Nomura Investment Forum 2018
HORIBA, Ltd.
December 7, 2018

© 2018 HORIBA, Ltd. All rights reserved.

1

Contents
2018 Jan.-Sept. Results
2018 Forecast
Business Segments Outline
Shareholder ReturnOther Topics
Financial Data
Corporate Profile[Disclaimer]
Plans and forecasts in this presentation that do not constitute historical facts are predictions concerning future business results.
These statements 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© 2018 HORIBA, Ltd. All rights reserved.

2

Contents
2018 Jan.-Sept. Results
2018 Forecast
Business Segments Outline
Shareholder ReturnOther Topics
Financial Data
Corporate Profile© 2018 HORIBA, Ltd. All rights reserved.

3

Review of 2018
 Escalating global trade tensions
 Decline in emerging markets currencies due to tightening by the Fed in
the U.S.
External
Events  Temporary subdued capital spending despite robust demand forsemiconductors
 Automotive electrification, emission regulations

Internal
Events Enhanced North American bases(for Semiconductors and Scientific)
 Full-scale operation at the expanded Aso factory(for Semiconductors)
 Aggressive investment in next-generation automotive technologies© 2018 HORIBA, Ltd. All rights reserved.

4

2018 Jan.-Sept. Results（Billions of Yen）

Made a record-high in sales and profit© 2018 HORIBA, Ltd. All rights reserved.

2017

2018

： Record-highJan.-Sept.
Results

Jan.-Sept.
Results

Sales

132.2

Operating Profit

vs 2017
Diff.

%

146.0

+13.7

+10%

14.6

17.8

+3.2

+22%

O.P. %

11.0%

12.2%

+1.2p

―

Ordinary Profit

14.3

17.5

+3.1

+22%

Net Income attribute to
Owners of Parent

10.7

13.4

+2.6

+25%

USD/JPY
EUR/JPY

111.89109.60-2.29

124.58130.87+6.29
5

2018 Jan.-Sept. Results by Segments（Billions of Yen）
2018

Jan.-Sept.
Results

Jan.-Sept.
Results

Auto

45.3

48.3

+2.9

P&E

12.0

13.4

+1.4

+12%

Medical

18.5

19.2

+0.7

+4%

Semi

38.5

45.4

+6.8

Scientific

17.7

19.5

+1.7

 Increased sales of water quality analyzers and air pollution
analyzers in Asia; the process measurement equipment
business increased in the Americas.
+10%

Total

132.2

146.0

+13.7

+10%

Auto

2.2

1.7

-0.5

P&E

0.4

1.1

+0.7

Medical

1.2

1.3

+0.0

Semi

11.1

14.0

+2.8

Scientific

-0.4

-0.4

+0.0

Total

14.6

17.8

+3.2

： Record-high

Sales

Operating
Profit＜Auto＞

2017© 2018 HORIBA, Ltd. All rights reserved.

vs 2017Diff.

%

 Increased sales of EMS and ECT※1 businesses Decreased profit due to expenses associated with the+7%acquisition, and other factors (MCT※2)※1 Engineering Consultancy & Testing ※2 Mechatronics

＜P&E＞

+18%

＜Medical＞

 Increased sales of blood cell testing instruments in Asia
-24%  The depreciation of the yen against the euro boosted salesin Europe when translated into yen
+180%
+6%

＜Semi＞

 Increased sales and profit due to robust capital spending by+26%
semiconductor manufacturers.
-＜Scientific＞+22%  Increased sales of analyzers for R&D by private sectors

 Expense incurred to strengthen the base in the Americas
6

Booking Trend（Billions of Yen）

Backlog exceeded 100billion yen due to booming Auto. segment,
while Semi. segment showed slow down.
Bookings
2017

Backlog
2017

2018

3Q

4Q

1Q

2Q

3Q

Auto

22.2

23.0

18.8

22.9

P&E

5.0

4.9

4.3

Medical

6.0

6.8

Semi

13.1

ScientificTotal© 2018 HORIBA, Ltd. All rights reserved.

