Slide 1: FY16/3 Q3 Financial Results
FY16/3 Q3 Financial Results Renesas Electronics Corporation February 9, 2016 © 2016 Renesas Electronics Corporation. All rights reserved.
Slide 2: Non-GAAP financial measures disclosure
FY16/3 Q3 Financial Results Since FY16/3, Renesas Electronics Group (hereinafter “the Group”) started to disclose 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 fi
Slide 3: FY16/3 Q3 Summary of Financial Results
FY16/3 Q3 Summary of Financial Results Major factors affecting increase or decrease in Q3 semiconductor sales Semiconductor Sales Semiconductor sales decreased by 9% both YoY and QoQ to 160.9 billion yen, roughly in line with the Group’s expectation Automotive Business Despite a YoY and QoQ decr
Slide 4: Q3 Financial Snapshot
FY16/3 Q3 Financial Snapshot Net sales were in line with the Group’s forecast Gross margin improved YoY, and also from the previous forecast supported by temporary improvement factors YoY and QoQ results as well as the Difference from previous forecasts of the Net Sales and Semiconductor Sales are r
Slide 5: Semiconductor Sales by Business (Non-GAAP Basis)
Non-GAAP Semiconductor Sales by Business (Non-GAAP Basis *1) Automotive: Despite a YoY and QoQ decrease of 4%, Automotive Control and Automotive Information sales were better than expected General-Purpose: 14% decline YoY and QoQ, mainly due to structural reforms and decrease in sales of Other Gener
Slide 6: Quarterly Financial Results (Non-GAAP Basis)
Non-GAAP Quarterly Financial Results (Non-GAAP Basis) Despite a QoQ decline in gross and operating margins due to a rebound from temporary factors that contributed to the first-half gross margin, in addition to decreased sales, they both improved in the Q3 from the previous forecasts Semiconductor S
Slide 7: Trends in R&D and SG&A Results (Non-GAAP Basis)
Non-GAAP Trends in R&D and SG&A Results (Non-GAAP Basis) With the enhanced development of focus domains, R&D ratio is on a rising trend R&D (B yen) SG&A (B yen) (Pro-forma (Pro-forma 40.0 amount*1 : 40.0 33.9 amount: 31.7 31.3 32.7 21.5) 29.2 28.9 29.2 29.2 27.8 27.7 25.4) 30.0 27.1 26.5 24.3 24.4 2
Slide 8: Consolidated Forecasts
FY16/3 Consolidated Forecasts © 2016 Renesas Electronics Corporation. All rights reserved. ページ Page 8 8
Slide 9: Q4 and Full-Year Summary of Forecasts
FY16/3 Q4 and Full-Year Summary of Forecasts Major factors affecting increase or decrease in Q4 semiconductor sales Semiconductor Sales Expected to be 160.1 billion yen, and Automotive and General-Purpose businesses are both expected to be flat QoQ Major factors affecting increase or decrease in Q
Slide 10: Q4 and Full-Year Financial Forecasts
FY16/3 Q4 and Full-Year Financial Forecasts FY15/3 FY16/3 (B Yen) Full-year Q4 Full- year Q3 Q4 YoY QoQ (12 months YoY cumulative) Net Sales 182.2 791.1 164.8 164.5 -9.7% -0.2% 690.0 -12.8% Semiconductor Sales 175.1 753.3 160.9 160.1 -8.6% -0.5% 672.5 -10.7% Gross Margin 42.8% 40.3% 43.6% 40.1% -2.8
Slide 11: Business Topics
Business Topics Accelerate focus on: Automotive, Industrial and IoT Adoption of the 40nm MCUs is accelerating Announced AI solutions that improve factory productivity worldwide Following the successful R-Car consortium, the R-IN Leading development of 28nm MCUs consortium now has over 50 par
Slide 12: APPENDIX
APPENDIX © 2016 Renesas Electronics Corporation. All rights reserved. ページ Page 1212
Slide 13: GAAP/Non-GAAP Reconciliation
GAAP/Non-GAAP Reconciliation FY14/03 FY15/03 FY16/03 (B Yen) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Semiconductor Sales (GAAP) ① 189.6 207.7 207.6 191.8 201.2 199.6 177.4 175.1 174.5 177.0 160.9 Renesas SP Drivers*1 ② -14.3 -18.3 -19.0 -14.1 -17.6 -21.0 - - - - - Semiconductor Sales (Non-GAAP) ①+② 175.3 1
