Consolidated Financial Statements for the Year Ended December 31, 2011
(Japanese GAAP)
February 14, 2012
Company name

HORIBA, Ltd.

Listed stock exchanges: Tokyo, Osaka

Listing code

6856

Representative

Atsushi Horiba, Chairman, President and CEO

Contact

Fumitoshi Sato, Managing Director

URL: http://www.horiba.com
TEL: (81)75-313-8121(Figures have been rounded down to the nearest million yen)

1. Consolidated Results for the Year Ended December 31, 2011 (January 1, 2011 - December 31, 2011)(Percentages represent changes from the previous year)(1) Consolidated Operating Results
Net Sales
Operating Income
Ordinary Income
Net Income
Millions of yen% Millions of yen% Millions of yen% Millions of yen

%

8,664
Year ended 12/31/11
123,456
14,906 21.2
14,611 18.7
4.1
9.3
7,927 150.7
Year ended 12/31/10
118,556 13.4
12,299 139.1
12,309 133.4(Note) Comprehensive Income: FY2011 \ 7,050 million yen (51.3%), FY2010 \ 4,659 million yen (-%)

Net Income per ShareNet Income per Share(Diluted)

Yen

Yen

Return on
Equity%Ordinary
Operating
Income to
Income to Net
Total Assets
Sales
%
%

Year ended 12/31/11
204.88204.41
9.9
10.4
Year ended 12/31/10
187.46187.11
9.7
9.2(Reference) Equity in earnings of affiliates: FY2011 \ 2 million yen, FY2010 \ 12 million yen

12.1
10.4

(2) Consolidated Financial Position
Total Assets

Shareholders'Equity Ratio

Net Assets

Millions of yen

Millions of yen

Net Assets
per Share%Yen

144,649
90,46062.4
2,133.44
As of 12/31/11
61.2
137,290
84,155
As of 12/31/10
1,986.77(Reference) Net assets excluding subscription rights to shares and minority interests in consolidated subsidiaries:
As of December 31, 2011: \ 90,232 million yen; As of December 31, 2010: \ 84,019 million yen(3) Consolidated Cash Flows
Cash Flows from
Cash Flows from
Cash Flows fromOperating Activities Investing Activities Financing Activities
Millions of yen

Millions of yen

6,954
11,964

Year ended 12/31/11
Year ended 12/31/10

Cash and Cash
Equivalents at endof the period

Millions of yen(6,145)(2,821)855(1,028)Millions of yen

35,76734,4592. Dividends
Dividend per share
End of 1Q

End of 2Q

Yen

End of 3Q

Year end

Yen

Total

Year ended 12/31/10
Year ended 12/31/11

-

Yen
6.00
9.00

-

Yen
11.00
31.00

Yen
17.00
40.00

Year ending 12/31/12(Forecast)

-

15.00

-

28.00

43.00

Total Dividends(Annual)Payout Ratio(Consolidated)

Dividends to Net
Assets(Consolidated)

Millions of yen
718
1,691

%
9.1
19.5

%
0.9
1.9

24.2

(Note) As HORIBA, Ltd. will celebrate the 60th anniversary of its foundation on January 26, 2013, it plans to pay acommemorative dividend of 10 yen per share. Thus, the year-end dividend per share for fiscal 2012 is
projected to be 28 yen, after combining the commemorative dividend of 10 yen with the ordinary dividendof 18 yen.
3. Consolidated Forecast for the Year Ending December 31, 2012 (January 1, 2012 - December 31, 2012)(Percentages represent changes from the same period in the previous year)

Operating Income

Net Sales
Millions of yen

First half
Full year

58,500123,500% Millions of yen

-2.6
0.0

Ordinary Income% Millions of yen

5,000 -26.7
12,500 -16.1% Millions of yen

4,800 -29.5
12,000 -17.9

1

Net Income
per Share

Net Income%

3,000 -29.9
7,500 -13.4

Yen

70.93
177.33

HORIBA, Ltd. (Consolidated)4. Others(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 principles, procedures and disclosures① Changes due to revisions in accounting standards: Yes② Changes other than the above: None
(Note) Please see "Significant Changes in the Basis of Presentation of the Consoldiated Financial Statements"
on page 17 for further details.
(3) Number of shares outstanding (common stock)
December 31, 2011
42,532,752
238,083
42,293,434① Shares issued (including treasury stock)② Treasury stock③ The average number of outstanding shares
during Jan. - Dec. in FY2011 and FY2010

December 31, 2010
42,532,752
243,055
42,289,698(Reference) Overview of Non-Consolidated Financial Results
1. Non-Consolidated Results for the Year Ended December 31, 2011 (January 1, 2011 - December 31, 2011)(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%

51,90245,243

14.7
6.8

5,651
2,418

133.6
329.6

8,278
3,739

121.4
83.7

5,541
2,370

133.8
29.4

Year ended 12/31/11
Year ended 12/31/10

Net Income per Share(Diluted)
Yen
Yen

Net Income per ShareYear ended 12/31/11
Year ended 12/31/10

131.0356.04

130.73
55.94

Total Assets

Net Assets(2) Non-Consolidated Financial Position

Millions of yen

Shareholders' Equity
Ratio

Millions of yen

Net Assets
per Share%

Yen

1,707.46
As of 12/31/11
101,479
72,403
71.2
As of 12/31/10
95,21267,80471.1
1,600.34(Reference) Net assets excluding subscription rights to shares:
As of December 31, 2011: \ 72,216 million yen; As of December. 31, 2010: \ 67,677 million yen
2. Non-Consolidated Forecast for the Year Ending December 31, 2012 (January 1, 2012 - December 31, 2012)(Percentages represent changes from the same period in the previous year)