2018

3Q end4Q end3Q end

22.0

62.7

57.8

73.3

4.7

4.8

5.5

5.1

5.6

7.2

6.0

6.2

3.9

4.1

4.4

17.7

19.0

12.4

11.0

7.6

10.7

7.8

7.5

8.5

6.5

5.9

7.6

9.9

10.1

10.7

54.0

61.1

56.0

52.2

51.7

89.8

87.9

101.9
7

Contents
2018 Jan.-Sept. Results
2018 Forecast
Business Segments Outline
Shareholder ReturnOther Topics
Financial Data
Corporate Profile© 2018 HORIBA, Ltd. All rights reserved.

8

Market Overview for the Full Year 2018
Auto
P&E
Medical

Semi

Scientific© 2018 HORIBA, Ltd. All rights reserved.

Strong appetite for investment in the global automotive sector due to tighter
emission regulations in Japan & Asia and innovation for electrification &autonomous driving
Increase in demand due to tighter environmental regulations in emerging
countries
Recovery in investment in the oil industry due to higher oil prices
Japan: Favorable sales to doctors in private practiceOverseas: Increase in demand for blood testing equipment in emerging
countries
Anticipate a pick-up in investment, due to solid demand of semiconductor
devices from a mid- to long-term perspective
Robust corporate R&D expenditures
Accelerating research on new materials for secondary batteries
92018 Forecast（Billions of Yen）

Sales and profit revised downward due to increased investments in Auto. segment
and to reflected the latest semiconductor market trend. No change in dividends
2017： Record-highResults

2018
Previous Forecast Current Forecast(as of Aug. 3)(as of Nov. 9)

VS
2017

VS Previous
Forecast

Sales

195.3

212.0

207.0

+11.6

-5.0

Operating Profit

26.8

31.0

27.5

+0.6

-3.5

O.P. %

13.7%

14.6%

13.3%

- 0.4p-1.3pOrdinary Profit

26.6

30.4

26.9

+0.2

-3.5

Net Income attribute to
Owners of Parent

16.2

21.5

20.0

+3.7

-1.5

USD/JPY
EUR/JPY112.16110.00110.00-2.16

ー126.70130.00130.00+3.30

ー© 2018 HORIBA, Ltd. All rights reserved.

10

2018 Forecast by Segments
10

2017

： Record-high

Sales

Operating
ProfitResults(Billons yen)

2018
Previous Forecast Current Forecast(as of Aug. 3)(as of Nov. 9)

VS
2017

VS Previous
Forecast＜Auto＞

Auto

73.3

79.0

78.0

+4.6

P&E

17.4

19.0

19.0

+1.5

Medical

25.1

26.0

26.0

+0.8

Semi

53.3

60.0

56.0

+2.6

Scientific

26.1

28.0

28.0

+1.8

 Revised sales downward reflected the recent
order trend (ECT)-  Revised profit downward due to temporary
expense in the US, expenses associated withthe acquisition of FuelCon AG (Germany) and-4.0
increased investments to enhance R&D
capabilities

Total

195.3

212.0

207.0

+11.6

-5.0

＜Semi＞

Auto

7.6

8.0

6.5

-1.1

-1.5

 Revised sales and profit reflected the recent
order trend

P&E

1.0

1.4

1.4

+0.3

-

Medical

1.9

2.0

2.0

+0.0

-

Semi

15.6

19.0

17.0

+1.3

-2.0

Scientific

0.4

0.6

0.6

+0.1

-

Total

26.8

31.0

27.5

+0.6

-3.5

© 2018 HORIBA, Ltd. All rights reserved.

-1.0＜P&E, Medical, and Scientific＞
 No change from the previous forecast

Total sales and profit will renew
record-highs
11Contents
2018 Jan.-Sept. Results
2018 Forecast
Business Segments Outline
Shareholder ReturnOther Topics
Financial Data
Corporate Profile© 2018 HORIBA, Ltd. All rights reserved.

