Slide 1: 4Q/Full-Year 2021 Presentation
4Q/FULL-YEAR 2021 PRESENTATION RENESAS ELECTRONICS CORPORATION FEBRUARY 9, 2022 © 2022 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 2021 Financial Snapshot
4Q/FULL-YEAR 2021 FINANCIAL SNAPSHOT NON-GAAP 2020 2021 Change Change (B yen) 4Q 4Q Full-Year 4Q Full Year 3Q from from (Oct-Dec) (Oct-Dec) YoY QoQ (Jan-Dec) YoY (Oct-Dec) (Jan-Dec) (Jul-Sep) Oct 28 Oct 28 Forecast Actual Actual FCT*1 FCT*1 298.0 Revenue 191.6 715.7 258.4 314.4 +64.1% +21.7% +5.5% 9
Slide 5: Quarterly Revenue Trends
QUARTERLY REVENUE TRENDS Revenue (B yen) Automotive Industrial/Infrastructure/IoT Others 314.4 YoY: +64.1% 3.3 QoQ: +21.7% 300 258.4 4.5 250 Automotive 217.9 131.6 203.7 YoY: +38.2% 192.6 192.0 191.6 4.9 QoQ: +8.5% 183.4 178.7 178.7 3.8 200 4.6 4.2 166.7 3.5 121.3 4.4 150.3 2.6 2.5 2.5 4.2 106.1 150
Slide 6: 4Q 2021 Revenue and Gross/Operating Margin
4Q 2021 REVENUE AND GROSS/OPERATING MARGIN NON-GAAP ｖ Operating Margin vs FCT + 3.4pts Industrial / Automotive Infrastructure / Company Total Revenue IoT Gross Margin vs FCST: +1.3pts Currency Impact vs FCST: +5.5% Product Mix 131.6 B yen 179.4 B yen 314.4 QoQ: +21.7% B yen Production Recovery Reven
Slide 7: In-House Inventory and DOI
IN-HOUSE INVENTORY (FINANCIAL ACCOUNTING BASIS) AND DOI*1 Automotive Industrial/Infrastructure/IoT Company Total Inventory Target DOI DOI Inventory DOI Inventory DOI (B yen) (Days) (B yen) (Days) (B yen) (Days) 100 150 100 150 200 150 DOI 75 75 150 Celeno 100 100 100 Dialog 50 50 100 Work-In-Process
Slide 8: Sales Channel Inventory and WOI
SALES CHANNEL INVENTORY*1 (MANAGEMENT ACCOUNTING BASIS) AND WOI*2 Automotive Industrial/Infrastructure/IoT Company Total Inventory Target WOI WOI Inventory WOI Inventory WOI (B yen) (Weeks) (B yen) (Weeks) (B yen) (Weeks) 150 18 150 18 200 12 WOI 150 9 100 12 100 12 Production adjustment by OEMs Sli
Slide 9: 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 2019 2020 2021 *1: From 1QFY21, utilization rates are calculated by excluding the 6-inch line capacity of
Slide 10: Order Status
ORDER STATUS FY2022 Order Backlog*1*2 (Management Accounting Basis) Total Demand vs Revenue (B yen) 600 Automotive Company Total Orders in FY 2022 400 Commitment 200 （B yen） Revenue 1,200 0 Shipment 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q after 2019 | 2020 | 2021 1,000 FY2023 (B yen) 800 900 Industrial/
Slide 11: Non-GAAP EBITDA and GAAP Cash Flows
NON-GAAP EBITDA*1*2 AND GAAP CASH FLOWS Non-GAAP EBITDA GAAP Cash Flows (B yen) Cash flows from operating activities (B yen) EBITDA 120 Cash flows from investing activities 111.2 *3 EBITDA margin 119.4 Free cash flows 120 50% 100 103.6 82.4 79.2 73.4 75.6 95.3 100 80 40% 64.9 60 54.4 80.6 47.8 47.9
Slide 12: 1Q 2022 Forecast
1Q 2022 FORECAST NON-GAAP 2021 2022 1Q (B yen) (Jan-Mar) 1Q 4Q Midpoint YoY QoQ (Jan-Mar) (Oct-Dec) Forecast*1 (Range) 336.0 +65.0% +6.9% Revenue 203.7 314.4 (±4.0) (±2.0pts) (±1.3pts) Gross Margin 50.2% 54.3% 55.5% +5.3pts +1.2pts Operating Profit 52.6 98.7 34.5% +8.7pts +3.1pts (Margin) (25.8%) (3
Slide 13: 1Q 2022 Revenue and Demand Forecasts
1Q 2022 REVENUE AND DEMAND FORECASTS Automotive Industrial/Infrastructure/IoT Company Total Revenue QoQ ＋＋ ＋ +6.9% ＋ (Sell-in) Forecast YoY ＋＋ ＋＋ +65.0% ＋＋ Customer Demand QoQ ＋＋ ＋ ＋＋ ＋＋ ＋＋ ＋＋ (Sell-through) Outlook YoY © 2022 Renesas Electronics Corporation. All rights reserved. Page 13
