Renesas Electronics Corporation · TSE:6723
Renesas Electronics — NEC Electronics — Q3 FY08/3 Earnings Presentation
20 slides from Renesas Electronics's earnings presentation, Jan 28, 2008
Slide 1: FY08/3 Q3 Financial Results and Outlook
FY08/3 Q3 Financial Results and Outlook Hank Sato Senior Vice President and CFO January 28, 2008 NEC Electronics Corporation http://www.necel.com/ir/en/ 1
Slide 2: Agenda
Agenda I. FY08/3 Q3 Financial Results 9Attained operating profit following Q2 results, mainly by diligent fixed cost reduction. II. FY08/3 Full-Year Forecasts 9Expect to see weaker demand in Q4, however, committed to secure operating profit for 2H and aim for further improvement in financial perform
Slide 3: I. Q3 FY08/3 Financial Results
I. Q3 FY08/3 Financial Results II. FY08/3 Full-Year Forecasts 3
Slide 4: Financial Snapshot
Financial Snapshot FY08/3 Q3, 12/31 9M cumulative (B yen) Actual YoY QoQ Actual YoY Net Sales 170.8 -7.1 -6.6 521.8 +0.9 Semiconductor Sales 163.7 -7.4 -5.4 497.8 -1.1 Operating Income 3.0 +6.8 -1.1 4.9 +15.6 Income Before Income Taxes 1.6 +5.1 +0.3 3.5 +12.6 Net Income (Loss) -0.9 +4.8 +0.8 -4.0 +9
Slide 5: Trends in Quarterly Results
Trends in Quarterly Results (B Yen) Net 191.2 sales 185.6 177.8 177.9 177.4 170.3 171.4 173.6 170.8 Semicon 181.2 165.3 165.9 166.8 165.2 179.1 162.7 Sales 169.7 171.1 169.1 146.1 162.0 165.0 163.7 160.7 158.7 160.0 158.1 160.8 156.8 140.3 Op. Margin 8.2% 8.1% Op. 15.5 15.2 Income Expensed Structura
Slide 6: Semiconductor Sales by Platform (YoY)
Semiconductor Sales by Platform (YoY) (B Yen) 200 YoY 171.1 -4% 163.7 +/- Factors 160 SoC SoC +) EMMA™ products for digital AV, LSIs for 70.4 -10% DVD drives (blue laser) 63.7 120 -) LSIs for digital cameras, and digital baseband LSIs for mobile handsets MCU MCU 80 42.5 +6% +) Growth in automotive a
Slide 7: Semiconductor Sales by Platform (QoQ)
Semiconductor Sales by Platform (QoQ) (B Yen) 200 QoQ 169.1 -3% 163.7 +/- Factors 160 SoC SoC +) EMMA™ products for digital AV, LSIs 64.9 -2% for game consoles 63.7 -) LSIs for digital cameras, digital 120 baseband LSIs for mobile handsets MCU MCU 80 46.1 -3% +) Growth in automotive MCUs 44.9 -) Inv
Slide 8: Semiconductor Sales by Application
Semiconductor Sales by Application YoY QoQ (B Yen) 171.1 169.1 163.7 163.7 Communications 17.1 Communications 23.6 -34% 15.6 15.6 -8% Decline in small LCD driver ICs Decline in LSIs for mobile phones Computing & Peripherals 30.1 32.6 Computing & Peripherals 31.8 30.1 -5% -7% Decline in LSIs for prin
Slide 9: Factors in Operating Profits/Losses
Factors in Operating Profits/Losses (B Yen) YoY QoQ Semiconductor Semiconductor Sales -7.4 Sales -5.4 171.1 163.7 169.1 163.7 +)Reduced fixed costs incl. depreciation +) Decreased manufacturing related -) Decreased sales fixed costs (Exchange impact US$1 = 118 yen to 114 yen) +) Better yields for so
Slide 10: Factors in Operating Profits/Losses (9 Months Cumulative Base)
Factors in Operating Profits/Losses (9 Months Cumulative Base) (B Yen) YoY -1.1 498.9 497.8 Semiconductor Sales +) Reduced depreciation from efficient investments +) Cut manufacturing related fixed costs +) Reduced other fixed costs incl. personnel costs -) Decreased sales, lower utilization rates (
Slide 11: Balance Sheet
Balance Sheet (B Yen) Dec.31, 2006 Sept. 30, 2007 Dec.31, 2007 Cash and Cash Equivalents 212.6 191.4 188.9 Accounts Receivable 105.1 100.3 92.6 Inventories 85.5 80.2 81.1 PP&E 309.2 282.5 273.8 Other Assets 39.3 33.6 31.3 Total Assets 751.7 687.9 667.6 Accounts Payable 150.7 130.0 117.4 Debt Payable
Slide 12: Cash Flows
Cash Flows FY07/3 FY08/3 (B Yen) Q3 9M Cumulative Q2 Q3 9M Cumulative Cash Flows from Operating Activities 19.5 54.1 27.7 13.6 42.8 Cash Flows from Investing Activities -27.1 -48.2 -11.5 -14.7 -33.5 Free Cash Flows -7.6 5.8 16.2 -1.0 9.3 12
Slide 13: II. FY08/3 Full-Year Forecasts
I. Q3 FY08/3 Financial Results II. FY08/3 Full-Year Forecasts 13
Slide 14: FY08/3 Full-Year Forecasts
FY08/3 Full-Year Forecasts The Thefull-year full-yearforecasts forecastsremain remainunchanged, unchanged,however, however,we weare arecommitted committedtotosecuring securing operating profits in 2H as well, and aim for further improvements in financial performance operating profits in 2H as well,
Slide 15: Trends in Amount of Orders
Trends in Amount of Orders December Decemberorders orderspartially partiallysaw sawaanegative negativeimpact impactfrom fromthe theprevious previousmonth, month,but butiningeneral, general, orders for products in some consumer electronics area and PC market were orders for products in some consumer
Slide 16: Semiconductor Sales by Platform (QoQ Forecast)
Semiconductor Sales by Platform (QoQ Forecast) (B Yen) 200 Attain Attainflat flatsales salesat ataaminimum, minimum,aim aimfor forfurther furthersales salesgrowth growth QoQ Aim to reach full-year 163.7 semicon. sales target SoC 150 SoC QoQ: Flat 63.7 Higher demand for LSIs for mobile handsets, whil
Slide 17: Progress in Cost Reduction Measures
Progress in Cost Reduction Measures - -Carrying Carryingout outmeasures measurestotoreduce reducefixed fixedcosts costsdiligently diligently - -Strive Strive to cut fixed costs further to reduce morethan to cut fixed costs further to reduce more than20B 20Byen yen Graphs: B yen B yen R&D Expenses Ri
Slide 18: Non-Operating Income/Loss
Non-Operating Income/Loss Book BookStructural StructuralReform ReformCosts Costsmainly mainlyininQ4. Q4. No changes in the full-year forecasts. No changes in the full-year forecasts. FY07/3 FY08/3 Full- Year 9M Cumulative Q4 Full-Year (B Yen) Previous Forecasts Forecasts Actual Actual Forecasts (as
Slide 19: Conclusions
Conclusions Attained operating profit for Q3, following the previous quarter results The full-year forecasts remain unchanged due to expected downturn in Q4 market conditions, however committed to securing operating profits in 2H, and strive to improve financial performance. 19
Slide 20: Cautionary Statements
Cautionary Statements The statements in this presentation with respect to the plans, strategies and forecasts of NEC Electronics and its consolidated subsidiaries (collectively “we”) are forward-looking statements involving risks and uncertainties. We caution you in advance that actual results could