Renesas Electronics Corporation · TSE:6723

Renesas Electronics — Q1 2021 Earnings Presentation

26 slides from Renesas Electronics's earnings presentation, Apr 28, 2021

  1. Slide 1: 1Q 2021 Presentation

    1Q 2021 PRESENTATION RENESAS ELECTRONICS CORPORATION APRIL 28, 2021 © 2021 Renesas Electronics Corporation. All rights reserved.

  2. 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

  3. 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

  4. Slide 4: 1Q 2021 Financial Snapshot

    Non-GAAP 1Q 2021 FINANCIAL SNAPSHOT IFRS, 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) 1Q 1Q 1Q 4Q Change from (Jan-Mar) (Jan-Mar) YoY QoQ (Jan-Mar) (Oct-Dec) Feb 10 FCT*2 Forecast Actual 201.0 Revenue 178.7 19

  5. Slide 5: Quarterly Revenue Trends

    Non-GAAP QUARTERLY REVENUE TRENDS IFRS, NON-GAAP*1 Automotive Industrial/Infrastructure/IoT Others (B yen) 203.7 192.6 192.0 191.6 Revenue 183.4 178.7 178.7 3.8 200 4.2 YoY: +14.0% 4.6 166.7 3.5 4.4 2.6 2.5 QoQ: +6.3% 150.3 2.5 150 4.2 103.2 94.5 95.3 Automotive 93.1 100.8 79.6 93.5 72.6 YoY: +10.4%

  6. Slide 6: 1Q 2021 Revenue and Gross/Operating Margin

    Non-GAAP 1Q 2021 REVENUE AND GROSS/OPERATING MARGIN IFRS, NON-GAAP*1 4Q 2020 1Q 2021 1Q 2021 Operating Margin vs FCTS + 3.8pts Actual Forecast Actual Revenue (Oct-Dec 2020) (Jan-Mar 2021) (Jan-Mar 2021) Gross Margin Revenue Currency Impact vs FCST: +1.3% 191.6 B yen 201.0 B yen 203.7 B yen Product M

  7. Slide 7: In-House Inventory (Earnings Basis) and DOI

    IN-HOUSE INVENTORY (EARNINGS 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-I-Process 25 25 50 Finis

  8. Slide 8: Channel Inventory (Managerial Basis) and WOI

    CHANNEL INVENTORY*1 (MANAGERIAL 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 18 150 18 200 12 WOI 150 9 100 12 100 12 100 6 50 6 50 6 50 3 Liquid Inventory*3 Long-Term Inventory,

  9. 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 2019 2020 2021 *1 The total unitization rate as of 1QFY21 is calculated by excluding the utilization rate of the Shiga factory, which is to

  10. Slide 10: Non-GAAP EBITDA and GAAP Cash Flows

    Non-GAAP (EBITDA) GAAP IFRS (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 71.8 70 EBITDA Margin 50% Free cash flows*4 79.2 75 72.3 67.1 64.9 60 56.0 57.6 57.

  11. Slide 11: 1Q 2021 Financial Results by Main Segment

    Non-GAAP 1Q 2021 FINANCIAL RESULTS BY MAIN SEGMENT IFRS, NON-GAAP*1 Industrial/Infrastructure/IoT Automotive Business Company Total Business Revenue 103.2 B yen 96.6 B yen 203.7 B yen (QoQ) (+8.4%) (+4.1%) (+6.3%) Gross Margin 42.4％ 59.8％ 50.2% (QoQ) (+4.6pts) (+1.9pts) (+3.1pts) Operating Margin 22

  12. Slide 12: 2Q 2021 Forecast

    Non-GAAP 2Q 2021 FORECAST IFRS, NON-GAAP*1 YoY and QoQ results of the revenue are rounded off to one decimal place. 2020 2021 2Q (B yen) (Apr-Jun) 1H 2Q 1H 1Q Midpoint YoY QoQ (Jan-Jun) YoY (Apr-Jun) (Jan-Jun) (Jan-Mar) Forecast Forecast (Range) 204.0 +22.4% +0.2% 407.7 +18.0% Revenue 166.7 345.4 20

  13. Slide 13: 2Q 2021 Revenue and Demand Forecasts

    Non-GAAP 2Q 2021 REVENUE AND DEMAND FORECASTS IFRS, NON-GAAP*1 Industrial/Infrastructure/IoT Automotive Business Company Total Business Revenue QoQ − ＋ +0.2% ＋ (Sell-in) Forecast YoY ＋＋ ＋＋ +22.4% ＋＋ Customer Demand QoQ ＋＋ ＋＋ ＋＋ ＋＋ ＋＋ ＋＋ (Sell-through) Outlook YoY *1: Non-GAAP figures are calculated

  14. Slide 14: Order Backlog (Managerial Basis)

    ORDER BACKLOG*1*2 (MANAGERIAL BASIS) Automotive Industrial/Infrastructure/IoT Company Total （B yen） （B yen） （B yen） 300 300 600 200 200 400 100 100 200 0 0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2019 2020 2021 2019 2020 2021 2019 2020 2021 *1: Exchange rat

