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Renesas Electronics Corporation (TSE: 6723) reported significant financial improvements for the year ended December 31, 2021. Revenue surged by 38.9% to 994.4 billion yen, driven by recovery in automotive sales and industrial demand. Operating profit increased by 181.5% to 183.3 billion yen, while profit before tax rose by 133.4% to 152.2 billion yen. The results reflect Renesas' strategic acquisition of Dialog and enhanced operational efficiencies.
Positive
Revenue increased by 38.9% year-on-year to 994,418 million yen.
Operating profit surged by 181.5% to 183,349 million yen.
Profit attributable to owners rose by 178.4% to 127,041 million yen.
Increased demand in the Automotive and Industrial sectors contributed to growth.
Negative
None.
TOKYO--(BUSINESS WIRE)--
Renesas Electronics Corporation (TSE: 6723, “Renesas”), a premier supplier of advanced semiconductor solutions, today announced the difference between its consolidated financial results for the year ended December 31, 2021 (January 1, 2021 to December 31, 2021), which it disclosed on February 9, 2022, and the financial results in the previous period (January 1, 2020 to December 31, 2020).
The revenue forecast for the above period is disclosed based on the International Financial Reporting Standards (IFRS) On the other hand, other forecasts, including operating profit, are not based on IFRS so the differences are shown as the actual figures.
1. Difference between consolidated financial results for the year ended December 31, 2021 and the year ended December 31, 2020
In millions of yen
Revenue
(Note)
Operating
Profit
Profit before tax
from continuing
operations
Profit
Profit attributable
to owners of parent
Year ended December 31, 2020
715,673
65,142
65,216
45,726
45,626
Year ended December 31, 2021
994,418
183,349
152,205
127,192
127,041
Difference
278,745
118,207
86,989
81,466
81,415
Difference (%)
38.9%
181.5%
133.4%
178.2%
178.4%
(Note) The previous revenue forecast for the year ended December 31, 2021, announced on October 28, 2021, was 977,986 million yen. The actual revenue for the period announced today increased by 16,432 million yen (a 1.7% increase) from the October 28 forecast.
2. Background to the difference
Consolidated revenue for the year ended December 31, 2021 was 994.4 billion yen, a 38.9% increase year on year. This was mainly due to an increase in revenue in the Automotive Business as a result of the recovery from the reduced vehicle production caused by the COVID-19 pandemic mostly during the first half of the fiscal year ended 2020, in addition to an increase in revenue capturing demand expansion in the Industrial/Infrastructure/IoT Business and a sales increase effect from the consolidation of Dialog following the completion of the acquisition on August 31, 2021.
The gross profit increased not only from the growth in sales, but also from improvements in the product mix and the factory utilization rate. Renesas also made efforts to streamline selling, general and administrative expenses. As a result, the financial results of the operating profit, profit before tax from continuing operations, profit, and profit attributable to owners of the parent for the year ended December 31, 2021 significantly exceeded the results from the previous period.
About Renesas Electronics Corporation
Renesas Electronics Corporation (TSE: 6723) delivers trusted embedded design innovation with complete semiconductor solutions that enable billions of connected, intelligent devices to enhance the way people work and live. A global leader in microcontrollers, analog, power, and SoC products, Renesas provides comprehensive solutions for a broad range of automotive, industrial, infrastructure, and IoT applications that help shape a limitless future. 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 Electronics 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.
What were Renesas Electronics' financial results for 2021?
Renesas Electronics reported revenue of 994.4 billion yen, an increase of 38.9% from 2020, and operating profit of 183.3 billion yen, a rise of 181.5%.
How did the acquisition of Dialog impact Renesas' financial performance?
The acquisition of Dialog contributed to revenue growth by enhancing Renesas' offerings and market position.
What factors contributed to Renesas' revenue growth in 2021?
The increase was primarily due to recovery in automotive sales and expansion in the Industrial/Infrastructure/IoT business segments.
What percentage increase did Renesas see in profit attributable to owners in 2021?
Profit attributable to owners of the parent rose by 178.4% in 2021.
What is Renesas' stock symbol?
Renesas Electronics Corporation is traded under the stock symbol TSE: 6723.
