Financial Results/ 2019/3 1H. Note:This document is a translation of the 2019/3-1H Presentation written in Japanese.

Transcription

1 2019/3 1H Financial Results/ Management Measures Note:This document is a translation of the 2019/3-1H Presentation written in Japanese. In the event of any discrepancies in words, accounts, figures, or the like between this report and the original, the original Japanese version shall govern. 212J

2 AGENDA Financial Results Ended 2019/3 1H Financial Results of 2019/3 1H Factors for Sales Changes in 1H YOY Comparison of OP in 1H Plan of Ending 2019/3 Plan of 2019/3 YOY Factors for Sales Changes in 2019/3 YOY Comparison of OP in 2019/3 ROHM s Strategy Return to Shareholders P J01A

3 2019/3 1H Financial Results(V.S Initial plan) 19/3 1H 19/3 1H Change from initial plan Initial plan Amount Percentage Net sales % Operating income % (Ratio) (16.8%) (14.3%) - - Ordinary income % (Ratio) (20.9%) (14.8%) - - Net income % (Ratio) (14.7%) (10.7%) - - EBITDA % (Ratio) (26.8%) (24.8%) - - Average rate ( /US$) ( ) ( ) P J02A

4 2019/3 1H Financial Results(YOY) 19/3 1H 18/3 1H Change from 18/3 1H Amount Percentage Net sales % Operating income % (Ratio) (16.8%) (14.8%) - - Ordinary income % (Ratio) (20.9%) (15.6%) - - Net income % (Ratio) (14.7%) (11.5%) - - EBITDA % (Ratio) (26.8%) (24.9%) - - Average rate ( /US$) ( ) ( ) P J003A

5 2019/3 1H Factors for Sales Changes(V.S Plan and YOY) Major Factors for Sales Changes in 2019/3 1H vsplan v.s YOY Pos sitive Fact tors Negative Factors 1 Increased sales for auto infotainment area Increased sales for industrial FA area Increased sales for auto power train area Increased sales for office equipment/pos area Increased sales for auto body area Decreased sales of drivers for large LCD panels Weak TV market Decreased sales for smartphones Total above Total (+0.8)(+10.4) P J04A

6 2019/3 1H Comparison of OP(YOY) (Major Factors) Sales Factor Decrease of sales based on forex -1.6 Increased marginal profit from increased sales Variable & Fixed Costs ʻ18/3 1H ʻ19/3 1H Difference Decrease of variable & fixed costs based on forex +1.0 Increase of depreciation costs Increase of manufacturing costs (except depreciation costs) -1.3 Increase of SG&A (except depreciation costs) Total +5.6 P J05A

7 2019/3 Revised plan (V.S Initial plan and YOY) 19/3 Revised plan 19/3 Initial plan V.S Initial plan YOY Net sales ±0.0% +5.8% Operating income % +8.8% (Ratio) (14.8%) (13.8%) - - Ordinary income % +29.1% (Ratio) (16.7%) (14.5%) - - Net income % +34.2% (Ratio) (11.9%) (10.5%) - - EBITDA % +8.6% (Ratio) (26.0%) (25.6%) - - Average rate ( /US$) ( ) 04) ( ) 00) 2H Plan rate Initial: 105 Change to 110 P J006A

8 2019/3 Factors for Sales Changes(V.S Initial plan and YOY) Major Factors for Sales Changes in 19/3 V.S Initial plan YOY Pos sitive Fac tors Negative Factors 1 Increased sales for auto infotainment area Increased sales for auto power train area Increased sales for industrial FA area Increased sales for auto body area Increased sales for office equipment/pos area Weak TV market Decreased sales for smartphones Decreased sales of drivers for large LCD panels Total above (0.0) (+22.9) P J07A

9 2019/3 Comparison of OP(YOY) (Major Factors) Sales Factor ʻ18/3 ʻ19/3 Revised plan Difference Decrease of sales based on forex Increased marginal profit from increased sales Variable & Fixed Costs Factor Decrease of variable & fixed costs based on forex +1.2 Increase of depreciation costs Increase of manufacturing costs (except depreciation costs) Increase of SG&A (except depreciation costs) Total +5.0 P J08A

