Renesas Electronics Corporation · TSE:6723
Renesas Electronics — Investor Presentation (November 2016)
28 slides from Renesas Electronics's investor presentation, Nov 2, 2016
Slide 1: Renesas Mid-Term Growth Strategy
RENESAS MID-TERM GROWTH STRATEGY DELIVERING GREATER PROFIT AND INNOVATION November 2, 2016 © 2016 Renesas Electronics Corporation. All rights reserved.
Slide 2: Renesas' Financial Target
RENESAS’ FINANCIAL TARGET Revenue Growth Rate for Semi Relative Market Share (1) Business Market Growth Rate(2) 2x (Focus Area) Gross Margin (Non-GAAP) 50％ >1.5 R&D (% of Revenue) (Non-GAAP) 16-18％ SG&A (% of Revenue) 12-14％ >1.0 (Non-GAAP) Operating Margin (Non-GAAP) >20％ Further Strengthen Product
Slide 3: Capital Allocation: Strategic Approaches to Become #1
Organic In-Organic CAPITAL ALLOCATION STRATEGIC APPROACHES TO BECOME #1 IN FOCUSED INDUSTRIES Automotive Industrial Broad-based, etc. Organic + In-Organic Approaches Intensive R&D Spend to Stay as an MCUs Leveraging Renesas’ Market Industry Leader Recognition Strategic Partnerships and Alliances Lev
Slide 4: Capital Allocation: Investment in Focus Areas
CAPITAL ALLOCATION INVESTMENT IN FOCUS AREAS (ORGANIC INVESTMENT) Automotive Industrial Broad-based, etc. Smart Factory IoT ADAS MCUs Smart Home Autonomous Driving Smart Infrastructure SoCs Analog & Mixed 90nm BiCD Signal Green-Car (HEV／EV) Power Motor Control Discrete Unit with IGBT BiCD: Bipolar C
Slide 5: Automotive Business
AUTOMOTIVE BUSINESS © 2016 Renesas Electronics Corporation. All rights reserved.
Slide 6: Renesas' Market Position
RENESAS’ MARKET POSITION ACHIEVE GROWTH IN AUTOMOTIVE BUSINESS WITH MARKET-LEADING MCU/SoC CY 2015 Share in Automotive MCU/SoC (US$) (1) #1 automotive MCU/SoC supplier in the world Cockpit (*2) No.1 W/W shipments reached 940M units in Powertrain No.1 47% Instrument No.1 FY 2015 (11 Renesas MCUs in
Slide 7: World-Leading Next-Generation MCUs
WORLD-LEADING NEXT-GENERATION MCUs PARTNERSHIP WITH TSMC TO DEVELOP STATE-OF-THE-ART 28nm FLASH MCU DRIVE NEXT-GENERATION GREEN & AUTONOMOUS VEHICLE DEVELOPMENT Advanced Automotive MCU Requirements 150 nm Multi-Core (High Performance & Robustness) World’s #1 Advanced Safety Low Power Consumption
Slide 8: Focus Areas
2015 2020 FOCUS AREAS DRIVE AUTOMOTIVE BUSINESS GROWTH BY INVESTING IN GREEN VEHICLE AND AUTONOMOUS DRIVING WITH MASSIVE GROWTH POTENTIAL Powertrain HEV/ EV Body Chassis ADAS*2 Infotainment 10,000 (excl. HEV/EV) Safety (excl. ADAS) 8,000 6,000 4,000 2,000 (M US$) 0 CAGR (2015 – 2020) *1 2% 18% 4% 4%
Slide 9: Electric Vehicles (EV)
ELECTRIC VEHICLES (EV) CHINA IS SET TO BE THE TRENDSETTER OF THE EV MARKET LEAD CHINESE EV MARKET BY OFFERING SEMICONDUCTORS FOR EV MOTORS Chinese EV Market Forecast (K units) *1 Share of Semiconductor for EV Motor Control in Rapidly Pure Electric Vehicle Compact and light kit solution (MCU/IGBT/Dri
Slide 10: Autonomous Driving
☆ : Joint Project with Customers AUTONOMOUS DRIVING ★ : Major Design-Ins (FY15/FY16) OFFER ROBUST AND COMPLETE SOLUTIONS FOR AUTONOMOUS DRIVING TO ATTAIN LEADING MARKET SHARE Large numbers of design-ins from global OEM/Tier1s Solid design-ins from #1 mass production (mass production from 2019) globa
Slide 11: Advanced Autonomous Driving ECU Solution
ADVANCED AUTONOMOUS DRIVING ECU SOLUTION OFFERING ADVANCED DEVELOPMENT TOOL AND PLATFORM FOR AUTONOMOUS DRIVING SYSTEM WITH RAPIDLY INCREASING SOFTWARE VOLUME HAD solution kits for autonomous driving system development support system and software development and verification, and enable high computi
Slide 12: Future Growth Secured by Steady Design-Ins
FUTURE GROWTH SECURED BY STEADY DESIGN-INS 【Track-Record of D-Ins】 【Expected Revenue Expansion From New D-Ins】 Temporary cutback in # of orders caused by the Great East Japan Earthquake bottomed out in 2013 and Autonomous driving, Safety, significantly recovered. IVI-related and Green-car (EV, Fue
Slide 13: Industrial, Broad-Based Businesses
INDUSTRIAL, BROAD-BASED BUSINESSES © 2016 Renesas Electronics Corporation. All rights reserved.
