HORIBA, Ltd.

Financial Information

August, 2017

© 2017 HORIBA, Ltd. All rights reserved.

1

Contents
 2017 First-Half Results 2017 Full Year Forecast
 Business Segment Outline
 Shareholder Return Other Topics
 Financial Data Corporate Profile[Disclaimer]
Plans and forecasts in this presentation that do not constitute historical facts are predictions concerning future business results. Thesestatements are based on judgments made in accordance with information available at the present time.
All rights reserved. Reproduction in whole or part of this presentation without permission is prohibited.
Copies of this presentation and additional information are available at HORIBA’s website: http://www.horiba.com© 2017 HORIBA, Ltd. All rights reserved.

2

Contents
 2017 First-Half Results 2017 Full Year Forecast
 Business Segment Outline
 Shareholder Return Other Topics
 Financial Data Corporate Profile© 2017 HORIBA, Ltd. All rights reserved.

3

Review of the First-Half of 2017
 Start of the Trump administration in US UK’s announcement to leave EU-> General election in UK
External Presidential election in France
Events-> Japan-EU Economic Partnership Agreement
 Booming semiconductor market
 Autonomous driving, EV, Emission regulation
 New/expanded facilities (US, UK and South Korea)
Internal Renewed a record-high share price. Market cap
Eventsexceeded 300bn yen.
 Workstyle innovation© 2017 HORIBA, Ltd. All rights reserved.

4

Summary of the First-Half Results of 2017
Renewed record-highs in Sales, Operating profit
and Net profit for the First Half

P&L

 Year-on-year increase in sales and profits in the Automotive Test
Systems (ATS) and Semiconductor segments.
 Total assets were 243.6bn yen, up 4.0bn yen from the end of 2016,
due to capital spending

B/S Loans payable were 26.7bn yen, down 4.9bn yen from the end of
2016, due to using capability of finance subsidiaries in US and in UK.
 Equity ratio: 56.7%
FCF+9.4
 Investing CF: Cash out 6.8bn yen, due to capital spending
bn yen Financial CF: Cash out 7.1bn yen, due to short-term repayment
 Operating CF: Cash in 16.2bn yen, due to growth in profitCF© 2017 HORIBA, Ltd. All rights reserved.

5

First-Half Results of 2017
(Billions of Yen)

2017 First-Half

2016 First-Half: Record-highs

Results

Forecast
as of May 12

Results

vs.2016

vs. Forecast
as of May 12

+7.3

-0.1

10.0

87.3
9.7

+1.9

-0.2

9.7%

11.4%

11.1%

+1.4p

-0.3p

Ordinary
profit

7.5

9.7

+1.9

-0.1

Net Income
attributable to
Owners of Parent

4.1

6.1

9.5
6.4

+2.3

+0.3

111.70124.52110.00120.00112.34121.66

+0.64
-2.86

+2.34
+1.66

Sales

79.9

87.5

O.P.

7.7

O.P. %

USD/JPY
EUR/JPY© 2017 HORIBA, Ltd. All rights reserved.

6

First-Half Results of 2017 by Segment(Billions of Yen)

Sales
2016
First-Half:Record-highs

Results

Operating profit

2017
First-Half

2016
First-Half

Forecast
as of
May 12

Results

vs.2016

vs.
Forecast
as of
May 12

Results

2017
First-Half
Forecast
as of
May 12

Results

vs.2016

vs.
Forecast
as of
May 12

Auto

28.1

32.0

30.6

+2.4

-1.3

0.5

2.2

2.1

+1.6

-0.0

P&E

7.7

8.0

8.0

+0.2

+0.0

0.8

0.4

0.3

-0.5

-0.0

Medical

13.8

12.0

12.3

-1.4

+0.3

1.5

1.0

0.8

-0.7

-0.1

Semi

17.8

24.0

24.7

+6.8

+0.7

4.4

6.5

6.7

+2.3

+0.2

Scientific

12.3

11.5

11.5

-0.8

+0.0

0.2

-0.1

-0.4

-0.7

-0.3

Total

79.9

87.5

87.3

+7.3

-0.1

7.7

10.0

9.7

+1.9

-0.2

© 2017 HORIBA, Ltd. All rights reserved.

7

Contents
 2017 First-Half Results 2017 Full Year Forecast
 Business Segment Outline
 Shareholder Return Other Topics
 Financial Data Corporate Profile© 2017 HORIBA, Ltd. All rights reserved.

