stm-6k_20220824.htm

 

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6‑K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a‑16 OR 15d‑16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

Report on Form 6‑K dated August 24, 2022

Commission File Number:  1‑13546

 

STMicroelectronics N.V.

(Name of Registrant)

WTC Schiphol Airport

Schiphol Boulevard 265

1118 BH Schiphol Airport

The Netherlands

(Address of Principal Executive Offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20‑F or Form 40‑F:

Form 20‑F Form 40‑F

Indicate by check mark if the registrant is submitting the Form 6‑K in paper as permitted by Regulation S‑T Rule 101(b)(1):

Yes No 

Indicate by check mark if the registrant is submitting the Form 6‑K in paper as permitted by Regulation S‑T Rule 101(b)(7):

Yes No 

Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the Commission pursuant to Rule 12g3‑2(b) under the Securities Exchange Act of 1934:

Yes No

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3‑2(b):  82‑ __________

 

Enclosure: A press release dated August 24, 2022 announcing that STMicroelectronics has posted its IFRS 2022 Semi Annual Accounts, and the STMicroelectronics N.V. Semi Annual IFRS Report 2022.

 

 

 

 

 


 

 

 

 

 

 


 

 

Contents

 

1.

CORPORATE OVERVIEW

 

4

 

1.1.

History and development of STMicroelectronics

 

4

 

1.2.

Strategy and objectives

 

4

 

1.3.

Organizational structure

 

5

 

1.4.

Products and activities

 

5

 

1.5.

Sales, Marketing and Distribution

 

6

 

1.6.

Research & Development

 

6

 

1.7.

Sustainability

 

7

2.

REPORT OF THE MANAGING BOARD

 

8

 

2.1.

Business overview

 

8

 

2.2.

Segment information

 

9

 

2.3.

Liquidity and financial position

 

9

 

2.4.

Business and financial outlook

 

13

 

2.5.

Other developments

 

13

 

2.6.

Related party transactions

 

14

 

2.7.

Financial Risk Management

 

14

 

2.8.

Business risk information

 

15

 

2.9.

Auditor’s involvement

 

17

3.

INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (“SEMI ANNUAL
FINANCIAL STATEMENTS”)

 

18

 

3.1.

Consolidated income statement

 

18

 

3.2.

Consolidated statement of comprehensive income

 

19

 

3.3.

Consolidated statement of financial position

 

20

 

3.4.

Consolidated statement of changes in equity

 

21

 

3.5.

Consolidated statement of cash flows

 

23

 

3.6.

Notes to the consolidated financial statements

 

24

 

 

3.6.1.

Corporate information

 

24

 

 

3.6.2.

Basis of preparation

 

24

 

 

3.6.3.

Significant accounting policies

 

24

 

 

3.6.4.

Critical accounting estimates and judgements

 

25

 

 

3.6.5.

Revenues

 

26

 

 

3.6.6.

Segment information

 

27

 

 

3.6.7.

Property, plant and equipment and intangible assets

 

29

 

 

3.6.8.

Goodwill

 

29

 

 

3.6.9.

Other financial assets and financial liabilities

 

30

 

 

3.6.10.

Leases

 

39

 

 

3.6.11.

Inventories

 

39

 

 

3.6.12.

Cash and cash equivalents

 

39

 

 

3.6.13.

Equity

 

40

 

 

3.6.14.

Expenses by nature

 

42

 

 

3.6.15.

Other income / expenses

 

43

 

 

3.6.16

Finance income / costs

 

44

 

 

3.6.17.

Earnings per share

 

45

 

 

3.6.18.

Related-party transactions

 

45

 

 

3.6.19.

Contingencies, claims and legal proceedings

 

45

4.

SOLE MEMBER OF THE MANAGING BOARD’S STATEMENT

 

47

5.

ABOUT STMICROELECTRONICS

 

48

 

 

 

 

 

 

STMicroelectronics Semi Annual Report 2022  

Contents      3

 

 


 

 

 

1.

Corporate overview

 

1.1.

History and development of STMicroelectronics

STMicroelectronics N.V. (“ST” or “the Company”) was formed and incorporated in 1987 as a result of the combination of the semiconductor business of SGS Microelettronica (then owned by Società Finanziaria Telefonica (S.T.E.T.), an Italian corporation) and the non-military business of Thomson Semiconducteurs (then owned by the former Thomson-CSF, now Thales, a French corporation). We completed our initial public offering in December 1994 with simultaneous listings on the Bourse de Paris (now known as “Euronext Paris”) and the New York Stock Exchange (“NYSE”). In 1998, we also listed our shares on the Borsa Italiana S.p.A. (“Borsa Italiana”).

We operated as SGS-Thomson Microelectronics N.V. until May 1998, when we changed our name to STMicroelectronics N.V. We are organized under the laws of The Netherlands, with our corporate legal seat in Amsterdam, The Netherlands, and our head offices at WTC Schiphol Airport, Schiphol Boulevard 265, 1118 BH Schiphol, The Netherlands. Our telephone number there is +31-20-654-3210. Our headquarters and operational offices are managed through our wholly owned subsidiary, STMicroelectronics International N.V., and are located at 39 Chemin du Champ des Filles, 1228 Plan-les-Ouates, Geneva, Switzerland. Our main telephone number there is +41-22-929-2929. Our agent for service of process in the United States related to our registration under the U.S. Securities Exchange Act of 1934, as amended, is Corporation Service Company, 80 State Street, Albany, New York, 12207. Our operations are also conducted through our various subsidiaries, which are organized and operated according to the laws of their country of incorporation, and consolidated by the Company.

 

1.2.

Strategy and objectives

At ST, we are 48,000 creators and makers of semiconductor technologies mastering the semiconductor supply chain with state-of-the-art manufacturing facilities. An independent 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. We develop industry-leading technologies that allow us to provide products and solutions that meet and exceed the needs and expectations of our customers now and into the future.

Our strategy focuses on long-term value creation for the Company and its affiliated enterprises and takes into account the short-, medium- and longer-term evolution of the markets we serve and the environment and opportunities we see. It stems from key long-term enablers: Smart Mobility, where we provide innovative solutions to help our customers make driving safer, greener, and more connected for everyone; Power & Energy: our technology and solutions enable customers to increase energy efficiency everywhere and support the use of renewable energy sources; Internet of Things (“IoT”) & 5G supporting the proliferation of smart, connected IoT devices with products, solutions and ecosystems to make development fast and easy for our customers.

