Renesas Announces Consolidated Forecasts and Forecasts of Cash Dividends
Renesas Electronics Corporation (TSE: 6723) released its consolidated financial forecasts for the fiscal year ending December 31, 2022, amidst semiconductor market volatility. Revenue projections range from 1,492,373 million to 1,500,373 million yen, with a non-GAAP gross margin of 56.9% and operating margin of 36.2%. The company will not pay a year-end dividend, redirecting earnings towards strategic investments to enhance shareholder value. These projections follow the previous year's revenue of 994,418 million yen.
- Diversifying retained earnings for strategic investments to enhance shareholder value.
- Aim for long-term sustained growth in profits.
- Forecasting challenges due to semiconductor market volatility.
- No dividend payments for the fiscal year.
The Group reports its consolidated forecasts for the full year as a range because of the difficulty of forecasting 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 full year ending |
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In millions of yen |
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Non-GAAP Revenue |
Non-GAAP Gross Margin |
Non-GAAP Operating Margin |
Previous forecasts |
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Forecasts as of
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1,492,373 to 1,500,373 |
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Increase (decrease) |
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Percentage change |
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Reference:
Results of the full year ended |
994,418 |
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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 as in 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 full year ending
2. Forecasts of cash dividends for the fiscal year ending |
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Dividends per share |
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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 |
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Forecasts as of
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Results for the year ending |
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0.00 |
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Results for the year ended |
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0.00 |
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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 full year ending
Refer to Renesas' earnings report “Renesas’ Consolidated Financial Results for the Third Quarter Ended
About
(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
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.
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Media Contacts:
+81 3-6773-3001
pr@renesas.com
Investor Relations Contacts:
+81 3-6773-3002
ir@renesas.com
Source:
FAQ
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