ROHM Co., Ltd. Financial Highlights for the First Six Months of the Year Ending March 31, 2015 (From April 1, 2014 to September 30, 2014) November 6, 2014 1. Consolidated Financial Results (Figures are rounded down to the nearest million yen. Any fraction less than the unit is rounded off.) '15/3 '14/3 First six months First six months Change from the previous year '14/3 '15/3 (Projected) Annual Annual the previous Change from Amount Percentage year Net sales Millions of yen 182,262 167,979 +14,283 +8.5% 331,087 357,000 Cost of sales Millions of yen 119,099 119,517 -418 -0.4% 227,014 237,500 Selling, general and administrative expenses Millions of yen 41,929 38,123 +3,806 +10.0% 80,437 85,500 Operating income (loss) Millions of yen 21,233 10,338 +10,895 +105.4% 23,635 34,000 (11.7%) (6.2%) (+5.5%) (7.1%) (9.5%) 28,440 16,743 +11,697 35,915 38,000 (15.6%) (10.0%) (+5.6%) (10.8%) (10.6%) 21,521 12,244 +9,277 32,091 30,000 (11.8%) (7.3%) (+4.5%) (9.7%) (8.4%) 199.63 113.57 +86.06 297.65 278.28 (Operating income ratio) Millions of yen Ordinary income (loss) (Ordinary income ratio) Millions of yen Net income (loss) (Net income ratio) +69.9% +75.8% Net income (loss) per share yen Net income to equity ％ 5.0 Ordinary income to total assets ％ 4.9 +75.8% Total assets Millions of yen 813,679 720,854 +92,825 +12.9% 754,407 Net assets Millions of yen 706,136 635,178 +70,958 +11.2% 663,387 +7.8% +43.8% +5.8% -6.5% Equity ratio ％ 86.7 88.1 -1.4 Net assets per share yen 6,546.09 5,887.93 +658.16 +11.2% 6,149.79 Capital expenditures Millions of yen 22,983 15,487 +7,496 +48.4% 31,754 58,400 +83.9% Depreciation Millions of yen 14,786 11,470 +3,316 +28.9% 25,559 34,600 +35.4% Research and development costs Millions of yen 18,959 17,131 +1,828 +10.7% 36,536 40,000 +9.5% Net financial revenue Millions of yen 1,060 935 +125 +13.4% 1,885 Foreign exchange gains(losses) Millions of (gain) 5,901 yen (gain) 5,310 (gain) 591 103.51 97.99 +5.52 Foregin exchange rate (Average yen-dollar rate) (Note) Contact: 87.9 (gain) 10,092 （Second half） yen/US$ +5.6% 100.00 105.00 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. Public Relations and Investor Relations Div., ROHM Co., Ltd. 21, Saiin Mizosaki-cho, Ukyo-ku, Kyoto 615-8585 Japan +81-75-311-2121 Note: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. - Financial Highlights 1 - 1. Consolidated Financial Results (Continued from the previous page) (Figures are rounded down to the nearest million yen. Any fraction less than the unit is rounded off.) '15/3 '14/3 First six months First six months Change from the previous year '14/3 '15/3 (Projected) Amount Percentage Annual Annual Change from the previous year Sales by segment and geographical region (Note 1) ICs Millions of yen 85,803 79,151 +6,652 +8.4% 154,183 166,279 +7.8% (Japan) (24,311) (25,244) (-933) (-3.7%) (48,436) (50,882) (+5.0%) (Asia) (+9.1%) (54,242) (47,905) (+6,337) (+13.2%) (93,841) (102,377) (Americas) (4,454) (3,925) (+529) (+13.5%) (7,476) (7,686) (+2.8%) (Europe) (2,794) (2,076) (+718) (+34.6%) (4,428) (5,333) (+20.4%) 65,375 58,952 +6,423 +10.9% 117,746 126,128 +7.1% (Japan) (19,187) (16,705) (+2,482) (+14.9%) (34,869) (37,710) (+8.1%) (Asia) (+5.9%) Discrete semiconductor devices (38,665) (35,986) (+2,679) (+7.4%) (69,833) (73,972) (Americas) (3,908) (3,547) (+361) (+10.2%) (7,089) (7,794) (+9.9%) (Europe) (3,614) (2,712) (+902) (+33.2%) (5,953) (6,650) (+11.7%) Modules (Japan) (Asia) (Americas) (Europe) Others 17,504 16,459 +1,045 +6.3% 31,648 36,898 +16.6% (4,130) (3,975) (+155) (+3.9%) (7,962) (8,471) (+6.4%) (11,645) (10,810) (+835) (+7.7%) (20,512) (25,160) (+22.7%) (694) (546) (+148) (+27.0%) (1,064) (1,227) (+15.3%) (1,033) (1,126) (-93) (-8.2%) (2,108) (2,038) (-3.3%) 13,579 13,416 +163 +1.2% 27,509 27,693 +0.7% (Japan) (4,095) (5,170) (-1,075) (-20.8%) (10,043) (9,421) (-6.2%) (Asia) (7,650) (6,632) (+1,018) (+15.3%) (14,138) (14,785) (+4.6%) (808) (743) (+65) (+8.7%) (1,464) (1,509) (+3.0%) (1,025) (870) (+155) (+17.8%) (1,862) (1,976) (+6.1%) 182,262 167,979 +14,283 +8.5% 331,087 357,000 +7.8% (51,724) (51,096) (+628) (+1.2%) (101,312) (106,486) (+5.1%) (112,204) (101,334) (+10,870) (+10.7%) (198,325) (216,296) (+9.1%) (Americas) (Europe) Total (Japan) (Asia) (Americas) (9,865) (8,762) (+1,103) (+12.6%) (17,095) (18,217) (+6.6%) (Europe) (8,468) (6,786) (+1,682) (+24.8%) (14,354) (15,999) (+11.5%) Sales by application (Note 2) 5.2 5.0 +0.2 4.9 Home Appliance 3.5 3.4 +0.1 3.5 Other Consumer 11.7 13.0 -1.3 12.1 Computer and OA 14.1 12.9 +1.2 13.0 Telecommunications 10.5 11.7 -1.2 11.4 Automotive 25.6 24.4 +1.2 25.8 Other Industrial 7.8 7.0 +0.8 7.4 Subassemblies 17.2 17.1 +0.1 16.5 4.4 5.5 -1.1 5.4 Audio,Visual Others ％ Major End Products Audio,Visual TV, Recorder/Player, Video Camera, Memory Audio, etc. Home Appliances Microwave Oven, Air Conditioner, Refrigerator, Washing Machine, Air Cleaner, etc. Other Consumer Digital Still Camera, Game Machine, Watch, Electronic Musical Instrument, etc. Computer and OA PC, Server, Tablet PC, Printer, Data Storage(DVD, HDD, Semiconductor Memory), Monitor, Terminal, etc. Telecommunications Cellular Phone, FAX, Network, etc. Automotive Engine Control Unit, Air bag, Car Navigation, Car Audio etc. Other Industrial Medical Equipment, Electrical Measuring Equipment, Machine