Renesas Electronics Corporation · TSE:6723

Renesas Electronics — Investor Day (June 2025)

10 slides from Renesas Electronics's investor day presentation, Jun 26, 2025

  1. Slide 1: Finance

    FINANCE JUNE 26, 2025 SHUHEI SHINKAI SVP AND CFO RENESAS ELECTRONICS CORPORATION © 2025 Renesas Electronics Corporation. All rights reserved. Page 1

  2. Slide 2: Progress to Date

    Non-GAAP PROGRESS TO DATE 2019 2020 2021 2022 2023 2024 Mid-term model*1 Adjusted*1 (2024 Capital Market Day) Revenue Grow 6,204 6,357 8,894 12,282 11,648 10,100 (oku yen) @SAM+ Gross 43% 48% 54% 56% 57% 55% 55% margin Operating 12% 19% 29% 35% 32% 27% 30% margin *1: FX $1 = 100yen, €1 = 120yen. Exc

  3. Slide 3: Mid-Term Model Review

    Non-GAAP MID-TERM MODEL REVIEW Mid-term model 2024 result (2024 Capital Market Day) (Adjusted*3) 10,100 Revenue SAM+ (oku yen) Inventory management Gross margin 55% 55% Fab-lite R&D *1 (% of revenue) ≈16% 19% SG&A *2 Expanded R&D (% of revenue) ≈8% 9% IT integration delay Operating margin 30% 27% *1

  4. Slide 4: Mid-Term Model Update

    MID-TERM MODEL UPDATE Previous*1 Latest*1,2 Rationale (2024 Capital Market Day) (2025 Capital Market Day) Grow Grow Revenue @SAM+ @SAM+ Gross margin 55% 55% Operational excellence Operating Purposeful and margin 30% 25 - 30% disciplined investment *1: FX $1 = 100yen, €1 = 120yen. Excluding 6” fab sh

  5. Slide 5: Long-Term Targeted Portfolio

    LONG-TERM TARGETED PORTFOLIO Previous Latest (2024 Capital Market Day) (2025 Capital Market Day) Strategic focus Software & Synergistic revenue Digitalization Bolt-on Control High Performance Computing 28nm MCU and R-Car Info ADAS xEV Embedded Regain market share Processing by Renesas 365 Analog & I

  6. Slide 6: Mid-Term Capital Allocation Policy

    MID-TERM CAPITAL ALLOCATION POLICY Recurring Opportunistic Operating cash flow Capex 5% of revenue Deleverage Strategic Net <1x investment in mid-term Divestiture (incl. buyback) Dividend Phased increase to 30+% of FCF © 2025 Renesas Electronics Corporation. All rights reserved. Page 6

  7. Slide 7: Altium Synergies

    ALTIUM SYNERGIES Value Today Platform Revenue synergy Day 1 synergy complete, focus on scaling to maximize the benefit Cost synergy Push out leverage Deleverage target (Net < 1.0x) in mid-term Mid- Long- Day 1 term term Time © 2025 Renesas Electronics Corporation. All rights reserved. Page 7

  8. Slide 8: Mid-Term Model House Keeping

    MID-TERM MODEL HOUSE KEEPING Revenue growth SAM+ Gross margin 55% R&D % 18 - 22% SG&A % 8 - 9% Operating margin 25 - 30% EBITDA margin 35 - 40% Tax rate 15 - 20% Capital expenditures 5% Inventory 120 days FCF margin 20 - 30% Net leverage <1.0x in mid-term © 2025 Renesas Electronics Corporation. All

  9. Slide 9: 6x Break Down

    6x BREAK DOWN 3x Valuation Execution of mid-term plan b-2 a  Back to basics  Focus on fundamentals b-1 Valuation gap-fill 2023 b-1  Portfolio management 2024  Capital allocation 2022 Market cap Multiple expansion 2x b-2  Digitalization Scale a © 2025 Renesas Electronics Corporation. All rights

  10. Slide 10: Thank You

    THANK YOU © 2025 Renesas Electronics Corporation. All rights reserved. Page 10

Renesas Electronics — Investor Day (June 2025) on 6ix