Renesas Electronics Corporation · TSE:6723

Renesas Electronics — Investor Day (February 2020)

48 slides from Renesas Electronics's investor day presentation, Feb 17, 2020

Slide 1: Automotive Strategy
＜表紙サンプル＞産業制御システム向け AUTOMOTIVE STRATEGY RZ/G セキュリティソリューションの紹介 IEC 62443-4-2認証取得に向けて FEBRUARY 17, 2020 AUTOMOTIVE BUSINESS SOLUTION UNIT RENESAS ELECTRONICS CORPORATION © 2020 Renesas Electronics Corporation. All rights reserved.
Slide 3: Megatrends – From Needs to Market Change
MEGATRENDS – FROM NEEDS TO MARKET CHANGE Environmentally Safety & Comfortable & End-user needs friendly security convenient Zero emissions Zero accidents Zero stress Technological innovation Electrified Automated Connected Efficient power management High-performance processing Secure, safe end to cl
Slide 4: Megatrend – Architecture Transformation
MEGATREND – ARCHITECTURE TRANSFORMATION TODAY - Distributed architecture TOMORROW - Centralized architecture Vehicle Level Gateway Domain control Simple actuator  Increasing hardware varieties  Scalable and easy to develop hardware  Increasing lines of code in vehicle  Reusable software  Ineffi
Slide 5: 2016 Mid-Term Growth Strategy Review
2016 MID-TERM GROWTH STRATEGY REVIEW Result New guiding principle  Short fall in GM  Optimize fab utilization Profitability  Excessively optimistic Fab utilization  High added value solution transition Design in  Accumulation of a mountain of D-in  Select high confidence business (D-in)  Low
Slide 6: Prospect of D-in to Revenue Conversion
PROSPECT OF D-IN TO REVENUE CONVERSION D-in LTV D-in to revenue conversion (oku-yen) Impact on actual OEM adoption Quality of business wins & 9,000 profit portfolio improvement From D-in 2020- 8,000 From D-in 2015-2019 Expansion in growth 7,000 Existing segment 6,000 5,000 4,000 3,000 2,000 1,000 0
Slide 7: Target Financial Model
Non-GAAP TARGET FINANCIAL MODEL 2019 Adjusted* Long-term target* Revenue 3,330 oku-yen Grow @SAM Gross margin < 40%** 40 - 45% Operating margin < 10% 10 - 15% * FX 1USD=100yen, 1EUR=120yen. Continuing business only ** After reclassification (part of SG&A reclassified to CoGs and R&D) © 2020 Renesas
Slide 8: Portfolio Expansion by Market Growth Driver
Legacy segments Growth driver PORTFOLIO EXPANSION BY MARKET GROWTH DRIVER Long Term Long Term Market growth CAGR CAGR Renesas revenue ($m) CAGR 8% Total 8% ADAS 17% 35% 44% xEV ~36,000 18% Gateway/ 10% 26% 23% DCU* Vehicle 3% Control 65% 56% 90% 74% Information 4% 2019 Long term market 2019 Long ter
Slide 9: Value Proposition
VALUE PROPOSITION Scalable & Reusable assets & Open Platform Open accelerating time to market Automotive safety & Long-term commitment Trusted to customer End point computing & Power consumption Innovative suitable for mass production © 2020 Renesas Electronics Corporation. All rights reserved. 9
Slide 10: Our Footprint
OUR FOOTPRINT Market share in Auto MCU/SoC (2018) Revenue by region (2018) ADAS + Information 27% Powertrain 33% ROW North America Japan Chassis & Safety China xEV 21% Body 28% 32% Europe Source: Renesas estimate based on Strategy Analytics data © 2020 Renesas Electronics Corporation. All rights res
Slide 11: Our Competitors
OUR COMPETITORS Higher Emerging segments Big scale & growth segments 1 ADAS/AD Required Performance 3 Gateway 2 xEV DCU Big scale segment Vehicle Power distribution control network Lower Digital Analog & Power 1 New competitors enter ADAS/AD 3 Existing proven players waiting on sidelines 2 Old rival
Slide 12: How We Win - Growth Strategy
