Slide 1: FY13/3 Q2 Financial Results
FY13/3 Q2 Financial Results Renesas Electronics Corporation October 29, 2012 Masahiko Sagawa, Senior Vice President
Slide 2: Executive Summary
Executive Summary I. FY13/3 Q2 Financial Results Semiconductor sales increased to 205.3 B yen, an increase by 22% QoQ, due to the end of temporary sales decrease affected by integration of the company’s IT systems in Q1, and also driven by large-scale custom projects Operating loss improved by 11.
Slide 3: I. FY13/3 Q2 Financial Results
I. FY13/3 Q2 Financial Results 3 © 2012 Renesas Electronics Corporation. All rights reserved.
Slide 4: Q2 Financial Snapshot
FY13/3 Q2 Financial Snapshot Improved both semiconductor sales (by 22%) and operating loss (by 11.9 B yen), due to the end of temporary sales decrease affected by integration of the company’s IT systems in Q1, and also driven by large-scale custom projects Recorded net loss of 94.3 B yen due to
Slide 5: Quarterly Financial Results
Quarterly Financial Results FY12/3 FY13/3 Q1 Q2 Q3 Q4 Q1 Q2 (B yen) 243.3 Net Sales 222.9 222.8 207.2 209.7 186.6 Semi. Sales 184.0 218.2 198.0 185.8 168.2 205.3 Operating -10.1 -4.0 -5.7 -19.1 -23.6 -17.6 Income (Loss) 5 © 2012 Renesas Electronics Corporation. All rights reserved.
Slide 6: Q2 Semiconductor Sales by Business (1)
FY13/3 Q2 Semiconductor Sales by Business (1) Q2 semiconductor sales improved by 22% QoQ, driven by large- scale custom projects in A&P and SoC businesses FY12/3 FY13/3 (B yen) QoQ Q2 Q1 Q2 Semiconductor +37.1 218.2 168.2 205.3 (＋22%) Sales (Total) +5.5 MCU 87.5 75.4 80.9 (＋7％) Analog & +13.3 67.2
Slide 7: Q2 Semiconductor Sales by Business (2)
FY13/3 Q2 Semiconductor Sales by Business (2) Automotive: Consumer: General-purpose MCU sales increased by over 15% QoQ due approx. 55% approx. 20% to increase in all segments including consumer and industry, MCU however, most of increases seemed to come from the end of 2Q Industry: temporary sales
Slide 8: Q2 Operating Income (Loss) QoQ
FY13/3 Q2 Operating Income (Loss) QoQ Operating loss improved by 11.9 B yen QoQ due to higher profit from sales increase and decreased R&D and SG&A FY13/3 FY13/3 Q1 Q2 (B yen) -5.7 +5.7 Decreased R&D and SG&A +8.3 -17.6 -2.1 Higher profit from sales increase Currency impact 8 © 2012 Renesas Electr
Slide 9: Q2 Net Income (Loss)
FY13/3 Q2 Net Income (Loss) Recorded net loss of 94.3 B yen due to special loss of 85.9 B yen from implementation of the early retirement program and others despite significantly-improved operating income (loss) FY13/3 Q2 (B yen) Operating Net Income (Loss) Operating Income (Loss): Income (Loss) -
Slide 10: Q2 Balance Sheets
FY13/3 Q2 Balance Sheets As of Mar. 31, As of Jun. 30, As of Sep. 30, (B yen) 2012 2012 2012 Total Assets 858.2 785.7 748.3 Cash and Cash 131.9 87.0 69.6 Equivalents Inventories 151.8 163.8 147.9 Liabilities 631.7 585.4 641.4 Interest-Bearing Debt 258.3 246.5 239.3 Shareholders’ Equity 243.4 222.7 1
Slide 11: Q2 Cash Flows
FY13/3 Q2 Cash Flows FY12/3 FY13/3 (B yen) Q2 1H Full-year Q1 Q2 1H Cash Flows from Operating 8.0 -21.1 -9.7 -18.1 4.6 -13.5 Activities Cash Flows from Investing -17.8 -32.6 -55.1 -10.7 -9.8 -20.5 Activities Free Cash Flows -9.7 -53.7 -64.8 -28.7 -5.2 -34.0 11 © 2012 Renesas Electronics Corporation.
