Slide 1: 3Q 2021 Presentation
3Q 2021 PRESENTATION RENESAS ELECTRONICS CORPORATION OCTOBER 28, 2021 © 2021 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. The Group defines the Non-GAAP consolidated financial results as financial accounting figures (her
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 the International Financial Reporting Standards (“IFRS
Slide 4: 3Q 2021 Financial Snapshot (Non-GAAP)
3Q 2021 FINANCIAL SNAPSHOT NON-GAAP*1 YoY and QoQ revenue as well as the changes from FCTs of the revenue are rounded off to one decimal place. 2020 2021 (B yen) 3Q 3Q Change 9 months Change 3Q 9 months 2Q (Jul-Sep) (Jul-Sep) YoY QoQ from (Jan-Sep) YoY from (Jul-Sep) (Jan-Sep) (Apr-Jun) Forecast Act
Slide 5: 3Q 2021 Financial Snapshot (Excluding Dialog Revenue)
3Q 2021 FINANCIAL SNAPSHOT NON-GAAP*1 (REFERENCE: EXCLUDING DIALOG REVENUE) YoY and QoQ revenue as well as the changes from FCTs of the revenue are rounded off to one decimal place. 2020 2021 (B yen) 3Q 3Q Change 9 months Change 3Q 9 months 2Q (Jul-Sep) (Jul-Sep) YoY QoQ from (Jan-Sep) YoY from (Jul
Slide 6: Quarterly Revenue Trends
QUARTERLY REVENUE *1 TRENDS Automotive Industrial/Infrastructure/IoT Others (B yen) 258.4 4.5 Revenue 250 217.9 YoY: +44.6% 203.7 QoQ: +18.6% 192.6 192.0 4.9 183.4 191.6 200 178.7 178.7 3.8 4.6 4.2 166.7 3.5 121.3 4.4 2.6 2.5 150.3 2.5 Automotive 106.1 150 4.2 103.2 YoY: +52.5% 94.5 100.8 79.6 95.3
Slide 7: 3Q 2021 Revenue and Gross/Operating Margin
3Q 2021 REVENUE AND GROSS/OPERATING MARGIN NON-GAAP*1 2Q 2021 3Q 2021 3Q 2021 Operating Margin vs FCTS + 3.5pts Actual Forecast Actual Revenue (Apr-Jun 2021) (Jul-Sep 2021) (Jul-Sep 2021) Gross Margin Revenue Currency Impact vs FCST: +7.7% 217.9 B yen 240.0 B yen 258.4 B yen Product Mix QoQ: +18.6%
Slide 8: In-House Inventory and DOI
IN-HOUSE INVENTORY (FINANCIAL ACCOUNTING BASIS) AND DOI*1 Automotive Industrial/Infrastructure/IoT Company Total Inventory Target DOI DOI Inventory DOI Inventory DOI (B yen) (Days) (B yen) (Days) (B yen) (Days) 100 150 100 150 200 150 DOI 75 75 150 100 100 100 50 50 100 Work-In-Process Dialog 50 50
Slide 9: 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) 150 18.0 150 18.0 200 12.0 WOI 150 9.0 100 12.0 100 12.0 100 6.0 50 6.0 50 6.0
Slide 10: Inventory Analysis
INVENTORY ANALYSIS In-house Inventory Sales Channel Inventory *Excluding Dialog inventory 3Q 4Q Outlook 3Q 4Q Outlook • Start of consolidation • Seasonality • Increased demand Dialog (MCU, SoC, MID, etc.) • Change in distribution • Continuous (Direct → Channel) increase in demand Raw • Advanced purc
Slide 11: 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% 80% 60% 40% 20% 0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2019 2020 2021 *1 The total unitization rate as of 1QFY21 is calculated by excluding the utilization rate of the Shiga factory, which
Slide 12: Non-GAAP EBITDA and GAAP Cash Flows
NON-GAAP*1 EBITDA*2*3 AND GAAP CASH FLOWS Non-GAAP EBITDA GAAP Cash Flows (B yen) Cash flows from operating activities (B yen) EBITDA Cash flows from investing activities 120 EBITDA margin 50% Free cash flows*4 82.4 79.2 73.4 75.6 103.6 75 72.3 67.1 64.9 100 40% 60 54.4 54.6 80.6 47.8 47.9 47.3 38.2
Slide 13: 3Q 2021 Financial Results by Main Segment
3Q 2021 FINANCIAL RESULTS BY MAIN SEGMENT NON-GAAP*1 Industrial/Infrastructure/IoT Automotive Business Company Total Business Revenue 121.3 B yen 132.6 B yen 258.4 B yen (QoQ) (+14.3%) (+24.1%) (+18.6%) Gross Margin 49.2％ 62.1％ 55.2% (QoQ) (+5.4pts) (+0.4pt) (+3.2pts) Operating Margin 29.2% 35.8% 32
Slide 14: 4Q and Full Year 2021 Forecast
4Q AND FULL YEAR 2021 FORECAST NON-GAAP*1 YoY and QoQ results of the revenue are rounded off to one decimal place. 2020 2021 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) 298.0 +55.5% +15.3% 978.0 +36.7% Revenue
Slide 15: 4Q 2021 Revenue and Demand Forecasts
4Q 2021 REVENUE AND DEMAND FORECASTS Industrial/Infrastructure/IoT Automotive Business Company Total Business Revenue QoQ ＋ ＋＋ +15.3% ＋＋ (Sell-in) Forecast YoY ＋＋ ＋＋ +55.5% ＋＋ Customer Demand QoQ ＋＋ ＋＋ ＋＋ ＋＋ ＋＋ ＋＋ (Sell-through) Outlook YoY © 2021 Renesas Electronics Corporation. All rights reserved
