Renesas Electronics : Earnings Report for the 2nd quarter ended June 30, 2026

About this update from Renesas Electronics Corporation

Renesas Reports Financial Results for the Second Quarter Ended June 30, 2026 TOKYO, Japan, July 31, 2026 - Renesas Electronics Corporation (TSE:6723) today announced consolidated financial results in accordance with IFRS for the three and six months ended June 30, 2026. Summary of Consolidated Financial Results (Note 1) S ummary of Consolidated Financial Results (Non-GAAP basis) (Note 2) Three months ended June 30, 2026 Six months ended June 30, 2026 Billion yen % of Revenue Billion yen % of Revenue Revenue 405.3 100.0 777.6 100.0 Gross profit 235.3 58.1 455.6 58.6 Operating profit 132.7 32.7 258.2 33.2 Profit attributable to owners of parent 113.3 28.0 216.2 27.8 EBITDA (Note 3) 154.3 38.1 300.5 38.6 Summary of Consolidated Financial Results (IFRS basis) Three months ended June 30, 2026 Six months ended June 30, 2026 Billion yen % of Revenue Billion yen % of Revenue Revenue 418.4 100.0 798.7 100.0 Gross profit 245.1 58.6 468.4 58.6 Operating profit 102.1 24.4 192.7 24.1 Profit attributable to owners of parent 149.2 35.7 217.3 27.2 EBITDA (Note 3) 148.9 35.6 286.9 35.9 Reconciliation of Non-GAAP gross profit to IFRS gross profit and Non-GAAP operating profit to IFRS operating profit (Billion yen) Three months ended June 30, 2026 Six months ended June 30, 2026 Non-GAAP gross profit Non-GAAP gross margin 235.3 58.1% 455.6 58.6% Reconciliation items in non-recurring revenue (Note 4) 13.2 21.1 Amortization of purchased intangible assets and depreciation of property, plant and equipment (0.2) (0.3) Stock-based compensation and related expenses (0.8) (1.4) Other reconciliation items in non-recurring expenses and adjustments (Note 5) (2.4) (6.6) IFRS gross profit IFRS gross margin 245.1 58.6% 468.4 58.6% Non-GAAP operating profit Non-GAAP operating margin 132.7 32.7% 258.2 33.2% Reconciliation items in non-recurring revenue (Note 4) 13.2 21.1 Amortization of purchased intangible assets and depreciation of property, plant and equipment (25.2) (51.9) Stock-based compensation and related expenses (11.9) (20.2) Other reconciliation items in non-recurring expenses and adjustments (Note 5) (6.7) (14.6) IFRS operating profit IFRS operating margin 102.1 24.4% 192.7 24.1% (Note) 1. All figures are rounded to the nearest 100 million yen. 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. Operating profit + Depreciation and amortization. Non-recurring revenue that the Group has determined should be excluded "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 Second Quarter Ended June 30, 2026 English translation from the original Japanese-language document 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, Investor Relations Tel. +81 (0)3-6773-3002 Filing date of Hanki Hokokusho (scheduled) : August 6, 2026 July 31, 2026 (Amounts are rounded to the nearest million yen, unless otherwise noted) Consolidated financial results for the six months ended June 30, 2026 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 Six months ended June 30 , 2026 Six months ended June 30 , 2025 Million yen % Million yen % Million yen % - - Million yen % - - Million yen % - - Million yen % - - 798,742 634,311 25.9 (10.7) 192,680 61,301 214.3 (58.4) 254,785 (169,288) 217,629 (175,321) 217,333 (175,342) 438,910 (475,677) Basic earnings per share Diluted earnings per share Yen Yen Six months ended June 30, 2026 119.51 117.47 Six months ended June 30, 2025 (97.34) (97.34) (Note) 1. Diluted earnings per share is the same as basic earnings per share as there were no dilutive potential common shares outstanding for the six months ended June 30, 2025. Consolidated financial position Total assets Total equity Equity attributable to owners Ratio of equity attributable to owners Million yen Million yen Million yen % June 30, 2026 4,562,527 2,855,550 2,849,646 62.5 December 31, 2025 4,177,163 2,448,451 2,443,034 58.5 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 Year ended December 31, 2025 Year ended December 31, 2026 Yen 0.00 0.00 Yen 0.00 0.00 Yen 0.00 Yen 28.00 Yen 28.00 Year ending December 31, 2026 (forecast) --- --- --- (Note) Change in forecast of cash dividends since the most recently announced forecast: No Forecast of consolidated results for the nine months ending September 30, 2026 (% of change from corresponding period of the previous year) Non-GAAP revenue Non-GAAP gross margin Non-GAAP operating margin Million yen % % %pts % %pts Nine months ending September 30, 1,200,113 to 1,215,113 24.0 to 25.6 58.2 1.1 33.0 4.1 2026 (Note) 1. The Group reports its consolidated forecast on a quarterly basis as a 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. 