2023-2024

ReportYear ended December 31, 2023

Our Future
Vision

We want to build a guide like our own North Star which will lead

Joy and Fun for All

the way home no matter where we are.
We have established the long-term vision “Our Future”(Vision, Mission, Values) in consultation with HORIBARIANs*1 worldwide,
as a guideline for all HORIBARIANs in advancing towards
our 100th Anniversary, 30 years from now.

3 Fields which HORIBA focuses toward realizing Our Future

Energy&Environment

Bio&
Healthcare

Materials&
Semiconductor

It defines how we want to HORIBA to be, how we should grow as
HORIBARIANs, and what contributions we can make to society.

MissionTo Shape our Future Based on
HONMAMON*2 and Diversity

ValuesSpirit of
Challenge

Reliability andTrust

Pursuit of
Excellence

Corporate Motto

Joy and Fun*1 HORIBARIANs: All HORIBA workers are regarded as family and called HORBARIAN as a nickname.






 
1945 - HORIBARADIO LABORATORY
established
1*2 HONMAMON: Derived from the Japanese word “Honmono” (authentic), means the eternal pursuit ofcreating something from the heart that is one-of-a-kind.

  

1978 - Created corporate motto:“Joy and Fun”






HORIBA Report 2023-2024

2

CEO MESSAGE

CEO MESSAGE

Discover “HONMAMON”
and leverage HORIBA’s diversity
and uniqueness to advanceto the next stage
Five years that have challenged
HORIBA’s underlying strength
We are proud for the result that we could hit all

to hydrogen energy, which was booming in

new records in sales, operating income,

Europe, and expanded the capability of ourordinary income, and net income attributable toGerman Group company HORIBA FuelCon in

HORIBA Ltd.ʼs shareholders in 2023, which was

2022. The business is still at the developing

the final fiscal year of our previous Mid-Longstage, but I feel it is a very important andTerm Management Plan, MLMAP2023. In

forward-looking investment.

December 2023, our share price exceeded

Even amidst worldwide difficulties in

10,000 yen, and in January of the following year

procurement, we were able to achieve continue

we broke through to a market capitalization ofenhancing production thanks to the

500 billion yen. This is the result of finding

contributions of our global production and“HONMAMON” solutions that meet our

procurement team and their excellent network.

customer needs, something that only HORIBAThis made it clear that competitiveness rests on

can make possible. And I want to thank our

supply capabilities. Our investment in a newowners (shareholders) for their understanding

manufacturing factory in Fukuchiyama City,and support.

Kyoto Prefecture Japan, which is planned toDuring the pandemic, not only demand fell due

open in 2026, is the largest factory investment

to a freeze on customer investment, but thein HORIBAʼs history. The plant will enable us tomovement towards decarbonization alsoestablish a long-term, stable supply capability.

accelerated gathered speed. Although we were

By combining HORIBAʼs technical ability to

impacted by large changes in the businesscreate new products with strong supply

environment, we emphasized making various

capabilities, we will demonstrate andecisions at the front line, even as we faced

overwhelming competitive advantage.

Chairman & Group CEO

restrictions on movement. Against thisbackdrop, we quickly seized on trends related

3

HORIBA Report 2023-2024

4

CEO MESSAGE

CEO MESSAGE

Now is the time to seize opportunities
In February 2024, we formulated a new Mid-Longof research in many areas and have helped toTerm Management Plan, MLMAP2028 with 2028

spark innovations in various fields. Meanwhile, ouras the target year. It contains is an ambitious planmass flow controllers, which boast a significant

to achieve 450 billion yen in sales, 80 billion yen in

share of the semiconductor market and were aoperating income, and 12% ROE or more. While

key player in our achieving MLMAP2023, have

the COVID-19 pandemic may be subsiding,contributed to semiconductor manufacturing

geopolitical risks are at an all-time high, andprocesses, and created large volumes ofsociety is turning towards sustainability. Even

business. In addition to helping create newunder such circumstances, we see the businesshigh-end technologies, HORIBA's new challenge

environment as an opportunity, andis to contribute to improving peopleʼs lives.

HORIBARIANs are highly motivated. We believe

I am convinced that the steady investments wethat now is the time to go for the win. To seize

have made up until now will bear fruit, and that

this opportunity, our entire Group will take on the

HORIBA holds great potential to create newchallenge of reaching the next big stage of 500

businesses one after another.

billion yen in sales through MLMAP2028.

And in MLMAP2028, a major premise for

One of our guiding principles for achieving

achieving our business goals is the creation of a

MLMAP2028 is a business strategy that aims tostage on which HORIBARIANs―the diverse

solve social issues in our three primary fields ofhuman assets* who implement ourEnergy & Environment, Bio & Healthcare andstrategies―can demonstrate their originality,

Materials & Semiconductor.

strengths, and abilities more than ever on a global

In 2004, we declared that the “HORIBA Group isscale. We will create a new stage for the activities

One Company.” and sought to demonstrate ourof HORIBARIANs around the world by putting

comprehensive capabilities by uniting our global

together their wisdom, pursuing “HONMAMON”

businesses. We also announced our “segment

at the front line, and sharing our thoughts.

operation” at the same time, and proposed

Moreover, we will device sustainability strategies

various solutions based on our technologies forand pursue unique activities that create social

target industries. It was very well suited to theimpact. Since HORIBA was founded, we havechanges in society and industry at the time andmade numerous contributions to sustainability

allowed HORIBA to grow significantly through ourthrough our products and services. We feel that it

five businesses. During the period of

is important to declare our commitment anew and

MLMAP2023, we consciously soughtshare its significance in MLMAP2028. We aim to“cross-segment operation business” thatmake an impact on society through varioustranscended the boundaries between businessbusinesses and activities, such as providing

segments and created synergies that spanned

services that help customers use energy morebusiness sectors. Going forward we plan toefficiently by utilizing the solutions that HORIBA

accelerate these efforts.

offers, while at the same time growing HORIBA.

The businesses and products that HORIBA has
developed thus far have been at the cutting-edge*human assets: HORIBA considers employees to be valuable assets andrefers to them as “human assets.”

For HORIBA to continue to be needed by society
In 2023, HORIBA celebrated its 70th anniversary.

technologies fit the concept of “HONMAMON”.

On January 26, the anniversary of our

And I hope that HORIBARIANs will hone their eyeestablishment, HORIBA layed down “Our Future”

for judgment.

with a view including our Vision, Mission, andAs long as HORIBA is HORIBA, our culture of Joy

Values towards our 100th Anniversary, 30 years

and Fun and pursuing “HONMAMON” will remainfrom now. In these uncertain times, it isunchanged, and the HORIBA spirit will endure.

impossible to foresee the future, let alone 30

As we passed the milestone of our 70th

years from now. The key is to have the desire toanniversary, we took another new step forward.

create our own future.

The goals we have set for ourselves are extremely

We are proud of the fact that members from ourhigh. However, we will reach these goals byoverseas Group companies also collaborated infollowing the MLMAP2028 slogan to “MAXIMIZE

the project with many discussion for formulating

VALUE”, and fully realizing all the value of the“Our Future”, and that it is the strength of

HORIBA Group.

HORIBARIANs which has allowed us to reach thisWhen we get to the final fiscal year ofpoint. I emphasized for passionate HORIBARIANs

MLMAP2028, I cannot wait to find out.

and the next generation of leaders the importance

I hope that all our stakeholders will eagerlyof the connections with the past.

anticipate it as well.

My consideration is not to replace the history andWe look forward to your continuous

assets of our past, but to connect them to newunderstanding and support in 2024.

ways of thinking and the demands of the times.
Needless to say, the fundamental idea behind“Our Future” “Joy and Fun”. And our new visionof “Joy and Fun for All” makes its connection tosociety even clearer.
Its assessment criterion is “HONMAMON”. It isvital to determine whether, not just products, but

5April 2024

Atsushi Horiba

Chairman & Group CEO

HORIBA Report 2023-2024

6

2023-2024

ReportCover Theme

Year ended December 31, 2023

The theme for the cover of the HORIBA Report 2023-2024 is the "North Star".
We want to create a guide like our own North Star which will lead the way home
no matter where we are.
It was with such sentiments in mind that we formulated "Our Future"(Vision, Mission, Values).

CONTENTS
1Our Future

3

CEO MESSAGE

17

We believe taking interest and pride in the workthat occupies so much of our lives,and in the workplaces

will increase our satisfaction in life
and allow us to enjoy our lives even more.

50 List of Management Members

21

Business strategy: Energy & Environment

53 Business Overview

25

Business strategy: Bio & Healthcare

Editorial Policy

9

HORIBA Value Creation Cycle

29

Business strategy: Materials & Semiconductor

11

HORIBA’s “HONMAMON” solutions

33

13

Strengthening our global
management foundation

President’s Message

35

Group HR Strategy andSustainability Strategy

Editorial Policy
We create the HORIBA Report to gain the interest of
institutional investors who take a long-term perspective, and toallow them to attain a better understanding of HORIBA.
We also believe that HORIBAʼs stakeholders can obtain benefits
stemming from our growth, and that they take the same
long-term perspective as institutional investors.
This integrated report is meant to help investors and various
other stakeholders better understand HORIBA.
Regarding our use of the term “human assets”
HORIBA considers employees to be valuable assets and refers
to them as “human assets” in principle.
Regarding our use of the term “owners” (shareholders)
HORIBA fully recognizes the importance of its shareholders andfrequently refers to them as “owners.”
Regarding our use of HORIBA and HORIBA, Ltd.
In this HORIBA Report, the HORIBA Group of companies is
described as HORIBA and the parent company as HORIBA,
Ltd.
Market share in the HORIBA ReportMarket shares stated in this report are HORIBAʼs estimates asof fiscal 2023.

7

Leader's Message

Financial Strategy

Change in revenue recognition standard
HORIBA, Ltd. and its domestic consolidated subsidiaries had
formerly recognized revenue mainly on a shipping-date basis.
However, starting from fiscal 2016, HORIBA, Ltd. and its
domestic consolidated subsidiaries changed their revenue
recognition method to recognize revenue on acompletion-date-of-installation or delivery-date basis under theterms and conditions of the relevant contracts. The amounts inor before fiscal 2015 are not retrospectively revised.
Disclaimer regarding future plans and forecasts
This HORIBA Report contains certain statements describing
future plans, strategies, and performance forecasts of HORIBA,
Ltd. and its affiliated companies. These statements reflect
forecasts estimated on managementʼs assumptions and beliefs
based on the information available as of April 30, 2024. Actual
performance may differ due to unforeseen circumstances in theoperating environment and other factors.
Regarding the importance and comprehensiveness of
information in the HORIBA Report 2023-2024
We have selected financial and non-financial information that
we believe to be of high importance for inclusion in the HORIBA
Report 2023-2024.

53 HORIBA's Five measurement businesses
55 Automotive Segment

56 Process & Environmental Segment/
Medical-Diagnostic Segment
57 Semiconductor Segment/
Scientific Segment

58 Corporate Data
59 Financial Data

For more detailed information, please see our website.
The PDF version of the HORIBA Report 2023-2024 is alsoavailable through our website.
Widevariety

WebsiteRange of Target Readers

where many of us spend a large part of each day,

19

7

41
The corporate motto of HORIBA is Joy and Fun.

45 Corporate Governance

Mid-Long Term Management Plan, MLMAP2028

HORIBA Report2023-2024

Limited
Summary

Contents

Details and data

HORIBA Report

IR information

CSR information

Web Link

Web Link

HORIBA Report 2023-2024

8

HORIBA Value Creation Cycle

HORIBA Value Creation Cycle

Creating value through the synergy
between human assets and technology
HORIBA provides solutions through analysis and measurement technologies, which support resolution of social issues.
Diverse human assets and technologies support our business.
HORIBA will be a partner with customers to contribute to building a better society and generating greater social value.

Joy and Fun for All

STRATEGY

2

STRATEGY

Group HR strategy to maximize
HORIBARIANsʼ potential

MLMAP2028
Mid - Long Term Management Plan

Every HORIBARIAN demonstrates
their abilities with “Joy and Fun”.

STRATEGYHORIBA’s

Human
Assets1

3

A sustainability
strategy forcreating social
impactContribute toachievea sustainable
societyBusiness strategy to solve social issues
in three forcus fields (Field Operation)

Core
Technologies

HORIBA's
Customers(HORIBARIANs)

Energy&Environment

Bio&
Healthcare

Materials&
Semiconductor

HORIBA Value Creation Cycle

9

HORIBA Report 2023-2024

10

HORIBA’s HONMAMON solutions

HORIBA’s “HONMAMON” solutions
created by the organic combination of various customer needs and our technologies
HORIBAʼs measurement technology began with electrochemical pH meters. Since then, we have expanded theanalysis targets to include liquids, gases, and solids, while accumulating various analysis and measurement
technologies using infrared rays, X-rays, and the like. We are also developing control technologies in addition to
our analysis and measurement technologies. We utilize solutions created of our core technologies, as well as
advanced sample handling and data science technologies that flexibly meet customer demands, to ascertain thechanging needs of the market. HORIBA contributes to solve social issues by creating unique solutions through theorganic combination of core technologies that we have cultivated around the world to meet customer needs in ourThree Fields of focus.

Infraredmeasurement

Samplehandling

Elemental
analyzers

Analysis of components
in gases in real time

HORIBA's Three Fields
Energy & Environment
Focus field• Exhaust gas certification processes• Next-generation vehicle development• Fuel cell evaluation

Emissionmeasurement
systems

Technology for handlingsamples subject to analysis
and measurement• Electrolyzer evaluation• Water quality monitoring• Air quality monitoring

Stack gasanalyzers• Process measurement• Process monitoring

Fluid control

Constant volume
samplers

Instant and accurate
measurement andcontrol of fluid flow rates
Mass flow
controllers

Bio & Healthcare
Air pollution
analyzers

Particlemeasurement

Measurement ofparticles (diameter,
number, weight,
and components)

Focus field• Hematology testing

HORIBA’s

Core
Technologies• Blood glucose testing
Nano particle
characterization
analyzers

Automatichematology
analyzers• Immunoassay• Clinical chemistry testing• Hemostasis testing• Pharmaceutical development,
manufacturing, and quality control

Spectroscopic
analysis

Spectroscopic
ellipsometers

Materials analysis, using
several wavelength such as
ultraviolet light, visible light,
and near-infrared light

Liquidanalysis

Chemicalconcentration
monitors

Raman
spectrometers

Focus field• Semiconductor manufacturing
process control and monitoring• Facility management and control

Water quality
analysisand examination
systems

Bloodglucose analyzers

Datascience
Digitalization technology
for analyzing the results of analysis
and measurement

11• Cosmetics and skin care product development,
manufacturing, and quality control

Materials & Semiconductor
Fluorescenceand absorbance
spectrometers

Measurement of liquidcomponents andparameters of liquids, suchas pH, sodium, acids,
alkalis, and glucose• Food and beverage development,
manufacturing, and quality control• Advanced materials researchand development• Advanced recycling of materials• Semiconductor-related materials research,development, and quality control

HORIBA Report 2023-2024

12

President’s Message

President’s Message
Looking Back Over Our Mid-Long Term Management Plan,
Priority
Measure1

Priority
MeasureMid-Long Term Management Plan

2

Priority
MeasurePresident & COO

3

Masayuki Adachi

Market Oriented BusinessTo developing analysis and measurement solutions, utilizing HORIBA’s
core technologies, in the three leading business fields of megatrend
Three fields • Energy & Environment • Bio & Healthcare • Materials & Semiconductor

Solution Provider BeyondLife Cycle Management

To support customer’s business from all aspects,
from installation to replacement

HORIBA Core Values“The Next Stage of the Super Dream Team”
To enhance the organizational structure that fosters resilient humanassets, which are the driving force of all business operations

MLMAP2023 Targets and Actual Results for FY2023
MLMAP2023 Targets

HORIBA's diverse possibilities will allow us
to further expand our business area to provide
the optimal solutions for each customer.
Cross-segment operation developed into Three Fields
FY2023 was the final year of our previous Mid-Long Term
Management Plan, MLMAP2023. Our profits greatly
exceeded our goals, although our sales targets were notachieved. Operating income and net income targets wereachieved a year ahead of schedule.
HORIBAʼs strategy of contributing to solve social issues with
our technology resonated with HORIBARIANs mind set, andserved to accelerate initiatives across business segments.
We recognize that, alongside the major social changes thathave taken place in these years, the internal changes in
HORIBA itself brought about the results of MLMAP2023.
The concept that the “HORIBA Group is One Company.”
permeates the entire group, and we are entering a newphase of acceleration from here out, but I believe that this isactually a return to our roots of business.
When I joined HORIBA, Ltd. in 1985, it was a much smaller
company than it is today. The size of operation was so smallthat there was no segmentation of our business organization
at the time. Accordingly, both engineers and sales
representatives were eager to explore new opportunities
without any internal boundaries.
They thoroughly embraced opportunities to create

13

something of new values, which they tackled withexpectation and passion, avoiding being bound by thestatus quo.
It was truly a job full of “Joy and Fun”, and the flexibility we
had at the time was a great strength.
In 2004, we began to operate under One Company Matrix
management comprising five business segments and aregional matrix, and the company grew significantly.
This was certainly the right decision.
However, 5 business segment operation also had theunexpected side effect of creating invisible walls inside thecompany.
In this context, I shared my belief that combinations of
HORIBA technologies which transcend segments could
create new value that had never existed before. So, when I
was appointed as a president, I began to work on
encouraging cross-segment collaboration.
HORIBA possesses yet more unknown possibilities allaround the world that will serve for future society.
We are at the stage of returning to our roots, making
possibilities into reality, and giving birth to “HONMAMON”.

