Annual Report2004

Annual Report 2004
For the Year Ended
March 31, 2004
Exquisite
Geometry
© MIZUNO KATSUHIKO
5th group consisting of 2 stones
4th group consisting of 2 stones
2nd group consisting of 3 stones
1st group consisting of 5 stones
3rd group consisting of 3 stones
ROHM CO.,LTD., was established in Kyoto, Japan,
in 1958, designs and manufactures integrated circuits (ICs) and other
electronic components.
ROHM’s product lineup includes monolithic ICs,
power modules, photo link modules, transistors, diodes, light emitting
diodes (LEDs), laser diodes, resistors, capacitors, liquid crystal
displays (LCDs), thermalheads, image sensor heads, and LED displays.
ROHM’s corporate objective is “Quality First,”
and a key component of that objective is
the Company’s policy of securing a reasonable margin.
ROHM is also working to make continued
progress in environmental protection.
C O N T E N T S
Financial Highlights
To Our Shareholders and Friends
ROHM at a Glance
Divisional Review
New Products
Financial Section
Principal Subsidiaries <Domestic>
Principal Subsidiaries <Overseas>
Board of Directors
Corporate Data
1
2
8
10
12
13
41
42
46
46
Daiunzan Ryoanji
In the grounds of a country villa, once owned by a noble family,
at the foot of Kinugasayama Mountain
in the northern part of Kyoto City lies Ryoanji,
a Zen sect temple constructed in 1450 by Katsumoto Hosokawa,
a governor-general of the Muromachi shogunate.
The temple was destroyed by fire in 1467 during the Onin War.
Masamoto Hosokawa, a son of Katsumoto, then rebuilt it in 1488 and one
theory holds that the stone garden was laid out during the rebuilding.
Consisting of a flat surface of white sand with rocks exquisitely
positioned, the stone garden offers beauty of ultimate simplicity,
transcending time and creating a profound impression on all that view it.
We at ROHM have also continued to integrate our knowledge into small
“stones” so as to achieve a combination of increased sophistication and
miniaturization of ICs and other semiconductor products.
Beauty in a simply, or even ultimately, condensed form - with
this condensed simplicity serving as a background theme,
we selected Ryoanji Temple in Kyoto as the motif for
ROHM’s Annual Report 2004.
(Photo by: Katsuhiko Mizuno)
© MIZUNO KATSUHIKO
Financial Highlights
ROHM CO., LTD. and Subsidiaries
Years ended March 31, 2004, 2003 and 2002
Millions of
yen
2004
For the Year:
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Selling, general and administrative
expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income before income taxes
and minority interests . . . . . . . . . . . . . . . . . . . . . . .
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital expenditures . . . . . . . . . . . . . . . . . . . . . . . . . .
Depreciation and amortization . . . . . . . . . . . . . . . . . .
2003
Thousands of
U.S. dollars
2002
%
change
2004
¥ 355,630
194,857
¥ 350,281
185,795
¥ 321,265
198,631
$ 3,355,000
1,838,274
+1.5
+4.9
66,266
94,507
68,363
96,123
56,176
66,458
625,151
891,575
–3.1
–1.7
101,070
37,268
63,717
51,958
45,869
90,476
37,479
53,003
40,548
52,424
68,129
28,829
39,274
43,326
52,377
953,491
351,585
601,104
490,170
432,726
+11.7
–0.6
+20.2
+28.1
–12.5
¥ 535.62
¥ 328.24
327.89
19.00
$ 5.05
+20.2
55.00
¥ 445.51
445.30
22.00
0.52
+150.0
At Year-End:
Shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . .
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ 715,938
846,800
¥ 676,577
805,693
¥ 639,210
740,627
$ 6,754,132
7,988,679
+5.8
+5.1
Number of employees . . . . . . . . . . . . . . . . . . . . . . . . .
18,591
16,841
15,174
Per Share Information (in yen and U.S. dollars):
Basic net income . . . . . . . . . . . . . . . . . . . . . . . . . . .
Diluted net income . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash dividends applicable to the year . . . . . . . . . . .
Notes:
+10.4
1. U.S. dollar amounts are provided solely for convenience at the rate of ¥106 to US$1, the approximate exchange rate at March 31, 2004.
2. Certain reclassifications of previously reported amounts have been made to conform with current classifications.
3. Certain retroactive adjustments of previously reported per share information have been made to conform with current method (see Note 2(m) to
consolidated financial statements). Diluted net income per share for 2004 is not disclosed because there is no outstanding potentially dilutive securities.
Sales by
Product Category
Sales by
Geographic Region
409.3
360.1
350.3 355.6
321.3
Displays
Passive
Components
Americas
Europe
4.1%
5.8%
10.3%
6.9%
43.7%
Integrated
Circuits
44.1%
Japan
46.0%
39.1%
Asia
'00
'01
'02
'03
'04
Discrete
Semiconductor
Devices
1
To Our Shareholders and Friends
n the fiscal year ended March 31, 2004, the semiconductor
I
replacing conventional cameras and VCRs. In the area of
market as a whole remained sluggish in the first half of the
cellular phones, third-generation phones are gaining rapid
year due to the effects of international conflicts and SARS,
acceptance in the marketplace. In addition to conventional
except the markets for some electronic components for digital
phone-call functions, these third-generation products include
audio/video equipment such as flash memories. However, in
sophisticated multimedia capabilities, such as camera functions
the second half, with the U.S. consumer spending showing
and reproduction and delivery of music and images.
The electronics market is expected to grow due to
improvement, as well as with the economic recovery in Asia
following the SARS scare, market demand rebounded steadily.
technological advances in digital audio/video equipment,
cellular phones, automobile-related equipment, and information
Driving recovery in this demand is the increasing
sophistication of cellular phones and digital audio/video
and communications equipment. In anticipation of this, ROHM
equipment, such as digital still cameras and DVD recorders.
is enhancing its overall technological capabilities in a number of
key areas, including circuit design and fine-process technologies
The ever-increasing demand for digitization and broadband
transmission has opened up new markets. Digital still cameras
for system LSIs, and optical device and next generation device
and DVD recorders have experienced rapid widespread use,
technologies.
Exquisite
Geometry
© MIZUNO KATSUHIKO
2
© MIZUNO KATSUHIKO
New Technologies and Products
continues to make steady progress towards commercial
production. ROHM is proceeding with the development of a
R
OHM’s bases for technological enhancement include the
0.13 µm fine process, the leading-edge technology for system
VLSI Research Center, Optical Device Research Center,
LSIs, and plans to open commercial production in 2004, starting
and the LSI Test Technology Center, which are located at the
with image processors for cellular phones.
headquarters premises, as well as the Yokohama Technology
In the field of optical devices, ROHM commenced mass
Center and the Kyoto Technology Center. At these
production of a new laser diode for DVD recorders in the spring
technological bases, approximately 2,000 engineers are engaged
of 2004. This new laser diode delivers the highest power in the
in research and development.
industry and is rapidly expanding its market share. Sales of
As a custom LSI manufacturer, ROHM continues to deliver
leading-edge solutions that meet customer application
requirements and exceed customer expectations, by optimizing
ROHM’s blue-and-white LEDs are also increasing as this
market continues to grow.
Regarding R&D in next-generation essential technologies,
digital, analog, and mixed digital/analog technologies.
ROHM has organized a dedicated Research and Development
Responding to the growing need for higher performance and
Headquarters. This facility consists of six R&D centers for next
increased LSI miniaturization, ROHM’s proprietary and
generation semiconductor integrated circuits, multi-functional
innovative LSI design system, REAL SOCKET, allows a quick
integrated circuits, nanobionics, new material devices, displays,
response to customer requests for system LSIs. By employing
and optical devices. The Company is also involved in a wide
new technologies and enhancing our customer support system,
range of joint R&D projects, including industrial-academic
and by ultimately delivering value-added LSIs, we maintain our
collaboration, establishment of a cross-industrial collaboration
leadership in the industry.
alliance, and participation in Japanese national projects, ASCA
ROHM also focuses on the development of fine process
(Advanced Semiconductors through Collaborative
technology and larger-diameter wafers. With the completion of
Achievement) and MIRAI (Millennium Research for Advanced
a prototype production line for 300-mm wafers at ROHM
Information Technology).
HAMAMATSU CO., LTD. in the spring of 2004, the Company
The Ryoanji Garden
© MIZUNO KATSUHIKO
Kyoyo-chi pond occupies almost half of the garden landscape of Ryoanji.
An ancient text says that far back in the Heian period (794 - 1185),
noblemen enjoyed music and dance on dragon-headed boats on the
pond, and admired the landscape while walking along the path around
the pond.
Immediately on the left upon entering the Sanmon (front gate) is the
expanse of the pond, always full of water. Adorning the bank of the pond
are seasonal beauties such as cherry blossoms, irises, water lilies,
scarlet-tinted autumnal leaves and thunberg spireas.
Walking alongside the pond, where ancient texts say mandarin ducks
were playing and persons of refined taste were promenading, we go up a
gentle flight of stone steps lined with fences known as “Ryoanji-gaki”
(Ryoanji fencing) made of split bamboo woven in a simple manner, to
reach the Kuri (monks’ living quarters) and the Hojo (the main temple
building).
(Photo by: Katsuhiko Mizuno)
3
consistent and reliable supply to customers, ROHM secures
Production Technology and Systems
more than one mass production facility for each product
W
hile the electronics market is expected to grow over the
category. With the enhanced production capacities in China,
medium and long term, global competition is
combined with our current production bases in Thailand, the
intensifying, particularly in Asia. To address this issue, ROHM
Philippines, and other countries, our supply system is
has been reorganizing its domestic and overseas production
continually updated to ensure a stable product supply to
methodology, establishing a system that enables the Company
customers worldwide, while avoiding potential supply risks
to ensure stable product supply in response to market needs.
caused by events such as natural disasters and international
ROHM is continuing its effort to enhance two plants in
Tianjin, China, as a core production base of the ROHM group,
conflicts.
The majority of ROHM’s manufacturing equipment is
following those in Thailand and the Philippines. At the two
developed in-house. Technologies relating to our manufacturing
plants where transistors, diodes, resistors, LEDs, and LED
equipment have formed the foundation for the high quality and
displays are manufactured, the Company will continue
reliability of our products. ROHM’s unique production
production-capacity enhancement, along with plans to start
technologies are developed by our domestic competence centers
production of laser diodes. ROHM also has a plant in Dalian,
and then shared with the overseas plants of the ROHM group
China, which will begin production of CMOS camera modules,
throughout the world. With these production technologies and
in addition to printheads, LCDs and other module products.
plants, ROHM can manufacture and supply high-quality
Placing the highest priority on establishing and ensuring a
products worldwide.
© SHIBATA AKIRA
© SHIBATA AKIRA
4
© SHIBATA AKIRA
Social Responsibility
We have also been proceeding with the faithful and effective
implementation of our environmental management system based
B
elieving that social responsibility is paramount, ROHM is
on ISO 14001 standards. This implementation is an integrated
spearheading efforts toward establishing a fair and
environmental management system for the ROHM group as a
transparent management system in areas such as corporate
whole and not just an activity conducted by each of the group
governance, corporate ethics, and observance of statutes. The
companies independently. For the first time in the industry, a
Company is also expanding its environmental-conservation
third-party certification organization has awarded ROHM a
activities and philanthropy projects. To enlighten and educate
single ISO 14001 certification covering all domestic and
employees, the Company has formulated the Rules of Conduct
overseas group companies. This achievement is a testimony to
for Employees and has developed a follow-up policy to ensure
ROHM's group-wide commitment to environmental
that the Rules are fully understood and observed by employees.
conservation.
The Company is also committed to disclosure of information, to
fulfill its corporate and social responsibilities.
Examples of our environmental conservation activities include
the development of environmentally friendly, energy and
resource-saving products, zero-emission of waste, complete
elimination of environmentally controlled substances, and green
The Environment
procurement.
N
ot satisfied with merely reducing waste, ROHM is
committed to preserving the environment by eliminating
Besides CO2 emission-reduction efforts, forestation activities
to achieve natural absorption of CO2 have proven extremely
waste. To that end, the Company has established an
effective in preventing global warming. ROHM is an active
Environmental Conservation Committee to discuss significant
participant in the "ROHM Forest," an extensive project
policies and measures for environmental conservation. The
dedicated to planting eucalyptus trees in Southern Australia.
Committee consists of six subcommittees responsible for
The objective of the forestation effort is to cover an area of 10
greenhouse gasses, energy conservation, environmental burden
million m2 by 2008. This effort has already achieved
reduction, waste and recycling, environmentally controlled
tremendous success by reforesting 4.93 million m2 as of 2003.
substances, and packaging materials. Through their activities
By extending reforestation over the states of Victoria and
shared at all the business levels of the ROHM group, the
South Australia, ROHM is the first Japanese semiconductor
Company continues to lead the industry in environmental
manufacturer to undertake such a large-scale project.
conservation.
The Hojo (the main temple building)
In 1797, a dis as trous fire des troyed mos t of the buildings of R yoanji, after
whic h the Hojo of S eigen-in Temple, whic h is one of the Tac c hu (s ubtemple) of R yoanji, was reloc ated to R yoanji to be us ed as its Hojo.
Originally c ons truc ted in 1606, the reloc ated and rebuilt Hojo is an
example of the grand arc hitec tural heritage of the Azuc hi-Momoyama
period and is des ignated as an important national c ultural property.
In the Hojo is a fus umae (painting on papered s liding doors ) c alled
"Nobori-ryu K udari-ryu-zu" by K akuo S ats uki, a great mas ter of the Nanga
S c hool of Painting, whic h s hows two dragons , one as c ending and one
des c ending, in breathtakingly bold and dramatic images drawn with
exquis ite brus hs trokes . The fus umae provides a c ris p tens ion to the
tranquil inner s pac e.
On the north-eas t c orner of the Hojo, there is a ts ukubai, or c hozubac hi
(s tone was hbas in), whic h is believed to have been c ontributed to the
temple by Mits ukuni Tokugawa (1628 - 1700), a member of the Tokugawa
s hogunate family, in token of his gratitude for the books he borrowed from
the temple when c ompiling his "Dai-Nippon-S hi", the G reat His tory of
J apan. The ts ukubai has a unique ins c ription. There are four c harac ters
c his eled around its s ide, whic h are read as "
" and if the s quare
hole that holds the water in the middle of the ts ukubai is inc luded as the
radic al (i.e. a c omponent of the c harac ter), this ins c ription is
pronounc ed, "Ware tada taru o s hiru." Trans lated, it reads "I learn only to
be c ontented." This s tates a doc trine taught by B uddha, whic h is the
es s enc e of B uddhis m and is als o s aid to be reflec ted in the tea
c eremony.
