Media Contacts Investor Contacts Kyoko Okamoto Shigeo Muto Renesas Electronics Corporation Renesas Electronics Corporation +81 3-6773-3001 +81 3-6773-3002 [email protected] [email protected] Renesas Electronics Reports Financial Results for the Year Ended December 31, 2020 TOKYO, Japan, February 10, 2021 — Renesas Electronics Corporation (TSE:6723) today announced consolidated financial results in accordance with IFRS for the year ended December 31, 2020. Summary of Consolidated Financial Results (Note 1) Year ended December 31, 2020 Billion Yen % of Revenue Revenue 715.7 100.0 Operating profit 65.1 9.1 Profit attributable to owners of 45.6 6.4 parent Capital expenditures (Note 2) 22.2 Depreciation and others (Note 3) 141.5 R&D expenses (Note 4) 135.1 Yen Exchange rate (USD) 107 Exchange rate (EUR) 121 As of December 31, 2020 Billion Yen Total assets 1,609.0 Total equity 619.7 Equity attributable to owners of 616.7 parent Equity ratio attributable to 38.3 owners of parent (%) Interest-bearing liabilities 693.7 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, 2020. From the quarter ended March 31, 2020, capital expenditures include former Integrated Device Technology, Inc. (hereinafter “IDT”)’s investments as well as investments including fixed costs of masks and tools. 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’ Consolidated Financial Results for the Year Ended December 31, 2020 RENESAS ELECTRONICS CORPORATION Consolidated Financial Results for the Year Ended December 31, 2020 English translation from the original Japanese-language document February 10, 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, Representative Director, President and CEO Contact person : Fujiko Yamaguchi, Vice President, CEO Office Tel. +81 (0)3-6773-3002 Filing date of Yukashoken Hokokusho (scheduled) : March 31, 2021 (Amounts are rounded to the nearest million yen) 1. Consolidated financial results for the year ended December 31, 2020 1.1 Consolidated financial results (% of change from corresponding period of the previous year) Profit (loss) Total Profit (loss) Profit attributable to Revenue Operating profit comprehensive before tax (loss) owners of income parent Million % Million % Million % Million % Million % Million % yen yen yen yen yen yen Year ended December 31, 2020 715,673 (0.4) 65,142 940.1 65,216 --- 45,726 --- 45,626 --- (19,228) --- Year ended December 31, 2019 718,243 (5.1) 6,263 --- (325) --- (6,228) --- (6,317) --- (22,027) --- Basic Diluted Net income Profit before Operating earnings earnings per equity tax ratio per profit ratio (loss) (loss) attributable net assets per revenue per share per share to owners Yen Yen % % % Year ended December 31, 2020 26.54 25.97 7.4 4.0 9.1 Year ended December 31, 2019 (3.73) (3.73) (1.0) (0.0) 0.9 1.2 Consolidated financial position Equity Ratio of equity Equity attributable Total assets Total equity attributable to attributable to to owners per owners owners share Million yen Million yen Million yen % Yen December 31, 2020 1,608,985 619,661 616,701 38.3 356.1 December 31, 2019 1,668,148 624,404 621,455 37.3 363.4 Renesas Electronics’ Consolidated Financial Results for the Year Ended December 31, 2020 1.3 Consolidated cash flows Cash and cash Cash flows from Cash flows from Cash flows from equivalents at the operating activities investing activities financing activities end of the year Million yen Million yen Million yen Million yen Year ended December 31, 2020 223,889 (40,163) (104,470) 219,786 Year ended December 31, 2019 201,960 (742,162) 500,466 146,468 2. Cash dividends Cash dividends per share Total Dividends Dividends At the At the At the At the dividend payout ratio per end of end of end of end of Total during ratio assets first second third year the year (consolidated) (consolidated) quarter quarter quarter Yen Yen Yen Yen Yen Year ended --- 0.00 --- 0.00 0.00 --- --- --- December 31, 2019 Year ended --- 0.00 --- 0.00 0.00 --- --- --- December 31, 2020 Year ending --- --- --- --- --- --- December 31, 2021 (forecast) Note: For the year ending December 31, 2021, whether the Group provides dividend payments remains undecided. 