Actual Results for FY2023

300.0 billion yen 290.5 billion yen
Operating income 40.0 billion yen
47.2 billion yen
Net income
30.0 billion yen 40.3 billion yen
EPS (Earnings Per Share) 711 yen
953 yen
ROE
10% or more
15.4%
Net sales

Net sales (billion yen)
Operating income (billion yen)

200.2

224.3
187.0

270.1

290.5
47.2

45.8

32.0

20.9

19.6

2019

2020

2021

2022

2023

Things inherited from MLMAP2023, and things to change
We will aim for even greater heights under our new
Mid-Long Term Management Plan, MLMAP2028
I have come to realize that, to achieve this, it is crucial that
we must change our operational system from Five Segments
to Three Fields in order to go back to our roots to refine ourwork processes.
Whether this is the best choice or not for HORIBAʼsbusiness operations will be seen in the future. But the one
thing I am certain about is that it would be a mistake not tochange anything.
Although our organizational structure will change, ourcommitment to providing high added value to our customers
will remain unchanged.
HORIBA is not in the business of manufacturing commodity
products, but of providing each customer with the optimal

solution. We have striven to improve our products bycombining HORIBA technologies to meet customer
demands. Such activities have provided new value that canmake 1 + 1 brings 3 or even 4.
HORIBA has broadened our range of solutions by creating
customized applications for each customer, and this has
ended up making us very competitive.
We have taken on some challenges that did not bear fruit,
but I have no doubt that the stance of not fearing making
mistakes has led to the growth of our automotive andsemiconductor businesses.
HORIBARIANs understand that if we continue to provide thebest solutions, then profits will follow.
From now on, we will provide optimal high added value
solutions to the three focus fields.

HORIBA Report 2023-2024

14

President’s Message

President’s Message

downstream, and are striving to further enhance HORIBAʼsbrand in the semiconductor industry.
Moreover, in the life science area where we continue to takeon challenges in the field of Bio & Healthcare, HORIBA
possesses an abundance of technologies that lie as uncut
gemstones waiting to be polished.
We believe that it will become our third pillar of business, in

combination with our Medical business in In Vitro
Diagnostics field.
We will view the whole path people take in healthcare, as
healthcare journey, refine HORIBAʼs technology in themarket this creates, and provide solutions that contribute topeopleʼs health.

Global management that translates
the power of each individual into group momentum
HORIBAʼs contribution to solving social issues
For more than half a century, HORIBA has continued toprovide technologies that allow engines to operate in highefficiency (low CO2) and low emission.
The fact that we contributed to make efficient,
low-emissions vehicles is the same whether they are internal
combustion engine vehicles or EVs.
In other words, you could say that the reduction of global
CO2 emissions has also been beneficial to HORIBA for longtime.
“Scope 4” has recently been attracting attention in the world
sustainability, and this is exactly what we deal with.
This kind of social contribution is contained in MLMAP2028
as one of the strategies. We will not just respond to
demands from society reactively, but contribute to bringabout a sustainable society strategically through HORIBAʼsunique solutions.
Against this backdrop, we have begun to see changes in theinquiries we get from customers and suppliers.
This is exemplified in our hydrogen-related business.
Establishing our Three Fields of business, and changing theEnergy & Environment
Automotive
Environmental

name of the business to the more market-conscious Energy& Environment, has made it easier to understand theconcept of HORIBA initiatives across to people outside of
the company.
Today hydrogen is gaining attention for its role as an energy
medium, which stands in clear contrast to initialexpectations that it would be used only in fuel cells.
By defining our business domain as Energy & Environment
field, there is already an awareness within the company thathydrogen cannot be constrained to the Automotive Segment,
but is the new business opportunities that generates profit.
If the first pillar of our business is Materials & Semiconductor,
which has shown remarkable growth in recent years, thenour hydrogen-related business within Energy & Environment
could become the second pillar. We look forward tocontinuing to take on further challenges from here on out.
In the Materials & Semiconductor field as well, we believethat the semiconductor market will expand over the longterm future. So, we view the semiconductor industry as a
total value chain, capture demands from both upstream and

Bio & Healthcare

Materials & Semiconductor

Medical

Semiconductor

Process
Scientific
15

HORIBA is a company that grows by focusing on front line
realities rather than a top-down organization.
Individual HORIBARIANs come up with ideas, discuss them
together, and come to agreement on the way forward. Thistranslates into a powerful motive force.
It can take time to get moving, but the momentum built
contains a great deal of inertia.
When we first came up with the concept of cross-segment
business, HORIBARIANs were all groping about to figure out
what it meant. But through challenging HORIBARIANs tocontinue thinking about what course of action suites
HORIBA in the midst of social changes, an idea emerged
from people on the front lines to change our organization
into one centered around Three Fields of endeavor.
MLMAP2028 sets challenging numerical targets for us toreach.
I believe that, for the company to grow, it is essential foreach employee to develop the ability to think for themselves
and take action towards reaching big goals.
HORIBARIANs are full of passion and energy, and I expect
them to exhibit these qualities.
Modern society is in the process of reforming work
practices, and attitudes towards work are becoming morediverse. But through this process, we must not lose ourpassion and energy.
I want HORIBARIANs to engage in spirited discussion thatgets to the root of issues, and build a global team-spirit inwhich it is possible to say things that are difficult to say.
This is because, as HORIBA has continued to expand
globally, this spirit is what has allowed us to continue togrow with a sense of unity.
Our global management meeting, which brings together thesenior management of each of our overseas affiliates, takes
place in a matrix of regional and business axes. Even when
the considerations of each region face a complicatedsituation intricately entwined, we also discuss proactively tomake the optimal decisions for HORIBA as one company.
Before participating in the Global Management Meeting,each group company, each function, and each business field
make intensive discussion, and bring their own conclusions
to adjust for entire group optimization.
Therefore, the conclusions at this global meeting are
extremely important, and senior management is well awarethat it is a major motive force in implementing our strategies.
MLMAP2028 lays out many businesses that transcend
individual fields, countries, and regions. This will make global
management even more challenging than it has been todate. But HORIBARIANs will bring passion and energy tothis challenge, apply their strengths in their respective
positions, and we accelerate HORIBAʼs unique global
operations over the course of the next five years.
April 2024

Global Meeting held in December 2023.
HORIBAʼs next generation of leaders gathered with global senior management to take part in discussions about MLMAP2028.

HORIBA Report 2023-2024

16

MAXIMIZE VALUE
Mid-Long Term Management PlanNONFINANCIAL
GOALS• Practicing Values by all HORIBARIANs• Creating value of “HONMAMON”
Group HR Strategy

Maximize HORIBARIANs’

VisionCustomerneeds

Joy and Fun for All

HORIBA's
Three Fields

Innovation
Bio&
Healthcare
NONFINANCIAL
GOALS

potential

Energy&EnvironmentCoretechnologies

Create social
impactMaterials&
Semiconductor

Sustainability strategy• Foster core technology
development• 60 billion yen in net sales fromnew businesses (2028)

NONFINANCIAL
GOALS

P.33

STRATEGY

1

A business strategy to solve
social issues in three focus fields(Field operations)

STRATEGY
P.21

2

STRATEGY

3• Carbon neutrality in 2050
• 42% reduction in CO2 emissions in 2032
(compared to 2022) (Scope 1, 2)Group HR strategy to maximize
HORIBARIANs’ potential
A sustainability strategy forcreating social impact

P.37

P.39

Financial goals
Sales

450billion yen（2023 results: 290.5 billion yen）

ROE

17

12% or more

Operating income

80billion yen

Net income（2023 results: 47.2 billion yen）

Dividend payout
ratio

30%

55billion yen

HORIBA has formulated a Mid-Long Term Management Plan, MLMAP2028 to achieve by 2028.
We aim to achieve our vision of Joy and Fun for All by implementing these three strategies
based on our slogan: “MAXIMIZE VALUE”.

（2023 results: 40.3 billion yen）

Timely and properly return to shareholders
Special dividend and share buybacks

About our MLMAP2028
Symbol

A butterfly transforms from humble beginnings to a beautiful creature
dancing on the wind and spreading new life to each flower it touches.
Each tiny flap of its wings may result in massive impact elsewhere.
HORIBA's cutting edge analytical and measurement solutions maximize
the value to society, to enable a sustainable future for all living things.

HORIBA Report 2023-2024

18

Mid-Long Term Management Plan

Masayuki
AdachiGeorgeGillespie

Leader's Message

Bio & Healthcare

Energy &Environment

Maximizing HORIBA's
technologies andhuman assets
to challenge next growthMaterials & Semiconductor

HiroshiNakamura

Maki
Moriguchi

R&D

MLMAP Leader

Dan Horiba

Group HR, Sustainability

Dan
HoribaSenior Corporate Officer

MLMAP Leader

HORIBA draws on the strength of HORIBARIANs
around the world as a force for growth
In our Mid-Long Term Management Plan, MLMAP2028, we
express our aim to fully utilize all the value that HORIBA
holds with the slogan “MAXIMIZE VALUE”.
HORIBA technologies have unlimited potential to be utilized
in a variety of industries.
This slogan expresses our goal of contributing to society by
maximizing the value of our technologies and human assets
at each of the points, where HORIBARIANs all over theworld intersect with HORIBA's various business activities.
In line with changes in society and the market, I believe that
we can contribute to a better society by offering the“HONMAMON” technologies and solutions that HORIBA has.
And to achieve those, I want to promote the global activitiesof outstanding HORIBARIANs not just in Japan but also in
our overseas group companies as well.
We plan to actively cultivate human assets, and are now
preparing a Global Leadership Program with the goal ofstrengthening the management skills of current global
leadership candidates for the future.
In recent years, companies, which are contributing tosustainability through its business, are recognized as one of
the attractive companies. Many younger members in
HORIBA are particularly motivated to know that their efforts

The Intention Behind our

MAXIMIZE VALUE

・ Mission Vision Value・ Customer Value・ HORIBARIANʼs Value・ Technological Value・ Social Value19

are directly connected to environmental conservation andCO2 reduction.
Our work leads not only to personal growth and the growthof our company, but contributes to society as well. I believethat we can turn this positive cycle into the energy that willallow us to achieve the various numerical targets set forth in
MLMAP2028.
MLMAP2028 operation is promoted by three promotion
leaders, including myself, and the officers of Three Fields.
It is also very important to have opportunities to penetrate
the concept of MLMAP2028 within the company, as well as
the motivation behind it, and how we established this policy.
As the implementation responsible, I have already spoken
about these on various occasions, and I want to create theconditions for HORIBARIANs who have heard about it toexchange opinions and then further deepen theirunderstanding of MLMAP2028.
If this leads to actual action, it will also accelerate ourbusiness strategy.
Moreover, I believe if every HORIBARIAN around the world
thinks about what they themselves can do, then thepossibility of taking on new challenges will expand globally.

SloganCreating corporate“Value”

Hideyuki
Koishi：Field Officers：MLMAP Leaders

Linking MLMAP2028 to a new signpost: “Our Future”
On January 26, 2023, the anniversary of our establishment,
HORIBA announced “Our Future” (Vision, Mission, Values).
Actually “Our Future” is the starting point for MLMAP2028.
As HORIBA celebrated our 70th anniversary, we hadlaunched a project to define the guiding principles for our
future 100th anniversary.
Members from our overseas group companies joined thediscussion as well, and we exchanged a variety of opinionsfrom a long-term perspective about how we want HORIBA
to be, as well as how we should grow as the HORIBARIANs.
The discussion also touched on challenges of the uniquestructure of HORIBA's group operations from a global
perspective.
Considering the cross-segment business expansion thatPresident Adachi set forth in the previous Mid-Long Term
Management Plan, MLMAP2023 everyone agreed that it
would take significant energy to organize and summarize thedirection of the company and the growth potential of theGroup. Personally, I found the will and determination to fulfill
the expectations of those around me, and take the lead in
implementing our plan.
This project clearly stated our Vision, Mission, and Values,
and the proposals about the Group's growth potential wereincorporated into MLMAP2028.
Every word described in “Our Future” verbalized HORIBA's
uniqueness in language befitting HORIBA.
In addition, the corporate philosophy that had been passed
down for a long time was organized through discussion by
all present, and finalized as the wording announced thistime.
Our vision, “Joy and Fun for All” expresses HORIBA's desire
to spread the spirit that we have embraced, not only
throughout the company, but throughout society as well.
The Corporate Motto of “Joy and Fun”, which everyone
within the company has long embraced, was the desire of
our founder Dr. Masao Horiba for everyone to have a healthy
and fruitful life.
The future we strive for is to create a better world for the

At the 70th Anniversary Commemorative Ceremony

global environment and all living things through HORIBA's
technologies and businesses.
How will we engage with society in the future?
We have revised this in the form of a vision based on ourcompany motto.
It can be said that HORIBA has stepped into a new phase.
We use the word “HONMAMON” in our mission statement.
It expresses “The eternal pursuit of creating something fromthe heart that is one-of-a-kind.” This was the favorite wordof Dr. Masao Horiba and we follow it as our mission.
The “Spirit of Challenge” is a driving force for HORIBARIANs,
and a value that has been passed down from the venturespirit which founded HORIBA, Ltd., to HORIBA which had
grown into a global enterprise.
In order to remain a sustainable company, we must clearly
define what we need to do from a long-term perspective.
Through “Our Future” we were able to link HORIBA's
present to its future.
If we ever get lost or lose sight of something in our day-to
day work, we feel we have a beacon, like the North Star toshow us to where to turn back which we can follow to findthe way home.
I want to walk together with all HORIBARIANs around theworld, as well as our many stakeholders, and follow “Our
Future” as we move forward.
April 2024
HORIBA Report 2023-2024

20

Mid-Long Term Management Plan

STRATEGY

1 three focus fields (Field operations)

A business strategy to solve social issues inEnergy &Environment

Business Strategy for Achieving MLMAP2028
Businessstrategy

Focus field• Exhaust gas certification processes• Next-generation vehicle
development• Fuel cell evaluation• Electrolyzer evaluation• Water quality monitoring• Air quality monitoring• Process measurement• Process monitoring

Relation to the HORIBA's Five measurement business
Field Officer

Task Lead

George Gillespie

Shun FukamiGroup Strategy Division

Executive Corporate Officer

Automotive
Segment

Process &Environmental
Segment

ScientificSegment• Provide diversified products and solutions• New businesses by integrating capabilities in HORIBA• Total solution with system integration and consulting

HORIBA offers unique solutions to a wide range of markets like hydrogen and CCUS* which contribute towards carbon neutrality.
We actively provide services for equipment update, life extension, and disposal. Up to now these have focused primarily on theemission measurement business. Now, we are expanding this business through maximum utilization of Service Lifecycle
Management know-how that extensively supports the utilization of existing equipment.
We also utilize our System Integration and consulting capabilities alongside the core analysis technologies we have developed in
our Scientific Segment. This allows us to pursue the creation of new solutions combined product sales with engineering,commissioned tests, consulting and data solutions.
* CCUS : Carbon dioxide Capture, Utilization & Storage

Net sales (billion yen)

VisionMajorbusinessdomainA trusted partner supporting our customers
on their challenges to deliver a sustainable environment
Contributing to Carbon Neutrality. Promoting best solution for customer
requirement in R&D / regulation process with utilizing technology andexperience which HORIBA has fostered.

The social issue that HORIBA aims to solve in Energy & Environment Field is the realization of carbon neutrality, which requires efforts primarily inthe energy field. We promotes best in class solutions for customer requirement in R&D, regulation, and other processes by combining ourtechnology and expertise.
We provide suitable solutions for each value chain in R&D, Regulation, In-service compliance, and Production for our focus areas of energy,
mobility, water, and atmosphere.
As the energy conversion cycle for achieving carbon neutrality indicates, we contribute to processes that store and utilize renewable energy,
processes that reuse the exhaust gas from factories to create things like synthetic fuels, and processes that use renewable energy andwastewater to create hydrogen energy.

Chemicals

Energy conversion cycle for achieving carbon neutrality
Mobility

Synthesis

Energy storage

GreenenergyElectrolysis

Carboncirculation

Hydrogenutilization

RenewableenergyPlan for2028

Factory158.0 billion yen

OperatingincomeOperating income (billion yen)

130.0

15.8 billion yen● Increase operating income

by 2.1 times* CAGR: Compound Annual Growth Rate

158.0

CAGR 5%15.8

7.5● Achieve 5% CAGR* for net sales

2024
Forecast

2.1 times
2025

2026

2027

2028
Plan

Contributing towards a sustainable society through our business activities■ Solutions towards achieving carbon neutrality
In our Energy & Environment business field, HORIBA offers solutions towards achieving carbon neutrality for various customer
businesses. We combine the technologies, products, and sales networks that we have cultivated in our Automotive, Process &Environmental, and Scientific Segments.
Our emission measurement systems contribute to improve vehicle fuel economy, and has allowed us to roll out water quality andgas measurement solutions in the Process & Environmental Segment for meeting environmental regulations around the world.
Going forward, we aim to contribute to bring about a sustainable society by providing solutions needed to build a hydrogenenergy society supporting the development of processes for capturing, utilizing, and storing CO 2.

Improving vehicle fuel efficiency
Wastewater

21

Carbonadsorption/
Desorption/
Reduction

Net sales

Fuel cell and Electrolyzer evaluation /Solar cell development

Carbon dioxide Capture,
Utilization and Storage

Photo: CO₂ separation and capture equipment.
Courtesy of Toshiba Energy Systems & Solutions Corporation

HORIBA Report 2023-2024

22

Mid-Long Term Management Plan

STRATEGY

1 three focus fields (Field operations)

A business strategy to solve social issues inEnergy & Environment
Initiatives to focus on

Capturing business opportunities in the hydrogen market

1ー Establishing a global engineering structure ー

For the hydrogen market, which is vital to achieving carbon neutrality, we are developing our business primarily from HORIBA
FuelCon GmbH in Germany. However, by quickly identifying business opportunities around the world and expanding ouroperations. We are building a global engineering structure that can respond locally to the needs and demands of each country.
Germany

China

Japan

3

Total solutions leveraging our consulting capabilities
ー Expanding from the mobility market to the carbon neutrality market ー

We combine the consulting capabilities that are one of HORIBA MIRAʼs strengths, with our STARS Series test automation
software and our STARS Enterprise integrated data management system, to develop total solutions for product sales, testing,and facility operation, and deploy them in the carbon neutrality market.

the U.S.

Consulting solutions related toFuel cell and electrolyzer
evaluation, which contribute to
the hydrogen market.

Fuel cell andElectrolyzer
evaluation systems

Germany

HORIBA FuelCon GmbHHORIBA welcomed German company, FuelCon GmbH into the Group in 2018 andopened a new facility, named HORIBA eHUB, with a production area of 7,000 m2 in 2022,
five times larger than the previous facility. Orders for Fuel cell and Electrolyzer evaluation
systems have increased and the company's production lines are operating at full capacity.

