HORIBA, Ltd.

Nomura Investment Forum 2016

December 1, 2016
Hotel Chinzanso Tokyo© 2016 HORIBA, Ltd. All rights reserved.

1

Contents
 Review of Nine Months of 2016

 2016 Full Year Forecast
 Business Segment Outline

 Shareholder Return 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© 2016 HORIBA, Ltd. All rights reserved.

2

Contents
 Review of Nine Months of 2016

 2016 Full Year Forecast
 Business Segment Outline

 Shareholder Return Financial Data Corporate Profile© 2016 HORIBA, Ltd. All rights reserved.

3

Review of Nine Months of 2016
 Earthquakes in Kumamoto
 Brexit (U.K.’s decision to leave EU)
External
 Exhaust gas and fuel economy testing
Eventsproblems
 Appreciation of the yen “HORIBA BIWAKO E-HARBOR,” a new R&D/production base, opened in May 2016.
Internal
 Full year results with the first inclusion of HORIBA
EventsMIRA performance since its acquisition
 Changed a revenue recognition policy in Jan. 2016:

Shipment base  Delivery/installation base.
© 2016 HORIBA, Ltd. All rights reserved.

4

Review of Nine Months of 2016
The 2016 Kumamoto Earthquake (occurred on April 14 and 16)
HORIBA STEC, Co., Ltd., Aso Factory-Location:

Nishihara-mura (village), Kumamoto Prefecture-Major products:

Mass flow controller in the Semiconductor segment-Damage:

No damage on people but some damage to the building(Recorded an extraordinary loss of 925mil yen in 2Q)-Measures taken:

Gradually resumed operation since the end of April.
Shifted a part of production into the Kyoto factory.
Recovered the pre-earthquake production volume by early May.

-Current state:

Renewed a record-high level of the production in June.

(Photos as of July 30)
Aso Factory© 2016 HORIBA, Ltd. All rights reserved.

Production Line
5

Contents
 Review of Nine Months of 2016

 2016 Full Year Forecast
 Business Segment Outline

 Shareholder Return Financial Data Corporate Profile© 2016 HORIBA, Ltd. All rights reserved.

6

Sales, OP (Jan.-Sept. Results and Full year forecast)(Billions of yen)

Sales

2015

2016

Jan.-Sept.

Jan.-Sept.

20152016 Full year

2016

2015
vs 20162015
vs 2016

Results Forecast

65.4 64.0-2.2%[Jan.-Sept. Result]Previous
forecast

vs revised

65.0

-1.0

- Yen appreciation
 Decreased sales and OP.

Auto40.7 39.4

-3.2%

P&E

11.9 11.8-0.8%

16.7 16.5

-1.2%

16.5

-

Medical20.7 19.7-4.8%

27.6 26.5

-4.2%

26.5

-

Semi

27.7 27.7+0.1％

35.3 37.0

+4.7％

35.0

+2.0

Scientific19.2 18.1-5.7%

26.7 26.0

-2.8%

27.0

-1.0

Total

120.3 116.9-2.9%

171.9 170.0

-1.1%

170.0

-

2015
vs 2016

Semiconductor- Volume increased but yen
Previous
vs revised
appreciatedforecast
4.0 -0.5  Sales same as last year
2016 Full year

2015

2016

Jan.-Sept.

Jan.-Sept.

Auto

2.4

0.0

-97.4%

5.2

3.5-32.7%

P&E

1.1

1.1

-3.5%

1.7

1.5

-14.6%

1.3+0.2

Medical

2.0

2.2

+9.6%

2.5

2.7

+5.5％

2.5

+0.2

Semi

7.6

7.1

-6.2%

9.4

9.0

-4.6%

8.7

Scientific

0.6

0.1

-84.0%

1.1

0.8-33.2%

1.0

13.8 10.6-23.2%

20.1 17.5-13.1%

17.5

OP

Total

2015
2015
vs 2016

2016

Results Forecast

Auto- Full-year result of HORIBA
MIRA- Yen appreciation- MCT slow sales
 Decreased sales and OP
E-HARBOR full operation
 Increased expenses[Full year forecast]- Total Sales/OP no change- Auto and Scientific+0.3  Downward revision- Semiconductor-0.2  Upward revision- P&E and Medical+0.0  Upward revision of OP※2015 results are restated numbers. The same shall apply hereinafter© 2016 HORIBA, Ltd. All rights reserved.

