Summary of Consolidated Financial Statements for the Nine Months Ended September 30, 2016
(Japanese GAAP)
November 7, 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(Figures have been rounded down to the nearest million yen)

1. Consolidated Results for the Nine Months Ended September 30, 2016 (January 1, 2016 - September 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%

116,901
10,659 -23.2
10,341 -23.1
Nine months ended 9/30/16-2.9
13,453Nine months ended 9/30/15
120,362
13,887―――(Note) Comprehensive Income: FY2016Q3 -1,467 million yen (-%), FY2015Q3 5,577 million yen (-%)

Millions of yen

7,281
8,699

-16.3
―

%

Millions of yen%

Yen

Net Income per Share(Diluted)
Yen

172.88206.40172.12205.49Net Income per Share

Nine months ended 9/30/16
Nine months ended 9/30/15

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 nine months ended September 30, 2015
versus the same period of previous year is not released because retrospective restatement is not applied for the nine months
ended September 30, 2014.
(2) Consolidated Financial Position
Total Assets

Shareholders'Equity Ratio

Net Assets

Millions of yen

Millions of yen%

As of 9/30/16
219,609
122,87655.7
232,121
127,243
54.6
As of 12/31/15(Reference) Net assets excluding subscription rights to shares and non-controlling interests:
As of September 30, 2016: 122,367 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)

Net Sales

Full year

Operating Income

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: None1

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 nine months ended FY2016 and FY2015

September 30,2016
42,532,752
402,948'December 31, 2015
42,532,752
439,021Jan. - Sep. 2016
42,118,411

Jan. - Sep. 2015
42,150,489

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
With regard to the global economy in the nine months ended September 30, 2016 (the first three quarters), the UnitedStates continued its economic recovery due to an increase in consumption supported by an improvement in theemployment environment and other factors. In Europe, while geopolitical risks and the U.K.’s decision to leave the EU(Brexit) have led to uncertainty over the future outlook, the economy is recovering moderately, mainly in Germany. In Asia,
China showed some signs of recovery, after the continued economic slowdown, and India and other countries experienced
a gradual recovery, mainly in domestic demand.
In Japan, although some cautiousness was seen in business sentiment, the economy continued its moderate recovery
trend with a rise in corporate capital investment and a steady improvement in the employment and wage environment.
During the period from January 2016 to September 2016, the average foreign exchange rates were 108.57 yen against the
U.S. dollar and 121.06 yen against the euro, representing appreciation of 11.4% against the U.S. dollar and 11.3% against
the euro compared to the same period of the previous year.
Under these conditions, HORIBA, Ltd. (“the Company”) and its consolidated subsidiaries (together “the HORIBA Group” or“HORIBA” as a consolidated group) recorded a 2.9% year-on-year decrease in overall sales to 116,901 million yen, mainly
due to the impact of the appreciation of the yen, which reduced overseas sales in yen terms, although sales increased as aresult of production expansion by semiconductor production equipment manufacturers, and the acquisition of MIRA Ltd.
(present HORIBA MIRA Ltd.) in the U.K. in July 2015.
In terms of profits, due to reasons such as the impacts of the appreciation of the yen and a sales decline in the Automotive
Test Systems segment, overall operating income decreased by 23.2% year-on-year to 10,659 million yen and ordinary
income decreased by 23.1% to 10,341 million yen. Net income attributable to owners of parent decreased by 16.3%
year-on-year to 7,281 million yen, due to a decrease in ordinary income and extraordinary losses related to the damage
caused by the Kumamoto Earthquakes, despite the alleviation on tax burden.
The operating results of each business segment are summarized as follows.
(Automotive Test Systems)
Segment sales decreased by 3.2% year-on-year to 39,426 million yen, due to the impacts of the appreciation of the yen,which decreased overseas sales in yen terms, and other factors, despite of the sales increase in emission measurement
systems in Japan and the sales contribution of HORIBA MIRA, Ltd. (U.K.), which was acquired in July 2015. Operating
income decreased by 97.4% to 63 million yen, which was attributable to the sales decline and an increase in depreciation
expenses and other expenses that are related to the full-scale operation of HORIBA BIWAKO E-HARBOR, the new factoryin 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 11,809 million yen, down 0.8% year-on-year, and operating income decreased by 3.5% to 1,122 million yen.
(Medical-Diagnostic Instruments & Systems)
Despite solid sales of blood cell testing instruments in Asia, a decrease in sales in Europe and the Americas expressed inyen due to the yen’s appreciation caused segment sales’ decline by 4.8% year-on-year to 19,775 million yen. In terms of
profits, as sales of the Hematology and C-Reactive Protein (CRP) analyzers, which were launched in Japan last year, andsales in Asia were robust, segment operating income increased by 9.6% to 2,221 million yen.