8

Market Overview for the Full-Year 2017
Auto

- Expect steady R&D investment by auto/auto parts manufacturers
due to tighter emission regulations in EU and Japan.
- Active investment trend in global automotive sector.
- Tighter environmental regulations in China

P&E- Business opportunities in water treatment facilities due to capacity
expansion by semiconductor factories

Medical- Japan: Continuing favorable sales to doctors in private practice.
- Overseas: Decline in demand in EU and South America.

Semi- Expect continuous investment by semiconductor manufacturers- High demand for etching equipment thanks to an increase indemand for 3D NAND

Scientific- Decrease in government budgets for research in developed
countries- Increase in demand for optical components from the private sector© 2017 HORIBA, Ltd. All rights reserved.

9

Exchange rate forecast for 2017
(Yen)

2016
First-Half
Results

2017
Results
Forecast asof May 12

1Q

2Q

First-Half
Results

SecondForecast
Half
Forecast

USD

111.70110113.60111.08112.34

110

107

EUR

124.52120

121.05122.27121.66

120

118

1 yen O.P. sensitivity for 2017 Forecast

USD
EUR© 2017 HORIBA, Ltd. All rights reserved.

162 million yen
28 million yen
10Forecast of 2017
(Billions of Yen)

2017

2016
: Record-highs

Results

Forecast
as of May 12

Revised
Forecast

vs. Forecast
as of May 12

Sales

170.0

183.0

187.0

+4.0

Operating profit

18.4

21.0

22.0

+1.0

O.P. %

10.9%

11.5%

11.8%

+0.3p

Ordinary profit

18.2

20.3

21.3

+1.0

Net Income attributable to
Owners of Parent

12.9

13.6

14.5

+0.9

Net profit
per share(Yen)

308

322

344

+2.1

10.0%

9.9%

10.5%

+0.5%

ROE
© 2017 HORIBA, Ltd. All rights reserved.

11

Forecast of 2017 by segment(Billions of Yen)

Sales
2016
Resuts:Record-highs

O.P.

2017

2017

vs.

Forecast asof May 12

Reviesd
Forecast

Forecast asof May 12

2016
Resuts

2017

2017

vs.

Forecast asof May 12

Reviesd
Forecast

Forecast asof May 12

Auto

62.2

69.0

71.0

+2.0

3.5

5.2

5.7

P&E

16.7

18.0

18.0 No change

1.5

1.1

1.1 No change

Medical

26.5

25.0

25.0 No change

2.8

2.2

1.7

-0.5

Semi

38.8

46.0

48.0

+2.0

9.6

12.0

13.0

+1.0

Scientific

25.7

25.0

25.0 No change

0.9

0.5

0.5 No change

18.4

21.0 22.0

Total

170.0 183.0 187.0© 2017 HORIBA, Ltd. All rights reserved.

+4.0

+0.5

+1.0
12

Contents
 2017 First-Half Results 2017 Full Year Forecast
 Business Segment Outline
 Shareholder Return Other Topics
 Financial Data Corporate Profile© 2017 HORIBA, Ltd. All rights reserved.

13

Auto

First-Half Results and Forecast for 2017
(Billions of Yen)

2017 First-Half Results2017 First-half results
Sales (prior year)*EMS = Emission Measurement Systems＋ EMS Sales increase due to tighter emission regulations

EMS

19.8 (18.3)＋ MCT Recovery in capital spending by automakers

MCT

6.3 (5.0)ITS

0.8 (0.7)ECT

3.6 (3.9)-

ECT Expense increase due to founding MIRA Japan team2017 Full-year Forecast

2017 Full-Year Forecast

Sales (prior year)＋ EMS Continuous high demand in response to new regulations＋ MCT Sales increase by steady delivery of orders received- ECT Good orders received, to impact earnings from next year
Sales and O.P. (Half-year)

33.7
21.2
0.8

38.7
28.1

26.6
2.2

4.9
2.9

Sales

O.P.

34.0 30.6
2.9

44.0 (40.1)

MCT

18.0 (13.2)ITS

2.0 (1.6)ECT

7.0 (7.1)

Sales and O.P. (Full-year)

Sales

40.3
3.5

2.1

0.5

14.1H 14.2H 15.1H 15.2H 16.1H 16.2H 17.1H 17.2H
Forecast© 2017 HORIBA, Ltd. All rights reserved.

