HORIBA, Ltd.

Financial Information

September 2016

© 2016 HORIBA, Ltd. All rights reserved.

1

Contents
 2016 First-Half Results 2016 Full Year Forecast
 Business Segment Outline
 Shareholder Return 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© 2016 HORIBA, Ltd. All rights reserved.

2

Contents
 2016 First-Half Results 2016 Full Year Forecast
 Business Segment Outline
 Shareholder Return Financial Data Corporate Profile© 2016 HORIBA, Ltd. All rights reserved.

3

Review of the First-Half of 2016
 Earthquakes in Kumamoto
 Brexit (U.K.’s decision to leave EU)
External
 Exhaust gas and fuel economy testing
Eventsproblems
 Appreciation of the yen “HORIBA BIWAKO E-HARBOR,” a new R&D/production base, opened in Shiga prefectureInternal
 First-half results with the first inclusion of HORIBA
EventsMIRA performance since its acquisition
 Changed a revenue recognition policy in Jan. 2016:
Shipment base  Delivery/installation base.
© 2016 HORIBA, Ltd. All rights reserved.

4

Review of the First-Half of 2016
The 2016 Kumamoto Earthquake (occurred on April 14 and 16)
HORIBA STEC, Co., Ltd., Aso Factory-Location:

Nishihara-mura (village), Kumamoto Prefecture-Major products:

Mass flow controller in the Semiconductor segment-Damage:

No damage on people but some damage to the building(Recorded an extraordinary loss of 925mil yen in 2Q)-Measures taken:

Gradually resumed operation since the end of April.
Shifted a part of production into the Kyoto factory.
Recovered the pre-earthquake production volume by early May.

-Current state:

Renewed a record-high level of the production in June.

(Photos as of July 30)
Aso Factory© 2016 HORIBA, Ltd. All rights reserved.

Production Line5

Summary of the First-Half Results of 2016
Decline in sales and profit.

P&L

B/S

 Year-on-year declines from the top line to the bottom line.
 The yen appreciation had a negative impact: Revenues down 4.4bn
yen; OP down 0.9bn yen Total assets were 215.0bn yen, down 17.0bn yen from the end of
2015, due to lower yen value caused by the yen appreciation
 Equity ratio: 56.2%

 Operating CF: Cash in 5.9bn yen, due to growth in profit

CF Investing CF: Cash out 5.0bn yen, due to capital spending Financial CF: Cash in 59mil yen, due to long-term borrowing© 2016 HORIBA, Ltd. All rights reserved.

FCF
+0.9
bn yen6

2016 First-Half Results(Billions of Yen)

2015
First-Half
Results

2016
Forecast
as of May 11

First-Half
Results

vs.2015

vs. Forecast
asof May 11

-1.1

-5.0

8.5

79.9
7.7

-3.2

-0.7

13.6%

10.0%

9.7%

-3.9p

-0.3p

Ordinary
profit

10.7

8.1

-3.1

-0.5

Net Income
attributable to
Owners of Parent

6.5

5.2

7.5
4.1

-2.4

-1.0

120.30134.10115.00125.00111.70124.52

-8.60
-9.58

-3.30
-0.48

Sales

81.0

85.0

O.P.

11.0

O.P. %

USD/JPY
EUR/JPY※2015 results are restated numbers. The same shall apply hereinafter© 2016 HORIBA, Ltd. All rights reserved.

7

2016 First-Half Results by Segment(Billions of Yen)

Sales
2015
First-Half

2016
First-Half

Operating profit
vs.
2015

2015
First-Half

2016
First-Half

vs.
2015

Auto

26.6

28.1

+1.4

2.9

0.5

-2.4

P&E

8.2

7.7

-0.4

0.9

0.8

-0.0

Medical

13.9

13.8

-0.1

1.3

1.5

+0.2

Semi

19.1

17.8

-1.2

5.1

4.4

-0.6

Scientific

13.1

12.3

-0.7

0.6

0.2

-0.3

Total

81.0

79.9

-1.1

11.0

7.7

-3.2

© 2016 HORIBA, Ltd. All rights reserved.

