ROHM : (Delayed) ROHM Integrated Report 2021

Electronics for the Future

					ROHM
https://www.rohm.com	Integrated Report 2021

Note : This report is a translation of Japanese integrated report. 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.

64C7313E 11.2021 ©2021 ROHM Co., LTD

CONTENTS

Chapter 1Creating Value

ROHM's Vision: High Quality and
Innovation	2
The Cover Story: Toward sustainable
growth	4
At a Glance	6
History of Innovation	8
ROHM's Value Creation Process	10
How We Create Value
(Our Business Model Explained)	12
Perception of External Environment
and Risks and Opportunities	14
ROHM's Materiality	16
Financial and Non-Financial Highlights	18

Chapter 3Supporting the Future

Innovation	34
Environment	36
Human Resources	38
Supply Chain and BCP	40
Corporate Governance	42
List of Officers	48
Message from a Newly Appointed
Member of the Board (Outside)	49
Compliance	50
Risk Management	51

Data Section

Eleven-Year Financial and

Relationship with other reports

Value Creation Story

ROHM

Integrated Report

Non-financial informationFinancial information

V Sustainability Website	O ESG Data	O Securities Report/Quarterly	O Reports for Shareholders
O ROHM Group's Sustainability	O Index: Guideline Cross-refer-	Reports (In Japanese only)	(Reports and Interim Reports)
O ROHM's CSV	ence Tables	O Materials for Financial Results	O ROHM Website: "Investor
O Environmental Management	V Corporate Governance Report	Briefing	Relations"
O ROHM Group Corporate Profile
O Human Capital Management
			O FACT BOOK
O Procurement Management
O Business Foundation				O Financial Statements
O Social Contribution				(In English only)

Comprehensiveness

Publications

Chapter 2Creating the Future

Message from the President	20
Medium-Term Management Plan
Moving Forward to 2025	24
Outline of the Medium-Term Management Plan	24
Growth Strategy	26
Foundation Supporting Our Growth Strategy	28
Financial Strategy	30
Initiatives to ESG	32

Non-Financial Summary	52
Financial Statements	54
Consolidated Balance Sheet	54
Consolidated Statement of Income and
Consolidated Statement of Comprehensive
Income	56
Consolidated Statement of Cash Flows	57
Glossary	58
Global Network	60
Company Information/Stock
Information	62
IR FAQ	63

ROHM Integrated Report

ROHM Group Corporate Profile

FACT BOOK

Securities Report/Quarterly Reports (In Japanese only)

Materials for Financial Results Briefing

Corporate Governance Report

We compile and publish financial and non-financial information of particular importance that directly relates to the enhancement of corporate value.

https://www.rohm.com/investor-relations/library/rohm-group-integrated-report

We provide a compact summary of quality initiatives and the focus areas for products and technology.

https://www.rohm.com/investor-relations/library/rohm-group-report

We prepare a collection of materials for investors and shareholders, summarizing facts about management and financial position.

https://www.rohm.com/investor-relations/library/factbook

We provide a variety of information, including an overview of business, status of facilities, and financial position.

https://www.rohm.co.jp/investor-relations/library/annual-interim-securities-business-report

We publish the details announced at financial results briefings and explanatory materials on the Medium-Term Management Plan.

https://www.rohm.com/investor-relations/library/materials-for-financial-results-briefing

We submit a report to the Tokyo Stock Exchange describing our basic approach to corporate governance and the status of the system.

https://www.rohm.com/investor-relations/library/corporate-governance

Editorial Policy

ROHM's Company Mission is to provide high-quality products that meet our stakeholders' expecta- tions, contributing to the advancement and progress of culture as well as social development. Our aim in this ROHM Integrated Report 2021 is to provide stakeholders, primarily customers, share-

Reports for Shareholders (In Japanese only)

We send shareholders a semi-annual summary of our business and efforts to enhance corporate value.

https://www.rohm.co.jp/investor-relations/library/annual-interim-business-report

holders, investors, suppliers, and employees, with a better understanding of our efforts to achieve ROHM's Company Mission. With the focus on our Medium-Term Management Plan "MOVING FOR-

Corporate Website

WARD to 2025," which looks ahead to 2030, this report introduces our business, financial and non-financial information, and details of our ESG initiatives, which form the foundation for value cre- ation, as well as CSR and other corporate activities.