(Photo by: Akira S hibata )
© SHIBATA AKIRA
5
features performances by students selected from prominent
Occupational Health and Safety
music schools around the world.
R
OHM is also making continued group-wide efforts in the
area of occupational health and safety. A health and safety
Individuals who received scholarships and/or participated in
seminars continue to play an active role in the world of music,
committee has been organized at each individual ROHM
including performances on the professional concert stage. Many
Company to ensure the well being of employees. This
have become prizewinners in famous international competitions,
commitment has brought successful results. The Company has
with 66 participants having won first, second, or third prizes to
obtained a Type-V Zero Accident Certificate from the Ministry
date.
of Health, Labor and Welfare of Japan, which is considered the
In the year under review, ROHM provided continued support
highest-ranking certification showing that the Company has one
for a number of musical events. These events include the
of the longest records of zero-accident operation. ROHM has
ROHM Lyric Selection concert series, as well as the Seiji
also achieved ten consecutive years of zero accidents of the type
Ozawa Ongaku-juku Opera Project series, which was created to
that would normally cause absence from work.
assist aspiring musicians. Other events held with the support of
ROHM include the Autumn Kyoto Music Festival Opening
Concert, the Opera Educational Program for High School
Corporate Philanthropy
Students, and other concert events.
I
n addition to the benefits that our business brings to society,
ROHM acknowledges its role as a good corporate citizen by
actively supporting cultural and sporting activities.
The ROHM Music Foundation was established in 1991 with
We also provided support for major sporting events, including
the Lake Biwa Mainichi Marathon, one of the races that
determines Japan’s representatives in the 2004 Athens Olympics
(first-place winner: Jose Rios); the Kyoto City Half Marathon,
the objective of contributing to the progress of music as a
Japan’s largest half marathon (first-place winner for men,
cultural activity. The Foundation provides continuous support
Takashi Maeda; first-plane winner for women: Rie Ueno); and
for musical events, international exchanges, and music studies,
the Inter Prefectural Men’s Ekiden Hiroshima 2004 (First place:
and offers scholarships for musicians. The Foundation also
Nagano Prefecture).
makes substantial contributions to the development and
nurturing of musicians by sponsoring music seminars. One such
ROHM will continue to support cultural and sporting
activities in the years ahead.
event, the annual Kyoto International Music Students Festival,
© MIZUNO KATSUHIKO
6
Distribution of Profits to Shareholders
R
egarding profit distribution to shareholders, ROHM will
press ahead with its current measures and policies to live
up to shareholders’ expectations, in light of comprehensive
consideration given to various factors, including business
performance, financial position, and expected demand for funds
for business investment aimed at improving corporate value.
To be concrete, with consolidated dividend payout ratio also
taken into account, the Company will continue to direct its
efforts toward satisfactory direct profit distribution based on
corporate performance.
Accordingly, for the fiscal year ended March 31, 2004, the
Company has decided to pay annual dividends of ¥55.00 per
share, a large increase from the previous year.
ROHM will also continue to develop and implement policies
and measures for enhancing corporate value for shareholders,
including amendment to the Articles of Incorporation regarding
purchase of treasury stock, so as to ensure expeditious profit
distribution in response to changes in the business environment.
Ken Sato
President
© MIZUNO KATSUHIKO
Rock Garden
© MIZUNO KATSUHIKO
The rock garden creates its own distinctive atmosphere in a limited
oblong space of 75 tsubo (approx. 250 m2).
The karesansui garden, consisting simply of a flat surface of white sand
with fifteen rocks arranged in an abstract composition that indicates some
sense of deliberateness, provides a dignified beauty.
Exquisitely and skillfully arranged, the rocks protruding above the raked
white sand seem to represent the ocean with islands protruding above its
surface, or mountain peaks soaring above a sea of clouds. The garden’s
overall simplicity allows viewers free imagination and interpretation.
Bounded by tsuijibei (a type of earthen wall), the rock garden is now a
completely enclosed space that generates its own unique atmosphere as
if it were clipped out of the surrounding landscape. However, records
suggest that when originally laid out, the garden used as “shakkei”
(borrowed scenery) the view of the distant Nishiyama hills.
The fifteen rocks are inexplicably arranged in such a manner that visitors
can see only thirteen or fourteen of them at one time, no matter what
angle the garden is viewed from. This, combined with the fact that there
is no record when and by whom the garden was laid out, it remains full of
mystery.
(Photo by: Katsuhiko Mizuno)
7
ROHM at a Glance
Integrated Circuits
Photo Link Modules
Light Emitting Diodes
Monolithic ICs
Transistors
Laser Diodes
Power Modules
Diodes
Resistors
Monolithic ICs
Power Modules
Photo Link Modules
Discrete Semiconductor Devices
Transistors
Diodes
Light Emitting Diodes
Laser Diodes
Passive Components
Resistors
Capacitors
Displays
Liquid Crystal Displays
Thermal Heads / Image Sensor Heads
LED Displays
Others
8
Capacitors
Liquid Crystal Displays
LED Displays
Integrated Circuits
% change
from
previous year
-2.5
2004
155,447
43.7
2003
159,424
45.5
9.7
2002
145,349
45.2
-17.2
2001
175,455
42.9
18.3
2000
148,339
41.2
12.0
% of
net sales
% change
from
previous year
2.0
Discrete Semiconductor Devices
Thermal Heads / Image Sensor Heads
% of
net sales
2004
139,009
39.1
2003
136,252
38.9
11.5
2002
122,173
38.0
-22.3
2001
157,237
38.4
9.9
2000
143,114
39.7
10.2
% of
net sales
% change
from
previous year
Passive Components
2004
24,601
6.9
-0.4
2003
24,688
7.1
-2.5
2002
25,313
7.9
-40.7
2001
42,691
10.4
17.3
2000
36,401
10.1
-1.3
% of
net sales
% change
from
previous year
Displays
2004
36,573
10.3
22.3
2003
29,917
8.5
5.2
2002
28,430
8.9
-16.3
2001
33,952
8.3
5.4
2000
32,226
9.0
9.4
9
Divisional Review
INTEGRATED CIRCUITS
DISCRETE SEMICONDUCTOR DEVICES
Monolithic ICs
Transistors
Mastering the art of design in the system LSI
New energy-efficient solutions
With the growing demand for multifunctional IT-related
equipment and the widespread use of digital audio/video
equipment, customer requirements for system LSIs are becoming
increasingly complex as time-to-market windows turn smaller.
ROHM system LSIs are based on the Company’s expertise, its proven success at manufacturing
custom-designed LSIs, and the advanced planning and circuit design capabilities of its forwardthinking engineers. At ROHM, we exceed the system LSI requirements of our customers by
delivering complete design solutions from product planning through wafer manufacturing, mass
production, and packaging, to comprehensive support. Our unparalleled expertise and proven
track record uniquely qualifies us as the industry leader in advanced linear circuit design. Our
successful track record for delivering proven, leading-edge analog and digital interface modules,
digital cores, and proprietary low-power, low-noise circuit technologies speaks for itself. All
design tools at our design centers are automated, enabling us to deliver custom-designed system
LSI products while meeting the most aggressive production times and delivery cycles.
A recent example of our innovative approach to today’s real-world challenges is our REAL
SOCKET design system. Developed as an innovative solution to system LSI design challenges,
REAL SOCKET is now being used to mass-produce system LSI products. REAL SOCKET is
just one example of how our innovative approach to the challenges facing us today, will empower
us tomorrow to meet customer needs for larger-scale integration with greater speed and reliability
than the competition.
ROHM is the largest producer of discrete transistors in the
world. By responding promptly to the needs of our customers
and the industry, ROHM maintains its leading position in the
market. One reason for securing our first rank position in the
industry is our response to the increasing demand for resource
and energy-saving products. To address this worldwide concern, ROHM has expanded its
environmental-protection products with low-on-resistance MOSFETs and low-saturation small
signal bipolar transistors. These products are available in microminiature VMT3 packages (1.2
mm by 0.8 mm) as well as in EMT5/EMT6 packages (1.6 mm by 1.2 mm) for dual transistors.
ROHM also leads the industry in developing and marketing new energy and space-saving
transistors that deliver unparalleled reliability and exceptional longevity. Meeting diverse market
needs, ROHM transistors are available in thin, high-power packages and a variety of
configurations.
Power Modules
Our tremendous contribution to energy
conservation
ROHM power modules, including AC/DC and DC/DC
converters, contribute to energy conservation and the prevention
of global warming. In recent years, the trend toward low-voltage,
large-current power supplies has accelerated in tandem with the speed of microcomputers. This
trend has led to the growing demand for extremely efficient power supply solutions.
ROHM AC/DC converters meet this high-efficiency requirement. These miniaturized,
lightweight power modules were developed using high-breakdown-voltage and high-speed
switching circuit technology. Their ability to reduce standby current significantly compared to
transformer-type products have made ROHM’s AC/DC converters the standard power-supply IC
for home appliances.
ROHM DC/DC converters are also reaching new levels of efficiency, miniaturization, and
safety. With a dedicated LSI that incorporates a speed-up circuit as well as a wedge-shaped
protection circuit, ROHM DC/DC converters deliver reference voltage precision of ±1%.
Diodes
Utilizing original component technology to
develop advanced diodes
Diodes are the most basic discrete semiconductor components.
ROHM develops and markets diode products that command the
top share of the world market. This success is attributed to our
commitment to developing solutions that solve today’s problems
with an eye to addressing tomorrow’s challenges.
One example of this forward-thinking approach is our proprietary device technology. This
technology, unique to ROHM, allows our Schottky diodes to combine low forward voltage (VF)
and low reverse current (IR) in the same diode. This marriage of VF and IR was impossible to
achieve just a few years ago. By focusing on technological breakthroughs instead of barriers,
ROHM can deliver innovative solutions that have earned strong customer support in a myriad of
markets.
Another example of how ROHM has moved ahead of the competition is by producing and
marketing PIN diodes housed in the world’s smallest package, the VMN2 (1.0 mm by 0.6 mm).
These PIN diodes are ideally suited for the expanding cellular phone market.
In addition, the Company has completed the development of power Schottky diodes and fastrecovery diodes (FRDs), which have received positive customer feedback for operating
characteristics and reliability.
ROHM continues to serve market demands by meeting technological challenges as they evolve,
developing highly reliable solutions, and offering a stable source for supplying products.
Light Emitting Diodes
Photo Link Modules
Constant innovations in product
miniaturization
By combining optical semiconductors (infrared LEDs and PIN
photodiodes) developed in-house, dedicated LSI circuit-design
technologies and micro-miniature assembly technologies,
ROHM supplies IrDA and photoreceptor modules that continue
to lead the industry in electronic product miniaturization and energy efficiency.
Today, these modules have a wide range of applications. Examples include:
* IrDA modules used with networking devices for infrared wireless data communications
between cellular phones, notebook computers, and personal digital assistants (PDAs).
* Photoreceptor modules used with infrared receivers in remote-control units for household
appliances such as air-conditioners and DVD players.
10
Bright sources in energy efficiency
ROHM is one of the world’s leading producers of both surfacemount LEDs and conventional LED lamps. With our advanced
compound semiconductor technology, we can design and
develop packages suited to the needs of the times and the
requirements of our customers.
ROHM’s LED product family includes the bright LED series (from red to blue) that
incorporates our original four-element (AlGaInP) compound. Our LED lamps are available in
super-thin (1.6 mm by 0.8 mm; 0.4 mm in thickness), top-view, side-view, and reverse-mount
packages. Our LED lamp products include a one-of-a-kind 3-mm diameter model, with a
pressure release structure that can be directly mounted on a board using a pick and place
machine. While our LED product offerings may be diverse, they share the same high reliability
and advanced energy-saving features that our customers have come to expect.
DISPLAYS
Laser Diodes
Liquid Crystal Display
Setting the worldwide standard in the optical
disc market
Combining semiconductor, panel, and
mounting technologies in one module
By offering a product line of highly reliable solutions
developed with advanced device technology, ROHM has
become the world leader in producing laser diodes for the
growing optical disc market.
The optical disc-drive market is undergoing a number of changes. One major shift is seen in the
transition from playback-only to recordable models. Another shift is occurring in the laser-printer
arena, where faster speeds and higher resolutions are always in demand. Despite these transitions,
ROHM laser diodes are finding widespread applications in the optical disc-drive market.
One reason for this success is ROHM’s active efforts to develop higher laser-output power
products in anticipation of future market trends. We have already surpassed the competition by
delivering a 240 mW laser diode for 16-speed recording, the highest available speed for DVD
recording.
We have also enhanced our package lineup by adding a new thin-frame type product. As these
examples demonstrate, our innovative solutions enable us to respond quickly to the increasingly
diverse needs and the continuously shrinking time-to-market windows.
ROHM’s STN color LCD modules with proprietary LCD
driver ICs are widely used for cellular phone main and subdisplays. Equipped with super-thin panel and thin, high-intensity
backlight, these modules enable customers to develop more
compact, more lightweight electronic equipment than ever before. ROHM is also developing
LCDs that deliver a large number of colors and higher resolutions to meet the requirements of
next-generation cellular phones.
For monochrome LCDs, ROHM has developed COG (Chip On Glass) modules with a
distinctive panel structure. These COG modules eliminate the need for external components, and
have earned a favorable reputation in today’s market.
For facsimiles, printers and audio equipment, ROHM has developed large-scale graphics display
units with our COG modules that require fewer components and consume minimal power.
As cutting-edge components that deliver unparalleled features for electronic equipment, ROHM
LCD modules have been adopted by a broad range of markets.
PASSIVE COMPONENTS
Resistors
Flexibility in production, the key to market
leadership
Ultra-compact rectangular chip resistors and chip resistor
networks, first developed by ROHM, are essential components
for mobile phone handsets, PDAs, and other informationtechnology equipment. To meet growing demand, ROHM is
increasing production of its recently released MCR006 resistor (0.6 mm by 0.3 mm), a powerful
new addition to the conventional MCR series of chip resistors. The Company has also
supplemented its resistor product line by adding the PMR series of chip resistors for battery
detection (1 mΩ and over) and the MHR series of high-precision chip resistors (±0.1%).
ROHM continues to meet the challenges of the new millennium by delivering a stable supply of
high-quality products within shorter delivery cycles.
Capacitors
Higher capacity for smaller products
ROHM multi-layer ceramic chip capacitors and tantalum
capacitors boast the highest degree of reliability, thanks to our
exclusive cutting-edge automated production system. However,
supply and delivery management are key elements in securing
market leadership. To that end, we have established production
bases overseas, enabling us to supply capacitors to markets around the world.
