Mid-Long Term Management Plan MLMAP2028
Dan Horiba
Senior Corporate Officer, HORIBA, Ltd.
February, 2024
© 2024 HORIBA, Ltd. All rights reserved.

Rapid changes in the global environment surrounding
society

Trend toward asustainable
society

Increase in medical
issues due toPandemic

Technologicalinnovation(AI, IoT)

Secure emerging business opportunities
in rapidly changing times© 2024 HORIBA, Ltd. All rights reserved.

2

Our Future
VisionJoy and Fun for All
3 Fields which HORIBA focuses toward realizing Our Future
Energy & Environment

Bio & Healthcare

Materials & Semiconductor

MissionShape our future with solutions based on HONMAMON and Diversity
ValuesSpirit of Challenge
Corporate Motto

Reliability and Trust

Joy and Fun

Pursuit of ExcellencePositioning of MLMAP2028
MLMAP2023（2019-2023）

MLMAP2028 「MAXIMIZE VALUE」（2024-2028）

Joy and funfor All

HORIBARIANs
Automotive
Process &Environment
MedicalEnergy &Environment

Bio &Healthcare

Materials &Semiconductor

Sustainability

MissionBusiness strategy to solve social issues in three focus

Shapeour future withsolutions
based on
HONMAMONand Diversity

Semiconductor

fields (Field Operation)
ScientificVision

Group HR strategy to maximize HORIBARIANs’ potential
Sustainability strategy to create social impact*HORIBARIAN: Naming of all employees in HORIBA Group. We call so regarding us as same family© 2024 HORIBA, Ltd. All rights reserved.

4

Objective of Field Operation
Customer
Cultivate new business
opportunities

3 Fields by HORIBA
Energy &Environment

Bio &Healthcare

Materials &Semiconductor

Create innovation by
novel integration

New combination

HORIBA Core Technologies
Gas & FluidAnalysis

Solid & ParticleAnalysis

Liquid & BioAnalysis

Foster core technology
development

Data Science, AI, IoT

Strengthen global
management base

Functions (Service, Production, Distribution)© 2024 HORIBA, Ltd. All rights reserved.

5

HORIBA's growth model
Maximize
HORIBARIANs’potential

Energy &Environment

VisionCustomer needs

×Joy and Fun

3 Fields
byHORIBA

Core technology
Innovation

for All

Bio &Materials &Healthcare

Semiconductor

Create social
impactCreating innovation and robust supply chain at global level© 2024 HORIBA, Ltd. All rights reserved.

6

MLMAP2028 The team
MLMAP Leaders

Field Officers

HiroshiNakamuraDan
HoribaMaki
MoriguchiGeorgeGillespie

Masayuki
Adachi

Hideyuki
KoishiTechnology

MLMAP Leader

HR, Sustainability

Energy &Environment

Bio &Healthcare

Materials &Semiconductor© 2024 HORIBA, Ltd. All rights reserved.

7

MLMAP2028 Major management goals
Financial Goals
Sales

Operating Income

Net Income

450B.JPY

80B.JPY

55B.JPY(2023 Result: 290.5 B.JPY)(2023 Result: 47.2 B.JPY)(2023 Result: 40.3 B.JPY)

ROE

> 12%

Dividend
Payment ratio

30%

Timely and properly return to shareholders
Special dividend, Stock Buyback

Non-Financial Goals✓ Practicing values by allHORIBARIANs✓ Creating values ofHONMAMON© 2024 HORIBA, Ltd. All rights reserved.

✓ Carbon neutrality in 2050
✓ 42% reduction of CO2emissions in 2032
(Scope 1, 2)✓ Deeply foster coretechnologies - 60B.JPY
sales from new business in2028
8

HORIBARIANs

VisionGroup HR strategy to maximize HORIBARIANs’potential
Create a “Stage” together where every HORIBARIAN can maximize
their potential through demonstrating their abilities with Joy and Fun.

Cultivate unique culture
as our “Stage” to maximize
our potential✓ Share and practice ofVision / Mission / Values with
all HORIBARIANs© 2024 HORIBA, Ltd. All rights reserved.

Creating value ofHONMAMON

Learn and collaborate withdiverse HORIBARIANs✓ Pursuit of HONMAMON
through practice of Values✓ Network building withdiversified HORIBARIANs✓ Establishment ofHONMAMON Award✓ Promote a culture of “Mutual
Learning & Collaboration”.

9Sustainability

Sustainability strategy for creating social impact
Contributing to the realization of a sustainable society
through HORIBA's unique capabilities

VisionRealization of sustainable
society by HORIBA
products and solutions

Sustainable
operation“Measurement × Education“Inherit to next generation✓ Solving social issue throughbusiness in 3 Fields✓ Carbon Neutrality in 2050
✓ 42% reduction of CO2emissions in 2032
(Scope 1, 2)✓ Social contribution in
Science and Technology area
✓ More than 100 activity in 2028
with more than 4,500 participants(over 10 countries)

CO2 Emission（tCO2e)55,599CO2 Emission

32,247

CO2 Removal- 42%2022© 2024 HORIBA, Ltd. All rights reserved.

