Slide 1: FY09/3 Q1 Financial Results
FY09/3 Q1 Financial Results Hank Sato Senior Vice President and CFO July 30, 2008 NEC Electronics Corporation http://www.necel.com/ir/en/ 1
Slide 2: Agenda
Agenda I. FY09/3 Q1 Financial Results 9Sales and operating profit were in line with the company’s expectation II. FY09/3 Forecasts 9FY09/3 forecasts will remain unchanged; however, aim to attain operating profit of more than 3B yen for 1H 9Aim to attain net profit for full-year, although weak demand
Slide 3: I. FY09/3 Q1 Financial Results
I. FY09/3 Q1 Financial Results II. FY09/3 Forecasts III. Business Highlights 3
Slide 4: Financial Snapshot
Financial Snapshot FY08/3 FY09/3 （B Yen） Q1, 6/30 Q4, 3/31 Q1, 6/30 Actual Actual Actual YoY QoQ Net Sales 173.6 166.0 166.3 -7.3 +0.3 Semiconductor Sales 165.0 155.4 159.2 -5.8 +3.7 Operating Income (Loss) -2.2 0.2 1.7 +3.9 +1.5 Income (Loss) Before Income Taxes 0.4 -6.7 0.3 -0.2 +7.0 Net Income (L
Slide 5: Trends in Quarterly Results
Trends in Quarterly Results (B yen) 191.2 185.6 177.8 177.9 177.4 170.3 171.4 173.6 170.8 181.2 165.3 165.9 166.8 162.7 165.2 166.0 166.3 Net Sales 179.1 169.7 171.1 169.1 146.1 162.0 165.0 163.7 160.7 158.7 160.0 158.1 160.8 159.2 156.8 155.4 140.3 Semicon. Sales FY05/3 FY06/3 FY07/3 FY08/3 FY09/3
Slide 6: Q1 Semiconductor Sales by Platform
Q1 Semiconductor Sales by Platform (B yen) YoY -4% QoQ +2% Forex impact from Forex impact from strong yen strong yen 165.0 -Approx. 7.0B yen -Approx. 3.0B yen 159.2 159.2 155.4 SoC -1% SoC +7% +) LSIs for Blu-Ray 63.6 devices +) Camera LSIs for mobile handsets - ) Memory for mobile 63.3 59.1 +) LSIs
Slide 7: Factors in Operating Income (Loss)
Factors in Operating Income (Loss) (B yen) YoY QoQ Forex impact from stronger yen Forex impact from -Approx. 7.0B yen stronger yen -Approx. 3.0B yen 165.0 159.2 155.4 159.2 Semicon. Semicon. Sales Sales +) Increase in sales, incl. forex impact +) Higher mfg utilization rates from 86% to 89% +) Lower
Slide 8: Balance Sheet
Balance Sheet (B yen) 07/6 08/3 08/6 Cash and Cash Equivalents 177.3 165.5 159.0 Accounts Receivable 104.2 96.4 99.5 Inventories 79.9 75.8 79.5 PP&E 291.5 259.2 253.9 Other Assets 37.1 19.5 29.3 Total Assets 690.0 616.3 621.2 Accounts Payable 127.3 108.1 106.0 Debt Payable 133.7 116.6 117.3 Other Li
Slide 9: Cash Flows
Cash Flows FY08/3 FY09/3 (B yen) Q1 Q4 Full-Year Q1 Cash Flows from Operating Activities 1.5 0.5 43.3 4.2 Cash Flows from -7.3 -4.3 -37.8 -10.9 Investing Activities Free Cash Flows -5.9 -3.8 5.5 -6.7 9
Slide 10: II. FY09/3 Forecasts
I. FY09/3 Q1 Financial Results II. FY09/3 Forecasts III. Business Highlights 10
Slide 11: FY09/3 Financial Forecasts
FY09/3 Financial Forecasts The The full-year full-year forecasts forecasts remain remain unchanged. unchanged. Aim Aim to to attain attain net net profit profit for for FY09/3 FY09/3 FY08/3 FY09/3 1H 2H Full-Year 1H 2H Full-Year (B yen) Actual Actual Actual Forecast Forecast Forecast YoY Net Sales 3
Slide 12: Trends in Amount of Orders
Trends in Amount of Orders Amount of Orders (3-months moving average) Q1 Order Trends (QoQ) Steady growth in camera LSIs for mobile handsets and Blu-Ray related application QoQ + factors QoQ FY08/3 Average - factors Weak general- purpose products, such as discrete, and slowdown in growth for automot
Slide 13: FY09/3 Q2 Forecasts (QoQ)
FY09/3 Q2 Forecasts (QoQ) (B yen) Sales Semicon. Sales increase due Operating Income 1H Outlook: 320.0B yen to weaker 1H Outlook: 3.0B yen yen 160.8 159.2 SoC 63.3 Flat or increase by lower single digit % +) LSI for DVD drives - ) Inventory adjustments for some ASIC products Increase in operating in
Slide 14: III. Business Highlights
I. FY09/3 Q1 Financial Results II. FY09/3 Forecasts III. Business Highlights 14
Slide 15: Business Highlights
Business Highlights Establishment Establishment of of JV JV Company Company for for Display Display Driver Driver IC IC NEC Electronics and Elpida agreed to Customers establish a JV for Display Driver IC (Announced on June 20, 2008) Sale ¾Working to enter into a JV agreement by the end of A new JV (
Slide 16: Cautionary Statements
Cautionary Statements The statements in this presentation with respect to the plans, strategies and forecasts of NEC Electronics and its consolidated subsidiaries (collectively “we”) are forward-looking statements involving risks and uncertainties. We caution you in advance that actual results could
Slide 17: Appendix: Semiconductor Sales by Application
Appendix~ Semiconductor Sales by Application (B yen) 169.1 165.0 163.7 159.2 155.4 17.1 20.7 15.6 16.4 Communications 17.0 32.6 30.1 29.5 30.0 Computing & 27.1 Peripherals 34.5 35.3 33.0 31.7 32.1 Consumer Electronics 27.7 Auto & Industrial 27.4 29.0 29.2 29.8 22.6 24.9 21.9 20.3 21.0 Multi-market I