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Renesas Electronics Reports Financial Results for the Third Quarter Ended September 30, 2017

TOKYO--(BUSINESS WIRE)-- Renesas Electronics Corporation (TSE:6723) today announced consolidated financial results for the nine months ended September 30, 2017.

Summary of Consolidated Financial Results

Three months ended Nine months ended
September 30, 2017 September 30, 2017
Billion Yen % of Net Sales Billion Yen % of Net Sales
Net sales 195.5 100.0 570.1 100.0
Sales from semiconductors 192.3 557.9
Sales from others 3.2 12.1
Operating income 24.9 12.7 56.3 9.9
Ordinary income 24.4 12.5 54.5 9.6
Net income attributable to
shareholders of parent company 22.3 11.4 58.3 10.2
Capital expenditures (Note 3) 10.0 65.1
Depreciation and others
(Note 4) 29.3 78.3
R&D expenses 31.4 92.1
Yen Yen
Exchange rate (USD) 111 112
Exchange rate (EUR) 130 125
As of September 30, 2017
Billion Yen
Total assets 1,020.6
Net assets 479.4
Equity Capital 476.2
Equity ratio (%) 46.7
Interest-bearing debt 232.1
Note 1: All figures are rounded to the nearest 100 million yen.
Note 2:

Consolidated financial results for the nine months ended September 30, 2017 have not been reviewed by the auditors. The figures are subject to change based on subsequent events or the auditors’ review.

Note 3:

Capital expenditures refer to the amount of order placed for property, plant and equipment (manufacturing equipment) and intangible assets.

Note 4:

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

Note 5:

The allocation of the acquisition costs for the business combinations with Intersil Corporation, which Renesas Electronics Group acquired on February 24, 2017, has been revised at the end of the nine months ended September 30, 2017. The revised allocation of the acquisition costs are reflected in the Quarterly Consolidated Financial Statements of the nine months ended September 30, 2017.

Consolidated Financial Results for the Third Quarter Ended September 30, 2017

English translation from the original Japanese-language document

November 2, 2017

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

:

Bunsei Kure, Representative Director,

President and CEO

Contact person

:

Yoichi Kobayashi, Senior Manager

Corporate Communications Dept.
Tel. +81 3-6773-3002
Filing date of Shihanki Hokokusho (scheduled)

:

November 7, 2017

(Amounts are rounded to the nearest million yen)

1. Consolidated financial results for the nine months ended September 30, 2017

1.1 Consolidated financial results

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

Net income
Net sales Operating Ordinary attributable to
income income shareholders of
parent company
Million % Million % Million % Million %
yen yen yen yen
Nine months ended September 30, 2017 570,058 --- 56,259 --- 54,500 --- 58,267 ---
Nine months ended December 31, 2016 --- --- --- --- --- --- --- ---
Reference:
Comprehensive income for the nine months ended September 30, 2017: 56,050 million yen (---%)
Comprehensive income for the nine months ended December 31, 2016: --- million yen (---%)
Net income per Net income per
share basic share diluted
Yen Yen
Nine months ended September 30, 2017 34.95 34.94
Nine months ended December 31, 2016 --- ---

Renesas Electronics Group implemented a change of the fiscal term in which the fiscal year-end changed from March 31 to December 31, starting from the fiscal year 2016. Accordingly, the consolidated results (cumulative total) for the nine months ended December 31, 2016 and the percent of change from the corresponding period of the previous year are not indicated, since the financial results for nine months ended December 31, 2016 have not been prepared.

[Reference]
The following adjusted changes [%] are comparisons of consolidated results for the nine months ended September 30,
2017 with consolidated results of the corresponding period of the fiscal year ended December 31, 2016 that has been
adjusted to a 12-month period (January 1, 2016 to December 31, 2016).
Note that the consolidated results of the corresponding period of the fiscal year ended December 31, 2016 have not
been audited. (All numbers are in millions of yen)
Consolidated results for the nine months ended September 30, 2017:

Net sales

Operating income

Ordinary income

Net income attributable

to shareholders of parent company

570,058 56,259 54,500 58,267
+20.7% +15.2% +36.0% +96.3%

1.2 Consolidated financial position

Total assets Net assets Equity ratio
Million yen Million yen %
September 30, 2017 1,020,648 479,362 46.7
December 31, 2016 823,054 422,393 51.0
Reference: Equity as of September 30, 2017: 476,167 million yen
Equity as of December 31, 2016: 420,162 million yen

