Renesas Electronics Reports Financial Results for the Third Quarter Ended September 30, 2020

·7-min read

Renesas Electronics Corporation (TSE:6723) today announced consolidated financial results in accordance with IFRS for the nine months ended September 30, 2020.

Summary of Consolidated Financial Results (Note 1)

Three months ended
September 30, 2020

Nine months ended
September 30, 2020

Billion Yen

% of Revenue

Billion Yen

% of Revenue

Revenue

178.7

100.0

524.1

100.0

Operating profit

17.2

9.7

47.8

9.1

Profit attributable to owners of parent

15.3

8.5

38.5

7.3

Capital expenditures (Note 2)

4.6

14.8

Depreciation and others (Note 3)

34.5

107.7

R&D expenses (Note 4)

33.4

98.5

Yen

Yen

Exchange rate (USD)

107

108

Exchange rate (EUR)

123

121

As of September 30, 2020

Billion Yen

Total assets

1,620.4

Total equity

632.2

Equity attributable to owners of parent

629.3

Equity ratio attributable to owners of parent (%)

38.8

Interest-bearing liabilities

717.1

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, 2020. From the quarter ended March 31, 2020, capital expenditures include Integrated Device Technology, Inc. (hereinafter "IDT")’s investments as well as investments including fixed costs of masks and tools.

Note 3:

Depreciation and others includes depreciation of property, plant and equipment, amortization of intangible assets and amortization of 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.

RENESAS ELECTRONICS CORPORATION

Consolidated Financial Results for the Third Quarter Ended September 30, 2020

English translation from the original Japanese-language document

October 29, 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. +81 (0)3-6773-3002

Filing date of Shihanki Hokokusho (scheduled)

:November 5, 2020

(Amounts are rounded to the nearest million yen)

1. Consolidated financial results for the nine months ended September 30, 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)

Profit

(loss)

Profit attributable to owners of parent

(loss)

Total comprehensive income

(loss)

Million

yen

%

Million

yen

%

Million

yen

%

Million

yen

%

Million

yen

%

Million

yen

%

Nine months ended September 30, 2020

524,093

(0.4)

47,818

---

46,592

---

38,488

---

38,471

---

(3,930)

---

Nine months ended September 30, 2019

526,241

(7.5)

(4,174)

---

(6,608)

---

(6,965)

---

(6,967)

---

(44,305)

---

Basic
earnings
per share
(loss)

Diluted
earnings
per share
(loss)

Yen

Yen

Nine months ended

September 30, 2020

22.42

21.98

Nine months ended

September 30, 2019

(4.12)

(4.12)

1.2 Consolidated financial position

Total assets

Total equity

Equity attributable to owners of parent

Equity ratio attributable to owners of parent

Million yen

Million yen

Million yen

%

September 30, 2020

1,620,426

632,171

629,311

38.8

December 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

---

0.00

---

Year ending

December 31, 2020

(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, 2020

Non-GAAP

Revenue

Non-GAAP

Gross Margin

Non-GAAP

Operating Margin

Million yen

%

%

%pts

%

%pts

707,093

(1.6)

47.3

4.4

19.0

6.1

Full year ending December 31, 2020

to 715,093

to (0.4)

Note 1:

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

range format. For details, please refer to Appendix 1.3. "Consolidated Forecasts" page 6.

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 as a non-GAAP basis.

4. Others

4.1 Changes in significant subsidiaries for the nine months ended September 30, 2020: Yes

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

(Note) For details, please refer to page 16.

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 September 30, 2020:

1,723,201,290 shares

As of December 31, 2019:

1,710,276,790 shares

2. Number of treasury stock

As of September 30, 2020:

2,581 shares

As of December 31, 2019:

2,581 shares

3. Average number of shares issued and outstanding

Nine months ended September 30, 2020:

1,716,107,309 shares

Nine months ended September 30, 2019:

1,689,257,809 shares

(Note) Information regarding the implementation of audit procedures.

These financial results are not subject to quarterly review procedures by the independent auditor.

Cautionary Statement

The Group will hold a quarterly earnings conference for institutional investors and analysts on October 29, 2020. 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 (hereinafter "the Company") and its consolidated subsidiaries (hereinafter "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.

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Contacts

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

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