Tool, Vending Machine, Solar Power, Smart Meter, etc. Power Supply for Consumer Appliance/Telecommunications/PC/ Industrial Equipment, Flat panel module for PC/TV, Tuner, Motor, Optial Pick up Laser, Unit, etc. OEM Sales, Lighting Equipment, etc. Subassemblies Others (Note1) The above amounts are sales to external customers. (Note2) Sales by application for '14/3 is modified since the calculation method is changed from this period. - Financial Highlights 2 - 2.Associated information (Figures are rounded down to the nearest million yen. Any fraction less than the unit is rounded off.) '15/3 '14/3 First six months First six months Change from the previous year '14/3 '15/3 (Projected) Amount Percentage Annual Annual the previous Change from year Capital expenditures by segment Millions of yen ICs 11,013 6,707 +4,306 +64.2% 14,246 27,200 +90.9% Discrete semiconductor devices 6,992 6,486 +506 +7.8% 12,772 18,000 +40.9% Modules 2,912 524 +2,388 +455.7% 1,329 7,900 +494.0% Others 1,458 1,097 +361 +33.0% 1,970 4,100 +108.1% 605 671 -66 -9.8% 1,435 1,200 -16.4% 22,983 15,487 +7,496 +48.4% 31,754 58,400 +83.9% 45.0 20.0 +25.0 (50.0) (90.0) Sales and administrative division Total Interim dividends Yen (Annual cash dividends) Number of shareholders (Yen) Number 22,265 27,990 -5,725 -20.5% 24,965 Financial institution shareholding ratio ％ 28.19 23.89 +4.30 24.84 Foregin shareholding ratio ％ 44.90 47.22 -2.32 46.91 Japan Number 5,265 5,219 +46 +0.9% 5,146 Overseas Number 15,009 14,962 +47 +0.3% 14,839 Total Number 20,274 20,181 +93 +0.5% 19,985 (Number) (2,913) (2,916) (-3) (-0.1%) (2,874) 47 48 -1 47 Number of employees (Number of R&D employees) Number of consolidated subsidiaries Number (Japan) (Number) (11) (12) (-1) (11) (Overseas) (Number) (36) (36) (0) (36) 3 3 0 3 (0) (0) (0) (0) 2 2 0 2 (0) (0) (0) (0) Number of affiliated companies Number (Number of companies accounted for by equity method) Number of non-consolidated subsidiaries (Number) Number (Number of companies accounted for by equity method) (Number) - Financial Highlights 3 - Financial Report for the First Six Months of the Year Ending March 31, 2015 [Based on Japanese Standard] (Consolidated) November 6, 2014 Listed Company Name: ROHM CO., LTD. Stock Exchange Listings: Tokyo URL http://www.rohm.com Code No.: 6963 Company Representative: (Title) President (Name) Satoshi Sawamura Contact Person: (Title) Director, Accounting Headquarters (Name) Eiichi Sasayama TEL 075-311-2121 Scheduled Date for Submitting the Quarterly Financial Reports November 12, 2014 Scheduled Dividend Payment Date December 5, 2014 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 Financial Results for the First Six Months of the Year Ending March 31, 2015 (From April 1, 2014 to September 30, 2014) (1) Consolidated Results of Operations (Accumulated total) (The percentages [%] represent change from the same time of the previous year.) Net sales Operating income Net income for the first six months of the year ending March 31, 2015 Ordinary income Millions of yen ％ Millions of yen ％ Millions of yen ％ Millions of yen ％ 182,262 8.5 21,233 105.4 28,440 69.9 21,521 75.8 167,979 11.4 10,338 291.2 16,743 First six months of the year ending March 31, 2015 First six months of the year ended March 31, 2014 (Note) Comprehensive income ― 12,244 ― First six months of the year ending March 31, 2015: 44,085 million yen (90.4%) First six months of the year ended March 31, 2014: 23,153 million yen (—%) Net income per share Diluted net income per share Yen First six months of the year ending March 31, 2015 First six months of the year ended March 31, 2014 Yen 199.63 ― 113.57 ― (2) Consolidated Financial Position Total assets Net assets Equity ratio Millions of yen First six months of the year 813,679 ending March 31, 2015 Year ended March 31, 2014 754,407 (Reference) Shareholder’s equity First six months of the year ending March 31, 2015: Year ended March 31, 2014: Millions of yen ％ 706,136 86.7 663,387 705,697 million yen 662,983 million yen 87.9 2. Dividend Details End of the first quarter Annual dividend End of the third quarter Interim Yen Year ended March 31, 2014 Year ending March 31, 2015 Year ending March 31, 2015 (Estimates) Yen ― ― End of year Yen 20.00 45.00 Total Yen Yen ― 30.00 50.00 ― 45.00 90.00 (Note) Revision to recently disclosed dividend estimates: Yes 3. Consolidated Financial Results Forecast for the Year Ending March 31, 2015 (From April 1, 2014 to March 31, 2015) (The percentages [%] represent change from the previous year.) Net sales Annual Operating income Ordinary income Net income per share Net income Millions of yen ％ Millions of yen ％ Millions of yen ％ Millions of yen ％ Yen 357,000 7.8 34,000 43.8 38,000 5.8 30,000 - 6.5 278.28 (Note) Revision to recently disclosed figures for consolidated financial results forecast: Yes *Note (1) Major Changes in Subsidiaries During the First Six Months of the Current Fiscal Year (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: Yes [2] Other changes in accounting policies other than items indicated in [1]: None [3] Change in accounting estimates: None [4] Restatement of revisions: None (Note) Please refer to “2. Items Regarding Summary Information (Note), (3) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatement