Renesas Electronics Corporation · TSE:6723
Renesas Electronics — Merger or Acquisition (September 2018)
15 slides from Renesas Electronics's merger presentation, Sep 11, 2018
Slide 1: Renesas to Acquire IDT
RENESAS TO ACQUIRE IDT STEERING THE FUTURE OF INNOVATION September 11, 2018 [Note] IDT: Integrated Device Technology, Inc. © 2018 Renesas Electronics Corporation. All rights reserved.
Slide 2: Additional Information and Where to Find It
Filed by Integrated Device Technology, Inc. pursuant to Rule 14a-12 Under the Securities Exchange Act of 1934 Subject Company: Integrated Device Technology, Inc. Commission File No. of Subject Company: 000-12695 Additional Information and Where to Find It This communication is being made in respect
Slide 3: Transaction Summary
TRANSACTION SUMMARY • $6.7 billion equity value Transaction • $49.00 per share in cash Consideration • Premium of approximately 29.5% to IDT’s unaffected closing share price on August 30, 2018 • $7.2 billion enterprise value Source of • Approximately JPY 679 billion of new debt and remainder from th
Slide 4: Strategic Rationale
Organic Inorganic STRATEGIC RATIONALE Executing consistent acquisition strategy to strengthen Renesas’ analog mixed-signal capability Addressable Market Automotive Industrial Data Center Broad-Based Inorganic + MCUs Intensive R&D Organic Approaches Product Offering SoCs Strategic Partnerships and Al
Slide 5: A Unique Analog Mixed-Signal Company with Solid Revenue Growth
A UNIQUE ANALOG MIXED-SIGNAL COMPANY WITH SOLID REVENUE GROWTH AT 15% CAGR (2014-2018) Continue to add analog mixed-signal products around processors to drive solution offerings Core Technology – Analog Mixed-Signal Real-Time RF, Optical Power Sensors Product Interconnect ADVANCED TIMING 4G & 5G
Slide 6: Adding the Number of Verticals Served
ADDING THE NUMBER OF VERTICALS SERVED Energy Automotive Industrial STORAGE POWER MANAGEMENT Data Processing SENSING PROCESSING ACTUATION INTERCONNECT HUMAN INTERFACE Communication Auto Data Center Broad-based © 2018 Renesas Electronics Corporation. All rights reserved. Page 6 BIG IDEAS FOR EVERY SPA
Slide 7: Address Fast-Growing Data Economy and Connected World
ADDRESS FAST-GROWING DATA ECONOMY AND CONNECTED WORLD Create growth in data economy fields with IDT’s analog mixed-signal products for data sensing, storage and interconnect Growing Data Center Market Growing 4200000 628 650 SENSING Global Data Traffic 3700000 CAGR 13% # of Hyper-scale 550 Data Cent
Slide 8: Compelling Financial Benefits
COMPELLING FINANCIAL BENEFITS Immediately and highly accretive to non-GAAP gross margin and non-GAAP EPS by approximately 1.6%pts and 18% respectively (2) (3) (JPY, Non-GAAP) Revenue(1) JPY 782B JPY 93B JPY 874B (USD 7,105M) (USD 843M) (USD 7,947M) EBITDA(1) JPY 203B JPY 30B JPY 233B (USD 1,845M) (U
Slide 9: Potential Opportunities
POTENTIAL OPPORTUNITIES Cross-Sell Embedded Solution Revenue Minimal customer and product overlap Combination of MCU / SoC and various Renesas’ strong and broad customer base to analog mixed-signal offers higher value Opportunity solutions for fast-growing applications (e.g. fuel IDT’s growing
Slide 10: The Combination Enables Innovative System-Level Solution Offerings
THE COMBINATION ENABLES INNOVATIVE ex- SYSTEM-LEVEL SOLUTION OFFERINGS AUTOMOTIVE INDUSTRIAL DATA CENTER BROAD-BASED SoC MCU MCU SoC LD PMIC MCU PMIC (e-AI / SOTB) Memory PRODUCT VSP BMIC PMIC TOF Regs Regs BMIC Interface Wireless Sensor Wireless Advanced Wireless Regs Sensor AFE Power Power Timing
Slide 11: Renesas – Intersil Integration
RENESAS – INTERSIL INTEGRATION Solid post-merger execution creating a foundation for further innovation (Non-GAAP, USDM) Based on the original plan pre-closing: Integration Sales Integrated worldwide management team and organizations EBITDA Corporate and product brand consolidation Completed s
Slide 12: Financial Contribution Target
FINANCIAL CONTRIBUTION TARGET (1) Accelerate innovation and improvements by leveraging lessons learned from Intersil integration (Non-GAAP, USDM) $250+ Renesas + Intersil (Announced Plan) Renesas + Intersil (Current Projection) Renesas + IDT $170+ $170 Revenue $160+ Opportunities $110+ $130 Cost $90
Slide 13: Solid Deleveraging Capacity
SOLID DELEVERAGING CAPACITY Enhanced Free Cash Flow Generation Rapid Deleverage Increased cash flows as a result of combination Net Debt /EBITDA(1) with a highly profitable company Renesas’ capital expenditures to stay at the minimum level for some years since all necessary 3.2 x (2) investmen
Slide 14: Key Takeaways
KEY TAKEAWAYS Consistent acquisition strategy accelerating growth Complementary products expand the combined company’s solution portfolio Reach more customers with more products in fast-growing applications Further globalization as “One Global Renesas” © 2018 Renesas Electronics Corporation. All rig
Slide 15: Renesas @ IDT
=ENESAS @IDT
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