HORIBA, Ltd.

Financial Information

February 2016

© 2016 HORIBA, Ltd. All rights reserved.

1

Contents
 Review
previous MLMAP [2011-2015] / 2015 Results MLMAP2020 [2016-2020]
 Business segment outline
 Shareholder return
MLMAP : Mid-Long Term Management Plan

 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
 Review
previous MLMAP [2011-2015] / 2015 Results MLMAP2020 [2016-2020]
 Business segment outline
 Shareholder return
MLMAP : Mid-Long Term Management Plan

 Financial Data Corporate profile© 2016 HORIBA, Ltd. All rights reserved.

3

2015 full year results(Billions of yen)

2015

2014
Results

MLMAP
2015

Results

vs.
2014

vs.
MLMAP2015

Sales

153.0

150.0

170.8

+17.8

+20.8

Operating profit

17.2

20.0

19.3

+2.1

-0.7

11.2% 13% or more

11.3%

+0.1p

-

18.8
12.8

+2.3

-1.2

+2.2

+0.8

305

+55

+22

10.2%

+1.3p

-

O.P. %
Ordinary profit

16.4

20.0

Net profit

10.5

12.0

Net profit
per share(Yen)ROE© 2016 HORIBA, Ltd. All rights reserved.

250
283
8.9% 11% or more

→ Target achieved→ Record high 4

Results for 2015 by segment(Billions of yen)

Sales
2014
Resuts

2015
MLMAP

Auto

55.0

46.0

P&E

16.4

Medical

MLMAP

2014
Resuts

2015
MLMAP

2015
Resuts64.2+9.2 +18.2

5.8

5.0

4.4

-1.3

-0.6

16.0

16.7

+0.2

+0.7

2.0

1.5

1.7

-0.2

+0.2

27.0

34.0

27.4

+0.4

-6.6

1.7

6.0

2.4

+0.6

-3.6

Semi

28.9

30.0

35.3

+6.4

+5.3

6.4

6.0

9.4

+2.9

+3.4

Scientific

25.6

24.0

27.0

+1.4

+3.0

1.2

1.5

1.3

+0.1

-0.2

170.8 +17.8 +20.8

17.2

20.0

19.3

+2.1

-0.7

Total

153.0 150.0© 2016 HORIBA, Ltd. All rights reserved.

2015
ResutsOperating profit
vs.
2014

vs.

→ Target achieved in the period

vs.
2014

vs.
MLMAP

→ Record high 5

Trend of 5 years results by segment(Billions of yen)

Sales (2011 to 2015)
Mid-Long Term Management Plan target(Announced in Feb. 2011)

64.2
55.0
49.5

46.0

43.2
38.6

35.3
30.0

Semi

Scientific

2013

2012

2011

14.5 13.714.7

2015

16.416.716.0
2015

2013

2012

2015

2014

2013

2012

2011

2015

2014

2013

2012

2011

2015

2014

2013

2012

2011

© 2016 HORIBA, Ltd. All rights reserved.

Medical

24.0

22.9
22.020.4

17.8

Auto

27.0

25.6

24.1 28.9

2014

24.6

2011

26.827.027.4
23.422.4

2014

34.0

P&E
6

Trend of 5 years results by segment(Billions of yen)

Operating profit (2011 to 2015)
9.4

Mid-Long Term
Management Plan target(Announced in Feb. 2011)
6.4

5.8

6.0

6.0

4.9

5.0

4.8

4.4

4.4 4.2

3.1

Auto© 2016 HORIBA, Ltd. All rights reserved.

