Renesas Reports Financial Results for the Second Quarter Ended June 30, 2022

TOKYO–(BUSINESS WIRE)–#Earnings–Renesas Electronics Corporation (TSE:6723) today announced consolidated financial results in accordance with IFRS for the six months ended June 30, 2022.

Summary of Consolidated Financial Results (Note 1)

Three months ended
June 30, 2022

Six months ended
June 30, 2022

Billion Yen

% of Revenue

Billion Yen

% of Revenue

Revenue

376.6

100.0

722.9

100.0

Operating profit

110.2

29.3

210.0

29.1

Profit attributable to owners of parent

50.6

13.4

110.4

15.3

Capital expenditures (Note 2)

148.6

180.5

Depreciation and amortization

45.9

89.9

R&D expenses (Note 3)

51.4

97.0

Yen

Exchange rate (USD)

124

120

Exchange rate (EUR)

134

132

As of June 30, 2022

Billion Yen

Total assets

2,858.8

Total equity

1,467.7

Equity attributable to owners of parent

1,463.9

Equity ratio attributable to owners of parent (%)

51.2

Interest-bearing liabilities

886.0

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 three months and six months ended June 30, 2022. However, the investments from the former 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 has been revised at the end of the three months ended March 31, 2022 and for the business combinations with Celeno at the end of the three months ended June 30, 2022. The revised allocation of the acquisition costs (PPA) has 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 Second Quarter Ended June 30, 2022
English translation from the original Japanese-language document

July 28, 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

: Fujiko Yamaguchi, Vice President, IR Office
Tel. +81 (0)3-6773-3002

Filing date of Shihanki Hokokusho (scheduled)

: August 10, 2022

(Amounts are rounded to the nearest million yen)

1. Consolidated financial results for the six months ended June 30, 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

Six months ended June 30, 2022

722,908

71.5

210,005

219.8

147,423

190.6

110,575

191.9

110,437

192.9

504,953

299.7

Six months ended June 30, 2021

421,553

22.0

65,661

114.8

50,736

70.4

37,879

62.9

37,705

62.4

126,334

—

Basic
earnings
per share

Diluted
earnings
per share

Yen

Six months ended June 30, 2022

56.96

55.82

Six months ended June 30, 2021

21.53

21.07

1.2 Consolidated financial position

Total assets

Total equity

Equity
attributable to
owners

Ratio of equity
attributable to
owners

Million yen

June 30, 2022

2,858,842

1,467,728

1,463,898

51.2

December 31, 2021

2,426,301

1,153,398

1,150,081

47.4

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

—

0.00

Year ending December 31, 2022 (forecast)

—

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

3. Forecast of consolidated results for the nine months ending September 30, 2022

Non-GAAP
Revenue

Non-GAAP
Gross Margin

Non-GAAP
Operating Margin

Million yen

%pts

Nine months

ending

September 30, 2022

1,103,759
to 1,111,759

62.3
to 63.5

57.8

5.1

37.3

8.2

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 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 six months ended June 30, 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

Changes in accounting policies with revision of accounting standard: No

Changes in accounting policies except for 4.2.1: No

Changes in accounting estimates: No

4.3 Number of shares issued and outstanding (common stock)

Number of shares issued and outstanding (including treasury stock)
As of June 30, 2022: 1,952,747,173 shares
As of December 31, 2021: 1,943,805,775 shares

Number of treasury stock
As of June 30, 2022: 168,069,831 shares
As of December 31, 2021: 2,581 shares

Average number of shares issued and outstanding
Six months ended June 30, 2022: 1,938,971,343 shares
Six months ended June 30, 2021: 1,751,223,268 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 July 28, 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.

The allocation of the acquisition costs for the business combinations with Dialog has been revised at the end of the three months ended March 31, 2022, and for the business combinations with Celeno at the end of the three months ended June 30, 2022. The revised allocation of the acquisition costs (PPA) has been reflected in the consolidated financial results for the year ended December 31, 2021 and for the three months ended March 31, 2022. For details, please refer to Appendix 1.5, “Notes to Quarterly Consolidated Financial Statements (Business Combinations)” on page 16.

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

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