STMicroelectronics

Q4 & FY 2021 Financial Results

January 27, 2022

 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 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, 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;
• 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 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.

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, 2020, as filed with the SEC on
February 24, 2021. 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 release as anticipated, 2
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.
 Highlights
• As we announced on January 7, 2022, net revenues and gross margin came in better than expected, primarily due to better than
anticipated operations in an ongoing dynamic market.
Q4 • Net revenues of $3.56B were up 9.9% Y/Y and 11.2% Q/Q, coming in 140 bps above the high-end of our business outlook.
2021
• Gross margin was 45.2%, 20 bps above the high-end of our guidance.
• Operating margin was 24.9% and our net income was $750M.

• Net revenues increased 24.9% Y/Y to $12.76B, reflecting a strong performance across all the end markets we address and our engaged
customer programs throughout the year.
FY • All three product groups achieved double-digit growth in FY21.
2021
• Operating margin increased to 19.0% from 12.9% in FY20 and net income at $2.0B was up 80.8%.
• Free cash flow was $1.12B, and CAPEX was $1.83B. Our net financial position was $977M, compared to $1.1B at year-end 2020.

Q1 • Outlook at mid-point is for net revenues of $3.50B, representing an increase of 16.1% Y/Y.
2022 • Gross margin expected to be about 45.0% at the mid-point.

• For FY22, we plan to invest about $3.4B to $3.6B in CAPEX to further increase our production capacity and to support our strategic
FY initiatives. This includes the first industrialization line of our new 300mm wafer fab in Agrate, Italy.
2022 • Based on our strong customer demand and increased capacity, we will drive the Company based on a plan for FY22 revenues in the range
of $14.8B to $15.3B.

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 FY 2021 Market dynamics
Communications equipment,
Automotive Industrial Personal electronics
computers & peripherals

4
 Q4 2021 Financial highlights
Revenues = $3.56B Operating Margin = 24.9%
4.0 25%

3.5
+9.9%
20%
Y/Y
3.0
15%
2.5

2.0 10%
Q420 Q321 Q421 Q420 Q321 Q421

Gross Margin = 45.2% Net Income = $750M

800
46%
700
42% 600

500
38%
400

34% 300
Q420 Q321 Q421 Q420 Q321 Q421 5
 FY 2021 Financial highlights
Revenues = $12.76B Operating Margin = 19.0%
14.0 20%

12.0 +24.9% 15%

Y/Y
10.0 10%

8.0 5%

6.0 0%
FY20 FY21 FY20 FY21

Gross Margin = 41.7% Net Income = $2.0B

2.0
42%

40% 1.5

38%
1.0
36%

34% 0.5
FY20 FY21 FY20 FY21 6
 FY 2021 Revenues
% by product group % by shipment location % by region of origin
Americas
Americas Asia
12% Pacific
Others
41% 34%
Microcontrollers & 0.2% EMEA 20%
Automotive &
Digital ICs Group 68%
Discrete Group
(MDG) 25%
(ADG) Asia
Pacific
30% 34% EMEA

% by customer type

36%

Distribution 34% 45% Top 10 OEMs

Analog, MEMS &

Sensors Group 21%
(AMS) 7
Other OEMs
 Revenues
Q421 Revenues = $3.56B FY21 Revenues = $12.76B
4.0 14.0

12.0
3.0
10.0
2.0
8.0

1.0 6.0
Q420 Q121 Q221 Q321 Q421 FY20 FY21

Q421 revenues up 9.9% Y/Y FY21 revenues up 24.9% Y/Y

• The Company recorded higher net sales in all product groups except • The Y/Y growth reflects a strong performance across all the end
the imaging sub-group, as expected; markets we address and our engaged customer programs throughout
the year;
• Revenues to OEMs were substantially unchanged in total while
Distribution increased 38.7%. • Total sales to OEMs and Distribution returned to a more balanced
split in 2021:
Q421 revenues up 11.2% Q/Q
• 66% OEM
• 140 bps above the high-end of the Company’s guidance;
• 34% Distribution.
• ADG and MDG reported increases in net revenues, with AMS
essentially flat.

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 Gross margin
Q421 Gross Margin = 45.2% FY21 Gross Margin = 41.7%
46% 46%

44% 44%

42% 42%

40% 40%

38% 38%

36% 36%

34% 34%
Q420 Q121 Q221 Q321 Q421 FY20 FY21

Q421 Gross Margin FY21 Gross Margin

• Up 640 bps Y/Y principally driven by favorable pricing, improved • Up 460 bps Y/Y mainly due to manufacturing, improved product
product mix and manufacturing efficiencies; mix and better price environment.
• Up 360 bps Q/Q mainly due to better price environment,
improved product mix and, to a lesser extent, manufacturing;
• 20 bps above the high-end of the Company’s guidance.

