Slide 1: FY14/3 Financial Results
FY14/3 Financial Results Renesas Electronics Corporation May 9, 2014 © 2014 Renesas Electronics Corporation. All rights reserved.
Slide 2: Agenda
Agenda I. FY14/3 Financial Results II. FY15/3 Q1 Financial Forecasts III. Fundamental Reforms towards profitable Growth © 2014 Renesas Electronics Corporation. All rights reserved. 2
Slide 3: Executive Summary
Executive Summary I . FY14/3 Financial Results Semiconductor sales were 796.8 billion yen, a 10% increase YoY, mainly due to the solid growth of automotive and industrial sales and the effects of the yen appreciation correction Operating income was 67.6 billion yen, largely impacted by cost-redu
Slide 4: I. FY14/3 Financial Results
I. FY14/3 Financial Results © 2014 Renesas Electronics Corporation. All rights reserved. 4
Slide 5: FY14/3 Financial Results
FY14/3 Financial Results Semiconductor sales for full-year were 796.8 billion yen, a 10% increase YoY due to solid growth of automotive and industrial sales throughout the year and influence of the yen appreciation correction Operating income for full-year was 67.6 billion yen largely impacted b
Slide 6: Quarterly Financial Results
Quarterly Financial Results While the semiconductor sales declined QoQ due to seasonal factors, it still increased by 10% YoY Secured operating profit for five fiscal quarters in a row supported by fixed- cost reductions from structural reforms FY13/3 FY14/3 (B yen) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Net S
Slide 7: Semiconductor Sales by Product Categories (1)
FY14/3 Semiconductor Sales by Product Categories (1) MCU sales in Q4 remained flat from the previous quarter due to solid growth of automotive and industrial sales covering the seasonal factors Full-year sales of MCU and Analog & Power devices showed mid-teen percentage growth thanks to the stro
Slide 8: Semiconductor Sales by Product Categories (2)
FY14/3 Semiconductor Sales by Product Categories (2) Although the sales of automotive MCUs in the previous year were impacted by Automotive end of eco-car subsidy in Japan and the slowdown of automotive production General- Approx. by Japanese car makers shipped to China, they remained solid throug
Slide 9: Q4 Operating Income (Loss) in QoQ Comparison
FY14/3 Q4 Operating Income (Loss) in QoQ Comparison Secured operating profits despite a decline in profits from decreased sales and production, as well as an increase in costs at the end of the fiscal year (B Yen) Decline in profit +30.0 from decreased production -4.5 Increase in -4.3 R&D and SG&A
Slide 10: Q4 Operating Income in Comparison with Previous Forecasts
FY14/3 Q4 Operating Income (Loss) in Comparison with Previous Forecasts (As of February 6, 2014) Operating income for Q4 was 13.0 billion yen higher than the previous forecast, mainly due to cost containment effects by pursuing profit improvement, in addition to profit growth from increased sales
Slide 11: Q4 Net Income (Loss)
FY14/3 Q4 Net Income (Loss) Though operating profit was secured, net income (loss) was negative 15.5 billion yen mainly owing to recording business structure improvement expenses and loss from termination of retirement benefit system in the amount of 27.5 billion yen as a special loss Special inco
Slide 12: Full-year Operating Income (Loss) in YoY Comparison
FY14/3 Full-year Operating Income (Loss) in YoY Comparison Operating income improved by 90.9 billion yen mainly due to improved profit structure from implementing structural reforms in addition to increase in sales resulting from correction of the yen appreciation +67.6 +24.0 （B yen） Improved prof
Slide 13: Full-year Net Income (Loss)
FY14/3 Full-year Net Income (Loss) Net loss for full year was 5.3 billion yen, mainly due to recording business structure improvement expense and others of 72.0 billion yen as special loss, despite the recording of gain on transfer of business and debt waiver of 23.8 billion yen as special income
Slide 14: Balance Sheets
FY14/3 Balance Sheets Equity ratio rose to around 30% and the Group’s financial base showed significant improvement (B Yen) As of Mar. 31, 2013 As of Dec. 31, 2013 As of Mar. 31, 2014 Total Assets 669.1 795.8 786.0 Cash and Cash Equivalents 77.7 266.0 265.9 Inventories 151.3 128.5 126.1 Liabilitie
Slide 15: Cash Flows
