Slide 1: FY16/3 Q1 Financial Results
FY16/3 Q1 Financial Results Renesas Electronics Corporation July 31, 2015 © 2015 Renesas Electronics Corporation. All rights reserved. Page 1
Slide 2: Non-GAAP financial measures notice
FY16/3 Q1 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 fi
Slide 3: FY16/3 Q1 Financial Snapshot
FY16/3 Q1 Financial Snapshot Net sales were in line with the Group’s expectation and profitability increased both YoY, QoQ and also from the previous forecasts YoY and QoQ results as well as the Difference from previous forecasts of the Net Sales and Semiconductor Sales are rounded off to one decima
Slide 4: Quarterly Financial Results (Non-GAAP Basis)
Non-GAAP Quarterly Financial Results (Non-GAAP Basis*1) Profitability increased with reduced fixed-cost and improved product mix Semiconductor Sales (B Yen) Operating Margin (%) FY17/3 target 2,000 200.0 189.4 188.7 177.7 183.6 178.6 177.4 175.3 175.1 174.5 20.0 17.8 15.0 150.0 1,500 15.0 12.6 10.9
Slide 5: 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) The improved Q1 gross margin (YoY +6.8pts.) is thanks largely to General-Purpose business 120% Core business Non-core business (Excl. Renesas SP Drivers) Non-core business (Ref: Renesas SP Drivers) Gross Marg
Slide 6: Semiconductor Sales by Business
Non-GAAP Semiconductor Sales by Business (Non-GAAP Basis) Ratio of core business grew steadily as a result of withdrawal from non-core businesses Automotive Business General-Purpose Business Sales (B Yen) Sales (B Yen) Renesas SP Drivers Other General Purpose (Excl. Renesas SP Drivers) OA/ICT Indust
Slide 7: Trends in R&D and SG&A Results
Non-GAAP Trends in R&D and SG&A Results (Non-GAAP Basis) The R&D *1 gear will be shifted to expand investments on focus domains and SG&A *2 has been in line with the target R&D (B Yen) SG&A (B Yen) 30.0 300 27.1 26.5 40.0 400 33.9 24.3 24.4 31.7 31.3 32.7 25.0 23.2 22.1 29.2 28.9 29.2 29.2 250 19.9
Slide 8: FY16/3 Q1 Summary of Financial Results
FY16/3 Q1 Summary of Financial Results Major factors affecting increase or decrease in Q1 semiconductor sales Automotive Business Automotive sales decreased both YoY and QoQ, negatively impacted by Japanese car manufacturers’ sluggish sales in Japan and ASEAN regions General-Purpose Business Dec
Slide 9: Q2 Consolidated Forecasts
FY16/3 Q2 Consolidated Forecasts © 2015 Renesas Electronics Corporation. All rights reserved. Page 9 9
Slide 10: Semiconductor Market Trends
Semiconductor Market Trends (Sales in Value Terms) Renesas’ core semiconductor market is forecast to grow at a CAGR (Compound Annual Growth Rate) of 6-7% Automotive General-Purpose*1 HEV/EV Industrial (T Yen) Powertrain ADAS V2X (T Yen) Network Healthcare 5 5 4 Body Chassis/EPS CIS 4 Network Camera
Slide 11: FY16/3 Q2 Forecast Highlights
FY16/3 Q2 Forecast Highlights Major factors affecting increase or decrease in Q2 semiconductor sales Automotive Business Expected to increase by low single-digit percent both YoY and QoQ mainly due to seasonal factors General-Purpose Business Expected to decrease YoY but to increase QoQ , due pa
Slide 12: FY16/3 Q2 Financial Forecasts
FY16/3 Q2 Financial Forecasts FY15/3 FY16/3 (B Yen) Q2 Q1 Q2 YoY QoQ First Half of the Year Net Sales 207.7 179.3 184.7 -11% +3% 364.0 Semiconductor Sales 199.6 174.5 179.5 -10% +3% 354.0 Gross Margin 39.3% 44.5% 43.1% +3.8pts. -1.4pts. 43.8% Operating Income 23.5 32.4 26.6 +3.1 -5.7 59.0 (Margin) (
Slide 13: Business Highlights
Business Highlights Established post of Chief Technology Officer (CTO) to facilitate strengthening of core technology and to change gears for future growth Adopted by 200 companies Aim to expand the Consortium members to 100 companies Scalable lineup from high-end to low-end New optimized so
Slide 14: Appendix
Appendix © 2015 Renesas Electronics Corporation. All rights reserved. Page 14
Slide 15: GAAP/Non-GAAP Reconciliation
GAAP/Non-GAAP Reconciliation FY14/03 FY15/03 FY16/03 (億円) Q1 Q2 *The same reconciliation Q3 Q4 hasQ1been applied Q2 to the Gross Profit Q3 as per Operating Q4 Income. Q1 Semiconductor Sales (GAAP) ① 189.6 207.7 207.6 191.8 201.2 199.6 177.4 175.1 174.5 Renesas SP Drivers*1 ② -14.3 -18.3 -19.0 -14.1
Slide 16: FY16/3 Q1 Operating Income
FY16/3 Q1 Operating Income QoQ (B Yen) Q1 operating profit increased by 8.0 B yen QoQ, thanks to rebound of the seasonal cost increase at the year end, despite the negative currency impact and profit decline from decreased sales Decreased R&D, SG&A Decreased profit Currency from sales decline impa
Slide 17: FY16/3 Q1 Net Income Attributable to Shareholders of Parent Company
FY16/3 Q1 Net Income Attributable to Shareholders of Parent Company (B Yen) Recorded net income attributable to shareholders of parent company of 29.9 B yen without the exchange gains and major special loss in Q1 Non-operating income (loss) ＋1.0 -1.1 Special income (loss) -2.4 Income taxes, non-co
Slide 18: FY16/3 Q2 Operating Income Forecast
FY16/3 Q2 Operating Income Forecast QoQ (B Yen) Despite positive currency impact; an increase in profit from sales increase; and an increase in profit from inventory variations; operating income is expected to decrease by 5.7 B yen QoQ, due to seasonal cost increase at the end of the first half Cu
Slide 19: FY16/3 Q2 Net Income Attributable to Shareholders of Parent Company Forecast
FY16/3 Q2 Net Income Attributable to Shareholders of Parent Company Forecast (B Yen) Expect to achieve net income attributable to shareholders of parent company of 14.1 B yen in Q2, mainly due to special loss from structural reforms concerning realignment of manufacturing and design and developmen
Slide 20: Balance Sheets
Balance Sheets Equity ratio improved up to the 40% range (B Yen) As of Mar. 31, 2015 As of Jun 30, 2015 Total Assets 840.1 851.8 Cash and Cash Equivalents 343.7 368.7 Inventories 111.4 113.1 Liabilities 528.2 507.0 Interest-Bearing Debt 259.7 259.4 Shareholders’ Equity 277.8 307.7 Net Assets 311.9 3
Slide 21: Cash Flows
Cash Flows FY15/3 FY16/3 (B Yen) Q1 Q2 Q3 Q4 Q1 Cash Flows from Operating 2.0 49.5 41.0 24.2 31.5 Activities Cash Flows from Investing -10.9 -14.9 7.2 -8.0 -5.4 Activities Free Cash Flows -8.9 34.7 48.2 16.2 26.2 © 2015 Renesas Electronics Corporation. All rights reserved. Page 21
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