Slide 1: FY15/3 Financial Results
FY15/3 Financial Results Renesas Electronics Corporation May 12, 2015
Slide 2: Agenda
Agenda I. FY15/3 Financial Results II. FY16/3 Q1 Financial Forecasts III. Change in Gears for Future Growth © 2015 Renesas Electronics Corporation. All rights reserved. 2
Slide 3: Executive Summary
Executive Summary I. FY15/3 Financial Results Semiconductor sales decreased by 5.5% YoY to 753.3 B yen, due to the impact from business withdrawal including transfer of shares in Renesas SP Drivers Operating income was 104.4 B yen, a 36.8 B yen increase YoY, mainly due to the impact from the fix
Slide 4: I. FY15/3 Financial Results
I. FY15/3 Financial Results © 2015 Renesas Electronics Corporation. All rights reserved. 4
Slide 5: FY15/3 Financial Snapshot
FY15/3 Financial Snapshot Semiconductor sales for full-year decreased by 5.5% YoY, due to the impact from business withdrawal including transfer of shares in Renesas SP Drivers Operating income for full-year increased by 36.8 B yen YoY, mainly due to the impact from the fixed-cost reduction and
Slide 6: Financial Snapshot (Excl. Renesas SP Drivers)
FY15/3 Financial Snapshot (Excl. Renesas SP Drivers*) Excluding sales from Renesas SP Drivers, semiconductor sales for full-year decreased by 2.2% YoY, due to the impact from business withdrawal Excluding operating income from Renesas SP Drivers, operating income for full-year increased by 44.6
Slide 7: Quarterly Financial Results (B Yen)
Quarterly Financial Results (B Yen) (Excluding Renesas SP Drivers) Q4 semiconductor sales decreased by 1.3% QoQ and by 1.5% YoY, due to withdrawal from non-core businesses Both Q4 gross profit ratio and operating profit ratio are showing trends toward improvement, yet, they still include tempora
Slide 8: Semiconductor Sales by Application Categories
FY15/3 Semiconductor Sales by Application Categories While Automotive sales for Q4 and full-year increased both QoQ and YoY, General-Purpose sales for the same period decreased both QoQ and YoY, impacted by business withdrawal including transfer of shares in Renesas SP Drivers FY14/3 FY15/3 (B Yen
Slide 9: Q4 Semiconductor Sales by Application Categories
FY15/3 Q4 Semiconductor Sales by Application Categories Automotive General-Purpose (B Yen) (B Yen) 0％ 82.1 82.3 94.0 91.9 Approx. Low single-digit Approx. Automotive 30% pct. increase 30% Information Approx. Low single-digit Approx. Other 50% pct. decrease 50% General-Purpose Approx. Approx. Automo
Slide 10: Semiconductor Sales by Application Categories
FY15/3 Semiconductor Sales by Application Categories Automotive General-Purpose (B Yen) (B Yen) 323.1 421.5 303.7 387.0 Approx. Automotive Other Approx. Mid single-digit 30% Information Approx. General-Purpose 30% pct. increase Low teen Approx. 50% pct. increase (excl. Renesas 50% SP Drivers) Approx
Slide 11: Q4 Operating Income (Loss) QoQ
FY15/3 Q4 Operating Income (Loss) QoQ (B Yen) Despite currency impact, influences from inventory variations and a decrease in manufacturing-related fixed cost, etc., operating income decreased by 5.0 B yen QoQ, mainly due to profit decline from a decrease in sales and seasonal cost increases at th
Slide 12: Q4 Net Income (Loss)
FY15/3 Q4 Net Income (Loss) (B Yen) Q4 net income was 9.0 B yen, mainly due to special loss from structural reforms in accordance with the realignment of manufacturing and design/development sites -1.4 Non-operating income (loss) Non-operating income +1.0 Special income Non-operating expense -2.4
Slide 13: Full-Year Operating Income (Loss) YoY
FY15/3 Full-Year Operating Income (Loss) YoY (B Yen) Despite a decrease of profit from lower sales, full-year operating income increased by 36.8 B yen YoY, due to improved product mix and positive impact from fixed-cost reductions Although the Group’s cost structure has been improving, this impr
Slide 14: Full-Year Operating Income in Comparison with Forecasts
FY15/3 Full-Year Operating Income (Loss) in Comparison with Forecasts (Feb 5, 2015) (B Yen) Although R&D and SG&A were almost in line with the Group’s forecasts, operating income increased by 6.4 B yen YoY, due to positive currency impact, higher profit from sales increase and reduced manufacturin
Slide 15: Full-Year Net Income (Loss)