Slide 16: Order Situation
ORDER SITUATION Order Backlog*1*2 (Management Accounting Basis) Demand Outlook Enhancement (B yen) Automotive Company Total 400 Advanced POs 300 (through 2022) （B yen） 200 1,200 BTO 100 0 1,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2019 | 2020 | 2021 800 Supply Outlook Enhancement (B yen) Industrial/Infr
Slide 17: (Ref) Dialog Quarterly Revenue Trends
(REF) DIALOG QUARTERLY REVENUE TRENDS ($m) Others The largest customer Licensed main PMIC 450 439 400 386 366 361 350 302 318 300 248 250 200 150 100 50 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Forecast 2020 2021 © 2021 Renesas Electronics Corporation. All rights reserved. Page 17
Slide 18: 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. © 2021 Renesas Electronics Corporation. All rights reserved. Page 18
Slide 19: Revenue and Gross Profit by Segment
REVENUE AND GROSS PROFIT BY SEGMENT NON-GAAP*1 2020 2021 (B yen) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 months YoY QoQ YoY (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) (Jan-Sep) Revenue 178.7 166.7 178.7 191.6 203.7 217.9 258.4 +44.6% +18.6% 680.0 +29.7% Automotive 93.5 72.6 79.6 95.3 103.2
Slide 20: Operating Profit and EBITDA by Segment
OPERATING PROFIT AND EBITDA*1 BY SEGMENT NON-GAAP*2 2020 2021 (B yen) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 9 months YoY QoQ YoY (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) (Jan-Sep) Operating Profit/Loss 33.7 30.2 36.5 37.2 52.6 61.4 83.9 +47.4 +22.5 197.9 +97.5 (Margin) (18.8%) (18.1%) (2
Slide 21: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION GAAP (B yen) 20/3 20/6 20/9 20/12 21/3 21/6 21/9 Total Assets 1,657.8 1,634.5 1,620.4 1,609.0 1,688.1 1,942.7 2,328.0 Cash and Cash Equivalents*1 136.9 148.5 175.9 219.8 243.6 504.8 223.0 Inventories 95.7 101.8 96.9 89.8 86.6 94.4 135.2 Goodwill 620.9 614.6 603.6 590.
Slide 22: GAAP / Non-GAAP Reconciliation
GAAP / NON-GAAP RECONCILIATION ▪ 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 evaluating the G
Slide 23: GAAP / Non-GAAP Reconciliation
GAAP / NON-GAAP*1 RECONCILIATION 2020 2021 (B yen) 1Q 2Q 3Q 4Q 1Q 2Q 3Q Operating Profit/Loss (GAAP/After PPA) 13.3 17.3 17.2 17.3 30.2 35.5 53.8 Reconciliation in Gross Profit Level +2.2 +0.1 +0.5 +0.2 +4.5 +8.3 +7.7 PPA Effects*2 (Amortization of Intangible Assets: SG&A*3) +14.2 +13.2 +13.2 +13.0
Slide 24: GAAP / Non-GAAP Reconciliation
GAAP / NON-GAAP*1 RECONCILIATION 2020 2021 (B yen) 1Q 2Q 3Q 4Q 1Q 2Q 3Q Profit/Loss Attributable to Owners of Parent 11.3 11.9 15.3 7.2 13.7 24.0 37.8 (GAAP/After PPA*2) Reconciliations in Operating Profit/Loss Level +20.4 +13.0 +19.2 +19.8 +22.4 +25.9 +30.0 Reconciliations in Net Profit/Loss -1.7 -
Slide 25: 3Q 2021 Financial Snapshot (GAAP)
3Q 2021 FINANCIAL SNAPSHOT GAAP YoY and QoQ results of the revenue are rounded off to one decimal place. 2020 2021 (B yen) 3Q 9 months 2Q 3Q 9 months YoY QoQ YoY (Jul-Sep) (Jan-Sep) (Apr-Jun) (Jul-Sep) (Jan-Sep) Revenue 178.7 524.1 217.9 258.4 +44.6% +18.6% 680.0 +29.7% Gross Margin 47.2% 46.9% 48.2
Slide 26: Capital Expenditures
CAPITAL EXPENDITURES*1*2 (B yen) Capital Masks and Tools Sales Ratio *3 Fire Recovery Response 40.0 30.0% 30.0 28.1 20.0% 22.5 21.2 20.0 10.3% 13.8% 8.2% 10.0% 10.0 7.4 6.1 6.3 11.2 4.9 5.3 4.6 3.3 3.9 6.8 2.2% 2.5% 2.9% 3.2% 3.5% 2.4% 2.6% 3.8% 0.8 0.0 0.0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Forec
Slide 27: Major Announcements from 3Q
MAJOR ANNOUNCEMENTS FROM 3Q New Products and Solutions, Adaptations and Design-ins ▪ Renesas’ R-Car SoCs adopted in Toyota’s next-generation multimedia system for LEXUS NX ▪ Unveiled an Automotive Gateway Solution based on new R-Car S4 SoCs and best-in-class PMICs for next-generation vehicle compute
Slide 28: Acquisition of Celeno
ACQUISITION OF CELENO Overview of Celeno Rationale Development and sale of Wi-Fi Expand Connectivity Portfolio Business chipsets and other connectivity devices ▪ Build on expanded connectivity portfolio following the Dialog acquisition with the addition of Celeno’s industry’s smallest Wi-Fi 6/6E 201
Slide 29: 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