Market Overview

Notice Concerning the Difference Between Forecasts and Actual Financial Results for the Six Months Ended June 30, 2018

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Renesas Electronics Corporation (TSE: 6723), a premier supplier of
advanced semiconductor solutions, today announced the difference between
its consolidated financial forecasts, which it disclosed on May 11,
2018, and the actual results, which it disclosed today, for the six
months ended June 30, 2018 (the period from January 1, 2018 to June 30,
2018).

1. Difference between consolidated forecasts and actual results for
the six months ended June 30, 2018

(January 1, 2018 to June 30, 2018)

       

In millions of yen

 
        Net Income    
Operating Ordinary

Attributable to

Net Income
Net Sales Income Income Shareholders per Share
of Parent (Yen)
                        Company      
Previous forecasts
(As of May 11, 2018)
    382,000     35,000     32,000     34,000     20.39
Actual results     389,398     43,573     41,512     49,426     29.64
Increase (decrease)     7,398     8,573     9,512     15,426     9.25
Percent change     1.9%     24.5%     29.7%     45.4%     45.4%
Reference:

Results for the six months ended June 30, 2017

    374,553     31,560     30,456     36,281     21.76

2. Background to the difference

Renesas announced the following financial results for the six months
ended June 30, 2018: net sales were 389.4 billion yen, 7.4 billion yen
up from the previous forecast (announced on May 11, 2018); semiconductor
sales were 381.1 billion yen, 6.4 billion yen up from the previous
forecast. This was mainly due to better-than-expected automotive sales
compared to the forecast and the continuing depreciation of the yen
against the US dollar and the Euro. Both operating and ordinary income
improved from the previous forecasts mainly owing to
better-than-expected sales and cost-containment effects. Net income
attributable to shareholders of parent company was also better than the
company's estimates, mainly from the reversal of provision for
contingent loss related to the lawsuit in which the Company's U.S.
subsidiary has been named as a defendant, in addition to an increase in
ordinary income.

Details that explain Renesas' announcement of financial results for the
six months ended June 30, 2018 are disclosed in the Renesas press
release: ‘‘Renesas Electronics Reports Financial Results for the
Second Quarter Ended June 30, 2018
'' issued on July 31, 2018.

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.

(FORWARD-LOOKING STATEMENTS)

The statements in this press release with respect to the plans,
strategies and financial outlook of Renesas and its consolidated
subsidiaries (collectively "we") are forward-looking statements
involving risks and uncertainties. Such forward-looking statements do
not represent any guarantee by management of future performance. In many
cases, but not all, we use such words as "aim," "anticipate," "believe,"
"continue," "endeavor," "estimate," "expect," "initiative," "intend,"
"may," "plan," "potential," "probability," "project," "risk," "seek,"
"should," "strive," "target," "will" and similar expressions to identify
forward-looking statements. You can also identify forward-looking
statements by discussions of strategy, plans or intentions. These
statements discuss future expectations, identify strategies, contain
projections of our results of operations or financial condition, or
state other forward-looking information based on our current
expectations, assumptions, estimates and projections about our business
and industry, our future business strategies and the environment in
which we will operate in the future. Known and unknown risks,
uncertainties and other factors could cause our actual results,
performance or achievements to differ materially from those contained or
implied in any forward-looking statement, 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.

This press release is based on the economic, regulatory, market and
other conditions as in effect on the date hereof. It should be
understood that subsequent developments may affect the information
contained in this presentation, which neither we nor our advisors or
representatives are under an obligation to update, revise or affirm.

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