Slide 1: 2Q 2021 Presentation
2Q 2021 PRESENTATION RENESAS ELECTRONICS CORPORATION JULY 29, 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: 2Q 2021 Financial Snapshot
2Q 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) 2Q 2Q Change 1H Change 2Q 1H 1Q (Apr-Jun) (Apr-Jun) YoY QoQ from Apr (Jan-Jun) YoY from Apr (Apr-Jun) (Jan-Jun) (Jan-Mar) Forecast Actual
Slide 5: Quarterly Revenue Trends
QUARTERLY REVENUE *1 TRENDS Automotive Industrial/Infrastructure/IoT Others (B yen) 217.9 203.7 4.9 192.6 191.6 Revenue 183.4 192.0 3.8 200 178.7 178.7 YoY: +30.7% 4.6 4.2 3.5 4.4 166.7 QoQ: +7.0% 2.6 2.5 150.3 2.5 106.1 150 4.2 103.2 94.5 95.3 Automotive 93.1 100.8 79.6 93.5 72.6 YoY: +46.1% QoQ: +
Slide 6: 2Q 2021 Revenue and Gross/Operating Margin
2Q 2021 REVENUE AND GROSS/OPERATING MARGIN NON-GAAP*1 1Q 2021 2Q 2021 2Q 2021 Operating Margin vs FCTS + 4.7pts Actual Forecast Actual Revenue (Jan-Mar 2021) (Apr-Jun 2021) (Apr-Jun 2021) Gross Margin Revenue Currency Impact vs FCST: +6.8% 203.7 B yen 204.0 B yen 217.9 B yen Product Mix QoQ: +7.0% (
Slide 7: In-House Inventory and DOI
IN-HOUSE INVENTORY (FINANCIAL ACCOUNTING BASIS) AND DOI*1 Automotive Industrial/Infrastructure/IoT Company Total Inventory 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 Raw Materials 50 50 50 Work-In-Process 2
Slide 8: Sales Channel Inventory and WOI
SALES CHANNEL INVENTORY*1 (MANAGEMENT ACCOUNTING BASIS) AND WOI*2 Automotive Industrial/Infrastructure/IoT Company Total Inventory 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 50 3.0 Liq
Slide 9: 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 2019 2020 2021 *1 The total unitization rate as of 1QFY21 is calculated by excluding the utilization rate of the Shiga factory, which is
Slide 10: 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 82.4 *4 EBITDA margin 80.6 50% Free cash flows 79.2 73.4 80 75 72.3 67.1 64.9 71.8 70 40% 60 54.4 54.6 47.8 47.9 47.3 62.5 60 56.
Slide 11: 2Q 2021 Financial Results by Main Segment
2Q 2021 FINANCIAL RESULTS BY MAIN SEGMENT NON-GAAP*1 Industrial/Infrastructure/IoT Automotive Business Company Total Business Revenue 106.1 B yen 106.9 B yen 217.9 B yen (QoQ) (+2.8%) (+10.6%) (+7.0%) Gross Margin 43.8％ 61.8％ 52.0% (QoQ) (+1.4pts) (+2.0pts) (+1.8pts) Operating Margin 23.6% 32.4% 28.
Slide 12: 3Q 2021 Forecast
3Q 2021 FORECAST NON-GAAP*1 YoY and QoQ results of the revenue are rounded off to one decimal place. 2020 2021 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) 240.0 +34.3% +10.2% 661.6 +26.2% Revenue 178.7 524.1 217.
