Summary of Consolidated Financial Statements for the Six Months Ended June 30, 2016
(Japanese GAAP)
August 3, 2016
Company name

HORIBA, Ltd.

Listing code

6856

Listed stock exchanges: Tokyo

Representative

Atsushi Horiba, Chairman, President and CEO

Contact

Junichi Tajika, Department Manager, Accounting Dept.

URL: http://www.horiba.com
TEL: (81)75-313-8121

Scheduled date of start of interim dividend payment: August 31, 2016
(Figures have been rounded down to the nearest million yen)

1. Consolidated Results for the Six Months Ended June 30, 2016 (January 1, 2016 - June 30, 2016)(Percentages represent changes from the corresponding period in the previous year)(1) Consolidated Operating Results
Net income attributable
Net Sales
Operating Income
Ordinary Income
to Owners of Parent%

Millions of yen%

Six months ended 6/30/16
79,984
7,778 -29.4
7,597 -29.1-1.4
10,716Six months ended 6/30/15
81,084
11,018―――(Note) Comprehensive Income: FY2016Q2 -4,243 million yen (-%), FY2015Q2 5,875 million yen (-%)

Millions of yen

4,128
6,566

-37.1
―

%

Millions of yen%

Yen

Net Income per Share(Diluted)
Yen

98.03
155.6897.60
155.01Net Income per ShareSix months ended 6/30/16
Six months ended 6/30/15

Millions of yen(Note) The Company and its domestic consolidated subsidiaries had formerly recognized revenue mainly on a shipping basis.
However, starting from the fiscal year 2016, the Company and its domestic consolidated subsidiaries have changed to revenue
recognition method on a completion date of installation or a delivery date basis under the terms and conditions of contracts.
Accordingly, retrospective restatement is applied. The percentage of change for the six months ended June 30, 2015 versus thesame period of previous year is not released because retrospective restatement is not applied for the six months ended June 30,
2014.
(2) Consolidated Financial Position
Total Assets

Shareholders'Equity Ratio

Net Assets

Millions of yen

Millions of yen%

As of 6/30/16
215,022
121,354
56.2
As of 12/31/15
232,121
127,243
54.6(Reference) Net assets excluding subscription rights to shares and non-controlling interests:
As of June 30, 2016: 120,845 million yen; As of December 31, 2015: 126,774 million yen
2. Dividends
Dividend per shareFirst
quarter

SecondquarterYen

Thirdquarter
Yen

Year ended 12/31/15
28.00
－
30.00
Year ending 12/31/16－
Year ending 12/31/16(Forecast)(Note) Changes in the latest dividend forecasts released: None

Year end
Yen

Total

Yen

Yen

－

42.00

70.00

－

45.00

75.00

3. Consolidated Forecast for the Year Ending December 31, 2016 (January 1, 2016 - December 31, 2016)(Percentages represent changes from the previous fiscal year)

Operating Income

Net Sales

Full year

Millions of yen%

170,000-1.1

Millions of yen

Net income attributable
Net Income per Shareto Owners of Parent

Ordinary Income%

Millions of yen%

Millions of yen%

Yen

17,500 -13.1

17,000-13.4

10,800-18.7

256.40(Note) Changes in the latest business forecasts released: Yes

1

HORIBA, Ltd. (Consolidated)

Notes(1) Changes in significant subsidiaries during the period(Changes in specified subsidiaries that caused a change in the scope of consolidation): None
(2) Application of the accounting method specific to quarterly consolidated financial statements: None
(3) Changes in accounting policies, accounting estimates and retrospective restatement① Changes in accounting policies associated with revision of accounting standards: Yes② Changes in accounting policies arising from other than the above: Yes③ Changes in accounting estimates: None
④ Retrospective restatement: None
(Note) Please see "2.Items Concerning Summary Information (Notes)" on page 5 for further details.
(4) Number of shares outstanding (common stock)① Shares issued (including treasury stock)② Treasury stock③ The average number of outstanding shares
during the six months ended FY2016 and FY2015

June 30,2016
42,532,752
402,921

December 31, 2015
42,532,752
439,021Jan. - Jun. 2016
42,112,644

Jan. - Jun. 2015
42,179,324

Note 1. Indication regarding implementation status of quarterly review procedures
These quarterly financial statements have not been prepared for the purpose of quarterly review procedures pursuant
to the Financial Instruments and Exchange Act (FIEA). Review procedures for quarterly financial statements were in
the process of being implemented as of the release of these quarterly financial statements. The consolidated
operating results and consolidated financial position are calculated based on the retrospectively-restated amounts offiscal year 2015. Those retrospectively-restated amounts are unaudited and are subject to change.
Note 2. Appropriate use of business forecasts and other important information
The business forecasts stated herein are based on information currently available and certain assumptions for factors
which may affect business results. We do not warrant that these forecasts will be achieved. Actual results may differ
from the forecasts due to a range of factors. For additional information, please see page 4, "1. (2) Information
Concerning Consolidated Earnings Forecasts for FY2016".

