Slide 1: FY19/12 Q4/Full-Year Presentation
FY19/12 Q4/FULL-YEAR PRESENTATION RENESAS ELECTRONICS CORPORATION FEBRUARY 12, 2020 © 2020 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: FY19/12 Q4/Full-Year Financial Snapshot
Non-GAAP FY19/12 Q4/FULL-YEAR FINANCIAL SNAPSHOT IFRS, NON-GAAP *1*2 YoY and QoQ results as well as the changes from FCTs of the Revenue are rounded off to one decimal place. FY18/12 FY19/12 (B yen) Q4 Q4 Change Full year Change Q4 Full year Q3 (Oct-Dec) (Oct-Dec) YoY QoQ from Nov 7 (Jan-Dec) YoY fr
Slide 5: Quarterly Revenue Trends
Non-GAAP QUARTERLY REVENUE TRENDS IFRS, NON-GAAP *1*2 Automotive Industrial, Infrastructure, IoT Others Revenue (B yen) 203.3 192.6 192.0 YoY: +2.3% 200 185.6 5.3 187.7 183.4 QoQ: +4.7% 4.4 179.9 4.6 4.2 5.2 4.4 5.3 150.3 Industrial, Infrastructure, IoT 150 94.3 4.2 YoY: +8.1% 80.5 93.5 87.0 90.8 81
Slide 6: FY2019/12 Q4 Operating Margin
Non-GAAP FY2019/12 Q4 OPERATING MARGIN IFRS, NON-GAAP *1*2 QoQ +1.7pts FY18/12 Q4 FY19/12 Q3 FY19/12 Q4 FY19/12 Q4 Actual Actual Forecast Actual Currency impact (Oct-Dec 2018) (Jul-Sep 2019) (Oct-Dec 2019) (Oct-Dec 2019) Profit increase from sales increase Expense decrease 10.4％ 14.7％ 14.0％ 16.4％ vs
Slide 7: Gross Margin, Operating Margin and OPEX Trajectory
Non-GAAP GROSS MARGIN, OPERATING MARGIN AND OPEX TRAJECTORY IFRS, NON-GAAP *1*2 YoY: +5.6pts YoY: +0.6pt Gross Margin (%) QoQ: +1.1pts R&D Ratio (%) QoQ: +0.2pt 50 20 44.8 45.0 46.0 16.7 16.9 18 45 47.5 18.5 16 17.5 17.2 40 44.9 43.9 16.4 14 16.2 40.5 39.3 15.1 35 12 30 10 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 8: Inventory
INVENTORY *1 INVENTORY ADJUSTMENT PHASE COMPLETED BY DEC 2019 Inventory Change (Work in process + Finished goods) Sales Channel Inventory*2 (B yen) (B yen) Inventory days*3 125 Improved accuracy of 150 112 150 demand forecast 96 100 100 Auto Finished goods Shortened internal decision-making chain 50
Slide 9: Quarterly Trends in Front-End Utilization Rate
QUARTERLY TRENDS IN FRONT-END UTILIZATION RATE WAFER INPUT BASIS Total 6-inch line 8-inch line 12-inch line 100% 80% 60% 40% 20% 0% *1 FY17/Q1 FY17/Q2 FY17/Q3 FY17/Q4 FY18/Q1 FY18/Q2 FY18/Q3 FY18/Q4 FY19/Q1 FY19/Q2 FY19/Q3 FY19/Q4 *1: The utilization rate of the 6-inch line was revised from the FY19
Slide 10: Non-GAAP EBITDA and IFRS Cash Flows
Non-GAAP (EBITDA) GAAP IFRS (Cash Flows) NON-GAAP*1 EBITDA*2 AND IFRS*3 CASH FLOWS Non-GAAP EBITDA GAAP Cash Flows Cash flows from operating activities 70 (B yen) (B yen) 79.2 Cash flows from investing activities 75 Free cash flows *4 60 57.1 67.1 56.2 61.2 53.7 53.2 51.8 60 54.4 50 48.1 47.8 45.5 4
Slide 11: FY19/12 Full-Year Operating Profit/Loss and Net Profit/Loss
FY19/12 FULL-YEAR OPERATING PROFIT/LOSS AND NET PROFIT/LOSS BRIDGE FROM NON-GAAP *1 TO GAAP Full-year Operating Profit/Loss After PPA*² Full-year Net Profit/Loss After PPA (Oku yen) (Oku yen) PPA effects 93.1 95 (Depreciation / 95 amortization of IDT’s fixed & PPA effects intangible assets) 76.4 (De
Slide 12: Quarterly Revenue, Profit, and EBITDA Trends by Segment
Non-GAAP QUARTERLY REVENUE, PROFIT, AND EBITDA*1 TRENDS BY SEGMENT IFRS, NON-GAAP *2*3 Automotive Industrial, Infrastructure, IoT (B yen) Revenue EBITDA GM OM (B yen) Revenue EBITDA GM OM 120 60% 120 60% 103.8 102.0 100.8 100 94.5 50% 100 94.3 50% 93.6 93.1 90.8 93.5 90.4 85.9 87.0 82.7 40% 81.0 80.