8

Contents
 2016 First-Half Results 2016 Full Year Forecast
 Business Segment Outline
 Shareholder Return Financial Data Corporate Profile© 2016 HORIBA, Ltd. All rights reserved.

9

Exchange rate forecast for 2016
(Yen)

2015

2016
Results

First-Half
Results

Forecast
as of May
11

1Q

2Q

SecondHalf
First-Half Forecast
Forecast

Results

USD

120.30115

115.35108.05111.70

108

105

EUR

134.10125127.15121.89124.52120

115

1 yen O.P. sensitivity for 2016 Forecast

USD
EUR© 2016 HORIBA, Ltd. All rights reserved.

175 million yen
22 million yen
10Market Overview for the Second-Half of 2016
Auto

Expect steady R&D investment by auto/auto parts manufacturers
thanks to a tightening of emission regulations in EU.

P&E

U.S.: Expect firm investment demand from petrochemical companies.
China: Temporary drop in demand is likely due to the new
regulation from 2016.

MedicalJapan: Continuing favorable sales to doctors in private practice.
Overseas: Sluggish economy in EU. Requires cautious monitoring of
demand.

Semi

Expect continuous investment by semiconductor manufacturers
in Asia.

ScientificJapan: Expect an increase in the private sector capital spending.
Overseas: Closely monitor government budgets and spendingin EU and the U.S.

© 2016 HORIBA, Ltd. All rights reserved.

11

Forecast for 2016
(Billions of Yen)

2015
Results

2016
Forecast
as of May 11

Revised
Forecast

vs. Forecast
as of May 11

Sales

171.9

175.0

170.0

Operating profit

20.1

17.5

17.5 No change

O.P. %

11.7%

10.0%

10.3%

+0.3p

Ordinary profit

19.6

16.5

17.0

+0.5

Net Income attributable to
Owners of Parent

13.2

10.8

10.8 No change

Net profit
per share(Yen)

315

256

256 No change

10.6%

8.1%

8.1% No change

ROE© 2016 HORIBA, Ltd. All rights reserved.

-5.0

12

Forecast for 2016 by segment(Billions of Yen)

Sales

O.P.

2015

2016

2016

vs.

2015

2016

2016

vs.

Resuts

Forecast asof May 11

Reviesd
Forecast

Forecast asof May 11

Resuts

Forecast asof May 11

Revised
Forecast

Forecast asof May 11

Auto

65.4

70.0

65.0

-5.0

5.2

5.0

4.0

-1.0

P&E

16.7

18.0

16.5

-1.5

1.7

1.5

1.3

-0.2

Medical

27.6

28.0

26.5

-1.5

2.5

2.0

2.5

+0.5

Semi

35.3

31.0

35.0

+4.0

9.4

7.5

8.7

+1.2

Scientific

26.7

28.0

27.0

-1.0

1.1

1.5

1.0

-0.5

171.9 175.0 170.0

-5.0

20.1

17.5 17.5 No change

Total© 2016 HORIBA, Ltd. All rights reserved.

13

Contents
 2016 First-Half Results 2016 Full Year Forecast
 Business Segment Outline
 Shareholder Return Financial Data Corporate Profile© 2016 HORIBA, Ltd. All rights reserved.

14

Auto

First-Half Results and Forecast for 2016
(Billions of Yen)
2016 First-half results
Sales(prior year)

2016 First-Half Results

EMS
MCT
ECT

Steady R&D investment by auto manufacturers EMS
MCT- Decrease in sales and profit in Japan and EU
ITS+ Incremental sales due to acquisition of MIRA
ECTSales to grow toward year-end- Downward revision. Expect a rebound in 2017
- Sales decrease in yen terms.

33.7

Sales

3.9 (-)

38.7

EMS

41.5 (39.7)

MCT

14.0 (19.7)

ITS

1.5 (1.6)ECT

8.0 (4.2* half year)

Sales and O.P. (Full-year)

O.P.

36.8

28.1
29.2
26.6
21.2 4.9
3.4
20.3
3.0
2.9 2.2
1.2
0.8
0.5 Forecast
13.1H 13.2H 14.1H 14.2H 15.1H 15.2H 16.1H 16.2H© 2016 HORIBA, Ltd. All rights reserved.