of Revisions” on Page 6 of the Financial Report for the First Six Months of the Year Ending March 31, 2015 (Appendix). (4) Number of Shares Outstanding (common shares) [1] Year-end number of First six months of the year Year ended shares outstanding 113,400,000 shares 113,400,000 shares ending March 31, 2015 March 31, 2014 (incl. treasury stocks) [2] Year-end number of First six months of the year Year ended 5,595,470 shares 5,594,438 shares treasury stocks ending March 31, 2015 March 31, 2014 [3] Average number of shares First six months of the year First six months of the year during the period (Accumulated 107,805,123 shares 107,813,554 shares ending March 31, 2015 ended March 31, 2014 total of the quarter) *Description Regarding Implementation Status of Quarterly Review Procedures This quarterly financial report is not applicable to the quarter review procedures based on 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 Financial Instruments and Exchange Act had been completed. *Explanation on Adequate Usage of Financial Results Forecast Statements on financial 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 financial results may be considerably different due to various factors. For conditions and notes used for making prepositions of financial forecasts, please refer to “1. Qualitative Information Regarding Business Results, etc. for the First Six Months of the Current Fiscal Year, (3) Qualitative Information Regarding Consolidated Financial Results Forecast” on Page 5 of the Financial Report for the First Six Months of the Year Ending March 31, 2015 (Appendix). ROHM CO., LTD. (6963) Financial Report for the First Six Months of the Year Ending March 31, 2015 ○Table of Contents 1. Qualitative Information Regarding Business Results, etc. for the First Six Months of the Current Fiscal Year 2 (1) Business Results 2 (2) Financial Conditions 4 (3) Qualitative Information Regarding Consolidated Financial Results Forecast 5 2. Items Regarding Summary Information (Note) 6 (1) Major Changes in Subsidiaries During the First Six Months of the Current Fiscal Year 6 (2) Application of Specific Accounting Procedure for Compiling Consolidated Financial Statement 6 (3) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatement of Revisions 6 3. Consolidated Quarterly Financial Statements 7 (1) Consolidated Quarterly Balance Sheets 7 (2) Consolidated Quarterly Statement of Income and Consolidated Quarterly Statement of Comprehensive Income 9 Consolidated quarterly statement of income 9 Consolidated quarterly statement of comprehensive income 10 (3) Consolidated Quarterly Statements of Cash Flows 11 (4) Note on Consolidated Quarterly Financial Statements 12 (Note on going concern) 12 (Note in case of significant change in amount of shareholders’ equity) 12 (Segment information etc.) 12 4. Supplementary Information 13 Orders 13 * Separately attached as supplementary material are “Financial Highlights for the First Six Months of the Year Ending March 31, 2015.” 1 ROHM CO., LTD. (6963) Financial Report for the First Six Months of the Year Ending March 31, 2015 1. Qualitative Information Regarding Business Results, etc. for the First Six Months of the Current Fiscal Year (1) Business Results General Overview of Business Performance The world economy in the first six months of the year ending March 31, 2015 grew steadily as a whole, despite concerns such as the worsening situation in the Ukraine and the stagnant economy in Europe, driven by an expanding economy in the USA, a gradual yet continuing recovery in Japan, and slowed but nonetheless strong growth in China and other countries. By individual regions, in the US the employment situation improved and the economy continued to expand as personal consumption, the housing market, and industrial production remained strong. In Europe, the economy began to stall due to the worsening situation in the Ukraine and the German economy, which started out strong, lost momentum in the latter half of the quarter. In Asia, performance varied by country with the Chinese economy slowing because of inactivity in the housing market, while the economies in Taiwan and India saw growth. In Japan, the economy was sluggish, caused by the increase in consumption tax and bad weather, but the employment situation improved and corporate earnings continued to get better, which resulted in a mild recovery. In the electronics industry, smartphones and tablets remained strong, while the automotive sector also saw strong demand due to a firm global market and increased use of in-vehicle electronics. Amid this business climate, the ROHM Group continued to strengthen product lineups for the automotive and industrial equipment markets, where growth is anticipated for the mid- to long-term, and developed new products in each category with a view to increase future earnings through 4 ‘growth engines’: [1] IC synergy (with LAPIS Semiconductor Co., Ltd.), [2] SiCbased power devices and power module products, [3] optical modules, and [4] sensor-related products. The ROHM Group also continued efforts from the last fiscal year to build up its sales operations in overseas markets and increase the sales of existing products. More specifically, the ROHM Group continued to strengthen its lineups of power