TOKYO, Japan, May 14, 2021 ― Renesas Electronics Corporation (TSE:6723), a premier supplier of advanced semiconductor solutions, today identified that the financial impacts from the fire on March 19, 2021 at part of the processes in the N3 Building (300mm line) of Naka Factory, is expected to be a decrease of over 30% of the profit attributable to the owners of the parent from the most recent fiscal year ended December 31, 2020, and that it falls within the rules for timely disclosure, as determined by the Tokyo Stock Exchange.
Renesas expects a loss of approximately 23.9 billion yen in operating profit (note) for the six months ending June 30, 2021 as the financial impacts from the fire, which was already incorporated in the consolidated financial forecasts for the six months ending June 30, 2021 announced on April 28, 2021. This loss includes operation loss, inventory disposal, and restoration and repairment costs. Although Renesas does not announce an outlook for the profit attributable to the owners of the parent for the six months ending June 30, 2021, it expects corresponding decrease to the profit attributable to the owners of the parent following the decrease in operating profit.
The consolidated financial forecasts for the six months ending June 30, 2021 announced on April 28 already incorporate the above financial impacts and remain unchanged.
Note: Renesas expects a loss of approximately 14.8 billion yen in Non-GAAP operating profit, due to operation loss, etc. Non-GAAP figures are calculated by removing or adjusting non-recurring items and other adjustments from GAAP (IFRS based) figures following a certain set of rules. Renesas 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. This adjustment and exclusion include the amortization of intangible assets recognized from acquisitions, other PPA (purchase price allocation) adjustments and costs relating to acquisitions, stock-based compensation, as well as other non-recurring expenses and income the Group believes to be applicable.
The above figures are estimated amount determined by Renesas based on currently available information and includes potential risks and uncertainties. Therefore, the final impact amount may be varied from the estimated amount due to changes in various factors in the future.
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. A global leader in microcontrollers, analog, power, and SoC products, Renesas provides comprehensive solutions for a broad range of automotive, industrial, infrastructure, and IoT applications that help shape a limitless future. Learn more at renesas.com. Follow us on LinkedIn, Facebook, Twitter, and YouTube.