Financial Agreements Enable Acceleration of Business Reforms to Achieve Goals for Profitability

September 28, 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
Shareholders Amount Execution Date Purpose
NEC 49.5 billion yen October 1, 2012 To fund business reform
Hitachi
Mitsubishi Electric

*Funding from NEC is a guarantee deposit for stable product supply.

2. Overview of the syndicate loan by the main financing banks
Shareholders Amount Execution Date Purpose
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, infrastructure, and IoT applications that help shape a limitless future.Learn more at renesas.com.Follow us on LinkedIn, Facebook, Twitter, and YouTube.


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.