ICs for in-vehicle microcontrollers and high voltage Zener diodes for the automotive sector. For smartphones and tablets, the ROHM Group developed and improved its lineups of sensors, power ICs, the RASMID ® series *1 of ultra-miniaturize components, as well as the world’s smallest transistors. The Group also worked to enhance its production system for power management ICs for Intel ® Atom TM Processors, which are in high demand for tablets. And for the industrial equipment market, the ROHM Group sold a gateway development kit for EnOcean *2 and expanded its lineups of low power microcontrollers and HD-PLC Inside *3 compliant baseband ICs for power line communications. Meanwhile, a new design center was opened in India and efforts were made to strengthen the customer support system in North America. In addition, the ROHM Group promoted the development of next-generation Wi-SUN communication modules *4 and wireless communication ICs compatible with Bluetooth Smart *5, and took advantage of its LED lighting and other semiconductor application technologies to work on prototype agricultural products. Under these circumstances, consolidated net sales for the first six months of the fiscal year ending March 31, 2015 were 182,262 million yen (an increase of 8.5% from the same time last year) and operating income was 21,233 million yen (an increase of 105.4% from the same time last year). Ordinary income was 28,440 million yen thanks to foreign currency exchange gains (an increase of 69.9% from the same time last year) and net income for the quarter was 21,521 million yen (an increase of 75.8% from the same time last year). *1. RASMID ® (ROHM Advanced Smart Micro Device) Series The smallest lineup of components in the world, developed utilizing breakthrough manufacturing methods for unprecedented miniaturization and ultra-high dimensional precision (±10μm). Product examples include 03015 size chip resistors and 0402 size diodes. *2.EnOcean A next-generation wireless communication standard that utilizes energy harvesting technology to transmit information using minimal power. In addition to being wireless, no power source or maintenance is required, making it ideal for HEMS and BEMS. The ROHM Group is a promoter and key member of the EnOcean Alliance, an organization for promoting the wireless standard, where ROHM will focus on technology development and product sales. *3.HD-PLC Inside A standard for building high-speed communication networks using existing power lines. *4.Wi-SUN (Wireless Smart Utility Network) An international wireless communication standard for building smart communities. 2 ROHM CO., LTD. (6963) Financial Report for the First Six Months of the Year Ending March 31, 2015 *5. Bluetooth Smart Bluetooth is a near-field digital wireless telecommunication standard for exchanging information (including textual and voice data) between devices at a distance of several to tens of meters using 2.4 GHz frequency band. It has been adopted in a number of products, such as keyboards and mice for PCs (mainly notebook PCs), mobile phones, PHSs, and smartphones. Bluetooth Smart is a brand name that indicates compatibility with Bluetooth ® Low Energy, a low energy protocol of the Bluetooth standard. Overview of Performance by Segment <ICs> Consolidated net sales for the first six months of the year ending March 31, 2015 were 85,803 million yen (an increase of 8.4% from the same time last year) and segment income was 12,999 million yen (an increase of 221.1% from the same time last year). In the automotive sector, sales of power ICs, motor driver ICs, LED driver ICs, and LCD driver ICs grew as a result of increased adoption of in-vehicle electronics. Sales of power ICs in the industrial equipment field increased as well. In the digital AV equipment field, sales of power ICs for cameras were down due to difficult conditions from the previous quarter in the digital still camera market, although system ICs for car audio and high resolution audio equipment remained strong. Sales of power ICs to the Korean and Chinese TV markets were on a recovery trend. In IT-related market, sales of power ICs for tablets increased significantly and sales of camera module lens driver ICs and brightness sensors for smartphones were up. Sales of power ICs improved in the game console market as well, arising from greater demand from some customers. And in other fields, such as consumer electronics, sales of motor driver ICs, power ICs and EEPROMs *6 were on an upward trend. For LAPIS Semiconductor Co., Ltd., although the adoption of lithium ion battery monitoring ICs and low power microcontrollers for the industrial equipment and automotive markets progressed, revenue from some memory ICs for gaming consoles entered an adjustment phase as sales decreased. *6. EEPROM (Electrically Erasable Programmable Read-Only Memory) A type of non-volatile memory for storing data. <Discrete Semiconductor Devices> Consolidated net sales for the first six months of the year ending March 31, 2015 were 65,375 million yen (an increase of 10.9% from the same time last year) and segment income was 8,896 million yen (an increase of 53.0% from the same time last year). Sales of power MOSFETs *7 for automotive applications and smartphones remained