TOKYO, Japan ― 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 full year ending December 31, 2022.
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 December 31, 2022
(January 1, 2022 to December 31, 2022)
In millions of yen
| Non-GAAP Revenue |
Non-GAAP Gross Margin |
Non-GAAP Operating Margin |
|
|---|---|---|---|
| Previous forecasts | － | － | － |
| Forecasts as of October 26, 2022 |
1,492,373 |
56.9% | 36.2% |
| Increase (decrease) | － | － | － |
| Percentage change | － | － | － |
| Reference: Results of the full year ended December 31, 2021 | 994,418 | 53.2% | 29.8% |
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 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 December 31, 2022 are calculated by combining the forecasts for the three months ending December 31, 2022, to the financial results of the nine months ended September 30, 2022. The consolidated forecasts for the full year ending December 31, 2022 are calculated at the rate of 130 yen per USD and 136 yen per Euro.
2.Forecasts of cash dividends for the fiscal year ending December 31, 2022
| 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 October 26, 2022 | 0.00 | 0.00 | |||
| Results for the year ending December 31, 2022 | － | 0.00 | － | ||
| Results for the year ended December 31, 2021 | － | 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 full year ending December 31, 2022, the Group will forego year-end dividend payment.
Refer to Renesas' earnings report “Renesas’ Consolidated Financial Results for the Third Quarter Ended September 30, 2022” issued on October 26, 2022 for more details.
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 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.
The content in the press release, including, but not limited to, product prices and specifications, is based on the information as of the date indicated on the document, but may be subject to change without prior notice.