Earnings Report for the 3rd Quarter ended September 30, 2021

Media Contacts	Investor Contacts
Kyoko Okamoto	Shigeo Muto
Renesas Electronics Corporation	Renesas Electronics Corporation
[phone]	[phone]
[e-mail]	[e-mail]

Renesas Reports Financial Results

for the Third Quarter Ended September 30, 2021

TOKYO, Japan, October 28, 2021 - 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)

Revenue Operating profit

Profit attributable to owners of parent

Capital expenditures (Note 2) Depreciation and others R&D expenses (Note 3)

Exchange rate (USD)

Exchange rate (EUR)

Three months ended	Nine months ended
September 30, 2021	September 30, 2021
Billion Yen	% of Revenue	Billion Yen % of Revenue
258.4	100.0	680.0	100.0
53.8	20.8	119.5	17.6
37.8	14.6	75.5	11.1
21.2		71.8
34.4		100.1
39.9		107.1
Yen		Yen
110		108
131		129

	As of September 30, 2021
	Billion Yen
Total assets	2,328.0
Total equity	1,047.1
Equity attributable to owners of	1,043.8
parent
Equity ratio attributable to	44.8
owners of parent (%)
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' Consolidated Financial Results for the Third Quarter Ended September 30, 2021

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. [phone]
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)
																				Profit		Total
			Revenue		Operating				Profit			Profit	attributable to
									comprehensive
							profit			before tax						owners of	income
																				parent
			Million	%		Million	%		Million	%		Million	%	Million	%	Million	%
	Nine months	yen			yen				yen				yen		yen		yen
	ended
	September 30,	679,986	29.7	119,485	149.9	100,781	116.3		75,685	96.6	75,457		96.1	183,386	---
	2021
	Nine months
	ended	524,093	(0.4)		47,818	---		46,592	---		38,488	---	38,471		---	(3,930)	---
	September 30,
	2020
								Basic				Diluted
								earnings			earnings
								per share			per share
									Yen			Yen
		Nine months ended						41.61			40.72
		September 30, 2021
		Nine months ended						22.42			21.98
		September 30, 2020
1.2 Consolidated financial position
				Total assets	Total equity		Equity		Ratio of equity
				attributable to		attributable to
														owners		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

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

2. Cash dividends

			Cash dividends per share
	At the end		At the end		At the end		At the end		Total
	of first		of second		of third
				of year
	quarter		quarter		quarter
	Yen		Yen		Yen		Yen		Yen
Year ended	---	0.00	---	0.00	0.00
December 31, 2020
Year ending	---	0.00	---
December 31, 2021
Year ending							0.00	0.00
December 31, 2021
(forecast)

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

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

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)
2. Changes in Accounting Policies, Changes in Accounting Estimates and Corrections of Prior Period Errors
3. 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. Number of shares issued and outstanding (common stock)
5. 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.

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

[APPENDIX]
1. Business Results	2
1.1	Analysis of Business Results	2
1.2	Consolidated Financial Condition	5
1.3	Consolidated Forecasts	6
1.4	Forecasts of Cash Dividends	6
2. Condensed Consolidated Financial Statements	7
2.1	Condensed Consolidated Statement of Financial Position	7
2.2	Condensed Consolidated Statement of Profit or Loss and
	Consolidated Statement of Comprehensive Income	9
2.3	Condensed Consolidated Statement of Changes in Equity	13
2.4	Condensed Consolidated Statement of Cash Flows	15
2.5	Notes to Condensed Consolidated Financial Statements	16
(Notes about Going Concern Assumption)	16
(Basis for Preparation)	16
(Basis of Condensed Consolidated Financial Statements)	16
(Significant Accounting Policies)	16
(Significant Accounting Estimates and Judgments)	16
(Business Segments)	17
(Business Combinations)	20
(Trade and Other Receivables)	22
(Assets held for sale and liabilities directly related to assets held for sale)	22
(Trade and Other Payables)	23
(Bonds and borrowings)	23
(Equity and Other Equity Items)	23
(Revenue)	23
(Selling, General and Administrative Expenses)	24
(Other Income)	25
(Other Expenses)	25
(Additional Information)	26
(Subsequent Events)	27

1

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

1. Business Results

1.1 Analysis of Business Results

The Group discloses consolidated business results in terms of both its internal measures which the management relies upon in making decisions (hereinafter the "Non-GAAP" financial measures) and those under IFRS.