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. Others Changes in significant subsidiaries for the six months ended June 30, 2026: No Changes in Accounting Policies, Changes in Accounting Estimates and Corrections of Prior Period Errors Changes in accounting policies with revision of accounting standard: No Changes in accounting policies except for 4.2.1: No Changes in accounting estimates: No Number of shares issued and outstanding (common stock) Number of shares issued and outstanding (including treasury stock) As of June 30, 2026: 1,870,614,885 shares As of December 31, 2025: 1,870,614,885 shares Number of treasury stock As of June 30, 2026: 43,125,646 shares As of December 31, 2025: 57,280,173 shares Average number of shares issued and outstanding Six months ended June 30, 2026: 1,818,577,257 shares Six months ended June 30, 2025: 1,801,305,034 shares (Note) Information regarding the implementation of audit procedures: These financial results are not subject to interim review procedures by the independent auditor. Cautionary Statement The Group will hold an earnings conference for institutional investors and analysts on July 31, 2026. 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. [APPENDIX] Condensed Interim Consolidated Financial Statements 2 Condensed Interim Consolidated Statement of Financial Position 2 Condensed Interim Consolidated Statement of Profit or Loss and 4 Condensed Interim Consolidated Statement of Comprehensive Income Condensed Interim Consolidated Statement of Changes in Equity 8 Condensed Interim Consolidated Statement of Cash Flows 10 Notes to Condensed Interim Consolidated Financial Statements 12 (Notes about Going Concern Assumption) 12 (Basis for Preparation) 12 (Basis of Condensed Interim Consolidated Financial Statements) 12 (Material Accounting Policies) 12 (Significant Accounting Estimates and Judgments) 12 (Business Segments) 13 (Business Combinations) 16 (Trade and Other Receivables) 16 (Assets Held for Sale) 17 (Trade and Other Payables) 17 (Bonds and Borrowings) 18 (Share Capital and Other Equity Items) 18 (Dividends) 18 (Revenue) 18 (Selling, General and Administrative Expenses) 19 (Other Income) 20 (Other Expenses) 21 (Subsequent Events) 21 Condensed Interim Consolidated Financial Statements Condensed Interim Consolidated Statement of Financial Position (In millions of yen) As of December 31, 2025 As of June 30, 2026 Assets Current assets Cash and cash equivalents 295,897 376,017 Trade and other receivables 169,124 207,210 Inventories 185,903 212,133 Other current financial assets 38,601 45,772 Income taxes receivable 10,757 15,990 Other current assets 23,277 33,535 Subtotal 723,559 890,657 Assets held for sale - 315,803 Total current assets 723,559 1,206,460 Non-current assets Property, plant and equipment 355,835 367,107 Goodwill 2,239,337 2,016,301 Intangible assets 593,324 549,186 Investments accounted for using the equity method 825 1,018 Other non-current financial assets 168,363 322,639 Deferred tax assets 51,414 52,762 Other non-current assets 44,506 47,054 Total non-current assets 3,453,604 3,356,067 Total assets 4,177,163 4,562,527 Liabilities and equity Liabilities Current liabilities (In millions of yen) As of December 31, 2025 As of June 30, 2026 Trade and other payables 219,167 233,182 Bonds and borrowings 242,478 247,818 Other current financial liabilities 9,477 7,351 Income taxes payable 24,377 40,517 Provisions 4,099 4,478 Other current liabilities 116,782 119,838 Subtotal 616,380 653,184 Liabilities directly associated with assets held for sale - 226 Total current liabilities 616,380 653,410 Non-current liabilities Trade and other payables 7,070 1,578 Borrowings 964,089 910,092 Other non-current financial liabilities 14,598 15,608 Income taxes payable 4,393 4,350 Retirement benefit liability 22,516 22,058 Provisions 3,551 3,560 Deferred tax liabilities 83,479 81,473 Other non-current liabilities 12,636 14,848 Total non-current liabilities 1,112,332 1,053,567 Total liabilities 1,728,712 1,706,977 Equity Share capital 153,209 153,209 Capital surplus 299,286 310,810 Retained earnings 1,213,791 1,370,809 Treasury shares (70,012) (53,168) Other components of equity 846,760 1,067,986 Total equity attributable to owners of parent 2,443,034 2,849,646 Non-controlling interests 5,417 5,904 Total equity 2,448,451 2,855,550 Total liabilities and equity 4,177,163 4,562,527 Condensed Interim Consolidated Statement of Profit or Loss and Condensed Interim Consolidated Statement of Comprehensive Income Condensed Interim Consolidated Statement of Profit or Loss (Six months ended June 30, 2025 and June 30, 2026) (In millions of yen) Six months ended Six months ended June 30, 2025 June 30, 2026 Revenue 634,311 798,742 Cost of sales (280,107) (330,331) Gross profit 354,204 468,411 Selling, general and administrative expenses (263,687) (272,057) Other income 2,283 4,159 Other expenses (31,499) (7,833) Operating profit 61,301 192,680 Finance income 6,829 73,021 Finance costs (237,180) (10,664) Share of loss of investments accounted for using equity method (238) (252) Profit (loss) before tax (169,288) 254,785 Income tax expense (6,033) (37,156) Profit (loss) (175,321) 217,629 Profit (loss) attributable to Owners of parent (175,342) 217,333 Non-controlling interests 21 296 Profit (loss) (175,321) 217,629 Earnings (losses) per share Basic earnings (losses) per share (yen) (97.34) 119.51 Diluted earnings (losses) per share (yen) (97.34) 117.47 Condensed Interim Consolidated Statement of Comprehensive Income (Six months ended June 30, 2025 and June 30, 2026) Six months ended June 30, 2025 (In millions of yen) Six months ended June 30, 2026 (175,321) 217,629 (42) (154) 414 85,028 372 84,874 Profit (loss) Other comprehensive income Items that will not be reclassified to profit