Slide 14: For Green, Secure, and Comfortable Society
FOR GREEN, SECURE, AND COMFORTABLE SOCIETY RENESAS’ ADVANCED SEMI TECHNOLOGIES LEAD THE EVOLVING SMART SOCIETY SMART FACTORY SMART HOME SMART INFRASTRUCTURE e-AI materializes the potential of the expanding smart society with IoT Connectivity Security・Safety Intelligence Sustainability e-AI: embedded
Slide 15: Renesas' Market Position
RENESAS’ MARKET POSITION SEMICONDUCTOR SOLUTIONS PROVIDER TO SUPPORT SOCIETY Home Appliances Electric Power Meter (MCU) (MCU) Factory Automation (MCU, SoC, MPU) … … 41% 27% No.1 … 27% No.1 No.1 … 9% … 16% Network Camera Healthcare Image Processing (MCU, SoC) (Embedded MPU, SoC) Market share: Renesas
Slide 16: Smart Factory
SMART FACTORY SIGNIFICANTLY CONTRIBUTE TO ADVANCEMENT OF INDUSTRY 4.0 THROUGH “REAL-TIME” & “SAFETY” ACCELERATION VIA e-AI EXPAND MARKET SHARE BY LEVERAGING CURRENT POSITION IN CORE BUSINESSES Internet Industrial Ethernet: #1 in real-time processing performance par power Factory Factory Safety P
Slide 17: Smart Home
SMART HOME USING e-AI TO INTEGRATE “SMART APPLIANCES,” “HEALTHCARE,” AND “HEMS” BY LEVERAGING ON 41% SHARE HELD BY CONSUMER ELECTRONICS AND TO DOMINATE SMART HOME INDUSTRY e-AI: Development environment to embed into home appliances and healthcare devices BLE: Using minimal power to connect the w
Slide 18: Smart Infrastructure
SMART INFRASTRUCTURE INTELLIGENT SOLUTION OFFERING TO ENABLE STABLE SUPPLY OF HIGHLY-EFFICIENT INFORMATION AND ENERGY. ATTAIN LEADING MARKET SHARE IN CORE BUSINESSES THROUGH GLOBAL STANDARDIZATION ACTIVITIES RZ/G：Launched new Linux-based platform for industrial applications Smart Meter：Certified
Slide 19: Software Add-ons: Innovative Embedded Development by New Platforms
INNOVATIVE EMBEDDED DEVELOPMENT BY NEW PLATFORMS QUALIFIED SOFTWARE PACKAGE OFFERINGS SUPPORT PLATFORM BUSINESS EXPANSION Renesas Synergy TM Platform RZ/G Linux Platform * Software Add-ons Application Ecosystem Linux Standard Package GUI Framework(Qt/HTML5) Communication Voice Interface Software Gst
Slide 20: Capital Investment
CAPITAL INVESTMENT © 2016 Renesas Electronics Corporation. All rights reserved.
Slide 21: Manufacturing Structure to Meet Customer Needs
MANUFACTURING STRUCTURE TO MEET CUSTOMER NEEDS BOOST IN-HOUSE PRODUCTION EFFICIENCY AND ENHANCE FLEXIBILITY TO DEMAND FLUCTUATIONS BY OUTSOURCING Upfront investment for capacity expansion to address increasing demand Mid term investment level is expected to return to steady-state level Flexible Manu
Slide 22: Reorganization
REORGANIZATION © 2016 Renesas Electronics Corporation. All rights reserved.
Slide 23: New Renesas
NEW RENESAS PHASED REORGANIZATION PLANNED TO ACCELERATE BUSINESS GROWTH Clear business ownership to drive future growth Generate synergies with Intersil’s businesses Reinforcement of global marketing functions Strengthen device and technology development to support high value add platform so
Slide 24: Intersil Integration
INTERSIL INTEGRATION © 2016 Renesas Electronics Corporation. All rights reserved.
Slide 25: Status Update
STATUS UPDATE Various Procedures in Progress All Antitrust procedures in relevant countries have been completed except for China (clearance granted from South Korea, Germany and the US). Discussion with authorities, including CFIUS* in progress. Post-integration Planning is Underway Established
Slide 26: Expand Ability to Deliver Comprehensive Solutions
EXPAND ABILITY TO DELIVER COMPREHENSIVE SOLUTIONS Head-Up Display Camera Network Display Network Battery Management + LDD + AHL + VSP + BMIC Smart Home Network / Server Machine Vision Smart Factory Network memory CIS + PMIC High-Speed search engine + PMIC OIS + VSP + PMIC LD/PD LD/PD: Laser Diode, P
Slide 27: Page 27
© 2016 Renesas Electronics Corporation. All rights reserved. Page 27
Slide 28: 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
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