30 Sep 2013
TOKYO, Japan, September 30, 2013 — Renesas Electronics Corporation (TSE: 6723), a premier supplier of advanced semiconductor solutions, today announced that it has received financial assistances in the form of debt waivers agreed to by its creditors on September 30, 2013, with details as follows. These financial assistances will result in the occurrence of extraordinary profit in the second quarter of the fiscal year ending March 31, 2014.
1. Process Leading to the Acceptance of Financial Assistance
As announced by Renesas Electronics on December 10, 2012, in the news release “Renesas Electronics Announces Share Issue through Third-Party Allotment, and Change in Major Shareholders, Largest Shareholder who is a Major Shareholder, Parent Company and Other Related Companies,” a total of 49.5 billion yen in new loans was procured from its major shareholders as reported on September 28, 2012, in the news release “Renesas Electronics Announces the Successful Implementation of Measures to Ensure a Robust and Profitable Structure.” To implement further restructuring measures, Renesas subsequently entered into negotiations with its major shareholders with a view to changing the loan conditions, resulting in the receipt of planned financial assistance in the form of a partial debt waiver from some of its major shareholders who are also creditors.
2. Total Liabilities (As of June 30, 2013)
: 521,680 million yen
3. Overview of Debt Waivers
- - Amount of debt waiver: 7,636 million yen
- - Overview of waived debt: Part of the loan claims and the security deposit for stable product supply held by the creditors of Renesas
- - Ratio of debt waiver to total liabilities: 1.46%
4. Overview of Other Capital Policies
As announced on September 30, 2013 today in the news release “Notice Regarding Completion of Payment for Issue of New Shares through Third-Party Allotment,” Innovation Network Corporation of Japan, Toyota Motor Corporation, Nissan Motor Co., Ltd., Keihin Corporation, Denso Corporation, Canon Inc., Nikon Corporation, Panasonic Corporation, and Yaskawa Electric Corporation have been issued new shares in Renesas Electronics (1,250,000,000 shares, total issue price: ¥150 billion).
5. Details of Extraordinary Profit
: Gain on debt waiver: 7,636 million yen
*Plan to record as special income for both consolidated and non-consolidated financial results.
6. Financial Outlook
Renesas plans to record gain of 7,636 million yen arising from the debt waiver to be recorded in the financial results for the second quarter of the fiscal year ending March 31, 2014, as special income. The impact on business performance has already been incorporated into the forecast for the second quarter of the fiscal year ending March 31, 2014. Therefore there is no change to the financial forecasts.
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.