12

Auto

Jan.-Sept. Results and 2018 Forecast(Billions of yen)2018 Jan.-Sept. Results
EMS※1 Europe - Solid demand after new regulations
China, India - Demand increase for compliancewith new regulations＋ MCT※2 Lower profitability due to temporary expensein the US, and expenses associated withthe acquisition of FuelCon AG (Germany)
＋
※3
- ECT
Expanded business in next-gen. auto. technology＋※1: Emission Measurement Systems ※2: Mechatronics ※3: Engineering Consultancy & Testing

38.7
28.1

26.6

EMS Demand growth in China and India＋-

2.9 2.2

45.2

34.0 30.6

0.5

32.7
5.5

2.9 2.1

2.4

4.0

15.1H 15.2H 16.1H 16.2H 17.1H 17.2H 18.1H 18.2H
Fore.

Sales

【Full year】 Sales and O.P.
49.5 55.0

MCT Steady delivery of orders received for Europe, Asia 4.2＋ ECT Aggressive investment to accelerate growth2013© 2018 HORIBA, Ltd. All rights reserved.

O.P.

42.7

2018 Full Year Forecast
＋

Sales

【Half year】 Sales and O.P.

5.8

65.4 62.2

O.P.

73.3 79.0 78.0
7.6

8.0

2017

2018

2018

Prev.
Fore.

Current
Fore.

5.2

6.5

3.5
2014

2015

2016

13

Auto

Effect of enhanced emission regulations
Status of the next-gen. emission regulations
HORIBA BIWAKO E-HARBOR achieved record-high output

 Sales of EMS business
2015(Before the start of E-HARBOR)¥39.8bn

Up 25%

Production at HORIBA BIWAKO E-HARBOR

2018(forecast)¥49.0bn Emission regulations
Regulation
EU
Japan
WLTP1
Oct. 2018
Sep. 20172
RDE
2022 (plan)
China and India: Adoption of new regulations in 2020 (plan)(Same level as Euro6)
1: Worldwide harmonized Light vehicles Test Procedure
2: Real Driving Emissions© 2018 HORIBA, Ltd. All rights reserved.

14

Auto

Enhanced engineering capability

Increase in solution provision for the
automotive development processes Vehicle testing system (Subaru Corp.)
・Provide the powertrain testing system that reproduces
climate change and other conditions of real driving.
・Tie up with HORIBA’s labs in Japan and the U.S. andcurtail the customer’s development processes.

HORIBA MIRA in the U.K. opened
MIRA Technology Institute
Jointly invested with the LLEP* in the U.K.
 Aimed at fostering personnel in the next-gen.
automotive industry
 Education facility in a 24,500㎡ site Managed by local universities (inviting professors) Joint dev’t of EV technologies (Keihin Corp.)
・ HORIBA MIRA provides the battery management
system to assists the EV system development.

*LLEP: Leicester &Leicestershire
Enterprise Partnership
Vehicle testing system© 2018 HORIBA, Ltd. All rights reserved.

Battery management system(Opened in Sep. 2018)
Rendering of MIRA Technology Institute

Quoted from https://www.miratechnologypark.com/
15

Auto

Investment plan for a battery evaluation testing facility

Introducing an advanced evaluation concept to connect the real and the virtual
Battery evaluation testing facility for electricvehicles(HORIBA BIWAKO E-HARBOR) Assessment of the combination of a battery, powertrain,
and a vehicle
 Testing a wide range of temperature environment
 To be used in evaluating xEV and fuel batteries
 Operation to start in July 2019 (plan) Investment amount: about ¥1.3bn
Advanced Battery Development Suite (ABDS)(HORIBA MIRA)HORIBA MIRA’s
engineering
capability to be
deployed globally© 2018 HORIBA, Ltd. All rights reserved.

16

Auto

Expanding Business Domains (FuelCon Acquisition)
Acquisition of FuelCon AG A leading German developer of fuel celland battery test systems for electricvehicles Owns diverse fuel cell test systems
 Supplied systems mainly to German
automakers

Sales Breakdown

Established

2001

Sales

11,504k EUR (2017)

Operating profit

199k EUR (2017)

Workforce

62 (ex. Management)

Location

Magdeburg, Germany(About 160km west of Berlin)

Major customers

Volkswagen, BMW, Audi, Hyundai, Bosch

Fuel cell
test
systems46%

Lithium ion
battery test
systems
54%

HORIBA Group’s expansion of business domains

Use of FuelCon’s
experience and know-how
to expand electric vehicle
business© 2018 HORIBA, Ltd. All rights reserved.

