Summary of Consolidated Financial Statements for the Year Ended December 31, 2017
(Japanese GAAP)
February 13, 2018
Company name

HORIBA, Ltd.

Listed stock exchanges: Tokyo

Listing code

6856

Representative

Atsushi Horiba, Chairman & Group CEO

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

Contact
Junichi Tajika, Department Manager,General Administration Division, Accounting Dept.
Scheduled date of start of dividend payment: March 5, 2018
(Figures have been rounded down to the nearest million yen)

1. Consolidated Results for the Year Ended December 31, 2017 (January 1, 2017 - December 31, 2017)(Percentages represent changes from the previous year)(1) Consolidated Operating Results
Net Sales

Operating Income

Millions of yen

Net income attributableto Owners of Parent

Ordinary Income%

Millions of yen%

Year ended 12/31/17
195,399
26,83426,608
14.9
45.1
45.6
Year ended 12/31/16
170,093
18,49918,279
-1.1
-8.2
-6.9
(Note) Comprehensive Income: FY2017 21,589 million yen 144.6%, FY2016 8,826 million yen -12.6%

16,281
12,962

25.6
-2.4

%

Millions of yen

Millions of yen%

Net Income attributableto Owners of Parent
per Share

Net Income attributable toOrdinary Income Operating Income
Owners of Parent per Return on Equity
to Total Assets
to Net Sales
Share (Diluted)
Yen
Yen
%
%
%

Year ended 12/31/17
386.30384.67
Year ended 12/31/16
307.74306.38(Reference) Equity in earnings of affiliates: FY2017 - million yen, FY2016 - million yen

11.5
10.0

10.5
7.7

13.7
10.9

(2) Consolidated Financial Position
Total Assets

Shareholders' Equity
Ratio

Net Assets

Millions of yen

Millions of yen

Net Assets
per Share%

Yen

As of 12/31/17
265,920
150,866
56.5
As of 12/31/16
239,657
133,191
55.4(Reference) Net assets excluding subscription rights to shares and non-controlling interests:
As of December 31, 2017: 150,282million yen; As of December 31, 2016: 132,654 million yen

3,565.00
3,148.70(3) Consolidated Cash Flows
Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

Cash and Cash
Equivalents at endof period

Cash Flows from
Financing Activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

28,287
15,871(13,167)(10,427)(9,044)(451)

58,333
51,940Year ended 12/31/17
Year ended 12/31/16
2. Dividends

Dividend per share
SecondquarterFirst
quarterYen

Thirdquarter

Yen

Year end

Yen

Total

Total Dividends(Annual)Payout Ratio(Consolidated)

Dividends to Net
Assets(Consolidated)

Yen

Yen

Year ended 12/31/16

-

30.00

-

55.00

85.00

Millions of yen
3,581

%
27.6

%
2.7

Year ended 12/31/17
Year ending 12/31/18(Forecast)

-

40.00

-

76.00

116.00

4,889

30.0

3.5

-

50.00

-

70.00

120.00

26.6

3. Consolidated Forecast for the Year Ending December 31, 2018 (January 1, 2018 - December 31, 2018)(Percentages represent changes from the same period in the previous year)

Net SalesFirst half
Full year

Operating Income

Net Income attributable
Net Income attributableto Owners of Parent per
to Owners of Parent
Share

Ordinary Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

96,000210,000

9.9
7.5

11,80029,00021.6
8.1

11,50028,400

20.2
6.7

7,700
19,00019.2
16.7

182.66450.72

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): YesNew
One company (Company name: HORIBA Americas Holding Incorporated)
Excluded One company (Company name: HORIBA International Corporation)(2) Changes in accounting policies, accounting estimates and retrospective restatement① Changes in accounting policies associated with revision of accounting standards: None
② Changes in accounting policies arising from other than the above: None
③ Changes in accounting estimates: None
④ Retrospective restatement: None
(3) Number of shares outstanding (common stock)
December 31, 2017
42,532,752
377,723
42,149,032① Shares issued (including treasury stock)② Treasury stock③ The average number of outstanding shares
during Jan. - Dec. in FY2017 and FY2016

December 31, 2016
42,532,752
402,986
42,121,274

Note 1. This consolidated financial report is not subject to audit procedures.
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.

