FINANCE

MAY 16, 2024
SHUHEI SHINKAISVP AND CFO
RENESAS ELECTRONICS CORPORATION© 2024 Renesas Electronics Corporation. All rights reserved.

Non-GAAPPROGRESS TO DATE
Peak and trough*1(yen)(oku yen)
4,000

Revenue

EPS*2

300

(10.1%)

20%

3,000

200
2,000
0

4Q 2022

1Q 2024
10060%

Grossmargin(2.6%pts)
055%

2Q 20222021

4Q 2022

2022

2023

*1: Company data, Quarterly basis. Period: from 1Q 2022 to 1Q 2024, Trough is the lowest figure after Peak, *2: Net income for the year divided by the average number of ordinary shares (excl. treasury shares) during the year

© 2024 Renesas Electronics Corporation. All rights reserved.

2

6x BREAK DOWN – 2023 ACTIONS
3xValuation

Execution of mid-term planb-2

Naka 40nm MCUCapexaTakasaki SiC

Wolfspeed CRD*1 / WSA*2
Panthronics

M&ATransphorm

Valuation gap-fill

b-1

2023

Downcycle management

b-1

2022
Market cap

2xScaleShareholder return

Dividend

Buyback

OthersINCJ exit

Nikkei 225

Multiple expansionb-2

Digitalizationa*1: Customer Refundable Deposit, *2: Wafer Supply Agreement© 2024 Renesas Electronics Corporation. All rights reserved.

Inventory management

3Altium acquisition

Non-GAAP

MID-TERM MODEL
2019

2020

2021

2022

2023

Mid-term model*1

Adjusted*1

6,204

6,357

8,894

12,282

11,648

Grow
@SAM+

Gross
margin

43%

48%

54%

56%

57%

55%

Operatingmargin

12%

19%

29%

35%

32%

30%

Revenue(oku yen)*1: FX $1 = 100yen, €1 = 120yen. Excluding 6” fab shutdown & structural reform-related EOLs. Excluding NREs

© 2024 Renesas Electronics Corporation. All rights reserved.

4REVENUE GROWTH
Revenue(okuyen)25,000Long-term
RenesasCAGR vs SAM

Automotive

RenesasControl
20,000Automotive

Infotainment
ADAS15,00010,000Growthdrivers

Automotive control

Scalability

xEV

Infotainment

IIoT

ADAS

Software / Tool

Industrial

xEV

Portfolio

Industrial, Infra and IoT
5,000

Industrial

Infra
IoT

02023

2030

* FX $1 = 100yen, €1 = 120yen© 2024 Renesas Electronics Corporation. All rights reserved.

5

Scalability / UX

Infra

Integration

IoT

Attach / UX

Non-GAAPMARGINS MODEL
Gross margin
IIoT
growthUtilization

Powergrowth

Productivity

Outsource& others

56%

Emphasis on growthLong term

1H 2024 adj.*1

Operating margin
Efficiency gains
VolumeGM change

SG&A

R&D30%

1H 2024 adj.*1Long term

*1: FX $1 = 100yen, €1 = 120yen. Excluding 6” fab shutdown & structural reform-related EOLs. Excluding NREs

© 2024 Renesas Electronics Corporation. All rights reserved.

6

Operating leverage

CAPITAL ALLOCATION POLICY
Operatingcash flow

Capex

5% ofrevenue
on ave.
Deleverage
Net <1xin 3 years
Dividend
Strategicinvestment(incl. buyback)© 2024 Renesas Electronics Corporation. All rights reserved.

7

Phasedincrease to30+% ofFCF

ALTIUM – VALUE CREATION FRAMEWORKValuePlatform

Longer time frame

Revenue synergy
Cost synergy

Track records

Deleverage

Day 1© 2024 Renesas Electronics Corporation. All rights reserved.

~3years~6years

8Time

Further upside

MODEL HOUSE KEEPING
Revenue growth

SAM+

Gross margin

55%

R&D %

≈16%

SG&A %≈8%

Operating margin

30%

EBITDA margin40%
15~20%Tax rate
Capital expenditures

5% as mid-term average

Inventory

120 days

FCF margin

20~30%Net leverage<1.0x in mid-term© 2024 Renesas Electronics Corporation. All rights reserved.

96x BREAK DOWN – NEAR TERM PRIORITIES3xValuation

ab-2

Execution of mid-term plan
▪ Maximizing scale benefit

Valuation gap-fillb-1

b-1

2023

▪ Capital allocation▪ Addressing overhang concern

2022
Market cap2xb-2

Scalea© 2024 Renesas Electronics Corporation. All rights reserved.

▪ Secular growth10

Multiple expansion▪ Digitalization

THANK YOU© 2024 Renesas Electronics Corporation. All rights reserved.

11

(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 discussionsof strategy, plans or intentions. These statements discuss future expectations, identify strategies, contain projections of our results ofoperations or financial condition, or state other forward-looking information based on our current expectations, assumptions, estimates andprojections 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 materiallyfrom 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 themarketplace; our ability to continue to win acceptance of its products and services in these highly competitive markets; and movements incurrency exchange rates, particularly the rate between the yen and the U.S. dollar. Among other factors, a worsening of the w orld economy, aworsening 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 understoodthat subsequent developments may affect the information contained in this presentation, which neither we nor our advisors orrepresentatives are under an obligation to update, revise or affirm.

© 2024 Renesas Electronics Corporation. All rights reserved.

12