Renesas Electronics Corporate Presentation

© 2021 Renesas Electronics Corporation. All rights reserved.

RENESAS ELECTRONICSCORPORATE PRESENTATION

APRIL 2021


WHO WE ARERenesas Electronics Corporation is a global semiconductor companydelivering trusted embedded design innovation with complete semiconductor solutions that enable billions of connected, intelligent devices to enhance the way people work and live.

A global leader in microcontrollers, analog, power, and SoC products, Renesas provides comprehensive solutions for a broad range of automotive, industrial, infrastructure, and IoT applications that help shape a limitless future.

SoC: System-on-a-chip

Headquarters

Tokyo, Japan

~ 19,000employees

Operating in

28 countries

Approx. 20,000patents & pending applications

715.7 billion yenrevenue in 2020


OUR HISTORYRenesas is built on a strong historical foundation of technological innovation originating from Hitachi, Mitsubishi and NEC.Fueled by the Intersil and IDT integrations, Renesas is now poised to extend its share in fast-growing data economy-related markets such as infrastructure and data center, and strengthen its presence in the industrial and automotive segments.

IDT: Integrated Device Technology

Renesas Electronics started operationNEC Electronics and Renesas Technology merged

2010

NEC ElectronicsSpin-off from NEC

2002

Renesas TechnologySpin-off from Hitachi and Mitsubishi merger

2003

Acquisition of IDTExpanded the analog solution lineup and strengthen kit solution offerings

2019

Renesas Electronics10th Anniversary

2020 20212013

Investment by INCJ

Acquisition of IntersilStrengthen leadership in the analog market

2017


OUR PURPOSETo Make Our Lives Easier

by complementing human capabilities


GLOBAL SALES NETWORK Global sales network operating across more than 20 countries Comprehensive R&D capabilities and support through a global network

Sales CompaniesHeadquarters

Branch officesDesign and Application Technologies Companies

US: Silicon ValleyMilpitasSan Jose

Canada: Ottawa

Brazil: Sao Paulo

Germany: Duesseldorf

India: Bangalore

MalaysiaSingapore

BeijingKoreaShanghaiTaipeiHong Kong Toyosu, Tokyo

Israel

As of January 1, 2021


GLOBAL MANUFACTURING NETWORK 14 manufacturing facilities in Japan, China, Southeast Asia, and the US Global partners such as TSMC and GLOBALFOUNDRIES

US: Palm bay

NakaTakasakiShigaYamaguchiSaijoKawashiri

BeijingSuzhou

Malaysia(2 plants) Yonezawa

OitaKumamoto-Nishiki

Manufacturing sites (Back-end: 7)Manufacturing and Engineering Services Companies

Manufacturing sites (Front-end: 7)

As of January 1, 2021


LEADERSHIP TEAMEXECUTIVE STRUCTURE

Hidetoshi ShibataRepresentative Director, President and CEO

Jason HallSVP & CLOProcurement, Legal, Information Systems,SCM

Shinichi YoshiokaSVP & CTO

Shuhei ShinkaiSVP & CFOCorporate Strategy & FinanceAccounting & ControlHR & General Affairs

*1: Chairman, Renesas Electronics (China) / *2: President, Renesas Electronics America CEO: Chief Executive Officer / EVP: Executive Vice President / GM: General Manager / SVP: Senior Vice President / CTO: Chief Technical Officer / CFO: Chief Financial Officer / CLO: Chief Legal Officer

Roger WendelkenSVPMCU Business

Hiroto NittaSVPSoC Business

Chris AllexandreSVPSales and Corporate Digital Marketing

Sailesh ChittipeddiEVP *2 / GM

IoT and Infrastructure Business Unit

Takeshi KataokaSVP / GM

Tomomitsu MaokaSVP *1Deputy GM

Automotive Solution Business Unit

As of April 1, 2021

Masahiko NozakiEVP / GM

Production and Technology Unit


SOLUTION OFFERINGSOur mission is to develop a safer, healthier, greener, and smarter world by providing intelligence to our four focus growth segments: Automotive, Industrial, Infrastructure, and IoT that are all vital to our daily lives, meaning our products and solutions are embedded everywhere.

