Renesas Electronics Corporation · TSE:6723

Renesas Electronics — Q2 FY2014/3 Earnings Presentation

22 slides from Renesas Electronics's earnings presentation, Oct 30, 2013

  1. Slide 1: FY14/3 Q2 Financial Results

    FY14/3 Q2 Financial Results Renesas Electronics Corporation October 30, 2013 Tetsuya Tsurumaru, Representative Director, President and COO

  2. Slide 2: FY14/3 Q2 Financial Results and Q3 Forecasts

    I. FY14/3 Q2 Financial Results II. FY14/3 Q3 Forecasts © 2013 Renesas Electronics Corporation. All rights reserved. 2

  3. Slide 3: Executive Summary

    Executive Summary Ⅰ. FY14/3 Q2 Financial Results  Semiconductor sales were 207.7 billion yen, 9.6% increase QoQ, mainly due to a seasonal sales peak that recur in Q2 from year to year  Secured operating profit by three quarters in a row with 10.9 billion yen operating income, an increase by 1.1 bi

  4. Slide 4: I. FY14/3 Q2 Financial Results

    I. FY14/3 Q2 Financial Results © 2013 Renesas Electronics Corporation. All rights reserved. 4

  5. Slide 5: Financial Results

    FY14/3 Q2 Financial Results FY13/3 FY14/3 Difference from (B Yen) Q2 Q1 Q2 QoQ Aug 2, 2013 217.8 +18.8 +8.9 Net Sales 222.8 199.1 (＋9.4%) (＋4.3%) 207.7 +18.1 +7.3 Semiconductor Sales 205.3 189.6 (＋9.6%) (＋3.7%) Operating Income (Loss) -5.7 9.8 10.9 +1.1 +6.7 Ordinary Income (Loss) -6.8 8.5 5.4 -3.2

  6. Slide 6: Quarterly Financial Results

    Quarterly Financial Results FY13/3 FY14/3 Q1 Q2 Q3 Q4 Q1 Q2 (B Yen) 222.8 199.1 217.8 Net Sales 191.0 185.4 186.6 Semiconductor 205.3 207.7 Sales 177.2 189.6 168.2 173.9 8.0 9.8 10.9 Operating Income (Loss) -5.7 -7.9 -17.6 © 2013 Renesas Electronics Corporation. All rights reserved. 6

  7. Slide 7: Semiconductor Sales by Product Categories (1)

    FY14/3 Q2 Semiconductor Sales by Product Categories (1) FY13/3 FY14/3 (B Yen) YoY QoQ Q2 Q1 Q2 Semiconductor +2.4 +18.1 205.3 189.6 207.7 (＋1.2%) (＋9.6%) Sales (Total) +7.9 +3.2 MCU 80.9 85.6 88.9 (＋9.8%) (＋3.8%) +4.3 +7.0 Analog & Power 68.1 65.3 72.3 (＋6.3%) (＋10.8%) -9.7 +8.5 SoC 55.0 36.8 45.3 (

  8. Slide 8: Semiconductor Sales by Product Categories (2)

    FY14/3 Q2 Semiconductor Sales by Product Categories (2) Sales of automotive MCU remained strong mainly in Japan Automotive MCU Q2 Sales of general-purpose MCU increased QoQ, due to General- Approx. purpose steady movements of (1) the consumer electronics from the Sales 55％ Approx. increase in dema

  9. Slide 9: Trends in Net Sales and Gross Profit Ratio

    Trends in Net Sales and Gross Profit Ratio (B Yen) Gross Profit Ratio 450.6 432.5 416.9 409.4 376.4 Other SoC A&P Consolidated Net Sales MCU © 2013 Renesas Electronics Corporation. All rights reserved. 9

  10. Slide 10: Operating Income (Loss) in QoQ Comparison

    FY14/3 Q2 Operating Income (Loss) in QoQ Comparison Increase in manufacturing cost (B Yen) +6.6 -1.4 Increase in Improved profit from -4.1 R&D and SG&A increased sales +9.8 (including currency +10.9 impact) FY14/3 FY14/3 Q1 Q2 R&D： Research and development cost, SG&A： Selling, general and administra

  11. Slide 11: Operating Income (Loss) in Comparison with Forecasts

    FY14/3 Q2 Operating Income (Loss) in Comparison with Forecasts (As of August 2, 2013) (B Yen) Decrease in +10.9 R&D, SG&A +0.1 +4.2 +3.7 Decrease in manufacturing +2.9 Improved cost profit from increase in sales (including FY14/3 currency FY14/3 Q2 (Forecast) impact) Q2 (Result) © 2013 Renesas Elect

