HORIBA, Ltd.
Nomura Investment Forum 2017

November 29, 2017
Hotel Chinzanso, Tokyo© 2017 HORIBA, Ltd. All rights reserved.

1

Contents
 2017 Results & Forecast
 Business Segment Outline
 Shareholder Return Other Topics
 Financial Data Corporate Profile[Disclaimer]
Plans and forecasts in this presentation that do not constitute historical facts are predictions concerning future business results. Thesestatements are based on judgments made in accordance with information available at the present time.
All rights reserved. Reproduction in whole or part of this presentation without permission is prohibited.
Copies of this presentation and additional information are available at HORIBA’s website: http://www.horiba.com© 2017 HORIBA, Ltd. All rights reserved.

2

Contents
 2017 Results & Forecast
 Business Segment Outline
 Shareholder Return Other Topics
 Financial Data Corporate Profile© 2017 HORIBA, Ltd. All rights reserved.

3

Review of 2017
 Start of the Trump administration in US UK’s announcement to leave EU-> General election in UK
External Presidential election in France
Events-> Japan-EU Economic Partnership Agreement
 Booming semiconductor market
 Autonomous driving, EV, Emission regulation
 New/expanded facilities (US, UK and South Korea)
Internal Renewed a record-high share price.
EventsMarket cap exceeded 330bn yen
 Workstyle innovation© 2017 HORIBA, Ltd. All rights reserved.

4

2017 Jan.-Sept. Results and Full year forecast: Record-highs (Billions of Yen)

：Renewed record-highs in sales and profit due tobooming Auto. & Semi. segments.
：Upward revision of sales, profit, and dividends.

Jan.-Sept. Results
Full year forecast

Jan.-Sept.
Results
2016

Sales
O.P.
Ordinary profit
Net Income attributableto Owners of Parent
Dividends per share(JPY)

USD/JPY
EUR/JPY© 2017 HORIBA, Ltd. All rights reserved.

2017

Full year
Results
20162017 Forecast
Forecast Forecast
as of
as of
Forecast
Feb.14Aug.4

116.9 132.2 170.0 177.0 187.0
10.6 14.6 18.4 20.0 22.0
10.3 14.3 18.2 19.3 21.3
7.2 10.7 12.9 13.0 14.5
85
108.57 111.89 108.78
121.06 124.58 120.26

90
110
120

90
110
120

190.0
23.0
22.0
15.0
95
111
127

vs
Forecast
as of Aug.4

+3.0
+1.0
+0.7
+0.5
+5
+1
+7
5

Sales, O.P. (Jan.-Sept. Results and Full year forecast): Record-highs(After 2011) (Billions of Yen)
2016

2017

Jan.-Sept.

Jan.-Sept.

Results

Resultsvs 2016

Results

Auto

39.4

45.3

+5.9

62.2

P&E

11.8

12.0

+0.2

16.7

Medical

19.7

18.5

- 1.2

26.5

【Jan.-Sept. Results】
vs◆Auto
Forecast
Forecast
vs 2016
Previous
as of Aug.4
Increased sales and profit due
forecast
71.0 +8.7 71.0 No change to tighter emission regulations(EMS) and recovery in capital
17.0 +0.2 18.0 - 1.0 spending by automakers
25.0 - 1.5 25.0 No change (MCT).

Semi

27.7

38.5

+10.8

38.8

51.0

+12.1

48.0

Scientific

18.1

17.7

- 0.3

25.7

26.0

+0.2

25.0

116.9 132.2 +15.3 170.0 190.0 +19.9

187.0

Sales

Total

O.P.

2016

2017

Jan.-Sept.

Jan.-Sept.