7

Sales, OP (Quarterly Results and Forecast)
2015

Sales
Auto
P&E
Medical
Semi
Scientific
Total

1Q

2Q

3Q

4Q

2016
Full year

65.4
4.2 3.9 3.6 4.8 16.7
7.2 6.6 6.8 6.8 27.6
10.3 8.7 8.6 7.6 35.3
6.9 6.1 6.1 7.5 26.7
43.0 38.0 39.2 51.5 171.9
14.1 12.5 14.0 24.7

OP

2Q

1Q

2Q

3Q

3Q

4Q
Forecast

14.9 13.1 11.2

24.5

4.1 3.6 4.0

4.6

6.9 6.8 5.9

6.7

8.6 9.2 9.8

9.2

6.5 5.8 5.7

7.8

41.2 38.7 36.9

53.0

2015

2016

4Q

Full year

Auto

2.2 0.7 -0.5 2.7

P&E

0.6 0.2 0.2 0.5

Medical

0.8 0.4 0.7 0.5

Semi

2.7 2.4 2.4 1.8

Scientific

0.5 0.0 0.0 0.5

Total

6.9 4.0 2.8 6.2

5.2
1.7
2.5
9.4
1.1
20.1

© 2016 HORIBA, Ltd. All rights reserved.

1Q

1Q

2Q

3Q

4Q
Forecast

1.1 -0.5 -0.4

3.4

0.6 0.2 0.2

0.3

0.8 0.7 0.6

0.4

2.3 2.1 2.6

1.8

0.2 0.0 -0.1

0.6

5.1 2.6 2.8

6.8

Full year
forecast(Billions of yen)
[4Q forecast]Auto
64.0 - Yen appreciated but
16.5 volume increase- OP increase
26.5 (500 m.yen of moving
for E-HARBOR
37.0 expensein 4Q of 2015)26.0
170.0 Semiconductor- Yen appreciated but
volume increase
Full year- Large volume offorecast
3.5 shipment in 3Q wascovered a temporary
1.5 drop in 2Q(earthquake impact)
2.7 - Expected continue large
9.0 volume of shipment in 4Q

0.8
17.5
8

Bookings trend(Billions of yen)

Bookings
2015
4Q

1Q

2016
2Q

Backlog
3Q

2016
2Q end2016
3Q end

Auto

16.2

12.3

14.7

18.6

42.1

49.5

P&E

4.1

3.4

4.1

3.6

4.5

4.2

Medical

7.1

7.6

6.4

5.6

3.9

3.5

Semi

6.9

9.5

9.6

10.4

4.4

5.0

Scientific

7.5

5.6

5.3

5.8

7.8

7.9

Total

42.0

38.6

40.3

44.2

63.0

70.3

3Q Bookings
3Q Backlog© 2016 HORIBA, Ltd. All rights reserved.

Semi hit Record-high, Auto was recovered
Increased even in a yen appreciation trend
9Full Year Forecast(Billions of yen)Jan.-Sept.
Results

Jan.-Dec.
Results

2016 Forecast
Previous
Fore. as ofAug. 3

Forecast

vsFore. as ofAug. 3

Sales

120.3 116.9 171.9 175.0 170.0 170.0

-

O.P.

13.8

10.6

20.1

17.5

17.5

17.5

-

Ordinary
profit

13.4

10.3

19.6

16.5

17.0

17.0

-

Net Income
attributable to
Owners of Parent

8.6

7.2

13.2

10.8

10.8

10.8

-

70

75

75

75

2015

Dividend
(Yen)

2016

2015

Fore. as of
May 11

No change in P&L and dividend from previous forecast.
© 2016 HORIBA, Ltd. All rights reserved.

10

2017 market environment
Expect steady R&D investment by automotive manufacturers

Autothanks to a tightening of emission regulations in EU/Japan and
RDE in EU.

P&E

U.S.: Expect firm investment demand from petrochemical companies.
China: Closely monitor in demand is likely due to the new
regulation from 2016.

MedicalJapan: Continuing favorable sales to doctors in private practice.
Overseas: Closely monitor of medical budget decrease trend.