Medical

Semi

Scientific

2.0
1.2

2014

1.6
2013

2015

2014

2013

2012

1.4 0.9 0.9 1.2 1.3

2011

2015

2014

2013

2012

2011

1.5
2015

2014

2013

2012

2011

2015

2014

2013

2012

2011

1.7

1.7 1.5
2015

2.5

2.2

2012

2.4

2.4 2.4

2011

2.8

P&E
7

15-year business results(Billions of yen)

[Sales] Greatly exceeded the plan targets[O.P.] Close to the plan targets. Shortfall due to the large M&A andinvestment in PP&E in 2015
[N.P.] Achieved the plan targets (Renewed record-highs in sales and profits)
Sales

Net profit

Operating profit

170.8
144.2
105.6

85.0 92.4
78.5
74.4
11.2
9.3
6.8
5.4
3.5
2.5
2.0
0.7
6.4
-1.0

116.0

16.5

11.7

6.5

134.2
104.5

118.5 123.4 117.6
12.2

10.9

14.9
11.7

5.1

8.6
6.0

7.9
3.1

8.6

7.3

138.1

153.0
17.2

19.3

13.7

8.9

10.5

12.8

02'3 03'3 04'3 05'3 06'3 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

2001-2005
2001-2005© 2016 HORIBA, Ltd. All rights reserved.

2006-20102011-20158

Achievements of MLMAP2015
 Fully implemented “One Company Matrix management”

Achievements

 Fully implemented shared services in five segments and regions
 Fully implemented ERP (Enterprise Resource Planning) systems in allgroup companies.

 Invested in highly profitable businesses
 Invested in Automotive Test Systems business (Biwako Factory; MIRA) Strengthened R&D and production in Semiconductor business M&A in the U.S. (Process measurement business [P&E]; Fluorescence
spectroscopy business [Scientific]） Accelerated global product development and production
 Expanded capacity of reagent plants (China, India, and Brazil)

Challenges

 Improve profitability of Medical business Speed up profitability improvement of the acquired businesses Deal with higher depreciation caused by large-scale investments© 2016 HORIBA, Ltd. All rights reserved.

9

Contents
 Review
previous MLMAP [2011-2015] / 2015 Results MLMAP2020 [2016-2020]
 Business segment outline
 Shareholder return Financial Data Corporate profile© 2016 HORIBA, Ltd. All rights reserved.

10

Major policies
MLMAP2020 “One Step Ahead”●Applying HORIBA Technology in new businessfields and new markets and becoming a true
partner in analysis and measurement●Accelerating corporate growth by its Super Dream
Team based on balanced management, matrixorganization, and HORIBA Stained Glass Project●Improving capital efficiency to maximize corporatevalue© 2016 HORIBA, Ltd. All rights reserved.

11

Numerical targets
Sales

250.0 billion yen

Operating profit

30.0 billion yen (OP% :12%)

Net profit

20.0 billion yen

EPS

475 yen

ROE

10% or more

Total return

30% target

Exchange rate : USD = 115 yen, Euro = 125 yen© 2016 HORIBA, Ltd. All rights reserved.

12

Numerical targets (vs 2015, vs 2016)(Billions of yen)

2015

2016

Results(Restated)

Forecast

MLMAP2020
Plan

Growth ratiovs. 2015

Growth ratio
vs.2016

Sales

172.3

175.0

250.0

+45%

+43%

Operatingprofit

20.2

17.5

30.0

+49%

+71%

OP%

11.7%

10.0%

12.0%

+0.3p

+2.0p

Ordinary profit

19.8

16.5

29.0

+46%

+76%

Net profit

13.5

10.8

20.0

+48%

+85%

EPS (Yen)

320

256

475

+48%

+85%

ROE

10.7%

8.1% 10% or more--

© 2016 HORIBA, Ltd. All rights reserved.

13

Numerical targets (by Segment)(Billions of yen)

Sales
2015

2016

MLMAP2020

Results

Forecast

Plan

Auto

68.5

P&E

Operating profit
2015

2016

vs 2015 vs 2016

Results

Forecast

70.0

100.0 +46% +43%

5.2

5.0

10.0

+92% +100%

16.7

18.0

25.0 +50% +39%

1.8

1.5

2.5

+39% +67%

Medical

27.7

28.0

40.0 +44% +43%

2.6

2.0

4.0

+54% +100%

Semi

35.4

31.0

50.0 +41% +61%

9.4

7.5

10.0

+6% +33%

Scientific

26.7

28.0

35.0 +31% +25%

1.2

1.5

172.3 175.0

250.0 +45% +43%

20.2

17.5

Total

Growth ratio

Growth ratio

MLMAP2020 Growth ratioPlanvs 2015Growth ratiovs 2016

3.5 +192% +133%
30.0+49% +71%

2015 results are restated numbers.
© 2016 HORIBA, Ltd. All rights reserved.

