Reflecting on GF IPO October 28, 2022 One year ago today, GF became a publicly traded company under the stock symbol “GFS.” This milestone in GF’s journey reflected our global team’s dedication, ingenuity and hard work. The GF team has built a company that has grown to become a vital player in the semiconductor industry. While we are proud of what we accomplished, we are just as proud of how we did it. Our commitment to enabling a better-connected world for our customers, partners, communities and each other is stronger than it’s ever been. GF is changing the industry that’s changing the world.
$30 Million in Federal Funding to Advance Innovation and Production of Next-Generation GaN Chips at GlobalFoundries Fab in Vermont October 17, 2022 A world leader in RF semiconductor manufacturing, GF’s Vermont Fab moves closer to large-scale production of next-generation gallium nitride chips ESSEX JUNCTION, Vt., October 17, 2022 — U.S. Senator Patrick Leahy and GlobalFoundries (Nasdaq: GFS) (GF), a global leader in feature-rich semiconductor manufacturing, today announced the award of $30 million in federal funding to advance the development and production of next-generation gallium nitride (GaN) on silicon semiconductors at GF’s facility in Essex Junction, Vermont. With their unique ability to handle significant heat and power levels, GaN semiconductors are positioned to enable game-changing performance and efficiency in applications including 5G and 6G smartphones, RF wireless infrastructure, electric vehicles, power grids, solar energy, and other technologies. The announcement was made at an event today at GF’s Fab attended by Sen. Leahy, GF President and CEO Dr. Thomas Caulfield, GF Vermont Fab Vice President and General Manager Ken McAvey, Greater Burlington Industrial Corporation President Frank Cioffi, GF Fab team members, and other guests. The $30 million federal funding, secured by Sen. Leahy as an appropriation in the Consolidated Appropriations Act for Fiscal Year 2022, will enable GF to purchase tools and extend development and implementation of 200mm GaN wafer manufacturing. The incorporation of scaled GaN manufacturing into the Fab’s capabilities furthers the facility’s longstanding global leadership in RF semiconductor technology, and positions GF for leadership in making chips for high-power applications including electric vehicles, industrial motors, and energy applications. “Senator Leahy’s leadership and dedication have been instrumental to the growth and success of semiconductor manufacturing in Vermont,” said Dr. Caulfield. “On behalf of the entire GF team, I thank Senator Leahy for his steadfast support of GF throughout his many years in office. As seen with today’s announcement, he has been a champion of putting this facility on the global forefront of semiconductor manufacturing. With this new federal funding, and the potential for further support in the 2023 federal budget, GF is well-positioned to become a global leader in GaN chip manufacturing—right here in Vermont.” “Chips used all around the world are made right here in Essex Junction by this dedicated workforce,” said Senator Leahy. “I am extremely proud of that, and it’s something all Vermonters and Americans can take pride in. This funding is an investment in U.S. leadership in improved technology for chips that connect everything around us and power our handheld devices—with GlobalFoundries and Vermonters leading the way.” This Other Transaction Agreement (OTA) was entered into by the Defense Microelectronics Activity via the Trusted Access Program Office (TAPO) of the U.S. Department of Defense. TAPO’s primary mission is to procure advanced semiconductors for the Departments most critical and sensitive weapons systems platforms. TAPO has been supporting dual use (both civilian and military applications) GaN on silicon development efforts since 2019 as GaN provides a stable semiconductor suitable in high power, high frequency devices the DoD needs to maintain technology advantage for the United States. This current development phase plans to leverage previous TAPO successes and continue maturing this dual use technology. “GlobalFoundries has been a critical partner to the Trusted Access Program Office, enabling semiconductor assurance (Trust) to advanced semiconductor technologies for the Department’s most advanced weapon systems platforms. This engagement is just one step the DoD is taking to ensure the U.S. has continued access to advanced microelectronics technologies such as gallium nitride,” said DMEA Director Dr. Nicholas Martin. This $30 million agreement is the latest federal investment to support GaN at GF’s Vermont Fab. In fiscal years 2020 and 2021, Sen. Leahy secured a total of $10 million for research and development related to advancing GaN technology at the facility, paving the way for this new award. GF’s facility in Essex Junction, Vermont, near Burlington, was among the first major semiconductor manufacturing sites in the United States. Today nearly 2,000 GF employees work at the site, with a manufacturing capacity of more than 600,000 wafers per year. Built on GF’s differentiated technologies, these GF-made chips are used in smartphones, automobiles, and communications infrastructure applications around the world. The Fab is a Trusted Foundry and manufactures secure chips in partnership with the U.S. Department of Defense, for use in some of the nation’s most sensitive aerospace and defense systems. About GF