Slide 1: FY11/3 Financial Results
FY11/3 Financial Results Renesas Electronics Corporation May 18, 2011 Yasushi Akao, President © 2011 Renesas Electronics Corporation. All rights reserved. 00000-A
Slide 2: Forward-looking statements
(FOREWARD-LOOKING STATEMENTS) 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 accou
Slide 3: Executive Summary
Executive Summary I ．FY11/3 Financial Results Achieved operating profit for full-year through steady implementation of structural reforms and merger synergies, though net sales were below the company’s expectation due to the impact of the Great East Japan Earthquake, etc. Recorded special loss of
Slide 4: I. FY11/3 Financial Results
I. FY11/3 Financial Results 4 © 2011 Renesas Electronics Corporation. All rights reserved.
Slide 5: FY11/3 Financial Snapshot
FY11/3 Financial Snapshot Attained operating profit for full-year, achieving the first- year management goal following the merger Recorded special loss from earthquake in addition to structural reforms FY11/3 Q4 QoQ Full-year Difference YoY (B yen) from original forecasts Net Sales 275.3 +0.1 1,137.
Slide 6: FY11/3 Quarterly Financial Results
FY11/3 Quarterly Financial Results Operating income improved on a quarter-by-quarter basis FY11/3 Q1 Q2 Q3 Q4 2,954 (B yen) 292.0 2,920 295.4 Net Sales 275.2 2,752 275.3 2,753 Semi. Sales 261.5 2,615 263.5 2,635 249.5 244.4 2,444 2,495 10.4 104 3.4 34 1.1 11 Operating Income (Loss) △ 3 -0.3 6 © 2011
Slide 7: FY11/3 Semiconductor Sales
FY11/3 Semiconductor Sales Full-year sales of MCU and Analog & Power increased exceeding sales growth of that of total semiconductor FY11/3 (B yen) Q4 QoQ (%) Full-year Total Semiconductor 249.5 +2% 1,018.9 Sales MCU 95.0 +1% 384.1 Analog & Power 77.0 +6% 316.2 SoC 74.7 -2% 311.7 Other 2.7 6.9 Semic
Slide 8: FY11/3 Semiconductor Sales by Business
FY11/3 Semiconductor Sales by Business Overseas market: Steady demand for automotive applications, image processing SoC and display drivers for smartphones in emerging countries including China Japanese market: Weak demand for automotive and consumer applications from the end of the first half as we
Slide 9: FY11/3 Semiconductor Sales Breakdown by Business
FY11/3 Semiconductor Sales Breakdown by Business Automotive YoY Major Factors approx. 45% Continuously secured the leading MCU Automotive market share for automotive MCU FY11/3 worldwide after the merger Sales General- General- purpose General Increased sales largely from strong approx. 55% -purpo
Slide 10: Factors Affecting FY11/3 Operating Income (Loss) YoY
Factors Affecting FY11/3 Operating Income (Loss) YoY Achieved full-year operating profit from: Increased sales, improved cost of sales ratio due to enhanced productivity, decreased depreciation cost through reduced capital investments, decreased R&D cost through streamlining the product portfolio -5
Slide 11: Factors Affecting FY11/3 Net Income (Loss)
Factors Affecting FY11/3 Net Income (Loss) Recorded a special loss of approx. 67 B yen due to implementing structural FY11/3 Full-year reforms (B yen) Recorded a special loss of 49.5 B yen Net Income Op. Income (Loss) (Loss) from the earthquake Non-op. Income (Loss): -13.5 B yen 14.5 Special Income
Slide 12: Progress on the 100-Day Project (1)
Progress on the 100-Day Project (1) -Growth Strategy: Optimize Business Portfolio- Measures ・Consolidate and/or select process technology, CPU cores and peripheral IPs ・Newly established a business organization led by a local representative MCU from the subsidiary in China to capture market opportun
Slide 13: Progress on the 100-Day Project (2)
Progress on the 100-Day Project (2) -Realization of merger synergies- Measures ・Strengthened sales channels by concentrating competitive distributors [30=>16 companies, Completed in FY11/3 Q3] Sales ・Integrated Renesas sales sites in Japan and other countries [38=>16 sites, Completed in FY11/3 Q3] ・
Slide 14: Progress on the 100-Day Project (3)
