Slide 1: FY11/3 Q2 Financial Results
FY11/3 Q2 Financial Results Renesas Electronics Corporation October 27, 2010 Yasushi Akao, President © 2010 Renesas Electronics Corporation. All rights reserved. 00000-A
Slide 2: Notes and Forward-Looking Statements
(NOTE) FY10/3 consolidated results are sum of respective results of the former NEC Electronics Corporation and the former Renesas Technology Corp. The amount of “Net sales” and “Sales from semiconductors” are presented by rearranging the former Renesas Technology’s sales account to adjust presentati
Slide 3: Executive Summary
Executive Summary Net sales in the first half ended September 30, 2010 were in line with the company’s expectation. Achieved operating profit by improving the sales cost ratio and by streamlining R&D cost through reviewing of product portfolio. Expect to maintain operating profit in the second-half.
Slide 4: I. FY11/3 Q2 Financial Results
I. FY11/3 Q2 Financial Results 4 © 2010 Renesas Electronics Corporation. All rights reserved.
Slide 5: FY11/3 Q2 Financial Snapshot
FY11/3 Q2 Financial Snapshot Q2 sales increased by 1% QoQ Achieved operating profit FY10/3 FY11/3 (B Yen) Q2 Q1 Q2 YoY QoQ Net Sales 265.0 292.0 295.4 +30.4 +3.4 Semiconductor Sales 234.4 261.5 263.5 +29.1 +2.0 Operating Income (Loss) -43.9 -0.3 1.1 +45.0 +1.4 Ordinary -48.4 -3.5 -4.3 +44.1 -0.7 Inc
Slide 6: Q2 Semiconductor Sales (YoY / QoQ)
Q2 Semiconductor Sales (YoY / QoQ) Sales of both MCUs and Analog & Power devices increased significantly YoY FY11/3 (B Yen) Q2 YoY (%) QoQ (%) Sales Overview by BU (QoQ) Semiconductor MCU Sales 263.5 +12% +1% [→]: General-purpose MCU stayed flat [↓]: Decrease in sales of automotive MCU mainly in Jap
Slide 7: Factors in Operating Income (Loss) in QoQ Comparison
Factors in Operating Income (Loss) in QoQ Comparison Achieved operating profit in Q2 Operating Income (Loss) (B Yen) FY11/3 Q1 FY11/3 Q2 Decreased profit Result Result from currency ＝ 1 US$ 92 yen ＝ 1 US$ 88 yen Increased GP: impact: 1 Euro＝121 yen 1 Euro＝111 yen Approx. +7.5 B yen Approx. -3.0 B ye
Slide 8: Factors in Operating Income (Loss) in Comparison with Forecasts
Factors in Operating Income (Loss) in Comparison with Forecasts Q2 operating income was higher than had been estimated despite the lower-than-estimated sales Operating Income (Loss) (B Yen) FY11/3 Q2 FY11/3 Q2 Previous Result Forecast ＝ 1 US$ 88 yen ＝ 1 US$ 88 yen 1 Euro＝111 yen 1 Euro＝111 yen Decre
Slide 9: Balance Sheets
Balance Sheets As of (B yen) Apr. 1, 2010 As of As of (After the capital Jun. 30, 2010 Sep. 30, 2010 injection) Total Assets 1,215.4 1,151.0 1,162.7 Cash and Cash Equivalents 337.7 318.6 331.8 Inventories 126.6 130.7 135.9 Liabilities 801.7 777.5 799.2 Interest-bearing Debt 372.0 375.4 374.4 Shareho
Slide 10: Cash Flow
Cash Flow FY10/3 FY11/3 (B yen) Q2 Q1 Q2 1H Cash Flows from Operating 18.0 -2.0 35.0 33.0 Activities Cash Flows from Investing -16.2 -14.4 -18.4 -32.8 Activities Free Cash Flows 1.8 -16.4 16.6 0.2 10 © 2010 Renesas Electronics Corporation. All rights reserved.
Slide 11: II. FY11/3 2H and Full-Year Forecasts
Ⅱ. FY11/3 2H and Full-Year Forecasts 11 © 2010 Renesas Electronics Corporation. All rights reserved.