GlobalFoundries (GF) is one of the world’s leading semiconductor manufacturers. GF is redefining innovation and semiconductor manufacturing by developing and delivering feature-rich process technology solutions that provide leadership performance in pervasive high growth markets. GF offers a unique mix of design, development and fabrication services. With a talented and diverse workforce and an at-scale manufacturing footprint spanning the U.S., Europe and Asia, GF is a trusted technology source to its worldwide customers. For more information, visit www.gf.com. ©GlobalFoundries Inc. GF, GlobalFoundries, the GF logos and other GF marks are trademarks of GlobalFoundries Inc. or its subsidiaries. All other trademarks are the property of their respective owners. Forward-looking Information This news release may contain forward-looking statements, which involve risks and uncertainties. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. GF undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless require by law. Media Contacts: Michael Mullaney [email protected] Gina DeRossi [email protected]
GlobalFoundries Announces Conference Call to Review Third Quarter 2022 Financial Results October 3, 2022 MALTA, N.Y., October 3, 2022 – GlobalFoundries (NASDAQ: GFS) today announced that it will host a conference call on Tuesday, November 8, 2022 at 8:30 a.m. ET following the release of the company’s third quarter 2022 financial results. Conference Call and Webcast Information The company will host a conference call with the financial community on Tuesday, November 8, 2022 at 8:30 a.m. ET. Interested parties may join the scheduled conference call by registering here. The company’s financial results and a webcast of the conference call will be available on GF’s Investor Relations website at https://investors.gf.com. About GlobalFoundries GlobalFoundries Inc. (GF) is one of the world’s leading semiconductor manufacturers. GF is redefining innovation and semiconductor manufacturing by developing and delivering feature-rich process technology solutions that provide leadership performance in pervasive high growth markets. GF offers a unique mix of design, development and fabrication services. With a talented and diverse workforce and an at-scale manufacturing footprint spanning the U.S., Europe and Asia, GF is a trusted technology source to its worldwide customers. For more information, visit www.gf.com. For further information, please contact: [email protected]
GlobalFoundries Joins the PHLX Semiconductor Sector Index (SOX) September 19, 2022 MALTA, N.Y., September 19, 2022 – GlobalFoundries (GF) (Nasdaq: GFS), a global leader in feature-rich semiconductor manufacturing, today announced that the company has been added to the PHLX Semiconductor Sector IndexSM (SOXSM), effective Monday, September 19, 2022. “We are proud to take our place on the Semiconductor Sector Index amongst other leading semiconductor companies,” said David Reeder, CFO of GF. “Since our successful public listing on Nasdaq in October 2021, our growth strategy continues to drive a clear demand for, and confidence in, our differentiated solutions and company.” The PHLX Semiconductor Sector IndexSM (SOXSM) is a modified market capitalization-weighted index composed of the 30 largest eligible semiconductor companies listed in the U.S., ranked by market capitalization. For a complete listing of companies view the PHLX Semiconductor Sector Index. About GF GlobalFoundries, Inc. (GF) is one of the world’s leading semiconductor manufacturers. GF is redefining innovation and semiconductor manufacturing by developing and delivering feature-rich process technology solutions that provide leadership performance in pervasive high growth markets. GF offers a unique mix of design, development and fabrication services. With a talented and diverse workforce and an at-scale manufacturing footprint spanning the U.S., Europe and Asia, GF is a trusted technology source to its worldwide customers. For more information, visit www.gf.com. Forward-looking Information This news release may contain forward-looking statements, which involve risks and uncertainties. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. GF undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless require by law. Investor Contact: [email protected] Media Contact: Erica McGill[email protected]
First European Network Meeting of Female GlobalFoundries Employees August 31, 2022 GF conference highlights the important role of women in the technology industry DRESDEN, Germany, August 31, 2022 – 170 participants from GF’s European sites in Germany, Bulgaria, Switzerland and the United Kingdom attended the first European conference of the GF women’s network GlobalWomen today under the motto “Come together, grow together.” The focus of the one-day event was on the exchange of experiences of the female experts from various corporate divisions on career development, challenges in an environment that is still predominantly male, and the corporate strategy for increasing the proportion of women at all hierarchical levels. Petra Köpping, Saxon State Minister for Social Affairs and Social Cohesion, emphasized the leading role of GF in the advancement of women as well as the importance of the women’s network in her welcoming address: “Have the courage to take on responsibility – it’s worth it. Women can thus contribute their view of companies, society and politics and thus help shape them.” Dr. Thomas Caulfield, GlobalFoundries