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Presentation materials for financial results6963ROHM COMPANY LIMITEDElectrical Equipment and Precision Instruments

FY2025 Full-Year Results Briefing

In FY2025, revenue increased, and operating profit turned positive from a loss in the previous fiscal year. However, net income was a substantial loss due to impairment losses, mainly in the SiC business. For FY2026, the company plans revenue of ¥510.0 billion, operating profit of ¥30.0 billion and net income of ¥29.0 billion.

Worth reading
73In focus
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Direction
Mixed performance
Direction inferred from the company’s description.
Scale
509
¥100 million (underlying increase in operating profit)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFY2025 full year13 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales4,811 Hundreds of millions of yen+7.3%
Operating profit108 Hundreds of millions of yen
Net income-1,584 Hundreds of millions of yen-32.9%
Operating profit margin
Rate2.3 %
Full-year earnings forecast
Net Sales
5,100 Hundreds of millions of yen
Operating profit
300 Hundreds of millions of yen
Net income
290 Hundreds of millions of yen
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Underlying increase excluding sales growth and foreign exchange effects+¥35.6 billion
  • Materials costs-¥26.8 billion
  • Inventory impact+¥15.9 billion
  • Labor Costs-¥1.4 billion
  • Depreciation and Amortization+¥21.1 billion
  • Expenses-¥600 million
  • Research and development costs+¥10.6 billion
  • Other SG&A expenses-¥0.7 billion
  • Underlying increase in operating profit+¥50.9 billion
  • Impairment Losses-¥163.2 billion
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Average exchange rate assumed for FY26¥153.53 /US$
  • Sales growth rate in the automotive market5.6 %
  • Sales growth rate in the industrial equipment market5 %
  • Sales growth rate in the consumer and other markets6.8 %
New initiatives
  • Begin due diligence toward integration with the semiconductor business of Toshiba Electronic Devices & Storage
  • Discussions on integration with Mitsubishi Electric's Power Devices business
  • Reorganization of production sites, withdrawal from unprofitable products and price increases, and a switch from gold wire to copper wire
  • Begin volume shipments of 8-inch fifth-generation SiC MOSFETs
  • Expand adoption of products for AI servers and develop new products
  • Introduce a new pricing system
Key KPIsA metric the company considers important as a management benchmark.
  • Overseas revenue ratio47.6 %
    Year on year against the same period last year-0.1 percentage points
  • SiC business sales growth rate14 %
    Year on year against the same period last yearFY2025 actual results
  • SiC device and module business sales growth rate41 %
    Year on year against the same period last yearFY2025 actual results
  • Sales to the server market170 Hundreds of millions of yen
  • Main-engine inverter orders won: China
    Year on year against the same period last year▲4%
  • Main-engine inverter orders won: Japan and South Korea
    Year on year against the same period last year+472%
  • Main-engine inverter orders won: Europe and the United States
    Year on year against the same period last year+122%
Segment results
  • LSI
    Sales2,183 Hundreds of millions of yen (YoY +7.1%)
    Profit245 Hundreds of millions of yen
  • Semiconductor devices
    Sales2,052 Hundreds of millions of yen (YoY +9.7%)
    Profit-227 Hundreds of millions of yen
  • Modules
    Sales315 Hundreds of millions of yen (YoY -3.0%)
    Profit35 Hundreds of millions of yen (YoY +30.9%)
  • Other
    Sales259 Hundreds of millions of yen (YoY +3.5%)
    Profit41 Hundreds of millions of yen (YoY +62.6%)
Medium-term management plan targets
  • Net sales
    Target value¥500 billion or more
    Target fiscal yearFY2028
  • Operating margin
    Target value20% or higher
    Target fiscal yearFY2028
  • ROE
    Target value9% or more
    Target fiscal yearFY2028
Financial targets
  • ROE
    Target value9% or more
    Target fiscal yearFY2028
  • D/E ratio
    Target value0.5
  • D/E ratio ceiling
    Target valueLess than 0.7
Market Size / Share
The materials include market forecasts for BEV production, a 41% CAGR in data-center capital investment from FY21 to FY26, and a 48% CAGR in demand for power devices for AI servers from FY25 to FY30. The company explained that its share of the Chinese market declined due to aggressive pricing by Chinese SiC device manufacturers.
Number of stores and locations
As part of the reorganization of production sites, front-end production sites will be reduced from 9 to 8. The transfer agreement for the Dalian plant has been completed, while production at the headquarters and Kasaoka is scheduled to end. The usual number of stores/sites opened or closed during the period is Not disclosed.
Capital expenditures
¥1,500 100 million three-year cumulative plan for FY26-FY28
Annual Dividend
Annual¥50 per share
Interim¥25 per share
End of period¥25 per share
Payout ratio
Rate67 %
Total payout ratio67%
Acquisition of treasury shares
When returns are realized on the LP investment in Toshiba, the company plans to provide additional shareholder returns, including share repurchases. The amount, number of shares and period for the repurchase program are Not disclosed.
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredFY2025 full year
Net Sales4,811 Hundreds of millions of yen (YoY +7.3%)
Operating profit108 Hundreds of millions of yen
Net income-1,584 Hundreds of millions of yen (YoY -32.9%)
