Slide 1: 1Q 2023 Presentation
1Q 2023 PRESENTATION RENESAS ELECTRONICS CORPORATION APRIL 27, 2023 © 2023 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: 1Q 2023 Financial Snapshot
1Q 2023 FINANCIAL SNAPSHOT NON-GAAP 2022 2023 (B yen) 1Q 1Q 1Q 4Q Change from (Jan-Mar) (Jan-Mar) YoY QoQ (Jan-Mar) (Oct-Dec) Feb 9 FCT*1 Forecast Actual 355.0 Revenue 346.7 391.3 359.7 +3.7% -8.1% +1.3% (±7.5) Revenue (Excluding Foreign Exchange - - - - -6.3% -2.5% +0.8% Impact) Gross Margin 58.4%
Slide 5: Quarterly Revenue Trends
QUARTERLY REVENUE TRENDS NON-GAAP Revenue (B yen) 391.3 YoY: +3.7% Automotive Industrial/Infrastructure/IoT Others 387.6 400 377.1 QoQ: -8.1% 3.0 2.9 359.7 2.9 346.7 2.6 350 314.4 3.0 Automotive 3.3 300 157.8 169.6 YoY: +9.3% 258.4 163.8 QoQ: -0.8% 4.5 153.9 168.3 250 217.9 131.6 203.7 4.9 3.8 200 1
Slide 6: 1Q 2023 Revenue and Gross/Operating Margin
1Q 2023 REVENUE AND GROSS/OPERATING MARGIN NON-GAAP 4 Operating Margin vs FCT +2.2pts Industrial / Automotive Infrastructure / Company Total Revenue IoT Gross Margin vs FCT: +1.7pts Currency Impact Product Mix 168.3 B yen 188.8 B yen 359.7 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) AND WOI*2 FY2023 BUDGET RATE BASE 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*3 5
Slide 9: Inventory Analysis
INVENTORY ANALYSIS In-House Inventory Sales Channel Inventory＿ 4Q22 → 1Q23 1Q → 2Q Outlook 4Q22 → 1Q23 1Q → 2Q Outlook Raw Materials • Maintenance of • BCM response appropriate inventory level • Shipment adjustment in anticipation of • Increase in inventory Work Industrial softening demand level Inf
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 2021 2022 2023 *1: Utilization rates are calculated by excluding the 6-inch line capacity of the Shiga Factory (clo
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: -2.2pts YoY: -4.4pts (B yen) QoQ: +0.2pt (B yen) QoQ: +0.0pt Gross Profit 240.0 60% Operating Profit Gross Profit Margin 220.9 220.9 219.1 240.0 50% Operating Profit Margin 210.0 202.3 20
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) Cash flows from operating activities (B yen) EBITDA 170 Cash flows from investing activities*2 EBITDA margin 180 50% Free cash flows *3 144.9 165.2 163.4 138.7 155.2 155.5 140 150 144.3 40% 111.2 110 128.3 106.2 119.4 89.6
Slide 13: 2Q 2023 Forecast
2Q 2023 FORECAST NON-GAAP 2022 2023 2Q (B yen) (Apr-Jun) 1H 2Q 1H 1Q Midpoint YoY QoQ (Jan-Jun) YoY (Apr-Jun) (Jan-Jun) (Jan-Mar) Forecast Forecast (Range)*1 360.0 -4.5% +0.1% 719.7 -0.6% Revenue 377.1 723.8 359.7 (±7.5) (±2.0pts) (±2.1pts) (±7.5) (±1.0pt) (Excluding Foreign - - - - -8.7% +0.1% - -
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. © 2023 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 YoY QoQ (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Dec) (Jan-Mar) Revenue 346.7 377.1 387.6 391.3 1,502.7 359.7 +3.7% -8.1% Automotive 153.9 163.8 157.8 169.6 645.0 168.3 +9.3% -0.8% Industrial, 189.8 210.4 226
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 YoY QoQ (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Dec) (Jan-Mar) Operating Profit 135.5 145.3 142.8 135.7 559.4 124.8 -10.8 -10.9 (Margin) (39.1%) (38.5%) (36.8%) (34.7%) (37.2%) (34.7%) (-4.4pts) (+0.0pt
Slide 17: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION GAAP (B yen) 22/3 22/6 22/9 22/12 23/3 Total Assets 2,598.7 2,840.3 3,013.3 2,812.5 2,840.8 Cash and Cash Equivalents*1 267.2 247.9 310.1 336.1 361.4 Inventories 155.5 173.3 190.7 188.0 188.2 Goodwill 1,159.3 1,294.6 1,373.6 1,264.3 1,272.3 Intangible Assets 532.0 559
Slide 18: GAAP / Non-GAAP Reconciliation
GAAP / NON-GAAP RECONCILIATION*1 2023 Full-Year 2022 (Jan-Dec) 1Q (Jan-Mar) 1Q (Jan-Mar) (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 202.3 135.5 90.2 155.2 863.2 559.4 377.3 639.2 202
Slide 19: 1Q 2023 Consolidated Operating Profit Bridge from Non-GAAP to GAAP
1Q 2023 CONSOLIDATED OPERATING PROFIT BRIDGE FROM NON-GAAP TO GAAP （B yen） 150 Former-Intersil Former-IDT 124.8 PPA Effects Others 123.3 PPA Effects Former-Dialog PPA Effects Former-Celeno Former-Reality AI Former-Steradian Stock-Based PPA Effects PPA Effects PPA Effects Compensation 100 Recurring I
Slide 20: 1Q 2023 Financial Snapshot (GAAP)
1Q 2023 FINANCIAL SNAPSHOT GAAP 2022 2023 (B yen) 1Q 4Q 1Q YoY QoQ (Jan-Mar) (Oct-Dec) (Jan-Mar) Revenue 346.3 390.8 359.4 +3.8% -8.0% Gross Margin 57.1% 55.8% 55.7% -1.5pts -0.2pt Operating Profit 99.8 96.2 123.3 +23.4 +27.1 (Margin) (28.8%) (24.6%) (34.3%) (+5.5pts) (+9.7pts) Profit Attributable t
Slide 21: 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% 10% 10.3% 10 8.2% 9.2% 7.8% 5.2% 5.1% 4.1% 0 0
Slide 22: Acquisition of Panthronics
ACQUISITION OF PANTHRONICS Overview of Panthronics Rationale Company Name Panthronics AG Expand Connectivity Portfolio • Continue strengthening connectivity portfolio, following Headquarters Graz, Austria Dialog & Celeno acquisitions, to further meet customer needs Development and sale of semiconduc
Slide 23: 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