Semi

Impact from miniaturization and multi patterning of semiconductor
production processes.
Closely monitor of transition trend to the next generation production
process.

ScientificJapan: Expect an increase in the private sector capital spending.
Overseas: Closely monitor government budgets and spendingin EU and the U.S.

© 2016 HORIBA, Ltd. All rights reserved.

11

Contents
 Review of Nine Months of 2016

 2016 Full Year Forecast
 Business Segment Outline

 Shareholder Return Financial Data Corporate Profile© 2016 HORIBA, Ltd. All rights reserved.

12

Auto

Nine Months Results and Forecast for 2016
(Billions of Yen)
2016 Nine Months
Sales (prior year)

2016 Nine Months Results
+

EMS
MCT
ECT

+

Steady R&D investment by auto manufacturers
Decrease in sales and profit in Japan and EU
Incremental sales due to acquisition of MIRA

EMS

25.1 (25.2)

MCT

7.4 (12.2)ITS

1.2 (1.2)ECT

5.5 (2.0)
2016 Full-year Forecast

2016 Full-Year Forecast

EMS
MCT
ECT

+
-

Sales(prior year)

Sales to grow toward year-end
Downward revision. Expect a rebound in 2017
Sales decrease in yen terms.
Sales and O.P. (Full-year)

38.6
2.8

43.2

49.5

4.4

4.2

2011

2012

2013

© 2016 HORIBA, Ltd. All rights reserved.

Sales

55.0

EMS

41.4 (39.8)

MCT

13.7 (19.7)

ITS

1.7(1.7)ECT

7.2 (4.2* half year)

O.P.

65.4

5.8

5.2

2014

2015

65.0

64.0

4.0

3.5

2016

2016

RevisedAs of Aug 3
Forecast

13

Auto

EMS (Emission Measurement Systems) Business

EMS Business
Solid sales in Japan (automakers, parts makers)
Steady investment in JapanWLTP*(unified emission regulations by the UN)
Start in Sep. 2017 in EU and in 2018 in JapanRDE (Real Driving Emission; on-road test) regulation
Start in Sep. 2017 in EU*WLTP: Worldwide-harmonized Light-vehicles Test Procedure

EMS Sales (Billions of Yen)
50.0
40.0

37.4
37.4

39.7
39.8

41.5
41.5

41.4
41.4

30.0
20.0
2014

2015

2016
2016
Revised
Forecast 今回見込
前回見込
Forecast

HORIBA BIWAKO E-HARBOR in full operation
Open:
Location:
Function:

May 2016
Shiga Prefecture- Development and production baseof gas measurement technologies- Automotive testing laboratory
E-LAB
Objectives: Improve profitability with production
Automotive testing laboratory
Automotive testing laboratory
efficiency; accelerate development© 2016 HORIBA, Ltd. All rights reserved.

14

Auto

Investment in Emerging Countries

Opening HORIBA India Technical Center (Pune) in Nov. 30, ‘16
HORIBA India Private, Ltd.
・Establish 2006
・Employee 281
HORIBA India
Technical Center (Pune)

・9th Automotive Test Laboratory in HORIBA Gr.
・Coordination with Biwako E-HARBOR-> Providing global R&D support
・Comprehensive facility including Productdemonstration, Testing, Workshop and so on.

HORIBA BIWAKO E-HARBOR「E-LAB Central Control Room」

Sales Target in 2020 (Auto, India) : 3.0bn yen (1.5times from 2015）© 2016 HORIBA, Ltd. All rights reserved.

15

Auto

46th Machinery Design Award’s Grand Prix

Portable Emission Measurement Systems(OBS-ONE Series)“Machinery Design Award”
 Prestigeous design award given to industrial
products
 Received the Minister of Economy, Trade andIndustry Award (Grand Prix)
for the first time
Portable Emission Measurement Systems© 2016 HORIBA, Ltd. All rights reserved.

