Slide 1: FY10/3 Q1 Financial Results
FY10/3 Q1 Financial Results Junshi Yamaguchi President and CEO July 29, 2009 NEC Electronics Corporation http://www.necel.com/ir/en/ 1
Slide 2: Executive Summary
Executive Summary I. FY10/3 Q1 Financial Results ¾ Semiconductor sales were better than the company’s expectation on May 11, 2009 ¾ Operating loss was in line with the company’s forecast II. FY10/3 Forecasts ¾ FY10/3 forecasts will remain unchanged ¾ Aim to attain operating profit for full-year by e
Slide 3: I. FY10/3 Q1 Financial Results II. FY10/3 Forecasts III. Business Highlights
I. FY10/3 Q1 Financial Results II. FY10/3 Forecasts III. Business Highlights 3
Slide 4: Financial Snapshot
Financial Snapshot FY09/3 FY10/3 (B Yen) Q1, 6/30 Q4, 3/31 Q1, 6/30 Actual Actual Actual YoY QoQ Net Sales 166.3 85.5 102.0 -64.3 +16.4 Semiconductor Sales 159.2 80.7 98.0 -61.1 +17.3 Operating Income (Loss) 1.7 -53.3 -20.9 -22.6 +32.4 Income (Loss) Before Income Taxes 0.3 -69.2 -20.8 -21.1 +48.4 Ne
Slide 5: Trends in Quarterly Results
Trends in Quarterly Results 200.0 (B Yen) 177.8 177.9 171.4 173.6 1,774 170.8 166.8 162.7 170.3 165.2 166.3 167.3 166.0 146.1 169.7 171.1 169.1 163.7 160.0 156.8 162.0 158.1 160.8 165.0 155.4 159.2 159.2 127.3 140.3 102.0 122.7 Net Sales 100.0 85.5 98.0 Semicon. Sales 80.7 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q
Slide 6: Q1 Semiconductor Sales by Platform
Q1 Semiconductor Sales by Platform (B Yen) SoC +5％ • LSI for camera phones and EMMA products in good demand 40.8 39.0 QoQ +21% FY09/3 Q4 FY10/3 Q1 • Robust growth in Currency impact sales of automotive 98.0 Approx. +3.8 MCU +34％ products and multi- purpose ICs 80.7 28.0 20.8 FY09/3 Q4 FY10/3 Q1 • Ra
Slide 7: FY10/3 Q1 Factors in Operating Income (Loss)
FY10/3 Q1 Factors in Operating Income (Loss) (B Yen) QoQ 98.0 80.7 Semicon. +1 7 . 3 Sales +）Increased sales （including forex impact）, Higher GP due to increased sales （Utilization rates from 43% to 51%） +）Cost reduction effect including fixed production expense, personnel cost, and other fixed cost
Slide 8: Balance Sheets
Balance Sheets (B Yen) 08/6 09/3 09/6 Cash and Cash Equivalents 159.0 101.3 79.5 Accounts Receivable 99.5 52.5 66.0 Inventories 79.5 63.2 58.4 PP&E 253.9 242.1 241.7 Other Assets 29.3 23.5 26.2 Total Assets 621.2 482.5 471.8 Accounts Payable 106.0 78.8 72.0 Debt Payable 117.3 116.9 136.0 Other Liabi
Slide 9: Cash Flows
Cash Flows FY09/3 FY10/3 (B Yen) Q1 Q4 Full-Year Q1 Cash Flows from 4.2 -36.3 -6.9 -24.7 Operating Activities Cash Flows from -10.9 -18.7 -49.3 -17.4 Investing Activities Free Cash Flows -6.7 -55.0 -56.2 -42.1 Cash Flows from -1.5 -0.6 -4.3 +19.4 Financial Activities 9
Slide 10: I. FY10/3 Q1 Financial Results II. FY10/3 Forecasts III. Business Highlights
I．FY10/3 Q1 Financial Results II．FY10/3 Forecasts III．Business Highlights 10
Slide 11: FY10/3 Financial Forecasts
FY10/3 Financial Forecasts FY10/3 FY10/3 forecast forecast remain remain unchanged. unchanged. Aim Aim to to achieve achieve operating operating profit profit for for the the full full year year FY10/3 (B Yen) 1H 2H Full-Year Forecast YoY Forecast YoY Forecast YoY -66.5 Net Sales 215.0 -118.6 265.0
Slide 12: Trends in Amount of Orders