Biz domain Biz foundation Growth segment HOW WE WIN - GROWTH STRATEGY Higher Expand processor growth Sensing Camera ADAS/AD Radar / Lidar AD ECU 2 Expand MSIG & Power growth Required Performance Gateway Gateway BMIC* DCU DCU xEV PMIC* IGBT 1 Reinforce biz foundation 2 Power distribution IPD* Vehicle
Slide 13: How We Win - System-Level & End-to-End Solution
Stable segments Growth segments HOW WE WIN - SYSTEM-LEVEL & END-TO-END SOLUTION Sense Compute Actuate Lidar Sensor Fusion Radar & Cognitive ADAS/AD Domain controller Camera V2X Cockpit & HMI Display Gateway Connected Integrated cockpit Driver monitor & Domain controller ぐ Cluster Car Audio Informati
Slide 14: How We Win – Winning Combinations
HOW WE WIN – WINNING COMBINATIONS ADAS/AD Radar/ AHL* Information Lidar SOC PMOS IPD  R car V  R car H/M/E VSP* Timing Gateway/ DCU MCU GDU*  RH850 IGBT BMIC  RL78 SSC*/ Vehicle BLDC* POS* control Sip PMIC Digital Analog & Power *AHL: Automotive HD Link / VSP: Video Signal Processor / GDU: Gate
Slide 15: How We Win – #1 Product Scalability
HOW WE WIN – #1 PRODUCT SCALABILITY Processor platform Competitor A B C E D OEM ADAS/AD … R car V Scalable & Reusable HW & SW SoC Information - R car M Gateway - - - R car S Cluster - - - RH850 D MC Powertrain - - RH850E Processor vendor Tier1 U 32bit Chassis - - … RH850P Body - - RH850F Co-developm
Slide 18: ADAS/AD System Trend
ADAS/AD SYSTEM TREND More cars with sensors, more sensors per car, more high-performance processors # of sensors C x12 R x9 L x1 U x8~12 C x6 R x5 U x8~12 C Camera C x2 R Radar R x1 L Lidar U Ultrasonic U x8~12 Level2 Level3 Level4-5 No Driver Partial Conditional High Full Automation Assistance Auto
Slide 19: ADAS/AD Growth Outlook
ADAS/AD GROWTH OUTLOOK Long Term Long Term Market growth CAGR CAGR Renesas revenue ($m) CAGR 17% Total 17 % FC* 14% SVS* 13% ~5,000 AD 74% Radar/Lidar 11% 2019 Long term market 2019 Long term target *FC: Front Camera / SVS : Surround View System Source: Strategy Analytics data ,SAM defined by Renesa
Slide 20: How We Win - Expanding ADAS/AD Product Portfolio
HOW WE WIN - EXPANDING ADAS/AD PRODUCT PORTFOLIO ⁃ Launching camera and cognitive mass production for major Tier1s/OEMs ⁃ Expanding Radar/Lidar by combination R-Car Digital Processors and IDT Analog products Sense Compute Actuate No.1 share Camera Electric Motor AD Gateway Radar Driving (Engine) Gat
Slide 21: Digital & Analog Value for Radar/Lidar
DIGITAL & ANALOG VALUE FOR RADAR/LIDAR Radar Lidar Front / Side / Rear Premium MMIC MMIC LCA3 Scalable MCU / SoC Platform MMIC MMIC Under 250m distance (depending on Imaging Development peripheral) e.g. Adaptive Cruise Control MMIC MMIC MMIC MMIC LRR LCA2 3 x LCA2 (MMIC) devices per module MMIC Exte
Slide 22: How We Win - Scalability for SW Development
HOW WE WIN - SCALABILITY FOR SW DEVELOPMENT ADAS/AD PF maximizes customer SW reuse across ADAS applications Scalable ADAS/AD PF across applications CV* CNN* GPU ADAS HW Engines Change # of Engine x4 x8 x1 CPU CV CNN GPU ARM CPUs Change # of CPU x8 x2 x4 x1 CPU CV CNN Ethernet PCIe x1 x2 CAN x4 Commu
Slide 23: How We Win - Low Power Consumption with R-Car
HOW WE WIN - LOW POWER CONSUMPTION W/ R-CAR Providing the best in class saves cooling cost and AI performance / watt Liquid cooling Fan cooling AI Performance / watt VS Competitor > x3 Competitor 1 More cost competitive Less space and weight More fuel efficient © 2020 Renesas Electronics Corporation
Slide 25: E/E Architecture Trending Towards CASE
E/E ARCHITECTURE TRENDING TOWARDS “C A S E” Connected Gateway and DCU to play key role for “C A S E” implementations Map Data, OTA Services Comm. Connected Connected Gateway module Gateway Data processing & routing Domain layer ADAS Information DCU DCU I/F between network and the real world ECU / Ac