CEO, echoed this thought in his address: “We are a diverse semiconductor manufacturer in every way and what drives our success is our people. Our global team brings new ideas, different perspectives, collaboration, and challenges the status quo to propel our path forward. A culture of integrating our strengths and engaging all our talent strengthens GF and GlobalWomen play a significant role in this.” The conference program included keynote speeches and panel discussions on networking, career development, mentoring, and the work-life balance. The agenda was rounded off by group discussions (breakout sessions) on the aforementioned topics. High-profile external speakers included Tijen Onaran, founder of Global Digital Women GmbH, Heike Wilson, CEO of Dualis, Romina Stawowy, social entrepreneur and publisher of femMIT magazine, and Starla Sireno, Executive Coach. The corporate leadership team also featured prominent members: CEO Dr. Thomas Caulfield was joined by Laurie Kelly, Chief Communications Officer, Gregg Bartlett, Chief Technology Officer, Ruth Hernandez, Vice President Sales, Deb Leach, Vice President Technology Operations, and Dr. Manfred Horstmann, Sr. Vice President and General Manager of GF Dresden. The GF Women’s Network, GlobalWomen, was launched in 2013 and is comprised of more than 1,500 women and men working together across the company to drive initiatives that advance women’s professional development. GlobalWomen offers women at GF networking and mentoring, panel discussions with executives and guests, professional development opportunities, participation in external conferences, and STEM education programs. The Dresden Chapter was established in 2019 and the Sofia Chapter in 2022. About GF GlobalFoundries (GF) is one of the world’s leading semiconductor manufacturers. GF is redefining innovation and semiconductor manufacturing by developing and delivering feature-rich process technology solutions that provide leadership performance in pervasive high growth markets. GF offers a unique mix of design, development and fabrication services. With a talented and diverse workforce and an at-scale manufacturing footprint spanning the U.S., Europe and Asia, GF is a trusted technology source to its worldwide customers. For more information, visit www.gf.com.
GlobalFoundries Names Pradheepa Raman as Chief People Officer August 25, 2022 Experienced HR executive joins GF leadership team MALTA, N.Y., August 25, 2022 – GlobalFoundries (NASDAQ: GFS) (GF), a global leader in feature-rich semiconductor manufacturing, today announced the appointment of Pradheepa Raman as Chief People Officer. The appointment is effective September 12, 2022. Pradheepa Raman An experienced human resources executive with demonstrated success in driving positive change to the employee experience and building organizational resiliency through skills development, Raman will be responsible for leading all aspects of GF’s worldwide human resources efforts. As GF continues to expand its global manufacturing capacity, key areas of focus for Raman will be recruitment, talent development, and advancing GF’s culture of diversity, equity, and inclusion. Raman joins GF from Stanley Black & Decker, where she held the dual roles of global head of human resources and chief transformation officer for the company’s largest business unit. Prior to that, she served as the company’s chief talent innovation officer. Before Stanley Black & Decker, Raman served as head of talent, diversity, and employee engagement at Samsung Electronics America, and in several human resources leadership roles at global technology company Avaya. “Pradheepa joins us with a proven track record of driving impact through thoughtful, strategic human resources leadership, delivering a best-in-class employee experience that sets the stage for success, growth, and innovation,” said Dr. Thomas Caulfield, president and CEO of GF. “On behalf of our 15,000-strong global team, I welcome Pradheepa to GF. I am thrilled for her to join our leadership team and take GF’s human resources strategy to new heights, during this unprecedented time for semiconductor manufacturing.” “I am incredibly excited to begin my journey at GF at a time when the semiconductor industry is so vital to the global economy,” said Raman. “I am really looking forward to working with GF’s global team of talented engineers, technicians and business leaders. GF’s diverse talent pool is a real strength and their relentless commitment to developing their employees was critical in my decision to join the leadership team. Employees are a company’s most important resource, and I have spent my career creating HR systems to engage, develop, and empower talent. I can’t wait to get started at GF.” About GF GlobalFoundries (GF) is one of the world’s leading semiconductor manufacturers. GF is redefining innovation and semiconductor manufacturing by developing and delivering feature-rich process technology solutions that provide leadership performance in pervasive high growth markets. GF offers a unique mix of design, development and fabrication services. With a talented and diverse workforce and an at-scale manufacturing footprint spanning the U.S., Europe and Asia, GF is a trusted technology source to its worldwide customers. For more information, visit www.gf.com. Forward-Looking Statements This news release may contain forward-looking statements, which involve risks and uncertainties. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. GF undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless required by law. Media Contact: Michael Mullaney[email protected]
