Slide 1: Renesas Electronics Business Policy
Renesas Electronics Business Policy Renesas Electronics Corporation August 2, 2011 Yasushi Akao, President © 2011 Renesas Electronics Corporation. All rights reserved.
Slide 2: Introduction – Recovery and Reconstruction Following the Great East Japan Earthquake
Introduction –Recovery and Reconstruction Following the Great East Japan Earthquake- 2 © 2011 Renesas Electronics Corporation. All rights reserved.
Slide 3: Recovery from the Earthquake - Completion of Naka Factory Restoration
Recovery from the Earthquake- Completion of Naka Factory Restoration Great support from outside and inside the Renesas Group helped to speed up the resumption of operation by three months After the Earthquake (as of March 21) Early Recovery Expect the supply capability to reach the pre-earthquake le
Slide 4: Impact of the Earthquake and Efforts toward Recovery, and Measures for Mid-Term Growth
Impact of the Earthquake and Efforts toward Recovery, and Measures for Mid-Term Growth Carried out recovery from earthquake with utmost effort -Grateful for all of the help from everyone involved Accelerate transformation of business portfolio following the earthquake CY2010 1H/CY2011 2H/CY2011 CY20
Slide 5: Executive Summary
Executive Summary 1. Business Focus of Renesas Group 2. Strengthen Core Business ‐Focus Market 3. Business Continuity Plan (BCP) 4. Summary of Business Policy 5 © 2011 Renesas Electronics Corporation. All rights reserved.
Slide 6: 1. Strengthen Core Business - Focus Market (1) Keywords to Market Development
1. Strengthen Core Business -Focus Market (1) Keywords to Market Development 6 © 2011 Renesas Electronics Corporation. All rights reserved.
Slide 7: Key Words: Overseas Market, Emerging Countries and Smart Society
Key Words: “Overseas Market”, “Emerging Countries” and “Smart Society” Capture overseas market with high growth potential Rapid economic development in emerging countries Increasing range of functions in electric equipment and automobiles and growing demand for reasonably priced products Increase
Slide 8: Toward Smart Society through Coexistence with the Global Environment
Toward “Smart Society” through Coexistence with the Global Environment With the energy condition and zero-based infrastructure in addition to environmental conservation and convenience, smart society will develop both in emerging/developed countries =>Expansion of market segments to grow both in eme
Slide 9: 1. Strengthen Core Business - Focus Market (2) Market of Smart Society
1. Strengthen Core Business -Focus Market (2)Market of “Smart Society” 9 © 2011 Renesas Electronics Corporation. All rights reserved.
Slide 10: Renesas' World-Leading Products for Smart Society
Renesas’ World-Leading Products for Smart Society Further enhance lineups of one-kit solution with power and analog devices evolving around the strong MCUs Smart Society Market Smart Grid Smart Home Smart Car ・Energy-saving ・Next-generation ・Power generation/ automobile (HEV/EV) home appliance Syste
Slide 11: Approach to Smart Grid Market
Approach to Smart Grid Market Semiconductor market for Smart Grid applications as the new promising market to grow drastically 百万ド 1 million ル USD Semiconductor Semiconductor Market Market for for Smart Smart Grid Grid Applications Applications 90000 80000 70000 60000 50000 40000 30000 20000 10000 0
Slide 12: Approach to Smart Grid Market
Approach to Smart Grid Market Provide solution for Smart Meter, a key component for Smart Grid ＮＡＮ Smart Meter Charge/ Generation Control discharge (Measurement, Electric control Communication) Power Company Thermal Power Plant Wind Power Plant ＨＡＮ Electric Solar Power generation Power Storage infor
Slide 13: Smart Meter Solution
