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Renesas Announces Consolidated Forecasts

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TOKYO, July 29, 2021--(BUSINESS WIRE)--Renesas Electronics Corporation (TSE: 6723), a premier supplier of advanced semiconductor solutions, today announced the consolidated financial forecasts for the nine months ending September 30, 2021.

The Group reports its consolidated forecasts for the next quarter (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 to better understand the Group’s constant business results, figures such as 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. However, the figure provided as revenue is based on IFRS and does not include non-GAAP adjustments. The revenue forecast is provided assuming the midpoint and the range of the forecast are listed in brackets. The gross margin and operating margin forecasts are given assuming the midpoint in the revenue forecast.

1. Consolidated forecasts for the nine months ending September 30, 2021

(January 1, 2021 to September 30, 2021)

In millions of yen

Revenue

Non-GAAP
Gross Margin

Non-GAAP
Operating Margin

Original forecasts

---

---

---

Forecasts as of July 29, 2021

661,553
(±4,000)

51.8%

27.8%

Increase (decrease)

---

---

---

Percentage change

---

---

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Reference:
Corresponding period of the previous year
(January 1, 2020 to September 30, 2020)

524,093

47.4%

19.2%

Note:

Non-GAAP figures are calculated by removing or adjusting 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 stock-based compensation, as well as other non-recurring expenses and income the Group believes to be applicable.

The consolidated forecasts for the nine months ending September 30, 2021 are calculated by combining the forecasts for the three months ending September 30, 2021, to the financial results of the six months ended June 30, 2021. The consolidated forecasts for the nine months ending September 30, 2021 are calculated at the rate of 107 yen per USD and 129 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.

Refer to Renesas Electronics' earnings report "Renesas Electronics Reports Financial Results for the Second Quarter Ended June 30, 2021" issued on July 29, 2021 for more details.

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—securely and safely. A global leader in microcontrollers, analog, power and SoC products and integrated platforms, Renesas provides the expertise, quality, and comprehensive solutions for a broad range of Automotive, Industrial, Home Electronics, Office Automation and Information Communication Technology applications to help shape a limitless future. Learn more at renesas.com.

(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/20210728006163/en/

Contacts

Public Relations
Kyoko Okamoto
Renesas Electronics Corporation
+81 3-6773-3001

Investor Relations
Shigeo Muto
Renesas Electronics Corporation
+81 3-6773-3002

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