Renesas Reinforces Business Structure to Achieve Further Growth

In the current business climate, the company’s business results for FY2008 (ending March 31, 2009) are expected to reflect a substantial reduction in net sales and incomes. Current forecasts are ¥680 billion in net sales (down 28%, or ¥270.5 billion, from the previous fiscal year), a loss of ¥110.0 billion in operating income (down ¥153.6 billion from the previous fiscal year), a loss of ¥133.0 billion in pre-tax income (down ¥161.2 billion from the previous fiscal year), and a loss of ¥206.0 billion in net income (down ¥215.5 billion from the previous fiscal year).

As the unfavorable business climate is expected to continue after FY2009, Renesas Technology is implementing structural improvements to enable profitability under such severe situations. At the same time, the business structure will be improved and strengthened so that it can withstand weakening market conditions and major changes in the economy. Broken down by individual business segments, the MCU business will be positioned as the company’s core competence, and the system solutions business will focus on fields which compliment the strategy of the MCU business. In the standard products business, which is centered around products such as power MOSFETs and analog devices, the focus will be on the three applications, including power supplies for PCs/servers, imaging display equipment, and automotive.