GlobalFoundries Inc. · NASDAQ:GFS
GlobalFoundries — Q2 2023 Earnings Presentation
21 slides from GlobalFoundries's earnings presentation, Aug 8, 2023
Slide 1: Second Quarter 2023 Financial Results
Second Quarter 2023 Financial Results(unaudited) August 8, 2023 1
Slide 2: Disclaimer
Disclaimer This presentation and the accompanying oral presentation include “forward-looking statements,” that reflect our current expectations and views of future events. These forward-looking statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Ac
Slide 3: Q2'23 Results
Q2'23 Results 3
Slide 4: Key Q2'23 Results
Key Q2'23 Results (Unaudited) Revenue Adjusted EBITDA & Margin Wafer Shipments Millions USD Millions USD 300mm equivalents (k) -7% -15% -9% 1,993 784 1,845 668 630 573 39.3% 39.1% 36.2% Q2'22 Q2'23 Q2'22 Q2'23 Q2'22 Q2'23 Note: We define adjusted EBITDA as net income (loss), excluding the impact of
Slide 5: Key Recent Announcements
Key Recent Announcements GF and Lockheed Martin The U.S. Department of GF published its Annual announced a strategic Defense accredited GF’s Corporate Responsibility collaboration to advance advanced manufacturing Report, highlighting the U.S. semiconductor facility in Malta, New company's commitmen
Slide 6: Quarterly Revenue Trend
Quarterly Revenue Trend (Unaudited, Millions USD) 2,074 2,101 1,993 -7% 1,841 1,845 Y/Y Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 GlobalFoundries © 2023 All Rights Reserved 6
Slide 7: Adjusted Gross Margin Trend
Adjusted Gross Margin Trend (Unaudited) 29.9% 30.1% 29.6% 28.0% 28.5% +160 bps Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Note: Adjusted gross profit a Non-IFRS measure which we define as gross profit for a particular period, adjusted for share-based compensation expense; adjusted gross margin is adjusted gross
Slide 8: Adjusted EBITDA Margins Trend
Adjusted EBITDA Margins Trend (Unaudited) 39.3% 39.1% 38.2% 35.6% 36.2% (310) bps Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Note: Adjusted EBITDA is a Non-IFRS measure which we define as net income (loss), excluding the impact of finance expense, finance income, income tax expense, depreciation, amortization, s
Slide 9: Q2'23 Financial Summary
Q2'23 Financial Summary (Unaudited, in millions USD, except per share data and wafer shipments) Year-over-year Sequential Q2'23 Q1'23 Q2'22 Q2'23 vs Q2'22 Q2'23 vs Q1'23 Net revenue $ 1,845 $ 1,841 $ 1,993 $ (148) (7)% $ 4 —% Gross profit 532 515 538 $ (6) (1)% $ 17 3% Gross margin 28.8 % 28.0 % 27.
Slide 10: Q2'23 Revenue by End Market
(Unaudited, in millions USD) Q2'23 Revenue by End Market Year-over-year Sequential Q2'23 Q1'23 Q2'22 Q2’23 vs Q2’22 Q2’23 vs Q1’23 Smart Mobile Devices $783 $696 $969 $(186) (19)% $87 13% Communications Infrastructure & Datacenter $211 $352 $342 $(131) (38)% $(141) (40)% Home and Industrial IoT $358
Slide 11: Revenue Mix by End Market
Revenue Mix by End Market (Unaudited) 8% 11% Smart Mobile Devices 5% 3% 4% Communications Infrastructure & Datacenter 13% 42% Home & Industrial IoT 17% Q2'22 49% Q2'23 Automotive 19% Personal Computing 17% 12% Non-Wafer & Corporate Other GlobalFoundries © 2023 All Rights Reserved 11
Slide 12: Q3'23 Guidance
Q3’23 Guidance 12
Slide 13: Q3'23 Guidance
(1) Q3’23 Guidance (Unaudited, in millions USD except per share amounts) IFRS Share-Based Non-IFRS Adjusted(2) Compensation Net revenue $1,825 - $1,870 — — Gross Profit $485 - $527 $15- $17 $502 - $542 Gross Margin (mid-point)(3) 27.4% 28.3% Operating Profit $227 - $287 $40 - $50 $277 - $327 Operati
Slide 14: Appendix: Summary Financials and Reconciliations
Appendix: Summary Financials and Reconciliations 14
Slide 15: Statement of Operations
Statement of Operations (Unaudited, in millions USD except per share amounts) 2021 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Net revenue $ 1,418 $ 1,620 $ 1,700 $ 1,847 $ 1,940 $ 1,993 $ 2,074 $ 2,101 $ 1,841 $ 1,845 Cost of sales 1,319 1,389 1,400 1,463 1,471 1,455 1,464 1,479 1,326 1,313 Gross profi
Slide 16: Balance Sheet
Balance Sheet (Unaudited, in millions USD) As of June 30, 2023 December 31, 2022 Assets: Cash and cash equivalents $ 1,832 $ 2,352 Receivables, prepayments and other 1,232 1,487 Marketable securities 955 622 Inventories 1,504 1,339 Current assets 5,523 5,800 Deferred tax assets 245 292 Property, pla
Slide 17: Statement of Cash Flows
Statement of Cash Flows (Unaudited, in millions USD) Three Months Ended (in millions USD) June 30, 2023 June 30, 2022 Cash flows from operating activities: Net income $ 237 $ 264 Depreciation and amortization 340 411 Finance expense, net and other(1) (14) (10) Deferred income taxes 24 22 Other non-c
Slide 18: IFRS to Non-IFRS Reconciliations
IFRS to Non-IFRS Reconciliations (Unaudited, in millions USD except per share amounts) 2021 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Gross profit for the period $99 $231 $300 $384 $469 $538 $610 $622 $515 $532 Gross profit margin 7.0% 14.3% 17.6% 20.8% 24.2% 27.0% 29.4% 29.6% 28.0% 28.8% Share-based
Slide 19: Unaudited reconciliation of Net Income to Adjusted EBITDA
Unaudited reconciliation of Net Income to Adjusted EBITDA (Unaudited, in millions USD) 2021 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Net Income (Loss) for the period $(127) $(174) $5 $43 $178 $264 $336 $668 $254 $237 Depreciation and amortization 377 408 415 419 408 411 395 409 343 340 Finance expens
Slide 20: Financial Measures (Non-IFRS)
Financial Measures (Non-IFRS) In addition to the financial information presented in accordance with IFRS, this press release includes the following Non-IFRS metrics: adjusted gross profit, adjusted selling, general and administrative expense, adjusted research and development expense, adjusted opera
Slide 21: Thank you
For further information, please contact: Investor Relations [email protected] Thank you The information contained herein is the property of GlobalFoundries and/or its licensors. This document is for informational purposes only, is current only as of the date of publication and is subject to change by Global