14

Business results in 20 years(Billions of yen)

Continual growth in Sales and in all profits
Doubled in 10 years from 2010
Operating profit

Sales

Net profit
250.0
30.0
172.3 175.0

144.2

85.0
74.4 78.5

5.4
2.5
-1.0
02'3

6.8

0.7 2.0
03'3

04'3

92.4

9.3

116.0 16.5

11.2 11.7

6.4
05'3

104.5

10.9

118.5 123.4 117.6

12.2

14.9

11.7

138.1

13.7

6.5

8.6
6.0

7.9 8.6
3.1

153.0

20.2
17.5

17.2

20.0
13.5

5.1

3.5

2001-2005© 2016 HORIBA, Ltd. All rights reserved.

105.6

134.2

7.3

8.9

10.5

10.8

06'3 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

(Restated) (Forecast)

2006-20102011-20152020(Plan)

2016-202015

Major policies
MLMAP2020 “One Step Ahead”●Applying HORIBA Technology in new businessfields and new markets and becoming a true
partner in analysis and measurement●Accelerating corporate growth by its Super Dream
Team based on balanced management, matrixorganization, and HORIBA Stained Glass Project●Improving capital efficiency to maximize corporatevalue© 2016 HORIBA, Ltd. All rights reserved.

16

Priority measure 1:
Applying HORIBA technology in new business fields and new markets

35.0

Operating profit growth2015 vs. 2020
30.0

30.0

(Billions of yen)10.0 ■Auto

25.0
20.0

5.2

10.0
5.0
0.0

10.0 ■Semi
9.4
4.0■Medical

2.6

2.5

■P&E

1.8
1.2

3.5

■Scientific

2015

2020

(Restated)© 2016 HORIBA, Ltd. All rights reserved.

 No.1 global share in exhaust gas
analyzers
 Expand production capacity and improve
profitability (Biwako Factory) Expand business fields (HORIBA MIRA)

Semiconductors

20.2
15.0

Automotive Test Systems

 Leading position in mass flow controllers
 Provide technological support insemiconductor diversification
 Provide cutting-edge measurement devise

Next business creation
 Explore more application of in-house
technological resources and know-how
 Tap into new markets
 Make new investments and pursue M&A
opportunities
17

Priority measure 1:
Becoming a true partner in analysis and measurement
Integrally utilize in-house technological resources and the customer network ofeach business, HORIBA expand the own technology to growth market

Growing market field
Alternative fuel

Auto

P&E

Water

Scientific

Bio-Life science

Semi

MedicalHORIBA Technology© 2016 HORIBA, Ltd. All rights reserved.

18

Priority measures 2: “Super Dream Team”
Balanced management

Matrix organization

・ Flexible utilization of management

・ Make thorough discussions bybusiness segments and regions,and speedily implement strategy
・ Promote shared services*

resources
・ Select-and-focus business forinvestment

HORIBA Stained Glass Project
To realize HORIBA style diversity
・Venture spirit
・Challenge spirit
・Embody “Joy and Fun”
 All players perform their special roles～Super Dream Team～© 2016 HORIBA, Ltd. All rights reserved.

*Shared services is to centralize specific work of more than one division of thecompany or group with the aim of raising productivity and cost reduction.

19

Contents
 Review
previous MLMAP [2011-2015] / 2015 Results MLMAP2020 [2016-2020]
 Business segment outline
 Shareholder return Financial Data Corporate profile© 2016 HORIBA, Ltd. All rights reserved.

