Slide 1: Direction of Renesas Group
Direction of Renesas Group Renesas Electronics Corporation ルネサス エレクトロニクス株式会社 部署名 2, 2013 August Rev. 0.00 - Hisao Sakuta, Representative Director, Chairman and CEO - Tetsuya Tsurumaru, RENESAS Group CONFIDENTIALRepresentative Director, President and COO © 2013 Renesas Electronics Corporation. All ri
Slide 2: 1. Overview of the Direction
1. Overview of the Direction © 2013 Renesas Electronics Corporation. All rights reserved. 2
Slide 3: Principles of behavior as an organization and personnel: Three kinds of autonomy
Principles of behavior as an organization and personnel Three kinds of autonomy Autonomous Management Autonomous Business Autonomous Individuals © 2013 Renesas Electronics Corporation. All rights reserved. 3
Slide 4: Principles of behavior as an organization and personnel: Pride
Principles of behavior as an organization and personnel Maximize Corporate Pride value Dreams Social Worth Ethics, Morality, Economic Value × Social Worth Fairness Economic Value Confidence Efficiency, economic potential, sales, and profit © 2013 Renesas Electronics Corporation. All rights reserved.
Slide 5: Direction of Renesas Group: mission to develop society and industry
Direction of Renesas Group Renesas’ mission - to develop society and industry To realize the above, Selection and Concentration Structural Reforms Focus on advantageous Build absolutely profitable business structure Operational Changes that supports Business and Production Reforms Optimize resources
Slide 6: Selection and Concentration (Market environment)
Selection and Concentration (Market environment) Expansion of Power saving, Fusion of middle class in environmental control and developing conscious IT countries Transition of the population Motors consume approx.60% of power The age of the Control & IT consumption and annual shipments are in develo
Slide 7: Selection and Concentration (Criteria of Judgment)
Selection and Concentration (Criteria of Judgment) Renesas’ Strategic Contribution to Business Domains Customers - Field where Renesas can contribute to customers with high technology to Automotive differentiate their products and compete in the world - Field where Renesas can contribute to the cust
Slide 8: Structural Reforms
Structural Reforms Push through the required structural reforms Events in the past Natural Disasters Approx.370 B yen Fixed Cost Break Even Stagnant Market Point Approx.210 B yen Market Change Strong Yen Decreasing Share FY09A(*) FY10A FY11A FY12A FY13E FY14E FY15E (*)Total of the two companies befo
Slide 9: 2. Review of the past years
2. Review of the past years © 2013 Renesas Electronics Corporation. All rights reserved. 9
Slide 10: Review of the past years: Production Reforms and personnel streamlining
Review of the past years ＜Production Reforms and personnel streamlining＞ <Production Reforms> Renesas Electronics started Aug.2, 2013 Current status Being restructured to build a Front end 10 sites,16 lines 9sites, 14 lines stable supply system and Fab- （in Japan） network Focusing on main factories
Slide 11: Review of the past years: Reduction of Fixed Cost
Review of the past years <Reduction of Fixed Cost> <Transition of the fixed cost> Approx.210 B yen FY09(*) 統合当初 FY10 FY11 FY12 (*)Total of the two companies before the integration © 2013 Renesas Electronics Corporation. All rights reserved. 11
Slide 12: Review of the past years: Transition of the Semiconductor Sales
Review of the past years <Transition of the Semiconductor Sales (Results)> 12,000 Semiconductor Sales 101.9 (B yen) 10,000 MCU -11.1％ ＋5.4％ 78.6 8,000 72.5 A&P 6,000 SoC 4,000 その他 Others 2,000 市場推移(*) Market growth(*) 0 FY11 2010年度 FY12 2011年度 FY13 2012年度 (*) FY11 = 100 © 2013 Renesas Electronics Co
Slide 13: 3. Selection and Concentration
3. Selection and Concentration © 2013 Renesas Electronics Corporation. All rights reserved. 13
Slide 14: Selection and Concentration – Renesas' Advantage
Selection and Concentration – Renesas’ Advantage No.1 MCU maker in the world market - Global sales network and customer support 新興国とof Expansion middle class in - Solution for home appliances in developing countries 中間層拡大 developing countries Power saving technology contributing energy saving - Low
Slide 15: Selection and Concentration – Renesas' Advantage: Market Environment
