Slide 1: 3Q 2024 Presentation
3Q 2024 PRESENTATION RENESAS ELECTRONICS CORPORATION OCTOBER 31, 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: 3Q 2024 Financial Snapshot
3Q 2024 FINANCIAL SNAPSHOT NON-GAAP 2023 2024 (B yen) 3Q 3Q Change 9 months Change 3Q 9 months 2Q (Jul-Sep) (Jul-Sep) YoY QoQ from Jul 25 (Jan-Sep) YoY from Jul 25 (Jul-Sep) (Jan-Sep) (Apr-Jun) Forecast Actual FCT*1 Actual FCT*1 348.0 Revenue 379.4 1,107.8 358.8 345.3 -9.0% -3.8% -0.8% 1,055.9 -4.7%
Slide 5: 3Q 2024 Revenue and Gross / Operating Margin
3Q 2024 REVENUE AND GROSS / OPERATING MARGIN NON-GAAP vs FCT Industrial / Company Total Automotive Infrastructure / IoT Revenue: (+) Altium, (-) Foreign Exchange Impact Gross Margin: 345.3 B yen 185.5 B yen 158.2 B yen (+) Decreased production cost, Altium Revenue vs FCT: -0.8% (-) Decreased uti
Slide 6: Quarterly Revenue Trends
QUARTERLY REVENUE TRENDS NON-GAAP (B yen) Automotive Industrial/Infrastructure/IoT Others 450 391.3 Revenue 379.4 400 2.9 368.7 361.9 359.7 2.3 351.8 358.8 YoY: -9.0% 2.8 345.3 2.6 2.2 2.2 QoQ: -3.8% 2.1 1.6 350 300 169.6 161.1 168.2 Automotive 159.2 172.0 178.2 190.4 250 185.5 YoY: +10.3% QoQ: -2.6
Slide 7: Quarterly Business Trends
QUARTERLY BUSINESS TRENDS NON-GAAP Gross Profit (Margin) Operating Profit (Margin) YoY: -2.1pts YoY: -6.4pts Gross Profit Gross Margin QoQ: -0.9pt Operating Profit Operating Margin QoQ: -2.3pts (B yen) (B yen) 200 60% 200 40% 57.4% 57.9% 56.7% 56.7% 34.7% 34.7% 35.0% 34.9% 150 56.0% 56.2% 56.4% 55.9
Slide 8: Inventory
INVENTORY In-House Inventory*1 Sales Channel Inventory*3 In-House Inventory/DOI (Financial Accounting Basis) (Management Accounting Basis*4) (Days) (Weeks) 3Q Results: Decreased DOI*2 WOI*5 WIP: Production based on demand, Increased die bank 120 18 FG/RM: Shipment and input based on demand 12 90 6
Slide 9: Front-End Utilization Rate and Capital Expenditures
FRONT-END UTILIZATION RATE*1 AND CAPITAL EXPENDITURES*2 FRONT-END UTILIZATION RATE CAPITAL EXPENDITURES (WAFER INPUT BASIS) (B yen) Capital Expenditures Total 6-inch line 8-inch line 12-inch line 100% 40 % Revenue Ratio 10.2% 80% 30 7.8% 60% 6.4% 5.6% 20 4.1% 40% 3.8% 3.9% 3.4% 10 20% 0% 0 4Q 1Q 2Q
Slide 10: 4Q and Full Year 2024 Forecast
4Q AND FULL YEAR 2024 FORECAST NON-GAAP 2023 2024 4Q (B yen) (Oct-Dec) Full year 4Q Full year 3Q Midpoint YoY QoQ (Jan-Dec) YoY (Oct-Dec) (Jan-Dec) (Jul-Sep) Forecast Forecast (Range)*1 278.5 -23.1% -19.3% 1,334.4 -9.2% Revenue 361.9 1,469.7 345.3 (±7.5) (±2.1pts) (±2.2pts) (±7.5) (±0.5pt) Revenue (
Slide 11: 4Q 2024 Revenue Forecast Breakdown
4Q 2024 REVENUE FORECAST BREAKDOWN (B-yen) 345.3 Yen Appreciation Inventory Reduction Sell-thru Decline Parts Supply Altium Stagnation Consolidation 278.5 3Q24 Results 4Q24 Forecast © 2024 Renesas Electronics Corporation. All rights reserved. Page 11