We have expanded assessment and production
equipment for production lines in addition to fuel cell /electrolyzer development applications
Inspection equipment for fuel cell
production lines

Engineering

Products

Consulting

Enterprise

Facility
operation
services
Test
specimenmanagement

Predictive
maintenance

SoakManagement

Regulatory
procedure
management

Operational
analysis

Facility
management

Data
management

Contract
testing

Remotemanagement

Evaluating fuel cell stack performance and inspecting hydrogen leaks

Mass production equipment forelectrolyzer production lines

Simultaneous performance evaluation of four solid oxidewater electrolysis stacks

2

Naturalgas ﬁeld

CCS(Increased
productionof natural gas)

Natural gas

Gas reformingandCO2 separationPowersourceProcesses such as ammonia production and energy storage
are being commercialized in the field of carbon recycling. Thishas created needs for process monitoring and measurement
to further increase efficiency in each of these processes.
We will provide various products and solutions and enhancesystem proposals are led by the technologies we havecultivated in the Process & Environmental Segment.

Supporting CO2 separation and capture
Monitoring generated gases

Amine solution monitoring

Energystorage

Thermal energy
supplyPower
generation

High-concentration
gas analyzers
Multi-component
gas analyzers

Low-concentration
gas analyzers
trace gas monitor

Core businesses supporting growthin the Energy & Environment Field

Strengthening support for exhaust gas certification and vehicle development

Strengthening our system proposal capability
in carbon recycling

Ammonia
production

23

Inspection equipment forfuel cell production lines

4

Process raman /fluorescenceanalyzer

Field-installation
type pH monitor /electric conductivity
meter

As countries adopt new emissions regulations,
measurement needs are diversifying into areas suchas measurement equipment upgrades.
HORIBA continues to expand our evaluationequipment business for internal combustion engines,
which is led primarily by our MEXA Motor Exhaust
Gas Analyzer. Meanwhile, we are also strengthening
sales in the field of electrification with products andservices required by electric vehicles, including brake
dust measurement and high-performance E-Motorevaluation equipment.

Brake dust measurement

Continuous measurement of solid
particle emitted from automotive
Meets the need to measure dust
and other particles generated bybrakes and tires which is being
considered for inclusion in thenext emissions regulations in
Europe.

E-Motor evaluation equipment

SPCS-ONE

Solid particle counting system

Strengthening global operations as experts in water quality measurement
HORIBA offers a wide range of water quality analyzers,
from bench-top models for laboratories to in-line andon-line models for process monitoring.
Ease of use and simplicity of maintenance also support
operations with labor savings and energy conservation.
We combine sensor technologies developed in Japan
with the systematization expertise of two companies wehave acquired in Europe (TOCADERO in Germany, andTethys Instruments in France), which is at the
cutting-edge of environmental measures. Thus we cancontribute to more efficient water treatment process
management that considers the needs of the market.

Compact typewater quality
metersBenchtop
water quality
metersHandheldwater quality
metersWater quality analysis andexamination systems for processes /continuous monitoring

HORIBA Report 2023-2024

24

Mid-Long Term Management Plan

STRATEGY

business strategy to solve social issues in
1 Athreefocus ﬁelds (Field operations)

Bio &Healthcare

Business strategy for achieving MLMAP2028• Providing unique solutions for emerging new niche markets
Businessstrategy

Focus field• Hematology testing• Blood glucose testing• Immunoassay• Clinical chemistry testing• Hemostasis testing• Pharmaceutical development,
manufacturing, and quality control• Food and beverage development,
manufacturing, and quality control• Cosmetics and skin care productdevelopment, manufacturing,and quality control

Relation to the HORIBA's Five measurement business
Field Officer

Task Lead

Masayuki Adachi

Jun Ivan Nishimura Tanikawa

President & COO

MedicalDiagnostic
Segment

Group Strategy Division

Process &Environmental
Segment

ScientificSegment• Localization in IVD testing business• Implementing HORIBA's measurement technology andengineering capabilities in the bio pharma industry

We leverage HORIBA's unique analysis technology and blood testing processes know-how to create distinctive solutions withhigh added value for new niche markets in the healthcare journey.
We will accelerate localization of our testing business and improve profitability at our global development and production sites.
Also, in the area of pharmaceutical development, production, and quality management processes, we will strengthen
partnerships with customers and provide unique customized solutions.

Net sales (billion yen)

VisionMajorbusinessdomainNet sales

Provide strong social value by transforming
the healthcare journey with unique solutions

Plan for2028

Contributing to transforming the healthcare journey with unique solution
based on our IVD know-how, diversified core technologies, and global
network. Key examples are, solving clinical issue with POCT* solutions andoptimizing bio pharma R&D, and production process.

The social issue that HORIBA aims to solve in Bio & Healthcare Field is to transform the healthcare journey including well-being and prevention,
to improve the health of humans and animals. We provide unique solutions with high added value in fields such as blood testing, clinicalchemistry, veterinary medicine, digital solutions, and POCT, by leveraging our diverse core technologies and global network we have cultivated in
the hematology business. We also aim to expand our business in the pharmaceutical, cosmetics, and food & beverage markets. In particular, weare contributing to the acceleration of drug development and manufacturing, and thus making a positive impact for a more efficient medical care.
*Point of Care Testing (POCT): A general term for testing performed at locations close to patients, such as private
practitioner offices, diagnostic clinics, hospital wings, and outpatient clinics.

Fields in which HORIBA provides solutions for each healthcare journey

Medical treatment

Prevention
Vaccine development

25

01

02

05

04

Pharmaceuticals anddrug discovery

Well-being

Diagnosis

Food and cosmetics

Hematology and clinicalchemistry testing

06

03

Monitoring

Screenings

Unique POCT
blood testing

Liquid biopsy

Operatingincome57.0 billion yen

Operating income (billion yen)

40.0

5.7 billion yen

1.0● Achieve 9% CAGR* for net sales● Increase operating income

by 5.7 times* CAGR: Compound Annual Growth Rate

2024
Forecast

57.0

CAGR 9%5.7

5.7 times
2025

2026

2027

2028
Plan

Contributing towards a sustainable society through our business activities■ Contributing to everyone's healthIn our Bio & Healthcare business field, we contribute to maintain health for all living beings by delivering rapid and trustworthy
sample testing at medical sites.
Our aim is also to ensure the quality and safety of medicines and vaccines, and its effective development and manufacturing bydeploying HORIBA's diverse technologies and solutions in the pharmaceutical market.

Reducing pharmaceuticalproduction costs

Increasing efficiency of pharmaceuticaldevelopment and production

Contributing to increase efficiencyof medical care through testing

HORIBA Report 2023-2024

26

Mid-Long Term Management Plan

STRATEGY

business strategy to solve social issues in
1 Athreefocus ﬁelds (Field operations)

Bio & Healthcare
Initiatives to focus on

Expanding into the new area of the healthcare journey.

1

ー Integrating HORIBA's capabilities and developing new solutions ー

HORIBA
Spectroscopic
analysis
Screening&
Imaging

We believe that new niche markets will be createdwith the transformation of the healthcare journey.
We will develop unique and innovative solutions in
the healthcare field utilizing all of our capabilities
and assets, which includes partnership with key
stakeholders and market leaders, open innovation,
HORIBA's core technologies such as opticalanalysis technology, software, reagent
development, and fluid control technology, and our
network with the academia.

Academia

Capture&Isolation

Fluid Control
Technology

Reagents

SoftwareDatabase&
Analytics

Pharmaceutical
Companies

Cancer cells,
etc.

Identification&
Characterization

Rapid Raman Plate
ReaderIn the field of POCT (Point of Care Testing), we
provide distinctive solutions with high added value
which utilize technologies HORIBA has nurtured
over the years such as HORIBA MEDISIDE
LINKAGE and uTAS.

Water
flow-throughsensors forpharmaceuticals

Rapid
microorganism
detection system

ViewSizer3000

Cultivation

Value creation for clinical sites

Shorterturnaroundtimes

Simultaneous
measurement solutions
for hematology and CRP

Enhanced Drug monitoringfor chronic
primary carediseases

HORIBA'suniqueness

Reagent chip

27

RapicaMarket specificengineering abilities

Contributing to improvement of quality and production
efficiency through high-sensitivity sensing technology
and engineering technology

Microbe detection in a short amount of time,with no need for cultivation

SimultaneousMulti-Laser Nanoparticle
Tracking Analysis (NTA)μTAS Technology

Multi-assay POCT
blood analyzer

Proposing newprocess monitoring
solutions

Process raman
systems formonitoring reaction
conditions in real-time

Pharmaceuticals
process

ー Utilizing the network and know-how cultivated through our IVD testing business ー

Banalyst

Unique analysis
and measurement
technology

Hospitals

Solving medical challenges with POCT

Contributing todiagnose diabetes orinfectious diseases froma single drop of blood

We propose new process monitoring solutions for the bio-pharma market that utilize our core technologies related to analysis,
and our engineering capabilities cultivated in fields such as mobility.

Rapid testing equipment forpharmaceutical development
and quality control

Treatment&
Follow-up
Marketaccess2

Contributing to new diagnostics or
screening solutions, and developmentof medicines and vaccines.

Proposing process monitoring solutions
for the bio pharma market

3

Yumizen H330 CRP
Automated CRP hematology
analyzer

Satellite
hospitals

Mobileunits

Homecare

Improving healthcare access4

Formulation

Sterilization

Release test

FillingCore businesses supporting growthin the Bio & Healthcare Field

In the hematology discipline, we will expand our new
product lineup in Japan, considering the importance ofclinical diagnosis by primary care doctors.
In growing markets such as India and Indonesia, we aim toaccelerate the localization of analyzers and reagentsproduction, and expand sales.
In Europe, we will expand sales by supplying hematology
analyzers through Siemens sales channel, and providing
blood testing systems for large hospitals and testing centers.
In clinical chemistry, we will strengthen reagent sales fromHORIBA POINTE and expand our supply of reagent from theAmericas to the rest of the world.

Blood testing system for large hospitals
and testing centers
HORIBA
Evolutive
Laboratory
Organization

Classifies 5 types ofwhite blood cell with
3 types of reagent

Growing need for blood testing in veterinary clinics

Quick testing for anemia,
allergies, and inﬂammation
Microsemi
LC-712

Automatic hematology
analyzer for animals

Yumizen H500 Series

Automated hematology analyzer* This product is not
related in any way to
MICROSEMI
Corporation.

Expanding our clinical chemistry analysis alongside
HORIBA POINTE reagents
YumizenC1200
HORIBA POINTE

Automaticclinical chemistry
analyzer

Reagents for special items
such as drug testing

HORIBA Report 2023-2024

28

Mid-Long Term Management Plan

STRATEGY

business strategy to solve social issues in
1 Athreefocus ﬁelds (Field operations)

Materials &Semiconductor

Business strategy for achieving MLMAP2028

Focus field• Semiconductor manufacturing
process control and monitoring• Facility management and control• Advanced materials research anddevelopment• Advanced recycling ofmaterials• Semiconductor relatedmaterials research,development, and quality
control

Relation to the HORIBA's Five measurement business
Field Officer

Task Lead

Hideyuki Koishi

Takeshi Kondo

Director

VisionMajorbusinessdomainGroup Strategy Division

Process &Environmental
Segment

ScientificSegment

Shape the market with innovative solutionsin the advanced materials and semiconductor field
toward achieving sustainable society
Contributing to technology innovation in “Woven Value Chain” which is value
chain matrix where semiconductor production process, advanced materials
and facilities are inter-connected.
Supporting customers' operations by providing the most advanced analyticaland measurement solutions with HORIBA all around.

The social issue that HORIBA aims to solve inMaterials & Semiconductor Field is to innovate
technologies in the matrix of the value chain that wecall “Woven Value Chain”, which inter-relates
semiconductor production processes, related
advanced materials, and their facilities.
Semiconductors progress will continue andtechnological improvement or innovation will
accelerate.
We support customer operations from all directions,with a focus of control and monitoring in thesemiconductor production process. This includes
everything from providing cutting-edge solutions forresearch and development of advanced materials
on the upstream side, to facilities management
covering exhaust gas and wastewater monitoringon the downstream side.
By providing cutting-edge innovative solutions
across the entire Woven Value Chain, we willcontribute to bring about a society that continues todevelop sustainably.
* “Woven” evokes the image of textiles. At HORIBA, werefer to our entire value chain, including facilities, as the“Woven Value Chain,” where the horizontal threads
represent semiconductor manufacturing processes andthe vertical threads represent the materials markets related
to those processes.

29

Semiconductor
Segment

The idea of Woven Value Chain

Businessstrategy• Enhance our competitiveness in the semiconductor industry by
improving supply capacity• Strengthen semiconductor manufacturing process monitoring• Apply advanced analytical technologies in the semiconductormaterials market• Allocate resources on advanced material research, production
and recycling

We will promote BCP measures, and accelerate on a product development global scale, to strengthen our existing mass flow controller andchemical concentration monitor businesses.
By strengthen semiconductor process monitoring, we will contribute to improve the mass production process.
We will also accelerate commercialization of process products, as we strive to automate thin film measurement and modularize equipment.
And we will concentrate resources on areas such as advanced semiconductor materials, polymers, carbon, and power semiconductormaterials (SiC, GaN), where we can provide unique solutions and core HORIBA technologies, such as spectroscopic analysis.
Net sales (billion yen)

Net sales

Plan for2028

235.0 billion yen

OperatingincomeOperating income (billion yen)

151.0

58.5 billion yen

43.5● Achieve 12% CAGR* for net sales● Increase operating income

by 1.3 times* CAGR: Compound Annual Growth Rate

2024
Forecast

235.0

CAGR 12%58.5

1.3 times
2025

2026

2027

2028
Plan

Contributing towards a sustainable society through our business activities■ Developing new technologies and contributing make semiconductor production more efficient
In the field of Materials & Semiconductor, and in light of the increased demand for semiconductors fueled by data centers andGenerative AI, we contribute to promote research and development of semiconductor devices, improve yields, control
production processes, support R&D and quality control for semiconductor related materials, and recycle rare raw materials.
In addition, we contribute to sustainability activities in the general production of semiconductors by combining solutions such asenvironmental monitoring which cover the entire semiconductor facility.

Growing demand for semiconductors

Increased computational processing
due to the spread of Generative AI

Increase in number ofdata centers

Contributing to improve productivity, development ofadvanced materials, and utilization of finite resources

Importance ofadvanced materials(Polymers, Carbon, Power semiconductors, etc.)

Recyclingat the materials level

HORIBA Report 2023-202430

Mid-Long Term Management Plan

STRATEGY

business strategy to solve social issues in
1 Athreefocus ﬁelds (Field operations)

Materials & Semiconductor
Initiatives to focus on

1

Contributing to advanced semiconductor process control
ー Providing solutions with high-value components and module products ーMeasuring various semiconductor
process monitoring items in real time.
We aim to expand our solutions
business for module products andhigh-value component products
installed in semiconductor
manufacturing equipment, while also
growing our existing solutions
businesses (mass flow controllers andchemical concentration monitors).

Semiconductor process control domain which HORIBA covers• Fluid measurement /control• Chemical concentration
monitoring• Liquid vaporization• Plasma monitoring• Pressure control• Thermal monitoring• Vacuum monitoring

Achieving even higher gas control
performance to handle advances inminiaturization and 3D structurizationin cutting-edge semiconductor devices

One machine handles detection andremoval of impurities, contributing to
improve yield and make the semiconductor
production process more efficientAchieves safe and stable concentration
monitoring through non-contact measurementof chemical solutions used in semiconductor
production processes like cleaning and etching

Contributing to process of advanced material development and production

3

ー Providing solutions based on HORIBA's integrated analysis technologies ー

Semiconductormaterials

Research andDevelopment

Manufacturing

Recycling

CS-900

Providing all-around solutions such as semiconductor process monitoring
through thin-film measurement technology and facility monitoring

In the semiconductor market, where development of advanced
materials is accelerating, we are using automation andmodularization to apply thin-film measurement technology
developed for lab use to semiconductor processes.
We also provide solutions that contribute to improve energy
efficiency and reduce GHG* emissions to achieve carbon
neutrality in facilities.

Yongin
South
Korea
China

Improve
Yield

Reduce Energy
Consumption

Improve
Efficiency

Pune

Construction of new factory in Fukuchiyama, Kyoto

Japan

Fukuchiyama
Aso

Laser gas analyzer
for semiconductor
processes

Imaging Spectrometer

Kyoto

India
BeijingHigh-concentration
silica monitor

Hyperspectral
Imaging
Spectrometer

Following on our Aso and Kyoto factories HORIBA will construct a new factory in Fukuchiyama, Kyoto to secure large
production volumes.
We also plan to increase production in the U.S., China, and South Korea, expand our BCP measures against natural disasters
and other disruptions, and enlarge our network of second source suppliers.
Moreover, we will leverage our global network to enhance our supply and procurement capabilities.

* GHG：Green House Gas

AMC* monitoring system

AFM Raman

Wafer
inspection,
plastic selection

Core businesses supporting growthin the Materials & Semiconductor Field

4

Primary production bases for mass flow controllers

Exhaust gas
emissionmonitoring

Wafer
Micro-structure/
Stress Analysis

XploRA Nano

Centrifugal nanoparticle
analyzer

Chemicalconcentration monitor

Wastewater
treatment
monitoring

Nanoparticle-size
control for CMP
slurries and advanced
nano materials

Partica
CENTRIFUGE

Reticle/Mask particle
detection system

Mass flow module

Airborne molecular
contamination
monitoring

CarbonPD Xpadion
EX Series

CRITERION
Series2

Polymers

We will integrate HORIBA analysis technologies with a focus
on materials such as advanced semiconductor materials,
polymers, carbon, and power semiconductor materials (SiC,
GaN), which are set to increase in importance.
We utilize our knowledge of upstream process research anddevelopment to provide process monitoring solutions fordownstream mass production processes, contributing to ourcustomersʼ stable manufacturing.

Shanghai

HORIBA STEC Kyoto Fukuchiyama Factory (tentative name)(scheduled for completion in January 2026)

Will introduce the latest automation technology totriple mass flow controller production capacity.
At 17 billion yen, it is the biggest investment in our history.

