Summary of Consolidated Financial Statements for the Nine Months Ended September 30, 2019
(Japanese GAAP)
November 11, 2019
Company name

HORIBA, Ltd.

Listing code

6856

Listed stock exchanges: Tokyo

Representative

Atsushi Horiba, Chairman & Group CEO

Contact

Junichi Tajika, Department Manager, General Administration Division, Accounting Dept.

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

1. Consolidated Results for the Nine Months Ended September 30, 2019 (January 1, 2019 - September 30, 2019)(Percentages represent changes from the corresponding period in the previous year)(1) Consolidated Operating Results
Net Sales
Millions of yen

Operating Income%

Millions of yen

Net Income Attributableto Owners of Parent

Ordinary Income
Millions of yen%

Millions of yen%

Nine months ended 9/30/19
137,030
12,005 -32.8
11,557 -34.0-6.2
Nine months ended 9/30/18
17,877
17,518146,030
10.4
22.3
22.1
(Note) Comprehensive Income: FY2019Q3 5,319 million yen (-52.5%), FY2018Q3 11,196 million yen (-21.6%)
Net Income Attributableto Owners of Parent
per Share
Yen

Net Income Attributableto Owners of Parent
per Share (Diluted)
Yen

199.81
319.58198.92318.21

Nine months ended 9/30/19
Nine months ended 9/30/18

8,426
13,473

%

-37.5
24.9

(2) Consolidated Financial Position
Total Assets

Shareholders'Equity Ratio

Net Assets

Millions of yen

Millions of yen%

As of 9/30/19
272,268
161,334
59.0
As of 12/31/18
277,368
162,018
58.2(Reference) Net assets excluding subscription rights to shares and non-controlling interests:
As of September 30, 2019: 160,571 million yen; As of December 31, 2018: 161,362 million yen
2. Dividends
Dividend per ShareFirst
quarter

SecondquarterYen

Thirdquarter
Yen

Year end
Yen

Total

Yen

Yen

50.00
145.00Year ended 12/31/18
95.00
－
－
50.00
Year ending 12/31/19－－
Year ending 12/31/19
80.00
130.00(Forecast)(Note) Changes in the latest dividend forecasts released: None
Total Year-end dividend for fiscal year 2018 of 95 yen per share:
Year-end ordinary dividend of 75 yen and commemorative dividend for the 65th anniversary of the company foundation of 20 yen
3. Consolidated Forecast for the Year Ending December 31, 2019 (January 1, 2019 - December 31, 2019)(Percentages represent changes from the previous fiscal year)
Operating Income

Net Sales

Full year

Millions of yen%

207,000-1.7

Millions of yen

Net Income Attributableto Owners of Parent

Ordinary Income

Net Income Attributableto Owners of Parent
per Share%

Millions of yen%

Millions of yen%

Yen

23,000 -20.2

22,500-20.5

16,000-28.3

379.36(Note) Changes in the latest business forecasts released: Yes

1

HORIBA, Ltd. (Consolidated)

Notes(1) Changes in significant subsidiaries during the period(Changes in specified subsidiaries that caused a change in the scope of consolidation): Yes
New one company (company name: HORIBA (China) Co., Ltd.)(2) Application of the accounting method specific to quarterly consolidated financial statements: Yes(3) Changes in accounting policies, accounting estimates and retrospective restatement① Changes in accounting policies associated with revision of accounting standards: Yes② Changes in accounting policies arising from other than the above: None
③ Changes in accounting estimates: None
④ Retrospective restatement: None
(4) Number of shares outstanding (common stock)① Shares issued (including treasury stock)② Treasury stock③ The average number of outstanding shares

September 30,2019
42,532,752
356,503

December 31, 2018
42,532,752
362,304

Jan. - Sep. 201942,174,228

Jan. - Sep. 2018
42,159,900

Note 1. This consolidated financial report is not subject to quarterly review by certified public accountants or accounting firms.
Note 2. Appropriate use of business forecasts and other important information
The forecasts of dividend amount and business performance contained in this report have been made based on certain futureassumptions, outlooks, and plans which are available at the HORIBA Group as of November 11, 2019. However, due to risks
and various uncertain factors such as future business operation policies, changes in the economic environment in Japan andoverseas, fluctuation of currency rates, it is possible that actual performance would vary considerably from the forecasts.

