Renesas Announces Consolidated Forecasts and Forecasts of Cash Dividends

Rhea-AI Summary

Renesas Electronics Corporation (TSE: 6723) announced its consolidated financial forecasts for the six months ending June 30, 2023, alongside its cash dividend projections. Expected non-GAAP revenue ranges from 712,166 to 727,166 million yen, with anticipated gross and operating margins of 55.8% and 33.3%, respectively. The company will not issue an interim dividend for this period, preferring to reinvest retained earnings to adapt to rapid market changes. The year-end dividend for 2023 remains undecided, with plans for strategic investments to enhance corporate value and shareholder profit in the long-term. Previous year comparisons indicate revenue of 723,759 million yen with gross and operating margins at 58.5% and 38.8%, respectively.

Positive

• Non-GAAP revenue forecast of 712,166 to 727,166 million yen indicates potential stability.
• Strategic reinvestment of retained earnings aimed at enhancing shareholder profit.

Negative

• No interim dividend payment for the six months ending June 30, 2023 raises concerns for income-focused investors.
• Uncertainty regarding year-end dividend for 2023 may affect shareholder confidence.

TOKYO--(BUSINESS WIRE)-- Renesas Electronics Corporation (TSE: 6723), a premier supplier of advanced semiconductor solutions, today announced the consolidated financial forecasts and forecasts of cash dividends for the six months ending June 30, 2023.

The Group reports its consolidated forecasts on a quarterly basis as a range because of the difficulty of forecasting full-year results with high accuracy due to the short-term volatility of the semiconductor market. Additionally, in order to provide useful information to better understand the Group’s constant business results, figures such as revenue, gross margin and operating margin are presented in the non-GAAP format, which excludes or adjusts the non-recurring items related to acquisitions and other adjustments including non-recurring expenses or income from the financial figures (GAAP, IFRS basis) following a certain set of rules. The gross margin and operating margin forecasts are given assuming the midpoint in the revenue forecast.

1. Consolidated forecasts for the six months ending June 30, 2023 (January 1, 2023 to June 30, 2023)
			In millions of yen
	Non-GAAP Revenue	Non-GAAP Gross Margin	Non-GAAP Operating Margin
Previous forecasts	---	---	---
Forecasts as of April 27, 2023	712,166 to 727,166	55.8%	33.3%
Increase (decrease)	---	---	---
Percentage change	---	---	---
Reference: Corresponding period of the previous year (January 1, 2022 to June 30, 2022)	723,759	58.5%	38.8%

Note:

Non-GAAP figures are calculated by removing or adjusting non-recurring items and other adjustments from GAAP (IFRS basis) 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. This adjustment and exclusion include the amortization of intangible assets recognized from acquisitions, other PPA (purchase price allocation) adjustments and stock-based compensation, as well as other non-recurring expenses and income the Group believes to be applicable.

The consolidated forecasts for the six months ending June 30, 2023 are calculated by combining the forecasts for the three months ending June 30, 2023, to the financial results of the three months ended March 31, 2023. The consolidated forecasts for the six months ending June 30, 2022 are calculated at the rate of 132 yen per USD and 142 yen per Euro.

The statements with respect to the financial outlook of the Group are forward-looking statements involving risks and uncertainties. The Company cautions you in advance that actual results may vary materially from such forward-looking statements due to several important factors.

2. Forecasts of cash dividends for the fiscal year ending December 31, 2023
	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
Previous forecasts	－	－	－	－	－
Forecasts as of April 27, 2023		0.00	－	－	－
Results for the year ending December 31, 2023	－
Results for the year ended December 31, 2022	－	0.00	－	0.00	0.00

The Group will divert its retained earnings for strategic investment opportunities that will enable the Group to respond to rapid environmental changes in order to thrive in the global marketplace, thus increasing shareholder profit by improving corporate value. Based on a long-term standpoint, the Group aims to realize stable and sustained growth in profits to allow dividends to be reinstated. However, for the six months ending June 30, 2023, the Group will forego interim dividend payment for this period.

For the year ending December 31, 2023, the plan for year-end dividend payments remains undecided, and the Group will immediately announce it when the decisions are made.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230426006084/en/

Media Contacts:

Renesas Electronics Corporation

Kyoko Okamoto

+81 3-6773-3001

pr@renesas.com

Investor Relations Contacts:

Renesas Electronics Corporation

Yuuki Oka

+81 3-6773-3002

ir@renesas.com

Source: Renesas Electronics Corporation

FAQ

What are Renesas Electronics' revenue forecasts for the first half of 2023?

Renesas Electronics forecasts non-GAAP revenue between 712,166 and 727,166 million yen for the six months ending June 30, 2023.

Will Renesas Electronics pay a dividend for the first half of 2023?

No, Renesas Electronics will not issue an interim dividend for the six months ending June 30, 2023.

What is the expected gross margin for Renesas Electronics in the first half of 2023?

The anticipated gross margin for the first half of 2023 is 55.8%.

Is there an announcement regarding dividends for the year ending December 31, 2023?

The company has not yet decided on the year-end dividend for the year ending December 31, 2023.