20

Auto

Growth strategy(Billions of yen)

To be an Engineering Development Partner
Grow in the analytical measurement field for automotive development

Sub-segment sales• Growth opportunities from combustion engine development andtightening of emission regulations• Improving profitability at Biwako Factory• Expand ECT (HORIBA MIRA) business

EMS Contribute to development of next generation mobility
 Expand analytical business, utilizing HORIBA’s analytical technologies
Sales and operating profit

Sales

100.0

43.2

49.5 55.0© 2016 HORIBA, Ltd. All rights reserved.

(Forecast)

Japan

20.0

30.0

ITS

2.0

4.0

ECT

10.0

16.0

Total

70.0

100.0

10.0

2020
(Plan)

Asia China Americas

Europe(Total)27.0
9.0 13.0 15.0
(27%) (9%)(13%)(15%)

36.0
(36%)

100.0

Growthratio+52% +27% +23% +43%

+82%

+52%

2015

17.8 7.1 10.610.5 19.8

Total

2020

35.7 38.6
2.8
5.8 5.2
5.0
1.6
4.4 4.2
2010 2011 2012 2013 2014(Restated)2015 2016

MCT

Sales by region

Operating profit

65.8 70.0

MLMAP(Forecast)
2020
38.0
50.0
2016

(Plan)(Restated) (27%)(11%)(16%)(16%)

(30%)

65.8
21

Auto

Shared vision for HORIBA and HORIBA MIRA
強化目標

Create added value in EMS/MCT
business

Utilize HORIBA’s advanced
measurement devices so as to benefit
each business

Develop next-generation mobility
systems

Grow in the global market / Expand thecustomer base

Expanding business field in Next generation mobility
such as autonomous vehicle development
Utilize HORIBA’s technology© 2016 HORIBA, Ltd. All rights reserved.

22

Auto

Biwako factory “HORIBA BIWAKO E-HARBOR”

 Consolidating development, design, and production operations of gas
measurement equipment at a single location
 Doubling of production capability and shortening delivery time to onethird by using a new production methodology
 Comprehensive engineering services from sales to development,
production, and maintenance in the Automotive testing laboratory• Profitability improvement of exhaust gas analyzers• Presenting cutting edge automotive development technology
Total investment: 10.0 billion yen, Location: Otsu City, Shiga Prefecture, Full operation : May 2016

© 2016 HORIBA, Ltd. All rights reserved.

23

Auto

Business impact from next emission regulations

Global convergence of emission regulations
 Accelerating introduction of unified emission regulations(US and EU in 2017, Japan in 2018)
 Need to upgrade equipment due to change in testing method

 Bench test in labs
 Need to upgrade exhaust gas analyzers(hardware and software) Demand for more number of units
Lab test

 On-road test (RDE: Real Driving Emission)
 Regulation for Light Duty Vehicles to start in Sep. 2017
in EU
 Need to coordinate data with lab test results• Correlate analyzers
PEMS＝Coordinate ”MEXA” with ”OBS” series(Portable Emission
Measurement Systems)• Expand HORIBA MIRA’s testing business© 2016 HORIBA, Ltd. All rights reserved.

24

Auto

Expanding business field on Automotive industry

Body design
Material analysis
ECU/Semiconductor

Power unit
Drivetrain
Alternative fuel
(Fuel cell etc.)

Driving management
SafetyAutonomous
Driverless car

Cross segment approachAuto© 2016 HORIBA, Ltd. All rights reserved.

P&E

Medical

Semi

Scientific25

Growth strategy

P&E(Billions of yen)

Value creation in environmental regulation and industrial process measurement fields

 Expand business globally in environmental regulation fields
 Utilize technology capability and knowhow accumulated in Japan Expand share in the water measurement field by utilizing HORIBA’s pH
measurement technology
 Expand the process analytical business into the oil refining andpetrochemical fields
Sales and operating profit Sales

Sales by region

Operating profit
Japan

Asia China Americas Europe(Plan)

11.5(46%)

3.7 2.3 4.5 3.0(15%)(9%)(18%)(12%)

25.0Growthratio+39%+54% +109% +73% +30%

+50%

2015

8.3
(50%)

25.0

14.5 13.7 14.7
2.5

2020

16.4 16.7 18.0

2.0 1.8
1.5
1.2

2.5

1.6

2011 2012 2013 2014 2015 2016
© 2016 HORIBA, Ltd. All rights reserved.

