ROHM CO., LTD. Financial Highlights for the First Six Months of the Year Ending March 31, 2013 (From April 1, 2012 to September 30, 2012) November 8, 2012 1. Consolidated Financial Results (Figures are rounded down to the nearest million yen. Any fraction less than the unit is rounded off.) Year ending March 31,2013 Year ended March 31,2012 First six months First six months Year ended March 31,2012 Increase/decrease from the previous year Year ending March 31,2013 (Projected) Amount Percentage Annual Annual Net sales Millions of yen 150,753 164,730 -13,977 -8.5% 304,652 291,000 Cost of sales Millions of yen 108,358 109,931 -1,573 -1.4% 209,046 211,500 Selling, general and administrative expenses Millions of yen 39,752 44,861 -5,109 -11.4% 89,253 78,000 Operating income Millions of yen 2,642 9,937 -7,295 -73.4% 6,352 1,500 (1.8%) (6.0%) (-4.2%) (2.1%) (0.5%) 351 6,645 -6,294 7,286 300 (0.2%) (4.0%) (-3.8%) (2.4%) (0.1%) -171 -2,158 +1,987 -16,106 -11,000 (-0.1%) (-1.3%) (+1.2%) (-5.3%) (-3.8%) -1.59 -20.02 +18.43 -149.41 -102.03 (Operating income margin) Ordinary income Millions of yen (Ordinary income margin) Net income Millions of yen (net income margin) Basic net income per share yen Ratio of net income to equity ％ Ordinary income to total assets ％ -94.7% － － Increase/decrease from the previous year -4.5% -76.4% -95.9% － -2.5 1.0 Total assets Millions of yen 697,762 710,857 -13,095 -1.8% 737,326 Net assets Millions of yen 614,418 635,011 -20,593 -3.2% 634,280 Equity ratio ％ 88.0 89.1 -1.1 Net assets per share yen 5,696.09 5,871.89 -175.80 -3.0% 5,880.27 Capital expenditures Millions of yen 22,568 17,422 +5,146 +29.5% 51,117 57,500 +12.5% Depreciation Millions of yen 17,710 17,010 +700 +4.1% 35,915 40,000 +11.4% Research and development costs Millions of yen 18,869 19,422 -553 -2.8% 39,763 37,000 -7.0% Net financial revenue Millions of yen 852 772 +80 +10.3% 1,599 Foreign currency exchange gains/losses Millions of yen （loss）3,786 （loss）4,383 （gain）597 79.43 79.74 -0.31 Foregin exchange rate (Average yen-dollar rate) 86.0 （loss）1,284 (Second half) yen/US$ -0.4% 79.31 78.00 (Note1) The projected data are based on the information available at the time of release of this report. A number of important factors including business conditions may cause actual results to differ materially from those projected, and therefore, the projected data are not intended to guarantee to be achived by ROHM. (Note2) This report is a translation of the financial highlights of the Company prepared in accordance with the provisions set forth in the Securities and Exchange Law and its related accounting regulations, and in conformty with accounting principles generally accepted in Japan. The original version of this report is 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. Contact: Public Relations and Investor Relations Div., ROHM CO., LTD. 21, Saiin Mizosaki-cho, Ukyouku, Kyoto 615-8585 +81-75-311-2121 -Financial Highlihts 1- 1. Consolidated Financial Results (Continued from the previous page) Year ending March 31,2013 First six months (Figures are rounded down to the nearest million yen. Any fraction less than the unit is rounded off.) Year ending Year ended Year ended Increase/decrease March March March from the previous year 31,2013 (Projected) 31,2012 31,2012 First six months Amount Percentage Annual Annual Increase/decrease from the previous year Sales by segment and geographical region (Note 1) Millions of yen ICs 73,239 80,952 -7,713 -9.5% (Japan) (27,948) (33,528) (-5,580) (-16.6%) (62,919) (52,343) -16.8% (Asia) (40,679) (42,178) (-1,499) (-3.6%) (76,956) (77,955) +1.3% (Americas) (3,459) (3,873) (-414) (-10.7%) (6,765) (6,631) -2.0% (Europe) (1,153) (1,372) (-219) (-16.0%) (2,492) (2,187) -12.2% 50,854 56,132 -5,278 -9.4% (Japan) (17,689) (19,149) (-1,460) (Asia) (29,252) (32,796) (-3,544) (Americas) (1,946) (1,939) (+7) (Europe) (1,966) (2,246) (-280) Discrete semiconductor devices Others (Japan) (Asia) 149,134 139,118 -6.7% 103,861 97,594 -6.0% (-7.6%) (37,394) (33,971) -9.2% (-10.8%) (58,140) (55,881) -3.9% (+0.4%) (3,947) (3,874) -1.8% (-12.5%) (4,379) (3,867) -11.7% 26,659 27,646 -987 -3.6% 51,656 54,286 +5.1% (9,833) (8,910) (+923) +10.4% (17,304) (20,632) +19.2% (14,260) (15,918) (-1,658) (-10.4%) (29,035) (28,885) -0.5% (Americas) (1,073) (998) (+75) (+7.5%) (1,894) (1,871) -1.2% (Europe) (1,492) (1,817) (-325) (-17.9%) (3,422) (2,895) -15.4% Total 150,753 164,730 -13,977 -8.5% 304,652 291,000 -4.5% (Japan) (55,471) (61,588) (-6,117) (-9.9%) (117,618) (106,948) -9.1% (Asia) (84,191) (90,894) (-6,703) (-7.4%) (164,133) (162,722) -0.9% (Americas) (6,479) (6,811) (-332) (-4.9%) (12,606) (12,377) -1.8% (Europe) (4,611) (5,436) (-825) (-15.2%) (10,294) (8,950) -13.1% Sales by application (Note 2) ％ 6.1 8.9 -2.8 Home appliance 3.3 3.2 +0.1 3.2 Other consumer 12.6 13.2 -0.6 12.7 Computer and OA 12.7 12.6 +0.1 12.5 Telecommunications 12.5 13.4 -0.9 12.9 Automotive Audio,Visual 7.8 23.6 19.7 +3.9 22.0 Other industrial 5.9 6.0 -0.1 6.0 Subassemblies 17.1 17.4 -0.3 17.4 6.2 5.6 +0.6 5.5 Others Major End Products Audio,Visual TV,HD Recorder/Player,Video Camera,Memory Audio,Electronic Musical Instrument,etc. Home Appliances Microwave Oven,Air Conditioner,Refrigerator,Washing Machine,etc. Other Consumer Digital Still Camera,Game Machine,Watch,etc. Computer and OA PC,Server,PDA,Printer,Data Storage(DVD-ROM,CD-RW,CD-ROM,HDD,FDD),Monitor,Terminal,etc. Telecommunications Cellular Phone/PHS,Modem,FAX,Network,etc. Automotive Engine Control Unit,Air bag,Car Navigation,Car Audio etc. Other industrial Medical Equipment,Electrical Measuring,Machine Tool,Vending Machine,etc. Subassemblies Power Supply For Consumer Appliance/Telecommunications/PC/Industrial Equipment,Flat panel module for PC/TV,Motor,Power,Optial Pick up Laser,Unit,etc. Others OEM Sales,Lights,etc. (Note 1) The above amounts are sales to external customers. (Note 2) Since ROHM changed the way it classifies sales by application as of the year ending March 31,2013,the company changed its components for the year ended March 31,3012 and posted those