Net SalesFirst half
Full year

Operating Income

Millions of yen%

26,00053,000

5.7
2.1

Millions of yen

Ordinary Income%

Millions of yen%

4,000 -14.1
6,200 -25.1

2,000 -11.4
4,000 -29.2

Net Income
per Share

Net Income
Millions of yen%

3,200 -15.2
4,500 -18.8

Yen

75.66
106.40Note 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. 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 19, “HORIBA, Ltd. Financial Highlights for the Year Ended December 31, 2011”)(i) Operating Results for the year ended December 31, 2011
During the fiscal year ended December 31, 2011, the weaker economies in the U.S. and Europe slowed thepace of recovery but the overall global economy posted continued moderate economic growth, withemerging countries acting as the driving force. In the U.S., a delayed improvement in the housing market
and employment dampened economic growth, while in Europe the sovereign debt crisis affected the real
economy and signs of economic slowdown became more evident. Meanwhile, economies in emerging
countries such as China and India slowed down only marginally and maintained relatively high economic
growth. In Japan, manufacturing activities dropped significantly in response to the Great East Japan
Earthquake in March 2011, but the economy recovered on the back of the restoration of manufacturing
equipment and the rebuilding of the supply chain for components and materials. However, owing to theappreciation of the yen and the floods in Thailand, the recovery stalled. In 2011, the yen continued tostrengthen as in the previous year. The annual average exchange rates were 79.80 yen against the U.S.
dollar and 111.13 yen against the euro, marking increases of 10.0% and 4.6%, respectively.
The analytical and measurement equipment market saw signs of a moderate recovery in capital spending
and development investment by automakers. However, equipment demand in the semiconductor-related
market dropped in the second half of 2011 as semiconductor makers and light-emitting diode (LED) makers
had completed a cycle of capital spending. In addition, due to the stronger yen and intensified competition,
the general trend of declining product prices continued.
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 2011. The Corporate & Segment Strategy Division was newly established to design andpromote overall corporate strategy. At the same time, primarily focused 13 businesses were selected fromfive business segments and “business owners” who make and implement specific product strategies wereassigned to each of these businesses. These measures led to the accelerated launch of products thatmatch market needs. By business segment, the Automotive Test System segment reorganized the MCT(Mechatronics) business* with the aim of improving profitability and continued R&D spending fornext-generation product development. In the Process & Environmental Instruments & Systems segment, aproduction system was established to satisfy an increase in demand for environmental radiation monitor,
and the segment strived to provide “reassurance” to people who live in East Japan. In the
Medical-Diagnostic Instruments & Systems segment, HORIBA STEC undertook the expansion work on the
Aso factory in Kumamoto Prefecture in order to enhance the production system for blood cell testing
instruments. In addition, with the aim of responding to growing demand for testing reagents in various
countries, a reagent factory was newly built in China, and the factory in Brazil has been under going the
expansion work. What’s more, new representative offices were established in Vietnam and Indonesia tomeet the high market demand. The Semiconductor Instruments & Systems segment focused on cost
reduction measures such as establishing Beijing HORIBA METRON, a joint venture company which isestablished to manufacture mass flow controllers for LEDs and photovoltaics locally. In the Scientific
Instruments & Systems segment, a new R&D center in Europe is currently under construction. HORIBA
supports joint research with universities and research institutions and aims to develop products that meet
the advanced needs of customers in advanced material analysis and other fields.

3

HORIBA, Ltd. (Consolidated)At the same time, the Group implemented cost reduction measures to improve profitability. Specificmeasures included promotion of the use of “shared services” (consolidation of common services in several
organizations to make them more efficient and specialized) and control of fixed costs throughreorganization in Europe and the U.S.. Due to improved profitability in the Medical-Diagnostic Instruments &Systems segment, the HORIBA Group has further advanced its well-balanced management by optimally
allocating business resources to each business segment and region. The Group is thus establishing asystem in which business segments complement each other to achieve optimal profits.
As a result of such measures and sales efforts, sales increased by 4.1% from a year earlier to 123,456
million yen. Operating income and ordinary income rose by 21.2% and 18.7% respectively to 14,906 million
yen and 14,611 million yen, while net income rose by 9.3% to 8,664 million yen.