(Restated)(Forecast)

2020(Plan)(Restated)

2.4(Total)2.6(Total)(14%) (15%)2.3(14%) 16.7

1.1
(7%)

26

P&E

Regional strategy for gas measurement businessOil refining market in the north America
Strengthening process
analytical measurementbusiness Expanding thebusiness in Texas
 Sales : 1.5 billion yen

for Chinese market
New regulation for PM2.5
 Contribution to identify thesource of PM Collaboration with Tsinghua
university in China
Synergy with Scientific segment
Collaboration with Tsinghua University

Process measurement
equipment business© 2016 HORIBA, Ltd. All rights reserved.

27

Medical Growth strategy(Billions of yen)

Brand building and to be an IVD solution partner
Globally expand in the middle/small hematology market (POCT)Improve and expand line-up of product models
Strengthen permission and authorization, and relationship withacademia
Expand OEM business and collaboration with other companies
Sales and operating profit

Sales

Sales by region

Operating profit

40.0

23.4 22.4
3.1

2020

26.8 27.0 27.7 28.0

2.4 2.4

4.0
1.7

2.6

2.0

2011 2012 2013 2014 2015 2016
© 2016 HORIBA, Ltd. All rights reserved.

(Plan)(Restated)(Forecast)

2020(Plan)

Growthratio

Japan Asia China Americas

Europe7.0 5.7 5.0
9.0(13%) (22%)(18%)(14%)

13.3
(33%)

40.0

+17% +97% +257% +32%

+25%

+44%

1.4
6.0 (5%)6.8
2015(Restated) (22%)2.9 (25%)
(10%)

10.6
(38%)

(Total)(Total)27.7
28

Medical Growth in Blood testing field
Test categoly

Clinicalchemistry

Hematology Immunology Coagulation

Market size

2 trillion yen

350 billion yen

Hospitals

Large hospitals
Testing centers

Clinicalchemistry

Small andmedium-sized
hospitals

200 billion yen

Field in which HORIBA
exhibits strength
Small andmedium-sized CRP analysis Coagulation
reagents
hematology
analyzers

Privatepractitioners
Hospital units andsurgery rooms(POCT)

2 trillion yen

Blood glucose
measurement

Expanding direction

Expanding the business domain(Horizontal axis) Expansion in technology for all of IVD field(Vertical axis) Sales expansion in Middle hospitals/POCT market
Strengthening data management and automation field of testing in order torealize providing IVD solution© 2016 HORIBA, Ltd. All rights reserved.

29

Medical Improving the business both side from Japan and France
Challenge to expand the business in Asia. US, by comprehensive ability of Japan and France

HORIBA ABXHORIBA, Ltd.

• Medium/large-sized
hematology analyzers• New brand “Yumizen”• Collaboration with
Montpellier university• Small size hematology
analyzers• Bloodcell+CRP analyzer• Collaboration with medical
faculty of national
university• Strengthening sales ofhematology analyzers• Expanding Clinicalchemistry field utilizing
OEM and collaboration
capabilities.

Stable reagent supply chain in the world
Reagent factory in Shanghai
Reagent factory in Brazil

New R&D center of HORIBA ABX
Reagent factory in Aso, Japan
Reagent factory in India© 2016 HORIBA, Ltd. All rights reserved.

30

Semi Growth strategy(Billions of yen)

Becoming a solution partner in flow control of semiconductor production process Strengthen market position in mass flow controllers and chemical concentration monitors
 Enhance relationship with manufacturers of semiconductor devices and semiconductor
production equipment
 Strengthen development capability in Japan and the US
 Increase production capacity in Japan (at Kyoto and Aso) and Asia
 Expand business by promoting new applications in the petrochemical, pharmaceutical,
energy, foods, and other markets.
Sales and operating profit

Sales

Sales by region

Operating profit

50.0
35.4
24.6

24.1

28.9

4.9

4.8

31.0

6.4

(Plan)

Growth
ratio

7.5

2015

2.2

(Restated)2011 2012 2013 2014 2015 2016
© 2016 HORIBA, Ltd. All rights reserved.