In response to the growing demand for surface mount components, ROHM offers an extensive
lineup of multi-layer ceramic chip capacitors from ultra-compact (0402-size) to large (5750-size)
products.
The Company is also making tremendous strides in developing miniaturized, larger capacity
tantalum capacitor products. Orders are increasing for ROHM M-case (1608-size) capacitors,
designed for cellular phones and digital cameras. These 1608-size products are offered in
ROHM’s original chip-size packages, which combine bottom and side electrodes to provide an
ultra-low height of 0.8 mm.
To meet a wider range of requirements, ROHM has also expanded its capacitor products to
include new compact models of ultra-low ESR, functional polymer capacitors.
Thermal Heads / Image-sensor heads
Integrated innovations for industry-leading
performance
Using its leading-edge LSI technology, thin/thick-film hybrid
technology and proprietary optical components, ROHM has
developed thermal printheads and image-sensor heads for barcode printers, point-of-sale (POS) printers, and multifunctional
imaging and printing devices. Made with a ceramic substrate to ensure stable operation under
high temperature conditions, while producing only minimal dust, our thermal printheads and
image-sensor heads offer exceptional reliability. For these reasons, our thermal printheads and
image-sensor heads are extremely popular in the market.
To meet the rising demand for higher speed mobile printers, ROHM has developed the GT
series of thermal printheads designed for POS, Electronic Cash Register (ECR), and other handheld applications. We have also released the NE thermal head product series designed for color
photo printers. The output from the NE series is comparable in quality to true photographs.
Targeting the wide-ranging needs of the growing multifunction printer market, we have
expanded our lineup of image-sensor heads to include the following image-sensor heads:
* High-density 600 dpi contact image-sensor heads, with high-speed scanning capabilities for
flatbed scanners.
* Low-voltage 1200 dpi contact image-sensor heads.
LED Displays
Excellent visibility while maintaining energy
efficiency
ROHM has developed three-color displays, along with fullcolor dot-matrix LED modules that utilize RGB emitters.
Providing a 1,024-level grayscale driver for each of the three
colors (red, green, and blue), these modules can generate up to a
billion colors. The modules are ideally suited for use in traditional message boards (such as those
at airports, train stations, or any public arena), factory-automation equipment, and applications
that involve large displays of video images and other graphics.
Custom LED backlight modules from ROHM are widely used in mobile phones in Europe and
other regions. By taking advantage of our proprietary CAE system, which allows a flexible
development approach, ROHM can respond quickly to the increasing demand for thin,
lightweight, low-power backlight modules.
ROHM also offers high-intensity LEDs, which significantly reduce power consumption.
11
NEW Products
New Products
DVI Receiver LSI Ideal for Digital Displays
With the increasing
popularity of digital audio/video
equipment such as DVD players,
the flat-panel display market is
witnessing a transition from
conventional video input and Sterminal input systems to highresolution interfaces that enable
viewing of high-resolution, highdefinition transmitted images.
This transition, coupled with the ongoing shift from analog to all-digital
interfaces, is providing the driving force for adopting Digital Visual Interface
(DVI) as the industry specification for defining rich video content.
In response to these industry trends, ROHM has developed the DVI receiver,
BU6853EKV. On a single chip, the BU6853EKV incorporates the high-speed
data transmission DVI core, the digital content protection specification core,
ROHM’s proprietary encryption key protection circuit, and a color-space
conversion circuit. Taking advantage of its expertise with linear CMOS and
image signal processing technologies, the ROHM BU6853EKV delivers
blistering data transmission speeds up to 3.24 Gbps while supporting flat-panel
display specifications up to 1280 x 1024 SXGA resolution. When used with an
external EEPROM, the BU6853EKV allows users to rewrite programs,
improving usability for electronic-equipment manufacturers. The BU6853EKV
incorporates ROHM’s proprietary encryption key protection circuit, making the
LSI ideal for embedded applications that require data protection for their
sensitive information.
High-power Red Laser Diode for DVD Recording with
Industry-leading 240-mW Optical Output Power
12
The market for recordable
DVD drives is growing at
exponential rates. As the need
for faster recordable DVD drives
grows, the demand for increased
laser power that will enable
DVD drives to record more
information faster is also
increasing. To address these
needs, ROHM has focused its
expertise toward high-power laser diodes, the essential components for highspeed DVD drives. To that end, ROHM has successfully developed the
industry-leading 240-mW optical technology for x16 speed recordings. This
breakthrough technology delivers significantly faster speeds than today’s 100mW power for x4 speed recording and completely bypasses the 160-mW power
used for x8 speed recording.
The 240-mW optical power technology has been incorporated into ROHM’s
new RLD65PZB5 high-power laser diode. With its sizzling x16 recording
speed, the RLD65PZB5 slashes disc writing times. And while electric current
consumption usually increases with output power, the RLD65PZB5
incorporates ROHM’s proprietary device structure to deliver unprecedented low
current consumption. The RLD65PZB5 delivers this breakthrough technology
in the industry-standard 5.6-mm diameter package.
Not satisfied to rest on its accomplishments, ROHM continues to develop and
supply laser diodes that drive the optical-disc industry and exceed the
expectations of its customers.
New Fast Recovery Diodes Available in Two Types:
Ultra High Speed and Ultra Low VF
Demand is increasing for
high-speed, low-VF (forward
voltage) diodes in power-supply
blocks of plasma TVs and other
electronic equipment that require
high-voltage actuation to
improve the efficiency of power
supply circuits, minimize power
supply circuit-switching losses,
and suppress heat generation. In
response to this trend, ROHM has developed two series of fast-recovery diodes
the ultra-high-speed series and the ultra-low-VF series:
* The ultra-high-speed series delivers the industry’s fastest switching speed with
a breakdown voltage of 200 V.
* The ultra-low-VF series delivers a nearly 10% reduction in VF over previous
models.
Higher speed diodes require improved trr (reverse recovery time). However,
there is a trade-off between trr and VF in that trying to improve trr usually
causes the efficiency, or VF, to deteriorate.
ROHM has overcome this trade-off by adopting new processes and
optimizing materials. The result is a line of high-performance diodes that offer
the industry’s fastest speed, based on tests conducted by ROHM. To take
advantage of this technological breakthrough, the Company has expanded its
diode lineup in the 3- to 10-ampere range to include the RFxx3 series, which
deliver the fastest speed in the industry. To gain additional market share,
ROHM also offers the RFxx1 series, which delivers the lowest-ever level of VF
in the industry.
Newly Developed AC/DC Converters with Global
Compatibility
Electrical outlet shapes and
commercial power-supply
voltages vary in different
countries. The voltage used in
Japan is 100 VAC, for example,
while the neighboring country of
China uses 220 VAC.
These differences require
electronic-equipment designers
to spend huge amounts of time
and money to design power-supply circuits for individual countries. ROHM’s
new BP5045A is a compact, transformer-free AC/DC converter power-supply
module that delivers global compatibility. The BP5045A accepts a wide input
range from 100 to 240 VAC and delivers a fixed output voltage.
The BP5045A’s breakthrough technology eliminates the time, costs, and
complications associated with designing power-supply circuits. Now customers
can create compact, economical, and highly efficient universal power supplies
with fewer external components and accelerate their time-to-market by reducing
engineering time.
The BP5045A is ideally suited as a backup power supply for home-electronic
equipment and applications that can benefit from reduced standby power.
Financial
Section
CONTENTS
Financial Review
14
Eleven-Year Summary
20
Consolidated Balance Sheets
22
Consolidated Statements of Income
24
Consolidated Statements of Shareholders’ Equity
25
Consolidated Statements of Cash Flows
26
Notes to Consolidated Financial Statements
27
Independent Auditors’ Report
40
Financial Review
In the fiscal year ended March 31, 2004, the world economy as a
whole remained sluggish in the first half of the year due to the effects of
international conflicts and SARS, as well as continuous employment
uncertainty mainly in the U.S. However, in the second half, with the
U.S. housing investment and consumer spending showing improvement,
as well as with signs of economic recovery in Asia following the SARS
scare, the world economy took an upturn.
The Japanese economy also remained slow in the first half of the
year, but some signs of recovery finally appeared after the summer,
including a stock market upturn and various economic indicators showing continuing improvement.
In the electronic components industry, in the first half of the year the
market recovery resulting from certain seasonal factors remained slow
and the demand for electronic components was weak, except those for
some components for digital audio/video equipment such as flash memories. Following the autumn lull, however, supported by steady consumer spending and increasing prevalence of digital still cameras and
other digital audio/video equipment, the electronic component market
remained steady and did not show the decline seen in previous years.
In Japan, the demand for electronic components remained strong,
especially in the second half of the year, due to a steady growth in production of digital audio/video equipment such as DVD recorders and
digital still cameras, as well as the increasing sophistication of cellular
phones. The Asian electronics market, despite its slowdown in spring
due to the effects of SARS, remained brisk as a whole due to the continued production shift from the U.S., Europe, Japan and other parts of the
world, as well as a strong growth not only in export but also in consumer spending in China and other Asian countries.
In the U.S., while consumer spending was strong, the electronics
market remained slow, affected by the continued production shift to
Asia and the communications equipment market failing to attain fullfledged recovery. The European market, supported by an increase in
demand for electronic components resulting from increasing sophistication of cellular phones, remained stable despite the continued production
shift to Asia just as in the U.S.
Under these circumstances, ROHM concentrated its efforts, as in the
previous year, on capital investment efficiency improvement and streamlining of the manufacturing process, so as to ensure profits. The
Company also continued the shift of domestic production lines to overseas plants in Thailand, the Philippines, China and some other countries.
Moreover, in an effort to establish a system to respond to future market
growth from the medium- to long-term viewpoints, ROHM purchased a
semiconductor manufacturing plant in Tsukuba, Ibaraki Prefecture, of
LSI Logic Japan Semiconductor Inc., the Japanese subsidiary of the U.S.
company, LSI Logic Corporation, so as to secure sufficient production
capacity in anticipation of a growth in demand for semiconductor products.
In addition, ROHM took a progressive approach to the development
of innovative products ahead of the market needs, enhancing its product
line intended for cellular phones and digital audio/video equipment, as
well as the operation of the Optical Device Research Center, which
serves as an R&D and production base for optical devices, the market
for which is expected to undergo rapid growth.
ROHM has also strengthened its marketing system through the establishment of a customer-focused marketing organization.
As a result of these aggressive efforts, ROHM’s net sales for the fiscal year ended March 31, 2004, increased 1.5% to ¥355.63 billion from
the previous year, and net income was up 20.2% to ¥63.717 billion
although operating income was down 1.7% to ¥94.507 billion.
Results of operations
1. Results of operations
2. Income margin
(¥ Million)
500,000
Operating Income
Net Income
(%)
40
Operating Income Margin
Net Income Margin
9,
33
5
Net Sales
0
5,
35
30
27.4
32
35
1,
26
33.7
63
1
0,
28
5
0,
08
0
40
34.0
36
400,000
300,000
21.0
20
17.9
15.1
7,
74
7
,7
17
,5
0
10
63
53
,0
74
94
,1
96
8
39
.2
66
,4
5
,7
2
66
86
7
,1
65
23
13
12.2
03
2
2,
34
12
100,000
0
0
'00/3
'01/3
'02/3
'03/3
'04/3
In the year ended March 31, 2004, despite the business downturn in
the first half of the year due to the effects of international conflicts and
SARS, the Company's business took an upturn in the second half,
supported by economic recovery following the SARS scare and
increasing prevalence of digital audio/video equipment.
14
20.7
18.5
3
200,000
26.6
'00/3
'01/3
'02/3
'03/3
'04/3
Operating income margin declined slightly due to the appreciation of
the yen, while net income margin improved because a gain of 10.9
billion yen was accounted for as extraordinary gains as a result of the
transfer of the substitutional portion of the governmental pension
program.
Sales
1. Sales by product category
(¥ Million)
500,000
Integrated Circuits
2. Sales by geographical region and overseas production ratio
Discrete Semiconductor Devices
Passive Components
(¥ Million)
500,000
Displays
409,335
400,000
350,281
175,455
Asia
Americas
350,281
321,265
196,293
300,000
148,339
159,424
145,349
52.7 170,484
155,447
54.6
52.0
156,763
42.0
50.0
48.0
46.0
143,114
0
36,401
42,691
32,226
33,952
'00/3
'01/3
122,173
136,252
25,313
28,430
24,688
29,917
'02/3
'03/3
139,009
24,601
0
'04/3
28,577
18,382
21,039
34,206
29,522
'00/3
20
151,371
135,892
29,937
36,573
163,457
150,259
130,137
100,000
52.0
40
157,237
100,000
60
55,9
53.9
161,457
200,000
355,630
321,265
145,952
200,000
Overseas
Sales Ratio
(%)
80
360,080
355,630
Overseas
Production Ratio
Europe
409,335
400,000
360,080
300,000
Japan
'01/3
'02/3
18,111
19,342
'03/3
14,812
20,598
0
'04/3
Despite the slow recovery of the market as a whole, sales of LCD
modules for cellular phones, image sensor heads and printheads
increased in the display category. In the area of discrete
semiconductor devices, blue and white LEDs sold favorably.
Sales increased in Asia due to an accelerated shift of electronics
equipment production to Asia from other parts of the world. Overseas
production ratio was 52.0%, up from 50.0% in the previous year as a
result of the Company's enhanced production systems at production
bases in Asia.
