Summary of Consolidated Financial Statements for the Year Ended December 31, 2013
(Japanese GAAP)
February 13, 2014
Company name

HORIBA, Ltd.

Listing code

6856

Listed stock exchanges: Tokyo

Representative

Atsushi Horiba, Chairman, President and CEO

URL: http://www.horiba.com

Contact
Fumitoshi Sato, Managing Director
Scheduled date of start of dividend payment: March 10, 2014

TEL: (81)75-313-8121(Figures have been rounded down to the nearest million yen)

1. Consolidated Results for the Year Ended December 31, 2013 (January 1, 2013 - December 31, 2013)(Percentages represent changes from the previous year)(1) Consolidated Operating Results
Net Sales
Operating Income
Ordinary Income
Net Income%

Millions of yen%

13,056
Year ended 12/31/13
138,136
13,733
17.5
16.9
15.0
11,353 -22.3
Year ended 12/31/12
117,609
11,751 -21.2-4.7(Note) Comprehensive Income: FY2013 17,151 million yen (56.5%), FY2012 10,960 million yen (55.5%)

Millions of yen

8,999
7,396

21.7
-14.6

%

Millions of yen

Net Income per Share(Diluted)

Net Income per ShareYen

Millions of yen%

Return on Equity

Yen

Operating
Income to Net
Sales%

Ordinary Income
to Total Assets%%

212.76212.01
Year ended 12/31/13
8.4
174.37174.87
Year ended 12/31/12
7.8(Reference) Equity in earnings of affiliates: FY2013 -103million yen, FY2012 -24 million yen

7.6
7.6

9.9
10.0

(2) Consolidated Financial Position
Total Assets

Shareholders' Equity
Ratio

Net Assets

Millions of yen

Millions of yen

Net Assets
per Share%

Yen

189,2692,699.88
60.3
114,545
As of 12/31/13
153,836
64.5
99,536
2,346.45
As of 12/31/12(Reference) Net assets excluding subscription rights to shares and minority interests in consolidated subsidiaries:
As of December 31, 2013: 114,209 million yen; As of December 31, 2012: 99,248 million yen(3) Consolidated Cash Flows
Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

Millions of yen

Year ended 12/31/13
Year ended 12/31/12

Millions of yen

15,076
13,395

Cash and Cash
Equivalents at end of
the period

Cash Flows from
Financing Activities
Millions of yen

Millions of yen

2,324(3,304)(8,111)(7,891)

49,24638,858

2. Dividends
Dividend per share
SecondquarterFirst
quarterYen

Thirdquarter
Yen

Yen

-

15.00

-

Year ended 12/31/13

-

18.00

-

Year ending 12/31/14(Forecast)

-

25.00

-

Year ended 12/31/12

Year end

Total

Total Dividends(Annual)Payout Ratio(Consolidated)

Dividends to Net
Assets(Consolidated)

%
28.6

%
2.2

28.2

2.4

Yen

Yen

35.00

50.00

Millions of yen
2,114

42.00

60.00

2,538

39.00

64.00

30.1

Note. Regarding the year-end dividend for the fiscal year 2012, the board of directors' meeting of HORIBA, Ltd. decided to pay
an ordinary dividend per share of 25 yen and a commemorative dividend for the 60th Anniversary of the Company
Foundation of 10 yen, making a total dividend of 35 yen.
3. Consolidated Forecast for the Year Ending December 31, 2014 (January 1, 2014 - December 31, 2014)(Percentages represent changes from the same period in the previous year)

Operating Income

Net SalesFirst half
Full year

Ordinary Income

Net Income
per Share

Net Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

72,000150,000

20.6
8.6

5,500
15,000

38.4
9.2

5,300
14,500

41.7
11.1

3,200
9,000

26.5
0.0

1

Yen

75.65
212.77

HORIBA, Ltd. (Consolidated)

Notes(1) Changes in significant subsidiaries during the period(Changes in specified subsidiaries that caused a change in the scope of consolidation): None
(2) 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, 2013
42,532,752
231,183
42,299,616① Shares issued (including treasury stock)② Treasury stock③ The average number of outstanding shares
during Jan. - Dec. in FY2013 and FY2012

December 31, 2012
42,532,752
235,583
42,297,149(Reference) Overview of Non-Consolidated Financial Results
1. Non-Consolidated Results for the Year Ended December 31, 2013 (January 1, 2013 - December 31, 2013)(Percentages represent changes from the previous year)(1) Non-Consolidated Operating Results
Net Sales
Operating Income
Ordinary Income
Net Income
Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

54,34853,526

1.5
3.1

4,927
5,051

-2.5
-10.6

6,652
7,261

-8.4
-12.3

5,192
5,636

-7.9
1.7

Year ended 12/31/13
Year ended 12/31/12

Net Income per Share(Diluted)
Yen
Yen

Net Income per Share

122.75133.25122.32132.87

Total Assets

Net Assets

Year ended 12/31/13
Year ended 12/31/12(2) Non-Consolidated Financial Position

Millions of yen

Millions of yen

Shareholders' Equity
Ratio

Net Assets
per Share%

Yen

As of 12/31/13
117,525
80,76568.4
1,901.33
As of 12/31/12
76,4301,801.19
103,282
73.8(Reference) Net assets excluding subscription rights to shares:
As of December 31, 2013: 80,429 million yen; As of December. 31, 2012: 76,185 million yen
Note 1. Indication regarding implementation status of audit procedures
These financial statements have not been prepared for the purpose of audit procedures pursuant to the Financial
Instruments and Exchange Act (FIEA). Audit procedures for financial statements were in the process of being
implemented as of the release of these financial statements.
Note 2. Appropriate use of business forecasts and other important information
The business forecasts stated herein are based on information currently available and certain assumptions for factors
which may affect business results. We do not warrant that these forecasts will be achieved. Actual results may differ
from the forecasts due to a range of factors. For additional information, please see "1. Operating Results" on page 3.

