Slide 1: FY17/12 Q1 Financial Results
FY17/12 Q1 FINANCIAL RESULTS RENESAS ELECTRONICS CORPORATION MAY 12, 2017 © 2017 Renesas Electronics Corporation. All rights reserved.
Slide 2: Non-GAAP measures and change of fiscal term notes
FY17/12 Q1 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 f
Slide 3: Change of Fiscal Term and Presentation of Revised Non-GAAP and Pro-forma Sales
CHANGE OF FISCAL TERM AND PRESENTATION OF REVISED NON-GAAP AND PRO-FORMA SALES FOLLOWING THE SHIFT TO GROWTH Change of fiscal term Implemented a change in fiscal term starting from FY16/12 in which the fiscal year-end changed from March 31 to December 31 In this presentation, FY17/12 Q1 (Jan-Mar
Slide 4: FY17/12 Q1 Financial Snapshot (Non-GAAP Basis)
Non-GAAP FY17/12 Q1 FINANCIAL SNAPSHOT (NON-GAAP BASIS*1) YoY and QoQ results as well as the change from Feb 8 FCT of the Net Sales and Semi Sales are rounded off to one decimal place CY16 CY17 (FY17/12) (B yen) Jan-Mar Jan-Mar Change from Jan-Mar Oct-Dec (Q1) (Q1) YoY QoQ Feb 8 FCT Feb 8 FCT Actual
Slide 5: FY17/12 Q1 Highlights (Non-GAAP Basis)
Non-GAAP FY17/12 Q1 HIGHLIGHTS (NON-GAAP BASIS*1) Increased by 5.7% YoY, despite yen appreciation, as a result of Semi. Sales Renesas standalone*3 sales growth and the addition of Intersil ¥172.5 B sales following the close of the acquisition YoY: +5.7% Achieved 2.3% growth YoY on a pro-forma basi
Slide 6: FY17/12 Q1 Semiconductor Sales (Pro-forma Basis)
Pro-forma FY17/12 Q1 SEMICONDUCTOR SALES (PRO-FORMA BASIS*1) (B yen) Factors affecting increase/decrease 200 Automotive General-purpose Others Intersil QoQ: +3.2% 178.1 182.2 YoY: +2.3% Intersil： 180 176.7 16.5 QoQ: +7.8% Increased QoQ and YoY due to strong 14.9 162.0 162.5 15.3 YoY: +10.3% 160 1.1
Slide 7: Gross Profit/Margin (Non-GAAP Basis)
Non-GAAP GROSS PROFIT/MARGIN (NON-GAAP BASIS*1) <Gross Margin Quarterly Trends (%)> <Gross Profit> QoQ: +4.9 B yen (B yen) Accounting Impact 50 (Inventory revaluation, etc) 80.8 75.9 +3.2 -3.1 +4.8 Currency Changes in volume & costs 45.8 45.6 45.5 impact (excl. currency impact) 45 QoQ: -0.1pts 44.3
Slide 8: OPEX Trajectory and Operating Margin (Non-GAAP Basis)
Non-GAAP OPEX TRAJECTORY AND OPERATING MARGIN (NON-GAAP BASIS*1) 20 <Operating Margin Quarterly Trends (%)> <R&D Ratio (%)> 16.2 16.1 16.7 20 QoQ: +2.7pts 15 16.9 14.9 15.2 17.8 YoY: +5.7pts 14.2 QoQ: -1.7pts 18 10 13.1 16.4 11.6 10.8 11.5 11.0 YoY: -1.0pts 15.7 16 15.0 5 13.8 13.7 13.7 14 0 10.6 10
Slide 9: Q2 Financial Forecasts
FY17/12 Q2 FINANCIAL FORECASTS © 2017 Renesas Electronics Corporation. All rights reserved. Page 9 BIG IDEAS FOR EVERY SPACE
Slide 10: FY17/12 Q2 Financial Forecasts (Non-GAAP Basis)
Non-GAAP FY17/12 Q2 FINANCIAL FORECASTS (NON-GAAP BASIS*1) YoY and QoQ results as well as the 1H forecast of the Net Sales and Semiconductor Sales are rounded off to one decimal place CY16 CY17 (FY17/12) (B yen) 1H 1H Q1 Q2 Forecast Apr-Jun YoY QoQ Forecast YoY (Jan-Jun) (Jan-Mar) (Apr-Jun) (Jan-Jun
Slide 11: Highlights of FY17/12 Q2 Forecasts (Non-GAAP Basis)
Non-GAAP HIGHLIGHTS OF FY17/12 Q2 FORECASTS (NON-GAAP BASIS*1) Semi. Sales Expect continued growth ¥188.7 B Expect further growth in both Renesas standalone*3 YoY: +27.9% and Intersil sales (Pro-forma basis*2 YoY: +16.5%) Continuing strong demand in automotive and industrial Maintain gross margi
Slide 12: Appendix