17

Auto

Expanding Business Domains (Support to the UCI)
Support to the UCI for a new institute Committed support to the University of California, Irvine (UCI) to establish the Horiba Institute for
Mobility and Connectivity (HIMAC)
 Enhance industry and academia partnering in the energy sector of the UCI, a credible instituterecognized by the Environmental Protection Agency (EPA) and other U.S. regulatory authorities
HORIBA Group’s expansion of business domains

Mobility field

Contribution of HORIBA’s analysis and measurement technologies
across the changing energy industry

Provision of measurement instruments【HIMAC】
Combine energy and mobility fields

Integration
Research and education efforts on
integrated systems

Energy field© 2018 HORIBA, Ltd. All rights reserved.

A place for research and education

18

P&E

Jan.-Sept. Results and 2018 Forecast(Billions of yen)2018 Jan.-Sept. Results＋＋＋

Stack gas analyzers: Sales increase in North America due toenforced marketing; flattish demand in Japan
Air quality monitoring: Demand growth in Europe andemerging countries due to enhanced regulations
Water quality: Sales increase due to business expansion in
Japan and emerging countries

2018 Full Year Forecast＋＋＋

Stack gas analyzers: Anticipate progress in VOC
regulations in China

Process measurement equipment: Anticipate a recovery ininvestment due to higher oil prices
Water quality monitoring: Capture replacement demand inJapan and expand business in emerging countries© 2018 HORIBA, Ltd. All rights reserved.

Sales【Half year】 Sales and O.P.

O.P.

9.3 9.2 9.7
8.9
8.4
8.2
8.0
7.7
0.9 0.8 0.8

0.6

0.7 0.8
0.3

0.5

15.1H 15.2H 16.1H 16.2H 17.1H 17.2H 18.1H 18.2H
Fore.

Sales

【Full year】 Sales and O.P.
14.7

16.4 16.7 16.7 17.4

2.0

1.7

1.2
2013

1.5
1.0

2014

2015

2016

2017

O.P.

19.0 19.0

1.4

1.4

2018

2018

Prev.
Fore.

Current
Fore.

19

P&E

Initiatives for expansion into new markets
Business growth in Asia

Launch of “HAKARU※ EXpress”

Expand the environmental regulation and monitoring business

From a hardware sales business to a data sales
business using cloud computing

 Delivery to and continued orders received from Ho Chi
Minh and 5 other cities/provinces in Vietnam
・ Air Quality Monitoring Station (AQMS)

1. Provide the water quality measurement report
2. Use cloud and monitor the status of equipment

・ Water Quality Monitoring Station (WQMS)

Main operation by HORIBA Advanced Techno

Main operation by HORIBA, Vietnam
Air pollution monitoring
equipment business:
Consolidated sales (¥bn)

 Installation of automatic total nitrogen, total phosphorous
measurement equipment

2.4

2.1

2.5

3.0

2015

2016

2017

2018

HAKARU EXpress

Install
Equipment

StableOperation
RoutineMaint.

Fore.

Daily
Maint.

Measurement

Analytical part of AQMS, produced
at HORIBA BIWAKO E-HARBOR© 2018 HORIBA, Ltd. All rights reserved.

Trouble

AQMS

Diagnosis

Analysis

RecoveryDan Horiba
President of HORIBA
Advanced TechnoCo., Ltd.

“HAKARU EXpress” service ※: HAKARU = Measuring in Japanese20Medical Jan.-Sept. Results and 2018 Forecast(Billions of yen)2018 Jan.-Sept. Results

Sales【Half year】 Sales and O.P.

O.P.

＋

Strong sales of new products in Japan13.9 13.7 13.8 12.7＋

Sales increase in Europe in yen terms due to the weakeryen

1.3 1.2 1.5 1.2

Business expansion in emerging countries (China, India)

15.1H 15.2H 16.1H 16.2H 17.1H 17.2H 18.1H 18.2H＋

12.3 12.8 13.1 12.8

0.8 1.0 1.0 0.9
Fore.

2018 Full Year Forecast
Intensified competition in hematology and
CRP analyzers in Japan＋

Further business expansion in emerging countries withhigh demand

2.4

Higher sales promotion expenses due to new productlaunch2013© 2018 HORIBA, Ltd. All rights reserved.