component ratios by application accordingly. -Financial Highlights 2- 2.Associated information (Figures are rounded down to the nearest million yen. Any fraction less than the unit is rounded off.) Year ending March 31,2013 Year ended March 31,2012 First six months First six months Increase/decrease from the previous year Year ending March 31,2013 (Projected) Year ended March 31,2012 Amount Percentage Annual Annual Increase/decrease from the previous year Capital expenditures by segment Millions of yen ICs 6,695 6,194 +501 +8.1% 27,252 20,800 -23.7% Discrete semiconductor devices 8,227 4,667 +3,560 +76.3% 11,334 20,900 +84.4% Others Sales and Administrative Expenses Division Total 5,447 3,415 +2,032 +59.5% 7,603 12,600 +65.7% 2,198 3,145 -947 -30.1% 4,925 3,200 -35.0% 22,568 17,422 +5,146 +29.5% 51,117 57,500 +12.5% 30.0 -15.0 (60.0) (30.0) Interim dividends Yen (Annual cash dividends) 15.0 (Yen) Number of shareholders 29,819 29,757 +62 +0.2% 29,255 Financial institution shareholding ratio ％ 20.80 21.43 -0.63 21.52 Foregin shareholding ratio ％ 50.11 49.78 +0.33 49.72 Number of employees Japan 5,795 5,925 -130 -2.2% 5,900 Overseas 15,325 16,318 -993 -6.1% 15,395 Total 21,120 22,243 -1,123 -5.0% 21,295 (Number of R&D employees) (3,164) (3,142) (+22) (+0.7%) (3,243) 48 48 0 48 (Japan) (12) (12) (0) (12) (Overseas) (36) (36) (0) (36) 6 6 0 6 (0) (0) (0) (0) 1 1 0 1 (0) (0) (0) (0) Number of consolidated subsidiaries Number of affiliated companies (Number of companies accounted for by equity method) Number of non-consolidated subsidiaries (Number of companies accounted for by equity method) -Financial Highlights 3- Financial Report for the First Six Months of the Year Ending March 31, 2013 [Based on Japanese Standard] (Consolidated) November 8, 2012 Listed Company Name: ROHM CO., LTD. Stock Exchange Listings: Tokyo, Osaka Code No.: 6963 URL http://www.rohm.com Company Representative: (Title) President (Name) Satoshi Sawamura Contact Person: (Title) Director, Accounting Headquarters (Name) Eiichi Sasayama TEL +81-75-311-2121 November 12, 2012 Scheduled Date for Submitting the Quarterly Financial Reports Scheduled Dividend Payment Date December 7, 2012 Preparation of Supplementary Briefing Materials for the Quarterly Settlement : Yes Briefing Session for the Quarterly Settlement to Be Held : Yes (For analysts and institutional investors) (Figures are rounded down to the nearest million yen.) 1. Consolidated Business Results for the First Six Months of the Year Ending March 31, 2013 (From April 1, 2012 to September 30, 2012) (The percentages [%] represent changes from the first six months of the previous year.) (1) Consolidated Results of Operations (Accumulated total) Net income for the first six Net sales Operating income Ordinary income months of the year ending March 31, 2013 ％ Millions of yen First six months of the year ending March 31, 2013 First six months of the year ended March 31, 2012 ％ Millions of yen ％ Millions of yen ％ Millions of yen 150,753 -8.5 2,642 -73.4 351 -94.7 -171 ― 164,730 -9.2 9,937 -57.5 6,645 -61.9 -2,158 ― (Note) Comprehensive Income First six months of the year ending March 31, 2013: -16,625 million yen (—%) First six months of the year ended March 31, 2012: -26,778 million yen (—%) Basic net income per share Diluted net income per share Yen First six months of the year ending March 31, 2013 First six months of the year ended March 31, 2012 Yen -1.59 ― -20.02 ― (2) Consolidated Financial Position Total assets First six months of the year ending March 31, 2013 Year ended March 31, 2012 (Reference) Equity capital Net assets Shareholder’s equity ratio Millions of yen Millions of yen ％ 697,762 614,418 88.0 634,280 614,120 million yen 633,982 million yen 86.0 737,326 First six months of the year ending March 31, 2013: Year ended March 31, 2012: 2. Dividend Details End of the first quarter Annual dividend End of the third quarter Interim Yen Year ended March 31, 2012 Year ending March 31, 2013 Year ending March 31, 2013 (Estimates) Yen ― ― 30.00 15.00 End of year Yen Total Yen Yen ― 30.00 60.00 ― 15.00 30.00 (Note) Revision to recently disclosed dividend estimates: Yes 3. Consolidated Business Results Forecast for the Year Ending March 31, 2013 (From April 1, 2012 to March 31, 2013) (The percentages [%] shown for FY2012 represent changes from the previous fiscal year.) Net sales Operating income ％ Millions of yen -11,000 Millions of yen ％ Millions of yen 1 Basic net income per share Net income Fiscal 2013 291,000 -4.5 1,500 -76.4 300 -95.9 (Note) Revision to recently disclosed figures for consolidated business results forecast: Yes Millions of yen ％ Ordinary income ％ ― Yen -102.03 *Note (1) Major Changes in Subsidiaries during the First Six Months of the Year Ending March 31, 2013 (Changes to specified subsidiaries accompanying revision on the scope of consolidation): None ) , New company - (Company name: Excluded company - (Company name: ) (2) Application of specific accounting method for compiling consolidated financial statements: None (3) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatement of Revisions [1] Changes in accounting policies according to revision to accounting standards : None [2] Other changes in accounting policies other than items indicated in [1] : None [3] Change in accounting estimates : None [4] Restatement of revisions : None (4) Number of Shares Outstanding (common shares) [1] Year-end number of shares outstanding (incl. treasury stocks) [2] Year-end number of treasury stocks [3] Average number of shares during the period (Accumulated total of the first six months) First six months of the year ending March 31, 2013 113,400,000 shares First six months of the year ending March 31, 2013 5,585,569 shares Year ended March 31, 2012 Year ended March 31, 2012 First six months of First six months of the year 107,814,637 shares the year ended ending March 31, 2013 March 31, 2012 113,400,000 shares 5,585,173 shares 107,815,464 shares *Description Regarding Implementation Status of Quarterly Review Procedures This quarterly financial report is not