2032

Goal
- 1.5C°
2050
10Energy & Environment

FieldVisionSales

A Trusted Partner supporting
our Customers on their challenges
to deliver a Sustainable Environment

Major business domain
Contributing to Carbon Neutrality. Promoting
best solution for customer requirement in R&D /regulation process with utilizing technology &experience which HORIBA has fostered.

Sales /
Operating
Profit158B.JPY

130B.JPY

OP

15.8B.JPY

7.5B.JPYCAGR 5%2024

2028

Energy conversion cycle for
Carbon Neutral

2.1
times

2024

Chemicalproducts

Mobility

Carbonabsorption/
desorption/
reduction

Synthesis

GreenenergyBusiness Strategy• Provide diversified product and solutions

StorageElectrolysis

2028

Carboncirculation

Hydrogenutilization• New businesses by integrating capabilities inHORIBA Group• Total solution with system integration andconsulting

Renewable
Energy

H20
Wastewater© 2024 HORIBA, Ltd. All rights reserved.

Factory11

フィールド
Field

Energy & Environment

Capturing business opportunities
in the Hydrogen market
Establishment ofglobal engineering structure
Establishment of global engineering
structure

Strengthening our system
proposal capability in Carbon
Recycling

NaturalMaximize contribution
in Mobility industry
Total solution proposals
leveraging our consulting
capability

Natural Gas

Gas field

Germany

ChinaJapanUSCO 2CCSGas modificationMobility
PowerCO2 separation(Increasedproduction ofNatural Gas)

Engineering

ProductConsulting

H2Energy
storageAmmonia
production
Supply thermalenergy© 2024 HORIBA, Ltd. All rights reserved.

Operation

Testing

Powergeneration

12

Bio & Healthcare

FieldVision

Sales /
Operating
Profit*POCT : Point of Care Testing

Business Strategy

OP

5.7B.JPY

1B.JPY

5.7
times

2024

2028

40B.JPY
CAGR 9%2024

2028

Healthcare Journey

Major business domain
Contributing to transforming the Healthcare
Journey with unique solution based on our IVD
know-how, diversified core technologies, andglobal network. Key examples are , solving clinicalissue with POCT* solutions and optimizing Bio
Pharma R&D, and production process.

57B.JPYSales

Provide strong social value bytransforming the “Healthcare Journey”
with unique solutions

Prevention

Treatment

VaccineDevelopment

Pharma: Drugs
development

01
Well-Being
Food & Beverage
Cosmetics• Providing unique solution for emerging new niche

02
Healthcare
06

markets.

04
05

Diagnostics

Journey

Hematology / Clinical
Chemistry Testing03• Localization in IVD testing business• Implementing HORIBA’s measurement
technology and engineering capability in the Biopharma industry© 2024 HORIBA, Ltd. All rights reserved.

Monitoring

Screening

Unique Hematology
POCT

Liquid Biopsies

13Bio & Healthcare

Field

Developing new solutions
by integrating HORIBA's
capabilities in emerging
niche markets along theHealthcare Journey

アカデミア
Academia

HORIBA
OpticsValue creation for clinical sites

Fluidics
Screening& imaging

Shortenturnaround time

Capture &isolation

Reagent
SoftwareDatabase +analytics

Cancer cell

Identification&Characterization

MarketAccess© 2024 HORIBA, Ltd. All rights reserved.

Strengthen
primary care

Proposing process monitoring
solution for Bio-pharma market fromthe expertise of our automotive
business segment

Pharmaproduction
process

Drug monitoring forchronic disease

Cultivation

Formulation

Filling

Filtration

by unique
POCT

POCT

HORIBAµTas
technology

Treatment &monitoring

製薬
Pharma会社

Promoting new solutions tosolve issues in IVD testing
field by unique POCT

uniquenessTransform
Healthcare

Release test

Unique measurement
technology

Hospital

病院
Hospital

Satellite
hospital

Mobile unit

Rural area

Homecare

Improving healthcare accessMarket specificengineering ability

14

Materials & Semiconductor

FieldVision

Shape the market with innovative solutionsin the advanced materials andsemiconductor field toward achieving
sustainable society

Major business domain
Contributing to technology innovation in “WovenValue Chain” which is value chain matrix where
Semiconductor production process, advanced
materials and facilities are inter-connected.
Provide cutting-edge solutions in advanced
material area and supporting customer’s
operations in all directions.

235B.JPY

Sales
Sales /OperatingProfit

151B.JPY

OP

43.5B.JPY
1.3
times

CAGR 12%2024

58.5B.JPY

2028

2024

2028

Woven Value Chain

Semiconductor
ManufacturingProcess

Wafer
Cleaning

Deposition
Lithography

Business strategy

Etching• Sustain / Increase market share by increasing

CMP

production capacity• Strengthen process monitoring in Semiconductor
market• Applying advanced measurement technology insemiconductor material• Allocate resources on material research,
production and recycling© 2024 HORIBA, Ltd. All rights reserved.

