Renesas Reports Financial Results for the First Quarter Ended March 31, 2022

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

Summary of Consolidated Financial Results (Note 1)

Three months ended
March 31, 2022

Billion Yen

% of Revenue

Revenue

346.7

100.0

Operating profit

100.1

28.9

Profit attributable to owners of parent

59.8

17.2

Capital expenditures (Note 2)

31.9

Depreciation and amortization

43.3

R&D expenses (Note 3)

45.6

Yen

Exchange rate (USD)

115

Exchange rate (EUR)

130

As of March 31, 2022

Billion Yen

Total assets

2,598.4

Total equity

1,349.2

Equity attributable to owners of parent

1,345.7

Equity ratio attributable to owners of parent (%)

51.8

Interest-bearing liabilities

810.5

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 three months ended March 31, 2022. However, the investments from the Dialog Semiconductors Plc (hereinafter “Dialog”) and Celeno Communications Inc. (hereinafter “Celeno”) are listed as an input basis. It should be noted that as of September 14, 2021, Dialog has changed its company name to Dialog Semiconductor Limited.

Note 3:

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

Note 4:

The allocation of the acquisition costs for the business combinations with Dialog, which the Group acquired on August 31, 2021, has been revised at the end of the three months ended March 31, 2022. The revised allocation of the acquisition costs (Purchase Price Allocation, hereinafter “PPA”) are reflected in the consolidated financial results for the year ended December 31, 2021.

RENESAS ELECTRONICS CORPORATION

Consolidated Financial Results for the First Quarter Ended March 31, 2022

English translation from the original Japanese-language document

April 27, 2022

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

: Masayuki Nagayama, Vice President, CEO Office

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

Filing date of Shihanki Hokokusho (scheduled)

: May 12, 2022

(Amounts are rounded to the nearest million yen)

1. Consolidated financial results for the three months ended March 31, 2022

1.1 Consolidated financial results

(% of change from corresponding period of the previous year)

Revenue

Operating

profit

Profit

before tax

Profit

Profit
attributable to
owners of
parent

Total
comprehensive
income

Million

yen

Million

yen

Million

yen

Million

yen

Million

yen

Million

yen

Three months ended March 31, 2022

346,696

70.2

100,077

231.5

78,996

348.2

59,838

333.4

59,784

335.9

190,173

93.1

Three months ended March 31, 2021

203,678

14.0

30,191

126.8

17,624

24.3

13,806

21.6

13,714

21.5

98,475

—

Basic
earnings
per share

Diluted
earnings
per share

Yen

Three months ended
March 31, 2022

　　　30.74

30.15

Three months ended
March 31, 2021

7.92

7.75

1.2 Consolidated financial position

Total assets

Total equity

Equity
attributable to
owners

Ratio of equity
attributable to
owners

Million yen

March 31, 2022

2,598,417

1,349,247

1,345,710

51.8

December 31, 2021

2,426,193

1,154,907

1,151,590

47.5

2. Cash dividends

Cash dividends per share

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

—

Year ending

December 31, 2022 (forecast)

0.00

—

Note: Change in forecast of cash dividends since the most recently announced forecast: Yes

3. Forecast of consolidated results for the six months ending June 30, 2022

Revenue

Non-GAAP
Gross Margin

Non-GAAP
Operating Margin

Million yen

%pts

Six months ending June 30 2022

721,696
(±4,000)

71.2
(±0.9)

57.9

6.8

37.7

10.7

Note 1:

The Group reports its consolidated forecast on a quarterly basis (cumulative quarters) as substitute for a yearly forecast in a range format. The revenue forecast is provided assuming the midpoint and the range of the forecast are listed in brackets. The gross margin and the operating margin forecasts are provided assuming the midpoint in the 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. However, the figure provided as revenue is based on IFRS and does not include non-GAAP adjustments.

4. Others

4.1 Changes in significant subsidiaries for the three months ended March 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 March 31, 2022:

1,945,692,637 shares

As of December 31, 2021:

1,943,805,775 shares

2. Number of treasury stock

As of March 31, 2022:

2,581 shares

As of December 31, 2021:

2,581 shares

3. Average number of shares issued and outstanding

Three months ended March 31, 2022:

1,944,641,915 shares

Three months ended March 31, 2021:

1,732,607,242 shares

(Note) Information regarding the implementation of audit procedures: These financial results are not subject to quarterly review procedures by the independent auditor.

Cautionary Statement

The Group will hold an earnings conference for institutional investors and analysts on April 27, 2022. 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.

Forward-Looking Statements

The statements in this press release with respect to the plans, strategies and financial outlook of Renesas Electronics Corporation and its consolidated subsidiaries (collectively “we”) 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 several important factors 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.

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.
Contacts
Public Relations
Kyoko Okamoto
Renesas Electronics Corporation
+81 3-6773-3001
pr@renesas.com

Investor Relations
Toshio Ninomiya
Renesas Electronics Corporation
+81 3-6773-3002
ir@renesas.com