Renesas Electronics Corporation · TSE:6723

Renesas Electronics — Investor Day (May 2023)

26 slides from Renesas Electronics's investor day presentation, May 19, 2023

Slide 2: Our Journey
OUR JOURNEY (oku yen) 16,000 80% Revenue*1 Gross margin Operating margin Record high (LHS) (RHS) (RHS) Revenue, GM, OM 12,000 60% 8,000 40% Acquisition 4,000 20% 0 0% 2013 2014 2015 2016 *2 2017 2018 2019 2020 2021 2022 Recognition *1: JGAAP/Non-GAAP 2013 thru 2017, IFRS/Non-GAAP 2018 and onwards. R
Slide 3: Expanding Embedded Compute Franchise
EXPANDING EMBEDDED COMPUTE FRANCHISE MCU (excl. 8 bit) 64 bit MPU No.1 No.4 2021 2022 2021 2022 18.5% 19.5% 5% 8% Graphs created by Renesas based on Gartner Research. Calculations performed by Renesas Source: Gartner®, Market Share: Semiconductors by End Market, Worldwide, 2022, Andrew Norwood et al
Slide 6: Strategic Agenda
STRATEGIC AGENDA More emphasis Solution focus UX enhancement on growth Diversification Fab lite Renesas Culture ESG © 2023 Renesas Electronics Corporation. All rights reserved. 6
Slide 7: Design-in Progress
DESIGN-IN PROGRESS Automotive*1 Industrial, Infra and IoT*1 (oku yen) (oku yen) 16,000 16,000 +22% 12,000 12,000 109% +20% vs Target 112% vs Target 8,000 8,000 4,000 4,000 0 0 2021 2022 2023 2021 2022 2023 Actual *2 Actual Taget Actual *2 Actual Target *1: 1USD=100 JPY, 1EUR=120 JPY *2: Proforma (Di
Slide 8: Solution Focus – Winning Combo
SOLUTION FOCUS – WINNING COMBO Cumulative count D-in LTV *1 35% (oku yen) 50% Full-system of Total D-in 12,000 500 500 434 10,000 400 8,000 333 300 29％ 6,000 Auto 203 200 4,000 17％ Industrial, 101 Infra and 100 2,000 IoT 8％ 1％ 0 0 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Target Target *1: C
Slide 10: Production Footprint (Front-end)
PRODUCTION FOOTPRINT (FRONT-END) 6 12 inch inch Takasaki Naka (N3) 12 inch 8 inch SiC line (2025 -) Kofu (K6) Naka (N2) 8 8 inch inch Kawashiri Saijo © 2023 Renesas Electronics Corporation. All rights reserved. 10
Slide 11: Progress Update on Power
PROGRESS UPDATE ON POWER IGBT SiC MAY K6 announcement 2022 Hiring 90+% complete 2023 New Investment for SiC line Introduction of utility equipment 1H Operation start 2024 Mass production start 2025 Mass production start © 2023 Renesas Electronics Corporation. All rights reserved. 11
Slide 12: Renesas Culture
RENESAS CULTURE  Be open to share knowledge  Asking questions  Adapting communications  Critical thinking  Be accountable and take T A G I E across borders  Speak up  Understanding your  Championing new ideas responsibility in the workplace  Delivering of honest and audience  Be alert to e
Slide 13: 2023 Renesas Culture Survey
2023 RENESAS CULTURE SURVEY 20,645 (92%) response; 4,448 comments TAGIE TAGIE TAGIE Engagement Strengths Opportunities Progress Opportunities Agile 69% felt Employee experience Transparent Global ‘TAGIE has Entrepreneurial  Well-Being improved in the Innovative last 12 months’  Collaboration The 2
Slide 14: Progress of ESG Journey
PROGRESS OF ESG JOURNEY Environment Social Governance Index / disclosure Supplier Human Board Climate audit rights diversity Conflict ESG metric mineral to Comp Good Water (3TGs) Supplier engagement Sustainability Report Waste Conflict mineral (cobalt & mica) ISO 45001 HR KPI Compliance (H&S) settin
Slide 15: Progress to Date
Non-GAAP PROGRESS TO DATE Mid-term model*1 2019 2020 2021 2022 Industrial, Adjusted*1 Adjusted*1 Adjusted*1 Adjusted*1 Total Automotive Infra and IoT 6,204 6,357 8,894 12,282 Grow Grow Grow Revenue oku yen oku yen oku yen oku yen @SAM+ @SAM @SAM++ Gross margin 43% 48% 54% 56% 50-55% ≈45% ≈60% Operat
Slide 16: Inventory Model
INVENTORY MODEL Die bank Inventory Lead time MCU & MPU Analog Power Custom Case by case Inventory target WOI 11 ~12 weeks DOI 100 120 days DOI: Days of Inventory WOI: Weeks of Inventory © 2023 Renesas Electronics Corporation. All rights reserved. 16
Slide 19: Downcycle Management
Valuation gap-fill DOWNCYCLE MANAGEMENT Forge ahead profitably and emerge stronger Maintain margins throughout downcycle © 2023 Renesas Electronics Corporation. All rights reserved. 19
Slide 20: Capital Allocation
Valuation gap-fill CAPITAL ALLOCATION When opportunity Small start presents itself M&A Dividends Buybacks Opportunistic © 2023 Renesas Electronics Corporation. All rights reserved. 20
Slide 22: X-SG Collaboration
Multiple expansion X-SG COLLABORATION Global Renesas Sales & Marketing integration New nomenclature product lines Automotive Strategic Regional Operations High Performance Embedded Processing, Verticals Computing, Analog and Digital Power and Power Solutions Group Signal Chain Solutions Group 2023 x
Slide 24: Summary
SUMMARY Forging ahead profitably to emerge stronger… While leveraging all we have… To proceed through initial chapter of new journey …. to make our lives easier © 2023 Renesas Electronics Corporation. All rights reserved. 24
Slide 26: Forward-Looking Statements
(FORWARD-LOOKING STATEMENTS) The statements in this presentation with respect to the plans, strategies and forecasts of Renesas Electronics and its consolidated subsidiaries (collectively “we”) are forward-looking statements involving risks and uncertainties. Such forward looking statements do not r

Renesas Electronics — Investor Day (May 2023) on 6ix

Renesas Electronics — Investor Day (May 2023)

Slide 1: State of the Company

Slide 2: Our Journey

Slide 3: Expanding Embedded Compute Franchise

Slide 4: Our Purpose

Slide 5: Our Purpose

Slide 6: Strategic Agenda

Slide 7: Design-in Progress

Slide 8: Solution Focus – Winning Combo

Slide 9: UX Enhancement

Slide 10: Production Footprint (Front-end)

Slide 11: Progress Update on Power

Slide 12: Renesas Culture

Slide 13: 2023 Renesas Culture Survey

Slide 14: Progress of ESG Journey

Slide 15: Progress to Date

Slide 16: Inventory Model

Slide 17: 2030 Aspiration

Slide 18: 2x3=6

Slide 19: Downcycle Management

Slide 20: Capital Allocation

Slide 21: Road to 2030 Aspiration

Slide 22: X-SG Collaboration

Slide 23: Digitalization

Slide 24: Summary

Slide 25: Thank You

Slide 26: Forward-Looking Statements