<Consolidated Financial Results for the Second Quarter Ended September 30, 2013>
Implementation of the Medium-Term Management Plan
The status of the implementation of the Medium-Term Management Plan we announced on May 14, 2013, is as follows.
Exit closed innovation and aggressively utilize alliances
We have implemented a second third-party allotment capital increase to Qualcomm Incorporated, according to the agreement concerning the development of MEMS displays, and we have signed an agreement with China Electronics Corporation for an LCD panel production project to establish an 8.5-generation LCD panel and module plant in China.
Fixed costs by reforming of cost structure
There was progress as planned, with a reduction of 70.9 billion yen compared to the first half of fiscal 2012.
Improving financial position
In order to achieve stable funding, we have secured an agreement for the renewal of a syndicated loan of 360 billion yen. An additional borrowing facility of 150 billion yen was also set, and the redemption of convertible bonds (200 billion yen) was completed at the end of September 2013.
Additionally, in October 2013, Sharp issued new shares through a public offering (109.0 billion yen) in order to secure strategic investment funds and strengthen financial grounds for the steady implementation of the Medium-Term Management Plan. Sharp also issued new shares through third-party allotments (17.4 billion yen), with DENSO CORPORATION, Makita Corporation, and LIXIL Corporation as the allottees.
