Renesas Reports Financial Results for the Year Ended December 31, 2022

TOKYO–(BUSINESS WIRE)–#earnings–Renesas Electronics Corporation (TSE:6723) today announced consolidated financial results in accordance with IFRS for the year ended December 31, 2022.

Summary of Consolidated Financial Results (Note 1)

Year ended
December 31, 2022

Billion Yen

% of Revenue

Revenue

1,500.9

100.0

Operating profit

424.2

28.3

Profit attributable to owners of parent

256.6

17.1

Capital expenditures (Note 2)

216.4

Depreciation and amortization

186.0

R&D expenses (Note 3)

206.7

Yen

Exchange rate (USD)

130

Exchange rate (EUR)

137

As of December 31, 2022

Billion Yen

Total assets

2,812.3

Total equity

1,537.5

Equity attributable to owners of parent

1,533.8

Equity ratio attributable to owners of parent (%)

54.5

Interest-bearing liabilities

770.0

Note 1:

All figures are rounded to the nearest 100 million yen.

Note 2:

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 year ended December 31, 2022. However, the investments from Dialog Semiconductor Limited (hereinafter “Dialog”) and Celeno Communications Inc. (hereinafter “Celeno”) are listed as an input basis.

Note 3:

R&D expenses include capitalized R&D expenses recorded as intangible assets.

Note 4:

The allocation of the acquisition costs for the business combinations with Dialog and Celeno has been revised at the end of the three months ended March 31, 2022 and at the end of the three months ended June 30, 2022, respectively. These revisions to the allocation of the acquisition costs (PPA) have been reflected in the consolidated financial results for the year ended December 31, 2021 and for the three months ended March 31, 2022.

RENESAS ELECTRONICS CORPORATION

Consolidated Financial Results for the Year Ended December 31, 2022

English translation from the original Japanese-language document

February 9, 2023

Company name

: Renesas Electronics Corporation

Stock exchanges on which the shares are listed

: Tokyo Stock Exchange, Prime Market

Code number

: 6723

URL

: https://www.renesas.com

Representative

: Hidetoshi Shibata, President and CEO

Contact person

: Fujiko Yamaguchi, Vice President, IR Office

Tel. +81 (0)3-6773-3002

Filing date of Yukashoken Hokokusho (scheduled)

: March 30, 2023

(Amounts are rounded to the nearest million yen)

1. Consolidated financial results for the year ended December 31, 2022

1.1 Consolidated financial results (% of change from corresponding period of the previous year)

Revenue

Operating

profit

Profit

before tax

Profit

attributable to

owners of

parent

Total

comprehensive

income

Million

yen

Million

yen

Million

yen

Million

yen

Million

yen

Million

yen

Year ended December 31, 2022

1,500,853

51.0

424,170

144.0

362,299

153.9

256,787

114.5

256,632

114.7

565,984

98.5

Year ended December 31, 2021

993,908

—

173,827

—

142,718

—

119,687

—

119,536

—

285,078

—

Basic

earnings

per share

Diluted

earnings

per share

Net income

per equity

attributable

to owners

Profit

before tax

ratio per

net assets

Operating

profit

ratio per

revenue

Yen

Year ended

December 31, 2022

137.67

134.85

19.1

13.8

28.3

Year ended

December 31, 2021

64.77

63.35

13.5

7.1

17.5

1.2 Consolidated financial position

Total assets

Total equity

Equity

attributable

to owners

Ratio of equity

attributable

to owners

Equity

attributable

to owners

per share

Million yen

Yen

December 31, 2022

2,812,272

1,537,478

1,533,750

54.5

853.52

December 31, 2021

2,426,301

1,153,398

1,150,081

47.4

591.67

1.3 Consolidated cash flows

Cash flows

from operating

activities

Cash flows

from investing

activities

Cash flows

from financing

activities

Cash and cash

equivalents at

the end of

the year

Million yen

Year ended

December 31, 2022

479,325

(97,523)

(294,770)

336,068

Year ended

December 31, 2021

307,384

(663,126)

340,915

221,924

2. Cash dividends

Cash dividends per share

Total

dividend

during

the year

Dividends

payout ratio

(consolidated)

Dividends

ratio per

assets

(consolidated)

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

—

Year ended
December 31, 2021

—

0.00

—

0.00

—

Year ending
December 31, 2022

—

0.00

—

0.00

—

Year ending
December 31, 2023 (forecast)

—

Note: For the year ending December 31, 2023, whether the Group provides dividend payments remains undecided.

