Renesas Reports Financial Results for the Year Ended December 31, 2022

Rhea-AI Summary

Renesas Electronics Corporation reported its consolidated financial results for the year ending December 31, 2022, revealing significant growth. Revenue surged by 51% to ¥1,500.9 billion, with operating profit increasing 144% to ¥424.2 billion. Profit attributable to owners rose 114.7% to ¥256.6 billion, reflecting strong operational efficiency. However, R&D expenses were substantial at ¥206.7 billion. The company reported a 54.5% equity ratio and total assets of ¥2,812.3 billion. Renesas plans to reassess its dividend strategy for 2023, leaving future payouts undecided. Overall, the results indicate a robust financial performance amidst ongoing investments in growth.

Positive

• Revenue increased by 51% to ¥1,500.9 billion.
• Operating profit rose 144% to ¥424.2 billion.
• Profit attributable to owners increased 114.7% to ¥256.6 billion.
• Equity ratio improved to 54.5%, indicating financial stability.

Negative

• R&D expenses remain high at ¥206.7 billion, impacting net earnings.
• Future dividend payments for 2023 remain undecided, causing uncertainty for investors.

TOKYO--(BUSINESS WIRE)-- Renesas Electronics Corporation (TSE:6723) today announced consolidated financial results in accordance with IFRS for the year ended December 31, 2022.

Summary of Consolidated Financial Results (Note 1)

	Year ended December 31, 2022
	Billion Yen	% of Revenue
Revenue	1,500.9	100.0
Operating profit	424.2	28.3
Profit attributable to owners of parent	256.6	17.1
Capital expenditures (Note 2)	216.4
Depreciation and amortization	186.0
R&D expenses (Note 3)	206.7
	Yen
Exchange rate (USD)	130
Exchange rate (EUR)	137

	As of December 31, 2022
	Billion Yen
Total assets	2,812.3
Total equity	1,537.5
Equity attributable to owners of parent	1,533.8
Equity ratio attributable to owners of parent (%)	54.5
Interest-bearing liabilities	770.0

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 year ended December 31, 2022. However, the investments from Dialog Semiconductor Limited (hereinafter “Dialog”) and Celeno Communications Inc. (hereinafter “Celeno”) are listed as an input basis.
Note 3:		R&D expenses include capitalized R&D expenses recorded as intangible assets.
Note 4:		The allocation of the acquisition costs for the business combinations with Dialog and Celeno has been revised at the end of the three months ended March 31, 2022 and at the end of the three months ended June 30, 2022, respectively. These revisions to the allocation of the acquisition costs (PPA) have 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 Year Ended December 31, 2022 English translation from the original Japanese-language document
	February 9, 2023
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 Yukashoken Hokokusho (scheduled)	: March 30, 2023

(Amounts are rounded to the nearest million yen)

1. Consolidated financial results for the year ended December 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	%
Year ended December 31, 2022	1,500,853	51.0	424,170	144.0	362,299	153.9	256,787	114.5	256,632	114.7	565,984	98.5
Year ended December 31, 2021	993,908	---	173,827	---	142,718	---	119,687	---	119,536	---	285,078	---

	Basic earnings per share	Diluted earnings per share	Net income per equity attributable to owners	Profit before tax ratio per net assets	Operating profit ratio per revenue
`	Yen	Yen	%	%	%
Year ended
December 31, 2022	137.67	134.85	19.1	13.8	28.3
Year ended
December 31, 2021	64.77	63.35	13.5	7.1	17.5

1.2 Consolidated financial position

	Total assets	Total equity	Equity attributable to owners	Ratio of equity attributable to owners	Equity attributable to owners per share
	Million yen	Million yen	Million yen	%	Yen
December 31, 2022	2,812,272	1,537,478	1,533,750	54.5	853.52
December 31, 2021	2,426,301	1,153,398	1,150,081	47.4	591.67

1.3 Consolidated cash flows

	Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at the end of the year
	Million yen	Million yen	Million yen	Million yen
Year ended
December 31, 2022	479,325	(97,523)	(294,770)	336,068
Year ended
December 31, 2021	307,384	(663,126)	340,915	221,924

2. Cash dividends

	Cash dividends per share					Total dividend during the year	Dividends payout ratio (consolidated)	Dividends ratio per assets (consolidated)
	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	---	0.00	---	0.00	0.00	---	---	---
Year ending December 31, 2023 (forecast)	---	---	---	---	---		---

Note: For the year ending December 31, 2023, whether the Group provides dividend payments remains undecided.

