Slide 1: 1Q 2022 Presentation
1Q 2022 PRESENTATION RENESAS ELECTRONICS CORPORATION APRIL 27, 2022 © 2022 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: 1Q 2022 Financial Snapshot (Non-GAAP)
1Q 2022 FINANCIAL SNAPSHOT NON-GAAP 2021 2022 (B yen) 1Q 1Q 1Q 4Q Change from (Jan-Mar) (Jan-Mar) YoY QoQ (Jan-Mar) (Oct-Dec) Feb 9 FCT*1 Forecast Actual 336.0 Revenue 203.7 314.4 346.7 +70.2% +10.3% +3.2% (±4.0) Gross Margin 50.2% 54.3% 55.5% 58.4% +8.2pts +4.1pts +2.8pts Operating Profit 52.6 98.7
Slide 5: Quarterly Revenue Trends
QUARTERLY REVENUE TRENDS Revenue (B yen) Automotive Industrial/Infrastructure/IoT Others 346.7 YoY: +70.2% 350 3.0 QoQ: +10.3% 314.4 3.3 300 258.4 4.5 Automotive 153.9 250 217.9 131.6 YoY: +49.0% 191.6 203.7 QoQ: +16.9% 4.9 178.7 166.7 178.7 3.8 200 3.5 121.3 2.6 2.5 2.5 106.1 150 103.2 79.6 95.3 In
Slide 6: 1Q 2022 Revenue and Gross/Operating Margin
1Q 2022 REVENUE AND GROSS/OPERATING MARGIN NON-GAAP ｖ Operating Margin vs FCT + 4.6pts Industrial / Automotive Infrastructure / Company Total Revenue IoT Gross Margin vs FCT: +2.8pts Currency Impact Product Mix 153.9 B yen 189.8 B yen 346.7 B yen Production Recovery Revenue Production Costs, etc. vs
Slide 7: In-House Inventory and DOI
IN-HOUSE INVENTORY (FINANCIAL ACCOUNTING BASIS) AND DOI*1*2 Automotive Industrial/Infrastructure/IoT Company Total Inventory Target DOI DOI Inventory DOI Inventory DOI (B yen) (Days) (B yen) (Days) (B yen) (Days) 100 120 100 120 200 Including Dialog 120 Including Celeno 75 75 150 DOI 80 80 80 50 50
Slide 8: Sales Channel Inventory and WOI
SALES CHANNEL INVENTORY*1 (MANAGEMENT ACCOUNTING BASIS) AND WOI*2 Automotive Industrial/Infrastructure/IoT Company Total Inventory Target WOI WOI Inventory WOI Inventory WOI (B yen) (Weeks) (B yen) (Weeks) (B yen) (Weeks) Including Dialog 150 18 150 12 240 12 WOI 100 12 100 8 160 8 50 6 50 4 80 4 Li
Slide 9: Inventory Analysis
INVENTORY ANALYSIS In-house Inventory Sales Channel Inventory＿ *Excluding former Celeno inventory 1Q 2Q Outlook 1Q 2Q Outlook • Inventory valuation update • Inventory valuation Raw update • Increased demand Materials • Forex impact • Decline in demand • Continuous following consumption increase in d
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 2020 2021 2022 *1: Utilization rates are calculated by excluding the 6-inch line capacity of the Shiga factory (clo
Slide 11: Non-GAAP EBITDA and GAAP Cash Flows
NON-GAAP EBITDA*1 AND GAAP CASH FLOWS Non-GAAP EBITDA GAAP Cash Flows (B yen) Cash flows from operating activities (B yen) EBITDA 120 Cash flows from investing activities 111.2 EBITDA margin 160 155.2 50% Free cash flows*2 100 89.6 82.4 119.4 80 73.4 75.6 95.3 40% 120 64.9 103.6 60 72.3 47.3 47.9 62
Slide 12: 2Q 2022 Forecast
2Q 2022 FORECAST NON-GAAP 2021 2022 2Q (B yen) (Apr-Jun) 1H 2Q 1H 1Q Midpoint YoY QoQ (Jan-Jun) YoY (Apr-Jun) (Jan-Jun) (Jan-Mar) Forecast Forecast (Range)*1 375.0 +72.1% +8.2% 721.7 +71.2% Revenue 217.9 421.6 346.7 ±4.0 (±1.8pts) (±1.2pts) (±4.0) (±0.9pt) Gross Margin 52.0% 51.1% 58.4% 57.5% +5.5pt
Slide 13: Earthquake Impact
