Renesas Electronics Corporation (“Renesas”, TSE:6723), a premier supplier of advanced semiconductor solutions, today announced that it has resolved at the Meeting of Board of Directors dated February 8, 2024, to distribute dividends from retained earnings as follows. This matter is planned to be proposed at Renesas’ Annual General Meeting of Shareholders scheduled for March 2024.

1. Details of dividends

2. Reason

From the perspective of maximizing enterprise value, in order to respond to rapid changes in the business environment and thrive in the global marketplace, Renesas aims to achieve a durable financial structure by appropriating retained earnings for strategic investments, such as research and development of new products and technologies as well as capital expenditures, and to distribute part of its earnings to shareholders. For each dividend period, payment determinations are made with consideration of consolidated and non-consolidated retained earnings, consolidated profits, outlook for profits for the next and future periods, and cash flows status.

As a result of declining business performance due to the deterioration of the business environment surrounding Renesas Group, the company has continued to withhold dividends since the implementation of the year-end dividend for the fiscal year ended March 31, 2005. However, Renesas Group has established a durable financial structure through measures such as the completion of various structural reforms and growth investments.

In light of these circumstances, as a return to shareholders, Renesas has conducted two rounds of buybacks of its own shares totaling 250 billion yen in June 2022 and April 2023. Furthermore, as an additional measure for further return of profits to shareholders, Renesas has decided to resume dividend payments. For the fiscal year ended December 31, 2023, Renesas plans to distribute a year-end dividend of 28 yen per share.

Dividends for the next fiscal year are undecided at this time and will be disclosed as soon as they are determined. Renesas will continue to work toward continuous and stable dividends.

(Reference) Annual dividends

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, X, 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.

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