Renesas Electronics Corporation · TSE:6723

Renesas Electronics — Q2 FY2015/3 Earnings Presentation

22 slides from Renesas Electronics's earnings presentation, Oct 29, 2014

  1. Slide 1: FY15/3 Q2 Financial Results

    FY15/3 Q2 Financial Results Renesas Electronics Corporation October 29, 2014

  2. Slide 2: Agenda

    Agenda I. FY15/3 Q2 Financial Results II. FY15/3 Q3 Consolidated Forecasts © 2014 Renesas Electronics Corporation. All rights reserved. 2

  3. Slide 3: Executive Summary

    Executive Summary I. FY15/3 Q2 Financial Results  Despite an impact from business withdrawal, semiconductor sales were 199.6 B yen, almost flat with the previous quarter, mainly due to the solid sales of automotive and general-purpose products  Operating income was 23.5 B yen, a 3.4 B yen decrease

  4. Slide 4: I. FY15/3 Q2 Financial Results

    I. FY15/3 Q2 Financial Results © 2014 Renesas Electronics Corporation. All rights reserved. 4

  5. Slide 5: FY15/3 Q2 Financial Snapshot

    FY15/3 Q2 Financial Snapshot  Despite an impact from business withdrawal, semiconductor sales were 199.6 B yen, almost flat (0.8% decrease) with the previous quarter, mainly due to solid sales of automotive and general-purpose products  Operating income was 23.5 B yen, a 3.4 B yen decrease QoQ, ma

  6. Slide 6: Quarterly Financial Results

    Quarterly Financial Results (B Yen)  Semiconductor sales were almost flat with the previous quarter, but it decreased by 3.9% YoY  Though gross profit ratio continued to show a trend toward improvement, Q2 operating profit ratio was 11% due to seasonal cost increases at the end of the first half 2

  7. Slide 7: Semiconductor Sales by Application Categories (I)

    FY15/3 Q2 Semiconductor Sales by Application Categories (I)  While Automotive sales increased YoY, General-Purpose sales decreased impacted by the business withdrawal FY14/3 FY15/3 (B yen) Q2 Q1 Q2 YoY QoQ Semiconductor Sales -8.1 -1.6 207.7 201.2 199.6 (Total) (-3.9%) (-0.8%) +5.9 -1.0 Automotive

  8. Slide 8: Semiconductor Sales by Application Categories (II)

    FY15/3 Q2 Semiconductor Sales by Application Categories (II) Automotive General-Purpose Other General- Purpose Industrial/HE Automotive Information approx. 55％ Approx. 20% approx. 30% Automotive Including small- to medium-sized OA/ICT Control display driver IC Approx. 25% approx. of approx. 15% 70%

  9. Slide 9: Trends in Semi-Annual Net Sales and GP Ratio

    Trends in Semi-Annual Net Sales and GP Ratio (B Yen)  Though net sales from FY13/3 1H to FY15/3 1H remained flat, gross profit ratio has shown signs of improvement mainly due to fixed-cost reduction measures, etc. 409.4 416.9 416.1 416.9 Net Sales 376.4 38.3% 38.9% Gross Profit Ratio 36.1% 32.6% 29

  10. Slide 10: Operating Income (Loss) QoQ

    FY15/3 Q2 Operating Income (Loss) QoQ (B yen)  Although the fixed-cost recovery increased from Q1 due to the great impact of the changes in inventories, operating profit decreased by 3.4 B yen QoQ, due to decreased profit from increased manufacturing fixed costs, the impact of product mix variation

  11. Slide 11: Operating Income in Comparison with Forecasts

    FY15/3 Q2 Operating Income (Loss) in Comparison with Forecasts (Aug 6, 2014) (B yen)  Operating income increased by 4.5 B yen from the previous forecast, mainly due to lower-than-expected R&D and SG&A costs in addition to increased profit from increased sales and inventories Increased fixed-cost De

  12. Slide 12: Operating Income (Loss) YoY

    FY15/3 1H Operating Income (Loss) YoY (B yen)12  Operating profit improved significantly YoY supported by fixed-cost reductions from structural reform measures and inventories that boosted the profits Decreased Improved cost R&D, SG&A* Increased from fixed-cost streamlining recovery human +18.2 fro

  13. Slide 13: Net Income (Loss)

    FY15/3 Q2 Net Income (Loss) (B yen)  Although Q2 special loss decreased by 1.6 B yen from the original forecast, quarterly net income was 7.1 B yen higher than expected, mainly due to increased operating profit by 4.5 B yen from the forecast and exchange income +0.2 Non-operating income (loss) -5.6

  14. Slide 14: Balance Sheets

    FY15/3 Q2 Balance Sheets  Aim to recover the equity ratio to the 30% range by increasing profits As of As of As of (B yen) Mar. 31, 2014 Jun. 30, 2014 Sep. 30, 2014 Total Assets 786.0 796.9 836.8 Cash and Cash Equivalents 265.9 251.8 288.2 Inventories 126.1 118.1 119.6 Liabilities 558.7 573.4 588.2

  15. Slide 15: Cash Flows

    FY15/3 Q2 Cash Flows  Although Q1 free cash flows turned negative temporarily due to payments for extra retirement benefits in accordance with the implementation of early retirement program, positive free cash flows were secured in Q2 with no additional cash outgo from structural reform measures FY

  16. Slide 16: II. FY15/3 Q3 Consolidated Forecasts

    II. FY15/3 Q3 Consolidated Forecasts © 2014 Renesas Electronics Corporation. All rights reserved. 16

  17. Slide 17: Q3 Consolidated Financial Forecasts

    FY15/3 Q3 Consolidated Financial Forecasts  Semiconductor sales are expected to be 168.0 B yen, a decrease by 15.8% QoQ and operating income is expected to be 13.0 B yen, a 10.5 B yen decrease QoQ  Excluding sales and operating profit from Renesas SP Drivers*1, semiconductor sales are expected to

  18. Slide 18: Quarterly Financial Results

    Quarterly Financial Results (B Yen)  Though Q3 sales and profit decreased QoQ, gross profit ratio continued to be flat 217.8 215.6 [Excl. 209.3 207.7 Net Sales Renesas SP Drivers‘ 199.1 200.5 resale] 179.0 39.9% GP 39.0% 37.5% 38.5% 39.3% 38.5% Ratio 36.5% 35.7% 189.6 207.7 207.6 191.8 201.2 199.6

  19. Slide 19: Semiconductor Sales Forecast (QoQ)

    FY15/3 Q3 Semiconductor Sales Forecast (QoQ / B yen)  Excluding sales from Renesas SP Drivers, sales of Automotive are expected to increase by low single-digit percent QoQ supported by steady market demands, while sales of General- Purpose are expected to decrease by low 10% QoQ Growth rate 199.6 M

  20. Slide 20: Operating Income (Loss) Forecast (QoQ)

    FY15/3 Q3 Operating Income (Loss) Forecast (QoQ / B yen)  Despite a positive impact from fixed-cost reduction measure, operating income is expected to decrease by 10.5 B yen QoQ, mainly due to decreased profit from decrease in sales (sales of Renesas SP Drivers, etc.) and inventories Decrease in gr

  21. Slide 21: Net Income (Loss) Forecast

    FY15/3 Q3 Net Income (Loss) Forecast (B yen)  Expect to achieve net income of 11.0 B yen in Q3, mainly due to special income from sale of Renesas SP Drivers shares, in spite of recording special loss from implementation of early retirement program Income taxes, +3.0 -3.0 minority interests -2.0 Spe

  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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