Slide 1: FY12/3 Q3 Financial Results
FY12/3 Q3 Financial Results Renesas Electronics Corporation January 31, 2012 Yasushi Akao, President © 2012 Renesas Electronics Corporation. All rights reserved.
Slide 2: Executive Summary
Executive Summary I. FY12/3 Q3 Financial Results Although sales were below our expectations due to worse market conditions and the impacts of Thailand’s flood, operating loss improved QoQ as a result of improved cost of sales and expense reduction II. FY12/3 Financial Forecasts Full-year net sal
Slide 3: I. FY12/3 Q3 Financial Results
I. FY12/3 Q3 Financial Results 3 © 2012 Renesas Electronics Corporation. All rights reserved.
Slide 4: Q3 Financial Snapshot
FY12/3 Q3 Financial Snapshot Semiconductor sales were 198.0 B yen, decreased by 9% QoQ due to weak demand deriving from downturn mainly in Europe and China and the impacts of Thailand’s flood Whereas, operating/net income (loss) improved QoQ by reducing cost of sales and expenses to partially of
Slide 5: Trends in Quarterly Results
Trends in Quarterly Results Though sales growth was suppressed by market downturn, profit and loss continuously improved overcoming earthquake impacts FY11/3 FY12/3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 (B yen) 292.0 295.4 275.2 275.3 Net Sales 243.3 222.9 207.2 Semi. 261.5 263.5 244.4 249.5 218.2 198.0 Sales 10.4
Slide 6: Q3 Semiconductor Sales by Business (1)
FY12/3 Q3 Semiconductor Sales by Business (1) Sales for consumer electronics, PC peripherals and industrial applications decreased in each 3 business segment owing to market slowdown mainly in Europe and China and Thailand’s flood impacts MCU business achieved revenue increase QoQ led by growth
Slide 7: Q3 Semiconductor Sales by Business (2)
FY12/3 Q3 Semiconductor Sales by Business (2) General-purpose MCUs decreased sales by 10% QoQ. Sales Automotive weakened more than expected mainly for consumer electronics and approx. industrial applications in Europe and China affected by financial crisis 55% MCU in Europe and monetary tightening
Slide 8: Q3 Operating Income (Loss) QoQ
FY12/3 Q3 Operating Income (Loss) QoQ Operating loss improved QoQ by improving production efficiency and reducing expenses such as SG&A to partially offset lower profit from sales decrease FY12/3 FY12/3 Q2 Q3 (B yen) Expense reduction measures -4.0 -SG&A* decreased +2.7 -10.1 Cost of sales improve
Slide 9: Balance Sheets
Balance Sheets As of Mar. 31, As of Sep. 30, As of Dec. 31, (B yen) 2011 2011 2011 Total Assets 1,145.0 917.7 901.7 Cash and Cash Equivalents 337.3 158.3 157.8 Inventories 123.4 138.6 157.7 Liabilities 854.0 679.9 665.4 Interest-Bearing Debt 378.2 265.6 263.3 Shareholder’s Equity 306.0 264.0 261.6 N
Slide 10: Cash Flows
Cash Flows Secured positive free cash flows for Q3 FY11/3 FY12/3 9 months 9 months (B yen) Q3 Cumulative Full-year Q1 Q2 Q3 Cumulative (Apr-Dec) (Apr-Dec) Cash Flows from Operating 53.9 86.9 102.5 -29.2 8.0 18.0 -3.1 Activities Cash Flows from Investing -39.0 -71.8 -95.8 -14.8 -17.8 -15.2 -47.7 Ac
Slide 11: II. FY12/3 Financial Forecasts
II. FY12/3 Financial Forecasts 11 © 2012 Renesas Electronics Corporation. All rights reserved.
Slide 12: Consolidated Financial Forecasts
FY12/3 Consolidated Financial Forecasts Lowered full-year financial forecasts for sales due to ongoing market downturn and Thailand’s flood impacts FY12/3 2H operating/net income (loss) are expected to be negative despite of production efficiency improvements and further expense reduction measur
Slide 13: 2H Semiconductor Sales Forecasts
FY12/3 2H Semiconductor Sales Forecasts (Comparison with the previous forecasts) Semiconductor sales are expected to decrease by 83.0 B yen from the previous forecasts due to a reduction of approximately 20.0 B yen for Thailand’s flood impacts, and weak demand driving from even worse market condit
Slide 14: 2H Operating Income (Loss) Forecasts
FY12/3 2H Operating Income (Loss) Forecasts (Comparison with the previous forecasts) Expect lower profit from sales and production decrease due to weak demand deriving from ongoing market downturn and Thailand’s flood FY12/3 2H operating loss is expected to be 18.8 B yen, despite of the further
Slide 15: Q4 Semiconductor Sales Forecasts
FY12/3 Q4 Semiconductor Sales Forecasts (QoQ Comparison) Sales for MCU and Analog & Power semiconductor are expected to be nearly flat QoQ due to ongoing weak demand mainly in general- purpose products followed by worse macro economy despite of steady demand for automotive applications SoC sales
Slide 16: Q4 Operating Income (Loss) Forecasts
FY12/3 Q4 Operating Income (Loss) Forecasts (QoQ Comparison) Much lower profit from production decrease owing to ongoing weak demand followed by adverse market conditions FY12/3 Q4 operating loss is expected to worsen to 14.8 B yen though the company will hold down expenses including R&D which a
Slide 17: Toward Business Recovery (1)
Toward Business Recovery (1) -Applications and Products Expected to Grow after FY13/3 Many applications with potential growth in FY13/3 market outlook Accelerate selection and focus of resources for these growing applications to achieve sales volume to secure profit FY13/3 Market Environment Oly
Slide 18: Toward Business Recovery (2)
Toward Business Recovery (2) -Strengthen MCUs and Power Devices Strengthen product lineups of MCUs and power devices for growing applications Launch 1,000 MCUs in 3 years for the Chinese market, planning to release approx. 700 products by the end of FY12/3 Launch 1,000 power devices centering
Slide 19: Toward Business Recovery (3)
Toward Business Recovery (3) -Business and Production Structural Measures Decided to withdraw from the large-sized display driver IC business which has been unprofitable due to structural changes of flat panel market including TVs Present Target Business Structure Display Driver Analog & Power Lar
Slide 20: Summary
Summary Q3 sales worsened from the previous forecasts due to market downturn though earnings improved QoQ Lowered the full-year forecasts for net sales and earnings, mainly owing to ongoing market downturn and the impacts of Thailand’s flood Continue to execute structural reform measures to co
Slide 21: (FOREWARD-LOOKING STATEMENTS)
(FOREWARD-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. We caution you in advance that actual r
Slide 22: Renesas Electronics Corporation
Renesas Electronics Corporation © 2012 Renesas Electronics Corporation. All rights reserved.