Financial Agreements Enable Acceleration of Business Reforms to Achieve Goals for Profitability
28 Sep 2012
TOKYO, Japan, September 28, 2012 — Renesas Electronics Corporation (TSE: 6723, hereinafter “Renesas”), a premier supplier of advanced semiconductor solutions, today announced the execution of a guarantee deposits agreement with NEC Corporation (hereinafter “NEC”), of loan agreements with Hitachi, Ltd. (hereinafter “Hitachi”) and Mitsubishi Electric Corporation (hereinafter “Mitsubishi Electric”), and a syndicate loan agreement with Renesas' main financing banks to implement financing totaling 97 billion yen. These agreements now secure the funds for the structural reform of production sites and the early retirement incentive program as announced by Renesas on July 3, 2012. This financing will become effective October 1, 2012.
With these financial arrangements in place, Renesas will accelerate business, financial and product offering reforms to reach the goals of profitability, a reduced fixed-cost base and an ability to respond to market changes flexibly, in line with the July 3, 2012 announcement. Renesas intends to be a company that consistently achieves an operating profit ratio of more than 10 percent.
1. Overview of the financing by the major shareholders
|NEC||49.5 billion yen||October 1, 2012||To fund business reform|
*Funding from NEC is a guarantee deposit for stable product supply.
2. Overview of the syndicate loan by the main financing banks
|The Bank of Tokyo-Mitsubishi UFJ, Ltd.||47.5 billion yen||October 1, 2012||To fund business reform|
|Mizuho Corporate Bank, Ltd.|
|Sumitomo Mitsui Trust Bank, Limited|
|Mitsubishi UFJ Trust and Banking Corporation|
3. Effect on business performance
The impact on business performance is currently being reviewed, should any correction to the sales estimate be necessary, Renesas will make a prompt disclosure.
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.
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.