Slide 1: 4Q/Full-Year 2022 Presentation
4Q/FULL-YEAR 2022 PRESENTATION RENESAS ELECTRONICS CORPORATION FEBRUARY 9, 2023 © 2023 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: 4Q/Full-Year 2022 Financial Snapshot (Non-GAAP)
4Q/FULL-YEAR 2022 FINANCIAL SNAPSHOT NON-GAAP 2021 2022 (B yen) 4Q 4Q Change Full-Year Change 4Q Full Year 3Q (Oct-Dec) (Oct-Dec) YoY QoQ from Oct 26 (Jan-Dec) YoY from Oct 26 (Oct-Dec) (Jan-Dec) (Jul-Sep) Forecast Actual FCT*1 Actual FCT*1 385.0 Revenue 314.4 994.4 387.6 391.3 +24.5% +1.0% +1.6% 1,
Slide 5: Quarterly Revenue Trends
QUARTERLY REVENUE TRENDS NON-GAAP Revenue (B yen) 387.6 391.3 377.1 YoY: +24.5% 400 Automotive Industrial/Infrastructure/IoT Others 3.0 2.9 QoQ: +1.0% 346.7 2.9 350 314.4 3.0 3.3 Automotive 300 258.4 157.8 169.6 YoY: +28.8% 163.8 QoQ: +7.5% 4.5 153.9 250 217.9 203.7 131.6 178.7 191.6 4.9 178.7 3.8 2
Slide 6: 4Q 2022 Revenue and Gross/Operating Margin
4Q 2022 REVENUE AND GROSS/OPERATING MARGIN NON-GAAP 4 Operating Margin vs FCT +4.2pts Industrial / Automotive Infrastructure / Company Total Revenue IoT Gross Margin vs FCT: +2.0pts Currency Impact Product Mix 169.6 B yen 218.9 B yen 391.3 B yen Production Recovery Revenue Production Costs, etc. vs
Slide 7: In-House Inventory and DOI
IN-HOUSE INVENTORY (FINANCIAL ACCOUNTING BASIS) AND DOI*1*2 Automotive Industrial/Infrastructure/IoT Company Total (Days) (Days) (Days) 120 120 120 DOI 90 90 90 Target DOI 60 60 60 (B yen) (B yen) (B yen) Including Dialog 120 120 200 Including Celeno 90 90 150 Inventory 60 60 100 Raw Materials Work-
Slide 8: Sales Channel Inventory and WOI
SALES CHANNEL INVENTORY*1 (MANAGEMENT ACCOUNTING BASIS) AND WOI*2 Automotive Industrial/Infrastructure/IoT Company Total (Weeks) (Weeks) (Weeks) 18 18 18 WOI 12 12 12 6 6 6 Target WOI 0 0 0 (B yen) (B yen) (B yen) Including Dialog 150 150 240 Including Celeno 100 100 160 Inventory 50 50 80 Liquid In
Slide 9: Inventory Analysis
INVENTORY ANALYSIS In-House Inventory Sales Channel Inventory＿ 4Q 1Q23 Outlook 4Q 1Q23 Outlook Raw Materials • Forex impact • Inventory valuation - update • Continuous shipment • Shipment adjustment adjustment in in anticipation of anticipation of Work Industrial demand softening demand softening •
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 3Q 4Q 2020 2021 2022 *1: Utilization rates are calculated by excluding the 6-inch line capacity of the Shiga Fac
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 170 Cash flows from investing activities*2 EBITDA margin 180 50% Free cash flows *3 144.9 165.2 163.4 138.7 155.2 140 155.5 150 111.2 40% 106.2 110 128.3 119.4 89.6 120 8
Slide 12: 1Q 2023 Forecast
1Q 2023 FORECAST NON-GAAP 2022 2023 1Q (B yen) (Jan-Mar) 1Q 4Q Midpoint YoY QoQ (Jan-Mar) (Oct-Dec) Forecast (Range)*1 355.0 +2.4% -9.3% Revenue 346.7 391.3 (±7.5) (±2.2pts) (±1.9pts) (Excluding Foreign - - - -7.0% -3.3% Exchange Impact) Gross Margin 58.4% 56.0% 54.5% -3.9pts -1.5pts Operating Margi
Slide 13: Acquisition and Tender Offer of Own Shares
ACQUISITION AND TENDER OFFER OF OWN SHARES Summary of acquisition of own shares Total number of shares to be purchased: As of end of After acquisition 40,453,074 shares of common stock (maximum) December 2022 of own shares*2 (Equivalent to 2.25% of the total number of issued shares) Free float weigh
Slide 14: 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. © 2023 Renesas Electronics Corporation. All rights reserved. Page 14
Slide 15: 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 3Q 4Q Full Year YoY QoQ YoY (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Dec) Revenue 203.7 217.9 258.4 314.4 994.4 346.7 377.1 387.6 391.3 +24.5% +1.0% 1,502.