2

HORIBA, Ltd.(Consolidated)1. Qualitative Information Concerning Consolidated Results(1) Information Concerning Consolidated Operating Results(For details, see page 15, “5. Supplemental Information - HORIBA, Ltd. Financial Highlights for the Year Ended December
31, 2017”)
With regard to the global economy in the fiscal year ended December 31, 2017, the United States continued its economic
recovery, on the back of an improvement in the employment environment. In Europe, a modest economic recovery was
sustained despite some impacts from geopolitical risks and uncertainties over policies. Among emerging countries, China’s
economy is improved with support by various government policies, and India’s economy is improved as well by domestic
demand.
In Japan, a corporate earnings upswing combined with a better employment environment and healthier consumer spending
status contributed to a moderate economic recovery trend.
The annual average exchange rates for 2017 were 112.16 yen against the U.S. dollar and 126.70 yen against the euro,
representing year-on-year depreciation of 3.0% against the U.S. dollar and depreciation of 5.1% against the euro.
In the analytical and measurement equipment industry, investment by semiconductor manufactures remained at a highlevel throughout the year, following the trend in fiscal 2016, and demand for semiconductor production equipment
expanded, on the back of an increase in demand for semiconductors such as memory stemming from the increasing dataprocessed in data center and the spread of AI and IoT.
In the automotive industry, against the backdrop of the introduction of new emission gas regulations in Europe and theplanned introduction of new regulations in Japan in 2018, demand for emission measurement systems has expanded. In
addition, there were rising expectations for next-generation mobility incorporating vehicle electrification, as exemplified byhybrid and electric vehicles, and automatic driving technology. This has led automakers and related institutions to be moreaggressive in their capital expenditure and R&D investment.
In the scientific analysis equipment industry, demand in general was sluggish but demand for leading-edge scientificanalysis equipment was at a high level in China. At the same time, demand improved somewhat in the second half of 2017,
mainly in Europe and the United States.
Under such business environment, HORIBA, Ltd. (“the Company”) and its consolidated subsidiaries (together “the HORIBAGroup” or “HORIBA” as a consolidated group), implemented the following measures to strengthen each segment in thecurrent fiscal year.
In the Automotive Test Systems segment, we invested aggressively in the ECT (Engineering Consultancy & Testing)business, which we acquired from MIRA Ltd. (U.K.) in 2015 with the aim of expanding into business fields such as thedevelopment of next-generation mobility, including self-driving technology. HORIBA MIRA, Ltd.(“HORIBA MIRA”) began
operation of its AETC (Advanced Emissions Test Centre) to cope with the introduction of emission gas regulations inreal-driving testing. Moreover, HORIBA BIWAKO E-HARBOR, the Biwako factory in Japan which began full operation in2016, addressed the growing demand driven by emission gas regulations, by raising its productive efficiency.

3

HORIBA, Ltd.(Consolidated)In the Process & Environmental Instruments & Systems segment, HORIBA Instruments Incorporated (U.S.) moved andexpanded its Houston plant for process measurement equipment business in Texas in the U.S., with the aim of increasing
business in the oil refining market. Targeting for business expansion in Asia, we enhanced our capability to propose
analytical and measurement solutions that contribute to enhanced environmental regulations and better local environment
in each region.
In the Medical-Diagnostic Instruments & Systems segment, we launched new products which we developed in France andJapan in the hematology sector. At the same time, we entered into a business alliance with Siemens Healthcare
Diagnostics Inc. as a foothold into a new market, thereby accelerating our business expansion strategy in the hematology
field.
In the Semiconductor Instruments & Systems segment, HORIBA STEC, Co., Ltd. completed the construction of the Aso
Factory aimed at capacity expansion, in order to respond to an increase in demand for semiconductor production
equipment, and prepared for increased production of mass flow controllers, one of the segment’s major products. HORIBASTEC KOREA, Ltd. also moved and expanded its head office to enhance the customer support and service organization.
In the Scientific Instruments & Systems segment, we strengthened the sales organization for products such as Raman
spectrometers used in universities and academic institutions in China. In addition, we applied existing technology to thedevelopment of business in new markets. The segment sought to mutually utilize its technology resources and customer
networks with other business segments and focused on growing its customer base.
Furthermore, in order to strengthen the water measurement-related business, which has been promoted as one of thepriority initiatives in the Company’s Mid-Long Term Management Plan “MLMAP2020,” development and production
resources which had been dispersed in the Company and HORIBA Advanced Techno have been integrated into HORIBA
Advanced Techno. We will seek to grow this business and strengthen its brand power globally. In addition, with the aim at
accelerating business growth and improving asset efficiency at the same time, HORIBA’s management indices to measureasset efficiency were introduced and have been thoroughly implemented by all Group companies.
Due to those measures and as a result of sales efforts, HORIBA increased net sales of 195,399 million yen (up 14.9%
y-o-y), operating income of 26,834 million yen (up 45.1%), ordinary income of 26,608 million yen (up 45.6%), and net
income attributable to owners of parent of 16,281 million yen (up 25.6%).
The operating results of each business segment are summarized as follows.
(Automotive Test Systems)
Sales of emission measurement systems and the MCT (Mechatronics) sales increased. As a result, segment sales
increased by 17.9% y-o-y to 73,360 million yen and operating income surged by 117.6% to 7,680 million yen.
(Process & Environmental Instruments & Systems)
While the process measurement equipment business in the Americas was sluggish, sales of stack gas analyzers to power
plants and factories were robust in Japan and China. As a result, segment sales increased by 4.1% y-o-y to 17,433 million
yen. Operating income, however, decreased by 29.0% to 1,094 million yen due to a decrease in sales in the process
measurement equipment business in the Americas, and other factors.