3. Forecast of consolidated results for the three months ending March 31, 2023

Non-GAAP

Revenue

Non-GAAP

Gross Margin

Non-GAAP

Operating Margin

Million yen

%pts

Three months ending March 31, 2023

347,500

to 362,500

0.2

to 4.6

54.5

-3.9

32.5

-6.6

Note 1:

The Group reports its consolidated forecast on a quarterly basis as substitute for a yearly forecast in a range format. The non-GAAP gross margin and the non-GAAP operating margin forecasts are provided assuming the midpoint in the non-GAAP revenue forecast.

Note 2:

Non-GAAP figures are calculated by removing or adjusting non-recurring items and other adjustments from GAAP (IFRS) 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 on a non-GAAP basis.

4. Others

4.1

Changes in significant subsidiaries for the full year ended December 31, 2022: No

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

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: No

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 December 31, 2022: 1,958,454,023 shares

As of December 31, 2021: 1,943,805,775 shares

2. Number of treasury stock

As of December 31, 2022: 161,488,167 shares

As of December 31, 2021: 2,581 shares

3. Average number of shares issued and outstanding

Year ended December 31, 2022: 1,864,152,116 shares

Year ended December 31, 2021: 1,845,523,704 shares

(Reference) Non-consolidated results for the year ended December 31, 2022

Non-consolidated financial results

Net sales

Operating income

Ordinary income

Net income

Million

yen

Million

yen

Million

yen

Million

yen

Year ended

December 31, 2022

1,075,144

39.4

350,991

112.7

279,485

115.2

212,647

86.7

Year ended

December 31, 2021

771,277

36.8

165,006

233.7

129,862

145.8

113,928

140.1

Net income

per share: basic

Net income

per share: diluted

Yen

December 31, 2022

114.07

111.73

December 31, 2021

61.73

60.38

Non-consolidated financial position

Total assets

Net assets

Equity ratio

Net assets

per share

Million yen

Yen

December 31, 2022

2,553,295

940,437

36.5

498.75

December 31, 2021

2,385,940

913,301

37.7

463.03

Reference:

Equity at the end of the year ended December 31, 2022: 932,835 million yen

Equity at the end of the year ended December 31, 2021: 900,032 million yen

(Note)

Information regarding the implementation of audit procedures: These financial results are not subject to audit review procedures.

Cautionary Statement

The Group will hold an earnings conference for institutional investors and analysts on February 9, 2023. The Group plans to post the materials which are provided at the meeting, on the Group’s website on that day.

The statements with respect to the financial outlook of Renesas Electronics Corporation (hereinafter “the Company”) and its consolidated subsidiaries (hereinafter “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.

About Renesas Electronics Corporation

Renesas Electronics Corporation (TSE: 6723) empowers a safer, smarter and more sustainable future where technology helps make our lives easier. A leading global provider of microcontrollers, Renesas combines our expertise in embedded processing, analog, power and connectivity to deliver complete semiconductor solutions. These Winning Combinations accelerate time to market for automotive, industrial, infrastructure and IoT applications, enabling billions of connected, intelligent devices that enhance the way people work and live. Learn more at renesas.com. Follow us on LinkedIn, Facebook, Twitter, YouTube, and Instagram.

(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.
Contacts
Media Contacts
Kyoko Okamoto
Corporate Communications Office
Renesas Electronics Corporation
+81 3-6773-3001
pr@renesas.com

Investor ContactsYuuki Oka
Investor Relations Office
Renesas Electronics Corporation
+81 3-6773-3002
ir@renesas.com