Slide 1: 3Q 2023 Presentation
3Q 2023 PRESENTATION RENESAS ELECTRONICS CORPORATION OCTOBER 26, 2023 © 2023 Renesas Electronics Corporation. All rights reserved.
Slide 2: Non-GAAP Basis Information
NON-GAAP BASIS INFORMATION In this section, Renesas Electronics Group (hereinafter “the Group”) applies non-GAAP financial measures (hereinafter “non-GAAP basis”) used for management’s decision making. Non-GAAP figures are calculated by removing or adjusting non-recurring items and other adjustments
Slide 3: Disclaimer
DISCLAIMER Adoption of IFRS: With the outlook that the Group will continue to expand globally and to provide financial figures that can be compared on a global scale, the Group discloses its consolidated financial statements in accordance with IFRS starting from the annual securities report for FY
Slide 4: 3Q 2023 Financial Snapshot
3Q 2023 FINANCIAL SNAPSHOT NON-GAAP 2022 2023 (B yen) 3Q 3Q Change 9 months Change 3Q 9 months 2Q (Jul-Sep) (Jul-Sep) YoY QoQ from Jul 27 (Jan-Sep) YoY from Jul 27 (Jul-Sep) (Jan-Sep) (Apr-Jun) Forecast Actual FCT*1 Actual FCT*1 370.0 Revenue 387.6 1,111.4 368.7 379.4 -2.1% +2.9% +2.5% 1,107.8 -0.3%
Slide 5: Quarterly Revenue Trends
QUARTERLY REVENUE TRENDS NON-GAAP Automotive Industrial/Infrastructure/IoT Others (B yen) 391.3 387.6 379.4 377.1 368.7 Revenue 400 3.0 2.9 359.7 346.7 2.9 2.3 YoY: -2.1% 2.6 2.8 3.0 QoQ:+2.9% 350 314.4 3.3 300 157.8 169.6 258.4 163.8 176.3 169.4 Automotive 4.5 153.9 168.3 250 217.9 131.6 YoY: +11.7
Slide 6: 3Q 2023 Revenue and Gross / Operating Margin
3Q 2023 REVENUE AND GROSS / OPERATING MARGIN NON-GAAP 4 Operating Margin vs FCT +2.4pts Industrial / Automotive Infrastructure / Company Total Revenue IoT Gross Margin vs FCT: +1.4pts Currency Impact Product Mix 176.3 B yen 200.7 B yen 379.4 B yen Production Recovery Revenue Production Costs, etc. v
Slide 7: In-House Inventory and DOI
IN-HOUSE INVENTORY (FINANCIAL ACCOUNTING BASIS) AND DOI*1*2 Automotive Industrial/Infrastructure/IoT Company Total (Days) (Days) (Days) 120 120 120 DOI 90 90 90 Target DOI 60 60 60 (B yen) (B yen) (B yen) 120 120 200 90 90 150 Inventory 60 60 100 Raw Materials Work-In-Process 30 50 30 Finished Goods
Slide 8: Sales Channel Inventory and WOI
SALES CHANNEL INVENTORY*1 (MANAGEMENT ACCOUNTING BASIS*2) AND WOI*3 Automotive Industrial/Infrastructure/IoT Company Total (Weeks) (Weeks) (Weeks) 18 18 18 12 12 12 WOI 6 6 6 Target WOI 0 0 0 (B yen) (B yen) (B yen) 150 150 300 250 100 100 200 Inventory 150 Liquid Inventory*4 50 50 100 Long-Term Inv
Slide 9: Inventory Analysis
INVENTORY ANALYSIS In-House Inventory Sales Channel Inventory＿ 2Q → 3Q 3Q → 4Q Outlook 2Q → 3Q 3Q → 4Q Outlook Raw Materials • Reduced wafer input • Decrease in wafer due to production input due to adjustment production adjustment • Increased inventory • Increase in inventory Industrial Infrastructu
Slide 10: Quarterly Trends in Front-End Utilization Rate
QUARTERLY TRENDS IN FRONT-END UTILIZATION RATE*1 WAFER INPUT BASIS Total 6-inch line 8-inch line 12-inch line 100% 100% 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2021 2022 2023 *1: Utilization rates are calculated by excluding the 6-inch line capacity of the Shiga Factor
Slide 11: Gross Profit and Operating Profit Quarterly Trends
GROSS PROFIT AND OPERATING PROFIT QUARTERLY TRENDS NON-GAAP Gross Profit (Margin) Operating Profit (Margin) YoY: +0.9pt YoY: -2.0pts (B yen) QoQ: +0.6pt (B yen) QoQ: -0.1pt Gross Profit Operating Profit 240.0 60% 240.0 50% Gross Profit Margin 220.9 220.9 219.1 Operating Profit Margin 211.5 219.8 210