4

HORIBA, Ltd.(Consolidated)

(Medical-Diagnostic Instruments & Systems)
Sales were sluggish in the Americas. Consequently, segment sales decreased by 5.2% y-o-y to 25,187 million yen, andoperating income was down 31.6% to 1,918 million yen.
(Semiconductor Instruments & Systems)
Along with the high-level capital investment by semiconductor manufacturers, sales to semiconductor production
equipment manufactures increased significantly. As a result, segment sales increased by 37.3% y-o-y to 53,300 million yen
and operating income surged by 61.1% to 15,642 million yen.
(Scientific Instruments & Systems)
While sales in Japan and Europe were sluggish, sales in Asia and the Americas were solid. Consequently, segment sales
increased by 1.5% y-o-y to 26,117 million yen but operating income decreased by 47.2% to 498 million yen, due to anincrease in R&D expenses.
(2) Information Concerning Consolidated Earnings Forecasts for FY2018
Regarding the global economic outlook for the next fiscal year, the United States is expected to continue its steadyeconomic recovery, although caution is warranted concerning future policy direction and impact. In Europe, while
uncertainties over the U.K.’s decision to leave the EU (Brexit) and uncertainty of other policies may have some impacts, themoderate economic recovery is likely to continue. In China and other emerging economies, we will keep an eye on thepotential impact of uncertainties over policies and fluctuation in the financial and capital markets.
In Japan, the economy is likely to recover moderately, driven by a continued improvement in the employment and income
environment. However, caution is again required concerning overseas economic uncertainties and the potential impact offluctuation in the financial and capital markets.
Based on such economic outlook, HORIBA’s forecasts for fiscal 2018 are shown as below.
Our assumed foreign exchange rates are 110 yen against the U.S. dollar (vs. 112.16 yen in fiscal 2017) and 130 yen
against the euro (vs. 126.70 yen in fiscal 2017).
Net sales of 210,000 million yen (up 7.5% y-o-y)In the Automotive Test Systems segment, along with tighter emission gas regulations, sales of emission measurement
systems are likely to be firm, while sales in the ECT business are also projected to increase in the next-generation mobility
development field.
In the Semiconductor Instruments & Systems segment, demand for semiconductor production equipment is projected toremain at a high level, while sales are also projected to increase for the year.
In the Medical-Diagnostic Instruments & Systems segment, the launch of new products is expected to contribute to steadysales for the year.
In the Process & Environmental Instruments & Systems segment and the Scientific Instruments & Systems segment,
demand is expected to recover in the Americas for the former segment and mainly in Japan for the latter segment.
As a result, we forecast an increase by 14,600 million yen in net sales from the fiscal 2017 to 210,000 million yen.
Operating income of 29,000 million yen (up 8.1% y-o-y)In the Automotive Test Systems segment, we expect segment operating income to increase, contributed by sales growth of
the ECT business.
The Semiconductor Instruments & Systems segment is also expected to increase operating income thanks to sales gain inproducts such as mass flow controllers for semiconductor production equipment. As a result, operating income is expected
to increase by 2,165 million yen from the fiscal 2017 to 29,000 million yen.
Ordinary income of 28,400 million yen (up 6.7% y-o-y)
HORIBA’s forecasts incorporate a net non-operating loss of 600 million yen (compared to a net non-operating loss of 225
million yen in fiscal 2017), assuming foreign exchange losses and some uncertain non-operating expenses. As a result,ordinary income is expected to increase by 1,791 million yen from the fiscal 2017 to 28,400 million yen.