The operating results of each business segment are summarized as follows. From 2011, HORIBA changed
its number of business segments from four to five, by dividing the Analytical Instruments & Systems
segment into the Process & Environmental Instruments & Systems segment and the Scientific Instruments& Systems segment. The three other business segments remain unchanged.
(Automotive Test Systems)
Although overseas sales were lower after yen conversion due to the stronger yen, segment sales increased
as investment by the automobile industry was robust in emerging countries and signs of a recovery ininvestment became apparent. Furthermore, profitability improved mainly in emission measurement systems,
HORIBA’s major product. In the MCT(Mechatronics) business, the reorganization of the main base inGermany began to bear fruit and profitability improved in the second half of 2011. Consequently, sales inthe segment increased by 8.2% year-on-year to 38,678 million yen and operating income rose by 73.6% to2,834 million yen.
(Process & Environmental Instruments & Systems)
Stack gas analyzers and other products which responded to various environmental regulations showed
underlying strength. In addition, sales of environmental radiation monitor grew due to an increase indemand after the Great East Japan Earthquake. As a result, sales in the segment grew by 23.5%
year-on-year to 14,558 million yen and operating income soared by 189.3% to 2,532 million yen.
(Medical-Diagnostic Instruments & Systems)
Although sales in Europe, which represented about a half of segment sales, were lower after yen
conversion due to the stronger yen, sales of blood cell testing instruments were solid in Japan, SouthAmerica, and Asia. Consequently, sales in the segment increased by 4.3% year-on-year to 23,485 million
yen and operating income rose by 35.9% to 3,166 million yen.
(Semiconductor Instruments & Systems)
Owing to the expansion of production by makers of manufacturing equipment for silicon semiconductors,
light-emitting diodes (LEDs), and other products, sales of mass flow controllers, HORIBA’s mainstay
product, as well as chemical concentration monitors increased in the first half of 2011. However, in thesecond half of 2011, sales decreased due to production adjustments by customers. Moreover, profitability
deteriorated due to a decline in selling prices caused by the stronger yen. As a result, segment sales

4

HORIBA, Ltd. (Consolidated)decreased 10.8% year-on-year to 24,694 million yen and operating income declined 22.1% to 4,939 million
yen.
(Scientific Instruments & Systems)
Although overseas sales were lower after yen conversion due to the stronger yen, sales of analytical
instruments in the advanced material development area increased in various countries. In Japan, theweakening of the Euro led to solid sales of analytical instruments developed and manufactured in France,and profitability improved. Consequently, sales in the segment increased by 5.8% year-on-year to 22,040
million yen and operating income rose by 28.0% to 1,433 million yen.

* The MCT (Mechatronics) business is the automotive measurement instruments business that was
acquired from Carl Schenck AG in Germany in 2005.

5

HORIBA, Ltd. (Consolidated)

(ii) Outlook for the Year Ending December 31, 2012
The outlook for the global economy is extremely uncertain, with worries that a delay in solving Europe’s
sovereign crisis will slow down the world economy in 2012. The U.S. is expected to record moderate growthwith little improvement in the housing market and employment, while the European economy is likely toremain sluggish. Emerging countries such as China and India are projected to maintain high economic
growth albeit at a slower rate than in 2011 due to some deceleration in exports and investments. Japan’s
economy is projected to pick up gradually from the middle of 2012, partly due to rising demand forreconstruction from the Great East Japan Earthquake disaster. Against this background, HORIBA’s
forecasts for fiscal 2012 are shown below.
Our assumed foreign exchange rates are 75 yen against the U.S. dollar (vs. 79.80 yen in fiscal 2011) and
100 yen against the euro (vs. 111.13 yen in fiscal 2011).
Net sales of 123,500 million yen, up 0.0% y-o-yNet sales are expected to increase by 43 million yen from the previous year to 123,500 million yen.
The Automotive Test Systems segment is expecting a moderate recovery in capital spending anddevelopment investment by automakers, the segment’s major customers, will lead to growth in sales ofengine emission measurement systems, HORIBA’s major product, and in sales in the MCT (Mechatronics)
business. On the other hand, the HIT business, which handles vehicle driving and operating management
system, is forecast to record a decrease in sales due to a tough comparison with the previous year, when alarge transaction was recorded.
The Process & Environmental Instruments & Systems segment is anticipating growth in demand for stackgas analyzers and other products related to environmental regulations. However, segment sales areprojected to decrease as the demand outlook for environmental radiation monitor is uncertain at thismoment.
Medical-Diagnostic Instruments & Systems segment sales are expected to be lower after yen conversion
due to the weaker euro, despite growth in sales of blood cell testing instruments in various countries.
The Semiconductor Instruments & Systems segment anticipates a moderate recovery in demand for silicon
semiconductor manufacturing equipment. However, a recovery in demand for photovoltaics andlight-emitting diodes (LEDs) is uncertain, while sales prices are likely to drop due to the strong yen andintensified competition.
Scientific Instruments & Systems segment sales are expected to be lower after yen conversion due to theweaker euro.
Operating income of 12,500 million yen, down 16.1% y-o-yOperating income is likely to decrease by 2,406 million yen from the previous year to 12,500 million yen.
In the Automotive Test Systems segment, the appreciation of the yen is expected to lower the profitability ofemission measurement systems, HORIBA’s major product, while the MCT business is projected to improve
profitability due to last year’s reorganization and continued cost reduction efforts. In addition, the demand
outlook for environmental radiation monitor is uncertain, and the Semiconductor Instruments & Systems
segment is projecting a decrease in sales and the appreciation of yen look to deteriorate the profitability.
Ordinary income of 12,000 million yen, down 17.9% y-o-yOrdinary income is expected to decrease by 2,611 million yen from the previous year to 12,000 million yen.
Our forecasts incorporate a non-operating loss of 500 million yen on a net basis, assuming foreignexchange losses and some uncertain non-operating expenses.

