Slide 1: FY16/12 Q2 Financial Results
FY16/12 Q2 FINANCIAL RESULTS RENESAS ELECTRONICS CORPORATION November 2, 2016 © 2016 Renesas Electronics Corporation. All rights reserved.
Slide 2: Non-GAAP measures and change of fiscal term
FY16/12 Q2 FINANCIAL RESULTS Since FY16/3, Renesas Electronics Group (hereinafter “the Group”) started to disclose Non-GAAP financial measures (hereinafter “Non-GAAP basis”) used for management’s decision making. The Group defines the Non-GAAP consolidated financial results as financial accounting f
Slide 3: FY16/12 Q2 Financial Snapshot
FY16/12 Q2 FINANCIAL SNAPSHOT YoY and QoQ results as well as the Change from Aug. 10 FCT of the Net Sales and Semiconductor Sales are rounded off to one decimal place FY16/3 FY16/12 (B yen) Q2 Change from Q2 Q1 Q2 YoY QoQ Aug.10 FCT 1H Forecasts Net Sales 181.4 152.0 149.0 152.6 -15.9% +0.4% +2.4% 3
Slide 4: FY16/12 Q2 Highlights (Non-GAAP Basis)
Non-GAAP FY16/12 Q2 HIGHLIGHTS (NON-GAAP BASIS*1) Results Major factors Slightly increased QoQ due to the reduced earthquake impact supported by solid Semi. Sales￥148.3 B demand especially of automotive products despite some negative impacts from stronger yen and withdrawal from non-focus products
Slide 5: FY16/12 Q2 Semiconductor Sales (Non-GAAP Basis) QoQ
Non-GAAP FY16/12 Q2 SEMICONDUCTOR SALES (NON-GAAP BASIS) QOQ (B YEN) Sales decrease due to withdrawal from non- Currency impact focus products -2.0 +3.5 +0.8 -5.2 +4.5 Others Earthquake impact* (production recovery) 147.5 148.3 0 0 0 FY16/12 FY16/12 FY16/3 Q1 Q4 * Including the impact from the earth
Slide 6: FY16/12 Q2 Semiconductor Sales: Change from Previous Forecast
Non-GAAP FY16/12 Q2 SEMICONDUCTOR SALES (NON-GAAP BASIS) CHANGE FROM THE PREVIOUS FORECAST (B YEN) Earthquake impact* +3.1 +3.1 +3.3 +0.3 +0.4 -0.5 Currency impact Sales decrease due to Others withdrawal from non- focus products 1,483 148.3 1,450 145.0 0 0 0 0 0 0 FY16/12 Q2 FY16/12 Q2 FY16/3 Foreca
Slide 7: Gross Margin (Non-GAAP Basis)
Non-GAAP GROSS MARGIN (NON-GAAP BASIS) Currency Sales increase <Quarterly Trends (%)> <QoQ> impact (Excl. currency impact) Target -0.5Pts +0.6Pts +0.2Pts 50 44.3% -2.1Pts 42.5% Earthquake impact Seasonal (production increase in 45.8 increase) manufacturing- 45 fixed costs, etc 44.3 42.2 44.3 42.1 42
Slide 8: OPEX (Non-GAAP Basis)
Non-GAAP OPEX*1 (NON-GAAP BASIS) <R&D Ratio (%)> Target <SG&A Ratio (%)> Target 20 20 18.0 18 18 16.7 16.8 16.2 16.1 15.8 15.5 16 16 15.2 15.3 15.2 15.0 14 14.9 14 14.5 14.2 14.2 12 13.1 12 11.6 11.5 10 10.7 11.0 10 8 8 6 6 4 4 2 2 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY14