EMS

43.2

49.5

4.4

4.2

2012

2013

55.0

65.4

5.8

5.2

2014

2015

62.2

3.5
2016

O.P.

69.0

71.0

5.2

5.7

2017

2017

Previous Revised
Forecast Forecast

14

Auto

Action for next-generation emission regulations(Billions of Yen)

EMS : Action for next-generation emission regulations※1

WLTP (unified emission regulations by the UN)
Start: Sep. 2017 in EU; Oct. 2018 in Japan[Sales/ Backlog]
Backlog

Forecast

Sales

39.8
37.4
33.3

40.1

44.0

*2

RDE Regulation (On-board emission regulation)
Start: Sep. 2017 in EU; 2022 in Japan*1 Worldwide harmonized Light vehicles Test Procedure*2 Real Driving Emission

As ofJun. end

17.9

20.2

26.9

29.4

34.6

2013

2014

2015

2016

2017

Establishment of Advanced Emissions Test Centre (AETC)
Start: July 5th, 2017
Test centre
Place: HORIBA MIRA Ltd. (UK)Function: Advanced Emission Test Lab.
- In-house real driving testing simulation- Simulation in various temperature
Objective: Business enhancement concerning RDE regulations© 2017 HORIBA, Ltd. All rights reserved.

Testing equipment

15

Auto

Contributing to R&D for EVs andautonomous driving vehicles(Billions of Yen)

MCT Business: Response to the trend to promote EVs
Improve sales and profitability in 2017
HORIBA’s business areas- Recovery in automakers’ capex
Provide solutions, from single systems (i.e., powertrain,- The Turn Key Business expansion** Business model to provide the solution combining EMS
and MCT

E-Motor) to comprehensive systems, incl. vehicle evaluation
E-Motor testing equipment

Electric vehicle testing[Sales/ Backlog]
Backlog

14.5

Sales

16.2

Forecast

19.7
13.2

18.0
As of
Jun. end

12.8

13.3

10.8

15.2

15.2

2013

2014

2015

2016

2017

Expand testing business areas, i.e., battery
control system in HORIBA MIRA

ECT Business: MIRA participates the autonomous vehicle project- Collaborate with a local company in designing atest course for autonomous vehicles in Hungary- Establish a firm position in autonomous vehicle R&D© 2017 HORIBA, Ltd. All rights reserved.

Signing ceremony

Autonomous vehicle
technology

16

P&E

First-Half Results and Forecast for 2017
(Billions of Yen)

2017 First-Half Results
Increase in demand for stack gas analyzers: replacement demand in Japan and
VOC-regulation related sales in China＋ Firm demand for water measurement systems in Japan but less-than-expected- sales growth＋2017 Full-Year Forecast＋ Stack gas analyzers

Capture domestic replacement demand＋ VOC regulations in China＋-

Anticipate further demand growthMore inquiries but slow sales in the process measurement equipment business in
N. America

Sales and O.P. (Half-year)

Sales

O.P.

Sales and O.P. (Full-year)

9.9
8.2 8.2 8.2 8.4 7.7 8.9 8.0

13.7

1.0 0.9 0.9 0.8 0.8 0.6
0.3 0.7

1.6

14.1H 14.2H 15.1H 15.2H 16.1H 16.2H 17.1H 17.2H

2012

Forecast© 2017 HORIBA, Ltd. All rights reserved.

Sales

O.P.

14.7 16.4 16.7 16.7 18.0 18.0
2.0
1.2
2013

2014

1.7

1.5

2015

2016

1.1

1.1

2017

2017

Previous
Forecast

Revised
Forecast 17

P&E

Enhancing global business

Invest in the process measurement equipment business : New Houston factory
Start: April 1st, 2017

Houston factory

Analyzer house*

Place: Huston in Texas (US)Function: Production of P&E equipment; Scientific &Medical-related sample tasting
Objective: Business growth through expansion of* Shelter with analyzers and sampling systems. Measurement
equipment for each process is systemized to provide total
production capacity
solutions.

Expand the water quality measurement businessAmmonia Nitrogen Monitor “HC-200NH”

HC-200NH- Launch in 2016 through collaborative
R&D with the Tokyo Bureau of Sewerage- Contributing to less electric consumption
in sewage treatment by continuous monitoring

Expand global business for big sewerage plants© 2017 HORIBA, Ltd. All rights reserved.

