Renesas Electronics Corporation · TSE:6723

Renesas Electronics — Q1 FY2019 Earnings Presentation

21 slides from Renesas Electronics's earnings presentation, May 14, 2019

  1. Slide 1: FY19/12 Q1 Presentation

    FY19/12 Q1 PRESENTATION RENESAS ELECTRONICS CORPORATION MAY 14, 2019 © 2019 Renesas Electronics Corporation. All rights reserved.

  2. Slide 2: Non-GAAP Basis Information

    NON-GAAP BASIS INFORMATION In this section, Renesas Electronics Group (hereinafter “the Group”) applies 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 figures (he

  3. Slide 3: Adoption of IFRS and Changes in Guidance

    ADOPTION OF IFRS AND CHANGES IN GUIDANCE  With the outlook that the Group will continue to expand globally and to provide financial figures that can be compared on a global scale, the Group discloses its consolidated financial statements in accordance with the International Financial Reporting Stan

  4. Slide 4: FY19/12 Q1 Financial Snapshot

    Non-GAAP FY19/12 Q1 FINANCIAL SNAPSHOT (IFRS, NON-GAAP BASIS*1*2) YoY and QoQ results as well as the changes from FCTs of the Net Sales and Semi Sales are rounded off to one decimal place. FY18/12 FY19/12 (B yen) Q1 Q1 Q1 Q4 Change from (Jan-Mar) (Jan-Mar) YoY QoQ (Jan-Mar) (Oct-Dec) Feb 8 FCT*2 For

  5. Slide 5: Quarterly Semiconductor Revenue Trends

    Non-GAAP QUARTERLY SEMICONDUCTOR REVENUE TRENDS (IFRS, NON-GAAP BASIS*1*2) (B yen) Automotive Industrial Broad-based Other 199.1 200 182.0 1.0 183.7 Revenue from Semiconductors 175.6 0.6 1.0 YoY: -19.4% 40.8 0.7 QoQ: -20.1% 38.1 35.1 146.7 150 37.3 1.4 Broad-based 51.5 30.1 YoY: -21.0% 43.1 QoQ: -14

  6. Slide 6: FY19/12 Q1 Gross Margin

    Non-GAAP FY19/12 Q1 GROSS MARGIN (IFRS, NON-GAAP BASIS*1) Gross Margin YoY -8.2pts Currency Impact FY18/12 Q1 FY18/12 Q4 FY19/12 Q1 FY19/12 Q1 Actual Actual Forecast Actual Sales Decrease (Jan-Mar 2018) (Oct-Dec 2018) (Jan-Mar 2019) (Jan-Mar 2019) Impact from changes in production volume Fixed manuf

  7. Slide 7: Gross Margin, Operating Margin and OPEX Trajectory

    Non-GAAP GROSS MARGIN, OPERATING MARGIN AND OPEX TRAJECTORY (IFRS, NON-GAAP BASIS*1*2) YoY: +1.0pt <Gross Margin (%)> YoY: -8.2pts 20 <R&D Ratio (%)> QoQ: +2.2pts 50 QoQ: -1.2pts 18 45 18.5 47.5 16 17.5 17.2 44.9 43.9 16.2 40 14 15.1 40.5 39.3 12 35 30 10 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 FY18/12 FY19/1

  8. Slide 8: Inventory

    INVENTORY (MANAGERIAL ACCOUNTING BASIS, BILLON YEN） <Sales Channel Inventory*1 (by application) > <Inventory Change 100 (Work in Process + Finished Goods)> Automotive 50 150.00 Non- IDT Automotive 0 17/3 17/6 17/9 17/12 18/3 18/6 18/9 18/12 19/3 100.00 <Sales Channel Inventory (by product) > 100 In-

  9. Slide 9: Monthly Changes in Front-End Wafer Input Quantity and Purchase Volume from Foundries

    MONTHLY CHANGES IN FRONT-END WAFER INPUT QUANTITY AND PURCHASE VOLUME FROM FOUNDRIES (8-INCH EQUIVALENT） <1,000 wafers / month> 350 300 250 Purchase Volume 200 from Foundries 150 100 Front End Wafer Input 50 Quantity 0 1 7 / 1 1 7 / 2 1 7 / 3 1 7 / 4 1 7 / 5 1 7 / 6 1 7 / 7 1 7 / 8 1 7 / 91 7 / 1 01

  10. Slide 10: Quarterly Trends in Front-End Utilization Rate

    QUARTERLY TRENDS IN FRONT-END UTILIZATION RATE (WAFER INPUT BASIS) 100% 80% 60% 40% Total 20% 6-inch line 8-inch line 12-inch line 0% FY17/Q1 FY17/Q2 FY17/Q3 FY17/Q4 FY18/Q1 FY18/Q2 FY18/Q3 FY18/Q4 FY19/Q1 © 2019 Renesas Electronics Corporation. All rights reserved. Page 10