Slide 16: 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 3Q 4Q Full Year YoY QoQ YoY (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Dec) Operating Profit 52.6 61.4 83.9 98.7 296.6 135.5 145.3 142.8 135.7 +37.0 -7.
Slide 17: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION GAAP (B yen) 21/3 21/6 21/9 21/12 22/3 22/6 22/9 22/12 Total Assets 1,688.1 1,942.7 2,354.1 2,426.3 2,598.7 2,840.3 3,013.3 2,812.3 Cash and Cash Equivalents*1 243.6 504.8 223.0 221.9 267.2 247.9 310.1 336.1 Inventories 86.6 94.4 135.0 137.8 155.5 173.3 190.7 188.0 Go
Slide 18: GAAP / Non-GAAP Reconciliation (FY2021)
GAAP / NON-GAAP RECONCILIATION*1 (FY2021) Full-Year 2021 (Jan-Dec) 9 months (Jan-Sep) 4Q (Oct-Dec) (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 358.2 197.9 141.3 256.0 170.7 98.7 80.9
Slide 19: GAAP / Non-GAAP Reconciliation (FY2022)
GAAP / NON-GAAP RECONCILIATION*1 (FY2022) Full-Year 2022 (Jan-Dec) 9 months (Jan-Sep) 4Q (Oct-Dec) (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 644.1 423.7 268.0 483.8 219.1 135.7 109.
Slide 20: FY2022 Consolidated Operating Profit Bridge from Non-GAAP to GAAP
FY2022 CONSOLIDATED OPERATING PROFIT BRIDGE FROM NON-GAAP TO GAAP （B yen） 600 Former-Intersil Former-IDT 559.4 PPA Effects PPA Effects Former-Dialog PPA Effects 500 Former-Celeno Former-Reality AI Stock-Based PPA Effects PPA Effects Compensation Others 424.2 400 300 Recurring Items Non-Recurring Ite
Slide 21: 4Q/Full-Year 2022 Financial Snapshot (GAAP)
4Q/FULL-YEAR 2022 FINANCIAL SNAPSHOT GAAP 2021 2022 (B yen) 4Q Full Year 3Q 4Q Full Year YoY QoQ YoY (Oct-Dec) (Jan-Dec) (Jul-Sep) (Oct-Dec) (Jan-Dec) Revenue*1 314.0 993.9 387.1 390.8 +24.4% +1.0% 1,500.9 +51.0% Gross Margin 50.5% 49.9% 56.8% 55.8% +5.4pts -1.0pt 56.9% +7.0pts Operating Profit 56.7
Slide 22: Capital Expenditures
CAPITAL EXPENDITURES*1*2 （B yen） 150 Capital Masks and Tools Sales Ratio Fire*3 Recovery Response Investment to restart Kofu Fab operation 60 Investments eligible for subsidies from METI*4 40% 39.4% 16.3% 50 Excluding Kofu Factory 30% 40 30 20% 20 13.8% 10% 10.3% 10 8.2% 9.2% 3.8% 5.2% 5.1% 4.1% 5.0
Slide 23: 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