FY15/3 Full-Year Net Income (Loss) (B Yen) Achieved net income of 82.4 B yen, mainly due to special income of 20.0 B yen from transfer of shares in Renesas SP Drivers, in spite of recording special loss from structural reforms including implementation of early retirement program +0.9 Non-operating
Slide 16: Balance Sheets
FY15/3 Balance Sheets Aim to sustain equity ratio at the 30% range by increasing profits As of As of As of (B Yen) Mar. 31, 2014 Dec. 31, 2014 Mar. 31, 2015 Total Assets 786.0 854.6 840.1 Cash and Cash Equivalents 265.9 335.8 343.7 Inventories 126.1 109.5 111.4 Liabilities 558.7 568.7 528.2 Intere
Slide 17: Cash Flows
FY15/3 Cash Flows Despite payments for structural reforms, positive Q4 free cash flows were achieved Despite payments for extra retirement benefits in accordance with the implementation of early retirement program, free cash flows for full-year climbed to the highest level to date on a yearly ba
Slide 18: II. FY16/3 Q1 Financial Forecasts
II. FY16/3 Q1 Financial Forecasts © 2015 Renesas Electronics Corporation. All rights reserved. 18
Slide 19: FY16/3 Q1 Consolidated Financial Forecasts
FY16/3 Q1 Consolidated Financial Forecasts Q1 semiconductor sales are expected to decrease by 0.6% QoQ to 174.0 B yen Despite a decrease in sales QoQ, Q1 operating income is expected to increase by 0.6 B yen QoQ, mainly due to rebound from concentrated expenses in the previous year-end FY15/3 FY
Slide 20: Quarterly Financial Results and Forecasts (B Yen)
Quarterly Financial Results and Forecasts (B Yen) (Excluding Renesas SP Drivers) Due to a decrease in cost recovery from inventory variations, Q1 gross profit ratio is expected to decrease from the previous quarter 191.7 186.7 185.2 182.2 Net 180.0 Sales 183.6 42.8% GP 42.4% 41.7% 40.3% Ratio 38.9
Slide 21: FY16/3 Q1 Semiconductor Sales Forecast
FY16/3 Q1 Semiconductor Sales Forecast (QoQ / B Yen) While sales of Automotive are expected to decline by mid single-digit percent QoQ, sales of General-Purpose are expected to increase by low single-digit percent QoQ Growth rate Major factors affecting Q1 175.1 -0.6% 174.0 semiconductor sales Gen
Slide 22: FY16/3 Q1 Operating Income Forecast
FY16/3 Q1 Operating Income (Loss) Forecast (QoQ / B Yen) Despite currency impact and a decrease in cost recovery from inventory variations, operating income is expected to increase by 0.6 B yen QoQ, due to a rebound from seasonal expenses in the previous year-end Increase in Decrease of profit fro
Slide 23: FY16/3 Q1 Net Income Forecast
FY16/3 Q1 Net Income (Loss) Forecast (B Yen) Expect to record Q1 net income of 20.0 B yen with no major special loss Non-operating -2.0 -1.0 income (loss) Special income -2.0 (loss) Income taxes, minority interests 25.0 20.0 Operating Net Income Income (Loss) (Loss) © 2015 Renesas Electronics Corp
Slide 24: III. Change in Gears for Future Growth
III. Change in Gears for Future Growth © 2015 Renesas Electronics Corporation. All rights reserved. 24
Slide 25: Promotion of Reform Plan
Promotion of Reform Plan Building Baseline for Future Growth Growth investment DevCon Japan Reform of Establishment of Organizational Operation ADAS center Adoption of global personnel treatment system Promotion of Realignment of design/ Structural Reform development structures Reform of
Slide 26: Trends in Financial Performance
Trends in Financial Performance Despite a decrease in sales from realignment of business portfolio, financial base was improved by promotion of the reform plan Double-digit operating profit ratio target is near-at-hand even on a proforma basis FY03-FY07* FY08-FY09* FY10 FY11 FY12 FY13 FY14 Avera
Slide 27: Change in Gears for Future Growth
Change in Gears for Future Growth Selection and Concentration Selection and Concentration of Products of Business Withdrawal from low-profit products Accelerate shift of R&D investment to growth areas and business domains with high profitability © 2015 Renesas Electronics Corporation. All rights res
Slide 28: Reform Plan
Reform Plan Improvement of gross profit ratio Further growth in profits through structural reforms through selection and concentration Double-digit operating profit ratio Build framework step 2 of reform plan step 1 Completion of structural reforms FY 14/3 FY 16/3 FY 17/3 July October Promotion of
Slide 29: 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