or loss Remeasurements of defined benefit plans Equity instruments measured at fair value through other comprehensive income Total of items that will not be reclassified to profit or loss Items that may be reclassified subsequently to profit or loss Exchange differences on translation of foreign operations (302,250) 135,289 Cash flow hedges 1,570 381 Cost of hedges Total of items that may be reclassified subsequently to profit or loss (48) (300,728) 737 136,407 Total other comprehensive income (300,356) 221,281 Total comprehensive income (475,677) 438,910 Comprehensive income attributable to Owners of parent (475,547) 438,413 Non-controlling interests (130) 497 Total comprehensive income (475,677) 438,910 Condensed Interim Consolidated Statement of Profit or Loss (Three months ended June 30, 2025 and June 30, 2026) Three months ended (In millions of yen) Three months ended June 30, 2025 June 30, 2026 Revenue 325,534 418,449 Cost of sales (144,192) (173,337) Gross profit 181,342 245,112 Selling, general and administrative expenses (128,369) (140,223) Other income 1,732 668 Other expenses (14,929) (3,441) Operating profit 39,776 102,116 Finance income 4,005 73,802 Finance costs (239,678) (5,529) Share of loss of investments accounted for using equity method (160) (122) Profit (loss) before tax (196,057) 170,267 Income tax expense (5,326) (20,885) Profit (loss) (201,383) 149,382 Profit (loss) attributable to Owners of parent (201,348) 149,184 Non-controlling interests (35) 198 Profit (loss) (201,383) 149,382 Earnings (losses) per share Basic earnings (losses) per share (yen) (111.46) 81.83 Diluted earnings (losses) per share (yen) (111.46) 80.50 Condensed Interim Consolidated Statement of Comprehensive Income (Three months ended June 30, 2025 and June 30, 2026) Three months ended June 30, 2025 (In millions of yen) Three months ended June 30, 2026 Profit (loss) (201,383) 149,382 Other comprehensive income Items that will not be reclassified to profit or loss Remeasurements of defined benefit plans (56) (55) Equity instruments measured at fair value through other comprehensive income Total of items that will not be reclassified to profit or loss 281 87,978 225 87,923 Items that may be reclassified subsequently to profit or loss Exchange differences on translation of foreign operations (95,161) 61,192 Cash flow hedges 235 (292) Cost of hedges Total of items that may be reclassified subsequently to profit or loss (258) (95,184) 69 60,969 Total other comprehensive income (94,959) 148,892 Total comprehensive income (296,342) 298,274 Comprehensive income attributable to Owners of parent (296,375) 298,007 Non-controlling interests 33 267 Total comprehensive income (296,342) 298,274 Condensed Interim Consolidated Statement of Changes in Equity (Six months ended June 30, 2025) (In millions of yen) Equity attributable to owners of parent Share capital Capital surplus Retained earnings Treasury shares Other components of equity Share acquisition rights Remeasurements of defined benefit plans Equity instruments measured at fair value through other comprehensive income Balance as of January 1, 2025 153,209 289,377 1,308,948 (92,120) 1,087 - (3,489) Profit (loss) - - (175,342) - - - - Other comprehensive income - - - - - (42) 414 Total comprehensive income - - (175,342) - - (42) 414 Purchase and disposal of treasury shares - 5,888 - 17,158 - - - Dividends of surplus - - (50,320) - - - - Share-based payment transactions - (2,167) - - (867) - - Transfer to retained earnings - (3,813) 3,838 - (67) 42 - Total transactions with owners - (92) (46,482) 17,158 (934) 42 - Balance as of June 30, 2025 153,209 289,285 1,087,124 (74,962) 153 - (3,075) Equity attributable to owners of parent Non-controlling interests Total equity Other components of equity Total equity attributable to owners of parent Exchange differences on translation of foreign operations Cash flow hedges Cost of hedges Total Balance as of January 1, 2025 884,005 (3,652) 17 877,968 2,537,382 4,916 2,542,298 Profit (loss) - - - - (175,342) 21 (175,321) Other comprehensive income (302,099) 1,570 (48) (300,205) (300,205) (151) (300,356) Total comprehensive income (302,099) 1,570 (48) (300,205) (475,547) (130) (475,677) Purchase and disposal of treasury shares - - - - 23,046 - 23,046 Dividends of surplus - - - - (50,320) (8) (50,328) Share-based payment transactions - - - (867) (3,034) - (3,034) Transfer to retained earnings - - - (25) - - - Total transactions with owners - - - (892) (30,308) (8) (30,316) Balance as of June 30, 2025 581,906 (2,082) (31) 576,871 2,031,527 4,778 2,036,305 (Six months ended June 30, 2026) (In millions of yen) Equity attributable to owners of parent Share capital Capital surplus Retained earnings Treasury shares Other components of equity Share acquisition rights Remeasurements of defined benefit plans Equity instruments measured at fair value through other comprehensive income Balance as of January 1, 2026 153,209 299,286 1,213,791 (70,012) 16 - (3,642) Profit (loss) - - 217,333 - - - - Other comprehensive income - - - - - (154) 85,028 Total comprehensive income - - 217,333 - - (154) 85,028 Purchase and disposal of treasury shares - 19,834 - 16,844 - - - Dividends of surplus - - (50,814) - - - - Share-based payment transactions - (17,657) - - (8) - - Transfer to retained earnings - 9,347 (9,501) - - 154 - Total transactions with owners - 11,524 (60,315) 16,844 (8) 154 - Balance as of June 30, 2026 153,209 310,810 1,370,809 (53,168) 8 - 81,386 Equity attributable to owners of parent Non-controlling interests Total equity Other components of equity Total equity attributable to owners of parent Exchange differences on translation of foreign operations Cash flow hedges Cost of hedges Total Balance as of January 1, 2026 852,251 (1,268) (597) 846,760 2,443,034 5,417 2,448,451 Profit (loss) - - - - 217,333 296 217,629 Other comprehensive income (loss) 135,088 381 737 221,080 221,080 201 221,281 Total comprehensive income 135,088 381 737 221,080 438,413 497 438,910 Purchase and disposal of treasury shares - - - - 36,678 - 36,678 Dividends of surplus - - - - (50,814) (10) (50,824) Share-based payment transactions - - - (8) (17,665) - (17,665) Transfer to retained earnings - - - 154 - - - Total transactions with owners - - - 146 (31,801) (10) (31,811) Balance as of June 30, 2026 987,339 (887) 140 1,067,986 2,849,646 5,904 2,855,550 (4) Condensed Interim Consolidated Statement of Cash Flows (In millions of yen) Six months ended Six months ended June 30, 2025 June 30, 2026 Cash flows from operating activities Profit (loss) before tax (169,288) 254,785 Depreciation and amortization 98,041 94,183 Impairment losses 13,741 2,420 Finance income and finance costs 227,697 (60,574) Share-based payment expenses 20,015 19,019 Insurance income (150) (69) Foreign exchange loss (gain) (5,715) 4,519 Loss (gain) on sales of property, plant and equipment, 179 (293) and intangible assets Loss on disposal of fixed assets 3,442 514 Decrease (increase) in inventories 5,445 (22,836) Decrease (increase) in trade and other receivables (14,869) (33,860) Decrease (increase) in other current assets 1,108 (9,413) Decrease (increase) in other financial assets 18,393 1,845 Increase (decrease) in trade and other payables (5,330) 25,535 Increase (decrease) in retirement benefit liability (806) (606) Increase (decrease) in provisions (3,379) 241 Increase (decrease) in other current liabilities 11,356 2,536 Increase (decrease) in other financial liabilities 477 251 Other 1,605 3,732 Subtotal 201,962 281,929 Interest received 5,081 5,201 Dividends received 33 562 Proceeds from insurance income 150 69 Income taxes paid (9,106) (30,813) Net cash flows from operating activities 198,120 256,948 Cash flows from investing activities Purchase of property, plant and equipment (47,822) (42,815) Proceeds from sales of property, plant and equipment 1,830 434 Purchase of intangible assets (25,426) (26,382) Purchase of other financial assets (2,482) (1,680) Proceeds from sales of other financial assets 1,460 1,451 Payments for acquisitions of subsidiaries (2,823) (3,651) Payments for settlement of contingent - (1,328) consideration of subsidiary shares Purchase of shares of subsidiaries and associates (352) (445) Proceeds from subsidy 3,110 577 Proceeds from sale of businesses 4,728 - Other 3,914 (1,841) Net cash flows from investing activities (63,863) (75,680) (In millions of yen) Six months ended Six months ended June 30, 2025 June 30, 2026 Cash flows from financing activities Proceeds from short-term borrowings 38,000 - Repayments of short-term borrowings (28,000) - Repayments of long-term borrowings (71,370) (54,099) Dividends paid (50,300) (50,802) Repayments of lease liabilities (4,966) (5,392) Interest paid (7,900) (9,228) Other (4) (3) Net cash flows from financing activities (124,540) (119,524) Effect of exchange rate changes on cash and cash equivalents (27,855) 18,376 Net increase (decrease) in cash and cash equivalents (18,138) 80,120 Cash and cash equivalents at beginning of the period 229,249 295,897 Cash and cash equivalents at end of the period 211,111 376,017 Notes to Condensed Interim Consolidated Financial Statements (Notes about Going Concern Assumption) Not applicable. (Basis for Preparation) Basis of measurement The condensed interim consolidated financial statements of the Group are measured at an acquisition cost except for items such as financial instruments measured at fair value. Functional currency and presentation currency The condensed interim consolidated financial statements are presented in Japanese yen (rounded to the nearest million yen), which is the functional currency of the Company. Change in Presentation (Condensed Interim Consolidated Statement of Cash Flows) Within cash flows from operating activities category, "Decrease (increase) in other current assets," which was disclosed in "Other" for the six months ended June 30, 2025, has been presented separately for the six months ended June 30, 2026 due to the increase in its materiality. As a result, in the consolidated statement of cash flows for the six months ended June 30, 2025, "Decrease (increase) in other current assets" of 1,108 million yen is separately presented under cash flows from operating activities. Consequently, "Other" of cash flows from operating activities has been revised from 2,713 million yen to 1,605 million yen. (Basis of Condensed Interim Consolidated Financial Statements) Scope of consolidation Three companies have been excluded from the scope of consolidation