  15. Slide 15: Impact from Disasters: Actual and Outlook

    IMPACT FROM DISASTERS: ACTUAL AND OUTLOOK 2021 (B yen) 1Q 2Q Overview (Jan-Mar) (Apr-Jun) Earthquake Impact*1 Revenue -2.4 -1.5 Shipment reduction Operating Profit (Non-GAAP) -2.4 -0.5 Including operation loss Operating Profit (GAAP) -3.0 -1.0 Including inventory disposal, restoration and repairment

  16. Slide 16: 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 16

  17. Slide 17: Revenue and Gross Profit by Segment

    Non-GAAP REVENUE AND GROSS PROFIT BY SEGMENT NON-GAAP BASIS*1 2020 2021 (B yen) 1Q 2Q 3Q 4Q Full Year 1Q YoY QoQ (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Dec) (Jan-Mar) Revenue 178.7 166.7 178.7 191.6 715.7 203.7 +14.0% +6.3% Automotive 93.5 72.6 79.6 95.3 341.0 103.2 +10.4% +8.4% Industrial, In

  18. Slide 18: Operating Profit and EBITDA by Segment

    Non-GAAP OPERATING PROFIT AND EBITDA*1 BY SEGMENT NON-GAAP BASIS*2 2020 2021 (B yen) 1Q 2Q 3Q 4Q Full Year 1Q YoY QoQ (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Dec) (Jan-Mar) Operating Profit/Loss 33.7 30.2 36.5 37.2 137.5 52.6 +18.9 +15.4 (Margin) (18.8%) (18.1%) (20.4%) (19.4%) (19.2%) (25.8%)

  19. Slide 19: Statement of Financial Position

    GAAP STATEMENT OF FINANCIAL POSITION IFRS GAAP (IFRS) (B yen) 20/3 20/6 20/9 20/12 21/3 Total Assets 1,657.8 1,634.5 1,620.4 1,609.0 1,688.1 Cash and Cash Equivalents*1 136.9 148.5 175.9 219.8 243.6 Inventories 95.7 101.8 96.9 89.8 86.6 Goodwill 620.9 614.6 603.6 590.5 631.6 Intangible Assets 430.3

  20. Slide 20: 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

  21. Slide 21: GAAP (IFRS) / Non-GAAP Reconciliation

    GAAP (IFRS) / NON-GAAP*1 RECONCILIATION 2020 2021 (B yen) 1Q 2Q 3Q 4Q 1Q Operating Profit/Loss (GAAP/After PPA) 13.3 17.3 17.2 17.3 30.2 Reconciliation in Gross Profit Level +2.2 +0.1 +0.5 +0.2 +4.5 PPA Effects*2 (Amortization of Intangible Assets: SG&A*3 +14.2 +13.2 +13.2 +13.0 +12.9 PPA Effects (D

  22. Slide 22: GAAP (IFRS) / Non-GAAP Reconciliation

    GAAP (IFRS) / NON-GAAP*1 RECONCILIATION 2020 2021 (B yen) 1Q 2Q 3Q 4Q 1Q Profit/Loss Attributable to Owners of Parent 11.3 11.9 15.3 7.2 13.7 (GAAP/After PPA*2) Reconciliations in Operating Profit/Loss Level +20.4 +13.0 +19.2 +19.8 +22.4 Reconciliations in Net Profit/Loss -1.7 -1.2 -0.9 -2.8 -3.5 (T

  23. Slide 23: Financial Snapshot (GAAP, IFRS)

    GAAP 1Q 2020 FINANCIAL SNAPSHOT IFRS GAAP (IFRS) YoY and QoQ results of the revenue are rounded off to one decimal place. 2020 2021 (B yen) 1Q 4Q 1Q YoY QoQ (Jan-Mar) (Oct-Dec) (Jan-Mar) Revenue 178.7 191.6 203.7 +14.0% +6.3% Gross Margin 46.0% 46.9% 48.0% +2.0pts +1.1pts Operating Profit/loss 13.3

  24. Slide 24: Capital Expenditures

    CAPITAL EXPENDITURES*1*2 (B yen) Capital Masks and Tools Sales Ratio 40.0 30.0% 30.0 28.1 20.0% 20.0 13.8% 10.0% 10.0 6.1 6.3 7.4 4.9 5.3 4.6 3.3 3.9 3.2% 3.5% 3.8% 2.2% 2.5% 2.9% 2.4% 2.6% 0.0 0.0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q Forecast 2019 2020 2021 *1:The figures are investment decision basis of

  25. Slide 25: Major Announcements from 1Q

    MAJOR ANNOUNCEMENTS FROM 1Q New Products and Solutions ▪ Expanded RA6 MCU series with new RA6M5 Group MCUs for IoT applications ▪ Introduced complete power and functional safety solution for systems based on the R-Car V3H SoC for ADAS automotive front cameras and driver monitor cameras ▪ Expanded co

  26. Slide 26: 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

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