3

HORIBA, Ltd. (Consolidated)

(Semiconductor Instruments & Systems)
The yen’s appreciation against foreign currency resulted in a decrease in overseas sales in yen terms. As semiconductor
manufacturers’ capital investment gradually increased from the beginning of 2016 and has stayed at a high level throughthese nine months, sales to semiconductor production equipment manufacturers have been favorable. As a result,segment sales increased by 0.1% year-on-year to 27,760 million yen. Operating income, however, fell by 6.2% to 7,149
million yen, mainly due to a decrease in sales in the Americas expressed in yen as a result of the yen’s appreciation, and a
one-time production adjustment triggered by the Kumamoto Earthquakes in April.
(Scientific Instruments & Systems)
While sales in Japan and Asia were robust, the yen’s appreciation resulted in a decrease in sales in Europe and theAmericas in yen terms and sales to universities and other customers fell in the Americas. Consequently, segment sales
decreased by 5.7% year-on-year to 18,128 million yen and operating income decreased by 84.0% to 102 million yen.
(2) Information Concerning Consolidated Earnings Forecasts for FY2016
Consolidated earnings forecasts for the current fiscal year are as follows. The full-year exchange rate forecast has beenchanged from 108 yen to 107 yen against the U.S. dollar. The forecast against the euro remains at 120 yen.
Consolidated forecast for the full FY2016(Amount: millions of yen)Previous

Revised

Forecast

Forecast(As of Aug. 3)(As of Nov. 7)

Net sales

170,000

170,000-

Operating income

17,50017,500-Ordinary income

17,00017,000-10,80010,800-Net income attributableto owners of parent

ChangesWith respect to the consolidated earnings forecasts for the current fiscal year, after taking into consideration the operating
performance and order trends up to the end of the third quarter, net sales remains the same as former at 170,000 million
yen, operating income at 17,500 million yen, ordinary income at 17,000 million yen, and net income attributable to ownersof parent at 10,800 million yen respectively.
Consolidated forecast for the full FY2016 by segment
Net sales(Amount: millions of yen)Previous

Revised

Forecast

Forecast(As of Aug. 3)(As of Nov. 7)

65,00064,000-1,00016,50016,500-

Medical26,50026,500-

Semiconductor

35,00037,000Scientific27,000Total

170,000

Automotive
Process &Environmental

Operating income(Amount: millions of yen)Previous

Revised

Forecast

Forecast(As of Aug. 3)(As of Nov. 7)

4,000

3,500

-500

1,300

1,500

+200

Medical

2,500

2,700

+200

+2,000

Semiconductor

8,700

9,000

+300

26,000-1,000Scientific

1,000

800

-200

170,000-

Total

17,50017,500-Changes

Automotive
Process &Environmental

4

Changes

HORIBA, Ltd. (Consolidated)By business segment, HORIBA has revised down its sales forecasts for both the Automotive Test Systems segment andthe Scientific Instruments & Systems segment by 1,000 million yen but has revised up its sales forecast for the
Semiconductor Instruments & Systems segment by 2,000 million yen.
In terms of operating income by business segment, HORIBA has revised down its forecast by 500 million yen for theAutomotive Test Systems segment and by 200 million yen for the Scientific Instruments & Systems segment, reflecting thedownward revisions to their sales forecasts. In contrast, operating income forecast for the Semiconductor Instruments &Systems segment has been raised by 300 million yen, reflecting the upward revision to its sales forecast. Given theoperating performance up to the end of the third quarter, operating income forecasts for the Process & Environmental
Instruments & Systems segment and the Medical-Diagnostic Instruments & Systems segment have been revised up by
200 million yen both.
The dividend forecast for the fiscal year has remained unchanged.
(Note) The forecasts of dividend amount and business performance have been made based on information available as of November 7,
2016. However, due to the existence of various uncertainties, it is possible that actual performance would vary considerably from theforecasts. 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; delays in timing of revenue recognition;
laws and regulations; and other business 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 shortage of supply of raw materials and fluctuation in raw material prices
Financial risks:
Impairment loss on securities and fixed assets; reversal of deferred tax assets resulting from changes in tax 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.
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 three quarters of fiscal year 2015 increased by 3,492 million yen, and operating income
increased by 2,071 million yen, ordinary income and income before income taxes increased by 2,068 million yen,respectively, as compared with the figures prior to the retrospective application. The net assets at the beginning of theprevious 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.