5

HORIBA, Ltd.(Consolidated)

Net income attributable to owners of parent of 19,000 million yen (up 16.7% y-o-y)
In addition to an increase in ordinary income, net extraordinary loss of 200 million yen (compared to a net extraordinary lossof 2,223 million yen in fiscal 2017) is expected by assuming the generation of some extraordinary losses. As a result, net
income attributable to owners of parent is forecast to increase by 2,718 million yen from the fiscal 2017 to 19,000 millionyen.
Note: 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 fromthe forecasts due to a range of factors.
(3) Basic Policy for Profit Distribution and Dividends for the Year Ended December 31, 2017 and the Year Ending
December 31, 2018
HORIBA’s shareholder return policy is to set the total returns to shareholders (the combined amount of dividend payments
and share buybacks) at approximately 30% of consolidated net income attributable to owners of parent.
With regard to the dividends for the year ended December 31, 2017, we have decided to pay a year-end dividend of 76 yen
per share. Combined with the interim dividend that has been paid out, the annual dividend is 116 yen.
As regards the dividend forecast for the fiscal year ending December 31, 2018, we expect to increase the annual dividendby 4 yen from the fiscal 2017 to 120 yen (Interim dividend is 50 yen).
The Company will continue to focus on improving corporate value through profit growth by investing internal reserves ingrowth areas in an effective manner, and it will make profit returns to shareholders that are linked to consolidated earnings.
2. Basic policy on selection of accounting standard
The HORIBA Group prepares its consolidated financial statements in accordance with General Accepted Accounting
Principles in Japan (“JGAAP”), as it allows comparison between different periods and companies. Concerning adoption of
the International Financial Reporting Standards (IFRS), HORIBA intends to appropriately respond with due consideration tovarious circumstances in Japan and abroad and expected clerical costs.

6

HORIBA, Ltd.(Consolidated)3. Consolidated Financial Statements(1) Consolidated Balance Sheets
Amount: millions of yen
FY2016(As of December 31,
2016)

FY2017(As of December 31,
2017)

Cash and bank deposits

52,27258,995Trade notes and accounts receivable

53,72460,152Marketable securities

1,178

1,902

Merchandise and finished goods

15,11816,512Work in process

14,543

16,396

Raw materials and supplies

10,626

12,665

Deferred tax assets

4,160

4,331

Other current assets

6,029

7,321

Allowance for doubtful accounts

(842)

(788)

156,812

177,487

Buildings and structures, net

32,96636,900Machinery, equipment and vehicles, net

8,837

10,776Land

13,065

13,736

Construction in progress

3,453

3,468

Other property, plant and equipment, net

3,654

3,818

Total Property, Plant and Equipment

61,977

68,701

Goodwill

387

194

Software

4,082

3,298

Other intangibles

3,453

904

Total Intangibles

7,923

4,397

Investment securities

8,519

11,000

Deferred tax assets

1,726

1,549

Other investments and other assets

2,764

2,861

(66)

(77)

12,943

15,334

82,84488,432

239,657

265,920

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

7

HORIBA, Ltd.(Consolidated)Amount: millions of yen
FY2016(As of December 31,
2016)

FY2017(As of December 31,
2017)

Trade notes and accounts payable

20,01323,272

Short-term loans payable

12,463

8,352

Accounts payable - other

14,041

14,888

Accrued income taxes

1,838

6,277

Advances Received

10,162

13,519Deferred tax liabilities

76

61

Accrued bonuses to employees

914

1,464

Accrued bonuses to directors and corporate auditors

58

63

Reserve for product warranty

1,672

1,932

Provision for loss on disaster

227

49

Other current liabilities

4,607

4,496

Total Current Liabilities

66,07674,378

Corporate bonds

15,00015,000Long-term loans payable

19,25518,704931

2,036

Net defined benefit liability

2,191

2,145

Provision for loss on dissolution of the employees’
pension fund

1,247

640

Other non-current liabilities

1,763

2,149

Total Non-Current Liabilities

40,38940,675

106,466

115,054

Common stock

12,011

12,011

Capital surplus

18,717

18,717Retained earnings

103,104

115,345(1,588)(1,488)132,244

144,585

Net unrealized holding gains on securities

2,928

4,636

Foreign currency translation adjustments(2,297)

1,151

Remeasurements of defined benefit plans

(221)

(90)

Total Accumulated Other Comprehensive Income

409

5,697

Subscription Rights to Shares

466

492

Non-controlling Interests

71

90

133,191

150,866

239,657

265,920

Liabilities
Current Liabilities:

Non-Current Liabilities:

Deferred tax liabilities

Total Liabilities
Net Assets
Shareholders' Equity

Treasury stock
Total Shareholders' Equity
Accumulated Other Comprehensive Income

Total Net Assets
Total Liabilities and Net Assets

8

HORIBA, Ltd.(Consolidated)(2) Consolidated Statements of Income and Consolidated Comprehensive Income Statements(Consolidated Statements of Income)Amount: millions of yen
FY2017(For the year ended
December 31, 2017)