We are focused on application areas that are expected to experience solid growth rates driven by broad, long-term trends in electronic systems. These trends require enablers such as autonomous systems, robotics, securely connected machines and personal devices, digitalization and electrification of automobiles and infrastructure, advanced communications equipment and networks, and more power efficient systems.  These enablers drive in turn the demand for the electronic components we develop and manufacture.

Our products are used in a wide variety of applications for the four end-markets we address: automotive, industrial, personal electronics and communications equipment, computers and peripherals.  For the automotive and industrial markets we address a wide customer base, particularly in industrial, with a broad and deep product portfolio.  In personal electronics and communications equipment, computers and peripherals we have a selective approach both in terms of the customers we serve, as well as in the technologies and products we offer.

 

 

STMicroelectronics Semi Annual Report 2022  

Corporate Overview      4

 

 


 

 

1.3.

Organizational structure

We are organized in a matrix structure with geographic regions interacting with product lines, both supported by shared technology and manufacturing operations and by central functions, designed to enable us to be closer to our customers and to facilitate communication among the R&D, production, marketing and sales organizations.

While STMicroelectronics N.V. is our parent company, we conduct our global business through STMicroelectronics International N.V. and also conduct our operations through service activities from our subsidiaries. We provide certain administrative, human resources, legal, treasury, strategy, manufacturing, marketing and other overhead services to our consolidated subsidiaries pursuant to service agreements for which we recover the cost.

 

1.4.

Products and activities

We are a global independent semiconductor company that designs, develops, manufactures and markets a broad range of products, including discrete and standard commodity components, application-specific integrated circuits (“ASICs”), full-custom devices and semi-custom devices and application-specific standard products (“ASSPs”) for analog, digital and mixed-signal applications.

Our diverse product portfolio benefits from a unique, strong foundation of proprietary and differentiated leading-edge technologies. We use all of the prevalent function-oriented process technologies, including complementary metal-on silicon oxide semiconductors (“CMOS”), bipolar and non-volatile memory technologies. In addition, by combining basic processes, we have developed advanced systems-oriented technologies that enable us to produce differentiated and application-specific products, including our pioneering fully depleted silicon-on-insulator (“FD-SOI”) technology offering superior performance and power efficiency compared to bulk CMOS, Bipolar CMOS technologies (“Bi-CMOS”) and radio frequency silicon-on-insulator (“RF-SOI”) for mixed-signal and high-frequency applications, as well as a combination of Bipolar, CMOS and DMOS (“BCD”) and vertically integrated power (“VIPower”) and intelligent integrated gallium nitride (“STiGaN”) for smart power applications, Power MOSFET, silicon carbide (“SiC”) and gallium nitride (“GaN”) for high-efficiency systems, Micro-Electro-Mechanical Systems (“MEMS”) technologies for sensors and actuators, embedded memory technologies for our microcontrollers and differentiated optical sensing technologies for our optical sensing solutions.

Our operating segments are as follows:

 

Automotive and Discrete Group (ADG), comprised of dedicated automotive integrated circuits (“ICs”), and discrete and power transistor products.

 

Analog, MEMS and Sensors Group (AMS), comprised of analog, smart power, low power RF, MEMS sensors and actuators, and optical sensing solutions.

 

Microcontrollers and Digital ICs Group (MDG), comprised of microcontrollers (general purpose and secure), memories (RF and EEPROM), and RF communications.

For the computation of the segments’ internal financial measurements, we use certain internal rules of allocation for the costs not directly chargeable to the segments, including cost of sales, selling, general and administrative (“SG&A”) expenses and a part of research and development (“R&D”) expenses. In compliance with our internal policies, certain costs are not allocated to the segments, but reported in “Others”. Those comprise unused capacity charges, including reduced manufacturing activity due to COVID-19 and incidents leading to power outage, impairment, restructuring charges and other related closure costs, management reorganization expenses, phase-out and start-up costs of certain manufacturing facilities, and other unallocated expenses such as: strategic or special R&D programs, certain corporate-level operating expenses, patent claims and litigations, and other costs that are not allocated to product groups, as well as operating earnings of other products. In addition, depreciation and amortization expense is part of the manufacturing costs allocated to the segments and is neither identified as part of the inventory variation nor as part of the unused capacity charges; therefore, it cannot be isolated in cost of sales. Finally, public grants are allocated to our segments proportionally to the incurred R&D expenses on the sponsored projects.

 

 

 

STMicroelectronics Semi Annual Report 2022  

Corporate Overview      5

 

 


 

 

 

1.5.

Sales, Marketing and Distribution

Our sales and marketing is organized by a combination of regional and key account coverage with the primary objective of accelerating sales growth and gaining market share. Emphasis is placed on strengthening the development of our global and major local accounts; boosting demand creation through an enhanced focus on geographical and key account coverage with strong technical and application expertise, supported in the mass market by our distribution channel and local initiatives; and establishing regional sales and marketing teams that are fully aligned with our strategic end-markets: automotive, industrial, personal electronics and communications equipment, computers and peripherals.

We have four regional sales organizations reporting to a global head of Sales & Marketing: Americas; Asia Pacific excluding China; China; and Europe, Middle East, Africa (“EMEA”). Our regional sales organizations have a similar structure to enhance global coordination and go-to-market activities. The sales and marketing teams are strongly focused on profitable revenue growth and business performance as well as on fostering demand creation, expanding the customer base, maximizing market share, developing new product-roadmaps and providing the best technical and application support in the field for our customers. The sales and marketing activities are supported by sales engineers, system marketing, product marketing, application labs, field application engineers and quality engineers.

 

1.6.

Research & Development

Since our formation, we have maintained a solid commitment to innovation.  About one-fifth of our employees work in R&D on product design/development and technology. Our innovations in semiconductor technology as well as in hardware and software contribute to the creation of successful products that generate value for us and our customers. Our complete design platforms, including a large selection of intellectual property (“IP”) and silicon-proven models and design rules, enable the fast development of products designed to meet customer expectations in terms of reliability, quality, competitiveness in price and time-to-market. Through our R&D efforts, we contribute to making our customers’ products more efficient, more appealing, more reliable and safer. Our technology R&D strategy is based on the development of differentiated technologies, allowing for a unique offer in terms of new products and enabling new applications opportunities.

