GlobalFoundries Inc.

Hello, and welcome to the conference call to review Global Foundry's first quarter of fiscal 2025 financial results. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand has been raised. To withdraw your question, please press star 1 1 again. Please be advised that today's conference is being recorded. It is now my pleasure to introduce Senior Vice President, Finance and Operations, Sam Franklin.

Thank you, Operator. Good morning, everyone, and welcome to Global Foundry's first quarter 2025 earnings call. On the call with me today are Tim Breen, CEO, Neil Zanderskoff, President and Chief Operating Officer, and John Hollister, CFO. A short while ago, we released GF's first quarter financial results, which are available on our website at investors.gf.com, along with today's accompanying slide presentation. This call is being recorded and a replay will be made available on our investor relations webpage. During this call, we will present both IFRS and non-IFRS financial measures. The most directly comparable IFRS measures and reconciliations for non-IFRS measures are available in today's press release and accompanying slides. Please note that these financial results are unaudited and subject to change. Certain statements on today's call may be deemed to be forward-looking statements. Such statements can be identified by terms such as believe, expect, intend, anticipate, and may, or by the use of the future tense. You should not place undue reliance on forward-looking statements. Actual results may differ materially from these forward-looking statements, and we do not undertake any obligation to update any forward-looking statements we make today. For more information about factors that may cause actual results to differ materially from forward-looking statements, please refer to the press release we issued today, as well as risks and uncertainties described in our SEC filings, including in sections under the caption Risk Factors in our annual reports on Form 20F and in any current reports on Form 6K filed with the SEC. In terms of upcoming events, please note that we will be participating in fireside chats at the JP Morgan Global Technology Media and Communications Conference in Boston on May 13th and at the Bank of America Global Technology Conference in San Francisco on June 3rd. We will begin today's call with Tim providing a summary update on the current business environment and technologies. Niels will then discuss our recent design wins, highlights and expectations across the end markets, following which John will provide details on our first quarter results and also provide second quarter 2025 guidance. We will then open the call for questions with Tim, John, and Niels. We request that you please limit your questions to one with one follow-up. I'll now turn the call over to Tim for his prepared remarks.

Thank you, Sam, and welcome everyone to our first quarter 2025 earnings call. As our industry seeks to navigate the backdrop of geopolitical tension and trade uncertainties impacting the global economy, I'm proud to announce that in the first quarter, our 13,000 dedicated employees helped to deliver solid financial results at the high end of our guidance ranges across revenue, gross margin, and EPS. First quarter revenue in our automotive, CID, and IoT end markets grew on a year-over-year basis as we executed towards our long-term plan and partnered with our customers to maintain healthy design wind momentum from recent quarters. Furthermore, GS track record of generating meaningful free cash flow continued in the first quarter, with consistent operational excellence across our global footprint, delivering 165 million of non-IR4S adjusted free cash flow. This represents a free cash margin of approximately 10%. With investments in place to grow revenue in a very capital efficient manner, we will continue to focus on free cash flow generation as an important objective. In the meantime, our industry is not immune from the ongoing trade and tariff disputes dominating the headlines. And although GF is uniquely positioned to support our customers across our geographically diversified footprint in the US, Europe, and Asia, we do expect uncertainties associated with the global supply chain and end market demand dynamics to continue into the second half of 2025. Although it is too soon to quantify the precise impacts to the demand and the supply chain dynamics We are monitoring the changing landscape closely, and where possible, we have diversified our sourcing strategies to mitigate potential impacts on our cost base. As you have heard from some of our customers, it is likely that certain costs across the semiconductor supply chain will rise as a result of the tariff-related activities. Where this is the case, we will continue to work closely with our customers towards a mutually agreeable outcome. What is clear at this stage is that geographic resilience in wafer manufacturing supply chains is an increasing priority for GF's customers, and given GF's unique global footprint, we are able to support our customers both globally and locally, further validating GF's strategy and differentiated market position. Achieving manufacturing scale and technology diversity across our footprint has been a multi-year strategy to invest in capacity with differentiated features. To that end, we have deployed over $7 billion into our U.S., Germany, and Singapore facilities since 2021. Customers have been at the core of this strategy, and this will continue to be the case as we consider how best to meet their increasing demand while navigating the growing needs for security of supply. Despite these uncertainties, the secular tailwind supporting long-term demand for essential chip technologies remain firmly intact. and we anticipate that our serviceable addressable market will grow at approximately 10% per annum through the end of the decade. In key end markets, we believe that GF is well-placed to grow at or faster than the overall market growth rates, given our differentiated technologies and geographically advanced footprint. As the foundry of choice to many of our customers, evidenced by nearly 90% sole source design wins over the last four quarters, we continue to gain share in critical end markets such as automotive and communications infrastructure and data center, as the range of applications features and performance drives the need for increased semiconductor content. To that end, we have seen exciting traction with customers in applications aligned to the long-term secular growth trends in the end markets we serve. In optical networking, GF is not only at forefront of innovation with co-packaged optics, but we are also serving the large and growing pluggables market with our 45 SPCLO solution. In STATCOM, GF content in both the base station and in orbit is enabling the rapid deployment of commercial satellites on our 22 FTX, 12 LP, 130 NSX, and 45 RF SOI platforms. In generative AI, GF's proven 14 nanometer technology is playing an important role, especially in inference workloads for large language models. And finally, automotive continue to deliver year-on-year growth as we ramp opportunities and close new design wins on our 130 BCD and 40 ESF3 AutoPro platforms to support the increasing value of semiconductor content in this end market. Putting aside the short-term uncertainty impacting our industry, GS Financial Profile remains robust with strong balance sheet and cash flow fundamentals, declining leverage, $4.7 billion of liquidity, and continued strong free cash flow generation. John will cover these metrics in more detail, and they leave GF well positioned to grow towards our long-term financial objectives, both organically or inorganically, should the right opportunities fit with our long-term strategic goals. In conclusion, thanks to the effort of our teams around the world, We believe GF's long-term future remains as bright as ever, as we partner with our customers with our differentiated technology, drive strong operational execution, and ensure disciplined cost management. With that, over to you, Niels.