Growth as One Global Renesas
We have completed the structural reforms that started in October 2013, and are now aiming to be the world’s No. 1 in all of our segments by concentrating management resources in key segments, while at the same time reaping the results of the reform.
In the first half of fiscal year 2017, based on the business integration associated with the completion of Intersil acquisition, we have transitioned our main businesses to the three business units that consist of “Automotive,” “Industrial,” and “Broad-based” and expanded the scope of responsibility for each of them from sales and marketing through to design and development. Also, in order to strengthen our stable supply system, we newly established the Supply Chain Management Unit to realize consistent SCM (Supply Chain Management) covering production to procurement. Through these new business structures, we are aiming to move beyond our conventional Japan-centric business management with the goal of becoming “One Global Renesas”, a global organization that is not bound by region, and are conducting business operation to secure future growth.
In addition to launching these new structures, during the fiscal year 2017, there were two major events that are bound to become springboards for our steady growth trajectory. One is our large company exhibition Renesas DevCon Japan 2017 held in April 2017 and the other is the secondary offering of Renesas Electronics’ shares held by major shareholders in June 2017. At Renesas DevCon Japan 2017, we introduced our leading-edge initiatives in autonomous driving and AI to approximately 2,000 visitors, the largest number of visitors thus far. The visitors mainly consisted of our customers and partners, which placed high expectations for our solutions. In the secondary offering of Renesas Electronics’ shares, we sold approximately 420 million shares to Japanese and international investors, equivalent to about 25% of approximately 1.67 billion shares issued and outstanding. As a result, our substantial liquidity ratio has increased from 3% to just under 30%, leading to improved liquidity. We believe that we have taken a new step forward as a global semiconductor company.
We will devote ourselves wholeheartedly to achieving the No.1 position in key segments within the fiercely competitive global environment, aiming to achieve semiconductor sales growth twice that of the growth rate of our targeting markets, a 50% gross margin, and a 20% or better operating margin. We will continue to make further efforts based on these initiatives taken in the first half of the current fiscal year, and I look forward to your continued support and understanding as we move forward with these efforts.
Bunsei Kure, Representative Director, President and CEO