Renesas announces organisational reforms to accelerate growth

1. Background to the organisational reform
In October 2013, Renesas embarked on the reform plan aimed at building a reliable corporate structure capable of generating profit. It completed those activities in March 2016 and achieved its goal of creating a stable business foundation. Now, to thrive in the global marketplace, on 2^nd November 2016 Renesas announced its 'mid-term growth strategy' and is currently working to expand and strengthen its business portfolio for accelerated growth. One part of this effort was the decision to acquire Intersil, which is engaged in the development, manufacturing, sale and service of analogue semiconductor devices such as power management ICs and high-precision analogue devices. As of 24^th February 2017, Renesas had completed this acquisition of Intersil.

Moving forwards, Renesas will be working to integrate Intersil into its operations, and is aiming to move beyond its Japan-centric business management and will be targeting becoming a truly global company as 'One Global Renesas', a company that operates as a global organisation without being bound by region.

In addition to this integration with Intersil, Renesas will be fortifying its current structure, step by step, which is classified by functions, such as sales & marketing and business units, into an even more robust organisational structure by: renewing the business units by expanding and clarifying the roles and responsibilities; uniting the supply chain function; and executing strategic business reinforcement in specific regions.

(1.1) Reorganisation into three business units (as of 1^st April 2017 and 1^st July 2017)
With the integration of the Intersil operations, Renesas will reorganise the 2^nd Solution Business Unit, which has been responsible for Renesas general-purpose business, into two business units; one will be a 'business unit that focuses on application specific solutions' and the other will be a 'business unit that focuses on a wide variety of end market solutions and a broad set of customers' and is expected to generate significant synergistic growth from the integration with Intersil. These two business units will be referred to as the 'Industrial Solution Business Unit' and the 'Broad-Based Solution Business Unit', respectively. In addition, the 1^st Solution Business Unit that is responsible for automotive products will be renamed to the 'Automotive Solution Business Unit'. This will change Renesas’ structure from the previous two-business units to one with three business units.

Of these three business units, the 'Broad-Based Solution Business Unit' will start operations on 1^st April 2017 and aims to quickly start achieving synergistic effects with the Intersil businesses.

Furthermore, as of 1^st July 2017, Renesas will transfer sales and marketing divisions to each of these three business units and transfer both the responsibility for profitability and the ownership of their respective businesses explicitly to within each business unit. At the same time as expanding the range of responsibilities of the respective business units to include everything from sales and marketing through to design and development, this will make rapid and consistent decision-making possible.

(1.2) Establishment of the new supply chain management unit (as of 1^st July 2017)
Since the supply chain management related functions, such as manufacturing strategy, manufacturing and investment management, production directives, and materials procurement, are currently spread across the company, Renesas will establish the new 'Supply Chain Management Unit' on 1^st July 2017. This aims to unify Renesas’ strategy from manufacturing to procurement, speeding up decision-making and achieving overall optimisation of supply chain management whilst strengthening the system for the stable supply of Renesas products to customers.

(1.3) Creation of the new 'China Business Unit' (as of 1^st March 1 2017)
At the same time as aiming for a global organisation centering around the business units that have integrated Intersil operations, with respects to China, which has full of opportunities for growth, Renesas has decided that individual activities with appropriate regional characteristics will be necessary. Renesas has therefore established a new 'China Business Unit' on 1^st March 2017 and have begun strengthening efforts that are specialised for local conditions. A Renesas Senior Vice President (Mr Tomomitsu Maoka) will be stationed there as the head of the China Business Unit and will strengthen efforts to unify local sales, marketing, design and development, and production functions and aim at strong growth.

2. New organisational chart
Based on these three elements of the new organisational reform Renesas will move to the new organisational structure in the two steps as shown below.

(Note 2) Acting Executive Vice President and CFO (Note 3) Acting Senior Vice President (Note 4) Acting Executive Vice President (Note 5) Acting Executive Vice President and President, CEO and Director of Intersil Corporation