Renesas Electronics Corporation · TSE:6723
Renesas Electronics — Merger or Acquisition (September 2016)
17 slides from Renesas Electronics's merger presentation, Sep 13, 2016
Slide 1: Renesas Growth Strategy to Become #1 in Focused Industries
RENESAS GROWTH STRATEGY TO BECOME #1 IN FOCUSED INDUSTRIES September 13, 2016 © 2016 Renesas Electronics Corporation. All rights reserved.
Slide 2: Shift from Structural Reform to Growth Stage
SHIFT FROM STRUCTURAL REFORM TO GROWTH STAGE Drastic Structural Reframe Business Consistent Reform Strategic Shift Strategically Focused Investment Focused Investment Revenue from Organic Core Business 65% + 25 pts 91% Revenue from Auto + Industrial 55% + 15 pts 70% Operating Margin -3% + 18 p
Slide 3: Capital Allocation
Organic In-Organic CAPITAL ALLOCATION DISTINGUISHED STRATEGIC APPROACHES TO BECOME #1 IN FOCUSED INDUSTRIES Automotive Industrial Broad-based, etc. Organic + In-Organic Approaches Intensive R&D Spend to Stay MCUs Leveraging Renesas’ as an Industry Leader Market Recognition Strategic Partnerships and
Slide 4: Automotive
AUTOMOTIVE FOCUSED INVESTMENT IN “CORNER-STONE” (*1) TECHNOLOGIES FOR THE NEXT GENERATION VEHICLE, LEVERAGING RENESAS’ QUALITY – ROBUSTNESS AND HIGH-RELIABILITY Sensing and recognition technology Robust vehicle network technology Next generation gateway IP •Sensor AFE by cutting-edge BiCD technolo
Slide 5: Automotive Control System
AUTOMOTIVE CONTROL SYSTEM EXPANDING BUSINESS WORLDWIDE WITH MARKET SHARE #1 MCU FOR AUTOMOTIVE CONTROL AND THE WORLD’S FIRST 90nm BiCD Market Trend and Key Requirements RMS >1.0x >1.5x • Strengthened environmental regulations and increasing demand 22.0 for xEV in EU, USA and especially in China 20.5
Slide 6: Automotive Information System
AUTOMOTIVE INFORMATION SYSTEM EXPANDING STRATEGIC ALLIANCE/PARTNERSHIP AS A TOP SEMICONDUCTOR VENDOR LEADING THE RAPIDLY GROWING MARKET Market Trend and Key Requirements RMS <1.5x >2.0x • New market participants from different spaces into high-end automotive information system • Growing concern on s
Slide 7: Solution for Next Generation Vehicle
SOLUTION FOR NEXT GENERATION VEHICLE COMBINATION WITH INTERSIL ENABLES A MORE COMPREHENSIVE SOLUTION PROPOSITION Head Up Display In-Vehicle Infotainment Display Network + LDD + VSP ADAS Camera Network Battery Management + AHL + BMIC ADAS: Advanced Driving Assistant System LDD: Laser Diode Driver © 2
Slide 8: Autonomous Driving
AUTONOMOUS DRIVING UNDERSTANDING THE WHOLE ARCHITECTURE OF A VEHICLE IS CRUCIAL FOR AUTONOMOUS DRIVING. RENESAS IS THE ONLY PROVIDER THAT CAN OFFER A COMPLETE SOLUTION Required Function & Process Flow SENSING COGNITIVE HUMAN INTERFACE CONTROL / DRIVING CAMERA GATEWAY EV MOTOR Collaborate with Tier-1
Slide 9: Industrial and Broad-Based
INDUSTRIAL AND BROAD-BASED MAINTAIN INDUSTRY LEADERSHIP BY INVESTING IN “CORNER-STONE” TECHNOLOGIES FOR SMART SOCIETY (RENESAS IS A MARKET LEADER IN INDUSTRIAL / HA / PRINTER / SMART METER TODAY) Embedded artificial intelligence Coverage of multiple security levels High throughput TSIP and high
Slide 10: Smart Home
SMART HOME #1 IN INVERTER CONTROL TO SIGNIFICANTLY REDUCE POWER CONSUMPTION EXPECT MARKET EXPANSION MEETING ENERGY-SAVING REGULATIONS IN EMERGING COUNTRIES Market Trend and Key Requirements RMS >2.0x >2.5x • Integration of smart home appliances and healthcare applications • Energy-saving for HA and
Slide 11: Smart Factory
SMART FACTORY REALIZE INDUSTRY 4.0 BY OFFERING EDGE DEVICE WITH WORLD TOP MARKET SHARE “R-IN” PRODUCT AND EMBEDDED ARTIFICIAL INTELLIGENCE Market Trend and Key Requirements RMS >1.5x <2.0x • Rapid “industrial Ethernet” penetration for industry 4.0 (EtherCAT / Profinet / CC-Link protocol) 2.1 2.1 2.2
Slide 12: Smart Grid
SMART GRID #1 MARKET SHARE IN MCU FOR POWER METER IN INDIA FOR POWER THEFT PREVENTION BE THE FIRST ONE TO ENTER THE GROWING MARKET Market Trend and Key Requirements RMS >1.5x <2.0x • Global needs and rapid expansion of smart meters to level peak power consumption. • Demand expansion in China, India
Slide 13: Solution for Smart Society
SOLUTION FOR SMART SOCIETY COMBINATION WITH INTERSIL ENABLES A MORE COMPREHENSIVE SOLUTION PROPOSITION Network / Server Smart Home Smart Factory NW Memory High speed Search Engine + PMIC LD/PD + PMIC + PMIC Smart Meter Machine Vision PLC CIS RF OIS + VSP PLC: Power Line Communication CIS: CMOS Image
Slide 14: Now Ready for Take-Off
NOW READY FOR TAKE-OFF SOLID D-IN TO SUPPORT ORGANIC GROWTH ADDING STRATEGIC IN-ORGANIC APPROACH TO BECOME #1 IN FOCUSED AREAS Organic In-Organic Significant number of designed-in projects in the pipeline Intersil’s broader analog portfolio and expertise to enable ready to launch in focused area in
Slide 15: Financial Target to Be Updated, But for Now...
FINANCIAL TARGET TO BE UPDATED, BUT FOR NOW… Revenue Focus domains to outperform their markets Gross Margin 45% R&D / Revenue 15% SG&A / Revenue 15% Operating Margin >10% (Figures on a non-GAAP basis) © 2016 Renesas Electronics Corporation. All rights reserved. Page 15
Slide 16: ... More to Come
... MORE TO COME Selective Investment to Enhance Competitiveness and Profitability © 2016 Renesas Electronics Corporation. All rights reserved. Page 16
Slide 17: Forward-Looking Statements
FORWARD-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 resu
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