Slide 1: FY20/12 Q1 Presentation
FY20/12 Q1 PRESENTATION RENESAS ELECTRONICS CORPORATION APRIL 27, 2020 © 2020 Renesas Electronics Corporation. All rights reserved.
Slide 2: FY2020 Q1 Earnings Presentation
FY2020 Q1 EARNINGS PRESENTATION In this section, Renesas Electronics Group (hereinafter “the Group”) applies Non-GAAP financial measures (hereinafter “Non-GAAP basis”) used for management’s decision making. The Group defines the Non-GAAP consolidated financial results as financial accounting figures
Slide 3: Disclaimer
DISCLAIMER Adoption of IFRS: With the outlook that the Group will continue to expand its business globally and to provide financial information that can be compared on a global scale, the Group discloses its consolidated financial statements in accordance with the International Financial Reporting
Slide 4: FY20/12 Q1 Financial Snapshot
Non-GAAP FY20/12 Q1 FINANCIAL SNAPSHOT IFRS, NON-GAAP *1*2 YoY and QoQ revenue as well as the changes from FCTs of the Revenue are rounded off to one decimal place. FY19/12 FY20/12 (B yen) Q1 Q1 Q1 Q4 Change from (Jan-Mar) (Jan-Mar) YoY QoQ (Jan-Mar) (Oct-Dec) Feb 12 FCT *3 Forecast Actual 175.0 Rev
Slide 5: Quarterly Revenue Trends
Non-GAAP QUARTERLY REVENUE TRENDS IFRS, NON-GAAP *1*2 Industrial/Infrastructure/IoT Automotive Others Revenue (B yen) 203.3 YoY: +19.0% 185.6 192.6 192.0 QoQ: -6.9% 200 5.3 187.7 183.4 178.7 179.9 4.6 4.2 4.4 5.2 4.4 5.3 2.6 Automotive 150.3 150 4.2 YoY: +13.1% 103.8 QoQ: -7.2% 90.4 94.5 100.8 93.6
Slide 6: FY2020/12 Q1 Operating Margin
Non-GAAP FY2020/12 Q1 OPERATING MARGIN IFRS, NON-GAAP *1*2 Operating Margin: QoQ +2.5pts FY19/12 Q1 FY19/12 Q4 FY20/12 Q1 FY20/12 Q1 Actual Actual Forecast Actual Currency impact (Jan-Mar 2019) (Oct-Dec 2019) (Jan-Mar 2020) (Jan-Mar 2020) Profit decrease from decline in sales Expense decreases 4.7％
Slide 7: Gross Margin, Operating Margin and Opex Trajectory
Non-GAAP GROSS MARGIN, OPERATING MARGIN AND OPEX TRAJECTORY IFRS, NON-GAAP *1*2 Before reclassification of expenses After reclassification of expenses YoY: +9.2pts YoY: -2.2pts Gross Margin (%) QoQ: +2.2pts R&D Ratio (%) QoQ: -0.2pt 50 20 19.7 46.0 17.2 17.4 17.6 17.5 44.8 45.0 18 45 47.3 18.5 39.3
Slide 8: Quarterly Trends in Front-End Utilization Rate
QUARTERLY TRENDS IN FRONT-END UTILIZATION RATE WAFER INPUT BASIS Total 6-inch line 8-inch line 12-inch line 100% 80% 60% 40% 20% 0% *1 FY17/Q1 FY17/Q2 FY17/Q3 FY17/Q4 FY18/Q1 FY18/Q2 FY18/Q3 FY18/Q4 FY19/Q1 FY19/Q2 FY19/Q3 FY19/Q4 FY20/Q1 © 2020 Renesas Electronics Corporation. All rights reserved.
