Slide 1: FY16/3 Financial Results
FY16/3 Financial Results Renesas Electronics Corporation May 11, 2016 © 2016 Renesas Electronics Corporation. All rights reserved.
Slide 2: FY16/3 Financial Results (Non-GAAP note)
FY16/3 Financial Results Since FY16/3, Renesas Electronics Group (hereinafter “the Group”) started to disclose Non-GAAP financial measures (hereinafter “Non-GAAP basis”) used for management’s decision making. The Group defines the Non-GAAP consolidated financial results as financial accounting figur
Slide 3: FY16/3 Q4 and Full-Year Summary of Financial Results
FY16/3 Q4 and Full-Year Summary of Financial Results Major factors affecting increase or decrease in Q4 semiconductor sales Semiconductor Sales - Semiconductor sales were expected to be flat QoQ, however turned 163.2 billion yen, a 2.3 billion yen increase, due to an increase in Automotive sales M
Slide 4: Q4 and Full-Year Financial Snapshot
FY16/3 Q4 and Full-Year Financial Snapshot Q4 net sales and profits were slightly better than expected Although net sales for full-year decreased, operating income remained at the same level as previous year and net income improved YoY YoY and QoQ results as well as the Difference from previous fore
Slide 5: Semiconductor Sales by Business (Non-GAAP Basis)
Non-GAAP Semiconductor Sales by Business (Non-GAAP Basis *1) Automotive: Increase of 3% QoQ, but decreased by 1% YoY due to decrease in Automotive Information sales General-Purpose: Remained flat QoQ, however declined by 12% YoY, due to structural reforms and decrease in Other General-Purpose sales
Slide 6: Quarterly Financial Results (Non-GAAP Basis)
Non-GAAP Quarterly Financial Results (Non-GAAP Basis) Despite a QoQ decline in gross and operating margins due to a rebound from temporary factors that contributed to the first-half gross margin, supported by increased sales, they both improved in the Q4 from the previous forecasts Semiconductor Sal
Slide 7: Trends in R&D and SG&A Results (Non-GAAP Basis)
Non-GAAP Trends in R&D and SG&A Results (Non-GAAP Basis) With the enhanced development of focus domains, R&D ratio is on a rising trend R&D (B yen) SG&A (B yen) 40.0 40.0 33.9 31.7 32.7 29.2 28.9 29.2 31.3 29.2 27.8 27.7 30.0 27.1 26.5 27.0 27.2 30.0 23.4 25.5 23.2 24.3 22.1 24.4 23.5 19.9 20.9 19.7
Slide 8: Improved Profit through the Reform Plan
Improved Profit through the Reform Plan Improved gross margin and cost efficiency measures have expanded operating margin 833.0 Net Sales (B yen) 785.8 791.1 693.3 44.1% 40.3% 37.2% 15.0% 30.9% Gross Margin 33% 13.2% 8.1% 103.8 104.4 100.0 Operating Margin -3.0% 67.6 -23.2 Operating Profit/Loss FY12
Slide 9: Transition of GP ratio
Transition of GP ratio Despite positive factors of currency impact and manufacturing-related cost reductions, low GP products continue to negatively impact GP ratio △1.4Pts +9.1Pts Worsening of GP due to low GP products (within focus products) +5.5Pts Improved GP ratio thanks to structural reforms 4
Slide 10: Change in Fiscal Term And Future Outlook
Change in Fiscal Term And Future Outlook © 2016 Renesas Electronics Corporation. All rights reserved. ページ Page 10 10
Slide 11: Change in Fiscal Term And Consideration of IFRS Adoption
Change in Fiscal Term And Consideration of IFRS Adoption Building a solid foundation of a global company that can thrive in the global market Adopt regulations generally accepted in int’l capital markets and used by most of our competitors Int’l Closing term Int’l Accounting Standards December closi
Slide 12: FY16/12 Q1 Financial Forecasts
FY16/12 Q1 Financial Forecasts Due to the damages caused by the Kumamoto Earthquake that occurred after April 14, 2016 to the Group’s manufacturing site and the impact on its supply chain, it is difficult to specify reliable and accurate forecasts at this moment The Group plans to announce the f