Slide 12: FY11/3 Financial Forecasts
FY11/3 Financial Forecasts Aim to secure operating profit by steadily implementing plans decided through the 100-Day Project Revised second-half and full-year net sales addressing stagnant market conditions and currency impact FY10/3 FY11/3 2H Full-Year Difference from (B Yen) 1H 2H Full-Year 1H Act
Slide 13: Forecast for FY11/3 2H Semiconductor Sales
Forecast for FY11/3 2H Semiconductor Sales Expect to increase in actual sales excluding currency impacts though remaining flat compared with 1H results FY11/3 B yen Semiconductor Sales Sales Overview by BU (Compared with FY11/3 1H) 525 525 0% MCU [→]: Demands for automotive (1H→2H) MCUs are expected
Slide 14: FY11/3 2H MCU Sales Forecast
FY11/3 2H MCU Sales Forecast Forecast by Business Area (FY11/3 1H →2H) ・Expect Vehicle production to increase due to continuously solid sales in the US, China and other emerging markets. MCU Business Automotive Market trend ・Automotive sales in Japan are expected to MCU decrease followed by terminat
Slide 15: FY11/3 2H Analog & Power Device Sales Forecast
FY11/3 2H Analog & Power Device Sales Forecast Forecast by Business Area （FY11/3 1H→2H） ・ Despite a temporary deceleration due to inventory adjustments of the PC market, sales of motherboards and power supply are expected to Power Market recover. Devices Trend ・Despite decelerating demand in Western
Slide 16: FY11/3 2H SoC Sales Forecast
FY11/3 2H SoC Sales Forecast Forecast by Business Area （FY11/3 1H→2H） ・Smartphones are expected to spur repurchase Mobile Devices demand in developed countries. (Mobile phones, Market ・Strong repurchase demand in emerging countries. SoC business CIS, etc) Trend ・Expect solid demand for mobile phones
Slide 17: FY11/3 2H Operating Income (Loss) Forecasts
FY11/3 2H Operating Income (Loss) Forecasts (HoH Comparison) Operating Income (Loss) Secure operating profit in the second (B Yen) half by executing plans formulated FY11/3 1H FY11/3 2H through the 100-day Project Result Forecast ＝ 1 US$ 90 yen 1 US$＝82 yen 1 Euro＝116 yen 1 Euro＝110 yen Decreased R&
Slide 18: III. Progress on the 100-Day Project
Ⅲ. Progress on the 100-Day Project 18 © 2010 Renesas Electronics Corporation. All rights reserved.
Slide 19: Establish MCU-Dedicated Business Division in China
Establish MCU-Dedicated Business Division in China Position China, which drives w/w market, as the most important market and strengthen MCU business structure in China starting October 1, 2010 Rapidly capture the dramatically changing Chinese market environment and customer needs and achieve “Just i
Slide 20: Promote the Strengthening of Analog & Power Device Business
Promote the Strengthening of Analog & Power Device Business Achieve a growth rate that exceeds the market growth rate ・Strengthen product lineups of power devices extending from low-voltage to high-voltage （Launch 1,000 products in 3 years) Measures to Attain growth ・Expand kit solutions that combin
Slide 21: Strengthen Mobile Multimedia SoC Business
Strengthen Mobile Multimedia SoC Business Establish new company for mobile multimedia SoC business and conclude agreement of absorption-type separation Acquire new orders of LTE modem chipset solutions Commence operation Completion of acquisition of on Dec 1, 2010 Nokia wireless modem business on No
Slide 22: Merger Synergies
Merger Synergies Improve sales efficiency Optimization of sales channels Decreased the number of distributors from 30 to16 and started new sales channels from Oct 1 Integrate sales sites Integrate major domestic branch company/office from 17 to 11 Close down 5 offices to 6 sites by the end of Decemb
Slide 23: Construction Measures
Construction Measures Measures to streamline Promoted measures planned in 1H as human resources scheduled. Plan to complete most of the measures by the end of FY11/3 Internal shift Shift resources to focused business of resources Complete Streamline human Implement early retirement program (As of Ma
Slide 24: IV. Summary
IV. Summary 24 © 2010 Renesas Electronics Corporation. All rights reserved.
Slide 25: Summary
Sales in the second half are expected to remain flat from the first half despite the stagnant market condition and currency impact. Achieve operating profit by steadily implementing all the measures formulated through the 100-day Project. Promote structural reforms to attain net profit in FY12/3 and
Slide 26: Renesas Electronics Corporation
Renesas Electronics Corporation © 2010 Renesas Electronics Corporation. All rights reserved.