3. Integrated circuits sales by geographical region
4. Discrete semiconductor devices sales by geographical region
(¥ Million)
200,000
Japan
Asia
Americas
Europe
175,455
159,424
160,000
148,339
99,121
(%)
80
160,000
60
120,000
Japan
83,847
75,443
48.1
78,902
49.2
47.4
80,000
51,987
63,133
61,982
4,995
5,043
5,889
7,312
3,811
4,113
67,363
67,146
20
40,000
3,935
4,279
3,551
5,848
0
0
'02/3
'03/3
5. Passive components sales by geographical region
(¥ Million)
200,000
Japan
Asia
Americas
Europe
120,000
67.6
67.7
65.1
63.3
36,401
0
'00/3
60
54,592
55,126
66,019
69,020
63,677
56,687
20
14,787
12,420
9,716
7,977
13,555
'01/3
'02/3
9,881
7,568
'03/3
7,501
7,896
0
'04/3
160,000
60
120,000
65.1
Japan
Asia
Americas
Europe
Overseas
Sales Ratio
(%)
80
60
59.9
42,691
11,804
15,663
10,788
6,301
7,508
12,010
5,695
9,323
'01/3
60.7
47,793
(¥ Million)
200,000
(%)
80
80,000
40,000
59.5
6. Displays sales by geographical region
Overseas
Sales Ratio
160,000
139,009
40
'00/3
'04/3
136,252
122,173
60.9
60.0
15,697
'01/3
Overseas
Sales Ratio
(%)
80
62,876
61.5
40
Europe
157,237
59,964
40,000
'00/3
Americas
143,114
43.5
0
Asia
55,033
86,314
41.8
155,447
145,349
120,000
80,000
(¥ Million)
200,000
Overseas
Sales Ratio
25,313
'02/3
8,822
8,392
3,106
4,993
24,688
'03/3
7,974
9,890
2,557
4,267
40
80,000
20
40,000
24,601
8,593
10,369
1,993
3,646
'04/3
0
51.5
51.1
46.2
32,226
33,952
17,332
7,399
2,944
4,551
0
'00/3
40
45.1
28,430
18,634
9,097
2,205
4,016
'01/3
29,917
13,894
8,831
1,749
3,956
'02/3
36,573
'03/3
20
14,676
14,510
10,441
1,738
3,228
16,922
1,767
3,208
0
'04/3
15
Financial Review
7. Sales by application
Audio
14.6%
Subassemblies
14.4%
Other Industrial
1.3%
Automotive
5.3%
Home Appliance
2.5%
Other Consumer
6.6%
'03/3
Computer and OA
21.1%
Telecommunications
13.8%
Visual
7.6%
Others
13.6%
Visual
8.2%
Others
12.2%
Audio
13.4%
Home Appliance
2.2%
Subassemblies
14.7%
Other Industrial
1.3%
Automotive
4.9%
Telecommunications
15.3%
'04/3
Other Consumer
5.9%
Computer and OA
21.1%
Note : Data on this page include guess to some extent. Please use these data for your reference.
Cost of sales, selling, general and administrative expenses, and operating income
1. Cost of sales, selling, general and administrative expenses, and operating income
(¥ Million)
500,000
Cost of Sales
S.G. & A. Expenses
Operating Income
2. Cost of sales and selling, general and administrative expenses to net sales
(%)
80
Cost of Sales Ratio
409,335
400,000
360,080
350,281
321,265
49.8
300,000
179,380
215,366
198,631
61,8
60
355,630
185,795
194,857
68,363
66,266
S.G. & A. Expenses Ratio
52.6
53.0
54.8
19.5
18.6
'03/3
'04/3
40
200,000
56,226
58,358
100,000
20
16.2
56,176
122,342
137,743
94,507
96,123
66,458
0
'00/3
'01/3
'02/3
17.5
13.7
0
'03/3
'00/3
'04/3
'01/3
'02/3
While sales remained at almost the same level for the year, rises in manufacturing expenses and labor costs contributed to the growth in the cost of sales.
Selling, general and administrative expenses showed a slight decline.
Capital expenditures and research and development costs
1. Capital expenditures
(¥ Million)
150,000
Integrated Circuits
2. Research and development costs
Discrete Semiconductor Devices
Passive Components
Displays
Others
(¥ Million)
35,000
R&D Costs
31,827
as % of Net Sales
31,381
30,000
125,020
120,000
(%)
10
25,000
22,735
60,000
20,832
60,876
90,000
20,000
15,000
57,997
32,137
24,197
43,326
0
'00/3
13,737
3,634
1,895
14,104
2,491
14,534
15,412
'01/3
'02/3
40,548
15,801
19,273
13,289
4,839
1,637
7,760
13,814
1,485
3,498
2,478
'03/3
8.8
8
6.7
6.3
6
5.1
51,958
30,000
21,443
9.1
10,000
4
5,000
2
23,129
16,028
1,666
4,466
6,669
'04/3
0
0
'00/3
'01/3
'02/3
'03/3
'04/3
To respond quickly to the increasing digitalization and strengthen cost competitiveness, ROHM made active investment, including that in the development of a
miniature and thin package product line and a 0.13 µm fine process, as well as in the establishment of a prototype production line for 300 mm wafers.
Moreover, in an effort to enhance its production system for discrete semiconductor devices, the Company purchased a semiconductor manufacturing plant in
Tsukuba, Ibaraki Prefecture, of LSI Logic Japan Semiconductor Inc.
As part of R&D efforts, besides improving R&D efficiency, ROHM is actively proceeding with the development of future technologies in a wide range of fields.
16
Financial position
1. Current ratio
2. Shareholders’ equity and total assets
(Times)
8
(¥ Million)
1000,000
7.6
Shareholders'
Equity
7
6.2
6
6.0
78.6
648,336
5
4
800,000
Shareholders' Equity (%)
to Total Assets
100
86.3
84.0
740,627
805,693
764,495
639,210
676,577
84.5
846,800
715,938
591,409
600,000
4.1
77.4
Total
Assets
80
60
509,718
3.3
3
400,000
40
200,000
20
2
1
0
0
'00/3
'01/3
'02/3
'03/3
0
'00/3
'04/3
'01/3
'02/3
'03/3
'04/3
Current ratio remained at almost the same levels as the previous year,
with no major changes in current assets and liabilities.
With the increase in the Company's profits, shareholders' equity and
total assets are on the rise each year.
3. Return on equity (ROE) and return on total assets (ROA)
4. Inventory turnover
(%)
20
Return on Equity (ROE)
Return on Total Assets (ROA)
(Month)
3
15.7
15
13.9
2.1
2
12.2
11.1
1.9
1.6
10
1.7
1.7
9.2
8,1
6.4
6.9
5
7.7
1
5.2
0
0
'00/3
'01/3
'02/3
'03/3
'04/3
Return on equity (ROE) and return on total assets (ROA) improved due
to profit increase.
'00/3
'01/3
'02/3
'03/3
'04/3
Inventory turnover period lengthened to 1.9 months due to an increase
in inventories resulting from an increase in backlog of orders as of the
end of the year under review.
Per share information
1. Net income per share
2. Shareholders’ equity per share
(¥)
800
(¥)
7,000
722.68
6,026.56
6,000
600
5,694.92
5,382.93
562.97
535.62
4,982.19
5,000
4,321.52
445.51
4,000
400
328.24
3,000
2,000
200
1,000
0
0
'00/3
'01/3
'02/3
'03/3
'04/3
Net income per share increased by ¥90 to ¥535.62 as the Company's
net income improved.
'00/3
'01/3
'02/3
'03/3
'04/3
Shareholders' equity per share increased to ¥6,026.56 due to the
Company showing steady profits each year.
17
Financial Review
Net income, Depreciation, and Capital expenditure
(¥ Million)
160,000
Net Income
Depreciation and Amortization
Capital Expeditures
(¥ Million)
70,000
64,879
120,000
60,000
57,628
86,165
80,000
39,274
53,003
63,717
50,000
52,377
52,424
45,869
40,000
– 43,326
– 40,548
– 51,958
66,727
48,325
47,489
40,000
– 40,000
53,082
38,759
0
– 57,997
20,000
– 125,020
– 80,000
30,000
10,000
– 120,000
– 160,000
14,227
0
'00/3
'01/3
'02/3
'03/3
'04/3
'00/3
'01/3
'02/3
'03/3
'04/3
Net balance (net income + depreciation and amortization - capital
expenditure)
Net financial revenue
(¥ Million)
6,000
(¥ Million)
6,000
Interest and Dividend Income
Interest
5,321
5,315
4,798
4,739
4,000
3,596
2,786
4,000
2,370
2,000
3,592
2,785
2,370
0
2,000
– 59
–6
–4
–1
0
'00/3
'01/3
'02/3
'03/3
'04/3
– 2,000
– 4,000
0
'00/3
'01/3
'02/3
'03/3
'04/3
In fund management, ROHM places top priority on safety. The Company recorded a ¥2.3 billion surplus in net financial revenue under the prolonged low
interest rate condition in Japan.
Number of employees
Overseas
Subsidiaries
(Number)
20,000
Domestic
Subsidiaries
Exchange rate and
foreign currency exchange gains or losses
ROHM
Nonconsolidated
Number of
R&D Employees
5,102
4,000
16,841
16,000
15,316
13,659
12,900
10,000
8,901
7,218
Average for Fiscal Year(US$)
122.3
100
2,000
50
0
0
– 2,000
6,000
– 4,000
4,000
2,000
1,221
'00/3
3,863
3,813
2,919
2,673
2,578
2,602
2,680
2,873
1,247
'01/3
1,331
'02/3
2,706
– 6,000
1,720
1,943
'03/3
'04/3
– 5,529
– 5,807
2,985
With the shift to overseas production, the number of employees is
increasing at overseas production bases. The Company has also been
augmenting personnel for research and development, chiefly in Japan.
(¥)
150
114.0
125.1
109.7
11,295
9,575
8,000
18
4,452
111.9
15,174
12,000
0
Foreign Currency Exchange Gains or Losses
18,591
18,000
14,000
(¥ Million)
6,000
– 8,000
'00/3
'01/3
'02/3
– 7,241
'03/3
'04/3
The average yen-dollar exchange rate during this year was ¥114.0.
The Company made a loss of ¥5.5 billion from exchange losses
resulting from the appreciation of the yen.
Stock data
1. Stock prices; Quarterly highs and lows in each year (Osaka Securities Exchange)
(¥)
45,000
44,000
42,700
40,000
37,950
35,000
33,150
30,400
30,000
29,000
25,800
25,000
28,100
24,400
25,420
25,200
22,300
20,200
20,000
18,500
15,000
19,480
20,300
19,950
16,980
19,180
18,050
20,360
18,080
16,020
13,690
10,000
11,270
10,930
2Q
3Q
17,590
16,010
16,200
12,850
12,720
12,030
16,560
14,380
12,830
10,560
15,560
14,090
11,360
11,630
3Q
4Q
5,000
0
1Q
2Q
3Q
4Q
1Q
2Q
'00/3
3Q
4Q
1Q
'01/3
2. Cash dividends per share and payout ratio
(¥)
70.0
Year-end
First six months
4Q
1Q
'02/3
2Q
3Q
4Q
1Q
2Q
'03/3
'04/3
3. Price-earnings ratio (PER)
Payout Ratio
(Times)
80
(%)
12.0
60.0
63.4
55.0
50.0
10.0
59.6
60
10.3
40.0
8.0
30.0
42.50 6.0
5.7
40
4.9
20.0
10.0
19.0
19.0
3.4 9.50
2.6
'00/3
'01/3
29.1
20
12.50
28.8
25.1
2.0
9.50
'02/3
4.0
22.0
9.50
9.50
9.50
0.0
19.0
9.50
12.50
9.50
'03/3
0.0
0
'04/3
'00/3
'01/3
'02/3
'03/3
'04/3
2.3
2.2
'03/3
'04/3
The Company has decided to pay annual dividends of ¥55.00 per
share in light of business performance of the fiscal year ended March
31, 2004, expected demand for funds, and other factors.
4. Price cash flow ratio (PCFR)
5. Price book-value ratio (PBR)
(Times)
10
(Times)
50
40
8.3
39.9
8
30
6
25.3
20
4.2
4
17.9
14.5
3.6
14.6
10
2
0
0
'00/3
'01/3
'02/3
'03/3
'04/3
'00/3
'01/3
'02/3
Notes (Computation)
• Price-earnings ratio (PER) =stock price (year-end closing price at Osaka Securities Exchange)/net income per share
• Price cash flow ratio (PCFR) = stock price (year-end closing price at Osaka Securities Exchange)/cash flow per share*
*Cash flow per share = (net income + depreciation and amortization)/number of outstanding shares
• Price book-value ratio (PBR) = stock price (year-end closing price at Osaka Securities Exchange)/net assets per share
The computation of net income per share and cash flow per share is based on the average number of shares of common stock outstanding during each year.
The average number of common shares outstanding (consolidated) used in the computation for the fiscal year 2004, 2003, 2002, 2001, and 2000 was 118,784
thousand, 118,743 thousand, 118,671 thousand, 118,599 thousand and 117,777 thousand, respectively.
19
Eleven-Year Summary
ROHM CO., LTD. and Subsidiaries
Years ended March 31
1994
1995
1996
1997
Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥199,988
¥241,493
¥ 292,280
¥ 297,790
Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
138,063
153,792
169,365
165,436
Selling, general and administrative expenses . . . . . . . . . . . . . . . . .
36,134
40,757
43,031
46,834
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
25,791
46,944
79,884
85,520
Income before income taxes and minority interests . . . . . . . . . . . .
23,046
45,030
78,303
89,962
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10,899
23,589
38,055
42,888
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12,512
22,685
38,199
45,540
Capital expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
27,131
37,895
57,676
38,014
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . .
25,590
36,074
31,881
37,563
Basic net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ 123.79
¥ 214.10
¥ 343.63
¥ 393.56
Diluted net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
118.77
198.98
332.22
386.15
Cash dividends applicable to the year . . . . . . . . . . . . . . . . . . . . .
14.50
19.00
25.00
19.00
Current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ 208,575
¥ 243,194
¥ 282,750
¥ 299,795
Current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
63,147
88,193
114,207
103,520
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
81,081
58,308
33,127
12,259
Shareholders' equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
201,618
236,609
292,249
338,541
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
363,324
401,265
459,344
479,063
Number of employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13,240
13,566
13,739
12,614
For the Year:
Per Share Information (in yen and U.S. dollars):
At Year-End:
Notes:
20
1. U.S. dollar amounts are provided solely for convenience at the rate of ¥106 to US$1, the approximate exchange rate at March 31, 2004.
2. Certain reclassifications of previously reported amounts have been made to conform with current classifications.
3. Certain retroactive adjustments of previously reported per share information have been made to conform with current method (see Note 2(m) to consolidated financial
statements). Diluted net income per share for 2004 is not disclosed because there is no outstanding potentially dilutive securities.
4. Effective April 1, 1994, the main foreign subsidiaries changed the method of depreciation for property, plant and equipment from the straight-line method to the
declining-balance method. The effect of this change was to decrease “Income before income taxes and minority interests” for the year ended March 31, 1995, by ¥2,412
million.
5. Effective April 1, 1997, the Company and certain domestic subsidiaries changed their accounting policy for retirement benefits for directors and corporate auditors from
the cash basis to the accrual basis (see Note 2(f) to consolidated financial statements).
6. Effective April 1, 1999, the Company and its domestic subsidiaries changed their accounting method or adopted a new accounting standard as follows:
(1) changed their accounting method for employees’ retirement plans. The annual provision for retirement benefits was calculated to state the liability for retirement
benefits at the amount of the expected benefits at the retirement date, less the fair value of the plan assets. The cumulative effect of this change, amounting to ¥5,076
million, was charged to income and “Income before income taxes and minority interests” was decreased by ¥2,277 million for the year ended March 31, 2000.
