Renesas Electronics Announces Consolidated Forecasts and Forecasts of Cash Dividends

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Renesas Electronics Corporation (TSE: 6723), a premier supplier of
advanced semiconductor solutions, today announced the consolidated
financial forecasts for the six months ending June 30, 2019 and
forecasts of cash dividends.

The Group reports its consolidated forecasts on a quarterly basis
(cumulative quarters) 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 that will help to
better understand the Group’s constant business results, figures such as
sales, semiconductor sales and gross 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 figures based on GAAP (IFRS based) following
a certain set of rules. The gross margin and operating margin forecasts
are given assuming the midpoint in the net sales forecast.


1. Consolidated forecasts for the six months ending June 30, 2019
(January 1, 2019 to June 30, 2019)
	Non-GAAP Revenue	Non-GAAP Revenue from Semiconductors	Non-GAAP Gross Margin	Non-GAAP Operating Income
Original forecasts	—	—	—	—
Forecasts as of May 14, 2019	Million yen 335,259 to 343,259	Million yen 328,240 to 336,240	41.6%	7.4%
Increase (decrease)	—	—	—	—
Percent change	—	—	—	—
Reference: Corresponding period of the previous year (January 1, 2018 to June 30, 2018)	Million yen 388,909	Million yen 381,012	46.1%	16.2%

(Note)		Non-GAAP figures are calculated by adjusting or removing non-recurring items and other adjustments from GAAP (IFRS based) 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 results are provided in non-GAAP base. This adjustment and exclusion include the amortization of intangible assets recognized from acquisitions, other PPA (purchase price allocation) adjustments and costs relating to acquisitions, stock-based compensation, as well as other non-recurring expenses and income the Group believes to be applicable. In addition, as of the first quarter ended March 31, 2019, there has been a change in the Group’s auditor, and therefore quarterly figures of the year ended December 31, 2018, provided under IFRS are not reviewed by the previous auditor. However, for each of the quarterly figures of the year ended December 31, 2018 provided under the generally accepted accounting principal in Japan (J-GAAP) have been reviewed by the Group’s previous auditor.

The figures of the consolidated forecasts for the six months ending June
30, 2019 are sum of the results of the three months ended March 31, 2019
and the forecasts of the three months ending June 30, 2019.

The consolidated forecasts for the six months ending June 30, 2019 are
calculated at the rate of 110 yen per USD and 125 yen per Euro.

2. Forecasts of cash dividends for the fiscal year
ending December 31, 2019

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
May 14, 2019

0.00

－

Results for the year ending
December 31, 2019

－

Results for the year ended
December 31, 2018

－

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 to thrive in the global marketplace and will aim
to increase 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, 2019, the Group will forego interim dividend
payment for this period

For the year ending December 31, 2019, the plan for year-end dividend
payments remain undecided, and the Group will immediately announce it
when the decisions are made.

Refer to Renesas Electronics’ press release “Renesas Electronics
Reports Financial Results for the First Quarter Ended March 31, 2019”
issued on May 14, 2019 for more details.

Forward-Looking Statements

The statements in this press release with respect to the plans,
strategies and financial outlook of Renesas Electronics and its
consolidated subsidiaries (collectively “we”) 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 several important factors 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.

About Renesas Electronics Corporation

Renesas Electronics Corporation (TSE:
6723) delivers trusted embedded design innovation with complete
semiconductor solutions that enable billions of connected, intelligent
devices to enhance the way people work and live. A global
leader in microcontrollers, analog, power, and SoC products, Renesas
provides comprehensive solutions for a broad range of automotive,
industrial, home electronics, office automation, and information
communication technology applications that help shape a limitless
future. Learn more at renesas.com.

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