16

Auto

MCT Business / ECT business

MCT Business (Mechatronics)

MCT Sales (Billions of Yen)

・Sep. 2017: WLTP/RDE regulations to start in EU

30.0

Auto manufactures investment in 2016 is sluggish

20.0・Strategic projects are increasing in China

16.2

14.0

13.7

2016
前回見込
Forecast

2016
今回見込
Revised
Forecast

10.0

Aim to receive orders for market share expansion
Profit is temporarily decreasing
From 2017

19.7

0.0
2014

Expand turn-key projects and pursue
synergies with the EMS business

ECT Business (Engineering/HORIBA MIRA)2015

ECT Sales (Billions of Yen)

・Sales decreased due to the strong yen/weak pound

10

・Brexit impacts to be closely monitored

Continue investment in HORIBA MIRA
 Some investment projects will be carefully
considered© 2016 HORIBA, Ltd. All rights reserved.

8.0

7.2

No change
in localcurrency

5
Local
Currency
Million
Pond

Local
Currency
Million
Pond

0
2016
Forecast

2016
Revised Forecast
17

P&E

Nine Months Results and Forecast for 2016
(Billions of Yen)

2016 Nine Months Results-

Weak sales of stack gas analyzers in Asia (mainly in China)-

Weak sales of water measurement systems in Japan

2016 Full-Year Forecast+ Expect firm investment by semiconductor manufacturer in Asia
- New regulation began in China in 2016

Sales may temporarily depress in the cautious market+ Water measurement systems to the government/private sectors
Sales and O.P. (Full-year)

14.5
2.5
2011
© 2016 HORIBA, Ltd. All rights reserved.

13.7

14.7

1.6

1.2

2012

2013

Sales

Aim for replacement demand

O.P.

16.4

16.7

16.5

16.5

2.0

1.7

1.3

1.5

2014

2015

2016

As of Aug 3
Forecast

2016

Revised18

P&E

Shift from product sales to system sales

Expand business opportunity by providing business solutions
Case of the process analytical measurement business in Texas, U.S.
Oil refining/
petrochemicalplant makers

Target:Oil refining and petrochemical plant companies

HORIBA: Sales of systems that combine gas or water
analyzers
Sales:

Approximately 1.5bn yen (results in 2015)

Plan:

Relocate and expand
the base in Texas
Blueprint of new Texas baseCompletion in 2017

Measurement device sales  Also promote solution proposals withproducts in other markets
Water Infrastructure© 2016 HORIBA, Ltd. All rights reserved.

Environment Policy

Electronics/Energy

19China (Shanghai) environment regulations and
HORIBA’s plans

P&E

Revised anti-pollution act: VOC regulations
Details:

Regulations on source of VOC (Volatile Organic Compounds)

Start:

2016

Shanghai city preceded other regions in adopting the regulations.
Gradually expand industries to cover by Jan. 2017
The market takes wait-and-see attitude to the regulations.
Hydrocarbon Analyzer

has prepared the product line-up
to fully respond to VOC
regulations in Shanghai© 2016 HORIBA, Ltd. All rights reserved.

Application
THC, NMHC, and CH4 inambient air
20Medical Nine Months Results and Forecast for 2016
(Billions of Yen)

2016 Nine Months Results-

Sales decrease in yen terms due to appreciation of yen+

Firm sales of Hematology and CRP analyzers in Japan

2016 Full year Forecast

Expect cost increase due to FDA approval expenses and new productpromotion expenses+ Firm sales of Hematology and CRP analyzers in Japan-

Sales and O.P. (Full-year)

23.4
3.1
2011
© 2016 HORIBA, Ltd. All rights reserved.

Sales

O.P.

26.8

27.0

27.6

26.5

26.5

2.4

2.4

1.7

2.5

2.5

2.7

2012

2013

2014

2015

22.4

2016

2016

RevisedAs of Aug 3
Forecast

21

Medical Accelerating product development
Accelerating developmentby sharing technology of HORIBA bases in Japan and France
HORIBA ABXin France

Technology
sharing

New brand “Yumizen” (medium-sized)
Launched in July 2015 (in EU)
Medium/large-sized hematology
analyzers
Target hospitals and diagnosis centers

HORIBA in Japan“Microsemi LC-767CRP” (small-sized)
Launched in March 2015 (in Japan)
The latest version of Blood cell + CRP
analyzers
Measure all items in 4 minutes.
Use of a small amount of blood makes
it optimal for diagnosis of children.

The first global
brand product“Yumizen”

Microsemi LC-767CRP© 2016 HORIBA, Ltd. All rights reserved.