2

HORIBA, Ltd. (Consolidated)1. Qualitative Information Concerning Consolidated Results(1) Information Concerning Consolidated Operating Results
During the six months ended June 30, 2016 (the first half year), with regard to the global economy, the United States
continued its economic recovery due to an increase in consumption supported by an improvement in the employment
environment and other factors. In Europe, a gradual economic recovery is evident mainly in Germany but the U.K.’s
decision to leave the EU (Brexit) has led to increasing uncertainty over the future outlook. China and other Asian emerging
countries and commodity exporting countries experienced an economic slowdown, while Russia and South Americancountries continued to face harsh economic conditions due to local currency’s weakness and other factors. In Japan, theeconomy continued its moderate recovery trend with a rise in corporate capital investment and a steady improvement in
the employment and wage environment.
The average exchange rates for the six months from January to June 2016 were 111.70 yen against the U.S. dollar and124.52 yen against the euro, marking appreciation of 7.7% against the U.S. dollar and the euro respectively, compared tothe same period of last year.
Under these conditions, HORIBA, Ltd. (“the Company”) and its consolidated subsidiaries (together “the HORIBA Group” or“HORIBA” as a consolidated group) recorded sales of 79,984 million yen, down 1.4% year-on-year, mainly because theAutomotive Test Systems segment increased sales due to the sales contribution of HORIBA MIRA Ltd. (U.K.), which was
acquired in July 2015, but all other segments decreased sales.
In terms of profits, mainly due to the impacts of the appreciation of the yen against the U.S. dollar, and profit decline in the
Automotive Test Systems segment mainly because of MCT (Mechatronics) business sales decline, overall operating
income decreased by 29.4% year-on-year to 7,778 million yen and ordinary income decreased by 29.1% to 7,597 million
yen. Net income attributable to owners of parent decreased by 37.1% to 4,128 million yen, not only due to the fact that
ordinary profit decrease, but also because of extraordinary losses resulted from the severe earthquakes occurred in
Kumamoto Prefecture and surrounding regions in Japan.
The operating results of each business segment are summarized as follows.
(Automotive Test Systems)
Segment sales increased by 5.4% year-on-year to 28,128 million yen, mainly due to the sales contribution of HORIBAMIRA Ltd. (U.K.), which was acquired in July 2015. However, operating income declined by 81.5% to 554 million yen, due
to the sales decline in MCT business and the increase in fixed expense and the incur of one-time moving expense related
to the full-scale operation of HORIBA BIWAKO E-HARBOR, the new factory in Shiga prefecture Japan.
(Process & Environmental Instruments & Systems)
Sales in the Americas, primarily to companies in the petrochemical industry, were robust, but there was a decline in thesales of stack gas analyzers and water quality analyzers in Asia including China and South Korea. As a result, segment
sales were 7,798 million yen, down 5.1% year-on-year, and operating income decreased by 8.5% to 867 million yen.
(Medical-Diagnostic Instruments & Systems)
A decrease in the amount of European sales expressed in yen, stemming from the yen’s appreciation against the euro, andother factors, caused segment sales decline by 1.1% year-on-year to 13,800 million yen. In terms of profits, sales of theHematology and C-Reactive Protein (CRP) analyzers, which was launched in Japan last year, and the sales in Asia wererobust. Consequently, segment operating income increased by 21.7% to 1,593 million yen.

3

HORIBA, Ltd. (Consolidated)

(Semiconductor Instruments & Systems)
As semiconductor manufacturers temporarily reduced capital investment from the end of 2015 to the beginning of 2016,
sales to semiconductor production equipment manufacturers decreased year-on-year although they reached a high level.
Owning to that factor as well as the yen’s appreciation against the dollar, segment sales decreased by 6.3% year-on-year
to 17,895 million yen and operating income decreased by 13.2% to 4,483 million yen.
(Scientific Instruments & Systems)
The yen’s appreciation against the dollar and the euro resulted in a decrease in sales in Europe and the Americas in yen
terms, and sales to universities and other customers decreased in the Americas. Consequently, segment sales decreased
by 5.8% year-on-year to 12,361 million yen and operating income decreased by 53.6% to 280 million yen.
(2) Information Concerning Consolidated Earnings Forecasts for FY2016
After taking into account the recent trend in orders, the foreign exchange rate and other factors, consolidated earnings
forecasts for the current fiscal year have been revised as follows. Assuming exchange rates of 105 yen against the U.S.
dollar and 115 yen against the Euro for the second half of the year, the full-year exchange rate forecasts have beenchanged from 115 yen to 108 yen against the U.S. dollar and from 125 yen to 120 yen against the Euro.
Consolidated forecast for the full FY2016(Amount: millions of yen)Previous