Smart Meter Solution M units/year Meter Shipment Volume (WW) Aggressive approach to Smart 2000 Meter market, that has high market growth rate and 1500 requires multiple MCUs 1000 Strengthen solutions for meter/communication unit 500 based on proven track record as Smart Meter the top supplier of MCU
Slide 14: Approach to Smart Home Market
Approach to Smart Home Market Aggressive promotion of MCU and Analog & Power products to the inverter-controlled home electronics and LED lighting markets globally expanding with increasing awareness on energy conservation Solar power Inverter -controlled home Inverter-controlled home electronics el
Slide 15: Solutions for Inverter-Controlled Home Appliances
Solutions for Inverter-Controlled Home Appliances Provide inverter-control MCU (40% W/W share) together with Analog & Power products as one kit-solution Reference board for inverter Inverter-controlled motor (Renesas MCU + A&P) home appliances Low-power inverter MCU Photo- Transistor Op-amp MCU coup
Slide 16: LED Lighting Solution
LED Lighting Solution Provide full lineups of MCU solutions with analog drivers for various LED lightings together with enhanced development environment Low Low system system Communication Communication function/ function/ •Software automatic- cost cost Multi-channels Multi-channels driver driver ge
Slide 17: Approach to Smart Car Market
Approach to Smart Car Market Automotive semiconductor market is expected to increase steadily driven by growth in emerging countries and rise in HEV/EV ratio Automotive MCU : Automotive Semiconductor Market Demand Trend 5.1B US$ (CY2010) B US$ 30 CAGR ’10-15 25 44% 20 Analog +9% +9% Automotive Power
Slide 18: Smart Car Solution
Smart Car Solution Expanded lineup of A&P products for automobiles, Provide as a kit-solution with MCU Reduce development time by offering a sample software Provide timely support for customers’ evaluation by offering a demonstration board MCU Analog & Power High power High-current/ Power Discrete
Slide 19: 1. Strengthen Core Business - Focus Market (3) Global/Emerging Market
1. Strengthen Core Business -Focus Market (3)Global/Emerging Market 19 © 2011 Renesas Electronics Corporation. All rights reserved.
Slide 20: Approach to Emerging Markets
Approach to Emerging Markets Future semiconductor market growth will be led by China and other emerging countries (B US$) Projected Projected TAM-based W/W TAM-based W/W semiconductor semiconductor market market growth growth 500 CAGR(10-15) +8% 400 300 200 BRICs 100 CAGR (10-15) ＋14% 0 2010 2011 20
Slide 21: Approach to Emerging Markets
Approach to Emerging Markets Amidst a rapid expansion of MCU market in China, Renesas attained the position as the market leader leaving competitors far behind MCU Sales of MCU Share of Chinese Market Chinese Market 25% CY2009 CY2010 Rapid +7% expansion 3773M US$ 20% of MCU Increased market +85% mar
Slide 22: Approach to Emerging Country Markets: All in China
Approach to Emerging Country Markets Built a comprehensive structure facilitating local development based on local needs with the market-leading, rich lineup of elemental technologies and products that correspond with expanding areas Sales Planning All in China Manufacturing Development Plan to laun
Slide 23: Approach to Emerging Country Markets
Approach to Emerging Country Markets Efforts to grow sales in the next promising Indian and Brazilian market that have a huge potential for growth with enhanced local-based support Chinese Market Oct. 2010 -Started operation of “MCU China Business Unit” -Raised CY10 MCU market share to 22% from 15%
Slide 24: Approach to Overseas Market
Approach to Overseas Market Provide the best solutions combining MCUs and A&P products tailored to overseas market demands Competitive A&P Provide the best solutions products in Japan to overseas customers Tran- Analog MCU sistor Launched Marketing Unit (Apr. 2011) IC 64% 17% 6% →Unified marketing f
