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TOKYO–(BUSINESS WIRE)–Renesas Electronics Corporation (TSE:6723) today announced consolidated financial results in accordance with IFRS for the nine months ended September 30, 2019.

Summary of Consolidated Financial Results

 

Three months ended

September 30, 2019

Nine months ended

September 30, 2019

 

Billion Yen

% of Net Sales

Billion Yen

% of Net Sales

Revenue

183.4

100.0

526.2

100.0

Operating profit

7.9

4.3

(4.2)

(0.8)

Net profit

3.8

2.1

(7.4)

(1.4)

Capital expenditures

2.9

 

7.4

 

Depreciation and others

39.3

 

109.3

 

R&D expenses

32.7

 

93.9

 

 

Yen

 

Yen

 

Exchange rate (USD)

108

 

110

 

Exchange rate (Euro)

121

 

124

 

 

As of September 30, 2019

 

Billion Yen

Total assets

1,666.0

Total equity

596.6

Equity attributable to owners of the parent

593.8

Equity ratio attributable to owners of the parent (%)

35.6

Interest-bearing debt

828.8

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 September 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 a partially capitalized R&D expenses recorded as intangible assets.

Note 5:

The allocation of the acquisition costs for the business combinations with Integrated Device Technology, Inc. (hereinafter “IDT”), which the Group acquired on March 30, 2019, has been revised at the end of the nine months ended September 30, 2019. The revised allocation of the acquisition costs are reflected in the Quarterly Consolidated Financial Statements of the nine months ended September 30, 2019.

RENESAS ELECTRONICS CORPORATION

Consolidated Financial Results for the Third Quarter Ended September 30, 2019

English translation from the original Japanese-language document

November 7, 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, Director

Corporate Communications Dept.

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

Filing date of Shihanki Hokokusho (scheduled)

:November 7, 2019

(Amounts are rounded to the nearest million yen)

1. Consolidated financial results for the nine months ended September 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

%

Nine months

ended

September

30, 2019

526,241

(7.5)

(4,245)

(6,679)

(7,409)

(7,411)

(44,766)

 

Nine months

ended

September

30, 2018

568,767

69,262

69,381

61,976

61,961

55,169

 

Basic

earnings

per share

(loss)

Diluted

earnings

per share

(loss)

 

Yen

Yen

Nine months ended

 

 

September 30, 2019

(4.39)

(4.39)

 

 

 

Nine months ended

 

 

September 30, 2018

37.16

37.07

1.2 Consolidated financial position

 

Total assets

Total equity

Equity attributable

to owners of the

parent

Ratio of equity

attributable to

owners of the

parent

 

Million yen

Million yen

Million yen

%

 

 

 

 

 

September 30, 2019

1,666,000

596,565

593,779

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)

 

 

 

0.00

0.00

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

3. Forecast of consolidated results for the full year ending December 31, 2019

 

Non-GAAP

Revenue

Non-GAAP

Gross Margin

Non-GAAP

Operating Margin

Full year

ending

December 31,

2019

Million yen

708,741

to 716,741

%

(6.3)

to (5.3)

%

43.7

%pts

(0.4)

%

12.3

%pts

(1.5)

Note 1:

 

Change in forecast of consolidated results since the most recently announced forecast: Yes

Note 2:

 

The Group reports its consolidated forecast in a range format. For details, please refer to Appendix 1.3. “Consolidated Forecasts” page 6.

Note 3:

 

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 nine months ended September 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 September 30, 2019: 1,706,408,990 shares

    As of December 31, 2018: 1,668,385,390 shares
  2. Number of treasury stock

    As of September 30, 2019: 2,581 shares

    As of December 31, 2018: 2,581 shares
  3. Average number of shares issued and outstanding

    Nine months ended September 30, 2019: 1,689,257,809 shares

    Nine months ended September 30, 2018: 1,667,523,753 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 (hereinafter “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 (hereinafter “J-GAAP”) have been reviewed by the Group’s previous auditor.

The Group will hold a quarterly earnings conference for institutional investors and analysts on November 7, 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.

The allocation of the acquisition costs for the business combinations with Integrated Device Technology, Inc. (hereinafter “IDT”), which the Group acquired on March 30, 2019, has been revised at the end of the nine months ended September 30, 2019. The revised allocation of the acquisition costs are reflected in the Quarterly Consolidated Financial Statements of the nine months ended September 30, 2019.

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

Public Relations

Kyoko Okamoto
Renesas Electronics Corporation

+81 3-6773-3001

pr@renesas.com

Investor Relations

Yoichi Kobayashi

Renesas Electronics Corporation

+81 3-6773-3002

ir@renesas.com