2016

2016

2017

2017

2017

◆Semi
+1.0 Increased sales and profit due
to continuous robust capital+3.0 spending by Semi. markers.
+3.0

2017
vs
Forecast
Previous
as of Aug.4
forecast

Results

Resultsvs 2016

Results

Forecast

vs 2016

Auto

0.0

2.2

+2.2

3.5

5.7

+2.1

5.7

No change

P&E

1.1

0.4

- 0.7

1.5

0.6

- 0.9

1.1

- 0.5

Medical

2.2

1.2

- 0.9

2.8

1.7

- 1.1

1.7

No change

Semi

7.1

11.1

+4.0

9.6

14.5

+4.8

13.0

+1.5

Scientific

0.1

-0.4

- 0.5

0.9

0.5

- 0.4

Total

10.6

14.6

+3.9

18.4

23.0

+4.5

© 2017 HORIBA, Ltd. All rights reserved.

【Full year forecast】◆Semi
Upward revision due tobooming market condition.
◆Scientific
Upward revision due to goodsales in China and US.

◆P&E
0.5 No change Downward revision due to+1.0 slow sales in US.
22.0
6

Sales, O.P. (Quarterly Results and Forecast)(Billions of Yen)

Sales

2016
1Q

2Q

3Q

2017
4Q

Full year

1Q

2Q

3Q

4Q
Ful year
Forecast forecast【3Q Results &4Q Forecast】

71.0 ◆Auto

Auto

14.9 13.1 11.2 22.7

62.2

17.3 13.3 14.7

25.6

P&E

4.1

3.6

4.0

4.9

16.7

4.1

3.8

3.9

4.9

Medical

6.9

6.8

5.9

6.7

26.5

6.0

6.2

6.1

6.4

Semi

8.6

9.2

9.8 11.0

38.8

12.2 12.4 13.8

12.4

 Increased sales and17.0
profit due to tighter
regulations in 3Q
25.0
 Continuous booming
51.0
in 4Q

Scientific

6.5

5.8

5.7

25.7

5.8

6.2

8.2

26.0 ◆Semi

45.6 41.6 44.9

57.7

190.0  Increased sales and

Total

O.P.

7.6

41.2 38.7 36.9 53.1 170.0

5.6

2016
1Q

4Q
Ful year
Forecast forecast

3Q

4Q

Full year

1Q

2Q

3Q

Auto

1.1 -0.5 -0.4

3.4

3.5

2.1

0.0

0.1

3.4

5.7

P&E

0.6

0.2

0.2

0.4

1.5

0.1

0.1

0.1

0.1

0.6

Medical

0.8

0.7

0.6

0.5

2.8

0.4

0.3

0.3

0.4

1.7

Semi

2.3

2.1

2.6

2.5

9.6

3.4

3.2

4.3

3.3

14.5

Scientific0.2

0.0 -0.1

0.8

0.9-0.0 -0.3

-0.0

0.9

0.5

Total

5.1

2.6

7.8

18.4

6.1

4.9

8.3

23.0

© 2017 HORIBA, Ltd. All rights reserved.

2Q

2017

2.8

3.5

profit greatly due totentative large
orders in 3Q
 Continuous large
volume of shipment
in 4Q

7

Bookings trend(Billions of Yen)

Record-highs bookings and backlog in 3Q
due to booming Auto. & Semi. segments.

2016
3Q

4Q

Bookings
2017
1Q

2Q

Auto
18.6 22.1 17.3 19.5
P&E
3.6 5.0 3.7 4.5
Medical
5.6 6.6 6.6 6.2
Semi
10.4 11.8 14.4 12.7
Scientific 5.8 8.6 5.1 6.0
Total
44.2 54.3 47.3 49.1

© 2017 HORIBA, Ltd. All rights reserved.

Backlog
2016
2017
3Q

22.2
5.0
6.0
13.1
7.5
54.0

3Q end 4Q end 3Q end

49.5
4.2
3.5
5.0
7.9
70.3

48.9
4.3
3.4
5.8
9.0
71.5

62.7
5.5
3.9
7.6
9.9
89.8

8

Contents
 2017 Results & Forecast
 Business Segment Outline
 Shareholder Return Other Topics
 Financial Data Corporate Profile© 2017 HORIBA, Ltd. All rights reserved.