Revised

Forecast

Forecast(As of May 11)(As of Aug. 3)

Changes

Net sales

175,000

170,000-5,000Operating income

17,50017,500-Ordinary income

16,50017,000+500

10,80010,800-Net income attributableto owners of parent

Consolidated forecast for the full FY2016 by segment

Net sales(Amount: millions of yen)Previous

Revised

Forecast

Forecast(As of May 11)(As of Aug. 3)

70,00065,000-5,00018,00016,500-1,500

Medical28,00026,500-1,500

Semiconductor

31,00035,000Scientific28,000

Total

175,000

Automotive
Process &Environmental

Operating income(Amount: millions of yen)Previous

Revised

Forecast

Forecast(As of May 11)(As of Aug. 3)

5,000

4,000

-1,000

1,500

1,300

-200

Medical

2,000

2,500

+500

+4,000

Semiconductor

7,500

8,700

+1,20027,000-1,000Scientific

1,500

1,000

-500

170,000-5,000Total

17,50017,500-Changes

Automotive
Process &Environmental

4

Changes

HORIBA, Ltd. (Consolidated)By business segment, HORIBA has revised down its forecast for the Automotive Test Systems segment by 5,000 million
yen in sales and 1,000 million yen in operating income, given the trend in orders received in the MCT business, despite
steady sales of HORIBA’s core products - emission measurement systems.
For the Semiconductor Instruments & Systems segment, sales and operating income forecasts have been revised up by
4,000 million yen and 1,200 million yen respectively, based on the assumption that capital investment by semiconductor
manufacturers will remain solid after the third quarter of the year.
For the Medical-Diagnostic Instruments & Systems segment, as the appreciation of the yen reduces the amount of sales in
Europe and the United State expressed in yen, a downward revision of 1,500 million yen in sales has been made. However,thanks to favorable sales in Japan, the operating income forecast has been revised upward by 500 million yen.
The Process & Environmental Instruments & Systems segment and the Scientific Instruments & Systems segment havealso made downward revisions, given the business performance up to the second quarter and the trend of orders received.
The Process & Environmental Instruments & Systems segment has revised downward its forecasts by 1,500 million yen insales and 200 million yen in operating income, and the Scientific Instruments & Systems segment has revised forecasts
downward by 1,000 million yen in sales and 500 million yen in operating income.
After taking into account of the progress of non-operating income and loss up to the second quarter, the ordinary income
forecast has been revised upward by 500 million yen. However, considering the impact associated with the damage
resulted from the Kumamoto Earthquakes, net income attributable to owners of parent remains unchanged.
As a result, HORIBA’s overall full-year forecasts are 170,000 million yen in sales, 17,500 million yen in operating income,
17,000 million yen in ordinary income, and 10,800 million yen in net income attributable to owners of parent.
The dividend forecast for the fiscal year has remained unchanged at 75 yen per share because no change was made to net
income attributable to owners of parent.
(Note) The forecasts of dividend amount and business performance have been made based on information available as of August 3, 2016.
However, due to the existence of various uncertainties, it is possible that actual performance would vary considerably from the forecasts.
The major risk factors are as follows, but are not limited to these.
Business risks:
Risks associated with international business activities including a loss from fluctuation of currency exchange rates; changes in
performance or financial position associated with acquisitions or alliances; repairs of buildings and facilities following natural
disasters and associated delays in delivery; risks associated with contracts and transactions; laws and regulations; and otherbusiness risks
Risks associated with development and production:
Compensation for product liability; delays in development of new products; risks concerning intellectual property right; and risks
concerning fluctuation in raw material prices
Financial risks:
Impairment loss on securities and fixed assets; reversal of deferred tax assets resulting from changes in systems or accounting
policies; and fluctuations in the estimated loss at the time of employees’ local pension fund dissolution

2. Items Concerning Summary Information (Notes)(1) Changes in Accounting Policies(Change in revenue recognition standard)
The Company and its domestic consolidated subsidiaries had formerly recognized revenue mainly on a shipping basis.
However, starting from the three months ended March 31, 2016, the Company and its domestic consolidated subsidiaries
have changed to revenue recognition method on a completion date of installation or a delivery date basis under the terms
and conditions of contracts.
HORIBA’s overseas consolidated subsidiaries, pursuant to IFRS and US GAAP, had recognized revenue on an installation
completion date or a delivery date basis under the terms and conditions of contracts. In addition, sales of products that
require a long time for installation have been increasing. Consequently, HORIBA has decided to make a change to more
adequately reflecting revenue status, upon introduction of a new operating system.

