Renesas Electronics Corporation

Q3 headline performance beat plan (FX-adjusted / timing-adjusted clarity) - Revenue: JPY 435.2bn, Gross margin: 59.4%, Operating profit: JPY 150.5bn (OP margin 34.6%), Attributable profit: JPY 125bn. - Apple-to-apple vs plan: Industrial + Infrastructure sales exceeded projection; ~+1.18% vs plan on an FX-neutral basis. - Key drivers: stronger automotive, SoCs, R-Car Gen4 ramp, and MCU 28nm adoption expansion; Industrial/IIoT strength.

Timing business transfer: GAAP includes one-off proceeds; non-GAAP excludes it - On July 1, the Timing business was transferred. - GAAP Q3 includes proceeds from the sale (~JPY 450.3bn proceeds recognized, per management appendix references). - For investor modeling: management repeatedly emphasized “exclude Timing / FX / one-off” adjustments for like-for-like comparability; Q3 also had a significant technical one-off tied to shipment/debit transaction provision methodology changes (excluded in the “one-off adjusted” view).

Full-year 2026 outlook: strong growth, margins pressured in Q4 - FY2026 YOY forecast: Revenue +26.4% (with FX favorability mentioned); management also cited ~+20% YOY (FX-adjusted framing). - Q4 forecast: Revenue ~JPY 454bn, Gross margin ~58.0%, OP margin ~32.0%. - QoQ: Revenue +4.3% (management said underlying like-for-like excluding FX/one-off is around +4.2%). - Why margins down in Q4: expected mix deterioration (~>50% of decline) plus higher production/capacity investment costs and year-end maintenance (expenses concentrate end-of-year).