strong. Likewise, small-signal diodes for smartphones and tablets and rectifier diodes *8 for the automotive market saw increased sales. In the SiC segment, sales for air conditioners and solar power equipment were robust, while sales in the automotive-related sector grew due to increased adoption by vehicle manufacturers. IGBTs *9 also experienced greater adoption in the automotive industry. Regarding LEDs, although sales of blue LEDs in the gaming and entertainment markets increased, sales of compact LEDs for mobile devices were sluggish. In the laser diode category, sales for the printer market trended upward. *7. MOSFET Short for Metal Oxide Semiconductor Field Effect Transistor. This type of transistor enables faster switching with less power consumption than bipolar transistors, and is widely used in a variety of electronic products. *8. Rectifier Diode A diode optimized for high-speed switch of medium range currents. They are typically used in current rectification circuits to protect electrical instrumentation against reverse connection. *9. IGBT Short for Insulated Gate Bipolar Transistor, a semiconductor that combines the best features of a MOSFET and bipolar transistor, making it ideal for power control applications. 3 ROHM CO., LTD. (6963) Financial Report for the First Six Months of the Year Ending March 31, 2015 <Modules> Consolidated net sales for the first six months of the year ending March 31, 2015 were 17,504 million yen (an increase of 6.3% from the same time last year) and segment income was 822 million yen (a decrease of 37.7% from the same time last year). Sales of printheads for mobile card payment terminals and receipt printers were strong. In the optical module segment, although sales of IrDA *10 communication modules for gaming consoles and mobile phones were sluggish, sales of sensor modules for smartphones increased. Sales of power modules for the camera market were down. *10. IrDA Short for Infrared Data Association, the organization responsible for establishing technical standards for near-field data communications using infrared light. <Others> Consolidated net sales for the first six months of the year ending March 31, 2015 were 13,579 million yen (an increase of 1.2% from the same time last year) and segment loss was 836 million yen (against a segment loss of 350 million yen in the same quarter last year). Sales of resistors for smartphones and automotive applications increased, while sales of tantalum capacitors for smartphones were strong. Regarding our LED lighting products, development was directed at applications for new fields, such as products for closed growing systems. Please note that the above sales figures were to external customers. (2) Financial Conditions At the end of the second quarter of the year ending on March 31, 2015, total assets of the ROHM Group were 813,679 million yen, constituting an increase of 59,272 million yen from the end of the previous fiscal year. The primary factors behind this were increases respectively in notes and accounts receivable (trade) to 14,817 million yen, property, plants and equipment to 11,774 million yen, investments securities to 8,242 million yen, cash and deposits to 7,671 million yen, securities to 6,654 million yen, and miscellaneous investments and other assets to 5,692 million yen (of which 5,667 million yen were long-term deposits). Liabilities increased 16,524 million yen from the end of the previous fiscal year, to 107,543 million yen. The primary factors behind this were increases respectively in miscellaneous current liabilities to 10,048 million yen (of which 4,538 million yen were electronically recorded non-operating obligations and 2,724 million yen were accounts payable expenses), accounts payable to 2,379 million yen, electronically recorded operating obligations to 2,262 million yen, and notes and accounts payable (trade) to 2,001 million yen. Net assets increased 42,749 million yen from the end of the previous fiscal year, to 706,136 million yen. This owes primarily to increases of 19,592 million yen in retained earnings resulting from net income posted for the quarter and 16,841 million yen in foreign currency translation adjustments. As a result, equity ratio decreased from the 87.9% registered at the end of the previous fiscal year to 86.7%. Cash flows were as follows. Cash flow from operating activities in the second quarter of the year ending March 31, 2015 increased 3,476 million yen from the same quarter of the previous fiscal year (a positive cash flow of 27,036 million yen), to 30,512 million yen. The positive factors behind this were an increase in income before income taxes and minority interests, and a decrease in accounts payable, while a smaller decrease in inventories worked negatively against that. Cash flow from investing activities was 61,015 million yen after an increased outlay of 29,849 million yen against the same quarter of the previous fiscal year (a negative cash flow of 31,166 million yen). This was mainly attributed to an increase in time deposits and a decrease in proceeds from sales of property, plants and equipment, which had a negative effect, and a decrease in purchases of short-term and long-term investment securities, which had a positive effect. Cash flow from financing