(2) adopted a new accounting standard for research and development cost. The cumulative effect of this adoption, amounting to ¥2,146 million, was charged to income
and “Operating Income” and “Income before income taxes and minority interests” were decreased by ¥2,193 million and ¥4,339 million, respectively for the year ended
March 31, 2000.
(3) changed their accounting method for interperiod allocation of income taxes in accordance with new accounting standards which are based on the asset and liability
method. The cumulative effect of the change on interperiod tax allocation in prior years in the amount of ¥8,136 million is included as an adjustment to retained earnings
as of April 1, 1999. The effect of this change was to decrease “Net Income” by ¥3,021 million for the year ended March 31, 2000.
7. Effective April 1, 2000, the Company and its domestic subsidiaries adopted (1) a new accounting standard for financial instruments, (2) a new accounting standard for
employees’ retirement benefits, and (3) a revised accounting standard for foreign currency transactions. The effect of these adoptions to the consolidated statement of
income was immaterial for the year ended March 31, 2001.
Millions of
yen
Thousands of
U.S. dollars
1998
1999
2000
2001
2002
2003
2004
2004
¥ 335,923
¥ 328,631
¥ 360,080
¥ 409,335
¥ 321,265
¥ 350,281
¥ 355,630
$ 3,355,000
163,060
185,175
179,380
215,366
198,631
185,795
194,857
1,838,274
56,260
53,365
58,358
56,226
56,176
68,363
66,266
625,151
116,603
90,091
122,342
137,743
66,458
96,123
94,507
891,575
119,486
93,340
114,902
147,059
68,129
90,476
101,070
953,491
56,453
39,706
46,469
60,581
28,829
37,479
37,268
351,585
60,990
52,235
66,727
86,165
39,274
53,003
63,717
601,104
51,607
49,202
57,997
125,020
43,326
40,548
51,958
490,170
35,088
41,242
38,759
53,082
52,377
52,424
45,869
432,726
¥ 521.71
¥ 443.14
¥ 562.97
¥ 722.68
¥ 328.24
¥ 445.51
¥ 535.62
$ 5.05
517.34
441.15
561.63
721.47
327.89
445.30
19.00
19.00
19.00
19.00
19.00
22.00
55.00
0.52
¥ 345,045
¥ 341,076
¥ 407,524
¥ 449,684
¥ 445,094
¥ 519,996
¥ 530,121
$ 5,001,142
107,399
80,140
98,477
136,765
58,579
83,681
88,321
833,217
5,064
1,172
678
579
401,861
452,961
509,718
591,409
639,210
676,577
715,938
6,754,132
533,825
550,432
648,336
764,495
740,627
805,693
846,800
7,988,679
12,633
12,675
13,659
15,316
15,174
16,841
18,591
21
Consolidated Balance Sheets
ROHM CO., LTD. and Subsidiaries
March 31, 2004 and 2003
ASSETS
Current Assets:
Cash and cash equivalents (Note 3) . . . . . . . . . . . . . . . . . . . . . . . . .
Short-term investments (Note 3) . . . . . . . . . . . . . . . . . . . . . . . . . . .
Notes and accounts receivable:
Trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Allowance for doubtful notes and accounts . . . . . . . . . . . . . . . .
Inventories (Note 4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax assets (Note 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prepaid pension cost (Note 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Refundable income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prepaid expenses and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2004
2003
¥ 310,578
35,423
¥ 322,550
35,466
84,351
2,964
(591)
52,488
14,160
4,753
2004
$ 2,929,981
334,179
92,508
5,851
(503)
61,494
12,425
4,356
3,560
4,429
530,121
3,855
519,996
872,717
55,198
(4,745)
580,132
117,217
41,094
33,585
41,784
5,001,142
Property, Plant and Equipment:
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Machinery and equipment (Note 10) . . . . . . . . . . . . . . . . . . . . . . . .
Construction in progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net property, plant and equipment . . . . . . . . . . . . . . . . . . . .
53,968
150,282
355,761
23,592
583,603
(365,976)
217,627
52,537
146,665
340,014
17,779
556,995
(340,793)
216,202
509,132
1,417,755
3,356,236
222,566
5,505,689
(3,452,604)
2,053,085
Investments and Other Assets:
Investment securities (Note 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax assets (Note 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other (Note 2(a)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total investments and other assets . . . . . . . . . . . . . . . . . . . .
89,085
5,794
4,173
99,052
57,366
6,966
5,163
69,495
840,424
54,660
39,368
934,452
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ 846,800
¥ 805,693
$ 7,988,679
See notes to consolidated financial statements.
22
Thousands of
U.S. dollars
(Note 1)
Millions of
yen
LIABILITIES AND SHAREHOLDERS' EQUITY
Thousands of
U.S. dollars
(Note 1)
Millions of
yen
2004
2003
Current Liabilities:
Notes and accounts payable:
Trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Construction and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred tax liabilities (Note 8) . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued expenses and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ 23,432
42,539
10,400
381
11,569
88,321
¥ 17,866
24,228
28,733
747
12,107
83,681
Long-term Liabilities:
Liability for retirement benefits (Note 5) . . . . . . . . . . . . . . . . . . . . .
Deferred tax liabilities (Note 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total long-term liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . .
9,388
32,858
42,246
18,937
26,253
45,190
88,566
309,981
398,547
Minority Interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
295
245
2,783
Shareholders' Equity (Notes 6 and 12):
Common stock - authorized, 300,000,000 shares; issued,
118,801,388 shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net unrealized gain on available-for-sale securities (Note 3) . . . . .
Foreign currency translation adjustments . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Treasury stock-at cost
19,751 shares in 2004 and 15,498 shares in 2003 . . . . . . . . . . .
Total shareholders' equity . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2004
$
221,057
401,311
98,113
3,594
109,142
833,217
86,969
102,404
566,750
2,673
(42,557)
716,239
86,969
102,404
506,101
709
(19,363)
676,820
820,462
966,075
5,346,698
25,217
(401,480)
6,756,972
(301)
715,938
(243)
676,577
(2,840)
6,754,132
¥ 846,800
¥ 805,693
$ 7,988,679
23
Consolidated Statements of Income
ROHM CO., LTD. and Subsidiaries
Years ended March 31, 2004, 2003 and 2002
Thousands of
U.S. dollars
(Note 1)
Millions of
yen
2004
2003
2002
Net Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ 355,630
¥ 350,281
¥ 321,265
$ 3,355,000
Operating Cost and Expenses :
Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Selling, general and administrative expenses (Note 7) . .
Total operating cost and expenses . . . . . . . . . . . .
194,857
66,266
261,123
185,795
68,363
254,158
198,631
56,176
254,807
1,838,274
625,151
2,463,425
Operating Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
94,507
96,123
66,458
891,575
2,370
2,786
(1)
(7,241)
Other Income (Expenses):
Interest and dividend income . . . . . . . . . . . . . . . . . . . . .
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign currency exchange gains (losses) - net . . . . . . . .
Gain on transfer of the substitutional portion
of the governmental pension program (Note 5) . . . . .
Loss on transfer to a defined contribution
pension plan (Note 5) . . . . . . . . . . . . . . . . . . . . . . . . .
Special retirement expense (Note 5) . . . . . . . . . . . . . . . .
Other - net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total other income (expenses) - net . . . . . . . . . .
10,900
Income before Income Taxes and Minority Interests . . . . . . . . .
Income Taxes (Note 8):
Current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deferred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total income taxes . . . . . . . . . . . . . . . . . . . . . . . .
Minority Interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Per Share Information (Notes 2(m) and 11):
Basic net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Diluted net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash dividends applicable to the year . . . . . . . . . . . . . . .
See notes to consolidated financial statements.
24
(5,529)
2004
3,596
(4)
5,102
22,358
(52,160)
102,830
(20,802)
(2,205)
(1,191)
(5,647)
(5,436)
(1,587)
1,671
9,690
61,916
101,070
90,476
68,129
953,491
26,731
10,537
37,268
35,281
2,198
37,479
22,621
6,208
28,829
252,179
99,406
351,585
1,027
6,563
6
(85)
¥ 63,717
¥ 53,003
(26)
¥ 39,274
55.00
¥ 445.51
445.30
22.00
$
601,104
U.S. dollars
Yen
¥ 535.62
(802)
¥ 328.24
327.89
19.00
$ 5.05
0.52
Consolidated Statements of Shareholders’ Equity
ROHM CO., LTD. and Subsidiaries
Years ended March 31, 2004, 2003 and 2002
Outstanding number
of shares of
common stock
Balance at April 1, 2001 . . . . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Conversion of convertible debt . . . . . . . . . . . . . . . .
Cash dividends, ¥19.00 per share . . . . . . . . . . . . .
Bonuses to directors . . . . . . . . . . . . . . . . . . . . . .
Net unrealized gain on available-for-sale securities . . .
Foreign currency translation adjustments . . . . . . . . .
Purchase of treasury stock . . . . . . . . . . . . . . . . . . .
Balance at March 31, 2002 . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Conversion of convertible debt . . . . . . . . . . . . . . . .
Conversion of convertible debt
by issuance of treasury stock . . . . . . . . . . . . . . . .
Cash dividends, ¥19.00 per share . . . . . . . . . . . . .
Bonuses to directors . . . . . . . . . . . . . . . . . . . . . .
Net unrealized gain on available-for-sale securities . . .
Foreign currency translation adjustments . . . . . . . . .
Purchase of treasury stock . . . . . . . . . . . . . . . . . . .
Balance at March 31, 2003 . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Decrease in retained earnings due to decrease in
ownership of an associated company . . . . . . . . . . .
Cash dividends, ¥25.00 per share . . . . . . . . . . . . . .
Bonuses to directors . . . . . . . . . . . . . . . . . . . . . .
Net unrealized gain on available-for-sale securities . . .
Foreign currency translation adjustments . . . . . . . . .
Purchase of treasury stock . . . . . . . . . . . . . . . . . . .
Balance at March 31, 2004 . . . . . . . . . . . . .
Millions of yen
Common
stock
Capital
surplus
Retained
earnings
¥ 419,179
39,274
118,613,291
¥ 86,687
¥ 102,122
76,305
115
115
Net unrealized
gain on availablefor-sale
securities
¥ 788
Foreign
currency
translation
adjustments
¥ (17,348)
Total
shareholders'
equity
Treasury
stock
¥ (19)
(2,254)
(456)
209
10,820
(1,606)
118,687,990
86,802
102,237
111,061
167
167
997
455,743
53,003
(22)
(41)
(6,528)
83
(69)
(2,255)
(321)
4,716
(288)
(12,835)
(17,877)
118,785,890
86,969
102,404
506,101
63,717
(19,363)
709
(285)
(243)
(5)
(2,970)
(93)
1,964
(23,194)
(4,253)
118,781,637
¥ 86,969
¥ 102,404
¥ 566,750
¥ 2,673
¥ (42,557)
(58)
¥ (301)
¥ 591,409
39,274
230
(2,254)
(456)
209
10,820
(22)
639,210
53,003
334
14
(2,255)
(321)
(288)
(12,835)
(285)
676,577
63,717
(5)
(2,970)
(93)
1,964
(23,194)
(58)
¥ 715,938
Thousands of U.S. dollars (Note 1)
Common
stock
Balance at March 31, 2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Decrease in retained earnings due to decrease in ownership
of an associated company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash dividends, $0.24 per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bonuses to directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net unrealized gain on available-for-sale securities . . . . . . . . . . . . . . . .
Foreign currency translation adjustments . . . . . . . . . . . . . . . . . . . . . . . .
Purchase of treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Balance at March 31, 2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$ 820,462
Capital
surplus
Retained
earnings
Net unrealized
gain on availablefor-sale
securities
$ 966,075 $ 4,774,538
601,104
$ 6,689
Foreign
currency
translation
adjustments
$ (182,670)
(47)
(28,019)
(878)
18,528
(218,810)
$ 820,462
$ 966,075 $ 5,346,698
$ 25,217
$ (401,480)
Treasury
stock
Total
shareholders'
equity
$ (2,292) $ 6,382,802
601,104
(47)
(28,019)
(878)
18,528
(218,810)
(548)
(548)
$ (2,840) $ 6,754,132
See notes to consolidated financial statements.
25
Consolidated Statements of Cash Flows
ROHM CO., LTD. and Subsidiaries
Years ended March 31, 2004, 2003 and 2002
Thousands of
U.S. dollars
(Note 1)
Millions of
yen
2004
Operating Activities:
Income before income taxes and minority interests . . . . . . . . . . . . . . . .
Adjustments for:
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amortization of goodwill - net . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest and dividends income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign currency exchange losses (gains) - net . . . . . . . . . . . . . . . . .
Increase (decrease) in net liability for retirement benefits . . . . . . . .
Write-down of investment securities . . . . . . . . . . . . . . . . . . . . . . . . .
Changes in assets and liabilities:
Decrease (increase) in notes and accounts receivables - trade . .
Decrease (increase) in inventories . . . . . . . . . . . . . . . . . . . . . . . .
Increase (decrease) in notes and accounts payables - trade . . . . .
Other - net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sub-total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest and dividends - received . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest - paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income taxes - paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash provided by operating activities . . . . . . . . . . . . . . .
¥ 90,476
2002
¥ 68,129
2004
$
953,491
45,869
17
(2,370)
2,016
(8,978)
9
52,424
(261)
(2,786)
4,983
1,529
803
52,377
(83)
(3,596)
(4,066)
493
1,992
432,726
160
(22,358)
19,019
(84,698)
85
(10,822)
(12,143)
6,605
2,601
123,874
2,569
15,203
19,427
(5,470)
1,001
145,407
3,753
(4)
(64,431)
84,725
(102,094)
(114,557)
62,311
24,538
1,168,623
24,236
(48,077)
78,366
(901)
(7,655)
570
(420)
138,762
3,037
(1)
(867)
140,931
Investing Activities:
Decrease (increase) in short-term investments and investment securities - net . .
Purchases of property, plant and equipment . . . . . . . . . . . . . . . . . . . . .
Other - net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash used in investing activities . . . . . . . . . . . . . . . . . . .
(28,097)
(45,221)
1,181
(72,137)
(3,664)
(35,828)
1,110
(38,382)
12,857
(79,440)
(1,120)
(67,703)
(265,066)
(426,613)
11,141
(680,538)
Financing Activities:
Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other - net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash used in financing activities . . . . . . . . . . . . . . . . . . .
(2,970)
(59)
(3,029)
(2,255)
(290)
(2,545)
(2,254)
52
(2,202)
(28,019)
(556)
(28,575)
Effect of Exchange Rate Changes on Cash and Cash Equivalents . . . . . . . .
(15,172)
(7,794)
5,973
(143,133)
Net Increase (Decrease) in Cash and Cash Equivalents . . . . . . . . . . . . . . . . .