* AMC：Airborne Molecular Contaminant

31

HORIBA Report 2023-2024

32

Mid-Long Term Management Plan

Strengthening our global management foundation(Services, Production, Distribution, R&D)

Strengthening our Business foundation to support global operations• Continuous HR investment (quality and quantity)• Provide solutions for facility optimization

Production

Stably provide high-quality products
by using a sustainable value chain

Distribution

Expand solutions and built distribution
channels that maximize customer value• Optimization of global resources• Pursuing deeper skills transfer and automation• Channel optimization based on field operation

650

5,400

Approx.
employees
outside of Japan

Three
fields18 plants

50

Approx.
offices

Initiatives to promote DX using open innovation
There is growing momentum for achieving a sustainable society, and technological innovations utilizing AI and IoT are advancing rapidly.
HORIBA offers unique solutions by flexibly combining its strengths in “measuring” technologies, such as analysis, measurement, and control, with“connecting” technologies, such as remote access and data management, which has been promoted within our Mid-Long Term Management
Plan, MLMAP2023 as “Solution Provider Beyond Life Cycle Management”.
HORIBA has been supporting vehicle emission certification test for 60 years, but the certification tests procedures and methods defined byregulatory agency in each country have become very complex. For many years, HORIBA has proposed various solutions for overcoming thesechallenges. In particular, we have contributed to innovation in vehicle development process through automation of test protocol by software
solution, and streamlining and virtualizing of test methodologies by data science and digital twins.
In order to expand this business model, which provides not only analytical and measurement technologies but also automation and efficiency
improvement of development and production process, to a wider range of business fields, we are actively promoting collaboration between
industry, academia, government, civil organizations and accelerating open innovation with various universities such as Shiga University, theUniversity of Tokyo, Kyoto University and Osaka Metropolitan University.
In addition, the department that develops digital solutions for customers and the department that promotes digital transformation within thecompany will share challenges, generate ideas, and provide products and services that increase added value for customers, while also aiming to
improve the productivity of internal operations.

EXAMPLE OF
COLLABORATION

Building a platform for co-creation analysis
platform for the realization a smart society

Developing highly skilled human assets

Triangularcollaboration

Implementing
in society

Energy & Environment

33

MLMAP Leader
R&D strategy

Bio & Healthcare

Analysis,measurement,
and control
technologies

Co-creation analysis platform• Remote access and data management at multiple locations

Enterprise • Equipment and technician resource management

Hiroshi Nakamura
Corporate Officer
General Manager of R&D Division

In our Mid-Long Term Management Plan, MLMAP2028, we haveset 3 growth strategies as R&D direction and target, since R&D
must be a source and driver of growth.
The first one is to help expand new applications and businesses
through product development by new combination of technology inall HORIBA Group.
The second is to help expand our solutions business, including
automation and data management, by promoting thetransformation of our business from product sales to solution
provider.
And the third is to pursue “HONMAMON” technologies. We will
accelerate open innovation and the exploration of applications, andsteadily invest in areas of advanced development from a long-term
perspective.
In the past Segment structure, there were few opportunities tocombine core technologies and customer networks, but as part of“Market Oriented Business,” one of the key initiatives of
MLMAP2023, so-called “cross-segment” activities that transcend
segment boundaries have been promoted, new combinations
across segments have led to a succession of “new combinations:innovations.”
Looking at cases where technology has led to discontinuous

business development, some are based on “technologicalinvention,” but many have achieved great success through the
combination of some kind of value with “new combination:
innovation.”
Looking at HORIBA's history, we can say that our automotive
measurement business began when we applied the technology of
medical measuring devices that measure human breath to exhaustgas measuring devices, and that our semiconductor businessmade great strides when we applied the technology we developed
for standard gas generators to semiconductor manufacturing
equipment. These were major innovations that combined
previously unlinked core technologies and sales networks.
The great significance of performing field operations, is toutilize our “HONMAMON” technologies in all business fields.
All fields can access all of HORIBA's technologies andexplore their possibilities in every field.
I am confident that this will create opportunities for new
innovations through unprecedented combinations, and enable us
to maximize their value as “HONMAMON” solutions.
To achieve this, we will follow the development strategy, foster ourcore technologies, too.
April 2024

R&D strategy: Foster our core technology development

1

Product development closely aligned to the customer

Plan forNet sales2028
in new businesses:

60 billion yen

Core technologies × Customer needs = Innovation
X-ray analytical
instruments
used inproduction lines

We propose new solutions in the Three Fields of Energy & Environment, Bio & Healthcare, and Materials &Semiconductor by implementing crossing HORIBA Core Technologies with customer needs.

2

Initiatives from our comprehensive partnership agreement with Osaka Metropolitan University

Societal implementation through triangular collaboration
between industry, academia, government, and civil organizations

Developing
basic
technologies

Organically connecting technologies
and human assets to polish“HONMAMON” technologies

Establish a unique service model withhigh-quality services and analytical solutions

Services

Approx.
distributors

MESSAGE

Plan for Solutions business*
2028
Net sales:

From product sales to solution sales*Automation, data management, etc.

Developing businesses across fields
We develop data management systems that offer integrated management of
measurement data, equipment status, work processes, and task. And we employ thesefor controlling measurement equipment at various development sites.

3

Pursuing “HONMAMON” technologies• Using AI to improve the efficiency of data analysis and testing

25 billion yen

Enterprise
Ratio of advanced R&D
Plan for2028 costs to total R&D expenses

10% or morePursuing applications and accelerating open innovation

Accelerating social implementation
through new combinations oftechnologies and networks
from each side
Materials & Semiconductor

Smart Energy Building
Open laboratory

Analysis lab/
Production
process

Socialimplementation
partners

We will continue to steadily invest in areas ofadvanced development from a long-term
perspective.
Through collaboration between industry, academia,
government, and civil organizations, we also aim tocreate and commercialize next-generation analysis
and measurement technologies, and promote thedevelopment of young engineers who will leadsociety on a global level in the future.

HORIBA's original InfraRed Laser Absorption Modulation method(IRLAM)

Signing comprehensive partnershipagreement with Kyoto University

HORIBA Report 2023-2024

34

Mid-Long Term Management Plan

Group HR Strategy and Sustainability Strategy
SPECIAL DIALOGUE

Working with the entire Group to create
an arena for pursuing “HONMAMON”
To achieve our vision of “Joy and Fun for All”, we included the Group HR Strategy to maximize HORIBARIANs
potential, and a Sustainability Strategy to create social impact in our Mid-Long Term Management Plan,
MLMAP2028 Group COO Juichi Saito and MLMAP Leader Maki Moriguchi discuss HORIBA's history to date,
and the human assets and sustainability strategies we are pursuing through MLMAP2028.

HORIBARIANs who have uniquecharacters work in HORIBA
Moriguchi ： When customers visit HORIBA, or when I meet
people outside of the company, I often hear them commentthat “HORIBARIANs are all so unique.”People notice our uniqueness, even we are not usually awareof it. I am proud that this HORIBA identity seems to have beencultivated naturally by HORIBA's corporate culture.
Saito ： HORIBA is proud that we are a company that revolves
around people-based management. Our management iscentered on having each and every HORIBARIAN personify
the corporate motto of Joy and Fun established by our
founder Masao Horiba in 1978. We feel a sense of pride in thefact that we have been able to build a unique managementfoundation that organically connects the ideas andtechnologies that people come up with by organizational
capabilities.
Moriguchi ： Our founder Dr. Masao Horiba's conviction wasthat “Believing in the limitless potential and power of humanity,and drawing this out to be utilized in society, results in bothhappiness for individuals and strength for the organization.”
This spirit probably lives in each and every HORIBARIAN.
There is power in this spirit as well. And I feel that we havefostered an organizational culture that encourages people toraise their hands and take on challenges.

Saito ：I feel that the BlackJack Project (HORIBAʼs own an
improvement activity started in 1997) has achieved great
results and continues to generate strong enthusiasm fromfrontline HORIBARIANs. It is also impressive how the Stained
Glass Project that we launched in 2014 has become a driving
force for growth and change in HORIBA.
Moriguchi ： The Stained Glass Project, which has been
active for about 10 years, has given birth to a variety ofactivities. HORIBA respects diversity and aims to create aplace where people demonstrate their strengths, originality,
and talents, just like a stained glass picture.
The project has achieved a certain level of success,encouraging everyone at group companies primarily in Japanto learn about diversity, discovering diverse next-generation
leaders, and working to increase flexibility of work-styles.
Going forward, we plan to promote initiatives as part of
MLMAP2028's Group HR Strategy on an even more global
scale than ever before. We also intend to ensure these efforts
are properly passed on.
Saito ： In other words, as we pass on HORIBA's uniqueapproach to diversity, we aim for diversity to be woven into all
the business activities and daily communications of
HORIBARIANs, and then to move from there to the next stage.
I would like to incorporate the foundation laid by the Stained
Glass Project into the Group HR Strategy of MLMAP2028, andaim for even greater heights.
Moriguchi ： I totally agree with your thought. With MLMAP

By creating dialogue about
HORIBARIAN and sustainability,
HORIBA will continue to makea valuable impact on society.
MLMAP Leader
HR, Sustainability

Maki Moriguchi
Junior Corporate Officer
Deputy General Manager ofGeneral Administration DivisionPrincipal, HORIBA COLLEGE** HORIBA COLLEGE: An internal university which allows HORIBARIANs to determine what programs they need, become lecturers themselves,and share their skills and experience.

35

Our new challenges are providing
new solutions through our business,and contribute to training the next generationin cooperation with our Group companies
around the world.
Juichi Saito

Executive Vice Chairman &Group COO

2028, we have once again hammered out the message ofmaximizing the power of HORIBARIANs.
In addition to addressing immediate issues for the people or
HORIBARIANs that we have so treasured, such as teamretention and work-style reforms, I would like to work out
concrete strategies for making our vision of “Joy and Fun forAll” a reality. Then we can link these more strongly to ourbusiness activities and strengthen our collaboration on them.
I expect to see more and more synergies develop throughconnections across companies, locations, and businesses.

To pass on the essence of the culture
HORIBA has long cultivated on to
the next generation
Saito ： In recent years the idea of human capital has been
focused, but at HORIBA, we have fostered a culture that views
employees as valuable assets.
Our efforts go beyond the unique design of our HR and diverse
training systems. We have developed a wide array of businessactivities that incorporate our desire to give HORIBARIANs richand healthy lives. These include nurturing people throughvarious projects and face-to-face communication, as well as
facilities like our employee cafeteria, our HORIBA Blueberry
Farm, and our Fun House training center run by the HORIBA
Community Corporation and solely responsible for HORIBA's
employee welfare programs.
However, I feel that it will be difficult to reach our goals if we staysatisfied with the current state of affairs.
Amidst rapid changes in society and in people's attitudes
towards work, we need to continue to prioritize creating an
arena that values diversity, in which each individual can fully
demonstrate their abilities. We are also keenly aware that thevalue of our corporate activities lies in taking the lead in helping
to make society sustainable.
Moriguchi ： When we reached the milestone of our 70th
Anniversary, we formally defined our Vision, Mission, and Values
in our new “Our Future” declaration.
Through this, we shared the company spirit of Joy and Fun that
we have long cherished. And we declared our intention tocontribute to the global environment, the health of all living
things, and the progress of science and technology, through
HORIBA's variety of “HONMAMON” solutions.
HORIBA will provide various solutions to help create a world inwhich all living things can live in harmony and fully unfold theirenergy. This is the intention behind our mission to, “shape our
future with solutions based on “HONMAMON” anddiversity.” We want to continue discussing “Our Future”,

HORIBARIANs, and sustainability with all of our stakeholders,and so expand the circle of resonance. In this way, we aim for
HORIBA to continue to be a company needed by society.
Saito ： From this perspective, one of the things that we madesure to include in MLMAP2028 as the first step towards
realizing “Our Future”, was to make committing to people andsustainability a key theme to spearhead our business strategy.
As we work to bring about a sustainable society, HORIBA willcontinue to be indispensable in developing new technologies
that enrich society.
The driving force that will allow us to achieve this will come fromHORIBARIANs all around the world who share our vision,
mission, and values, as well as future HORIBARIANs whowant to become our partners and walk hand-in-hand with us
into the future.
Moriguchi ： Yes, HORIBARIANs all over the world are telling astory called “Our Future” from a long-term point of view toimpart the essence of the culture we have cultivated at HORIBA
over the years to the next generation. Right now, we areconnecting and conversing to write the first chapter. From there
I hope the story continues to unfold with HORIBA creating new
solutions.
Saito ： Our sustainability strategy is, of course, committed toreaching net zero. Our new challenges are providing new
solutions through our business, and expressing our intention
to contribute to training the next generation in cooperation with
our Group companies around the world.
The experience and expertise possessed by
HORIBARIANs―our human assets ―allow us to directly
contribute to technologies that solve new social problems. We
have also taken the first step on our mission of sharing our
dreams and conveying the fun of science and technology withthe younger generation to whom we will entrust the future.
I hope that all stakeholders will watch our efforts and cheer us
on as we confront the big upheavals and changes that lie
before us.
Moriguchi ： “Joy and Fun for All” This is a grand vision, but
the fact that diverse HORIBARIANs share the same goal andare taking this new step together is a significant advantage.
It is important that HORIBARIANs around the world collaborate
to steadily implement the strategy build in MLMAP2028, and bycommunicating, bring about a sense that we are really drawing
closer to our dreams.
In this sense, we have a grave responsibility and challenging
role as leaders. But I believe that our team power will overcome
any obstacles, and that we will boldly take on this challenge.
April 2024
HORIBA Report 2023-2024

36

Mid-Long Term Management Plan

STRATEGY

2 HORIBARIANs' potential

Group HR strategy to maximize

Group HR Strategy
Create the “Arena” together where every HORIBARIAN
can maximize their potential trough demonstrating their abilities
with Joy and Fun in pursuit of “HONMAMON”

VisionInitiatives to focus on

1

Cultivate unique culture as our “Arena” to maximize our potential

The driving force behind HORIBA's creation of social value through our business, is producing diverse HORIBARIANs
independently expressing their individuality, strengths, and abilities. Based on the Stained Glass Project in our previous
Mid-Long Term Management Plan, MLMAP2023 we promoted efforts to continually create value by leveraging our diversity
in attributes like gender, age, nationality, and disability. We will develop HORIBARIANs and improve the company's internal
environment base on our Group HR Strategy.

• Instilling our unique corporate culture fostered by our corporate motto of Joy and Fun,
together with our new charter “Our Future” (Vision, Mission, Values).

Vision• Fostering the growth and activities of each and every HORIBARIAN and enhancing
HORIBA’s Value by continuously holding workshops and training aimed at practicing ourthree values: a Spirit of Challenge, Pursuit of Excellence, and Reliability and Trust.

Group HR Strategy

Various measures to support
the activities of HORIBARIANs

1

Share and practice of Vision, Mission,and Values with all HORIBARIANs

HORIBA COLLEGE

The BlackJack
Project

HORIBA
COLLEGE

The BlackJack Project

Promotingdiversity

Promoting diversity

Web Link

2

Creating Value of “HONMAMON”
Pursuit of “HONMAMON” throughpractice of Values

3

Learn and Collaborate
with diverse HORIBARIANs

2

Click!

Creating value of “HONMAMON”
Pursuit of “HONMAMON” through practice of Values• Continue to promote the BlackJack Project and HORIBA COLLEGE as the starting point for
HORIBARIANs development, and cultivate HORIBARIANs who can play an active global rolein management through leadership training.
• Utilize new systems for grade and evaluation which create dialogue with each individual
HORIBARIANs, support them in taking on challenges, and help them to demonstrate theirdiverse strengths.

3• Network building with diversified HORIBARIANs• Promote a culture of“Mutual Learning & Collaboration”

Web Link
Click!

Cultivate unique culture
as our “Arena” to maximize
our potentiall

Share and practice of Vision, Mission, Values with all HORIBARIANs

Learn and Collaborate with diverse HORIBARIANs• Network building of diversified HORIBARIANs• Promote a culture of “Mutual Learning & Collaboration”• Promote diversity, equity and inclusion, health, safety, human rights, andmaintenance of work management systems, so that diverse HORIBARIANs canfeel greater pride and joy (engagement) about working at HORIBA.

Basic HR policies• Creation of diverse career development and challenge opportunities on a global
basis, including overseas training program.

Open and fair

Point-added policy

Two-way communication

We ensure that important information andrules are shared openly so that there is freecommunication within the company.
We provide fair opportunities for uniquely
individual and diverse HORIBARIANs tochallenge themselves.

HORIBA's point-added policy doesn't
confer any points unless an employee
takes on challenges, even if the employee
has not made any mistakes. Points areconferred for taking on challenges. If
successful, further points are conferred.
This system supports and recognizes
ambitious HORIBARIANs, while valuing thestart-up mindset.

Information is not conveyed, it is shared.
We employ various mechanisms including
global gatherings where ideas are
directly voiced to management andbirthday gatherings for employees, toremove the barriers of position andorganization. This helps us to achieve truereciprocal communication.

HORIBA's
five pillars of“Omoi*”

We firmly hold and implement the five pillars of Omoi, to ensure each and every employee can personally attainour company motto of Joy and Fun.
● To be a part of a collaborative community, at the forefront of new ideas and creations.
● To achieve goals and make life memorable by fostering the highest intellectual potential.
● To reach across the globe to expand learning that captures key business developments, wherever they occur.
● To be proud of sharing what I do and what HORIBA delivers.

37

Americas12%

Number of
employees in 2023

• Sustain a virtuous cycle of increasing added value and employee compensation.

Winnie Ho Xin Ni, who applied to theGHE* Program, and was dispatched toFrance for 1 year from January 2023

Japan
36%

8,665

VOICE
Europe
32%

Asia

20%

Through this program, I got to work together withpeople with diverse values, and was able toreaffirm the “Omoi” that I value.
I hope to utilize the experiences and network I
gained through this experience from here out.

● To contribute to the world and its people.

*Omoi: The Japanese word “omoi” is used in English as well, to engender shared values among global employees.

Employee headcount by region(as of December 31, 2023)* GHE：Global HORIBARIAN Exchange

The Global HORIBARIANs Exchange(GHE) is oneof our overseas HR exchange program.

HORIBA Report 2023-2024

38

Mid-Long Term Management Plan

STRATEGY

3 for creating social impact
A sustainability strategy

Sustainability strategy
Initiatives to focus on

Contributing to the realization of a sustainable society
through HORIBA's unique capabilities

1

HORIBA's mission is to contribute a sustainable society through providing unique products and solutions.
In addition, HORIBA works on a global level to strengthen activities that contribute to society throughout our entire
supply chain.

Approach to Sustainability

Web Link

Board of Directors
Consultation/
Reporting

Supervision/
Direction

Sustainability Committee

Development sites

Production sites

Direct approach to CO2

Developing highly efficient enginesand hybrid vehicles

Precise gas flow control insemiconductor production processes

Introducing gas analyzers formonitoring CO2 at power plants, etc.

