2014/3 Year End Presentation Note:This document is a translation of the 2014/3 Year End Presentation written in Japanese. In the event of any discrepancies in words, accounts, figures, or the like between this report and the original, the original Japanese version shall govern. c 2014 ROHM Co.,Ltd. All Rights Reserved ■ 2014/3 Financial Results ■ 2015/3 Plan ■ ROHM’s Strategy ・ 1. 2. 3. 4. 5. Analysis Market Reform Product Reform Structural Reform R&D Capital Investment ■ Return to Shareholders ■ ICs Business Strategy ■ Discrete Semiconductors Business Strategy c 2014 ROHM Co.,Ltd. All Rights Reserved 営全 業 部 門 Presentation ・ Business Strategy 業 績 告 業 績Year 報 告 体報 General Overview End AGENDA 01 (¥million) Sales Operating Income （Ratio） Ordinary Income （Ratio） Net Income （Ratio） EBITDA （Ratio） Average Rate （¥/US$) '13/3 '14/3 Amount of Increase YOY 292,410 331,087 +38,677 +13.2% ▲921 23,635 (▲0.3%) 11,786 (4.0%) ▲52,464 (▲17.9%) 37,958 (7.1%) 35,915 (10.8%) 32,091 (9.7%) 49,194 (13.0%) (14.9%) (83.2) (100.0) c 2014 ROHM Co.,Ltd. All Rights Reserved Year End Presentation Financial Results for FY2014 +24,556 (turnaround) － +24,129 － +204.7% － － +84,555 (turnaround) － +11,236 － +29.6% － － 02 ’13/3 ’14/3（Plan as of ’13/11） ’14/3 320,000 331,087 （¥million） 292,410 350,000 YOY +13.2% ICs (vs. Plan +2.6%) ・Strong sales of power & driver ICs for autos 300,000 ・Increase in sales of power ICs for tablet PCs ICs 250,000 150,254 154,183 +9.5% ・Weak sales of power supply & drivers for digital cameras Discretes (vs. Plan +4.9%) 140,761 ・Strong sales of transistors & diodes for autos 200,000 ・Bullish sales of ultra-small LED “PICOLED” ・Strong sales of SiCs for auto chargers and air conditioners 150,000 Discretes Modules (vs. Plan +1.6%) 99,373 100,000 112,259 117,746 +18.5% ・Strong sales of print heads for the Chinese market ・ Increase in sales of sensors for smartphones 50,000 Modules Others 0 営営 業 部 門門Presentation 業 部 経 理 報 告 業 績 告 業 績Year 報 告 全 体報 End Sales by Products（YOY） 28,253 31,147 31,648 +12.0% 24,022 26,339 27,509 +14.5% c 2014 ROHM Co.,Ltd. All Rights Reserved Others (vs. Plan +4.4%) ・Bullish sales of resistors for autos/industrial ・Increase in sales of tantalum capacitors for smartphones 01 03 営 業 部 門 経 理 報 告Presentation 業 績 告 業 績Year 報 告 全 体報 End Trend of Profits by Segment ’12/3 ’11/3 （¥million） ’13/3 ’14/3 32,736 20,000 23,635 19,036 6,352 15,000 -921 Discretes 01 04 14,087 10,000 ICs Modules 11,616 9,216 5,000 6,599 7,929 2,810 1,822 Others 1,442 737 0 -599 -1,219 -1,833 -6,665 -5,000 -7,824 -10,000 c 2014 ROHM Co.,Ltd. All Rights Reserved -796 (¥million) '14/3 Amount Sales Operating Income （Ratio） Ordinary Income （Ratio） Net Income （Ratio） EBITDA （Ratio） Average Rate （¥/US$) 331,087 '15/3 (Est.) YOY Amount Amount of Increase YOY +13.2% 344,000 +12,913 +3.9% 23,635 (turnaround) 25,500 +1,865 +7.9% － － ▲10,415 ▲29.0% － － ▲11,091 ▲34.6% － － +14,306 +29.1% － － (7.1%) 35,915 (10.8%) － +204.7% － 32,091 (turnaround) (9.7%) 49,194 (14.9%) (100.0) c 2014 ROHM Co.,Ltd. All Rights Reserved － +29.6% － (7.4%) 25,500 (7.4%) 21,000 (6.1%) 63,500 (18.5%) (100.0) Year End Presentation Forecasts for FY2015 05 ’14/3 （¥million） 350,000 331,087 ’15/3 Plan 344,000 YOY +3.9% ICs ・Increase in sales of power, LED driver ICs for the auto market 300,000 ICs 250,000 154,183 158,652 +2.9% ・Bullish sales of power ICs for tablet PCs ・Weak sales of power & driver ICs for cameras Discretes 200,000 ・Strong sales of MOSFET for autos & protection diodes for mobile devices ・Increase in sales of SiC power devices 150,000 Discretes 117,746 120,443 +2.3% Modules ・Bullish sales for smartphones 100,000 ・Strong sales of printheads for office machines Modules 50,000 Others 0 31,648 35,324 +11.6% 27,509 29,579 +7.5% c 2014 ROHM Co.,Ltd. All Rights Reserved Others ・Bullish sales of