6

HORIBA, Ltd. (Consolidated)

Net income of 7,500 million yen, down 13.4% y-o-yAssuming the generation of some extraordinary losses, a net extraordinary loss of 600 million yen has been
incorporated in our forecasts. As a result, net income is forecast to decrease by 1,164 million yen from theprevious year to 7,500 million yen.
(Note) The above forecasts have been made on the basis of information available as of February 14, 2012,
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, 2011 and theYear Ending December 31, 2012
The Company’s basic policy regarding dividends is to maintain its standard payout ratio in which the total
dividend payment amount is equal to 30% of the non-consolidated net income of the Company. The
Company receives a certain proportion of the net income of each group company as a dividend. Thus,
although dividend payments to shareholders are computed based on the non-consolidated net income of
the Company, they are in effect made on consolidated earnings. In addition, the Company intends toappropriate internal reserves for retained earnings as working capital for business expansion, capital
expenditures and investments in research and development, with the aim of improving corporate value inthe medium to long term.
According to its basic policy, HORIBA has decided to pay a year-end dividend of 31 yen per share.
Combined with the interim dividend that has been paid out, the annual dividend is 40 yen.
For the next fiscal year ending December 31, 2012, HORIBA, Ltd. will celebrate the 60th anniversary of its
foundation and the Company intends to pay 10 yen per share as a commemorative dividend. When this
dividend of 10 yen is combined with 33 yen, which is calculated based on the standard payout ratio, theannual dividend per share is projected to be 43 yen, an increase of 3 yen from fiscal 2011.
(3) Business risks
Disclosure is omitted as there have been no significant changes since the latest annual securities reportthat was submitted on March 28, 2011.

7

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 the reinforcement of alliances and theintegration of its 36 companies throughout the world by utilizing our human 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 will launch various measures to achieve the numerical targets of 150 billion
yen in consolidated net sales, an operating income margin of 13% or more, and ROE of 11% or more. In
2011, the first year of the plan, although the business environment was harsh because of the impact of theGreat East Japan Earthquake, the appreciation of the yen, and other factors, the HORIBA Group achieved
growth in sales and profit, and recorded net sales of 123.4 billion yen, an operating margin of 12.1%, andROE of 9.9%.
(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 becoming
more well-balanced earnings structure that enable us to generate stable high earnings. In addition, we plan
to focus 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.

8

HORIBA, Ltd. (Consolidated)

Regarding the automotive business, the MCT (Mechatronics) business has driveline-related products withhigh growth potential in the development of next-generation automobiles. We aim to expand the businessand generating an early turnaround in profitability, by investing in the launch of new products and achieving
further efficiency.
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. Going forward, theR&D Division, where operations have been separated by business segment, will be reorganized by function
so that intra-segment information is shared and the capability to propose solutions is enhanced. We will
also enhance the speed and quality of decision-making by clearly defining the responsibilities of persons incharge of development, production, and sales, who will 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. Going forward, we will introduce “shared services” in Europe and Asia withreference 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 footprints, 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. In Brazil, relocation and the expansion of
the testing reagent plant is now going under the process and is increasing capacity in order to expand the
medical business in South America. In Japan, the Aso factory in Kumamoto prefecture began construction
for expansion with the aim of responding to rising demand for testing reagents. In France, we commenced
construction of a new R&D center, which will be a Europe’s central base for R&D activities in Scientific
Instruments & Systems segment. As a footprint for future business expansion, the Group opened
representative offices in Vietnam and Indonesia, where demand is rising and economic growth ispronounced even among South East Asian countries. We will also accelerate the building of footholds forthe medical-diagnostic and automotive businesses, where growth in demand is highly anticipated.

9

HORIBA, Ltd. (Consolidated)3. Consolidated Financial Statements(1) Consolidated Balance Sheets
Amount: millions of yen
FY2010(As of December 31,
2010)

FY2011(As of December 31,
2011)

Cash and bank deposits

26,95828,893

Trade notes and accounts receivable

36,42739,375Marketable securities

7,638

8,350

Merchandise and finished goods

8,341

9,015

Work in process

8,781

9,127

Raw materials and supplies

7,720

8,144

Deferred tax assets

2,930

3,201

Other current assets

2,092

2,896

Allowance for doubtful accounts

(765)

(750)

100,124

108,255

Buildings and structures, net

8,653

8,156

Machinery, equipment and vehicles, net

3,295

2,945

Land

7,272

7,362

743

2,130

Other property, plant and equipment, net

2,551

2,328

Total Property, Plant and Equipment

22,51622,924

Goodwill

210

201

Software

4,787

4,182

Other intangibles

373

256

Total Intangibles

5,371

4,640

Investment securities

4,123

3,514

Deferred tax assets

2,129

2,115

Other investments and other assets

3,231

3,240

Allowance for doubtful accounts

(205)

(40)

Total Investments and Other Non-Current Assets

9,278

8,829

37,16636,394

137,290

144,649

AssetsCurrent Assets:

Total Current Assets
Fixed Assets:
Property, Plant and Equipment:

Construction in progress

Intangibles:

Investments and Other Non-Current Assets:

Total Fixed Assets
Total Assets

10

HORIBA, Ltd. (Consolidated)Amount: millions of yen
FY2010(As of December 31,
2010)

FY2011(As of December 31,
2011)

Trade notes and accounts payable

13,484

13,196

Short-term loans payable

5,575

6,684

Accounts payable - other

8,540

7,805

Accrued income taxes

3,458

2,459

Deferred tax liabilities

34

18

Accrued bonuses to employees

647

755

Accrued bonuses to directors and corporate auditors

106

84

1,098

1,308

-

174

Other current liabilities

4,751

6,085

Total Current Liabilities

37,69538,574

Corporate bonds

10,00010,000Long-term loans payable

1,195

1,291

113

108

1,734

1,775

Directors' and corporate auditors' retirement benefits

248

221

Provision for loss on guarantees

67-

Provision for compensation losses

429

616

Other non-current liabilities

1,651

1,600

Total Non-Current Liabilities

15,43915,615

53,13554,189Common stock

12,011

12,011

Capital surplus

18,717

18,717Retained earnings

58,46866,278

(804)

