Notice Concerning the Difference between Financial Results for the Year Ended December 31, 2023 and Results in the Previous Period

TOKYO–(BUSINESS WIRE)–#Renesas–Renesas Electronics Corporation (TSE: 6723, “Renesas”), a premier supplier of advanced semiconductor solutions, today announced the difference between its consolidated financial results for the year ended December 31, 2023 (January 1, 2023 to December 31, 2023), which it disclosed on February 8, 2024, and the financial results in the previous period (January 1, 2022 to December 31, 2022).

The forecasts for the above period are not based on IFRS, therefore the differences are shown as the actual figures.

1. Difference between consolidated financial results for the year ended December 31, 2023 and the year ended December 31, 2022

In millions of yen
	Revenue	Operating Profit	Profit Before Tax	Profit	Profit Attributable to Owners of Parent
Year ended December 31, 2022	1,500,853	424,153	362,282	256,770	256,615
Year ended December 31, 2023	1,469,415	390,766	422,173	337,311	337,086
Difference	-31,438	-33,387	59,891	80,541	80,471
Difference (%)	-2.1%	-7.9%	+16.5%	+31.4%	+31.4%

2. Background to the difference

Consolidated revenue for the year ended December 31, 2023 was 1,469.4 billion yen, a 2.1% decrease year on year. While revenue from the Automotive Business increased driven by the weakening yen, the overall revenue declined mainly due to a decrease in revenue from the Industrial, Infrastructure, and IoT Businesses, attributable to the softening demand in markets such as PC/mobile phones and consumer electronics.

Gross profit for the year ended December 31, 2023 decreased due to decline in revenue accompanied by factors such as a deterioration in product mix. Combined with increase in R&D expenses and other factors, operating profit decreased by 33.4 billion yen from the previous year. On the other hand, profit attributable to owners of parent increased by 80.5 billion yen year on year, primarily caused by reduced foreign exchange loss due to a change in the method of cash management among group companies.

About Renesas Electronics Corporation

Renesas Electronics Corporation (TSE: 6723) empowers a safer, smarter and more sustainable future where technology helps make our lives easier. The 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.

Contacts

Media Contacts:
Kyoko Okamoto

Renesas Electronics Corporation

+81 3-6773-3001

pr@renesas.com

Investor Contacts:
Yuma Nakanishi

Renesas Electronics Corporation

+81 3-6773-3002

ir@renesas.com