Concentration of resources in watermeasurement in HORIBA Advanced
Techno from Jan. 2017

- Speed up R&D and production
Accelerate product launch- Enhance marketing function
Approach semiconductor
makers for P&E products
18Medical First-Half Results and Forecast for 2017
(Billions of Yen)

2017 First-Half Results＋＋- Increase in expense in promoting hematology and CRP analyzers in Japan- Sales drop in EU/South America; impacts of French new products in and after 20182017 Full-Year Forecast＋

Intensified competition in hematology and CRP analyzers in Japan- Increase in expense for US FDA approval and sales promotion of new products
Sales and O.P. (Half-year)

Sales

O.P.

13.5 13.4 13.9 13.7 13.8

12.7 12.3 12.6
1.5 1.2
0.9 0.7 1.3 1.2
0.8 0.8

14.1H 14.2H 15.1H 15.2H 16.1H 16.2H 17.1H 17.2H© 2017 HORIBA, Ltd. All rights reserved.

Forecast

Sales and O.P. (Full-year)

22.4

Sales

O.P.

26.8 27.0 27.6 26.5 25.0 25.0

2.4

2.4

2012

2013

1.7
2014

2.5

2.8

2015

2016

2.2
2017

1.7
2017

Previous Revised
Forecast Forecast 19

Medical New product launch for business expansion
New product and “HELO Solution” in the mid- to high-end market
 Strengths“HELO Solution”- Total solutions including clinical(Launch in 2017)
data management system- Flexibility in layout
 Schedule
Rendering of installed
products in a customer’s- Global launch in the 2Q of 2017lab. in Brazil- Start installation in Brazil, UK and France

New product “Yumizen H550” for developing countries
 Strengths- Small hematology analyzer with autoloader- Stable, high-precision measurement in various
condition
 Sales and production network- Utilize HORIBA’s global network“Yumizen H500”- Local production of reagents near consuming areas (Launch in 2016)© 2017 HORIBA, Ltd. All rights reserved.

New “Yumizen H550”(Launch in 2017)20

Semi First-Half Results and Forecast for 2017
(Billions of Yen)

2017 First-Half Results

MFC-related topics in Semi. market＋ Record-high sales and OP- Transition of memory in data centers- Increase in capital spending in Asia
- High demand for etching for 3D-NAND＋ Record-high production volume in Massflow controller (MFC)-> Surge in semiconductor- Change in semi. technology(Miniaturization, 3D-NAND, Multi-layered)-> High demand for etching2017 Full-Year Forecast

HORIBA’s strengths＋ Robust capital spending by Semi. makers＋

Business portfolio to supply
accurate MFC sustainably- Continuous high-level production of MFC
Sales and O.P. (Half-year)

Sales

O.P.

24.7 23.2

19.1 16.2 17.8 20.9
6.7 6.2
5.1
5.1
4.2 4.4
3.7

13.1 15.7
2.6

14.1H 14.2H 15.1H 15.2H 16.1H 16.2H 17.1H 17.2H
Forecast© 2017 HORIBA, Ltd. All rights reserved.

Sales and O.P. (Full-year)

28.9 35.3
24.1
17.8
6.4 9.4
2.2 4.8
2012

2013

2014

2015

Sales

38.8

O.P.

46.0 48.0

13.0
9.6 12.0
2016

2017

2017

Previous Revised
Forecast Forecast21

Semi Further enhancing stable supply
Investment in production factory (Aso in Japan; South Korea)
 Expanding Aso factory of HORIBA STEC Co., Ltd.
Investment: App. 2.7bn yen / Completion: Dec. 2017 (Plan)
Objective: Expand production capacity of MFC (1.5 times in floor space) Established a new head office of HORIBA STEC KOREA, Ltd.

Expansion in Aso factory

Start: Apr. 1st, 2017 / Place: Yongin-si (Suburb of Seoul)
Objective: Increase production and engineers, enhance training capability

Trend of Semi. market
Invest controlled by
Semi. makers

Less fluctuating
silicon cycle

Become stable
marketHORIBA STEC KOREA’s
new office

Action for quality improvement
 Acquire ISO/IEC 17025* that is related to gas calibration- Kyoto Fukuchiyama Technology Center (HORIBA STEC Co., Ltd.)- Develop measurement system for calibration= Stable supply of higher-precision MFCs

*ISO/IEC 17025; Quality management
system and technology management
for testing and calibration

 R&D of next-generation materials, jointly with Semi. device makers© 2017 HORIBA, Ltd. All rights reserved.