(788)

88,392

96,219Net unrealized holding gains on securities

897

717

Foreign currency translation adjustments(5,269)(6,703)

Total Accumulated Other Comprehensive Income(4,372)(5,986)

126

186

9

40

84,15590,460137,290

144,649

Liabilities
Current Liabilities:

Reserve for product warranty
Provision for business structure improvement

Non-Current Liabilities:

Deferred tax liabilities
Employees' retirement benefits

Total Liabilities
Net Assets
Shareholders' Equity

Treasury stock
Total Shareholders' Equity
Accumulated Other Comprehensive Income

Subscription Rights to Shares
Minority Interests in Consolidated Subsidiaries
Total Net Assets
Total Liabilities and Net Assets

11

HORIBA, Ltd. (Consolidated)(2) Consolidated Statements of Income and Consolidated Comprehensive Income Statements(Consolidated Statements of Income)Amount: millions of yen
FY2011(For the year ended
December 31, 2011)

FY2010(For the year ended
December 31, 2010)
Net sales

118,556

123,456

Cost of sales

66,15367,892

52,40255,564

40,10240,657

12,29914,906

Interest income

111

112

Dividend income

73

78

Gross Income
Selling, general and administrative expenses
Operating Income
Non-Operating Income

Foreign exchange gain

31

-

Other

376

358

Total non-operating income

593

548

488

494

Non-Operating Expense
Interest expense
Foreign exchange losses

-

283

Other

95

66

Total non-operating expense

584

844

12,30914,611313

10Gain on sales of investment securities

5-

Reversal of allowance for doubtful accounts

16-

Reversal of provision for loss on guarantees

-

67

Other

-

0

335

78

Ordinary Income
Extraordinary Gain
Gain on sales of fixed assets

Total extraordinary gain
Extraordinary Loss
Loss on sales of fixed assets

25

4Loss on disposal of fixed assets

112

48

Loss on impairment of fixed assets

40

98

Loss on sales of investment securities

00

Loss on valuation of investment securities

203

370

Provision for loss on guarantees

11-

Provision for compensation losses

299

214

-

267

68

-

Provision for business structure improvement
Office transfer expenses
Other

-

38

761

1,042

11,882

13,647

Income taxes (current)

4,945

5,187

Income taxes (deferred)

(990)

(204)

Total income taxes

3,955

4,982

-

8,664

(0)

(0)

7,927

8,664

Total extraordinary loss
Income before Income Taxes and Minority Interests

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

12

HORIBA, Ltd. (Consolidated)

(Consolidated Statements of Comprehensive Income)Amount: millions of yen
FY2011(For the year ended
December 31, 2011)

FY2010(For the year ended
December 31, 2010)
Income before Minority Interests

-

8,664

Other Comprehensive Income
Net unrealized holding gains on securities

-

(179)

Foreign currency translation adjustments-(1,434)

Share of other comprehensive income of associates
accounted for using equity method-(0)

Total other comprehensive income-(1,613)-

7,050

Parent company portion of comprehensive income

-

7,051

Minority interests portion of comprehensive income-(0)Comprehensive Income(Breakdown of comprehensive income)13

HORIBA, Ltd. (Consolidated)

(3) Consolidated Statement of Changes in Net Assets
FY2010(For the year ended
December 31, 2010)

Amount: Millions of yen
FY2011(For the year ended
December 31, 2011)

Shareholders' Equity
Common Stock
Beginning balanceEnding balance

12,011
12,011

12,011
12,011

Capital Surplus
Beginning balanceEnding balance

18,717
18,717

18,717
18,71751,09558,468

(549)
7,927
(4)
7,373
58,468

(845)
8,664
(8)
7,810
66,278

(811)

(804)

(0)
6
6
(804)

(0)
16
16
(788)

81,012

88,392

(549)
7,927
(0)
2
7,379
88,392

(845)
8,664
(0)
7
7,826
96,219Retained Earnings
Beginning balance
Changes during the period
Dividend from earnings
Net income
Disposal of treasury stock
Total changes during the periodEnding balance
Treasury Stock
Beginning balance
Changes during the period
Acquisition of treasury stock
Disposal of treasury stock
Total changes during the periodEnding balance
Total Shareholders' Equity
Beginning balance
Changes during the period
Dividend from earnings
Net income
Acquisition of treasury stock
Disposal of treasury stock
Total changes during the periodEnding balance

14

HORIBA, Ltd. (Consolidated)Accumulated Other Comprehensive Income
Net Unrealized Holding Gains on Securities
Beginning balance
Changes during the period
OthersTotal changes during the periodEnding balance
Foreign Currency Translation Adjustments
Beginning balance
Changes during the period
OthersTotal changes during the periodEnding balance
Total Accumulated Other Comprehensive Income
Beginning balance
Changes during the period
OthersTotal changes during the periodEnding balance

Subscription Rights to Shares
Beginning balance
Changes during the period
OthersTotal changes during the periodEnding balance

Minority Interests
Beginning balance
Changes during the period
OthersTotal changes during the periodEnding balance

Total Net Assets
Beginning balance
Changes during the period
Dividend from Earnings
Net Income
Acquisition of Treasury Stock
Disposal of Treasury Stock
OthersTotal Changes during the PeriodEnding Balance

15

FY2010(For the year ended
December 31, 2010)