O.P.

26.8 27.0 27.6 26.5 25.1 26.0 26.0

＋
-

＋
-

Sales

【Full year】 Sales and O.P.

2.5

2.8

1.7
2014

2015

2016

1.9

2.0

2.0

2017

2018

2018

Prev.
Fore.

Current
Fore.

21

Medical Initiatives for business expansion
New products to be launched globally
Mid and large-sized
new product“HELO Solution”
Completed installationin France, Brazil, Thailand
and the U.K.

Installation case in Brazil

Opened the application center (biochemical)
to accelerate the U.S. business To start full operation in August 2018
in Irvine, California
 For application development in thebiochemical field Biochemical business consolidated sales:¥4.1bn(2017)5 diff. white cell diagnosis + CRP“Yumizen H630”
Favorable sales to doctors in private
practice in Japan

Business alliance with Siemens Healthcare Diagnostics
In the process of arranging products for obtaining
accreditation© 2018 HORIBA, Ltd. All rights reserved.

Biochemical analytical equipment to be launched in
the U.S. (OEM supply from JEOL Ltd.)
22

Semi

Jan.-Sept. Results and 2018 Forecast(Billions of yen)2018 Jan.-Sept. Results
Record-high sales and O.P.
Record-high production volume in Mass Flow Controllers(MFC)
The Aso factory expansion boosted supply capacity.

＋＋＋

2018 Full Year Forecast
＋
-

＋
＋

Anticipate a pick-up in investment due to solid demand froma mid- to long-term perspective, despite the current timeout in capital spending demand by semicon makers
Japan: The Aso factory’s full-fledged operation has
stabilized the supply system.
Overseas : Opening of a new development base in the U.S.
to enhance a global R&D capacity© 2018 HORIBA, Ltd. All rights reserved.

Sales【Half year】 Sales and O.P.

19.1 16.2 17.8

20.9

5.1 4.2 4.4 5.1

24.7
6.7

O.P.

28.5

8.8

32.3
23.6
10.2
6.7

15.1H 15.2H 16.1H 16.2H 17.1H 17.2H 18.1H 18.2H
Fore.

Sales

【Full year】 Sales and O.P.

24.1 28.9

4.8

6.4

2013

2014

53.3

60.0 56.0

15.6

19.0 17.0

2017

2018

2018

Prev.
Fore.

Current
Fore.

35.3 38.8

9.4

9.6

2015

2016

O.P.

23

Semi

Strengthen supply capacity and global R&D

Full-fledged production after the Aso expansion

Opening of HORIBA Reno Technology Center

Combined output at Aso and Kyoto
350,000 MFCs per year

Enhance a N. America development base in the focus area

Production status: Record-high output (March 2018)
Aso Factory: Mass production of MFCs
Kyoto Factory: Development and production ofadvanced MFCs

Start: Aug. 2018 Investment: App. ¥1.2bn
Place: Reno, Nevada, the U.S.
Activity: Development in fluid measurement and control
technologies

Expanded area

HORIBA STEC Aso Factory

Construction completion
ceremony (May 2018)

Establish a global R&D capability

Reno Technology Center’s surroundings

Relocate into the semiconductor industry
cluster region
1. Deepen relationship with customers
2. Promptly capture needs
3. Incorporate into products

Reno Tech Center
Semi/battery makers

HORIBA’s semicon bases
SPE makers

HORIBA’s global MFC market share: About 60% (HORIBA’s estimate; as of 2018)© 2018 HORIBA, Ltd. All rights reserved.

24

Scientific Jan.-Sept. Results and 2018 Forecast(Billions of yen)2018 Jan.-Sept. Results＋ Sales increase in Japan, Americas and Europe on the back ofrobust corporate R&D spending-

Expense incurred to strengthen bases in Americas

Sales【Half year】 Sales and O.P.
13.1 13.6 12.3 13.3
0.6 0.5

0.2

O.P.

14.6
11.5

15.4
12.5
1.1

0.9

0.6
-0.4

-0.5

15.1H 15.2H 16.1H 16.2H 17.1H 17.2H 18.1H 18.2H
Fore.

