Concerning Basic Agreement with Nissha Printing Co., Ltd. regarding Leasing of Land, Buildings, etc., on the Himeji Site

Loan of Land and Buildings after Discontinuation of Production by TFPD Corporation

Toshiba Mobile Display Co., Ltd., (hereinafter “TMD”) has concluded a basic agreement for the lease of land and buildings on Toshiba Corporation (hereinafter “Toshiba”) Himeji plant site used by TMD and TFPD Corporation (hereinafter “TFPD”), a wholly-owned subsidiary of TMD, with Nissha Printing Co., Ltd. (hereinafter “Nissha Printing”).

Since the production of small to medium size liquid crystal panels by TFPD at the Himeji plant is scheduled to be discontinued at the end of December this year, Toshiba and TMD have decided to lease the land and buildings currently used by TFPD to Nissha Printing.

To cope with the dramatic drop in global demand for liquid crystal and a decline in prices brought on by the severe business environment, Toshiba Group is undertaking a radical restructuring of TMD’s liquid crystal business. The decision to discontinue production by TFPD at the end of December was reached in July this year, and since then, discussions have been ongoing regarding the use after discontinuation of production of the land and buildings used by TFPD.
Meanwhile, Nissha Printing had been considering the possibility of expanding its production line in preparation for future expansion of its business in areas such as capacitive touch panels, part of its industrial materials and electronics business and, in the realization that use of the land and buildings owned by TFPD would make it possible to hold down investment in new equipment and to secure production facilities within a short timeframe, decided that its interests meshed with those of Toshiba, leading to conclusion of a basic agreement between the two companies.

Toshiba Group will accelerate its radical reform of the TMD business structure and implement constitutional reinforcement to realize improved profitability in its liquid crystal business.

[Subject of Lease Agreement]
Location : 50 Kamiyobe, Yobe-ku, Himeji-shi, Hyogo
Size of site : 30,875 m²
Total floor space : 34,761 m²