activities was 3,280 million yen after an increased outlay of 1,556 million yen against the same quarter of the previous fiscal year (a negative cash flow of 1,724 million yen). The main factor behind this was an increase in cash dividends paid. After adding to the above factors an increase of 8,329 million yen due to exchange rate conversion differences, cash and cash equivalents for the second quarter of the current fiscal year decreased by 25,453 million yen from the previous fiscal year, amounting to 214,937 million yen. 4 ROHM CO., LTD. (6963) Financial Report for the First Six Months of the Year Ending March 31, 2015 (3) Qualitative Information Regarding Consolidated Financial Results Forecast Despite the worsening business confidence and other disconcerting events in China and Europe, signs of a recovery in consumption in Japan and a good economy in the US lead us to believe that the world economy is holding firm for now. In the electronics sector, slowing has been seen with some consumer products such as digital still cameras, however the smartphone, automotive and industrial equipment markets experienced steady growth. In the present business climate, the ROHM Group will continue to direct efforts and resources at overseas and key markets such as the automotive and industrial equipment sectors and will strengthen product lineups for smartphones and mobile devices. Additionally, the ROHM Group will take steps to enhance reliability and bring added value, strengthen customer support, and upgrade R&D and production systems from a long-term perspective. In consideration of the above-mentioned situations, we have revised our consolidated financial results forecast for the year ending on March 31, 2015 as follows. <Financial results forecast for the year ending March 31, 2015 (Consolidated)> (Units: million yen) Year Ending on March 31, 2015 Year Ended on March 31, 2014 Previous Forecast (Declared on May 1, 2014) Current Forecast (Declared on November 6, 2014) Percent Change From the Previous Year (%) Net sales 331,087 344,000 357,000 +7.8% Operating income 23,635 25,500 34,000 +43.8% Ordinary income 35,915 25,500 38,000 +5.8% Net income 32,091 21,000 30,000 -6.5% The forecasts are based on an exchange rate of 105 yen to US$1. 5 ROHM CO., LTD. (6963) Financial Report for the First Six Months of the Year Ending March 31, 2015 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 Change in accounting policies (Application of Accounting Standards for Retirement Benefits) As of the first quarter of the year ending on March 31, 2015, the ROHM Group is applying ASBJ Statement No. 26 of May 17, 2012 (Accounting Standards for Retirement Benefits) and ASBJ Guidance No. 25 of May 17, 2012 (Guidance on Accounting Standards for Retirement Benefits) to provisions in Article 35 of the aforementioned standard and Article 67 of the aforementioned guidance. This has required ROHM to make changes to how retirement benefit obligations and current service costs are calculated. ROHM has changed how expected benefits are attributed to periods of time from a straight-line basis to a benefit formula basis, and how discount rates are determined from basing that on an approximate number of years for the average expected remaining working life of employees to using a single weighted average discount rate that reflects the estimated timing and amount of each benefit payment. In applying the aforementioned standard, the ROHM Group adjusted its retained earnings at the beginning of this quarter to offset the financial impact from changing how retirement benefit obligations and current service costs are calculated, in accordance with transitional provisions provided for in Article 37 of the aforementioned standard. As a result, net defined benefit assets were increased by 588 million yen and net defined benefit liabilities were decreased by 1,525 million yen at the beginning of this quarter, resulting in an increase of 1,305 million yen in retained earnings. Furthermore, because of the decrease in net defined benefit liabilities and the change in valuation allowances of deferred tax assets that are included in remeasurements of defined benefit plans posted at the beginning of this quarter, remeasurements of defined benefit plans were increased by 599 million yen. The impact of these changes on operating income, ordinary income and income before income taxes and minority interests for this quarter was negligible. 6 ROHM CO., LTD. (6963) Financial Report for the First Six Months of the Year Ending March 31, 2015 3. Consolidated Quarterly Financial Statements (1) Consolidated Quarterly Balance Sheets End of the accounting year ended March 31, 2014 (March 31, 2014) （Unit: millions of yen） First six months of the year ending March 31, 2015 (September 30, 2014) 272,982 67,536 280,653 82,353 2,214 2,121 15,282 25,533 39,739 25,761 4,170 269 8,475 -220 461,745 21,936 24,570 39,891 28,011 4,632 196 9,385 -245 493,506 213,747 465,152 45,585 63,960 15,828 -591,977 212,297 218,407 487,017 47,974 64,343 18,949 -612,621 224,071 66 2,938 3,005 49 4,065 4,115 58,841 723 5,525 12,556 -287 77,359 292,661 754,407 67,083 1,495 5,508 18,248 -349 91,986 320,173 813,679 Assets Current assets Cash and deposits Notes and accounts receivable - trade Electronically