Slide 1: FY13/3 Q3 Financial Results
FY13/3 Q3 Financial Results Renesas Electronics Corporation February 8, 2013 Yasushi Akao, President
Slide 2: Executive Summary
Executive Summary Ⅰ. FY13/3 Q3 Financial Results Semiconductor sales were 177.2 B yen, a decrease by 14% QoQ, mainly due to the continued downturn of the global market along with a weak demand from production decrease of automotive, electronic and other equipment for China Operating loss was 7.9
Slide 3: I. FY13/3 Q3 Financial Results
I. FY13/3 Q3 Financial Results 3 © 2013 Renesas Electronics Corporation. All rights reserved.
Slide 4: FY13/3 Q3 Financial Snapshot
FY13/3 Q3 Financial Snapshot Semiconductor sales were 177.2 B yen, a decrease by 14% QoQ, mainly due to the continued downturn of the global market along with a weak demand from production decrease of automotive, electronic and other equipment for China Operating loss was 7.9 B yen, 2.2 B yen wo
Slide 5: Quarterly Financial Results
Quarterly Financial Results FY12/3 FY13/3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 (B yen) 243.3 Net Sales 222.9 222.8 207.2 209.7 186.6 191.0 Semi. Sales 184.0 218.2 198.0 185.8 168.2 205.3 177.2 Operating Income (Loss) -10.1 -4.0 -5.7 -7.9 -19.1 -23.6 -17.6 5 © 2013 Renesas Electronics Corporation. All rights reserve
Slide 6: FY13/3 Q3 Semiconductor Sales by Business (1)
FY13/3 Q3 Semiconductor Sales by Business (1) Q3 semiconductor sales decreased QoQ in three business units FY12/3 FY13/3 (B yen) QoQ YoY Q3 Q2 Q3 Semiconductor -28.1 -20.8 198.0 205.3 177.2 (-14%) (-11％） Sales (Total) -9.8 -17.5 MCU 88.6 80.9 71.2 (-12％) (-20％） Analog & -10.3 +3.3 54.5 68.1 57.8 (
Slide 7: FY13/3 Q3 Semiconductor Sales by Business (2)
FY13/3 Q3 Semiconductor Sales by Business (2) Automotive: Consumer: General-purpose MCU sales decreased by approximately 15% approx. 55% less than 20% QoQ on quarter due to a sales decrease in applications such as industrial and consumer with the continued downturn of the MCU Industry: global marke
Slide 8: FY13/3 Q3 Operating Income (Loss) QoQ
FY13/3 Q3 Operating Income (Loss) QoQ Operating loss worsened by 2.2 B yen QoQ due to lower profit from a sales decrease despite fixed cost reduction effects from structural reforms FY13/3 FY13/3 Q2 Q3 (B yen) -5.7 -7.9 Lower profit from +1.8 Expense reduction measures, etc sales decrease Expense
Slide 9: FY13/3 Q3 Net Income (Loss)
FY13/3 Q3 Net Income (Loss) Recorded net loss of 46.6 B yen due to special income (loss) of negative 32.8 B yen from business/production structural reforms FY13/3 Q3 (B yen) Operating Net Income Income (Loss) (Loss) Non-operating Income (Loss): -3.2 B yen -7.9 Special Income (Loss): -32.8 B yen Re
Slide 10: FY13/3 Q3 Balance Sheets
FY13/3 Q3 Balance Sheets As of Mar. 31, As of Sep. 31, As of Dec. 31, (B yen) 2012 2012 2012 Total Assets 858.2 748.3 716.7 Cash and Cash 131.9 69.6 95.1 Equivalents Inventories 151.8 147.9 149.3 Liabilities 631.7 641.4 643.3 Interest-Bearing Debt 258.3 239.3 316.2 Shareholders’ Equity 243.4 128.3 8
Slide 11: FY13/3 Q3 Cash Flows
FY13/3 Q3 Cash Flows Without the impact from lump-sum payout for implementation of the early retirement incentive program, the company continued to secure positive cash flows from operating activities since Q2 and recovered free cash flows to be positive although the actual free cash flows were ne
Slide 12: II. FY13/3 Financial Forecasts
II. FY13/3 Financial Forecasts 12 © 2013 Renesas Electronics Corporation. All rights reserved.
Slide 13: Financial Forecasts
FY13/3 Financial Forecasts Lowered full-year sales forecasts due to a decline in demand of semiconductors for automotive and industrial applications which were expected to recover at certain level in 2H of FY13/3 as well as semiconductors for consumer electronics whose sales were expected to be st
Slide 14: FY13/3 2H Semiconductor Sales Forecasts
FY13/3 2H Semiconductor Sales Forecasts (Comparison with the previous forecasts) <Major reasons for （B yen） the sales decrease> <Semiconductor <386.4> -49.0 <Market> 1) Caused a gap between the Sales> <337.4> previous forecasts and the current forecasts in which the SoC company expected a recovery i
Slide 15: FY13/3 2H Operating Income (Loss) Forecasts
FY13/3 2H Operating Income (Loss) Forecasts (Comparison with the previous forecasts) （B yen) 44.3 Lower profit from sales decrease (including currency impact) Lower profit from production decrease, etc -35.8 -11.2 -2.7 FY13/3 2H FY13/3 2H Previous forecast Forecast (As of Dec. 10) (As of Feb.8) 15 ©
Slide 16: III. Progress of Reduction in Human Resources and Production Structural Reforms
III. Progress of Reduction in Human Resources and Production Structural Reforms 16 © 2013 Renesas Electronics Corporation. All rights reserved.
Slide 17: Implement Further Rationalization Initiatives
Implement Further Rationalization Initiatives ■ Implement further rationalization initiatives including optimization of the personnel structure with the aim of improving the cost structure; speeding up decision-making; and restructuring design, development, production, and sales organizations in acc
Slide 18: Progress of Production Structural Reforms
Progress of Production Structural Reforms Progress as planned in structural reforms including the transfer of three back- end sites decided on January 30, 2013, following the completion of transferring one back-end site since the reforms were announced on July 3, 2012 Sites/Lines after Current Dir
Slide 19: Accelerate Changes for the Flexible and Robust Cost Structure
Accelerate Changes for the Flexible and Robust Cost Structure ■ Accelerate to change the revenue base by significantly reducing fixed costs from completing measures to reduce human resources and the business/production structural reforms which are in progress Reduction in Human Resources Slimming do
Slide 20: Implement Measures toward New Growth with Accelerating Current Reforms
Implement Measures toward New Growth with Accelerating Current Reforms Q4 is expected to be Stable financial base Reforms to improve bottom of the markett ＋ the revenue Strategic investment structure quickly Sales are for growth expected to Cost structure recover gradually 150 B yen capital
Slide 21: Summary
Summary FY13/3 Q3 semiconductor sales were 177.2 billion yen, decreased by 14% QoQ and the operating loss was 7.9 billion yen despite certain results in expense reduction with the structural reforms so far Lowered both sales and earnings forecasts for FY13/3 due to a weak demand from production
Slide 22: © 2013 Renesas Electronics Corporation. All rights reserved.
22 © 2013 Renesas Electronics Corporation. All rights reserved.
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