2. Cash dividends

Cash dividends per share

At the end of

At the end of

At the end of

At the end of

Total

first quarter

second quarter

third quarter

year

Yen Yen Yen Yen Yen
Year ended December 31,

---

0.00

---

0.00

0.00

2016

Year ending December 31,

---

0.00

---

2017

Year ending December 31,

0.00

0.00

2017
(forecast)

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 6.
3. Forecast of consolidated results for the year ending December 31, 2017

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

Net
Net sales Operating Ordinary income Net income income
income (loss) (loss) (loss) (loss) per
share
Million yen % Million yen % Million yen % Million yen % yen
Year ending 771,000 --- 71,000 --- 69,000 --- 71,000 --- 42.59
December 31, 2017

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

Renesas Electronics Group implemented a change of the fiscal term in which the fiscal year-end changed from March 31 to December 31, starting from the fiscal year 2016. Accordingly, the percent of change from the corresponding period of the previous year is not indicated, since the current fiscal year (January 1, 2017 to December 31, 2017) and the previous fiscal year (April 1, 2016 to December 31, 2016) cover different periods.

[Reference]

The following adjusted changes [%] are comparisons of forecast of consolidated results for the year ending December

31, 2017 with consolidated results of the corresponding period of the fiscal year ended December 31, 2016 that has
been adjusted to a 12-month period (January 1, 2016 to December 31, 2016).
Note that the consolidated results for the fiscal year ended December 31, 2016 adjusted for a 12-month period (January 1,
2016 to December 31, 2016) have not been audited. (All numbers are in millions of yen)

Forecast of consolidated results for the year ending December 31, 2017 (All numbers are in millions of yen):

Net sales

Operating income

Ordinary income

Net income attributable

to shareholders of parent company

771,000 71,000 69,000 71,000
+20.7% +0.8% +12.7% +30.5%

4.

Others

4.1 Changes in significant subsidiaries for the nine-month period ended September 30, 2017
(Changes in specified subsidiaries resulting in changes in scope of consolidation): Yes
(Note) For details, please refer to page 7.
4.2 Adoption of special accounting policies for quarterly financial statements: Yes

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

4.3 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 4.3.1: No
3. Changes in accounting estimates: No
4. Corrections of prior period errors: No
4.4 Number of shares issued and outstanding (common stock)
1. Number of shares issued and outstanding (including treasury stock)

As of September 30, 2017:

1,667,184,490 shares

As of December 31, 2016:

1,667,124,490 shares

2. Number of treasury stock

As of September 30, 2017:

2,581 shares

As of December 31, 2016:

2,581 shares

3. Average number of shares issued and outstanding

For the nine-month period ended September 30, 2017: 1,667,161,689 shares
For the nine-month period ended December 31, 2016: -- shares

The Group implemented a change of the fiscal term in which the fiscal year-end changed from March 31 to December 31, starting from the fiscal year 2016. Accordingly, the average number of shares for the nine-month period ended December 31, 2016 (quarterly cumulative total) is not indicated, since the financial results for nine months ended December 31, 2016 have not been prepared.

(Note) Information regarding the implementation of quarterly review procedures

These quarterly financial results are not subject to quarterly review procedures based upon the Financial Instruments and Exchange Act. The review procedures for the quarterly financial report are underway by the time of issuance of this report.

Cautionary Statement

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 Group will hold a quarterly earnings conference for institutional investors and analysts on November 2, 2017. The Group plans to post the materials which are provided at the meeting, on the Group’s website on that day.
The allocation of the acquisition costs for the business combinations with Intersil Corporation, which the Group acquired on February 24, 2017, has been revised at the end of the nine months ended September 30, 2017. The revised allocation of the acquisition costs are reflected in the Quarterly Consolidated Financial Statements of the nine months ended September 30, 2017. For details, please refer to Appendix 3.4, “Notes to Quarterly Consolidated Financial Statements (Business Combinations)” on page 16.

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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Renesas Electronics Corporation
Media Contacts
Kyoko Okamoto, +81 3-6773-3001
pr@renesas.com
or
Investor Contacts
Makie Uehara, +81 3-6773-3002
ir@renesas.com

Source: Renesas Electronics Corporation