0.7 (0.7)

Sales(prior year)+

Sales and O.P. (Half-year)

5.0 (7.8)

2016 Full-year Forecast

2016 Full-Year Forecast

EMS
MCT
ECT

18.3 (18.2)+

Revised38.6 43.2
2.8
2011

49.5 55.0

4.4 4.2
2012

2013

5.8

Sales

O.P.

65.4 70.0 65.0
5.2

4.0
5.0
Forecast

2014

2015

2016

As of
May 11

2016
Revised15

Auto

EMS (Emission Measurement Systems) Business
EMS Sales (100mil yen)

EMS Business
Solid sales in Japan (automakers, parts makers)
Steady investment in JapanWLTP*(unified emission regulations by the UN)
Start in Sep. 2017 in EU and in 2018 in JapanRDE (Real Driving Emission; on-road test) regulation
Start in Sep. 2017 in EU*WLTP: Worldwide-harmonized Light-vehicles Test Procedure

500
397
400

374

415
380

300
200
2014

2015

2016
2016
Forecast Revised
Forecast

HORIBA BIWAKO E-HARBOR in full operation
Open:
Location:
Function:

May 2016
Shiga Prefecture- Development and production baseof gas measurement technologies- Automotive testing laboratory
E-LAB
Objectives: Improve profitability with production
Automotive testing laboratory
Automotive testing laboratory
efficiency; accelerate development© 2016 HORIBA, Ltd. All rights reserved.

16

Auto

46th Machinery Design Award’s Grand Prix

Portable Emission Measurement Systems(OBS-ONE Series)“Machinery Design Award”
 Prestigeous design award given to industrial
products
 Received the Minister of Economy, Trade andIndustry Award (Grand Prix)
for the first time
Portable Emission Measurement Systems© 2016 HORIBA, Ltd. All rights reserved.

17

Auto

MCT Business / ECT business

MCT Business (Mechatronics)

MCT Sales (100mil yen)・Sep. 2017: WLTP/RDE regulations to start in EU 300
Auto manufactures investment in 2016 is sluggish

・Strategic projects are increasing in China
Aim to receive orders for market share expansion
Profit is temporarily decreasing
From 2017

200

197

162

140

100
0
2014

Expand turn-key projects and pursue
synergies with the EMS business

ECT Business (Engineering/HORIBA MIRA)

2015

2016
Forecast

2016
Revised
Forecast

ECT Sales (100mil yen)・Sales decreased due to the strong yen/weak pound

100

100

80

・Brexit impacts to be closely monitored
Continue investment in HORIBA MIRA200

No change
in localcurrency

50

 Some investment projects will be carefully

Local
Currency
Million
Pond

Local
Currency
MillionPond

0

considered© 2016 HORIBA, Ltd. All rights reserved.

2016
Forecast

2016
Revised Forecast
18

P&E

First-Half Results and Forecast for 2016
(Billions of Yen)

2016 First-Half Results-

Weak sales of stack gas analyzers in Asia (mainly in China)-

Weak sales of water measurement systems in Japan

2016 Full-Year Forecast+ Expect firm investment by semiconductor manufacturer in Asia
- New regulation began in China in 2016

Sales may temporarily depress in the cautious market+ Water measurement systems to the government/private sectors
Sales and OP(Half-year)

6.3
0.3

Sales

0.9

Sales and OP(Full-year)OP

8.3 8.2 8.2 8.2 8.4 7.7

8.7

1.0 0.9 0.9 0.8 0.8 Forecast
0.4

13.1H 13.2H 14.1H 14.2H 15.1H 15.2H 16.1H 16.2H© 2016 HORIBA, Ltd. All rights reserved.

