Renesas Electronics Corporation · TSE:6723
Renesas Electronics — Q2 2019 Earnings Presentation
23 slides from Renesas Electronics's earnings presentation, Aug 6, 2019
Slide 1: FY19/12 Q2 Presentation
FY19/12 Q2 PRESENTATION RENESAS ELECTRONICS CORPORATION AUGUST 6, 2019 © 2019 Renesas Electronics Corporation. All rights reserved.
Slide 2: Non-GAAP Basis Information
NON-GAAP BASIS INFORMATION In this section, Renesas Electronics Group (hereinafter “the Group”) applies 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 figures (he
Slide 3: Adoption of IFRS and Changes in Guidance
ADOPTION OF IFRS AND CHANGES IN GUIDANCE With the outlook that the Group will continue to expand globally and to provide financial figures that can be compared on a global scale, the Group discloses its consolidated financial statements in accordance with the International Financial Reporting Stan
Slide 4: FY19/12 Q2 Financial Snapshot
Non-GAAP FY19/12 Q2 FINANCIAL SNAPSHOT IFRS, NON-GAAP BASIS*1*2 YoY and QoQ results as well as the changes from FCTs of the Net Sales and Semi Sales are rounded off to one decimal place. FY18/12 FY19/12 (B yen) Q2 Q2 1H Q2 1H Q1 Change from Change from (Apr-Jun) (Apr-Jun) YoY QoQ May 14 FCT*3 (Jan-J
Slide 5: Quarterly Semiconductor Revenue Trends
Non-GAAP QUARTERLY SEMICONDUCTOR REVENUE TRENDS IFRS, NON-GAAP, PRO-FORMA BASIS*1*2*3 Revenue from Semiconductors Automotive Industrial Broad-based Other IDT YoY: -15.5% (B250 yen) QoQ: +8.8% 223.7 206.3 210.9 IDT 24.6 201.7 200 1.0 189.0 YoY: +1.8% 24.3 27.1 173.7 26.1 1.0 QoQ: -7.2% 0.6 40.8 25.1
Slide 6: FY19/12 Q2 Gross Margin
Non-GAAP FY19/12 Q2 GROSS MARGIN IFRS, NON-GAAP BASIS*1*2 YoY -0.1pt FY18/12 Q2 FY19/12 Q1 FY19/12 Q2 FY19/12 Q2 Actual Actual Forecast Actual Currency Impact (Apr-Jun 2018) (Jan-Mar 2019) (Apr-Jun 2019) (Apr-Jun 2019) Sales Decrease Fixed manufacturing costs and others IDT 44.9％ 39.3％ 43.5％ 44.8％ Q
Slide 7: Gross Margin, Operating Margin and Opex Trajectory
Non-GAAP GROSS MARGIN, OPERATING MARGIN AND OPEX TRAJECTORY IFRS, NON-GAAP BASIS*1*2 Gross Margin (%) R&D Ratio (%) YoY: +1.3pts YoY: -0.1pt QoQ: -2.1pts QoQ: +5.5pts 20 50 44.8 18 45 47.5 18.5 16 17.5 17.2 44.9 43.9 16.2 16.4 40 14 15.1 40.5 39.3 35 12 30 10 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 FY18
Slide 8: Inventory
INVENTORY MANAGERIAL ACCOUNTING BASIS, BILLON YEN Inventory Change Sales Channel Inventory*1 (by application) (Work 200 in Process + Finished Goods) 100 Automotive 50 150 Non-Automotive 0 IDT 17/3 17/6 17/9 17/12 18/3 18/6 18/9 18/12 19/3 19/6 100 Sales Channel Inventory (by product) In-house 100 50
Slide 9: Monthly Changes in Front-End Wafer Input Quantity and Purchase Volume from Foundries
MONTHLY CHANGES IN FRONT-END WAFER INPUT QUANTITY AND PURCHASE VOLUME FROM FOUNDRIES 8-INCH EQUIVALENT (1,000 wafers/month) 350 Purchase Volume from Foundries Front End Wafer Input Quantity 300 250 200 150 100 50 0 *1 17/Q1 17/Q2 17/Q3 17/Q4 18/1 18/2 18/3 18/4 18/5 18/6 18/7 18/8 18/9 18/10 18/11 1
Slide 10: Quarterly Trends in Front-End Utilization Rate
QUARTERLY TRENDS IN FRONT-END UTILIZATION RATE WAFER INPUT BASIS Total 6-inch line 8-inch line 12-inch line 100% 80% 60% 40% 20% 0% *1 FY17/Q1 FY17/Q2 FY17/Q3 FY17/Q4 FY18/Q1 FY18/Q2 FY18/Q3 FY18/Q4 FY19/Q1 FY19/Q2 *1: The utilization rate of the 6-inch line was revised from the previous earnings an
Slide 11: Quarter-End Order Backlog and Subsequent Quarters' Revenue from Semiconductors
QUARTER-END ORDER BACKLOG AND SUBSEQUENT QUARTERS’ REVENUE FROM SEMICONDUCTORS ORDER BACKLOG: AMOUNT OF CUSTOMER ORDERS DUE EVERY SUBSEQUENT QUARTER *1 *1, 2, 3 Order Backlog (requested amount for the following quarter) Revenue from Semiconductors for the subsequent quarter (B yen) 250 206.4 194.3 1
Slide 12: FY19/12 Q3 Financial Forecasts
Non-GAAP FY19/12 Q3 FINANCIAL FORECASTS IFRS, NON-GAAP BASIS*1*2 YoY and QoQ results of the Net Sales and Semi Sales are rounded off to one decimal place. FY18/12 FY19/12 (B yen) Q3 9 months Q3 9 months Q2 (Jul-Sep) YoY QoQ (Jan-Sep) YoY (Jul-Sep) (Jan-Sep) (Apr-Jun) Forecast Forecast 184.0 +2.3% -4
Slide 13: Appendix
APPENDIX The figures in this section are mainly based on GAAP (IFRS) stated on a financial reporting basis and are provided as additional information. © 2019 Renesas Electronics Corporation. All rights reserved.
