Financial Information
HORIBA, Ltd.
December, 2020
© 2020 HORIBA, Ltd. All rights reserved.

1

Contents
2020 3Q (Jan.-Sep.) Results2020 Forecast
Shareholder Return
Topics -New product development for focused marketsFinancial Data
Corporate Profile© 2020 HORIBA, Ltd. All rights reserved.

2

Contents
2020 3Q (Jan.-Sep.) Results2020 Forecast
Shareholder Return
Topics -New product development for focused marketsFinancial Data
Corporate Profile© 2020 HORIBA, Ltd. All rights reserved.

3

2020 3Q (Jan.-Sep.) Results(Billons of Yen)

Decreased in sales and profits due to a decline in sales
all business segments except the semiconductor segment
2020

3Q Results(Jan-Sep)

3Q Results(Jan-Sep)

Changes%

Sales

137.0

129.7

-7.2-5%

Operating Profit

12.0

10.9

-1.0-9%

O.P.%

8.8%

8.5%

-0.3p

Ordinary Profit

11.5

10.7-0.7

Net income attributableto Owners or Parent

8.4

7.5

-0.9 -11%

109.12
122.62

107.55120.93

USD/JPY
EUR/JPY© 2020 HORIBA, Ltd. All rights reserved.

vs 2019

2019

-7%

-1.57
-1.69
4

2020 3Q (Jan.-Sep.) Results by Segment<Auto>Sales
2019
3Q Results(Jan-Sep)

20203Q Results(Jan-Sep)(Billons of Yen)vs 2019%• Affected by stagnation of corporate activities owing to the spread of COVID-19.
EMS/MCT*: Delayed product shipment and acceptance.

Auto

52.0

41.6 -10.4 -20%

P&E

13.8

12.7

-1.0

Medical

18.7

15.2

-3.4 -18%

Semi

33.5

41.7 +8.2 +24%

<Medical>Scientific

18.8

18.3

-0.4-3%

Total

137.0

129.7

-7.2-5%• The number of tests performed at hospitals decreased as the spread ofCOVID-19 led to a decrease in the number of patients who visit hospital-8%

3Q Results(Jan-Sep)

2020
3Q Results(Jan-Sep)

vs 2019• In response to a recovery of semiconductor manufacturers’ capital
expenditures driven by an increase in demand for semiconductors.

%

Auto

2.7-0.0

-2.8-

P&E

0.9

0.7

-0.2

-22%

Medical1.0-0.4-1.5-Semi

7.4

9.8 +2.4 +33%

Scientific-0.2

0.8 +1.1

Total

12.0

10.9

© 2020 HORIBA, Ltd. All rights reserved.

-1.0• Affected by stagnation of corporate activities owing to the spread of COVID-19<Semi>

Operating Profit
2019

<P&E>

-9%<Scientific>• Sluggish R&D investment by private companies and others due to the spreadof COVID-19• Solid demand for optical components for semiconductor production equipment
manufacturers and life science purposes*EMS: Emission Measurement Systems / MCT: Mechatronics

5

Contents
2020 3Q (Jan.-Sep.) Results2020 Forecast
Shareholder Return
Topics -New product development for focused marketsFinancial Data
Corporate Profile© 2020 HORIBA, Ltd. All rights reserved.

6

2020 External Environment
GeneralAutoP&EMedicalSemi
Scientific© 2020 HORIBA, Ltd. All rights reserved.

Economic activities have been resumed after lifting of restrictions but the future remains
uncertain.
Negative impacts from macroeconomic trends, such as the results of the US presidential
election and the US-China trade conflicts, are of concern.
Most likely to be affected from automobile-related manufacturers‘ revision and reduction of R&D investments.
Possible delay in shipment and acceptance of products because of measures to restrict the movement ofpeople and goods by various countries and regions.

Public utility projects are continuing, driven by economic measures, but investment bycompanies is sluggish.
Falling crude oil prices may result in reduction in investment by the oil industry.
The number of patients who visit hospitals is projected to continue declining globally, due to theCOVID-19 crisis.
Demand for testing will recover in the medium- to long-term.