5

HORIBA, Ltd. (Consolidated)

This change in accounting policy has been retrospectively applied to the consolidated financial statements for the quarterand full-year period of fiscal year 2015.
As a result, net sales for the first half of fiscal year 2015 increased by 3,467 million yen, and operating income increased by
1,959 million yen, ordinary income and income before income taxes increased by 1,979 million yen, respectively, as
compared with the figures prior to the retrospective application. The net assets at the beginning of the previous fiscal year
have reflected the cumulative effects, which resulted in a decrease by 3,223 million yen in retained earnings at the
beginning of the previous fiscal year.
(Adoption of Revised Accounting Standard for Business Combinations, etc.)“Revised Accounting Standard for Business Combinations” (ASBJ Statement No. 21, released on Sep. 13, 2013,
hereinafter the “Accounting Standard for Business Combinations”), “Revised Accounting Standard for Consolidated
Financial Statements” (ASBJ Statement No. 22, released on Sep. 13, 2013, hereinafter the “Consolidated AccountingStandard”), “Revised Accounting Standard for Business Divestitures” (ASBJ Statement No. 7, released on Sep. 13, 2013,
hereinafter the “Accounting Standard for Business Divestitures”) and others have been adopted effective from the
beginning of the first quarter of the fiscal year ending March 31, 2016. As a result, any change resulting from theCompany’s ownership interests in its subsidiary when the Company retains control over the subsidiary is accounted for as
capital surplus, and acquisition related costs are expensed in the year in which the costs are incurred. For any businesscombinations on or after the beginning of the first quarter, subsequent measurement of the provisional amount recognizedbased on the purchase price allocation due to the completion of accounting for the business combination are reflected in
the quarterly consolidated financial statements for the period to which the date of that business combination occurs. In
addition, the presentation method of net income was amended as well as “minority interests in consolidated subsidiaries” to“non-controlling interests.” To reflect these changes in presentation, adjustments have been made to the consolidated
financial statements for the prior first half and the prior fiscal year presented herein. The aforementioned accounting
standards are adopted as of the beginning of the first quarter and thereafter, according to the transitional treatment
provided for in Paragraph 58-2 (4) of the Accounting Standard for Business Combinations, Paragraph 44-5 (4) of theConsolidated Accounting Standard and Paragraph 57-4 (4) of the Accounting Standard for Business Divestitures. There is
no impact of these changes on profit and loss.
(2) Change in Method of Presentation(Consolidated Balance Sheets)
In fiscal 2015, “Advances received” was included in “Other current liabilities”. However, due to an increased significance inamount, it is independently stated from the three months ended March 31, 2016. To reflect this change in presentation
method, the consolidated financial statements for fiscal 2015 have been restated.
As a result, “Other current liabilities” of 14,460 million yen in the consolidated balance sheets for fiscal 2015 is restated as“Advances received” of 10,831 million yen and “Other current liabilities” of 3,628 million yen.
(3) Additional Information(Revision of Amount of Deferred Tax Assets and Deferred Tax Liabilities due to Change in Rate of Corporate andOther Income Taxes)
Following the promulgation of the Act for Partial Amendment of the Income Tax Act (Act No. 15 of 2016) and the Act for
Partial Amendment of the Local Tax Act (Act No. 13 of 2016) on March 31, 2016, the statutory effective tax rate for the
consolidated fiscal year on and after April 1, 2016 was reduced. Following the Act, the statutory effective tax rate used to
calculate deferred tax assets and deferred tax liabilities was changed from 32.2% to 30.8% for temporary differences
expected to be reversed in the fiscal year beginning on January 1, 2017 and 2018, and to 30.5% for temporary differences
expected to be reversed in the fiscal year beginning on January 1, 2019.
Due to such change in tax rate, the amount of deferred tax assets (netted with deferred tax liabilities) decreased by 22
million yen, while income taxes (deferred), net unrealized holding gains on securities, and remeasurements of defined
benefit plans increased by 66 million yen, 39 million yen, and 4 million yen, respectively.

6

HORIBA, Ltd. (Consolidated)(Transfer of the water quality and liquid analysis instruments and systems business through simplified
absorption-type corporate split)
The Company decided, at the Board of Directors meeting held on May 19, 2016, to have HORIBA Advanced Techno, awholly owned subsidiary of the Company, take over its water quality and liquid analysis instruments and systems business(hereinafter the “water measurement business”) through absorption-type corporate split approach, effective January 1,
2017, and entered into an absorption-type corporate split agreement on June 20, 2016.
The absorption-type corporate split is summarized as follows.
(1) Purpose of the corporate split
The HORIBA Group’s water measurement business, represented by pH meters, the Group’s mainstay product since thefoundation of the Company, has been promoted jointly by the Company and HORIBA Advanced Techno up to the moment.
With the aim of business expansion in the water measurement area, as one of the priority initiatives in the HORIBA
Mid-Long Term Management Plan, the Company will separate its water measurement business division and integrate itwith HORIBA Advanced Techno in order to develop more market-oriented products, improve customer satisfaction, andenhance market competitiveness and earnings power.
(2) Corporate split method
This corporate split is an absorption-type corporate split in which HORIBA Advanced Techno will be the succeedingcompany.
(3) Corporate split schedule (Effective date)
January 1, 2017(4) Details of allotments relating to the corporate split
The Company owns all shares of HORIBA Advanced Techno and there will be no consideration such as allotment of sharesor payment of cash due to this corporate split.
(5) Calculation of allotments relating to the corporate split
There are no allotments of shares or other assets due to this corporate split.
(6) Rights and obligations to be succeeded by the successor company
In accordance with the absorption-type corporate split agreement, HORIBA Advanced Techno shall succeed to assets,
liabilities, other rights and obligations, and contractual status that are considered necessary to carry out the business.
(7) Outline of the successor company
Capital:

250 million yen

Business:

Development, manufacturing, sales and services of measurement equipment

7

HORIBA, Ltd. (Consolidated)3. Consolidated Financial Statements(1) Consolidated Balance Sheets
Amount: millions of yen
FY2015(As of December 31,
2015)

FY2016 first half
(As of June 30, 2016)

Cash and bank deposits

43,922

48,374

Trade notes and accounts receivable

50,12842,307

Marketable securities

6,927

1,264

Merchandise and finished goods

15,696

14,327Work in process

13,707

13,589Raw materials and supplies

10,786

10,301

Deferred tax assets

5,140

3,691

Other current assets

6,584

7,197

Allowance for doubtful accounts

(789)

(640)

152,104

140,414

Buildings and structures, net

31,28828,733

Machinery, equipment and vehicles, net

6,468

6,219

Land

10,647

11,369Construction in progress

4,739

5,268

Other property, plant and equipment, net

3,834

3,422

Total Property, Plant and Equipment

56,97855,013

Goodwill

576

436

Software

4,851

4,415

Other intangibles

4,870

3,539

Total Intangibles

10,2988,391

Investment securities

8,335

7,046

Deferred tax assets

1,671

1,453

Other investments and other assets

2,783

2,746

(50)

(44)

12,739

11,20280,01774,607232,121215,022

AssetsCurrent Assets:

Total Current Assets
Fixed Assets:
Property, Plant and Equipment:

Intangibles:

Investments and Other Non-Current Assets:

Allowance for doubtful accounts
Total Investments and Other Non-Current Assets
Total Fixed Assets
Total Assets

8

HORIBA, Ltd. (Consolidated)Amount: millions of yen
FY2015(As of December 31,
2015)

FY2016 first half
(As of June 30, 2016)

Trade notes and accounts payable

17,675

15,220

Short-term loans payable

12,87911,992

Accounts payable - other

14,75911,287

Accrued income taxes

3,796

1,558

Advances Received

10,831

9,384

Deferred tax liabilities

91

67

Accrued bonuses to employees

948

511

Accrued bonuses to directors and corporate auditors

63

274

Reserve for product warranty

1,651

1,537

Provision for loss on disaster-484

Other current liabilities

3,628

3,646

Total Current Liabilities

66,32555,965

Corporate bonds

15,00015,000Long-term loans payable

16,826

17,432

Deferred tax liabilities

1,181

705

Net defined benefit liability

1,947

1,674

Provision for loss on dissolution of the employees’
pension fund

1,267

1,172

Other non-current liabilities

2,329

1,717

Total Non-Current Liabilities

38,55237,701

104,878

93,667

Common stock

12,011

12,011

Capital surplus

18,717

18,717Retained earnings

93,232

95,534

Treasury stock(1,730)(1,588)122,230

124,674

2,624

1,793

(0)

(6)

Foreign currency translation adjustments

1,852(5,694)Remeasurements of defined benefit plans

66

77

4,543

(3,829)

469

466

0

43

127,243

121,354

232,121215,022

Liabilities
Current Liabilities:

Non-Current Liabilities:

Total Liabilities
Net Assets
Shareholders' Equity

Total Shareholders' Equity
Accumulated Other Comprehensive Income
Net unrealized holding gains on securities
Deferred gains or losses on hedges

Total Accumulated Other Comprehensive Income
Subscription Rights to Shares
Non-controlling Interests
Total Net Assets
Total Liabilities and Net Assets

9

HORIBA, Ltd. (Consolidated)(2) Consolidated Statements of Income and Consolidated Comprehensive Income Statements(Consolidated Statements of Income)Amount: millions of yen
FY2015 first half

FY2016 first half(Six months ended
June 30, 2015)(Six months ended
June 30, 2016)

