Renesas Electronics Corporation · TSE:6723
Renesas Electronics — Q1 2024 Earnings Presentation
21 slides from Renesas Electronics's earnings presentation, Apr 24, 2024
Slide 1: 1Q 2024 Presentation
1Q 2024 PRESENTATION RENESAS ELECTRONICS CORPORATION APRIL 25, 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: 1Q 2024 Financial Snapshot
1Q 2024 FINANCIAL SNAPSHOT NON-GAAP 2023 2024 (B yen) 1Q 1Q 1Q 4Q Change from (Jan-Mar) (Jan-Mar) YoY QoQ (Jan-Mar) (Oct-Dec) Feb 8 FCT*1 Forecast Actual 345.0 Revenue 359.7 361.9 351.8 -2.2% -2.8% +2.0% (±7.5) Revenue (Excluding Foreign - - - - -8.2% -2.7% +0.2% Exchange Impact) Gross Margin 56.2%
Slide 5: 1Q 2024 Revenue and Gross / Operating Margin
1Q 2024 REVENUE AND GROSS / OPERATING MARGIN NON-GAAP vs FCT Industrial / Company Total Automotive Revenue： Infrastructure / IoT Gross Margin： (+) Increased utilization, Decreased production cost Revenue 351.8 B yen 178.2 B yen 171.6 B yen (-) Worsen product mix vs FCT: +2.0% vs FCT: + vs FCT: +
Slide 6: Quarterly Revenue Trends
QUARTERLY REVENUE TRENDS NON-GAAP (B yen) Automotive Industrial/Infrastructure/IoT Others 450 387.6 391.3 Revenue 377.1 379.4 400 3.0 2.9 368.7 361.9 2.9 359.7 2.3 351.8 YoY: -2.2% 2.8 2.2 QoQ: -2.8% 2.6 2.1 350 300 157.8 169.6 163.8 161.1 168.2 Automotive 159.2 172.0 178.2 YoY: +11.9% 250 QoQ: +3.6
Slide 7: Quarterly Business Trends
QUARTERLY BUSINESS TRENDS NON-GAAP Gross Profit (Margin) Operating Profit (Margin) YoY: +0.5pt YoY: -2.4pts Gross Profit Gross Margin QoQ: +0.3pt Operating Profit Operating Margin QoQ: +0.4pt 200 58.6% 57.9% 60% 200 38.5% 40% 57.0% 57.4% 36.8% 56.2% 56.4% 56.7% 150 56.0% 150 34.7% 34.7% 35.0% 34.9%
Slide 8: Inventory
INVENTORY In-House Inventory Sales Channel Inventory*2 In-House Inventory/DOI (Financial Accounting Basis) (Management Accounting Basis*3) 1Q Results: Increased (Days) DOI*1 (Weeks) WOI*4 WIP: Die bank expansion, 120 18 Advance purchase from OS 12 FG/RM: Shipments based on demand 90 6 2Q Forecas
Slide 9: Front-End Utilization Rate and Capital Expenditures
FRONT-END UTILIZATION RATE AND CAPITAL EXPENDITURES*1 FRONT-END UTILIZATION RATE CAPITAL EXPENDITURES (WAFER INPUT BASIS) （B yen） 39.4% Capital Expenditures Total 6-inch line 8-inch line 12-inch line 150 Investment to restart Kofu Fab operation 100% % Revenue Ratio 60 80% 50 60% 40 30 7.8% 40% 5.1%
Slide 10: 2Q 2024 Forecast
2Q 2024 FORECAST NON-GAAP 2023 2024 2Q (B yen) (Apr-Jun) 1H 2Q 1H 1Q Midpoint YoY QoQ (Jan-Jun) YoY (Apr-Jun) (Jan-Jun) (Jan-Mar) Forecast Forecast (Range)*1 355.0 -3.7% +0.9% 706.8 -3.0% Revenue 368.7 728.4 351.8 (±7.5) (±2.0pts) (±2.1pts) (±7.5) (±1.0pt) Revenue (Excluding - - - - -8.6% +0.4% - -
Slide 11: 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 11