Slide 14: (Ref) Dialog Quarterly Revenue Trends
(REF) DIALOG QUARTERLY REVENUE TRENDS ($m) Others The largest customer Licensed main PMIC 500 460 439 400 386 366 361 318 302 300 248 200 100 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2020 2021 © 2022 Renesas Electronics Corporation. All rights reserved. Page 14
Slide 15: 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. © 2022 Renesas Electronics Corporation. All rights reserved. Page 15
Slide 16: Financial Snapshot (Excluding Dialog Revenue)
4Q/FULL-YEAR 2021 FINANCIAL SNAPSHOT NON-GAAP (REFERENCE: EXCLUDING DIALOG REVENUE) 2020 2021 (B yen) 4Q Full Year 4Q Full Year 3Q (Oct-Dec) YoY QoQ (Jan-Dec) YoY (Oct-Dec) (Jan-Dec) (Jul-Sep) Actual Actual Revenue 191.6 715.7 243.4 262.8 +37.2% +8.0% 927.7 +29.6% Gross Margin 47.0% 47.3% 55.6% 55.6
Slide 17: Revenue and Gross Profit by Segment
REVENUE AND GROSS PROFIT BY SEGMENT NON-GAAP 2020 2021 (B yen) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Full-Year YoY QoQ YoY (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Dec) Revenue 178.7 166.7 178.7 191.6 203.7 217.9 258.4 314.4 +64.1% +21.7% 994.4 +38.9% Automotive 93.5 72
Slide 18: Operating Profit and EBITDA by Segment
OPERATING PROFIT AND EBITDA*1 BY SEGMENT NON-GAAP 2020 2021 (B yen) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Full Year YoY QoQ YoY (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Dec) Operating Profit 33.7 30.2 36.5 37.2 52.6 61.4 83.9 98.7 +61.6 +14.9 296.6 +159.0 (Margin) (18.8
Slide 19: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION GAAP (B yen) 20/3 20/6 20/9 20/12 21/3 21/6 21/9 21/12 Total Assets 1,657.8 1,634.5 1,620.4 1,609.0 1,688.1 1,942.7 2,328.0 2,406.2 Cash and Cash Equivalents*1 136.9 148.5 175.9 219.8 243.6 504.8 223.0 221.9 Inventories 95.7 101.8 96.9 89.8 86.6 94.4 135.2 137.9 Goodw
Slide 20: GAAP / Non-GAAP Reconciliation (FY2020)
GAAP / NON-GAAP RECONCILIATION（FY2020） Full-Year 2020 (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 248.6 100.4 87.2 165.8 90.1 37.2 24.2 57.5
Slide 21: GAAP / Non-GAAP Reconciliation (FY2021)
GAAP / NON-GAAP RECONCILIATION（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 80.9 119
Slide 22: FY2021 Consolidated Operating Profit Bridge Non-GAAP to GAAP
FY2021 FULL-YEAR CONSOLIDATED OPERATING PROFIT BRIDGE FROM NON-GAAP TO GAAP （B yen） Former-Intersil 300 296.6 PPA Effects Former-IDT PPA Effects Stock-Based Compensation （Excluding Former- 250 Dialog） Items Related to Former-Dialog/Celeno Naka Factory Fire Impact 200 Others 183.6 150 Recurring Non-R
Slide 23: 4Q/Full-Year 2021 Financial Snapshot (GAAP)
4Q/FULL-YEAR 2021 FINANCIAL SNAPSHOT GAAP 2020 2021 (B yen) 4Q Full Year 3Q 4Q Full Year YoY QoQ YoY (Oct-Dec) (Jan-Dec) (Jul-Sep) (Oct-Dec) (Jan-Dec) Revenue 191.6 715.7 258.4 314.4 +64.1% +21.7% 994.4 +38.9% Gross Margin 46.9% 46.9% 52.2% 50.5% +3.5pts -1.8pts 49.9% +3.0pts Operating Profit 17.3 6
Slide 24: Capital Expenditures
CAPITAL EXPENDITURES*1*2 (B yen) Capital Masks and Tools Sales Ratio 40 Fire*3 Recovery Response 30% 30 28.1 20% 22.5 21.2 20 16.2 10.3% 13.8% 11.8% 10% 8.2% 10 5.2% 6.1 6.3 7.4 4.9 5.3 4.6 11.2 3.3 3.9 3.8% 6.8 2.2% 2.9% 3.2% 3.5% 2.6% 0.8 0.2 2.5% 2.4% 0 0 0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
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