We draw on a rich pool of chip fabrication technologies, including advanced CMOS, FD-SOI, RF-SOI, optical sensing, embedded non-volatile memories, mixed-signal, analog, MEMS, smart power, SiC and GaN processes. This is well embedded in our strong packaging technologies portfolio such as high pin count ball grid array (“BGA”) packages, Wafer level packaging, highly integrated sensor packages and leadframe package power products. We combine both front-end and back-end manufacturing and technology R&D under the same organization to ensure a smooth flow of information between our R&D and manufacturing organizations. We leverage significant synergies and shared activities between our product groups to cross-fertilize them. We also use silicon foundries, especially for advanced CMOS beyond the 28nm node that we do not plan to manufacture nor develop internally.

We have advanced R&D and innovation centers which offer us a significant advantage in quickly and cost-effectively introducing products. Furthermore, we have established a strong culture of partnerships and through the years have created a network of strategic collaborations with key customers, suppliers, competitors, and leading universities and research institutes around the world. We also play leadership roles in numerous projects running under the European Union’s Information Society Technologies programs. We also participate in certain R&D programs established by the European Union, individual countries and local authorities in Europe (primarily in France and Italy).

 

 

STMicroelectronics Semi Annual Report 2022  

Corporate Overview      6

 

 


 

 

1.7.

Sustainability

Sustainability has been a guiding principle for ST for more than 25 years. In line with our vision to be everywhere microelectronics make a positive contribution to people’s lives, sustainability is deeply embedded in all of our activities. We believe that sustainability is fundamental to our business, brings new opportunities, improves efficiency, reduces risks and secures long-term profitability. It also brings benefits to our employees and our external stakeholders. Our approach to sustainability is to create technology for a sustainable world, prioritizing people and the planet and generating long-term value for all stakeholders. This approach is detailed in our Code of Conduct (available on https://www.st.com/code-of-conduct), our policies and supported by our sustainability strategy and our sustainability charter (available on www.st.com/sustainabilitycharter), and was enhanced by the creation of a Sustainability Committee by our Supervisory Board during the first half of 2022.

At the heart of our sustainability strategy is an unceasing focus on what really matters for us and our stakeholders. We identify the most material topics for our stakeholders and their impacts on our business by carrying out an extensive materiality exercise every three years, followed by yearly review through various stakeholder’s engagement channels. For each material topic identified, we define a specific ambition and long-term goal.

Through our Sustainable Technology Program, we design products by systematically taking into consideration the environmental impact of the device throughout its lifecycle, including responsible sourcing, eco-design, manufacturing, transportation, usage, and end-of-life processing.

In December 2020 we announced our target to become carbon neutral by 2027, the earliest date anticipated for any semiconductor company globally. We have built a comprehensive roadmap with two specific targets: compliance with the 1.5°C scenario defined at the Paris COP21 by 2025, which implies a 50% reduction of direct and indirect emissions compared to 2018, and the sourcing of 100% renewable energy by 2027. The full roadmap covers the reduction of direct and indirect emissions, including product transportation, business travel, and employee commuting.

We are included in many of the main sustainability indices, such as Dow Jones Sustainability Index World and Europe, FTSE4Good, Ethibel, Euronext Vigeo, Institutional Shareholder Services Environmental Social and Governance Prime (“ISS ESG Prime”) and Bloomberg Gender Equality index. We received A- score for CDP Climate Change. In addition, as a member of the Responsible Business Alliance (“RBA”), we participate in the collective efforts of the industry to find solutions to our global sustainability challenges. We have been a signatory of the UN Global Compact since 2000. Our sustainability programs are aligned with its ten principles and contribute to eleven of the seventeen UN Sustainable Development Goals.

Further information on ST’s Sustainability approach can be found in our annual report for the year ended December 31, 2021, filed with the Dutch Authority for the Financial Markets on March 24, 2022 and adopted by our Annual General Meeting of Shareholders on May 25, 2022 and in our sustainability report we publish each year and which is available at: www.st.com/st-approach-to-sustainability/sustainability reports.html

.

 

 

 

 

STMicroelectronics Semi Annual Report 2022  

Corporate Overview      7

 

 


 

 

2.

Report of the Managing Board

 

2.1.

Business overview

Our total available market is defined as “TAM”, while our serviceable available market is defined as “SAM” and represents the market for products sold by us (i.e., TAM excluding major devices such as microprocessors, dynamic random-access memories, optoelectronics devices other than optical sensors, flash memories, consumer logic devices and wireless application specific products, such as baseband and application processors).

Based on the data published by World Semiconductor Trade Statistics, on a year-over-year basis, semiconductor industry revenues in the first half of 2022 increased by approximately 18% for our TAM and 23% for our SAM to reach approximately $304 billion and $142 billion, respectively.

Our first half 2022 revenues amounted to $7,383 million, increasing by 22.9% on a year-over-year basis driven by growth in all product groups. By product group, ADG revenues increased 27.9%, due to both Automotive and Power Discrete, AMS revenues increased 5.7% with all sub-groups contributing and MDG revenues increased 37.3% driven by Microcontrollers and RF Communications subgroup.

Our effective average exchange rate for the first half of 2022 was $1.13 for €1.00 compared to $1.19 for €1.00 for the first half of 2021.

Our first half 2022 gross margin reached 45.2% of total revenues, representing an increase of 750 basis points compared to the first half of 2021 mainly due to higher selling prices and a more favorable product mix, partially offset by lower manufacturing efficiency and a higher level of amortization and write-offs of capitalized development costs.

Combined SG&A and R&D expenses increased to $1,468 million for the first half of 2022, compared to $1,383 million in the first half of 2021, mainly due to higher cost of labor, increased levels of activity in R&D programs, partially offset by positive currency effects.

In the first half of 2022, other income and expenses decreased to a net income of $39 million, compared to a net income of $60 million in the first half of 2021, mainly due to higher losses on derivatives, partially offset by higher income from R&D funding.

Operating profit in the first half of 2022 was $1,906 million compared to $943 million in the first half of 2021.

Combined finance income and costs resulted in a net gain of $329 million in the first half of 2022, compared to a net loss of $53 million in the first half of 2021. The first half of 2022 amount includes a net gain of $338 million for the fair value adjustment of outstanding convertible bond embedded options (compared to a net gain of $28 million in the first half of 2021).

Our net profit attributable to the equity holders of the parent company amounted to $1,945 million for the first half of 2022, equivalent to a Diluted Earnings Per Share of $2.14, compared to net profit attributable to the equity holders of the parent company of $771 million, equivalent to a Diluted Earnings per Share of $0.85 for the first half of 2021.