Reporting Period Fiscal year 2020 (April 1, 2020 to March 31, 2021)

*Some information from April 2021 and after is included.

Data published October 2021

Guidelines used for reference

IIRC Framework

* In June 2021, IIRC was reorganized into the Value Reporting Foundation (VRF).

Investor Relations

ROHM Group's Sustainability

ROHM Group Major ESG Data

The website gathers investor relations information, providing an overview of our business performance and stock information.

https://www.rohm.com/investor-relations

We post CSR information, such as CSV initiatives, environmental management, human capital management, and social contribution activities.

https://csr.rohm.com/

We post data related to the environment, society, and governance.

https://csr.rohm.com/esg/

ROHM Integrated Report 2021 1

ROHM's Vision

High Quality and Innovation

Semiconductors and electronic components are said to be the "rice of the industry" (meaning "indispensable"). For example, one smartphone contains several hundred electronic parts. As electronic products become indispensable throughout the world, the number of electronic parts they contain has become astronomical. With ROHM's Company Mission of Quality First, we are supporting the foundations for people's safety and everyday living, such as automobiles and social infrastructure.

Chapter 1Creating Value

The company name of ROHM, a semiconductor manufacturer,

combines "R" the first letter of our original main product,

resistors, with the unit for resistance "ohm." The "R" now also

stands for Reliability. Quality First is ROHM's corporate policy.

Company Mission

Quality is our top priority at all times. Our objective is to contribute to the advancement and progress of culture through a consistent supply, under all circumstances, of high quality products in large volumes to the global market.

Statement

Electronics for the Future

ROHM will continue to support the development of society and the enrichment of people's lives into the future by solving a variety of social issues with our electronics technology.

Management Vision

We focus on power and analog solutions and solve social problems by contributing to our customers' needs for energy saving and miniaturization of their products.

2 ROHM Co., Ltd.

ROHM Integrated Report 2021 3

p. 24-

p. 36

The Cover Story

Toward sustainable growth

Chapter 1Creating Value

	April		ESG	Created the ROHM Group's Environmental Vision 2050
	2021

ROHM is implementing a number of initiatives aimed toward the sustainable development of society.

	April		Energy saving and	Establishment of Nano Cap	TM	, a power supply technology
	2020		miniaturization
		that can significantly reduce capacitance
ROHM have established Nano Cap, a power supply tech-	output end, thus drastically reducing the circuit load. In

In April 2021, ROHM created the Environmental Vision 2050, which sets forth what ROHM should look like in 2050 upon the attainment of a sustainable society.

Semiconductors, which are ROHM's key product, will play a major role in attaining a decarbonized society by improving the efficiency of motors and power supplies, which are said to account for most of the world's electricity

consumption. Besides contributing to energy savings and miniaturization for our customers, we are also putting together a business framework that gives consideration to the environment through such initiatives as converting to 100% renewable energy at our main business offices and in the primary production process for SiC wafer manufacturing. Details

nology for various types of power supply circuits, primarily	the future, we plan to develop products that have Nano
for automobiles and industrial equipment, whereby stable	Cap built into other analog ICs, so that we can utilize
control can be achieved even for externally installed	resources effectively and reduce the burden on the envi-
capacitance as small as a nanofarad (nF). This technology	ronment through fewer condensers and less capacitance.