Net Sales

81,084

79,984

Cost of Sales

45,25946,414Gross Income

35,82533,569Selling, General and Administrative Expenses

24,806

25,791

Operating Income

11,018

7,778Interest income

156

81

Dividend income

8884

Non-Operating Income

Subsidy income

13

79

Other

111

96

Total non-operating income

369

342

Interest expense

392

273

Foreign exchange losses

188

215

Other

90

33

Total non-operating expense

671

523

10,716

7,597

Gain on sales of fixed assets

102

Reversal of provision for compensation losses

2

Total extraordinary gain

13

2

6

0

Loss on disposal of fixed assets

3160

Impairment loss

93-

Business structure improvement expenses

113-

Non-Operating Expense

Ordinary Income
Extraordinary Gain-

Extraordinary Loss
Loss on sales of fixed assets

Loss on disaster-

Total extraordinary loss

925

217

1,085

Income before Income Taxes

10,512

6,514

Income taxes (current)

3,294

932

Income taxes (deferred)

651

1,452

3,946

2,385

6,566

4,129

Total income taxes
Net Income
Profit attributable to non-controlling interests-

Net Income attributable to Owners of Parent

6,566

10

0
4,128

HORIBA, Ltd. (Consolidated)

(Consolidated Statements of Comprehensive Income)Amount: millions of yen
FY2016 first half(Six months ended
June 30, 2016)

FY2015 first half(Six months ended
June 30, 2015)
6,566

4,129

Net unrealized holding gains on securities

709

(830)

Deferred gains or losses on hedges

(17)

(5)

Foreign currency translation adjustments(1,385)(7,547)

Remeasurements of defined benefit plans

310

Net Income
Other Comprehensive Income

Total other comprehensive income
Comprehensive Income(690)(8,373)

5,875(4,243)

5,875(4,244)00(Breakdown of comprehensive income)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

11

HORIBA, Ltd. (Consolidated)

(3) Consolidated Statements of Cash Flows
Amount: millions of yen
FY2016 first half(Six months ended
June 30, 2016)

FY2015 first half(Six months ended
June 30, 2015)
Cash Flows from Operating Activities:
Income before income taxes
Depreciation expense
Loss on impairment of fixed assets
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for loss on dissolution of the employees'
pension fundInterest and dividend income
Interest expense
Foreign exchange losses (gains)
Loss (gain) on sales of fixed assets
Loss on disposal of fixed assets
Decrease (increase) in trade notes and accounts receivable
Decrease (increase) in inventories
Increase (decrease) in trade notes and accounts payable
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes (paid) refund
Net Cash Provided by (used in) Operating Activities
Cash Flows from Investing Activities:
Increase in time deposits
Decrease in time deposits
Decrease in time deposits restricted for use
Payments for purchase of marketable securities
Proceeds from sales or redemption of marketable securities
Payments for purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Payments for purchase of intangibles
Payments for purchase of investment securities
Proceeds from sales or redemption of investment securities
Payments of loans receivableCollection of loans receivable
Other, net
Net Cash Provided by (used in) Investing Activities
Cash Flows from Financing Activities:
Net increase (decrease) in short-term borrowings
Increase in long-term debt
Repayments of long-term debt
Repayments on finance lease obligations
Proceeds from share issuance to non-controlling shareholders
Net decrease (increase) of treasury stock
Cash dividends paid
Net Cash Provided by (used in) Financing Activities
Effect of Exchange Rate Changes on Cash and Cash Equivalents
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Period
Increase (Decrease) in Cash and Cash Equivalents Resulting from
Change of Scope of Consolidation
Cash and Cash Equivalents at End of Period

12

10,512
2,637
93
57
(214)
(43)

6,514
3,215
－
71
(47)
(44)

(57)

(94)

(244)
392
15
(4)
3
5,287
(782)
672
(3,031)
15,293245(347)(5,088)
10,103

(166)
273
30
(2)
160
3,457
(1,830)(481)(1,341)
9,713
167
(261)
(3,632)
5,987(1,634)1,718
32(1,000)
1,902(7,832)
42
(630)
(590)
0
(7)
26
(3)
(7,974)(1,829)
1,613
32
(101)
1,212
(5,802)
5
(162)
(9)
1
(16)
13
(28)
(5,071)

726
276
(454)
(87)
－
(999)
(1,775)(2,313)(325)(508)
51,109

364
1,964
(500)
(107)
60
0
(1,721)59(1,115)(139)
47,859446－

51,04747,719HORIBA, Ltd. (Consolidated)4. Supplemental Information
HORIBA, Ltd. Financial Highlights for the Six Months Ended June 30, 2016
1. Consolidated Financial Results