Our Free Cash Flow, a non-GAAP (“Generally Accepted Accounting Principles”) measure, was $312 million in the first half of 2022 compared to $387 million in the first half of 2021.


 

 

STMicroelectronics Semi Annual Report 2022  

Report of the Managing Board      8

 

 


 

 

 

2.2.

Segment information

We design, develop, manufacture and market a broad range of products, including discrete and standard commodity components, application-specific integrated circuits (“ASICs”), full-custom devices and semi-custom devices and application specific standard products (“ASSPs”) for analog, digital and mixed-signal applications. In addition, we participate in the manufacturing value chain of smartcard products, which includes the production and sale of both silicon chips and smartcards.

Our operating segments are as follows:

 

Automotive and Discrete Group (ADG), comprised of dedicated automotive ICs, and discrete and power transistor products.

 

Analog, MEMS and Sensors Group (AMS), comprised of analog, smart power, low power RF, MEMS sensors and actuators, and optical sensing solutions.

 

Microcontrollers and Digital ICs Group (MDG), comprised of microcontrollers (general purpose and secure), memories (RF and EEPROM), and RF communications.

For the computation of the segments’ internal financial measurements, we use certain internal rules of allocation for the costs not directly chargeable to the segments, including cost of sales, SG&A expenses and a part of R&D expenses. In compliance with our internal policies, certain costs are not allocated to the segments, but reported in “Others”. Those comprise unused capacity charges, including reduced manufacturing activity due to COVID-19 and incidents leading to power outage, impairment, restructuring charges and other related closure costs, management reorganization expenses, phase-out and start-up costs of certain manufacturing facilities, and other unallocated expenses such as: strategic or special R&D programs, certain corporate-level operating expenses, patent claims and litigations, and other costs that are not allocated to product groups, as well as operating earnings of other products. In addition, depreciation and amortization expense is part of the manufacturing costs allocated to the segments and is neither identified as part of the inventory variation nor as part of the unused capacity charges; therefore, it cannot be isolated in cost of sales. Finally, public grants are allocated to our segments proportionally to the incurred R&D expenses on the sponsored projects.

Wafer costs are allocated to the segments based on actual cost. From time to time, with respect to specific technologies, wafer costs are allocated to segments based on market price.

Please refer to note 3.6.6 of the Semi Annual Financial Statements for further information.

 

2.3.

Liquidity and financial position

During the first half of 2022, our net cash and cash equivalents decreased by $197 million. We maintain an adequate cash position and a low debt-to-equity ratio to provide us with adequate financial flexibility. As in the past, our cash management policy is to finance our investment needs mainly with net cash generated from operating activities.

The components of our cash flows are set forth below:

 

 

 

(unaudited)

 

In millions of USD

 

July 2,

2022

 

 

July 3,

2021

 

Net cash from operating activities

 

 

2,200

 

 

 

1,477

 

Net cash used in investing activities

 

 

(2,007

)

 

 

(847

)

Net cash from / (used in) financing activities

 

 

(385

)

 

 

117

 

Effect of change in exchange rates

 

 

(5

)

 

 

(4

)

Net cash increase (decrease)

 

 

(197

)

 

 

743

 

 

 

STMicroelectronics Semi Annual Report 2022  

Report of the Managing Board      9

 

 


 

 

Net cash from operating activities

Net cash from operating activities is the sum of (i) net profit adjusted for non-cash items and (ii) changes in net working capital. The net cash from operating activities for the first half of 2022 was $2,200 million, increasing compared to $1,477 million in the first half of 2021, mainly due to higher net profit.

Net cash used in investing activities

Investing activities used $2,007 million of cash in the first half of 2022, compared to $847 million cash used in the first half of 2021,  mainly as a result of payments for tangible assets, net of proceeds, for a total of $1,650 million and investment in intangible assets of $215 million, of which the largest part is related to the capitalization of development costs.

Net cash from (used in) financing activities

Net cash used in financing activities was $389 million for the first half of 2022, compared to net cash of $117 million generated in the first half of 2021, and consisted mainly of $173 million repurchase of common stock, $103 million of dividends paid to stockholders and $79 million repayment of long-term debt.

Free cash flow (non-GAAP measure)

Free Cash Flow, a non-GAAP measure, is defined as (i) net cash from operating activities plus, (ii) net cash used in investing activities, excluding payment for purchase of (and proceeds from matured) marketable securities, and net investments in  (and proceeds from) short-term deposits, which are considered as temporary financial investments. The result of this definition is ultimately net cash from operating activities plus payments for purchases (and proceeds from sale) of tangible, intangible and financial assets, and net cash paid for business acquisitions. We believe Free Cash Flow, a non-GAAP measure, 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 is a non-GAAP measure and does not represent total cash flow since it does not include the cash flows generated by or used in financing activities. Free Cash Flow reconciles with the net cash increase (decrease) by including the payment for purchase of (and proceeds from matured) marketable securities and net investments in (and proceeds from) short-term deposits, the net cash from (used in) financing activities and the effect of changes in exchange rates. In addition, our definition of Free Cash Flow may differ from definitions used by other companies. Our Free Cash Flow is derived from our US GAAP Consolidated Statements of Cash Flows, which differs from our Consolidated Statements of Cash Flows under International Financial Reporting Standards (“IFRS”). A reconciliation with the Consolidated Statements of Cash Flows under IFRS is provided in the table below:

 

 

STMicroelectronics Semi Annual Report 2022  

Report of the Managing Board      10

 

 


 

 

In millions of USD

 

July 2,

2022

 

 

July 3,

2021

 

Net cash from operating activities as reported under IFRS

 

 

2,200

 

 

 

1,477

 

Excluding US GAAP/IFRS presentation differences:

 

 

 

 

 

 

 

 

Payment for withholding tax on vested shares

 

 

7

 

 

 

9

 

Payment for lease liabilities

 

 

(30

)

 

 

(39

)

Net cash from operating activities as reported under US GAAP

 

 

2,177

 

 

 

1,447

 

 

 

 

 

 

 

 

 

 

Net cash used in investing activities as reported under IFRS

 

 

(2,007

)

 

 

(847

)

Excluding US GAAP/IFRS presentation differences:

 

 

 

 

 

 

 

 

Payment for deferred consideration on business acquisitions

 

 

15

 

 

 

 

Net cash used in investing activities as reported under US GAAP

 

 

(1,992

)

 

 

(847

)

Excluding:

 

 

 

 

 

 

 

 

Payment for purchase of (and proceeds from matured) marketable securities and net investments in short-term deposits

 

 

127

 

 

 

(213

)

Payments for purchases (and proceeds from sale) of tangible, intangible and financial assets (1)

 

 

(1,865

)

 

 

(1,060

)

Free Cash Flow (non-GAAP measure)

 

 

312

 

 

 

387

 

 

 

(1)

Reflects the total of the following line items reconciled with our Consolidated Statement of Cash Flows relating to investing activities: Payments for purchases of tangible assets, proceeds from sale of tangible assets, Payment for purchases of intangible assets, Payment for financial assets, Proceeds from sale of financial assets.