Support Semiconductor industry in all directions
including emission from facility and wasted water monitoring
15

FieldMaterials & Semiconductor

Contributing to cutting edge
process in Semiconductor
Providing solutions with high-value
component and module products

Developing all-round solution bythin film measurement technology
such as semiconductor processmonitoring and facility monitoring

Contributing to process of material
development and production

Providing solution throughconsolidating measurement
technologies of HORIBA GroupSemiconductor process control
domain which HORIBA covers• Liquid monitoring /control

Semiconductor
Material

Polymer

CarbonR&D

Production

Recycling• Liquid vaporization• Pressure control• Vacuum monitoring• Chemical concentration• Plasma monitoring• Thermal monitoring© 2024 HORIBA, Ltd. All rights reserved.

Yield
improvement

Reduce energy
consumption

Improveefficiency

16

New business in MLMAP2028
Sales of New business in 2028Energy &Environment

Business for
new energy(i.e. Hydrogen)

31B.JPY

60B.JPY
450B.JPY
321B.JPY

60B.JPY New business

25B.JPY

207
Bio &Healthcare

Materials &Semiconductor

Business forLife Science

New business for
Semiconductor
industry© 2024 HORIBA, Ltd. All rights reserved.

14B.JPY

B.JPY

179
B.JPY

117

15B.JPY

183
B.JPY

Semiconductor
Process Control

B.JPY

2024

2028

17

Cultivating HONMAMON technology by connecting technology andtalents organically
Product development
closely to the customer

Business transformationfrom product sales tosolution business

Pursuit of HONMAMON
technology

Customer demand × Core technology= Innovation

Develop businesses across fields

Pursuit of applications,
Accelerating open innovation

Sales in Solution business

Advanced R&D

Sales in new businessincl. Automation / Data management business

60B.JPY

25B.JPY(in 2028)(in 2028)

More than 10%
of total R&D expense(in 2028)

Enterprise© 2024 HORIBA, Ltd. All rights reserved.

18

Strengthening business foundation
to support global operation

Service

Establish unique service model withhigh-quality services and analyticalsolutions

650

Approx.

Distributors• Continuous investment in HR• Provide solutions for facility optimization

Approx. 5,400

Oversea
HORIBARIANs

Stably provide high-quality products byusing a sustainable value chain
ProductionDistribution• Optimization of global resources• Passing on skills to the next generation• Pursuit of production automation

18Factories

45

Expand solutions and build distribution
channels that maximize customer valueOffices• Channel optimization based on fieldoperation

3Fields© 2024 HORIBA, Ltd. All rights reserved.

19

Cash allocation during MLMAP2028
R&D Investment

130B.JPY

2024 - 2028
Operating CF before（87.5B.JPY）
Approx.7％ vs Sales

GrowthInvestment

R&D investmentFacility, StrategicInvestment

400B.JPY

Growth strategy, Generationof Operating CF
Investment for future growthTimely and properly return toshareholders

140B.JPY（59.1B.JPY）（232.3B.JPY）

DetailItems

Dividend（Approx.30％）

68B.JPY

Return to
Shareholderetc

Cash reserves（33.3B.JPY）
Internal fund
+ Timely and properly returnto Shareholders etc.

(B. JPY) : MLMAP2023（2019～23）Result© 2024 HORIBA, Ltd. All rights reserved.

Total

Regular Investment

Approx.

60B.JPY

Fukuchiyama Factory andTechnology Center (Semiconductor)

Approx.

20B.JPY

Strategic Investment

Approx.

60B.JPYTotal

Approx.

140B.JPY
20

Realizing the Growth Potential Ahead 500B.JPY sales (1.5 times vs 2023)（B.JPY）

Sales

Operating
Income

450.0

CAGR*

Net Income Attributable to ownersof parent

2023

80.0

2028

9.1%
MLMAP2028
290.5

Exchange Rate

270.1

1 USD = 140 JPY
1 EUR = 155 JPY

210.5 200.2

224.3 45.8

321.0
52.0

47.2

187.0 32.0

28.8

40.3

22.3

37.0

34.0

20.9 19.6
21.3
15.4

13.1

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

2006-20102011-2015

2028（MLMAP）

2016-20202019-2023© 2024 HORIBA, Ltd. All rights reserved.

55.0

2024-2028*CAGR : Compound Annual Growth Rate

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MLMAP2028 The Symbol

A butterfly transforms from humble beginnings to a beautiful creature dancing on the wind and spreading new life toeach flower it touches. Each tiny flap of its wings may result in massive impact elsewhere.
HORIBA’s cutting edge analytical and measurement solutions maximize the value to society,to enable a sustainable future for all living things.

© 2024 HORIBA, Ltd. All rights reserved.

22

© 2024 HORIBA, Ltd. All rights reserved.

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© 2024 HORIBA, Ltd. All rights reserved.