Amount: millions of yen
FY2011(For the year ended
December 31, 2011)

932

897

(35)
(35)
897

(179)
(179)
717

(2,039)(5,269)(3,230)(3,230)(5,269)(1,434)(1,434)(6,703)(1,106)(4,372)(3,265)(3,265)(4,372)(1,613)(1,613)(5,986)

59

126

67
67
126

60
60
186

11

9

(2)
(2)
9

31
31
40

79,977

84,155

(549)
7,927
(0)
2
(3,201)
4,178
84,155

(845)
8,664
(0)
7
(1,521)
6,305
90,460HORIBA, Ltd. (Consolidated)

(4) Consolidated Statements of Cash Flows
Amount: millions of yen
FY2011(For the year ended
December 31, 2011)

FY2010(For the year ended
December 31, 2010)
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 loss on guarantees
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 marketable securities
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

11,882
4,489
40
34
165
197

13,647
4,111
98
34
(40)
192
87

(6)

(26)

429
(185)
488
64
(287)
112
4
203
(4)
(4,985)(3,689)3,933
535
13,423189(503)(1,144)
11,964

(67)
187
(190)
494
(21)
(5)
48
370
0
(4,080)(2,144)70
791
13,560184(519)(6,270)6,954Cash Flows from Investing Activities:
Increase in time deposits
Decrease in time deposits
Increase in time deposits restricted for use
Decrease in time deposits restricted for use
Payments for purchase of marketable securities
Proceeds from sales 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
Payments for purchase of investments in consolidated subsidiaries
Payments of loans receivableCollection of loans receivable
Other, net
Net Cash Provided by (used in) Investing Activities

(655)
804
(262)
(228)
456
(3,280)
608
(187)
(101)
87
(79)
24
(7)
(2,821)

(872)
507
32
(1,908)905(4,204)
51
(226)
(136)
12
(44)
(92)
32
(200)
(6,145)

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 stock issuance to minority shareholders
Net decrease (increase) of treasury stock
Cash dividends paid
Cash dividends paid to minority interests
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

(38)
341
(543)
(237)
(0)
(550)
(1,028)(1,244)
6,868
27,59034,459

1,557
824
(577)
(135)
41
(0)
(847)
(6)
855
(356)
1,308
34,45935,767

16

HORIBA, Ltd. (Consolidated)

(5) Notes related to Going Concern
None(6) Important Items Regarding the Preparation of the Consolidated Financial Statements
With the exception of significant changes in the basis of preparation of the consolidated financial
statements, disclosure of the important items regarding the preparation of the consolidated financial
statements has been omitted, as there were no significant changes from the matters disclosed in the
Annual Securities Report (released on March 28, 2011).
(7) Significant Changes in the Basis of Preparation of the Consolidated Financial Statements
Changes in accounting practices(Adoption of “Accounting Standard for Asset Retirement Obligations”)
Effective fiscal 2011, the Company has adopted the “Accounting Standard for Asset Retirement Obligations”(ASBJ Statement No.18, March 31, 2008) and the “Guidance on Accounting Standard for Asset Retirement
Obligations” (ASBJ Guidance No. 21, March 31, 2008).
This application had immaterial impact on operating income, ordinary income and income before income
taxes.
(8) Changes in methods of presentation(Consolidated Statements of Income)
Effective fiscal 2011, the Company has adopted the “Cabinet Office Ordinance for Partial Amendment ofRegulations on Terminology, Forms and Preparation of Consolidated Financial Statements” (Cabinet Office
Ordinance No.5, March 24, 2009), in accordance with the “Accounting Standard for Consolidated Financial
Statements” (ASBJ Statement No.22, December 26, 2008) and included the line item “Income before
minority interests.”(9) Additional information(Consolidated Comprehensive Income)
Effective fiscal 2011, the Company has adopted the “Accounting Standard for Presentation ofComprehensive Income” (ASBJ Statement No.25, June 30, 2010).
Regarding “Accumulated Other Comprehensive Income“ and “Total Accumulated Other Comprehensive
Income” in the previous fiscal year, however, values are reported in terms of “Valuation and Transaction
Adjustments” and “Total Valuation and Transaction Adjustments.”

17

HORIBA, Ltd. (Consolidated)4. Other(1) Change in Directors and Auditors (scheduled on March 24, 2012)
Change in Auditor①

To be appointed as New Corporate Auditor
Toshihiko Uno, Present Alternate Corporate Auditor②

To retire as Corporate Auditor
Hiroshi Tajima, Corporate Auditor(2) Change in Corporate Officers (scheduled on April 1, 2012)①

To be appointed (scheduled)
Name

Hideyuki Koishi

New Title

Present Title

Corporate Officer

Vice President and Director ofVice President and Director of

HORIBA STEC, Co., Ltd.

HORIBA STEC, Co., Ltd.
②

To be promoted (scheduled)
Name

Bertrand de Castelnau

New Title

Present Title

Senior Corporate Officer

Corporate Officer

President & CEO of HORIBA ABX

President & CEO of HORIBA ABX

S.A.S. (France)

S.A.S. (France)

Rex Tapp resigned as Corporate Officer on December 31, 2011.
As a result, HORIBA is scheduled to have 17 Corporate Officers that comprise 1 Executive Corporate
Officer, 6 Senior Corporate Officers, 3 Corporate Officers, and 7 Junior Corporate Officers as of April 1,
2012.