applicable to quarter review procedures based on the Financial Instruments and Exchange Act. At the time of disclosure of this quarterly financial report, the review procedure of the quarterly financial statement based on the Financial Instruments and Exchange Act had been completed. *Explanation on Adequate Usage of Business Results Forecast Statements on business results forecasts in this financial report are based on current information acquired by ROHM as well as specific legitimate premises for making decisions, therefore ROHM makes no promises as to attaining these forecasts. Actual business results may be considerably different due to various factors. For conditions and notes used for making prepositions of business forecasts, please refer to “Qualitative information regarding consolidated business results forecast” on Page 5 of the Financial Report for the First Six Months of the Year Ending March 31, 2013 (Appendix). 2 ROHM CO., LTD. (6963) Financial Report for the First Six Months of the Year Ending March 31, 2013 ○Table of Contents 1. Qualitative information regarding the financial results for the first six months of the current fiscal year 2 (1) Qualitative information regarding consolidated operating results 2 (2) Qualitative information regarding consolidated financial conditions 4 (3) Qualitative information regarding consolidated business results forecast 5 2. Items regarding summary information (Note) 5 (1) Major changes in subsidiaries during the first six months of the current fiscal year 5 (2) Application of specific accounting procedure for compiling consolidated financial statement 5 (3) Changes in accounting policies, changes in accounting estimates, and restatement of revisions 5 3. Consolidated quarterly financial statements 6 (1) Consolidated quarterly balance sheets (2) Consolidated quarterly statement of income and consolidated quarterly statement of comprehensive income Consolidated quarterly statement of income Consolidated quarterly statement of comprehensive income 6 8 8 9 (3) Consolidated quarterly statements of cash flows 10 (4) Note on going concern 11 (5) Note in case of significant change in amount of shareholders’ equity 11 (6) Segment information etc. 11 4. Supplementary information 13 Production, orders and actual sales status 13 * Separately attached as supplementary material are “Financial Highlights for the First Six Months of the Year Ending March 31, 2013.” 1 ROHM CO., LTD. (6963) Financial Report for the First Six Months of the Year Ending March 31, 2013 1. Qualitative information regarding the financial results for the first six months of the current fiscal year (1) Qualitative information regarding consolidated operating results General Overview of Business Performance The world economy in the first six months of the current fiscal year continues in uncertainty due to China’s economic slowdown coupled with financial and monetary problems in Europe. By individual regions, in the US the mining and manufacturing industries experienced a slowdown while improvement in the employment environment was delayed, hampering economic recovery. In Europe, the economy continued to slump with lingering financial and monetary problems centered on Greece and a high unemployment rate. In Asia, although domestic demand including automobiles was strong in China, decreasing export expansion, combined with sluggish production, slowed the pace of growth. This weakened pace of economic expansion continued in other Asian regions, including India. In addition to these economic slowdowns overseas a strong yen, coupled with a sharp decline in the demand for consumer electronics products, caused a downturn in the Japanese economy, which was on the road to recovery due to reconstruction demands following the Great East Japan Earthquake. In the electronics industries, smartphones and tablet computers enjoyed robust sales, and the sales of game consoles were on the rise, however sales of flat screen TVs were considerably sluggish due to prolonged inventory adjustments and little or no stimulus from the Olympics. Sales of personal computers, excluding tablet computers, recorded a seasonal increase in the first half period, but slowed down in the second half. Energy-saving-related equipment did not make its usual seasonal recovery due to deteriorating business confidence. As a result, the electronic components industry continued to face difficult conditions. In Japan, sales of electronic components for automotive applications and high performance digital cameras regained positive ground after the flooding in Thailand. However, tough times remained for the flat screen TV sector. In Asia, thanks to the recovery efforts from the flooding in Thailand, demand for smartphones and tablet computers increased, along with the demand for electronic components, but sales were sluggish overall as the production of flat-screen TVs and conventional mobile phones decreased. In the US, automotive electronic components and telecommunication infrastructure-related equipment were both strong, but the market for other industrial equipment recorded sluggish sales. In Europe, the demand for components was slow due to a downturn in the regional electronic components markets. Under these circumstances, the ROHM Group is committed to strengthening its product lineups by focusing on four strategies for growth. 