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

Rhea-AI Summary

Renesas Electronics Corporation reported strong consolidated financial results for the three months ended March 31, 2022, with revenues of 346.7 billion yen, representing a 70.2% increase year-over-year. Operating profit surged 231.5% to 100.1 billion yen, while profit attributable to owners rose by 333.4% to 59.8 billion yen. Total assets grew to 2.6 trillion yen, and equity attributable to owners increased to 1.35 trillion yen. R&D expenses amounted to 45.6 billion yen.

Positive

• Revenue increased by 70.2% year-over-year.
• Operating profit rose by 231.5%.
• Profit attributable to owners increased by 333.4%.
• Total assets grew to 2.6 trillion yen.

Negative

• No dividends paid for the first quarter of 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	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	Million yen	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	Yen	Yen	Yen	Yen
Year ended December 31, 2021	---	0.00	---	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	%	%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.

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. For details, please refer to Appendix 1.5, “Notes to Quarterly Consolidated Financial Statements (Business Combinations)” on page 12.

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.

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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

Source: Renesas Electronics Corporation

FAQ

What were Renesas Electronics' earnings for Q1 2022?

Renesas Electronics reported a profit attributable to owners of 59.8 billion yen for Q1 2022.

How did Renesas Electronics' revenue change in Q1 2022?

Revenue for Q1 2022 increased by 70.2% compared to the previous year, reaching 346.7 billion yen.

What is the forecast for Renesas Electronics' revenue in H1 2022?

The forecast for revenue in the six months ending June 30, 2022, is approximately 721.7 billion yen.

What was the operating profit for Renesas Electronics in Q1 2022?

The operating profit for Q1 2022 was 100.1 billion yen, marking a 231.5% increase from the previous year.