5

HORIBA, Ltd. (Consolidated)

(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 third quarter 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 10
million yen, while income taxes (deferred), net unrealized holding gains on securities, and remeasurements of defined
benefit plans increased by 65 million yen, 50 million yen, and 4 million yen, respectively.
(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.

6

HORIBA, Ltd. (Consolidated)

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 third quarter(As of September 30,
2016)

Cash and bank deposits

43,922

51,567

Trade notes and accounts receivable

50,12839,449Marketable securities

6,927

1,264

Merchandise and finished goods

15,696

14,952Work in process

13,707

15,930Raw materials and supplies

10,786

10,439Deferred tax assets

5,140

4,132

Other current assets

6,584

7,066

Allowance for doubtful accounts

(789)

(634)

152,104

144,168

Buildings and structures, net

31,28828,627

Machinery, equipment and vehicles, net

6,468

6,468

Land

10,647

11,497

Construction in progress

4,739

5,740

Other property, plant and equipment, net

3,834

3,421

Total Property, Plant and Equipment

56,97855,755

Goodwill

576

389

Software

4,851

4,198

Other intangibles

4,870

3,278

Total Intangibles

10,2987,866

Investment securities

8,335

7,605

Deferred tax assets

1,671

1,495

Other investments and other assets

2,783

2,776

(50)

(59)

12,73911,81880,01775,440232,121219,609

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 third quarter(As of September 30,
2016)

Trade notes and accounts payable

17,675

17,342

Short-term loans payable

12,87912,507

Accounts payable - other

14,759

9,863

Accrued income taxes

3,796

900

Advances Received

10,831

9,868

Deferred tax liabilities

91

71

Accrued bonuses to employees

948

1,748

Accrued bonuses to directors and corporate auditors

63

414

Reserve for product warranty

1,651

1,525

Provision for loss on disaster-

480

Other current liabilities

3,628

4,463

Total Current Liabilities

66,32559,184

Corporate bonds

15,00015,000Long-term loans payable

16,826

17,301

Deferred tax liabilities

1,181

585

Net defined benefit liability

1,947

1,672

Provision for loss on dissolution of the employees’
pension fund

1,267

1,300

Other non-current liabilities

2,329

1,687

Total Non-Current Liabilities

38,55237,547

104,878

96,732

Common stock

12,011

12,011

Capital surplus

18,717

18,717Retained earnings

93,232

97,426

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

126,566

2,624

2,254

(0)

-

Foreign currency translation adjustments

1,852(6,520)Remeasurements of defined benefit plans

66

66

4,543

(4,199)

469

466

0

43

127,243

122,876

232,121219,609

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 third quarter

FY2016 third quarter(Nine months ended
September 30, 2015)(Nine months ended
September 30, 2016)

Net Sales

120,362

116,901

Cost of Sales

67,91968,329Gross Income

52,443

48,572

Selling, General and Administrative Expenses

38,55537,912

Operating Income

13,887

10,659Interest income

211

110

Dividend income

91

89

Non-Operating Income

Subsidy income

27

107

Other

229

163

Total non-operating income

561

471

598

385

Foreign exchange losses

224

341

Other

171

62

Total non-operating expense

995

789

13,453

10,341

11

5

Non-Operating Expense
Interest expense

Ordinary Income
Extraordinary Gain
Gain on sales of fixed assets
Gain on sales of investment securities-

0Gain on sales of subsidiaries and affiliates' stocks-

240

Reversal of provision for compensation losses
Reversal of provision for loss on dissolution of theemployees'pension fund

2

-

439

-

Reversal of foreign currency translation adjustment-

Total extraordinary gain

112

453

359

Loss on sales of fixed assets

60Loss on disposal of fixed assets

5170

Impairment loss

94

Extraordinary Loss

Provision for loss on dissolution of the employees' pension fundBusiness structure improvement expenses

-

177

-

940

114

Loss on disaster
Total extraordinary loss

-

220

1,287

Income before Income Taxes

13,686

9,413

Income taxes (current)

4,763

1,517

Income taxes (deferred)

222

612

4,986

2,129

8,699

7,283

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

Net Income attributable to Owners of Parent

8,699

10

1
7,281

HORIBA, Ltd. (Consolidated)

(Consolidated Statements of Comprehensive Income)Amount: millions of yen
FY2016 third quarter(Nine months ended
September 30, 2016)