Reducing CO2 emissions
from automotives

Reduce gas andelectricity usage insemiconductor production

Increasing the efficiency of
CO2 capture and storage

A place for discussion among responsible parties• Lead in initiatives related to sustainability• Deliberate on matters discussed in forums
such as ESG workshops• Held once a quarter, in principle
Progress/Reporting

Web Link
Click!

Signatory to international initiatives
United Nations Global Compact(UNGC)HORIBA, Ltd. has supported the initiativesof the United Nations Global Compact
since we became a signatory in 2011
through the agreement of senior
management.
We disclose detailed information related to sustainability on the HORIBA web site.
https://www.horiba.com/int/company/social-responsibility/home/

39

Examples of HORIBA solutions for achieving carbon neutrality• Place to report to directors

Code of Ethics

Click!

• Developing solutions in Three Fields to achieve a sustainable society.

• In addition to the Scope 1–3 emissions indicated in GHG Protocols, HORIBA provides
solutions that contribute to reduce CO2 emissions from customer products(Scope 4 perspective).

HORIBA Sustainability organization chart

HORIBA Corporate Philosophy

Solving social issues through business activities in Three Fields• Define HORIBA's unique products contribute to environmental improvement,
and actively deploy them throughout the world.

Corporate philosophy and sustainability

The HORIBA has set forth the HORIBA Corporate
Philosophy under our corporate motto Joy and Fun. It
expresses our basic position on improving corporate value
in four areas: business operations, customer
responsiveness, responsibility to shareholders andinvestors, and HORIBARIANs.
The HORIBA Corporate Philosophy is the foundation of oursustainability policy. Our basic philosophy is to contribute to
the realization of a sustainable society including thepreservation of the global environment and resources,
ensuring good health for people, improving the safety andconvenience of society, and the progress of science andtechnology. As a analytical and measurement solution
provider, we aim to achieve this through business activities
focused on analytical and measurement technologies for
global markets in a variety of industries.
Our Code of Ethics outlines eight guiding principles fordoing business. These include respect for human rights andenvironmental issues.
It provides our guidelines for sustainable development as a
global company, and for recognizing the missions and roles
that all HORIBARIANs should play in conducting open andfair corporate activities.
It serves as the foundation for HORIBA's global approach tosustainability.

Achieving a sustainable society through HORIBA products and solutions

Progress/Reporting2

Contribute to achieve sustainable operations
2050

Group
companies
in JapanGroup
companies
outside Japan

Carbon neutral• Introduce renewable energy at each site worldwide, anddirectly reduce greenhouse gas emissions (Scope 1, 2).
• Identify emissions in supply chain and set targets for
reduction (Scope 3).

ESG Workshops
Place for discussion
working-level member• Place to learn about trends in sustainability• Share information within the company, conduct
learning opportunities, and take practical action• Held once a month, in principle

HORIBA Group
Sustainability System
A place for global consultationand information sharing• Representatives from Group companies
around the world participate• Sustainability initiatives discussed• Build sustainable supply chain systems that take into
account human rights and biodiversity.

Interim goal 42% reduction in CO2 emissions by 2032 (Scope 1, 2)
CO2 removal

2032 CO2 emissions(compared to 2022)

32,24742% reduction(Scope 1, 2)

1.5℃ target2022

3

CO2 emissions

55,599CO2 emissions（t-CO2e）

Vision

2032

2050“Measurement × Education”― Passing on our dreams and the fun of science and technology to the next generation
Social contribution in the field of science and technology ・Over 100 activities per year ・Over 4,500 participants（in more than 10 countries）• Developing activities tailored to each generation (primary and secondary
education).
• Develop social contribution activities at each site around the world that arerooted in that region.
• Accelerate partnerships between industry, academia, government, and civilorganizations to solve social issues with measurement technology.

Web Link
Click!

HORIBA Report 2023-2024

40

Financial strategy

Financial strategy
Looking back over our previous
Mid-Long Term Management Plan, MLMAP2023

HORIBA's basic financial strategy

We achieved sales of 290.5 billion yen, operating income of 47.2 billion yen, and net income attributable to HORIBA Ltd.'s
shareholders of 40.3 billion yen for the period of December 2023, which was the final fiscal year of our MLMAP2023. All set
new records, and ROE reached 15.4%.
The background for these results was that, although capital investments by semiconductor manufacturers were in an
adjustment phase, the Semiconductor Segment maintained high sales, and an upswing in the Automotive andMedical-Diagnosis Segments returned them profitable.
Moreover, net income attributable to HORIBA Ltd.'s shareholders increased significantly due to extraordinary profits from sale ofbusiness.
MLMAP2023 as a whole was heavily affected by the global COVID-19 pandemic, which broke out in 2020, the second year of
the plan. And the stagnation in business activities caused a temporary decline in business performance. However, we
continued to actively invest in future growth, with capital investments such as the construction of new sites to enhance local
functions in China, a new office building for HORIBA Techno Service, Co., Ltd., and a new plant for HORIBA FuelCon GmbH inGermany. We also acquired Tethys Instruments SAS in France and Process Instruments Inc. in the USA.
Meanwhile, supported by stable business earnings, especially Semiconductor Segment, we generated operating cash flows of
144.7 billion yen over a five-year period, resulting in free cash flows of 85.6 billion yen for the period covered by MLMAP2023.

Net income and Return On Equity (ROE)

Cash Flows
Operating cash flow

Investment cash flow

Net income attributable to
HORIBA Ltd.'s shareholders (left)

FCF（billion yen）

（billion yen）

40.0

40.0

20.0

20.6

18.2

15.4

9.3

10.0

15.0

Major investments
during MLMAP2023

2021

2022

12.0
10.0

21.3

7.6

8.0

15.4

5.0

2.0

0

0

2019

2023

2020

2021

2022

2023

• New Chinese base

• New office for HORIBA Techno Service Co., Ltd.

• Acquired BeXema GmbH (Germany)• New factory for HORIBA India Private Ltd.

• Acquired Tocadero Analytics AG (Germany)• Acquired Tethys Instruments SAS (France)• New facility for HORIBA FuelCon GmbH (Germany) • Acquired MedTest Holdings, Inc. (U.S.)

01

We conduct proactive
investment, which we expect tolead to future corporate value.
Additionally, each groupcompany and business field sets
and manages its own capitalefficiency targets to maximize
HORIBA's corporate value.

Financing andshareholder returns

Cash Flows

Improve capital efficiency tomaximize corporate value

Businessmanagement

Business
operations basedon balanced
management

Flow of cash

Stable financial baseContinual
investment
from a long-term
perspective

We have obtained an “A” rating from
Rating and Investment Information, Inc.
and an “A+” from the Japan Credit
Rating Agency, Ltd. for our 5th and 6th
unsecured corporate bonds with stable
cash flow.

Shareholder Return
Point

02

Generating profit
by providing
high-value-added
solutions globally

Maintain high ROE
As stated in MLMAP2028, HORIBA aims
to achieve an ROE of 12% or more. ROE
is one of our most important management
KPI.

• Acquired Process Instruments, Inc. (U.S.)*Company names are those at time of acquisition.

Actions to improve asset efficiency
Part of our actions during MLMAP2023 focused on improving asset efficiency using an unique index we call HORIBA Premium
Value, which combines the concept of Operating Income and Weighted Average Cost of Capital (WACC).
Since introducing it in 2017, we have actively incorporated it into our process KPIs for organizational management, such as
budgeting, monitoring, and performance evaluations. We have also worked to raise awareness of capital costs within thecompany by actively introducing these concepts in our employees through human asset training.
On the other hand, we believe we have still room to improve asset efficiency, as inventory levels have been rising recently, partly
due to the semiconductor market.
In our Mid-Long Term Management Plan, MLMAP2028, we set a target of at least 12% ROE.
We aim to maintain capital profitability of 12% ROE or more by growing our business over the five years to 2028, including
through new businesses creation.
To achieve this target, we will improve capital efficiency and make more effective use of HORIBA Premium Value.

Point

03

Shareholder return linked to earnings growth
Approximately 30% of consolidated net income is returned to shareholders
through dividends, while ensuring management stability and equity capitalfor aggressive business development.
In addition, we perform timely and proper returns to shareholders throughspecial dividends and share buybacks, while taking into account investment
opportunities and financial conditions.

6.0

13.1

4.0

-20.0

2020

14.0

10.0
-10.0

2019

15.4

9.3

20.0

0

16.0

11.2

25.0

14.2

（%）

40.3

34.0

30.0

23.2

Point

Return On Equity (ROE)(right)

35.0

30.0

Basic concept behind financial strategy

Approach to continual investment
Approach to M&A

Investment in R&D

Capital expenditure

We believe that continual R&D investment is
the source of our competitiveness. So we aim
to invest about 10% of our sales in R&D.
We maintained investments even during
recessions, which has allowed us to increase
market share when demand has recovered.

We invest for the future from a medium- tolong-term perspective, without regard to theshort-term state of asset efficiency.
In recent years, we have continued to actively
invest so as to respond to changes in themarket environment.

Based on our long-term vision, we acquire
entities with unique technologies.
We then use these technologies tocomplement, or create potential synergies
with HORIBA's technology portfolio.

Asset efficiency index tree
Formula

HORIBA Premium Value=

Utilization

Cost of capital*1

Value Driver
Net sales

BudgetーOperating income

Cost ofsales

Working
capital

SG&A*²

Fixed
assets

Improving corporate value
ROE（Return On Equity）（Price Earnings Ratio）● Management conscious of capital cost

● Cash generation by implementing● Execution of return policy

41

PER

business strategy

PBR（Price Book-value Ratio）

New sales channel
development
Performance
evaluation

Execution

New product launch

Inventory optimization

Examplesof activity
targets

Lead time reduction
Early collection of
accounts receivable*1 Cost of capital: Invested capital × In-house rate of cost of capital.
We apply an original benchmark that is based on HORIBA's WACC and comparable with operating income in connection with our cost of a capital target.
Currently, evaluation is conducted by applying the same rate to all regions and businesses and monitoring degrees of improvement.
*² SG&A: Selling, general and administrative expenses

HORIBA Report 2023-2024

42

Financial strategy

Financial strategy

Cash allocation

Global management respecting local operation

By achieving the growth to which we have committed ourselves in MLMAP2028, we plan to generate an operating cash flow of
400 billion yen over a five-year period, before deductions for R&D investments.
To accelerate business development (including new businesses) in the Three Fields identified in MLMAP2028, we will promptly
execute R&D investments, capital investments, and strategic investments that contribute to growth, at the most appropriate
time.
Meanwhile, we will implement timely and proper returns to shareholders based on a dividend payout ratio of 30% through a
combination of share buybacks and other measures.
To achieve this, we will continue striving to build a robust financial structure.

HORIBA's global operations respect the independence of local business operation.
Therefore, it is important for local management to understand HORIBA's philosophy, policies, and culture as they carry out
operations.
HORIBA actively promotes communication between headquarters and the management of our overseas locations primarily
through global meetings (Global Strategy
Meeting/Global Budget Meeting) held twice a year.
HORIBA's Global Matrix Management
In 2023, we continued to hold meetings in a hybrid
format that blended real-world and online
Functional management
Plan and execute strategies
interactions, while increasing opportunities forface-to-face dialogue.
Energy & Environment
Production and services
In preparation for conducting operations in the Three
Bio & Healthcare
Distribution
Fields set forth in MLMAP2028, HORIBA's next
generation of leaders, and core members in each
R&D
Materials & Semiconductor
field business, gathered with senior management
Regional control
from Japan and overseas to take part in discussions
about MLMAP2028.
Japan
Moreover, in the finance department, all CFOs atoverseas locations are people from that country or
region. And we hold a global conference, known as
Asia
the International Controllers' Meeting, which brings
together the CFOs of each company.
These meetings strengthen the network of global
Americasleaders from our Three Fields and each function who
share HORIBA's philosophy, and support our global
operations.
EuropeR&D investment

130.0

Detail（87.5）

2024–2028
Operating CF
before R&D

Approx. 7% vs Sales
GrowthInvestment

Facility,
Strategic Investment

140.0

400.0

Dividend

Cash reserves

68.0（33.3）

60.0
+

80.0

(Dividend payout ratio: Approx. 30%)
Shareholder
returnetc.

RegularInvestment

Strategic
Investment（59.1）（232.3）（billion yen）

Including
20.0 billion yen
for new factoryin Fukuchiyama

Retained Timely and properly
earnings + shareholder return etc.

Global cash management

Figures in parenthesis are results for MLMAP2023 (2019–2023)

Shareholder return policy
Starting from FY2024, we changed our shareholder return policy to “targeting a dividend payout ratio at 30% of net income
attributable to HORIBA, Ltd.ʼs shareholders, while special dividend and share buybacks will be executed timely and properly,
taking into account investment opportunities, cash flow situation, and other factors.”
At the same time, we announced that we would complete a share buyback of up to 5 billion yen by the end of April 2024. Thiswas completed as planned.
Our previous policy called for “targeting a total shareholder return ratio (total of dividends and share buybacks) at 30% of net
income attributable to HORIBA, Ltd.ʼs shareholders”. The revision to our Shareholder Return Policy changes this to make itpossible to provide a timely and proper return to shareholders.
For the next five years leading up to 2028, we plan to return Approx. 68 billion yen in regular cash dividends.
Based on the new shareholder return policy, we will also consider implementing special dividends and share buybacks, andimplement it when this is determined to be necessary.
Retained
Earnings

Up to 2023

Special dividends
and share buybacks
Dividend

30% ofnet income
attributable to
HORIBA, Ltd.'s
shareholders

43

From 2024 on

Shareholder return policy
until FY2023

Shareholder return policy
from FY2024 onward

Dividend payment +Share buyback = 30% of
Consolidated net income
attributable to HORIBA, Ltd.’sshareholders to be targeted• Dividend payment = 30% of net income
attributable to HORIBA, Ltd.’s shareholders to be targeted• Execute special dividend and sharebuybacks timely and properly,
considering investment opportunities
and the cash flow situation.

Approximately 70% of HORIBA's sales, and several our development and production facilities, are located outside of Japan.
We have established regional headquarters in the Americas, Europe, the United Kingdom, and China with funds management
functions for each currency. By promoting cash pooling, they also help to reduce risks like those related to currency exchange,and efficiently utilize surplus funds.
For the past few years, the interest rates have risen while loan has increased due to active investment in overseas groupcompanies.
So, to save outflows of interest payments, we have promoted the reduction of external loan through the internal financing
utilizing regional headquarters.
Under MLMAP2028, we plan to aggressively invest in growing our businesses in our Three Fields.
As we implement these initiatives, we will continue to utilize our regional headquarters to further improve capital efficiency.
Global cash management system

GBP
United Kingdom

EUR

CNY

USD

EuropeChina

Americas

HORIBA Report 2023-2024

44

Corporate governanceCorporate governance structure diagram

Corporate governance

General meeting of shareholders
Appoint/Dismiss

Reply
Consult

Basic policy on corporate governance3

Based on “Open and Fair”, which has been one of the important spirits for HORIBA, HORIBA has pledged to (1)establish an organizational structure that promptly responds to changes in the business environment, (2) strengthen its
management oversight functions, and (3) enhance compliance-related arrangements. These objectives have the aim ofestablishing a world-class governance structure. At the same time, HORIBA will be committed to establishing good
relationships with all stakeholders, including owners (shareholders), customers, employees, and local communities.
In addition to proper information disclosure, we seek to promote constructive dialogue with our owners (shareholders),
contributing to our sustainable growth and medium-to long-term improvement in corporate value.

Initiatives to strengthen corporate governance
Since its founding in 1953, HORIBA, Ltd. has appointed Directors (Non-executive) and Outside Audit & Supervisory Board
Members to avoid management with an inward-looking bias. Through such efforts, HORIBA, Ltd. has worked to strengthen ourframework for transparent, fair, prompt, and decisive decision-making for sound corporate management.
1953〜1970

Corporate
Motto,
Corporate
Philosophy,
Code of
Conduct,
Policies,
etc.

Governanceframework

1970〜1990

1990〜2000

1978 -

2000〜2010

Created Corporate Motto:“Joy and Fun”

1988 Created Corporate
Principle and Action
Guidelines

2001 Created HORIBA
Corporate Philosophy

2003 Created
Code of Ethics

1953 Appointed Directors (Non-executive)
and Outside Audit & Supervisory
Board Members from the time
the company was established1997 Began Global Management Meetings*
which became the foundation
for promoting matrix management

2010〜20201998 Introduced corporate officer system(Separate roles of supervision andexecution to promote smoothand flexible operations)2009 Abolished retirement allowance system for directors,
and introduced stock compensation-type stock options

Directornomination/
remuneration

Dialoguewith owners(shareholders)2007 Introduced earnings-based
remuneration system tied to
the net income for HORIBA, Ltd.
1971 Listed in the second sectionof the Osaka Stock
Exchange and on the Kyoto
Stock Exchange

2013 Changed the index for earningsbased remuneration fromnet income for HORIBA, Ltd.,to consolidated net income

1982 Listed in the first sectionof both the Tokyo Stock
Exchange and the Osaka
Stock Exchange

1974 Announced the policy to pay
an annual dividend of 30%
of HORIBA, Ltd. net income
in five-year business plan

Board of Directors(Directors)*Outline and composition explained below*Outline and composition explained below

ReportReport,etc.

2016 Began evaluating
effectiveness ofBoard of Directors

Group
Risk Control
Committee Promote
Sustainability
Committee

2024 【Revision of Shareholder Return Policy】“Targeting a dividend payout ratio at 30% of net income attributable to owners of parent,
while special dividend and share buybacks will be executed timely and properly, taking
into account investment opportunities, cash flow situation and other factors”

Audit

Financial
audit

Coordinate

Select/Dismiss/Supervise

Management
meeting, etc.

Group CEOGroup COO
President
Report, etc.

Internal audit
department

Report
Audit

Supervise/
Direct business execution

Corporate oﬃcers/
Division managers

ReportReport, etc.

Departments executing
operations of HORIBA, Ltd.

Initiate/
PromoteIMS* Promotion
division

Direct/Commission business execution

Support/Guide Group companies inside/outside Japan

Report, etc.

