2015/3 Presentation Note:This document is a translation of the 2015/3 Presentation written in Japanese. In the event of any discrepancies in words, accounts, figures, or the like between this report and the original, original the original Japanese version shall govern govern. c 2015 ROHM Co.,Ltd. All Rights Reserved Financial Results of 2015/3 Presentation AGENDA Plan of 2016/3 ROHM’ Strategy ROHM’s St t 1. 2. 3. Market Reform Product Reform Structural Reform CAPEX 01 Return to Shareholders ICs Business Strategy Discrete Semiconductor Devices・Modules Business Strategy c 2015 ROHM Co.,Ltd. All Rights Reserved 112J058A （¥million） Sales Operating income '15/3 '14/3 Amount of increase 362,772 331,087 +31,685 +9.6% 38,800 23,635 +15,165 +64.2% － +23,303 － +64.9% － +13,205 － +41.1% － +24,073 24 073 － +48.9% 48 9% － － (10.7%) (Ratio) Ordinary income 59,218 (16.3%) (Ratio) Net income 45,296 (12.5%) (Ratio) EBITDA 73 267 73,267 (20.2%) (Ratio) Average rate（¥/US$) (110 03) (110.03) (7.1%) 35,915 (10.8%) 32,091 (9.7%) 49 194 49,194 (14.9%) YOY Presentation Financial Results of 2015/3 (YOY) 01 02 (100 00) (100.00) c 2015 ROHM Co.,Ltd. All Rights Reserved E150520H1 Average rate (¥/US$) ’14/3 ’15/3（Plan as of ’14/11） 331,087 357,000 （¥100 0） （¥100.0） （¥104 2） （¥104.2） ’15/3 362,772 （¥million） YOY +9.6% ・Sales Sales of power ICs for tablet PCs increased （¥110 0） （¥110.0） 350,000 ・Strong sales of general-purpose ICs for new smartphone models ICs 300,000 250,000 154,183 166,279 169,916 +10.2% ・Adoption of protection diodes for smartphones increased ・Sales for TVs, digital cameras, related components, etc. increased 117,746 126,128 129,047 +9.6% 03 Modules (V.S. plan ▲2.2%) ・Miscalculation of optical modules for smartphones t h 100,000 Modules 50,000 31,648 36,898 36,083 +14.0% Others 27 509 27,509 27 693 27,693 27 725 27,725 +0 8% +0.8% 0 ・Sales S l off power ICs IC for f TVs TV andd di digital it l cameras increased Discrete semiconductor devices (V.S. plan +2.3%) 200,000 Discrete 150,000 semiconductor devices ICs (V.S. plan +2.2%) Presentation Sales by Segment of 2015/3（YOY） Others (V.S. plan +0.1%) As planned ・As c 2015 ROHM Co.,Ltd. All Rights Reserved E150520H2 （ （¥million） ） 25,000 ’12/3 ’13/3 ’14/3 ’15/3 ’16/3 Plan 6,352 -921 23,635 38,800 42,000 Presentation Trend of Profits by Segment 22,286 20,000 20,478 15 000 15,000 16,799 Discrete semiconductor devices 15,909 14,087 10,000 11,616 5,000 9,216 4,477 Modules 7,929 1 442 1,442 737 ICs 04 2,086 698 Others 0 -599 -6,665 6 665 -5,000 -796 -1,219 -7,824 -1,833 -900 ICs: Depreciation and burden from Piezoelectric will increase Discrete semiconductor devices：Profits of LED・PD will improve, sales of TR・DI will increase Modules： Sales of OPM will increase, productivity of PM will improve -10,000 Others：Profits of LTG will improve c 2015 ROHM Co.,Ltd. All Rights Reserved E150520H3 （¥million） '15/3 Amount Sales Operating income (Ratio) Ordinary income (Ratio) Net income (Ratio) EBITDA (Ratio) Average rate（¥/US$) '16/3 Plan YOY Amount Amount of increase YOY 362,772 +9.6% 388,000 +25,228 +7.0% 38,800 +64.2% 42,000 +3,200 +8.2% － － ▲19,218 ▲32.5% － － ▲15,296 1 296 ▲33.8% 33 8% － － +13 533 +13,533 +18 5% +18.5% － － (10.7%) 59,218 (16.3%) 4 296 45,296 (12.5%) 73 267 73,267 (20.2%) (110.03) － +64.9% － +41.1% － +48 9% +48.9% － (10.8%) 40,000 (10.3%) 30 000 30,000 (7.7%) 86 800 86,800 (22.4%) Presentation Plan of 2016/3 (YOY) 05 (115.00) c 2015 ROHM Co.,Ltd. All Rights Reserved E150520H4 ’15/3 Average rate (¥/US$) 400,000 ’16/3 Plan 362,772 388,000 （¥110.0） （¥115.0） YOY +7.0% （¥million） ICs Presentation Plan of Sales by Segment (YOY) ・Bullish sales for autos ・Sales of power ICs for games and TVs increased 350,000 Discrete semiconductor devices ICs 300,000 169,916 181,451 +6.8% ・ Bullish sales for autos ・Strong sales of protection diodes for smartphones 250 000 250,000 ・Steady Steady sales of power