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Home > News Room > NEC Makes Additional Contribution to The Employee Retirement Benefit Trust

NEC Makes Additional Contribution to The Employee Retirement Benefit Trust


*** For immediate use February 16, 2011

Tokyo, February 16, 2011 - NEC Corporation (NEC; TSE: 6701) announced today an additional contribution to the employee retirement benefit trust through the contribution of a portion of shares that NEC holds in Renesas Electronics Corporation (Renesas; TSE:6723) in order to reinforce the strength of NEC's pension financing.

After making the contribution, NEC will continue to have voting rights for the Renesas shares that are contributed to the employee retirement benefit trust. There will be no change to NEC's relationship with Renesas, which will continue to be an NEC affiliate accounted for by the equity method.

1) Date of trust establishment

February 17, 2011

2) The number of shares to be contributed

72 million shares

3) Change in number of shares and voting right ratio


Stock Name
Number of Shares Voting Right Ratio
Before Change After Change Before Change After Change
Renesas Shares
NEC
Benefit Trust
Thousand Shares
141,696
6,200
Thousand Shares
69,696
78,200
%
34.0
1.5
%
16.7
18.8
Total 147,896 147,896 35.5 35.5

* Voting rights ratio is determined based on the total number of voting rights as of September 30, 2010

4) Employee retirement benefit trust amount at establishment

JPY 71 billion (approximate)

5) Effect on NEC's business results

The gain from this contribution of shares to the retirement benefit trust has been factored into the consolidated financial forecasts for the fiscal year ending March 31, 2011, previously disclosed on January 27, 2011.

***



About NEC Corporation
NEC Corporation is a leader in the integration of IT and network technologies that benefit businesses and people around the world. By providing a combination of products and solutions that cross utilize the company's experience and global resources, NEC's advanced technologies meet the complex and ever-changing needs of its customers. NEC brings more than 100 years of expertise in technological innovation to empower people, businesses and society. For more information, visit NEC at http://www.nec.com.


NEC is a registered trademark of NEC Corporation. All Rights Reserved. Other product or service marks mentioned herein are the trademarks of their respective owners. (C)2011 NEC Corporation.




CAUTIONARY STATEMENTS

This material contains forward-looking statements pertaining to strategies, financial targets, technology, products and services, and business performance of NEC Corporation and its consolidated subsidiaries (collectively "NEC"). Written forward-looking statements may appear in other documents that NEC files with stock exchanges or regulatory authorities, such as the Director of the Kanto Finance Bureau, and in reports to shareholders and other communications. NEC is relying on certain safe-harbors for forward-looking statements in making these disclosures. Some of the forward-looking statements can be identified by the use of forward-looking words such as "believes," "expects," "may," "will," "should," "seeks," "intends," "plans," "estimates," "targets," "aims," or "anticipates," or the negative of those words, or other comparable words or phrases. You can also identify forward-looking statements by discussions of strategy, beliefs, plans, targets, or intentions. Forward-looking statements necessarily depend on currently available assumptions, data, or methods that may be incorrect or imprecise and NEC may not be able to realize the results expected by them. You should not place undue reliance on forward-looking statements, which reflect NEC's analysis and expectations only. Forward-looking statements are not guarantees of future performance and involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking statements. Among the factors that could cause actual results to differ materially from such statements include (i) global economic conditions and general economic conditions in NEC's markets, (ii) fluctuating demand for, and competitive pricing pressure on, NEC's products and services, (iii) NEC's ability to continue to win acceptance of NEC's products and services in highly competitive markets, (iv) NEC's ability to expand into foreign markets, such as China, (v) regulatory change and uncertainty and potential legal liability relating to NEC's business and operations, (vi) NEC's ability to restructure, or otherwise adjust, its operations to reflect changing market conditions, (vii) movement of currency exchange rates, particularly the rate between the yen and the U.S. dollar, (viii) the impact of unfavorable conditions or developments, including share price declines, in the equity markets which may result in losses from devaluation of listed securities held by NEC, and (ix) impact of any regulatory action or legal proceeding against NEC. Any forward-looking statements speak only as of the date on which they are made. New risks and uncertainties come up from time to time, and it is impossible for NEC to predict these events or how they may affect NEC. NEC does not undertake any obligation to update or revise any of the forward-looking statements, whether as a result of new information, future events, or otherwise.
The management targets included in this material are not projections, and do not represent management's current estimates of future performance. Rather, they represent targets that management will strive to achieve through the successful implementation of NEC's business strategies.
Finally, NEC cautions you that the statements made in this material are not an offer of securities for sale. Securities may not be offered or sold in any jurisdiction in which required registration is absent or an exemption from registration under the applicable securities laws is not granted.

NEC Press Contact

Kosuke Yamauchi
NEC Corporation
+81-3-3798-6511
E-Mail:k-yamauchi@ce.jp.nec.com

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