(11,972)
92,210
20,793
(112,944)
Cash and Cash Equivalents at Beginning of Year . . . . . . . . . . . . . . . . . . . . .
322,550
230,340
209,547
3,042,925
Cash and Cash Equivalents at End of Year . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ 310,578
¥ 322,550
¥ 230,340
$ 2,929,981
¥ 320
14
¥ 230
Noncash Financing Activities:
Stock issued on conversion of convertible debt . . . . . . . . . . . . . . . . . . .
Conversion of convertible debt by issuance of treasury stock . . . . . . . . .
See notes to consolidated financial statements.
26
¥ 101,070
2003
(453,557)
739,302
Notes to Consolidated Financial Statements
ROHM CO., LTD. and Subsidiaries
1. Basis of Presenting Consolidated Financial Statements
The accompanying consolidated financial statements
have been prepared in accordance with the provisions
set forth in the Japanese Securities and Exchange Law
and its related accounting regulations, and in
conformity with accounting principles generally
accepted in Japan, which are different in certain
respects as to application and disclosure requirements
of International Financial Reporting Standards.
In preparing these consolidated financial statements,
certain reclassifications and rearrangements have
been made to the consolidated financial statements
issued domestically in order to present them in a form
which is more familiar to readers outside Japan.
Certain reclassifications of previously reported
amounts have been made to conform with current
classifications.
The consolidated financial statements are stated in
Japanese yen, the currency of the country in which
ROHM CO., LTD. (the “Company”) is incorporated
and operates. The translations of Japanese yen
amounts into U.S. dollar amounts are included solely
for the convenience of readers outside Japan and have
been made at the rate of ¥106 to $1, the approximate
rate of exchange at March 31, 2004. Such translations
should not be construed as representations that the
Japanese yen amounts could be converted into U.S.
dollars at that or any other rate.
2. Summary of Significant Accounting Policies
(a) Consolidation
The consolidated financial statements include the
accounts of the Company and all of its subsidiaries
(together, the “Group”).
Under the control or influence concept, those
companies in which the Company, directly or
indirectly, is able to exercise control over
operations are fully consolidated, and those
companies over which the Group has the ability to
exercise significant influence are accounted for by
the equity method.
The significant difference between the equity in
net assets acquired at the respective dates of
acquisition and the cost of the Company’s
investments in subsidiaries and associated
companies, is being amortized over a period of five
years.
Pursuant to agreements on October 21,1999
between the Company and ROHM WAKO CO.,
LTD. and ROHM APOLLO CO., LTD., the two
subsidiaries became wholly-owned subsidiaries of
the Company on April 1, 2000, by utilizing the
share exchange procedures under the Japanese
Commercial Code (the “Code”). The excess of the
acquisition costs over the Company’s equity in the
fair value of the subsidiaries’ consolidated net
assets is recorded as “Goodwill” in “Investments
and Other Assets”.
resulting from transactions within the Group is
eliminated.
(b) Cash equivalents
Cash equivalents are short-term investments that
are readily convertible into cash and that are
exposed to insignificant risk of changes in value.
Cash equivalents include time deposits, certificate
of deposits, and mutual funds investing in bonds, all
of which mature or become due within three months
of the date of acquisition.
(c) Debt and equity securities
Debt and equity securities are classified and
accounted for depending on management’s intent.
Available-for-sale securities, which represent
securities not classified as either trading securities
or held-to-maturity debt securities, are reported at
fair value, with unrealized gains and losses, net of
applicable taxes, reported as a separate component
of shareholders’ equity. The cost of available-forsale securities sold is determined based on the
moving average method.
The Group classified all debt and equity securities
as available-for-sale securities.
(d) Inventories
Inventories are stated principally at cost
determined by the moving average method.
All significant intercompany balances and
transactions have been eliminated in consolidation.
All material unrealized profit included in assets
27
Notes to Consolidated Financial Statements
ROHM CO., LTD. and Subsidiaries
(e) Property, plant and equipment
Property, plant and equipment are stated at cost.
Depreciation is computed principally by the
declining-balance method over the estimated useful
lives of the assets.
Estimated useful lives of the assets are principally
as follows:
Buildings .................................... 3 to 50 years
Machinery and equipment.......... 2 to 10 years
(f) Liability for retirement benefits
The Company and certain domestic subsidiaries
have two types of pension plans for employees;
non-contributory and contributory funded defined
benefit pension plans and accounted for the liability
for retirement benefits based on the projected
benefit obligations and plan assets at the balance
sheet date.
Certain foreign subsidiaries also have local
employees’ defined contribution pension plans.
The contributory funded defined benefit pension
plan, which is established under the Japanese
Welfare Pension Insurance Law, covers a
substitutional portion of the governmental pension
program managed by the Company on behalf of the
government and a corporate portion established at
the discretion of the Company.
In accordance with the Defined Benefit Pension
Plan Law enacted in April 2002, the Company
applied for an exemption from obligation to pay
benefits for future employee services related to the
substitutional portion which would result in the
transfer of the pension obligations and related assets
to the government upon approval. The Company
obtained approval of exemption from the future
obligation by the Ministry of Health, Labor and
Welfare on December 16, 2002.
In the current year, the Company applied for
transfer of the substitutional portion of past pension
obligations to the government and obtained
approval by the Ministry of Health, Labor and
Welfare on December 1, 2003. The Company
transferred the substitutional portion of the pension
obligations and related assets to the government on
March 26, 2004 and recognized ¥10,900 million
($102,830 thousand) as “Gain on transfer of the
substitutional portion of the governmental pension
program” in other income for the difference
between the balance of the retirement benefit
liabilities brought forward and the amount actually
transferred for the year ended March 31, 2004 .
According to the enactment of the Defined
Contribution Pension Plan Law in October 2001,
the Company and certain domestic subsidiaries will
28
implement a defined contribution pension plan in
the next fiscal year by which the former qualified
defined benefit pension plan will be terminated. The
Company and certain domestic subsidiaries applied
accounting treatment specified in a guidance issued
by the Accounting Standards Board of Japan (the
“ASBJ”). The effect of this transfer was to decrease
income before income taxes and minority interests
by ¥2,205 million ($20,802 thousand) and was
recorded as “Loss on transfer to a defined
contribution pension plan” in the income statement
for the year ended March 31, 2004.
Effective April 1, 1997, the Company and certain
domestic subsidiaries changed their accounting
policy for retirement benefits for directors and
corporate auditors from the cash basis to the accrual
basis. The cumulative effect on prior years of this
change, amounting to ¥1,843 million, was
amortized over a period of five years beginning
with fiscal 1998.
Amounts payable to directors and corporate
auditors upon retirement are subject to the approval
of shareholders.
(g) Research and development costs
Research and development costs are charged to
“Selling, general and administrative expenses” as
incurred.
(h) Leases
All leases of the Company and its domestic
subsidiaries are accounted for as operating leases.
Under Japanese accounting standards for leases,
finance leases that deemed to transfer ownership of
the leased property to the lessee are to be
capitalized, while other finance leases are permitted
to be accounted for as operating lease transactions if
certain “as if capitalized” information is disclosed
in the notes to the lessee’s financial statements.
(i) Income taxes
The provision for income taxes is computed based
on the pretax income included in the consolidated
statements of income. The asset and liability
approach is used to recognize deferred tax assets
and liabilities for the expected future tax
consequences of temporary differences between the
carrying amounts and the tax basis of assets and
liabilities. Deferred taxes are measured by applying
currently enacted tax laws to the temporary
differences.
(j) Foreign currency transactions
All short-term and long-term monetary receivables
and payables denominated in foreign currencies are
translated into Japanese yen at the exchange rates at
the balance sheet date. The foreign exchange gains
and losses from translation are recognized in the
income statement to the extent that they are not
hedged by forward exchange contracts.
(k) Foreign currency financial statements
The balance sheet accounts of foreign subsidiaries
are translated into Japanese yen at the current
exchange rates as of the balance sheet date except
for shareholders’ equity, which is translated at the
historical rates. Differences arising from such
translation were shown as “Foreign currency
translation adjustments” in a separate component of
shareholders’ equity.
Revenue and expense accounts of foreign
subsidiaries and an associated company are
translated into Japanese yen at the average
exchange rates.
(l) Derivatives and hedging activities
The Group uses derivative financial instruments to
manage its exposures to fluctuations in foreign
exchange and interest rates. Foreign exchange
forward contracts and interest rate swaps are
utilized by the Group to reduce foreign currency
exchange and interest rate risks. The Group does
not enter into derivatives for trading or speculative
purpose.
Monetary receivables and payables denominated
in foreign currencies, for which foreign exchange
forward contracts are used to hedge the foreign
currency fluctuations, are translated at the
contracted rate if the forward contracts qualify for
hedge accounting.
Interest rate swaps that qualify for hedge
accounting and meet specific matching criteria are
not remeasured at market value but the differential
paid or received under the swap agreements are
recognized and included in interest expenses or
income when paid or received.
(m) Per share information
Effective April 1, 2002, the Company adopted a
new accounting standard for earnings per share of
common stock issued by the ASBJ.
Under the new standard, basic net income per
share is computed by dividing net income available
to common shareholders, which is more precisely
computed than under previous practices, by the
weighted-average number of common shares
outstanding in each period, retroactively adjusted
for stock splits.
Diluted net income per share reflects the potential
dilution that could occur if securities were exercised
or converted into common stock. Diluted net
income per share of common stock assumes full
conversion of the outstanding convertible debt at
the beginning of the year (or at the time of issuance)
with an applicable adjustment for related interest
expense, net of tax, and full exercise of outstanding
warrants. Basic net income and diluted net income
per share for the years ended March 31, 2004, 2003
and 2002 are computed in accordance with the new
standard. However, diluted net income per share for
2004 is not disclosed because there is no
outstanding potentially dilutive securities.
Cash dividends per share presented in the
accompanying consolidated statements of income
are dividends applicable to the respective years
including dividends to be paid after the end of the
year.
(n) New Accounting Pronouncements
In August 2002, the Business Accounting Council
issued a Statement of Opinion, “Accounting for
Impairment of Fixed Assets”, and in October 2003
the ASBJ issued Guidance No.6, “Guidance for
Accounting Standard for Impairment of Fixed
Assets”. These new pronouncements are effective
for fiscal years beginning on or after April 1, 2005
with early adoption permitted for fiscal years
ending on or after March 31, 2004.
The new accounting standard requires an entity to
review its long-lived assets for impairment
whenever events or changes in circumstances
indicate that the carrying amount of an asset or asset
group may not be recoverable. An impairment loss
would be recognized if the carrying amount of an
asset or asset group exceeds the sum of the
undiscounted future cash flows expected to result
from the continued use and eventual disposition of
the asset or asset group. The impairment loss would
be measured as the amount by which the carrying
amount of the asset exceeds its recoverable amount,
which is the higher of the discounted cash flows
from the continued use and eventual disposition of
the asset or the net selling price at disposition.
The Group is currently in the process of adopting
these pronouncements, and is not able to determine
the effect of adoption.
29
Notes to Consolidated Financial Statements
ROHM CO., LTD. and Subsidiaries
3. Debt and equity securities
Debt and equity securities held by the Group as of March 31, 2004 and 2003 were classified and
included in the following accounts:
Millions of
yen
Securities classified as:
Available-for-sale:
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . .
Short-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investment securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2004
Thousands of
U.S. dollars
2003
¥ 21,032
17,650
89,080
¥ 127,762
2004
¥ 26,136
21,825
57,339
¥ 105,300
$
198,415
166,510
840,377
$ 1,205,302
Information regarding each category of the marketable securities included in “Cash and cash equivalents”,
“Short-term investments” and “Investment securities” and classified as available-for-sale at March 31, 2004
and 2003 were as follows:
Millions of yen
2004
Securities classified as:
Available-for-sale:
Equity securities . . . . . . . . . . . . . . . . . . . . . . . . . .
Government and corporate bonds . . . . . . . . . . . . .
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cost
¥
2,976
98,464
21,006
¥ 122,446
Unrealized
Gains
Unrealized
Losses
¥ 4,378
239
69
¥ 4,686
¥
Fair
Value
6
182
¥
7,348
98,521
21,075
¥ 126,944
¥ 188
Millions of yen
2003
Securities classified as:
Available-for-sale:
Equity securities . . . . . . . . . . . . . . . . . . . . . . . . . .
Government and corporate bonds . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cost
¥ 2,853
74,236
21,006
¥ 98,095
Unrealized
Gains
Unrealized
Losses
Fair
Value
¥ 308
102
¥ 1,315
263
16
¥ 1,594
¥ 3,860
74,397
21,022
¥ 99,279
¥ 410
Thousands of U.S. dollars
2004
Securities classified as:
Cost
Available-for-sale:
28,075
Equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . $
928,906
Government and corporate bonds . . . . . . . . . . . . .
198,170
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,155,151
30
Unrealized
Gains
$ 41,302
2,255
651
$ 44,208
Unrealized
Losses
$
57
1,717
$ 1,774
Fair
Value
$
69,320
929,444
198,821
$ 1,197,585
Available-for-sale securities included in “Cash and cash equivalents”, “Short-term investments” and
“Investment securities” whose fair value is not readily determinable as of March 31, 2004 and 2003 were
as follows:
Carrying values
Millions of
yen
2004
Equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mutual funds investing in bonds
(included in “Cash and cash equivalents”) . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Thousands of
U.S. dollars
2003
2004
¥ 818
¥
907
$ 7,717
¥ 818
5,114
¥ 6,021
$ 7,717
Proceeds from sales of available-for-sale securities were ¥1,811 million ($17,085 thousand) and ¥7
million for the years ended March 31, 2004 and 2003, respectively. Gross realized gains and losses on
these sales, computed on the moving average basis, were ¥3 million ($28 thousand) and ¥8 million ($75
thousand), respectively, for the year ended March 31, 2004 and ¥2 million and ¥0 million, respectively,
for the year ended March 31, 2003.
The carrying values of debt securities by contractual maturities for securities classified as available-forsale at March 31, 2004 and 2003 were as follows:
Thousands of
U.S. dollars
Millions of
yen
2004
Due in one year or less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Due in one to five years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Due in five to ten years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2003
¥ 17,550
78,321
2,056
¥ 97,927
¥ 21,769
51,890
¥ 73,659
2004
$ 165,566
738,878
19,396
$ 923,840
4. Inventories
Inventories at March 31, 2004 and 2003 consisted of the following:
Millions of
yen
2004
Finished products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Semi-finished products and work in process . . . . . . . . . . . . .