1. Enhancing IC products via synergistic collaboration with LAPIS Semiconductor Co., Ltd. 2. Strengthening our lineup of sensors 3. Developing power device products centered on SiC 4. Expanding LED operations to include LED elements, optical modules, and LED lighting equipment In individual markets, the ROHM Group is making concerted efforts in strengthening sales in two important areas where significant growth is expected – the automotive and industrial markets, the latter of which includes telecommunication infrastructure, smart meters, power generation and power storage. The ROHM Group created new product strategy groups for different markets in order to provide products in a timely manner to enhance sales. In addition, to improve support for global customers, the company restructured the sales system from one focused on individual regions into a global sales system centered on customers. And at individual overseas sites the ROHM Group continued to employ local FAEs (*1). Regarding new product development, ROHM successfully miniaturized inverter circuits for electric and hybridelectric vehicles and developed isolated gate drivers for automotive applications that contribute to decreased power consumption as well as LDO regulators (*2) for automotive applications that utilize low dark current (*3) in order to reduce current by 80% over conventional products. In addition, ROHM continued to develop eco-friendly devices with the goal of improving the environment on a global scale. This included enhancing product lineups with full SiC modules that incorporate an SiC SBD (*4) and SiC MOSFET (*5) in a single-package, significantly reducing power loss in inverters and minimizing the number of external components required. ROHM also developed the world’s smallest transistor and diode, which contribute to making portable equipment – including smartphones – thinner, smaller, and more functional. Under these circumstances, consolidated net sales in the first six months of the year ending March 31, 2013 were 150,753 million yen (a decrease of 8.5 percent from the first six months of the year ended March 31, 2012), and operating income was 2,642 million yen (a decrease of 73.4 percent from the first six months of the year ended March 31, 2012). Ordinary income was 351 million yen (a decrease of 94.7 percent from the first six months of the year ended March 31, 2012), after exchange losses, and net loss for the quarter was 171 million yen (net loss of 2,158 million yen recorded in the first six months of the year ended March 31, 2012). *1. FAE (Field Applications Engineer) Engineers and technicians who provide technical support and proposals, including technical information, to customers. *2. LDO (Low Drop Out) regulators Outputs a desired constant voltage from an input voltage. LDO, short for Low Drop Out, provides minimal voltage conversion loss. *3. Dark current A small amount of current that flows through the entire circuit even when regulator output is OFF. *4. SiC SBD Schottky barrier diodes that use SiC (silicon carbide). A rectifier diode using SiC makes it suitable for hightemperature operation at a high voltage and provides superior high- speed performance with a Schottky junction. 2 ROHM CO., LTD. (6963) Financial Report for the First Six Months of the Year Ending March 31, 2013 *5. SiC MOSFET Metal Oxide Semiconductor Field Effect Transistor utilizing SiC. A MOSFET that uses SiC supports hightemperature operation at high voltage and is suitable for use as a switching element. Overview of Performance by Segment <ICs> Consolidated net sales for the first six months of the year ending March 31, 2013 were 73,239 million yen (a decrease of 9.5 percent from the first six months of the year ended March 31, 2012), and segment losses for the period were 3,637 million yen (segment losses for the first six months of the year ended March 31, 2012 were 168 million yen). In the digital AV equipment segment, sales of lens controller driver ICs for digital cameras and system power ICs increased. In the flat screen TV sector, system power ICs and timing controller ICs (*6) for LCD panels trended upward, but the effects were short-lived and severe conditions persisted compared with the first six months of the previous year. The demand for smartphones was strong, but extreme price competition, coupled with the effects of a sluggish mobile phone market, continued the sparse demand for LED driver ICs and interface ICs. For gaming consoles, recovery centered on power ICs and production started on new models for the summer. For personal computers, sales of motor driver ICs for fan motors and optical disks increased, but overall sales were slow, including sales of power supply ICs. For the automotive components market, sales of LED driver ICs for headlights and rear lights, and several power supply ICs were robust. In the industrial equipment market, sales of general-purpose ICs were strong, but the demand for sensor-related ICs and display driver ICs for smart meters were sluggish. In the general-purpose sector, sales of EEPROMs (*7) and RESET ICs (*8) were on the rise, but then fell in the second half of the period. At LAPIS Semiconductor Co., Ltd., a ROHM Group company, sales of low power consumption microcontrollers for the security market and display driver ICs for the automotive sector were strong and new lithium ion battery protection ICs enjoyed brisk sales, but the demand for P2ROM*9 for the entertainment market significantly decreased. Regarding production systems, ROHM continued efforts to improve production efficiency in pre- and postprocesses, and enhanced the BCM (Business Continuity Management) system against risks such as disasters by sharing production lines with LAPIS Semiconductor Co., Ltd. *6. Timing controller ICs ICs that output the timing pulse necessary to display video on liquid crystal panels. *7. EEPROMs Non-volatile memory that erases or rewrites data electrically (voltage) and can retain data even when the power is shut OFF. *8. RESET ICs ICs that output reset signals to prevent operation while power is ON until the voltage reaches the normal level in order to prevent malfunctions due to insufficient voltage. *9. P2ROM（Production Programmed ROM) Non-volatile memory developed by LAPIS Semiconductor Co., Ltd. Products are shipped after the customer’s program and data are written into memory at the factory. It is often used for gaming consoles, and features a shorter turnaround time (TAT) compared to conventional mask ROMs. <Discrete Semiconductor Devices> Consolidated net sales for the first six months of the year ending March 31, 2013 were 50,854 million yen (a decrease of 9.4 percent from the first six months of the year ended March 31, 2012), and segment profits were 5,443 million yen (a decrease of 32.5 percent from the first six months of the year ended March 31, 2012). In the diode and transistor segments, sales were down as inventory for flat screen TVs went through an adjustment and recovery from the flooding in Thailand died down, even in the automotive components market. SiC diodes and MOSFETs, which ROHM began selling as next-generation high efficiency devices in 2010, saw an increase in sales due to an enhanced product lineup as the company started mass-production of full SiC modules in March 2012. Regarding LEDs, sales of red, green, and white LEDs were strong but sales lagged after the summer. Regarding laser diodes, sales of dual-wavelength pulsation laser diodes for CD/DVD (*10) and others increased. 