Slide 13: Future Outlook
Future Outlook Challenges for achieving targets of the Reform Plan FY 2016（April – December 2016） Reform Plan target FY 2016 market conditions FY 2016 2016 Kumamoto Earthquake Uncertainty in the climate Gross surrounding Renesas margin 45％ Towards Committed to achieving Worsening GP factors due to
Slide 14: APPENDIX
APPENDIX © 2016 Renesas Electronics Corporation. All rights reserved. ページ Page 1414
Slide 15: GAAP/Non-GAAP Reconciliation
GAAP/Non-GAAP Reconciliation FY14/03 FY15/03 FY16/03 (B Yen) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Semiconductor Sales (GAAP) ① 189.6 207.7 207.6 191.8 201.2 199.6 177.4 175.1 174.5 177.0 160.9 163.2 Renesas SP Drivers*1 ② -14.3 -18.3 -19.0 -14.1 -17.6 -21.0 - - - - - - Semiconductor Sales (Non-GAAP)
Slide 16: Balance Sheets
Balance Sheets Equity ratio improved up to the 40% range As of Mar. As of Jun. As of Sep. As of Dec. As of Mar. （B Yen) 31, 2015 30, 2015 30, 2015 31, 2015 31, 2016 Total Assets 840.1 851.8 866.4 862.8 849.4 Cash and Cash Equivalents 343.7 368.7 388.1 405.1 398.4 Inventories 111.4 113.1 116.6 114.9
Slide 17: Cash Flows
Cash Flows FY15/3 FY16/3 （B Yen） Q1 Q2 Q3 Q4 Q1 Q2 Q3 4Q Cash Flows from 2.0 24.2 Operating Activities 49.5 41.0 31.5 45.1 32.6 17.0 Cash Flows from -10.9 -8.0 Investing Activities -14.9 7.2 -5.4 -12.0 -9.7 -6.5 Free Cash Flows -8.9 34.7 48.2 16.2 26.2 33.1 23.0 10.5 © 2016 Renesas Electronics Corpo
Slide 18: Trends in Core and Non-Core Business Sales Ratio and Gross Margin
Non-GAAP Trends in Core and Non-Core Business Sales Ratio and Gross Margin (Non-GAAP Basis) Continuously improving gross margin through structural reforms and reforming business structure to become resistant to market volatility 120% 55.0% Core Businesses Non-core businesses（Excl. Renesas SP Drivers
Slide 19: FY16/3 Q4 Operating Income
FY16/3 Q4 Operating Income QoQ (B yen) Despite a sales increase, Q4 operating profit decreased by 9.2 billion yen QoQ due to increased cost, a decrease in profit from inventory variations and negative currency impact Decrease in profit from inventory variations Currency impact -1.7 +3.4 -1.6 -3.5
Slide 20: FY16/3 Q4 Operating Income vs Forecasts
FY16/3 Q4 Operating Income In Comparison with Forecasts (Feb 9, 2016) QoQ (B Yen) Increased by 3.8 billion yen from the previous forecast supported by an increase in profit from sales increase and inventory variations, cost containment effects etc. Increase in profit from inventory Decreased Incre
Slide 21: FY16/3 Q4 Net Income Attributable to Shareholders of Parent Company
FY16/3 Q4 Net Income Attributable to Shareholders of Parent Company (B Yen) Recorded net income attributable to shareholders of parent company of 10.3 B yen Non-operating income (loss) -4.5 Special income (loss) Income taxes, non-controlling interests -2.2 +1.2 15.7 Non-operating income +0.6 10.3
Slide 22: FY16/3 Full-Year Operating Income
FY16/3 Full-Year Operating Income YoY(B Yen) Despite the large decline in profit caused by sales decreases and gross profit from the transfer of Renesas SP Drivers, operating income stayed at the same level as previous year with 103.8 billion yen, due to the decrease in manufacturing- fixed costs
Slide 23: FY16/3 Full-Year Net Income Attributable to Shareholders of Parent Company
FY16/3 Full-Year Net Income Attributable to Shareholders of Parent Company (B Yen) Recorded net income attributable to shareholders of parent company of 86.3 billion yen due to a special loss of 13.9 billion yen Non-operating income (loss) Special income -1.7 (loss) -11.3 -4.5 Income taxes, non-co
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