FY14/3 Cash Flows Achieved positive free cash flows in all four quarters in FY14/3 and showed significant increase in free cash flows for full-year from the previous year by securing operating profits through promotion of structural reforms FY13/3 FY14/3 (B Yen) Full-year Q1 Q2 Q3 Q4 Full-year Cas
Slide 16: II. FY15/3 Q1 Financial Forecasts
II. FY15/3 Q1 Financial Forecasts © 2014 Renesas Electronics Corporation. All rights reserved. 16
Slide 17: FY15/3 Q1 Consolidated Financial Forecasts
FY15/3 Q1 Consolidated Financial Forecasts Semiconductor sales are expected to increase by 3.4% YoY to 196.0 billion yen Operating income is expected to be 20.0 billion yen from implementing business- and manufacturing-related structural reform measures Quarterly net income is expected to impr
Slide 18: Quarterly Financial Results and Forecasts
Quarterly Financial Results and Forecasts FY15/3 Q1 semiconductor sales are expected to increase slightly both QoQ and YoY Operating profits are expected to double YoY from effects of implementing business- and manufacturing-related structural reform measures FY13/3 FY14/3 FY15/3 (B yen) Q2 Q3 Q
Slide 19: Change in Sales Information from Change in Business Domains
Change in Sales Information from Change in Business Domains Changed the conventional sales information in accordance with the renewed business domains which were shifted from product-orientation to application-orientation structure Sales information Sales information until FY2013 after FY2014 MCU
Slide 20: Forecast for FY15/3 Q1 Semiconductor Sales (QoQ Comparison)
Forecast for FY15/3 Q1 Semiconductor Sales (QoQ Comparison) Semiconductor sales in Q1 are expected to increase by 2.2% QoQ with solid demand for automotive devices and display driver ICs (B Yen) Growth rate [Major factors affecting [Semiconductor sales] Q1 semiconductor sales] +2.2％ [196.0] [191.8
Slide 21: FY15/3 Q1 Operating Income (Loss) Forecasts in QoQ Comparison
FY15/3 Q1 Operating Income (Loss) Forecasts in QoQ Comparison Expect operating income to increase QoQ, rebounding from concentrated expenses in the year-end as well as improving profits from an increase in sales (B Yen) Decrease in Improved profit R&D, SG&A from increase in +20.0 sales (including
Slide 22: FY15/3 Q1 Net Income (Loss) Forecasts
FY15/3 Q1 Net Income (Loss) Forecasts With no major special loss from business structure improvement expenses or others planned in Q1, expect to achieve net income of 14.0 billion yen FY15/3 Q1 (B Yen) Non- operating Operating Net income Special Income (Loss) Income (Loss) (loss) income Income tax
Slide 23: III. Fundamental Reforms towards Profitable Growth
III. Fundamental Reforms towards Profitable Growth © 2014 Renesas Electronics Corporation. All rights reserved. 23
Slide 24: Direction of Renesas Group
Direction of Renesas Group (Announced on August 2, 2013 after the inception of the new management structure) Renesas’ mission – to develop society and industry To realize the above Selection and Concentration Structural Reforms Focus on advantageous businesses Build absolutely profitable structure O
Slide 25: Reform Plan to Achieve the Future Renesas
Reform Plan to Achieve the Future Renesas (Announced on October 30, 2013 after the inception of the new management structure) Achieve double-digit operating profit ratio in FY17/3 Growth strategy Execution phase Structural reform 30 months October 31, 2013 Development Framework of Reform plan of fra
Slide 26: Efforts toward the Future Renesas
Efforts toward the Future Renesas Steadily implementing the Structural Reforms FY2013 FY2014 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Business Direction “Direction of Renesas Group“ Business policies Reform plan and index “Reforming Renesas“ Launch of the new Financing of 150 billion yen (Third-Party Allotment) mana
Slide 27: Issues to Address for Profitable Growth
Issues to Address for Profitable Growth Ensure the Implementation of the Reform Plan 1. Improve profit ratio through structural reforms 2. Achieve further growth in profits through selection and concentration of businesses Secure promotion of the manufacturing structural reforms Relocate design
Slide 28: Realize Business Structure with Stable Profit
Realize Business Structure with Stable Profit Accomplish structural reform measures to realize a company that excels in the global arena FY2013 FY2014 FY2015 FY2016 FY2017 July October Improve profit ratio through structural reforms Further growth in profits through selection and STEP 1 concentrat
Slide 29: 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