	May		Growth strategy	Announced the first Medium-Term Management Plan and
	2021
			invest ¥400 billion for growth over five years

does not require a condenser on the linear regulator
	June		Co-creating value	ROHM x Vitesco Technologies (Germany)
	2020
In June 2020, ROHM embarked on a partnership in power	Vitesco Technologies
electronics for electric vehicles (EV) with Vitesco	A global manufacturer of leading-edge power train technologies for sus-

ROHM announced its first Medium-Term Management Plan in May 2021. The plan calls for investment of ¥400 billion for growth over the five-year period ending March 31,

2026. Besides achieving growth by focusing on power and analog and contributing to energy savings and miniaturization for our customers, we are also taking steps toward becoming a major global player by embarking on a five- year growth trajectory based on the two growth pillars of

Medium-Term Management Plan

FY2021-FY2025

Achieve growth in automotive segments and market outside of Japan and build a foundation for further growth

Record-high	Accelerating
sales within	growth
2 years	Net sales

FY2030

Becoming a major global player

Technologies, which is a leading supplier in the area of	tainable automobiles. A member of the Continental Group, Vitesco helps to
automobile electrification. Using SiC power devices will	achieve highly efficient and affordable automobiles that are environmentally
enable us to extend the driving distance of EV and reduce	friendly by providing smart system solutions and components for electric,
the size of their batteries.		hybrid, and internal combustion vehicles.
	December		Energy saving and	New 5th Gen P-channel MOSFETs Deliver Class-Leading
	2020		miniaturization
		Low ON Resistance

involvement in the automotive segment and expansion of sales outside Japan so that we will build a stronger foundation for growth in FY2025 and beyond. Details

		¥470.0 billion
	Net sales
	¥359.8 billion
Operating margin: 10.7%	Operating margin: 17%
ROE:	5.0%	ROE:	8%
	'21/3 Actual	'26/3 Plan	'31/3 Vision

We have a lineup of 24 products of 24V input, -40V/-60V withstand voltage P-channel MOSFETs optimized for facto-

Improves ON Resistance vs Conventional P-channel MOSFETs

June

Energy saving

Contributing to the dramatic miniaturization, high reliability,

ry automation, robotics, and air conditioning systems. With their long track record, ROHM's Pch MOSFETs can achieve industry-leading low ON-resistance per area unit, as they

	-40V product
=10V)	62%
lower

	-60V product
=10V)	52%
lower

2021		and electricity-saving features of industrial equipment with
		AC/DC converter ICs with a built-inSiC-MOSFET

use a new precision process that is fifth generation. The ON resistance in a -40V withstand voltage product is 62% less than existing products and that in a -60V withstand voltage product is 52% less than conventional products, thus enabling less energy consumption and miniaturization of

RonA(VGS
	Conventional	New products:
	products	Fifth generation

RonA(VGS
	Conventional	New products:
	products	Fifth generation

We have developed the best AC/DC converter ICs with a built-inSiC-MOSFET for industrial equipment that handles large volumes of electricity, such as general-purpose inverters, AC servos, industrial-grade air conditioners, and streetlights.

mounting package. This enables automatic installation on the circuit board and making it into a single package allows for a drastic reduction in the number of compo- nents. Besides enabling a vast reduction in mounting costs at the plant and a lower risk of parts failure, we can

the product and contributing to the long-term stable operation of industrial equipment that needs to be of high quality.

Low ON resistance contributes to greater miniaturization and energy savings of applications

Our new products incorporate SiC-MOSFETs that boast

both the greatest electricity-saving properties and control

circuits optimized for industrial equipment's auxiliary

achieve up to 5% higher electrical efficiency, which contributes to better reliability, more electricity savings, and a dramatic miniaturization of industrial equipment.

December		Growth strategy	Completed new building at ROHM Apollo's Chikugo (Fukuoka, Japan)
2020			plant and increased production capacity of SiC power devices

power sources in the industry's first compact-surface

July	Growth strategy	Established a new ¥5 billion budget for investment in start-ups

Demand for power devices that use SiC is growing rapidly

2021

as energy savings and miniaturization are being sought. The ROHM Group, which includes SiCrystal, a major supplier of SiC wafers, has constructed a new building at the

One initiative for speeding up the creation of a new business model is the launch of corporate venture capital (CVC) activities geared toward startup companies and

Key investment targets

Chikugo plant of ROHM Apollo Co., Ltd., in order to obtain a more stable supply of SiC power devices. The new structure was completed in December 2020 and is ROHM's first new building in Japan in 12 years. Compared with conventional facilities, the new building generates 20% (about 7,000 tons) less CO2 emissions and uses 100% renewable energy. We are thus helping to attain a decarbonized society by providing customers with products that put less of a burden on the environment.

