Slide 1: 2Q 2024 Presentation
2Q 2024 PRESENTATION RENESAS ELECTRONICS CORPORATION JULY 25, 2024 © 2024 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: 2Q 2024 Financial Snapshot
2Q 2024 FINANCIAL SNAPSHOT NON-GAAP 2023 2024 (B yen) 2Q 2Q Change 1H Change 2Q 1H 1Q (Apr-Jun) (Apr-Jun) YoY QoQ from Apr 25 (Jan-Jun) YoY from Apr 25 (Apr-Jun) (Jan-Jun) (Jan-Mar) Forecast Actual FCT*1 Actual FCT*1 355.0 Revenue 368.7 728.4 351.8 358.8 -2.7% +2.0% +1.1% 710.6 -2.4% +0.5% (±7.5) Re
Slide 5: 2Q 2024 Revenue and Gross / Operating Margin
2Q 2024 REVENUE AND GROSS / OPERATING MARGIN NON-GAAP vs FCT Industrial / Company Total Automotive Revenue： Infrastructure / IoT Gross Margin： (+) Decreased production cost (-) Worsen product mix Revenue 358.8 B yen 190.4 B yen 166.2 B yen Operating Margin : vs FCT: +1.1% vs FCT: + vs FCT: - Q
Slide 6: Quarterly Revenue Trends
QUARTERLY REVENUE TRENDS NON-GAAP (B yen) Automotive Industrial/Infrastructure/IoT Others 450 387.6 391.3 Revenue 379.4 400 3.0 2.9 368.7 361.9 359.7 2.3 351.8 358.8 YoY: -2.7% 2.6 2.8 2.2 2.2 QoQ: +2.0% 2.1 350 300 157.8 169.6 161.1 168.2 Automotive 159.2 172.0 178.2 190.4 YoY: +18.2% 250 QoQ: +6.9
Slide 7: Quarterly Business Trends
QUARTERLY BUSINESS TRENDS NON-GAAP Gross Profit (Margin) Operating Profit (Margin) YoY: -0.6pt YoY: -4.2pts Gross Profit Gross Margin QoQ: +0.1pt Operating Profit Operating Margin QoQ: -1.5pts 200 57.9% 60% 200 40% 57.0% 57.4% 56.7% 36.8% 56.2% 56.4% 56.7% 150 56.0% 150 34.7% 34.7% 35.0% 34.9% 100 5
Slide 8: Inventory
INVENTORY In-House Inventory*1 Sales Channel Inventory*3 In-House Inventory/DOI (Financial Accounting Basis) (Management Accounting Basis*4) (Days) 2Q Results: Increased (Weeks) DOI*2 WOI*5 WIP: Die bank expansion 120 18 FG/RM: Shipments and input based on demand 12 90 6 3Q Forecast: Increase 60
Slide 9: Front-End Utilization Rate and Capital Expenditures
FRONT-END UTILIZATION RATE*1 AND CAPITAL EXPENDITURES*2 FRONT-END UTILIZATION RATE CAPITAL EXPENDITURES (WAFER INPUT BASIS) （B yen） Capital Expenditures Total 6-inch line 8-inch line 12-inch line 100% 40 % Revenue Ratio 10.2% 80% 30 7.8% 60% 5.1% 5.6% 20 4.1% 40% 3.8% 3.9% 3.4% 10 20% 0% 0 3Q 4Q 1Q
Slide 10: 3Q 2024 Forecast
3Q 2024 FORECAST NON-GAAP 2023 2024 3Q (B yen) (Jul-Sep) 9 months 3Q 9 months 2Q Midpoint YoY QoQ (Jan-Sep) YoY (Jul-Sep) (Jan-Sep) (Apr-Jun) Forecast Forecast (Range)*1 348.0 -8.3% -3.0% 1,058.6 -4.4% Revenue 379.4 1,107.8 358.8 (±7.5) (±2.0pts) (±2.1pts) (±7.5) (±0.7pt) Revenue (Excluding - - - -
Slide 11: 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. © 2024 Renesas Electronics Corporation. All rights reserved. Page 11
Slide 12: Revenue and Gross Profit by Segment