Raw materials and supplies . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ 18,062
20,679
22,753
¥ 61,494
Thousands of
U.S. dollars
2003
¥ 14,648
17,697
20,143
¥ 52,488
2004
$ 170,396
195,085
214,651
$ 580,132
31
Notes to Consolidated Financial Statements
ROHM CO., LTD. and Subsidiaries
5. Retirement Plans
The Company and certain subsidiaries have
retirement plans for employees, directors and
corporate auditors.
Under these retirement plans, employees
terminating their employment are entitled to lumpsum and annuity payments based on their rate of
pay at the time of termination, length of service and
certain other factors. If the termination is
involuntary, caused by retirement at the mandatory
retirement age or caused by death, the employee is
entitled to a greater payment than in the case of
voluntary termination.
“Liability for retirement benefits” includes
retirement benefits for directors and corporate
auditors of ¥1,983 million ($18,708 thousand) and
¥2,135 million at March 31, 2004 and 2003,
respectively.
The net liability for employees’ retirement benefits at March 31, 2004 and 2003 consisted of the following:
Millions of
yen
2004
Projected benefit obligation . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fair value of plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unrecognized actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unrecognized prior service credit . . . . . . . . . . . . . . . . . . . . . .
Net liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prepaid pension cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Liability for retirement benefits . . . . . . . . . . . . . . . . . . . . .
¥ 28,947
(21,887)
(4,011)
3,049
4,356
¥ 7,405
Thousands of
U.S. dollars
2003
¥ 52,381
(28,566)
(20,069)
8,303
12,049
4,753
¥ 16,802
2004
$ 273,085
(206,481)
(37,840)
28,764
41,094
$ 69,858
As of March 31, 2002, unrecognized prior service credit arose due to amendments made by the Company
and certain subsidiaries to the articles of the pension plans to increase the eligibility age of participants for
pension benefits.
The components of net periodic pension costs for the years ended March 31, 2004, 2003 and 2002 were as
follows:
Millions of
yen
2004
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected return on plan assets . . . . . . . . . . . . . . . . . . .
Recognized actuarial loss . . . . . . . . . . . . . . . . . . . . . .
Amortization of prior service credit . . . . . . . . . . . . . . .
Gain on transfer of the substitutional portion
of the governmental pension program . . . . . . . . . . .
Loss on transfer to a defined contribution pension plan. .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net periodic benefit costs . . . . . . . . . . . . . . . . . . . . .
¥ 1,536
866
(501)
1,765
(593)
(10,900)
2,205
93
¥ (5,529)
Thousands of
U.S. dollars
2003
2002
¥ 2,111
1,233
(822)
1,264
(580)
¥ 2,670
1,412
(1,026)
577
(70)
$ 14,490
8,170
(4,726)
16,651
(5,594)
¥ 3,563
(102,830)
20,802
877
$ (52,160)
207
¥ 3,413
2004
Besides the above costs, the Group paid a special retirement allowance amounting to ¥5,436 million
during the year ended March 31, 2002 and charged it to income.
32
Assumptions used for the years ended March 31, 2004, 2003 and 2002 were as follows:
Discount rate . . . . . . . . . . . . . . . . . . . . . . . . . .
Expected rate of return on plan assets . . . . . . .
Allocation method of the retirement benefits
expected to be paid at the retirement date . .
2004
2003
2002
2.0%
2.0%
2.0%
2.5%
2.5%
3.0%
Straight-line method
based on years of service
10 years
10 years
Straight-line method
based on years of service
10 years
10 years
Straight-line method
based on years of service
Amortization period of prior service credit . . .
10 years
Recognition period of actuarial gain / loss . . . .
10 years
6. Shareholders’ Equity
Japanese companies are subject to the Code to which
various amendments have become effective since October
1, 2001.
The Code was revised whereby common stock par value
was eliminated resulting in all shares being recorded with
no par value and at least 50% of the issue price of new
shares is required to be recorded as common stock and the
remaining net proceeds as additional paid-in capital, which
is included in capital surplus. The Code permits Japanese
companies, upon approval of the Board of Directors, to
issue shares to existing shareholders without consideration
as a stock split. Such issuance of shares generally does not
give rise to changes within the shareholders’ accounts.
The revised Code also provides that an amount at least
equal to 10% of the aggregate amount of cash dividends
and certain other appropriations of retained earnings
associated with cash outlays applicable to each period shall
be appropriated as a legal reserve (a component of retained
earnings) until such reserve and additional paid-in capital
equals 25% of common stock. The amount of total
additional paid-in capital and legal reserve that exceeds
25% of common stock may be available for dividends by
resolution of the shareholders. In addition, the Code
permits the transfer of a portion of additional paid-in capital
and legal reserve to the common stock by resolution of the
Board of Directors.
The revised Code eliminated restrictions on the
repurchase and use of treasury stock allowing Japanese
companies to repurchase treasury stock by a resolution of
the shareholders at the general shareholders meeting and
dispose of such treasury stock by resolution of the Board of
Directors. The repurchased amount of treasury stock cannot
exceed the amount available for future dividend plus
amount of common stock, additional paid-in capital or
legal reserve to be reduced in the case where such
reduction was resolved at the general shareholders meeting.
The amount of retained earnings available for dividends
under the Code was ¥308,202 million ($2,907,566
thousand) as of March 31, 2004, based on the amount
recorded in the Company’s general books of account. In
addition to the provision that requires an appropriation for a
legal reserve in connection with the cash payment, the
Code imposes certain limitations on the amount of retained
earnings available for dividends.
Dividends are approved by the shareholders at a meeting
held subsequent to the fiscal year to which the dividends
are applicable. Semiannual interim dividends may also be
paid upon resolution of the Board of Directors, subject to
certain limitations imposed by the Code.
7. Research and Development Costs
Research and development costs charged to income
were ¥31,381 million ($296,047 thousand), ¥31,827
million and ¥21,443 million for the years ended
March 31, 2004, 2003 and 2002, respectively.
33
Notes to Consolidated Financial Statements
ROHM CO., LTD. and Subsidiaries
8. Income Taxes
The Company and its domestic subsidiaries are
subject to Japanese national and local income taxes
which, in the aggregate, resulted in normal effective
statutory tax rates of approximately 41.9% for fiscal
2004, 2003 and 2002. Foreign subsidiaries are
subject to income taxes of the countries in which
they operate.
On March 31, 2003, a tax reform law concerning
enterprise tax was enacted in Japan which changed
the normal effective statutory tax rate from
approximately 41.9% to 40.6%, effective for years
beginning on or after April 1, 2004. The effect of
this change on deferred taxes in the consolidated
statements of income for the year ended March 31,
2003 was immaterial.
The tax effects of significant temporary differences that resulted in deferred tax assets and liabilities
at March 31, 2004 and 2003 were as follows:
Millions of
yen
2004
Deferred tax assets:
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Liability for retirement benefits . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥
Thousands of
U.S. dollars
2003
¥ 7,748
11,253
1,667
7,458
8,015
36,141
8,248
11,761
1,636
3,559
5,738
30,942
2004
$
77,811
110,953
15,434
33,576
54,132
291,906
Deferred tax liabilities:
Undistributed earnings of foreign subsidiaries . . . . . . . .
Prepaid pension cost . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Refundable enterprise tax . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(41,752)
(1,769)
(284)
(2,157)
(45,962)
(38,623)
(1,991)
(1,401)
(42,015)
(393,887)
(16,689)
(2,679)
(20,349)
(433,604)
Net deferred tax liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ (15,020)
¥ (5,874)
$ (141,698)
Deferred tax assets (liabilities) were included in the consolidated balance sheets as follows:
Millions of
yen
2004
Current Assets - Deferred tax assets . . . . . . . . . . . . . . . . . . . .
Investments and Other Assets - Deferred tax assets . . . . . . . .
Current Liabilities - Deferred tax liabilities . . . . . . . . . . . . . .
Long-term Liabilities - Deferred tax liabilities . . . . . . . . . . .
Net deferred tax liabilities . . . . . . . . . . . . . . . . . . . . . .
34
¥ 12,425
5,794
(381)
(32,858)
¥ (15,020)
Thousands of
U.S. dollars
2003
¥ 14,160
6,966
(747)
(26,253)
¥ (5,874)
2004
$ 117,217
54,660
(3,594)
(309,981)
$ (141,698)
A reconciliation between the normal effective statutory tax rates and the actual effective tax rates
reflected in the accompanying consolidated statements of income for the year ended March 31, 2004 was
as follows:
2004
Normal effective tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Lower income tax rates applicable to income
in certain foreign countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax credit for research and development expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other-net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual effective tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
41.9%
(4.4)
(1.4)
0.8
36.9%
Above information for 2003 and 2002 is not shown because the difference between the statutory tax rate
and the actual effective tax rate was immaterial.
9. Derivatives
The Group enters into foreign exchange forward
contracts to hedge foreign exchange risk associated
with certain assets and liabilities denominated in
foreign currencies.
All derivative transactions are entered into to
hedge foreign currency exposures incorporated
within its business. Accordingly, market risk in
these derivatives is basically offset by opposite
movements in the value of hedged assets or
liabilities. The Group does not hold or issue
derivatives for trading purposes.
Because the counterparties to these derivatives are
limited to major international financial institutions,
the Group does not anticipate any losses arising
from credit risk.
Derivative transactions entered into by the Group
have been made in accordance with internal policies
which regulate the authorization and credit limit
amounts.
Derivative contracts outstanding at March 31,
2004 and 2003 were immaterial.
The Company and certain subsidiaries lease
certain machinery, computer equipment and other
assets. Total lease payments under finance leases
for the years ended March 31, 2004, 2003 and 2002
were ¥27 million ($255 thousand), ¥44 million and
¥104 million, respectively.
10. Leases
Pro forma information at March 31, 2004 and 2003, on an “as if capitalized” basis for finance leases
that do not transfer ownership of the leased property to the lessee were as follows:
Millions of
yen
Thousands of
U.S. dollars
Machinery and
equipment
Machinery and
equipment
2004
Acquisition cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Accumulated depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net leased property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ 172
145
¥ 27
2003
¥ 215
171
¥ 44
2004
$ 1,623
1,368
$ 255
35
Notes to Consolidated Financial Statements
ROHM CO., LTD. and Subsidiaries
Pro forma obligations under finance leases on an “as if capitalized” basis at March 31, 2004 and 2003
were as follows:
Millions of
yen
2004
Due within one year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Due after one year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Thousands of
U.S. dollars
2003
¥ 17
10
¥ 27
2004
¥ 30
14
¥ 44
$ 161
94
$ 255
The imputed interest expense portion is included in the above obligations under finance leases.
Depreciation expenses which are not reflected in the accompanying consolidated statements of income,
computed by the straight-line method were ¥27 million ($255 thousand), ¥44 million and ¥104 million for
the years ended March 31, 2004, 2003 and 2002, respectively.
11. Net Income Per Share
The average number of shares used to compute basic net income per share for the year ended March 31,
2004 was 118,784 thousand shares.
Reconciliation of the differences between basic and diluted net income per share (“EPS”) for the years
ended March 31, 2003 and 2002, were as follows:
For the year ended March 31, 2003
Basic EPS
Net income available to common shareholders . . . . . . . . . .
Effect of Dilutive Securities
Convertible debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Diluted EPS
Net income for computation . . . . . . . . . . . . . . . . . . . . . . . . .
For the year ended March 31, 2002
Basic EPS
Net income available to common shareholders . . . . . . . . . .
Effect of Dilutive Securities
Convertible debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Diluted EPS
Net income for computation . . . . . . . . . . . . . . . . . . . . . . . . .
36
Millions of
yen
Thousands of
shares
Yen
Net
income
Weighted
average shares
EPS
¥ 52,902
118,743
¥ 445.51
1
57
¥ 52,903
118,800
¥ 445.30
¥ 38,953
118,671
¥ 328.24
2
134
¥ 38,955
118,805
¥ 327.89
12. Subsequent Events
Appropriations of retained earnings
The following appropriations of retained earnings as of March 31, 2004 were approved at the Company’s
shareholders' meeting held on June 29, 2004.
Millions of
yen
Year-end cash dividends, ¥42.50 ($0.40) per share . . . . . . . . . . . . . . . .
Bonuses to directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
¥ 5,048
45
Thousands of
U.S. dollars
$ 47,623
425
13. Segment Information
Information about industry segments, geographical segments and sales to foreign customers of the Group
for the years ended March 31, 2004, 2003 and 2002 was as follows:
(a) Industry segments
The Group’s main operations are manufacturing and distributing electronic components. Under Japanese
accounting regulations, the Group is not required to disclose industry segment information because its main
industry segment represented more than 90% of its total operations.
(b) Geographical segments
The geographical segments of the Group for the years ended March 31, 2004, 2003 and 2002 were
summarized as follows:
Millions of yen
2004
Japan
Asia
Americas
Europe
Eliminations/
Corporate
Consolidated
Sales to customers . . . . .
Interarea transfer . . . . . .
Total sales . . . . . . . . . . .
Operating expenses . . . . .
Operating income (loss). .
¥ 158,766
53,200
211,966
172,892
¥ 39,074
¥ 161,086
107,034
268,120
212,321
¥ 55,799
¥ 14,088
235
14,323
14,906
¥ (583)
¥ 21,690
407
22,097
21,141
¥
956
¥ (160,876)
(160,876)
(160,137)
¥
(739)
355,630
261,123
¥ 94,507
Total assets . . . . . . . . . . .
¥ 372,752
¥ 252,675
¥ 32,248
¥ 16,495
¥ 172,630
¥ 846,800
¥ 355,630
37
Notes to Consolidated Financial Statements
ROHM CO., LTD. and Subsidiaries
Millions of yen
2003
Japan
Asia
Americas
Europe
Eliminations/
Corporate
Consolidated
Sales to customers . . . .
Interarea transfer . . . . .
Total sales . . . . . . . . . .
Operating expenses . . .
Operating income . . . .
¥ 164,399
55,369
219,768
174,163
¥ 45,605
¥ 148,016
103,305
251,321
202,028
¥ 49,293
¥ 17,420
296
17,716
17,524
¥
192
¥ 20,446
366
20,812
19,674
¥ 1,138
¥ (159,336)
(159,336)
(159,231)
¥
(105)
¥ 350,281
350,281
254,158
¥ 96,123
Total assets . . . . . . . . . .
¥ 359,655
¥ 242,582
¥ 35,177
¥ 15,062
¥ 153,217
¥ 805,693
Millions of yen
2002
Japan
38
Asia
Americas
Europe
Eliminations/
Corporate
Consolidated
Sales to customers . . . .
Interarea transfer . . . . .
Total sales . . . . . . . . . .
Operating expenses . . .
Operating income . . . .
