Renesas Electronics Reports Financial Results for the Second Quarter Ended June 30, 2019

TOKYO--()--Renesas Electronics Corporation (TSE:6723) today announced consolidated financial results in accordance with IFRS for the six months ended June 30, 2019.

Summary of Consolidated Financial Results

 

Three months ended
June 30, 2019

Six months ended
June 30, 2019

 

Billion Yen

% of Net Sales

Billion Yen

% of Net Sales

Revenue

192.6

100.0

342.9

100.0

Revenue from semiconductors

189.0

 

335.7

 

Revenue from others

3.7

 

7.2

 

Operating profit

(2.5)

(1.3)

(3.8)

(1.1)

Net profit

(1.2)

(0.6)

(3.0)

(0.9)

Capital expenditures

2.7

 

4.6

 

Depreciation and others

31.0

 

60.3

 

R&D expenses

32.9

 

61.2

 

 

Yen

 

Yen

 

Exchange rate (USD)

111

 

111

 

Exchange rate (Euro)

125

 

125

 

 

As of June 30, 2019

 

Billion Yen

Total assets

1,673.7

Total equity

599.0

Equity attributable to owners of the parent

596.2

Equity ratio attributable to owners of the parent (%)

35.6

Interest-bearing debt

852.7

Note 1:

All figures are rounded to the nearest 100 million yen.

Note 2:

Capital expenditures refer to the amount of capital for property, plant and equipment (manufacturing equipment) and intangible assets based on the amount of investment decisions made during the quarter ended June 30, 2019.

Note 3:

Depreciation and others includes depreciation and amortization of intangible assets and long- term prepaid expenses in consolidated statements of cash flows.

Note 4:

R&D expenses includes partially capitalized R&D expenses recorded as intangible assets.

RENESAS ELECTRONICS CORPORATION

Consolidated Financial Results for the Second Quarter Ended June 30, 2019

English translation from the original Japanese-language document

August 6, 2019

Company name

:Renesas Electronics Corporation

Stock exchanges on which the shares are listed

:Tokyo Stock Exchange, First Section

Code number

:6723

URL

:https://www.renesas.com

Representative

:Hidetoshi Shibata, Representative Director,

President and CEO

Contact person

:Yoichi Kobayashi, Senior Director

Corporate Communications Dept.

Tel. +81 (0)3-6773-3002

Filing date of Shihanki Hokokusho (scheduled)

:August 6, 2019

 
(Amounts are rounded to the nearest million yen)

1. Consolidated financial results for the six months ended June 30, 2019

1.1 Consolidated financial results

(% of change from corresponding period of the previous year)

 

Revenue

Operating profit

(loss)

Profit before tax
from continuing
operations
(loss)

Net Profit

(loss)

Net profit
attributable to
owners of the
parent
(loss)

Total
comprehensive
income

 

Million

yen

%

Million

yen

%

 

Million

yen

%

 

Million

yen

%

 

Million

yen

%

 

Million

yen

%

Six months ended June 30, 2019

342,884

(11.8)

(3,772)

---

(5,037)

---

(3,033)

---

(3,011)

---

(38,628)

---

Six months ended June 30, 2018

388,909

---

56,134

---

54,733

---

50,172

---

50,185

---

35,012

---

Basic
earnings
per share
(loss)

Diluted
earnings
per share
(loss)

 

Yen

Yen

Six months ended June 30, 2019

(1.79)

(1.79)

Six months ended June 30, 2018

30.10

30.04

1.2 Consolidated financial position

 

Total assets

Total equity

Equity attributable
to owners

Ratio of equity
attributable to
owners

 

Million yen

Million yen

Million yen

%

June 30, 2019

1,673,743

599,013

596,224

35.6

December 31, 2018

1,055,235

600,968

598,100

56.7

2. Cash dividends

 

Cash dividends per share

 

At the end
of first
quarter

At the end
of second
quarter

At the end
of third
quarter

At the
end of
year

Total

 

Yen

Yen

Yen

Yen

Yen

Year ended December 31, 2018

---

0.00

---

0.00

0.00

Year ending December 31, 2019

---

0.00

 

 

 

Year ending December 31, 2019 (forecast)

 

 

---

---

---

Note: Change in forecast of cash dividends since the most recently announced forecast: No

3. Forecast of consolidated results for the nine months ending September 30, 2019

Non-GAAP

Revenue

Non-GAAP
Revenue from
Semiconductors

Non-GAAP

Gross Margin

Non-GAAP

Operating Margin

 

Million yen

%

Million yen

%

%

%pts

%

%pts

Nine months ending September 30, 2019

526,884

to 534,884

(7.4)

to (6.0)

516,407
to 524,407

(7.2)

to (5.8)

43.3

(2.1)

12.4

(2.5)

Note 1:

The Group reports its consolidated forecast on a quarterly basis (cumulative quarters) as substitute for a yearly forecast in a range format.

