Renesas Reports Financial Results for the First Quarter Ended March 31, 2024

TOKYO--(BUSINESS WIRE)--Renesas Electronics Corporation (TSE:6723) today announced consolidated financial results in accordance with IFRS for the three months ended March 31, 2024.

Summary of Consolidated Financial Results (Note 1)

Summary of Consolidated Financial Results for the three months ended March 31, 2024 (Non-GAAP basis) (Note 2)
	Three months ended March 31, 2024
	Billion yen	% of Revenue
Revenue	351.8	100.0
Gross profit	199.3	56.7
Operating profit	113.5	32.3
Profit attributable to owners of parent	105.9	30.1
EBITDA (Note 3)	133.8	38.0

Summary of Consolidated Financial Results for the three months ended March 31, 2024 (IFRS basis)
	Three months ended March 31, 2024
	Billion yen	% of Revenue
Revenue	351.8	100.0
Gross profit	197.5	56.1
Operating profit	77.8	22.1
Profit attributable to owners of parent	79.9	22.7
EBITDA (Note 3)	125.7	35.7

Reconciliation of Non-GAAP gross profit to IFRS gross profit and Non-GAAP operating profit to IFRS operating profit
	(Billion yen)
	Three months ended March 31, 2024
Non-GAAP gross profit	199.3
Non-GAAP gross margin	56.7%
Amortization of purchased intangible assets and depreciation of property, plant and equipment	(0.3)
Stock-based compensation	(0.5)
Other reconciliation items in non-recurring expenses and adjustments (Note 4)	(1.1)
IFRS gross profit	197.5
IFRS gross margin	56.1%
Non-GAAP operating profit	113.5
Non-GAAP operating margin	32.3%
Amortization of purchased intangible assets and depreciation of property, plant and equipment	(27.6)
Stock-based compensation	(5.6)
Other reconciliation items in non-recurring expenses and adjustments (Note 4)	(2.5)
IFRS operating profit	77.8
IFRS operating margin	22.1%

Note 1:	All figures are rounded to the nearest 100 million yen.
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.
Note 3:	Operating profit + Depreciation and amortization.
Note 4:	“Other reconciliation items in non-recurring expenses and adjustments” includes the non-recurring items related to acquisitions and other adjustments as well as non-recurring profits or losses the Group believes to be applicable.

RENESAS ELECTRONICS CORPORATION
Consolidated Financial Results for the First Quarter Ended March 31, 2024
English translation from the original Japanese-language document
	April 25, 2024
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	: Tomohiko Sato, Vice President, IR Office Tel. [phone]
Filing date of Shihanki Hokokusho (scheduled)	: May 9, 2024

(Amounts are rounded to the nearest million yen)

1. Consolidated financial results for the three months ended March 31, 2024
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, 2024	351,790	(2.1	)	77,836	(36.9	)	91,752	(28.2	)	80,038	(24.0	)	79,866	(24.1	)	240,929	101.6
Three months ended March 31, 2023	359,374	3.8		123,265	23.5		127,762	62.3		105,271	75.6		105,211	75.7		119,479	(36.6	)

	Basic earnings per share	Diluted earnings per share
	Yen	Yen
Three months ended March 31, 2024	44.90	44.28
Three months ended March 31, 2023	58.50	57.53

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, 2024	3,233,747	2,202,343	2,198,005	68.0
December 31, 2023	3,167,003	2,005,588	2,001,553	63.2

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, 2023	---	0.00	---	28.00	28.00
Year ending December 31, 2024	0.00
Year ending December 31, 2024 (forecast)		---	---	---	---
Note: Change in forecast of cash dividends since the most recently announced forecast: No

3. Forecast of consolidated results for the six months ending June 30, 2024

	Non-GAAP Revenue		Non-GAAP Gross Margin		Non-GAAP Operating Margin
	Million yen	%	%	%pts	%	%pts
Six months ending June 30, 2024	699,290 to 714,290	(4.0) to (1.9)	56.1	(0.7)	31.4	(3.5)

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 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 three months ended March 31, 2024: 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, 2024:	1,870,614,885 shares
		As of December 31, 2023:	1,958,454,023 shares
	2.	Number of treasury stock
		As of March 31, 2024:	90,885,920 shares
		As of December 31, 2023:	181,369,882 shares
	3.	Average number of shares issued and outstanding
		Three months ended March 31, 2024:	1,778,621,860 shares
		Three months ended March 31, 2023:	1,798,535,567 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 25, 2024. 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.

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.