Slide 1: 4Q/Full-Year 2023 Presentation
4Q/FULL-YEAR 2023 PRESENTATION RENESAS ELECTRONICS CORPORATION FEBRUARY 8, 2024 © 2024 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 2023 Financial Snapshot (Non-GAAP)
4Q/FULL-YEAR 2023 FINANCIAL SNAPSHOT NON-GAAP 2022 2023 (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 *1 358.0 Revenue 391.3 1,502.7 379.4 361.9 -7.5% -4.6% +1.1%
Slide 5: Quarterly Revenue Trends
QUARTERLY REVENUE TRENDS NON-GAAP Automotive Industrial/Infrastructure/IoT Others (B yen) 387.6 391.3 377.1 379.4 Revenue 400 3.0 2.9 368.7 361.9 2.9 359.7 2.3 346.7 2.8 2.2 YoY: -7.5% 2.6 QoQ:-4.6% 350 3.0 314.4 3.3 300 157.8 169.6 258.4 163.8 176.3 169.4 Automotive 4.5 153.9 168.3 181.1 250 217.9
Slide 6: 4Q 2023 Revenue and Gross / Operating Margin
4Q 2023 REVENUE AND GROSS / OPERATING MARGIN NON-GAAP 4 Operating Margin vs FCT +1.4pts Industrial / Automotive Infrastructure / Company Total Revenue IoT Gross Margin vs FCT: +0.4pt Currency Impact Product Mix 181.1 B yen 178.7 B yen 361.9 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) 120 120 200 90 90 150 Inventory 60 60 100 Raw Materials Work-In-Process 30 50 30 Finished Goods
Slide 8: Sales Channel Inventory and WOI
SALES CHANNEL INVENTORY*1 (MANAGEMENT ACCOUNTING BASIS*2) AND WOI*3 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) 150 150 300 250 100 100 200 Inventory 150 Liquid Inventory*4 50 50 100 Long-Term Inv
Slide 9: Inventory Analysis
INVENTORY ANALYSIS In-House Inventory Sales Channel Inventory＿ 3Q → 4Q 4Q → 1Q24 Outlook 3Q → 4Q 4Q → 1Q24 Outlook Raw • Decreased wafer Materials input due to • Response to production adjustment increased production • Procurement based on production • Increased inventory • Decrease in Industrial In
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 2021 2022 2023 *1: Utilization rates are calculated by excluding the 6-inch line capacity of the Shiga Fac
Slide 11: Gross Profit and Operating Profit Quarterly Trends
GROSS PROFIT AND OPERATING PROFIT QUARTERLY TRENDS NON-GAAP Gross Profit (Margin) Operating Profit (Margin) YoY: +0.4pt YoY: -2.8pts (B yen) QoQ: -1.5pts (B yen) QoQ: -3.0pts Gross Profit Operating Profit 240.0 60% 240.0 50% Gross Profit Margin 220.9 220.9 219.1 Operating Profit Margin 211.5 219.8 2
Slide 12: Non-GAAP EBITDA and GAAP Cash Flows
NON-GAAP EBITDA*1 AND GAAP CASH FLOWS Non-GAAP EBITDA GAAP Cash Flows (B yen) (B yen) Cash flows from operating activities EBITDA 180 50% Cash flows from investing activities *2 EBITDA margin 157.6 165.2 163.4 160 Free cash flows *3 152.4 155.2 155.5 144.9 138.7 149.0 152.6 132.7 150 144.3 130 136.0
Slide 13: 1Q 2024 Forecast
1Q 2024 FORECAST NON-GAAP 2023 2024 (B yen) 1Q 1Q 4Q (Jan-Mar) YoY QoQ (Jan-Mar) (Oct-Dec) Midpoint Forecast (Range)*1 345.0 -4.1% -4.7% Revenue 359.7 361.9 (±7.5) (±2.1pts) (±2.1pts) (Excluding Foreign - - - -8.4% -2.9% Exchange Impact) Gross Margin 56.2% 56.4% 55.0% -1.2pts -1.4pts Operating Margi