Our free cash flow was $312 million for the first half of 2022, compared to $387 million for the first half of 2021.

Net Financial Position (non-GAAP measure)

Our Net Financial Position 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 quoted debt securities; our total financial debt includes interest-bearing loans and borrowings, including current portion, as represented in our consolidated statement of financial position. Net Financial Position is a non-GAAP measure but we believe it provides useful information for investors and management because it gives 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 quoted debt securities and the total level of our financial indebtedness. Our definition of Net Financial Position may differ from definitions used by other companies and therefore comparability may be limited. Our Net Financial Position is derived from our US GAAP Consolidated Balance Sheets, which differs from the Consolidated Statements of Financial Position under IFRS. A reconciliation with the Consolidated Statements of Financial Position under IFRS is provided in the table below:

 

 

STMicroelectronics Semi Annual Report 2022  

Report of the Managing Board      11

 

 


 

 

In millions of USD

 

July 2,

2022

 

 

December 31,

2021

 

Cash and cash equivalents

 

 

3,028

 

 

 

3,225

 

Short-term deposits

 

 

186

 

 

 

291

 

Government bonds issued by the U.S. Treasury

 

 

229

 

 

 

 

Total liquidity

 

 

3,443

 

 

 

3,516

 

Funding program loans from European Investment Bank

 

 

(853

)

 

 

(990

)

Credit Facility from CDP

 

 

(130

)

 

 

(156

)

Dual tranche senior unsecured convertible bonds

 

 

(1,395

)

 

 

(1,382

)

Other funding programs loans

 

 

(5

)

 

 

(6

)

Total financial debt as reported under IFRS

 

 

(2,383

)

 

 

(2,534

)

US GAAP/IFRS differences

 

 

(136

)

 

 

(5

)

Total financial debt as reported under US GAAP

 

 

(2,519

)

 

 

(2,539

)

Net financial position (non-GAAP measure)

 

 

924

 

 

 

977

 

 

Our Net Financial Position as of July 2, 2022 was a net cash position of $924 million, decreasing compared to the net cash position of $977 million as of December 31, 2021.

 

As of July 2, 2022, our financial debt was $2,383 million, composed of (i) $133 million of current portion of long-term debt and (ii) $2,250 million of long-term debt. The breakdown of our total financial debt included: (i) $1,395 million in senior unsecured convertible bonds issued in 2020, (ii) $853 million in European Investment Bank loans (the “EIB Loans”), (iii) $130 million in the CDP loan and (iv) $5 million in loans from other programs.

 

The EIB Loans are comprised of three long-term amortizing credit facilities as part of our R&D funding programs. The first, signed in August 2017, is a €500 million loan, in relation to R&D and capital expenditures in the European Union, fully drawn in Euros, of which $366 million was outstanding as of July 2, 2022. The second, signed in 2020, is a €500 million facility agreement with EIB to support R&D and capital expenditure programs in Italy and France. It was fully drawn in 2021, of which $487 million was outstanding as of July 2, 2022. The third one, signed in February 2022, is a €600 million loan to support R&D and capital expenditure programs in Italy and France, of which no amount was drawn as of July 2, 2022.

 

On August 4, 2020, we issued $1.5 billion principal amount dual tranche senior unsecured convertible bonds (Tranche A for $750 million and Tranche B for $750 million), due 2025 and 2027, respectively. Tranche A bonds were issued at 105.8% as zero-coupon bonds and Tranche B bonds were issued at 104.5% as zero-coupon bonds. The conversion price at issuance was $43.62 for Tranche A equivalent to a 47.5% conversion premium and $45.10 for Tranche B, equivalent to a 52.5% conversion premium. These conversion features correspond to an equivalent of 4,585 shares per each Tranche A bond $200,000 par value and an equivalent of 4,435 shares per each Tranche B bond $200,000 par value. The bonds are convertible by the bondholders or are callable by us upon certain conditions, on a net-share settlement basis, except if we elect a full-cash or full-share conversion as an alternative settlement. The net proceeds from the bond offering were $1,567 million, after deducting issuance costs paid by the Company.

 

Our long-term debt contains standard conditions but does not impose minimum financial ratios. We had unutilized committed medium-term credit facilities with core relationship banks totaling $ 1,261 million as of July 2, 2022.

Our current ratings with the three major rating agencies that report on us on a solicited basis, are as follows: Standard & Poor’s (“S&P”): BBB with stable outlook; Moody’s Investors Service (“Moody’s”): Baa2 with stable outlook; Fitch Ratings (“Fitch”): BBB with stable outlook.

 

 

 

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2.4.

Business and financial outlook

We are driving the Company based on a plan for full year 2022 net revenues in the range of $ 15.9 billion to $16.2 billion.  

Our policy is to modulate our capital spending according to the evolution of the semiconductor market. We are on track with our 2022 plan to invest about $3.4 billion to $3.6 billion in capital expenditures to further increase our production capacity and to support our strategic initiatives. A large portion of these capital expenditures will be devoted to support capacity additions and mix change in our manufacturing footprint, in particular for our wafer fabs: (i) digital 300mm in Crolles, France, optimizing existing infrastructures and extending the cleanroom to support production expansion on our main runner technologies; (ii) certain selected programs of capacity growth and infrastructure preparation in some of our most advanced 200mm fabs, including the analog 200mm fab in Singapore and (iii) increase capacity for SiC power mosfet in our Catania and Singapore fabs. The most important 2022 capital investments for our back-end facilities will be: (i) capacity growth on certain package families, including the SiC technology and automotive related packages, next generation optical sensing technologies and the new generation of Intelligent Power Modules for Automotive and Industrial applications and (ii) specific investments in innovative assembly processes and test operations.