due to mergers. Two companies have been newly included in the scope of consolidation due to acquisitions. Two companies have been excluded from the scope of consolidation due to liquidation. Scope of Application of equity method No change in the scope of application of equity method. (Material Accounting Policies) The material accounting policies for the condensed interim consolidated financial statements of the Group are the same as the accounting policies applied in preparing the Group's consolidated financial statements for the year ended December 31, 2025. In addition, income taxes for the six months ended June 30, 2026 are calculated using the estimated annual effective tax rate. (Significant Accounting Estimates and Judgments) In preparing the condensed interim consolidated financial statements, management of the Group makes judgements, accounting estimates and assumptions that could have an impact on the application of accounting policies and the reporting amounts of assets, liabilities, revenue and expenses. These estimates and assumptions are based on the best judgment of management, taking into account various factors that are deemed reasonable on the closing date in light of past experience and available information. However, figures based on these estimates and assumptions may differ from the actual results due to their nature. Estimates and underlying assumptions are reviewed continuously. The results of the review of these estimates are reflected in the period when the estimates are revised and for the future periods. Except as described below, the significant accounting estimates and judgments for the condensed interim consolidated financial statements for the six months ended June 30, 2026 are the same as those applied in the consolidated financial statements for the year ended December 31, 2025. Basis of consolidation The Company's U.S. subsidiary holds 16,852,372 shares of common stock, warrants for 4,943,555 additional shares of common stock and convertible notes of Wolfspeed, Inc (hereinafter "Wolfspeed"). However, these shares are subject to holding limitations (exercise of warrants or conversion of convertible notes exceeding 39.9% is invalid) and voting rights limitations (limited to 9.9%). Accordingly, neither the Company nor its U.S. subsidiary has control over, or significant influence on, Wolfspeed. Therefore, Wolfspeed is not included in the scope of consolidation of the Group, nor does the equity method of accounting apply. (Business Segments) Overview of reportable segments The Group's reportable segments are components of the Group for which separate financial information is available that is evaluated regularly by the Company's Board of Directors to determine the allocation of management resources and assess performance. The Group mainly consists of "Automotive Business" and "Industrial/Infrastructure/IoT Business" and those are the Group's reportable segments. The Automotive Business includes the product categories "Automotive control," comprising semiconductor devices for controlling automobile engines and bodies, and "Automotive information," comprising semiconductor devices used in sensing systems for detecting environments inside and outside the vehicle as well as automotive information devices such as IVI (In-Vehicle Infotainment) and instrument panels used to give various information to the driver of the vehicle. The Group mainly supplies MCUs (microcontrollers), SoC (System-On-Chip), analog semiconductor devices and power semiconductor devices in each of these categories. The Industrial/Infrastructure/IoT Business includes the product categories "Industrial," "Infrastructure" and "IoT" which support the smart society. The Group mainly supplies MCUs, SoC, analog semiconductor devices and power semiconductor devices in each of these categories. Additionally, commissioned development and manufacturing from the Group's design and manufacturing subsidiaries are categorized as "Other." (Changes in Reportable Segments) The Company announced that the Company's U.S. subsidiary and SiTime Corporation (hereinafter "SiTime") signed a definitive agreement to transfer the Company's Timing Business to SiTime. The transfer was approved by the Company's Board of Directors on February 5, 2026. Following this change, the reportable segment classification for the relevant business has been reclassified from "Automotive Business" and "Industrial/Infrastructure/IoT Business" to "Other" beginning with the six months ended June 30, 2026. Note that segment information for the six months ended June 30, 2025, has been prepared based on the categorization method following the change. Information on reportable segments The accounting treatment for the reportable segments is the same as described in "(Material Accounting Policies)." The Group discloses revenue from external customers, segment gross profit, and segment operating profit (which is the segment profit). Revenue from external customers, segment gross profit, and segment operating profit are internal key performance indicators which are used by management when making decisions and are calculated by excluding the following items from IFRS revenue, gross profit and operating profit (Adjustments 2): amortization of purchased