22

Medical Expanding product line-up
Alliance with JEOL Ltd. to sell clinical chemistry devices in EU and U.S.
Outline: OEM sales of automatic biochemistry analyzers
Target: Hospitals and diagnosis centers in EU and U.S.
Release: In the EU market in 1Q of 2017
Objective: Increase products for the biochemical test
market, so as to expand business in EU and U.S.

Alliance with Tosoh Corporation to sell HbA1c measuring devices in Japan
Outline: Sales of diabetes diagnosis devices(measurement of HbA1c)
Target: Clinics specialized in diabetes in Japan
Release: June 2016
Objective: Provide total solutions to diagnose diabetes bycombining small-sized glucose analyzers andautomated blood cell counters© 2016 HORIBA, Ltd. All rights reserved.

23

Semi

Nine Months Results and Forecast for 2016
(Billions of Yen)

2016 Nine Months Results+

Sales decrease in yen terms due to the weaker U.S. dollar
Aso Factory’s damage from the Kumamoto earthquake in April 2016
Expansion in demand of investment from semiconductor manufacturers

2016 Full-Year Forecast

Sales decrease in yen terms due to the weaker U.S. dollar+ Expect continuous investment by semiconductor manufacturers in Asia
+ Record-high monthly production volume of mass flow controllers in June-

Sales and O.P. (Full-year)

24.6
4.9
2011

17.8

2.2
2012

24.1
4.8
2013

Sales

28.9

O.P.

35.3

35.0

37.0

9.4

8.7

9.0

6.4
2014

2015

2016

2016

RevisedAs of Aug 3© 2016 HORIBA, Ltd. All rights reserved.

Forecast

24

Semi

Aso Factory’s Investment for expansion/ Mass flow controller (MFC) market share

Investment in the Aso Factory
Outline: Expansion of HORIBA STEC’s Aso Factory
Amount: 2.2bn yen
Groundbreaking: December 2016
Purpose: Improve production capacity of MFC
The first company which made an investment agreementwith Kumamoto Prefecture after the earthquake

Signing ceremony with Nishihara-mura(at Kumamoto prefectural office on July 30)

Mass flow controller market trend and share
60%

HORIBA’s MFC
market share

50%

57%

40%
2010 2011 2012 2013 2014 2015 2016
(Jan.-May.)© 2016 HORIBA, Ltd. All rights reserved.

<Market trend>
Miniaturization, 3D-NAND, double-patterning
Brisk investment
Increase in demandfor etching devices<HORIBA>
Establish a supply system of MFC with embedded
cutting-edge “differential pressure sensors”
25

Scientific Nine Months Results and Forecast for 2016
(Billions of Yen)

2016 Nine Months Results-

Sales decrease in yen terms due to the appreciation of yen-

Weak sales to universities in U.S.
2016 Full-Year Forecast-

Sales decrease in yen terms due to the appreciation of yen+

Seek to explore new markets with customized products
Sales and O.P. (Full-year)

22.0

20.4

22.9

0.9

0.9

2012

2013

1.4
2011

Sales

O.P.

25.6

26.7

27.0

26.0

1.2

1.1

1.0

0.8

2014

2015

2016

2016

RevisedAs of Aug 3© 2016 HORIBA, Ltd. All rights reserved.

Forecast

26

Scientific HORIBA products play an active part in space
HORIBA Gratings Business・ Core parts of spectroscopy devices
・ Top market share in the world・ Developed by HORIBA Jobin Yvon
(France)

Gratings’
consolidated
sales
3.4bn yen(2015 results)

Loaded on several space probes, incl. Juno which orbited Jupiter・ Has developed gratings for spaceexperiment for nearly a half century
・ Contributed to several countries’ spacedevelopment projects
・ HORIBA’s grating product has been loaded onover 20 space probes up to now

HORIBA’s products were loaded on NASA’s Juno space probe.

© 2016 HORIBA, Ltd. All rights reserved.

27

Water Focus on the measurement of “Water”
Integrate water measuring resources to
HORIBA Advanced Techno Ltd. (Kyoto)Jan. 2017
The water business of HORIBA, Ltd. will
be succeeded toTarget a broader market

20bn yen

HORIBA Advanced Techno(by simplified absorption-type company split)

10bn yen Develop products closer to the market
 Improve customer satisfaction(Expect) 2016

2017

2018

2019

<Existing target markets><Future target markets>

P&E: Factory wastewater; water and sewerage

1) Reinforce the present strong areas

Semi: Process management in factory
Scientific: Private labs and universities© 2016 HORIBA, Ltd. All rights reserved.