9Market Overview for the Full-Year 2017
Auto

- Expect steady R&D investment by auto/auto parts manufacturers
due to tighter emission regulations in EU and Japan.
- Active investment trend in global automotive sector.
- Tighter environmental regulations in China

P&E- Business opportunities in water treatment facilities due to capacity
expansion by semiconductor factories

Medical- Japan: Continuing favorable sales to doctors in private practice.
- Overseas: Decline in demand in EU and South America.

Semi- Expect continuous investment by semiconductor manufacturers- High demand for etching equipment thanks to an increase indemand for 3D-NAND

Scientific- Decrease in government budgets for research in developed
countries- Increase in demand for optical components from the private sector© 2017 HORIBA, Ltd. All rights reserved.

10

Auto

Jan.-Sept. Results and Forecast for 2017
(Billions of Yen)
2017 Jan.-Sept. Results
Sales (prior year)2017 Jan.-Sept. Results＋ EMS Sales increase due to tighter emission regulations

EMS

28.0 (25.1)＋ MCT Recovery in capital spending by automakers

MCT

10.1 (7.4)

ITS

1.3 (1.2)ECT

5.8 (5.5)-

ECT Expense increase due to founding MIRA Japan team2017 Full-year Forecast
Sales (prior year)2017 Full-Year Forecast
EMS

44.0 (40.1)

MCT

18.0 (13.2)ITS

2.0 (1.6)ECT

7.0 (7.1)

71.0

71.0

5.7

5.7

＋ EMS Continuous high demand in response to new regulations＋ MCT Sales increase by steady delivery of orders received- ECT Good orders received, to impact earnings from next year
Sales and O.P. (Full-year)

43.2

49.5

4.4

4.2

2012

2013

© 2017 HORIBA, Ltd. All rights reserved.

Sales

55.0

O.P.

65.4

5.8

5.2

2014

2015

62.2
3.5
2016

2017

Previous
Forecast

2017

Revised
Forecast

11

Auto

Action for next-generation emission regulations(Billions of Yen)

EMS : Action for next-generation emission regulations※1

WLTP (Unified emission regulations by the UN)
Start: Sep. 2017 in EU; Oct. 2018 in Japan[Sales/ Backlog]
Backlog

Forecast

Sales

39.8
37.4
33.3

44.0

40.1

*2

RDE Regulation (On-board emission regulation)
Start: Sep. 2017 in EU; 2022 in Japan*1 Worldwide harmonized Light vehicles Test Procedure*2 Real Driving Emission

As of
Sept. end

17.9

20.2

26.9

29.4

42.1

2013

2014

2015

2016

2017

Establishment of Advanced Emissions Test Centre (AETC)
Start: July 5th, 2017
Test centre
Place: HORIBA MIRA Ltd. (UK)Function: Advanced Emission Test Lab.
- In-house real driving testing simulation- Simulation in various temperature
Objective: Business enhancement concerning RDE regulations© 2017 HORIBA, Ltd. All rights reserved.

Testing equipment

12

Auto

Contributing to R&D for EVs andautonomous driving vehicles(Billions of Yen)

MCT Business: Response to the trend to promote EVs
Improve sales and profitability in 2017
HORIBA’s business areas- Recovery in automakers’ capex
Provide solutions, from single systems (i.e., powertrain,- The Turn Key Business expansion** Business model to provide the solution combining EMS
and MCT

E-Motor) to comprehensive systems, incl. vehicle evaluation
E-Motor testing equipment

Electric vehicle testing[Sales/ Backlog]
Backlog

14.5

Sales

16.2

Forecast

19.7
13.2

18.0
As of
Sept. end

12.8

13.3

10.8

15.2

15.2

2013

2014

2015

2016

2017

Expand testing business areas, i.e., battery
control system in HORIBA MIRA

ECT Business: MIRA won bits for the autonomous vehicle project
Rendering of test facility- Won bits for subsidy programs lead by UK government.
- Establish the facility which conduct multi-purpose tests such ascommunication, crash, and vehicle turning.
© 2017 HORIBA, Ltd. All rights reserved.