Slide 9: Operating Margin (Non-GAAP Basis)
Non-GAAP OPERATING MARGIN (NON-GAAP BASIS) Sales increase <Quarterly Trends (%)> Target <QoQ> (Excl. currency impact) Seasonal Currency +0.4Pts 13.7% impact increase in 20 -2.1Pts R&D, SG&A 17.8 -1.5Pts +1.5Pts 10.8% 18 Earthquake impact Seasonal (production increase) increase in -1.2Pts 15.7 manufa
Slide 10: FY16/12 Q3 and Full-Year Financial Forecasts
FY16/12 Q3 AND FULL-YEAR FINANCIAL FORECASTS © 2016 Renesas Electronics Corporation. All rights reserved. Page 10
Slide 11: Summary of FY16/12 Q3 Financial Forecasts
SUMMARY OF FY16/12 Q3 FINANCIAL FORECASTS Forecasts Major factors Semi Sales￥157.2 B Expect to increase QoQ due to less negative impact from the QoQ: +6.0% earthquake and increases in production to address solid demand Gross Margin 42.8% Expect to increase QoQ due to an increase in sales QoQ: +1
Slide 12: Summary of FY16/12 Full-Year Financial Forecasts
SUMMARY OF FY16/12 FULL-YEAR (APR-DEC 2016) FINANCIAL FORECASTS Forecasts Major factors Semi Sales￥453.0 B Expect to decrease YoY due to a stronger yen, withdrawal from non- focus products and negative impact of the earthquake YoY: -11.6% Expect both gross profit/margin to decrease linked to the
Slide 13: Q3 and Full-Year Financial Forecasts
FY16/12 Q3 AND FULL-YEAR FINANCIAL FORECASTS YoY and QoQ results of the Net Sales and Semiconductor Sales are rounded off to one decimal place FY16/3 FY16/12 (B yen) Full-Year 9 months Q3 Q2 Q3 FCT YoY QoQ (9 months) cumulative FCT Net Sales 164.8 525.5 152.6 161.4 -2.1% +5.7% 466.0 Semiconductor Sa
Slide 14: FY16/12 Q3 Semiconductor Sales Forecast
FY16/12 Q3 SEMICONDUCTOR SALES FORECAST QoQ (B YEN) Sales decrease due to withdrawal from non- focus products +4.0 -0.8 ＋8.9 Currency impact Others +6.0 -0.3 Earthquake impact* 157.2 148.3 0 0 0 FY16/12 FY16/12 Q3 FY16/12 Q2 Q2 Actual FY16/12 Q3E Forecast * Including the impact from the earthquake i
Slide 15: Appendix
APPENDIX © 2016 Renesas Electronics Corporation. All rights reserved. Page 15
Slide 16: GAAP/Non-GAAP Reconciliation
GAAP/NON-GAAP RECONCILIATION FY15/03 FY16/03 FY16/12 (B Yen) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Semiconductor Sales (GAAP) ① 201.2 199.6 177.4 175.1 174.5 177.0 160.9 163.2 147.5 148.3 Renesas SP Drivers*1 ② -17.6 -21.0 - - - - - - - - Semiconductor Sales (Non-GAAP) ①+② 183.6 178.6 177.4 175.1 174.5 177.
