© 2021 Renesas Electronics Corporation. All rights reserved.
RENESAS ELECTRONICSCORPORATE PRESENTATION
APRIL 2021
© 2021 Renesas Electronics Corporation. All rights reserved. Page 2
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
© 2021 Renesas Electronics Corporation. All rights reserved. Page 3
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
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OUR PURPOSETo Make Our Lives Easier
by complementing human capabilities
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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
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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
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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
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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
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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
© 2021 Renesas Electronics Corporation. All rights reserved. Page 10
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
© 2021 Renesas Electronics Corporation. All rights reserved. Page 11
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
© 2021 Renesas Electronics Corporation. All rights reserved. Page 12
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
© 2021 Renesas Electronics Corporation. All rights reserved. Page 13
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.
© 2021 Renesas Electronics Corporation. All rights reserved. Page 14
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
© 2021 Renesas Electronics Corporation. All rights reserved. Page 15
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
© 2021 Renesas Electronics Corporation. All rights reserved. Page 16
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
© 2021 Renesas Electronics Corporation. All rights reserved. Page 17
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.
© 2021 Renesas Electronics Corporation. All rights reserved. Page 18
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%
© 2021 Renesas Electronics Corporation. All rights reserved. Page 19
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
© 2021 Renesas Electronics Corporation. All rights reserved. Page 20
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%
Former 3 parent companies22.8%*2
6 business companies5.1%*3
Others3.0%
Third-party Allotment (1,500 billion yen)
Sep 30, 2013
March 2018
Former 3 parent companies16.5%*4
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)
© 2021 Renesas Electronics Corporation. All rights reserved. Page 21
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
© 2021 Renesas Electronics Corporation. All rights reserved.
Renesas.com
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