Progress on the 100-Day Project (3) -Implementation of Structural Reforms- Implemented structural reforms as planned despite a decrease in special loss by 10 billion yen from the previous forecast due to some measures with lower than estimated expenses and loss Measures Business and ・Recorded impair
Slide 15: FY11/3 Balance Sheet
FY11/3 Balance Sheet As of Apr. 1, 2010 As of Dec. 31, As of Mar. 31, (After the capital (B yen) 2010 2011 injection) Total Assets 1,215.4 1,151.3 1,145.0 Cash and Cash Equivalents 337.7 334.3 337.3 Inventories 126.6 144.0 123.4 Liabilities 801.7 808.4 854.0 Interest-Bearing Debt 372.0 366.7 378.2 S
Slide 16: FY11/3 Cash Flows
FY11/3 Cash Flows Achieved positive free cash flows for the full-year by reducing capital investments FY11/3 (B yen) Q1 Q2 Q3 Q4 Full-year Cash Flows from Operating -2.0 35.0 53.9 15.6 102.5 Activities Cash Flows from Investing -14.4 -18.4 -39.0 -24.0 -95.8 Activities Free Cash Flows -16.4 16.6 15.0
Slide 17: II. Impact of the Great East Japan Earthquake and Efforts toward Recovery
II. Impact of the Great East Japan Earthquake and Efforts toward Recovery 17 © 2011 Renesas Electronics Corporation. All rights reserved.
Slide 18: Recovery Status of the Factories Affected by the Earthquake
Recovery Status of the Factories Affected by the Earthquake Resumed production at all manufacturing sites except the Naka factory Plan to restart production (wafer input) at the Naka factory with limited production capacity from June [Recovery status of the factories that shutdown production] _ indi
Slide 19: Schedule of Naka Factory Recovery and Alternate Productions
Schedule of Naka Factory Recovery and Alternate Productions Restore the Naka Factory, giving top priority to meet supply (to attain 100% supply capability) of products originally manufactured at the factory before the earthquake Plan to restore supply capacity of the Naka Factory to that of pre- ear
Slide 20: Acceleration of the "Fab-Network"
Acceleration of the “Fab-Network” Further accelerate “fab-network” based on the experience through the earthquake to be resistant to demand fluctuations and accidents Enhance “fab-network” by promoting product development on the premise that “fab-network” would be applied < Examples of “fab-network”
Slide 21: Financial Impact from the Great East Japan Earthquake
Financial Impact from the Great East Japan Earthquake Estimate a loss from earthquake to total 65.5 B yen Recorded special loss on disaster of 49.5 B yen for the year ended March 31, 2011, with 16 B yen compensated by insurance income receivable Breakdown Amount Repair cost of fixed assets 43.1 B ye
Slide 22: Recovery Plans Against the Impact of the Earthquake
Recovery Plans Against the Impact of the Earthquake Focus every possible efforts on recovery work to minimize negative impacts on the business results Impact on the business results Measures [Short-term measures] Sales (production) - Minimize negative impacts on Impacts caused by production the sa
Slide 23: FY12/3 Forecasts
FY12/3 Forecasts 23 © 2011 Renesas Electronics Corporation. All rights reserved.
Slide 24: FY12/3 Forecasts
FY12/3 Forecasts The Great East Japan Earthquake caused damages to Renesas Electronics Group’s multiple manufacturing sites and has brought uncertainty to market conditions surrounding Renesas Electronics Therefore, due to difficulty in specifying reasonable forecasts at this moment, Renesas Electro
Slide 25: Summary
Summary 25 © 2011 Renesas Electronics Corporation. All rights reserved.
Slide 26: Summary
Summary Achieved full-year operating profit in FY11/3 Promoted structural reform measures formulated through the 100-day project as scheduled Implement all possible measures to minimize financial impact from the Great East Japan Earthquake 26 © 2011 Renesas Electronics Corporation. All rights
Slide 27: Renesas Electronics Corporation
Renesas Electronics Corporation © 2011 Renesas Electronics Corporation. All rights reserved.