Explore pathways to success with the Global Journey Re-Entry Program August 17, 2022 by Kassidy Berger GF employee’s journey led to the creation of a new program to help professionals who have taken a career break return to the workforce Bika Carter Bika Carter, director of External R&D under GF Labs, at GlobalFoundries (GF), knew what it was like to step back into her career after taking a seven-year career break for family reasons. When she considered re-entering a career in tech, Carter harbored feelings of self-doubt if she could get back into a fast-paced technical industry. Understanding the impact of a supportive network and the need for a ramp, Carter championed the creation of the Global Journey Re-Entry Program. Since then, Carter has recognized the leadership, communication, and program management skills she gained during her career break—whether it was her tutoring experience or leadership skills she learned while driving various volunteer programs. Carter credits her managers, family, and mentors for creating a network of support which made her re-entry possible. GF’s Global Journey program aims to create a network for re-launchers coming back into the workforce after a voluntary break. This provides individuals with an extra layer of support when coming back into the workplace. The development of this program has also brought together GF team members who happen to be re-launchers as well. As part of GF’s wider Diversity, Equity and Inclusion goals, the Global Journey Re-Entry program aims to empower candidates to bring their unique talents and experiences to contribute to the dynamic working environment that drives GF success. Through impactful roles, program participants will refresh and gain skills to transition to a full-time position. GF is part of the STEM Reentry Task Force, the groundbreaking career reentry initiative co-led by the Society of Women Engineers and iRelaunch. GF joined the STEM Reentry Task Force in 2020, and it has been instrumental in the development of the Global Journey program. In a November 2012 article in the Harvard Business Review, Carol Fishman Cohen defined a returnship as “a short-term paid position designed for a professional who’d been out of the workforce for several years—basically, an internship for an experienced worker whose time off might scare recruiters away.” In 2007, Cohen co-founded iRelaunch, an organization which works with employers to build and expand their career re-entry programs. iRelaunch and the Society of Women Engineers (SWE) founded the STEM Reentry Task Force in 2015 to grow the number of employers offering return to work programs with a technical focus. iRelaunch defines re-launchers as “mid-to-senior level professionals who have taken a career break of two years or more and want to return to work.” There are a multitude of reasons for one to take a career break. Others may leave the workforce to pursue entrepreneurial interests, military service, elder care or alternate career paths. Karen Nummy, a distinguished member of GF’s Technical Staff Process Integration team, said she returned to work after six years away from the semiconductor industry. While grateful for the opportunity, she was also concerned about the rapid pace of technology advancement and that she would feel passed by. “But what I found was my basic technical knowledge and problem-solving skills were still very valuable,” Nummy said. “The largest learning curve were all the new systems and reconnecting to the larger team. The time away from work made me realize how much I enjoy being part of a team solving technical problems. I think I returned to work with renewed energy and excitement.” Another GF colleague, Steven Soss, DMTS in TEQ, said he returned to the semiconductor industry after taking a five-year break to explore entrepreneurship. When it was time to return to the workforce, he felt concerned that he had missed an entire generation of semiconductor technology development. He also received feedback from hiring managers at other companies that the “two-year hole” on his resume, during which he was working as an entrepreneur, was an area of concern and even a sign of “unemployability.” “I firmly believe that my time away from the semiconductor industry made me a better employee,” Soss said. “I am excited to see the diverse range of candidates that the Global Journey program will bring into GF.” The program’s pilot phase recently closed, and GF is proud to celebrate the achievements of all its participants, including re-launcher Lou Ann Martin. Martin joined GF’s Design Enablement team and was the very first ‘graduate’ of the Global Journey program. “What a tremendous opportunity it is to be part of the GlobalFoundries technical community. Leaving the technical field at IBM for more than 10 years to raise four children, I never imagined there would be a place for me again in a STEM career,” said Martin. “Even in preparation for applying, I found helpful feedback and encouragement from the Global Journey Re-Entry team. Their support was amazing in helping me navigate the first few months back in the office. I could not speak more highly of the program and its purpose, truly life changing for me.” Interested in the Global Journey Program? Check out the program’s webpage to learn more and apply for relaunch positions.