Slide 13: 3Q 2021 Revenue and Demand Forecasts
3Q 2021 REVENUE AND DEMAND FORECASTS Industrial/Infrastructure/IoT Automotive Business Company Total Business Revenue QoQ ＋＋ ＋ +10.2% ＋＋ (Sell-in) Forecast YoY ＋＋ ＋＋ +34.3% ＋＋ Customer Demand QoQ ＋＋ ＋＋ ＋＋ ＋＋ ＋＋ ＋＋ (Sell-through) Outlook YoY © 2021 Renesas Electronics Corporation. All rights reserved
Slide 14: 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） 200 800 BTO 100 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 600 2019 | 2020 | 2021 Supply Outlook Enhancement (B yen) Industrial/Infrastructure/
Slide 15: Fire Impact
FIRE *1 IMPACT 2021 N3 Building of Naka Factory Production Recovery Status 1Q 2Q 2Q Overview (Jan- (Apr- (Apr- Production Mar) Jun) Jun) Actual Forecast Actual Target Gross Impact ー -23.0 -18.7 Shipment reduction 0.5 month worth Inventory shipment, alternative production, Pre-fire Recovery ー +6.0 +6
Slide 16: Public Offering
PUBLIC OFFERING Public Offering Summary Before the Rating Determination Date of Terms: June 9, 2021 acquisition After the After the public announcement announcement offering Number of New Shares to be Issued*1: 194,320,400 shares (Dilution Rate 10.1%) S&P BBB- negative BBB- Credit BBB- stable Watch
Slide 17: 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 17
Slide 18: Revenue and Gross Profit by Segment
REVENUE AND GROSS PROFIT BY SEGMENT NON-GAAP*1 2020 2021 (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 178.7 166.7 178.7 191.6 715.7 203.7 217.9 +30.7% +7.0% Automotive 93.5 72.6 79.6 95.3 341.0 103.2 106.1 +46.1% +2.8% Indu
Slide 19: Operating Profit and EBITDA by Segment
OPERATING PROFIT AND EBITDA*1 BY SEGMENT NON-GAAP*2 2020 2021 (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/Loss 33.7 30.2 36.5 37.2 137.5 52.6 61.4 +31.2 +8.8 (Margin) (18.8%) (18.1%) (20.4%) (19.4%) (19.2%) (25.8%
Slide 20: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION GAAP (B yen) 20/3 20/6 20/9 20/12 21/3 21/6 Total Assets 1,657.8 1,634.5 1,620.4 1,609.0 1,688.1 1,942.7 Cash and Cash Equivalents*1 136.9 148.5 175.9 219.8 243.6 504.8 Inventories 95.7 101.8 96.9 89.8 86.6 94.4 Goodwill 620.9 614.6 603.6 590.5 631.6 630.9 Intangible
Slide 21: 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 22: GAAP / Non-GAAP Reconciliation
GAAP / NON-GAAP*1 RECONCILIATION 2020 2021 (B yen) 1Q 2Q 3Q 4Q 1Q 2Q Operating Profit/Loss (GAAP/After PPA) 13.3 17.3 17.2 17.3 30.2 35.5 Reconciliation in Gross Profit Level +2.2 +0.1 +0.5 +0.2 +4.5 +8.3 PPA Effects*2 (Amortization of Intangible Assets: SG&A*3) +14.2 +13.2 +13.2 +13.0 +12.9 +13.9 P
Slide 23: GAAP / Non-GAAP Reconciliation
GAAP / NON-GAAP*1 RECONCILIATION 2020 2021 (B yen) 1Q 2Q 3Q 4Q 1Q 2Q Profit/Loss Attributable to Owners of Parent 11.3 11.9 15.3 7.2 13.7 24.0 (GAAP/After PPA*2) Reconciliations in Operating Profit/Loss Level +20.4 +13.0 +19.2 +19.8 +22.4 +25.9 Reconciliations in Net Profit/Loss -1.7 -1.2 -0.9 -2.8
Slide 24: 2Q 2021 Financial Snapshot (GAAP)
2Q 2021 FINANCIAL SNAPSHOT GAAP YoY and QoQ results of the revenue are rounded off to one decimal place. 2020 2021 (B yen) 2Q 1H 1Q 2Q 1H YoY QoQ YoY (Apr-Jun) (Jan-Jun) (Jan-Mar) (Apr-Jun) (Jan-Jun) Revenue 166.7 345.4 203.7 217.9 +30.7% +7.0% 421.6 +22.0% Gross Margin 47.5% 46.7% 48.0% 48.2% +0.7p
Slide 25: 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 20.0 10.3% 13.8% 10.0% 10.0 7.4 6.1 11.2 5.3 6.3 4.6 10.0 3.3 4.9 3.9 6.8 2.2% 2.5% 2.9% 3.2% 3.5% 2.4% 2.6% 3.8% 0.0 0.0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Forecast 2019 202
Slide 26: Major Announcements from 2Q
MAJOR ANNOUNCEMENTS FROM 2Q New Products and Solutions ▪ Launched the RYZ014A LTE CAT-M1 module for massive IoT, based on carrier-proven Monarch technology from Sequans ▪ Launched entry-level RZ/V2L MPUs with best-in-class power efficiency and high- precision AI accelerator ▪ Expanded the FemtoClock
Slide 27: 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