Slide 25: 2. Business Policy by Business Segment
2. Business Policy by Business Segment 25 © 2011 Renesas Electronics Corporation. All rights reserved.
Slide 26: 2. Business Policy by Business Segment (1) MCU Business
2. Business Policy by Business Segment (1) MCU Business 26 © 2011 Renesas Electronics Corporation. All rights reserved.
Slide 27: World-Leading Renesas MCU
World-Leading Renesas MCU Firmly maintained top positions both in general- purpose/automotive MCUs with 29% market share w/w 23% Share 35% Share 16% Share Rank #1 MCU Rank #1 MCU Rank #2 MCU Europe/ME/Africa Asia inc. Japan Americas M US$/Year General Type Rank -purpose 2206 MCU* 8-bit #1 16-bit #1
Slide 28: Strength of the MCU Business
Strength of the MCU Business Target zero-defects ■High Quality -Currently boasts 0.4ppm <Safety improvement> (parts per million) ■Low Power World-leading low power consumption <Support promotion -Achieved 55μA/DMIPS with RL78 MCU of green products> Integrated GUI (Graphical User Interface) ■Integrat
Slide 29: Exceptional High Quality
Exceptional High Quality Utilizing the strength as an IDM, realized percent defective of 0.4ppm through cross-sectional zero-defect activities from design to manufacturing Design Design testing MCU quality (M pcs) (ppm) Design analysis 3000 improvement 5.00 Quality design Feedback to design Feedback
Slide 30: Out-and-Out Efforts toward Low Power
Out-and-Out Efforts toward Low Power Realize unparalleled low power consumption through optimization of CPU core and processes Power consumption/performance comparison (uA/DMIPS) 32-bit 32-bit 16-bit @100 MHz @50 MHz @32 MHz 448 330* 367 300 200 167 128 55 Company A Company B Company C Company D Com
Slide 31: Promotion of Integrated Support Tools
Promotion of Integrated Support Tools 2010 2011 •Increase development efficiency Integrated Improve user operability through Development Integrated GUI, Supports MCU Environment (IDE) Integrated tool development under the same operation Integrated Launched software development To be launched in Nov
Slide 32: Support Structure
Support Structure Provide fine-tuned support as a semiconductor company in cooperation with partner companies Extensive alliance with over 700 partner companies worldwide Provides customers with wide range of solutions including products and services from numbers of partners that provide services or
Slide 33: Global Network
Global Network Construct a network on a global basis for sales, marketing, technology development Renesas Electronics Renesas Electronics Renesas Electronics Renesas Electronics Europe GmbH China Co., Ltd. HQ America Inc. Account Sales/SCM Sales/SCM Sales/SCM Sales/SCM management Product marketing m
Slide 34: Target to Grow with Higher Rate than the Market
Target to Grow with Higher Rate than the Market Realize further growth in the global market, emerging countries and “Smart Society” by utilizing Renesas’ overwhelming strength on MCU. Aim to expand market share at a growth rate exceeding that of MCU market Target 35％ W/W Actual market R 9 % share 29
Slide 35: 2. Business Policy by Business Segment (2) Analog & Power Business
2. Business Policy by Business Segment (2) Analog & Power Business 35 © 2011 Renesas Electronics Corporation. All rights reserved.