GlobalFoundries Announces Participation in Upcoming Investor Conferences August 11, 2022 MALTA, N.Y., August 11, 2022 – GlobalFoundries (NASDAQ: GFS) today announced that it will participate in the following upcoming investor conferences. Thursday, September 1, 2022, 9:30am PT – Deutsche Bank 2022 Technology Conference Thursday, September 8, 2022, 8:15am ET – Citi 2022 Global Technology Conference Live webcasts and replays of the presentations will be accessible from the Investor section of GF’s website at investors.gf.com. About GlobalFoundries GlobalFoundries Inc. (GF) is one of the world’s leading semiconductor manufacturers. GF is redefining innovation and semiconductor manufacturing by developing and delivering feature-rich process technology solutions that provide leadership performance in pervasive high growth markets. GF offers a unique mix of design, development and fabrication services. With a talented and diverse workforce and an at-scale manufacturing footprint spanning the U.S., Europe and Asia, GF is a trusted technology source to its worldwide customers. For more information, visit www.gf.com. For further information, please contact: [email protected]
GlobalFoundries Reports Second Quarter 2022 Financial Results August 9, 2022 Record Revenue, Gross Profit, and Net Income MALTA, N.Y., August 9, 2022 (GLOBE NEWSWIRE) — GlobalFoundries Inc. (GF) (Nasdaq: GFS) today announced preliminary financial results for the second quarter ended June 30, 2022. Key Second Quarter Financial Highlights Record revenue of $1.99 billion, up 23% year-over-year. Record gross margin of 27.0% and adjusted gross margin of 28.0%. Record operating margin of 14.9% and adjusted operating margin of 17.6%. Record net income of $264 million and adjusted net income of $317 million. Record adjusted EBITDA margin of 39.3%. Cash and cash equivalents and marketable securities of $3.3 billion. “In the second quarter, the GF team delivered on its commitments to customers and shareholders,” said CEO Dr. Thomas Caulfield. “We shipped a record 630 thousand wafers in the quarter, driven by double-digit growth at sites in the US and Europe. Our revenue grew 23% year-over-year, and we delivered record profitability, making significant progress towards our long-term financial model. Despite global supply chain challenges, the GF team continues to execute to our expansion plans as we build out capacity to meet our customers’ long-term needs. We remain on track to deliver a strong year of growth and profitability.” Recent Business Highlights: On the heels of the passage of the US CHIPS Act, GF announced the extension of its long-term agreement with Qualcomm which adds more than $4Bn in incremental wafer purchases from GF’s Malta, New York facility. With this extension, the total long-term agreement with Qualcomm now represents more than $7Bn in global revenue through 2028 across multiple technologies. GF and ST Microelectronics signed a definitive agreement to create a new, jointly-operated 300mm semiconductor manufacturing facility adjacent to ST’s existing 300mm facility in Crolles, France. This new facility, combined with GF’s capacity expansion in Dresden, Germany, will triple GF’s capacity in Europe through 2028. GlobalFoundries announced that its first tool has been moved into the company’s new facility on its Singapore campus. Unaudited Summary Quarterly Results (in millions USD, except per share amounts and wafer shipments)1 Year-over-year Sequential Q2’22 Q1’22 Q2’21 Q2’22 vs Q2’21 Q2’22 vs Q1’22 Net revenue $ 1,993 $ 1,940 $ 1,620 $ 373 23 % $ 53 3 % Gross profit 538 $ 469 231 $ 307 133 % $ 69 15 % Gross margin 27.0 % 24.2 % 14.3 % +1,270bps +280bps Adjusted gross profit1 $ 559 $ 490 $ 267 $ 292 109 % $ 69 14 % Adjusted gross margin 28.0 % 25.3 % 16.5 % +1,150bps +270bps Operating profit (loss) $ 297 $ 225 $ (103 ) $ 400 388 % $ 72 32 % Operating margin 14.9 % 11.6 % (6.4 )% +2,130bps +330bps Adjusted operating profit (loss)1 $ 350 $ 279 $ 41 $ 309 754 % $ 71 25 % Adjusted operating margin 17.6 % 14.4 % 2.5 % +1,510bps +320bps Net income (loss) $ 264 $ 178 $ (174 ) $ 438 252 % $ 86 48 % Net income (loss) margin 13.2 % 9.2 % (10.7 )% +2,390bps +400bps Adjusted net income (loss)1 $ 317 $ 232 $ (30 ) $ 347 1,157 % $ 85 37 % Adjusted net income (loss) margin 15.9 % 12.0 % (1.9 )% +1,780bps +390bps Diluted earnings (loss) per