Onsemi: achieved record annual and quarterly revenue, gross margin, profit and cash flow

PHOENIXonsemi (the “Company”) (Nasdaq: ON) today announced its fourth quarter and fiscal 2021 results with the following highlights:

Record annual turnover of $6.74 billion representing 28.3% year-over-year growth

Record quarterly revenue of $1,846.1 millionand record GAAP and non-GAAP gross margins of 45.1% and 45.2%, respectively

Record quarterly GAAP and non-GAAP operating margins of 26.0% and 28.6%, respectively

Fourth quarter GAAP and non-GAAP diluted earnings per share of $0.96 and $1.09respectively 2021 free cash flow increased 167% year over year, with a fourth quarter at $457.0 million or 25% of turnover

“Our disciplined execution of transformation initiatives in 2021 resulted in record financial performance and the achievement of our financial targets ahead of schedule. 2021 revenue increased 28.3%. operating and free cash flow grew 6x faster than revenue as we focus our portfolio on the secular megatrends of electric vehicles, ADAS, alternative energy and industrial automation. continue to grow our gross margins as we shift our mix to these strategic, high-value markets while developing new products, streamlining our manufacturing footprint and improving our overall cost structure.The outlook for our business remains strong, as evidenced by over 60% year-over-year growth in our design funnel, driven by our power supply portfolio. highly differentiated intelligent on and sensing,” said Hassane El KhouryPresident and CEO of Onsemi.

Selected financial results for the quarter are presented below with comparable periods:

See more results on:

https://www.onsemi.com/company/news-media/press-announcements/en/onsemi-reports-fourth-quarter-and-2021-financial-results

Convertible notes, non-cash interest expense is calculated in accordance with FASB Accounting Standards Codification Topic 470: Debt.

The number of Diluted Shares outstanding may vary due to, among other things, the vesting of restricted stock units, additional dilutive shares from the Company’s convertible senior subordinated notes, and the redemption or issuance of shares or convertible bonds or the sale of treasury shares. With the adoption of the new accounting standard, GAAP Diluted Shares Outstanding assumes settlement of principal and excess over par in common shares of the Company for the 1.625% Notes and only the excess over the nominal value in ordinary shares of the Company for the Securities at 0%, according to the terms of these securities. Diluted non-GAAP shares outstanding include shares not hedged by the Company issued concurrently with these notes. In periods when the average quarterly share price exceeds $30.70 for the 1.625% Notes and $74.34 for 0% notes, the dilutive impact of warrants issued concurrently with these notes is included in diluted GAAP and non-GAAP shares outstanding. Calculations are based on the Company’s share price at December 31, 2021.

** Special items may include: amortization of acquisition-related intangible assets; the expensing of increases in the fair market value of inventories measured; purchased in-process research and development costs; restructuring, asset write-downs and other, net; goodwill impairment charges; gains and losses on prepayment of debt; non-cash interest expense; actuarial (gains) losses on pension plans and other retirement benefits; and some other special items as required. These special items are beyond our control and could change significantly from period to period. Accordingly, we are unable to reasonably estimate and separately present the individual impact or likely significance of these special items, nor are we able to provide a reconciliation of the non-GAAP measures. . The reconciliation that is not available would include a future-looking income statement, balance sheet and cash flow statement in accordance with GAAP. For this reason, we use a projected range of the aggregate amount of special items to calculate our outlook for projected non-GAAP operating expenses.

*** We believe these non-GAAP measures provide important supplemental information to investors. We use these measures, along with the GAAP measures, for internal management purposes and as a way to assess period-to-period comparisons. However, we do not, and you should not, rely solely on non-GAAP financial measures as measures of our performance. We believe that non-GAAP financial measures reflect an additional way of viewing those aspects of our business which, when taken together with the results in accordance with GAAP and the reconciliations to the corresponding GAAP financial measures that we also provide in our releases, provide a more comprehensive understanding of the factors and trends affecting our business. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with the non-GAAP financial measures of other companies, even if they have similar names.

TELECONFERENCE

onsemi will host a conference call for the financial community at 9 a.m. Eastern Time (EST) on February 7, 2022 to discuss this announcement and onsemi’s fourth quarter 2021 and fiscal 2021 results. The Company will also provide a real-time audio webcast of the conference call on the Investor Relations page of its website at http://www.onsemi.com. The replay of the webcast will be available on this site approximately one hour after the live broadcast and will continue to be available for approximately 30 days after the conference call. Investors and interested parties may also access the conference call by telephone by dialing (888) 414-4458 (we/Canada) or (646) 960-0166 (International). To join this conference call, you will need to provide the conference ID number, which is 8631312.

This document includes “forward-looking statements”, as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included or incorporated herein may be deemed to be forward-looking statements, in particular statements about onsemi’s future financial performance, including financial guidance for the year ending December 31, 2021. Forward-looking statements are often characterized by the use of words such as “believes”, “estimates”, “expects”, “plans”, “may”, “will”, “intends”, ” plans” or “anticipates” or through discussions of strategy, plans or intentions. All forward-looking statements contained herein are made based on our current expectations, forecasts, estimates and assumptions and involve risks, uncertainties and other factors that could cause actual results or events to differ materially from those expressed. in forward-looking statements. Certain factors that could affect our results or future events are described in Part I, Item 1A “Risk Factors” of the 2020 Annual Report on Form 10-K filed with the Security and Exchange Commission (‘SECOND‘) to February 16, 2021 (the ‘2020 Form 10-K’) and occasionally in our other SECOND reports. Readers are cautioned not to place undue reliance on forward-looking statements. We assume no obligation to update this information, except as required by law. You should carefully consider the trends, risks and uncertainties described in this document, our 2020 Form 10-K and subsequent reports filed or furnished to the SECOND before making any investment decision with respect to our securities. If any of these trends, risks or uncertainties materialize or persist, our business, financial condition or results of operations could be materially adversely affected, the prices of our securities could decline and you could lose all or part of your investment. . All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.

About Onsemi

onsemi (Nasdaq: ON) is driving disruptive innovation to help build a better tomorrow. With a focus on automotive and industrial end markets, the company is accelerating the evolution of megatrends such as vehicle electrification and safety, sustainable energy networks, industrial automation and 5G infrastructure and cloud. With a highly differentiated and innovative product portfolio, onsemi creates smart power and sensing technologies that solve the world’s most complex challenges and pave the way to creating a safer, cleaner and smarter world.

onsemi and the onsemi logo are registered trademarks of Semiconductor Component Industries, LLC. All other brand and product names appearing in this document are registered trademarks or trademarks of their respective holders. Although the Company refers to its website in this press release, information about the website should not be incorporated herein.