3 ROHM CO., LTD. (6963) Financial Report for the First Six Months of the Year Ending March 31, 2013 Regarding production systems, ROHM continued to improve production efficiency at individual group factories in Thailand, the Philippines, and Tianjin, China, and made considerable efforts to enhance its BCM (Business Continuity Management) system. *10. Dual-wavelength pulsation laser diodes for CD/DVD Self-pulsation-type dual-wavelength laser diodes in which a single element generates two lasers, a 780nm beam for playing CDs and a 650nm type for playing DVDs. <Other> Consolidated net sales for the first six months of the year ending March 31, 2013 were 26,659 million yen (a decrease of 3.6 percent from the first six months of the year ended March 31, 2012), and segment losses were 299 million yen (segment profits for the first six months of the year ended March 31, 2012 were 715 million yen). In the resistor category, sales gradually recovered from the damage caused by the flooding in Thailand, but compact resistors including the 0603 and 0402 sizes, which saw a favorable increase in sales for mobile phones, entered an adjustment phase, reducing overall sales. Tantalum capacitors bounced back from sluggish sales by expanding market share, and recovering from the damage caused by the flooding in Thailand, however not to the levels of the previous fiscal year. With optical modules, sales of infrared LED sensors for smartphones increased in the first half period, but entered an adjustment phase in the second half. Regarding LED lighting products, demand and sales drastically increased due to growing energy-saving concerns. In the power module category, power source modules for LED lighting increased sales, and sales were strong overall. Regarding thermal printheads, sales for mini-printers recovered, but remained unchanged from the first six months of the previous fiscal year. In the medical field, sales of trace blood test systems were strong. Regarding production systems, ROHM continued to strengthen production control systems and BCM (Business Continuity Management), enhance production efficiency, and reduce costs at group factories in Thailand, the Philippines, Dalian and Tianjin, China. It should be noted that the above sales are for external customers. (2) Qualitative information regarding consolidated financial conditions Analysis of status of assets, liabilities, net assets and cash flow During the first six months of the year ending March 31, 2013, total assets decreased by 39,564 million yen from the previous fiscal year, amounting to 697,762 million yen. The main factors behind the decrease were as follows: other current assets decreased by 31,863 million yen (including accrued insurance coverage of 30,070 million yen), investment securities decreased by 7,868 million yen, and marketable securities decreased by 4,483 million yen. On the other hand, notes and accounts receivable trade increased by 3,575 million yen. Liabilities decreased by 19,702 million yen from the previous fiscal year, amounting to 83,344 million yen. The main causes were that accounts payable decreased by 7,782 million yen, deferred tax liabilities decreased by 3,452 million yen, notes and accounts payable trade decreased by 3,396 million yen, and, allowance for restructuring expenses decreased by 1,937 million yen respectively. Net assets decreased by 19,862 million yen from the previous fiscal year, amounting to 614,418 million yen. The main causes were decreases in foreign currency translation adjustments by 13,553 million yen and shareholders' equity by 3,407 million yen, and valuation differences of available-for-sale securities by 2,902 million yen. Consequently, equity ratio increased from the 86.0 percent of the previous fiscal year to 88.0 percent. Cash flow status for the first six months of the year ending March 31, 2013 is as follows. Cash flow from operating activities in the first six months of the year ending March 31, 2013 was a plus of 35,540 million yen as profits increased 19,244 million yen from the same period of the previous year (a plus of 16,296 million yen). This was mainly attributed to a series of positive factors to note insurance proceeds that did not exist in the same period of the previous year, and the net loss before taxes turning into a profit. The contributing negative factors were an impairment loss, which occurred in the first six months of the previous year but did not exist in the first six months of the current fiscal year, and the amount of accounts payable changing from an increase to a decrease. Cash flow from investing activities recorded a minus of 50,464 million yen as expenses increased by 29,536 million yen from the first six months of the year ended March 31, 2012 (a minus of 20,928 million yen). This was attributed to the time deposits changing from a decrease to an increase and an increase in expenses due to the acquisition of tangible fixed assets, which had negative effects, and a decrease in expenses due to the purchase of marketable securities and investment securities, which had a positive effect. 