share (“EPS”) $ 0.48 $ 0.33 $ (0.35 ) $ 0.83 237 % $ 0.15 45 % Adjusted diluted earnings (loss) per share1 $ 0.58 $ 0.42 $ (0.06 ) $ 0.64 1,067 % $ 0.16 38 % Adjusted EBITDA1 $ 784 $ 698 $ 466 $ 318 68 % $ 86 12 % Adjusted EBITDA margin 39.3 % 36.0 % 28.8 % +1,050bps +330bps Cash from operations $ 609 $ 845 $ 434 $ 175 40 % $ (236 ) (28 )% Wafer shipments (300MM Equivalent) (in thousands) 630 625 595 35 6 % $ 5 1 % 1Adjusted gross profit, adjusted operating profit (loss), adjusted net income (loss), adjusted diluted earnings (loss) per share, and adjusted EBITDA are adjusted non-IFRS metrics; please see the reconciliation of IFRS to adjusted non-IFRS metrics in the section “Unaudited Reconciliation of IFRS to Adjusted non-IFRS” below. Summary of Third Quarter 2022 Outlook (unaudited, in millions USD except per share amounts)2 IFRS Share-based compensation Non-IFRS Adjusted Net revenue $2,035 – $2,065 — — Gross Profit $557 – $590 $19 – $23 $580 – $609 Gross Margin (mid-point) 28.0% 29.0% Operating Profit $301 – $343 $38 – $46 $347 – $381 Operating Margin (mid-point) 15.7% 17.8% Net Income $278 – $318 $38 – $46 $324 – $356 Net Income Margin (mid-point) 14.5% 16.6% Diluted EPS $0.50 – $0.58 $0.59 – $0.65 Adjusted EBITDA — $775 – $813 Adj. EBITDA Margin (mid-point) 38.7% 2The guidance provided above contains forward-looking statements as defined in the U.S. Private Securities Litigation Act of 1995, and is subject to the safe harbors created therein. The guidance includes management’s beliefs and assumptions and is based on information currently available. GF has not provided a reconciliation of its Third Fiscal Quarter outlook for adjusted Non-IFRS EBITDA and related Margin because estimates of all of the reconciling items cannot be provided without unreasonable efforts. Certain factors that are materially significant to GF’s ability to estimate these items are out of its control and/or cannot be reasonably predicted. Unaudited Consolidated Statements of Operations Three Months Ended (in millions USD, except for per share amounts) June 30, 2022 June 30, 2021 Net revenue $ 1,993 $ 1,620 Cost of revenue 1,455 1,389 Gross profit $ 538 $ 231 Operating expenses: Research and development 120 132 Sales, marketing, general and administrative 121 202 Total operating expenses $ 241 $ 334 Operating profit (loss) 297 (103 ) Finance expense, net (19 ) (28 ) Other income (loss) 16 (23 ) Income tax expense (30 ) (20 ) Net income (loss) $ 264 $ (174 ) Attributable to: Shareholders of GlobalFoundries 264 (173 ) Non-controlling interest — (1 ) Earnings (loss) per share (“EPS”): Basic $ 0.49 $ (0.35 ) Diluted $ 0.48 $ (0.35 ) Shares used in earnings (loss) per share calculation Basic 535 500 Diluted 550 500 Unaudited Consolidated Statements of Financial Position (in millions USD) June 30, 2022 December 31, 2021 Assets: Cash and cash equivalents $ 2,474 $ 2,939 Receivables, prepayments and other 1,247 1,231 Marketable securities 525 — Inventories 1,262 1,121 Current assets $ 5,508 $ 5,291 Deferred tax assets 313 353 Property, plant, and equipment, net 9,410 8,713 Marketable securities 263 — Other assets 700 671 Noncurrent assets 10,686 9,737 Total assets $ 16,194 $ 15,028 Liabilities and equity: Current portion of long-term debt $ 262 $ 297 Other current liabilities 3,051 2,866 Current liabilities $ 3,313 $ 3,163 Noncurrent portion of long-term debt 1,908 1,716 Other liabilities 2,315 2,116 Noncurrent liabilities $ 4,223 $ 3,832 Shareholders’ equity: Common stock/additional paid-in capital 23,684 23,498 Accumulated deficit (15,026 ) (15,469 ) Accumulated other comprehensive (loss) (51 ) (54 ) Non-controlling interest 51 58 Total liabilities and equity $ 16,194 $ 15,028 Unaudited Consolidated Statements of Cash Flows Three Months Ended (in millions USD) June 30, 2022 June 30, 2021 Cash flows from operating activities: Net income (loss) $ 264 $ (174 ) Depreciation and amortization 411 408 Finance expense, net and other (10 ) (2 ) Deferred income taxes 22 12 Other non-cash operating activities 23 131 Net change in working capital (101 ) 59 Net cash provided by operating activities $ 609 $ 434 Cash flows from investing activities: Purchases of property, plant, equipment, and intangible assets (812 ) (423 ) Other investing activities (792 ) 217 Net cash used in investing activities $ (1,604 ) $ (206 ) Cash flows