recorded monetary claims operating Securities Merchandise and finished goods Work in process Raw materials and supplies Deferred tax assets Income taxes receivable Other Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Buildings and structures Machinery, equipment and vehicles Tools, furniture and fixtures Land Construction in progress Accumulated depreciation Total property, plant and equipment Intangible assets Goodwill Other Total intangible assets Investments and other assets Investment securities Net defined benefit asset Deferred tax assets Other Allowance for doubtful accounts Total investments and other assets Total non-current assets Total assets 7 ROHM CO., LTD. (6963) Financial Report for the First Six Months of the Year Ending March 31, 2015 End of the accounting year ended March 31, 2014 (March 31, 2014) （Unit: millions of yen） First six months of the year ending March 31, 2015 (September 30, 2014) 12,324 7,065 12,595 3,636 45 17,285 52,954 14,325 9,327 14,974 2,658 17 27,333 68,637 25,764 9,948 2,351 38,065 91,019 27,354 8,489 3,061 38,906 107,543 86,969 102,403 561,002 -50,125 700,250 86,969 102,403 580,594 -50,131 719,836 13,347 18,801 -45,788 -4,825 -37,266 404 663,387 754,407 -28,947 -3,993 -14,139 438 706,136 813,679 Liabilities Current liabilities Notes and accounts payable - trade Electronically recorded obligations - operating Accounts payable - other Income taxes payable Deferred tax liabilities Other Total current liabilities Non-current liabilities Deferred tax liabilities Net defined benefit liability Other Total non-current liabilities Total liabilities Net assets Shareholders' equity Capital stock Capital surplus Retained earnings Treasury shares Total shareholders' equity Accumulated other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans Total accumulated other comprehensive income Minority interests Total net assets Total liabilities and net assets 8 ROHM CO., LTD. (6963) Financial Report for the First Six Months of the Year Ending March 31, 2015 (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, 2015) Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating income Non-operating income Interest income Foreign exchange gains Other Total non-operating income Non-operating expenses Provision of allowance for doubtful accounts Environment readiness fee Other Total non-operating expenses Ordinary income Extraordinary income Gain on sales of non-current assets Gain on insurance adjustment Total extraordinary income Extraordinary losses Loss on sales of non-current assets Loss on abandonment of non-current assets Impairment loss Loss on reduction of non-current assets Loss on valuation of investment securities Loss on transfer of business Total extraordinary losses Income before income taxes and minority interests Income taxes - current Income taxes for prior periods Income taxes - deferred Total income taxes Income before minority interests Minority interests in income Net income First six months of the year ended March 31, 2014 (From April 1, 2013 to September 30, 2013) 167,979 119,517 48,461 38,123 10,338 （Unit: millions of yen） First six months of the year ending March 31, 2015 (From April 1, 2014 to September 30, 2014) 182,262 119,099 63,163 41,929 21,233 697 5,310 528 6,535 737 5,901 644 7,283 112 17 130 16,743 57 19 77 28,440 556 481 1,038 2 2 138 109 36 7 6 52 349 17,431 2,427 2,207 538 5,174 12,257 13 12,244 6 173 1,000 5 1,186 27,255 7,011 384 -1,680 5,715 21,540 18 21,521 9 ROHM CO., LTD. (6963) Financial Report for the First Six Months of the Year Ending March 31, 2015 (Consolidated quarterly statement of comprehensive income) (First six months of the year ending March 31, 2015) Income before minority interests Other comprehensive income Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans, net of tax Total other comprehensive income Comprehensive income Comprehensive income attributable to Comprehensive income attributable to owners of parent Comprehensive income attributable to minority interests First six months of the year ended March 31, 2014 (From April 1, 2013 to September 30, 2013) 12,257 （Unit: millions of yen） First six months of the year ending March 31, 2015 (From April 1, 2014 to September 30, 2014) 21,540 4,718 6,176 － 10,895 23,153 5,454 16,858 232 22,545 44,085 23,145 44,049 7 36 10 ROHM CO., LTD. (6963) Financial Report for the First Six Months of the Year Ending March 31, 2015 (3) Consolidated Quarterly Statements of Cash Flows (Unit: millions of yen) First six months of the year ending March 31, 2015 (From April 1, 2014 to September 30, 2014) First six months of the year ended March 31, 2014 (From April 1, 2013 to September 30, 2013 Cash flows from operating activities Income before income taxes and minority interests Depreciation Impairment loss Gain on insurance claim Amortization of goodwill Increase (decrease) in provision for retirement benefits Increase (decrease) in net defined benefit liability Increase (decrease) in provision for loss on liquidation of subsidiaries and associates Decrease (increase) in prepaid pension costs Decrease (increase) in net defined benefit asset Interest and dividend income Foreign exchange losses (gains) Loss (gain) on valuation of short-term and longterm investment securities Decrease (increase) in notes and accounts receivable - trade Decrease (increase) in inventories Increase (decrease) in notes and accounts payable trade Increase (decrease) in accounts payable - other Increase (decrease) in other current liabilities Other, net Subtotal Proceeds from insurance income Interest and dividend income received Interest expenses paid Income taxes (paid) refund Net cash provided by (used in) operating activities Cash flows from investing activities Decrease (increase) in time deposits Purchase of short-term and long-term investment securities Proceeds from sales and redemption of short-term and long-term investment securities Purchase of property, plant and equipment Proceeds from sales of property, plant and equipment Other, net Net cash provided by (used in) investing activities Cash flows from financing activities Purchase of treasury shares Cash dividends paid Other, net Net cash provided by (used in) financing activities Effect of exchange rate change on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period 11 17,431 11,470 36 -481 16 27,255 14,786 1,000 16 -269 - － 248 -1,511 - 40 -935 -1,827 -86 -1,060 -2,694 6 5 -8,277 -12,065 13,409 1,810 140 2,625 -4,987 628 -427 24,462 481 897 -0 1,196 27,036 1,195 5,108 136 38,282 1,065 -0 -8,834 30,512 -15,849 -41,895 -11,931 -8,389 7,538 5,682 -13,942 -14,745 2,926 2 91 -31,166 -1,670 -61,015 -3 -1,617 -104 -1,724 -6 -3,234 -40 -3,280 3,233 8,329 -2,621 197,045 194,424 -25,453 240,391 214,937 ROHM CO., LTD. (6963) Financial Report for the First Six Months of the Year Ending March 31, 2015 (4) Note on Consolidated Quarterly Financial Statements (Note on going concern) No applicable items (Note in case of significant change in amount of shareholders’ equity) No applicable items (Segment information etc.) [Segment information] First six months of the year ended March 31, 2014 (From April 1, 2013 to September 30, 2013) Information on net sales, profits or losses by individual reportable segments (Unit: millions of yen) Reportable segments ICs Discrete semiModules conductor devices Others Subtotal (Note 1) Total Amount on Adjusted consolidated amount income (Note 2) statement (Note 3) Sales Sales to customers Inter-segment sales or transfer Total Segment profit (-loss) (Note) 1. 2. 3. 167,979 79,151 58,952 16,459 154,562 13,416 167,979 943 1,599 25 2,568 25 2,594 -2,594 80,094 60,551 16,485 157,131 13,442 170,573 -2,594 167,979 4,048 5,814 1,320 11,183 -350 10,833 -494 10,338 “Others” is an operational segment that is not included in reportable segments, consisting of business in resistors, tantalum capacitors, and lightings. The adjusted amount of the segment profit or loss, minus 494 million yen, mainly includes general administrative expenses of minus 388 million yen that do not attribute to the segment, and the settlement adjusted amount of minus 106 million yen, which is not allocated to the segment (such as adjustment for retirement benefits). For segment profits or loss, adjustments are made using the operating income of the consolidated quarterly statements of income. First six months of the year ending March 31, 2015 (From April 1, 2014 to September 30, 2014) 1. Information on net sales, profits or losses by individual reportable segments (Unit: millions of yen) Reportable segments ICs Discrete semiModules conductor devices Others Subtotal (Note 1) Total Amount on Adjusted consolidated amount income (Note 2) statement (Note 3) Sales Sales to customers 85,803 65,375 17,504 168,683 13,579 182,262 － 182,262 Inter-segment sales or transfer 1,462 2,214 127 3,805 29 3,834 -3,834 － 87,265 67,590 17,631 172,488 13,609 186,097 -3,834 182,262 12,999 8,896 822 22,717 -836 21,880 -647 21,233 Total Segment profit (-loss) (Note) 1. 2. 3. “Others” is an operational segment that is not included in reportable segments, consisting of business in resistors, tantalum capacitors, and lightings. The adjusted amount of the segment profit or loss, minus 647 million yen, mainly includes general administrative expenses of minus 682 million yen that do not attribute to the segment, and the settlement adjusted amount of 35 million yen, which is not allocated to the segment (such as adjustment for retirement benefits). 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, 2015 2. Information on impairment loss of non-current assets or goodwill of individual reportable segments (Significant impairment loss on non-current assets) In the module segment, an impairment loss was recorded for non-current assets. Impairment losses for the second quarter of the current fiscal year were 931 million yen. 4. Supplementary Information Orders (Unit: millions of yen) First six months of the year ended March 31, 2014 (From April 1, 2013 to September 30, 2013) Order received First six months of the year ending March 31, 2015 (From April 1, 2014 to September 30, 2014) Order backlog Order received Order backlog ICs 83,562 24,269 84,806 26,271 Discrete semiconductor devices 61,634 17,204 65,843 20,481 Modules 16,870 5,595 17,451 6,026 Total of reportable segments 162,067 47,069 168,101 52,779 Others 14,083 3,450 13,346 3,811 Total 176,151 50,520 181,448 56,590 (Notes) The above amount does not contain consumption tax and the like. 13
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