13

P&E

Jan.-Sept. Results and Forecast for 2017
(Billions of Yen)

2017 Jan.-Sept. Results
Increase in demand for stack gas analyzers: replacement demand in Japan and
VOC-regulation related sales in China＋ Firm demand for water measurement systems in Japan but less-than-expected- sales growth＋2017 Full-Year Forecast＋ Stack gas analyzers

Capture domestic replacement demand＋ VOC regulations in China＋-

Anticipate further demand growthMore inquiries but slow sales in the process measurement equipment business in
N. America

Sales and O.P. (Full-year)

13.7
1.6
2012
© 2017 HORIBA, Ltd. All rights reserved.

14.7
1.2
2013

Sales

O.P.

16.4

16.7

16.7

18.0

17.0

2.0

1.7

1.5

1.1

0.6

2014

2015

2016

2017

Previous
Forecast

2017

Revised
Forecast

14

P&E

Enhancing global business

Invest in the process measurement equipment business : New Houston factory
Start: April 1st, 2017

Houston factory

Analyzer house*

Place: Houston in Texas (US)Function: Production of P&E equipment; Scientific &Medical-related sample tasting
Objective: Business growth through expansion of* Shelter with analyzers and sampling systems. Measurement
equipment for each process is systemized to provide total
production capacity
solutions.

Expand the water quality measurement businessAmmonia Nitrogen Monitor “HC-200NH”

HC-200NH- Launch in 2016 through collaborative
R&D with the Tokyo Bureau of Sewerage- Contributing to less electric consumption
in sewage treatment by continuous monitoring

Expand global business for big sewerage plants© 2017 HORIBA, Ltd. All rights reserved.

Concentration of resources in watermeasurement in HORIBA Advanced
Techno (group company) from Jan. 2017

- Speed up R&D and production
Accelerate product launch- Enhance marketing function
Approach semiconductor
makers for P&E products
15Medical Jan.-Sept. Results and Forecast for 2017
(Billions of Yen)

2017 Jan.-Sept. Result＋＋- Increase in expense in promoting hematology and CRP analyzers in Japan- Sales drop in EU/South America; impacts of French new products in and after 20182017 Full-Year Forecast＋

Intensified competition in hematology and CRP analyzers in Japan- Increase in expense for US FDA approval and sales promotion of new products

Sales and O.P. (Full-year)

26.8

Sales

27.0

O.P.

27.6

26.5

2.5

2.8

2015

2016

22.4
2.4

2.4

2012

2013

© 2017 HORIBA, Ltd. All rights reserved.

1.7
2014

25.0

25.0

1.7

1.7

2017

Previous
Forecast

2017

Revised
Forecast

16

Medical New product launch for business expansion
New inspection system “HELO Solution” in the mid- to high-end market
 Strengths“HELO Solution”- Total solutions including clinical(Launch in 2017)
data management system- Flexibility in layout
 Schedule
Rendering of installed
products in a customer’s- Global launch in the 2Q of 2017lab. in Brazil- Start installation in Brazil, UK and France

New product “Yumizen H550” for developing countries
 Strengths- Small hematology analyzer with autoloader- Stable, high-precision measurement in various
condition
 Sales and production network- Utilize HORIBA’s global network“Yumizen H500”- Local production of reagents near consuming areas (Launch in 2016)© 2017 HORIBA, Ltd. All rights reserved.

New “Yumizen H550”(Launch in 2017)17

Semi Jan.-Sept. Results and Forecast for 2017
(Billions of Yen)

2017 Jan.-Sept. Results

MFC-related topics in Semi. market＋ Record-high sales and OP- Increase in capital spending in Asia
- High demand for etching for 3D-NAND＋ Record-high production volume in Massflow controller (MFC)- Transition of memory in data centers-> Surge in semiconductor- Change in semi. technology(Miniaturization, 3D-NAND, Multi-layered)-> High demand for etching2017 Full-Year Forecast

HORIBA’s strengths＋ Robust capital spending by Semi. makers＋- Continuous high-level production of MFC

Sales and O.P. (Full-year)

17.8
2.2
2012
© 2017 HORIBA, Ltd. All rights reserved.

