Ranking MCU TAM ($B): +5% CAGR 2024 to 2027 Sources: WSTS, Omdia MCU secular growth drivers $27.9 $23.2 $27.1 Industrial Industry 4.0 / Smart robotics Power & energy Building & home control Home appliances Power tools Automotive SW-defined vehicle (SDV) Vehicle electrification ADAS 1.5 1.0 1.3 3.8 3.1 2.7 11.9 12.0 15.2 10.8 7.9 10.9 2023 2024 2027 Industrial Automotive PE CECP PE: Personal Electronics CECP: Communication Equipment, Computer & Peripherals Source: Omdia MCU value growth drivers Edge AI for industrial Autonomous decisions Data privacy Energy efficiency Minimize communication to Cloud Advanced feature pervasion HW Accelerators Virtualization Security CAGR ‘24-’27 +11% +8% -4% +9% 51Source: STMicroelectronics Capital Markets Day 2024
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What’s unique about ST in microcontrollers eNVM CMOS process in-house technology MCU key success factors Manufacturing capacity, and resilience eNVM technology AI HW acceleration & SW stack Developers’ productivity →customer stickiness Security System-level solutions Why ST In-house silicon technology & capacity in Europe, External fab partners, China for China 40 nm eNVM in production 28 / 18 nm ePCM ramping Most comprehensive MCU HW and SW stack in the industry Most advanced MCU ecosystem >1.2M unique developers State of the art IP (inc. PQC) for a scalable, future- proof and easy to use MCU security offering Wide ST product portfolio: MCU + sensing, analog, power, actuation, etc. nm 110 90 65 40/45 28 18 x X X x A x B x x C x x D x E x 2030 >60% of MCU shipments in technologies at 40 nm and below Source: Yole Q3’24 and ST estimate 52Source: STMicroelectronics Capital Markets Day 2024
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ST GP MCU market share bottomed in Q2 2024 53Sources: ST based on WSTS, Omdia Market Share Bottomed in Q2’24 #1 GP MCU market share 2021-2024 2017 2018 2019 2020 2021 2022 2023 2024 Q1 Q2 Q3 ST General Purpose MCU 3-month rolling market share
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A developer-first mindset with STM32Cube The world largest MCU software ecosystem platform 1.3M unique active developers in 2024 - 30% YoY growth • Continuing to grow strongly in 2025 Launching STM32Cube next-generation platform in 2025 • Next level of developer experience with seamless SW solution access via web interface, new optimized code, advanced configuration and scalable SW framework for all new STM32 Series STM32Cube adoption is accelerating According to ASPENCORE survey • STM32 MCUs are the most familiar in developer community • 4/7 Top MCU selection criteria are related to ecosystem • 34% of developers consider STM32 for their next MCU project while other MCU providers are <15% Active, and satisfied MCU technical community for learning, support, and experience sharing • Up to 500,000 unique visitors a month in 2024 • CSAT >80% 54
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Making AI @ the tiny edge… a reality 113% CAGR to 2030 for TinyML MCUs ( ABI Research) More inference tasks will be handled locally, which will help reduce the strain on the global power grid Increasing adoption of edge AI solutions Battery management Arc fault detection Face / object recognition Anomaly detection… A roadmap for the most challenging workloads → up to 4.6 TOPS → 1 to 5 TOPS/W Neural-ART 1 → X 4 * → 20 to 40 TOPS/W TOPS/W Neural-ART 2 (D-IMC) → X 10 * → 50+ TOPS/W Neural-ART 3 (Hybrid) All performances expressed in 8 bits * Performance gain vs Neural-ART 1 Neural-ART Accelerator Introducing STM32N6 with Neural-ART 1 STM32N6 Performance gain vs best STM32H7 600x One of the fastest products to reach $100M in STM32 history $100M Significant growth in developer engagement Sensors Active projects on ST’s AI tools over 12 months by EoQ1 2025 160K+ Partnering with AI industry leaders 55
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Examples of supporting Chinese and global customers STM32 China-for-China game plan Growing local customers base 50% in next 5 years ST + partners ST Shenzhen ST + OSAT ST Shenzhen + OSAT ST + PartnersWafer fabrication Assembly & test EWS ST eNVM 40 nm dual-supply chain Support growing need of Chinese and global customers for a fully localized supply chain Exact same eNVM 40 nm STM32 manufacturable in Europe or in China (same mask set!) Objective to serve majority of eNVM 40 nm STM32 China business from China in medium term ST is currently the only top MCU supplier able provide this, as early as late 2025 for first products (Latest STM32 high-performance series) Creating a differentiator that will help us gain market share with Chinese and global customers Non-China China 56Source: STMicroelectronics Capital Markets Day 2024
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Doubling down on automotive MCUs Source: S&P Q3 2024 Actuating & Sensing Autonomous Drive & Computing Vehicle Computer I/O Ethernet ZoneECU Realtime Aggregation ST MCU focus X-1 Electrification HPC (ADAS/IVI) $16.5B SAM by 2030 ECU = Electronic Control Unit ADAS = Advanced Driver Assistance Systems IVI = In Vehicle Infotainment ST objective Grow automotive MCU revenue 2x 2030 vs. 2024 Leveraging ST’s IDM model Capitalizing on ST proprietary eNVM technology Introducing a new class of architecture with Stellar Introducing STM32 into the automotive space Bringing to market more than 70 commercial part numbers to market over the next 3 years How we achieve this 57Source: STMicroelectronics Capital Markets Day 2024