EARTHQUAKE IMPACT*1 ▪ Status of the Renesas Group factories − Four fabrication lines at the following three factories temporarily halted production immediately after the earthquake due to temporary blackouts, etc. Naka factory (front-end), Takasaki factory (front-end), Yonezawa factory (back-end) −
Slide 14: Acquisition and Tender Offer of Own Shares
ACQUISITION AND TENDER OFFER OF OWN SHARES Summary of acquisition of own shares As of end of After acquisition December 2021 of own shares*3 Total number of shares to be purchased: 168,067,226 shares of common stock (maximum) Free float ratio*1 （Equivalent to 8.65% of the total number of issued shar
Slide 15: 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. © 2022 Renesas Electronics Corporation. All rights reserved. Page 15
Slide 16: Revenue and Gross Profit by Segment
REVENUE AND GROSS PROFIT BY SEGMENT NON-GAAP 2021 2022 (B yen) 1Q 2Q 3Q 4Q Full-Year 1Q YoY QoQ (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Dec) (Jan-Mar) Revenue 203.7 217.9 258.4 314.4 994.4 346.7 +70.2% +10.3% Automotive 103.2 106.1 121.3 131.6 462.3 153.9 +49.0% +16.9% Industrial, 96.6 106.9 13
Slide 17: Operating Profit and EBITDA by Segment
OPERATING PROFIT AND EBITDA*1 BY SEGMENT NON-GAAP 2021 2022 (B yen) 1Q 2Q 3Q 4Q Full Year 1Q YoY QoQ (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Dec) (Jan-Mar) Operating Profit 52.6 61.4 83.9 98.7 296.6 135.5 +82.9 +36.8 (Margin) (25.8%) (28.2%) (32.5%) (31.4%) (29.8%) (39.1%) (+13.2pts) (+7.7pts)
Slide 18: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION GAAP (B yen) 21/3 21/6 21/9 21/12 22/3 Total Assets 1,688.1 1,942.7 2,354.3 2,426.2 2,598.4 Cash and Cash Equivalents*1 243.6 504.8 223.0 221.9 267.2 Inventories 86.6 94.4 135.0 137.9 154.8 Goodwill 631.6 630.9 1,044.3 1,107.8 1,178.8 Intangible Assets 369.7 351.9 526
Slide 19: GAAP / Non-GAAP Reconciliation
GAAP / NON-GAAP RECONCILIATION 2022 Full-Year 2021 (Jan-Dec) 1Q (Jan-Mar) 1Q (Jan-Mar) (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 102.2 52.6 32.6 71.8 528.9 296.6 222.2 375.4 202.3 1
Slide 20: 1Q 2022 Consolidated Operating Profit Bridge, Non-GAAP to GAAP
1Q 2022 CONSOLIDATED OPERATING PROFIT BRIDGE FROM NON-GAAP TO GAAP Goodwill after PPA implementation （B yen） 150 Forex impact Intangible Former-Intersil assets & others 135.5 Former-IDT PPA Effects PPA Effects Former-Dialog PPA Effects Stock-Based Compensation Others Dialog 100.1 100 Recurring Items
Slide 21: 1Q 2022 Financial Snapshot (GAAP)
1Q 2022 FINANCIAL SNAPSHOT GAAP 2021 2022 (B yen) 1Q 4Q 1Q YoY QoQ (Jan-Mar) (Oct-Dec) (Jan-Mar) Revenue 203.7 314.4 346.7 +70.2% +10.3% Gross Margin 48.0% 50.5% 56.9% +9.0pts +6.4pts Operating Profit 30.2 57.1 100.1 +69.9 +43.0 (Margin) (14.8%) (18.2%) (28.9%) (+14.0pts) (+10.7pts) Profit Attributa
Slide 22: Capital Expenditures
CAPITAL EXPENDITURES*1*2 （B yen） Capital Masks and Tools Sales Ratio 40 30% Fire*3 Recovery Response 25% 30 20% 20 15% 13.8% 10% 10.3% 10 9.2% 8.2% 11.2 5% 5.2% 3.8% 6.8 3.5% 2.4% 2.6% 0.8 0 0.2 0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q*4 2Q Forecast 2020 2021 2022 *1: The figures represent the investment decis
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 stateme