Notice Regarding Financial Assistance Including Debt Waivers and Occurrence of Extraordinary Profit
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.
Renesas Electronics Europe
Renesas Electronics Corporation (TSE: 6723), the world's number one supplier of microcontrollers, is a premier supplier of advanced semiconductor solutions including microcontrollers, SoC solutions and a broad range of analog and power devices. Business operations began as Renesas Electronics in April 2010 through the integration of NEC Electronics Corporation (TSE:6723) and Renesas Technology Corp., with operations spanning research, development, design and manufacturing for a wide range of applications. Headquartered in Japan, Renesas Electronics has subsidiaries in approximately 20 countries worldwide. More information can be found at www.renesas.com.