2018 Full Year Forecast＋ Solid sales in Japan to continue

22.9＋ Enhance actions for business expansion in secondary batteries-

Risk in temporary slowdown in sales of spectroscopes forsemicon makers in Americas

O.P.

28.0 28.0
25.6 26.7 25.7 26.1

1.2
0.9

1.1

0.9
0.4

2013

© 2018 HORIBA, Ltd. All rights reserved.

Sales【Full year】 Sales and O.P.

2014

2015

2016

2017

0.6

0.6

2018

2018

Prev.
Fore.

Current
Fore.

25

Scientific Strengthen global bases and expand core businessOpening of HORIBA New Jersey
Optical Spectroscopy Center
Start: Aug. 2018 Investment: App. ¥2.1bn
Place: Piscataway, New Jersey, the U.S.
Activity: Development and production of fluorescenceanalyzers and spectrometers
Expand demand
for semiconductors

Expand into thelife science field

Fluorescence analyzer
DUETTA

Spectrometer

Hosting of the RamanFest 2018 International
Symposium on Raman technologies
Held on June 25 and 26, 2018
 Attended by about 100 advanced technology researchersand developers
 HORIBA initiated this project, held the first one in 2013
and the first in Japan in 2018.
 16 academic/corporate speakers and poster session
 Connecting academia and industries

Aim at further business expansion as a leading company
with a 50-year history in Raman Spectroscopy
Raman Spectroscopy
global share 30%※HORIBA New Jersey Optical Spectroscopy Center© 2018 HORIBA, Ltd. All rights reserved.

RamanFest 2018

* HORIBA’s estimate (as of 2018)26

Contents
2018 Jan.-Sept. Results
2018 Forecast
Business Segments Outline
Shareholder ReturnOther Topics
Financial Data
Corporate Profile© 2018 HORIBA, Ltd. All rights reserved.

27

Shareholder Return
Basic policy-Dividend payment + Share buyback = 30% of Consolidated net profit to be targeted-Remaining earnings are retained internally for strategic investment (i.e. facilities, M&A)
(yen)

Per-share dividend(from 2008 to 2018 Forecast)

Dividends per share and Share buyback
InterimYear-end

2016 Results
85 yen[30 yen, 55 yen]2017 Results 116 yen[40 yen, 76 yen]2018 Forecast 120 yen[50 yen, 70 yen]

Renewed record-highs in
dividend in 7 years (Fore.)
44

40

50

60

116 120
85

67 70

13 17
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Fore.

© 2018 HORIBA, Ltd. All rights reserved.

28

Contents
2018 Jan.-Sept. Results
2018 Forecast
Business Segments Outline
Shareholder ReturnOther Topics
Financial Data
Corporate Profile© 2018 HORIBA, Ltd. All rights reserved.

29

HORIBA’s perspectives on ESG investment
Contribution to the environment and society via its business;
Building of an open & fair governance structure【Examples】
Emission gas
measurement system
Portableemissionmeasurement
systemOBS-ONE

Contribute toemission regulations,realizing healthy society,preventing climate change

Environment-related
products
Contribute to environmental preservation andimprovement by identifying
Industrial water
causes of pollutions via
quality analyzer
analysis of air pollutants
H-1 Series
and industrial waste© 2018 HORIBA, Ltd. All rights reserved.

Outside Directors with diverse
Innovation for electrification
experiences and skills& autonomous driving
Help realize safe, pleasantsociety

MIRA Technology InstituteContribute to industries’
development by developing
next-gen. talents

Aso factory’s expansion
Contribute to local communities
and continuous job creation

Raise the quality of strategies by making
decisions upon active discussions at theBoard of Directors and corporate value
Sawako Takeuchi
Academic background as a holder of a
doctor’s degree in engineering andinternational experience

Masahiro Sugita
Deep insight and knowledge on financeand economy, and accumulated experience
as a director and auditor of othercompanies

Jiko Higashifushimi
Insight as Head Priest of the Shorenin
Religious Corporation and work experienceat a financial institution
30

HORIBA Premium Value to improve asset efficiency
Case of an improved asset efficiency in the MCT business Improvement at Olomouc Factory (Czech) with a focus
on production of standard Chassis dynamometers Full review of production processes and supply
chain and adoption of the Kanban pull system

25% cut in production lead-timeWorkshops on adoption of a new benchmark
 Action plan for those responsible in global finance Workshops for managers

Olomouc Factory (left) and its production area (right)

HORIBA Premium ValueA new management benchmark
with awareness on WACC

 Action plan (examples)
O.P.
Cost of capital・Promoting the benchmark to all group employees
・Optimization of group inventory by sharing inventory(Invested capital X In-houserate of cost of capital)
information
・Building of a sales company-factory cooperative structure for collection of receivables© 2018 HORIBA, Ltd. All rights reserved.