Asia

19.5
(39%)

11.0 4.5 13.0 2.0 (Total)(22%) (9%) (26%)(4%) 50.0

China Americas Europe

10.0

9.4

17.8

2020

Japan

(Restated)(Forecast)

2020(Plan)

+49%

13.1
(37%)

+6%

+18% +103% +18% +41%

1.7
10.4 3.8 (5%) (Total)(29%)(11%)6.4
35.4
(18%)
31

Semi HORIBA’s strength
Global market share expansion in mass flow controllers
その他

Global market share of mass flow controllers

 Technology and production
LEDimprovement, as required bysemiconductor device andproduction equipment manufacturers 60%
太陽電池
 Management organization with capability of continuing
50%
シリコン
investment during a periodof downturn in demand40%
 Quick response to a pick-up in demand

55% in 20152009 2010 2011 2012 2013 2014 2015

Effective utilization of cutting-edge R&D and production facilities Technical and production capabilities of cutting-edge technology
 Effective use of facilities in Kyoto (Fukuchiyama R&D) and Aso (production)
 Enhance development in US
HORIBA Advanced
Technology Center(Opened in Apr. 2015)© 2016 HORIBA, Ltd. All rights reserved.

Kyoto Fukuchiyama
Technology Center(Opened in Dec. 2013)

Aso Factory, Japan

Reno R&D center (US)32

Scientific

Growth strategy(Billions of yen)

Becoming “Your Partner in Science”, and generating HORIBA’s core technology
 Integrate technologies of HORIBA and HORIBA Jobin Yvon (HJY) Enhance HORIBA’s core technology and make it available for othersegments to expand their business Enhance capability in the cutting-edge material analysis field, and capability
in design and development tailored to customer needs
Sales and operating profit

Sales

Sales by region

Operating profit

Japan Asia

35.0
22.0 20.4 22.9

1.4

0.9

0.9

25.6 26.7

28.0

1.2

1.5

1.2

3.5

2020
(Plan)

Growthratio

2015(Restated)2011 2012 2013 2014(Restated)2015 2016© 2016 HORIBA, Ltd. All rights reserved.

(Forecast)

2020(Plan)

China Americas Europe

8.5
5.4 4.0
9.0(24%) (15%)(12%) (26%)+23%+86% +18%+29%

6.9 2.9 3.4 7.0
6.5
(11%)
(26%) (13%)(26%) (24%)

8.1
(23%)

35.0

+25%

+31%

(Total)(Total)26.7
33

ScientificApproach for exploit new market

Japan/France/US/Canada Globalize through technology of 4sites•Optical analysis
technology of HJY•Close relationship withacademia in France•Utilize HORIBA Europe
Research Center•Particle size distribution
and X ray analysis of
HORIBA•Globalize production
technology

Highly valued brandin material analysis field• HJY US facility• Fluorescence analysis of
Photon Technology
International• Close relationship withacademia in life sciencefield• Target to next generation
drag development etc.

Network in Life science field

HORIBA, Ltd.
Kyoto
HORIBA Jobin Yvon/Paris© 2016 HORIBA, Ltd. All rights reserved.

Photon Technology International/Canada
34

Scientific

Use of core technology for growth

Cutting-edge technology of HORIBA and HORIBA Jobin Yvon
Close relationship with academia
Next generation
technology

In-LineOn-Line

AFMRaman/CL

Nano
consosiamI
censorUniversities,

Expanding to
new fields

governments
Strategic
growthExisting
technology

Bio-life science
Energy,electronics
Automotive,

Auto
P&E
MedicalSemimaterials

Existing markets© 2016 HORIBA, Ltd. All rights reserved.