Non-GAAP gross profit and Non-GAAP operating profit are gross profit and operating profit under IFRS (hereinafter "IFRS gross profit" and "IFRS operating profit") after excluding or adjusting non-recurring items and other adjustments following a certain set of rules. The Group believes providing non-GAAP forecasts will help to better understand the Group's constant business results. Non-recurring items include depreciation of intangible assets recognized from acquisitions, other purchase price allocation (hereinafter "PPA") adjustments and stock-based compensation as well as other non-recurring expenses and income the Group believes to be applicable.

The Group consists of "Automotive Business" and "Industrial/Infrastructure/IoT Business" and those are the Group's reportable segments. For details, please refer to Appendix 2 "Condensed Consolidated Financial Statements, 2.5 Notes to Condensed Consolidated Financial Statements (Business Segments)."

(Note 1): For disclosure of Non-GAAP financial measures, the Group refers to the rules specified by the U.S. Securities and Exchange Commission but does not fully comply with such rules.

1. Summary of Consolidated Financial Results for the Nine Months ended September 30, 2021 (Non-GAAP basis)

		Nine months ended	Nine months ended	Increase
		September 30, 2020	September 30, 2021
		(Decrease)
		(Jan 1 - Sep 30, 2020)	(Jan 1 - Sep 30, 2021)
		Billion yen	Billion yen	Billion	%
		yen	Change
Revenue (Note 2)	524.1	680.0	155.9	29.7%
	Automotive	245.7	330.7	84.9	34.6%
	Industrial/Infrastructure/IoT	270.8	336.1	65.3	24.1%
Non-GAAP Gross Profit	248.6	358.2	109.6	44.1%
Non-GAAP Gross Margin	47.4%	52.7%	5.2pts	---
	Automotive	92.4	149.9	57.5	62.3%
	37.6%	45.3%	7.7pts	--
	Industrial/Infrastructure/IoT	155.4	206.2	50.8	32.7%
	57.4%	61.4%	4.0pts	---
Non-GAAP Operating Profit	100.4	197.9	97.5	97.1%
Non-GAAP Operating Margin	19.2%	29.1%	9.9pts	---
	Automotive	33.0	83.3	50.3	152.7%
	13.4%	25.2%	11.8pts	---
	Industrial/Infrastructure/IoT	68.3	107.0	38.6	56.5%
	25.2%	31.8%	6.6pts	---

Note 1: For details on the above table, please refer to Appendix 2 "Condensed Consolidated Financial Statements, 2.5. Notes to Condensed Consolidated Financial Statements (Business Segments)."

Note 2: Consolidated revenue for the nine months ended September 30, 2020 and September 30, 2021 are based on IFRS and do not include non-GAAP adjustments.

The financial results for the nine months ended September 30, 2021 are as follows:

Consolidated revenue for the nine months ended September 30, 2021 was 680.0 billion yen, a 29.7% increase year on year. This was due to an increase in revenue capturing demand expansion in the Industrial/Infrastructure/IoT Business and a sales increase effect from the consolidation of Dialog following the completion of the acquisition on August 31, 2021, in addition to an increase in revenue in the Automotive Business as a result of the recovery from the reduced vehicle production caused by the COVID-19 pandemic mostly during the first half of the fiscal year ended 2020. It should be noted that as of September 14, 2021, Dialog has changed its company name to Dialog Semiconductor Limited.

<> Gross Profit (Margin)>

Non-GAAP gross profits for the nine months ended September 30, 2021 was 358.2 billion yen, a 109.6 billion yen increase year on year. This was mainly due to increases in revenue for both Automotive and Industrial/Infrastructure/IoT Businesses as well as an increase in gross margin mainly from improvements in product mix and the factory utilization rate. As a result, non-GAAP gross margin for the nine months ended September 30, 2021 was 52.7%, an increase by 5.2 points year on year.

<> Operating Profit (Margin)>

2

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