Highly reliable vehicle control, safe and secure autonomous driving and

Eco-friendly electric vehicles

Automotive

Lean, flexible and smart industry

Industrial

Robust infrastructure, enabling

safety and efficiency

Infrastructure

Comfortable, safe and healthy lifestyles

through IoT

IoT


CORE TECHNOLOGIESRenesas is poised to address the requirements of every industry with our four pillars of core technologies AI, Security & Safety, Digital & Analog & Power Solution and Cloud Native as the key to encouraging more innovation that is finely-tuned to achieve future sustainable growth.

INNOVATION

Digital & Analog & Power Solution Winning Combinations that combine ourcomplementary product portfolios

AIA broad set of high-power and

energy-efficient embedded processors

Security & SafetyComprehensive technology and support

that meet the industry’s stringent standardsCloud NativeCross-platforms working with partnersin different verticals and organizations


WHAT WE DORenesas delivers a vast array of semiconductor products, from sensors to actuators, across the whole signal chain to help our customers realize complete system solutions.

Sense

Sensor (optical, flow, humidity, gas, CO2, temperature, thermopile)

Sensor signal conditioner (“SSC”)

Move / Store

Timing Optical Memory interface High bandwidth

memory (“HBM”) NVDIMM BLE 5.0 NB IoT 6LoWPAN RF, RF for 5G

Compute

ADAS/AD platform Gateway DRP / e-AI MCU MPU SoC

Actuate

Motor solution OIS servo-controller PMIC BMIC SOTB Low Iq Wireless power IGBT / MOSFET

Focus verticals

Automotive

Industrial

Infrastructure

IoT


Automotive products

BROAD AND SCALABLE PRODUCT PORTFOLIO

Analog products Clocks & timing Interface & connectivity Memory & logic Power & Power management RF products Sensor products Space & harsh environment

Sensors Power Management Power Devices Battery Management

Analog and Power Devices

Clocks & Timing Video & Display Interface

Arm® Cortex®-M 32-bit MCUsArm ecosystem, Advanced security, Intelligent IoT

Arm®-based High-end 32 & 64-bit MPUsHigh-resolution HMI, Industrial network & real-time control

Arm® Cortex®-M0+ Ultra-low Power 32-bit MCUsInnovative process tech (SOTB), Energy harvesting

Ultra-low Energy 8 & 16-bit MCUsBluetooth® Low Energy, SubGHz, LoRa®-based Solutions

High Power Efficiently 32-bit MCUsMotor control, Capacitive touch, Functional safety, GUI

40nm/28nm process Automotive 32-bit MCUsRich functional safety and embedded security features

Arm®-based 32-bit MCUs for Qualified Platform Qualified software and tools

Microcontrollers & Microprocessors

Arm® Core

Renesas Core

SoC and others

Factory automation

Car information systems

Safe cognitive computing


WINNING COMBOSBased on Renesas‘ complementary product portfolios, our product experts have developed “Winning Combinations,”compelling, competitive, value-added combinations that help our customers and partners worldwide accelerate their designs and get to market faster where high data-processing performance is crucial.

Appliances

Automotive

Building Safety & Security

Computing & Data Center

Connected & Infotainment

Factory Automation & Control

Fitness & Personal Care

FPGA Solutions

Gaming & Entertainment

Grid Infrastructure

HVAC

Medical Equipment & Solutions

Motor Drives

Network Communications

Office Automation

PC, Notebooks, & Tablets

Robotics

Test & Measurement

Wearables

Wireless Infrastructure

xEV

Analog + Power + Embedded Processing

https://www.renesas.com/application/winning-combinations


1000+ globally

SoftwareTool Component Manufacturing TrainingDesign

ROBUST ECOSYSTEMThousands of alliance partners - a network of trained and certified design service partners - support every stage in your customers' design cycles, working together to achieve goals. Renesas’ Preferred Partner Program and other product-specific partner programs offer opportunities to create new business. We also have consortiums that specialize in the automotive and industrial fields.