Aim for replacement demand

Revised

Sales

16.7
14.5 13.7 14.7 16.4

18.0
1.5

2.5
2011

OP

1.6

1.2

2012

2013

2.0

16.5
1.3

1.7
Forecast

2014

2015

2016

2016

As of
May11

Revised19

P&E

Shift from product sales to system sales

Expand business opportunity by providing business solutions
Case of the process analytical measurement business in Texas, U.S.
Oil refining/
petrochemicalplant makers

Target:Oil refining and petrochemical plant companies

HORIBA: Sales of systems that combine gas or water
analyzers
Sales:

Approximately 1.5bn yen (results in 2015)

Plan:

Relocate and expand
the base in Texas
Blueprint of new Texas baseCompletion in 2017

Measurement device sales  Also promote solution proposals withproducts in other markets
Water Infrastructure© 2016 HORIBA, Ltd. All rights reserved.

Environment Policy

Electronics/Energy

20China (Shanghai) environment regulations and
HORIBA’s plans

P&E

Revised anti-pollution act: VOC regulations
Details:

Regulations on source of VOC (Volatile Organic Compounds)

Start:

2016

Shanghai city preceded other regions in adopting the regulations.
Gradually expand industries to cover by Jan. 2017
The market takes wait-and-see attitude to the regulations.
Hydrocarbon Analyzer

has prepared the product line-up
to fully respond to VOC
regulations in Shanghai© 2016 HORIBA, Ltd. All rights reserved.

Application
THC, NMHC, and CH4 inambient air
21

Medical First-Half Results and Forecast for 2016
(Billions of Yen)

2016 First-Half Results-

Sales decrease in yen terms due to appreciation of yen+

Firm sales of Hematology and CRP analyzers in Japan

2016 Full year Forecast

Expect cost increase due to FDA approval expenses and new productpromotion expenses+ Firm sales of Hematology and CRP analyzers in Japan-

Sales and OP(Half-year)
50.0
40.0

13.1

Sales

Sales and OP(Full-year)

OP

12.6

20.0

1.0 1.3
10.0

0.9 0.7

1.3

1.2 1.5 0.9

23.4 22.4
3.1

2.0

2.4

2.4

2012

2013

Forecast

00.0

13.1H 13.2H 14.1H 14.2H 15.1H 15.2H 16.1H 16.2H© 2016 HORIBA, Ltd. All rights reserved.

OP

26.8 27.0 27.6 28.0 26.5

13.7 13.5 13.4 13.9 13.7 13.8

30.0

Sales

Revised

2011

1.7
2014

2.5
2015

2.5

Forecast

2016

2016

As of
May11

Revised22

Medical Accelerating product development
Accelerating developmentby sharing technology of HORIBA bases in Japan and France
HORIBA ABXin France

Technology
sharing

New brand “Yumizen” (medium-sized)
Launched in July 2015 (in EU)
Medium/large-sized hematology
analyzers
Target hospitals and diagnosis centers

HORIBA in Japan“Microsemi LC-767CRP” (small-sized)
Launched in March 2015 (in Japan)
The latest version of Blood cell + CRP
analyzers
Measure all items in 4 minutes.
Use of a small amount of blood makes
it optimal for diagnosis of children.

The first global
brand product“Yumizen”

Microsemi LC-767CRP© 2016 HORIBA, Ltd. All rights reserved.

23

Medical Expanding product line-up
Alliance with JEOL Ltd. to sell clinical chemistry devices in EU and U.S.
Outline: OEM sales of automatic biochemistry analyzers
Target: Hospitals and diagnosis centers in EU and U.S.
Release: In the EU market in 2016
Objective: Increase products for the biochemical test
market, so as to expand business in EU and U.S.

Alliance with Tosoh Corporation to sell HbA1c measuring devices in Japan
Outline: Sales of diabetes diagnosis devices(measurement of HbA1c)
Target: Clinics specialized in diabetes in Japan
Release: June 2016
Objective: Provide total solutions to diagnose diabetes bycombining small-sized glucose analyzers andautomated blood cell counters© 2016 HORIBA, Ltd. All rights reserved.