transistors for home appliances 200,000 Modules ・Strong sales of optical modules for wearable devices Discrete 150,000 semiconductor 129,047 devices 06 137,429 +6.5% ・Sales of printheads for home appliances and OA 100,000 Others Modules 50,000 Others 0 36,083 27 725 27,725 40,151 +11.3% 28 966 28,966 +4.5% ・Bullish sales of chip resistors and tantalum capacitors for wearable devices ・Sales for PCs and audios increased c 2015 ROHM Co.,Ltd. All Rights Reserved E150520H5 Presentation ROHM’s Strategy 07 c 2015 ROHM Co.,Ltd. All Rights Reserved 112E006A ROHM’s Strategy 1.Market Reform Presentation ①Changes in Demand 08 c 2015 ROHM Co.,Ltd. All Rights Reserved 112Ｅ004A ROHM’s Strategy 1.Market Reform Presentation ②13 Years Trend of Sales Ratio by Market 09 c 2015 ROHM Co.,Ltd. All Rights Reserved 112E005B ROHM’s Strategy 2.Product Reform Presentation ①Aiming to be the World’s No.1 in Analog Power 10 c 2015 ROHM Co.,Ltd. All Rights Reserved 112E059A ROHM’s Strategy 2.Product Reform Presentation ②Progress of the Four Growth Product Categories 石田ＴＬ 11 c 2015 ROHM Co.,Ltd. All Rights Reserved 112E048A ROHM’s Strategy 3.Structural Reform Presentation ①Thoroughly Enhancing RPS (ROHM Production System) 12 c 2015 ROHM Co.,Ltd. All Rights Reserved 112E011A ROHM’s Strategy 3.Structural Reform Presentation ②Investing for a Larger Capacity (Front-end Process=Wafer Plant) 13 c 2015 ROHM Co.,Ltd. All Rights Reserved 112E020A ROHM’s Strategy 3.Structural Reform Presentation ③Investing for a Larger Capacity (Back-end Process=Assembly Plant) 14 c 2015 ROHM Co.,Ltd. All Rights Reserved 112E010A CAPEX of 2015/3 ’15/3 Initial plan ICs Wafer process: Expanded MEMS related manufacturing lines in ROHM HQ, intensified 12 inch in Hamamatsu Assembly process: Expanded assembly lines in RIST/REPI ’15/3 ’16/3 Plan ((¥billion)) 90.0 Approximately ¥9 billion shifted 80.0 75.0 58.4 60.0 LAPIS Miyazaki: Intensified front-end process of IGBT, etc. 50.0 48.7 Wafer process：Intensify 8 inch in ROHM HQ, improve productivity in Hamamatsu Assembly process: Expand RIST (new building) & REPI 28.9 Assembly process： New building in Malaysia, improve productivity in RIST/REPI etc. RIST/REPI, Modules 27.2 40.0 PH: Intensify front-end process 24.0 Modules OPM：Intensified sensors ICs Wafer process: Intensify IGBT, LAPIS PD 70.0 Assembly process: Improved productivity in RIST/REPI RIST/REPI, intensified IPM CAPEX of 2016/3 Plan Discrete semiconductor devices Discrete semiconductor devices Wafer process: Intensified 8 inch in Apollo 25.8 30.0 Depreciation Others 20.0 18.0 Depreciation R： Intensified new products, etc. Sales and administrative division ROHM HQ: R&D equipments, etc. Presentation CAPEX -Comparison by Segments- 10.0 0.0 7.9 4.1 1.2 4.3 2.1 2.3 OPM : Launch of new smart phone models Others R： Intensify y new p products, etc. Depreciation 15.7 15 7.3 5.6 7.4 Sales and administrative division ROHM HQ: build a new building for discrete semiconductor devices c 2015 ROHM Co.,Ltd. All Rights Reserved E150520H6 Presentation CAPEX -Comparison by Objectives- 16 c 2015 ROHM Co.,Ltd. All Rights Reserved 112E023B_HP Measures to improve corporate value Presentation Return to Shareholders Policy ・We will continue to improve our corporate value by promoting “market reform”, “product reform” and “structural reform” ・Aggressively Aggressively looking for M&A and alliance opportunities by taking advantage of our strong financial ground Return to Shareholders Policy New policy 17 ・We W will ill return t 100% off our ffree cash h flflow tto th the stock t k market k t ffor 3 years (2015/3-2017/3) . Existing policy ・We will make efforts to maintain stable dividends by aiming for consolidated payout ratio of around 30% . c 2015 ROHM Co.,Ltd. All Rights Reserved E150520H7 Return to Shareholders Measures ①15/3 Dividend per share: ¥130, 16/3 plan: ¥130 ② ②We will purchase ¥17 billion of our