REVENUE AND GROSS PROFIT BY SEGMENT*1 NON-GAAP 2023 2024 (B yen) 1Q 2Q 3Q 4Q Full-Year 1Q 2Q 1H YoY QoQ YoY (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Dec) (Jan-Mar) (Apr-Jun) (Jan-Jun) Revenue 359.7 368.7 379.4 361.9 1,469.7 351.8 358.8 -2.7% +2.0% 710.6 -2.4% Automotive 159.2 161.1 168.2 172.0 6
Slide 13: Operating Profit and EBITDA by Segment
OPERATING PROFIT AND EBITDA*1 BY SEGMENT*2 NON-GAAP 2023 2024 (B yen) 1Q 2Q 3Q 4Q Full-Year 1Q 2Q 1H YoY QoQ YoY (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Dec) (Jan-Mar) (Apr-Jun) (Jan-Jun) Operating Profit 124.8 129.1 132.3 115.5 501.6 113.5 110.6 -18.5 -3.0 224.1 -29.8 (Margin) (34.7%) (35.0%)
Slide 14: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION GAAP (B yen) 23/3 23/6 23/9 23/12 24/3 24/6 Total Assets 2,840.8 3,123.5 3,292.2 3,167.0 3,233.7 3,661.6 Cash and Cash Equivalents*1 361.4 458.1 392.5 434.7 231.8 288.4 Inventories 188.2 177.9 177.8 163.1 171.4 178.1 Goodwill 1,272.3 1,392.4 1,436.0 1,362.1 1,453.8 1,
Slide 15: GAAP / Non-GAAP Reconciliation
GAAP / NON-GAAP RECONCILIATION 2023 2024 (B yen) 2Q (Apr-Jun) Full-Year (Jan-Dec) 2Q (Apr-Jun) Gross Operating Net Gross Operating Net Gross Operating Net EBITDA EBITDA EBITDA Profit Profit Profit*1 Profit Profit Profit*1 Profit Profit Profit*1 Non-GAAP 211.5 129.1 119.0 149.0 837.4 501.6 432.9 581.
Slide 16: 2Q 2024 Consolidated Operating Profit Bridge from Non-GAAP to GAAP
2Q 2024 CONSOLIDATED OPERATING PROFIT BRIDGE FROM NON-GAAP TO GAAP （B yen） 150 Former-Intersil 110.6 PPA Effects Former-IDT PPA Effects Former-Dialog 100 PPA Effects Other Stock-Based PPA Effects Compensation Others 69.7 Recurring Items Non-Recurring 50 Items 0 Non-GAAP GAAP © 2024 Renesas Electroni
Slide 17: 2Q 2024 Financial Snapshot (GAAP)
2Q 2024 FINANCIAL SNAPSHOT GAAP 2023 2024 (B yen) 2Q 1H 1Q 2Q 1H YoY QoQ YoY (Apr-Jun) (Jan-Jun) (Jan-Mar) (Apr-Jun) (Jan-Jun) Revenue 368.7 728.1 351.8 358.8 -2.7% +2.0% 710.6 -2.4% Gross Margin 57.3% 56.5% 56.1% 56.0% -1.3pts -0.1pt 56.1% -0.4pt Operating Profit 97.2 220.5 77.8 69.7 -27.5 -8.1 147
Slide 18: Highlights
HIGHLIGHTS Completion of Transphorm*1 acquisition Update on Acquisition of Altium*2 Summary: Completed the acquisition on June 20, 2024. Summary: Announced the agreement to acquire a PCB*3 Began offering GaN-based power products and related design software provider Altium on February 15, 2024 refere
Slide 19: Renesas at a Glance
RENESAS AT A GLANCE 2023 Highlight*1 Growth Trajectory*1 Revenue Gross Operating 1,500 (B yen) Margin Margin 60% Revenue Operating Margin FCF Margin 1,496.7 B yen 34.1% 25.8% 1,000 40% Gross Margin EBIDTA Margin EPS 500 20% 57.0% 40.0% 243.73 yen 0 0% 2019 2020 2021 2022 2023 Revenue Composition 203
Slide 20: 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