Slide 1: 4Q/Full-Year 2020 Presentation
4Q/FULL-YEAR 2020 PRESENTATION RENESAS ELECTRONICS CORPORATION FEBRUARY 10, 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: 4Q/Full-Year 2020 Financial Snapshot
Non-GAAP 4Q/FULL-YEAR 2020 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. 2019 2020 (B yen) Change 4Q 4Q Change Full Year 4Q Full Year 3Q YoY from Oct (Oct-Dec) (Oct-Dec) YoY QoQ from Oct (Jan-Dec) (Oct-
Slide 5: Quarterly Revenue Trends
Non-GAAP QUARTERLY REVENUE TRENDS IFRS, NON-GAAP*1*2 Automotive Industrial/Infrastructure/IoT Others (B yen) 203.3 187.7 192.6 192.0 191.6 Revenue 200 185.6 5.3 183.4 179.9 4.6 178.7 178.7 YoY: -0.2% 5.2 4.2 3.5 4.4 4.4 166.7 QoQ: +7.2% 5.3 2.6 2.5 150.3 2.5 150 4.2 103.8 Automotive 90.4 94.5 100.8
Slide 6: 4Q 2020 Gross/Operating Margin
Non-GAAP 4Q 2020 GROSS/OPERATING MARGIN IFRS, NON-GAAP*1 Operating Margin vs FCTS ＋0.9pt 3Q 2020 4Q 2020 4Q 2020 Actual Forecast Actual Gross Margin (Jul-Sep 2020) (Oct-Dec 2020) (Oct-Dec 2020) Currency Impact Product Mix Production Recovery Gross Margin Production Costs, etc. vs FCST: +0.0pt 47.5％
Slide 7: Gross/Operating Margin and Opex Trajectory
Non-GAAP GROSS/OPERATING MARGIN AND OPEX TRAJECTORY IFRS, NON-GAAP*1*2 Before reclassification of expenses After reclassification of expenses YoY: +2.0pts YoY: +0.5pt Gross Margin (%) QoQ: -0.5pt R&D Ratio (%) QoQ: +1.1pts 50 20 19.7 17.2 17.4 17.6 17.5 18.1 17.0 46.0 44.8 45.0 45 47.5 47.5 18.5 18.
Slide 8: Inventory
INVENTORY *1 In-house Inventory*2 (Settlement basis) Sales Channel Inventory*3 (Managerial basis) (B yen) (B yen) 150 150 100 100 Automotive Finished Goods 50 50 Industrial, Infrastructure, Work-in IoT -Process 0 0 18/3 18/6 18/9 18/12 19/3 19/6 19/9 19/12 20/3 20/6 20/9 20/12 18/3 18/6 18/9 18/12 1
Slide 9: 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% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2017 2018 2019 2020 © 2021 Renesas Electronics Corporation. All rights reserved. Page 9
Slide 10: 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 (B yen) EBITDA (B yen) Cash flows from investing activities 82 EBITDA Margin 79 70 50% Free cash flows*5 75 67.1 65 61 60 57.1 56.0 57.6 57.3 57.
Slide 11: 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) (B yen) 120.0 Revenue EBITDA GM OM 70% 120.0 Revenue EBITDA GM OM 70% 103.8 102.0 100.8 60% 96.7 60% 100.0 93.6 94.5 93.1 93.5 95.3 100.0 94.3 93.5 90.4 90.8 91.
Slide 12: 1Q 2021 Forecast
Non-GAAP 1Q 2021 FORECAST IFRS, NON-GAAP*1 YoY and QoQ results of the revenue are rounded off to one decimal place. 2020 2021 (B yen) 1Q 1Q 4Q (Jan-Mar) YoY QoQ (Jan-Mar) (Oct-Dec) Forecast 197.0 +10.2% +2.8% Revenue 178.7 191.6 to 205.0 to +14.7% to +7.0% Gross Margin*2 47.3% 47.0% 48.5% +1.2pts +1
Slide 13: 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 13
Slide 14: Revenue and Operating Profit by Segment
Non-GAAP REVENUE AND OPERATING PROFIT BY SEGMENT NON-GAAP BASIS *1*2 2019 2020 (B yen) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Full Year YoY QoQ YoY (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Dec) Revenue 150.3 192.6 183.4 192.0 178.7 166.7 178.7 191.6 -0.2% +7.2% 715.7 -0.