Slide 13: FY20/12 Q1 Forecast
Non-GAAP FY20/12 Q1 FORECAST IFRS, NON-GAAP *1 YoY and QoQ results of the Revenue are rounded off to one decimal place. FY19/12 FY20/12 (B yen) Q1 Q1 Q4 (Jan-Mar) YoY QoQ (Jan-Mar) (Oct-Dec) Forecast 175.0 +16.5% -8.9％ Revenue 150.3 192.0 to 183.0 to +21.8％ to -4.7％ Gross Margin*2 39.3% 46.0% 46.0％
Slide 14: Quarter-End Order Backlog and Subsequent Quarters' Revenue
QUARTER-END ORDER BACKLOG AND SUBSEQUENT QUARTERS’ REVENUE ORDER BACKLOG: AMOUNT OF CUSTOMER ORDERS DUE EVERY SUBSEQUENT QUARTE *1 *1, 2, 3 Order backlog (requested amount for the following quarter) Revenue for the subsequent quarter (B yen) 210.2 203.3 197.3 195.5 192.6 192.0 200 185.6 187.7 183.4
Slide 15: Appendix
APPENDIX The figures in this section are mainly based on GAAP (IFRS) stated on a financial reporting basis and are provided as additional information. © 2020 Renesas Electronics Corporation. All rights reserved. Page 15
Slide 16: Sales Revenue and Operating Profit by Segment
Non-GAAP SALES REVENUE AND OPERATING PROFIT BY SEGMENT NON-GAAP BASIS *1 FY18/12 FY19/12 (B yen) Q1 Q2 Q3 4Q Full year Q1 Q2 Q3 Q4 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 185.6 203.3 179.9 187.7 756.5 150.3 192
Slide 17: GAAP (IFRS) / Non-GAAP Reconciliation
GAAP (IFRS) / NON-GAAP RECONCILIATION FY18/12- *1 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 a
Slide 18: GAAP (IFRS) / Non-GAAP Reconciliation
GAAP (IFRS) / NON-GAAP*1 RECONCILIATION FY18/12- *2 FY18/12 FY19/12 (B yen) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Operating Profit (GAAP/After PPA) 23.4 32.8 13.1 -1.1 -1.3 -10.6 8.2 10.6 Reconciliations in Gross Profit Level +1.4 +0.5 -0.0 +0.0 +1.9 +10.8 +0.9 -0.2 PPA Effects*3 (Amortization of Intangible Asset
Slide 19: GAAP (IFRS) / Non-GAAP Reconciliation
GAAP (IFRS) / NON-GAAP*1 RECONCILIATION FY18/12- *2 FY18/12 FY19/12 (B yen) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net Profit (GAAP/After PPA*3) 18.6 31.6 11.8 -10.9 -1.8 -8.9 4.1 0.8 Reconciliations in Operating Profit Level +6.7 +0.3 +8.4 +20.5 +8.5 +38.0 +18.8 +21.0 Reconciliations in Net Profit -0.1 -0.6 -0.4
Slide 20: FY19/12 Q4/Full-Year Financial Snapshot (GAAP)
GAAP FY19/12 Q4/FULL-YEAR FINANCIAL SNAPSHOT IFRS GAAP (IFRS) *1*2 YoY and QoQ results of the Revenue are rounded off to one decimal place. FY18/12 FY19/12 (B yen) 4Q Full year Q4 Full year 3Q (Oct-Dec) YoY QoQ (Jan-Dec) YoY (Oct-Dec) (Jan-Dec) (Jul-Sep) Actual Actual Revenue 187.7 756.5 183.4 192.0
Slide 21: Balance Sheets
GAAP BALANCE SHEETS IFRS IFRS *1*2 As of Mar 31, As of Jun 31, As of Sep 30, As of Dec 31, As of Mar 21, As of Jun 30, As of Sep 20, As of Dec 31, (B yen) *8 *8 *8 *8 2018 2018 2018 2018 2019 2019 2019 2019 Total Assets 1,085.7 1,119.7 1,125.3 1,055.2 1,875.6 1,696.9 1,665.4 1,667.4 *3 Cash and Cash
Slide 22: Capital Expenditures
CAPITAL EXPENDITURES *1 (B yen) Capital expenditures Sales ratio 8 3.0% 2.4% 2.4% 2.3% 2.5% 2.2% 6 4.9 1.7% 2.0% 4.4 1.7% 4.1 1.6% 4.1 1.4% 4 1.2% 1.5% 3.3 2.9 3.0 2.7 1.0% 1.9 2 0.5% 0 0.0% *2 *2 *2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 *2*3 Forecast FY18/12 FY19/12 FY20/12 *1: The figures are investment deci
Slide 23: Major Announcements from FY2019
MAJOR ANNOUNCEMENTS FROM FY2019 Major D-ins & Partners Established a joint laboratory with SAIC Volkswagen to accelerate development for China's automotive market Renesas' innovative R-Car and RH850 adopted by Nissan for its New Skyline ProPILOT 2.0 Collaboration with StradVision on smart came
Slide 24: 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 statem