Slide 12: II. FY13/3 Financial Forecasts
II. FY13/3 Financial Forecasts 12 © 2012 Renesas Electronics Corporation. All rights reserved.
Slide 13: Financial Forecasts
FY13/3 Financial Forecasts Left FY13/3 financial forecasts unchanged from the previous forecasts announced on August 2, 2012 Consolidated financial forecasts for the fiscal year ending March 31, 2013 (In millions of yen) Operating Ordinary Net income Net sales income income (loss) (loss) Year endi
Slide 14: III. Progress of Reduction in Human Resources and Production Structural Reforms
III. Progress of Reduction in Human Resources and Production Structural Reforms 14 © 2012 Renesas Electronics Corporation. All rights reserved.
Slide 15: Measures Taken to Date in Order to Establish a Robust and Profitable Business Structure
Measures Taken to Date in Order to Establish a Robust and Profitable Business Structure Faithfully executed on various measures post Apr. 2010 establishment, aimed at realizing merger synergies and implementing structural reforms Implemented early retirement program (7,446 employees) Structural an
Slide 16: Reduction in Human Resources: Implementation of the Early Retirement Program
Reduction in Human Resources: Implementation of the Early Retirement Program Overview of the Program (Announced on July 3, 2012) (1)Eligible persons: Employees of Renesas Electronics Corporation and its consolidated subsidiaries in Japan (2)Application period: September 18 to September 26, 2012 (3)R
Slide 17: Progress of Production Structural Reforms
Progress of Production Structural Reforms Progress as planned in structural reforms including transfer of a back-end site, Renesas High Components (RHC), which was decided as the first item after announced production structural reforms on July 3, 2012 Sites/Lines after Current Direction Production
Slide 18: IV. Rebuilding Financial Strength
IV.Rebuilding Financial Strength 18 © 2012 Renesas Electronics Corporation. All rights reserved.
Slide 19: Steps Toward Long-Term Financial Strength
Steps Toward Long-Term Financial Strength in Parallel with Proceeding Structural Reforms Improved current financial strength, Step 3 securing money required for the Improve cash flows from operating structural reforms activities toward long-term Step 2 financial strength Restructured short-term de
Slide 20: Step 1: New Money Secured
Step 1: New Money Secured Financing from major shareholders and main banks Received total 49.5 B yen from three major shareholders on October 1, 2012 Received total 47.5 B yen from four main banks on October 1, 2012 3 major Approx. 100 B yen of 4 main banks shareholders financial support in to
Slide 21: Step 2: Restructured Short-term Debt
Step 2: Restructured Short-term Debt Short-term debt was moved to long-term commitment A syndicated loan package was completed by our main banks on Sep. 28, 2012 Short-term debt of 161.1 B yen was moved to long-term commitment Debt Breakdown Debt Breakdown （2012.6.30） （Based on B/S of 2012.6.3
Slide 22: Step 3: Improve Financial Strength with Better Operating Cash Flows
Step 3: Improve Financial Strength with Better Operating Cash Flows Improve financial health through steady process of restructuring Steadily proceed structural reforms by allocating new money to restructuring costs while maintaining sufficient working capital Rebuild financial strength by red
Slide 23: Summary
Summary FY13/3 Q2 net sales and operating income (loss) resulted within the original forecasts Recorded special loss of approximately 84 B yen in FY13/3 Q2 due to implementation of the early retirement program in Japan, while expecting to reduce labor costs by approximately 53 B yen a year Ste
Slide 24: 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