Renesas Electronics Reports Financial Results for the First Quarter Ended March 31, 2020

TOKYO--(BUSINESS WIRE)--Renesas Electronics Corporation (TSE:6723) today announced consolidated financial results in accordance with IFRS for the three months ended March 31, 2020.

Summary of Consolidated Financial Results

	Three months ended March 31, 2020
	Billion Yen	% of Net Sales
Revenue	178.7	100.0
Operating profit	13.3	7.4
Profit attributable to the owners of the parent	11.3	6.3
Capital expenditures (Note 3)	6.3
Depreciation and others	38.8
R&D expenses (Note 4)	33.7
	Yen
Exchange rate (USD)	110
Exchange rate (EUR)	121
	As of March 31, 2020
	Billion Yen
Total assets	1,657.8
Total equity	627.3
Equity attributable to owners of the parent	624.4
Equity ratio attributable to owners of the parent (%)	37.7
Interest-bearing debt	764.2

Note 1:	All figures are rounded to the nearest 100 million yen.
Note 2:	Following the acquisition of Integrated Device Technology, Inc. (hereinafter “IDT”) and the absorption type merger of IDT with Renesas Electronics America Inc., since January 1, 2020, the Group has begun the integration of business processes and IT systems, etc. as part of the “One Renesas” promotion. With these processes as a momentum, expense classifications have been revised in order to appropriately display the Group’s financial status and business performance.
Note 3:	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 March 31, 2020. From the quarter ended March 31, 2020, capital expenditures include IDT‘s investments as well as investments including fixed costs of masks and tools.
Note 4:	R&D expenses includes a partially capitalized R&D expenses recorded as intangible assets.

RENESAS ELECTRONICS CORPORATION
Consolidated Financial Results for the First Quarter Ended March 31, 2020
English translation from the original Japanese-language document

April 27, 2020

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. [phone]
Filing date of Shihanki Hokokusho (scheduled)	:May 12, 2020

(Amounts are rounded to the nearest million yen)

1. Consolidated financial results for the three months ended March 31, 2020

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	%
Three months ended March 31, 2020	178,743	19.0	13,313	---	14,178	---	11,358	---	11,289	---	(985)	---
Three months ended March 31, 2019	150,259	(19.0)	(1,370)	---	(1,919)	---	(1,921)	---	(1,909)	---	3,606	---

	Basic earnings per share (loss)	Diluted earnings per share (loss)
	Yen	Yen
Three months ended March 31, 2020	6.60	6.49
Three months ended March 31, 2019	(1.14)	(1.14)

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	%
March 31, 2020	1,657,785	627,327	624,443	37.7
March 31, 2019	1,668,148	624,404	621,455	37.3

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, 2019	---	0.00	---	0.00	0.00
Year ending December 31, 2020	---
Year ending December 31, 2020 (forecast)		0.00	---	---	---

Note: Change in forecast of cash dividends since the most recently announced forecast: Yes

For details, please refer to Appendix 1.4. “Forecasts of Cash Dividends” on page 7.

3. Forecast of consolidated results for the six months ending June 30, 2020

Due to the uncertainty of impacts from the worldwide COVID-19 pandemic to Renesas’ business, it is difficult to make a reasonable calculation of the financial forecasts at this current time. For this reason, consolidated financial forecasts for the six months ending June 30, 2020 remain undetermined.

4. Others

4.1 Changes in significant subsidiaries for the three months ended March 31, 2020: Yes

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

(Note) For details, please refer to page 15.

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: No

2. Changes in accounting policies except for 4.2.1: Yes

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 March 31, 2020: 1,711,187,090 shares

As of December 31, 2019: 1,710,276,790 shares

2. Number of treasury stock

As of March 31, 2020: 2,581 shares

As of December 31, 2019: 2,581 shares

3. Average number of shares issued and outstanding

Three months ended March 31, 2020: 1,710,788,376 shares

Three months ended March 31, 2019: 1,668,427,976 shares

(Note) Information regarding the implementation of audit procedures

These financial results are not subject to audit review procedures.

Cautionary Statement The Group will hold a quarterly earnings conference for institutional investors and analysts on April 27, 2020. The Group plans to post the materials which are provided at the meeting, on the Group’s website on that day.

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.