intangible assets and depreciation of property, plant and equipment related to business combinations; certain share-based payment expenses; non-recurring revenue that the Group has determined should be excluded; and other non-recurring items. Other non-recurring items include costs related to acquisitions and gains and losses the Group believes to be appropriate for deduction. However, non-recurring revenue that the Group has determined should be excluded; and certain other non-recurring items the Group believes to be covered by each reportable segment and other segment are included in revenue from external customers, segment gross profit, and segment operating profit (Adjustments 1). The Company's Board of Directors assesses the performance after eliminating intragroup transactions, and therefore, there are no transfers between the reportable segments included within the segment results. Information on reportable segments is as follows. (Six months ended June 30, 2025) (In millions of yen) Reportable Segments Other Adjustments 1 Total Adjustments 2 Consolidation basis Automotive Industrial/ Infrastructure/ IoT Revenue from external customers 316,306 298,383 18,725 - 633,414 897 634,311 Segment gross profit 165,342 181,548 12,072 618 359,580 (5,376) 354,204 Segment operating profit 83,598 67,130 7,137 17,824 175,689 (114,388) 61,301 Finance income 6,829 Finance costs (237,180) Share of loss of investments accounted for using (238) equity method Loss before tax (169,288) (Other items) Depreciation and amortization 21,929 15,667 444 - 38,040 60,001 98,041 (Six months ended June 30, 2026) (In millions of yen) Reportable Segments Other Adjustments 1 Total Adjustments 2 Consolidation basis Automotive Industrial/ Infrastructure/ IoT Revenue from external customers 358,679 412,206 27,458 (20,730) 777,613 21,129 798,742 Segment gross profit 199,777 252,548 19,653 (16,415) 455,563 12,848 468,411 Segment operating profit 126,061 131,827 14,431 (14,155) 258,164 (65,484) 192,680 Finance income 73,021 Finance costs (10,664) Share of loss of investments accounted for using (252) equity method Profit before tax 254,785 (Other items) Depreciation and amortization 23,463 18,411 509 (54) 42,329 51,854 94,183 (Three months ended June 30, 2025) (In millions of yen) Reportable Segments Other Adjustments 1 Total Adjustments 2 Consolidation basis Automotive Industrial/ Infrastructure/ IoT Revenue from external customers 161,377 154,481 8,779 - 324,637 897 325,534 Segment gross profit 84,524 93,340 6,075 411 184,350 (3,008) 181,342 Segment operating profit 37,623 38,287 4,070 11,884 91,864 (52,088) 39,776 Finance income 4,005 Finance costs (239,678) Share of loss of investments accounted for using (160) equity method Loss before tax (196,057) (Other items) Depreciation and amortization 10,727 7,438 160 - 18,325 25,452 43,777 (Three months ended June 30, 2026) (In millions of yen) Reportable Segments Other Adjustments 1 Total Adjustments 2 Consolidation basis Automotive Industrial/ Infrastructure/ IoT Revenue from external customers 187,095 216,299 15,055 (13,178) 405,271 13,178 418,449 Segment gross profit 103,385 131,270 10,976 (10,336) 235,295 9,817 245,112 Segment operating profit 64,381 68,984 8,265 (8,907) 132,723 (30,607) 102,116 Finance income 73,802 Finance costs (5,529) Share of loss of investments accounted for using (122) equity method Profit before tax 170,267 (Other items) Depreciation and amortization 11,947 9,367 307 (54) 21,567 25,184 46,751 Information on products and services Information on products and services is the same as information on the reportable segments and therefore, omitted from this section. Information on regions and countries The breakdown of revenue from external customers by region is as follows. Six months ended June 30, 2025 (In millions of yen) Six months ended June 30, 2026 China 197,629 241,738 Asia (Excluding Japan and China) 139,263 186,250 Japan 130,890 166,927 Europe 98,426 121,550 North America 67,146 80,641 Others 957 1,636 Total 634,311 798,742 (In millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 China 102,492 126,116 Asia (Excluding Japan and China) 71,957 99,909 Japan 67,432 87,653 Europe 50,005 60,188 North America 33,137 43,731 Others 511 852 Total 325,534 418,449 (Note) Revenue is categorized into the countries and regions based on the location of the customers. (Business Combinations) Significant business combinations Six months ended June 30, 2025 There were no significant business combinations during the six months ended June 30, 2025. Six months ended June 30, 2026 There were no significant business combinations during the six months ended June 30, 2026. The contingent consideration The contingent consideration resulted from the business combination with Panthronics AG (hereinafter "Panthronics") Contingent consideration includes at most 61 million USD which will be paid based on the contract when several certain conditions (milestones) are met such as future product development and mass production progress of Panthronics. The fair value of the contingent consideration is calculated as the present value of the amount that may be paid to Panthronics, with consideration of the probability of occurrence. The level of the fair value hierarchy for the