18

HORIBA, Ltd. (Consolidated)

(3) Supplemental Information
HORIBA, Ltd. Financial Highlights for the Year Ended December 31, 2011
1. Consolidated Financial Results

Millions of yen

12/2011
Result12/2010
ResultFull Year

Full Year

AmountNet Sales

123,456

118,556+4,900+4.1%

123,500+43

58,500-1,531

Operating Income

14,906

12,299+2,607+21.2%

12,500-2,4065,000-1,825

Operating Income Ratio

12.1%

10.4%

+1.7P

10.1%

-2.0P

8.5%

-2.9P

14,611

12,309+2,302

12,000-2,6114,800-2,005

11.8%

10.4%

+1.4P

9.7%

-2.1P

8.2%

-3.1P

8,664

7,927

+737

7,500

-1,1643,000-1,277Net Income Ratio

7.0%

6.7%

+0.3P

6.1%

-0.9P

5.1%

-2.0P

US$

79.80

87.79

-7.99

75.00

-4.80

75.00

-7.01

Euro

111.13116.27-5.14

100.00-11.13100.00-15.04

Ordinary Income
Ordinary Income Ratio

Net Income

ChangesRatio+18.7%+9.3%

12/2012Estimate

Changes from
Previous Year

12/2012Estimate

Changes from
Previous Year

Full Year

Amount

1st half

Amount2. Consolidated Segment Results
Net Sales

Millions of yen

12/2011
Result12/2010
ResultFull Year

Full Year

ChangesAmountRatio

12/2012Estimate

Changes from
Previous Year

12/2012Estimate

Changes from
Previous Year

Full Year

Amount

1st half

AmountAutomotive

38,67835,751+2,926+8.2%

42,000+3,321

19,000+1,887

Process&Environmental

14,558

11,787+2,770+23.5%

13,500-1,058

6,800

+535

Medical23,48522,514

+970

+4.3%

23,500+14

11,700-294

Semiconductor

24,694

27,676-2,981-10.8%

23,500-1,194

11,000-3,457

Scientific22,04020,825+1,214+5.8%

21,000-1,04010,000

-202

Total

123,456

118,556+4,900+4.1%

123,500+43

58,500-1,531

Operating Income

12/2011
Result12/2010
Result12/2012Estimate

Changes from
Previous Year

12/2012Estimate

Changes from
Previous Year

Full Year

Full Year

Full Year

Amount

1st half

AmountChangesAmount

Ratio

Automotive

2,834

1,632

+1,201+73.6%

2,300

-534

500

-316

Process&Environmental

2,532

875

+1,656+189.3%

1,300-1,232600-59

Medical

3,166

2,330

+836

+35.9%

3,400

+233

1,600

-224

Semiconductor

4,939

6,340

-1,401-22.1%

4,000

-939

1,800

-1,495

Scientific

1,433

1,120

+313

+28.0%

1,500

+66

500

+270

Total

14,906

12,299+2,607+21.2%

12,500-2,4065,000-1,825(Note 1.) From 2011, HORIBA has divided the Analytical Instruments & Systems segment into the Process & Environment
Instruments & Systems segment and the Scientific Instruments & Systems segment, based on its management approach.

19

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

Automotive
Japan
Asia
Americas
EuropeProcess&Environmental

Japan
Asia
Americas
EuropeMedicalJapan
Asia
Americas
EuropeSemiconductor
Japan
Asia
Americas
EuropeScientific
Japan
Asia
Americas
Europe
Total
Japan
Asia
Americas
EuropeMillions of yen

12/2011
Result12/2010
ResultFull Year

Full Year

Amount38,678
14,672
7,379
4,989
11,636
14,55810,447
1,643
809
1,657
23,485
5,435
2,704
6,019
9,326
24,694
11,244
5,998
3,656
3,795
22,040
7,186
4,567
4,493
5,791
123,456
48,986
22,293
19,96932,20735,751
12,016
6,244
5,926
11,563
11,787
7,359
1,629
1,126
1,671
22,514
4,826
2,132
6,011
9,544
27,676
12,010
6,067
4,311
5,287
20,825
6,689
4,225
4,396
5,514
118,556
42,902
20,29921,77233,581+2,926+2,656+1,134-936+72+2,770+3,087
+14
-317
-13
+970
+608
+572
+7
-218
-2,981
-765
-68
-654
-1,492+1,214
+497
+341
+97
+277
+4,900+6,084+1,993-1,803-1,374

Changes
Ratio

+8.2%
+22.1%+18.2%-15.8%+0.6%+23.5%+41.9%+0.9%-28.2%-0.8%+4.3%+12.6%+26.8%+0.1%-2.3%-10.8%-6.4%-1.1%-15.2%-28.2%
+5.8%
+7.4%
+8.1%
+2.2%
+5.0%
+4.1%
+14.2%
+9.8%
-8.3%
-4.1%

4. Capital Expenditures, Depreciation and R&D Expenses

12/2012Estimate

Changes

12/2012Estimate

Changes

Full Year

Amount

1st half

Amount42,00015,40010,3005,300
11,00013,500
9,500
1,700
800
1,500
23,500
5,600
3,100
5,800
9,000
23,50012,300
5,700
3,100
2,400
21,000
7,500
3,800
4,500
5,200
123,500
50,30024,60019,50029,100+3,321+727+2,920+310-636-1,058
-947
+56
-9
-157
+14
+164
+395
-219
-326
-1,194+1,055-298-556-1,395-1,040
+313
-767
+6
-591
+43
+1,313+2,306-469-3,10719,000
7,100
4,300
2,500
5,100
6,800
4,900
800
400
700
11,700
2,800
1,500
2,900
4,500
11,000
5,800
2,600
1,600
1,000
10,000
3,500
1,900
2,200
2,400
58,50024,100
11,1009,600
13,700+1,887+9+1,306
+464
+107
+535
+665
+15
-7
-138
-294
+100
+276
-296
-375
-3,457
-249
-794
-641
-1,772
-202
-217
-176
+226
-35
-1,531
+308
+629
-254
-2,214