2

HORIBA, Ltd. (Consolidated)1. Operating Results(1) Operating Results Analysis(For details, see page 17, “HORIBA, Ltd. Financial Highlights for the Year Ended December 31, 2013”)(i) Operating Results for the year ended December 31, 2013
During the fiscal year ended December 31, 2013, the U.S. economy saw a moderate recovery mainly due
to a mild increase in consumer spending and some recovery in housing starts and capital spending. The
European economy remained sluggish, partly due to the impact of fiscal tightening in several countries, butshowed signs of bottoming out toward the latter half of the year. With regard to Asia, China’s economy
continued to expand but at a slower rate of growth, while the economy in other areas in Asia slowed down.
In Japan, the economy recovered gradually on the back of some recovery in consumer spending andsteady public spending, and despite lackluster growth in exports.
The annual average exchange rates for 2013 were 97.73 yen against the U.S. dollar and 129.78 yen
against the euro, marking respective depreciation of 18% against the U.S. dollar and 21% against the euro,
compared to the previous year.
In the analytical and measurement equipment market, a recovery in capital spending by semiconductor
manufacturers led to an increase in demand from the first half of 2013 and helped thesemiconductor-related market sustain its strength. In the automobile-related market, capital spending and
R&D investment by Japanese and overseas automakers sustained firm trends from the previous year. With
regard to the scientific and environmental-related markets, however, private companies were cautious incapital spending and R&D investments in analytical and measurement equipment, resulting in a sustained
weakness in demand.
In the face of these economic conditions, HORIBA, Ltd. (“the Company”) and its consolidated subsidiaries(together “the HORIBA Group” or “HORIBA” as a consolidated group) implemented measures to enhance
our businesses in 2013. The HORIBA Group promoted business restructuring through the Corporate &Segment Strategy Division, which was newly established in fiscal year 2011 to design and promote overallbusiness strategy, and accelerated the launch of products that met market needs.
By business segment, in the Automotive Test System Segment, the MCT (Mechatronics) business which
had been acquired from Carl Schenck AG (Germany) in 2005 continued to realize profits thanks to thesuccessful transfer of production bases and cost reduction. Also, the segment promoted sales of its newengine emission measurement systems which began the sales from 2013, a mainstay HORIBA product.
In the Process & Environmental Instruments & Systems Segment, the acquisition of the U.S. company
Cameron’s process analysis product line resulted in the business growth in the oil refining market including
shale oil and gas.
In the Medical-Diagnostic Instruments & Systems Segment, with the aim of responding to growing demand
for testing reagents in various countries, HORIBA completed building its first reagent plant in India andexpanded a reagent plant in Brazil.
In the Semiconductor Instruments & Systems Segment, HORIBA STEC Co., Ltd. completed construction ofa technology center in Fukuchiyama, Kyoto, while the company started to build an advanced technology
center. These efforts are intended to accelerate the development speed of semiconductor-related products
and promote efficiency in manufacturing.
The Scientific Instruments & Systems Segment will accelerate product development by using microscopic
imaging technologies, thanks to the acquisition of electron beam technologies of Topcon Corp.
Furthermore, HORIBA opened an office in Turkey with the aim of expanding sales channel in theautomotive business. Moreover in Europe, HORIBA Jobin Yvon S.A.S. in France constructed the HORIBAGroup’s Enterprise Resource Planning System (GEO System), with the aim of speeding up its decision

3

HORIBA, Ltd. (Consolidated)making and promoting common operational processes, and began to use the system in January 2014. On
the financial side, HORIBA issued 15 billion yen of straight corporate bonds (7 years to maturity; coupon
rate, 0.609% per annum) to gain funds for future capital investment, working capital, and repaying HORIBA,
Ltd. No.3 Unsecured Straight Bonds.
Against the background of the yen’s depreciation, as a result of such measures and sales efforts, sales
increased by 17.5% from a year earlier to 138,136 million yen. Operating income rose by 16.9% to 13,733
million yen, ordinary income increased by 15.0% to 13,056 million yen and net income was up 21.7% to8,999 million yen.
The operating results of each business segment are summarized as follows.
(Automotive Test Systems)
In addition to a recovery in capital spending and R&D spending by automakers in Japan, Europe, and North
America, the yen weakness was attributable to an increase in sales. However, the profitability of the driving
management systems and drive recorders business deteriorated mainly due to an increase in development
cost of new products and a drop in orders.
Consequently, sales in the segment increased by 14.6% year-on-year to 49,524 million yen, but operating
income decreased by 2.8% to 4,287 million yen.
(Process & Environmental Instruments & Systems)
The segment sales showed underlying strength on the back of steady sales of stack gas analyzers forthermal power plants and an increase in sales of process analysis product lines which were acquired in
February 2013. However, sales of environmental radiation monitors, which had seen increased demand
after the Great East Japan Earthquake, declined.
As a result, although sales in the segment rose by 7.3% year-on-year to 14,711 million yen, operating
income declined by 23.1% to 1,263 million yen.
(Medical-Diagnostic Instruments & Systems)
The segment increased sales, due to steady sales of blood cell testing instruments in some Asian countries,
and the weaker yen. However, expenses for developing sales channels in North America increased and led
to an increase in selling, general and administrative expenses.
Consequently, sales in the segment increased by 19.8% year-on-year to 26,832 million yen, but operating
income decreased by 2.0% to 2,429 million yen.
(Semiconductor Instruments & Systems)
Owing to increased production at semiconductor production equipment manufacturers supported by a risein capital investment by semiconductor makers, sales of mass flow controllers, the segment’s major product,
increased significantly.
As a result, segment sales rose by 35.2% year-on-year to 24,153 million yen and operating income soaredby 111.7% to 4,815 million yen.
(Scientific Instruments & Systems)
Although sales were higher after yen conversion due to the weaker yen, sales to universities, government
laboratories, and other research institutions decreased due to a reduction in government budgets in
Europe.
Consequently, although sales in the segment increased by 12.3% year-on-year to 22,913 million yen,operating income declined by 0.6% to 937 million yen.