FY2016(For the year ended
December 31, 2016)
Net Sales

170,093

195,399

Cost of Sales

100,339

112,107

Gross Income

69,754

83,291

Selling, General and Administrative Expenses

51,25456,457

Operating Income

18,49926,834

Interest income

144

104

Dividend income

150

176

Non-Operating Income

Subsidy income

149

81

Other

211

242

Total non-operating income

655

604

Interest expense

574

428

Foreign exchange losses

206

296

Other

95

104

Total non-operating expense

875

829

18,27926,608

33

58

0

0

Non-Operating Expense

Ordinary Income
Extraordinary Gain
Gain on sales of fixed assets
Gain on sales of investment securities
Gain on sales of subsidiaries and affiliates' stocks

240

Reversal of provision for loss on dissolution of theemployees'pension fund-455

Reversal of foreign currency translation adjustment

113-

Insurance income

139-

Total extraordinary gain

527

514

Loss on sales of fixed assets

02

Loss on disposal of fixed assets

219

199

Extraordinary Loss

Impairment loss-

Loss on valuation of investment securities

2,526

68

Provision for loss on dissolution of the employees' pension fund

9

177

-

Loss on disaster

1,098

-

Total extraordinary loss

1,563

2,738

Income before Income Taxes

17,24324,385

Income taxes (current)

3,372

7,647

Income taxes (deferred)

906

439

4,278

8,086

12,964

16,298

Profit attributable to non-controlling interests

1

16

Net Income attributable to Owners of Parent

12,962

16,281

Total income taxes
Net Income

9

HORIBA, Ltd.(Consolidated)

(Consolidated Statements of Comprehensive Income)Amount: millions of yen
FY2017(For the year ended
December 31, 2017)

FY2016(For the year ended
December 31, 2016)
Net Income

12,964

16,298304

1,708

Other Comprehensive Income
Net unrealized holding gains on securities
Deferred gains or losses on hedges

0-

Foreign currency translation adjustments(4,153)

3,452

Remeasurements of defined benefit plans

(288)

130

Total other comprehensive income
Comprehensive Income(4,137)

5,291

8,826

21,5898,828

21,570(1)

19(Breakdown of comprehensive income)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

10

HORIBA, Ltd.(Consolidated)

(3)Consolidated Statements of Changes in Net Assets
FY2016 (For the year ended December 31, 2016)
Amount: Millions of yen
Shareholders' Equity
Common stock
Beginning balance

Capital surplus
12,011Retained earnings
18,717

Treasury stock

93,232

Total Shareholders' Equity(1,730)122,230

Changes during the period
Dividend from earnings(3,031)(3,031)Net Income attributable to
Owners of Parent

12,962

12,962
(0)

(0)

(58)

142

83

9,871

141

10,013103,104(1,588)132,244

Purchase of treasury stock
Disposal of treasury stock
OthersTotal changes during the period-Ending balance-

12,011

18,717

Accumulated Other Comprehensive Income

Beginning balance

Net unrealized
holding gains on
securities

Deferred gains orlosses on hedges

Foreign currencytranslation
adjustments

Remeasurementsof defined benefit
plans

2,624

(0)

1,852

66

Subscription
Total Accumulated
Rights to Shares
Other
Comprehensive
Income4,543

469

Non-controlling
Interests

Total Net Assets

0127,243

Changes during the period
Dividend from earnings(3,031)Net Income attributable to
Owners of Parent

12,962

Purchase of treasury stock(0)

Disposal of treasury stock83

OthersTotal changes during the periodEnding balance304

0(4,150)(288)(4,134)(2)

71(4,066)304

0(4,150)(288)(4,134)

(2)

71

5,947

(2,297)

(221)

409

466

71

133,191

2,928

-

11

HORIBA, Ltd.(Consolidated)

FY2017 (For the year ended December 31, 2017)
Amount: Millions of yen
Shareholders' Equity
Common stock
Beginning balance

Capital surplus
12,011Retained earnings
18,717

Treasury stock

103,104

Total Shareholders' Equity(1,588)132,244

Changes during the period
Dividend from earnings(4,003)(4,003)Net Income attributable to
Owners of Parent

16,281

16,281
(0)

(0)

(37)

99

62

12,24099

12,340115,345(1,488)144,585

Purchase of treasury stock
Disposal of treasury stock
OthersTotal changes during the period-Ending balance-

12,011

18,717

Accumulated Other Comprehensive Income
Net unrealized holding
Foreign currency
Remeasurements ofgains on securities translation adjustments defined benefit plans
Beginning balance

2,928(2,297)(221)

Total Accumulated
Other
Comprehensive
IncomeSubscription
Rights to Shares

409

466

Non-controlling
Interests

Total Net Assets

71

133,191

Changes during the period
Dividend from earnings(4,003)Net Income attributable to
Owners of Parent