Slide 36: Overview of Analog & Power Business
Overview of Analog & Power Business Low-loss power device, and highly-integrated analog ICs realize energy-efficient and compact system Power Power Device Device Power Device ・Power devices such as MOSFET and IGBT ・Market share: 7.4% (5th) (Note: including IGBT module) Others Analog Analog Analog IC
Slide 37: Renesas' Power Device
Renesas’ Power Device Extensive product lineups ranging from low-voltage to high-voltage (up to 2,000V) contribute to offering wide range of highly-efficient systems Adding Adding toto world’s world’s No.1 No.1 low-voltage low-voltage power power MOSFET, MOSFET, Demand Demand forecast forecast of of
Slide 38: Renesas' Low-Voltage Power Device Technology
Renesas’ Low-Voltage Power Device Technology Low on-resistance, fast switching speed and space-saving packaging to attain high efficiency and more compact systems MOSFET for battery SVR solution for power Power device for automobile supply of PC and server Established excellent Energy-saving, space-
Slide 39: Renesas' Power Device Technology Realizes High-efficiency Inverter
Renesas’ Power Device Technology Realizes High-efficiency Inverter Trench-filling epitaxial technology, ultra-thin wafer process technology and space-saving packaging yield more compact systems with high efficiency High-voltage High-voltage MOSFET MOSFET IGBT IGBT FRD FRD Diode Diode (Over (Over 200
Slide 40: Enhance Product Lineups of High-voltage Power Devices
Enhance Product Lineups of High-voltage Power Devices Inverters as the key driving force for growing power devices Enhance product lineup covering up to 1,800V centering around power devices for inverter control <# of products> -PDP Approx. Appliance Appliance <Forecast of -Strobe FY10 10 products H
Slide 41: Renesas Analog ASIC/ASSP Products
Renesas Analog ASIC/ASSP Products Optimally-designed by system needs, realizing a compact system with high functionality ・ Market of analog ASIC/ASSP accounts for 60% of the whole analog market Analog Analog IC IC market market ・ Renesas has a proven record centering around automotive, consumer Anal
Slide 42: Automotive Analog ASIC/ASSP
Automotive Analog ASIC/ASSP Automotive systems require sensor inputs, and mechanical control, and thereby makes analog IC a key component Needs for uniting peripherals with analog IC as a core to realize compact and highly-integrated system 30 Demand forecast Power Supply (DC/DC, PFC) of automotive
Slide 43: Automotive Analog IC: Expand to ASSP in Addition to ASIC
Automotive Analog IC: Expand to ASSP in Addition to ASIC Adding ASSP business based upon the rich experience of automotive analog system technology of ASIC Automotive analog Analog ASSP system technology “Contribute to low-power, down-sized, Power Power steering steering safety design of automotive
Slide 44: Provide Battery Management Solutions for Cloud Terminals
Provide Battery Management Solutions for Cloud Terminals Forecast for Forecast for Market Market scale scale in in 2015: 2015: Battery Battery monitor/control monitor/control Approx. 38BUS$ Approx. 38BUS$ Wireless Wireless charging charging system system With total technology of MCU＋Analog IC Provid
Slide 45: Target Market Share
Target Market Share ＣＹ２０１０ ＣＹ２０１５ 1st 11% 2nd 9.2% Power Power 3rd 8.4% Over 10％ Device Device 4th 7.9% 5th Renesas 7.4% 1st 11% 2nd 9.0% Analog Analog 3rd 6.7% Over 5％ IC IC 4th 6.6% 5th Renesas 3.9% Source: Renesas, iSuppli (CY10) 45 © 2011 Renesas Electronics Corporation. All rights reserved.
Slide 46: 2. Business Policy by Business Segment (3) SoC Business
2. Business Policy by Business Segment (3) SoC Business 46 © 2011 Renesas Electronics Corporation. All rights reserved.
Slide 47: SoC Business Domain and Policy
SoC Business Domain and Policy Core devices for cloud-computing infrastructure High-speed/Large capacity data transferring Appeal high reliability and error correction technology Base transceiver station Cloud infra- Storage structure Server Network equipment Highly-reliable, real-time Encryption
Slide 48: Provide SoCs for Core Equipment of Cloud Infrastructure and Industrial Equipment
Provide SoCs for Core Equipment of Cloud Infrastructure and Industrial Equipment Steadily expand business by providing silicon solutions for core equipments of cloud infrastructure and for industrial equipments Streamline consumer products of short lifecycle Energy FA and Wireless Network Office equ
Slide 49: Focus on STB in the Era of Cloud Computing
Focus on STB in the Era of Cloud Computing Propose and expand new STB for pay-per-view TV service with rich cryptographic technology for/via service operator and provider integrating communication, broadcasts and internet Service operator/ Propose Traffic forecast of Internet video Content provider
Slide 50: Renesas Mobile Business Strategy - Necessary Conditions to Win in the Market
Renesas Mobile Business Strategy － Necessary Conditions to Win in the Market Application technologies No.1 track record in Japan Reference design OS Technologies SoC LTE data card Customers W/W Support Android 2.3 Modem technologies -Application processer -RF IC Android -Modem baseband smartphone Wo
Slide 51: Business Strategy of Renesas Mobile - Sufficient Condition to Win
Business Strategy of Renesas Mobile － Sufficient Condition to Win Long-term partnership with third-party companies is essential to provide mobile platform Only Renesas Mobile and other few companies have experience of broad partnership Company A Process of Company B providing mobile platform built-i
Slide 52: 3. Business Continuity Plan (BCP)