Selection and Concentration – Renesas’ Advantage Market Environment Firmly keep the power train and HEV/EV business Expansion of the chassis, safety and body business globally Expansion of 新興国と middle class in Fusion of safety driving assist and navigation 中間層拡大 developing Auto- Enhancement
Slide 16: Selection and Concentration - Automotive
Selection and Concentration - Automotive Automotive Semiconductors WW Company CY11 CY12 1 Renesas 13.8% 14.2% 2 Infineon 9.8% 9.1% 3 STMicro 8.7% 7.9% 4 Freescale 7.9% 7.0% 5 NXP 6.4% 6.3% Automotive processors （MCU/MPU） WW 車載アナログASIC＆パワー半導体 Automotive WW (*) WW Analog & Power semiconductors Company
Slide 17: Selection and Concentration – 3 types of solutions
Selection and Concentration – 3 types of solutions Platform Solution Provide values to Eco systems customers Solution menu Predominant technologies Kit Solution A&P SoC MCU Kits for systems Sample SW Devise Solution SoC MCU A&P Single Evaluation SW body evaluation MCU, ASSP © 2013 Renesas Electronic
Slide 18: Example of Solution Business (1): Kit Solution
Example of Solution Business (1) Kit Solution The market needs speed with turnkey solution Example of solution for home appliances (cooperation with IDHs in India) IDH: Independent Design House Cooperate with Motor Reference Kit potent IDHs in India Kit Company A, B, Solution C and D Device Solution
Slide 19: Example of Solution Business (2): Platform Solution
Example of Solution Business (2) Platform Solution Respond to various customers centering optimized platform for each field Example of responding spreading international standard of Industrial Ethernet The industrial Ethernet standards that Industrial Ethernet platform industrial device makers (seve
Slide 20: 4. Structural Reforms
4. Structural Reforms © 2013 Renesas Electronics Corporation. All rights reserved. 20
Slide 21: Implementation of production Reforms: Own sites
Implementation of production Reforming and further progress Policy of the Production Reforms Retain and enhance Renesas’ advantageous technology (power saving and high quality) Build a flexible production system to correspond market change Raise efficiency of production (to realize cost perfor
Slide 22: Production Reforms (Front-end)
Production Reforms (Front-end) Site Process Before Structural Reforms After Structural Reforms (inch) Naka 12 8 Continue production as Renesas’ main sites Kawashiri 8 Saijo 8 Tsuruoka 12 Planned to be closed in 2 or 3 years • Production will be transferred to 5 own sites or outsourcing sites. Shiga
Slide 23: Production Reforms (Back-end)
Production Reforms (Back-end) After Structural Site Before Structural Reforms Reforms Yonezawa Continue production as Renesas’ main sites Oita Yanai Planned to be closed in 2 • Production will be years transferred to own sites or Yamaguchi (Ube) Planned to be closed in 1 outsourcing sites. year • EO
Slide 24: Flexible Production
Build Production System to deliver appropriate products to customers Flexible Production Special Retain and enhance advantageous technology Feature Customer Outsource (Foundry/Subcontractor) General Outsource Outsource (Foundry/Subcontractor) (Foundry/Subcontractor) Market Change Little Great Life C
Slide 25: Operation Change that is supporting Business and Production Reforms
Operation Change that is supporting Business and Production Reforms Senior Vice Presidents (16 -> 8), Business Units (7 -> 5), Divisions (49 -> 34) Design / Development Production Sales /Marketing Found production Integrate sales subsidiaries Restructure sites companies to Renesas United operation b
Slide 26: Image of Fixed Costs and Break Even Point
Image of Fixed Costs and Break Even Point Fixed Cost Approx.370 B yen Break Even Point Approx.210 B yen FY09A(*) FY10A FY11A FY12A FY13E FY14E FY15E (*)Total of the two companies before the integration © 2013 Renesas Electronics Corporation. All rights reserved. 26
Slide 27: 5. Summary
5. Summary © 2013 Renesas Electronics Corporation. All rights reserved. 27
Slide 28: Summary: Renesas' mission - to develop society and industry
Summary Renesas’ mission - to develop society and industry To realize the above, Selection and Concentration Structural Reforms Focus on advantageous Build absolutely profitable business structure Operational Changes that supports Business and Production Reforms Optimize resources on business © 2013
Slide 29: Renesas Electronics Corporation
Renesas ルネサスElectronics Corporation エレクトロニクス株式会社 © 2013 Renesas Electronics Corporation. All rights reserved.