Millions of yen

12/2011

12/2010

12/2012ResultResultEstimate

Capital Expenditures (*2)

4,670

4,033

6,500

Depreciation

4,146

4,523

4,500

R&D Expenses

10,0609,480

10,000(Note 2.) Capital Expenditures are investments in tangible and intangible fixed assets.

20

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

Millions of yen

12/2011 Result

Net Sales
Operating Income
Operating Income Ratio

Ordinary Income
Ordinary Income Ratio

Net Income

12/2010 Result

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

29,3083,108

30,723
3,689

27,6142,880

35,8105,200

26,8171,990

28,2842,559

27,611
3,167

35,842
4,526

10.6%

12.0%

10.4%

14.5%

7.4%

9.0%

11.5%

12.6%

3,077

3,696

2,604

5,201

1,963

2,618

3,105

4,566

10.5%

12.0%

9.4%

14.5%

7.3%

9.3%

11.2%

12.7%

2,919

2,157

2,120

1,616

2,771

1,383

1,623

2,001

Net Income Ratio

7.4%

6.9%

5.9%

7.7%

5.2%

5.7%

7.3%

8.1%

US$
Euro

82.31
112.6681.71
117.4277.75
110.0977.43
104.3590.69
125.4992.03
116.9585.75
110.42

82.69
112.22

6. Consolidated Segment Results (Quarterly Comparison)
Net Sales

Automotive
Process&Environmental

Medical
Semiconductor
Scientific
Total
Operating Income

Automotive
Process&Environmental

Medical
Semiconductor
Scientific
Total

Millions of yen

12/2011 Result

12/2010 Result

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

8,268
2,917
5,774
6,971
5,376
29,308

8,844
3,346
6,220
7,485
4,826
30,723

7,133
3,810
5,746
5,588
5,336
27,614

14,431
4,483
5,744
4,649
6,501
35,810

7,005
3,013
5,417
6,023
5,357
26,817

8,107
2,752
5,710
7,183
4,530
28,284

6,754
2,580
5,654
7,682
4,939
27,611

13,883
3,441
5,733
6,787
5,997
35,842

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

357
246
795
1,520
188
3,108

450
409
1,024
1,767
37
3,689

120
813
675
932
338
2,880

1,897
1,059
667
711
865
5,200

(327)
240
494
1,256
327
1,990

143
119
584
1,774
(63)
2,559

(83)
150
796
1,952
351
3,167

1,883
358
443
1,344
494
4,526

12/2011 Result

12/2010 Result

7. Consolidated Orders and Backlog Information (Quarterly Comparison)
OrdersAutomotive
Process&Environmental

Medical
Semiconductor
Scientific
Total
Backlog

Automotive
Process&Environmental

Medical
Semiconductor
Scientific
Total

Millions of yen

12/2011 Result

12/2010 Result

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

11,391
2,891
6,449
7,502
6,195
34,43010,822
4,088
6,150
7,377
4,733
33,172

8,366
3,731
5,522
4,466
5,082
27,16913,083
4,085
5,641
4,965
5,734
33,50910,357
2,958
5,725
6,827
5,255
31,124

8,033
3,074
5,613
7,149
4,869
28,74012,544
2,887
5,330
7,448
5,585
33,796

8,667
3,121
5,623
6,190
5,520
29,124

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

22,728
2,433
2,471
2,648
6,393
36,67524,707
3,174
2,402
2,539
6,300
39,12325,940
3,095
2,178
1,418
6,047
38,67924,591
2,697
2,075
1,733
5,279
36,377

19,104
2,149
2,327
2,981
5,066
31,63019,030
2,471
2,230
2,947
5,405
32,08624,821
2,778
1,906
2,714
6,050
38,27019,605
2,459
1,796
2,117
5,574
31,552

12/2011 Result

12/2010 Result

21

HORIBA, Ltd. (Consolidated)Non-Consolidated Financial Results
12/2011
Result12/2010
ResultFull half

Full half

AmountOperating Income

51,902
5,651

45,243
2,418+6,659+3,232

Operating Income Ratio

10.9%

5.3%

+5.6P

Ordinary Income

8,278

3,739

+4,538

Ordinary Income Ratio

15.9%

8.3%

+7.6P

5,541

2,370

+3,171

10.7%

5.2%

+5.5P

Net Sales

Net Income
Net Income Ratio

12/2012Estimate

Changes

12/2012Estimate

Changes

Ratio

Full Year

Amount

1st Half

Amount+14.7%

53,0004,000+1,097-1,651

26,0002,000+1,408

7.5%

-3.4P

7.7%

△1.5P

6,200

-2,078

4,000

-653

11.7%

-4.2P

15.4%

△3.5P

4,500

-1,041

3,200

-573

8.5%

-2.2P

12.3%

△3.0P

Changes+133.6%+121.4%+133.8%(256)

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

22

HORIBA, Ltd. (Consolidated)