20202) Target the entire water flow cycle:

Water supply ⇒ industrial processes⇒ wastewater ⇒ sewerage
28

Contents
 Review of Nine Months of 2016

 2016 Full Year Forecast
 Business Segment Outline

 Shareholder Return Financial Data Corporate Profile© 2016 HORIBA, Ltd. All rights reserved.

29

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 and Share buybacks- 2014 Results 67 yen per share- 2015 Results 70 yen per share + Share buybacks (0.99bn yen)
- 2016 Forecast 75 yen per share (No change from previous forecast)Per-share dividend (from 2005 to 2016 Forecast)

(Yen)

80
60
40
20
0

16
05'3

© 2016 HORIBA, Ltd. All rights reserved.

28

39

44

40

26
13

06'3

17

50

60

67

70

75
Recordhigh

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
(Forecast)30

Symbol of MLMAP2020

ONE STEP AHEAD - To create a next stage of HORIBA Step out of the existing business fields and pursue further expansion.
Take a new perspective and overcome technological/market/organization barriers.
Be flexible, think outside the box, and move up to the next stage.
© 2016 HORIBA, Ltd. All rights reserved.

31

Contents
 Review of Nine Months of 2016

 2016 Full Year Forecast
 Business Segment Outline

 Shareholder Return Financial Data Corporate Profile© 2016 HORIBA, Ltd. All rights reserved.

32

Operating profit analysis ( vs. 2015 )(Millions of Yen)

2016
Jan.-Sep.

2015
Jan.-Sep.

13,887
Increase
Increase
EX impact EX impact
Sales
Cost offor GP
for Exp.
amount goods sales

R&D cost
increase+2,494-1,037+5,970-5,243

Sales impact /+727
Decrease sales cost ratio-4,597

Exchange impact-2,101Other
expenses 10,659
increase-814

Expenses impact-1,851

Decrease of Operating profit -3,228※2015 results are restated numbers. The same shall apply hereinafter© 2016 HORIBA, Ltd. All rights reserved.

33

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

2014

2015

12months
Results

12months
Results

PP&E

9.1

14.9

8.5

6.8

15.3

15.3

Intangibles

1.8

1.4

0.2

0.5

0.7

0.7

Capital Investment

11.0

16.3

8.7

7.3

16.0

16.0

4.9

6.1

4.9

1.6

6.5

6.5

11.9

12.3

9.4

3.6

13.0

13.0

7.8%

7.2%

8.1% 6.7%

7.6%

7.6%

Depreciation
R&D(To net sales)

2016
Jan.-Sep.
Results

Oct.-Dec.
Forecast
Fore.
(12months)

Previous
Forecast(12months)

No change from previous forecast.
© 2016 HORIBA, Ltd. All rights reserved.

34

Impact of fluctuation in foreign exchange
Exchange rate impact(2016 Nine Months Results)(Millionsof Yen)Auto
P&E
Medical
Semi
Scientific
Total(Millionsof Yen)Auto
P&E
Medical
Semi
ScientificTotal© 2016 HORIBA, Ltd. All rights reserved.

Exchange rate for 2016 Forecast
USD/JPY:107 , EUR/JPY:120

Sales
Total
-3,401-643-1,899-2,013-1,472-9,430

USD
-723
-305
-566
-1,368-757-3,721(4Q : USD/JPY:102, EUR/JPY:115)

EUR
-928
-104
-886
-110
-551
-2,581GBP-1,479
-22
-62
-7
-100
-1,672

Operating Profit
Total
-42
-214
-237
-1,541-65-2,101

USD
-148
-68
-103
-1,198-38-1,557

EUR
-4
-52
90
-95
4
-58

GBP
99
-10
-10
70
-74
75

Exchange rate impact
for 2016 Forecast
1 yen impact of Sales and O.P.
(Yen appreciation)

Sales
USD -420 millions of yen
EUR -317 millions of yen
GBP -69 millions of yen
Operating Profit
USD -175 millions of yen
EUR -22 millions of yen
GBP-1 millions of yen
35

