Renesas Reports Financial Results for the Year Ended December 31, 2021

Rhea-AI Summary

Renesas Electronics Corporation reported strong consolidated financial results for the year ended December 31, 2021. Revenue reached ¥994.4 billion, a 38.9% increase year-over-year, with operating profit soaring to ¥183.6 billion, up 181.8%. Profit attributable to owners of the parent was ¥127.3 billion, reflecting a significant 178.6% growth. Total assets were ¥2.41 trillion, with an equity ratio of 48.1%. Despite this strong performance, no dividends were declared for 2021, and the forecast for the next quarter indicates revenue of ¥336 billion with a gross margin of 65%.

Positive

• Revenue increased by 38.9% to ¥994.4 billion.
• Operating profit grew 181.8% to ¥183.6 billion.
• Profit attributable to owners rose 178.6% to ¥127.3 billion.
• Total assets reached ¥2.41 trillion, with a healthy equity ratio of 48.1%.

Negative

• No dividends were declared for the year ended December 31, 2021.
• Future revenue forecast of ¥336 billion is lower compared to the strong performance in 2021.

TOKYO--(BUSINESS WIRE)-- Renesas Electronics Corporation (TSE:6723) today announced consolidated financial results in accordance with IFRS for the year ended December 31, 2021.

Summary of Consolidated Financial Results (Note 1)

	Year ended December 31, 2021
	Billion Yen		% of Revenue
Revenue	994.4		100.0
Operating profit	183.6		18.5
Profit attributable to owners of parent	127.3		12.8
Capital expenditures (Note 2)	88.0
Depreciation and others (Note 3)	136.5
R&D expenses (Note 4)	156.3
	Yen
Exchange rate (USD)	109
Exchange rate (EUR)	130

	As of December 31, 2021
	Billion Yen
Total assets	2,406.2
Total equity	1,161.5
Equity attributable to owners of parent	1,158.1
Equity ratio attributable to owners of parent (%)	48.1
Interest-bearing liabilities	830.9

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, 2021. However, the investments from the former Dialog Semiconductors Plc (hereinafter Dialog) are listed as an input basis.
Note 3:		Depreciation and others includes depreciation of property, plant and equipment, amortization of intangible assets and amortization of long-term prepaid expenses in consolidated statements of cash flows.
Note 4:		R&D expenses includes capitalized R&D expenses recorded as intangible assets.

RENESAS ELECTRONICS CORPORATION
Consolidated Financial Results for the Year Ended December 31, 2021
English translation from the original Japanese-language document
	February 9, 2022
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	: Masayuki Nagayama, Vice President, CEO Office Tel. +81 (0)3-6773-3002
Filing date of Yukashoken Hokokusho (scheduled)	: March 30, 2022

(Amounts are rounded to the nearest million yen)

1. Consolidated financial results for the year ended December 31, 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		%
Year ended December 31, 2021	994,418		38.9	183,601		181.8	152,463		133.8	127,412		178.6	127,261		178.9	165,728		---
Year ended December 31, 2020	715,673		(0.4)	65,142		940.1	65,216		---	45,726		---	45,626		---	(19,228)		---

	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, 2021	68.96	67.44	14.3	7.6	18.5
Year ended December 31, 2020	26.54	25.97	7.4	4.0	9.1

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, 2021	2,406,247	1,161,460	1,158,143	48.1	595.8
December 31, 2020	1,608,985	619,661	616,701	38.3	356.1

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, 2021	307,384	(663,126)	340,915	221,924
Year ended December 31, 2020	223,889	(40,163)	(104,470)	219,786

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, 2020	---	0.00	---	0.00	0.00	---	---	---
Year ending December 31, 2021	---	0.00	---	0.00	0.00	---	---	---
Year ending December 31, 2022 (forecast)	---	---	---	---	---		---
Note: For the year ending December 31, 2022, whether the Group provides dividend payments remains undecided.

3. Forecast of consolidated results for the three months ending March 31, 2022

	Revenue		Non-GAAP Gross Margin		Non-GAAP Operating Margin
	Million yen	%	%	%pts	%	%pts
	336,000	65.0	55.5	5.3	34.5	8.7
Three months ending March 31, 2022	(±4,000)	(±2.0)

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. For details, please refer to Appendix 1.4 Consolidated Forecasts on page 6.
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 full year ended December 31, 2021: Yes
		(Changes in specified subsidiaries resulting in changes in scope of consolidation)
		New: 1 (Company name) Celeno Communications Inc. (hereinafter “Celeno”)
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, 2021:	1,943,805,775 shares
		As of December 31, 2020:	1,731,898,990 shares
		2. Number of treasury stock
		As of December 31, 2021:	2,581 shares
		As of December 31, 2020:	2,581 shares
		3. Average number of shares issued and outstanding
		Year ended December 31, 2021:	1,845,523,704 shares
		Year ended December 31, 2020:	1,719,344,659 shares

(Reference) Non-consolidated results for the year ended December 31, 2021

Non-consolidated financial results

	Net sales			Operating income			Ordinary income			Net income
	Million yen		%	Million yen		%	Million yen		%	Million yen		%
Year ended December 31, 2021	771,277		36.8	165,006		233.7	129,862		145.8	113,928		140.1
Year ended December 31, 2020	563,908		1.7	49,447		46.2	52,843		223.2	47,458		178.7

	Net income per share: basic	Net income per share: diluted
	Yen	Yen
December 31, 2021	61.73	60.38
December 31, 2020	27.60	27.01

Non-consolidated financial position

	Total assets	Net assets	Equity ratio	Net assets per share
	Million yen	Million yen	%	Yen
December 31, 2021	2,385,940	913,301	37.7	463.03
December 31, 2020	1,628,721	566,100	33.8	317.65

Reference:		Equity at the end of the year ended December 31, 2021: 900,032 million yen
		Equity at the end of the year ended December 31, 2020: 550,141 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, 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.

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/20220208006301/en/

Media Contacts

Kyoko Okamoto

Renesas Electronics Corporation

+81 3-6773-3001

pr@renesas.com

Investor Contacts

Toshio Ninomiya

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, 2021?

Renesas Electronics reported revenue of ¥994.4 billion and a profit attributable to owners of ¥127.3 billion for the year ended December 31, 2021.

What is the forecast for Renesas Electronics' revenue for the first quarter of 2022?

The forecast for Renesas Electronics' revenue for the first quarter of 2022 is ¥336 billion.

Did Renesas Electronics declare any dividends for the year 2021?

No, Renesas Electronics did not declare any dividends for the year ended December 31, 2021.

How much did Renesas Electronics increase its operating profit in 2021?

Renesas Electronics increased its operating profit by 181.8% to ¥183.6 billion in 2021.

What was Renesas Electronics' equity ratio as of December 31, 2021?

Renesas Electronics' equity ratio as of December 31, 2021, was 48.1%.