4

HORIBA, Ltd. (Consolidated)

(ii) Outlook for the Year Ending December 31, 2014
Regarding the outlook for global economy in the fiscal 2014, the U.S. economy is expected to continue
moderate recovery, despite the caution that is warranted due to the potential impact of tapering by theFederal Reserve Board. The European economy may face a downside risk stemming from fiscal andfinancial problems of some countries but nevertheless is likely to show a gradual recovery. The economiesof emerging countries such as China and India are projected to continue to see moderate growth despite
risks of currency or financial problems or capital outflow. In Japan, the economy is likely to keep recovering,supported by a pick-up in exports and various economic policies. However, the scheduled hike in the
consumption tax rate in April 2014 is expected to push up demand before the hike and to depress demand
after the hike.
Against this background, HORIBA’s forecasts for fiscal 2014 are shown below.
Our assumed foreign exchange rates are 100 yen against the U.S. dollar (vs. 97.73 yen in fiscal 2013) and
135 yen against the euro (vs. 129.78 yen in fiscal 2013).
Net sales of 150,000 million yen, up 8.6% y-o-yNet sales are expected to increase by 11,863 million yen from the previous year to 150,000 million yen.
In the Automotive Test System Segment, on the back of an increasing trend of capital and R&D investment
by automakers, the segment’s major customers, sales of emission measurement systems, and various
products in the MCT business are expected to increase.
In the Process & Environmental Instruments & Systems Segment, while demand for environmental
radiation monitor has tapered off and the sales are expected to decrease, demand growth is expected forwater quality analyzers in Japan and overseas.
In the Medical-Diagnostic Instruments & Systems Segment, HORIBA expects sales of blood cell testing
instruments to increase in various Asian countries, mostly in India, and overseas sales after yen conversion
to increase due to the weaker yen.
In the Semiconductor Instruments & Systems Segment, the demand for semiconductor production
equipment is projected to be firm in the first half of the year, although uncertainties remain for the demand
for solar cells and LEDs manufacturing equipment, and semiconductor production equipment in the second
half.
In the Scientific Instruments & Systems Segment, HORIBA expects capital and R&D investment to increase
due to a recovery in government budgets and private-sector demand mostly in Europe.
Operating income of 15,000 million yen, up 9.2% y-o-yOperating income is likely to rise by 1,266 million yen from the previous year to 15,000 million yen.
In the Automotive Test System Segment, an increase in profit is expected due to a reduction in costs of newemission measurement systems and a profit improvement in the driving management systems business, inaddition to sales growth.
In the Semiconductor Instruments & Systems Segment, sales growth and an improvement in production
efficiency for mass flow controllers, HORIBA’s major product, are projected to increase profits.
In the Process & Environmental Instruments & Systems Segment, the Medical-Diagnostic Instruments &Systems Segment, and the Scientific Instruments & Systems Segment, HORIBA foresees profits to be at asimilar level to those of the previous year.

5

HORIBA, Ltd. (Consolidated)Ordinary income of 14,500 million yen, up 11.1% y-o-y
Our forecasts incorporate a net non-operating loss of 500 million yen (compared to a net non-operating lossof 676 million yen in fiscal 2013), assuming foreign exchange losses and some uncertain non-operating
expenses.
By including this factor in addition to an expected increase in operating income, ordinary income isexpected to increase by 1,443 million yen from the previous year to 14,500 million yen.
Net income of 9,000 million yen, up 0.0% y-o-yWhile ordinary income is expected to increase, net income is forecast to barely increase from the previous
year to 9,000 million yen, as a net extraordinary loss of 600 million yen (compared to a net extraordinary
profit of 475 million yen in fiscal 2013) has been incorporated in our forecasts, assuming generation ofsome extraordinary losses.
(Note) The above forecasts have been made on the basis of information available as of February 13, 2014,
but owing to the existence of various uncertain elements, it is possible that actual performance will varyconsiderably from those forecasts.
(2) Basic Policy for Profit Distribution and Dividends for the Year Ended December 31, 2013 and theYear Ending December 31, 2014
At the board of directors’ meeting held on February 14, 2013, HORIBA decided to adopt a basic dividend
policy in which the Company will maintain a total shareholder return ratio of around 30% of consolidated net
income of the Company (which was announced on the same date.) According to its basic policy, at theboard of directors’ meeting held on February 13, 2014, HORIBA has decided to pay a year-end dividend of
42 yen per share. Combined with the interim dividend that has been paid out, the annual dividend is 60 yen.
As regards the dividend forecast for the fiscal year ending December 31, 2014, HORIBA expects toincrease the annual dividend by 4 yen from the fiscal 2013 to 64 yen.
The Company will continue to make effective use of internal reserves to improve corporate value throughprofit growth and focus on investing in growth areas, and it will make profit returns to shareholders that arelinked to consolidated earnings.

