Slide 1: 3Q 2022 Presentation
3Q 2022 PRESENTATION RENESAS ELECTRONICS CORPORATION OCTOBER 26, 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: 3Q 2022 Financial Snapshot
3Q 2022 FINANCIAL SNAPSHOT NON-GAAP 2021 2022 (B yen) 3Q 3Q Change 9 months Change 3Q 9 months 2Q (Jul-Sep) (Jul-Sep) YoY QoQ from Jul 28 (Jan-Sep) YoY from Jul 28 (Jul-Sep) (Jan-Sep) (Apr-Jun) Forecast Actual FCT*1 Actual FCT*1 384.0 Revenue 258.4 680.0 377.1 387.6 +50.0% +2.8% +0.9% 1,111.4 +63.4%
Slide 5: Quarterly Revenue Trends
QUARTERLY REVENUE TRENDS NON-GAAP Revenue (B yen) 387.6 377.1 YoY: +50.0% 400 Automotive Industrial/Infrastructure/IoT Others 3.0 QoQ: +2.8% 346.7 2.9 350 314.4 3.0 3.3 Automotive 300 258.4 157.8 YoY: +30.1% 163.8 QoQ: -3.7% 217.9 4.5 153.9 250 203.7 131.6 191.6 178.7 166.7 178.7 4.9 3.8 200 3.5 121
Slide 6: 3Q 2022 Revenue and Gross/Operating Margin
3Q 2022 REVENUE AND GROSS/OPERATING MARGIN NON-GAAP 4 Operating Margin vs FCT +2.3pts Industrial / Automotive Infrastructure / Company Total Revenue IoT Gross Margin vs FCT: +0.5pt Currency Impact Product Mix 157.8 B yen 226.8 B yen 387.6 B yen Production Recovery Revenue Production Costs, etc. vs F
Slide 7: In-House Inventory (Financial Accounting Basis) and DOI
IN-HOUSE INVENTORY (FINANCIAL ACCOUNTING BASIS) AND DOI*1*2 Automotive Industrial/Infrastructure/IoT Company Total Inventory Target DOI DOI Inventory DOI Inventory DOI Including Dialog (B yen) (Days) (B yen) (Days) (B yen) (Days) Including Celeno 120 120 120 120 200 120 90 90 90 90 150 90 DOI 60 60
Slide 8: Sales Channel Inventory (Management Accounting Basis) 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) Including Dialog 150 18 150 12 240 Including Celeno 12 100 12 100 8 160 8 WOI
Slide 9: Inventory Analysis
INVENTORY ANALYSIS In-House Inventory Sales Channel Inventory＿ 3Q 4Q Outlook 3Q 4Q Outlook Raw • Forex impact Materials • Inventory valuation • Inventory valuation update update • Continued Industrial response to end- Infrastructure • Response to end- market demand Work • Continuous BCM IoT market d
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 2Q 3Q 2020 2021 2022 *1: Utilization rates are calculated by excluding the 6-inch line capacity of the Shiga Factor
Slide 11: 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 *3 144.9 165.2 163.4 138.7 155.2 140 150 111.2 40% 110 119.4 128.3 89.6 120 82.4 73.4 75.
Slide 12: 4Q 2022 Forecast
4Q 2022 FORECAST NON-GAAP 2021 2022 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)*1 385.0 +22.4% -0.7% 1,496.4 +50.5% Revenue 314.4 994.4 387.6 (±4.0) (±1.3pts) (±1.0pt) (±4.0) (±0.4pt) Gross Margin 54.3% 53.2% 5
Slide 13: 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 13
Slide 14: Revenue and Gross Profit by Segment
REVENUE AND GROSS PROFIT BY SEGMENT NON-GAAP 2021 2022 (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 203.7 217.9 258.4 314.4 994.4 346.7 377.1 387.6 +50.0% +2.8% 1,111.4 +63.4% Automotive
Slide 15: Operating Profit and EBITDA by Segment
OPERATING PROFIT AND EBITDA*1 BY SEGMENT NON-GAAP 2021 2022 (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 52.6 61.4 83.9 98.7 296.6 135.5 145.3 142.8 +59.0 -2.5 423.7 +225.8 (Marg
Slide 16: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION GAAP (B yen) 21/3 21/6 21/9 21/12 22/3 22/6 22/9 Total Assets 1,688.1 1,942.7 2,354.1 2,426.3 2,598.7 2,840.3 3,013.3 Cash and Cash Equivalents*1 243.6 504.8 223.0 221.9 267.2 247.9 310.1 Inventories 86.6 94.4 135.0 137.8 155.5 173.3 190.7 Goodwill 631.6 630.9 1,044.0
Slide 17: GAAP / Non-GAAP Reconciliation
GAAP / NON-GAAP RECONCILIATION*1 2022 Full-Year 2021 (Jan-Dec) 3Q (Jul-Sep) 3Q (Jul-Sep) (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 142.7 83.9 62.9 103.6 528.9 296.6 222.2 375.4 220.
Slide 18: 3Q 2022 Consolidated Operating Profit Bridge from Non-GAAP to GAAP
3Q 2022 CONSOLIDATED OPERATING PROFIT BRIDGE FROM NON-GAAP TO GAAP （B yen） Former-Intersil 150 142.8 PPA Effects Former-IDT PPA Effects Former-Dialog PPA Effects Former-Celeno Stock-Based PPA Effects Others 117.9 Compensation 100 Recurring Items Non-Recurring Items 50 0 Non-GAAP GAAP © 2022 Renesas
Slide 19: 3Q 2022 Financial Snapshot (GAAP)
3Q 2022 FINANCIAL SNAPSHOT GAAP 2021 2022 (B yen) 3Q 9 months 2Q 3Q 9 months YoY QoQ YoY (Jul-Sep) (Jan-Sep) (Apr-Jun) (Jul-Sep) (Jan-Sep) Revenue*1 258.3 679.9 376.6 387.1 +49.9% +2.8% 1,110.0 +63.3% Gross Margin 52.3% 49.7% 57.9% 56.8% +4.6pts -1.0pt 57.3% +7.6pts Operating Profit 51.5 117.1 110.2
Slide 20: Capital Expenditures
CAPITAL EXPENDITURES*1*2 （B yen） 150 60 40% Capital Masks and Tools Sales Ratio 16.3% 50 Excluding Fire*3 Recovery Response Investment to restart Kofu Fab operation Kofu Factory 39.4% 30% 40 Investments eligible for subsidies from METI*4 30 20% 20 13.8% 10% 10.3% 10 8.2% 9.2% 5.2% 5.1% 3.5% 2.4% 2.6
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