New markets
35

HORIBA’s original management style+
Strategic growth in Water measurement field© 2016 HORIBA, Ltd. All rights reserved.

36

HORIBA’s original management style

Administrative

Auto

P&E

Semi

Scientific

MedicalHORIBA, Ltd. (Total Analytical measurement supplyer)
Asia
Japan

Shared services

HORIBA STEC (Flow control)
HORIBA Advanced Techno(Water measurement)

HORIBA Techno Service (After maintenance)
EuropeShared services

AmericasShared services© 2016 HORIBA, Ltd. All rights reserved.

37

Water

HORIBA Advanced Techno Ltd.

Apply HORIBA’s water measurement technology to raise
productivity in water treatment processing
Create the value only HORIBA can realize
HORIBA Advanced Techno = Core player in water measurement
 Cover all water treatment processes Timely and precisely satisfy market demand Create next generation water measurement network using IoTPlan to double sales in water measurement business

P&E
Semi

10 billion yen

Scientificin 2015

20 billion yen*in 2020* Total sales amount of water related business of P%E, Semiconductor and Scientific© 2016 HORIBA, Ltd. All rights reserved.

38

Contents
 Review
previous MLMAP [2011-2015] / 2015 Results MLMAP2020 [2016-2020]
 Business segment outline
 Shareholder return Financial Data Corporate profile© 2016 HORIBA, Ltd. All rights reserved.

39

Shareholder return 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)
Since 2013, HORIBA has changed the base amount of profit returns to shareholders from 30% of
HORIBA, Ltd. (nonconsolidated) net income to 30% of consolidated net income. HORIBA started paying
shareholder dividends based on a predetermined payout ratio in 1974 when HORIBA was listed.

Per-share dividend and total return ratio(from 2001 to 2016 Forecast)
60%

(Yen)

Per share dividend (yen)Total return (%)

57%[Including commercial dividend and share buybacks]

50%

44%

2008 Share buyback
238,900 shares,
about 0.8 billion yen

40%2015 Share buyback
218,400 shares,
about 1.0 billion yen

7060

29% 28% 27% 31% 29%30%
19%
17% 18% 17%

20%

80

17%

15%

20%

8.5

14.5

10

16

28

26

39

44

13

9%
17

40
30
20

10%
0%

50

40

50

60

67

70

75

10
0

02'3 03'3 04'3 05'3 06'3 06'12 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
© 2016 HORIBA, Ltd. All rights reserved.

(Forecast) 40

Symbol of the previous MLMAP“A yacht’s sails enable it to go forward regardless of the direction of the wind.”
A yacht can sail toward harbor even with headwind.
HORIBA is like such a yacht, sailing the seas with five sails (business segments)
which efficiently coordinate with each otherso that the company is propelled toward its goals,
by redirecting winds (chances) into the driving force.
© 2016 HORIBA, Ltd. All rights reserved.

41

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.

42

© 2016 HORIBA, Ltd. All rights reserved.

43
43

Contents
 Review
previous MLMAP [2011-2015] / 2015 Results MLMAP2020 [2016-2020]
 Business segment outline
 Shareholder return Financial Data Corporate profile© 2016 HORIBA, Ltd. All rights reserved.

44

Changed the accounting policy for revenue recognition
2014(Original)

Not installed
Not arrived

2016

Not installed
Not arrived

Installed
Delivered(New)
Changed points:

2015

Installed
Delivered

Shipment baseThe 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.

Original
New

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

45

2015 Operating profit analysis ( vs. 2014 )(Millions of yen)

2014

17,214

2015

Increaseof SalesAmountIncreaseof Cost of
sales+12,122-9,907

Sales impact+2,215

Exchange
Exchange
impactIncrease of 19,372
impactforfor Gross
Increase ofother
ExpensesProfitR&D cost expenses+3,933-1,136

Exchange impact+2,797

Increase of Operating profit© 2016 HORIBA, Ltd. All rights reserved.