Slide 14: GAAP(IFRS) / Non-GAAP Reconciliation
GAAP(IFRS) / NON-GAAP RECONCILIATION FY18/12- *1 Non-GAAP Basis: Non-GAAP figures are calculated by adjusting or removing non-recurring items and other adjustments from GAAP figures following a certain set of rules. The Group believe non-GAAP measures provide useful information in understanding an
Slide 15: GAAP(IFRS) / Non-GAAP Reconciliation
GAAP(IFRS) / NON-GAAP*1 RECONCILIATION FY18/12- *2 FY18/12 FY19/12 (B yen) Q1 Q2 Q3 Q4 Q1 Q2 Operating Profit (GAAP/After PPA) 23.4 32.8 13.1 -1.1 -1.3 -2.5 Reconciliations in Gross Profit Level +1.4 +0.5 -0.0 +0.0 +1.9 +12.8 PPA Effects*3 (Amortization of Intangible Assets: SG&A*4) +4.1 +3.7 +3.8 +
Slide 16: IFRS GAAP / Non-GAAP Reconciliation
IFRS GAAP / NON-GAAP*1 RECONCILIATION FY18/12- *2 FY18/12 FY19/12 (B yen) Q1 Q2 Q3 Q4 Q1 Q2 Net Profit (GAAP/After PPA) 18.6 31.6 11.8 -10.9 -1.8 -1.2 Reconciliations +6.7 +0.3 +8.4 +20.5 +8.5 +29.9 in Operating Profit Level Reconciliations in Net Profit - - - - - - (PPA Effects*3) Reconciliations i
Slide 17: FY19/12 Q2 Financial Snapshot (IFRS)
GAAP IFRS FY19/12 Q2 FINANCIAL SNAPSHOT IFRS*1 YoY and QoQ results of the Net Sales and Semi Sales are rounded off to one decimal place. FY18/12 FY19/12 (B yen) Q2 1H Q2 1H Q1 (Apr-Jun) YoY QoQ (Jan-Jun) YoY (Apr-Jun) (Jan-Jun) (Jan-Mar) Actual Actual Sales Revenue 203.3 388.9 150.3 192.6 -5.3% +28.
Slide 18: GAAP (IFRS) / Non-GAAP Reconciliation in FY19/12 Q2 Operating Profit
GAAP (IFRS) / NON-GAAP *1 RECONCILIATION IN FY19/12 Q2 OPERATING PROFIT GAAP Non-GAAP (B yen) 30 27.4 25 One -off 20 15 One -off 10 5 0 -2.5 -5 GAAP PPA Effects Early Retirement*1 PPA Effects PPA Effects Stock-Based Non-GAAP (Intersil’s (Intersil’s Others Operating Profit IDT Inventory -Related Ex
Slide 19: Balance Sheets
GAAP IFRS BALANCE SHEETS IFRS*1 As of Mar. 31, As of Jun. 30, As of Sep. 30, As of Dec. 31, As of Mar. 31, As of Jun. 30, (B yen) *7 *7 2018 2018 2018 2018 2019 2019 Total Assets 1,085.7 1,119.7 1,125.3 1,055.2 1,843.2 1,673.7 *2 Cash and Cash Equivalents 124.3 160.3 184.5 188.8 196.7 116.5 *8 129.8
Slide 20: Non-GAAP EBITDA and IFRS Cash Flows
Non-GAAP (EBITDA) GAAP IFRS (Cash Flows) NON-GAAP*1 EBITDA*2 IFRS AND IFRS*3 CASH FLOWS Non-GAAP EBITDA (B yen) IFRS Cash Flows (B yen) Cash flows from operating activities 60 57.1 75 Cash flows from investing activities 53.7 53.2 Free cash flows *4 61.2 50 60 54.4 45.5 48.1 43.4 44.5 45.1 45 38.2 4
Slide 21: Capital Expenditures
Page 21 CAPITAL EXPENDITURES *1 (B yen) Capital Expenditures Sales Ratio 8 3.0% 7 2.5% 2.3% *2 2.3% 2.3% 2.5% 2.2% 6 5.0 2.0% 5 4.4 4.4 4.1 4.1 1.4% 4 1.3% 1.5% 3 2.7 1.0% 1.9 2 0.5% 1 0 0.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Forecast FY18/12 FY19/12 *1: The figure is investment decision basis of tangible and in
Slide 22: Highlights from FY19/12 Q2
HIGHLIGHTS FROM FY19/12 Q2 MAJOR ANNOUNCEMENTS FROM APRIL 1, 2019 TO JUNE 30, 2019 Corporate Named CFO Hidetoshi Shibata as next Representative Director, President and CEO, effective July 1 Announced further Renesas + IDT Winning Combination solutions for a wide range of markets including Indust
Slide 23: Renesas.com (Forward-Looking Statements)
Renesas.com (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. Such forward- looking statem