Renesas Reports Financial Results for the Third Quarter Ended September 30, 2021

TOKYO – (COMMERCIAL THREAD) – Renesas Electronics Corporation (TSE: 6723) today announced its consolidated financial results in accordance with IFRS for the nine-month period ended September 30, 2021.

Summary of consolidated financial results (note 1)
	Three months ended September 30, 2021		Nine months ended September 30, 2021
	Billion yen	% revenues	Billion yen	% revenues
Returned	258.4	100.0	680.0	100.0
Operating result	53.8	20.8	119.5	17.6
Profit attributable to owners of the parent company	37.8	14.6	75.5	11.1
Capital expenditure (note 2)	21.2		71.8
Depreciation and others	34.4		100.1
R&D expenses (Note 3)	39.9		107.1
	Yen		Yen
Exchange rate (USD)	110		108
Exchange rate (EUR)	131		129

As of September 30, 2021

Billion yen

Total assets

2 328.0

Total equity

1047.1

Equity attributable to owners of the parent company

1043.8

Equity ratio attributable to owners of the parent company (%)

44.8

Interest-bearing debts

897.6

Note 1:

All figures rounded to the nearest 100 million yen.

Note 2:

Capital expenditure refers to the amount of property, plant and equipment (manufacturing equipment) and intangible assets based on the amount of investment decisions made during the three months and nine months ended September 30, 2021. However, the investments of the The former Device Technology, Inc. and Dialog Semiconductors Plc (hereinafter Dialog) are listed as the entry basis.

Note 3:

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

RENESAS ELECTRONIC COMPANY

Consolidated financial results for the third quarter ended September 30, 2021

English translation of the original Japanese document

28 October 2021

Company Name

: Renesas electronics company

Stock exchanges on which shares are listed

: Tokyo Stock Exchange, first section

Code number

: 6723

Url

: https://www.renesas.com

Representing

: Hidetoshi Shibata, President and CEO

Contact

: Fujiko Yamaguchi, Vice President, Office of the CEO

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

Shihanki Hokokusho filing date (planned)

: November 11, 2021

(Amounts are rounded to the nearest million yen)

1. Consolidated financial results at September 30, 2021

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

	Returned		Operating profit		Profit before tax		Profit		Profit attributable to owners of parent		Total full Income
	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Million yen	%	Million yen	%
Nine months ended September 30, 2021	679,986	29.7	119,485	149.9	100 781	116.3	75,685	96.6	75,457	96.1	183,386	—
Nine months ended September 30, 2020	524,093	(0.4)	47 818	—	46,592	—	38,488	—	38,471	—	(3 930)	—

	Basic earnings per share	Diluted profit per share
	Yen	Yen
Nine months ended September 30, 2021	41.61	40.72
Nine months ended September 30, 2020	22.42	21.98

1.2 Consolidated financial position

	Total assets	Total equity	Equity attributable to the owners	Equity ratio attributable to the owners
	Million yen	Million yen	Million yen	%
September 30, 2021	2,327,974	1,047,144	1,043,838	44.8
December 31, 2020	1,608,985	619 661	616,701	38.3

2. Cash dividends

Cash dividends per share

At the end

from the first

trimester

At the end

of a second

trimester

At the end

third

trimester

At the end

of the year

Total

Yen

Year ended

December 31, 2020

—

0.00

—

0.00

End of the year

December 31, 2021

—

0.00

—

End of the year

December 31, 2021

(forecast)

0.00

To note:

Change in cash dividend forecast since last forecast announced: Yes

3. Consolidated earnings forecasts for the year ended December 31, 2021

Returned

Not in accordance with GAAP

Gross margin

Not in accordance with GAAP

Operating margin

Million yen

% pts

Fiscal year ended December 31, 2021

977 986

(± 4000)

36.7

(± 0.6)

52.8

5.4

28.8

9.5

Note 1:

The Group presents its consolidated forecasts for the entire year in the form of a range. Revenue forecasts are provided assuming the midpoint and range of forecasts are shown in parentheses. The gross margin and operating margin forecasts are provided assuming the midpoint of the revenue forecast. For more details, please refer to appendix 1.3. “Consolidated forecasts” on page 6.

Note 2:

Non-GAAP figures are calculated by removing or adjusting non-recurring items and other adjustments to the GAAP figures in accordance with a certain set of rules. The Group believes that non-GAAP measures provide useful information to understand and assess the ongoing business results of the Group 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

Change in significant subsidiaries at September 30, 2021: No

(Changes in certain subsidiaries leading to changes in the scope of consolidation)

4.2	Changes in accounting methods, changes in accounting estimates and corrections of errors from prior periods
	1.	Changes in accounting methods with revision of the accounting standard: No
	2.	Changes in accounting methods with the exception of 4.2.1: No
	3.	Changes in accounting estimates: No

4.3	Number of issued and outstanding shares (ordinary shares)
	1.	Number of issued and outstanding shares (including treasury shares)
			As of September 30, 2021:	1,937,295,290 shares
			As of December 31, 2020:	1,731,898,990 shares

	2.	Number of own shares
			As of September 30, 2021:	2,581 shares
			As of December 31, 2020:	2,581 shares

	3.	Average number of shares issued and outstanding
			Nine months ended September 30, 2021:	1,813,309,523 shares
			Nine months ended September 30, 2020:	1,716,107,309 shares

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

Caution

The Group will host an earnings conference for institutional investors and analysts on October 28, 2021. The Group plans to publish the documents provided at the meeting on the Group’s website that day.

Statements regarding the financial outlook of Renesas Electronics Corporation (hereafter “the Company”) and its consolidated subsidiaries (hereafter “the Group”) are forward-looking statements involving risks and uncertainties. We caution you in advance that actual results may differ materially from these forward-looking statements due to changes in several important factors.

Forward-looking statements

Statements in this press release regarding the plans, strategies and financial prospects 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 these 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 and competitive pressure on the prices of products and services in the market; the ability to continue to gain acceptance for products and services in these highly competitive markets; and fluctuations in exchange rates, particularly between the yen and the US dollar. Among other factors, global economic slowdown; deteriorating financial conditions in global markets or deteriorating domestic and foreign stock markets may cause actual results to differ from expected results.

About Renesas Electronics Corporation

Renesas Electronics Corporation (TSE: 6723) delivers reliable in-vehicle design innovation with complete semiconductor solutions that enable billions of connected smart devices to improve the way people work and live. A global leader in microcontrollers, analog, power and SoC products, Renesas provides complete solutions for a wide range of automotive, industrial, infrastructure and IoT applications that help shape a future without limits. Learn more at renesas.com. Follow us on LinkedIn, Facebook, Twitter, YouTube and Instagram.

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