Notice Concerning the Recording of Special Losses

  Notice Concerning the Recording of Special Losses

Business Wire

TOKYO -- May 9, 2014

Renesas Electronics Corporation (TSE:6723) (“Renesas Electronics”) today
announced the recording of special losses for the year ended March 31, 2014
(the period from April 1, 2013 to March 31, 2014).

1. Outline of the special losses
(1) Business structure improvement expenses
As announced in “2. Structural Reforms” of the press release, “Renesas
Electronics Shows Direction of Renesas Group” dated August 2, 2013, Renesas
Group recorded an impairment loss and others (consolidation-related expenses)
of 3,500 million yen as special loss for the fourth quarter ended December 31,
2013.

In addition, in connection with the reversal of the long-term accounts
receivable-other owned by the Group’s consolidated subsidiary, Renesas Group
recorded business structure improvement expense of 5,729 million yen as
special loss for the year ended March 31, 2014.

(2) Loss on abolishment of retirement benefit plan
In connection with the accounting of withdrawal from the retirement benefit
trust account of NEC Corporation in accordance with the integration of the
corporate pension plan implemented on April 1, 2014, Renesas Group recorded
loss on abolishment of retirement benefit plan of 9,116 million yen as special
loss for the year ended March 31, 2014.

2. Impact on Renesas’ financial results
The impact of the recording of special losses on business performance has been
incorporated into the financial results for the year ended March 31, 2014,
announced today.

Forward-Looking Statements

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. Among 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.

Contact:

Media Contacts
Renesas Electronics Corporation
Kyoko Okamoto, +81 3-6756-5555
pr@renesas.com
or
Investor Contacts
Renesas Electronics Corporation
Makie Uehara, +81 3-6756-5552
ir@renesas.com
 
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