STMicroelectronics
Outlines Path to $20B+
Revenue Ambition
atCapital Markets Day
- Leverage early focus on Smart
Mobility, Power and Energy Management, and IoT &
Connectivity
- Build on strength of Integrated Device Manufacturer
model, customer relationships and established end-market and
application strategy
Geneva, May 12,
2022 – STMicroelectronics
(NYSE:STM), a global semiconductor leader serving
customers across the spectrum of electronics applications, today
will host its Capital Markets Day in Paris, France.
The event and live webcast will feature an introduction from
President and Chief Executive Officer Jean-Marc Chery and
presentations from executive management, who will share details on
ST’s strategy, key market trends and growth opportunities,
developments in manufacturing, technology and products, ESG
sustainability strategy and value creation.
The summary table below includes the Company’s expectations
regarding its previously disclosed sales and operating plan for
full year 2022 revenues and the newly issued ambition for 2025-27
to be shared at today’s event.
|
FY 2022 Plan |
FY 2025-27 Ambition |
Revenues |
$14.8B- $15.3B |
$20B+ |
Gross Margin |
~46% |
~50% |
Operating Margin |
24% - 26% |
>30% |
EBITDA Margin |
- |
>40% |
Free Cash Flow* |
>$700M |
>25% |
*Non-U.S. GAAP measure. Financials assume a currency exchange
rate of approximately $1.12 = €1.00.
Within the framework of an unchanged value proposition focused
on sustainable and profitable growth, providing differentiating
enablers to customers and with a strong commitment to
sustainability, ST will leverage its early focus on three long-term
enablers: smart mobility, power and energy management, and IoT
& connectivity.
ST’s $20B+ revenue ambition will build on the strength of the
Company’s Integrated Device Manufacturer model and customer
relationships and will be based on its established end-market and
application strategy, focused on Industrial and Automotive as a
broad range leader and selective leadership positions in Personal
Electronics and Communications Equipment, Computers &
Peripherals.
This revenue ambition is anticipated to be driven by: 1) the
Company’s core business, leveraging ST’s technology and market
leadership, expected to grow in line with its established market;
and 2) high growth areas, within or adjacent to ST’s core business,
where the Company has or targets market leadership and is investing
in technology, talent, product development and manufacturing.
Capital Markets Days topics and presenters:
- Introduction – Jean-Marc Chery, President & CEO
- Automotive and discrete products and business opportunities –
Marco Monti, President, Automotive and Discrete Product Group
(ADG)
- Analog, MEMS and sensors products and business opportunities –
Marco Cassis, President, Analog, MEMS and Sensors Group (AMS), Head
of ST’s Strategy, System Research and Applications, Innovation
Office
- Microcontrollers and RF communications products and business
opportunities – Remi El-Ouazzane, President, Microcontrollers and
Digital ICs Group (MDG)
- Manufacturing and technology – Orio Bellezza, President,
Technology, Manufacturing, Quality and Supply Chain
- ESG sustainability strategy – Rajita D’Souza, President, Human
Resources and Corporate Social Responsibility
- Financial overview – Lorenzo Grandi, President, Finance,
Purchasing, ERM & Resilience, Chief Financial Officer
The Company will webcast live its 2022 Capital Markets Day
meeting from Paris, France, on Thursday, May 12, from 9:00 a.m. to
1:15 p.m. Central European Time (CET) / 3:00 a.m. to 7:15 a.m.
U.S. Eastern Time (ET).
The live webcast featuring video, audio and presentation slides
will be accessible at ST’s website, cmd.st.com. All presentation
materials can also be downloaded from the website immediately prior
to the start of the webcast and a recording of the event will be
made available on the website after the conclusion of the
event.
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, 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;
- 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
macroeconomic or regional events, military conflicts, (including
the military conflict between Russia and the Ukraine), 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;
- legal, political and economic uncertainty surrounding Brexit
may be a continued source of instability in international markets
and currency exchange rate volatility and may adversely affect
business activity, political stability and economic conditions and
while we do not have material operations in the U.K. and have not
experienced any material impact from Brexit on our underlying
business to date, we cannot predict its future implications;
- 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 or
suppliers;
- theft, loss, or misuse of personal data about our employees,
customers, or other third parties, and breaches of global and local
privacy legislation, including the EU’s General Data Protection
Regulation (“GDPR”);
- the impact of intellectual property 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 such as the COVID-19 pandemic 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
commitment to be carbon neutral by 2027;
- potential loss of key employees and potential inability to
recruit and retain qualified employees as a result of the COVID-19
pandemic, remote-working arrangements and the corresponding
limitation on social and professional interaction;
- the duration and the severity of the global outbreak of
COVID-19 may continue to 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;
and
- 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.
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 risks 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, 2021 as
filed with the SEC on February 24, 2022. 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 risks or uncertainties
listed under “Item 3. Key Information — Risk Factors” from time to
time in our Securities and Exchange Commission filings, could have
a material adverse effect on our business and/or financial
condition.
About STMicroelectronicsAt ST, we are 48,000
creators and makers of semiconductor technologies mastering the
semiconductor supply chain with state-of-the-art manufacturing
facilities. An integrated device manufacturer, we work with more
than 200,000 customers and thousands of partners to design and
build products, solutions, and ecosystems that address their
challenges and opportunities, and the need to support a more
sustainable world. Our technologies enable smarter mobility, more
efficient power and energy management, and the wide-scale
deployment of the Internet of Things and connectivity. ST is
committed to becoming carbon neutral by 2027. Further information
can be found at www.st.com.
For further information, please contact:INVESTOR
RELATIONS:Céline BerthierGroup VP, Investor RelationsTel:
+41.22.929.58.12celine.berthier@st.com
MEDIA RELATIONS:Alexis
Breton Corporate
External CommunicationsTel: +
33.6.59.16.79.08alexis.breton@st.com
- STMicroelectronics C3089C - May12 2022-Capital Markets Day
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