Slide 1: FY12/3 Q2 Financial Results
FY12/3 Q2 Financial Results Renesas Electronics Corporation October 31, 2011 Yasushi Akao, President © 2011 Renesas Electronics Corporation. All rights reserved. 00000-A
Slide 2: Executive Summary
Executive Summary I. FY12/3 Q2 Financial Results Sales in the second quarter ended September 30, 2011 recovered as the production/supply capabilities returned to normal. Overall Q2 results were in line with the company’s original forecasts. II. FY12/3 Financial Forecasts Forecast for the full-ye
Slide 3: I. FY12/3 Q2 Financial Results
I. FY12/3 Q2 Financial Results 3 © 2011 Renesas Electronics Corporation. All rights reserved.
Slide 4: FY12/3 Q2 Financial Snapshot
FY12/3 Q2 Financial Snapshot Semiconductor sales were 218.2 billion yen, increased by 19% QoQ. Although this result was slightly short of the original forecasts, semiconductor sales were still in line with the company’s expectation taking into account the negative impact of the currency. Achieve
Slide 5: Trends in Quarterly Results
Trends in Quarterly Results Negative impact of the earthquake including decreased production bottomed out in Q1 and the company started to show improvements in performance FY11/3 FY12/3 (B yen) Q1 Q2 Q3 Q4 Q1 Q2 292.0 295.4 275.2 275.3 Net Sales 243.3 207.2 Semi. 261.5 263.5 249.5 244.4 218.2 Sale
Slide 6: FY12/3 Q2 Semiconductor Sales by Business (1)
FY12/3 Q2 Semiconductor Sales by Business (1) Production/supply capabilities that were affected by the earthquake showed great improvements in Q2 and sales in all three of the businesses increased QoQ FY11/3 FY12/3 (B yen) Q2 Q1 Q2 QoQ YoY Semiconductor +34.1 -45.3 263.5 184.0 218.2 (+19%) (-17%)
Slide 7: FY12/3 Q2 Semiconductor Sales by Business (2)
FY12/3 Q2 Semiconductor Sales by Business (2) General-purpose MCUs sales increased QoQ for applications Automotive approx. including consumer electronics and PC peripherals owing to increased 50% production from restored Naka factory and alternative production MCU sites. On the other hand, Q2 sales
Slide 8: FY12/3 Q2 Operating Income (Loss) QoQ
FY12/3 Q2 Operating Income (Loss) QoQ Due to higher profit from increased sales and production, operating loss improved QoQ from the original forecasts Succeeded in holding down the costs that were all expected to be recorded at the end of 1H by achieving merger synergies through promotion of th
Slide 9: Balance Sheets
Balance Sheets As of Mar. 31, As of Jun. 30, As of Sep. 30, (B yen) 2011 2011 2011 Total Assets 1,145.0 937.4 917.7 Cash and Cash Equivalents 337.3 177.0 158.3 Inventories 123.4 134.5 138.6 Liabilities 854.0 681.6 679.9 Interest-Bearing Debt 378.2 266.5 265.6 Shareholder’s Equity 306.0 272.8 264.0 N
Slide 10: Cash Flows
Cash Flows FY11/3 FY12/3 (B yen) Q2 1H Full-year Q1 Q2 1H Cash Flows from Operating 35.0 33.0 102.5 -29.2 8.0 -21.1 Activities Cash Flows from Investing -18.4 -32.8 -95.8 -14.8 -17.8 -32.6 Activities Free Cash Flows 16.6 0.2 6.7 -44.0 -9.7 -53.7 10 © 2011 Renesas Electronics Corporation. All rights
Slide 11: II. FY12/3 Financial Forecasts
II. FY12/3 Financial Forecasts 11 © 2011 Renesas Electronics Corporation. All rights reserved.
Slide 12: FY12/3 Consolidated Financial Forecasts
FY12/3 Consolidated Financial Forecasts Lowered the forecast for full-year net sales addressing downturn in global economy and impact from the currency Continue to target net income in 2H by promoting cost efficiency through the 100-day Project and other additional cost reduction measures FY11/3
Slide 13: Forecasts for 2H Semiconductor Sales (HoH Comparison)
Forecasts for 2H Semiconductor Sales (HoH Comparison) MCU sales, especially those for automobiles, account for approximately 60% of the sales increase. Despite 90 billion yen negative impact from the currency, semiconductor sales in 2H is expected to increase by 17% due to demand increase (B yen)
Slide 14: 2H Semiconductor Sales by Business
2H Semiconductor Sales by Business As for general-purpose MCUs, despite sales increased along with Automotive recovery of product/supply capabilities, uncertainty is increasing for approx. 4Q outlook since demand for consumer electronics is weakening 50% MCU due to fiscal risks in Europe and slowdo
Slide 15: FY12/3 2H Operating Income (Loss) Forecasts (HoH Comparison)
FY12/3 2H Operating Income (Loss) Forecasts (HoH Comparison) Attain higher profit from increased semiconductor sales by 66.6 billion yen HoH Improve operation ratio after Q2 by achieving quick recovery from the earthquake Reduced SG&A and R&D expense by continuously achieving merger synergies
Slide 16: 2H Initiatives
2H Initiatives Promote to capture demand and improve production efficiency -Secure to capture recovery demand from the earthquake together with improving efficiency of production ・Steadily increase production mainly for MCU in 2H ・Flexibly hold down costs (semi fixed costs) according to production
Slide 17: III. Summary
III. Summary 17 © 2011 Renesas Electronics Corporation. All rights reserved.
Slide 18: Toward Consistently-Profitable Business Structure – Business and Production Structural Measures
Toward Consistently-Profitable Business Structure –Business and Production Structural Measures Continue to conduct business and production structural measures to construct a consistently-profitable business structure Business Structural Measures Production Structural Measures ・Conduct structural m
Slide 19: Toward Consistently-Profitable Business Structure - Streamline Expenses (1)
Toward Consistently-Profitable Business Structure -Streamline Expenses (1) Target R&D ratio (against net sales) to be 16% by accelerating initiatives to streamline R&D expenses Suppress FY12/3 R&D expenses from the original expextatoion (R&D ratio) (R&D expenses: B yen) 25% 25% Trend of R&D Expe
Slide 20: Toward Consistently-Profitable Business Structure - Streamline Expenses (2)
Toward Consistently-Profitable Business Structure -Streamline Expenses (2) Depreciation cost will gradually decline followed by continuous efforts on streamlining capital investments Suppress FY12/3 capital investments from the original plan (B yen) 150 1500 Depreciation Cost (*1) *1: Sum of dep
Slide 21: Realize Synergy Effects through the 100-Day Project
Realize Synergy Effects through the 100-Day Project As a result of selection and concentration of business through the 100-Day Project, realized merger synergies to attain both reduced expenses and enhanced products. Launch them as strategic products to new growing markets Unify Products/Technolog
Slide 22: Summary
Summary FY12/3 Q2 results were in line with the original forecasts thanks to recovery in production Revised full-year semiconductor sales forecast due to weakening in demand from negative impact of the currency and deteriorating global economy. Continue to expect increasingly unclear outlook for
Slide 23: Forward-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 24: Renesas Electronics Corporation
Renesas Electronics Corporation © 2011 Renesas Electronics Corporation. All rights reserved.