Sales

24.1

28.9

4.8

6.4

2013

2014

Business portfolio to supply
accurate MFC sustainably

O.P.

35.3

38.8

9.4

9.6

2015

2016

48.0

51.0

13.0

14.5

2017

2017

Previous
Forecast

Revised
Forecast

18

Semi Further enhancing stable supply
Investment in production factory (Aso in Japan; South Korea)
 Expanding Aso factory of HORIBA STEC Co., Ltd.

Expansion area

Investment: App. 2.7bn yen / Completion: Dec. 2017 (Plan)
Objective: Expand production capacity of MFC (1.5 times in floor space) Established a new head office of HORIBA STEC KOREA, Ltd.

Expansion in Aso factory

Start: Apr. 1st, 2017 / Place: Yongin-si (Suburb of Seoul)
Objective: Increase production and engineers, enhance training capability

Trend of Semi. market
Invest controlled by
Semi. makers

Less fluctuating
silicon cycle

Become stable
market growth

HORIBA STEC KOREA’s
new office

Action for quality improvement
 Acquire ISO/IEC 17025* that is related to gas calibration- Kyoto Fukuchiyama Technology Center (HORIBA STEC Co., Ltd.)- Develop measurement system for calibration= Stable supply of higher-precision MFCs

*ISO/IEC 17025; Quality management
system and technology management
for testing and calibration

 R&D of next-generation materials, jointly with Semi. device makers© 2017 HORIBA, Ltd. All rights reserved.

Fukuchiyama Technology
Center (HORIBA STEC)
19

Scientific Jan.-Sept. Results and Forecast for 2017
(Billions of Yen)

2017 Jan.-Sept. Results＋ Sales increase of core components for optical products in US and EU- Sluggish sales for universities in Japan, US, and EU ⇔ ＋ Strong sales in China＋ Increase in R&D expenses for new product launch-2017 Full-Year Forecast＋ Firm sales of core components for optical products- Slow demand from universities in Japan, US, and EU

Diffraction grating- Core components
for optical products- Global top-leveltechnology＋ Develop new market by customized products to meet needs of each customer
Sales and O.P. (Full-year)

20.4

22.9

Sales

25.6
1.2

0.9

0.9

2012

2013

© 2017 HORIBA, Ltd. All rights reserved.

2014

O.P.

26.7

25.7

1.1

0.9

2015

2016

25.0

26.0

0.5

0.5

2017

2017

Previous
Forecast

Revised
Forecast

20

Scientific Supporting to cultivate HORIBA’s technologies“Diffracting grating,” core technology of the French subsidiary Increase in demand for customized grating forhigh-intensity laser
 Increase in demand for optical equipment
including grating increase for SPE* makers*Semiconductor Production Equipment

Customized grating

Optical equipment

HORIBA France S.A.S. (former HORIBA Jobin Yvon S.A.S.)
 Long-established manufacturer of optical instruments with
mass-production technology in grating- Founded in 1819 (200-year anniversary in 2019)
HORIBA France S.A.S.
- Jointed the HORIBA Group in 1997 (20th anniversary from integration) Europe Research Center (France)

Laser particle-size analyzers received the 9th Laser Society Industry Awards
 Award laser products and technologies that contribute todevelopment of the domestic industry- Equipment to irradiate particles with a laser to measure their size
- Utilize for R&D and quality improvement of particles in various
Laser diffraction
fields (i.e., electronic parts, battery, food, abrasives, medicines) particle size analyzer© 2017 HORIBA, Ltd. All rights reserved.

21

Contents
 2017 Results & Forecast
 Business Segment Outline
 Shareholder Return Other Topics
 Financial Data Corporate Profile© 2017 HORIBA, Ltd. All rights reserved.