24

Semi

First-Half Results and Forecast for 2016
(Billions of Yen)

2016 First-Half Results

Sales decrease in yen terms due to the weaker U.S. dollar- Aso Factory’s damage from the Kumamoto earthquake in April 2016
+ Expansion in demand of investment from semiconductor manufacturers-

2016 Full-Year Forecast

Sales decrease in yen terms due to the weaker U.S. dollar+ Expect continuous investment by semiconductor manufacturers in Asia
+ Record-high monthly production volume of mass flow controllers in June-

Sales and OP(Half-year)

9.9
1.5

14.2 13.1 15.7
3.2 2.6

3.7

Sales

19.1

Sales and OP(Full-year)

OP

35.3

16.2

5.1 4.2

17.8 17.1
4.4 4.2
Forecast

13.1H 13.2H 14.1H 14.2H 15.1H 15.2H 16.1H 16.2H© 2016 HORIBA, Ltd. All rights reserved.

Sales

Revised

24.6
17.8
4.9
2011

2.2
2012

24.1

28.9

31.0

9.4
7.5

6.4
4.8
2013

OP

35.0
8.7

Forecast

2014

2015

2016

2016

As of
May11

Revised25

Semi

Aso Factory’s Investment for expansion/ Mass flow controller (MFC) market share

Investment in the Aso Factory
Outline: Expansion of HORIBA STEC’s Aso Factory
Amount: 2.2bn yen
Groundbreaking: December 2016
Purpose: Improve production capacity of MFC
The first company which made an investment agreementwith Kumamoto Prefecture after the earthquake

Signing ceremony with Nishihara-mura(at Kumamoto prefectural office on July 30)

Mass flow controller market trend and share
60%

HORIBA’s MFC
market share

50%

53%

40%
2010 2011 2012 2013 2014 2015 2016
(Jan.-May.)© 2016 HORIBA, Ltd. All rights reserved.

<Market trend>
Miniaturization, 3D-NAND, double-patterning
Brisk investment
Increase in demandfor etching devices<HORIBA>
Establish a supply system of MFC with embedded
cutting-edge “differential pressure sensors”
26

Scientific First-Half Results and Forecast for 2016
(Billions of Yen)

2016 First-Half Results-

Sales decrease in yen terms due to the appreciation of yen-

Weak sales to universities in U.S.
2016 Full-Year Forecast-

Sales decrease in yen terms due to the appreciation of yen+

Seek to explore new markets with customized products

Sales and OP(Half-year)

9.9
-0.1

Sales

Sales and OP(Full-year)OP

12.9 11.6 13.9 13.1 13.6 12.3

14.6

1.1

0.7

1.1
0.0

0.6 0.5

0.2 Forecast

13.1H 13.2H 14.1H 14.2H 15.1H 15.2H 16.1H 16.2H
Revised© 2016 HORIBA, Ltd. All rights reserved.

Sales

OP

25.6 26.7 28.0 27.0
22.9
22.0 20.4
1.5
1.4
1.2 1.1
1.0
0.9 0.9
Forecast
2011

2012

2013

2014

2015

2016

2016

As of
May11

Revised27

Scientific HORIBA products play an active part in space
HORIBA Gratings Business・ Core parts of spectroscopy devices
・ Top market share in the world・ Developed by HORIBA Jobin Yvon
(France)

Gratings’
consolidated
sales
3.4bn yen(2015 results)

Loaded on several space probes, incl. Juno which orbited Jupiter・ Has developed gratings for spaceexperiment for nearly a half century
・ Contributed to several countries’ spacedevelopment projects
・ HORIBA’s grating product has been loaded onover 20 space probes up to now
HORIBA’s products were loaded on NASA’s Juno space probe.
© 2016 HORIBA, Ltd. All rights reserved.

28

Water Focus on the measurement of “Water”
Integrate water measuring resources to
HORIBA Advanced Techno Ltd. (Kyoto)Jan. 2017
The water business of HORIBA, Ltd. will
be succeeded toTarget a broader market

20bn yen

HORIBA Advanced Techno(by simplified absorption-type company split) Develop products closer to the market
 Improve customer satisfaction<Existing target markets>
P&E: Factory wastewater; water and sewerage
Semi: Process management in factory
Scientific: Private labs and universities© 2016 HORIBA, Ltd. All rights reserved.