Compliance
Committee

Standardsbased audits

Quality, Environmental,
Occupational Health& Safety,
Quality of medical
equipment,
Business continuity
management* IMS:Integrated Management System

Joy and Fun/
Code of Ethics: HORIBA Corporate Philosophy:
Open and Fair

Overview and Composition of Board of Directors,
Audit & Supervisory Board, and Nomination and Remuneration
Committee (After Ordinary General Meeting of Shareholders on March 23, 2024)

Overview/
Main agenda

Audit &

Men

Women Chairperson

Nomination and

1 Board of Directors

2 Supervisory Board

FY 2023：Held 12 times

FY 2023：Held 14 times

FY 2023：Held 7 times

Board of Directors consists of a small group ofpeople to makes decisions on important matters,
and supervise the execution of business. It engages
in active discussion and rapid decision-making.

Cooperates with independent auditors, Internal
audit department, and Directors (Non-executive)
to audit and monitor business execution in an
objective and appropriate manner.

Nomination and Remuneration Committee strives toensure objectivity and transparency indecision-making procedures related to nomination ofcandidates for director and remuneration of directors.

Main items on agenda• Investment projects• Sustainability reports• Resolutions on appointment andremuneration of directors etc.
• Resolutions on dividends• Financing• Report of state of group company
management

2022 Introduced a new stock-based remuneration
system which distributes transfer-restricted
stock and post-delivery stock as compensationin lieu of stock compensation-type stock options

2005 2013 Conducted first【Revision of Shareholder Return Policy】“Targeting a total shareholder return ratio
overseas IR
roadshow in France (total of dividends and share buybacks) at 30%of net income attributable to owners of parent.”

Coordinate

GlobalManagement
Meeting

2022 Appointed firstforeign director

2021 Established Nomination
and Remuneration Committee*Outline and composition explained below

Independent
auditor

Coordinate

Business execution

2024 Revised Corporate Principle
and Action Guidelines,
and created “Our Future”(Vision, Mission, Values)
2016 Appointed first female director,
and increased number of Directors(Non-executive) to three

Audit

Appoint/Dismiss

Coordinate

Internal
control

2020〜*Global Management Meeting: A meeting which brings together executives and business managers from Group companies in Japan and overseas to formulate andpromote HORIBA's management and business strategies, and to discuss our Mid-Long Term Management Plan and annual budget.

45

Nomination andRemuneration
Committee

2022 Revised HORIBA
Corporate Philosophy(Added items related tosustainability, etc.)

2021 Revised and expanded
Code of Ethics(Deployed worldwide,
added ESG perspective)

2014 Appointed firstfemale corporate officer
through internal promotion

1

Appoint/Dismiss

Audit &
2 Supervisory Board(Auditors)

Main items on agenda• Auditing policies and plans• Results of internal audits• Nomination of candidates for the Audit& Supervisory Board Member• Reports on cooperation with
Independent auditor• Deliberation and verification ofresolutions of Board of Directors• Reports on audits of locations
inside/outside Japan

3 Remuneration
Committee

Main items on agenda• Nomination of candidates for director• Skill matrix• Director remuneration system• Individual remuneration

Directors(Executive)

5

Directors(Non-executive)

3

Audit & Supervisory
Board Member(Standing Auditor)
Outside Audit &Supervisory
Board Members
Ratio of Directors(Non-executive) or
Outside Audit & Supervisory
Board Members

1

1

ー

2

2

ー

37.5%

(Ratio of Directors(Non-executive))

ー

2

ー

3

66.6%

(Ratio of Outside Audit &Supervisory Board Members)

60.0%(Ratio of outside Nomination and Remuneration
Committee members who is Directors(Non-executive))

HORIBA Report 2023-2024

46

Corporate governanceCorporate governanceItems related to director nomination/remuneration

Efforts to enhance the functions of the Board of Directors

Skill matrix (After Ordinary General Meeting of Shareholders on March 23, 2024)

HORIBA, Ltd.'s Board of Directors is composed of directors with a good balance of knowledge, experience, and abilities in various fields
related to business management, both inside and outside the company. It emphasizes diversity and appropriate number of members to fulfill
its roles and responsibilities promptly and effectively.
This skills matrix summarizes the knowledge, insight, and expertise required of the Directors and Audit and Supervisory Board Members
responsible for managing HORIBA and indicates the particular strengths of each. HORIBA sees it as one of the means of selecting candidates
for Directors and Audit and Supervisory Board Members in order to achieve further business growth and enhance our corporate value.
Knowledge and insight considered
to be particularly importantby HORIBA, Ltd.

Expertise in HORIBA's
Three Fields of focus for achieving“Our Future”

Corporate
Management

Technology

Governance

Energy &Environment

○

○

○

Name and position

Atsushi Horiba

Chairman & Group CEO

Executive Vice Chairman & Group COO Juichi Saito○

President ＆ COO○

Masayuki Adachi

Director

Jai Hakhu○

Director

Hideyuki Koishi○○

Materials &Semiconductor

Doctor ofEngineering

○
○
○

○

○

○

Director (Non-executive)

Tomoko Tanabe

○

○

○

Medical Doctor

Audit & Supervisory Board
Member (Standing Auditor)

Hitoshi Motokawa○

Outside Audit & Supervisory
Board Member

Keiji Yamada○

Outside Audit & Supervisory
Board Member

Sayoko Kawamoto○

Remuneration for Directors

Remuneration for Directors at HORIBA, Ltd. is aimed at helping to sustainably improve corporate value over the long term. The remuneration system islinked to shareholder profits, and is designed to provide a level of remuneration that will attract top managerial talent from both inside and outside
Japan.
1 Base remuneration (fixed-amount salary etc.),
Remuneration for Directors at HORIBA, Ltd. consists of three components: ■2 Earnings-based remuneration linked to the earnings results of each fiscal year, and ■3 Restricted Share-Based Remuneration Plan and Restricted■
Stock Unit Remuneration Plan linked to medium-to long-term earnings performance.
We set the ratio of each remuneration based on the maximum limits of remuneration determined by vote at the general meeting of shareholders.
Remuneration for Directors (Non-executive), however, consists strictly of base remuneration (fixed-amount salary etc.), that, given the nature of theirassignment, is not linked to earnings performance.
Based on the determination policy established by the Board of Directors, We determine the individual amount of remuneration for each director within
the limit set at the General Meeting of Shareholders according to their position and the scope of their role etc..
We also strive to improve the objectivity and transparency of decision-making procedures for determining remuneration through voluntary deliberation
and reports from the Nomination and Remuneration Committee, the majority of whose members are independent outside directors.
Breakdown of remuneration for directors(excluding Directors (Non-executive))

Earnings-based
remuneration

3
1

Stock-based remuneration(Restricted Share-Based Remuneration Plan
and Restricted Stock Unit Remuneration Plan)

Key Point
Linked toshare priceBase remuneration(fixed-amount salary etc.)

Performance47

1 Base remuneration

3 Stock-based
remuneration

2

10%

Below
average

1

Excellent

4

7
Dialogue with owners (shareholders) and investors

Note: 1. All directors have the necessary international experience required for HORIBA's global operations. 2. HORIBA, Ltd. reviews each item as is appropriate based on
the external environment and company situation. 3. Governance ensures transparency in management, and targets skills in finance, accounting, and law, which are vitalfor appropriate disclosure of information to stakeholders.

The index is net income
attributable to HORIBA,
Ltd.ʼs shareholders, and islinked to the source ofshareholder dividends

6

6

Does the Board of Directors supervise
the management and directors effectively
from an independent and objective standpoint
as a major aspect of its roles and responsibilities?

Good

Fumihiko Matsuda(Restricted Share-BasedRemuneration Plan
and Restricted
Stock Unit
Remuneration Plan)

5

Excellent

Good

Attorneyat Law

Director (Non-executive)

Key Point

7

Excellent

Does the Board of Directors establish
an environment where it supports
the risk-taking by the senior management?

Doctor ofEngineering

Doctor ofMedicine

Remuneration

Does the Board of Directors
appropriately engage in setting
the broad direction of corporate strategy?

○○

System for director remuneration linked toshareholder profits (Concept)(The roles and responsibilities of the Board of Directors as described in General Principle No. 4 of the Japan’s Corporate Governance Code)

Good

○

○

In 2016 HORIBA, Ltd. introduced evaluations of the effectiveness of the Board of Directors.
At present, we conduct surveys of the Directors and Audit & Supervisory Board Members, concerning the effectiveness of theBoard of Directors with respect to our Corporate Governance Code and other policies. We then compile, analyze, and evaluate
the results, and report them to the Board of Directors. The Board of Directors then uses this report as a basis for discussion
and discourse about future initiatives.
Here is the summary of the results of the evaluation of the effectiveness of the Board of Directors in FY2023.
Results of the effectiveness of the Board of Directors

Qualifications /
Ph.D.

○

○

Haruyuki Toyama

Director (Non-executive)

Bio &Healthcare

Evaluating the effectiveness of the Board of Directors(fixed-amount salary etc.)

Ratio ofremuneration
for the directors
in FY 2023

13%

Earnings-based
2 remuneration

Dialogue with owners (shareholders) and investors in FY2023
Meeting

Target audience

Generalmeeting of Shareholders
shareholders

Primary
overseers

Other

1

President,
etc.

The general meeting of shareholders is held on Saturday
every year so that many shareholders can participate. And
after the shareholder meeting has concluded, the President
reports on various topics to deepen shareholder
understanding of HORIBA's business.
In addition, since 2021, we have introduced virtual
shareholder meetings which utilize a hybrid format thatallows shareholders who cannot make it to the venue toview the proceedings as a livestream.

4

President,
etc.

HORIBA holds a financial result briefing every quarter, andpublishes the information on our website. When weformulate our Mid-Long Term Management Plan, we also
try to explain our management strategies and plans in waysthat are easy to understand.

IR Dept.,
etc.

We proactively visit institutional investors to explain ourmanagement policies and business performance. We also
participate in investor forums hosted by securities
companies, and briefings for individual investors.

Times held

Financialresults
briefing

Institutional
investors in Japan

Interviews
withinvestors

Institutional investors
Visitations(within Japan/overseas) and individual
Analysts
interviews:(within Japan/overseas)
Approx.
Individual investors
300 times

Philosophy behind cross-shareholdings(Applies to
7 executive directors)

Based on details of Securities
Report filed on March 25, 2024.

HORIBA, Ltd. seeks to promote constructive dialogue with all shareholders towards the goal of sustainable growth andmedium-to long-term improvement in corporate value. We make efforts to clearly explain our management policy, financial
condition, and corporate culture to our shareholders and ask for their understanding and continued support as fans of HORIBA.
We also strive to disclose information based on the perspective of “fair disclosure,” so that various stakeholders have access tothe same quality of information. Moreover, we share the opinions obtained through dialog with stakeholders and shareholders
as feedback to the representative directors, directors, and managerial staff when appropriate. And these are used to improve
our management.

77%

HORIBA believes that collaboration with other companies is necessary for us to grow sustainably. To that end, we decide whatshares to hold based on comprehensive consideration of matters including business strategy, the strengthening of relationships
with business partners, and the maintenance of relationships with local communities.
Every year, the Board of Directors confirms whether the amount of cross-shareholdings is appropriate. The Board of Directors
also consider whether individual shares are appropriate to hold, by confirming whether they are fit for purpose, and whether the
benefits and risks associated with them are commensurate with the cost of capital.
When HORIBA recognizes that shares are inappropriate for retention, we consider taking measures such as share curtailment.

HORIBA Report 2023-2024

48

Corporate governance

List of Management Members (as of March 23, 2024)
Risk management
Risk management system

HORIBA has created a risk management structure known as theThree Lines Model. The first line is HORIBA's five segments (field
departments), which provides active risk management. The
second line is our management departments, such as the
Corporate Control Dept., Accounting Dept., Legal Affairs Dept.,
and Administration Dept., which provide risk monitoring
capabilities. The third line is Group Internal Audit department,
which provide independent verification capabilities.
Our field departments and management departments are awareof the individual business risks both inside and outside Japanthrough its operations. When appropriate, they report importantmatters at the Board of Directors, Operations meeting,Management meeting, and the Global Management Meeting
which brings together the management members of Group
companies inside/outside Japan. This ensures that senior
management can get information and make management
decisions in a timely manner.
In addition, the Internal Audit department periodically monitors
the effectiveness of the risk management system, and the way
the field departments and management departments arehandling risks, from an independent standpoint. Whennecessary, it reports its findings to the Board of Directors andAudit and Supervisory Board.
HORIBA has also formulated rules for group risk management
to strengthen our risk management system. These rules classify
risks into the following categories: risks for each segment, risks
related to business, risks related to development andmanufacturing, and risks related to finance. They also establish
the management system for these risks, and the system of
responsibility in the event of a crisis.
HORIBA has also established our HORIBA Group Risk Control
Committee, which includes our major group companies inJapan.

Board of Directors

Risk Management System ーThree Lines Model
SubmitBoard of Directors,
Operations meeting,Management meeting,Global Management Meeting

Third line
Independent verification capabilities
Group Internal Audit department(Internal Audit)

Second line

Monitoring

Risk monitoring capabilities
Management departments
such as the Corporate Control Dept.,
Accounting Dept., Legal Affairs Dept.,
and Administration Dept.

First line

Monitoring

Primary risk management
5 segments (field departments)

Risk

Business and other risks

To identify critical risks, our field and management departments selected individual risks centered around the risk items
specified in the Group risk management regulations. They scored each risk on a three-point scale according to its likelihood of
occurrence and the impact on operations.
Then, they created a risk map for HORIBA by organizing the risk items they had scored. Countermeasures were subsequently
implemented following discussion and approval by the HORIBA Group Risk Management Committee.
The areas of the risk map shown in blue (■) indicate the risk items that have been identified as critical risks.
These critical risks are broadly divided into “risks for each segment” and “risks for the entire company.” The critical risks facing
HORIBA are listed in the table below.
HORIBA, Ltd. has also disclosed the details of these risks in our Securities Report.
Critical risks facing the entire company

Risk Map
Critical risk

Degree of impact on operations

3

2

1

0

1

2

Likelihood of occurrence

49

3• Risks related to climate• Risks posed by changes
changein performance andfinancial position due to• Risks related to businessacquisitions and alliancesand human rights•
Risk of impairment loss for• Risks related to information
fixed assets
security• Risks related to• Risks related to currency
pandemics
exchange• Risks related to theinternational situation• Risk of damage to facility
and equipment due tonatural disasters, andsubsequent delays indeliveryPlease see our website for more
information about our Securities Report(Japanese only).

Web Link

Atsushi Horiba

Juichi Saito

Masayuki Adachi

Chairman & Group CEO

Executive Vice Chairman & Group COO

President & COO

In 1971, Atsushi Horiba joined OLSON-HORIBA
Incorporated, a U.S. joint venture of HORIBA, Ltd.
In 1977, he returned to HORIBA, Ltd. after
receiving a masterʼs degree in Electronic
Engineering from the University of California, Irvine
Graduate School. He was appointed President in
1992, and has concurrently served as Chairman,
President and CEO since 2005. In 2018, he wasappointed Chairman and Group CEO.
He has been invited to serve as a member ofcommittees such as the Ministry of Economy,
Trade and Industry's Industrial Structure Council
and Manufacturing Industry Committee, theCabinet Office's Advisory Panel on the Modalities
of Government and Administration. He has also
served as Chairman of the Japan Electric
Measuring Instruments Manufacturers' Association
and President of the Japan Analytical Instruments
Manufacturers' Association. At present, hedevotes himself to stimulating industry and the
local economy by serving as Vice Chairman of the
Kansai Economic Federation, Vice Chairman of
the Kyoto Chamber of Commerce and Industry,
and Chairman of the Kansai Science City
Construction Promotion Conference.
He was awarded the L'Ordre National du Mérite
(Officier) in 1998 and the L'Ordre National de la
Légion d'Honneur (Chevalier) in 2010 by the
French government, in recognition of his
contributions to the development of science,technology, and industry in France.
He was also awarded a Doctor Honoris Causa
degree by the University of Montpellier, France in2015 and received the Order of the Rising Sun,
Gold Rays with Neck Ribbon in 2019 from theJapanese government.

Juichi Saito joined HORIBA, Ltd. in 1982.
After two years in R&D for the Automotive
Measurement Systems Division, he wastransferred to Sunnyvale California in 1984, where
he was in-charge of sales and service for
Semiconductor and Automotive products.
He was then stationed in Ann Arbor MI for
Automotive Project Management and Irvine CA
experienced for the Scientific and Process &Environmental Products Planning. Upon his returnto Japan in 1992, he served as Department
Manager of Automotive R&D.
In 1998, he moved back to the U.S. and become
President of HORIBA Instruments Incorporated(U.S.) in 2002.
In 2004, he moved to STEC (Now HORIBA STEC
Co., Ltd.), where he lead Group's Semiconductor
Segment.In 2010, he returned to HORIBA, Ltd.,
where he was appointed Executive Vice President
in 2013, and Executive Vice Chairman and GroupCOO in 2018.
In addition, he serves as Chairman of the Japan
Electric Measuring Instruments Manufactures
Association and Vice Chairman of the Japan
Scientific Instruments Association, and as
President of the Kyoto Scientific Instruments
Association.

Masayuki Adachi joined HORIBA, Ltd. in 1985.
He worked to develop new products for theAutomotive Measurement Systems Division,
before serving as Department Manager of R&D,
General Manager and Corporate Officer. He thenmoved to the U.S. in 2007 as president of
HORIBA International Corporation (now HORIBA
Instruments Incorporated (the U.S.)). There hewent through the difficulties arising from the Global
Financial Crisis in the U.S.
After returning to Japan in 2011, he wasappointed General Manager of the R&D Division,
which directs the R&D departments of all
segments. He joined the board in 2014, andserved as President of HORIBA Jobin Yvon SAS(now HORIBA FRANCE SAS) and Chair of theManagement Supervisory Committee. He thenbecame Senior Managing Director of HORIBA,
Ltd. in 2016 and has served as President and
COO since 2018.
As President of the Japan Analytic Instruments
Manufacturers' Association, Chairman of Industry
Memberships to Create the Future with RIKEN,
and Fellow of the Society of Automotive Engineers
International, he has contributed to theadvancement of the science and technology
related to analysis and measurement, and to thepromotion of science and technology in general,
as well as industrial and economic development.

