(1) Adjusted gross profit, adjusted operating profit, adjusted net income, adjusted diluted earnings per share, adjusted EBITDA, and related margins are adjusted Non-IFRS metrics; see the reconciliation of IFRS to adjusted Non-IFRS metrics in the section "Unaudited Reconciliation of IFRS to Adjusted Non-IFRS" below.

⁽²⁾ Includes the gain on sale of our EFK business in December 2022.

⁽³⁾ Beginning in Q4 2022, the Company has revised its definition of adjusted net income to include an adjustment for restructuring charges and the associated tax impact. The change was made due to a restructuring undertaken in Q4 2022. The Company believes the revised definition provides management and investors with more useful information to evaluate the operations of our business. Adjusted net income is now defined as net income adjusted for share-based compensation expense, restructuring charges and the associated tax impact.

⁽⁴⁾ Beginning in Q3 2022, the Company has revised its definition of adjusted EBITDA to include an adjustment for finance income. The change was made due to the Company making an investment during Q2 2022 of approximately $1.0 billion in marketable securities. The Company believes the revised definition provides management and investors more useful information to evaluate the operations of our business. Adjusted EBITDA is now defined as net income, adjusted for the impact of finance expense, finance income, income tax expense, depreciation, amortization, share-based compensation expense, divestiture gains and associated expenses, restructuring charges, labor optimization initiatives and litigation settlement.

Summary of Second Quarter 2023 Outlook (unaudited in millions USD, except per share amounts) ⁽¹⁾

	IFRS		Share-based compensation		Non-IFRS Adjusted
Net revenue	$1,810 - $1,850		—		—
Gross Profit	$481 - $512		$15- $17		$498 - $527
Gross Margin (mid-point)	27.1%				28.0%
Operating Profit	$238 - $287		$40 - $50		$288 - $327
Operating Margin (mid-point)	14.3%				16.8%
Net Income	$206 - $259		$40 - $50		$256 - $299
Net Income Margin (mid-point)	12.7%				15.2%
Diluted EPS	$0.37 - $0.46				$0.46 - $0.54

⁽¹⁾ The 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 Second 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 signification 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)	March 31, 2023				March 31, 2022
Net revenue	$	1,841			$	1,940
Cost of revenue		1,326				1,471
Gross profit	$	515			$	469
Operating expenses:
Research and development		109				128
Sales, marketing, general and administrative		111				116
Restructuring charges		5				—
Total operating expenses	$	225			$	244
Operating profit	$	290			$	225
Finance expense, net		1				(28	)
Other income (expense)		(14	)			10
Income tax expense		(23	)			(29	)
Net income	$	254			$	178
Attributable to:
Shareholders of GlobalFoundries		254				179
Non-controlling interest		—				(1	)
Earnings per share :
Basic	$	0.46			$	0.34
Diluted	$	0.46			$	0.33
Shares used in earnings per share calculation:
Basic		550				532
Diluted		555				549

Unaudited Consolidated Statements of Financial Position