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Stellar MCU gaining increasing momentum at top automotive OEMs and Tier1s Leading EU premium OEM Selected Stellar for their vehicle lineup to elevate driving comfort experience OEMs Major EU Tier1 Adopted Stellar for X-in-1 integration, driving system BOM reduction for EVs Leading EU OEM Integrating Stellar for optimized energy management and EV range predictability Leading Chinese EV maker Validated Stellar in latest hybrid platform, with ST’s unique PCM over-the-air capabilities Top EU commercial vehicle OEM Adopted ST for their heavy-duty trucks, to enhance performance and meet stringent emissions Tier1s Major Asian Tier1 Adopted Stellar for Safe ECU function integration Leading Tier1 in US Chose Stellar for cybersecurity in a zonal module Fast growing Chinese Tier1 Selected Stellar for their battery management system Leading EU ADAS Tier1 Chose Stellar as an autonomous driving companion chip 58Source: STMicroelectronics Capital Markets Day 2024
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ST’s opportunity in the fast growing Low earth orbit (LEO) satellite market 2024 ONEWEB STARLINK 2029 CHINA IRIS² STARLINKKUIPER 2027 KUIPER STARLINK CHINA ST SAM* $630M ST SAM $940M ST SAM $1,600M LEO credibility & viability proven by Starlink Understanding of LEO strategic importance ~4M active customers at Starlink New constellations being deployed Developments for strategic independence Connectivity to the unconnected ~30M cumulative User Terminal deployed China constellation deployment LEO Satellite part of global connectivity systems Further boost in developing countries ~50M cumulative User Terminal deployed BiCMOS competitiveness & high-volume Panel Level Packaging How ST wins and grows New BiCMOS generation with increased performance for Ka band Pervasion to other constellations Pervasion to other geographies * ST SAM : User Terminal antenna electronics excl. memories Source : ST, Morgan Stanley Research. April 7, 2024 59Source: STMicroelectronics Capital Markets Day 2024
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Cloud optical interconnect opportunity Source: LightCounting ST’s BiCMOS high Fmax is key in EIC devices for high throughput transceivers for data center and AI infrastructure and fiber deployment Courtesy Innolight Photonic IC (PIC) Convert light to electronic signal Microcontroller (MCU) Control transceiver operation Electronic IC (EIC) Drive laser and amplify signal Pluggable transceiver ST addressing the pluggable transceiver market with a Silicon Photonics & BiCMOS foundry offer Compute Memory Interconnect Power supply Silicon Photonics is the fastest growing technology for pluggable & co-packaged optics (CPO) driven by AI 9.6 30.5 45.527 38 35 2024 2027 2029 SiPho Other 100GbE and higher speed Ethernet optical chips (PIC) Million Units 0.8 4.9 2024 2027 2029 CPO ports 400G and higher ports BiCMOS + SiPho total foundry SAM ’30: $2B 60Source: STMicroelectronics Capital Markets Day 2024
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www.st.com/trademarks www.st.com/trademarks © STMicroelectronics - All rights reserved. ST logo is a trademark or a registered trademark of STMicroelectronics International NV or its affiliates in the EU and/or other countries. For additional information about ST trademarks, please refer to www.st.com/trademarks. All other product or service names are the property of their respective owners. 61
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Appendix
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FY 2024 Reportable segment revenues by end market 63 44% 13% 35% 8% Automotive Industrial Personal electronics Communications equipment & computer peripherals 42% 30% 21% 7% 64% 29% 6% 1% 31% 6% 1% 62% Analog products, MEMS and Sensors (AM&S) Embedded Processing (EMP) Power and discrete products (P&D) RF & Optical Communications (RF&OC)
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Historical financial performance 64 US$M, except EPS Q124 Q224 Q324 Q424 FY24 Q125 Net Revenues 3,465 3,232 3,251 3,321 13,269 2,517 Gross Margin 41.7% 40.1% 37.8% 37.7% 39.3% 33.4% Operating Income Operating Margin 551 15.9% 375 11.6% 381 11.7% 369 11.1% 1,676 12.6% 3 0.1% Net Income – Reported 513 353 351 341 1,557 56 EPS Diluted ($/share) 0.54 0.38 0.37 0.37 1.66 0.06 Free Cash Flow* Net Financial Position* -134 3,126** 159 3,199** 136 3,181** 128 3,231** 288 3,231** 30 3,082** Effective Exchange Rate €/$ 1.09 1.08 1.08 1.09 1.08 1.06 64 *Non-U.S. GAAP measure. See Appendix for additional information explaining why the Company believes these measures are important. **Adjusted net financial position, taking into consideration the effect on total liquidity of advances from capital grants for which capital expenditures have not been incurred yet, stood at $2,775M as of March 30, 2024, at $2,797M as of June 29, 2024, at $2,815M as of September 28, 2024, at $2,846M as of December 31, 2024, and $2,705M as of March 29, 2025.