Corporate officers(As of April 1, 2024)■ Executive Corporate Officer■ Senior Corporate Oﬃcer

Takashi Nagano

Dan Horiba

Chairman of Management Supervisory Committee,
HORIBA Europe Holding SASU (France)

George Gillespie Executive Chairman of HORIBA MIRA Limited (U.K.)

President of HORIBA STEC Co., Ltd. (Japan)

Hiroo Chihara President of HORIBA Techno Service Co., Ltd.
(Japan)Click!

HORIBA Report 2023-2024

50

List of Management Members

List of Management Members

Directors (Non-executive)

Audit & Supervisory Board members

Jai Hakhu

Hideyuki Koishi

Haruyuki Toyama

Fumihiko Matsuda

Tomoko Tanabe

Hitoshi Motokawa

Keiji Yamada

Sayoko Kawamoto

Director

Director

Director (Non-executive),
Independent Director

Director (Non-executive),
Independent Director

Director (Non-executive),
Independent Director

Audit & Supervisory Board Member(Standing Auditor)

Audit & Supervisory Board Member (Outside)and Independent Auditor

Audit & Supervisory Board Member (Outside)and Independent Auditor

Jai Hakhu built up experience as Vice
President at both Rockwell
International Corporation and Varian
Semiconductor Equipment
Associates Inc. before working as
Corporate Vice President andGeneral Manager at Intel Corporation.
In 2010, he joined HORIBA, Ltd. as
an Executive Corporate Officer. He
has been a Director since 2022. He
has held a number of important
positions in our group companies
outside of Japan, including Chairman& CEO of HORIBA Instruments
Incorporated (U.S.), President of
HORIBA ABX SAS (France), andChairman of HORIBA India Private
Ltd.
He has also worked as President andCEO of R.C. International LLC, a
Chancellors Roundtable Member at
the University of California, Irvine, andon the Board of Directors at both
Montpellier University of Excellence(MUSE) and the University ofMontpellier (UM).
In addition to his extensive
knowledge based on management
experience at global corporations, hehas contributed to various aspects of
HORIBA's global operations in the
United States, France, and India.

Hideyuki Koishi joined STEC Inc.
(now HORIBA STEC Co., Ltd.) in
1985. Having gained experience inSales Division at STEC Inc., and inroles such as Branch Manager in
Taiwan and International Sales
Division Manager, he moved to the
U.S. as Executive Vice President of
STEC Instruments Inc. (the U.S.) in
2006.
After returning to Japan in 2010, he
served as Managing Director andExecutive Vice President of HORIBASTEC before being appointed
President in 2016. He also became
President of HORIBA STEC Korea,
Ltd. that same year. He wasappointed a Corporate Officer of
HORIBA, Ltd. in 2012, a SeniorCorporate Officer in 2014, and a
Director in 2023.
As General Manager of the Group
Strategy Division, he is responsible
for promoting our Mid-Long Term
Management Plan and developing
the growth strategy for the entire
Group.
From 2016 to 2023, he contributed
to the sustainable growth of the
global electronics design andmanufacturing supply chain as amember of the SEMI Japan Regional
Advisory Board.

Haruyuki Toyama joined the Bank ofJapan in April 1982. He graduatedfrom the University of California
School of Law (LL.M.) in 1988 andbecame a Visiting Scholar at Harvard
Law School in 1989. He served as
the Alternate Executive Director forJapan of the International Monetary
Fund (IMF) from 2000, andsubsequently held a number of otherpositions at the Bank of Japan,
including General Manager of the
Okayama Branch, Associate
Director-General of the Payment andSettlement Systems Department,
Director-General of the Financial
Markets Department, General
Manager for the Americas, andDirector-General of the International
Department.
During his tenure at the Bank, he wasinvolved in a number of international
activities, including secondments to
the U.S. Federal Reserve Board (FRB)
and the European Commission (EC),and serving as a member of the Bankfor International Settlements (BIS)
Committee on Payments and Market
Infrastructure and Markets
Committee. He also served as alecturer on Financial Laws at theGraduate School of Hokkaido
University.
After leaving the Bank of Japan in
2014, he registered as a lawyer in2015.From 2015 through 2023, heserved as an Outside Director of
Hitachi Construction Machinery Co.,Ltd.
He joined the Iwata Godo law office in2019 and brings a wealth ofknowledge and experience in the fieldof international finance.
He has been a Non-executive
Director of HORIBA, Ltd. since 2021.

Professor Fumihiko Matsuda
obtained his Ph.D. in medicine from
Kyoto University Graduate School of
Medicine in 1990.After working as an
assistant professor at the Center for
Molecular Biology and Genetics andthe Faculty of Medicine at Kyoto
University, he joined the Centre
National de Génotypage (CNG) in
Evry, France in 1998, as the head ofgene identification.He then received ajoint appointment as a professor at
the Kyoto University Graduate Schoolof Medicine in 2003, and divided his
activities between Kyoto and Paris forfive years as he pursued his researchin genomic medicine through the endof 2007.In 2008, he became thedirector of the Center for Genomic
Medicine at the Kyoto University
Graduate School of Medicine, andsince 2020, has served as principal
assistant to the president of Kyoto
University.
Professor Matsuda has created two
spin-off bio-venture companies,
GenoConcierge Kyoto, Inc. in 2018
and RADDAR-J for Society Inc. in
2020. He serves as a Director (Chief
Advisor) of both companies,
contributing to active collaboration
between academia and industry.
He has been a Non-executive
Director of HORIBA, Ltd. since 2021.
He also devotes himself to cultural
exchange between Japan and France
through involvement in artistic andcultural activities organized by theConsulate General of France.
In recognition of his achievements,
contributions, and efforts to date, hereceived the Chevalier de lʼOrdre
National du Mérite of the French
Republic in 2021.
In January 2023 he was appointed
Representative Director andExecutive Director of the Foundation
Pasteur Japan.

Dr. Tanabe graduated from the Kyoto
Prefectural University of Medicine (KPUM)
in 1996 and became licensed to practice
medicine in Japan.After completing a
one-year internal medicine internship at
the University Hospital at KPUM, shebecame licensed to practice medicine in
the U.S. where she moved in 1997.During
her 12-year stay in the U.S., she engaged
in clinical medicine and medical education
at the Perelman School of Medicine of the
University of Pennsylvania, and taught at
the University of California San Diego
School of Medicine.
Upon her return to Japan, she joined the
Shinyukai Medical Group where she was
first put in charge of women's health at
Oike Clinic in 2009. She became amember of the board at Shinyukai
Holdings in 2010, and in 2018, became
the president of the Kyoto Medical Club.
She is also currently a visiting professor in
the Departments of Physiology andIntegrated Physiology at the Kyoto
Prefectural University of Medicine (KPUM),
deputy director of Oike Clinic, and head of
the Ningen Dock Center. In June 2023,
she also became one of the directors of
the Japan Chapter of the American
College of Physicians.
Dr. Tanabe was appointed an Audit andSupervisory Board Member of HORIBA,
Ltd. in 2020, and has served as a
Non-executive Director since 2023.
Dr. Tanabe focuses on preventative
medicine, and became interested inultra-early prevention during her daily workwith patients in the field of primary medicalcare. She also engages with digitaltransformation in the medical field,
including biometric data monitoring.
Moreover, she became one of the founding
members of the Gender Equality
Promotion Center at the Kyoto Prefectural
University of Medicine in 2010. There, sheworks to build career paths for female
medical researchers and support
childcare, as well as promote collaboration
between industry and academia.

Hitoshi Motokawa joined HORIBA,
Ltd. in 1984.Following a career indepartments related to internationalsales and sales control, he wasappointed Department manager of
the Sales Operation Department in
2004.
In addition to his daily work, he also
passed the examinations to becomea certified Small and Medium
Enterprise Management Consultant
and social insurance and Labor andSocial Security Attorney.
In 2017, he was appointed a JuniorCorporate Officer of HORIBA, Ltd.
From 2018 he served as the General
Manager of the Sales Division, and in
2021 became the General Managerof the Finance and Legal Division
Responsible for Financial Control. In
this role, he is responsible for
performance management of
HORIBA, Ltd. Group companies inJapan.
He has also served as the principalof HORIBA COLLEGE, our in-house
university for passing on skills andknowledge.
He was appointed to serve as an
Audit & Supervisory Board Member inMarch 2024.

Keiji Yamada joined the Ministry ofHome Affairs (now the Ministry ofInternal Affairs and Communications)in 1977.
He retired after serving as Counselorof the Cabinet Legislation Bureau,
Director of the Kyoto Prefecture
General Affairs Department, and Vice
Governor of Kyoto Prefecture.
He served four terms as Governor of
Kyoto Prefecture starting in 2002 andfour terms as President of the
National Governorsʼ Association from2011.
He has been a Professor at the
Department of Interdisciplinary
Studies in Law and Policy, Faculty of
Law and Advisor to the President(present Special Advisor to the
President) at Kyoto Sangyo University
since 2018. He became a member ofthe Board of Directors in 2021.
Mr. Yamada was appointed an Audit
and Supervisory Board Member of
HORIBA, Ltd. in 2020.
He also serves as an outside director
at Kawasaki Kisen Kaisha, Ltd.,TOSE CO., LTD., and Nitto
Pharmaceutical Holdings, Ltd.
He also serves as the President of the
Kyoto Culture Foundation, which
engages in financing andenlightenment activities related to theprotection of cultural properties. It
aims to foster more abundantcreation and development of Kyoto
culture, which has long been at thecore of Japanese culture.

Sayoko Kawamoto joined AMS
Corporation in the year 2000 andnow serves as a Director of thecompany. In 2010, she also becamea Director of Ayaha Corporation.
In 2022, having served as Deputy
General Manager of the General
Affairs Division and Deputy General
Manager of the Business
Management Division, she wasappointed to Vice President andRepresentative Director of thecompany.
Ms. Kawamoto was appointed an
Audit and Supervisory Board Memberof HORIBA, Ltd. in 2023.
She has extensive experience inmanagement of a corporate groupwith various businesses including
retail, manufacturing, real estate,
hotels, and golf courses.
In June 2023 she was appointed a
Director of the Biwako Arts
Foundation. By creating,disseminating, and promoting art andculture, it contributes to the sounddevelopment of local communities
and of a vibrant society that provides
a spiritually enriched lifestyle.
She also serves as Director of the
Kawamoto Education and Welfare
Promotion Association, which aims tofoster the sound development ofyoung people by promoting
education in schools and society, as
well as improving culture andcontributing to the development ofeducational administration andenhancing welfare promotion
activities.

■ Corporate Officers

Stuart Knight
Rajeev Gautam
Yuko Kimura■ Junior Corporate Officers
President of HORIBA UK Limited
President of HORIBA India Private Limited (India)
Chief Director & President of HORIBA INSTRUMENTS (SHANGHAI) CO., LTD.
Chief Director & President of HORIBA (China) Trading Co., Ltd.
Chief Director & President of HORIBA Technology (Suzhou) Co., LTD.

Laurent Fullana

President of HORIBA FRANCE SAS

Arnaud Pradel
President of HORIBA ABX SAS (France)
Hiroshi Nakamura General Manager of R&D Division
Yasuo Yamashita General Manager of General Administration and FinanceTadao Nakamura
Hiroyuki UrabeSal Atzeni

In charge of Process & Environmental businessToshiya Higashino President of HORIBA Instruments Incorporated (U.S.)
Declan AllenManaging Director of HORIBA MIRA Limited (U.K.)
Dale Poole
HORIBA Instruments Incorporated (U.S.)

Kentaro Nishikata

President of HORIBA Advanced Techno Co., Ltd. (Japan)

and Legal Divisions, and Head of the Tokyo Branch

Executive Vice President

President of HORIBA Europe GmbH (Germany)
HORIBA Instruments Incorporated (U.S.)
Executive Vice President

Kazuya Tsurumi

General Manager ofEnergy & Environment Division

Maki Moriguchi

Deputy General Manager ofGeneral Administration Division

Haruhito Mori

Deputy General Manager ofEnergy & Environment Division

Junichi Tajika

Deputy General Manager ofFinance and Legal Division

Masashi Nishimura Corporate Officer at

HORIBA Advanced Techno Co., Ltd. (Japan)

51

HORIBA Report 2023-2024

52

Business overview

Business overview

HORIBA's Five measurement businesses

Five measurementbusinesses

Automotive
Segment(Note: Market share foreach product is
HORIBAʼs estimate.)

Segment

Emissionmeasurement systems

Stack gas analyzers

Global market
Sales
share
composition ratio

Market share
Sales
in Japancomposition ratio

80%
Major products andmarket share of each

Process &Environmental

39%

50%

Driveline test systems
Global market
Sales
share
composition ratio

15%

4%

• Onboard emission
measurement systems• Emission measurement
for in-use vehicles• Engine test systems• Brake test systems• Fuel cell/Electrolyzer
evaluation systems• Battery test systems• Vehicle development
engineering• Testing engineering• Lease andmanagement of R&D
facilities

33%

Medical-Diagnostic
Segment

Share ofsegment sales(For all water
quality analyzers)(For all water
quality analyzers)

40%

37%

• Water quality analysis and examination
systems• Air pollution analyzers• Environmental radiation meters• Process measurement equipment

Segment

Segment

Hematology analyzers

Mass flow controllers

Raman spectrometers

Global market
Sales
share
composition ratio

Global market
Sales
share
composition ratio

7%

68%

60%

86%

30%

28%

Chemical concentration monitors

pH meters

Global market
Sales
share
composition ratio

Market share
Sales
in Japancomposition ratio

80%

12%

50%

7%

• Hematology and CRP analyzers• Hematology analyzers• Immunology analyzers• Clinical chemistry analyzers• Blood glucose analyzers• Reticle/mask particle detection systems• Residual gas analyzers• Vaporizers• Water quality analysis
and examination
systems• Particle-size
distribution analyzers• X-ray fluorescenceanalyzers• Elemental analyzers• Fluorescence
spectroscopy/
fluorescence lifetime
spectroscopy• Optical components;
spectrometers anddetectors• Gratings

Major customers

Automotive and automotive component
manufacturers
Research institutes
Universities/Government agencies

Electric power companies
Government agencies
Manufacturers

Medical testing centers
Small-to medium-sized hospitals
Physicians in private practice

Semiconductor production equipment
manufacturers
Semiconductor device manufacturers

Manufacturers/Research institutions
Universities/Government agencies
Electric power companies

Product applications

Development of new gasoline, diesel,
alternative fuel, and electrified powertrains
Certification and quality control ofcompleted and in-use vehicles
Development engineering

Measurement of drinking water,
wastewater, and gaseous emissions
Monitoring of production process
Research and development

Diagnostic testing
Medical checkups

Controlling flow of gases and liquids,
monitoring cleaning fluid concentrations insemiconductor manufacturing processes
Semiconductor quality control inspections

Research and development
Product quality testing
Criminal forensics

Major risks andopportunities

Changes in emission regulations
Capital spending and R&D investments by
the automotive industry

Changes in environmental regulations bygovernment agencies
Developments in energy efficiency
improvement at factories and power
generation plants

Changes in total healthcare expenditurescaused by changes in population andother factors
Changes in medical insurance systems
in different countries

Capital spending of semiconductor
manufacturers and others in association
with fluctuating demand forsemiconductors
Production trends of manufacturers ofsemiconductor production equipment

Changes in R&D budgets at government
agencies, universities, and research
institutions
Changes in R&D investment and capital
investment for production in the private
sectorEnergy & Environment

HORIBA's Three Fields

Energy & Environment

Bio & Healthcare
Materials & Semiconductor

53

Scientific

Global market
Sales
share
composition ratio

H-1 series of industrial water
quality analyzers
Market sharein Japan

Semiconductor

Energy & Environment
Bio & Healthcare

Materials & Semiconductor

Bio & Healthcare
Materials & Semiconductor

HORIBA Report 2023-2024

54

Business overview

Business overview

HORIBA's Five measurement businesses
HORIBA's business development is centeredaround five measurement businesses:
Automotive, Process & Environmental,
Medical-Diagnostic, Semiconductor, andScientific. In FY2023, although sales tosemiconductor production equipment
manufacturers decreased as the adjustment
phase of capital expenditures continued in thesemiconductor market, the decrease of segment
sales was limited. Meanwhile, sales increased
primarily in the Automotive segment. And
company-wide revenue increased for the thirdyear in a row.
We expect revenue to increase for all segments inthe fiscal year ending December 31, 2024.

Automotive Segment

Providing powerful support for the optimizationof vehicle testing and acceleration of automotive
development

HORIBA contributes monitor global
environmental preservation, as well as
production and quality management processes

HORIBAʼs automotive Emission Measurement Systems (EMS) hold a global market
share of 80%*1 . HORIBA provides manufacturer R&D and quality control units withcomplete testing and measurement solutions. These include test systems forengines, powertrains, brakes, catalytic converters, and batteries, as well as Fuel
Cell/Electrolyzer evaluation analysis systems.
We are also actively developing our Engineering Consultancy & Testing business,
which supports development of next-generation mobility technologies forapplications such as electrified vehicles, autonomous driving, functional safety, andcybersecurity.
*1 HORIBA's estimate

We supply a broad range of analytical and measurement instruments for analyzing air
pollution, water quality, and soil quality.
HORIBA products play an important role in many industries. They enable themeasurement of gases and the monitoring of industrial wastewater in energy andheavy chemical industries like electric power, steel, and petrochemicals. They also
allow for purified water management, and atmospheric control in cleanrooms in thesemiconductor industry, and the monitoring and control of water quality in the
medical, food, and cosmetics sectors.
The analytical and measurement technology we provide contributes to preserve theglobal environment, and leads technological innovation in support of public safety,
security, and health. This is how we are contributing to achieve a sustainable society.

2023 results

2023 results

Sales by business

Sales by region

Americas 13%

ECT*3 business 17%

80.4

290.5

Scientific Segment
270.1

Medical-Diagnostic Segment
Process & Environmental Segment

224.3
210.5
195.3

170.8 170.0
153

27.0

112.8

187
114.0

26.8

57.7
53.3

35.3

200.2
27.1

26.1

25.7

25.6

27.7

119.0

29.9

87.0

47.1

34.5
56.9

38.8

32.6

28.9

26.0 25.3
27.4

26.5

27.0

19.3 19.5

21.0

25.8

17.4
16.7

18.3

16.7

55.0

62.2

32.6
Net sales ofbillion yen
in 2023

Water quality
37%

ClinicalHematology
chemistry,
68%
Blood glucose 23%

Asia
23%

Europe
33%

Asia
24%

In 2023, strong demand related to environmental regulations in each country
drove sales of air pollution analyzers in Europe, process measurement equipment
and water quality measurement systems in the Americas. The led to increased
revenue and profit.
Furthermore, our acquisition of Tethys Instruments in France and Process
Instruments in the U.S. strengthened our technological capabilities in water quality
measurement and industrial process monitoring.
This will allow us to create various high-precision applications, and accelerate thedevelopment of our businesses in emerging countries.
As society strives to achieve carbon neutrality, research and development isunderway to separate and capture the CO2 emitted from factories and power
plants and reuse it as fuel, etc. HORIBA provides gas and water quality
measurement solutions that are critical to this process.