In response to an increase in demand for semiconductors associated with theexpansion of telework and digital business, semiconductor manufacturer's capital
expenditures have recovered.
Demand for semiconductor-related measurement technologies is increasing, while
demand in the pharmaceutical and life science sectors is solid.
R&D investment by companies is slow due to the sluggish economic activity.
7

2020 Forecast(Billons of yen)

In light of the progress achieved up to the third quarter of this year,
revised operating profit and ordinary profit forecasts
2020

2019
Results

Previous
Forecasts(as of Aug. 11)

Forecasts(as of Nov. 12)

vsvs 2019

Previous
Forecasts

Sales

200.2

188.0

188.0-12.2-

Operating Profit

20.9

15.0

16.0

-4.9

+1.0

O.P.%

10.4%

8.0%

8.5%

-1.9p

+0.5p

Ordinary Profit

20.5

14.5

15.0-5.5+0.5

Net income attributableto Owners or Parent

15.4

10.5

10.5

-4.9

-109.03122.03107.00120.00107.00120.00

-2.03
-2.03

USD/JPY
EUR/JPY© 2020 HORIBA, Ltd. All rights reserved.

Changes8

2020 Forecast by Segment(Billons of yen)

Sales
2019
Results

2020
Previous
Forecasts

Forecasts(as of Aug. 11)(as of Nov. 12)

vs 2019<Auto>

vs Previous
Forecasts

Auto

81.0

68.0

67.0 -14.0

-1.0

P&E

19.5

17.5

18.0

-1.5

+0.5

• Product shipment and acceptance expected to be delayed inEMS and MCT.

Medical

25.3

22.0

21.0

-4.3

-1.0

<Medical>Semi

47.154.0

55.5 +8.3 +1.5

Scientific

27.1

26.5

26.5

-0.6

-Total

200.2

188.0

188.0 -12.2-• The number of tests performed at hospitals is projected tocontinue to stagnate, along with an anticipated decrease in thenumber of patients who visit hospital.

<Semi>

Operating Profit
2019
Results

2020
Previous
Forecasts

Forecasts(as of Aug. 11)(as of Nov. 12)

vs 2019

vs Previous
Forecasts

Auto

6.4

0.5

0.5

-5.9

-P&E

1.6

0.5

1.0-0.6+0.5

Medical1.3--0.5-1.8-0.5

Semi

10.7

13.5

14.0 +3.2+0.5

Scientific

0.7

0.5

1.0 +0.2+0.5

Total

20.9

15.0

16.0+1.0© 2020 HORIBA, Ltd. All rights reserved.

-4.9• Revised upward due to a increase in sales in response to aincrease demand for semiconductors<P&E, Scientific>• In light of the progress achieved up to the third quarter of thisyear, revised upward forecasts

9

Contents
2020 3Q (Jan.-Sep.) Results2020 Forecast
Shareholder Return
Topics -New product development for focused marketsFinancial Data
Corporate Profile© 2020 HORIBA, Ltd. All rights reserved.

10

Shareholder ReturnDividends per share and Share buybacks
2018 Results 145yen [Interim 50yen/Year-end 95yem]
2019 Results 130yen [Interim 50yen/Year-end 80yen]

Ordinary dividend: 125yen
Commemorative dividend forthe 65th anniversary of thecompany foundation: 20yen

2020 Forecasts 75yen [Interim 30yen/Year-end 45yen]（remains unchanged from disclosure on 9th June）

Basic policy© 2020 HORIBA, Ltd. All rights reserved.

 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)

11

Contents
2020 3Q (Jan.-Sep.) Results2020 Forecast
Shareholder Return
Topics -New product development for focused marketsFinancial Data
Corporate Profile© 2020 HORIBA, Ltd. All rights reserved.

12

New Product Development for Focused Markets

MLMAP2023
Market Oriented Business
Bio & Healthcare/Materials & Semiconductor【Three fields of focus by HORIBA】
MarketEnergy & Environment

Bio & Healthcare

Materials & Semiconductor

Main Target

Mobility, Power generation,
Environmental preservation, Water

Clinical testing, Pharmaceutical,
Drug discovery, Cells, DNA

Advanced materials,
Materials for semiconductorMid-Long Term Management Plan “MLMAP2023”－Market Oriented Business

Deploying new measurement and analysis solutions utilizing core technologies in focused markets

Development in the bio-markets, such as drug discovery
and regenerative medicine

Contributing to material development and quality control ofsemiconductors and secondary batteries

Optical Component “OC-300”

Centrifugal nanoparticle analyzer “Partica CENTRIFUGE”

The key component of the OCT* system usedfor fundus examination in ophthalmology
Imaging technology for shooting the internal
structure and shape of a sample with highresolution, high-speed, and non-contacting.