6

HORIBA, Ltd. (Consolidated)2. Management Policies(1) Basic Management Policies
As a manufacturer of analytical equipment that is developing its business worldwide, the HORIBA Groupaims to be a truly global company. Our basic philosophy is to contribute to society by preserving theenvironment, bringing human health and greater convenience and safety to society, and promoting thedevelopment of science and technology through our business activities, which focus on analyticaltechnologies and span a variety of industrial fields in the global market.
In addition, HORIBA Group has long focused on consolidated-based management and promoted thereinforcement of alliances and the integration of its 38 companies throughout the world by utilizing ourhuman and technological resources.
(2) Management Target Indices
The HORIBA Group established the Mid-Long Term Management Plan in 2011 with numerical targets set
for 2015. The HORIBA Group is launching various measures to achieve the numerical targets of 150 billion
yen in consolidated net sales, an operating income ratio of 13% or more, and ROE of 11% or more.
In 2013, the third year of the plan, HORIBA recorded net sales of 138.1 billion yen, an operating income
ratio of 9.9%, and ROE of 8.4%. Both sales and profits increased relative to the previous year.
(3) Challenges for HORIBA: Mid-Long Term Business Strategies of HORIBAThe HORIBA Group’s business consists of five segments: Automotive Test Systems, Process andEnvironmental Instruments & Systems, Medical-Diagnostic Instruments & Systems, Semiconductor
Instruments & Systems and Scientific Instruments & Systems. Each segment operates business in adifferent market, which enables each to exert its strengths and complement the weaknesses of each other.
Our aim is to achieve well-balanced growth with this structure. Technologies and know-how in all segments
are shared mutually. The transfer of human and other resources among segments gives us the strategic
flexibility to temporarily integrate resources in a favorably performing business while alleviating the burden
to a certain extent in an underperforming business. This enables us to achieve efficient management.
Moreover, we aim to evolve and perfect the management principle of the “HORIBA Group is One
Company.” which was launched in fiscal March 2004, and establish a corporate structure that enables us togenerate steady high earnings.
The primary measures of the Mid-Long Term Management Plan for fiscal 2011 to fiscal 2015 are as follows:z

Primary measure 1: Building a corporate structure that enables us to generate stable highearnings

1. Select and invest heavily in focused businesses
Thanks to aggressive investments under the previous Mid-Long Term Management Plan, themedical-diagnostic and semiconductor businesses have grown to contribute to HORIBA’s overall earnings,
with to their high profitability. In other words, focused investments in these two businesses have changed
HORIBA’s earnings structure from being highly dependent on the automotive business to be a morewell-balanced earnings structure that enables us to generate stable high earnings. In addition, we plan tofocus on water quality-related products which belong to the environmental, scientific, and semiconductorbusinesses. Because of their high near-term growth potential, we will concentrate our human and R&D
resources in this area and accelerate its global development. In the automotive business, we will also
continue to improve our structure for enhancing our profitability, evidenced by steady improvement in
profitability of the MCT business acquired in 2005.

7

HORIBA, Ltd. (Consolidated)2. From business expansion driven by “technology development” to business expansion focusedon “customer oriented business model”
The HORIBA Group has developed product with its unique technologies and has provided distinguishedproducts to customers in the niche “analysis” market. Going forward, we will add application technologies to
products and transform our business model so that we can provide customers with proposals for efficiency
and laborsaving. By making proposals that encompass measurement methods and software, we will create
the industry standard, expand market share in each of the five business area, and thereby aim to become a
global leader in the analysis and measurement market.
zPrimary measure 2: Evolving and perfecting “One Company Management”

1. Organizational reform to enhance the corporate structureWith the aim of becoming a highly profitable company and enhance its global leadership as theheadquarters, HORIBA’s headquarters restructured its organization in January 2011. The R&D Division,
where operations had been separated by business segment, was reorganized by function so that
intra-segment information is shared and the capability to propose solutions is enhanced. We will alsoenhance the speed and quality of decision-making by clearly defining the responsibilities of persons incharge of development, production, and sales, who work under a newly-appointed person in charge ofoverall business strategies.
2. Efficient management by region
During the previous Management Plan, shared services which had been successful in the U.S., wasimplemented in Japan. HORIBA has integrated bases in the Americas, including Brazil, and the U.K.. Goingforward, we will introduce “shared services” in Europe and Asia with reference to successful examples in
the U.S. and Japan. We will also promote further efficiency by speeding up management decision-making,and achieving a more specialized level of operations and cost reduction.
z

Primary measure 3: Accelerating establishment of global development and production system

