Renesas Electronics Corporation · TSE:6723
Renesas Electronics — Investor Day (May 2024)
17 slides from Renesas Electronics's investor day presentation, May 16, 2024
Slide 1: State of the Company
Version 0.3 As of Apr 18 STATE OF THE COMPANY TBD MAY 16, 2024 HIDETOSHI SHIBATA PRESIDENT AND CEO RENESAS ELECTRONICS CORPORATION © 2024 Renesas Electronics Corporation. All rights reserved.
Slide 2: Our Journey
OUR JOURNEY (oku yen) 16,000 80% Revenue*1 Gross margin Operating margin No.3 TSR (LHS) (RHS) (RHS) Among SOX 12,000 60% 8,000 40% Nikkei 225 4,000 20% 0 0% 2019 2020 2021 2022 2023 Kofu Factory *1: IFRS/Non-GAAP. Revenue of IDT consolidated from April 2019, Dialog from September 2021, Celeno from J
Slide 3: 2030 Aspiration: 6 = 2 x 3
2030 ASPIRATION: 6 = 2 X 3 2x × 3x ＝ 6x 2030 aspiration Execution of mid-term plan Valuation gap-fill Multiple expansion Progressing Downcycle management INCJ exit Scale 2x As of 2023 end Index Dividend Digitalization © 2024 Renesas Electronics Corporation. All rights reserved. 3
Slide 4: Scale
SCALE Reorganization Segment-based Product-based R&D Operations Focus on 20%*1 Focus on 70%*2 Outsourcing partners Process technologies, packages and testers Larger strategic engagements Efficient use of resources & investment *1: To be achieved within the next five years. *2: To be achieved within
Slide 5: Digitalization
DIGITALIZATION Software Tools Quick-Connect Studio Applications Platform © 2024 Renesas Electronics Corporation. All rights reserved. 5
Slide 6: As Key for Unlocking New Opportunities
AS KEY FOR UNLOCKING NEW OPPORTUNITIES India semiconductor market Renesas India headcount Key enablers ($B) 10 employees ~1,000 ~10% Share of System PoCs global market 70~75 ~5% +16-18% University programs 33~38 51 Digitalization 2022 2027 2019 2025 Source: A joint research by the India Electronics
Slide 7: Our Purpose
OUR PURPOSE To Make Our Lives Easier by complementing human capabilities © 2024 Renesas Electronics Corporation. All rights reserved. 7
Slide 8: Progress of ESG Journey
PROGRESS OF ESG JOURNEY Progress on greenhouse gas ("GHG") vs 2021 2024 Focus areas Scope 1 & 2 Scope 3 (Category 1) Reduction of GHG emissions Supplier engagement target*1 Health & Safety Human resources -38% 43% 70% by 2030 ~2023 by 2026 -18% ~2023 ▪ Energy saving ▪ Information sharing ▪ Green ene
Slide 9: Renesas Culture
RENESAS CULTURE T A G I E ▪ Be open to share knowledge ▪ Asking questions ▪ Adapting communications ▪ Critical thinking ▪ Be accountable and take across borders responsibility in the workplace ▪ Speak up ▪ Understanding your ▪ Championing new ideas ▪ Delivering of honest and audience ▪ Be alert to e
Slide 10: Progressing on "Global"
PROGRESSING ON “GLOBAL” 2023 Renesas Culture survey 2024 Pulse check*1 Global Interconnectivity and Global Collaboration TAGIE Engagement Opportunities Opportunities 69pts 72pts 2023 2024 Agile Employee experience Global ▪ Well-Being Innovative ▪ Collaboration Japan and APAC IT infrastructure *1: Th
Slide 11: Maintaining Model
Non-GAAP MAINTAINING MODEL 2019 2020 2021 2022 2023 Mid-term model*1 Adjusted*1 Revenue Grow 6,204 6,357 8,894 12,282 11,648 (oku yen) @SAM+ Gross margin 43% 48% 54% 56% 57% 55% Operating margin 12% 19% 29% 35% 32% 30% *1: FX $1 = 100yen, €1 = 120yen. Excluding 6” fab shutdown & structural reform-re
Slide 12: Driving Growth
DRIVING GROWTH High Scalable & tailored Performance Computing AI & tools Embedded Scalability Processing UX Analog & Power efficiency Connectivity Domain intimacy Broad & integrated Power Attach © 2024 Renesas Electronics Corporation. All rights reserved. 12
Slide 13: Embedded Compute Franchise
EMBEDDED COMPUTE FRANCHISE Total semiconductor MCU Initiatives Cost optimization No.16 No.5 R&D 2022 2023 2022 2023 1.9% 2.0% 16.5% 15.0% Digitalization Graphs created by Renesas based on Gartner Research. Calculations performed by Renesas Source: Gartner®, Market Share: Semiconductors by End Market
Slide 14: Design-in Progress
DESIGN-IN PROGRESS Automotive Industrial, Infra and IoT (oku yen) *1 (oku yen) *1 +30% +50% 10,000 10,000 0 0 2019 2020 2021*2 2022 2023 2019 2020 2021*2 2022 2023 *1: FX $1 = 100yen, €1 = 120yen *2: Proforma (Dialog and Celeno included) © 2024 Renesas Electronics Corporation. All rights reserved. 1
Slide 15: Summary
SUMMARY Good progress for 5 years… And now in the middle of laying a foundation… For a sustained long-term growth …. to make our lives easier © 2024 Renesas Electronics Corporation. All rights reserved. 15
Slide 16: Thank You
THANK YOU © 2024 Renesas Electronics Corporation. All rights reserved. 16
Slide 17: Forward-Looking Statements
(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 statements do not r