16,281

Purchase of treasury stock(0)

Disposal of treasury stock

62

Others

1,708

3,449

130

5,288

26

19

5,334

Total changes during the period

1,708

3,449

130

5,288

26

19

17,674Ending balance

4,636

1,151

(90)

5,697

492

90

150,866

12

HORIBA, Ltd.(Consolidated)

(4) Consolidated Statements of Cash FlowsFY2016(For the year ended
December 31, 2016)
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
Loss (gain) on valuation of investment securities
Loss (gain) on sales of investment securities
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

Amount: millions of yen
FY2017(For the year ended
December 31, 2017)17,243
6,676
139
110
349

24,385
7,387
2,526
146
(75)
(190)

(19)

(607)

(294)
574
42
(32)
219
68
(0)
(5,454)(1,461)
3,333
837
22,330298(569)(6,187)
15,871

(280)
428
79
(56)
199
9
(0)
(4,514)(3,633)2,588
3,601
31,996279(466)(3,521)28,287

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
Proceeds from sales of stocks of subsidiaries and affiliates
Payments of loans receivableCollection of loans receivable
Other, net
Net Cash Provided by (used in) Investing Activities(2,857)
3,014
32
(103)
1,414
(13,001)
53
(373)
(48)
4
256
(27)
23
1,184
(10,427)(1,197)1,395
32(1,901)
701(11,664)
266
(354)
(22)
3
(60)
25
(393)
(13,167)

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
Cash and Cash Equivalents at End of Period

130
3,690
(1,078)
(195)
60
(0)
(3,058)
(451)
(911)
4,081
47,85951,940(3,839)(1,039)(163)(0)(4,002)(9,044)317
6,393
51,94058,333

13

HORIBA, Ltd.(Consolidated)4. Notes to Consolidated Financial Statements(1)Significant Items That Form the Basis for Preparation of Consolidated Financial Statements(Significant Change in Scope of Consolidation)
From the first quarter of fiscal 2017, newly-established HORIBA Americas Holding Incorporated (U.S.) has been included in
the scope of consolidation.
On December 31, 2017, HORIBA International Corporation (U.S.) was merged into HORIBA Instruments Incorporated(U.S.). As a result, HORIBA International Corporation (U.S.) was excluded from the scope of consolidation.
(2) Business combination(Transactions under common control and others)
HORIBA Advanced Techno, a wholly owned subsidiary of the Company, which took over the water quality and liquid
analysis instruments and systems business of the company (hereinafter the “water measurement business”), throughabsorption-type company split approach, since January 1, 2017.
The absorption-type company split was summarized as follows.
(1) Purpose of the company split
The HORIBA Group’s water measurement business, represented by pH meters, the Group’s mainstay product since thefoundation of the Company, had been promoted jointly by the Company and HORIBA Advanced Techno. With the aim ofbusiness expansion in the water measurement area, as one of the priority initiatives in the HORIBA Mid-Long Term
Management Plan, the Company split its water measurement business and integrated it with HORIBA Advanced Techno inorder to develop more market-oriented products, improve customer satisfaction, and enhance market competitiveness andearnings power.
(2) Legal method of business combination
This company split was an absorption-type company split in which HORIBA Advanced Techno was the succeedingcompany.
(3) Date of business combination
January 1, 2017(4) Details of allotments relating to the company split
The company owned all shares of HORIBA Advanced Techno and there was no consideration such as allotment of sharesor payment of cash due to this company split.
(5) Calculation of allotments relating to the company split
There were no allotments of shares or other assets due to this company split.
(6) Rights and obligations to be succeeded by the successor company
In accordance with the absorption-type company split agreement, HORIBA Advanced Techno had took over assets,
liabilities, other rights and obligations, and contractual status that were considered necessary to carry out the business.
(7) Outline of the successor company
Capital:Business:

250 million yen
Development, manufacturing, sales and services of measurement equipment(8) Outline of accounting treatment to be applied
Based on the "Accounting Standard for Business Combinations" and the "Guidelines on Accounting Standard for Business
Combinations and Accounting Standard for Business Divestitures," this transfer had been treated as a transaction undercommon control.