own shares as an additional return to shareholders (starting in May, 2015) Presentation Trend of Our Return to Shareholders （¥billion） 450 45 Payout ratio 30.9% 350 35 310 31.0 310 31.0 25.8 258 250 25 Share Buyback 15 150 14.0 140 FCF Plan to return 100% of our free cash flow 18 Dividends 53 5.3 50 5 -0.2 -2 -5 -50 Annual dividends per share p ’15/3 '15/3期 ’14/3 '14/3期 ¥50 ¥ 130 ’16/3(Plan) '16/3期[予定] ’17/3(Plan) '17/3期[予定] ¥ 130 Initial plan: ¥60, Revised plan: ¥90 c 2015 ROHM Co.,Ltd. All Rights Reserved E150520H8 ① Started mass production of BiCDMOS process 0.13μm analog ICs Establishing analog IC technology base for autos and industrial Ensuring high quality and performance of our products enabled by vertical integration to achieve competitive edge Presentation ICs Business Strategy ② Aggressive investment and innovation of manufacturing lines for long term stable supply and higher quality =Reestablishing RPS and upgrading our products to match auto quality= ③Our major R&D themes Expanding our product lineup to power train and safety device Auto 19 by gaining customers’ customers trust in the global market Reference business H Home appliance li IoT Enhancing product lineup and entering the auto and industrial markets Expanding market share of high-voltage high voltage motor drivers and power ICs in emerging countries Entering the market with sensors and communication devices enabled by ROHM Group’s synergy c 2015 ROHM Co.,Ltd. All Rights Reserved 112E026A Presentation ICs Business for Auto 20 c 2015 ROHM Co.,Ltd. All Rights Reserved 112E028A Presentation ICs Business for Industrial 21 c 2015 ROHM Co.,Ltd. All Rights Reserved 112E032B_HP ① Enhancing development and deployment of products for the power market Presentation Discrete Semiconductor Devices/Modules Business Strategy -Cutting-edge SiC power device products -Wide range of power products from resistors to SiC ② Acquiring q g No.1 worldwide market share of small signal semiconductor devices - Enhancing product lineup of ROHM’s microminiature devices “RASMID TM ” series - Continuing investment to switch to highly efficient manufacturing lines ③ Sustaining efforts targeting a wide range of markets for further future growth 22 - Enhancing product lineup for growing markets - Strengthening reference business - Development and deployment of small-sized communication modules for IoT ④ Development and production strategy -Developing and producing competitive products c 2015 ROHM Co.,Ltd. All Rights Reserved E150520H9 Discrete Semiconductor Devices/Modules Business Strategy Presentation - Power Strategy - 23 c 2015 ROHM Co.,Ltd. All Rights Reserved 112E043A Discrete Semiconductor Devices/Modules Business Strategy Presentation - Small Signal Strategy - 24 c 2015 ROHM Co.,Ltd. All Rights Reserved 112E047B_HP Discrete Semiconductor Devices/Modules Business Strategy Presentation - Continuing Actions for a Wide Range of Markets - 25 c 2015 ROHM Co.,Ltd. All Rights Reserved 112E056B_HP Discrete Semiconductor Devices/Modules Business Strategy Presentation - Auto - 26 c 2015 ROHM Co.,Ltd. All Rights Reserved 112J053B Note Regarding Future Forecasts The forecast statements in this report are based on information currently available and deemed by ROHM Group as reasonable, and therefore, are not intended to guarantee to be achieved by ROHM Group, G and d actuall results l may differ diff materially i ll b by various factors. ROHM Group does not bear responsibility to update and disclose any future forecasts in this report. Also, since the purpose of this report is to provide an outline of business performance, many figures are shown in unit of a billion yen, therefore, totals and differences of figures may appear inaccurate. i t Please Pl refer f to t our Financial Fi i lR Reportt ffor detailed figures. c 2015 ROHM Co.,Ltd. All Rights Reserved c 2015 ROHM Co.,Ltd. All Rights Reserved