Slide 12: Non-GAAP EBITDA and GAAP Cash Flows
NON-GAAP EBITDA*1 AND GAAP CASH FLOWS Non-GAAP EBITDA GAAP Cash Flows (B yen) (B yen) Cash flows from operating activities EBITDA 180 50% Cash flows from investing activities *2 170 157.6 EBITDA margin 165.2 163.4 Free cash flows *3 155.2 155.5 144.9 149.0 152.6 140 138.7 132.7 150 144.3 40% 111.2 1
Slide 13: 4Q and Full Year 2023 Forecast
4Q AND FULL YEAR 2023 FORECAST NON-GAAP 2022 2023 4Q (B yen) (Oct-Dec) Full year 4Q Full year 3Q Midpoint YoY QoQ (Jan-Dec) YoY (Oct-Dec) (Jan-Dec) (Jul-Sep) Forecast Forecast (Range)*1 358.0 -8.5% -5.6% 1,465.8 -2.5% Revenue 391.3 1,502.7 379.4 (±7.5) (±1.9pts) (±2.0pts) (±7.5) (±0.5pt) (Excluding
Slide 14: Appendix
APPENDIX The figures in this section are mainly based on segment disclosure and GAAP (IFRS) stated on a financial reporting basis and are provided as additional information. © 2023 Renesas Electronics Corporation. All rights reserved. Page 14
Slide 15: Revenue and Gross Profit by Segment
REVENUE AND GROSS PROFIT BY SEGMENT NON-GAAP 2022 2023 (B yen) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 9 months YoY QoQ YoY (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) (Jan-Sep) Revenue 346.7 377.1 387.6 391.3 1,502.7 359.7 368.7 379.4 -2.1% +2.9% 1,107.8 -0.3% Automotive
Slide 16: Operating Profit and EBITDA by Segment
OPERATING PROFIT AND EBITDA*1 BY SEGMENT NON-GAAP 2022 2023 (B yen) 1Q 2Q 3Q 4Q Full Year 1Q 2Q 3Q 9 months YoY QoQ YoY (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) (Jan-Sep) Operating Profit 135.5 145.3 142.8 135.7 559.4 124.8 129.1 132.3 -10.5 +3.2 386.1 -37.6 (M
Slide 17: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION GAAP (B yen) 22/3 22/6 22/9 22/12 23/3 23/6 23/9 Total Assets 2,598.7 2,840.3 3,013.3 2,812.5 2,840.8 3,122.4 3,291.2 Cash and Cash Equivalents*1 267.2 247.9 310.1 336.1 361.4 458.1 392.5 Inventories 155.5 173.3 190.7 188.0 188.2 177.9 177.8 Goodwill 1,159.3 1,294.6 1
Slide 18: GAAP / Non-GAAP Reconciliation
GAAP / NON-GAAP RECONCILIATION*1 2023 Full-Year 2022 (Jan-Dec) 3Q (Jul-Sep) 3Q (Jul-Sep) (B yen) Gross Operating Gross Operating Gross Operating Net Profit EBITDA Net Profit EBITDA Net Profit EBITDA Profit Profit Profit Profit Profit Profit Non-GAAP 220.9 142.8 96.4 163.4 863.2 559.4 377.3 639.2 219
Slide 19: 3Q 2023 Consolidated Operating Profit Bridge from Non-GAAP to GAAP
3Q 2023 CONSOLIDATED OPERATING PROFIT BRIDGE FROM NON-GAAP TO GAAP （B yen） 150 Former-Intersil Former-IDT 132.3 PPA Effects PPA Effects Former-Dialog PPA Effects Other Stock-Based PPA Effects Compensation Others 98.0 100 Recurring Items Non-Recurring Items 50 0 Non-GAAP GAAP © 2023 Renesas Electroni
Slide 20: 3Q 2023 Financial Snapshot (GAAP)
3Q 2023 FINANCIAL SNAPSHOT GAAP 2022 2023 (B yen) 3Q 9 months 2Q 3Q 9 months YoY QoQ YoY (Jul-Sep) (Jan-Sep) (Apr-Jun) (Jul-Sep) (Jan-Sep) Revenue*1 387.1 1,110.0 368.7 379.4 -2.0% +2.9% 1,107.5 -0.2% Gross Margin 56.8% 57.3% 57.3% 57.9% +1.1pts +0.6pt 57.0% -0.3pt Operating Profit 117.9 327.9 97.3
Slide 21: Capital Expenditures
CAPITAL EXPENDITURES*1*2 （B yen） 150 Capital Masks and Tools Sales Ratio Fire*3 Recovery Response 60 Investment to restart Kofu Fab operation 40% 39.4% 16.3% 50 Investments eligible for subsidies from METI*4 Excluding Kofu Factory 30% 40 30 20% 20 13.8% 10% 10.3% 10 8.2% 9.2% 7.8% 5.2% 6.7% 5.1% 4.1
Slide 22: Renesas.com (Forward-Looking Statements)
Renesas.com (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 stateme