The HORIBA Group will make further progress in establishing footholds, mainly in Asian countries. In 2011,
the first year of the Mid-Long Term Management Plan, HORIBA expanded the production capacity of its
semiconductor business by opening a joint-venture plant in China. As a foothold for future businessexpansion, the Group opened representative offices in Vietnam and Indonesia, where demand is rising andeconomic growth is pronounced even among South East Asian countries. In 2012, the construction for
expansion of Aso factory in Kumamoto Prefecture, Japan, with the aim of responding to rising demand fortesting reagents in the medical business, was completed. In France, construction of the R&D center, which
will be the European central base for R&D activities in the scientific business, was completed.
In 2013, the relocation and the expansion of the reagent plant in Brazil has been completed, with the aim ofincreasing capacity in order to expand the medical business in South America. In India, we completed theconstruction of the new reagent plant. Moreover, with the aim of enhancing the semiconductor business,
HORIBA has newly constructed a development center in Fukuchiyama City, Kyoto Prefecture, and began toexpand facilities in Kyoto City.
In 2014, the 4th year of the Mid-Long Term Management Plan, HORIBA plans to start construction of a basefor development and production in the plant site it owns near Lake Biwa, Shiga Prefecture, in order to raisecompetitiveness of the gas measurement field of the Automotive Test System Segment and the Process &Environmental Instruments & Systems.

8

HORIBA, Ltd. (Consolidated)3. Consolidated Financial Statements(1) Consolidated Balance Sheets
Amount: millions of yen
FY2012FY2013(As of December 31, 2012)(As of December 31, 2013)

Cash and bank deposits

34,68542,228Trade notes and accounts receivable

37,52147,412Marketable securities

6,100

10,271

Merchandise and finished goods

10,09911,111Work in process

10,05312,755

Raw materials and supplies

7,947

9,218

Deferred tax assets

2,881

3,186

Other current assets

3,554

4,967

Allowance for doubtful accounts

(856)

(914)

111,988

140,235

Buildings and structures, net

11,894

14,025

Machinery, equipment and vehicles, net

3,171

4,461

Land

8,172

9,504

Construction in progress

1,851

1,763

Other property, plant and equipment, net

3,089

3,570

Total Property, Plant and Equipment

28,17933,326

Goodwill

319

314

Software

3,488

3,054

Other intangibles

681

1,741

Total Intangibles

4,490

5,110

Investment securities

4,045

6,090

Deferred tax assets

2,030

1,750

Other investments and other assets

3,176

2,801

(74)

(45)

9,178

10,597

41,84849,034

153,836

189,269

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

9

HORIBA, Ltd. (Consolidated)Amount: millions of yen
FY2012FY2013(As of December 31, 2012)(As of December 31, 2013)

Trade notes and accounts payable

11,82916,409

Short-term loans payable

5,523

6,606

Accounts payable - other

9,195

12,112

Accrued income taxes

1,317

3,523

Deferred tax liabilities

687

Accrued bonuses to employees

902

905

Accrued bonuses to directors and corporate auditors

38

56

Reserve for product warranty

1,176

1,492

Other current liabilities

7,671

10,943

Total Current Liabilities

37,662

52,138

Corporate bonds

10,00015,000Long-term loans payable

2,113

2,576

153

659

2,066

2,406

Directors' and corporate auditors' retirement benefits

195-

Provision for compensation losses

457

158

Other non-current liabilities

1,651

1,784

Total Non-Current Liabilities

16,637

22,58554,29974,723

Common stock

12,011

12,011

Capital surplus

18,717

18,717Retained earnings

71,72578,477

(780)

(765)

101,674

108,441

987

2,296

Liabilities
Current Liabilities:

Non-Current Liabilities:

Deferred tax liabilities
Employees' retirement benefits

Total Liabilities
Net Assets
Shareholders' Equity

Treasury stock
Total Shareholders' Equity
Accumulated Other Comprehensive Income
Net unrealized holding gains on securities
Deferred gains or losses on hedges-

3

Foreign currency translation adjustments(3,413)

3,468

Total Accumulated Other Comprehensive Income(2,426)

5,768

Subscription Rights to Shares

245

335

Minority Interests in Consolidated Subsidiaries

42

099,536

114,545

153,836

189,269

Total Net Assets
Total Liabilities and Net Assets

10

HORIBA, Ltd. (Consolidated)(2) Consolidated Statements of Income and Consolidated Comprehensive Income Statements(Consolidated Statements of Income)Amount: millions of yen
FY2013(For the year ended
December 31, 2013)

FY2012(For the year ended
December 31, 2012)
Net sales

117,609138,136

Cost of sales

68,22080,62549,38957,51037,637

43,777

11,751

13,733Gross Income
Selling, general and administrative expenses
Operating Income
Non-Operating Income
Interest income

233

176

Dividend income

79

117

Subsidy income

55

70

Other

202

191

Total non-operating income

570

556

Interest expense

478

560

Foreign exchange losses

206

274

Non-Operating Expense

Other

284

398

Total non-operating expense

969

1,232

11,353

13,05631

431

Gain on sale of investment securities-

17

Gain on sales of subsidiaries and affiliates' stocks

-

67

67

173

-

64

98

753

Loss on sales of fixed assets

07Loss on disposal of fixed assets

143

65

Loss on impairment of fixed assets

135

190

2

15

281

277

11,17013,532

Income taxes (current)

3,236

4,280

Income taxes (deferred)

538

299

3,774

4,580

7,395

8,951

(0)

(47)

7,396

8,999

Ordinary Income
Extraordinary Gain
Gain on sales of fixed assets

Reversal of provision for compensation losses
Gain on bargain purchaseTotal extraordinary gain
Extraordinary Loss