  12. Slide 12: 1H Operating Income Loss in YoY Comparison

    FY14/3 1H Operating Income Loss in YoY Comparison +20.7 (B Yen) FY13/3 1H +27.9 Reduced cost, etc. fixed- FY14/3 1H +16.1 -23.3 Improved profit from increase in sales (including currency impact) © 2013 Renesas Electronics Corporation. All rights reserved. 12

  13. Slide 13: Net Income (Loss)

    FY14/3 Q2 Net Income (Loss) FY14/3 Q2 (B Yen) Operating Net Income (Loss) Income (Loss) Non-operating +10.9 income (loss) -5.5 B Yen Special income (loss) -11.2 B Yen [Breakdown of special loss] - Implementation of early retirement program - Business and manufacturing- related structural reforms Inc

  14. Slide 14: Special Income (Loss) in Comparison with Forecasts

    FY14/3 Q2 Special Income (Loss)in Comparison with Forecasts (As of August 2, 2013) (B Yen) -11.2 +9.9 Gain on transfer of +10.9 mobile business, etc. (including reviewing -32.0 Lower-than- of provision from Q1) estimated early FY14/3 Q2 FY14/3 Q2 (Forecast) retirement cost (Result) © 2013 Renesas El

  15. Slide 15: Balance Sheets

    Balance Sheets (B Yen) As of Mar. 31, 2013 As of Jun. 30, 2013 As of Sep. 30, 2013 Total Assets 669.1 668.4 796.2 Cash and Cash 77.7 95.8 239.3 Equivalents Inventories 151.3 143.7 136.7 Liabilities 591.2 588.1 574.4 Interest-Bearing Debt 306.4 299.4 287.4 Shareholders’ Equity 75.8 71.9 213.0 Net Ass

  16. Slide 16: Cash Flow

    Cash Flow FY13/3 FY14/3 (B Yen) Q1 Q2 Q3 Q4 Q1 Q2 Cash Flows from Operating -18.1 4.6 -47.5 6.9 28.4 9.0 Activities Cash Flows from Investing -10.7 -9.8 -6.1 -16.6 -2.5 -6.5 Activities Free Cash Flows -28.7 -5.2 -53.6 -9.7 25.9 2.5 © 2013 Renesas Electronics Corporation. All rights reserved. 16

  17. Slide 17: II. FY14/3 Q3 Forecasts

    II. FY14/3 Q3 Forecasts 17

  18. Slide 18: Q3 Consolidated Financial Forecasts

    FY14/3 Q3 Consolidated Financial Forecasts FY13/3 FY14/3 Q3 Q2 Q3 YoY QoQ Q3 (B Yen) (Actual) (Actual) (Forecast) (Accumulative) Net Sales 191.0 217.8 197.0 ＋6.0 -20.8 613.9 Semiconductor Sales 177.2 207.7 190.0 ＋12.8 -17.7 587.3 Operating Income (Loss) -7.9 10.9 16.0 ＋23.9 ＋5.1 36.7 Ordinary Income

  19. Slide 19: Forecast for FY14/3 Q3 Semiconductor Sales

    Forecast for FY14/3 Q3 Semiconductor Sales (QoQ Comparison) Growth (B Yen) rate 【Semiconductor Sales】 【207.7】 -8.4% 【190.0】 [Major factors affecting Q3 semiconductor sales] SoC 453 -6-9% ・Expect overall automotive products to show steady growth A&P -6-9% ・Expect mid/small sized display driver ICs to

  20. Slide 20: Q3 Operating Income (Loss) Forecasts

    FY14/3 Q3 Operating Income (Loss) Forecasts (QoQ Comparison) +16.0 Decreased profit from (B Yen) sales decline (including +10.9 currency impact) Manufacturing +14.6 cost (reduced -6.6 inventory, etc.) Decreased cost -2.9 FY14/3 Q2 FY14/3 Q3 © 2013 Renesas Electronics Corporation. All rights reserved

  21. Slide 21: Q3 Net Income (Loss) Forecasts

    FY14/3 Q3 Net Income (Loss) Forecasts FY14/3 Q3 (B Yen) Income taxes, etc. and minority interests Operating Net -3.5 B Yen Income (Loss) Income (Loss) Special income (loss) +14.5 B Yen [Factors affecting special income (loss)] Special income from gain on +24 Non- transfer of mobile business operatin

  22. Slide 22: 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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