Sharp 2013 Annual Report Download - page 68

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66 SHARP CORPORATION
measures informed to the labor union this time will be
applied to managerial staff.
Implementation period: from October 2013 to March
2014.
(2) Measures against rank-and-file (union members) employees
[1] Reduction in salary
A 7% salary cut implemented from October 2012 to
September 2013 will continue with “a 2% cut.”
Implementation period: from October 2013 to March
2014
Note: A 2% reduction of salary was implemented from
May to September 2012.
[2] Review of bonuses
The December 2013 bonuses will be halved compared
to the June 2012 bonuses which were calculated based
on coordination with business result.
(The same measure took place with the December 2012
and the June 2013 bonuses.)
[3] Others
Other measures include cutting back premium rates of
overtime allowances and the like, to the minimum le-
gal standards, the reduction of allowances for business
trips, and the termination of welfare benefits.
Implementation period: from October 2013 to March
2014
(c) Impact on Income (Loss)
The measures mentioned above are estimated to reduce fixed
costs by approximately ¥10 billion for the year ending March
2014.
As regards the issue of new shares (in two rounds) by third party
allotment with Qualcomm as the allottee pursuant to the joint
development agreement dated December 4, 2012 between the
Company and Pixtronix, Inc. (“Pixtronix”), a wholly-owned sub-
sidiary of Qualcomm Incorporated (“Qualcomm”) concerning
the business alliance for the joint development of next genera-
(a) Outline of the Second Third Party Allotment Capital Increase
tion MEMS (Micro Electro Mechanical System) display and the
capital alliance agreement dated December 4, 2012 between
the Company and Qualcomm, the payment of the second issue
passed at its board of directors meeting held on June 7, 2013
was fully made on June 24, 2013 as scheduled.
The issue of New Shares for the Second Third Party Allotment Capital Increase with Qualcomm as the Allottee
(1) Number of new shares to be issued 11,868,000 common shares
(2) Issue price ¥ 502 per share
(3) Amount of issue price ¥ 5,957,736,000
(4) Amount of increase in capital ¥ 2,978,868,000
(5) Amount of increase in capital reserve ¥ 2,978,868,000
(6) Method of offering or allotment/Expected allottee Third party allotment
11,868,000 shares shall be allotted to Qualcomm Incorporated
(7) Subscription payment date June 24, 2013
Financial Section