Loss on valuation of investment securities
Total extraordinary loss
Income before Income Taxes and Minority Interests

Total income taxes
Income before Minority Interests
Minority interests (losses) in earnings of consolidated
subsidiaries
Net Income

11

HORIBA, Ltd. (Consolidated)

(Consolidated Statements of Comprehensive Income)Amount: millions of yen
FY2013(For the year ended
December 31, 2013)

FY2012(For the year ended
December 31, 2012)
Income before Minority Interests

7,395

8,951

270

1,308

-

3

3,297

6,896

(2)

(8)

3,565

8,199

10,96017,151

Parent company portion of comprehensive income

10,956

17,193

Minority interests portion of comprehensive income

4

(42)

Other Comprehensive Income
Net unrealized holding gains on securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Share of other comprehensive income of associates
accounted for using equity method
Total other comprehensive income
Comprehensive Income(Breakdown of comprehensive income)

12

HORIBA, Ltd. (Consolidated)

(3) Consolidated Statement of Changes in Net Assets
FY2012(For the year ended December 31, 2012)
Amount: Millions of yen
Shareholders' Equity
Common stock
Beginning balance

Capital surplus

12,011Retained earnings

18,717

66,278

Total Shareholders'EquityTreasury stock(788)

96,219Changes during the period
Dividend from earnings(1,945)(1,945)

Net income

7,396

7,396

Disposal of treasury stock

(3)

8

4

OthersTotal changes during the periodEnding balance

-

-

5,446

8

5,455

12,011

18,71771,725(780)

101,674

Accumulated Other Comprehensive Income
Net unrealized
holding gains on
securities
Beginning balance

717

Foreign currencytranslation
adjustments

Deferred gains orlosses on hedges-(6,703)

Total Accumulated
Other Comprehensive
Income(5,986)

Subscription Rights
to Shares

Minority Interests inConsolidated
Subsidiaries

186

40

Total Net Assets

90,460Changes during the period
Dividend from earnings(1,945)

Net income

7,396

Disposal of treasury stock

4

Others270

Total changes during the period

270

Ending balance

987

3,289

3,560

58

2

3,621

-

3,289

3,560

58

2

9,076

-

(3,413)(2,426)245

42

99,536

13

HORIBA, Ltd. (Consolidated)

FY2013(For the year ended December 31, 2013)
Amount: Millions of yen
Shareholders' Equity
Common stock
Beginning balance

Capital surplus

12,011Retained earnings

18,71771,725

Total Shareholders'EquityTreasury stock(780)

101,674

Changes during the period
Dividend from earnings(2,241)(2,241)

Net income

8,999

8,999

Disposal of treasury stock

(5)

14

9

OthersTotal changes during the periodEnding balance

-

-

6,752

14

6,766

12,011

18,71778,477(765)

108,441

Accumulated Other Comprehensive Income
Net unrealized
holding gains on
securities
Beginning balance987

Foreign currencytranslation
adjustments

Deferred gains orlosses on hedges-(3,413)

Total Accumulated
Other Comprehensive
Income(2,426)

Subscription Rights
to Shares

Minority Interests inConsolidated
Subsidiaries

245

42

Total Net Assets

99,536

Changes during the period
Dividend from earnings(2,241)

Net income

8,999

Disposal of treasury stock

9

Others

1,308

3

6,882

8,194

90

(42)

8,242

Total changes during the period

1,308

3

6,882

8,194

90

(42)

15,009Ending balance

2,296

3

3,468

5,768

335

0

114,545

14

HORIBA, Ltd. (Consolidated)

(4) Consolidated Statements of Cash FlowsFY2012(For the year ended
December 31, 2012)

Amount: millions of yen
FY2013(For the year ended
December 31, 2013)

Cash Flows from Operating Activities:
Income before income taxes and minority interests
Depreciation expense
Loss on impairment of fixed assets
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for business structure improvement
Increase (decrease) in employees' retirement benefits
Increase (decrease) in directors' and corporate auditors'
retirement benefits
Increase (decrease) in provision for compensation losses
Interest 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

(26)

(195)

(159)
(312)
478
13
(30)
143
2
4,133
40
(2,345)
1,417
18,468305(499)(4,879)13,395

(299)
(294)
560
(17)
(424)
65
15
(17)
(4,222)
(630)
1,989
3,209
17,684289(591)(2,307)
15,076

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
Proceeds from sales of intangibles
Payments for purchase of investment securities
Proceeds from sales or redemption of investment securities
Payments for purchase of stocks of subsidiaries and affiliates
Proceeds from sales of stocks of subsidiaries and affiliates
Payments of loans receivableCollection of loans receivable
Payments for transfer of business
Other, net
Net Cash Provided by (used in) Investing Activities(2,410)2,410
32(2,904)
2,509(6,741)
79
(712)
(147)
7
(18)
(142)
87
58
(7,891)(2,363)1,505
32(2,404)
2,103(6,040)870(1,535)
0
(23)
32
77
(27)
23
(322)
(41)
(8,111)

Cash Flows from Financing Activities:
Proceeds from issuance of corporate bonds
Payments for redemption of corporate bonds
Net increase (decrease) in short-term borrowings
Increase in long-term debt
Repayments of long-term debt
Repayments on finance lease obligations
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(2,395)
1,827
(635)
(156)
0
(1,943)(3,304)891
3,090
35,76738,85814,919(10,106)
185
1,285(1,534)(183)
0(2,242)
2,324
1,098
10,38838,85849,24615