14

HORIBA, Ltd.(Consolidated)5. Supplemental Information
HORIBA, Ltd. Financial Highlights for the Year Ended December 31, 2017
1. Consolidated Financial Results

Amount: millions of yen

12/2016
Result12/2017
Result12/2018
Forecast

Full year

Full year

Net Sales

170,093

Operating Income

18,499Ratio

195,399 +25,305
26,834+8,334

10.9%

13.7%

+2.8P

18,27926,608+8,329Operating Income Ratio

Ordinary Income

Changes

12/2018
Forecast

Changes

Full year

Amount

1st half

Amount+14.9%

210,000+14,600

96,000+8,671+45.1%

29,000+2,165

11,800+2,098

13.8%

+0.1P

12.3%

+1.2P

28,400+1,791

11,500+1,930

13.5%

-0.0P

12.0%

+1.0P

19,000+2,7187,700+1,240ChangesAmount+45.6%

Ordinary Income Ratio

10.7%

13.6%

+2.9P

Net Income attributableto Owners of Parent

12,962

16,281+3,319Net Income Ratio

7.6%

8.3%

+0.7P

9.0%

+0.7P

8.0%

+0.6P

US$

108.78112.16+3.38

110.00-2.16

110.00

-2.34

Euro

120.26126.70+6.44

130.00+3.30

130.00+8.34

12/2018
Forecast

Changes

12/2018
Forecast

Changes

Full year

Amount

1st half

Amount+25.6%

2. Consolidated Segment Results
Net Sales

Amount: millions of yen

12/2016
Result12/2017
ResultFull year

Full year

ChangesAmount

Ratio

Automotive

62,20773,360 +11,152+17.9%

79,000+5,63933,000+2,372

Process&Environmental

16,753

17,433

+680

+4.1%

19,000+1,5668,000-79Medical26,56425,187-1,377-5.2%

26,000+812

13,000+650

Semiconductor

38,82853,300 +14,471+37.3%

58,000+4,69929,000+4,241

Scientific25,738

26,117

+378

+1.5%

28,000+1,882

13,000+1,486

Total

170,093

195,399 +25,305+14.9%

210,000 +14,600

96,000+8,671

12/2016
Result12/2017
Result12/2018
Forecast

Changes

12/2018
Forecast

Changes

Operating Income

Full year

Full year

Full year

Amount

1st half

AmountChangesAmountAutomotive

3,529

7,680

Process&Environmental

1,540

1,094

-446

Medical

2,806

1,918

Semiconductor

9,678

Scientific
Total

Ratio

+4,150 +117.6%

8,000

+319

2,200

+30

-29.0%

1,400

+305

300

-21

-887

-31.6%

2,000

+81

800

-52

15,642+5,963+61.6%

17,000+1,3578,500+1,701

944

498

-445

-47.2%

600

+101

-

+440

18,49926,834+8,334+45.1%

29,000+2,165

11,800+2,098

15

HORIBA, Ltd.(Consolidated)3. Consolidated Segment Sales by Destination
12/2016
Result12/2017
ResultFull year

Full year

62,207
Japan

19,063

Asia

14,310Americas(*)

Amount: millions of yen
12/2018
Forecast

Changes

12/2018
Forecast

Changes

Ratio

Full year

Amount

1st half

Amount73,360 +11,152+17.9%

79,000+5,63933,00024,561
16,209+5,497+28.8%

21,500-3,061

11,500-1,932+1,899+13.3%

19,500+3,2906,500+1,182

9,192

10,431+1,239+13.5%

11,000

+568

4,500

+394

EuropeProcess&Environmental

19,642

22,158+2,516+12.8%

27,000+4,841

10,500+2,72816,753

17,433

+680

+4.1%

19,000+1,566

8,000

-79

Japan

9,067

9,387

+320

+3.5%

10,000

+612

4,500

-410

Asia

2,748

3,792

+1,043+38.0%

4,000

+207

1,500

+129

Americas(*)

2,935

2,058

-876

-29.9%

3,000

+941

1,000

+76

Europe

2,001

2,194

+193

+9.7%

2,000

-194

1,000

+125

Automotive

MedicalChangesAmount+2,372

26,56425,187-1,377-5.2%

26,000+812

13,000

+650

Japan

5,877

5,700

-177

-3.0%

6,000

+299

3,000

+247

Asia

4,852

4,891

+39

+0.8%

5,000

+108

2,500

+46

Americas(*)

6,599

5,510

-1,088-16.5%

5,500

-10

3,000

+241

Europe

9,235

9,084

-151

-1.6%

9,500

+415

4,500

+114

Semiconductor

38,82853,300 +14,471+37.3%

58,000+4,69929,000+4,241Japan

15,004

18,955+3,950+26.3%

21,000+2,044

10,500+1,694

Asia

16,96924,786+7,817+46.1%

27,000+2,213

13,500+1,848Americas(*)

4,980

6,896

+1,916+38.5%

7,000

+103

3,500

+274

1,874

Europe

2,661

+786

+42.0%

3,000

+338

1,500

+424

25,738

26,117

+378

+1.5%

28,000+1,882

13,000+1,486

Japan

7,509

6,471

-1,037-13.8%

7,500+1,028

4,000

+987

Asia

6,082

7,312

+1,230+20.2%

7,500

+187

3,000

-117

Americas(*)