Slide 26: DCU & Gateway Growth Outlook
DCU & GATEWAY GROWTH OUTLOOK Long Term Long Term Market growth CAGR CAGR Renesas revenue ($m) CAGR RMS 1 4% 4% Total ~20,000 RMS 1 Gateway & DCU 23% Vehicle Control 3% 2019 Long term market 2019 Long term target Source: Strategy Analytics data ,SAM defined by Renesas © 2020 Renesas Electronics Corpo
Slide 27: How We Win - Growth Strategy for DCU & Gateway
HOW WE WIN - GROWTH STRATEGY FOR DCU & GATEWAY Enhancing our footprint in Gateway & DCU with wide Automotive portfolio across MCU & SoC, with strong RH850 Software assets in Vehicle Controller market Automotive SoC experience Big footprint in Vehicle Control in Information and ADAS Renesas Body and
Slide 28: How We Win - Software Scalability
HOW WE WIN - SOFTWARE SCALABILITY ⁃ Automotive Software > 100,000,000 Lines of code ⁃ R-CAR and RH850 Software scalability to reduce OEM/Tier1's Software development cost Within generation From generation to Within application Across application generation ADAS/AD R-CAR V R-CAR 45~60% Information H/
Slide 29: Business Foundation on DCU & Gateway
BUSINESS FOUNDATION ON DCU & GATEWAY Continuously winning the new opportunities in DCU and Gateway Major D-in in 2019 DCU Gateway Major OEM’s gateway controller for 2021 Standard MCU platform for Connected Gateway start of production major tier1s Controller (SoC) (at multiple Tier1s) Cross Domain (m
Slide 31: Analog and Power Market Outlook
ANALOG AND POWER MARKET OUTLOOK Automotive Analog & Power semiconductor market continues to grow driven by higher semiconductor content for CASE+E/E architecture trend ($m) CAGR Market Drivers Others  Growth of high voltage power discrete market driven by electrification of Power 9% vehicles  Dive
Slide 32: New Capabilities Gained Through Acquisition
NEW CAPABILITIES GAINED THROUGH ACQUISITION Analog/Mixed Signal product portfolio complements signal chain and supports to establish end-to- end solution Sense Compute Actuate Solution Examples Radar/ Radar/Lidar SoC PMIC Lidar xEV Position Sensor MCU BMIC Information Timing MCU VSP © 2020 Renesas E
Slide 33: Solution Capability to Business Model Enhancement
SOLUTION CAPABILITY TO BUSINESS MODEL ENHANCEMENT End-to-end solution capability enables “Deeper” and “Broader” transformation of business model Large Customers with Small Customers with Strong Engineering Limited Engineering Capability Capability “Broader” Single Conventional Component Business Mod
Slide 34: New Growth Model
NEW GROWTH MODEL Leveraging digital product footprint and enhancing business model to accelerate growth Broader Market Solution Driver X Capability X Customer Base “CASE +E” Reach Expansion Faster More Market CAGR $ Content Access Leveraging processor footprint © 2020 Renesas Electronics Corporation
Slide 35: Analog & Power Product Line Up
ANALOG & POWER PRODUCT LINE UP Rich analog and power products to cover growing application fields Application Domains Chassis ADAS Information Powertrain xEV Safety Body PMIC AHL VSP BMIC Timing IC SSC Radar/Lidar Wireless POS Charging IC GDU IGBT MOSFET IPD © 2020 Renesas Electronics Corporation. A
Slide 36: Functionality Enhancement by Semiconductor
FUNCTIONALITY ENHANCEMENT BY SEMICONDUCTOR As vehicles are equipped with more sophisticated functions, more semiconductor content is necessary $ content increase % with Analog and Power Driver Monitoring +30% Steer by Wire +200%  SoC  MCU  PMIC  IPD  Timing IC  Position Sensor Surround View +6
Slide 37: Winning Combinations – Video Signaling