FY2015 third quarter(Nine months ended
September 30, 2015)
8,699

7,283

Net unrealized holding gains on securities

119

(369)

Deferred gains or losses on hedges

(18)

0

Foreign currency translation adjustments(3,235)(8,380)Remeasurements of defined benefit plans

11

(0)

(3,122)(8,750)5,577(1,467)

5,577(1,460)(0)(6)

Net Income
Other Comprehensive Income

Total other comprehensive income
Comprehensive Income(Breakdown of comprehensive income)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

11

HORIBA, Ltd. (Consolidated)4. Supplemental Information
HORIBA, Ltd. Financial Highlights for the Nine Months Ended September 30, 2016
1. Consolidated Financial Results

Amount: millions of yen

12/2016
Result12/2015
Result3Q (9Months)

3Q (9Months)

AmountNet Sales

116,901

120,362-3,460Operating Income

10,65913,887-3,228Operating Income Ratio

9.1%

11.5%

-2.4P

10,341

13,453-3,111

Ordinary Income Ratio

8.8%

11.2%

-2.4P

Net Income attributableto Owners of Parent

7,281

8,699

-1,418Net Income Ratio

6.2%

7.2%

US$

108.57Euro

121.06

Ordinary Income

12/2016
Forecast

12/2015
ResultFull year

Full year

Amount-2.9%

170,000

171,916-1,916-1.1%-23.2%

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

-1.0P

6.4%

7.7%

-1.3P

120.98-12.41107.00121.10-14.10134.74-13.68120.00134.31-14.31

12/2016
Forecast

12/2015
ResultFull year

Full year

AmountChangesRatio-23.1%-16.3%

2. Consolidated Segment Results

ChangesRatio-13.4%-18.7%

Amount: millions of yen

12/2016
Result12/2015
Result3Q (9Months)

3Q (9Months)

Automotive

39,426

40,729-1,302-3.2%

64,00065,436-1,436-2.2%

Process&Environmental

11,80911,904-94-0.8%

16,50016,708

-208

-1.2%

Medical19,775

20,777-1,001-4.8%

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

Semiconductor

27,76027,720+40+0.1%

37,00035,353+1,646+4.7%

Scientific

18,12819,231-1,102-5.7%

26,00026,748

-748

-2.8%

Total

116,901

120,362-3,460-2.9%

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

Operating Income

12/2016
Result12/2015
Result3Q (9Months)

3Q (9Months)

63

Process&Environmental

Net Sales

ChangesAmountRatio

Changes

Changes
Ratio

12/2016
Forecast

12/2015
ResultFull year

Full year

AmountRatio

ChangesAmount

Ratio

2,438

-2,374-97.4%

3,500

5,200

-1,700-32.7%

1,122

1,162

-40

-3.5%

1,500

1,756

-256

-14.6%

Medical

2,221

2,026

+195

+9.6%

2,700

2,558

+141

+5.5%

Semiconductor

7,149

7,621

-471

-6.2%

9,000

9,429

-429

-4.6%

Scientific

102

639

-536

-84.0%

800

1,197

-397

-33.2%

10,65913,887-3,228-23.2%

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

Automotive

Total(Note) The Company and its domestic consolidated subsidiaries had formerly recognized revenue mainly on ashipping 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 theterms and conditions of contracts. Accordingly the amounts of fiscal year ended December 31, 2015 are calculated
based on the retrospectively-restated amounts.

12

HORIBA, Ltd. (Consolidated)3. Consolidated Segment Sales by Destination
12/2016
Result12/2015
Result3Q (9Months) 3Q (9Months)

Automotive

Amount: millions of yen
Changes

12/2016
Forecast

12/2015
ResultChangesAmountRatio

Full year

Full year

AmountRatio

39,426

40,729-1,302-3.2%

64,00065,436-1,436

-2.2%

Japan

13,757

13,225

+532

+4.0%

19,30017,782+1,517

+8.5%

Asia

8,730

10,746-2,016-18.8%

15,40017,371-1,971-11.4%

Americas(*)

5,657

6,262

-604

-9.7%

9,600

10,477

-877

-8.4%
-0.5%

Europe11,281

10,494

+786

+7.5%

19,70019,805-105

Process&Environmental

11,80911,904-94-0.8%

16,50016,708

-208

-1.2%

Japan

6,532

6,055

+477

+7.9%

9,000

8,352

+647

+7.7%

Asia

1,535

2,378

-843

-35.5%

2,700

3,517

-817

-23.2%

Americas(*)

