GlobalFoundries Inc. · NASDAQ:GFS
GlobalFoundries — Q4 2023 Earnings Presentation
25 slides from GlobalFoundries's earnings presentation, Feb 13, 2024
Slide 1: Fourth Quarter 2023 and Fiscal Year 2023 Financial Results
Fourth Quarter 2023 and Fiscal Year 2023 Financial Results (unaudited) February 13, 2024 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: Q4'23 Results
Q4'23 Results 3
Slide 4: Key Q4'23 Results
Key Q4'23 Results (Unaudited) Revenue Adjusted EBITDA & Margin Wafer Shipments Millions USD Millions USD 300mm equivalents (k) -12% -6% -5% 2,101 821 1,854 773 39.1% 39.1% 580 552 41.7% Q4'22 Q4'23 Q4'22 Q4'23 Q4'22 Q4'23 Adjusted EBITDA is a Non-IFRS measure. We define adjusted EBITDA as net income
Slide 5: Key 2023 Results
Key 2023 Results (Unaudited) Revenue Adjusted EBITDA & Margin Wafer Shipments Millions USD Millions USD 300mm equivalents (k) -9% -11% -11% 8,108 3,088 7,392 2,763 2,472 2,211 38.1% 37.2% 2022 2023 2022 2023 2022 2023 Adjusted EBITDA is a Non-IFRS measure. We define adjusted EBITDA as net income adj
Slide 6: Key Recent Announcements
Key Recent Announcements GF and Infineon GF has been awarded For the second year in a announced a new multi- $35m in federal funding row, GF has earned a year agreement on the to accelerate the place on Newsweek's supply of Infineon's manufacturing of GF's esteemed list of leading 40nm automotive di
Slide 7: Quarterly Revenue Trend
Quarterly Revenue Trend (Unaudited, Millions USD) 2,101 -12% 1,841 1,845 1,852 1,854 Y/Y Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 GlobalFoundries © 2024 All Rights Reserved 7
Slide 8: Adjusted Gross Margin Trend
Adjusted Gross Margin Trend (Unaudited) 30.1% 29.6% -110 bps 28.5% 29.2% 29.0% Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Note: Adjusted gross profit is a Non-IFRS measure. We define adjusted gross profit as gross profit adjusted for share-based compensation. Adjusted gross margin is adjusted gross profit divide
Slide 9: Adjusted EBITDA Margins Trend
Adjusted EBITDA Margins Trend (Unaudited) 41.7% 39.1% +260 bps 35.6% 36.2% 36.0% Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Adjusted EBITDA is a Non-IFRS measure. We define adjusted EBITDA as net income adjusted for the impact of finance expense, finance income, income tax expense (benefit), depreciation and amo
Slide 10: Q4'23 Financial Summary
Q4'23 Financial Summary (Unaudited, in millions USD, except per share data and wafer shipments) Year-over-year Sequential Q4'23 Q3'23 Q4'22 Q4'23 vs Q4'22 Q4'23 vs Q3'23 Net revenue $ 1,854 $ 1,852 $ 2,101 $ (247) (12)% $ 2 —% Gross profit 525 529 622 $ (97) (16)% $ (4) (1)% Gross margin 28.3 % 28.6
Slide 11: 2023 Financial Summary
2023 Financial Summary (Unaudited, in millions USD, except per share data and wafer shipments) Year-over-year FY2023 FY2022 FY23 vs FY22 Net revenue $ 7,392 $ 8,108 $ (716) (9)% Gross profit 2,101 $ 2,239 $ (138) (6)% Gross margin 28.4 % 27.6 % +80bps Adjusted gross profit(1) $ 2,149 $ 2,303 $ (154)
Slide 12: Q4'23 Revenue by End Market
(Unaudited, in millions USD) Q4'23 Revenue by End Market ((in millions USD) Year-over-year Sequential Q4'23 Q3'23 Q4'22 Q4'23 vs Q4’22 Q4’23 vs Q3’23 Smart Mobile Devices $765 $779 $823 $(58) (7)% $(14) (2)% Communications Infrastructure & Datacenter $144 $156 $386 $(242) (63)% $(12) (8)% Home and I
Slide 13: 2023 Revenue by End Market