22

Shareholder return
Basic policy- Dividend payment + Share buyback = 30% of Consolidated net profit to be targeted- Remaining earnings are retained internally for strategic investment (i.e., facilities, M&A)

Dividends per share and Share buybacks
2015 Results 70 yen [Interim 28 yen, Year-end 42 yen] +Share Buyback (0.99bn yen)2016 Results 85 yen [Interim 30 yen, Year-end 55 yen]2017 Forecast 95 yen [Interim 40 yen, Year-end 55 yen] (+5 yen from previous forecast)(Unit : Yen)

Per-share dividend (from 2008 to 2017 Forecast)
85

44

40
13

2008
© 2017 HORIBA, Ltd. All rights reserved.

2009

50

60

67

95

70
An average total return ratioof last 3 years : 28%

17

Renewed record-highs in dividend in 6 years (Forecast)
2010

2011

2012

2013

2014

2015

2016

2017
(Forecast)23

Contents
 2017 Results & Forecast
 Business Segment Outline
 Shareholder Return Other Topics
 Financial Data Corporate Profile© 2017 HORIBA, Ltd. All rights reserved.

24

Change of Representative Directors
At the board meeting on Oct. 24th 2017, change of Company’s Representative
Directors was decided as follows
Name
New title from Jan. 1st 2018
Current title
Atsushi Horiba

Chairman & Group CEO

Chairman, President and CEO

Juichi Saito

Executive Vice Chairman & Group COO

Executive Vice President

Masayuki Adachi

President & COO

Senior Managing Director◆Purpose of the personal change Strengthening group management
 Defining the group management system Further enhancement of HORIBA’s technical anddevelopment capabilities

At the press conferencein Kyoto on Oct. 24th

◆Future role
Horiba : Strengthen governance by further extending andpromoting our corporate culture
Saito: Manage the group as whole and lead concentrate strategies

Adachi : Focus on administrative leadership of HORIBA, Ltd.,
as a global headquarter of the HORIBA Group© 2017 HORIBA, Ltd. All rights reserved.

25

HORIBA Medical and Siemens Healthineers
enter into long-term agreement on Oct. 9th.
◆Background of the agreement
Achieve further expansion in IVD market to address themultidisciplinary requirement though long-term partnership HORIBA ABX S.A.S. (France)Continuous investments have resulted in hematology technology solutions.

 Siemens Healthineers Diagnostics Inc. (US)Provide total healthcare solution including inspection equipment, diagnostic
imaging unit, care system◆Future plan Siemens Healthineers will combine thecomplimentary innovative technology andoffer more application
 HORIBA Medical will continue offering
innovative technology solution throughits Yumizen brand© 2017 HORIBA, Ltd. All rights reserved.

New inspection system
HELO Solution
Launch in 201726

Action for workstyle innovation“Stained Glass Project” initiatives
STEP 12014- Start from promoting women’s
empowerment

STEP 22015- Start “workstyle innovation” workshop- Theme: “Change actions by individuals”

STEP 32016 -“KAERU” Meeting *KAERU” =Going home(from May 2017)- 111 persons (18 teams) join
- Themes: “Efficient operation”“Individual skill-up”- 70 ideas have been registered- “Stained Glass” connects management,
human resources and work front- Make use of the characteristics of each
worksite and organization

Recognized under the 2017 Certified Health and Productivity
Management Organization Recognition Program

Program to award companies engaged in health-conscious management(designed by the METI and operated by the Nippon Kenko Kaigi)
Evaluation
given to
HORIBA© 2017 HORIBA, Ltd. All rights reserved.

Top management’s declaration to promote mental/physical healthInnovative ideas by cross-sectoral projects and teams
27

HORIBA Stained Glass Project
When diverse human resources can shine, HORIBA can become even stronger＜Goals＞
Business

1. Increase the corporate competitiveness of HORIBA through diversity- Turn diversity beyond gender, generation, group, nationality,
form of employment, disability, etc. into power and promote innovation
by encouraging all members to be aware of and challenge mental barriers.