resistors & tantalum capacitors for mobile devices 営全 業 部 門 Presentation 営 業Year 部報 門 経 理 報 告End 業 績 告 業 績 体 Plan of Sales by Products（YOY） 01 02 06 c 2014 ROHM Co.,Ltd. All Rights Reserved 営全 業 部 門 Presentation ・ Business Strategy 業 績 告 業 績Year 報 告 体報 General Overview End ROHM’s Strategy 07 Analysis ① Changes in Demand （Reasons we are focusing on the auto & industrial markets） 営全 業 部 門 Presentation ・ Business Strategy 業 績 告 業 績Year 報 告 体報 General Overview End ROHM’s Strategy 08 c 2014 ROHM Co.,Ltd. All Rights Reserved Analysis ②11 Years Trend of Sales Ratio by Market 営全 業 部 門 Presentation ・ Business Strategy 業 績 告 業 績Year 報 告 体報 General Overview End ROHM’s Strategy 09 c 2014 ROHM Co.,Ltd. All Rights Reserved Analysis ③ 4 Years Trend of Sales Ratio by Market 営全 業 部 門 Presentation ・ Business Strategy 業 績 告 業 績Year 報 告 体報 General Overview End ROHM’s Strategy 10 c 2014 ROHM Co.,Ltd. All Rights Reserved 1. Market Reform ①Shifting our sales support system to automotive and industrial markets 営全 業 部 門 Presentation ・ Business Strategy 業 績 告 業 績Year 報 告 体報 General Overview End ROHM’s Strategy 11 c 2014 ROHM Co.,Ltd. All Rights Reserved 1. Market Reform ②Shifting our sales support system to overseas customers 営全 業 部 門 Presentation ・ Business Strategy 業 績 告 業 績Year 報 告 体報 General Overview End ROHM’s Strategy 12 c 2014 ROHM Co.,Ltd. All Rights Reserved 1. Market Reform ③Enhancement of Technical Support 営全 業 部 門 Presentation ・ Business Strategy 業 績 告 業 績Year 報 告 体報 General Overview End ROHM’s Strategy 13 c 2014 ROHM Co.,Ltd. All Rights Reserved 2. Product Reform ① Improving our Analog Power ICs Technology 営全 業 部 門 Presentation ・ Business Strategy 業 績 告 業 績Year 報 告 体報 General Overview End ROHM’s Strategy 14 c 2014 ROHM Co.,Ltd. All Rights Reserved 2. Product Reform ②Enhancing our Power Devices 営全 業 部 門 Presentation ・ Business Strategy 業 績 告 業 績Year 報 告 体報 General Overview End ROHM’s Strategy 15 c 2014 ROHM Co.,Ltd. All Rights Reserved 2. Product Reform ③LED Lighting Business 営全 業 部 門 Presentation ・ Business Strategy 業 績 告 業 績Year 報 告 体報 General Overview End ROHM’s Strategy 16 c 2014 ROHM Co.,Ltd. All Rights Reserved 3. Structural Reform Improving profitability 営全 業 部 門 Presentation ・ Business Strategy 業 績 告 業 績Year 報 告 体報 General Overview End ROHM’s Strategy 17 c 2014 ROHM Co.,Ltd. All Rights Reserved 4.R&D c 2014 ROHM Co.,Ltd. All Rights Reserved 営全 業 部 門 Presentation ・ Business Strategy 業 績 告 業 績Year 報 告 体報 General Overview End ROHM’s Strategy 18 5. Capital Expenditure 営全 業 部 門 Presentation ・ Business Strategy 業 績 告 業 績Year 報 告 体報 General Overview End ROHM’s Strategy 19 c 2014 ROHM Co.,Ltd. All Rights Reserved CAPEX in 2014/3 ICs （¥billion） Wafer Wafer process：Expanding process：Expanding MEMS MEMS related related manufacturing manufacturing lines lines in in ROHM ROHM HQ, HQ, intensify intensify 12 12 inch in Hamamatsu inch in Hamamatsu Assembly Assembly process：Extension process：Extension of of manufacturing manufacturing lines lines in in REPI REPI &RIST &RIST 60.0 ’14/3 Revised Plan ’14/3 Actual ’14/3→’15/3 40.0 25.4 Wafer Wafer process: process: Extending Extending manufacturing manufacturing lines lines of of 88 inch inch in in Apollo Apollo Assembly Assembly process: process: Improving Improving productivity productivity of of RIST/REPI, RIST/REPI, intensifying intensifying RIST/REPI RIST/REPI 16.5 ROHM ROHM Miyazaki: Miyazaki: Intensifying Intensifying frontfrontend end process process of of IGBT, IGBT, etc. etc. 14.2 Depreciation 20.0 20.7 Depreciation Others PH：Extending PH：Extending manufacturing manufacturing lines lines of of Dalian, Dalian, improving improving productivity, productivity, etc etc 0.0 2.5 2.7 1.8 R&D R&D euqipments euqipments of of ROHM ROHM HQ, HQ, etc. etc. c 2014 ROHM Co.,Ltd. All Rights Reserved OPM：Intensifying