Trends in Amount of Orders Amount of Orders (3-month moving average) FY10/3 Q1 Order Trends FY09/3 1H Average Increase in overall amount of orders, especially general purpose products and automotive products showed robust recovery. FY08/3 FY09/3 FY10/3 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Slide 13: FY10/3 Q2 Semiconductor Sales Forecast
FY10/3 Q2 Semiconductor Sales Forecast (B Yen) SoC Approx. +5％ • Sales of digital AV devices including EMMA products in particular are expected to increase QoQ More than +9% 40.8 （Based on 1H sales forecast of 205B Yen) FY10/3 Q1 FY10/3 Q2 e • Continuous growth in More than 107.0 MCU Approx. +20％ sa
Slide 14: FY10/3 Q2 Operating Income (Loss) Forecast
FY10/3 Q2 Operating Income (Loss) Forecast (B Yen) QoQ More than 107.0 98.0 Semicon. Sales +）Expected to increase sales (including forex impact), GP also expected to be higher due to increase in production （Utilization rates from 51% to approx. 65%） Operating -4.0 Income Increased GP (Loss) +17.0 -2
Slide 15: Progress on 90 B Yen Fixed Cost Reduction
Progress on 90 B Yen Fixed Cost Reduction Reduced Reduced Fixed Fixed Costs Costs by by Approx. Approx. 25B 25B Yen Yen in in FY10/3 FY10/3 Q1 Q1 YoY YoY Reduced Approx. 90B Yen Q4 as of FY09/3 Breakdown of Q4 Q3 25B Yen fixed cost reduction •Manufacturing-related cost Q3 Approx. -17.5B Yen (Includi
Slide 16: I. FY10/3 Q1 Financial Results II. FY10/3 Forecasts III. Business Highlights
I. FY10/3 Q1 Financial Results II. FY10/3 Forecasts III. Business Highlights 16
Slide 17: Progress on Focused Businesses
Progress on Focused Businesses Increased IncreasedBusiness BusinessNegotiation Negotiationon onAdvanced AdvancedProcess ProcessTechnology Technology Business expansion with 40/55 nm generation products ¾Mass production of 40nm node products will begin in FY10/3 1H 40nmCBIC ¾Increased new orders with
Slide 18: Expansion of Core Businesses / Efforts Toward Green Business
Expansion of Core Businesses Efforts Efforts Toward Toward Green Green Business Business Development of platform technology for low power LSI ¾Development of process technology and device technology on cutting-edge process node to realize low-power LSI Cu-interconnect module with full porous low-k f
Slide 19: Promotion of Green-Solution Products
Promotion of Green-Solution Products New New Concept Concept “Green-Solution” “Green-Solution” Green LSI Creation of low-power, miniaturized eco-friendly LSI ＜Platform＞Development technology, Process, High-voltage, eDRAM Toward Green System Offer solution that realize innovative power efficiency to
Slide 20: Cautionary Statements
Cautionary Statements The statements in this presentation with respect to the plans, strategies and forecasts of NEC Electronics and its consolidated subsidiaries (collectively “we”) are forward-looking statements involving risks and uncertainties. We caution you in advance that actual results could
Slide 21: Appendix: Semiconductor Sales by Application
Appendix： Semiconductor Sales by Application (B Yen) 159.2 159.2 16.4 16.3 30.0 30.6 122.7 15.4 98.0 32.1 31.9 17.0 Communications 14.6 80.7 13.5 Computing & 31.9 12.1 Peripherals 29.8 28.8 9.7 Consumer 22.8 Electronics 20.3 23.4 21.0 23.1 15.7 Auto & Industrial 15.8 12.7 13.3 Multi-Market ICs 10.5