11,170
3,645
135
98
55
(177)
186

13,532
4,182
190
96
(160)
104

HORIBA, Ltd. (Consolidated)4. Change in Directors and Corporate Auditors(1) Change in Representative Director
None(2) Change in Other Directors and Corporate Auditors
To be appointed as new director
Dr. Masayuki Adachi, Present Senior Corporate Officer (General Manager of Research andDevelopment

Division)(3) Scheduled Effective Date of Assumption
March 29, 2014

16

HORIBA, Ltd. (Consolidated)5. Supplemental Information
HORIBA, Ltd. Financial Highlights for the Year Ended December 31, 2013
1. Consolidated Financial Results

Amount: millions of yen

12/2013
Result12/2012ResultFull year

Full year

Net Sales

138,136

117,609 +20,526

Operating Income

13,733

11,751+1,981

Operating Income Ratio

9.9%

10.0%

-0.1P

13,056

11,353+1,703

9.5%

9.7%

-0.2P

Ordinary Income
Ordinary Income Ratio

Net Income

12/2014
Estimate

Changes fromprevious year

12/2014
Estimate

Changes fromprevious year

Ratio

Full year

Amount

1st half

Amount+17.5%

150,000+11,863

72,000+12,317+16.9%

15,000+1,2665,500+1,525

10.0%

+0.1P

7.6%

+0.9P

14,500+1,4435,300+1,559

9.7%

+0.2P

7.4%

+1.1P

ChangesAmount+15.0%

8,999

7,396

+1,603

9,000

+0

3,200

+670

Net Income Ratio

6.5%

6.3%

+0.2P

6.0%

-0.5P

4.4%

+0.2P

US$

97.73

79.81

+17.92100.00+2.27

100.00

+4.27

Euro

129.78102.55+27.23135.00+5.22

135.00+9.38

12/2014
Estimate

Changes fromprevious year

12/2014
Estimate

Changes fromprevious year
Amount+21.7%

2. Consolidated Segment Results
Net Sales

Amount: millions of yen

12/2013
Result12/2012ResultFull year

Full year

AmountRatio

Full year

Amount

1st half

Changes

Automotive

49,524

43,230+6,293+14.6%

54,500+4,97525,000+4,684

Process&Environmental

14,711

13,709+1,001+7.3%

15,500

+788

7,500

+1,135

Medical26,832

22,400+4,432+19.8%

28,500+1,667

14,000+897

Semiconductor

24,153

17,861+6,292+35.2%

27,000+2,846

14,000+4,046

Scientific

22,913

20,406+2,506+12.3%

24,500+1,586

11,500+1,553

Total

138,136

117,609 +20,526+17.5%

150,000+11,863

72,000+12,317

Operating Income

12/2013
Result12/2012Result12/2014
Estimate

Changes fromprevious year

12/2014
Estimate

Changes fromprevious year

Full year

Full year

Full year

Amount

1st half

AmountChangesAmount

Ratio

Automotive

4,287

4,412

-124

-2.8%

5,200

+912

1,300

+82

Process&Environmental

1,263

1,642

-379

-23.1%

1,300

+36

400

+40

Medical

2,429

2,478

-48

-2.0%

2,500

+70

1,100

+69

Semiconductor

4,815

2,274

+2,540 +111.7%

5,000

+184

2,600

+1,042

Scientific

937

943

13,733

11,751

Total

-5

-0.6%

1,000

+62

100

+291

+1,981+16.9%

15,000+1,2665,500+1,525

17

HORIBA, Ltd. (Consolidated)3. Consolidated Segment Sales by Destination

Automotive

Amount: millions of yen

12/2013
Result12/2012ResultFull year

Full year

Amount12/2014
Estimate

Ratio

Changes

Changes

12/2014
Estimate

Changes

Full year

Amount

1st half

Amount49,524

43,230+6,293+14.6%

54,500+4,97525,000+4,684

Japan

17,072

15,051+2,021+13.4%

15,500-1,572

8,000

-119

Asia

11,834

12,524

-689

-5.5%

14,000+2,1656,000+1,657

Americas(*)

7,317

5,346

+1,971+36.9%

9,500+2,182

4,200+1,603

Europe13,29910,308+2,991+29.0%

15,500+2,2006,800+1,543

Process&Environmental

14,711

13,709+1,001+7.3%

15,500

+788

7,500

+1,135

Japan

8,143

9,268

-1,125-12.1%

8,500

+356

4,200

+194

Asia

2,308

1,850

+457

+24.7%

2,500

+191

1,400

+576

Americas(*)

2,191

996

+1,194+119.8%

2,500

+308

1,100

+321

Europe

2,068

1,593

+474

+29.8%

2,000

-68

800

+43

Medical26,832

22,400+4,432+19.8%

28,500+1,667

14,000

+897

Japan

5,387

5,281

+105

+2.0%

5,500

+112

2,700

+2

Asia

3,668

2,882

+786

+27.3%

5,000+1,331

2,400

+597

Americas(*)

6,521

5,333

+1,188+22.3%

6,600

+78

3,300

+118

Europe11,255

8,902+2,352+26.4%

11,400

+144

5,600

+179

24,153

17,861+6,292+35.2%

27,000+2,846

14,000+4,046

10,756

9,120+1,636+17.9%

12,100+1,343

6,200+1,669

Semiconductor
Japan
Asia

8,301

5,268

+3,032+57.6%

8,100

-201

4,500

+1,215

Americas(*)