Particles contained in the sample
can be measured at the nano-level.
The condition of the material canbe visualized.

*Optical Coherence Tomography© 2020 HORIBA, Ltd. All rights reserved.

13

New Product Development for Focused Markets

MLMAP2023
Market Oriented Business
Energy & Environment

Strengthening the existing areas and further challenging growth areas
Highly accurately reproduce complex
Real Driving Emissions (RDE) in the lab
Significantly broader test conditions; more complex
operating and environmental conditions

Opened a safety test facility for in-vehicle batteries
Engaged in the development andtesting of in-vehicle batteries for
20 years

New application “RDE+”

Enables a composite environmental evaluation test of batteries Developed an indoor measurement method that reproduces the same driving
environment as outdoors.
 Obtain actual driving data, and reproduce it with a chassis dynamometer anda robot driver.

 Covers small, medium, and large batteries.
 During a vibration test, implement battery charge/discharge and temperatureadjustment simultaneously.

Up to 75%* reduction in pototype vehicle production cost

Contributes to product development efficiency and cost reduction*Survey by US-based research and consulting firm Frost & Sullivan© 2020 HORIBA, Ltd. All rights reserved.

14

Contents
2020 3Q (Jan.-Sep.) Results2020 Forecast
Shareholder Return
Topics -New product development for focused marketsFinancial Data
Corporate Profile© 2020 HORIBA, Ltd. All rights reserved.

15

Impact of Fluctuation in Foreign exchange
Exchange rate impact (2020 3Q results)
Sales -¥1.80bn O.P. -¥0.61bn
2020 3Q results

vs 2019 3Q

Decrease Sales
Decrease Cost of Goods Sales
Decrease Expenses
Impact to Operating Profit(Yen)
USD
EUR

2019 3Q109.12
122.62© 2020 HORIBA, Ltd. All rights reserved.

2020 3Q
107.55120.93- 1.80+ 0.70+ 0.48- 0.61

Diff.
-1.57
-1.69

Exchange rate impact
for 2020 Forecast
1 yen impact of Sales and O.P.
(Yen appreciation)

USD
EUR

Sales
-¥0.48bn-¥0.30bn

Operating Profit
USD-¥0.21bn
EUR-¥0.01bn
(Yen)
USD
EUR

2020 Forecast
107.00120.0016

Operating Profit Analysis (vs 2019)(Billions of yen)

2019

2020

Jan. – Sep.

Jan. – Sep.

12.00

Decrease
Sales-5.43

Decrease
Cost of Goods
Sales

ExchangeImpact for
Gross Profit

ExchangeImpact forExpenses+2.16-1.09+0.48

Decrease-3.26
Gross Profit

Exchange-0.61
ImpactDecrease
R&D Cost+0.55

Decrease
OtherExpense

10.96+2.28

Decrease+2.83
Expenses

Decrease Operating Profit -1.03© 2020 HORIBA, Ltd. All rights reserved.

17

Capital Investment, Depreciation, R&D
2020

2019

Results

Forecasts

Forecasts(as of Aug. 11)(as of Nov. 12)

vs2019vsPreviousForecasts(Billions of yen)
2019

2020

Results

Results(Jan. - Sep.)(Jan. - Sep.)

Capital Investment

12.8

17.5

17.5+4.6

-8.3

9.8

Depreciation

8.7

9.5

9.5

+0.7-

6.4

7.1

R&D

16.2

16.0

16.0

-0.2

-12.2

11.6

8.1%

8.5%

8.5%

＋0.4p

-9.0%

9.0%

(To Net Sales)

2020
Topics-PP&E:
Enhance the base of service business, investment to HORIBA
MIRA, HORIBA FuelCon’s new facility, a new facility in China
Scrutinize urgency and priority and make investment decisions© 2020 HORIBA, Ltd. All rights reserved.

