Increase in Q1 Sales Year-On-Year Driven by Growth Mainly from Integration of Intersil and Industrial Business.

Achieved Gross Margin Improvement for Four Consecutive Quarters

• Q1 2018: Non-GAAP⁽¹⁾ semiconductor sales of 182.0 billion yen, up 5.5% year-on-year. Non-GAAP gross margin of 48.0%, up 2.6 points year-on-year and Non-GAAP operating profits (margin) of 31.4　 billion yen (16.9%), up 2.3 billion yen (up 0.5 point) year-on-year
• Outlook for Q2 2018: Non-GAAP semiconductor sales of 192.7 billion yen, down 0.8% year-on-year, Non-GAAP gross margin of 44.0%, down 1.8 points year-on-year and Non-GAAP operating margin of 12.8%, down 1.9 points year-on-year

TOKYO — (BUSINESS WIRE) — May 10, 2018 — Renesas Electronics Corporation (TSE:6723, “Renesas”), a premier supplier of advanced semiconductor solutions, today reported financial results for the first quarter ended March 31, 2018 (January 1, 2018 to March 31, 2018).

“We have been continuously improving our gross and operating margins by pursuing sales growth and cost efficiency,” said Bunsei Kure, Representative Director, President and CEO, Renesas Electronics Corporation. “We have achieved four consecutive quarters of improvement in non-GAAP Gross Margin in the first quarter. Our non-GAAP semiconductor sales also increased by 5.5% year on year, driven by the integration of Intersil and increased sales mainly in the industrial business. While we forecast stable demand in automotive and industrial businesses during the coming quarter, we expect a similar level of semiconductor sales on a year-on-year basis mainly due to the impact from the exchange rate.”

Quarterly Financial Summary (Billion yen)