Fukuchiyama Technology
Center (HORIBA STEC)
22

Scientific First-Half Results and Forecast for 2017
(Billions of Yen)

2017 First-Half Results＋ Sales increase of core components for optical products in US and EU- Sluggish sales for universities in Japan, US, and EU ⇔ ＋ Strong sales in China＋ Increase in R&D expenses for new product launch-2017 Full-Year Forecast＋ Firm sales of core components for optical products- Slow demand from universities in Japan, US, and EU

Diffraction grating- Core components
for optical products- Global top-leveltechnology＋ Develop new market by customized products to meet needs of each customer
Sales and O.P. (Half-year)

Sales

O.P.

11.6 13.9 13.1 13.6 12.3 13.3 11.5 13.4

0.0

1.1

0.6 0.5-0.4

14.1H 14.2H 15.1H 15.2H 16.1H 16.2H 17.1H 17.2H
Forecast© 2017 HORIBA, Ltd. All rights reserved.

Sales

O.P.

25.6 26.7 25.7 25.0 25.0
22.9
20.4

0.9

0.6
0.2

Sales and O.P. (Full-year)

0.9

0.9

2012

2013

1.2
2014

1.1

0.9

2015

2016

0.5

0.5

2017

2017

Previous Revised
Forecast Forecast

23

Scientific Supporting to cultivate HORIBA’s technologies“Diffracting grating,” core technology of the French subsidiary Increase in demand for customized grating forhigh-intensity laser
 Increase in demand for optical equipment
including grating increase for SPE* makers*Semiconductor Production Equipment

Customized grating

Optical equipment

HORIBA France S.A.S. (former HORIBA Jobin Yvon S.A.S.)
 Long-established manufacturer of optical instruments with
mass-production technology in grating- Founded in 1819 (200-year anniversary in 2019)
HORIBA France S.A.S.
- Jointed the HORIBA Group in 1997 (20th anniversary from integration) Europe Research Center (France)

Laser particle-size analyzers received the 9th Laser Society Industry Awards
 Award laser products and technologies that contribute todevelopment of the domestic industry- Equipment to irradiate particles with a laser to measure their size
- Utilize for R&D and quality improvement of particles in various
Laser diffraction
fields (i.e., electronic parts, battery, food, abrasives, medicines) particle size analyzer© 2017 HORIBA, Ltd. All rights reserved.

24

Contents
 2017 First-Half Results 2017 Full Year Forecast
 Business Segment Outline
 Shareholder Return Other Topics
 Financial Data Corporate Profile© 2017 HORIBA, Ltd. All rights reserved.

25

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

Dividends per share and Share buybacks
2015 Results 70 yen [Interim 28 yen, Year-end 42 yen] +Share Buyback (0.99bn yen)2016 Results 85 yen [Interim 30 yen, Year-end 55 yen]2017 Forecast 90 yen [Interim 40 yen, Year-end 50 yen] (No change from previous forecast)(Unit : Yen)

Per-share dividend (from 2008 to 2017 Forecast)
85

44

40
13

2008
© 2017 HORIBA, Ltd. All rights reserved.

2009

50

60

67

90

70
An average total return ratioof last 3 years : 28%

17

Renewed record-highs in dividend in 6 years (Forecast)
2010

2011

2012

2013

2014

2015

2016

2017
(Forecast)26

Contents
 2017 First-Half Results 2017 Full Year Forecast
 Business Segment Outline
 Shareholder Return Other Topics
 Financial Data Corporate Profile© 2017 HORIBA, Ltd. All rights reserved.

27

Action for workstyle innovation“Stained Glass Project” initiatives
STEP 12014- Start from promoting women’s
empowerment

STEP 22015- Start “workstyle innovation” workshop- Theme: “Change actions by individuals”

STEP 32016 -“KAERU” Meeting *KAERU” =Going home(from May 2017)- 111 persons (18 teams) join
- Themes: “Efficient operation”“Individual skill-up”- 70 ideas have been registered- “Stained Glass” connects management,
human resources and work front- Make use of the characteristics of each
worksite and organization

Recognized under the 2017 Certified Health and Productivity
Management Organization Recognition Program

Program to award companies engaged in health-conscious management(designed by the METI and operated by the Nippon Kenko Kaigi)
Evaluation
given to
HORIBA© 2017 HORIBA, Ltd. All rights reserved.