18

Cash Balance(Consolidated basis)(Billions of yen)

Total Loan Balance
90.8

70.3

Bond redemption¥15.0bn(Paid in Oct. 2020)

44.0

42.0
Cash58.9

Bonds
15.0

Cash63.6

Bonds
15.0

Long
18.7

Long
17.0

Short 8.3

Short 12.0

2017 end of Dec.
239％
57％

2018 end of Dec.
246％
58％

Cash
124.0

Cash
95.6

Bonds
45.0

¥15.0bn (2026)¥15.0bn (2029)

Long
37.5

Borrowed fromJBIC¥15.1bn

Bonds
45.0

Long
16.8
Short 8.4

2019 end of Dec.
245％
54％

(redemption 2022)

Short 8.2

2020 end of Sep.
275％
51％

Domestic syndicate¥20.0bn (2030)
Current ratio
Capital ratio

・Recent issuer rating: R&I “A”(Sep. 2020), JCR “A+” (Aug. 2020)© 2020 HORIBA, Ltd. All rights reserved.

19

Contents
2020 3Q (Jan.-Sep.) Results2020 Forecast
Shareholder Return
Topics -New product development for focused marketsFinancial Data
Corporate Profile© 2020 HORIBA, Ltd. All rights reserved.

20

Business Segments
Automotive
Test Systems

Process &Environmental

Scientific14%

Net Sales
200.2 billion yen

Automotive
Semiconductor

40%

23%
Medical P&E

Sales by business segment (%)
Fiscal 2019
© 2020 HORIBA, Ltd. All rights reserved.

MedicalSemiconductor

ScientificExpanding in New
Domains and Moving
onto a New Stage

13% 10%21

Global Network(as of Dec 2019)

Sales

Sales

Sales

Sales22%31%

31%

16%

EuropeAsia

JapanAmericas

OtherEurope

2%Americas2%
USA
10%JapanGermany

38%

10%
UK
10%
France11%

Employees by Region

OtherAsia

17%© 2020 HORIBA, Ltd. All rights reserved.

The number of companies

Americas993 （12％）7Europe

2,771 （33％）

23Asia4,524 （55％）

19 (4 in Japan, Including HORIBA, Ltd.)

Total

8,288

49
22

HORIBA’s Steady GrowthFiscal year ending Dec. 2019
Net sales: 200.2 billion yen
Operating profit: 20.9 billion yen

Moving on tothe nextstage with
our new MidLong Term
ManagementPlan1953
HORIBA, LTD. wasestablished19601970Founded business as
student entrepreneur
President

Masao Horiba© 2020 HORIBA, Ltd. All rights reserved.

1980

1990

2000

2010

Developed globally
successful products

Expanded businessglobally through M&A

Moving on to thenext stage withour new management

Masahiro Oura

Atsushi Horiba

Masayuki Adachi
23

HORIBA MIRA Ltd.
HORIBA BIWAKO E-HARBOR© 2020 HORIBA, Ltd. All rights reserved.

24

HORIBA MIRA Ltd.
Providing Engineering Service with World Leading Mobility Development
Capability and R&D Location with Dedicated Facilities and Proving GroundBusiness Offering

EstablishedHead office
Major locations© 2020 HORIBA, Ltd. All rights reserved.

1. Vehicle development engineering
2. Test engineering
3. MIRA Technology Park
(Providing Unique R&D Location)
1946
Nuneaton, Warwickshire, UKU.K., China, and India

25

MIRA Technology Park
Various experiments using a large test course

MIRA Technology Park
30 customers

Test Site“35” Test Site
Wind Tunnels / EMC / Crash
lab/NVH Chassis/Battery test

© 2020 HORIBA, Ltd. All rights reserved.

1km

Proving ground• Performance(4.5km)• Off road
• Wet surface• City Circuit• Noise-Generating• Ride & Durability
Transmission test
Braking systems
Tire developmentDurability26

HORIBA BIWAKO E-HARBOR
 Consolidating development, design, and production operationsof gas measurement equipment at a single location
 Doubling of production capability and shortening delivery time
to one-third by using a new production methodology
 Comprehensive engineering services from sales to development, production, andmaintenance 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
© 2020 HORIBA, Ltd. All rights reserved.

27

HORIBA BIWAKO E-HARBOR© 2020 HORIBA, Ltd. All rights reserved.

28

© 2020 HORIBA, Ltd. All rights reserved.

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© 2020 HORIBA, Ltd. All rights reserved.

30