31

Contents
2018 Jan.-Sept. Results
2018 Forecast
Business Segments Outline
Shareholder ReturnOther Topics
Financial Data
Corporate Profile© 2018 HORIBA, Ltd. All rights reserved.

32

Trend of Market capitalization¥407bnon May 14, 2018
(Record-high)¥132bnin Jan. 2008¥52bn
in Dec. 2008

Jan-2008

Jan-2009© 2018 HORIBA, Ltd. All rights reserved.

Jan-2010

Jan-2011

Jan-2012

Jan-2013

Jan-2014

Jan-2015

Jan-2016

Jan-2017

Jan-2018

33

Operating Profit Analysis (vs 2017)(Billions of yen)

2017

2018

Jan.-Sept.

14.61

Jan.-Sept.

Increase
Sales

Increase
Cost of
Goods
Sales

Exchange
Impact for
Gross
ProfitExchange
Impact for
Expenses

Increase
R&D Cost

Increase
Other
Expenses+12.75

-5.26

+0.09

-0.32

-0.75

-3.24

Increase
Gross Profit +7.49

17.87

Exchange Impact -0.22 Increase Expenses -4.00

Increase of Operating Profit +3.26© 2018 HORIBA, Ltd. All rights reserved.

34

Impact of Fluctuation in Foreign exchange

Exchange rate impact
for 2018 Forecast

Exchange rate impact (2018 Jan.-Sept. Results vs 2017)
Sales +¥980mil O.P. -¥220mil
Sales
Total
Auto
P&E
Medical
Semi
Scientific
Total

+660
+40
+280
-170
+160
+980

USD

Total

-130 +480-50+60-60 +370-390+30-150 +290-790 +1,250

-40
+50
-100
-140
+10
-220

USD

EUR

-20
+1
+1
-320
-3
-330

-1
+30
-60
+20
+10
+1

2017
（Yen）
USD
EUR
© 2018 HORIBA, Ltd. All rights reserved.

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

Operating Profit
EUR

Jan.-Sept.

111.89124.58(Millions of Yen)

Sales
USD -¥460mil
EUR -¥320mil

Operating profit
USD -¥200mil
EUR -¥ 20mil
2018Jan.-Dec.

112.16126.70Jan.-Sept.

109.60130.87Jan.-Dec.(Fore.)

110.00130.0035Capital Investment, Depreciation, R&D(Billions of Yen)

Capital investment; expected to exceed the last year results
while revised downward considering the recent progress
2018

2017

Results

2018

Current
Forecast（As of Aug. 3）（As of Nov. 9）

-2.0

8.3

7.4

-

5.6

5.2

-

10.0

10.9

+0.2p

7.6%

7.5%

Capital Investment

11.6

16.0

Depreciation

7.5

7.5

R&D

13.9

15.5

14.0
7.5
15.5

(To net sales)

7.1%

7.3%

7.5%

© 2018 HORIBA, Ltd. All rights reserved.

2017

vs
Previous
Forecast

Previous
Forecast

Jan.-Sept. Jan.-Sept.

36

Consolidated Cash Flows(Billions of Yen)

2018
First Half2017
First Half

Variation

Cash flows from operating activities+12.40+16.27-3.86

Cash flows from investing activities

-4.43

-6.80

+2.37

Cash flows from financing activities

-4.31

-7.10

+2.79

Cash and cash equivalents at end of year

61.47

54.17

+7.29

Free cash flows

+7.97

+9.47

-1.49

© 2018 HORIBA, Ltd. All rights reserved.

