Renesas Electronics Corporation · TSE:6723

Renesas Electronics — Merger or Acquisition (February 2021)

19 slides from Renesas Electronics's merger presentation, Feb 8, 2021

1. Slide 1: Renesas and Dialog Join Forces

   RENESAS AND DIALOG JOIN FORCES POWERING THE CONNECTED FUTURE FEBRUARY 8, 2021 © 2021 Renesas Electronics Corporation. All rights reserved.

2. Slide 2: Disclaimer

   DISCLAIMER NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION (A “RESTRICTED JURISDICTION”). No offer or solicitation This pre

3. Slide 3: Transaction Summary

   TRANSACTION SUMMARY • Equity value of EUR 4.9 billion Transaction - EUR 67.5 per share in all-cash Consideration - Premium of approximately 32.6% to Dialog’s 1-month VWAP from Feb 5th, 2021(1) • Enterprise value of EUR 4.5 billion (2) • Bridge facility up to JPY 735 billion yen Source of • Cash on h

4. Slide 4: Dialog At-a-Glance

   DIALOG AT-A-GLANCE Revenue Breakdown (FY2019)(1) • Founded: 1981 By Category By Region Others Connectivity Industrial IoT Europe 0% 2% 0.4% • Employees: Approximately 2,300 employees worldwide & Audio 13% USA 11% • Headquarters: Reading, United Kingdom Advanced Mixed Signal 18% Custom Mixed Signal 6

5. Slide 5: Product Overview

   PRODUCT OVERVIEW Custom Mixed Signal Advanced Mixed Signal Connectivity & Audio Industrial Mixed Signal  Power management IC  Configurable mixed-signal IC  Bluetooth low energy IC  IO-Link Key  Low power PMIC (CMIC)  Low power Wi-Fi  ASIC Product  Battery management  AC/DC power conversion

6. Slide 6: Consistent M&A Strategy Execution

   CONSISTENT M&A STRATEGY EXECUTION Analog / MSIG Talent Application 2016 2018 2021 © 2021 Renesas Electronics Corporation. All rights reserved. Page 6

7. Slide 7: Combination Overview

   COMBINATION OVERVIEW ENHANCED OFFERINGS WITH DIALOG’S PRODUCTS / TECHNOLOGIES AUTOMOTIVE INDUSTRIAL, INFRASTRUCTURE & IOT Compute Infrastructure Aerospace Industrial Military/ SoC CMIC IoT MCU I/O Link NOR Flash Software/Tool PMIC SoC/MPU ULP BLE CMIC MCU Winning Combo WiFi WiFi Connectivity xEV/Pow

8. Slide 8: Better-Balanced Portfolios

   BETTER-BALANCED PORTFOLIOS (1) (2) 2% 3% 7% MCU 8% By Product SoC 39% Analog 31% 46% 42% Power 12% 11% Others 2% 2% 11% Automotive 13% By Market Industrial 18% 48% 41% IoT 30% Infrastructure 19% Others 16% (1) FY2020/9 LTM (2) FY2020/9 LTM and Renesas Internal Analysis © 2021 Renesas Electronics Cor

9. Slide 9: Expanded R&D Talent Pools Across Geographies

   EXPANDED R&D TALENT POOLS ACROSS GEOGRAPHIES Balanced and augmented R&D capital to seamlessly serve global customers R&D Headcount Japan Americas EMEA APAC 21% ~7,400 8% 56% 15% 24% 3% 20% ~1,800 54% 21% ~9,200 46% 16% 16% © 2021 Renesas Electronics Corporation. All rights reserved. Page 9

10. Slide 10: Compelling Financial Benefits

    COMPELLING FINANCIAL BENEFITS (2) (3) (4) (Non-GAAP) Revenue(1) JPY 716bn JPY 138bn JPY 854bn (USD 6,820M) (USD 1,318M) (USD 8,138M) EBITDA(1) JPY222bn JPY 36bn JPY 257bn (USD 2,112M) (USD 338M) (USD 2,451M) Gross Margin 46.8% 50.5% 47.4% Operating Margin 18.4% 21.1% 18.8% Source: Company Filings (1

11. Slide 11: Expected Synergies with Dialog

    EXPECTED SYNERGIES WITH DIALOG Successful integrations of past acquisitions have laid a solid foundation for synergies with Dialog Expected cost synergy (1) Expected revenue-driven synergy (2) SG&A Approximately USD 200m by: • Elimination of public company expenses • Reduction of outsourcing spend C

12. Slide 12: Our Track Record – Cost Synergies

    OUR TRACK RECORD – COST SYNERGIES Synergy with Intersil (1) Synergy with IDT (1) ($m) ($m) 100 100 0 0 2017 2018 2019 2020 2019 2020 Plan Actual Plan Actual (1) As of Dec 31, 2020 Gross savings on an annual run rate basis, in $m © 2021 Renesas Electronics Corporation. All rights reserved. Page 12

13. Slide 13: Our Track Record – Revenue Synergies

    OUR TRACK RECORD – REVENUE SYNERGIES Strategy Solution 2019 Actual 2020 Actual Boost sales Winning LTV of LTV of Deeper per customer combinations $ 129m $ 1,070m Broader Win new New customer 11,802 new 35,366 new customers acquisition customers customers © 2021 Renesas Electronics Corporation. All r

14. Slide 14: Financing Plan

    FINANCING PLAN  Bridge facility of JPY 735 billion by MUFG Bank and Mizuho Pro-forma EPS (Non-GAAP) Bank  Cash on hand and capital raised by new equity issuance to Synergies Other expenses constitute part of permanent financing Dilution  Shelf registration statement for equity issuance filed Shel

15. Slide 15: Leverage

    LEVERAGE Rapid Deleverage Net Debt / EBITDA(1) Solid cash flow for quick deleveraging Equity 3.5 x finance Target Net Debt / EBITDA FCF of 1.0x in mid-term 1.0x Equity issuance for maintaining investment grade ratings e/o FY21 2+ years (1) Pro-forma leverage of the combined company, Non GAAP EBITDA

16. Slide 16: Transaction Milestones

    TRANSACTION MILESTONES  Approval by Dialog’s shareholders  Regulatory clearance (including anti-trust in relevant regions)  UK court hearing and sanction  Closing by end of 2021  Permanent financing © 2021 Renesas Electronics Corporation. All rights reserved. Page 16

17. Slide 17: Key Takeaways

    KEY TAKEAWAYS Consistent acquisition strategy to expand analog / mixed signal technologies Complementary product offerings and go-to-market approaches make combination readily synergistic Better distribution in product portfolio and in market exposure Talent reinforcement across geographies to make

18. Slide 18: Page 18

    © 2018 2021 Renesas Electronics Corporation. All rights reserved. Page 18

19. Slide 19: Renesas.com

    Renesas.com © 2021 Renesas Electronics Corporation. All rights reserved.

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