ROHM Formulates Medium-Term Management Plan “MOVING FORWARD to 2025”

Willich-Münchheide, Germany, June 02, 2021 – ROHM Co., Ltd. (Head Office: Kyoto City) has announced the formulation of its Medium-Term Management Plan ‘MOVING FORWARD to 2025’ in order to accelerate social contribution through business activities based on its Company Mission and Management Vision.

1. “Management Vision”
Since its founding, ROHM has contributed to society through its products. In order to clarify its mission in the new social infrastructure, ROHM formulated the Management Vision recently.

We focus on power and analog solutions and solve social problems by contributing to our customers’ needs for “energy saving” and “downsizing” of their products.

Based on its “Company Mission” and “Management Vision”, ROHM’s product development, production, and sales divisions will work together to further develop matching technologies of power and analog. ROHM believes sales amounts equate to the amount of a company’s contribution to society. Therefore, ROHM aims to realize a sustainable society through significant sales growth towards 2030.

2. Medium-Term Management Plan “MOVING FORWARD to 2025”
This Medium-Term Management Plan is a five-year plan to build an even stronger management foundation with a view to achieving a strong growth in automotive segments and markets worldwide over the next ten years in order to realize our Management Vision. This way, ROHM aims to reach a goal of 470 billion yen net sales (3.5 billion Euros) by March 2026.
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3. Growth Initiatives
In addition to significantly increasing sales in the business fields of power devices and automotive ICs, we aim to add more value to our products and transform our business in order to further strengthen the profitability of general-purpose devices and ICs for consumer devices. Thus, we aim to establish new growing businesses for further future growth.

(1) Major Growth Strategies

• – ICs
• Increase presence in automotive markets outside of Japan by strengthening products for electric vehicles. Maintain consumer sales with downsized/high efficiency products.
• – Discrete Semiconductor Devices
• Target 30% of market share using technological capability and supply responsiveness.
• (General-Purpose) Accelerate added value through downsizing etc. and maintain top share and high profitability.
• – Modules

Focus on sensing devices for security (authentication) and self-driving support modules.

(2) Foundation Supporting Our Growth Strategy

<Sales and Sales Expansion Structures to Grow Sales Outside of Japan>

• Establish a development structure for world-class products through high-quality product planning – supported by Product Marketing Engineers with a thorough understanding of customer issues.
• Accurately respond to customer needs by strengthening cooperation between sales and specialized organizations that propose solutions and provide technical support.
• Reassign Product Marketing Engineers that are familiar with advanced LSI technologies and with authority to develop new products

<Manufacturing Reform>

• Promote productivity improvement and automation of assembly process (Expand flexible line)
• Encourage innovations in manufacturing to achieve full automation and do not create defects with ROHM Group’s technological capabilities.

4. ESG (Environment, Social, Governance) Initiatives

(1) Environmental Vision 2050

• Aim to achieve zero greenhouse gases and zero emissions based on the three themes of “climate change”, “resource recycling”, and “coexistence with nature”

(2) Develop Human Resources and Reform Governance as the Driving Force for Growth

• Create an organizational structure that enables diverse human resources to create innovation, and continue to invest in human resource development.

(3) Establish a Supply Chain that Fulfills Social Responsibility

• Establish a system for continuous product supply to customers by strengthening cooperation with suppliers and maintaining a sound supply chain.

5. Capital Policy

• Reduce cash on hand gradually over five years to a level of around 50% of annual sales in FY 2025
• Make 400 billion Yen (3 billion Euros) in investment for growth and proactively provide shareholder returns over five years.