Structure: Five floors above ground; Completion: December 2020

Scheduled operation: 2022

establishment of a new investment budget totaling ¥5 billion.

• These CVC initiatives, along with our current alliances and tie-ups with venture firms and joint research projects with universities, will further accelerate our open innova- tion programs that fuse technology and knowledge from inside and outside the Company, as we are aiming to cre- ate new businesses that will become the seeds for our growth 10 years from now.

Business enhancement

Business field expansion

Development of new fields

Semiconductor materials, semiconductor production technology, semiconductor peripheral technology (con- nectors, packages, etc.), associated algorithms, etc.

Start-ups that provide new products, technologies, and services in the automotive, industrial equipment, and other key markets for ROHM

Environmental business (decarbonization, GHG reduction, etc.) and others

4 ROHM Co., Ltd.

ROHM Integrated Report 2021 5

At a Glance

(Fiscal year ended March 31, 2021)

Main Products	Sales by Segment	Consolidated Sales	Operating Income	Operating Margin
		359.8 billion yen	38.4 billion yen	10.7%

	PMICs
	(system power supply)
ICs	47%	168.1 billion yen		9.4%
YOY
	High-Voltage Fan	-1.4%	15.7 billion yen
	Motor Drivers
			YOY
			+25.2%
	Isolated
Devices	Gate Drivers
MOSFET
Semiconductor
Lasers	142.3 billion yen
	SiC-MOSFET
	40%	YOY	21.0 billion yen	14.8%
		+2.4%
	Multi-Beam	YOY
Discrete			+102.3%
3-Color Chip LEDs
	Compact High-intensity

Chapter 1Creating Value

Sales by Application	Sales by Region
Computers and OA	Europe

11%		6%
Telecommunications	Automotive		Japan
36%	Americas	36%
8%
	5%
Consumer	Industrial		Asia
32%	13%		53%

Principal Use

Automotive		Industrial		Consumer		Telecommunications
• Air-conditioner elec-		• Base stations		• Air conditioners		• Smartphones
tric compressors		• Industrial motors		• Vacuum cleaners		• Wearable devices
• Power control units		• Automated guided		• Washing machines
• On-board chargers		vehicles
		• Refrigerators		Computers and OA
• Autonomous driving		• Smart meters		• Induction heating		• PCs
units
	• Solar panels		cookers
				• Office equipment
• LED lights
	• Charging stations		• Gaming equipment
				• Data storage
• Instrument clusters

Modules	Ultra-High Speed		29.2 billion yen
Thermal Printheads for	8%	2.1 billion yen	7.3%
industrial equipment	YOY
		-12.2%	YOY
		-38.6%
	Wireless Charger
	Modules
	High-Power Shunt
	Resistors
Others		6%	20.1 billion yen	1.8 billion yen	9.1%
PSR series	YOY
		+0.2%	YOY
		-5.2%
	GMR series

*Sales are to external customers.

ROHM's Key Technologies

Power

Analog

SiC Power Devices (SiC-MOSFETs,SiC-SBDs) and Si Power Devices (IGBTs, Si-MOSFETs, SBDs, FRDs)

Power devices (power semiconductors) are discrete semiconductor devices used in electrical energy transformation and supply. They need to withstand high voltages and handle large currents. In 2010, ROHM was the first company in the world to begin mass production of SiC-MOSFETs, enabling further reductions in power loss.

Power Management ICs (PMICs), Driver ICs, Op-amps, and Comparators

ICs are made up of digital and analog technologies. Analog technology controls continuously changing information and is widely adopted in power management systems that are used in huge quantities around the world. ROHM has positioned analog as a key technology and has accumulated analog technology over a long time.

6 ROHM Co., Ltd.

ROHM Integrated Report 2021 7