4 ROHM CO., LTD. (6963) Financial Report for the First Six Months of the Year Ending March 31, 2013 Cash flow from financing activities was a minus of 3,366 million yen as expenses decreased by 3,772 million yen from the first six months of the previous fiscal year (a minus of 7,138 million yen). This was mainly attributed to a decrease in dividend payments, which had a positive effect. After adding a decrease due to exchange rate conversion differences, which decreased by 6,569 million yen, to the above factors, cash and cash equivalents for the first six months of the current fiscal year decreased by 24,859 million yen from the year ended March 31, 2012, amounting to 183,885 million yen. (3) Qualitative information regarding consolidated business results forecast As for the world economy, in the U.S., favorable signs started to show with an improvement in the employment situation and the bottoming-out of the housing market, but the overall market is still in a volatile state. In Europe, in addition to financial and monetary problems, the German economy, which had maintained a relatively robust status until now, has begun to show signs of adjustment, thus the overall economy in Europe remains in severe shape. In Asia, the overall economy of the region is growing slowly as economic growth in China slowed down. Growth has been affected by the slowing economic situations in developed countries. Japan seems to be in a recession as various economic indexes are getting worse. Thus, the economic situation around the globe is expected to remain severe. In the electronics market, the overall market excluding the fields of smartphones and tablet PCs, which have maintained robust sales, has remained sluggish. The automotive electronics market, which enjoyed robust sales, seems to be entering an adjustment phase, thus conditions are considered to be extremely tough for a while and the outlook on the world economy remains very unclear. Under these circumstances, the ROHM Group continued to develop new products in the fields of power devices including SiC devices, sensor devices, and LED related products, and introduced new products onto the market in a timely manner. With these schemes, the group will continue to make the utmost efforts to expand share in the automotive and industrial instruments markets, where long-term growth is expected, and strengthen customer support systems in overseas markets, while thoroughly rationalizing production systems and decreasing costs. The group will also make the utmost effort to enhance sales in new fields such as the distribution of micro-blood analysis systems in Europe. Furthermore, in order to recover business performance amid intensifying global competition, ROHM will reorganize business by restructuring production systems, optimizing group staff and endeavoring to improve corporate values. In consideration of the above-mentioned situations, we will revise our consolidated business forecast for the year ending on March 31, 2013 as follows. Business results forecast for the year ending March 31, 2013 (Consolidated) Net sales 291,000 million yen (Decrease by 4.5 percent from the first six months of the previous fiscal year) Operating loss 1,500 million yen (Decrease by 76.4 percent from the first six months of the previous fiscal year) Ordinary loss 300 million yen (Decrease by 95.9 percent from the first six months of the previous fiscal year) Net loss 11,000 million yen The forecasts are based on an exchange rate of 78 yen to US$1. 2. Items regarding summary information (Note) (1) Major changes in subsidiaries during the first six months of the current fiscal year None (2) Application of specific accounting procedure for compiling consolidated financial statement None (3) Changes in accounting policies, changes in accounting estimates, and restatement of revisions None 5 ROHM CO., LTD. (6963) Financial Report for the First Six Months of the Year Ending March 31, 2013 3. Consolidated quarterly financial statements (1) Consolidated quarterly balance sheets (Unit: millions of yen) End of the accounting year ended March 31, 2012 (March 31, 2012) Assets Current assets Cash and time deposits Notes and accounts receivable trade Marketable securities Commodities and products Products in progress Raw materials and inventories Prepaid pension cost Deferred tax assets Refundable income taxes Others Allowance for doubtful accounts First six months of the year ending March 31, 2013 (September 30, 2012) 211,199 67,393 15,618 24,366 38,508 30,652 2,250 1,369 2,887 40,474 -265 212,434 70,968 11,135 23,272 41,798 28,134 2,241 1,046 3,035 8,611 -320 434,457 402,357 208,252 460,311 40,600 79,791 20,015 -563,585 207,583 462,661 42,954 79,820 22,186 -569,238 245,386 245,968 5,561 6,049 4,287 5,275 Total intangible fixed assets 11,610 9,562 Investments and other assets Investment securities Deferred tax assets Others Allowance for doubtful accounts 39,886 1,735 4,784 -533 32,018 1,533 6,853 -531 45,872 39,873 302,869 295,405 737,326 697,762 Total current assets Fixed assets Tangible fixed assets Buildings and structures Machinery, equipment and vehicles Tools and furniture Land Construction in progress Accumulated depreciation Total tangible fixed assets Intangible fixed assets Goodwill Others Total investments and other assets Total fixed assets Total assets 6 ROHM CO., LTD. (6963) Financial Report for the First Six Months of the Year Ending March 31, 2013 (Unit: millions of yen) End of the accounting year ended March 31, 2012 (March 31, 2012) Liabilities Current liabilities Notes and accounts payable trade Other accounts payable Accrued income taxes Deferred tax liabilities Allowance for restructuring expenses Allowance for disaster loss Others Total current liabilities Long-term liabilities Deferred tax liabilities Liabilities for retirement benefits Others Total long-term liabilities Total liabilities Net assets Shareholders' equity Capital stock Capital surplus Retained earnings Treasury stock-at cost Total shareholders' equity Other comprehensive income Net unrealized gain on available-for-sale securities Foreign currency translation adjustments Total other comprehensive income Minority interests Total net assets Total of liabilities and net assets 7 First six months of the year ending March 31, 2013 (September 30, 2012) 23,979 29,168 1,551 1,227 2,056 61 16,291 20,583 21,386 2,049 756 119 23 14,569 74,337 59,488 18,899 7,700 2,109 15,447 6,839 1,568 28,709 23,855 103,046 83,344 86,969 102,403 589,999 -50,084 86,969 102,403 586,594 -50,085 729,288 725,881 3,780 -99,086 878 -112,639 -95,306 -111,760 297 297 634,280 614,418 737,326 697,762 ROHM CO., LTD. (6963) Financial Report for the First Six Months of the Year Ending March 31, 2013 (2) Consolidated quarterly statement of income and consolidated quarterly statement of comprehensive income (Consolidated quarterly statement of income) (First six months of the year ending March 31, 2013) (Unit: millions of yen) First six months of the year ending March 31, 2013 (From April 1, 2012 To September 30, 2012) First six months of the year ended March 31, 2012 (From April 1, 2011 To September 30, 2011) Net sales Cost of sales 164,730 109,931 150,753 108,358 Gross profit 54,799 42,395 Selling, general and administrative expenses 44,861 39,752 9,937 2,642 573 623 647 926 Total non-operating income 1,196 1,573 Non-operating expenses Foreign currency exchange loss Others 4,383 105 3,786 78 Total non-operating expenses 4,488 3,864 6,645 351 264 － 597 2 388 2,789 862 3,181 3 87 9,143 － 112 443 － 3 50 － 1,061 Operating income Non-operating income Interest income Others Ordinary income Extraordinary gains Gain on sale of fixed assets Gain on sale of investment securities Gain on insurance adjustments Total extraordinary gains Extraordinary losses Loss on sale/disposal of fixed assets Abandonment loss on fixed assets Impairment loss Loss on reduction of fixed assets Loss on revaluation of investment securities Loss on revaluation of affiliate companies’ stocks Loss from provision for product warranty 3 1,551 － 9,791 2,670 Income (-loss) before income taxes -2,283 862 Income taxes-current Income taxes-deferred 3,011 -3,138 3,197 -2,169 -126 1,027 -2,156 -165 Total extraordinary losses Total income taxes Net loss before minority interests or losses adjustments Minority interest Net loss 8 2 6 -2,158 -171 ROHM CO., LTD. (6963) Financial Report for the First Six Months of the Year Ending March 31, 2013 (Consolidated quarterly statement of comprehensive income) (First six months of the year ending March 31, 2013) (Unit: millions of yen) First six months of the year ended March 31, 2012 (From April 1, 2011 To September 30, 2011) Net loss before minority interests or losses adjustments Other comprehensive income Valuation differences of available-for-sale securities Other valuation differences of foreign exchange translations Total other comprehensive income Comprehensive Income (breakdown) Comprehensive Income Attributable to Parent Company Shareholders Comprehensive Income Attributable to Minority Shareholders 9 First six months of the year ending March 31, 2013 (From April 1, 2012 To September 30, 2012) -2,156 -165 -3,982 -2,901 -20,639 -13,558 -24,621 -16,459 -26,778 -16,625 -26,741 -16,625 -36 0 ROHM CO., LTD. (6963) Financial Report for the First Six Months of the Year Ending March 31, 2013 (3) Consolidated quarterly statements of cash flows (Unit: millions of yen) First six months of the year ending March 31, 2013 (From April 1, 2012 To September 30, 2012) First six months of the year ended March 31, 2012 (From April 1, 2011 To September 30, 2011) Operating Activities Income (-loss) before income taxes and minority interests Depreciation Impairment loss Gain on insurance adjustments Amortization of goodwill Increase (-decrease) in net liability for retirement benefits Decrease (-increase) in prepaid pension cost Increase (-decrease) in allowance for restructuring expenses Increase (-decrease) in allowance for disaster losses Interest and dividends income Foreign currency exchange loss (-gain)-net Revaluation loss (-gain) on marketable securities and investment securities Decrease (-increase) in notes and accounts receivable trade Decrease (-increase) in inventories Increase (-decrease) in notes and accounts payabletrade Increase (-decrease) in other accounts payable Others -net Proceeds from insurance income Interest and dividends -received Interest expenses Income taxes -refunded (-paid) -2,283 862 17,010 9,143 -597 3,531 17,688 － -215 -802 5 9 -6 -1,936 -773 -800 3,746 -37 -857 2,333 556 1,551 -7,032 -5,281 -1,535 -2,324 3,342 -1,569 -1,860 -1,143 － 799 -27 -5,560 -2,881 783 31,722 822 -4 -2,752 16,296 35,540 5,615 -18,554 -8,645 -5,762 2,603 2,825 -21,444 334 606 -28,530 14 -457 -20,928 -50,464 -1 -7,008 -128 -1 -3,234 -130 -7,138 -3,366 Effect of Exchange Rate Changes on Cash and Cash Equivalents -11,380 -6,569 Net Increase(-Decrease) in Cash and Cash Equivalents -23,150 -24,859 Cash and Cash Equivalents at Beginning of the Fiscal Year 230,721 208,745 Cash and Cash Equivalents at End of the First Six Months 207,570 183,885 Net cash used by operating activities Investing Activities Decrease (-increase) in time deposits Purchase of marketable securities and investment securities Revenue from selling and paying-off of marketable securities and investment securities Purchases of tangible fixed assets Proceeds from sales of tangible fixed assets Others -net Net cash used in investing activities Financing Activities Purchases of treasury stocks Dividends paid Others -net Net cash used in financing activities 10 -2,789 1,003 ROHM CO., LTD. (6963) Financial Report for the First Six Months of the Year Ending March 31, 2013 (4) Note on going concern No applicable items (5) Note in case of significant change in amount of shareholders’ equity No applicable items (6) Segment information etc. [Segment information] First six months of the year ended March 31, 2012 (From April 1, 2011 to September 30, 2011) 1. Information on net sales, profits or losses by individual reportable segments (Unit: millions of yen) Reportable segments ICs Discrete semiconductor devices Subtotal Others (Note 1) Total Amount on consolidated income statement (Note 3) Adjusted amount (Note 2) Sales Sales to customers 80,952 56,132 137,084 27,646 164,730 - 164,730 Inter-segment sales or transfer 1,053 518 1,572 0 1,573 -1,573 - 82,006 56,651 138,657 27,646 166,304 -1,573 164,730 -168 8,062 7,894 715 8,610 1,327 9,937 Total Segment profit (-loss) (Note) 1. “Others” is an operational segment that is not included in reportable segments, consisting of business in resistors, printheads, optical modules, tantalum capacitors, power modules, and lightings (LEDs). 