Sales of test reagents increased during 2023 as COVID-19 pandemic restrictions
eased and demand for sample testing at medical laboratories recovered.
Moreover, increased sales of hematology analyzers in Japan and Asia returned thesegment to profitability.
In Japan, we have also introduced a compact 5 Differential Hematology Analyzer tothe market. It both saves space and improved daily operation.
We launched the new version of remote monitoring system, the HORIBAMEDISIDE LINKAGE next. Additional to the original remote access feature, thesystem provides additional features such as Documentation support on operationof the analyzer; i.e. Reagent replacement log, internal QC log.
By delivering rapid and reliable sample testing, we are contributing to reduce theburden on medical personnel.
We are also actively introducing new products in overseas growth markets such as
India, and are working to further expand our business from hematology solution to
immunology and clinical chemistry solution.

Net Sales and operating income

Net Sales and operating income

Net Sales and operating income

Operating income (billion yen)
15.0

20.2

94.0

94.0
80.4
61.2

67.5

40.0

80.4
79.6 81.0
73.3
67.5
63.9
64.2 62.2 7.6 7.7
61.2
55.0
6.4
5.8

Net sales (billion yen)

• Increased sales of test reagents due to a recovery indemand for examinations at medical facilities• Increased sales of hematology analyzers, clinicalchemistry analyzers, and test reagents

Operating income (billion yen)

40.0

3.0
-0.0

Forecast

2023

2024

14

20.0
5.0

2.4

15

16

17

18

19

20

21

31.5

30.0
10.0

4.4

0.0

2014 2015 2016 2017 2018 2019 2020 2021 2022

Japan 21%

Radical changes in investment areas in the automotive industry during the pandemic
led to a significant fall in demand for emission measurement systems which made itdifficult to improve profitability. But in 2023, increased sales of emission
measurement systems in Asia and the Americas, and of our MCT business in
Europe delivered increased profitability.
Although we do not expect the automotive industry to change direction on achievingcarbon neutrality, during that transition period, we need to balance next-generation
investments while also improving the efficiency of internal combustion engines.
HORIBA not only handles exhaust gas regulations in each country, including the new
Euro 7 emission regulations in Europe, but also offers all-around support for needs
related to electrification and autonomous driving.
Demand for electrolyzer evaluation systems is increasing as well, and we will help tobuild a hydrogen energy society.

3.5

55

Americas 22%

Net sales (billion yen)

4.0

40.0

3.0

30.0

Operating income (billion yen)
8.0

22.5

79.6 81.0
63.9

Air pollution
18%

Sales by region

Other 2%• Demand related to environmental regulations remained
strong• Increased sales of water quality measurement equipment
for manufacturing processes

80.0

64.2

Asia
25%

120.0

16.4

73.3

Europe41%

Net sales (billion yen)

24.9

Europe16%

Immunology
7%• Capture demand and increase sales for electrification andhydrogen energy• Expect strong demand in preparation for introduction of
new emissions regulations

31.5

29.7

25.1

Sales by businessJapan 46%

in 2023*2 Mechatronics (MCT): Measurement instruments for vehicles*3 Engineering Consultancy & Testing

36.2

Automotive Segment

Americas 15%

billion yen

Emissionbusiness
55%

MCT*2 business
28%

39.6

*Point of Care Testing (POCT):
A general term for testing performed at locations close to patients, such as private
practitioner offices, diagnostic clinics, hospital wings, and outpatient clinics.

24.9

in 2023

Semiconductor Segment

HORIBA provides instruments and reagents (consumables) used primarily forblood sample testing to the global market for in-vitro diagnostic (IVD) systems.
Our business model for this segment is based on recurring revenues generated
from sales of testing reagents. We aim to ensure stable earnings by expanding
our installed base of medical diagnostic instruments.
In particular, HORIBAʼs strength lies in small and medium-sized hematology
analyzers for point of care testing (POCT)* in private clinics and hospital operatingrooms, as well as small-to medium-sized hospitals and testing centers.

Net sales ofbillion yen

42.0

Contributing to healthy lives through in-vitro
diagnostic systems

Sales by region

Stack gasanalysis33%

Other 12%

Medical-Diagnostic Segment

2023 results

Sales by businessJapan 21%Net sales of

321.0

Net sales by segment (billion yen)

Process & Environmental Segment

1.2-0.6 Forecast
22 23 24

0.0
-1.0

10.0

24.9 3.0
22.5
2.4

20.2
2.0
19.3 19.5
18.3
2.1
16.7 16.7 17.4
16.4
1.9
2.0
1.7
1.6 1.6
1.5
1.0

0.0

Forecast

14

15

16

17

18

19

20

21

22

23

24

2.0

20.0

1.0

10.0

0.0

27.0 27.4 26.5

29.7
25.1 26.0 25.3

32.6

34.5
6.0

25.8
21.0

2.4

4.0

2.8
1.9

1.7

1.8

2.0

1.3
0.1 -0.0

0.0

14

15

16

17

18

-0.4
19 20

21

22

0.6
23

1.0

Forecast

24

0.0
-10.0

HORIBA Report 2023-2024

56

Business overview

Corporate Data

HORIBA's Five measurement businesses

Semiconductor Segment

Corporate Data (as of December 31, 2023)

Scientific Segment
Corporate information
Supporting HORIBA’s core technologies
and pioneering cutting-edge fields

Contributing to yield enhancement and technology innovation in semiconductor
manufacturing processes with HORIBAʼs flow control and measurement technologies
Mass flow controllers, used in the manufacturing process (front-end) of devices such as
semiconductors, are a major product in the Semiconductor segment.
Our mass flow controllers boast leading global market share*, thanks largely to ourcutting-edge flow control technology which contributes to enhanced yield andminiaturization in the semiconductor manufacturing process.
We intend to provide solutions for responding to technological advances in semiconductor
manufacturing processes, while supplying measurement equipment such as chemical
concentration monitors and reticle/mask particle detection systems. This will allow us toestablish an important position in the growing semiconductor industry. *HORIBA's estimate

HORIBAʼs analysis technology began with research and development that lead toJapanʼs first glass electrode pH meter, and has expanded to include gas analysis using
infrared light, elemental analysis using X-rays, and Raman spectroscopy andFluorescence spectroscopy using optical technology. These contribute to R&D activities
at the frontline of scientific technology and help explore the unknown frontiers of science.
HORIBAʼs analyzers are also used widely in industry for forensic science, archaeologicalsurveys, foreign object examination and active ingredient analysis for pharmaceuticals
and foods, and defect analysis for electronic components.
While delivering high-end equipment for research and development, we are also actively
developing products for industrial process monitoring, and supplying measurement
technology to a wide range of fields.

2023 results

2023 results

Gas
analyzers
1%

Sales by region

Particle
detectionsystems etc.
1%

Europe7%

Americas8%Particlecharacterization
11% Water Other Molecular &quality 2% microanalysis
7%
40%

112.8

Japan
19%

Mass flow
controllers 86%

Asia 61%

Elementalanalysis 16%

Europe
19%

Asia
37%

Success in expanding into new customer bases on a global scale, and increased
sales of Raman spectrometers in Asia, led to increased revenue in 2023.
Raman spectrometers have been employed primarily in R&D and Quality Control
applications. For the first time, we are also developing products that apply themto production processes in the fields of chemicals, pharmaceuticals, batteries,and semiconductors.
We will develop dedicated equipment designed specifically for certain
measurement applications such as data analysis, in-situ measurement of reaction
processes during the production process, and final inspection of finishedproducts. Moreover, we will actively deploy solutions for the Life Science, andMaterials & Semiconductor markets.

Net Sales and operating income

Net Sales and operating income

Net sales (billion yen)

Operating income (billion yen)

120.0

119.0
114.0 112.8
42.0

100.0

87.0

80.0

20.0
0.0

28.9
6.4

35.3 38.8

57.7
17.0

56.9

40.5

10.7

15

16

17

18

19

48.0
40.0
32.0

16.0

14.0

20

8.0

21

22

Net sales (billion yen)

National Mutual Insurance Federation ofAgricultural Cooperatives

1,682

3.98

Atsushi Horiba

1,089

2.58

FoundedThe Kyoto Chuo Shinkin Bank

835

1.98

October 17, 1945

HORIBA Raku-Raku Kai

833

1.97

The Bank of Kyoto, Ltd.

828

1.96

HORIBA Employee Shareholding Association

759

1.80

Dan Horiba

644

1.53

BBH (LUX) FOR FIDELITY FUNDS- SUSTAINABLE WATER AND WASTE POOL

643

1.52

Incorporated

Net sales
290,558 million yen (Consolidated)(Year ended December 31, 2023)

30.0

23

24

0.0

25.6 27.0 25.7 26.1

27.7 27.1 26.8

20.0
10.0

42.0
3.0

1.9
1.2 1.3

39.6

29.9
2.5

2.4

4.0
3.0
2.0
1.0

0.7
0.4 0.2
Forecast

15

42,532,752

Annual Meeting of Shareholders
Held in March
Transfer agent
Sumitomo Mitsui Trust Bank,
Limited

16

17

18

19

20

21

22

23

24

0.0

Foreign investors
Other companies
5.18%
2.20%
Financial
institutions,
Securities
Number ofcompanies
shareholders:
1.09%

8,047

Financial
institutions,
Securities companies
38.71%

Individual
investors / other91.52%

Stock price trend (Closing price each day)Yen
40,000Yen
16,00035,00014,00030,00012,000

Nikkei stock average(Left scale: Yen)

25,00010,00020,0008,000

15,0006,000

Independent auditor
10,000Stock listings
Tokyo Stock Exchange,
Prime Market
Securities Code: 6856

4,000

HORIBA(Right scale: Yen)

5,000

2,000
0

0
2013

2014

2015

2016

TSR* Index

2017

2018

2019

2020

2021

2022

2023

2024

* Total Shareholders' Return:Total return on investment that combines capital gains and dividends

2019

2020

2021

2022

2023

HORIBA - Total Shareholder Return

166%

140%

159%

141%

266%

TOPIX - Total Shareholder Return

115%

121%

133%

127%

158%

1.9
0.9

0.0

14

8,665 (Consolidated)

Number ofshares:

December 31

5.0

36.2

Foreigninvestors
36.69%

Individual
investors / other18.07%

Fiscal closing date

Operating income (billion yen)

40.0

Other companies
6.53%(As of December 31, 2023)

KPMG AZSA LLC

50.0

24.0

28.0

47.1

15.6

9.4 9.6

42.0

Forecast

14

7.59

Number of employees

In 2023, capital investment by semiconductor manufacturers was in an
adjustment phase. This led to a decline in sales to semiconductor production
equipment manufacturers. However, sales and profits declining was limited due toincreased sales in the Chinese market.
We introduced low flow rate pressure-type mass flow controllers and productsthat support new communications specifications for handling next-generation
semiconductor production processes.
In addition, we plan to begin operations at our New Kyoto Fukuchiyama Factoryin 2026, tripling our mass flow controller production capacity.
This will enhance our supply capabilities in expectation of the full recovery of thesemiconductor market.

40.0

2 Miyanohigashi-cho, Kisshoin,
Minami-ku, Kyoto 601-8510
Japan(As of December 31, 2023)• Expanded products sales for advanced materials and life
science markets• Expanding our evaluation and monitoring business toindustrial processes

53.3

13.00

3,207

12,011 million yen (Consolidated)• Despite the fact that capital investment by semiconductor
manufacturers were in an adjustment phase, a high orderbacklog ensured we maintained a high level of sales• Expanded capital investment by semiconductor production
equipment manufacturers in China led to increased sales

60.0

5,494

Distribution by shareholder

in 2023

Opticalcomponents
24%

(%)

Custody Bank of Japan, Ltd.

billion yen

in 2023

Percentage*

The Master Trust Bank of Japan, Ltd.

Paid-in capital

Net sales ofbillion yen

57

Americas25%

39.6

Net sales ofChemicalconcentration
monitors 12%

Sales by region

Shares(Thousands)

Head Office

January 26, 1953

Sales by business

Japan
24%

* The percentage of shareholding is calculated after deducting
the number of shares of treasury stock(263,029 shares).

Name of shareholder

Contributing to yield enhancement and technology
innovation in semiconductor manufacturing processes withHORIBA’s flow control and measurement technologies

Sales by business

Major shareholders (Top 10)

・ The TSR in this table is calculated based on the stock price at the end of the fiscal year

HORIBA Report 2023-2024

58

Financial Data

Financial Data

Financial Data (Eleven-year summary)

HORIBA, Ltd. and consolidated subsidiaries

Dec. 2013

Dec. 2014

Dec. 2015

138,136
124,402
13,733
9.9
8,999
6.5

153,065
135,851
17,214
11.2
10,5896.9

170,898
151,526
19,372
11.3
12,882
7.5

189,269
24,577
114,20960.3

207,335
28,412
123,924
59.8

15,076-8,111
6,965
2,324

Dec. 2016

Dec. 2017

Dec. 2018

Dec. 2019

Dec. 2020

Dec. 2021

170,093
151,593
18,49910.9
12,962
7.6

195,399
168,565
26,834
13.7
16,281
8.3

210,570
181,731
28,83813.7
22,31310.6

200,241
179,325
20,916
10.4
15,481
7.7

187,080
167,385
19,694
10.5
13,1887.0

224,314
192,267
32,046
14.3
21,311
9.5

270,133
224,290
45,84317.0
34,072
12.6

290,558
243,261
47,29616.3
40,30213.9

231,032
45,227
129,58156.1

239,657
47,153
132,65455.4

265,920
42,496150,282
56.5

277,368
44,516
161,36258.2

315,133
73,889170,95354.3

328,068
80,376
177,96454.3

371,585
83,717
203,68854.8

416,742
71,326240,06557.6

449,030
64,757
283,008
63.0

11,455-9,875
1,580-273

14,770-30,642-15,872
12,843

15,871-10,427
5,444-451

28,287-13,167
15,120-9,044

19,536-11,029
8,506-3,24026,638-12,367
14,271
19,21532,253-14,016
18,236843

35,268-14,662
20,605-4,04533,966-10,745
23,220-22,447

16,652-7,315
9,337-20,963

7,680
4,279
10,7747.8

11,001
4,905
11,986
7.8

16,3096,110
12,341
7.2

13,796
6,816
12,933
7.6

11,6397,534
13,911
7.1

10,2397,240
15,183
7.2

12,834
8,794
16,254
8.1

15,1659,619
15,594
8.3

12,496
10,44016,710
7.4

12,565
11,34918,5856.9

9,122
12,602
20,4367.0

212.76
2,699.88
60.00

250.282,928.82
67.00

305.73
3,078.40
70.00

307.74
3,148.70
85.00

386.303,565.00
116.00529.24
3,826.44
145.00367.094,053.30
130.00312.584,217.45
90.00

505.05
4,827.06
150.00807.06
5,684.68
245.00953.71
6,695.30
290.00

8.4
5.2
28.2
48.9
64.9

8.9
5.3
26.8
38.5
69.0

10.2
5.9
22.9
35.1
69.3

10.0
5.5
27.6
46.7
66.8

11.5
6.4
30.0
53.8
66.7

14.3
8.2
27.4
50.7
68.7

9.3
5.2
35.4
46.4
69.0

7.6
4.1
28.8
52.3
69.2

11.2
6.1
29.7
333.1
70.4

15.4
8.6
30.4
71.0
72.8

15.4
9.3
30.4
53.9
75.9

5,787
57.9

5,965
58.4

6,831
62.3

7,149
62.0

7,399
61.6

7,943
62.3

8,288
62.5

8,269
62.4

8,205
62.8

8,432
63.9

8,665
64.1

Profit and Loss
Net sales(million yen)

Operating costs and expenses(million yen)

Operating income(million yen)

Ratio of operating income to net sales（％）

Net income attributable to owners of parent(million yen)

Ratio of net income attributable to owners of parent（％）

Financial Position
Total assets(million yen)

Liabilities with interest(million yen)

Shareholdersʼ equity(million yen)

Shareholdersʼ equity ratio（％）

Cash Flows
Cash flows from operating activities(million yen)

Cash flows from investing activities(million yen)Free cash flow

(million yen)

Cash flows from financing activities(million yen)

Investments, etc.
Capital expenditures(million yen)

Depreciation and amortization(million yen)

R&D expenses(million yen)

R&D expenses to net sales（％）

Per Share Data
Net income(yen)

Net assets(yen)

Dividends(yen)

Other Indicators
Return on equity (ROE)（％）

Return on assets (ROA)（％）

Consolidated dividend payout ratio（％）

Non-consolidated dividend payout ratio（％）

Overseas sales ratio（％）

Human Assets
Number of employees
Ratio of employees outside of Japan(Employees)（％）

Notes: The monetary amounts shown are rounded down to the nearest million yen.
1. HORIBA, Ltd. and its domestic consolidated subsidiaries had formerly recognized revenue mainly on a shipping basis. However, starting from FY 2016, HORIBA, Ltd. and its
domestic consolidated subsidiaries changed their revenue recognition method to recognize revenue on a completion-date-of-installation or delivery-date basis under the terms
and conditions of the relevant contracts. The amounts in or before FY 2015 are not retrospectively revised.

59

Dec. 2022

Dec. 2023

2. As of the beginning of FY 2019, HORIBA, Ltd. and its consolidated subsidiaries apply the Partial Amendments to Accounting Standards for Tax Effect Accounting(ASBJ Statement No. 28, February 16, 2018). The amounts in or before FY 2017 are not retrospectively revised.

HORIBA Report 2023-2024

60

HORIBA, Ltd.

2 Miyanohigashi, Kisshoin, Minami-ku,
Kyoto 601-8510 Japan
Phone: +81-75-313-8121

E-mail: ir-info@horiba.com
https://www.horiba.com/int/