SUSTAINABILITY AT RENESASSustainability is at the heart of what we do. Renesas’ products and solutions are contributing to a long-term sustainable society. At Renesas, we will continue to focus on making lives easier across all our local communities.

Environment

Eco-factory Eco-product Communications

Governance

Board of directors / auditors

Nomination / compensation committeesxEV, Energy-efficient home

appliances / Building automation

Products and solutions contributing to a sustainable society

ADAS / AD, Smart factory

Social

Energy Efficiency Safety & Security

Visit Renesas.com/sustainability


LEADERSHIP TEAMCORPORATE GOVERNANCE STRUCTURE

Tetsuro Toyoda, Outside Director Jiro Iwasaki, Outside Director Selena Loh LaCroix, Outside Director Arunjai Mittal, Outside Director Noboru Yamamoto, Outside Director

Board of Directors

Kazuki Fukuda, Corporate Auditor (full-time) Kazuyoshi Yamazaki, Outside Corporate Auditor (part-time) Takeshi Sekine, Outside Corporate Auditor (part-time) Tomoko Mizuno, Outside Corporate Auditor (part-time)

Auditors

Jiro Iwasaki (Committee Chairman)

Selena Loh LaCroix Arunjai Mittal Noboru Yamamoto Shuhei Shinkai

Nomination Committee

Selena Loh LaCroix (Committee Chairman)

Hidetoshi Shibata Noboru Yamamoto Tomoko Mizuno Shuhei Shinkai

Compensation Committee

As of April 1, 2021

Hidetoshi ShibataRepresentative Director, President and CEO


RENESAS CULTURE

The leadership team's strategy and policy, the company’s current situation, as well as the issues and thoughts of each business organization should be well understood among employees.

Transparent

In order to respond to changes in a timely manner, we should identify the likely outcomes and implications as quickly as possible, make decisions quickly, and rapidly take or correct actions, and act at a high velocity.

Agile

It is essential for us to have a global perspective. We should facilitate communication not only through improved language skills, but also through the use of other methods such as the use of numbers and data.

Global

Each and every one of our employees should embody “Innovation” using their imagination and creativity to improve their work and contribute to the realization of a better society.

Innovative

Individual employees should act professionally, voluntarily, and independently as if they are "running their own business” and are responsible for the results they deliver.

Entrepreneurial


FINANCIAL HIGHLIGHTS

(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 statements do not represent any guarantee by management of future performance. In many cases, but not all, we use such words as “aim,” “anticipate,” “believe,” “continue,” “endeavor,” “estimate,” “expect,” “initiative,” “intend,” “may,” “plan,” “potential,” “probability,” “project,” “risk,” “seek,” “should,” “strive,” “target,” “will” and similar expressions to identify forward-looking statements. You can also identify forward-looking statements by discussions of strategy, plans or intentions. These statements discuss future expectations, identify strategies, contain projections of our results of operations or financial condition, or state other forward-looking information based on our current expectations, assumptions, estimates and projections about our business and industry, our future business strategies and the environment in which we will operate in the future. Known and unknown risks, uncertainties and other factors could cause our actual results, performance or achievements to differ materially from those contained or implied in any forward-looking statement, including, but not limited to: general economic conditions in our markets, which are primarily Japan, North America, Asia and Europe; demand for, and competitive pricing pressure on, our products and services in the marketplace; our ability to continue to win acceptance of its products and services in these highly competitive markets; and movements in currency exchange rates, particularly the rate between the yen and the U.S. dollar. Among other factors, a worsening of the world economy, a worsening of financial conditions in the world markets, and a deterioration in the domestic and overseas stock markets, would cause actual results to differ from the projected results forecast.