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

Total Loan Balance

24.1

28.0

Cash *
51.1

Cash *
49.2

Bonds15.0
Bonds15.0

44.7

44.8

Cash * Bonds15.0
47.8

Cash * Bonds
51.5 15.0

Long 16.8

Long
17.3

Long 2.2

Long 2.5
Short 6.6

2013
269％
60％

Short10.8

2014
254％
60％

Short 12.8

2015
242％
55％

Short 12.5

Bondredemption
in 2020

Borrowedfrom JBIC
15.1bn yen

2016 end of Sep.
243％ Current ratio
55％ Capital ratio

・Conclusion of liquidation of receivable contract with 2 banks.
・Recent issuer rating : R&I [A-] (July 2016), JCR [A] (September 2015)
Cash*…Cash and Cash Equivalents at End of Period© 2016 HORIBA, Ltd. All rights reserved.

36

Changed the accounting policy for revenue recognition
2014(Original)(New)

Not installed
Not arrived

2015

2016

Not installed
Not arrived

Installed
Delivered

Installed
Delivered

Changed points:

Original Shipment baseNew
The date of delivery or installation based on contractual
arrangements
Applied timing:
January 2016
Reason for change: Triggered by the introduction of a new ERP implementation, toharmonize with international accounting standards.
© 2016 HORIBA, Ltd. All rights reserved.

As of February 10, 2016, audit procedures for this change has not finished yet

37Contents
 Review of Nine Months of 2016

 2016 Full Year Forecast
 Business Segment Outline

 Shareholder Return Financial Data Corporate Profile© 2016 HORIBA, Ltd. All rights reserved.

38

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© 2016 HORIBA, Ltd. All rights reserved.

39

Business Segments
Automotive Test Systems
Emission Measurement Systems (EMS)
Mechatronics Devices (MCT)
Driving Control Systems (ITS)Engineering Consultancy & Testing (ECT)

Process & Environmental
Environmental Systems
Environmental Radiation Monitor
Environmental Regulation & Process Business

Medical
In-Vitro Diagnostic (IVD) Systems
Integration of HORIBA ABX’s
Technology & Marketing Know-How

Semiconductor
Mass Flow Controller
In-situ Analysis
Synergy among HORIBA HQ, HORIBA STEC
and HORIBA Jobin Yvon’s Technologies

Scientific
Synergy of HORIBA and
HORIBA Jobin Yvon’s Technologies
Raman, Grating, and Fluorescence© 2016 HORIBA, Ltd. All rights reserved.

40

Well Balanced Business Operation -Five Business SegmentsBusiness & Geographic Composition of Sales(2015)

Sales 170.8 Billions of Yen
P&E
Scientific27.016.4

Euro(16%)(11%)

Scientific
25.6
Semiconductor

Automotive

35.3

(37%)

(17%)

64.2

Semi

Medical(19%)

Medical
P&E

(16%)

(10%)

27.4

Japan
31%

Asia
26%

27.0
16.7
(17%)

(Billions of Yen)
© 2016 HORIBA, Ltd. All rights reserved.

EU
24%
America
19%

(21%)

28.9

JPY

USD
Reduce Country Risk and Exchange Risk
41

Global Market Share
Emission Measurement Systems

80%

Stack Gas Analyzers

20%

Automatic Blood Cell Counterplus CRP

100%(Only in Japan)

Mass Flow Controllers

55%

Raman Spectrophotometers

30%

Gratings

35%※Market shares quoted are estimates by HORIBA.
© 2016 HORIBA, Ltd. All rights reserved.

42

HORIBA Worldwide
Sales of FY2015: 170.8 BJPYThe Number of Group Companies by region(As of December 31, 2015)

America
EuropeAsia
Total© 2016 HORIBA, Ltd. All rights reserved.

923
17 (4 in Japan, including HORIBA, Ltd.)
49
43

Employees by Region
Other Americas
3%

2015年12月31日現在

Other Europe
2%

6,831

USA
11%
Germany
8%

Japan
38%

UK
10%

Total Asia: 3,545

52%
Total Europe: 2,356

34%France14%© 2016 HORIBA, Ltd. All rights reserved.

従業員数
Total Numberof Employees

Other Asia
14%

Total Americas: 930

14%44© 2016 HORIBA, Ltd. All rights reserved.

4545