2

HORIBA, Ltd. (Consolidated)

1.

Qualitative Information Concerning Consolidated Results(1) Information Concerning Consolidated Operating Results(For details, see page 10, “3. Supplemental Information - HORIBA, Ltd. Financial Highlights for the Nine Months Ended
September 30, 2019”)
During the nine months ended September 30, 2019, HORIBA, Ltd. (“the Company”) and its consolidated subsidiaries(together “the HORIBA Group” or “HORIBA” as a consolidated group) decreased sales by 6.2% year-on-year to 137,030
million yen, mainly due to a decline in sales in the Semiconductor Instruments & Systems segment. Operating income
decreased by 32.8% to 12,005 million yen and ordinary income by 34.0% to 11,557 million yen, and net income attributableto owners of parent by 37.5% to 8,426 million yen.
The operating results of each business segment are summarized as follows.
(Automotive Test Systems)
Sales of emission measurement systems in Asia and Europe increased. As a result, segment sales increased by 7.7% yearon-year to 52,086 million yen. On the profit side, the absence of a temporary expense that occurred in the Americas in 2018
and other factors improved profitability, and contributed to increase operating income by 60.5% to 2,799 million yen.
(Process & Environmental Instruments & Systems)
Due to increase in sales in Japan and Europe, segment sales increased by 2.8% year-on-year to 13,871 million yen.
Operating income, however, decreased by 17.5% to 975 million yen, partly due to an increase in R&D expenses.

(Medical-Diagnostic Instruments & Systems)
Segment sales decreased by 2.8% year-on-year to 18,703 million yen, as the depreciation of the euro against the yen
deflated sales when translated into yen. On the profit side, operating income decreased by 20.0% to 1,049 million yen, partly
due to an increase in R&D expenses.
(Semiconductor Instruments & Systems)
In response to semiconductor manufactures’ capital expenditure adjustments, sales to semiconductor production equipment
manufactures decreased. Segment sales consequently decreased by 26.1% year-on-year to 33,543 million yen andoperating income decreased by 47.1% to 7,437 million yen.
(Scientific Instruments & Systems)
Owning to a decrease in sales mainly in Asia, segment sales decreased by 3.7% year-on-year to 18,824 million yen, while
operating loss of 257 million was recorded (compared to operating loss of 414 million yen in the first nine months of theprevious year).

3

HORIBA, Ltd. (Consolidated)(2) Information Concerning Consolidated Earnings Forecasts for FY2019
HORIBA’s full year consolidated earnings forecast is as follows:
Consolidated forecast of full year FY2019
Previous
Forecast(As of Aug. 6)(Amount: millions of yen)
Revised
Forecast
Changes(As of Nov. 11)

Net Sales

213,000

207,000-6,000Operating Income

25,00023,000-2,000Ordinary Income

24,50022,500-2,000Net Income Attributableto Owners of Parent

17,50016,000-1,500Consolidated forecast of full year FY2019 by segment
Net Sales
Previous
Forecast(As of Aug. 6)(Amount: millions of yen)
Revised
Forecast
Changes(As of Nov. 11)

Operating Income
Previous
Forecast(As of Aug. 6)(Amount: millions of yen)
Revised
Forecast
Changes(As of Nov. 11)