Slide 14: Balance Sheets
Balance Sheets Equity ratio improved up to the 40% range As of Mar. 31, As of Jun. 30, As of Sep. 30, As of Dec. 31, （B Yen) 2015 2015 2015 2015 Total Assets 840.1 851.8 866.4 862.8 Cash and Cash Equivalents 343.7 368.7 388.1 405.1 Inventories 111.4 113.1 116.6 114.9 Liabilities 528.2 507.0 506.0 48
Slide 15: Cash Flows
Cash Flows FY15/3 FY16/3 （B Yen） Q1 Q2 Q3 Q4 Q1 Q2 Q3 Cash Flows from 2.0 24.2 Operating Activities 49.5 41.0 31.5 45.1 32.6 Cash Flows from -10.9 -8.0 Investing Activities -14.9 7.2 -5.4 -12.0 -9.7 Free Cash Flows -8.9 34.7 48.2 16.2 26.2 33.1 23.0 © 2016 Renesas Electronics Corporation. All rights
Slide 16: Trends in Core and Non-Core Business Sales Ratio and Gross Margin
Non-GAAP Trends in Core and Non-Core Business Sales Ratio and Gross Margin (Non-GAAP Basis) Continuously improving gross margin through structural reforms and reforming business structure to become resistant to market volatility 120% 55.0% Core Businesses Non-core businesses（Excl. Renesas SP Drivers
Slide 17: FY16/3 Q3 Operating Income
FY16/3 Q3 Operating Income QoQ (B yen) Despite cost containment efforts, Q3 operating profit decreased by 5.7 billion yen QoQ due to a sales decline, a decrease in profit from inventory variations and negative currency impact Decreased -1.4 R&D, Decrease in SG&A Currency impact profit from -9.9 De
Slide 18: FY16/3 Q3 Operating Income Forecast
FY16/3 Q3 Operating Income Forecast In Comparison with Forecasts (Oct 30, 2015) QoQ (B Yen) Increased by 11.0 billion yen from the previous forecast supported by an increase in profit from inventory variations including increased inventory buildups, cost containment effects and positive currency i
Slide 19: Q3 Net Income Attributable to Shareholders of Parent Company
FY16/3 Q3 Net Income Attributable to Shareholders of Parent Company (B Yen) Recorded 18.6 B yen as a result of lower-than-expected special losses Non-operating income (loss) Special -1.2 income (loss) Income taxes, -4.2 non-controlling interests -1.0 Non-operating income ＋0.3 25.0 Non-operating ex
Slide 20: Q4 Operating Income Forecast
FY16/3 Q4 Operating Income Forecast QoQ (B Yen) Expect to decrease by 13.1 billion yen QoQ due to decrease in profit from inventory variations including decrease in impact from inventory buildups, seasonal cost increases at the end of the fiscal term and negative currency impact Increase in profit
Slide 21: Q4 Net Income Attributable to Shareholders Forecast
FY16/3 Q4 Net Income Attributable to Shareholders of Parent Company Forecast (B yen) Expect to be 6.0 billion yen, mainly due to decrease in special income (loss) which is expected to remain flat QoQ Non-operating income (loss) Special -1.3 income (loss) -3.8 Income taxes, non-controlling interest
Slide 22: FY16/3 Full-Year Operating Income Forecast
FY16/3 Full-Year Operating Income Forecast (B Yen) Despite the large decline in profit caused by sales decreases and gross profit from the transfer of Renesas SP Drivers, operating income is expected to decrease slightly to 100.0 billion yen, due to: the decrease in manufacturing-fixed costs from
Slide 23: FY16/3 Full-Year Net Income Forecast
FY16/3 Full-Year Net Income Attributable to Shareholders of Parent Company Forecast (B Yen) Expect to achieve 82.0 billion yen, due to decrease in special income (loss) in FY16/3 as opposed to the previous year that had 11.3 billion yen special income (loss) supported by a special income of 23.1 b
Slide 24: 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