Slide 12: 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 YoY QoQ (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Dec) (Jan-Mar) Revenue 359.7 368.7 379.4 361.9 1,469.7 351.8 -2.2% -2.8% Automotive 159.2 161.1 168.2 172.0 660.4 178.2 +11.9% +3.6% Industrial, 197.8 204.8
Slide 13: 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 YoY QoQ (Jan-Mar) (Apr-Jun) (Jul-Sep) (Oct-Dec) (Jan-Dec) (Jan-Mar) Operating Profit 124.8 129.1 132.3 115.5 501.6 113.5 -11.3 -2.0 (Margin) (34.7%) (35.0%) (34.9%) (31.9%) (34.1%) (32.3%) (-2.4pts) (+0.4p
Slide 14: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION GAAP (B yen) 23/3 23/6 23/9 23/12 24/3 Total Assets 2,840.8 3,123.5 3,292.2 3,167.0 3,233.7 Cash and Cash Equivalents*1 361.4 458.1 392.5 434.7 231.8 Inventories 188.2 177.9 177.8 163.1 171.4 Goodwill 1,272.3 1,392.4 1,436.0 1,362.1 1,453.8 Intangible Assets 466.9 483
Slide 15: GAAP / Non-GAAP Reconciliation
GAAP / NON-GAAP RECONCILIATION 2023 2024 (B yen) 1Q (Jan-Mar) Full Year (Jan-Dec) 1Q (Jan-Mar) 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 202.0 124.8 107.5 144.3 837.4 501.6 432.9 581.
Slide 16: 1Q 2024 Consolidated Operating Profit Bridge from Non-GAAP to GAAP
1Q 2024 CONSOLIDATED OPERATING PROFIT BRIDGE FROM NON-GAAP TO GAAP （B yen） 150 Former-Intersil PPA Effects Former-IDT 113.5 PPA Effects Former-Dialog PPA Effects 100 Other Stock-Based PPA Effects Compensation Others 77.8 Recurring Items Non-Recurring 50 Items 0 Non-GAAP GAAP © 2024 Renesas Electroni
Slide 17: 1Q 2024 Financial Snapshot (GAAP)
1Q 2024 FINANCIAL SNAPSHOT GAAP 2023 2024 (B yen) 1Q 4Q 1Q YoY QoQ (Jan-Mar) (Oct-Dec) (Jan-Mar) Revenue 359.4 361.9 351.8 -2.1% -2.8% Gross Margin 55.7% 56.2% 56.1% +0.4pt -0.1pt Operating Profit 123.3 72.4 77.8 -45.4 +5.5 (Margin) (34.3%) (20.0%) (22.1%) (-12.2pts) (+2.1pts) Profit Attributable to
Slide 18: Renesas Breakdown of Revenue
RENESAS BREAKDOWN OF REVENUE 2023 Revenue by segment 2023 Revenue by product From production-based to customer/application based Power Management changed from Analog to Power Old New Old New Info Info 車載情報 30% - 車載情報 30% + 30% - 30% + Automotive Automotive MCU MCU 45% - 45% - Control Control 車載制御 65
Slide 19: 2023 Revenue Composition
2023 REVENUE COMPOSITION Automotive Industrial, Infra and IoT Control Info Industrial Infra IoT 65% 30% + 45% 20% - 35% + Total SoC, 10% + MCU, 20% MCU, 40% - MCU, 45% - MCU, 55% SoC, 10% + MCU, 70% - Analog, 70% - Analog, 25% + SoC, 15% - SoC, 50% - SoC, 15% - SoC, 5% - Analog, 25% - Analog, 15% -
Slide 20: Highlights
HIGHLIGHTS Altium*1 Acquisition Build OSAT in India Kofu Factory Reopening Transaction Value: Approx. A$9.1b Overview: CG*2(India), Renesas Overview: Renesas reopened the and Stars Microelectronics*3 Kofu Factory in April 2024 as a 300- Closing: 2H of 2024 (Thailand) to establish a Joint mm
Slide 21: 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