Note 2:

Non-GAAP figures are calculated by removing or adjusting non-recurring items and other adjustments from GAAP figures following a certain set of rules. The Group believes non-GAAP measures provide useful information in understanding and evaluating the Group’s constant business results, and therefore forecasts are provided in non-GAAP base.

4. Others

 4.1

  Changes in significant subsidiaries for the six months ended June 30, 2019: Yes

 

 

(Changes in specified subsidiaries resulting in changes in scope of consolidation)

 

 

 

4.2

 

Changes in Accounting Policies, Changes in Accounting Estimates and Corrections of Prior Period Errors

 

 

1. Changes in accounting policies with revision of accounting standard: Yes

 

 

2. Changes in accounting policies except for 4.2.1: No

 

 

3. Changes in accounting estimates: No

 

 

 

 

 

 

4.3

 

Number of shares issued and outstanding (common stock)

   

1. Number of shares issued and outstanding (including treasury stock)

   

As of June 30, 2019:

1,700,549,690 shares

   

As of December 31, 2018:

1,668,385,390 shares

   

 

 

   

2. Number of treasury stock

   

As of June 30, 2019:

2,581 shares

   

As of December 31, 2018:

2,581 shares

   

 

   

3. Average number of shares issued and outstanding

   

Six months ended June 30, 2019:

1,681,578,376 shares

   

Six months ended June 30, 2018:

1,667,336,009 shares

   

 

(Note) Information regarding the implementation of audit procedures
These financial results are not subject to audit review procedures.

Cautionary Statement

The Group discloses its consolidated financial statements in accordance with International Financial Reporting Standards (“IFRS”) starting from the annual securities report for the fiscal year ended December 31, 2018.

As of the first quarter ended March 31, 2019, there has been a change to the Group’s auditor, and therefore quarterly figures of the year ended in December 31, 2018, provided under IFRS are not reviewed by the previous auditors. However, for each of the quarterly figures of the year ended December 31, 2018 provided under the generally accepted accounting principal in Japan (J-GAAP) have been reviewed by the Group’s previous auditor.

The Group will hold a quarterly earnings conference call for institutional investors and analysts on August 6, 2019. The Group plans to post the materials, which are provided at the meeting, on the Group’s website on that day.

The statements with respect to the financial outlook of Renesas Electronics Corporation (hereafter “the Company”) and its consolidated subsidiaries (hereafter “the Group”) are forward-looking statements involving risks and uncertainties. We caution you in advance that actual results may differ materially from such forward-looking statements due to changes in several important factors.

Forward-Looking Statements

The statements in this press release with respect to the plans, strategies and financial outlook of Renesas Electronics Corporation and its consolidated subsidiaries (collectively “we”) are forward-looking statements involving risks and uncertainties. We caution you in advance that actual results may differ materially from such forward-looking statements due to several important factors including, but not limited to, general economic conditions in our markets, which are primarily Japan, North America, Asia, and Europe; demand for, and competitive pricing pressure on, products and services in the marketplace; ability to continue to win acceptance of products and services in these highly competitive markets; and fluctuations in currency exchange rates, particularly between the yen and the U.S. dollar. Among other factors, downturn of the world economy; deteriorating financial conditions in world markets, or deterioration in domestic and overseas stock markets, may cause actual results to differ from the projected results forecast.

About Renesas Electronics Corporation

Renesas Electronics Corporation (TSE: 6723) delivers trusted embedded design innovation with complete semiconductor solutions that enable billions of connected, intelligent devices to enhance the way people work and live—securely and safely. A global leader in microcontrollers, analog, power, and SoC products and integrated platforms, Renesas provides the expertise, quality, and comprehensive solutions for a broad range of Automotive, Industrial, Home Electronics, Office Automation and Information Communication Technology applications to help shape a limitless future. Learn more at renesas.com.

Contacts

Media Contacts
Kyoko Okamoto
Renesas Electronics Corporation
+81 3-6773-3001
pr@renesas.com

Investor Contacts
Hirokazu Kato
Renesas Electronics Corporation
+81 3-6773-3002
ir@renesas.com

Release Summary

Renesas Electronics announced consolidated financial results for the six months ended June 30, 2019.

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Contacts

Media Contacts
Kyoko Okamoto
Renesas Electronics Corporation
+81 3-6773-3001
pr@renesas.com

Investor Contacts
Hirokazu Kato
Renesas Electronics Corporation
+81 3-6773-3002
ir@renesas.com