2. Create next-generation leaders and role models for diverse working styles
Human- Support the discovery and creation of best practices andresources
share them inside and outside HORIBA.
3. Increase added value and productivity per hour ofOrganizational organizations and individuals
strength- Increase added value of individuals by radically reforming theirworking styles to allow them to achieve a good work-life balance.

＜Project system＞- Project Owner : Executive Vice President- Advisor : HORIBA’s first female board member- Project Leader : A female manager who proposed the project- Members : A wide variety of human resources from groupcompanies© 2017 HORIBA, Ltd. All rights reserved.

28

Contents
 2017 Results & Forecast
 Business Segment Outline
 Shareholder Return Other Topics
 Financial Data Corporate Profile© 2017 HORIBA, Ltd. All rights reserved.

29

Operating profit analysis ( vs. 2016 )(Millions of Yen)

2016
Jan.-Sept.

10,6592017
Jan.-Sept.

IncreaseSalesamountIncrease
Cost of Exchange Exchange
goods
impact for impact for
sales
Gross profit Expenses+13,716-8,002

Sales impact /+5,714
Decrease sales cost ratio+1,107-380

Exchange impact+727

R&D cost
increase

Other
expenses
increase-577-1,90914,612

Expenses impact-2,487

Increase of Operating profit +3,953© 2017 HORIBA, Ltd. All rights reserved.

30

Impact of fluctuation in foreign exchange
Exchange rate impact (2017 Nine Months Results)
Average Exchange rate
Jan.-Sept. 2016 USD/JPY : 108.57, EUR/JPY : 121.06
Jan.-Sept. 2017 USD/JPY : 111.89, EUR/JPY : 124.58

Exchange rate
for 2017 Forecast
USD/JPY : 111, EUR/JPY : 127(4Q USD/JPY : 108 , EUR/JPY : 134)

(Millions of Yen)
Sales
Total

Exchange rate impact
for 2017 Forecast

Operating Profit

USD

EUR

Total

USD

EUR

Auto

+133

+180

+257

+68

+11

-13

P&E

+129

+59

+36

+18

-4

+17

Medical

+384

+107

+208

+39

-5

-5

Semi

+664

+515

+10

+553

+431

+4

Scientific

+361

+199

+152

+49

+17

+14

+1,671 +1,060

+663

+727

+450

+16

Total

1 yen impact of Sales and O.P.
(Yen appreciation)

Sales
USD -469 millions of yen
EUR -337 millions of yen
Operating Profit
USD -169 millions of yen
EUR -28 millions of yen* Sum of above 2 currencies is not equal to total amountdue to other currencies (e.g. Asian currencies)© 2017 HORIBA, Ltd. All rights reserved.

31

Capital Investment, Depreciation, R&D(Billions of Yen)

No change from previous forecast
2017 Forecast

2016

Revised
Forecast

Results

Forecast
as of Aug. 4

13.4

14.6

Intangibles

0.3

0.4

Capital Investment

13.7

15.0

6.8

7.2

12.9

14.0

14.6
0.4
15.0
7.2
14.0

7.6%

7.4%

7.3%

PP&E

Depreciation
R&D(To net sales)© 2017 HORIBA, Ltd. All rights reserved.

vs Forecast
as of Aug. 4

2016
2017
Jan.-Sept. Jan.-Sept.

No change

8.5

8.1

No change

0.2

0.2

No change

8.7

8.3

No change

4.9

5.6

No change

9.4

10.0

-0.1p

8.0%

7.6%
32

Consolidated Cash Flows(Millions of yen)

2016
First-Half

2017
First-Half

Variation

Cash flows from operating activities

5,987

16,274 +10,287

Cash flows from investing activities-5,071-6,804-1,732

Cash flows from financing activities

59-7,104-7,16447,71954,174+6,454915

9,470+8,555

Cash and cash equivalents at end of year

Free cash flows© 2017 HORIBA, Ltd. All rights reserved.

