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    Janardan Menon • Jefferies

    Janardan Menon's questions to STMicroelectronics NV (STM) leadership

    Janardan Menon's questions to STMicroelectronics NV (STM) leadership • Q2 2025

    Question

    Janardan Menon from Jefferies asked for a breakdown of the one-off effects in the Q3 gross margin guidance and inquired about the expected trajectory for gross margins and revenue into Q4 and beyond.

    Answer

    President & CFO Lorenzo Grandi detailed that the Q3 gross margin is negatively impacted by 140 basis points from currency effects and the manufacturing reshaping program, with stable pricing. He anticipates a 'nice improvement' in Q4 gross margin from lower unused capacity charges and better manufacturing efficiency. President & CEO Jean-Marc Chery confirmed that STMicroelectronics expects sequential revenue growth in Q4.

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    Janardan Menon's questions to STMicroelectronics NV (STM) leadership • Q2 2025

    Question

    Janardan Menon from Jefferies asked for a breakdown of the one-off effects in the Q3 gross margin guidance and inquired about the expected evolution of gross margin and revenue into Q4.

    Answer

    President & CFO Lorenzo Grandi detailed that Q3 gross margin is negatively impacted by 140 basis points from currency effects and restructuring costs, offset by lower unused capacity charges. He stated pricing is stable and expects a "nice improvement" in Q4 gross margin from better efficiency and lower charges. President & CEO Jean-Marc Chery confirmed that STMicroelectronics expects sequential revenue growth in Q4.

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    Janardan Menon's questions to STMicroelectronics NV (STM) leadership • Q1 2025

    Question

    Janardan Menon questioned why STMicroelectronics' commentary on the industrial market seemed less bullish than that of Texas Instruments, and asked if the H2 gross margin improvement could be muted by a product mix shift towards lower-margin Personal Electronics.

    Answer

    CEO Jean-Marc Chery stated that while Q1 was the bottom for the industrial segment, the recovery pace is slower than anticipated, particularly in Europe and the Americas. CFO Lorenzo Grandi explained that despite the H2 ramp in Personal Electronics, gross margin is expected to improve from the H1 bottom, supported by better factory utilization and a concurrent recovery in the highly accretive industrial market.

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    Janardan Menon's questions to STMicroelectronics NV (STM) leadership • Q4 2024

    Question

    Janardan Menon sought clarity on the potential gross margin progression through 2025, considering underutilization charges and other factors. He also asked about the quarterly impact of capacity reservation fees and price erosion, and requested an update on currency sensitivity.

    Answer

    Lorenzo Grandi, President and CFO, indicated that Q1 gross margin will likely be the bottom for the year. He outlined headwinds like declining capacity reservation fees and mid-single-digit price erosion, and tailwinds from lower energy costs and a stronger USD. He noted that Q1 pricing is heavily impacted by automotive contract renegotiations, an effect that is not repeatable in subsequent quarters.

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    Janardan Menon's questions to Infineon Technologies AG (IFNNY) leadership

    Janardan Menon's questions to Infineon Technologies AG (IFNNY) leadership • Q2 2025

    Question

    Janardan Menon asked about the expected Q4 divisional performance based on the current order book and how Infineon plans to address long-term pricing pressure in its industrial power business.

    Answer

    CFO Sven Schneider stated that under normal conditions, Automotive (ATV) and Power & Sensor Systems (PSS) would show the strongest Q4 growth momentum. CEO Jochen Hanebeck addressed pricing pressure by highlighting Infineon's strategy to focus on high-reliability modules and advanced technology where it can differentiate, such as in energy storage and transmission. He noted that while standard components face pressure, Infineon's automotive revenue in China grew double-digits year-over-year, proving its strength in high-value segments.

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    Janardan Menon's questions to Infineon Technologies AG (IFNNY) leadership • Q2 2025

    Question

    Janardan Menon asked about the expected performance of different business divisions in Q4 assuming no tariff impact, and the long-term strategy to mitigate pricing pressure in the GIP segment.

    Answer

    CFO Sven Schneider stated that in a normal, unaffected Q4, Automotive (ATV) and Power & Sensor Systems (PSS) would show the strongest momentum. CEO Jochen Hanebeck addressed pricing pressure by highlighting Infineon's differentiation in high-reliability modules and its technology lead in SiC and silicon MOSFETs, noting that while standard components face pressure, high-performance applications offer a right to play. He also pointed out that Infineon's automotive revenue in China grew double-digits year-over-year.

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    Janardan Menon's questions to Telefonaktiebolaget LM Ericsson (ERIC) leadership

    Janardan Menon's questions to Telefonaktiebolaget LM Ericsson (ERIC) leadership • Q2 2024

    Question

    Janardan Menon of Jefferies asked for the specific drivers behind the strong Q3 Networks gross margin guidance, given the headwind from non-recurring IPR. He also inquired if Germany's move to exclude Chinese vendors signals a better competitive environment in Europe.

    Answer

    CFO Lars Sandstrom identified the key drivers as ongoing cost-out activities and a more favorable geographical mix with higher U.S. sales, which together are expected to offset the absence of the Q2 IPR benefit. On the European environment, CEO Börje Ekholm commented that it is still too early to determine the market impact of the recent German legislation.

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