Top management’s declaration to promote mental/physical healthInnovative ideas by cross-sectoral projects and teams
28

HORIBA Stained Glass Project
When diverse human resources can shine, HORIBA can become even stronger＜Goals＞
Business

1. Increase the corporate competitiveness of HORIBA through diversity- Turn diversity beyond gender, generation, group, nationality,
form of employment, disability, etc. into power and promote innovation
by encouraging all members to be aware of and challenge mental barriers.

2. Create next-generation leaders and role models for diverse working styles
Human- Support the discovery and creation of best practices andresources
share them inside and outside HORIBA.
3. Increase added value and productivity per hour ofOrganizational organizations and individuals
strength- Increase added value of individuals by radically reforming theirworking styles to allow them to achieve a good work-life balance.

＜Project system＞- Project Owner : Executive Vice President- Advisor : HORIBA’s first female board member- Project Leader : A female manager who proposed the project- Members : A wide variety of human resources from groupcompanies© 2017 HORIBA, Ltd. All rights reserved.

29

Contents
 2017 First-Half Results 2017 Full Year Forecast
 Business Segment Outline
 Shareholder Return Other Topics
 Financial Data Corporate Profile© 2017 HORIBA, Ltd. All rights reserved.

30

Operating profit analysis ( vs. 2016 )(Millions of Yen)

2017
Jan.-Jun.

2016
Jan.-Jun.

7,778

IncreaseSalesamountIncrease
Cost of Exchange Exchange
goods
impact for impact for
sales
Gross profit Expenses+8,150-4,979

Sales impact /+3,170Decrease sales cost ratio

-128

+266

Exchange impact+139

R&D cost
increase

Other
expenses
increase-385-1,0009,701

Expenses impact-1,385

Increase of Operating profit +1,923© 2017 HORIBA, Ltd. All rights reserved.

31

Impact of fluctuation in foreign exchange
Exchange rate impact
for 2017 Forecast
1 yen impact of Sales and O.P.
(Yen appreciation)

Sales
USD -448 millions of yen
EUR -331 millions of yen
GBP -88 millions of yen
Operating Profit
USD -162 millions of yen
EUR -28 millions of yen
GBP-4 millions of yen© 2017 HORIBA, Ltd. All rights reserved.

Exchange rate impact(2017 First-Half Results)
Sales(Millions of Yen)

Operating Profit

Total USD EUR GBP Total USD

EUR

GBP

Auto

- 649

+ 24

- 129

- 552

+ 96

+3

+8

+ 86

P&E

- 24

+7

- 18

- 11

- 35

+0

-7

- 22

Medical

- 120

+ 14

- 113

- 22

-6

+0

+9

- 15

Semi

+ 61

+ 65

-5

- 101

+ 50

+ 54

-2

- 102

Scientific

- 74

+ 24

- 81

- 25

+ 34

+2

+0

+ 19

Total

- 806 + 134- 346- 711 + 139

+ 59

+9

- 35

32

Consolidated Cash Flows(Millions of yen)

2016
First-Half

2017
First-Half

Variation

Cash flows from operating activities

5,987

16,274 +10,287

Cash flows from investing activities-5,071-6,804-1,732

Cash flows from financing activities

59-7,104-7,16447,71954,174+6,454915

9,470+8,555

Cash and cash equivalents at end of year

Free cash flows© 2017 HORIBA, Ltd. All rights reserved.