A portion of our capital expenditures will be devoted to strategic initiatives which include: (i) the first industrialization line of our new 300mm wafer fab in Agrate, Italy, to support next generation mixed signal and power technologies; (ii) Gallium nitride (“GaN”) power technologies in our 200mm fab in Tours, France, and prototyping for GaN RF devices in our 150mm fab in Catania, Italy, and (iii) investments for Silicon Carbide (“SiC”) substrates activities. The remaining part of our capital investment plan covers the overall maintenance and efficiency improvements of our manufacturing operations and infrastructure, as well as our Carbon Neutrality execution program in both 150mm, 200mm front-end fabs and back-end plants.

We will continue to invest to support revenues growth and new products introduction, taking into consideration factors such as trends in the semiconductor industry and capacity utilization. We expect to need significant financial resources in the coming years for capital expenditures and for our investments in manufacturing and R&D. We plan to fund our capital requirements with cash provided by operating activities, available funds and support from third parties, and may have recourse to borrowings under available credit lines and, to the extent necessary or attractive based on market conditions prevailing at the time, the issuance of debt, convertible bonds or additional equity securities. A substantial deterioration of our economic results, and consequently of our profitability, could generate a deterioration of the cash generated by our operating activities. Therefore, there can be no assurance that, in future periods, we will generate the same level of cash as in prior years to fund our capital expenditure plans for expanding/upgrading our production facilities, our working capital requirements, our R&D and manufacturing costs.

We believe that we have the financial resources needed to meet our currently projected business requirements for the next twelve months, including capital expenditures for our manufacturing activities, working capital requirements, approved dividend payments and the repayment of our debt in line with maturity dates.

 

2.5.

Other developments

On July 20, we announced a new cooperation model with CARIAD, the software unit of Volkswagen Group, under which the underlying parties will jointly develop an automotive system-on-chip (SoC). The planned cooperation targets the new generation of Volkswagen Group vehicles that will be based on the unified and scalable software platform. At the same time, the parties are moving to agree that TSMC, one of the world’s leading dedicated semiconductor foundry companies, will manufacture the SoC wafers for ST.

 

On August 4, we signed a Commercial and Cooperation Agreement with GlobalFoundries to create a new, jointly-operated 300mm semiconductor manufacturing facility adjacent to ST’s existing 300mm facility in Crolles, France. This facility is targeted to ramp at full capacity by 2026, with up to 620,000 300mm wafer per year production at full build-out. The project remains subject to regulatory approvals from the European Commission’s DG Competition.

 

 

 

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On May 25, we held our Annual General Meeting of Shareholders (AGM) in Schiphol, the Netherlands. The proposed resolutions, all approved by the Shareholders, were:

 

 

The adoption of the Company's Statutory Annual Accounts for the year ended December 31, 2021, prepared in accordance with International Financial Reporting Standards (IFRS-EU) and filed with the Netherlands Authority for the Financial Markets (AFM) on March 24, 2022;

 

The distribution of a cash dividend of $0.24 per outstanding share of the Company’s common stock to be distributed in quarterly installments of $0.06 in each of the second, third and fourth quarters of 2022 and first quarter of 2023;

 

The reappointment of Ms. Janet Davidson, as member of the Supervisory Board for a two-year term to expire at the end of the 2024 AGM;

 

The appointment of Ms. Donatella Sciuto, as member of the Supervisory Board, for a three-year term expiring at the end of the 2025 AGM in replacement of Ms. Lucia Morselli whose mandate expired at the end of the 2022 AGM;

 

The approval of the stock-based portion of the compensation of the President and CEO;

 

The authorization to the Managing Board, until the end of the 2023 AGM, to repurchase shares, subject to the approval of the Supervisory Board;

 

The delegation to the Supervisory Board of the authority to issue new common shares, to grant rights to subscribe for such shares, and to limit and/or exclude existing shareholders’ pre-emptive rights on common shares, until the end of the 2023 AGM;

 

The discharge of the sole member of the Managing Board; and

 

The discharge of the members of the Supervisory Board.

 

2.6.

Related party transactions

Please refer to note 3.6.18 of the Semi Annual Financial Statements.

 

2.7.

Financial Risk Management

We are exposed to changes in financial market conditions in the normal course of business due to our operations in different foreign currencies and our on-going investing and financing activities. Our activities expose us to a variety of financial risks: market risk (including foreign exchange risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. Our risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on our financial performance. We use derivative financial instruments to hedge certain risk exposures. See note 3.6.9.4 of the Semi Annual Financial Statements for further information.

Financial risk management is carried out by our central treasury department (“Corporate Treasury”). Additionally, a treasury committee, chaired by our Chief Financial Officer, steers treasury activities and ensures compliance with corporate policies. Treasury activities are thus regulated by our policies, which define procedures, objectives and controls. The policies focus on the management of financial risk in terms of exposure to market risk, credit risk and liquidity risk. Treasury controls are subject to internal audits. Most treasury activities are centralized, with any local treasury activities subject to oversight from Corporate Treasury. Corporate Treasury identifies, evaluates and hedges financial risks in close cooperation with the Company’s subsidiaries. It provides written principles for overall risk management, as well as written policies covering specific areas, such as foreign exchange risk, interest rate risk, price risk, credit risk, use of derivative financial instruments, and investments of excess liquidity. The majority of cash and cash equivalents is held in U.S. dollars and Euros and is placed with financial institutions rated at least a single “A” long term rating from two of the major rating agencies,

 

 

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Report of the Managing Board      14

 

 


 

meaning at least A3 from Moody’s and A- from S&P or Fitch, or better. These ratings are closely and continuously monitored in order to manage exposure to the counterparty’s risk. Hedging transactions are performed only to hedge exposures deriving from operating, investing and financing activities conducted in the normal course of business.

The Semi Annual Financial Statements do not include all financial risk management information and disclosures required in the annual financial statements; they should be read in conjunction with the Group’s annual consolidated financial statements as of December 31, 2021. There have been no changes in the risk management department or in any risk management policies during the first half of 2022.

Foreign exchange risk

We conduct our business on a global basis in various major international currencies. As a result, we are exposed to adverse movements in foreign currency exchange rates, primarily with respect to the Euro. Foreign exchange risk mainly arises from recognized assets and liabilities at our subsidiaries and future commercial transactions.

Cash flow and fair value interest rate risk

Our interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose us to cash flow interest rate risk. Borrowings issued at fixed rates expose us to fair value interest rate risk.

Credit risk

We select banks and/or financial institutions based on the criteria of long-term rating from at least two major Rating Agencies and keeping a maximum outstanding amount per instrument with each bank not to exceed 20% of the total. For derivative financial instruments, management has established limits so that, at any time, the fair value of contracts outstanding is not concentrated with any individual counterparty.

