Slide 1: FY12/3 Financial Results
FY12/3 Financial Results Renesas Electronics Corporation May 9, 2012 Yasushi Akao, President © 2012 Renesas Electronics Corporation. All rights reserved.
Slide 2: Executive Summary
Executive Summary I. FY12/3 Financial Results Operating loss was larger than expected mainly due to the lower profit caused by production decrease, although FY12/3 Q4 sales were in line with our expectations FY12/3 full-year sales significantly decreased YoY mainly due to the impact of earthquak
Slide 3: I. FY12/3 Financial Results
I. FY12/3 Financial Results 3 © 2012 Renesas Electronics Corporation. All rights reserved.
Slide 4: FY12/3 Financial Snapshot
FY12/3 Financial Snapshot Semiconductor sales decreased by 232.9 B yen YoY due to the impact of earthquake, Thailand flood, and demand decrease from worsened market conditions mainly in Europe and China Posted operating loss due to lower profit margin caused by sales decline despite implementati
Slide 5: FY12/3 Quarterly Financial Results
FY12/3 Quarterly Financial Results Although operating income (loss) improved quarterly from Q1 to Q3, it worsened in Q4 mainly due to production decrease FY12/3 Q1 Q2 Q3 Q4 (B yen) Net Sales 243.3 2,433 222.9 2,229 209.7 2,097 207.2 2,072 Semi. Sales 2,182 218.2 198.0 184.0 1,840 1,980 185.8 1,858
Slide 6: Semiconductor Sales by Business (1)
FY12/3 Semiconductor Sales by Business (1) Q4 Analog & Power sales recovered by 8.6% from the previous quarter when they dropped significantly. Q4 MCU maintained steady sales for automotive; however, SoC sales did not bottom out yet. This resulted in a decrease by 6.1% QoQ in Q4 semiconductor sale
Slide 7: Q4 Operating Income (Loss) QoQ
FY12/3 Q4 Operating Income (Loss) QoQ Operating income (loss) worsened by 19.6 B yen due to lower profit from sales and production decrease FY12/3 FY12/3 Q3 Q4 (B yen) -4.0 Lower profit from sales decrease (including currency impact) -4.3 Lower profit from production decrease -18.8 +3.5 -23.6 Decr
Slide 8: Semiconductor Sales by Business (2)
FY12/3 Semiconductor Sales by Business (2) Automotive General- General-purpose MCUs decreased by approx. 20% YoY due to a sharp decline approx. purpose from earthquake impact followed by Thailand flood and stagnant global 50% approx. economy. More specifically, all applications including industrial
Slide 9: Operating Income (Loss) YoY
FY12/3 Operating Income (Loss) YoY Posted operating loss due to lower profit margin caused by sales and production decrease despite decreased SG&A including streamlining R&D expenses FY11/3 FY12/3 14.5 -5.9 Fixed costs during the temporary shutdown period of operations (Recorded as a special loss
Slide 10: Factors Affecting FY12/3 Net Income (Loss)
Factors Affecting FY12/3 Net Income (Loss) Recorded special income of 21.3 B yen including a reversal of provision for loss FY12/3 on disaster and the transfer of power (B yen) amplifier business Operating Net Income Recorded special loss of 19.7 B yen Income (Loss) (Loss) including fixed costs
Slide 11: Balance Sheets
FY12/3 Balance Sheets As of Apr. 1, As of Dec. 31, As of Mar. 31, (B yen) 2011 2011 2012 Total Assets 1,145.0 901.7 858.2 Cash and Cash Equivalents 337.3 157.8 131.9 Inventories 123.4 157.7 151.8 Liabilities 854.0 665.4 631.7 Interest-Bearing Debt 378.2 263.3 258.3 Shareholders’ Equity 306.0 261.6 2
Slide 12: Cash Flows
FY12/3 Cash Flows Posted negative free cash flows of 64.8 B yen in FY12/3 full-year due to a record of net loss before income taxes and the purchase of property, plant and equipment, etc FY12/3 (B yen) Q1 Q2 Q3 Q4 Full-year Cash Flows from Operating -29.2 8.0 18.0 -6.6 -9.7 Activities Cash Flows f
Slide 13: II. Implementation of Business/Production Structural Measures and Enhancement of Core Competence
II. Implementation of Business/Production Structural Measures and Enhancement of Core Competence 13 © 2012 Renesas Electronics Corporation. All rights reserved.
Slide 14: Third Year Since the Merger - Start of Newly Integrated IT System
Third Year Since the Merger -Start of Newly Integrated IT System Completed integration of corporate-wide systems including sales, manufacturing, accounting, and personnel as the final phase of business integration Started new IT system from April, integrating existing IT systems Enabled cost-e
Slide 15: Implementation of Business/Production Structural Measures
Implementation of Business/Production Structural Measures Promoting selection and focus of businesses as well as optimizing production structure Business/Production Structural Measures Announced or Conducted during FY12/3 ・Transferred power amplifier business to Murata Manufacturing (Completed in
Slide 16: MCU: Firmly Maintain the World's No.1
Enhancement of Core Competence -MCU: Firmly Maintain the World’s No.1 Firmly maintained the world’s No.1 MCU market share of 27% in CY2011 Dominant position in automotive MCU unchanged, maintaining the world’s No.1 share as well as strengthening relationships with automakers through restoration
Slide 17: Sources of Competitiveness for No.1 MCU: 3 Cores
Enhancement of Core Competence -Sources of Competitiveness for No.1 MCU: 3 Cores Best Suited for Growing Markets Consolidated MCU cores to 3 and focused resources on them Covered wide range of applications for growing markets and leveraged 3 core’s strength best suited for each application Low-e
Slide 18: RH850: World's First 40nm MCU Unrivaled in Automotive
Enhancement of Core Competence –RH850: World’s First 40nm MCU Unrivaled in Automotive Lead the world by developing flash MCU with cutting-edge 40nm process Embed flash memory using originally developed “MONOS*”- type memory cell to realize high reliability, high speed, low power consumption, in
Slide 19: Analog & Power: Focus on Growing Markets including Automotive
Enhancement of Core Competence -Analog & Power: Focus on Growing Markets including Automotive Maximize Analog & Power sales by combining with the world’s No.1 MCUs and leveraging expanded business opportunities in automotive Focus development resources on increasing power device lineups, targeti
Slide 20: Smart Analog: Combination of MCU and Analog
Enhancement of Core Competence -Smart Analog： Combination of MCU and Analog Developed “Smart Analog”, combining MCU and reconfigurable analog circuits Enabled to support multi-sensors equipped with various devices realizing Smart Society by a single chip, and contribute to customers by shortenin
Slide 21: LTE Modem: Challenges toward Further Growth
LTE Modem: Challenges toward Further Growth Capture smartphone market with a chipset combining the world’s smallest/fastest LTE modem and most suitable application processors, or with a single SoC integrating those chips Modem Platform Mobile Platform Realized LTE modem (DBB) of the world’s Inte
Slide 22: FY13/3 Forecasts
FY13/3 Forecasts We posted 62.6 billion yen net loss as consolidated net sales dropped significantly by approximately 22% YoY for FY12/3, mainly owing to the impact of earthquake and Thailand flood as well as worsened economic conditions mainly in Europe and China, and continuous trend of strong y
Slide 23: 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