3,850

2,377

+1,473+62.0%

5,300+1,4492,800+1,145

EuropeScientific

1,245

1,095

+149

+13.7%

1,500

+254

500

+14

22,913

20,406+2,506+12.3%

24,500+1,586

11,500+1,553

Japan

7,136

7,055

+81

+1.2%

7,300

+163

3,400

+246

Asia

4,872

3,744

+1,127+30.1%

5,200

+327

2,500

+389

Americas(*)

5,196

4,086

+1,109+27.2%

5,500

+303

2,600

+271

5,520

+188

+3.4%

6,500

+791

3,000

+645

117,609 +20,526+17.5%

150,000 +11,863

72,000+12,317

Europe

Total

5,708

138,136
Japan

48,49645,777+2,718+5.9%

48,900+403

24,500+1,993

Asia

30,98526,270+4,714+17.9%

34,800+3,814

16,800+4,436

Americas(*)

25,077

18,140+6,936+38.2%

29,400+4,322

14,000+3,460Europe33,57727,421+6,156+22.5%

36,900+3,322

16,700+2,426(Note) Americas includes all countries in North America and South America.

18

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

Net Sales
Operating Income

28,7382,340

12/2013 Result
2Q
3Q

30,944
1,633

32,5952,470

Amount: millions of yen
4Q

1Q

45,857
7,289

29,522
3,627

12/2012 Result
2Q
3Q

27,432
1,680

25,8891,748

4Q

34,765
4,695

Operating Income Ratio

8.1%

5.3%

7.6%

15.9%

12.3%

6.1%

6.8%

13.5%

Ordinary Income

2,344

1,395

2,327

6,989

3,555

1,523

1,597

4,676

8.2%

4.5%

7.1%

15.2%

12.0%

5.6%

6.2%

13.5%

1,370

1,159

1,692

4,777

2,141

908

1,027

3,319

Net Income Ratio

4.8%

3.7%

5.2%

10.4%

7.3%

3.3%

4.0%

9.5%

US$
Euro

92.46
122.0699.00
129.1899.03
131.17100.43136.71

79.35
104.1480.19
102.82

78.63
98.20

81.07
105.04

Ordinary Income Ratio

Net Income

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

9,956
3,131
6,348
4,326
4,975
28,738

12/2013 Result
2Q
3Q

10,359
3,232
6,753
5,626
4,971
30,944

11,398
3,530
6,457
5,958
5,251
32,595

4Q

1Q

17,810
4,816
7,272
8,241
7,716
45,857

9,185
4,106
5,543
5,508
5,178
29,522

Automotive
Process&Environmental

Medical
Semiconductor
Scientific
Total
Backlog

Automotive
Process&Environmental

Medical
Semiconductor
Scientific
Total

9,390
3,002
5,497
4,907
4,635
27,432

9,343
3,005
5,451
3,614
4,474
25,88915,311
3,596
5,907
3,831
6,119
34,765

1Q

12/2013 Result
2Q
3Q

4Q

1Q

12/2012 Result
2Q
3Q

4Q

897
356
530
506
48
2,340

320
2
499
1,050
-239
1,633

2,508
651
871
2,165
1,092
7,289

562
893
746
1,210
215
3,627

171
128
652
724
2
1,680

2,947
398
501
194
653
4,695

Amount: millions of yen
12/2012 Result
2Q
3Q
4Q

562
251
527
1,092
35
2,470

7. Consolidated Orders and Backlog Information (Quarterly Comparison)
OrdersAmount: millions of yen
12/2012 Result
2Q
3Q
4Q

1Q

12,840
3,913
6,742
4,650
5,306
33,453

1Q

31,412
3,357
3,059
2,079
5,521
45,43012/2013 Result
2Q
3Q

12,515
3,842
6,483
5,118
6,169
34,12910,387
4,138
6,072
6,963
6,197
33,758

12/2013 Result
2Q
3Q

33,568
3,967
2,790
1,571
6,719
48,61632,557
4,575
2,404
2,576
7,665
49,77819

4Q

1Q

16,673
4,095
7,179
8,818
7,721
44,487

12,348
3,933
6,031
5,372
5,502
33,1884Q

1Q

31,420
3,853
2,311
3,152
7,670
48,40827,755
2,525
2,562
1,597
5,603
40,043

10,148
3,211
5,299
4,532
4,526
27,718

731
223
577
145
71
1,748

12,446
3,074
5,402
4,077
4,526
29,527

12/2012 Result
2Q
3Q

28,512
2,734
2,364
1,223
5,495
40,33031,616
2,804
2,314
1,685
5,547
43,968

12,223
3,367
6,258
3,901
5,762
31,513

4Q

28,527
2,575
2,665
1,755
5,190
40,715HORIBA, Ltd. (Consolidated)8. Non-Consolidated Financial Results

Amount: millions of yen

12/2013
Result12/2012ResultFull year

Full year

Net Sales

54,34853,526

+822

+1.5%

Operating Income

4,927

5,051

-124

-2.5%

Operating Income Ratio

9.1%

9.4%

-0.3P

6,652

7,261

-608

Ordinary Income Ratio

12.2%

13.6%

-1.4P

Net Income

5,192

5,636

-443

9.6%

10.5%

-0.9P

Ordinary Income

Net Income Ratio

ChangesAmount

Ratio

-8.4%

-7.9%

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

20

HORIBA, Ltd. (Consolidated)