We monitor the creditworthiness of our customers to which we grant credit terms in the normal course of business. If certain customers are independently rated, these ratings are used. Otherwise, if there is no independent rating, we assess the credit quality of the customer, considering its financial position, past experience and other factors. Individual risk limits are set based on internal and external ratings in accordance with limits set by management. The utilization of credit limits is regularly monitored.

Liquidity risk

Prudent liquidity risk management includes maintaining sufficient cash and cash equivalents, short-term deposits and marketable securities, the availability of funding from committed credit facilities and the ability to close out market positions. Our objective is to maintain an adequate cash position and a low debt-to-equity ratio to ensure adequate financial flexibility. Our liquidity management policy is to finance our investments with net cash provided from operating activities.

 

2.8.

Business risk information

Our risk appetite depends on the nature of risks. We determine, on a regular basis, the amount of risk we are willing to eliminate, mitigate, pursue or retain, depending on associated expected rewards, opportunities and cost of risk optimization.

Below is a list of the main risk factors related to the semiconductor industry and specifically related to our operations, which may affect our result and performance and the ability of management to predict the future:

 

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;

 

 

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Uncertain macro-economic and industry trends (such as inflation and fluctuations in the supply chain), 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 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 (“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;

 

 

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Report of the Managing Board      16

 

 


 

 

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;

 

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 also could 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.

 

2.9.

Auditor’s involvement

The Interim Condensed Consolidated Financial Statements and Interim Report of the Managing Board have not been audited or reviewed by an external auditor.

This report of the Managing Board is dated August 24, 2022.

 

 

 

 

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Report of the Managing Board      17

 

 


 

 

3.

Interim Condensed Consolidated Financial Statements (“Semi Annual Financial Statements”)

The Semi Annual Financial Statements of the Group for the six months ended July 2, 2022, as presented by the Managing Board, have not been audited or reviewed by an external auditor.

 

3.1.

Consolidated income statement

 

 

 

 

 

(unaudited)

 

 

 

 

 

Six-month period ended

 

In millions of USD, except per share amounts

 

Notes

 

July 2, 2022

 

 

July 3, 2021

 

Sales

 

 

 

 

7,370

 

 

 

5,995

 

Other revenues

 

 

 

 

13

 

 

 

13

 

Total revenues

 

3.6.5

 

 

7,383

 

 

 

6,008

 

Cost of sales

 

3.6.14

 

 

(4,048

)

 

 

(3,742

)

Gross profit

 

 

 

 

3,335

 

 

 

2,266

 

Selling, general and administrative

 

3.6.14

 

 

(706

)

 

 

(644

)

Research and development

 

3.6.14

 

 

(762

)

 

 

(739

)

Other income

 

3.6.15

 

 

114

 

 

 

87

 

Other expenses

 

3.6.15

 

 

(75

)

 

 

(27

)

Operating profit

 

 

 

 

1,906

 

 

 

943

 

Finance income

 

3.6.16

 

 

349

 

 

 

109

 

Finance costs

 

3.6.16

 

 

(20

)

 

 

(162

)

Profit before income tax

 

 

 

 

2,235

 

 

 

890

 

Income tax expense

 

 

 

 

(289

)

 

 

(116

)

Net profit

 

 

 

 

1,946

 

 

 

774

 

Attributable to:

 

 

 

 

 

 

 

 

 

 

The equity holders of the parent

 

 

 

 

1,945

 

 

 

771

 

Noncontrolling interests

 

 

 

 

1

 

 

 

3

 

Net profit

 

 

 

 

1,946

 

 

 

774

 

Earnings per share attributable to the equity holders of the parent

 

 

 

 

 

 

 

 

 

 

Earnings per share (Basic)

 

3.6.17

 

 

2.15

 

 

 

0.85

 

Earnings per share (Diluted)

 

3.6.17

 

 

2.14

 

 

 

0.85

 

 

The accompanying notes are an integral part of these interim consolidated financial statements

 

 

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Semi Annual Financial Statements      18

 

 


 

 

3.2.

Consolidated statement of comprehensive income

 

 

 

(unaudited)

 

 

 

Six-month period ended

 

In millions of USD

 

July 2, 2022

 

 

July 3, 2021

 

Net profit

 

 

1,946

 

 

 

774

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss), net of tax:

 

 

 

 

 

 

 

 

Items that will not be reclassified to profit or loss

 

 

 

 

 

 

 

 

Re-measurements of employee benefit obligations

 

 

116

 

 

 

45

 

Income tax effect

 

 

(27

)

 

 

(9

)

Re-measurements of employee benefit obligations, net of tax

 

 

89

 

 

 

36

 

Total items that will not be reclassified to profit or loss

 

 

89

 

 

 

36

 

 

 

 

 

 

 

 

 

 

Items that may be subsequently reclassified to profit or loss

 

 

 

 

 

 

 

 

Exchange differences on translation of foreign operations

 

 

(210

)

 

 

(89

)

Cash flow hedges

 

 

(69

)

 

 

(47

)

Income tax effect

 

 

8

 

 

 

6

 

Net movement on cash flow hedges

 

 

(61

)

 

 

(41

)

Changes in fair value of debt instruments at FVOCI(1)

 

 

(1

)

 

 

(1

)

Net changes in fair value of debt instruments at FVOCI(1)

 

 

(1

)

 

 

(1

)

Total items that may be reclassified subsequently to profit or loss

 

 

(272

)

 

 

(131

)

Other comprehensive income (loss), net of tax

 

 

(183

)

 

 

(95

)

 

 

 

 

 

 

 

 

 

Total comprehensive income (loss), net of tax

 

 

1,763

 

 

 

679

 

 

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

 

The equity holders of the parent

 

 

1,762

 

 

 

676

 

Noncontrolling interests

 

 

1

 

 

 

3

 

Total comprehensive income (loss), net of tax

 

 

1,763

 

 

 

679

 

 

The accompanying notes are an integral part of these interim consolidated financial statements

 

(1) FVOCI: Fair Value through Other Comprehensive Income

 

 

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3.3.

