All figures are rounded to the nearest 100 million yen.

Capital expenditures refer to the amount of capital for property, plant and equipment (manufacturing equipment) and intangible assets based on the amount of investment decisions made during the year ended December 31, 2023. However, the investments from Dialog Semiconductor Limited (hereinafter “Dialog”) and Celeno Communications Inc. (hereinafter “Celeno”) are listed as an input basis. It should be noted that as of September 29, 2023, Celeno changed its company name from Celeno Communications Inc. to Renesas Semiconductor Design US Inc.

R&D expenses include capitalized R&D expenses recorded as intangible assets.

The allocation of the acquisition costs for the business combination with Steradian Semiconductors Private Limited (hereinafter “Steradian”) and Panthronics AG (hereinafter “Panthronics”) has been revised at the end of three months ended March 31, 2023, and at the end of the three months ended December 31, 2023, respectively. These revisions have been reflected in the consolidated financial results for the year ended December 31, 2022 as well as the consolidated financial results for the three months ended June 30 and September 30, 2023. As of October 12, 2023, Panthronics changed its corporate name to Renesas Design Austria GmbH.

Note:

The Group finalized the provisional accounting treatment for the business combination at the end of the three months ended March 31, 2023, and each figure for the fiscal year ended December 31, 2022 reflects the details of the finalization of the provisional accounting treatment. Due to the revisions to the allocation of the acquisition costs, the percent of change from corresponding period of the previous year for the year ended December 31, 2022 is not stated.

The amount of the dividend for the year ended December 31, 2023, will be approved by the Group’s Ordinary Annual Meeting of Shareholders scheduled for March 2024.

For the year ending December 31, 2024, whether the Group provides dividend payments remains undecided.

The Group reports its consolidated forecast on a quarterly basis as substitute for a yearly forecast in a range format. The non-GAAP gross margin and the non-GAAP operating margin forecasts are provided assuming the midpoint in the non-GAAP revenue forecast.

Non-GAAP figures are calculated by removing or adjusting non-recurring items and other adjustments from GAAP (IFRS) 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 on a non-GAAP basis.