3. Forecast of consolidated results for the three months ending March 31, 2023

	Non-GAAP Revenue		Non-GAAP Gross Margin		Non-GAAP Operating Margin
	Million yen	%	%	%pts	%	%pts
Three months ending March 31, 2023	347,500 to 362,500	0.2 to 4.6	54.5	-3.9	32.5	-6.6

Note 1:		The Group reports its consolidated forecast on a quarterly basis 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 full year ended December 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 December 31, 2022: 1,958,454,023 shares
				As of December 31, 2021: 1,943,805,775 shares
			2. Number of treasury stock
				As of December 31, 2022: 161,488,167 shares
				As of December 31, 2021: 2,581 shares
			3. Average number of shares issued and outstanding
				Year ended December 31, 2022: 1,864,152,116 shares
				Year ended December 31, 2021: 1,845,523,704 shares

(Reference) Non-consolidated results for the year ended December 31, 2022

Non-consolidated financial results

	Net sales		Operating income		Ordinary income		Net income
	Million yen	%	Million yen	%	Million yen	%	Million yen	%
Year ended
December 31, 2022	1,075,144	39.4	350,991	112.7	279,485	115.2	212,647	86.7
Year ended
December 31, 2021	771,277	36.8	165,006	233.7	129,862	145.8	113,928	140.1

	Net income per share: basic	Net income per share: diluted
	Yen	Yen
December 31, 2022	114.07	111.73
December 31, 2021	61.73	60.38

Non-consolidated financial position

	Total assets	Net assets	Equity ratio	Net assets per share
	Million yen	Million yen	%	Yen
December 31, 2022	2,553,295	940,437	36.5	498.75
December 31, 2021	2,385,940	913,301	37.7	463.03

Reference:		Equity at the end of the year ended December 31, 2022: 932,835 million yen
		Equity at the end of the year ended December 31, 2021: 900,032 million yen
(Note)		Information regarding the implementation of audit procedures: These financial results are not subject to audit review procedures.

Cautionary Statement The Group will hold an earnings conference for institutional investors and analysts on February 9, 2023. 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 and Celeno has been revised at the end of the three months ended March 31, 2022 and at the end of the three months ended June 30, 2022, respectively. These revisions to the allocation of the acquisition costs (PPA) have 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 Consolidated Financial Statements (Business Combinations)” on page 18.

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.

(FORWARD-LOOKING STATEMENTS)

The statements in this press release with respect to the plans, strategies and financial outlook of Renesas and its consolidated subsidiaries (collectively “we”) are forward-looking statements involving risks and uncertainties. Such forward-looking statements do not represent any guarantee by management of future performance. In many cases, but not all, we use such words as “aim,” “anticipate,” “believe,” “continue,” “endeavor,” “estimate,” “expect,” “initiative,” “intend,” “may,” “plan,” “potential,” “probability,” “project,” “risk,” “seek,” “should,” “strive,” “target,” “will” and similar expressions to identify forward-looking statements. You can also identify forward-looking statements by discussions of strategy, plans or intentions. These statements discuss future expectations, identify strategies, contain projections of our results of operations or financial condition, or state other forward-looking information based on our current expectations, assumptions, estimates and projections about our business and industry, our future business strategies and the environment in which we will operate in the future. Known and unknown risks, uncertainties and other factors could cause our actual results, performance or achievements to differ materially from those contained or implied in any forward-looking statement, 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.

This press release is based on the economic, regulatory, market and other conditions as in effect on the date hereof. It should be understood that subsequent developments may affect the information contained in this presentation, which neither we nor our advisors or representatives are under an obligation to update, revise or affirm.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230208006049/en/

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

Source: Renesas Electronics Corporation

FAQ

What were Renesas Electronics' revenue and profit for the year ended December 31, 2022?

Renesas Electronics reported revenue of ¥1,500.9 billion and profit attributable to owners of ¥256.6 billion for the year ended December 31, 2022.

How did Renesas Electronics perform in terms of operating profit in 2022?

The company's operating profit for 2022 was ¥424.2 billion, an increase of 144% compared to the previous year.

What is the equity ratio of Renesas Electronics as of December 31, 2022?

As of December 31, 2022, Renesas Electronics reported an equity ratio of 54.5%.

What are the expected non-GAAP revenue figures for Renesas Electronics for Q1 2023?

Renesas Electronics expects non-GAAP revenue for the three months ending March 31, 2023, to be between ¥347,500 million and ¥362,500 million.

What is the outlook for dividends from Renesas Electronics in 2023?

The company has not yet decided on dividend payments for 2023, creating uncertainty for shareholders.