Renesas Electronics Corporation (TSE:6723) today announced consolidated financial results for the six months ended September 30, 2016.

Summary of Consolidated Financial Results

       
  Three months ended
September 30, 2016		 Six months ended
September 30, 2016
Billion Yen   % of Net Sales Billion Yen   % of Net Sales
Net sales 152.6 100.0 304.6 100.0
Sales from semiconductors 148.3 295.8
Sales from others 4.4 8.8
Operating income 14.6 9.5 33.1 10.9
Ordinary income 12.6 8.2 28.8 9.5

Net income attributable to shareholders of parent company

9.4 6.2 19.4 6.4
Capital expenditures (Note 4) 29.7 48.7
Depreciation and others 14.9 29.4
R&D expenses 25.5   49.9  
Yen Yen
Exchange rate (USD) 104 107
Exchange rate (Euro) 116   120  
     
  As of September 30, 2016  
Billion Yen
Total assets 758.2
Net assets 382.0
Equity Capital 380.0
Equity ratio (%) 50.1
Interest-bearing debt 157.9  
Note 1:   All figures are rounded to the nearest 100 million yen.
Note 2: Consolidated financial results for the three months ended September 30, 2016 have not been reviewed by the auditors. The figures are subject to change based on subsequent events or the auditors’ review.
Note 3: At the 14th Ordinary General Shareholders’ Meeting held on June 28, 2016, a partial amendment to the Articles of Incorporation was approved and Renesas Electronics Group implemented a change of the fiscal term in which the fiscal year-end will change from March 31 to December 31 starting from the fiscal year 2016. The current fiscal year (fiscal year ending December 31, 2016) in which the transition to the new accounting period is to take place, will comprise the financial results for the nine months from April 1, 2016, to December 31, 2016.
Note 4: Capital expenditures refer to the amount of order placed for property, plant and equipment (manufacturing equipment) and intangible assets.
Note 5: Depreciation and others includes depreciation and amortization of intangible assets and amortization of long-term prepaid expenses in quarterly consolidated statements of cash flows.
 

Consolidated Financial Results for the Second Quarter Ended September 30, 2016

English translation from the original Japanese-language document
 

November 2, 2016

 
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, Department Manager

  Corporate Communications Dept.

  Tel. +81 (0)3-6773-3002

Filing date of Shihanki Hokokusho (scheduled) : November 8, 2016
 

  (Amounts are rounded to the nearest million yen)

 

1.  Consolidated financial results for the six months ended September 30, 2016

 

1.1 Consolidated financial results

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

 
             
  Net sales Operating income Ordinary income

Net income
attributable to
shareholders of
parent company

Million yen   % Million yen   % Million yen   % Million yen   %

 

Six months ended September 30, 2016

304,604

(15.6) 33,113 (47.5) 28,836 (57.0) 19,394 (66.2)
 

Six months ended September 30, 2015

360,701 (13.5) 63,093 24.9 67,121 36.7 57,409 63.5
 
Reference:   Comprehensive income for the six months ended September 30, 2016: 232 million yen (-99.5%)
Comprehensive income for the six months ended September 30, 2015: 48,514 million yen (4.0%)
 
       
 

Net income per
share basic

Net income per
share diluted

Yen Yen

 

Six months ended September 30, 2016

11.63 11.63

 

Six months ended September 30, 2015

34.44 ---
 

1.2 Consolidated financial position

           
  Total assets Net assets Equity ratio
Million yen Million yen %
 
September 30, 2016 758,181 381,973 50.1
 
March 31, 2016 849,376 381,739 44.7
Reference:       Equity as of September 30, 2016:       379,981 million yen
Equity as of March 31, 2016: 379,479 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 March 31, 2016 --- 0.00 --- 0.00 0.00
Year ending December 31, 2016 --- 0.00      
Year ending December 31, 2016 (forecast)     --- 0.00 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 6.
 
         

3.  Forecast of consolidated results for the nine months ending December 31, 2016

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

         
  Net sales Operating income Ordinary income

Net income
attributable to
shareholders of
parent company

Net
income
per share

Million yen   % Million yen   % Million yen   % Million yen   % yen
Nine months ending December 31, 2016 466,000 --- 54,000 --- 49,000 --- 37,000 --- 22.19

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

At the 14th Ordinary General Shareholders’ Meeting held on June 28, 2016, a partial amendment to the Articles of Incorporation was approved and Renesas Electronics Group implemented a change of the fiscal term in which the fiscal year-end will change from March 31 to December 31 starting from the fiscal year 2016. With some exceptions, the same changes have been made to the Group’s subsidiaries. The current fiscal year (fiscal year ending December 31, 2016) in which the transition to the new accounting period is to take place, will comprise the financial results for the nine months from April 1, 2016, to December 31, 2016. For details, please refer to Appendix 1.3., “Consolidated Forecasts” on page 6.

[Reference]
The following adjusted change [%] for the forecasts for the year ending December 31, 2016 represents percentage change from the corresponding period in the prior year for the nine‐month period from April 1, 2015 to December 31, 2015. (All numbers are in millions of yen)

Net sales

        

Operating income

        

Ordinary income

466,000 54,000 49,000
-11.3% -38.7% -46.1%
 

Net income attributable to

shareholders of parent company

37,000
-51.3%
 

4.

  

Others

 
4.1 Changes in significant subsidiaries for the six months ended September 30, 2016
(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 7.
 
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, 2016:           1,667,124,490 shares
As of March 31, 2016: 1,667,124,490 shares
 
2. Number of treasury stock
As of September 30, 2016: 2,581 shares
As of March 31, 2016: 2,581 shares
 
3. Average number of shares issued and outstanding
For the six months ended September 30, 2016: 1,667,121,909 shares
For the six months ended September 30, 2015: 1,667,121,939 shares

(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, 2016. The Group plans to post the materials which are provided at the meeting, on the Group’s website on that day.
 

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), the world’s number one supplier of microcontrollers, is a premiere supplier of advanced semiconductor solutions including microcontrollers, SoC solutions and a broad-range of analog and power devices. Business operations began as Renesas Electronics Corporation in April 2010 through the integration of NEC Electronics Corporation (TSE:6723) and Renesas Technology Corp., with operations spanning research, development, design and manufacturing for a wide range of applications. Headquartered in Japan, Renesas Electronics Corporation has subsidiaries in approximately 20 countries worldwide. More information can be found at www.renesas.com.