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 Net operating expenses*
FY21 Quarterly Net Operating Expenses Average = $726M
900 35% 35%
3.3
750
30% 30%
600 2.4
450 25% 25%
300 1.5
20% 20%
150
15% 0.6 15%
0
-150 10% -0.3 10%
Q420** Q121 Q221 Q321 Q421 FY20** FY21
SG&A R&D OIE, net Net OPEX % SG&A R&D OIE, net Net OPEX %

Q421 Net Operating Expenses at $720M FY21 Net Operating Expenses at $2.91B
• 20.2% of revenues. • 22.8% of revenues.
Combined SG&A and R&D at $752M
• 21.1% of revenues.

* Net Operating Expenses: R&D + SG&A + Other Expenses (- Other Income) 10

** Includes non-recurrent favorable impact mainly associated with the Important Projects of Common European Interest (IPCEI) R&D grants catch-up
 Q4 2021 Product group results
Automotive & Discrete Analog, MEMS & Sensors Microcontrollers & Digital ICs
(ADG) (AMS) (MDG)

Revenues = $1,226M Revenues = $1,260M Revenues = $1,062M

Operating Margin = 17.6% Operating Margin = 26.6% Operating Margin = 29.9%

1,500 30% 1,500 30% 1,500 30%

1,250 1,250 1,250

1,000 20% 1,000 20% 1,000 20%
750 750 750
500 10% 500 10% 500 10%
250 250 250
0 0% 0 0% 0 0%
Q420 Q121 Q221 Q321 Q421 Q420 Q121 Q221 Q321 Q421 Q420 Q121 Q221 Q321 Q421
Revenue (US$M) Operating Margin (%) Revenue (US$M) Operating Margin (%) Revenue (US$M) Operating Margin (%)

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 FY 2021 Product group results
Automotive & Discrete Analog, MEMS & Sensors Microcontrollers & Digital ICs
(ADG) (AMS) (MDG)

Revenues = $4.35B Revenues = $4.62B Revenues = $3.77B

Operating Margin = 11.8% Operating Margin = 21.9% Operating Margin = 24.3%

5.0 25% 5.0 25% 5.0 25%

4.0 20% 4.0 20% 4.0 20%

3.0 15% 3.0 15% 3.0 15%

2.0 10% 2.0 10% 2.0 10%

1.0 5% 1.0 5% 1.0 5%

0.0 0% 0.0 0% 0.0 0%

FY20 FY21 FY20 FY21 FY20 FY21
Revenue (US$B) Operating Margin (%) Revenue (US$B) Operating Margin (%) Revenue (US$B) Operating Margin (%)

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 FY 2021 Financial flexibility
Net Cash From Operating
Capex = $1.83B Free Cash Flow* = $1.12B
Activities = $3.06B
3.2 2.0 Capex / sales (%) 18% 1.2

2.4 16%
1.5
0.8
14%
1.6 1.0 5-year
average 12% 0.4
0.8 0.5
10%

0.0 0.0
0.0 8%
FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21
FY17 FY18 FY19 FY20 FY21

Cash dividends paid to shareholders totaled $205M in FY21.

In FY21 we repurchased shares totaling $485M under our prior and new share repurchase programs.

*Non-U.S. GAAP measure. See Appendix for additional information explaining why the Company believes these measures are important. 13
 Solid capital structure

$3.72B
$3.46B $3.52B

$2.66B
ST is in a solid position from a capital, liquidity
$2.62B $2.54B
and balance sheet perspective

$1099M $977M
$798M Moody’s upgraded the credit rating to Baa2 and
S&P improved business risk profile to satisfactory.
As a result, ST is now well within investment grade
Q420 Q321 Q421 with a Stable Outlook from Moody’s, S&P and Fitch
Liquidity Debt Net Financial Position*

*Non-U.S. GAAP measure. See Appendix for additional information explaining why the Company believes these measures are important. 14
 Q1 2022 Outlook

Net Revenues

Q122 outlook, at the mid-point, is for net revenues of $3.50B, growing 16.1% Y/Y and decreasing 1.6% Q/Q.

Gross Margin
Gross margin is expected to be about 45.0%, plus or minus 200 bps, representing a Y/Y increase of 600 bps
and a Q/Q decrease of 20 bps.

This outlook is based on an assumed effective currency exchange rate of approximately $1.15 = €1.00 for the 2022 first quarter
and includes the impact of existing hedging contracts.
The first quarter will close on April 2, 2022.