33

Cash Balance(Billions of yen)(Consolidated basis, each end of the year)

Total Loan Balance

46.7

44.7

41.7

28.0
Cash※
51.1
Bonds 15.0

Cash※ Bonds 15.0
47.8

Cash※ Bonds 15.0
51.9

Cash※
54.1 Bonds 15.0

Long 16.8

Long 19.2

Long 19.0

Long 2.2
Short 10.8

Short 12.8

Short 12.4

2014
254%
60%

2015
229%
55%

2016
237%
55%

Short 7.6

Bondredemption
in 2020

Borrowedfrom JBIC*
15.1bn yen*Japan Bank forInternational
Cooperation2017 end of Jun.
243% Current ratio
56% Capital ratio

・Loan repayment due to group financing
・Recent issuer rating : R&I [A-] (July 2017), JCR [A] (August 2017)© 2017 HORIBA, Ltd. All rights reserved.

Cash*…Cash and Cash Equivalents at End of Period

34

Contents
 2017 Results & Forecast
 Business Segment Outline
 Shareholder Return Other Topics
 Financial Data Corporate Profile© 2017 HORIBA, Ltd. All rights reserved.

35

Corporate Profile






Head office
Kyoto, JapanFounded1945
Incorporated
1953
CEO
Atsushi Horiba
Fiscal year end December 31

Atsushi Horiba
President & CEO- Corporate motto -To have interest and pridein our work to enjoy our lives© 2017 HORIBA, Ltd. All rights reserved.

36

Business Segments
Automotive Test Systems

・Emission Measurement Systems
・Test Automation Systems
・Intelligent Transport Systems
・Engineering Consultancy & Testing(HORIBA MIRA, Ltd)

Process & Environmental

Medical

Semiconductor

Scientific© 2017 HORIBA, Ltd. All rights reserved.

・Environmental & Process Systems
・Environmental Radiation Monitor
・Environmental Regulation & Process Business
・In-Vitro Diagnostic (IVD) Systems
・Integration of HORIBA ABX’s
Technology & Marketing Know-how
・Mass Flow Controller
・In-situ Analysis
・Synergy among HORIBA HQ, HORIBA STEC,HORIBA Advanced Techno and HORIBA France’s
Technologies
・Raman, Grating, and Fluorescence・Synergy of HORIBA and
HORIBA France’s Technologies
37

Business Segments
Sales Breakdown by Segment
Automotive Test Systems

Sales: 170.0 bn yen(1,460 MUSD)

Process & Environmental

15%
23%

Medical

Semiconductor

Scientific25.7(220) Automotive
62.2
Semicon
(534)
38.8
(333)
P&E
Medical
16.7
26.5
(143)
(228)

16%

36%

10%

( ) =Segment Sales in MUSD
Scientific© 2017 HORIBA, Ltd. All rights reserved.

% = Segment Sales Ratio(Sales of FY2016)38

Market Shares
Domestic

GlobalEmission Measurement Systems

80%

Stack Gas Analyzers

Automatic Blood Cell Counterplus CRP

100%

20%

(As of December 31, 2015)

Mass Flow Controllers

57%

Raman Spectrophotometers

30%

Gratings

35%※Market shares quoted are estimates by HORIBA.
© 2017 HORIBA, Ltd. All rights reserved.

39

HORIBA Worldwide
Sales of FY2016 : 170.0 BJPY
(1,460 MUSD)

Sales Ratio by Region
EU
23%

Japan
33%

Americas18%© 2017 HORIBA, Ltd. All rights reserved.

Asia
26%

The Number of Group Companies by region(As of December 31, 2016)
Americas
Europe
Asia
Total

9
23
17 (4 in Japan, including HORIBA, Ltd.)
49
40

Employees by Region
Americas
3%

Other Europe
2%

U.S.A

Total Number of Employees

7,149

10%
GermanyJapan

Total Asia : 3,761

8%

Japan
38%

53%

38%

UK

11%
France

13%

Other
Asia
14%
15%

Total Europe： 2,442

34%
Total Americas： 946

13%(As of December 31, 2016)© 2017 HORIBA, Ltd. All rights reserved.

41

© 2017 HORIBA, Ltd. All rights reserved.

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