Notice Concerning the Recording of Special Losses
By Business Wire News
By Business Wire News
Renesas Electronics Corporation (TSE: 6723) today announced the recording of special losses for the fiscal year ended March 31, 2015 (the period from April 1, 2014 to March 31, 2015).
1. Outline of special losses (business structure improvement expenses)
(1) As announced in “2. Structural Reforms” in the press release “Renesas Electronics Shows Direction of Renesas Group,” dated August 2, 2013, and in the press release “Renesas Electronics to Transfer Partial Assets of Consolidated Subsidiary (8-inch Wafer Fabrication Line at Shiga Factory) to ROHM,” dated April 30, 2015, the Renesas Group plans to transfer and lease the 8-inch wafer fabrication line at the Shiga Factory, a semiconductor front-end manufacturing facility operated by Renesas Semiconductor Manufacturing Co., Ltd., a consolidated subsidiary of the Renesas Group.
After a review of the recoverable value of the manufacturing equipment, land, and buildings to be transferred and leased, the Renesas Group recorded business structure improvement expenses of 6.2 billion yen for impairment loss and others as special loss.
(2) As announced in the press release “Renesas Electronics Announces Reorganization Aimed at Strengthening of Design and Development Systems,” dated July 9, 2014, the Renesas Group has been proceeding with realignments of its design and development sites.
The Renesas Group recorded business structure improvement expenses of 9.2 billion yen for disposal and relocation of equipment, impairment loss, etc., associated with the realignment of design and development sites as special loss.
2. Impact on Renesas’ financial results
The impact on business performance of the recording of special losses has been incorporated into the financial results for the fiscal year ended March 31, 2015, announced today.
The statements in this press release with respect to the plans, strategies and financial outlook of Renesas Electronics and its consolidated subsidiaries (collectively “we”) are forward-looking statements involving risks and uncertainties. We caution you in advance that actual results may differ materially from such forward-looking statements due to several important factors including, but not limited to, general economic conditions in our markets, which are primarily Japan, North America, Asia, and Europe; demand for, and competitive pricing pressure on, products and services in the marketplace; ability to continue to win acceptance of products and services in these highly competitive markets; and fluctuations in currency exchange rates, particularly between the yen and the U.S. dollar. Amongst other factors, downturn of the world economy; deteriorating financial conditions in world markets, or deterioration in domestic and overseas stock markets may cause actual results to differ from the projected results forecast.
About Renesas Electronics Corporation
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 20 countries worldwide. More information can be found at www.renesas.com.
Renesas Electronics Corporation
Kyoko Okamoto, + 81-3-6756-5555 (Japan)