2023 Revenue by End Market (Unaudited, in millions USD) Year-over-year 2023 2022 2023 vs 2022 Smart Mobile Devices $3,023 $3,723 $(700) (19)% Communications Infrastructure & Datacenter $863 $1,423 $(560) (39)% Home and Industrial IoT $1,395 $1,483 $(88) (6)% Automotive $1,046 $373 $673 180% Personal
Slide 14: Revenue Mix by End Market
Revenue Mix by End Market (Unaudited) 12% 12% Smart Mobile Devices 5% 5% Communications Infrastructure & Datacenter 41% 5% 39% Home & Industrial IoT 17% Q4'23 Q4'22 Automotive 20% Personal Computing 17% 8% Non-Wafer & 18% Corporate Other GlobalFoundries © 2024 All Rights Reserved 14
Slide 15: Revenue Mix by End Market
Revenue Mix by End Market (Unaudited) 11% 10% Smart Mobile Devices 3% 4% 5% Communications Infrastructure & Datacenter 14% 41% 46% Home & Industrial IoT 2023 2022 18% Automotive Personal Computing 19% 12% 18% Non-Wafer & Corporate Other GlobalFoundries © 2024 All Rights Reserved 15
Slide 16: Q1'24 Guidance
Q1’24 Guidance 16
Slide 17: Q1'24 Guidance
(1) Q1’24 Guidance (Unaudited, in millions USD except per share amounts) IFRS Share-Based Non-IFRS Adjusted(2) Compensation Net revenue $1,500 - $1,540 — — Gross profit $329 - $371 $14 - $16 $345 - $385 Gross margin (mid-point)(3) 23.0% 24.0% Operating profit $60 - $130 $50 - $60 $120 - $180 Operati
Slide 18: Appendix: Summary Financials and Reconciliations
Appendix: Summary Financials and Reconciliations 18
Slide 19: Statement of Operations
Statement of Operations (Unaudited, in millions USD except per share amounts) 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 YTD 2022 YTD 2023 Net revenue $ 1,940 $ 1,993 $ 2,074 $ 2,101 $ 1,841 $ 1,845 $ 1,852 $ 1,854 $ 8,108 $ 7,392 Cost of revenue 1,471 1,455 1,464 1,479 1,326 1,313 1,323 1,329 5,869 5,291 Gr
Slide 20: Statements of Financial Position
Statements of Financial Position (Unaudited, in millions USD) As of December 31, 2023 December 31, 2022 Assets: Cash and cash equivalents $ 2,387 $ 2,352 Receivables, prepayments and other 1,420 1,487 Marketable securities 1,033 622 Inventories 1,487 1,339 Current assets 6,327 5,800 Deferred tax ass
Slide 21: Statement of Cash Flows
Statement of Cash Flows (Unaudited, in millions USD) Three Months Ended Year Ended (in millions USD) December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Cash flows from operating activities: Net income $ 278 $ 668 $ 1,018 $ 1,446 Depreciation and amortization 402 409 1,451 1,623
Slide 22: IFRS to Non-IFRS Reconciliations
IFRS to Non-IFRS Reconciliations (Unaudited, in millions USD except per share amounts) 2022 2023 Full Year Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2023 Net revenue $1,940 $1,993 $2,074 $2,101 $1,841 $1,845 $1,852 $1,854 $8,108 $7,392 Gross profit $469 $538 $610 $622 $515 $532 $529 $525 $2,239 $2,101 Gross prof
Slide 23: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA (Unaudited, in millions USD) 2022 2023 Full Year Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2022 2023 Net income for the period $178 $264 $336 $668 $254 $237 $249 $278 $1,446 $1,018 Depreciation and amortization 408 411 395 409 343 340 366 402 1,623 1,451 Finance expense
Slide 24: Financial Measures (Non-IFRS)
Financial Measures (Non-IFRS) In addition to the financial information presented in accordance with IFRS, this presentation and the accompanying oral presentation include the following Non-IFRS metrics: adjusted gross profit, adjusted operating profit, adjusted operating expense, adjusted net income
Slide 25: 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