6,562

7,244

+682

+10.4%

7,500

+255

3,500

+417

5,088

Scientific

Europe

Total

5,584

170,093

-495

-8.9%

5,500

+411

2,500

+198

195,399 +25,305+14.9%

210,000+14,600

96,000+8,671

Japan

56,52265,075+8,553+15.1%

66,000+924

33,500+586

Asia

44,96356,993+12,030+26.8%

63,000+6,00627,000+3,089Americas(*)

30,27032,142+1,872+6.2%

34,000+1,857

15,500+1,404

Europe38,337

41,187+2,849+7.4%

47,000+5,81220,000+3,590(Note) Americas includes all countries in North America and South America.

16

HORIBA, Ltd.(Consolidated)5. Consolidated Financial Results (Quarterly Comparison)
1Q

Net Sales
Operating Income

41,2705,172

12/2016 Result
2Q
3Q

38,713
2,606

36,9172,880

Amount: millions of yen
4Q

1Q

53,191
7,840

45,6686,185

12/2017 Result
2Q
3Q

41,6603,516

44,961
4,911

4Q

63,10912,221

12.5%

6.7%

7.8%

14.7%

13.5%

8.4%

10.9%

19.4%

5,100

2,496

2,744

7,937

6,041

3,528

4,780

12,258

Ordinary Income Ratio

12.4%

6.4%

7.4%

14.9%

13.2%

8.5%

10.6%

19.4%

Net Income attributableto Owners of Parent

3,181

946

3,153

5,680

3,778

2,681

4,325

5,496

Operating Income Ratio

Ordinary Income

Net Income Ratio

7.7%

2.4%

8.5%

10.7%

8.3%

6.4%

9.6%

8.7%

US$
Euro

115.35127.15108.05121.89102.31
114.14109.41117.86113.60121.05111.08122.27110.99130.42112.97133.06

6. Consolidated Segment Results (Quarterly Comparison)
Net Sales

Automotive
Process&Environmental

Medical
Semiconductor
Scientific
Total
Operating Income

Automotive
Process&Environmental

Medical
Semiconductor
Scientific
Total

1Q

14,964
4,157
6,939
8,689
6,519
41,27012/2016 Result
2Q
3Q

13,164
3,641
6,860
9,205
5,841
38,713

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

4Q

1Q

22,781
4,943
6,789
11,068
7,609
53,191

17,317
4,194
6,049
12,261
5,845
45,668Automotive
Process&Environmental

Medical
Semiconductor
Scientific
Total
Backlog

Automotive
Process&Environmental

Medical
Semiconductor
ScientificTotal

13,3093,884
6,299
12,497
5,668
41,66014,736
3,955
6,170
13,837
6,260
44,961

27,996
5,398
6,666
14,703
8,343
63,1091Q

12/2016 Result
2Q
3Q

4Q

1Q

12/2017 Result
2Q
3Q

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

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

3,466
418
584
2,528
841
7,840

2,103
173
469
3,499
(61)
6,185

65
147
383
3,299
(379)
3,516

Amount: millions of yen
12/2017 Result
2Q
3Q
4Q

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

7. Consolidated Orders and Backlog Information (Quarterly Comparison)
OrdersAmount: millions of yen
12/2017 Result
2Q
3Q
4Q

1Q

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

1Q

40,566
4,106
4,353
4,018
8,343
61,387

12/2016 Result
2Q
3Q

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

18,6383,684
5,600
10,477
5,858
44,25912/2016 Result
2Q
3Q

42,180
4,576
3,958
4,467
7,863
63,04649,520
4,249
3,583
5,080
7,955
70,3884Q

1Q

22,1995,016
6,632
11,867
8,673
54,38917,338
3,741
6,669
14,461
5,153
47,365

4Q

1Q

48,938
4,323
3,426
5,879
9,018
71,586

48,959
3,870
4,046
8,079
8,326
73,282

19,5894,505
6,284
12,755
6,023
49,158

114
100
383
4,364
(51)
4,911

22,284
5,013
6,077
13,136
7,545
54,058

12/2017 Result
2Q
3Q

55,239
4,491
4,031
8,337
8,681
80,78162,787
5,549
3,938
7,636
9,966
89,878

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

17

HORIBA, Ltd.(Consolidated)

4Q

5,396
672
682
4,479
991
12,221

23,085
4,954
6,870
17,772
8,516
61,1994Q

57,876
5,105
4,141
10,705
10,13987,968