One of these measures has involved a decision on a course of action that will allow the most effective use to be made of the Sagamihara Office. Yokogawa Electric Corporation’s (“the Company”) Board of Directors resolved on March 27 to conclude a leasing agreement for the Sagamihara Office as follows.
1. Overview of the Leasing Agreement
(1) Main building of the Sagamihara Office and its infrastructure (physical plant) Sagamihara Office address: 4-1-55 Koyama, Chuo-ku, Sagamihara, Kanagawa, Japan
Land: 17,985 m2, building: 31,836 m2 (total floor area)
(2) Leasing period 20 years from April 1, 2013 to March 31, 2033
(3) Overview of the counterparty
Name: Opnext Japan, Inc.
Address: 216 Totsuka-cho, Totsuka-ku, Yokohama, Kanagawa, Japan
Representative: Kei Oki, President
Business: - Development, design, manufacture, sales, and maintenance of optical communications equipment and components - Development, design, manufacture, sales, and maintenance of ICs, other types of semiconductor devices, and other electronic components.
Pain in capital: 1.5 billion yen
Founded: September 28, 2000
Major shareholder and shareholding: Owned 100% by Opnext, Inc. (USA)
Relationship with the Company: No special capital, human, or business transaction relationship
March 27, 2012: Resolution at the Company’s Board of Directors meeting.
April 2012 to March 2013: Preparation period
April 1, 2013: Start of lease
3. Future Outlook
In line with this leasing agreement, the Company plans to record an extraordinary loss of approximately 900 million yen for fiscal year 2011, for which a detailed investigation is being conducted. Should this necessitate a revision to our forecast of the consolidated financial results for fiscal year 2011, we will disclose it immediately.
During the leasing preparation period (fiscal year 2012), the Company will bear part of the Sagamihara Office’s normal operating and depreciation costs, but this will be recouped by the leasing fee and other income starting in fiscal year 2013.
As for another measure involving the entry into semiconductor tester related alliances, we will notify you of a decision on this matter by May 11, which is the date on which our financial results for fiscal year 2011 are to be announced.
Name of Listed Company:
Yokogawa Electric Corporation (Stock code: 6841, listed in TSE 1st section)
Name and Position of the Representative:
Shuzo Kaihori, President and Chief Executive Officer
Name and Position of the Person in Charge:
Hikaru Kikkawa, General Manager of Public Relations and Investor Relations
Telephone Number: 81-422-52-5530.