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

Rhea-AI Summary

Renesas Electronics Corporation (TSE:6723) reported strong consolidated financial results for the nine months ended September 30, 2021, with revenue reaching 680 billion yen, up 29.7% from the previous year. Operating profit surged to 119.5 billion yen, marking a remarkable 149.9% increase, while profit attributable to owners reached 75.5 billion yen or 96.1% growth. The company’s total assets stood at 2.33 trillion yen, with an equity ratio of 44.8%. Renesas anticipates full-year revenue of 978 billion yen.

Positive

• Revenue increased by 29.7% to 680 billion yen.
• Operating profit rose significantly by 149.9% to 119.5 billion yen.
• Profit attributable to owners increased by 96.1% to 75.5 billion yen.
• Total assets reached 2.33 trillion yen, with an equity ratio of 44.8%.
• Full-year revenue forecast set at 978 billion yen.

Negative

• Cash dividends per share remain at 0.00 yen, indicating no returns to shareholders.

TOKYO--(BUSINESS WIRE)-- Renesas Electronics Corporation (TSE:6723) today announced consolidated financial results in accordance with IFRS for the nine months 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		% of Revenue		Billion Yen		% of Revenue
Revenue		258.4		100.0		680.0		100.0
Operating profit		53.8		20.8		119.5		17.6
Profit attributable to owners of parent		37.8		14.6		75.5		11.1
Capital expenditures (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		1,047.1
Equity attributable to owners of parent		1,043.8
Equity ratio attributable to owners of parent (%)		44.8
Interest-bearing liabilities		897.6

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 nine months ended September 30, 2021. However, the investments from the former Integrated Device Technology, Inc. and Dialog Semiconductors Plc (hereinafter Dialog) are listed as an input basis.
Note 3:		R&D expenses includes capitalized R&D expenses recorded as intangible assets.

RENESAS ELECTRONICS CORPORATION Consolidated Financial Results for the Third Quarter Ended September 30, 2021 English translation from the original Japanese-language document
October 28, 2021
Company name		: Renesas Electronics Corporation
Stock exchanges on which the shares are listed		: Tokyo Stock Exchange, First Section
Code number		: 6723
URL		: https://www.renesas.com
Representative		: Hidetoshi Shibata, President and CEO
Contact person		: Fujiko Yamaguchi, Vice President, CEO Office Tel. +81 (0)3-6773-3002
Filing date of Shihanki Hokokusho (scheduled)		: November 11, 2021

(Amounts are rounded to the nearest million yen)

1. Consolidated financial results for the nine months ended September 30, 2021

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		%
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 earnings 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 owners		Ratio of equity attributable to 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 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, 2020	---	0.00	---	0.00	0.00
Year ending December 31, 2021	---	0.00	---
Year ending December 31, 2021 (forecast)				0.00	0.00

Note:

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

3. Forecast of consolidated results for the full year ending December 31, 2021

		Revenue				Non-GAAP Gross Margin				Non-GAAP Operating Margin
		Million yen		%		%		%pts		%		%pts
Full year ending December 31 2021		977,986 (±4,000)		36.7 (±0.6)		52.8		5.4		28.8		9.5

Note 1:		The Group reports its consolidated forecast for the full year as a range. 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. For 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 from GAAP 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 nine months ended September 30, 2021: 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 September 30, 2021:		1,937,295,290 shares
				As of December 31, 2020:		1,731,898,990 shares
		2.	Number of treasury stock
				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 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 October 28, 2021. 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) 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211027006258/en/

Media Contacts

Kyoko Okamoto

Renesas Electronics Corporation

+81 3-6773-3001

pr@renesas.com

Investor Contacts

Shigeo Muto

Renesas Electronics Corporation

+81 3-6773-3002

ir@renesas.com

Source: Renesas Electronics Corporation

FAQ

What were Renesas Electronics' earnings results for Q3 2021?

Renesas Electronics reported Q3 2021 revenue of 258.4 billion yen and operating profit of 53.8 billion yen.

What is Renesas Electronics' full-year revenue forecast for 2021?

The company forecasts full-year revenue of approximately 978 billion yen.

How did Renesas Electronics' profit change compared to the previous year?

Profit attributable to owners increased by 96.1% to 75.5 billion yen for the nine months ended September 30, 2021.

What was the equity ratio of Renesas Electronics as of September 30, 2021?

The equity ratio attributable to owners of Renesas Electronics was 44.8% as of September 30, 2021.