3. Business Continuity Plan (BCP) 52 © 2011 Renesas Electronics Corporation. All rights reserved.
Slide 53: Renesas' New BCP
Renesas’ New BCP Aim to improve strength for business continuity to prioritize keeping stable product supply to customers BCP Concept Stable ・Stock management Before considering risks the Supply Resume product supply Customers ・Study alternate quake Stable production and improve Production 製品供給再開 re
Slide 54: Approach to Reduce Damages to Minimum Level
Approach to Reduce Damages to Minimum Level Build robust factories by enhancing earthquake resistance and countermeasures for quick recovery ■Enhance earthquake safety Resistant to intensity 6 lower Strengthen to 6 upper (same level as the Great East Japan Earthquake) Target to resume productio
Slide 55: Accelerate the Fab Network as Part of Stronger BCP
Accelerate the “Fab Network” as Part of Stronger BCP “Fab network”, which has been promoted through the 100-Day project, is the most effective countermeasures against earthquake Full-effort to accelerate establishment of “fab network” to ensure further reliability to customers Customers requests ・Mu
Slide 56: Example of Multi-Fab Approach for MCU Products
Example of “Multi-Fab” Approach for MCU Products Process Process Current Alternate Time frame node technology fab/line fab/line RC01F Naka/200mm Naka/300mm, Mass production Foundry now RC01S Saijo/200mm Naka/300mm Mass production now 0.15μm MF2 Kawashiri/200mm Foundry, Mass production (Shiga) now, (
Slide 57: Approach to Multi-Fab for A&P Products
Approach to “Multi-Fab” for A&P Products Process- Process Current Alternate fab/line Time frame node technology fab/line 10μm TRIAC Takasaki/150mm Foundry FY12 0.5μm BCD Kochi/150mm Saijo/200mm 2H/FY12 Automotive Kofu/200mm Shiga/200mm FY12 IGBT 0.35μm Mass Automotive Naka/200mm Takasaki/150mm produ
Slide 58: Approach to Stable Supply
Approach to Stable Supply Promote visualization of risks and provide tailored various options to customers Material Procurement Manufacturing Sales/Logistics Customers SCM before the earthquake ◆Promote multi-suppliers in buying materials ◆Carry work-in-progress in ◆Carry finished products in stock
Slide 59: 4. Summary of Business Policy
4. Summary of Business Policy 59 © 2011 Renesas Electronics Corporation. All rights reserved.
Slide 60: Target Business Structure
Target Business Structure Accelerate focusing on MCU and A&P businesses Continue to expand Renesas’ world No.1 MCU business for smart society and emerging countries Further expand MCU and A&P businesses with synergy among MCU, Analog IC and power device as the main pillar for achieving profits
Slide 61: Path to Target Business Structure
Path to Target Business Structure Jul. 2011 Decision made to transfer to Present Target Murata Manufacturing Business Structure A&P MCU SoC Business Business Business PA* Business Business Non-core Non-core Businesses Sales growth as core businesses Businesses 125-150mm 200-mm 300-mm wafer lines waf
Slide 62: Target Management Index
Target Management Index FY2011 Mid-term target Ratio to Sales Operating -3% Over 10% Profit Ratio Transformation of business structure -Strengthen core Gross businesses 32% -Accelerate withdrawal Approx. 40% Profit Ratio from non-core businesses -Manufacturing R&D Ratio 20% realignment Approx. 16%
Slide 63: 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
Slide 64: Renesas Electronics Corporation
Renesas Electronics Corporation © 2011 Renesas Electronics Corporation. All rights reserved.