contingent consideration is Level 3. The reconciliation table of the change for the contingent consideration classified in Level 3 from the beginning balance to the ending balance is as described below. (In millions of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Beginning balance 1,582 1,566 Settlement of amount during the period - (1,328) Exchange differences (134) 22 Ending balance 1,448 260 Panthronics changed its company name from Panthronics AG to Renesas Design Austria GmbH on October 12, 2023. (Trade and Other Receivables) The components of trade and other receivables are as follows. (In millions of yen) As of December 31, 2025 As of June 30, 2026 Notes and trade receivables 156,172 196,355 Other receivables 13,752 11,699 Loss allowance (800) (844) Total 169,124 207,210 (Note) Trade and other receivables are classified as financial assets measured at amortized cost. (Assets Held for Sale) On May 8, 2026 (U.S. time), approval under the U.S. antitrust laws was obtained for the transfer of the Company's Timing Business to SiTime Corporation. As a result, the relevant assets and liabilities (Note) have been reclassified as assets held for sale and liabilities directly associated with assets held for sale as of June 30, 2026. For the segments in which the business belongs, please refer to "(Business Segments) (1) Overview of reportable segments." Regarding "Other components of equity" in the Condensed Interim Consolidated Statement of Financial Position for the six months ended June 30, 2026, the cumulative amount of other comprehensive income related to the transfer includes 99,520 million yen. The transfer was completed on July 1, 2026. For details, please refer to "(Subsequent Events)." Since the fair value (planned sale price) less costs to sell exceeds the carrying amount, the assets are measured at their carrying amount. (Note) The transferred business includes not only the Timing Business of the Company's U.S. subsidiary but also assets and liabilities related to the Timing Business held by the Company's other subsidiaries. The components of assets held for sale and liabilities directly associated with assets held for sale are as follows. (In millions of yen) As of December 31, 2025 As of June 30, 2026 Assets held for sale Inventories - 227 Property, plant and equipment - 1,157 Goodwill - 308,021 Intangible assets - 6,398 Total - 315,803 Liabilities directly associated with assets held for sale Other financial liabilities (current) - 36 Provision (current) - 2 Other financial liabilities (non-current) - 188 Total ― 226 (Trade and Other Payables) The components of trade and other payables are as follows. (In millions of yen) As of December 31, 2025 As of June 30, 2026 Trade payables 98,999 120,000 Other payables 61,509 41,716 Electronically recorded obligations 9,620 7,192 Refund liabilities 56,109 65,852 Total 226,237 234,760 Current liabilities 219,167 233,182 Non-current liabilities 7,070 1,578 (Note) Trade and other payables are classified as financial liabilities measured at amortized cost. (Bonds and Borrowings) Bonds Six months ended June 30, 2025 Not applicable. Six months ended June 30, 2026 Not applicable. Borrowings Six months ended June 30, 2025 In April 2025, the Company executed a short-term borrowing of 38,000 million yen from MUFG Bank, Ltd., Mizuho Bank, Ltd., and Sumitomo Mitsui Trust Bank, Limited. under a commitment line agreement dated June 25, 2024. The Company repaid 28,000 million yen of the borrowed amount in June 2025. Additionally, the Company has breached certain financial covenants related to loan agreements for the six months ended June 30, 2025. However, the Company has obtained consent from the financial institutions not to exercise their right to demand immediate repayment due to this breach. Six months ended June 30, 2026 Not applicable. (Share Capital and Other Equity Items) Six months ended June 30, 2025 The Company conducted transactions involving the disposal of treasury shares, including the exercise of stock options and the vesting of Restricted Stock Unit (RSU) and Performance Share Unit (PSU), resulting in a decrease of 14,418,893 shares of treasury stock for the six months ended June 30, 2025. As a consequence, treasury shares decreased by 17,158 million yen for the six months ended June 30, 2025. As a result, the amount of treasury shares held was 74,962 million yen as of June 30, 2025. Six months ended June 30, 2026 The Company conducted transactions involving the disposal of treasury shares, including the exercise of stock options and the vesting of Restricted Stock Unit (RSU) and Performance Share Unit (PSU), resulting in a decrease of 14,154,527 shares of treasury stock for the six months ended June 30, 2026. As a consequence, treasury shares decreased by 16,844 million yen for the six months ended June 30, 2026. As a result, the amount of treasury shares held was 53,168 million yen as of June 30, 2026. (Dividends) Dividend payment amounts Six months ended June 30, 2025 Resolution Class of shares Total amount of dividends (million yen) Dividend per share (yen) Record date Effective date Source of dividend March 26, 2025 Annual general meeting of shareholders Ordinary shares 50,320 28 December 31, 2024 March 31, 2025 Retained earnings