APPENDIX The figures in this section are mainly based on GAAP (Generally Accepted Accounting Principles) stated on a financial reporting basis and are provided as additional information. © 2017 Renesas Electronics Corporation. All rights reserved. Page 12 BIG IDEAS FOR EVERY SPACE
Slide 13: Former GAAP/Non-GAAP Reconciliation (Until FY16/12)
FORMER GAAP/NON-GAAP RECONCILIATION (UNTIL FY16/12) FY15/3 FY16/3 FY16/12 (B Yen) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Semiconductor Sales (GAAP) ① 201.2 199.6 177.4 175.1 174.5 177.0 160.9 163.2 147.5 148.3 161.4 Renesas SP Drivers*1 ② -17.6 -21.0 - - - - - - - - - Semiconductor Sales (Non-GAAP*2) ①+②
Slide 14: Revised GAAP/Non-GAAP Reconciliation (From FY17/12)
REVISED GAAP/NON-GAAP RECONCILIATION (FROM FY17/12) FY16/12 FY17/12 (B Yen) Q1 Q2 Q3 Q1 Q2 (Forecast) Net Sales 152.0 152.6 166.4 177.6 192.1 Gross Profit (GAAP) 65.1 62.9 74.7 80.8 84.2 Inventory Buildup*1 +2.3 +2.0 +1.2 - - Stock-Based Compensation (COGS) - - - +0 +0 Gross Profit (Non-GAAP*2) 67.4
Slide 15: FY17/12 Q1 Financial Snapshot
FY17/12 Q1 FINANCIAL SNAPSHOT YoY and QoQ results as well as the Change from Feb 8 FCT of the Net Sales and Semi Sales are rounded off to one decimal place CY16 CY17 (FY17/12) (B yen) Jan-Mar Jan-Mar Change from Jan-Mar Oct-Dec (Q1) (Q1) YoY QoQ Feb 8 FCT Forecast Actual Net Sales 167.8 166.4 171.0
Slide 16: FY17/12 Q1 Net Income
FY17/12 Q1 NET INCOME ATTRIBUTABLE TO SHAREHOLDERS OF PARENT COMPANY Non-operating income (loss) Special (B yen) income (loss) -1.0 -1.7 -2.8 Non-operating income +1.1 Income taxes, non-controlling Non-operating expense -2.0 interests 25.5 ・Interest expenses -0.4 ・Exchange losses -1.2 20.0 Special I
Slide 17: Balance Sheets
BALANCE SHEETS As of Mar. 31, As of Jun. 30, As of Sep. 30, As of Dec. 31, As of Mar. 31, (B Yen) 2016 2016 2016 2016 2017 Total Assets 849.4 823.2 758.2 823.1 966.8 Cash and Cash Equivalents *1 398.4 397.3 326.2 354.3 101.0 Inventories 108.4 97.0 92.1 97.3 106.4 Liabilities 467.6 447.7 376.2 400.7
Slide 18: EBITDA and Cash Flows
EBITDA*1 AND CASH FLOWS Acquisition-related expenses: -16.0 <EBITDA (B yen)> <Cash Flows (B yen)> 50 Cash flows from operating activities 50 45.1 Cash flows from investing activities 47.7 46.3 45.6 Free cash flows*2 40 35.8 45 32.6 32.6 41.0 31.5 30 27.5 40 37.4 33.1 35 33.1 20 26.2 17.0 23.0 31.2 1
Slide 19: FY17/12 Q2 Financial Forecasts
FY17/12 Q2 FINANCIAL FORECASTS CY16 CY17 (FY17/12) (B yen) 1H 1H Q1 Q2 Forecast Apr-Jun YoY QoQ Forecast YoY (Jan-Jun) (Jan-Mar) (Apr-Jun) (Jan-Jun) Net Sales 152.0 319.8 177.6 192.1 +26.4% +8.1% 369.7 +15.6% Semiconductor Sales 147.5 310.7 172.5 188.7 +27.9% +9.4% 361.2 +16.2% Gross Margin 42.8% 41
Slide 20: FY17/12 1H Operating Income Forecast
FY17/12 1H OPERATING INCOME FORECAST YoY + 4.2 B yen (B yen) -27.3 Currency +42.9 Increase in R&D,SG&A impact Accounting Impact (including amortization of (Inventory revaluation, etc) goodwill) -4.6 -6.8 Changes in volume and costs 38.5 34.3 (excluding currency impact) 0.0 0.0 0.0 Jan-Jun FY17/12 1H
Slide 21: FY17/12 1H Forecast of Net Income
FY17/12 1H FORECAST OF NET INCOME ATTRIBUTABLE TO SHAREHOLDERS OF PARENT COMPANY (B yen) -5.8 +8.3 Income taxes, -1.0 non-controlling interests Non-operating Special income (loss) income (loss) 40.0 38.5 Operating Income Net Income attributable to shareholders of parent company © 2017 Renesas Electr
Slide 22: Forward-Looking Statements
BIG IDEAS FOR EVERY SPACE (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-l