Renesas Electronics Reports Financial Results for the First Quarter Ended March 31, 2018

TOKYO--(BUSINESS WIRE)--Renesas Electronics Corporation (TSE:6723) today announced consolidated financial results for the three months ended March 31, 2018.

Summary of Consolidated Financial Results

	Three months ended
	March 31, 2018
	Billion Yen	% of Net Sales
Net sales	185.9	100.0
Sales from semiconductors	182.0
Sales from others	3.9
Operating income	20.6	11.1
Ordinary income	18.7	10.1
Net income attributable to shareholders of parent company	23.3	12.6
Capital expenditures	40.1
Depreciation and others	31.7
R&D expenses	32.3
	Yen
Exchange rate (USD)	108
Exchange rate (EUR)	133

	As of March 31, 2018
	Billion Yen
Total assets	1,016.2
Net assets	511.2
Equity Capital	505.7
Equity ratio (%)	49.8%
Interest-bearing debt	227.0

Note 1:	All figures are rounded to the nearest 100 million yen.
Note 2:	Consolidated financial results for the three months ended March 31, 2018 have been reviewed by the auditors.
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, amortization of long-term prepaid expenses and amortization of good will in quarterly consolidated statements of cash flows.

Consolidated Financial Results for the First Quarter Ended March 31, 2018
English translation from the original Japanese-language document
May 11, 2018
Company name	: Renesas Electronics Corporation
Stock exchanges on which the shares are listed	: Tokyo Stock Exchange, First Section
Code number	: 6723
URL	: http://www.renesas.com
Representative	: Bunsei Kure, Representative Director,
	President and CEO
Contact person	: Yoichi Kobayashi, Senior Director
	Corporate Communications Dept.
	Tel. [phone]
Filing date of Shihanki Hokokusho (scheduled)	: May 11, 2018
	(Amounts are rounded to the nearest million yen)

1. Consolidated financial results for the three months ended March 31, 2018

1.1 Consolidated financial results	(% of change from corresponding period of the previous year)
							Net income
	Net sales		Operating		Ordinary income		attributable to
			income				shareholders of
							parent company
	Million yen	%	Million yen	%	Million yen	%	Million yen	%
Three months ended March 31, 2018	185,912	4.9	20,598	(6.9)	18,687	(11.7)	23,337	36.0
Three months ended March 31, 2017	177,231	---	22,123	---	21,161	---	17,164	---

Reference:	Comprehensive income for the three months ended March 31, 2018: (2,824) million yen (--%)
	Comprehensive income for the three months ended March 31, 2017: 7,558 million yen (--%)

	Net income per	Net income per
	share basic	share diluted
	Yen	Yen
Three months ended March 31, 2018	14.00	13.97
Three months ended March 31, 2017	10.30	10.30

1.2 Consolidated financial position
	Total assets	Net assets	Equity ratio
	Million yen	Million yen	%
March 31, 2018	1,016,167	511,185	49.8
December 31, 2017	1,062,672	511,898	47.7

Reference:	Equity as of March 31, 2018:	505,698 million yen
	Equity as of December 31, 2017:	507,152 million yen

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, 2017	---	0.00	---	0.00	0.00
Year ending December 31, 2018	---
Year ending December 31, 2018 (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 4.

3. Forecast of consolidated results for the six months ending June 30, 2018

(% of change from corresponding period of the previous year)
							Net income		Net
	Net sales		Operating income		Ordinary income		attributable to		income
							shareholders of		per share
							parent company
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	yen
Six months ending June 30, 2018	382,000	2.0	35,000	10.9	32,000	5.1	34,000	(6.3)	20.39

Note:	Change in forecast of consolidated results since the most recently announced forecast: Yes
	The Group reports its consolidated forecast on a quarterly basis (cumulative quarters) as a substitute for a yearly forecast. For details, please refer to Appendix 1.3. “Consolidated Forecasts” on page 4.

4. Others
4.1 Changes in significant subsidiaries for the three months ended March 31, 2018: Yes
(Note) For details, please refer to page 5.

4.2 Adoption of special accounting methods for quarterly consolidated financial statements: Yes
(Note) For details, please refer to page 12.

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 March 31, 2018: 1,667,195,790 shares
   As of December 31, 2017: 1,667,194,490 shares
2. Number of treasury stock
   As of March 31, 2018: 2,581 shares
   As of December 31, 2017: 2,581 shares
3. Average number of shares issued and outstanding
   For the three months ended March 31, 2018: 1,667,192,776 shares
   For the three months ended March 31, 2017: 1,667,121,909 shares

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

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 May 11, 2018. The Group plans to post the materials which are provided at the meeting, on the Group’s website on that day.

The consolidated financial statements for the three months ended March 31, 2017 reflect a significant revision in allocation of the acquisition cost following the provisional accounting treatment finalized on December 31, 2017 for a business combination. For details, please refer to Appendix 3 “Quarterly Consolidated Financial Statements and Main Notes, 3.4. Notes to Quarterly Consolidated Financial Statements” (Business combinations) on page 12.

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.