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. © 2024 Renesas Electronics Corporation. All rights reserved. Page 14
Slide 15: Revenue and Gross Profit by Segment
REVENUE AND GROSS PROFIT BY SEGMENT NON-GAAP 2022 2023 (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 346.7 377.1 387.6 391.3 1,502.7 359.7 368.7 379.4 361.9 -7.5% -4.6% 1,469
Slide 16: Operating Profit and EBITDA by Segment
OPERATING PROFIT AND EBITDA*1 BY SEGMENT NON-GAAP 2022 2023 (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 135.5 145.3 142.8 135.7 559.4 124.8 129.1 132.3 115.5 -20.2
Slide 17: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION GAAP (B yen) 22/3 22/6 22/9 22/12 23/3 23/6 23/9 23/12 Total Assets 2,598.7 2,840.3 3,013.3 2,812.5 2,840.8 3,123.5 3,292.2 3,167.0 Cash and Cash Equivalents*1 267.2 247.9 310.1 336.1 361.4 458.1 392.5 434.7 Inventories 155.5 173.3 190.7 188.0 188.2 177.9 177.8 163.1
Slide 18: 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 19: GAAP / Non-GAAP Reconciliation (FY2023)
GAAP / NON-GAAP RECONCILIATION*1 (FY2023) Full-Year 2023 (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 633.3 386.1 334.8 445.8 204.1 115.5 98.2
Slide 20: 4Q 2023 Consolidated Operating Profit Bridge from Non-GAAP to GAAP
4Q 2023 CONSOLIDATED OPERATING PROFIT BRIDGE FROM NON-GAAP TO GAAP （B yen） 150 Former-Intersil PPA Effects Former-IDT 115.5 PPA Effects Former-Dialog PPA Effects Other Stock-Based 100 PPA Effects Compensation Others 72.4 Recurring Items Non-Recurring 50 Items 0 Non-GAAP GAAP © 2024 Renesas Electroni
Slide 21: 4Q/Full-Year 2023 Financial Snapshot (GAAP)
4Q/FULL-YEAR 2023 FINANCIAL SNAPSHOT GAAP 2022 2023 (B yen) 4Q Full Year 3Q 4Q Full Year YoY QoQ YoY (Oct-Dec) (Jan-Dec) (Jul-Sep) (Oct-Dec) (Jan-Dec) Revenue*1 390.8 1,500.9 379.4 361.9 -7.4% -4.6% 1,469.4 -2.1% Gross Margin 55.8% 56.9% 57.9% 56.2% +0.4pt -1.6pts 56.8% -0.1pt Operating Profit 96.2
Slide 22: Capital Expenditures
CAPITAL EXPENDITURES*1*2 （B yen） 150 Capital Masks and Tools Sales Ratio Fire*3 Recovery Response 60 Investment to restart Kofu Fab operation 40% 39.4% 16.3% 50 Investments eligible for subsidies from METI*4 Excluding Kofu Factory 30% 40 30 20% 20 13.8% 6.3% 10% 10.3% 10 8.2% 9.2% 7.8% 5.2% 5.1% 5.6
Slide 23: Acquisition of Transphorm
ACQUISITION OF TRANSPHORM Overview of Transphorm Rationale Company Name Transphorm, Inc. Expand Wide Bandgap Portfolio ▪ Expand and strengthen power portfolio with GaN Headquarters U.S. (Goleta, CA) technology to offer customers the full ability to choose optimal power solutions Design and manufactu
Slide 24: Dividends and Cancellation of Treasury Shares
DIVIDENDS AND CANCELLATION OF TREASURY SHARES 2023 Year-End Dividend Cancellation of Treasury Shares Number of 87,839,138 shares, Approx. 4.5％ Dividends 28 yen per share, Total 49.8 billion yen Retired Shares (vs. Number of shares issued and outstanding) Dividend 14.8％ (vs. GAAP net profit) Equity s
Slide 25: 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