from financing activities: Proceeds (repayment) of debt, net $ 124 $ (108 ) Other financing activities 83 45 Net cash (used in) provided by financing activities $ 207 $ (63 ) Effect of exchange rate changes (2 ) $ 5 Net change in cash and cash equivalents $ (790 ) $ 170 Cash and cash equivalents at the beginning of the period 3,264 635 Cash and cash equivalents at the end of the period $ 2,474 $ 805 Unaudited Reconciliation of IFRS to Adjusted Non-IFRS Three Months Ended (in millions USD) June 30, 2022 March 31, 2022 June 30, 2021 Gross profit $ 538 $ 469 $ 231 Gross profit margin 27.0 % 24.2 % 14.3 % Share based compensation $ 21 $ 21 $ 36 Adjusted gross profit $ 559 $ 490 $ 267 Adjusted gross profit margin 28.0 % 25.3 % 16.5 % Operating profit (loss) $ 297 $ 225 $ (103 ) Operating profit (loss) margin 14.9 % 11.6 % (6.4 )% Share based compensation $ 53 $ 54 $ 144 Adjusted operating profit $ 350 $ 279 $ 41 Adjusted operating profit margin 17.6 % 14.4 % 2.5 % Net income (loss) $ 264 $ 178 $ (174 ) Net income (loss) margin 13.2 % 9.2 % (10.7 )% Share based compensation $ 53 $ 54 $ 144 Adjusted net income (loss) $ 317 $ 232 $ (30 ) Adjusted net income (loss) margin 15.9 % 12.0 % (1.9 )% Diluted earnings (loss) per share $ 0.48 $ 0.33 $ (0.35 ) Share based compensation $ 0.10 $ 0.09 $ 0.29 Adjusted diluted earnings (loss) per share $ 0.58 $ 0.42 $ (0.06 ) Unaudited Reconciliation of Net Income (Loss) to Adjusted EBITDA Three Months Ended (in millions USD) June 30, 2022 March 31, 2022 June 30, 2021 Net income (loss) for the period $ 264 $ 178 $ (174 ) Depreciation and amortization $ 411 $ 408 $ 408 Finance expense $ 26 $ 29 $ 29 Income tax expense $ 30 $ 29 $ 20 Share based compensation $ 53 $ 54 $ 144 Restructuring and corporate severance programs — — $ 5 (Gains) on transactions, legal settlements and transaction expenses — — $ 34 Adjusted EBITDA $ 784 $ 698 $ 466 Adjusted EBITDA margin 39.3 % 36.0 % 28.8 % Adjusted Financial Measures (Non-IFRS) In addition to the financial information presented in accordance with IFRS, this press release includes the following adjusted non-IFRS metrics: adjusted gross profit, adjusted operating profit, adjusted net income (loss), adjusted diluted earnings (loss) per share and adjusted EBITDA. We define adjusted gross profit as gross profit adjusted for share-based compensation expense. We define adjusted operating profit as profit from operations adjusted for share-based compensation expense. We define adjusted net income (loss) as net income (loss) adjusted for share-based compensation expense. We define adjusted diluted EPS as adjusted net income (loss) divided by the dilutive shares. We define adjusted EBITDA as net income (loss), excluding the impact of finance expense, income tax expense, depreciation, amortization, share-based compensation expense, transaction gains and associated expenses, restructuring charges and litigation settlements. We believe that in addition to our results determined in accordance with IFRS, these adjusted non-IFRS measures provide useful information to both management and investors in measuring our financial performance and highlight trends in our business that may not otherwise be apparent when relying solely on IFRS measures. These adjusted non-IFRS financial measures provide supplemental information regarding our operating performance that excludes certain gains, losses and non-cash charges that occur relatively infrequently and/or that we consider to be unrelated to our core operations. For further information regarding these non-IFRS measures, please refer to “Unaudited Reconciliation of IFRS to Adjusted Non-IFRS” table above. Adjusted non-IFRS financial information is presented for supplemental informational purposes only and should not be considered in isolation or as a substitute for financial information presented in accordance with IFRS. Our presentation of adjusted non-IFRS measures should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items. Other companies in our industry may calculate these measures differently, which may limit their usefulness as a comparative measure. Conference Call and Webcast Information GF will host a conference call with the financial community on Tuesday, August 9, 2022 at 8:30 a.m. U.S. Eastern Time (ET) to review the Second Quarter 2022 results in detail. Interested parties may join the