Slide 9: Non-GAAP EBITDA and GAAP Cash Flows
Non-GAAP (EBITDA) GAAP IFRS (Cash Flows) NON-GAAP*1 EBITDA*2*3 AND GAAP*4 CASH FLOWS Non-GAAP EBITDA GAAP Cash Flows Cash flows from operating activities 70 (B yen) 79.2 (B yen) Cash flows from investing activities 75 Free cash flows *5 60 57.1 56.0 57.6 67.1 53.7 61.2 53.0 51.7 60 54.4 50 48.1 47.8
Slide 10: Quarterly Revenue, Profit, and EBITDA Trends by Segment
Non-GAAP QUARTERLY REVENUE, PROFIT, AND EBITDA*1 TRENDS BY SEGMENT IFRS, NON-GAAP *2*3*4 Automotive Industrial, Infrastructure, IoT (B yen) Revenue EBITDA GM OM (B yen) Revenue EBITDA GM OM 120 60% 120 70% 103.8 102.0 100.8 60% 100 94.5 50% 100 94.3 93.6 93.1 93.5 90.8 93.5 90.4 85.9 87.0 50% 82.7 4
Slide 11: FY2020/12 Q2 Forecast
FY2020/12 Q2 FORECAST Due to the uncertainty of impacts from the worldwide COVID-19 pandemic to Renesas’ business, it is difficult to make a reasonable calculation of the financial forecasts at this current time. For this reason, consolidated financial forecasts for the six months ending June 30, 20
Slide 12: Cost-Cash Management in Preparation Against Future Demand Decreases
COST-CASH MANAGEMENT IN PREPARATION AGAINST FUTURE DEMAND DECREASES Examples of Major Measures Temporary furlough of office workers and Proactively undertake cost-cash management measures in preparation temporary production halts against future demand decrease Reduction of Opex Reduction and p
Slide 13: Appendix
APPENDIX The figures in this section are mainly based on GAAP (IFRS) stated on a financial reporting basis and are provided as additional information. © 2020 Renesas Electronics Corporation. All rights reserved. Page 13
Slide 14: Sales Revenue and Operating Profit by Segment
Non-GAAP SALES REVENUE AND OPERATING PROFIT BY SEGMENT NON-GAAP BASIS *1*2 FY19/12 FY20/12 (B yen) Q1 Q2 Q3 Q4 Full year Q1 YoY QoQ (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Dec) (Jan-Mar) Revenue 150.3 192.6 183.4 192.0 718.2 178.7 +19.0% -6.9% Automotive 82.7 94.5 93.1 100.8 371.1 93.5 +13.1% -
Slide 15: GAAP (IFRS) / Non-GAAP Reconciliation
GAAP (IFRS) / NON-GAAP RECONCILIATION FY19/12- Non-GAAP Basis: Non-GAAP figures are calculated by adjusting or removing non-recurring items and other adjustments from GAAP figures following a certain set of rules. The Group believe non-GAAP measures provide useful information in understanding and
Slide 16: GAAP (IFRS) / Non-GAAP Reconciliation
GAAP (IFRS) / NON-GAAP*1 RECONCILIATION FY19/12- *2 FY19/12 FY20/12 (B yen) Q1 Q2 Q3 Q4 Q1 Operating Profit (GAAP/After PPA) -1.4 -10.9 8.1 10.4 13.3 Reconciliations in Gross Profit Level +1.9 +10.8 +0.9 -0.2 +2.2 PPA Effects*3 (Amortization of Intangible Assets: SG&A*4) +3.8 +14.2 +13.8 +13.9 +14.2
Slide 17: GAAP (IFRS) / Non-GAAP Reconciliation
GAAP (IFRS) / NON-GAAP*1 RECONCILIATION FY19/12- *2 FY19/12 FY20/12 (B yen) Q1 Q2 Q3 Q4 Q1 Profit attributable to owners of the parent -1.9 -9.1 4.0 0.7 11.3 (GAAP/After PPA*3) Reconciliations in Operating Profit Level +8.5 +38.0 +18.8 +21.0 +20.4 Reconciliations in Net Profit - -3.3 -0.5 -0.2 -1.7
Slide 18: FY19/12 Q4/Full-Year Financial Snapshot
GAAP FY19/12 Q4/FULL-YEAR FINANCIAL SNAPSHOT IFRS GAAP (IFRS) *1 YoY and QoQ results of the Revenue are rounded off to one decimal place. FY19/12 FY20/12 (B yen) Q1 Q1 Q4 (Jan-Mar) YoY QoQ (Jan-Mar) (Oct-Dec) Actual Revenue 150.3 192.0 178.7 +19.0% -6.9% Gross Margin 36.9% 45.2% 46.0% +9.2pts +0.9pt
Slide 19: Balance Sheets
GAAP BALANCE SHEETS IFRS GAAP(IFRS) *1 As of Mar 21, As of Jun 30, As of Sep 30, As of Dec 31, As of Mar 31, (B yen) 2019 2019 2019 2019 2020 Total Assets 1,876.7 1,697.9 1,666.3 1,668.1 1,657.8 *2 Cash and Cash Equivalents 196.7 116.5 124.3 146.5 136.9 *7 129.7 Inventories (Prior to consolidation 1
Slide 20: Capital Expenditures
CAPITAL EXPENDITURES*1*2*3 (B yen) Capital Masks and Tools IDT Sales Ratio 12 5.0% 11 4.4% 10 3.7% 4.0% 9 3.5% 3.2% 8.0 3.3% 3.2% 8 7.6 2.9% 7 6.3 3.0% 5.9 6.1 2.5% 6.1 5.7 6 2.2% 5.3 4.9 5 2.0% 4 3.3 3 1.0% 2 1 0 0.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 forecast FY18/12 FY19/12 FY20/12 *1: The figures ar
Slide 21: Major Announcements from FY2020/12 Q1
MAJOR ANNOUNCEMENTS FROM FY2020/12 Q1 New Products & Solutions Introduced an open-source reference design which enable customers to swiftly design ready-to- assemble boards for medical ventilators Released an infrared contactless thermometer solution that allows precise body temperature measurem
Slide 22: Renesas' Contributions in the Fight Against COVID-19
RENESAS’ CONTRIBUTIONS IN THE FIGHT AGAINST COVID-19 Renesas’ products and solutions are used in equipment to fight against the life-threatening novel coronavirus. Ventilators Pulse-oximeter Contactless thermometers Oxygen inhalers Our open-source reference Renesas’ Pulse-oximeter In response to the
Slide 23: 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 statem