  11. Slide 11: Quarter-End Order Backlog and Subsequent Quarters' Revenue from Semiconductors

    QUARTER-END ORDER BACKLOG AND SUBSEQUENT QUARTERS’ REVENUE FROM SEMICONDUCTORS (ORDER BACKLOG: AMOUNT OF CUSTOMER ORDERS DUE EVERY SUBSEQUENT QUARTER) （B Yen） 206.4 194.3 199.1 200 192.3 182.0 183.8 185.5 175.6 146.7 150 100 50 0 *4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY17/12 FY18/12 FY19/12 Order Backlog (r

  12. Slide 12: FY19/12 Q2 Financial Forecasts

    Non-GAAP FY19/12 Q2 FINANCIAL FORECASTS (IFRS, NON-GAAP BASIS*1*2) YoY and QoQ forecasts of the Net Sales and Semi Sales are rounded off to one decimal place. FY18/12 FY19/12 (B yen) Q2 1H Q2 1H Q1 (Jan-Mar) (Apr-Jun) YoY QoQ (Jan-Jun) YoY (Apr-Jun) (Jan-Jun) Forecast Forecast 185.0 -5.1% +23.1% 335

  13. Slide 13: Appendix

    APPENDIX The figures in this section are mainly based on GAAP (IFRS) stated on a financial reporting basis and are provided as additional information. © 2019 Renesas Electronics Corporation. All rights reserved. Page 13

  14. Slide 14: GAAP (IFRS) / Non-GAAP Reconciliation

    GAAP (IFRS) / NON-GAAP RECONCILIATION (FY18/12-*1) ・Non-GAAP Basis: Non-GAAP figures are calculated by adjusting or removing non-recurring items and other adjustments from GAAP figures following a certain set of rules. The Group believe non-GAAP measures provide useful information in understanding a

  15. Slide 15: GAAP (IFRS) / Non-GAAP Reconciliation

    GAAP (IFRS) / NON-GAAP*1 RECONCILIATION (FY18/12- *2) FY18/12 FY19/12 (B yen) Q1 Q2 Q3 Q4 Q1 Operating Profit (GAAP/After PPA) 23.4 32.8 -13.1 -1.1 -1.3 Reconciliations in Gross Profit Level +1.4 +0.5 -0.0 +0.0 +1.9 PPA Effects*3 (Amortization of Intangible Assets: SG&A*4) +4.1 +3.7 +3.8 +3.9 +3.8 P

  16. Slide 16: IFRS GAAP / Non-GAAP Reconciliation

    IFRS GAAP / NON-GAAP*1 RECONCILIATION (FY18/12- *2) FY18/12 FY19/12 (B yen) Q1 Q2 Q3 Q4 Q1 Net Profit (GAAP/After PPA) 18.6 31.6 11.8 -10.9 -1.8 Reconciliations in Operating +6.7 +0.3 +8.4 +20.5 +8.5 Profit Level Reconciliations in Net Profit - - - - - (PPA Effects*3) Reconciliations in Net Profit (

  17. Slide 17: FY19/12 Q1 Financial Snapshot (IFRS)

    GAAP IFRS FY19/12 Q1 FINANCIAL SNAPSHOT (IFRS *1) YoY and QoQ results of the Net Sales and Semi Sales are rounded off to one decimal place. FY18/12 FY19/12 (B yen) Q1 Q1 Q4 (Jan-Mar) YoY QoQ (Jan-Mar) (Oct-Dec) Actual Sales Revenue 185.6 187.7 150.3 -19.0% -20.0% Revenue from Semiconductors 182.0 18

  18. Slide 18: Balance Sheets

    GAAP IFRS BALANCE SHEETS (IFRS *1) As of Mar. 31, As of Jun. 30, As of Sep. 30, As of Dec. 31, As of Mar. 31, (B yen) *7 2018 2018 2018 2018 2019 Total Assets 1,085.7 1,119.7 1,125.3 1,055.2 1,843.2 Cash and Cash *2 124.3 160.3 184.5 188.8 196.7 Equivalents 129.8*8 Inventories 136.7 135.5 138.6 115.

  19. Slide 19: EBITDA and Cash Flows

    GAAP IFRS EBITDA*1 AND CASH FLOWS (IFRS *2) <EBITDA (B yen)> <Cash Flows (B yen)> Cash flows from operating activities 60.8 70 60 Cash flows from investing activities 60.9 Free cash flows *3 47.7 44.1 60 44.7 45 51.5 50 28.5 30 41.3 17.9 20.0 40 23.0 15 30 27.1 28.0 0 3.8 20 -6.6 -15 10 -16.1 -16.3

  20. Slide 20: Highlights from FY19/12 Q1

    HIGHLIGHTS FROM FY19/12 Q1 （MAJOR ANNOUNCEMENTS FROM JANUARY 1, 2019 TO MARCH 31, 2019) Corporate  Completed the acquisition of IDT at 6.3 billion USD, expanding into new markets  Launched the new management team as of April, 2019, scheduling to migrate to 2 business units from July, 2019, followi

  21. Slide 21: Big Ideas for Every Space (Forward-Looking Statements)

    BIG IDEAS FOR EVERY SPACE (FORWARD-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. Such forward-l

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