3. Forecast of consolidated results for the three months ending March 31, 2021 Non-GAAP Non-GAAP Non-GAAP Revenue Gross Margin Operating Margin Million yen % % %pts % %pts Three months ending March 197,000 10.2 48.5 1.2 22.0 3.2 31, 2021 to 205,000 to 14.7 Note 1: The Group reports its consolidated forecast on a quarterly basis (cumulative quarters) as substitute for a yearly forecast in a range format. For details, please refer to Appendix 1.4. “Consolidated Forecasts” 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. 4. Others 4.1 Changes in significant subsidiaries for the year ended December 31, 2020: Yes (Changes in specified subsidiaries resulting in changes in scope of consolidation) Exclusion: 2 (Company name) Renesas Electronics America Inc., IDT Singapore Pte. Ltd. Renesas Electronics America Inc. which was a specified subsidiary of the Group has been excluded from the scope of consolidation upon merger into IDT on January 1, 2020. IDT took an absorption-type merger with Renesas Electronics America Inc. and changed the trade name to Renesas Electronics America Inc.. 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: Yes 3. Changes in accounting estimates: No (Note) For details, please refer to page 14. 4.3 Number of shares issued and outstanding (common stock) 1. Number of shares issued and outstanding (including treasury stock) As of December 31, 2020: 1,731,898,990 shares As of December 31, 2019: 1,710,276,790 shares 2. Number of treasury stock As of December 31, 2020: 2,581 shares As of December 31, 2019: 2,581 shares 3. Average number of shares issued and outstanding Year ended December 31, 2020: 1,719,344,659 shares Year ended December 31, 2019: 1,694,150,509 shares Renesas Electronics’ Consolidated Financial Results for the Year Ended December 31, 2020 (Reference) Non-consolidated results for the year ended December 31, 2020 Non-consolidated financial results Net sales Operating income Ordinary income Net income Million % Million % Million % Million % yen yen yen yen Year ended December 31, 2020 563,908 1.7 49,447 46.2 52,843 223.2 47,458 178.7 Year ended December 31, 2019 554,313 (12.2) 33,822 (53.8) 16,349 (76.3) 17,029 (65.4) Net income Net income per share: basic per share: diluted Yen Yen December 31, 2020 27.60 27.01 December 31, 2019 10.05 9.90 Non-consolidated financial position Net assets per Total assets Net assets Equity ratio share Million yen Million yen % Yen December 31, 2020 1,628,721 566,100 33.8 317.65 December 31, 2019 1,614,467 505,219 30.3 286.02 Reference: Equity at the end of the year ended December 31, 2020: 550,141 million yen Equity at the end of the year ended December 31, 2019: 489,167 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 10, 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 Electronics’ Consolidated Financial Results for the Year Ended December 31, 2020 [APPENDIX] 1. Business Results 2 1.1 Analysis of Business Results 2 1.2 Consolidated Financial Condition 5 1.3 Cash Flows 5 1.4 Consolidated Forecasts 6 1.5 Dividend Payments 6 2. Primary policy for selection of accounting standards 6 3. Consolidated Financial Statements 7 3.1 Consolidated Statement of Financial Position 7 3.2 Consolidated Statement of Profit or Loss and Consolidated Statement of Comprehensive Income 9 3.3 Consolidated Statement of Changes in Equity 11 3.4 Consolidated Statement of Cash Flows 13 3.5 Notes to Consolidated Financial Statements 14 (Notes about Going Concern Assumption) 14 (Basis for Preparation) 14 (Basis of Consolidated Financial Statements) 14 (Significant Accounting Policies) 14 (Significant Accounting Estimates and Judgments) 14 (Business Segments) 16 (Business Combinations) 18 (Trade and Other Receivables) 21 (Trade and Other Payables) 21 (Bonds and Borrowings) 21 (Revenue) 21 (Selling, General and Administrative Expenses) 22 (Other Income) 22 (Other Expenses) 22 (Per Share Information) 23 (Subsequent Events) 24 1 Renesas Electronics’ Consolidated Financial Results for the Year Ended December 31, 2020 1.