WINNING COMBINATIONS – VIDEO SIGNALING Flexible and robust connectivity enabled by AHL can provide system level benefit for video camera attached system MCU Digital Overall Solution Total Benefit for Customers Camera PMIC PMIC RH850 Analog Power Value:  Low-Cost Cable and Connectors SoC AHL Tx AHL
Slide 38: xEV Market Outlook
xEV MARKET OUTLOOK Forecasts for high-voltage Inverter in China and EU, MHEV in China are upward adjusted 2024 xEV production*  Most market research companies 30,000 have adjusted forecasts for xEV upward. 25,000  More confidence for the xEV China market outlook EU Production [kUnit] 20,000 North
Slide 39: xEV System Architecture and Solution Offering
xEV SYSTEM ARCHITECTURE AND SOLUTION OFFERING Inverter On-Board Charger BMS Gate IGBT / MOS Cell MOSFET Position driver F1x, U2Ax IGBT Monitor sensor MCU Gate MOS MCU driver Diode IPS2550 PMIC R2A25110 RH850/ C1M-A, RAA270000 R2A25110 AE4 IGBT U2Bx ISL78434 ANM2 MOS DC/DC ISL78714 Controller Gate IG
Slide 40: Winning Combinations – Battery Management
WINNING COMBINATIONS – BATTERY MANAGEMENT High accuracy of BMIC is enhanced by combination with MCU for vehicle level simulation Digital Combination Value: Analog Power Total Benefit for Customers  Shorten Design TAT Fan  Proven Board- 12V Level Accuracy Pump BMIC IPD  Vehicle Level Battery cells
Slide 41: xEV Market Potential for Power Discrete
xEV MARKET POTENTIAL FOR POWER DISCRETE xEV market growth brings proliferation of new application for power discrete Power Discrete Market Size Power Discrete Product Strength ($m) Plug-in HEV Company A Power Discrete CAGR Company B ~19% Mild Hybrid Power Discrete Company C Full HEV Power Discrete ~
Slide 42: 48V System Trend
48V SYSTEM TREND Battery-driven vehicles are creating new market for 48V: new requirement for Analog & Power Benefit of 48V 48V traction Mechanical Mechanical toto Electric: Electric:  Higher efficiency for Replacement of 48V turbo Electric Vehicle (Low current) mechanical drive or hydraulic HVAC 
Slide 43: xEV Inverter Solution
xEV INVERTER SOLUTION MCU capability creates additional value for strong IGBT product feature MCU Gate Driver IGBT  Powertrain Platform MCU  Switching loss reduction,  Higher current (350A/cm2),  >100,000rpm with EMU/ RDC reducing cooling cost lower loss  Built-in dual RDC and  Higher-voltage(
Slide 44: Winning Combinations - xEV Inverter
WINNING COMBINATIONS- xEV INVERTER Sensor embedded feature of IGBT is enhanced by MCU’s system optimization for thermal management Digital Combination Value: Total Benefit for Customers Analog Power  Shorten Design PMIC Gate driver IGBT IGBT IGBT Motor TAT  More Accurate MCU X6 Thermal RH850 Manag
Slide 45: Solution Capability for xEV Main Inverter
SOLUTION CAPABILITY FOR xEV MAIN INVERTER Combination of MCU, IGBT and Driver expertise can provide the optimal solution at system level Size 11.25L, 200A [L] 10 3.9L, 100kW 4.9L, 400A 400V/800A(500ARMS) 2.9L, 600A 5 0.9L, 400A 0 20 40 60 80 100 Power [kW] © 2020 Renesas Electronics Corporation. All
Slide 46: Position Sensing
POSITION SENSING Thin, Light, Cost Effective, Field Immune Rotation Narrow Angle Linear Slider x5 to x10 thinner Motor control Pedal / Handle Fuel / Oil / Fluid x2 to x100 Gauge lighter Cost Effective  No magnet Total Stray Field  No resolver immune Dial Valve control Gear Selector  Can reduce nu
Slide 47: Analog and Power Growth Outlook
ANALOG AND POWER GROWTH OUTLOOK By leveraging market drivers and Renesas strengths, Analog product revenue to outgrow the market, while Power Discrete growth is offset by planned EOL CAGR Analog Power 9% Total EOL IGBT: 11% Power 6% MOSFET: 7% Analog 13% 2019 Long term target © 2020 Renesas Electron