33

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

2016

2017 Forecast

Results

Forecast asof May 12

Revised
Forecast

13.4

14.6

14.6

-

5.6

5.3

Intangibles

0.3

0.4

0.4

-

0.2

0.1

Capital Investment

13.7

15.0

15.0

-

5.8

5.5

6.8

7.2

7.2

-

3.2

3.6

12.9

14.0

14.0

-

6.3

6.6

7.6%

7.7%

7.4%

-0.3p

7.9%

7.5%

PP&E

Depreciation
R&D(To net sales)© 2017 HORIBA, Ltd. All rights reserved.

vs Forecast
as of May 12

2016
2017
First-Half First-Half34

Cash Balance(Billions of yen)(Consolidated basis, each end of the year)

Total Loan Balance

46.7

44.7

41.7

28.0
Cash※
51.1
Bonds 15.0

Cash※ Bonds 15.0
47.8

Cash※ Bonds 15.0
51.9

Cash※
54.1 Bonds 15.0

Long 16.8

Long 19.2

Long 19.0

Long 2.2
Short 10.8

Short 12.8

Short 12.4

2014
254%
60%

2015
242%
55%

2016
237%
55%

Short 7.6

Bondredemption
in 2020

Borrowedfrom JBIC*
15.1bn yen*Japan Bank forInternational
Cooperation2017 end of June
243% Current ratio
56% Capital ratio

・Loan repayment due to group financing
・Recent issuer rating : R&I [A-] (July 2017), JCR [A] (August 2017)© 2017 HORIBA, Ltd. All rights reserved.

Cash*…Cash and Cash Equivalents at End of Period

35

Contents
 2017 First-Half Results 2017 Full Year Forecast
 Business Segment Outline
 Shareholder Return Other Topics
 Financial Data Corporate Profile© 2017 HORIBA, Ltd. All rights reserved.

36

Corporate Profile






Head office
Kyoto, JapanFounded1945
Incorporated
1953
CEO
Atsushi Horiba
Fiscal year end December 31

Atsushi Horiba
President & CEO- Corporate motto -To have interest and pridein our work to enjoy our lives© 2017 HORIBA, Ltd. All rights reserved.

37

Business Segments
Automotive Test Systems

・Emission Measurement Systems
・Test Automation Systems
・Intelligent Transport Systems
・Engineering Consultancy & Testing(HORIBA MIRA, Ltd)

Process & Environmental

Medical

Semiconductor

Scientific© 2017 HORIBA, Ltd. All rights reserved.

・Environmental & Process Systems
・Environmental Radiation Monitor
・Environmental Regulation & Process Business
・In-Vitro Diagnostic (IVD) Systems
・Integration of HORIBA ABX’s
Technology & Marketing Know-how
・Mass Flow Controller
・In-situ Analysis
・Synergy among HORIBA HQ, HORIBA STEC,HORIBA Advanced Techno and HORIBA Jobin
Yvon’s Technologies
・Raman, Grating, and Fluorescence・Synergy of HORIBA and
HORIBA Jobin Yvon’s Technologies
38

Business Segments
Sales Breakdown by Segment
Automotive Test Systems

Sales: 170.0 B.JPY(1,460 MUSD)

Process & Environmental

15%
23%

Medical

Semiconductor

Scientific25.7(220) Automotive
62.2
Semicon
(534)
38.8
(333)
P&E
Medical
16.7
26.5
(143)
(228)

16%

36%

10%

( ) =Segment Sales in MUSD
Scientific© 2017 HORIBA, Ltd. All rights reserved.

% = Segment Sales Ratio(Sales of FY2016)39

Market Shares
Domestic

GlobalEmission Measurement Systems

80%

Stack Gas Analyzers

Automatic Blood Cell Counterplus CRP

100%

20%

(As of December 31, 2015)

Mass Flow Controllers

57%

Raman Spectrophotometers

30%

Gratings

35%※Market shares quoted are estimates by HORIBA.
© 2017 HORIBA, Ltd. All rights reserved.

40

HORIBA Worldwide
Sales of FY2016 : 170.0 BJPY
(1,460 MUSD)

Sales Ratio by Region
EU
23%

Japan
33%

Americas18%© 2017 HORIBA, Ltd. All rights reserved.

Asia
26%

The Number of Group Companies by region(As of December 31, 2016)
Americas
Europe
Asia
Total

9
23
17 (4 in Japan, including HORIBA, Ltd.)
49
41

Employees by Region
Americas
3%

Other Europe
2%

U.S.A

Total Number of Employees

7,149

10%
GermanyJapan

Total Asia : 3,761

8%

Japan
38%

53%

38%

UK

11%
France

13%

Other
Asia
14%
15%

Total Europe： 2,442

34%
Total Americas： 946

13%(As of December 31, 2016)© 2017 HORIBA, Ltd. All rights reserved.

42

© 2017 HORIBA, Ltd. All rights reserved.

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