Renesas Electronics : Industrial, Infrastructure and IoT strategy

INDUSTRIAL, INFRASTRUCTURE AND IOT

STRATEGY UPDATE

SEPTEMBER 29, 2021

SAILESH CHITTIPEDDI, EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER

CHRIS ALLEXANDRE, SENIOR VICE PRESIDENT

ROGER WENDELKEN, SENIOR VICE PRESIDENT

IOT AND INFRASTRUCTURE BUSINESS UNIT

RENESAS ELECTRONICS CORPORATION

© 2021 Renesas Electronics Corporation. All rights reserved.

AGENDA

 Industrial, Infrastructure and IoT: Driving Growth and
Operational Leverage for Renesas	Sailesh Chittipeddi
 Sales Strategy & Outlook	Chris Allexandre
 Major Technology Trends and Product Portfolio Update	Sailesh Chittipeddi
 Update on Areas Highlighted at Previous Analyst Day
− MCU	Roger Wendelken
− MPU, Industrial Analog & Power, Memory Interface, ORAN	Sailesh Chittipeddi
 Targeting New Verticals for Growth
 Updated LT Financial Model for IIBU
 Summary

© 2021 Renesas Electronics Corporation. All rights reserved.

2

IIBU FINANCIAL TRENDS AT A GLANCE

2019, 2021: ■ 1Q - 3Q Act, ■ 4Q Act | 2021: ■ 1Q - 2Q Act, ■ 3Q guidance

(mm$)

4,000

3,000

2,000

1,000

0

(mm$)

4,000

3,000

2,000

1,000

0

		Revenue
	870		928		15%
					CAGR		1,155
2,427	2,708			2,035
2019	2020			2021 (1-3Q)
			EBITDA

282		305		31%
					CAGR		474
		985
	723				758
2019	2020			2021 (1-3Q)

(mm$)

4,000

3,000

2,000

1,000

0

(mm$)

4,000

3,000

2,000

1,000

0

Gross profit

487		537		23%
					CAGR		718
1,293	1,554			1,238
2019	2020			2021 (1-3Q)
		Operating income

178	214	55%
			CAGR
			395
							595
412
2019	2020			2021 (1-3Q)

© 2021 Renesas Electronics Corporation. All rights reserved.

3

IIBU GROWTH A SNAPSHOT 2019-2021

IoT	Industrial	Infrastructure

(mm$)			14%	(mm$)
1,500	4Q	4Q	CAGR	1,500
1,000				1,000

500		500

	4%	(mm$)
	1,500
	CAGR	12%
4Q	4Q
1,000	CAGR
		4Q
		4Q
		500

0									0								0
2019	2020			2021	2019	2020	2021	2019	2020	2021
								1-3Q*1								1-3Q*1								1-3Q*1
			SoC		MCU			Analog				SoC		MCU		Analog				SoC		MCU		Analog
*1: 2021 Revenue /1Q-2Q actual and 3Q guidance
© 2021 Renesas Electronics Corporation. All rights reserved.					4

SALES STRATEGY & OUTLOOK

© 2021 Renesas Electronics Corporation. All rights reserved.