10 ROHM`s Strategy Focusing Markets Auto market Focusing Products Power SiC / Gate driver/ IPM Industrial market Analog Power IC/Driver IC Overseas market Standard Products General-purpose IC/ Discrete semiconductors Enhancing Production Aiming to establish production system that can deal with long-term stable supply and demand fluctuation P J09A

11 ROHM s Strategy Four Year Trends in Sales by Market (Half year trend) 2, , , , % -9% -2% % -15% -16% -6% % +13% +23% Boxes show YOY changes % % % % +5% +5% % % Japanese digital home appliances Other Japanese consumers Overseas consumers Industrial Auto /3 1H 17/3 1H 18/3 1H 19/3 1H Average rate ( /US$) ( ) ( ) ( ) ( ) P J10A

12 ROHM s Strategy Four Year Trends in Sales by Market (Annually) 4, , % % Boxes show YOY changes +6% Japanese digital home appliances 3, % -12% Other % Japanese 3, consumers % 2, % Overseas consumers +7% 2, % % Industrial 1, % % 1, % % Auto % % % 0 Average rate ( /US$) ʻ16/3 ( ) ʻ17/3 ( ) ʻ18/3 ( ) ʻ19/3 Plan ( ) P J011A

13 ROHM s Strategy Trend of Sales Composition Ratio by Market 100% 80% 36% Japanese digital it home appliances TV, DVD Mobile Phone AD Camera Storage, etc. 7% 22% 6% 22% 60% Other Japanese Consumer 20% Office Equipment Lighting Home Appliance Amusement, etc. 27% 24% 40% 28% Overseas Consumer 20% Industrial 16% 0% 5% 11% Auto 13% 12% 44% 47% 32% 34% '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19F 19/3 Plan P J012A

14 ROHM s Strategy Sales Ratio of Auto / Industrial and Overseas Customers Will reach 50% sales ratio for auto + industrial i markets in 2020/3, which is one year faster than our initial plan Sales ra tio of auto/indu ustrial ov Sales verseas ratio of custome ers Consumer 57% Auto 32% Industrial 11% 43% 44% Consumer 56% Auto 32% Industrial 12% Consumer 53% Auto 34% Industrial 13% 47% 50% Consumer 50% Auto 35% Industrial 15% ( 20/3 ) 17/3 18/3 19/3 20/3 Plan Target Overseas sales for automotive, industrial and household appliance markets are expanding steadily. Aiming to reach 50% mid-term. Overseas 39% Oversea 38% Oversea 37% <Major factors that cause change in sales 19/3> Auto Market Industrial Japanese % Japanese 62% Japanese 63% 17/3 18/3 19/3 Plan Market Household appliances 1.5 LCD panels Japanese -1.6 Oversea P J013A

15 Returns to Shareholders (Transition of free cash flow and shareholder returns) Determined to buyback shares due to the three factors below: 1Plan to reduce crossholding stocks 2Current stock market trend 3Mid-to long term financial outlook No changes to our finance and return to shareholders policies (Aggressive investment for business growth, targeting payout ratio of 30% or more, no dividend cut as much as possible, etc.) Free cash flow Divid end 14.0 Share buyback Retired in May Ordinary dividend Payout ratio 52% Payout ratio 68% Payout ratio 32% Special dividend 15/3 16/3 17/3 18/3 19/3(Plan) Dividend increase 150 Special dividend 110 Interim 50 Interim 120 ( ) ( ) Year-end 80 Year-end 120 Share buyback Dividend increase 20 Plan P J014A

16 Note Regarding Future Forecasts The forecast statements in this report are based on information currently available and deemed by ROHM Group as reasonable, and therefore, are not intended to guarantee to be achieved by ROHM Group, and actual results may differ materially by various factors. ROHM Group does not bear responsibility to update and disclose any future forecasts in this report. Also, since the purpose of this report is to provide an outline of business performance, many figures are shown in unit of a billion yen, therefore, totals and differences of figures may appear inaccurate. Please refer to our Financial i Report for detailed figures. P. 15

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