-372-2,482

Expenses impact-2,855+2,15746

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

PP&E
Intangibles
Capital Investment

Depreciation
R&D(To net sales)

2016
Main
reasons forincrease© 2016 HORIBA, Ltd. All rights reserved.

2014

2015

Results

Results

2016
Forecast

vs
2015

9.1
1.8
11.0
4.9
11.9

14.9
1.4
16.3
6.1
12.3

16.3
0.7
17.0
7.0
14.0

+1.4

7.8%

7.2%

8.0%

+0.8p

-0.7
+0.6
+0.8
+1.6

・PP&E

Capital spending for HORIBA MIRA Ltd.(6.0bil yen)・Depreciation

Biwako factory (0.7bil yen)

・R&D

Increase in Automotive segment
47

Consolidated Cash Flows(Millions of yen)

2014

2015

Variation

Cash flows from operating activities

11,455

14,7703,315

Cash flows from investing activities-9,875-30,642-20,768

Cash flows from financing activities-273

12,843

13,117

Cash and cash equivalents at end of year

51,10947,859-3,251

Free cash flows

1,580-15,872-17,453© 2016 HORIBA, Ltd. All rights reserved.

48

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

Total Loan Balance

24.1

28.0

44.7

Bond
redemption
in 2020

17.6

Cash *
38.8
Bonds10.0
Long2.1
Short5.5

2012
297%
65%

Cash * Bonds15.0
47.8

Cash *
51.1

Cash *
49.2

Bonds15.0

Bonds15.0

Long2.2

Long2.5
Short6.6

2013
269%
60%

Long16.8

Short10.8

2014
254%
60%

Short12.8

2015
242%
56%

Borrowedfrom JBIC
15.1bil yen

Current ratio
Capital ratio

Borrowed 126mil US$ from JBIC (Japan Bank for International Cooperation) in Sep. 2015 for acquisition of MIRA Ltd.
Conclusion of liquidation of receivable contract with 2 banks.
Recent issuer rating : R&I [A-] (Aug 2015), JCR [A] (Sep 2015)© 2016 HORIBA, Ltd. All rights reserved.

Cash*…Cash and Cash Equivalents at End of Period

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

Exchange rate impact (2015 Results)
Sales(Millions of Yen)

Total USD

Operating Profit
EUR

Total USD

EUR

Auto

1,021

1,529

-822

326

468

-43

Medical

616

881

-526

220

100

4

Semi

2,266

1,979

-49

1,959

1,824

-39

Scientific

1,062

1,328

-355

184

186

2

P&E

497

386

-93

137

58

-36

Total

5,463

6,106

-1,848

2,827

2,638

-112

© 2016 HORIBA, Ltd. All rights reserved.

2014

2015

Results

Results

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

Sales
USD 403 millions of yen
EUR 330 millions of yen
Operating Profit
USD 172 millions of yen
EUR 17 millions of yen
2016

Forecast

vs 2015USD

105.79121.10115▲ 6.10EUR

140.35134.31125▲ 9.31
50

Contents
 Review
previous MLMAP [2011-2015] / 2015 Results MLMAP2020 [2016-2020]
 Business segment outline
 Shareholder return Financial Data Corporate profile© 2016 HORIBA, Ltd. All rights reserved.

51

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.

52

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.

53

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
(17%)

35.3

Automotive

64.2

America
19%

Semi

Medical(19%)

Medical
P&E

(16%)

(10%)

27.4

27.0
16.7
(17%)

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

EU
24%

Japan
31%

(37%)

(21%)

28.9

JPY

Asia
26%
USD

Reduce Country Risk and Exchange Risk
54

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.

55

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
56

Employees by Region
Other Americas
3%

Other Europe
2%

Japan
38%

UK
10%

Total Asia: 3,545

52%
Total Europe: 2,356

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

2015年12月31日現在

6,831

USA
11%
Germany
8%

従業員数
Total Numberof Employees

Other Asia
14%

Total Americas: 930

14%57

© 2016 HORIBA, Ltd. All rights reserved.

58