This presentation is based on the economic, regulatory, market and other conditions as in effect on the date hereof. It should be understood that subsequent developments may affect the information contained in this presentation, which neither we nor our advisors or representatives are under an obligation to update, revise or affirm.


2020 FULL-YEAR FINANCIAL RESULTIFRS*1 & NON-GAAP *2

Revenue breakdown by application (FY20)

Revenue 715.7 715.7

Gross Profit 335.7 (47%) 338.7 (47%)

EBITDA*3 206.7 (29%) 223.2 (31%)

Operating Profit 65.1 (9%) 137.5 (19%)

Depreciation and Amortization 141.5 (20%) 85.7 (12%)

Profit attributable to ownersof the parent 45.6 (6%) 111.5 (16%)

FY20 (B yen) IFRS Non-GAAP

( ): Margin

*1: 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 the International Financial Reporting Standards (“IFRS”) starting from the annual securities report for FY2018/12.*2: Non-GAAP figures are calculated by removing or adjusting non-recurring items and other adjustments from GAAP (IFRS based) figures following a certain set of rules. The Group believes non-GAAP measures provide useful information in understanding and evaluating the Group’s constant business results, and therefore results are provided in non-GAAP base. This adjustment and exclusion include the amortization of intangible assets recognized from acquisitions, other PPA (purchase price allocation) adjustments and costs relating to acquisitions, stock-based compensation, as well as other non-recurring expenses and income the Group believes to be applicable. *3: EBITDA: Operating income + depreciation and amortization + amortization of long-term period expenses

Automotive48%

Industrial, Infra and IoT51%

IoT 18%

Infra 13%

Industrial 19%

Others 1%


4Q/FULL-YEAR 2020 FINANCIAL SNAPSHOTIFRS, NON-GAAP *1*2

(B yen)

2019 2020

4Q(Oct-Dec)

Full Year(Jan-Dec)

3Q(Jul-Sep)

4Q(Oct-Dec)Forecast

4Q(Oct-Dec)

ActualYoY QoQ

Change from Oct 29 FCT*3

Full Year(Jan-Dec)

ActualYoY

Change from Oct 29 FCT*3

Revenue 192.0 718.2 178.7 183.0to 191.0 191.6 -0.2% +7.2% +2.4% 715.7 -0.4% +0.6%

Gross Margin 45.1% 42.9% 47.5% 47.0% 47.0% +2.0pts -0.5pt +0.0pt 47.3% +4.4pts +0.0pt

Operating Profit/loss (Margin)

31.4(16.4%)

92.5(12.9%)

36.5(20.4%)

34.6(18.5%)

37.2(19.4%)

+5.8(+3.1pts)

+0.7(-1.0pt)

+2.6(+0.9pt)

137.5(19.2%)

+45.1(+6.3pts)

+2.6(+0.2pt)

Profit/loss Attributable to Owners of Parent 21.4 75.9 33.6 - 24.2 +2.8 -9.4 - 111.5 +35.6 -

EBITDA*4 56.0 192.9 57.3 - 57.5 +1.4 +0.2 - 223.2 +30.4 -

1 US$= 108 yen 109 yen 107 yen 104 yen 105 yen 3 yenappreciation

2 yenappreciation

1 yendepreciation 107 yen 2 yen

appreciation0 yen

depreciation

1 Euro= 119 yen 123 yen 123 yen 123 yen 124 yen 5 yendepreciation

1 yen depreciation

1 yen depreciation 121 yen 1 yen

appreciation0 yen

depreciation

YoY and QoQ revenue as well as the changes from FCTs of the revenue are rounded off to one decimal place.

