Press release

Renesas Electronics Reports Financial Results for the Year Ended December 31, 2019

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Renesas Electronics Corporation (TSE:6723) today announced consolidated financial results in accordance with IFRS for the year ended December 31, 2019.

Summary of Consolidated Financial Results

 

Year ended

December 31, 2019

 

Billion Yen

% of Net Sales

Revenue

718.2

100.0

Operating profit

6.8

1.0

Net profit

(5.9)

(0.8)

Capital expenditures (Note 2)

10.8

 

Depreciation and others (Note 3)

148.0

 

R&D expenses (Note 4)

128.7

 

 

Yen

 

Exchange rate (USD)

109

 

Exchange rate (EUR)

123

 

 

 

 

As of December 31, 2019

 

Billion Yen

Total assets

1,667.4

Total equity

623.6

Equity attributable to owners of the parent

620.7

Equity ratio attributable to owners of the parent (%)

37.2

Interest-bearing debt

785.9

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 year ended December 31, 2019.

Note 3:

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

Note 4:

Part of R&D expenses have been capitalized and have been recorded as intangible assets. R&D expense which have been recorded as intangible assets are listed here.

Note 5:

The allocation of the acquisition costs (PPA: Purchase Price Allocation) for the business combinations with Integrated Device Technology, Inc. (“IDT”), which Renesas acquired on March 30, 2019 (JST), has been revised at the end of the full year ended December 2019. The revised allocation of the acquisition costs are reflected in the consolidated financial figures of FY2019/12.

RENESAS ELECTRONICS CORPORATION

Consolidated Financial Results for the Year Ended December 31, 2019

English translation from the original Japanese-language document

February 12, 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, Director

Corporate Communications Dept.

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

Filing date of Yukashoken Hokokusho (scheduled)

:March 27, 2020

(Amounts are rounded to the nearest million yen)

1. Consolidated financial results for the year ended December 31, 2019

1.1 Consolidated financial results

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

 

Revenue

Operating profit

Profit before

tax from

continuing

operations

Profit for the

year

Profit for

the year

attributable to

owners of the

parent

Total

comprehensive

income

 

Million

yen

%

Million

yen

%

 

Million

yen

%

 

Million

yen

%

 

Million

yen

%

 

Million

yen

%

Year ended

December 31,

2019

718,243

(5.1)

6,845

(90.0)

257

(99.6)

(5,825)

(5,914)

(21,624)

Year ended

December 31,

2018

756,503

(2.9)

68,196

(33.0)

67,723

(31.9)

51,059

(50.0)

50,989

(50.0)

18,201

(83.3)

 

Basic

earnings

per share

Diluted

earnings

per share

Net income

per equity

attributable to

owners

Profit

before tax

ratio per net

assets

Operating

profit ratio

per revenue

 

Yen

Yen

%

%

%

Year ended December 31, 2019

(3.49)

(3.49)

(1.0)

0.0

1.0

Year ended December 31, 2018

30.57

30.50

8.7

6.2

9.0

Reference:

Equity in net income of affiliates of the year ended December 31, 2019:

— million yen

 

Equity in net income of affiliates of the year ended December 31, 2018:

49 million yen

1.2 Consolidated financial position

 

Total assets

Total equity

Equity attributable

to owners

Ratio of equity

attributable to

owners

Equity attributable

to owners per

share

 

Million yen

Million yen

Million yen

%

Yen

December 31,

2019

1,667,359

623,615

620,666

37.2

362.90

December 31,

2018

1,055,235

600,968

598,100

56.7

358.49

1.3 Consolidated cash flows

 

Cash flows from

operating

activities

Cash flows from

investing

activities

Cash flows from

financing activities

Cash and cash

equivalents at the

end of the year

 

Million yen

Million yen

Million yen

Million yen

Year ended December 31, 2019

201,960

(742,162)

500,466

146,468

Year ended December 31, 2018

172,308

(80,872)

(39,251)

188,820

2. Cash dividends

 

Cash dividends per share

Total

dividends

during

the year

Dividends

payout

ratio

(consolidated)

Dividends

ratio per

net assets

(consolidated)

 

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 ended

December 31, 2019

0.00

0.00

0.00

Year ending

December 31, 2020

(forecast)

 

 

 

Note: For the year ending December 31, 2020, whether the Group provides dividend payments remains undecided.

3. Forecast of consolidated results for the three months ending March 31, 2020

(% or %pts indicates changes from corresponding period of the previous year)

 

 

Non-GAAP

Revenue

 

Non-GAAP

Gross Margin

 

Non-GAAP

Operating Margin

 

Million yen

%

%

%pts

%

%

Forecasts as of

February 12, 2020

175,000

to 183,000

16.5

to 21.8

46.0

6.7

15.0

10.2

Note 1:

 

Instead of a forecast for the full year ending December 31, 2020, the group has provided a forecast for the three months ending March 31, 2020, in a range format. For more information, please refer to page 6.

Note 2:

 

Non-GAAP figures are calculated by adjusting or removing non-recurring items and other adjustments from GAAP figures. 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 year ended December 31, 2019

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

(Note) For details, please refer to page 14.

 

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 December 31, 2019:

1,710,276,790 shares

As of December 31, 2018:

1,668,385,390 shares

 

 

2. Number of treasury stock

 

As of December 31, 2019:

2,581 shares

As of December 31, 2018:

2,581 shares

 

 

3. Average number of shares issued and outstanding

 

For the year ended December 31, 2019:

1,694,150,509 shares

For the year ended December 31, 2018:

1,667,716,659 shares

(Reference) Non-consolidated results for the year ended December 31, 2019

Non-consolidated financial results

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

 

Net sales

Operating

income

Ordinary

income

Net income

 

Million yen

 

%

Million yen

 

%

Million yen

 

%

Million yen

 

%

Year ended

December 31, 2019

554,313

 

(12.2)

34,404

 

(53.0)

16,932

 

(75.4)

17,433

 

(64.6)

Year ended

December 31, 2018

631,220

 

(7.6)

73,243

 

(19.6)

68,864

 

(24.0)

49,216

 

(43.7)

 

Net income

per share: basic

Net income per

share: diluted

 

Yen

Yen

Year ended

December 31, 2019

 

10.29

 

10.13

Year ended

December 31, 2018

 

29.51

 

29.44

Non-consolidated financial position

 

Total assets

Net assets

Equity ratio

Net assets per share

 

Million yen

Million yen

%

Yen

December 31, 2019

1,613,679

504,431

30.3

285.56

December 31, 2018

928,277

438,896

46.7

260.07

Reference:

Equity at the end of the year ended December 31, 2019:

488,378 million yen

Equity at the end of the year ended December 31, 2018:

433,731 million yen

(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 (“IFRS”) starting from the annual securities report for the fiscal year ended December 31, 2018.

The Group will hold an earnings conference for institutional investors and analysts on February 12, 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 (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 IDT, which the Group acquired on March 30, 2019, has been revised at the end of the fiscal year ended December 31, 2019. The revised allocation of the acquisition costs are reflected in the Consolidated Financial Statements of the fiscal year ended December 31, 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.