2. The adjusted amount of the segment profit or loss, 1,327 million yen, mainly includes general administrative expenses of minus 521 million yen that do not attribute to the segment, and the settlement adjusted amount of 1,848 million yen, which is not allocated to the segment (such as adjustment for retirement benefits). 3. For segment profits or loss, adjustments are made using the operating income of the consolidated quarterly statements of income. 2. Information on impairment loss of fixed assets or goodwill of individual reportable segments <Significant impairment loss on fixed assets> At the time that OKI Semiconductor Co., Ltd. (the company changed its name to “LAPIS Semiconductor Co., Ltd. on October 1, 2011) was purchased, ROHM reduced the book value of account “good-will,” which accrued in the “ICs” segment, to the recoverable value and recorded the decrease as an impairment loss. The balance of impairment loss in the first six-month period of the year ending March 31, 2013 was 8,622 million yen. <Significant change in the balance of goodwill> During the consolidated period of the six months of the year ending March 31, 2013, ROHM has implemented assets impairment accounting procedures on “goodwill,” and such procedure was described in “Significant impairment loss in fixed assets.” 11 ROHM CO., LTD. (6963) Financial Report for the First Six Months of the Year Ending March 31, 2013 First six months of the year ending March 31, 2013 (From April 1, 2012 to September 30, 2012) Information on net sales, profits or losses by individual reportable segments (Unit: millions of yen) Reportable segments ICs Discrete semiconductor devices Subtotal Others (Note 1) Total Amount on consolidated income statement (Note 3) Adjusted amount (Note 2) Sales Sales to customers 73,239 50,854 124,094 26,659 150,753 - 150,753 Inter-segment sales or transfer 1,144 481 1,625 0 1,625 -1,625 - 74,383 51,336 125,719 26,659 152,379 -1,625 150,753 -3,637 5,443 1,805 -299 1,506 1,136 2,642 Total Segment profit (-loss) (Note) 1. “Others” is an operational segment that is not included in reportable segments, consisting of business in resistors, printheads, optical modules, tantalum capacitors, power modules, and lightings. 2. The adjusted amount of the segment profit or loss, 1,136 million yen, mainly includes general administrative expenses of minus 213 million yen that do not attribute to the segment, and the settlement adjusted amount of 1,350 million yen, which is not allocated to the segment (such as adjustment for retirement benefits). 3. For segment profits or loss, adjustments are made using the operating income of the consolidated quarterly statements of income. 12 ROHM CO., LTD. (6963) Financial Report for the First Six Months of the Year Ending March 31, 2013 4. Supplementary information Production, orders and actual sales status (1) Actual production (Unit: millions of yen) First six months of the year ended March 31, 2012 (From April 1, 2011 To September 30, 2011) First six months of the year ending March 31, 2013 (From April 1, 2012 To September 30, 2012) ICs 77,388 74,179 Discrete semiconductor devices 53,692 54,393 Total of reportable segments 131,081 128,573 Others 26,526 28,339 Total 157,607 156,912 (Notes) The amounts above are calculated based on the average sale prices for each fiscal year and consumption tax and the like are excluded. (2) Orders (Unit: millions of yen) First six months of the year ended March 31, 2012 (From April 1, 2011 To September 30, 2011) Order received First six months of the year ending March 31, 2013 (From April 1, 2012 To September 30, 2012) Order backlog Order received Order backlog ICs 78,220 24,004 70,000 20,363 Discrete semiconductor devices 53,450 15,557 50,577 13,972 Total of reportable segments 131,670 39,561 120,577 34,336 Others 27,669 8,738 26,858 7,611 Total 159,340 48,300 147,435 41,947 (Notes) The above amount does not contain consumption tax and the like. 13 ROHM CO., LTD. (6963) Financial Report for the First Six Months of the Year Ending March 31, 2013 (3) Actual sales Actual sales by segment (domestic) (Unit: millions of yen) First six months of the year ended March 31, 2012 (From April 1, 2011 To September 30, 2011) Amount First six months of the year ending March 31, 2013 (From April 1, 2012 To September 30, 2012) Domestic Ratio Amount Domestic Ratio ICs 33,528 41.4％ 27,948 38.2％ Discrete semiconductor devices 19,149 34.1 17,689 34.8 Total of reportable segments 52,677 38.4 45,638 36.8 Others 8,910 32.2 9,833 36.9 Total 61,588 37.4 55,471 36.8 Actual sales by segment (overseas) (Unit: millions of yen) First six months of the year ended March 31, 2012 (From April 1, 2011 To September 30, 2011) Amount First six months of the year ending March 31, 2013 (From April 1, 2012 To September 30, 2012) Overseas Ratio Amount Overseas Ratio ICs 47,423 58.6％ 45,291 61.8％ Discrete semiconductor devices 36,983 65.9 33,165 65.2 Total of reportable segments 84,407 61.6 78,456 63.2 Others 18,735 67.8 16,825 63.1 Total 103,142 62.6 95,282 63.2 Actual sales by segment (total) (Unit: millions of yen) First six months of the year ended March 31, 2012 (From April 1, 2011 To September 30, 2011) Amount First six months of the year ending March 31, 2013 (From April 1, 2012 To September 30, 2012) Percentage Distribution Amount Percentage Distribution ICs 80,952 49.1％ 73,239 48.6％ Discrete semiconductor devices 56,132 34.1 50,854 33.7 Total of reportable segments 137,084 83.2 124,094 82.3 Others 27,646 16.8 26,659 17.7 Total 164,730 100.0 150,753 100.0 (Note) The above amounts are sales to external customers and do not contain consumption tax and the like. 14
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