10bn yen(Expect) 2016

2017

2018

2019

2020

<Future target markets>
1) Reinforce the present strong areas
2) Target the entire water flow cycle:
Water supply ⇒ industrial processes⇒ wastewater ⇒ sewerage
29

Contents
 2016 First-Half Results 2016 Full Year Forecast
 Business Segment Outline
 Shareholder Return Financial Data Corporate Profile© 2016 HORIBA, Ltd. All rights reserved.

30

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 and Share buybacks- 2014 Results 67 yen per share- 2015 Results 70 yen per share + Share buybacks (0.99bn yen)
- 2016 Forecast 75 yen per share (No change from previous forecast)Per-share dividend (from 2005 to 2016 Forecast)

(Yen)

80
60
40
20
0

16
05'3

© 2016 HORIBA, Ltd. All rights reserved.

28

39

44

40

26
13

06'3

17

50

60

67

70

75
Recordhigh

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
(Forecast)31

Symbol of MLMAP2020

ONE STEP AHEAD - To create a next stage of HORIBA Step out of the existing business fields and pursue further expansion.
Take a new perspective and overcome technological/market/organization barriers.
Be flexible, think outside the box, and move up to the next stage.
© 2016 HORIBA, Ltd. All rights reserved.

32

© 2016 HORIBA, Ltd. All rights reserved.

33
33

Contents
 2016 First-Half Results 2016 Full Year Forecast
 Business Segment Outline
 Shareholder Return Financial Data Corporate Profile© 2016 HORIBA, Ltd. All rights reserved.

34

Changed the accounting policy for revenue recognition
2014(Original)(New)

Not installed
Not arrived

2015

2016

Not installed
Not arrived

Installed
Delivered

Installed
Delivered

Changed points:

Original Shipment baseNew
The date of delivery or installation based on contractual
arrangements
Applied timing:
January 2016
Reason for change: Triggered by the introduction of a new ERP implementation, toharmonize with international accounting standards.

© 2016 HORIBA, Ltd. All rights reserved.

As of February 10, 2016, audit procedures for this change has not finished yet

35

Operating profit analysis ( vs. 2015 )(Millions of Yen)

2016
Jan.-Jun.

2015
Jan.-Jun.

11,018Exchange
Increase Increase impact
for Gross
Cost ofSales
amount goods sales profit+3,370-3,477

Sales impact /-107
Decrease sales cost ratio-2,147

Exchange
impact for R&D cost
Expenses increase+1,202

Exchange impact
-945

-612

Other
expenses
increase

7,778-1,574
Expenses impact-2,186

Decrease of Operating profit -3,239© 2016 HORIBA, Ltd. All rights reserved.

36

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

2015

2016 Forecast
Previous

Results Forecast
PP&E

14.9

16.3

Revised
Forecast

vsPrevious
Forecast

2015
2016
First-Half First-Half

15.3

-1.0

6.8

5.6

0.6

0.2

Intangibles

1.4

0.7

0.7

No
changeCapital Investment

16.3

17.0

16.0

-1.0

7.4

5.8

6.1

7.0

6.5

-0.5

2.6

3.2

12.3

14.0

13.0

-1.0

5.9

6.3

7.2%

8.0%

7.6%

-0.4p

7.6%

7.9%

Depreciation
R&D(To net sales)© 2016 HORIBA, Ltd. All rights reserved.

37

Consolidated Cash Flows(Millions of yen)

2015
First-Half

2016
First-Half

Cash flows from operating activities

10,103

5,987-4,116

Cash flows from investing activities-7,974-5,071

2,902

Cash flows from financing activities-2,31359

2,373

Cash and cash equivalents at end ofyear

51,04747,719-3,328

Free cash flows

2,129

915

-1,214© 2016 HORIBA, Ltd. All rights reserved.

Variation

38

Impact of fluctuation in foreign exchange
Exchange rate impact
for 2016 Forecast

Exchange rate impact(2016 First-Half Results)

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

Sales
USD -412 millions of yen
EUR -334 millions of yen
GBP -71 millions of yen
Operating Profit
USD -175 millions of yen
EUR -22 millions of yen
GBP-1 millions of yen

Operating Profit

Total USD

EUR

Auto

-1,529

-303

-398

21

-76

35

P&E

-303

-126

-60

-105

-32

-18

Medical

-942

-260

-429

-127

-45

43

Semi

-1,002

-582

-51

-690

-476

-44

Scientific

-692

-349

-262

-43

-22

-4

-4,470 -1,623 -1,202

-945

-654

10

Total

© 2016 HORIBA, Ltd. All rights reserved.