Slide 17: Semiconductor Sales by Business (Non-GAAP Basis)
Non-GAAP SEMICONDUCTOR SALES BY BUSINESS (NON-GAAP BASIS) Automotive Business General-Purpose Business Sales (B yen) Sales (B yen) 100 Automotive Control Automotive Information YoY -8% Industrial OA/ICT Other General-Purpose 1,000 100 YoY -23% QoQ +3% 1,000 94.4 93.6 78.6 82.4 79.1 81.7 QoQ -1% 80 8
Slide 18: EBITDA and Cash Flows
EBITDA AND CASH FLOWS <EBITDA (B yen)> <Cash Flows (B yen)> 50 47.7 50 Cash flows from operating activities 46.3 45.1 Cash flows from investing activities 45 Free cash flows 41.0 40 40 32.6 32.6 31.5 35 33.1 30 33.1 27.5 31.2 29.5 30 26.2 20 23.0 17.0 25 18.9 10 15.8 20 10.5 15 0 10 -5.4 -6.5 -10 -8
Slide 19: Balance Sheets
BALANCE SHEETS As of Jun. 30, As of Sep. 30, (B Yen) As of Mar. 31, 2016 2016 2016 Total Assets 849.4 823.2 758.2 Cash and Cash Equivalents 398.4 397.3 326.2 Inventories 108.4 97.0 92.1 Liabilities 467.6 447.7 376.2 Interest-Bearing Debt 244.3 237.9 157.9 Shareholders’ Equity 364.1 374.1 383.5 Net A
Slide 20: FY16/12 Q2 Operating Income
FY16/12 Q2 OPERATING INCOME QOQ (B YEN) Impact from change in production volume Currency impact Seasonal increase -2.9 in R&D, SG&A -3.0 +3.8 -1.9 Sales increase (Excl. currency impact) 18.6 Inventory changes: +0.6 14.6 - Inventory buildup for structural reforms +0.3 (Q1: -2.3, Q2: -2.0) Increase in
Slide 21: Q2 Operating Income: Change from Previous Forecast
FY16/12 Q2 OPERATING INCOME CHANGE FROM THE PREVIOUS FORECAST (B YEN) Impact from change in production volume +2.1 Decrease in +3.0 R&D, SG&A +0.2 +1.9 14.6 Currency Sales increase impact (Excl. currency impact) 7.4 Inventory changes: -0.7 0.0 0.0 for structural reforms - Inventory buildup 0.0+0.5 (
Slide 22: Q2 Net Income Attributable to Shareholders of Parent Company
FY16/12 Q2 NET INCOME ATTRIBUTABLE TO SHAREHOLDERS OF PARENT COMPANY (B YEN) Non-operating income (loss) Special -2.0 income (loss) Income taxes, -1.9 non-controlling interests -1.3 14.6 Non-operating income +0.5 Non-operating expense -2.5 ・Interest expenses -0.6 9.4 ・Exchange losses -0.9 Special in
Slide 23: FY16/12 Q3 Operating Income Forecast
FY16/12 Q3 OPERATING INCOME FORECAST QOQ (B YEN) Impact from change in production volume +0.3 +0.3 Decrease in R&D, SG&A Currency impact +5.9 -0.2 Sales increase (Excl. currency impact) 20.9 14.6 Inventory changes: +2.9 0 0 for structural reforms 0+1.5 - Inventory buildup (Q2: -2.0, Q3 forecast: -0.
Slide 24: Q3 Net Income Forecast
FY16/12 Q3 NET INCOME ATTRIBUTABLE TO SHAREHOLDERS OF PARENT COMPANY FORECAST (B YEN) Non-operating Income taxes, Special income (loss) non-controlling income (loss) interests -0.7 -0.5 -2.1 20.9 17.6 Net Income attributable to Operating Income shareholders of parent company © 2016 Renesas Electroni
Slide 25: Full-Year Operating Income Forecast
FY16/12 FULL-YEAR OPERATING INCOME FORECAST YOY (B YEN) Currency impact -18.8 Earthquake impact (production decline) Impact from change in -15.6 production volume 88.1 -4.0 +6.0 -1.7 Sales decrease Decrease in (Excl. currency impact) R&D, SG&A 54.0 0.0 Inventory changes: -13.9 0.0 - Inventory buildu
Slide 26: Full-Year Net Income Forecast
FY16/12 FULL-YEAR NET INCOME ATTRIBUTABLE TO SHAREHOLDERS OF PARENT COMPANY FORECAST (B YEN) Non-operating income (loss) Special income (loss) -5.0 Income taxes, non-controlling -8.0 interests -4.0 54.0 37.0 Net Income attributable to Operating Income shareholders of parent company © 2016 Renesas El
Slide 27: 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