Sustainable Financial Performance

Sustainable Financial Performance

Capital Markets Day 2020

Sustainable Financial Performance

Innovation & Profits

Our Ambition

Sustain profitable growth, with clear and focused leadership objectives in the four end markets we address.

2025 GOAL


of revenues generated by new product lines


In 2020, ST showed its resilience during the first half of an unprecedented year, while in the second half we demonstrated our ability to cope with a strong and sudden upswing in demand. Our business continuity plans enabled us to support our customers and continue to execute our R&D programs, while maintaining the most stringent health and safety measures. We achieved this by working alongside our customers and partners throughout the year.


US$10.2 billion

During 2020, we returned to solid revenue growth, outperforming the markets we serve. Our net revenues increased by 6.9% to US$10.2 billion, better than our initial expectations. Sales to OEMs represented 73% of total 2020 revenues, while distribution represented 27%. For the full year 2020, we maintained our profitability with an operating margin of 12.9% and net income of US$1.1 billion, translating into diluted earnings per share of US$1.20. We also strengthened our net financial position to US$1.1 billion, with strong growth in operating and free cash flow. Cash dividends paid to stockholders totaled US$168 million. As part of our existing share buyback program, we repurchased shares totaling US$125 million during the year.

In US$m



Net Revenues



Gross Margin



Operating Income



Net Income



Free Cash Flow



Net Financial Position



Net revenues by region of origin

Net revenues by region of origin, Americas, Asia-Pacific, Emea (graphic)

Product revenues

After a decrease in demand in the first half of 2020, from the third quarter onwards we saw a much faster and stronger than expected resurgence in demand, which further accelerated in the fourth quarter.

This was driven by car production volumes, inventory replenishment across the automotive supply chain and, more broadly, an increasing need for semiconductors related to electrification and digitalization.

In terms of revenues by product group, two groups grew year over year, while one declined.

Faster and stronger

than expected rebound

Analog, MEMS and Sensors Group (AMS) revenues increased 18%, mainly driven by imaging and analog products for personal electronics.

Microcontrollers and Digital IC Group (MDG) revenues increased 14.9%, driven by strong growth in microcontrollers from both OEMs and distribution. This was partially offset by a strong decline in RF Communications products in the fourth quarter.

Automotive and Discrete Group (ADG) revenues decreased 8.9%. Revenues from our Automotive Product sub-group decreased, mainly due to a decline in legacy automotive, partially offset by growth in advanced driver-assistance systems (ADAS) products. Revenues for the Power Discrete sub-group saw a smaller reduction, with soft market conditions for industrial in Europe and the Americas partially offset by growth in car electrification. I 103-2 I 103-3 I

Lorenzo Grandi, President, Finance, Infrastructure and Services, and Chief Financial Officer (portrait)
Lorenzo Grandi

President, Finance, Infrastructure and Services, and Chief Financial Officer

In 2020, amid the COVID-19 pandemic and global trade tensions, ST’s transformation to support growth and demonstrate resilience was evident. Our net revenues grew 6.9% year over year driven by the breadth of our product portfolio, the diversity of the markets we address and the wide, and in many cases, intimate relationships with our customers that supported us in a challenging environment. ST has a bright future. We see significant opportunities to grow our revenues, improve our profitability and make ST financially stronger and even more resilient.”

Looking forward

We plan to invest between US$1.8 billion and US$2 billion in 2021, to meet strong market demand and advance our strategic initiatives.


in strategic initiatives

This includes investments in expanding the capacity of our existing 300mm fab at Crolles (France), developing the product mix for our most advanced 200mm fabs, and the substantial expansion of our Silicon Carbide capacity.

It also includes around US$400 million of investment in strategic initiatives, including:

  • continued investment in our new Agrate 300mm fab (Italy)
  • R&D for Gallium Nitride power technologies
  • fabrication of Silicon Carbide substrates

Extra-financial reporting

Each year, socially responsible investment rating agencies, analysts and investors evaluate our corporate behavior and performance based on a wide range of environmental, social and governance (ESG) topics.

In 2020, we maintained a strong presence in the major sustainability indices, including Dow Jones Sustainability Index World, FTSE4Good, Ethibel, EuroNext VIGEO Europe 120, Eurozone 120 and Benelux 120.

Logos of rating agencies (graphic)

We were also included in the Bloomberg Gender Equality Index for the third consecutive year and in the CDP A list for climate change for the first time (see Focus).

CDP A LIST 2020 (logo)


ST recognized as a leader in managing climate change

Transparently disclosing our environmental data to all stakeholders is an essential part of our commitment to addressing climate-related issues.

Often referred to as the gold standard of environmental reporting, CDP is a not-for-profit organization that runs a global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts.

We have been participating in the CDP’s annual climate change questionnaire since 2006 and use it as an opportunity to identify emerging environmental risks and opportunities for action to ensure we stay on track.

In 2020, ST was one of the 277 companies out of more than 5,000 that was included in the CDP A list for climate change. This recognizes our commitment and actions to tackle climate change issues. We are leading on corporate environmental ambitions to cut greenhouse gas emissions and to manage climate change within our own operations and our extended supply chain.

Our sustainability performance was recognized by the Wall Street Journal that ranked ST 71st among 5,500 publicly traded companies around the world.

In July, ST was awarded Prime status by the Institutional Shareholder Services (ISS), and ranked in the top 10% of semiconductor companies. We received the highest rating of the semiconductor industry for both environmental and social topics.

These achievements acknowledge our longstanding commitment to conducting our business responsibly and recognize our performance in many areas, ranging from business ethics, innovation, and quality, to environment and labor practices. Participating in these evaluations provides an opportunity to assess our performance within a wider context, benchmark ourselves against our peers, measure our progress, and identify areas for further improvement.