Consolidated statement of financial position

 

In millions of USD

 

Notes

 

July 2, 2022

(unaudited)

 

 

December 31,

2021 (audited)

 

Non-current assets

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment

 

3.6.7

 

 

6,881

 

 

 

5,778

 

Goodwill

 

3.6.8

 

 

276

 

 

 

295

 

Intangible assets

 

3.6.7

 

 

1,468

 

 

 

1,407

 

Other non-current financial assets

 

3.6.9.1

 

 

61

 

 

 

65

 

Deferred tax assets

 

 

 

 

323

 

 

 

438

 

Other non-current assets

 

 

 

 

665

 

 

 

596

 

Total non-current assets

 

 

 

 

9,674

 

 

 

8,579

 

Current assets

 

 

 

 

 

 

 

 

 

 

Inventories

 

3.6.11

 

 

2,316

 

 

 

1,978

 

Trade accounts receivable

 

 

 

 

2,074

 

 

 

1,759

 

Other current financial assets

 

3.6.9.1

 

 

234

 

 

 

6

 

Other receivable and assets

 

 

 

 

628

 

 

 

575

 

Short-term deposits

 

 

 

 

186

 

 

 

291

 

Cash and cash equivalents

 

3.6.12

 

 

3,028

 

 

 

3,225

 

Total current assets

 

 

 

 

8,466

 

 

 

7,834

 

Total assets

 

 

 

 

18,140

 

 

 

16,413

 

Equity

 

 

 

 

 

 

 

 

 

 

Equity attributable to the equity holders of the parent

 

 

 

 

10,992

 

 

 

9,517

 

Noncontrolling interest

 

 

 

 

65

 

 

 

64

 

Total equity

 

3.6.13

 

 

11,057

 

 

 

9,581

 

Non-current liabilities

 

 

 

 

 

 

 

 

 

 

Interest-bearing loans and borrowings

 

3.6.9.3

 

 

2,250

 

 

 

2,391

 

Other non-current financial liabilities

 

3.6.9.2

 

 

457

 

 

 

755

 

Employee benefits

 

 

 

 

396

 

 

 

564

 

Deferred tax liabilities

 

 

 

 

67

 

 

 

48

 

Other non-current liabilities

 

 

 

 

194

 

 

 

109

 

Total non-current liabilities

 

 

 

 

3,364

 

 

 

3,867

 

Current liabilities

 

 

 

 

 

 

 

 

 

 

Interest-bearing loans and borrowings – current portion

 

3.6.9.3

 

 

133

 

 

 

143

 

Trade accounts payable

 

 

 

 

1,998

 

 

 

1,582

 

Other payables and accrued liabilities

 

 

 

 

573

 

 

 

266

 

Employee benefits – current portion

 

 

 

 

658

 

 

 

775

 

Current provisions

 

 

 

 

5

 

 

 

6

 

Other current financial liabilities

 

3.6.9.2

 

 

158

 

 

 

125

 

Income tax payable

 

 

 

 

194

 

 

 

68

 

Total current liabilities

 

 

 

 

3,719

 

 

 

2,965

 

Total equity and liabilities

 

 

 

 

18,140

 

 

 

16,413

 

 

The accompanying notes are an integral part of these interim consolidated financial statements

 

 

 

 

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3.4.

Consolidated statement of changes in equity

For the six-month period ended July 2, 2022

 

In millions of USD

 

Ordinary

shares

 

 

Capital

surplus

 

 

Treasury

shares

 

 

Other

reserves

 

 

Retained

earnings

 

 

Equity

attributable

to the equity

holders of

the parent

 

 

Non

controlling

interests

 

 

Total

equity

 

As of January 1, 2022 (audited)

 

 

1,157

 

 

 

2,283

 

 

 

(200

)

 

 

1,738

 

 

 

4,539

 

 

 

9,517

 

 

 

64

 

 

 

9,581

 

Net profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,945

 

 

 

1,945

 

 

 

1

 

 

 

1,946

 

Other comprehensive loss, net of tax

 

 

 

 

 

 

 

 

 

 

 

(183

)

 

 

 

 

 

(183

)

 

 

 

 

 

(183

)

Total comprehensive income

 

 

 

 

 

 

 

 

 

 

 

(183

)

 

 

1,945

 

 

 

1,762

 

 

 

1

 

 

 

1,763

 

Transfer of cash flow hedge reserve to inventories

 

 

 

 

 

 

 

 

 

 

 

7

 

 

 

 

 

 

7

 

 

 

 

 

 

7

 

Repurchase of common stock

 

 

 

 

 

 

 

 

(173

)

 

 

 

 

 

 

 

 

(173

)

 

 

 

 

 

(173

)

Employee share award scheme, net of tax

 

 

 

 

 

 

 

 

224

 

 

 

96

 

 

 

(224

)

 

 

96

 

 

 

 

 

 

96

 

Dividends

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(217

)

 

 

(217

)

 

 

 

 

 

(217

)

As of July 2, 2022 (unaudited)

 

 

1,157

 

 

 

2,283

 

 

 

(149

)

 

 

1,658

 

 

 

6,043

 

 

 

10,992

 

 

 

65

 

 

 

11,057

 

 

The accompanying notes are an integral part of these interim consolidated financial statements

 

 

STMicroelectronics Semi Annual Report 2022  

Semi Annual Financial Statements      21

 

 


 

For the six-month period ended July 3, 2021

 

In millions of USD

 

Ordinary

shares

 

 

Capital

surplus

 

 

Treasury

shares

 

 

Other

reserves

 

 

Retained

earnings

 

 

Equity

attributable

to the equity

holders of

the parent

 

 

Non

controlling

interests

 

 

Total

equity

 

As of January 1, 2021 (audited)

 

 

1,157

 

 

 

2,272

 

 

 

(93

)

 

 

1,723

 

 

 

3,191

 

 

 

8,250

 

 

 

58

 

 

 

8,308

 

Net profit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

771

 

 

 

771

 

 

 

3

 

 

 

774

 

Other comprehensive income, net of tax

 

 

 

 

 

 

 

 

 

 

 

(95

)

 

 

 

 

 

(95

)

 

 

 

 

 

(95

)

Total comprehensive income

 

 

 

 

 

 

 

 

 

 

 

(95

)

 

 

771

 

 

 

676

 

 

 

3

 

 

 

679

 

Transfer of cash flow hedge reserve to inventories

 

 

 

 

 

 

 

 

 

 

 

(2

)

 

 

 

 

 

(2

)

 

 

 

 

 

(2

)

Repurchase of common stock

 

 

 

 

 

 

 

 

(313

)

 

 

 

 

 

 

 

 

(313

)

 

 

 

 

 

(313

)

Employee share award scheme, net of tax

 

 

 

 

 

 

 

 

106

 

 

 

103

 

 

 

(106

)