Slide 1: FY10/3 Financial Results
FY10/3 Financial Results Renesas Electronics Corporation May 11, 2010 Junshi Yamaguchi, Chairman Yasushi Akao, President © 2010 Renesas Electronics Corporation. All rights reserved. 00000-A
Slide 2: FY10/3 Financial Results; Management Target and Business Approach in FY11/3
I. FY10/3 Financial Results Former NEC Electronics Former Renesas Technology Renesas Electronics (Combined) II. Renesas Electronics Management Target and Business Approach in FY11/3 2 © 2010 Renesas Electronics Corporation. All rights reserved.
Slide 3: I. FY10/3 Financial Results - Former NEC Electronics
I. FY10/3 Financial Results -Former NEC Electronics [Summary] [Q4] [Full-Year] 3 © 2010 Renesas Electronics Corporation. All rights reserved.
Slide 4: FY10/3 Financial Snapshot
FY10/3 Financial Snapshot Q4 sales and profitability improved as expected Despite the significant drop in full-year sales, operating loss recovered due to fixed-cost reduction FY10/3 Difference between (B yen) Q4 Actual QoQ YoY Full-year YoY Original Forecasts (Announced June 29, 2009) Net Sales 131
Slide 5: Trends in Semiannual Results
Trends in Semiannual Results Both semiconductor sales and operating loss bottomed out in FY09/3 2H and continued to improve FY09/3 FY10/3 (B yen) 1H 2H 1H 2H Net Sales 336.2 3,362 249.7 2,497 2,144 214.4 221.3 2,213 Semiconductor Sales 321.0 3,210 239.2 2,392 204.9 2,049 212.7 2,127 Operating 2.7 27
Slide 6: I. FY10/3 Financial Results - Former NEC Electronics
I. FY10/3 Financial Results -Former NEC Electronics [Summary] [Q4] [Full-Year] 6 © 2010 Renesas Electronics Corporation. All rights reserved.
Slide 7: Q4 Semiconductor Sales by Platform
Q4 Semiconductor Sales by Platform Overall semiconductor sales increased by 11% from Q3. Semiconductor sales in all areas increased The SoC sales in particular increased dramatically with LSIs, especially the EMMA products, for digital AV FY10/3 (B yen) Q4 QoQ (%) Semiconductor Sales 126.1 +11% Sale
Slide 8: FY10/3 Q4 Factors in Operating Income (Loss)
FY10/3 Q4 Factors in Operating Income (Loss) Despite increase in SG&A and R&D expenses, operating loss improved QoQ due to increased sales (B yen) Q3 Q4 Operating Income (Loss) -3.0 Increased GP Approx. +9.5 Higher GP due to increased sales -9.3 Increased SG&A Higher GP due to cost and R&D impro
Slide 9: I. FY10/3 Financial Results - Former NEC Electronics
I. FY10/3 Financial Results -Former NEC Electronics [Summary] [Q4] [Full-Year] 9 © 2010 Renesas Electronics Corporation. All rights reserved.
Slide 10: FY10/3 Semiconductor Sales by Platform
FY10/3 Semiconductor Sales by Platform MCU sales improved dramatically due to rapid rise in demand for automotive MCU Sales of SoC and Discrete & IC decreased significantly affected by market conditions FY10/3 (B yen) Full-year YoY (%) Semiconductor Sales 451.9 -14% Sales Overview by Platform SoC So
Slide 11: FY10/3 Factors in Operating Income (Loss)
FY10/3 Factors in Operating Income (Loss) Despite significant drop in sales, operating loss improved due to fixed-cost reduction (B yen) FY09/3 FY10/3 Operating Income (Loss) Decrease in full-year GP Decreased SG&A -49.2 Approx. +15.1 Approx. -16.7 Decreased R&D -66.4 Approx. +18.7 Lower GP due to
Slide 12: Balance Sheet
Balance Sheet As of As of As of （B yen) Mar. 31, 2009 Dec. 31, 2009 Mar. 31, 2010 Total Assets 488.2 469.9 459.9 Cash and Cash 101.3 95.6 91.2 Equivalents Inventories 63.2 57.1 57.0 Liabilities 293.5 331.9 323.6 Interest-bearing Debt 111.3 141.8 140.9 Shareholders’ Equity 202.4 148.3 145.9 Net Asset
Slide 13: Cash Flows
Cash Flows Achieved positive free cash flows in FY10/3 2H FY09/3 FY10/3 (B yen) 2H Full-year 2H Full-year Cash Flows from -26.5 -8.2 20.1 6.3 Operating Activities Cash Flows from -25.7 -49.1 -17.5 -42.2 Investing Activities Free Cash Flows -52.3 -57.2 2.6 -36.0 13 © 2010 Renesas Electronics Corporat