Amount: millions of yen

12/2016
Result12/2015
Result

1st half

1st half

AmountNet Sales

79,98481,084-1,100Operating Income

7,778

11,018-3,239Operating Income Ratio

9.7%

13.6%

-3.9P

Ordinary Income

12/2016
Forecast

12/2015
ResultFull year

Full year

Amount-1.4%

170,000

171,916-1,916-1.1%-29.4%

17,50020,142-2,642-13.1%

10.3%

11.7%

-1.4P

17,00019,639-2,639

10.0%

11.4%

-1.4P

10,80013,282-2,482

Changes
Ratio

Changes

7,597

10,716-3,119Ordinary Income Ratio

9.5%

13.2%

-3.7P

Net Income attributableto Owners of Parent

4,128

6,566

-2,438Net Income Ratio

5.2%

8.1%

-2.9P

6.4%

7.7%

-1.3P

US$

111.70120.30-8.60

108.00121.10-13.10Euro124.52134.10-9.58

120.00134.31-14.31

12/2016
Forecast

12/2015
ResultFull year

Full year

Amount-29.1%-37.1%

2. Consolidated Segment Results
Net Sales

Ratio-13.4%-18.7%

Amount: millions of yen

12/2016
Result12/2015
Result

1st half

1st half

AmountChanges
Ratio

Changes
Ratio

Automotive

28,12826,689+1,439+5.4%

65,00065,436

-436

-0.7%

Process&Environmental

7,798

8,218

-419

-5.1%

16,50016,708

-208

-1.2%

Medical13,80013,953

-153

-1.1%

26,50027,669-1,169-4.2%

Semiconductor

17,895

19,101-1,205-6.3%

35,00035,353

-353

-1.0%

Scientific12,361

13,122

-760

-5.8%

27,00026,748

+251

+0.9%

Total

79,98481,084-1,100-1.4%

170,000 171,916-1,916-1.1%

Operating Income

12/2016
Result12/2015
Result

1st half

1st half

ChangesAmountRatio

12/2016
Forecast

12/2015
ResultFull year

Full year

AmountRatio

Changes

Automotive

554

2,990

-2,436-81.5%

4,000

5,200

-1,200-23.1%

Process&Environmental

867

947

-80

-8.5%

1,300

1,756

-456

-26.0%

Medical

1,593

1,309

+284

+21.7%

2,500

2,558

-58

-2.3%

Semiconductor

4,483

5,166

-683

-13.2%

8,700

9,429

-729

-7.7%

Scientific

280

603

-323

-53.6%

1,000

1,197

-197

-16.5%

Total

7,778

11,018-3,239-29.4%

17,50020,142-2,642-13.1%(Note) The Company and its domestic consolidated subsidiaries had formerly recognized revenue mainly on a shipping
basis. However, starting from the fiscal year 2016, the Company and its domestic consolidated subsidiaries havechanged to revenue recognition method on a completion date of installation or a delivery date basis under the terms andconditions of contracts. Accordingly the amounts of fiscal year ended December 31, 2015 are calculated based on the
retrospectively-restated amounts.

13

HORIBA, Ltd. (Consolidated)3. Consolidated Segment Sales by Destination

Automotive

Amount: millions of yen

12/2016
Result12/2015
Result12/2016
Forecast

12/2015
Result

1st half

1st half

AmountRatio

Full year

Full year

28,12826,689+1,439+5.4%

65,00065,436-436

Changes

ChangesAmount

Ratio

-0.7%

Japan

10,987

9,971+1,015+10.2%

18,80017,782+1,017

+5.7%

Asia

5,959

7,577

-1,618-21.4%

15,30017,371-2,071-11.9%

Americas(*)

3,755

4,058

-302

-7.5%

9,300

10,477-1,177-11.2%

Europe

7,426

5,081

+2,344+46.1%

21,60019,805+1,794+9.1%

Process&Environmental

7,798

8,218

-419

-5.1%

16,50016,708

-208

-1.2%

Japan

4,478

4,401

+77

+1.8%

9,000

8,352

+647

+7.7%

Asia

965

1,646

-680

-41.3%

2,700

3,517

-817

-23.2%

Americas(*)

1,471

1,184

+286

+24.2%

3,000

2,567

+432

+16.8%

Europe

883

986

-102

-10.4%

1,800

2,270

-470

-20.7%

13,80013,953

-153

-1.1%

26,50027,669-1,169

-4.2%

Japan

2,991

3,078

-87

-2.8%

5,800

5,950

-150

-2.5%

Asia

2,593

2,147

+445

+20.7%

4,900

4,326

+573

+13.2%

MedicalAmericas(*)

3,229

3,416

-187

-5.5%

6,200

6,813

-613

-9.0%

Europe

4,986

5,310

-324

-6.1%

9,600

10,578

-978

-9.2%

17,895

19,101-1,205-6.3%

35,00035,353

-353

-1.0%

Japan

6,814

6,819

-4

-0.1%

13,50013,071

+428

+3.3%

Asia

7,323

7,866

-542

-6.9%

11,60014,147-2,547-18.0%

Americas(*)