Slide 12: 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 12
Slide 13: Revenue and Gross Profit by Segment
REVENUE AND GROSS PROFIT BY SEGMENT*1 NON-GAAP 2023 2024 (B yen) 1Q 2Q 3Q 4Q Full-Year 1Q 2Q 3Q 9 months YoY QoQ YoY (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) (Jan-Sep) Revenue 359.7 368.7 379.4 361.9 1,469.7 351.8 358.8 345.3 -9.0% -3.8% 1,055.9 -4.7% Automotiv
Slide 14: Operating Profit and EBITDA by Segment
OPERATING PROFIT AND EBITDA*1 BY SEGMENT*2 NON-GAAP 2023 2024 (B yen) 1Q 2Q 3Q 4Q Full-Year 1Q 2Q 3Q 9 months YoY QoQ YoY (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Dec) (Jan-Mar) (Apr-Jun) (Jul-Sep) (Jan-Sep) Operating Profit 124.8 129.1 132.3 115.5 501.6 113.5 110.6 98.4 -33.9 -12.2 322.5 -63.7
Slide 15: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION GAAP (B yen) 23/3 23/6 23/9 23/12 24/3 24/6 24/9 Total Assets 2,840.8 3,123.5 3,292.2 3,167.0 3,233.7 3,661.6 4,138.9 Cash and Cash Equivalents*1 361.4 458.1 392.5 434.7 231.8 288.4 239.1 Inventories 188.2 177.9 177.8 163.1 171.4 178.1 173.1 Goodwill 1,272.3 1,392.4 1
Slide 16: GAAP / Non-GAAP Reconciliation
GAAP / NON-GAAP RECONCILIATION 2023 2024 (B yen) 3Q (Jul-Sep) Full-Year (Jan-Dec) 3Q (Jul-Sep) Gross Operating Net Gross Operating Net Gross Operating Net EBITDA EBITDA EBITDA Profit Profit Profit*1 Profit Profit Profit*1 Profit Profit Profit*1 Non-GAAP 219.8 132.3 108.3 152.6 837.4 501.6 432.9 581.
Slide 17: 3Q 2024 Consolidated Operating Profit
3Q 2024 CONSOLIDATED OPERATING PROFIT BRIDGE FROM NON-GAAP TO GAAP (B yen) Former-Intersil 98.4 PPA Effects Former-IDT PPA Effects Former-Dialog PPA Effects Other Stock-Based PPA Effects Compensation Others 57.2 Recurring Items Non-Recurring Items Non-GAAP GAAP © 2024 Renesas Electronics Corporation
Slide 18: 3Q 2024 Financial Snapshot (GAAP)
3Q 2024 FINANCIAL SNAPSHOT GAAP 2023 2024 (B yen) 3Q 9 months 2Q 3Q 9 months YoY QoQ YoY (Jul-Sep) (Jan-Sep) (Apr-Jun) (Jul-Sep) (Jan-Sep) Revenue 379.4 1,107.5 358.8 345.3 -9.0% -3.8% 1,055.9 -4.7% Gross Margin 57.9% 57.0% 56.0% 55.7% -2.2pts -0.3pt 55.9% -1.0pt Operating Profit 97.9 318.4 69.7 57.
Slide 19: Completion of Altium Acquisition
COMPLETION OF ALTIUM*1 ACQUISITION Financial impact PMI Acquisition Completion: August 1, 2024; consolidation PMI Progress starts from 3Q 2024 Altium CEO, Aram Mirkazemi, has assumed the role of Purchase price: Approximately AUD 9.1 billion Head of Software & Digitalization at Renesas Busine
Slide 20: Renesas at a Glance
RENESAS AT A GLANCE 2023 Highlight*1 Growth Trajectory*1 Revenue Gross Operating 1,500 (B yen) Margin Margin 60% Revenue Operating Margin FCF Margin 1,496.7 B yen 34.1% 25.8% 1,000 40% Gross Margin EBIDTA Margin EPS 500 20% 57.0% 40.0% 243.73 yen 0 0% 2019 2020 2021 2022 2023 Revenue Composition 203
Slide 21: 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