Slide 15: GAAP (IFRS) / Non-GAAP Reconciliation
GAAP (IFRS) / 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 evaluatin
Slide 16: GAAP (IFRS) / Non-GAAP Reconciliation
GAAP (IFRS) / NON-GAAP*1 RECONCILIATION*2 2019 2020 (B yen) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Operating Profit/Loss (GAAP/After PPA) -1.4 -10.9 8.1 10.4 13.3 17.3 17.2 17.3 Reconciliation in Gross Profit Level +1.9 +10.8 +0.9 -0.2 +2.2 +0.1 +0.5 +0.2 PPA Effects*3 (Amortization of Intangible Assets: SG＆A*4) +
Slide 17: GAAP (IFRS) / Non-GAAP Reconciliation
GAAP (IFRS) / NON-GAAP*1 RECONCILIATION*2 2019 2020 (B yen) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Profit/Loss Attributable to Owners of Parent -1.9 -9.1 4.0 0.7 11.3 11.9 15.3 7.2 (GAAP/After PPA*3) Reconciliations in Operating Profit/Loss Level +8.5 +38.0 +18.8 +21.0 +20.4 +13.0 +19.2 +19.8 Reconciliations in Ne
Slide 18: 4Q 2020 Financial Snapshot (GAAP)
GAAP 4Q 2020 FINANCIAL SNAPSHOT IFRS GAAP (IFRS)*1 YoY and QoQ results of the revenue are rounded off to one decimal place. 2019 2020 (B yen) 4Q Full Year 3Q 4Q Full Year YoY QoQ YoY (Oct-Dec) (Jan-Dec) (Jul-Sep) (Oct-Dec) (Jan-Dec) Revenue 192.0 718.2 178.7 191.6 -0.2% +7.2% 715.7 -0.4% Gross Margi
Slide 19: Statement of Financial Position
GAAP STATEMENT OF FINANCIAL POSITION IFRS GAAP (IFRS)*1 (B yen) 19/3 19/6 19/9 19/12 20/3 20/6 20/9 20/12 Total Assets 1,876.7 1,697.9 1,666.3 1,668.1 1,657.8 1,634.5 1,620.4 1,609.0 Cash and Cash Equivalents*2 196.7 116.5 124.3 146.5 136.9 148.5 175.9 219.8 Inventories 129.7 100.8 95.5 90.8 95.7 10
Slide 20: Capital Expenditures
CAPITAL EXPENDITURES*1*2 (B yen) Capital Masks and Tools Sales Ratio 15.0% 15.0 10.0% 8.3% 10.0 7.6 8.0 7.4 5.9 6.1 6.1 6.3 5.3 4.9 4.6 5.0% 5.0 3.9 3.3 3.7% 4.4% 3.2% 3.3% 3.2% 3.5% 3.8% 2.5% 2.9% 2.6% 2.4% 2.2% 0.0 0.0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q Forecast 2018 2019 2020 2021 *1:The fig
Slide 21: Major Announcements from 4Q and Later 2020
MAJOR ANNOUNCEMENTS FROM 4Q AND LATER 2020 New Products and Solutions ▪ Expanded RF portfolio to cover complete signal chain for 5G macro base stations ▪ Launched a new general-purpose 64-bit RZ/G2L, RZ/G2LC and RZ/G2UL MPUs with latest Arm Cortex-A55 for improved AI processing ▪ Unveiled P9418, ind
Slide 22: 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