Renesas Electronics Reports Financial Results for the Second Quarter Ended June 30, 2020

All figures are rounded to the nearest 100 million yen.

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 quarter ended June 30, 2020. From the quarter ended March 31, 2020, capital expenditures include Integrated Device Technology, Inc. (hereinafter “IDT”)’s investments as well as investments including fixed costs of masks and tools.

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

R&D expenses includes a partially capitalized R&D expenses recorded as intangible assets.

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Note: Change in forecast of cash dividends since the most recently announced forecast: No

The Group reports its consolidated forecast on a quarterly basis (cumulative quarters) as substitute for a yearly forecast in a range format. For details, please refer to Appendix 1.3. “Consolidated Forecasts” page 6.

Non-GAAP figures are calculated by removing or adjusting non-recurring items and other adjustments from GAAP figures following a certain set of rules. The Group believes non-GAAP measures provide useful information in understanding and evaluating the Group’s constant business results, and therefore forecasts are provided as a non-GAAP basis.

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

(Note) For details, please refer to page 16

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: No

2. Changes in accounting policies except for 4.2.1: Yes

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 June 30, 2020:

1,719,396,690 shares

As of December 31, 2019:

1,710,276,790 shares

2. Number of treasury stock

As of June 30, 2020:

2,581 shares

As of December 31, 2019:

2,581 shares

3. Average number of shares issued and outstanding

Six months ended June 30, 2020:

1,713,078,576 shares

Six months ended June 30, 2019:

1,681,578,376 shares

(Note) Information regarding the implementation of audit procedures

These financial results are not subject to audit review procedures.