Six months ended June 30, 2026 Resolution Class of shares Total amount of dividends (million yen) Dividend per share (yen) Record date Effective date Source of dividend March 25, 2026 Annual general meeting of shareholders Ordinary shares 50,814 28 December 31, 2025 March 30, 2026 Retained earnings Dividends with a record date within the six months ended June 30, 2025, but an effective date is after June 30, 2025, and dividends with a record date within the six months ended June 30, 2026, but an effective date is after June 30, 2026 Six months ended June 30, 2025 Not applicable. Six months ended June 30, 2026 Not applicable. (Revenue) All the revenue arises from contracts with customers. In addition, disaggregation of revenue recognized from contracts with customers is stated in "(Business Segments), (2) Information on reportable segments and (4) Information on regions and countries." (Selling, General and Administrative Expenses) The components of selling, general and administrative expenses are as follows. (In millions of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Research and development expenses 118,856 124,584 Personnel expenses 55,212 59,228 Depreciation and amortization 63,504 55,662 Retirement benefit expenses 2,526 3,090 Other 23,589 29,493 Total 263,687 272,057 (In millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Research and development expenses 60,174 65,149 Personnel expenses 27,005 31,125 Depreciation and amortization 27,114 26,899 Retirement benefit expenses 1,658 1,882 Other 12,418 15,168 Total 128,369 140,223 (Note) Research and development expenses are included in selling, general and administrative expenses. Related expenses such as outsourcing costs, personnel expenses, depreciation and amortization costs and material costs are mainly included in research and development expenses. (Other Income) The components of other income are as follows. (In millions of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Litigation-related income - 1,969 Damage compensation income - 847 Gain on sale of fixed assets 559 305 Compensation income 413 139 Government grant income 365 89 Insurance claim income 150 69 Other 796 741 Total 2,283 4,159 (In millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Insurance claim income 150 69 Gain on sale of fixed assets 538 67 Compensation income 413 19 Government grant income 99 7 Other 532 506 Total 1,732 668 (Other Expenses) The components of other expenses are as follows. (In millions of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Business restructuring expenses (Note 1) 5,560 3,021 Impairment losses (Note 2) 13,741 2,420 Loss on disposal of fixed assets 3,442 514 Provision for loss on litigation 5,826 - Other 2,930 1,878 Total 31,499 7,833 (In millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Business restructuring expenses (Note 1) 1,517 1,672 Loss on disposal of fixed assets 965 261 Impairment losses (Note 2) 6,528 49 Provision for loss on litigation 3,551 - Other 2,368 1,459 Total 14,929 3,441 (Note) 1. Business restructuring expenses consist of personnel-related expenses, such as premium retirement payments and other related costs. 2. The main component of impairment losses pertains to the recognition of impairment on assets which are not expected to be utilized and are scheduled for disposal. (Subsequent Events) (The completion of transfer of the Timing Business) As described in "(Assets Held for Sale)," the assets and liabilities related to the Company's Timing Business have been classified as assets held for sale and liabilities directly associated with assets held for sale as of the six months ended June 30, 2026. The transaction to transfer the business to SiTime Corporation (hereinafter "the Transfer") was completed on July 1, 2026. As the Transfer occurred after the end of the current interim consolidated accounting period, it has not been reflected in the condensed interim consolidated financial statements for the six months ended June 30, 2026. With the Transfer, the Group expects to recognize gain on sale of the business of approximately 443.3 billion yen based on estimates as of the completion date of the Transfer. However, the final impact on profit or loss, including related tax expenses and other transaction-related expenses, may change as the related calculations are further reviewed and finalized. (Impact of the Earthquake in Kumamoto Prefecture) Due to the Kumamoto Earthquake that occurred on July 28, 2026 (JST), the Company's Nishiki Factory (Nishiki Town, Kuma District, Kumamoto Prefecture) and the Kawashiri Factory (Kumamoto City, Kumamoto Prefecture) of Renesas Semiconductor Manufacturing Co., Ltd., a wholly-owned subsidiary of the Company, have been affected. The details of the impact and the amount of damage caused by the earthquake are currently under investigation at both factories. 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 globa l 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. ### Media Contact Investor Contact Corporate Communications Office Investor Relations +81 3-6773-3001 +81 3-6773-3002 [email protected] [email protected] Renesas' Consolidated Financial Results for the Second Quarter Ended June 30, 2026

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