Slide 1: 2Q 2022 Presentation
2Q 2022 PRESENTATION RENESAS ELECTRONICS CORPORATION JULY 28, 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: 2Q 2022 Financial Snapshot (Non-GAAP)
2Q 2022 FINANCIAL SNAPSHOT NON-GAAP 2021 2022 (B yen) 2Q 2Q Change 1H Change 2Q 1H 1Q (Apr-Jun) (Apr-Jun) YoY QoQ from Apr 27 (Jan-Jun) YoY from Apr 27 (Apr-Jun) (Jan-Jun) (Jan-Mar) Forecast Actual FCT*1 Actual FCT*1 375.0 Revenue 217.9 421.6 346.7 377.1 +73.1% +8.8% +0.6% 723.8 +71.7% +0.3% (±4.0)
Slide 5: Quarterly Revenue Trends
QUARTERLY REVENUE TRENDS NON-GAAP (B yen) 377.1 Revenue 400 Automotive Industrial/Infrastructure/IoT Others 2.9 YoY: +73.1% 346.7 QoQ: +8.8% 350 3.0 314.4 3.3 300 163.8 Automotive 258.4 4.5 153.9 YoY: +54.3% 250 217.9 131.6 QoQ: +6.4% 203.7 4.9 191.6 178.7 178.7 3.5 3.8 200 166.7 121.3 2.6 2.5 2.5 1
Slide 6: 2Q 2022 Revenue and Gross/Operating Margin
2Q 2022 REVENUE AND GROSS/OPERATING MARGIN NON-GAAP Operating Margin vs FCT +2.0pts Industrial / Automotive Infrastructure / Company Total Revenue IoT Gross Margin vs FCT: +1.1pts Currency Impact Product Mix 163.8 B yen 210.4 B yen 377.1 B yen Production Recovery Revenue Production Costs, etc. vs FC
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) 150 18 150 12 240 Including Dialog 12 Including Celeno 100 12 100 8 160 8 WOI
Slide 9: Inventory Analysis
INVENTORY ANALYSIS In-House Inventory Sales Channel Inventory＿ 2Q 3Q Outlook 2Q 3Q Outlook Raw • Forex impact Materials • Inventory valuation • Inventory valuation update update • Increased demand • Product-mix mismatch • Maintenance of appropriate • BCM response • Continuous BCM • Unit price impact
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 2Q 2020 2021 2022 *1: Utilization rates are calculated by excluding the 6-inch line capacity of the Shiga Factory (
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 138.7 140 Cash flows from investing activities EBITDA margin 180 50% Free cash flows*2 165.2 120 111.2 155.2 150 100 89.6 40% 82.4 114.2 119.4 80 73.4 75.6 95.3 120 64.9
Slide 12: 3Q 2022 Forecast
3Q 2022 FORECAST NON-GAAP 2021 2022 3Q (B yen) (Jul-Sep) 9 months 3Q 9 months 2Q Midpoint YoY QoQ (Jan-Sep) YoY (Jul-Sep) (Jan-Sep) (Apr-Jun) Forecast Forecast (Range)*1 384.0 +48.6% +1.8% 1,107.8 +62.9% Revenue 258.4 680.0 377.1 (±4.0) (±1.5pts) (±1.1pts) (±4.0) (±0.6pt) Gross Margin 55.2% 52.7% 58
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. © 2022 Renesas Electronics Corporation. All rights reserved. Page 13
Slide 14: 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 2Q YoY QoQ (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Dec) (Jan-Mar) (Apr-Jun) Revenue 203.7 217.9 258.4 314.4 994.4 346.7 377.1 +73.1% +8.8% Automotive 103.2 106.1 121.3 131.6 462.3 153.9 163.8 +54.3% +6.4% In
Slide 15: 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 2Q YoY QoQ (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Dec) (Jan-Mar) (Apr-Jun) Operating Profit 52.6 61.4 83.9 98.7 296.6 135.5 145.3 +83.9 +9.8 (Margin) (25.8%) (28.2%) (32.5%) (31.4%) (29.8%) (39.1%) (38
Slide 16: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION GAAP (B yen) 21/3 21/6 21/9 21/12 22/3 22/6 Total Assets 1,688.1 1,942.7 2,354.1 2,426.3 2,598.7 2,840.3 Cash and Cash Equivalents*1 243.6 504.8 223.0 221.9 267.2 247.9 Inventories 86.6 94.4 135.0 137.8 155.5 173.3 Goodwill 631.6 630.9 1,044.0 1,089.5 1,159.3 1,294.6
Slide 17: GAAP / Non-GAAP Reconciliation
GAAP / NON-GAAP RECONCILIATION*1 2022 Full-Year 2021 (Jan-Dec) 2Q (Apr-Jun) 2Q (Apr-Jun) (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 113.3 61.4 45.8 80.6 528.9 296.6 222.2 375.4 220.9
Slide 18: 2Q 2022 Consolidated Operating Profit Bridge from Non-GAAP to GAAP
2Q 2022 CONSOLIDATED OPERATING PROFIT BRIDGE FROM NON-GAAP TO GAAP （B yen） Former-Intersil 145.3 Former-IDT 150 PPA Effects PPA Effects Former-Dialog PPA Effects Former-Celeno Stock-Based PPA Effects Compensation Others 110.2 100 Recurring Items Non-Recurring Items 50 0 Non-GAAP GAAP © 2022 Renesas
Slide 19: 2Q 2022 Financial Snapshot (GAAP)
2Q 2022 FINANCIAL SNAPSHOT GAAP 2021 2022 (B yen) 2Q 1H 1Q 2Q 1H YoY QoQ YoY (Apr-Jun) (Jan-Jun) (Jan-Mar) (Apr-Jun) (Jan-Jun) Revenue*1 217.9 421.6 346.3 376.6 +72.9% +8.8% 722.9 +71.5% Gross Margin 48.2% 48.1% 57.1% 57.9% +9.7pts +0.7pt 57.5% +9.4pts Operating Profit 35.5 65.7 99.8 110.2 +74.7 +10
Slide 20: Capital Expenditures
CAPITAL EXPENDITURES*1*2 （B yen） 150 60 16.3% 40% Capital Masks and Tools Sales Ratio Excluding 50 Kofu Factory Fire*3 Recovery Response Investment to restart Kofu Fab operation 39.4% 30% 40 Investments eligible for subsidies from METI*4 30 20% 20 13.8% 10% 10.3% 10 8.2% 9.2% 5.2% 6.2% 3.5% 2.4% 2.6
Slide 21: Major Topics During 2Q 2022
MAJOR TOPICS DURING 2Q 2022 Restart Operation of Kofu Factory Investment in Arduino ▪ Location: Kofu Factory (Yamanashi Prefecture) ▪ Overview: - Investment in Arduino, a popular open-source hardware/software ▪ Investment Amount: 90.0 B yen company, for its new round of series B funding ▪ Size of Cl
Slide 22: Impact of Earthquake and Voltage Drop at Kawashiri Factory
IMPACT OF EARTHQUAKE IN THE COAST OF FUKUSHIMA AND INSTANTANEOUS VOLTAGE DROP AT KAWASHIRI FACTORY ▪ Overview of the impact caused to the Renesas Group factories − Earthquake in the Coast of Fukushima: 4 fabrication lines at the following three factories temporarily halted production due to temporar
Slide 23: 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