Sales

Total USD

EUR

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

Total Loan Balance

24.1

28.0

Cash *
51.1

Cash *
49.2

Bonds15.0
Bonds15.0

44.7

44.4

Cash * Bonds15.0
47.8

Cash * Bonds
47.7 15.0

Long 16.8

Long
17.4

Long 2.2
Long 2.5
Short 6.6

2013
269％
60％

Short10.8

2014
254％
60％

Short 12.8

2015
242％
55％

Short 11.9

Bondredemption
in 2020

Borrowedfrom JBIC
15.1bn yen

2016 end of June
251％ Current ratio
56％ Capital ratio

・Conclusion of liquidation of receivable contract with 2 banks.
・Recent issuer rating : R&I [A-] (July 2016), JCR [A] (September 2015)
Cash*…Cash and Cash Equivalents at End of Period© 2016 HORIBA, Ltd. All rights reserved.

40

Contents
 2016 First-Half Results 2016 Full Year Forecast
 Business Segment Outline
 Shareholder Return Financial Data Corporate Profile© 2016 HORIBA, Ltd. All rights reserved.

41

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© 2016 HORIBA, Ltd. All rights reserved.

42

Business Segments
Automotive Test Systems
Emission Measurement Systems (EMS)
Mechatronics Devices (MCT)
Driving Control Systems (ITS)Engineering Consultancy & Testing (ECT)

Process & Environmental
Environmental Systems
Environmental Radiation Monitor
Environmental Regulation & Process Business

Medical
In-Vitro Diagnostic (IVD) Systems
Integration of HORIBA ABX’s
Technology & Marketing Know-How

Semiconductor
Mass Flow Controller
In-situ Analysis
Synergy among HORIBA HQ, HORIBA STEC
and HORIBA Jobin Yvon’s Technologies

Scientific
Synergy of HORIBA and
HORIBA Jobin Yvon’s Technologies
Raman, Grating, and Fluorescence© 2016 HORIBA, Ltd. All rights reserved.

43

Well Balanced Business Operation -Five Business SegmentsBusiness & Geographic Composition of Sales(2015)

Sales 170.8 Billions of Yen
P&E
Scientific27.016.4

Euro(16%)(11%)

Scientific
25.6
Semiconductor

Automotive

35.3

(37%)

(17%)

64.2

Semi

Medical(19%)

Medical
P&E

(16%)

(10%)

27.4

Japan
31%

Asia
26%

27.0
16.7
(17%)

(Billions of Yen)
© 2016 HORIBA, Ltd. All rights reserved.

EU
24%
America
19%

(21%)

28.9

JPY

USD
Reduce Country Risk and Exchange Risk
44

Global Market Share
Emission Measurement Systems

80%

Stack Gas Analyzers

20%

Automatic Blood Cell Counterplus CRP

100%(Only in Japan)

Mass Flow Controllers

55%

Raman Spectrophotometers

30%

Gratings

35%※Market shares quoted are estimates by HORIBA.
© 2016 HORIBA, Ltd. All rights reserved.

45

HORIBA Worldwide
Sales of FY2015: 170.8 BJPYThe Number of Group Companies by region(As of December 31, 2015)

America
EuropeAsia
Total© 2016 HORIBA, Ltd. All rights reserved.

923
17 (4 in Japan, including HORIBA, Ltd.)
49
46

Employees by Region
Other Americas
3%

2015年12月31日現在

Other Europe
2%

6,831

USA
11%
Germany
8%

Japan
38%

UK
10%

Total Asia: 3,545

52%
Total Europe: 2,356

34%France14%© 2016 HORIBA, Ltd. All rights reserved.

従業員数
Total Numberof Employees

Other Asia
14%

Total Americas: 930

14%47© 2016 HORIBA, Ltd. All rights reserved.

48
48