Operating profit marginRate 2.3 % / Year-on-year change (points) Not disclosed
Full-year earnings forecastNet Sales 5,100 Hundreds of millions of yen / Operating profit 300 Hundreds of millions of yen / Net income 290 Hundreds of millions of yen
Segment resultsSegment LSI / Sales 2,183 Hundreds of millions of yen (YoY +7.1%) / Profit 245 Hundreds of millions of yen, Segment Semiconductor devices / Sales 2,052 Hundreds of millions of yen (YoY +9.7%) / Profit -227 Hundreds of millions of yen, Segment Modules / Sales 315 Hundreds of millions of yen (YoY -3.0%) / Profit 35 Hundreds of millions of yen (YoY +30.9%), Segment Other / Sales 259 Hundreds of millions of yen (YoY +3.5%) / Profit 41 Hundreds of millions of yen (YoY +62.6%)
Breakdown of Factors Affecting the ChangeFactors Underlying increase excluding sales growth and foreign exchange effects / Amount +¥35.6 billion, Factors Materials costs / Amount -¥26.8 billion, Factors Inventory impact / Amount +¥15.9 billion, Factors Labor Costs / Amount -¥1.4 billion, Factors Depreciation and Amortization / Amount +¥21.1 billion, Factors Expenses / Amount -¥600 million, Factors Research and development costs / Amount +¥10.6 billion, Factors Other SG&A expenses / Amount -¥0.7 billion, Factors Underlying increase in operating profit / Amount +¥50.9 billion, Factors Impairment Losses / Amount -¥163.2 billion
Key KPIsIndicator name Overseas revenue ratio / Value 47.6 % / Year on year against the same period last year -0.1 percentage points, Indicator name SiC business sales growth rate / Value 14 % / Year on year against the same period last year FY2025 actual results, Indicator name SiC device and module business sales growth rate / Value 41 % / Year on year against the same period last year FY2025 actual results, Indicator name Sales to the server market / Value 170 Hundreds of millions of yen / Year on year against the same period last year Not disclosed, Indicator name Main-engine inverter orders won: China / Value Not disclosed / Year on year against the same period last year ▲4%, Indicator name Main-engine inverter orders won: Japan and South Korea / Value Not disclosed / Year on year against the same period last year +472%, Indicator name Main-engine inverter orders won: Europe and the United States / Value Not disclosed / Year on year against the same period last year +122%
Number of stores and locationsAs part of the reorganization of production sites, front-end production sites will be reduced from 9 to 8. The transfer agreement for the Dalian plant has been completed, while production at the headquarters and Kasaoka is scheduled to end. The usual number of stores/sites opened or closed during the period is Not disclosed.
Assumptions Underlying the Business OutlookItem Average exchange rate assumed for FY26 / Value ¥153.53 /US$, Item Sales growth rate in the automotive market / Value 5.6 %, Item Sales growth rate in the industrial equipment market / Value 5 %, Item Sales growth rate in the consumer and other markets / Value 6.8 %
Medium-term management plan targetsItem Net sales / Target value ¥500 billion or more / Target fiscal year FY2028, Item Operating margin / Target value 20% or higher / Target fiscal year FY2028, Item ROE / Target value 9% or more / Target fiscal year FY2028
Financial targetsIndicator ROE / Target value 9% or more / Target fiscal year FY2028, Indicator D/E ratio / Target value 0.5 times, Indicator D/E ratio ceiling / Target value Less than 0.7
Annual DividendAnnual ¥50 per share / Interim ¥25 per share / End of period ¥25 per share
Payout ratioRate 67 % / Total payout ratio 67%
Acquisition of treasury sharesWhen returns are realized on the LP investment in Toshiba, the company plans to provide additional shareholder returns, including share repurchases. The amount, number of shares and period for the repurchase program are Not disclosed.
Capital expenditures¥1,500 100 million (three-year cumulative plan for FY26-FY28)
Market Size / ShareThe materials include market forecasts for BEV production, a 41% CAGR in data-center capital investment from FY21 to FY26, and a 48% CAGR in demand for power devices for AI servers from FY25 to FY30. The company explained that its share of the Chinese market declined due to aggressive pricing by Chinese SiC device manufacturers.
New initiativesBegin due diligence toward integration with the semiconductor business of Toshiba Electronic Devices & Storage, Discussions on integration with Mitsubishi Electric's Power Devices business, Reorganization of production sites, withdrawal from unprofitable products and price increases, and a switch from gold wire to copper wire, Begin volume shipments of 8-inch fifth-generation SiC MOSFETs, Expand adoption of products for AI servers and develop new products, Introduce a new pricing system
Items this document does not state (11)
Ordinary incomeGross Profit MarginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastSelf-assessment against the planUnit price and quantity metricsNumber of employeesRisk amount incorporated into the outlookOrders received and order backlogKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Operating profit improved due to higher sales volumes, lower depreciation and R&D expenses in the SiC business, and fixed-cost reductions. On the other hand, higher gold prices increased material costs, while quality-assurance costs related to SiC devices and ¥163.2 billion in impairment losses on fixed assets, mainly in the SiC business, weighed on profit.

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FY2025 Full-Year Results Briefing | ROHM COMPANY LIMITED (6963) timely disclosure | Komori