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 FY 2022
We will accelerate the execution of our strategy and value proposition:

A STRATEGY which stems from three long-term enablers:

• Smart mobility
• Power & energy management
• IoT & 5G

A VALUE PROPOSITION based on:

• sustainable and profitable growth
• providing differentiating enablers to customers, with an independent, reliable and secure supply chain
• committing to sustainability for the benefit of all our stakeholders

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 FY 2022 Capital investment
$3.4B - $3.6B CAPEX to further increase our production capacity and support our strategic initiatives

Maintenance, efficiency Our CAPEX plans include:

improvement and • ~ $2.1B for capacity additions and mix change in
Capacity addition, carbon neutrality
mix change, our manufacturing footprint, in particular for our wafer
program
assembly & fabs (digital 300mm in Crolles, analog 200mm in
testing Singapore, SiC 150mm in Catania and Singapore), as
well as assembly and test operations.
• ~ $900M for strategic investments: including the first
industrialization line of our new 300mm wafer fab in
Agrate, and GaN technology and SiC raw material
Strategic initiatives.
initiatives
• The remaining part covers the overall maintenance
and efficiency improvements of our manufacturing
operations and infrastructure, as well as our Carbon
Neutrality execution program. 17
 Our commitment to be Carbon neutral by 2027

Milestones
• Carbon neutral by 2027
• Compliance with the 1.5°C scenario
by 2025 – recognized by SBTi
• Sourcing 100% renewable energy by 2027

• Collaborative programs and partnerships for carbon

neutrality throughout our ecosystems

•In 2021, we improved our total Greenhouse gas emissions efficiency (-27% versus 2020)
and our use of renewable energy reached about 51%.

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 FY 2022 Plan

Based on the strong customer demand and our planned investments to increase capacity,

we will drive the Company based on a 2022 revenue plan of $14.8B to $15.3B,

representing revenue growth of about 16% to 20%.

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 Takeaways
FY 2021 FY 2022

We continue to work on making ST stronger.

ST delivered strong revenue growth and increased
We are convinced that we have the right strategy and
profitability. We worked alongside our customers,
resources in place:
continuing to adapt our supply chain to support their
• our balanced end-market focus and position;
strong demand.
• our solid product/IP technology portfolio;
• our Integrated Device Manufacturer model;
• our transformation programs;
• and our focus on high-growth applications that
continue to accelerate their strong, positive
dynamics.

We are investing significantly to support this

acceleration in order to capture new opportunities,
working alongside our customers, and to prepare our
growth for the years to come.
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 Capital Markets Day 2022

SAVE THE DATE

We will be hosting our Capital Markets Day on May 12th in Paris.
We hope to be able to have an in-person event and will also webcast live.

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Appendix
 Historical financial performance 23

In US$M, except EPS Q120 Q220 Q320 Q420 FY20 Q121 Q221 Q321 Q421 FY21

Net Revenues 2,231 2,087 2,666 3,235 10,219 3,016 2,992 3,197 3,556 12,761

Gross Margin 37.9% 35.0% 36.0% 38.8% 37.1% 39.0% 40.5% 41.6% 45.2% 41.7%

Operating Income 231 106 329 657 1,323 440 489 605 885 2,419
Operating Margin 10.4% 5.1% 12.3% 20.3% 12.9% 14.6% 16.3% 18.9% 24.9% 19.0%

Net Income – Reported 192 90 242 582 1,106 364 412 474 750 2,000

EPS Diluted ($/share) 0.21 0.10 0.26 0.63 1.20 0.39 0.44 0.51 0.82 2.16

Free Cash Flow* 113 28 (25) 512 627 261 125 420 314 1,120
Net Financial Position* 668 570 662 1,099 1,099 1,185 1,081 798 977 977

Effective Exchange Rate €/$ 1.11 1.10 1.13 1.16 1.13 1.19 1.19 1.19 1.17 1.18

*Non-U.S. GAAP measure. See Appendix for additional information explaining why the Company believes these measures are important. 23
 Appendix
• 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, marketable securities, restricted cash and short-term deposits, and our total financial debt includes short-term debt and
long-term debt, as reported in our Consolidated Balance Sheets. We believe our Net Financial Position 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, short-term deposits and marketable 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.
• Free cash flow (non-U.S. GAAP measure): is defined as (i) net cash from operating activities plus (ii) net cash used in investing activities, excluding
payment for purchases of (and proceeds from matured) marketable securities and net investment in short-term deposits, which are considered as temporary
financial investments. The result of this definition is ultimately net cash from operating activities plus payment for purchase (and proceeds from sale) of
tangible, intangible and financial assets and cash paid for business acquisitions. We believe 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 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 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 short-term deposits, the net cash from (used in) financing activities and the effect of changes in exchange rates. Our definition of Free Cash Flow may differ
from definitions used by other companies.
• Net revenues of Others: includes revenues from sales assembly services and other revenues. Operating income (loss) of Others includes items such as
unused capacity charges, including reduced manufacturing activity due to COVID-19, impairment, restructuring charges and other related closure costs,
management reorganization costs, phase out and start-up costs of certain manufacturing facilities, and other unallocated 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 product groups, as well as operating earnings of other products. Others includes:

(US$M) Q120 Q220 Q320 Q420 FY20 Q121 Q221 Q321 Q421 FY21

Unused Capacity Charges 34 64 38 17 153 2 - 14 - 16

Impairment & Restructuring Charges 5 4 2 (1) 11 - (2) 1 4 2

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