2,810

3,435

-625

-18.2%

8,400

6,368

+2,031+31.9%

Europe

946

979

-33

-3.4%

1,500

1,766

-266

-15.1%

12,361

13,122

-760

-5.8%

27,00026,748

+251

+0.9%

Japan

3,670

3,617

+52

+1.5%

8,000

6,992

+1,007+14.4%

Asia

3,079

2,980

+99

+3.3%

6,200

6,207

-7

-0.1%

Semiconductor

Scientific

Americas(*)

2,955

3,321

-366

-11.0%

6,600

7,048

-448

-6.4%

Europe

2,655

3,202

-546

-17.1%

6,200

6,499

-299

-4.6%

-1.4%

170,000

171,916-1,916

-1.1%

Total

79,98481,084-1,100Japan

28,943

27,889+1,053+3.8%

55,10052,148+2,951

+5.7%

Asia

19,92022,218-2,297-10.3%

40,70045,571-4,871-10.7%

Americas(*)

14,221

15,417-1,195-7.8%

33,50033,276

+223

+0.7%

Europe16,89815,560+1,338+8.6%

40,70040,919

-219

-0.5%

(Note) Americas includes all countries in North America and South America.

14

HORIBA, Ltd. (Consolidated)5. Consolidated Financial Results (Quarterly Comparison)

Net Sales
Operating Income

Amount: millions of yen

1Q Result

12/2016
2Q Result

2H Forecast

1Q

41,2705,172

38,713
2,606

90,0159,721

43,0496,982

12/2015 Result
2Q
3Q

38,034
4,035

39,2772,869

4Q

51,554
6,254

12.5%

6.7%

10.8%

16.2%

10.6%

7.3%

12.1%

5,100

2,496

9,402

6,666

4,050

2,736

6,186

Ordinary Income Ratio

12.4%

6.4%

10.4%

15.5%

10.6%

7.0%

12.0%

Net Income attributable to
Owners of Parent

3,181

946

6,671

4,078

2,487

2,133

4,582

Operating Income Ratio

Ordinary Income

Net Income Ratio

7.7%

2.4%

7.4%

9.5%

6.5%

5.4%

8.9%

US$
Euro

115.35127.15108.05121.89105.00115.00119.16134.00121.44134.20122.34136.02121.46133.02

6. Consolidated Segment Results (Quarterly Comparison)
Net Sales

Automotive
Process&Environmental

Medical
Semiconductor
Scientific
Total
Operating Income

Automotive
Process&Environmental

Medical
Semiconductor
ScientificTotal

1Q Result

2H Forecast

1Q

14,964
4,157
6,939
8,689
6,519
41,27013,164
3,641
6,860
9,205
5,841
38,71336,871
8,701
12,69917,104
14,63890,015

14,177
4,291
7,283
10,307
6,989
43,0491Q Result

12/2016
2Q Result

2H Forecast

1Q

12/2015 Result
2Q
3Q

4Q

1,124
666
828
2,329
222
5,172

(570)
200
764
2,153
57
2,606

3,445
432
906
4,216
719
9,721

2,227
652
820
2,752
530
6,982

762
295
489
2,414
73
4,035

2,762
593
532
1,808
557
6,254

7. Consolidated Orders and Backlog Information (Quarterly Comparison)
OrdersAutomotive
Process&Environmental

Medical
Semiconductor
Scientific
Total
Backlog

Automotive
Process&Environmental

Medical
Semiconductor
Scientific
Total

Amount: millions of yen
12/2015 Result
2Q
3Q
4Q

12/2016
2Q Result

1Q Result

12/2016
2Q Result

2H Forecast

12,316
3,447
7,654
9,563
5,623
38,605

14,777
4,111
6,465
9,659
5,358
40,372-

1Q Result

12/2016
2Q Result

2H Forecast

40,566
4,106
4,353
4,018
8,343
61,38742,180
4,576
3,958
4,467
7,863
63,046-

1Q

13,006
4,028
7,468
9,670
5,740
39,914

1Q

41,231
4,648
2,688
4,119
8,255
60,942

12,511
3,926
6,670
8,794
6,132
38,034

14,040
3,685
6,823
8,618
6,109
39,277

(552)
215
717
2,454
35
2,869

24,707
4,804
6,891
7,633
7,517
51,554

Amount: millions of yen
12/2015 Result
2Q
3Q
4Q

15,383
4,829
7,904
9,203
6,519
43,840

16,254
3,594
6,260
7,865
6,709
40,684

12/2015 Result
2Q
3Q

44,103
5,551
3,922
4,528
8,641
66,74751,675
5,460
3,359
3,775
9,242
73,513

16,246
4,159
7,170
6,999
7,517
42,093

4Q

43,215
4,815
3,638
3,140
9,243
64,052

Contact
Eita Uesugi, Corporate & Segment Strategy Division, HORIBA, Ltd.
2, Miyanohigashi-cho, Kisshoin, Minami-ku, Kyoto 601-8510, Japan
E-mail: eita.uesugi@horiba.com

15

HORIBA, Ltd. (Consolidated)