scheduled conference call by registering https://register.vevent.com/register/BIeafbd546fa2f42e4bcf2451abc7b44cf The call will be webcast and can be accessed from the GF Investor Relations website https://investors.gf.com. A replay of the call will be available on the GF Investor Relations website within 24 hours of the actual call. About GlobalFoundries GlobalFoundries® (GF®) is one of the world’s leading semiconductor manufacturers. GF is redefining innovation and semiconductor manufacturing by developing and delivering feature-rich process technology solutions that provide leadership performance in pervasive high growth markets. GF offers a unique mix of design, development and fabrication services. With a talented and diverse workforce and an at-scale manufacturing footprint spanning the U.S., Europe and Asia, GF is a trusted technology source to its worldwide customers. For more information, visit www.gf.com. Forward-looking Statements This press release includes “forward-looking statements” that reflect our current expectations and views of future events. These forward-looking statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995 and include but are not limited to, statements regarding our financial outlook, future guidance, product development, business strategy and plans, and market trends, opportunities and positioning. These statements are based on current expectations, assumptions, estimates, forecasts, projections and limited information available at the time they are made. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall,” “outlook,” “on track,” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are subject to a broad variety of risks and uncertainties, both known and unknown. Any inaccuracy in our assumptions and estimates could affect the realization of the expectations or forecasts in these forward-looking statements. For example, our business could be impacted by the COVID-19 pandemic and supply chain disruptions due to the Russia/Ukraine conflict and actions taken in response to such events; the market for our products may develop more slowly than expected or than it has in the past; our operating results may fluctuate more than expected; there may be significant fluctuations in our results of operations and cash flows related to our revenue recognition or otherwise; a network or data security incident that allows unauthorized access to our network or data or our customers’ data could damage our reputation; we could experience interruptions or performance problems associated with our technology, including a service outage; and global economic conditions could deteriorate. It is not possible for us to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. Moreover, we operate in a competitive and rapidly changing market, and new risks may emerge from time to time. You should not rely upon forward-looking statements as predictions of future events. These statements are based on our historical performance and on our current plans, estimates and projections in light of information currently available to us, and therefore you should not place undue reliance on them. Although we believe that the expectations reflected in our statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances described in the forward-looking statements will be achieved or occur. Moreover, neither we, nor any other person, assumes responsibility for the accuracy and completeness of these statements. Recipients are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date such statements are made and should not be construed as statements of fact. Except to the extent required by federal securities laws, we undertake no obligation to update any information or any forward-looking statements as a result of new information, subsequent events, or any other circumstances after the date hereof, or to reflect the occurrence of unanticipated events. For a discussion of potential risks and uncertainties, please refer to the risk factors and cautionary statements in our 2021 Annual Report on Form 20-F, current reports on Form 6-K and other reports filed with the Securities and Exchange Commission. Copies of our SEC filings are available on our Investor Relations website, investors.gf.com, or from the SEC website, www.sec.gov. For further information, please contact: Investor Relations[email protected]