OPM：Intensifying sensors sensors Others 12.7 10.0 Modules Depreciation 17.3 Sales management, etc. Wafer Wafer process: process: Intensifying Intensifying 12 12 inch inch in in Hamamatsu, Hamamatsu, extending extending MEMS MEMS related related manufacturing manufacturing lines lines in in ROHM ROHM HQ HQ Discretes 31.7 PH: PH: Improving Improving productivity productivity R: R: Extending Extending manufacturing manufacturing lines lines of of new new products products ICs 40.8 30.0 OPM; OPM; Enhancing Enhancing product product lineup lineup of of new new sensors sensors CAPEX in 2015/3 Plan Assembly Assembly process: process: Extending Extending manufacturing manufacturing lines lines of of RIST/REPI RIST/REPI 50.0 SIC: SIC: shifting shifting wafer wafer to to 6inch 6inch Modules 54.8 Approximately ¥6 billion shifted Discretes TR/DI: TR/DI: Improving Improving productivity productivity and and enlarging enlarging wafer wafer size, size, etc. etc. ’15/3 Plan 営全 業 部 門 Presentation 業 績 告 業 績Year 報 告 体報 End CAPEX 1.3 1.9 1.4 R： R： Intensifying Intensifying new new products, products, etc. etc. 4.8 2.4 1.5 Sales management, etc. R&D R&D equipments equipments of of power power devices, devices, etc. etc. 20 （Impairment Loss Excluded） （¥billion） 30.0 26.8 26.0 20.0 4.2 6.6 10.0 Net cash -7.2 0.0 -1.5 -10.0 （¥billion） Net Income on P/L 7.1 80.0 Net Income on P/L 9.6 Net Income on P/L -16.1 Net Income on P/L -52.4 Net Income on P/L 32.0 Net Income 40.0 8.8 12.8 9.4 5.4 8.0 4.9 2.5 5.1 33.0 21.0 3.4 Depreciation (LAPIS) 34.5 31.7 30.9 33.7 1.4 24.0 34.6 Depreciation (ROHM) -29.2 -35.6 0.0 -40.0 -0.9 -4.3 -44.9 -6.1 -40.6 -2.2 -28.4 -47.3 '11/3 c 2014 ROHM Co.,Ltd. All Rights Reserved '12/3 -7.5 '13/3 '14/3 CAPEX (ROHM) CAPEX (LAPIS) -3.2 -80.0 '10/3 業 績 営全 業 部 門 Presentation 業 績 告 業 績 報 告 体報 Year End Net Income,Depreciation and CAPEX '15/3 Plan 21 Return to shareholders policy 1.ROHM will make business investment such as CAPEX and M&A the first priority, and endeavor to improve business performance in medium to long term. 2. Our year-end dividend for ’14/3 is ¥30, increased by ¥10 than our initial plan. 3. We will try to maintain over 30% of payout ratio from this fiscal year, and enhance our return to shareholders. （¥billion） ＜14/3 Dividends Initial Plan＞ 50.0 Interim: FCF （ Impairment loss excluded） ¥20 ＋¥10 ＜14/3 Revised Plan＞ Interim : ¥20 ＜15/3 Plan＞ ＋¥10 Interim : Year-end : ¥30 Year-end : ¥30 Full Year: ¥40 Full Year : ¥50 Full Year : ¥60 30.0 Payout Ratio 16.8% Share Buyback （¥130） （¥130） '10/3 '11/3 c 2014 ROHM Co.,Ltd. All Rights Reserved （¥60） '12/3 22 Payout Ratio 30.8% Payout ratio without foreign exchange profit and gain on sales of land 32.2% 10.0 -10.0 ¥30 Year-end: ¥20 Ordinary Dividends 全 営全 業 部 門 Presentation 業 績 報 告 業 績Year 報 告 体体 End Return to shareholders （¥30） （¥50） （¥60） '13/3 '14/3 '15/3 Pl a n Annual Dividends Year End Presentation ICs Business Strategy 23 c 2014 ROHM Co.,Ltd. All Rights Reserved Year End Presentation Discrete Semiconductors Business Strategy 24 c 2014 ROHM Co.,Ltd. All Rights Reserved Note Regarding Future Forecasts The forecast statements in this report are based on information currently available and deemed by ROHM Group as reasonable, and therefore, are not intended to guarantee to be achieved by ROHM Group, and actual results may differ materially by various factors. ROHM Group does not bear responsibility to update and disclose any future forecasts in this report. Also, since the purpose of this report is to provide an outline of business performance, many figures are shown in unit of a billion yen, therefore, totals and differences of figures may appear inaccurate. Please refer to our Financial Report for detailed figures. c 2014 ROHM Co.,Ltd. All Rights Reserved c 2014 ROHM Co.,Ltd. All Rights Reserved