¥ 148,777
68,844
217,621
189,806
¥ 27,815
¥ 132,617
81,368
213,985
176,375
¥ 37,610
¥ 17,084
4,745
21,829
21,642
¥
187
¥ 22,787
1,567
24,354
23,483
¥
871
¥ (156,524)
(156,524)
(156,499)
¥
(25)
321,265
254,807
¥ 66,458
Total assets . . . . . . . . . .
¥ 365,422
¥ 230,459
¥ 38,943
¥ 13,441
¥
¥ 740,627
¥ 321,265
92,362
Thousands of U.S. dollars
2004
Japan
Asia
Americas
Europe
Eliminations/
Corporate
Consolidated
Sales to customers . . . . .
Interarea transfer . . . . . .
Total sales . . . . . . . . . . .
Operating expenses . . . . .
Operating income (loss). .
$ 1,497,792 $ 1,519,679
501,887
1,009,755
1,999,679
2,529,434
1,631,057
2,003,028
$ 368,622 $ 526,406
$ 132,906
2,217
135,123
140,623
$ (5,500)
$ 204,623
$ 3,355,000
3,839 $(1,517,698)
208,462 (1,517,698) 3,355,000
199,443 (1,510,726) 2,463,425
$ 9,019 $
(6,972) $ 891,575
Total assets . . . . . . . . . . .
$ 3,516,528 $ 2,383,727
$ 304,226
$ 155,613 $ 1,628,585 $ 7,988,679
Sales and assets are summarized by geographic area based on the countries where subsidiaries are
located.
(c) Sales to foreign customers
Sales to foreign customers for the years ended March 31, 2004, 2003 and 2002 consisted of the
following:
Millions of
yen
Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Americas . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total sales to foreign customers . . . . . . . . . . .
Thousands of
U.S. dollars
2004
2003
2002
¥ 163,457
14,812
20,598
¥ 198,867
¥ 151,371
18,111
19,342
¥ 188,824
¥ 135,892
18,382
21,039
¥ 175,313
2004
$ 1,542,047
139,736
194,321
$ 1,876,104
39
Independent Auditors’ Report
40
Principal Subsidiaries <Domestic>
Capital
% owned by
ROHM CO., LTD.
Established
Corporate name
Location
Principal business
ROHM HAMAMATSU CO., LTD.
Shizuoka
Manufacture of ROHM products
(monolithic ICs)
¥400 million
95.0%
July. 1999
ROHM WAKO DEVICE CO., LTD.
Okayama
Manufacture of ROHM products
(monolithic ICs and diodes)
¥450 million
75.0%
(100.0%)
Oct. 1996
ROHM APOLLO DEVICE CO., LTD.
Fukuoka
Manufacture of ROHM products
(monolithic ICs and transistors)
¥492 million
75.0%
(100.0%)
Mar. 1990
ROHM TSUKUBA CO., LTD.
Ibaragi
Manufacture of ROHM products
(transistors and diodes)
¥450 million
100.0%
Oct. 2003
ROHM WAKO CO., LTD.
Okayama
Manufacture of ROHM products
(diodes, LEDs, laser diodes and LED displays)
¥450 million
100.0%
Aug. 1966
ROHM APOLLO CO., LTD.
Fukuoka
Manufacture of ROHM products
(transistors, diodes and tantalum capacitors)
¥450 million
100.0%
Nov. 1969
ROHM FUKUOKA CO., LTD.
Fukuoka
Manufacture of ROHM products
(monolithic ICs, resistors and capacitors)
¥385 million
100.0%
June. 1981
ROHM AMAGI CO., LTD.
Fukuoka
Manufacture of ROHM products
(power modules, photo link modules, LCDs, thermal heads,
image sensor heads and CMOS camera modules)
¥300 million
100.0%
June. 1984
ROHM MECHATECH CO., LTD.
Kyoto
Manufacture of lead frames and molding dies
¥ 98 million
100.0%
Aug. 1988
ROHM LOGISTEC CO., LTD.
Okayama
Distribution of ROHM products
¥20 million
100.0%
Feb. 1970
NARITA GIKEN CO., LTD.
Hyogo
Development and design of electronic circuitry
¥80 million
93.7%
Aug. 1988
IDD CO., LTD.
Tokyo
Development and design of electronic circuitry
¥96 million
100.0%
Aug. 1990
Note: The percentages in parentheses indicate indirect equity ownership by ROHM CO., LTD.
(As of March 31, 2004)
41
Principal Subsidiaries <Overseas>
Corporate name
Location
Principal business
Capital
% owned by
ROHM CO., LTD.
ROHM KOREA CORPORATION
Seoul, Korea
Manufacture of ROHM products
(monolithic ICs, transistors, diodes, LEDs,
sensors, resistors and LED displays)
Won 9,654 million
0%
(100.0%)
Jul. 1972
ROHM-WAKO ELECTRONICS
(MALAYSIA) SDN. BHD
Kelantan, Malaysia
Manufacture of ROHM products
(diodes and LEDs)
M$ 53,400 thousand
0%
(100.0%)
Mar. 1989
ROHM APOLLO ELECTRONICS
(THAILAND) CO., LTD.
Pathumthani, Thailand
Manufacture of ROHM products
(transistors and diodes)
B 448,000 thousand
0%
(100.0%)
Nov. 1987
ROHM APOLLO SEMICONDUCTOR
PHILIPPINES, INC.
Cavite, Philippines
Manufacture of ROHM products
(transistors)
P 406,580 thousand
0%
(100.0%)
Apr. 2000
ROHM ELECTRONICS PHILIPPINES, INC.
Cavite, Philippines
Manufacture of ROHM products
(monolithic ICs, resistors and capacitors)
P 1,005,000 thousand
0%
(100.0%)
Sep. 1989
ROHM INTEGRATED SEMICONDUCTOR
(THAILAND) CO., LTD.
Pathumthani, Thailand
Manufacture of ROHM products
(monolithic ICs, resistors and capacitors)
B 667,500 thousand
0%
(100.0%)
Jan.1997
ROHM ELECTRONICS DALIAN CO., LTD.
Dalian, China
Manufacture of ROHM products
(power modules, LCDs, thermal heads
and image sensor heads)
¥ 5,135 million
0%
(100.0%)
Dec. 1993
ROHM ELECTRONICS WAKO
(TIANJIN) CO., LTD.
Tianjin, China
Manufacture of ROHM products
(diodes, LEDs, laser diodes,
LED displays and sensors)
¥ 3,600 million
0%
(100.0%)
Nov. 2000
ROHM ELECTRONICS COMPONENTS
(TIANJIN) CO., LTD.
Tianjin, China
Manufacture of ROHM products
(transistors, diodes, LEDs, resistors, capacitors
and LED displays)
US$ 28,200 thousand
0%
(100.0%)
Sep.1993
ROHM MECHATECH PHILIPPINES, INC.
Cavite, Philippines
Manufacture of lead frames and molding dies
P 776,000 thousand
25.0%
(100.0%)
Nov. 1993
ROHM MECHATECH
(THAILAND) CO., LTD.
Pathumthani, Thailand
Manufacture of lead frames and molding dies
B 100,000 thousand
0%
(100.0%)
Nov. 2001
ROHM ELECTRONICS U.S.A., LLC
California, U. S. A.
Sales of ROHM products
US$ 26,298 thousand
0%
(100.0%)
Nov. 1997
(EASTERN SALES DIVISION)
Georgia, U. S. A.
Sales of ROHM products
(CENTRAL SALES DIVISION)
Texas, U. S. A.
Sales of ROHM products
(WESTERN SALES DIVISION)
California, U. S. A.
Sales of ROHM products
Established
Note: The percentages in parentheses indicate indirect equity ownership by ROHM CO., LTD.
(As of March 31, 2004)
42
Corporate name
Location
Principal business
ROHM ELECTRONICS GMBH
Willich-Munchheide, Germany
Sales of ROHM products
Capital
% owned by
ROHM CO., LTD.
Jan. 1989
Established
EURO 511 thousand
0%
(100.0%)
Feb.1971
(GERMANY SALES DIVISION)
Willich-Munchheide, Germany
Sales of ROHM products
(UK SALES DIVISION)
Milton Keynes, United Kingdom
Sales of ROHM products
(FRANCE SALES DIVISION)
ISSY-LES-MOULINEAUX
CEDEX, France
Sales of ROHM products
ROHM ELECTRONICS (H.K.) CO., LTD.
Kowloon, Hong Kong
Sales of ROHM products
HK$ 27,000 thousand
0%
(100.0%)
May. 1974
ROHM ELECTRONICS (SHANGHAI) CO., LTD.
Shanghai, China
Sales of ROHM products
US$ 200 thousand
0%
(100.0%)
Aug. 1999
ROHM ELECTRONICS TRADING
(DALIAN) CO., LTD.
Dalian, China
Sales of ROHM products
US$ 200 thousand
0%
(100.0%)
Jan. 2003
ROHM ELECTRONICS TAIWAN CO., LTD.
Taiwan
Sales of ROHM products
NT$ 140,500 thousand
0%
(100.0%)
May. 1987
ROHM ELECTRONICS KOREA CORPORATION Seoul, Korea
Sales of ROHM products
Won 1,000 million
0%
(100.0%)
Jan. 1996
ROHM ELECTRONICS ASIA PTE. LTD.
Investment Division
(RES / REI)
S$ 90,630 thousand
100.0%
Apr. 1995
Administrative responsibility for subsidiaries in Asia
Sales of ROHM products
Singapore
ROHM ELECTRONICS (MALAYSIA) SDN. BHD. Selangor, Malaysia
Sales of ROHM products
M$ 700 thousand
0%
(49.0%)
Nov. 1993
ROHM ELECTRONICS (PHILIPPINES) SALES
CORPORATION
Muntinlupa City, Philippines
Sales of ROHM products
P 13,250 thousand
0%
(100.0%)
Feb. 1996
ROHM ELECTRONICS (THAILAND) CO., LTD.
Bangkok, Thailand
Sales of ROHM products
B 104,000 thousand
0%
(100.0%)
Sep. 1996
ROHM LSI SYSTEMS U.S.A., LLC
California, U. S. A.
Design,
Research and development of
ROHM products
US$ 1,608 thousand
0%
(100.0%)
Dec. 1997
ROHM LSI SYSTEMS (FRANCE) S.A.S.
Rennes, France
Design,
Research and development of
ROHM products
EURO 800 thousand
0%
(100.0%)
Mar. 2000
ROHM U.S.A., INC.
California, U. S. A.
Administrative responsibility for
subsidiaries in North and South
America
US$ 133,642 thousand
100.0%
Feb. 1997
Note: The percentages in parentheses indicate indirect equity ownership by ROHM CO., LTD.
(As of March 31, 2004)
43
The ROHM Group Overseas Branches
ROHM ELECTRONICS UK SALES DIVISION
ROHM LSI SYSTEMS (FRANCE) S.A.S.
ROHM ELECTRONICS FRANCE SALES DIVISION
ROHM ELECTRONICS GMBH
ROHM ELECTRONICS GERMANY SALES DIVISION
ROHM ELECTRONICS DALIAN CO., LTD.
ROHM ELECTRONICS TRADING (DALIAN) CO., LTD.
ROHM ELECTRONICS WAKO(TIANJIN) CO.,LTD.
ROHM ELECTRONICS COMPONENTS (TIANJIN) CO.,LTD.
ROHM ELECTRONICS (SHANGHAI) CO.,LTD.
ROHM TECHNOLOGY CENTER (SHANGHAI)
ROHM ELECTRONICS (H.K.) CO.,LTD.
ROHM TECHNOLOGY CENTER (H.K.)
ROHM ELECTRONICS TAIWAN CO.,LTD.
ROHM TECHNOLOGY CENTER (TAIWAN)
ROHM APOLLO ELECTRONICS (THAILAND) CO., LTD.
ROHM INTEGRATED SEMICONDUCTOR (THAILAND) CO., LTD.
ROHM MECHATECH (THAILAND) CO., LTD.
ROHM ELECTRONICS (THAILAND) CO., LTD.
ROHM-WAKO ELECTRONICS (MALAYSIA) SDN.BHD.
ROHM ELECTRONICS (MALAYSIA) SDN.BHD.
ROHM ELECTRONICS ASIA PTE.LTD.(RES/REI)
ROHM APOLLO SEMICONDUCTOR PHILIPPINES, INC.
ROHM ELECTRONICS PHILIPPINES, INC.
ROHM MECHATECH PHILIPPINES, INC.
ROHM ELECTRONICS (PHILIPPINES) SALES CORPORATION
44
ROHM LSI SYSTEMS U.S.A., LLC
ROHM ELECTRONICS U.S.A., LLC
ROHM ELECTRONICS WESTERN SALES DIVISION
ROHM ELECTRONICS CENTRAL SALES DIVISION
ROHM ELECTRONICS EASTERN SALES DIVISION
ROHM CO., LTD. Head Office
LSI Development Center
Kyoto Technology Center
ROHM TSUKUBA CO., LTD.
IDD CO., LTD.
ROHM CO., LTD. (Yokohama
(Yokohama)Office)
Yokohama Technology Center
ROHM HAMAMATSU CO., LTD
ROHM MECHATECH CO., LTD.
NARITA GIKEN CO., LTD.
ROHM WAKO DEVICE CO., LTD.
ROHM WAKO CO., LTD.
ROHM LOGISTEC CO., LTD.
ROHM APOLLO DEVICE CO., LTD.
ROHM APOLLO CO., LTD.
ROHM FUKUOKA CO., LTD.
ROHM AMAGI CO., LTD.
ROHM KOREA CORPORATION
ROHM ELECTRONICS KOREA CORPORATION
45
Board of Directors
President
Directors
Corporate Auditors
Ken Sato
Akitaka Idei
Yoshiaki Shibata
Managing Director
Nobuo Hatta
Yasuhito Tamaki
Junichi Hikita
Hidemi Takasu
Shinya Murao
Toru Okada
Toshiki Shimozono
Haruo Kitamura
(As of June 29, 2004)
Corporate Data
ROHM CO., LTD.
Date of Establishment
Number of Employees
September 17, 1958
18,591
Shareholders’ Equity
Stock Listings
¥715,938 million
(US$6,754 million)
Tokyo Stock Exchange
Osaka Securities Exchange
Common Stock
Transfer Agent
Authorized: 300,000,000
Issued: 118,801,388
UFJ Trust Bank Limited
4-3, Marunouchi 1-chome,
Chiyoda-ku, Tokyo 100-0005, Japan
Head Office
21, Saiin Mizosaki-cho, Ukyo-ku,
Kyoto 615-8585, Japan
TEL: (075) 311-2121
FAX: (075) 315-0172
(As of March 31, 2004)
46
PN.13 '04.07 ROHM © 3,500 TSU Printed in Japan