Slide 14: I. FY10/3 Financial Results - Former Renesas Technology
I. FY10/3 Financial Results -Former Renesas Technology 14 © 2010 Renesas Electronics Corporation. All rights reserved.
Slide 15: FY10/3 Financial Snapshot
FY10/3 Financial Snapshot Significant decrease in sales YoY due to sharp drop in demand from the latter half of FY09/3 Profitability improved due to recovery in fab utilization rates from the latter half of FY10/3 and effective fixed-cost reduction measures (B yen) FY09/3 FY10/3 YoY Net Sales 702.7
Slide 16: Trends in Semiannual Results
Trends in Semiannual Results Sales bottomed out in the latter half of FY09/3 and sustained continuous recovery in sales Operating loss also back on recovery track from various effective structural reform measures and rise in fab utilization rates due to recovery in demand FY09/3 FY10/3 (B yen) 1H 2H
Slide 17: Balance Sheet
Balance Sheet As of As of (B yen) Mar. 31, 2009 Mar. 31, 2010 Total Assets 682.9 610.9 Cash and Cash Equivalents 106.6 110.9 Inventories 105.3 80.1 Liabilities 506.0 444.1 Interest-bearing Debt 283.8 231.3 Shareholders’ Equity 180.1 170.4 Net Assets 176.9 166.8 D/E Ratio (Gross) 1.60 1.40 Equity Rat
Slide 18: Cash Flows
Cash Flows Achieved positive free cash flows in FY10/3 2H FY09/3 FY10/3 (B yen) 2H Full-year 2H Full-year Cash Flows from -17.8 -6.3 27.1 18.3 Operating Activities Cash Flows from -42.7 -89.2 -19.2 -34.7 Investing Activities Free Cash Flows -60.6 -95.5 7.9 -16.4 18 © 2010 Renesas Electronics Corpora
Slide 19: I. FY10/3 Financial Results - Renesas Electronics (Combined)
I. FY10/3 Financial Results -Renesas Electronics (Combined) 19 © 2010 Renesas Electronics Corporation. All rights reserved.
Slide 20: FY10/3 Financial Snapshot
FY10/3 Financial Snapshot Combined total of former NEC Electronics and former Renesas Technology (B yen) FY09/3 FY10/3 YoY Net Sales 1,216.2* 1,062.4* -153.8 Semiconductor 1,074.6* 940.9* -133.7 Sales Operating Income -163.0 -113.3 +49.7 (Loss) Ordinary -179.0 -125.3 +53.7 Income (Loss) Net Income (
Slide 21: II. Renesas Electronics Management Target and Business Approach in FY11/3
II. Renesas Electronics Management Target and Business Approach in FY11/3 21 © 2010 Renesas Electronics Corporation. All rights reserved.
Slide 22: Management Targets
Management Targets Aim to attain operating profit in the first fiscal year after the merger Aim to attain net profit in the second fiscal year by executing structural reform plans at an early stage of the integration process In the medium-term, aim to achieve two- digit operating profit ratio
Slide 23: Business Environment - Semiconductor Market Outlook
Business Environment -Semiconductor Market Outlook Expect accelerated growth in FY11/3 with solid sales of electronic devices and continuously tight component supply Expect continuous growth into FY12/3 6.4% 11.2% 8.2% YoY % 2.9% -6.0% Semiconductor Market Size (US$B, excluding MPUs, DRAM, Flash mem
Slide 24: Semiconductor Sales Exceeding Market Growth
Semiconductor Sales Exceeding Market Growth Expand business opportunities (Explore synergies between the core competent world-leading MCU business and Analog & Power devices） Expand sales in the global market Target Semiconductor sales growth exceeding the market growth YoY % 1,170.0 Semiconductor 1
Slide 25: FY11/3 Focus
FY11/3 Focus -Strengthening of operating structure from short-term to mid-to-long-term 1. Expand business opportunities →Strengthen product competitiveness 2. Reinforce global business →Increase global semiconductor sales ratio to over 60 percent 3. Quick-impact cost reductions →Improve cost competi
Slide 26: Outline of 100-day Project
Outline of 100-day Project Explore merger synergies to strengthen management and business base capable of achieving sustaining profit ■Optimize business portfolio •Strengthen Analog & Power devices by utilizing synergies Increase in Sales with the world-leading, core-competent MCU business •Redefine
Slide 27: FY11/3 Financial Forecasts
FY11/3 Financial Forecasts Renesas Electronics Corporation is currently implementing a “100-day project” to shape its new policies and plans within the first hundred days after the merger. In the meantime, the mark- to-market estimates of Renesas Technology’s (the acquiree company) fair value of a
Slide 28: Renesas Electronics Corporation
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 results could differ materially