*1: Non-GAAP figures are calculated by removing or adjusting non-recurring items and other adjustments from GAAP (IFRS based) figures following a certain set of rules. The Group believes non-GAAP measures provide useful information in understanding and evaluating the Group’s constant business results, and therefore results are provided in non-GAAP base. This adjustment and exclusion include the amortization of intangible assets recognized from acquisitions, other PPA (purchase price allocation) adjustments and costs relating to acquisitions, stock-based compensation, as well as other non-recurring expenses and income the Group believes to be applicable. *2: Following the acquisition of IDT and the absorption type merger of IDT with Renesas Electronics America Inc., since January 1, 2020, the Group has begun the integration of business processes and IT systems, etc. as part of the “One Renesas” promotion. With these processes as a momentum, expense classifications have been revised in order to appropriately display the Group’s financial status and business performance. Changes in classifications have been applied retroactively; therefore, the consolidated financial results of the year ended December 31, 2019 have been reclassified. *3: Each figure represents comparisons of the midpoint in the sales revenue forecast range. *4: Operating Profit + Depreciation and amortization


SHAREHOLDER COMPOSITION

*1: NEC (35.46%), HITACHI (30.62%), MITSUBISHI (25.05%)*2: NEC (8.9%), HITACHI (7.7%), MITSUBISHI (6.3)*3: TOYOTA (2.5%), Nissan (1.5%), DENSO (0.5%), CANON (0.3%), Panasonic (0.3%), YASKAWA Electric (0.1%). In Feb. 2015, NIKON sold all shares (0.3% quota) distributed through the third-party allotment. In Feb. 2016, KEIHIN sold all shares (0.5% quota) distributed through the allotment. *4: HITACHI (5.6%), MITSUBISHI (4.5%), NEC (6.4%) NEC shares Includes shares held by Japan Trustee Services Bank held as NEC’s pension and severance payments Trust Account.

*5: In May 2017, NISSAN sold all shares (1.5% quota) distributed through the allotment.*6: In Mar. 2018, INCJ sold 4.5% quota to DENSO among its 50.1% shareholding of Renesas common shares as of the end of Feb. 2018.*7: HITACHI (3.5%), MITSUBISHI (4.3%), NEC (4.1%), NEC shares includes shares held by Custody Bank of Japan held as NEC’s pension and severance payments Trust Account.*8: DENSO (8.8%), TOYOTA (2.8%), CANON (0.2%), Panasonic (0.2%)

April 2010 – September 2013

Former 3 parent companies91.1%*1

Others8.9%

March 2017

INCJ, Ltd.69.2%


6 business companies5.1%*3

Others3.0%

Third-party Allotment (1,500 billion yen)

Sep 30, 2013

March 2018


5 businesscompanies8.1%*5, *6

Others29.8%

Secondary Offering(Approx. 4.2 billion stocks)

Jun 20, 2017

INCJ, Ltd. 45.6% *6

December 2020

INCJ, Ltd. 32.1%

Former 3 Parentcompanies11.9%*7

4 businesscompanies12.0%*8

Others44.0%

Apr 26, 2018

Secondary Offering (Approx. 2.7 billion stocks)


COMPANY DATA

Company Name Renesas Electronics Corporation

Headquarters TOYOSU FORESIA, 3-2-24 Toyosu, Koto-ku, Tokyo 135-0061, Japan

Capital Stock 28,971 million yen

Established November 1, 2002 (Started Operation on April 1, 2010)

Major Operations Research, development, design, manufacture, sale, and servicing of semiconductor products

Employee 18,753 (Consolidated, as of December 31, 2020)

Representative Director Hidetoshi Shibata, Representative Director, President and CEO

Stock Code Tokyo Stock Exchange, First Section (Since July 24, 2003, TSE:6723)

Website www.renesas.com

http://www.youtube.com/RenesasPresents

https://www.linkedin.com/company/renesas

https://www.facebook.com/RenesasElectronics

https://www.renesas.com/img/icon-logos/chinese-footer/wechat-qrcode.jpg

https://www.renesas.com/twitter


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