37

Cash Balance
Total Loan Balance(Billions of Yen)

46.7

44.7

※1

Cash
47.8

Bonds
15.0
Long
16.8
Short
12.8

2015
242％
56％

※1

Cash
51.9

Bonds
15.0
Long
19.2
Short
12.4

2016
237％
55％

(Consolidated basis, each end of year)

42.0

Cash※1
58.3

40.5

Bonds
15.0

Bond
redemption
In 2020
Cash※1
61.4

Bonds
15.0

Long
18.7

Long
18.3

Short 8.3

Short 7.1

2017
239％
57％

2018 end of Jun.
245％
57％

Borrowedfrom JBIC※2¥15.1bn

Current ratio
Capital ratio- Loan repayment due to group financing- Recent issuer rating : R&I “A” (September 2018), JCR “A” (August 2018)*1 Cash*…Cash and Cash Equivalents at End of Period. *2 JBIC: Japan Bank for International Cooperation© 2018 HORIBA, Ltd. All rights reserved.

38

Contents
2018 Jan.-Sept. Results
2018 Forecast
Business Segments Outline
Shareholder ReturnOther Topics
Financial Data
Corporate Profile© 2018 HORIBA, Ltd. All rights reserved.

39

Corporate Profile
Head Office
Foundation
Incorporation
Fiscal Year End

Kyoto, Japan
1945
1953
December 31- Corporate motto -Atsushi Horiba
Chairman & Group CEO
To have interest and pridein our work to enjoy our lives© 2018 HORIBA, Ltd. All rights reserved.

40

Business Segments
Automotive Test Systems

Process & Environmental

Medical

Semiconductor

Scientific© 2018 HORIBA, Ltd. All rights reserved.

・Emission Measurement Systems
・Test Automation Systems
・Intelligent Transport Systems
・Engineering Consultancy & Testing(HORIBA MIRA, Ltd)・Environmental & Process Systems
・Environmental Radiation Monitor
・Environmental Regulation & Process Business

・In-Vitro Diagnostic (IVD) Systems
・Integration of HORIBA ABX SAS’s
Technology & Marketing Know-how
・Mass Flow Controller
・In-situ Analysis
・Synergy among HORIBA HQ, HORIBA STEC, HORIBA Advanced Technoand HORIBA France SAS’s Technologies

・Raman, Grating, and Fluorescence・Synergy of HORIBA and HORIBA Jobin Yvon’s Technologies
41

Business Segments
Sales Breakdown by Segment

Sales: ¥195.3bn
13%

Automotive Test Systems

Scientific

26.1
（231）

Process & Environmental

Medical

27%

73.3
（649）

Semicon53.3（471）
Medical

Semiconductor

Automotive

25.1
（222）

P&E

17.4
（154）

13%
Scientific9%( ) =Segment Sales in MUSD
% = Segment Sales Ratio© 2018 HORIBA, Ltd. All rights reserved.

38%(Sales of FY2017)42

Market Share
GlobalDomestic

Emission Measurement Systems

Automatic Blood Cell Counterplus CRP

80%

Stack Gas Analyzers

100%

20%

(As of December 31, 2015)

Mass Flow Controllers

60%

Raman Spectrophotometers

30%

Gratings

35%※Market shares quoted are estimates by HORIBA.

© 2018 HORIBA, Ltd. All rights reserved.

43

HORIBA Worldwide
Sales of FY2017 : ¥195.3bn(1,729 MUSD)

Sales Ratio by Region
EU
21%

Japan
33%

Americas17%© 2018 HORIBA, Ltd. All rights reserved.

Asia
29%

The Number of Group Companies by region(As of December 31, 2017)

Americas
Europe
Asia
Total

9
22
17 (4 in Japan, including HORIBA, Ltd.)
48
44

Employees by Region
Americas
2%

Other Europe

2%

The U.S.

7,399

11%
Germany

Japan

8%

Japan
38%
38%

The U.K.

11%
France12%

Total Number of Employees

Other
Asia
14%16%

Total Asia : 4,041

54%
Total Europe： 2,414

33%
Total Americas： 944

13%(As of December 31, 2017)© 2018 HORIBA, Ltd. All rights reserved.

45

© 2018 HORIBA, Ltd. All rights reserved.

46