Renesas Electronics — Investor Day (February 2020) on 6ix

Renesas Electronics — Investor Day (February 2020)

Slide 1: Automotive Strategy

Slide 2: Overall

Slide 3: Megatrends – From Needs to Market Change

Slide 4: Megatrend – Architecture Transformation

Slide 5: 2016 Mid-Term Growth Strategy Review

Slide 6: Prospect of D-in to Revenue Conversion

Slide 7: Target Financial Model

Slide 8: Portfolio Expansion by Market Growth Driver

Slide 9: Value Proposition

Slide 10: Our Footprint

Slide 11: Our Competitors

Slide 12: How We Win - Growth Strategy

Slide 13: How We Win - System-Level & End-to-End Solution

Slide 14: How We Win – Winning Combinations

Slide 15: How We Win – #1 Product Scalability

Slide 16: Digital

Slide 17: ADAS

Slide 18: ADAS/AD System Trend

Slide 19: ADAS/AD Growth Outlook

Slide 20: How We Win - Expanding ADAS/AD Product Portfolio

Slide 21: Digital & Analog Value for Radar/Lidar

Slide 22: How We Win - Scalability for SW Development

Slide 23: How We Win - Low Power Consumption with R-Car

Slide 24: Domain Control Unit (DCU) & Gateway

Slide 25: E/E Architecture Trending Towards CASE

Slide 26: DCU & Gateway Growth Outlook

Slide 27: How We Win - Growth Strategy for DCU & Gateway

Slide 28: How We Win - Software Scalability

Slide 29: Business Foundation on DCU & Gateway

Slide 30: Analog & Power

Slide 31: Analog and Power Market Outlook

Slide 32: New Capabilities Gained Through Acquisition

Slide 33: Solution Capability to Business Model Enhancement

Slide 34: New Growth Model

Slide 35: Analog & Power Product Line Up

Slide 36: Functionality Enhancement by Semiconductor

Slide 37: Winning Combinations – Video Signaling

Slide 38: xEV Market Outlook

Slide 39: xEV System Architecture and Solution Offering

Slide 40: Winning Combinations – Battery Management

Slide 41: xEV Market Potential for Power Discrete

Slide 42: 48V System Trend

Slide 43: xEV Inverter Solution

Slide 44: Winning Combinations - xEV Inverter

Slide 45: Solution Capability for xEV Main Inverter

Slide 46: Position Sensing

Slide 47: Analog and Power Growth Outlook

Slide 48: © 2020 Renesas Electronics Corporation. All rights reserved.