2,390

1,850

+540

+29.2%

3,000

2,567

+432

+16.8%

Europe

1,351

1,619

-268

-16.6%

1,800

2,270

-470

-20.7%

Medical19,775

20,777-1,001-4.8%

26,50027,669-1,169

-4.2%

Japan

4,393

4,676

-283

-6.1%

6,000

5,950

+49

+0.8%

Asia

3,711

3,276

+434

+13.3%

5,000

4,326

+673

+15.6%

Americas(*)

4,766

5,043

-277

-5.5%

6,100

6,813

-713

-10.5%

Europe

6,904

7,780

-875

-11.3%

9,400

10,578-1,178-11.1%

27,76027,720+40+0.1%

37,00035,353+1,646

+4.7%

Japan

10,707

9,634+1,073+11.1%

14,80013,071+1,728+13.2%

Asia

11,753

11,395

+357

+3.1%

15,50014,147+1,352+9.6%

Americas(*)

3,839

5,218

-1,378-26.4%

5,000

6,368

-1,368-21.5%

Europe

1,460

1,471

-11

-0.8%

1,700

1,766

-66

-3.8%

18,12819,231-1,102-5.7%

26,00026,748

-748

-2.8%

Japan

5,484

5,079

+404

+8.0%

8,000

6,992

+1,007+14.4%

Asia

4,527

4,272

+254

+6.0%

5,900

6,207

-307

-5.0%

Americas(*)

4,423

5,252

-829

-15.8%

6,300

7,048

-748

-10.6%

Europe

3,693

4,625

-932

-20.2%

5,800

6,499

-699

-10.8%

116,901

120,362-3,460-2.9%

170,000

171,916-1,916

-1.1%

Japan

40,87538,671+2,203+5.7%

57,10052,148+4,951

+9.5%

Asia

30,25732,070-1,812-5.7%

44,50045,571-1,071-2.4%

Americas(*)

21,077

23,627-2,550-10.8%

30,00033,276-3,276-9.8%

Europe24,69025,992-1,301-5.0%

38,40040,919-2,519-6.2%

Semiconductor

Scientific

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

13

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

Amount: millions of yen

1Q Result

12/2016
2Q Result
3Q Result

4Q Forecast

1Q

Net Sales
Operating Income

41,2705,172

38,713
2,606

36,9172,880

53,0986,840

43,0496,982

38,034
4,035

39,2772,869

51,554
6,254

Operating Income Ratio

12.5%

6.7%

7.8%

12.9%

16.2%

10.6%

7.3%

12.1%

Ordinary Income

12/2015 Result
2Q
3Q

4Q

5,100

2,496

2,744

6,658

6,666

4,050

2,736

6,186

Ordinary Income Ratio

12.4%

6.4%

7.4%

12.5%

15.5%

10.6%

7.0%

12.0%

Net Income attributableto Owners of Parent

3,181

946

3,153

3,518

4,078

2,487

2,133

4,582

Net Income Ratio

7.7%

2.4%

8.5%

6.6%

9.5%

6.5%

5.4%

8.9%

US$
Euro

115.35127.15108.05121.89102.31
114.14102.00115.00119.16134.00121.44134.20122.34136.02121.46133.02

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

12/2016
2Q Result
3Q Result

14,964
4,157
6,939
8,689
6,519
41,27013,164
3,641
6,860
9,205
5,841
38,713

1Q Result

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

4Q Forecast

1Q

11,298
4,010
5,975
9,865
5,767
36,917

24,573
4,690
6,724
9,239
7,871
53,09814,177
4,291
7,283
10,307
6,989
43,04912/2016
2Q Result
3Q Result

4Q Forecast

1Q

12/2015 Result
2Q
3Q

4Q

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

1Q

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

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

(490)
254
628
2,666
(177)
2,880

3,436
377
478
1,850
697
6,840

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

1Q Result

12/2016
2Q Result
3Q Result

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

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

18,6383,684
5,600
10,477
5,858
44,259-1Q Result

12/2016
2Q Result
3Q Result

4Q Forecast

40,566
4,106
4,353
4,018
8,343
61,38742,180
4,576
3,958
4,467
7,863
63,04649,520
4,249
3,583
5,080
7,955
70,3884Q Forecast-

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

15,383
4,829
7,904
9,203
6,519
43,84014,040
3,685
6,823
8,618
6,109
39,277

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

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
73,51324,707
4,804
6,891
7,633
7,517
51,554

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

14

HORIBA, Ltd. (Consolidated)