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Historical Revenues and Operating Margin by Product Groups and Reportable Segments 65 Embedded Processing (EMP) Revenue Operating Margin 1,047 22.2% 906 13.8% 898 16.4% 1,002 18.1% 3,853 17.8% 742 8.9% RF & Optical Communications (RF&OC) Revenue Operating Margin 378 27.4% 410 23.4% 357 23.4% 366 25.9% 1,511 25.1% 306 13.9% Microcontrollers, Digital ICs and RF products (MDRF) Revenue Operating Margin 1,425 23.6% 1,316 16,8% 1,255 18.3% 1,368 20.2% 5,364 19.8% 1,048 10.4% Q124 Q224 Q324 Q424 FY24 Q125 Analog products, MEMS and Sensors (AM&S) Revenue Operating Margin 1,406 17.5% 1336 14.5% 1,340 16.1% 1,348 16.3% 5,429 16.1% 1,069 7.7% Power and discrete products (P&D) Revenue Operating Margin 631 12.1% 576 10.6% 652 12.2% 602 7.5% 2,461 10.6% 397 -6.9% Analog, Power & Discrete, MEMS and Sensors (APMS) Revenue Operating Margin 2,037 15.8% 1,912 13,3% 1,992 14.9% 1,950 13.6% 7,890 14.4% 1,466 3.7% US$M
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Appendix 66 • 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 securities, and our total financial debt includes short-term debt and long-term debt, as reported in our Consolidated Balance Sheets. ST also presents adjusted net financial position as a non-U.S. GAAP measure, to take into consideration the effect on total liquidity of advances received on capital grants for which capital expenditures have not been incurred yet. ST believes its Net Financial Position and Adjusted Net Financial Position provide useful information for investors and management because they give evidence of our global position either in terms of net indebtedness or net cash by measuring our capital resources based on cash and cash equivalents, restricted cash, if any, short-term deposits and marketable securities and the total level of our financial debt. Our definitions of Net Financial Position and Adjusted Net Financial Position may differ from definitions used by other companies, and therefore, comparability may be limited. • Net Capex and Free Cash Flow (non-U.S. GAAP measure): ST presents Net Capex as a non-U.S. GAAP measure, which is reported as part of our Free Cash Flow (non-U.S. GAAP measure), to take into consideration the effect of advances from capital grants received on prior periods allocated to property, plant and equipment in the reporting period. Net Capex, a non-U.S. GAAP measure, is defined as (i) Payment for purchase of tangible assets, as reported plus (ii) Proceeds from sale of tangible assets, as reported plus (iii) Proceeds from capital grants and other contributions, as reported plus (iv) Advances from capital grants allocated to property, plant and equipment in the reporting period. ST believes Net Capex provides useful information for investors and management because annual capital expenditures budget includes the effect of capital grants. Our definition of Net Capex may differ from definitions used by other companies. Free Cash Flow, which is a non-U.S. GAAP measure, is defined as (i) net cash from operating activities plus (ii) Net Capex plus (iii) payment for purchase (and proceeds from sale) of intangible and financial assets and (iv) net cash paid for business acquisitions, if any. ST believes Free Cash Flow provides useful information for investors and management because it measures our capacity to generate cash from our operating and investing activities to sustain our operations. Free Cash Flow reconciles with the total cash flow and the net cash increase (decrease) by including the payment for purchases of (and proceeds from matured) marketable securities and net investment in (and proceeds from) short-term deposits, the net cash from (used in) financing activities and the effect of changes in exchange rates, and by excluding the advances from capital grants received on prior periods allocated to property, plant and equipment in the reporting period. Our definition of Free Cash Flow may differ from definitions used by other companies. • Net revenues of Others: include revenues from sales assembly services and other revenues. Operating income (loss) of Others include items such as unused capacity charges, including incidents leading to power outage, impairment and restructuring charges, management reorganization costs, start-up and phase out costs, and other unallocated income (expenses) such as: strategic or special research and development programs, certain corporate-level operating expenses, patent claims and litigations, and other costs that are not allocated to reportable segments, as well as operating earnings of other products. Others includes: US$M Q124 Q224 Q324 Q424 FY24 Q125 Unused Capacity Charges 63 84 104 118 370 123