Automotive

85,00083,000-2,000Automotive

8,000

7,000

-1,000

Process &Environmental

20,00020,000-

Process &Environmental

2,000

2,000

-

Medical28,00026,000-2,000

Medical

2,000

1,500

-500

Semiconductor

50,00050,000-

Semiconductor

12,00012,000-Scientific30,00028,000-2,000Scientific

1,000

500

-500

Total

213,000

207,000-6,000Total

25,00023,000-2,000With regard to consolidated earnings forecasts for the current fiscal year, overall sales forecast has been revised downward
by 6,000 million yen to 207,000 million yen, while operating income forecast has been revised downward by 2,000 million
yen to 23,000 million yen. This decrease in operating income forecast has led to downward revision by 2,000 million yen in
ordinary income forecast and 1,500 million yen in forecast for net income attributable to owners of parent.
By business segment, the Automotive Test Systems segment has revised downward its sales and operating income
forecast by 2,000 million yen and 1,000 million yen respectively, after taking into account the recent order trend. In light ofthe progress achieved up to the third quarter of this year, the Medical-Diagnostic Instruments & Systems segment revised
downward its sales and operating income forecast by 2,000 million yen and 500 million yen, and the Scientific Instruments& Systems segment revised downward its sales and operating income forecast by 2,000 million yen and 500 million yen
respectively.
(Disclaimer regarding business forecasts)
The forecasts of dividend amount and business performance contained in this report have been made based on certain
future assumptions, outlooks, and plans which are available at the HORIBA Group as of November 11, 2019. However,
due to risks and various uncertain factors such as future business operation policies, changes in the economic environment
in Japan and overseas, fluctuation of currency rates, it is possible that actual performance would vary considerably fromthe forecasts.

4

HORIBA, Ltd. (Consolidated)2. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheets
Amount: millions of yen
FY2018(As of December 31, 2018)

FY2019 third quarter(As of September 30,
2019)

AssetsCurrent Assets:
Cash and bank deposits

63,632

63,468Trade notes and accounts receivable

59,11145,560Marketable securities

2,399

3,915

Merchandise and finished goods

20,01820,784Work in process

19,84323,220Raw materials and supplies

15,276

13,837

Other current assets

8,290

7,916

Allowance for doubtful accounts

(682)

(655)

187,891

178,047

Buildings and structures, net

37,20737,726

Machinery, equipment and vehicles, net

10,244

11,485

Land

13,692

14,559Construction in progress

3,018

3,385

Other property, plant and equipment, net

4,576

5,066

Total Property, Plant and Equipment

68,73972,223

Goodwill

901

1,017

Software

2,907

2,585

Other intangibles

1,092

1,728

Total Intangibles

4,901

5,331

Investment securities

8,359

9,703

Deferred tax assets

4,636

4,151

Other investments and other assets

2,917

2,883

(76)

(73)

15,836

16,66589,477

94,220277,368

272,268

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

Intangibles:

Investments and Other Non-Current Assets:

Allowance for doubtful accounts
Total Investments and Other Non-Current Assets
Total Fixed Assets
Total Assets

5

HORIBA, Ltd. (Consolidated)Amount: millions of yen
FY2018(As of December 31, 2018)

FY2019 third quarter(As of September 30,
2019)

Liabilities
Current Liabilities:
Trade notes and accounts payable

21,933

18,330

Short-term loans payable

12,044

9,168

Accounts payable - other

15,92013,165

Accrued income taxes

3,514

1,520

Advances received

17,475

20,583

Accrued bonuses to employees

1,265

2,145

-

419

Reserve for product warranty

2,012

1,917

Other current liabilities

3,830

4,397

Total Current Liabilities

77,99771,649Corporate bonds

15,00015,000Long-term loans payable

17,02816,895

184

142

1,946

1,831

640

-

Other non-current liabilities

2,552

5,415

Total Non-Current Liabilities

37,35239,284

115,349

110,933

Common stock

12,011

12,011

Capital surplus

18,717

18,717Retained earnings

132,329

134,634(1,428)(1,405)

161,630

163,958

2,788

3,719

(2)

(0)

Foreign currency translation adjustments(2,829)(6,904)Remeasurements of defined benefit plans

(224)

(200)

Total Accumulated Other Comprehensive Income(267)(3,386)

Subscription Rights to Shares

549

651

Non-controlling Interests

106

111

162,018

161,334

277,368

272,268

Accrued bonuses to directors and corporate auditors

Non-Current Liabilities:

Deferred tax liabilities
Net defined benefit liability
Provision for loss on dissolution of the employees’
pension fundTotal Liabilities
Net Assets
Shareholders' Equity

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

Total Net Assets
Total Liabilities and Net Assets

6

HORIBA, Ltd. (Consolidated)(2) Consolidated Statements of Income and Consolidated Comprehensive Income Statements(Consolidated Statements of Income)Amount: millions of yen
FY2019 third quarter(Nine months ended
September 30, 2019)

FY2018 third quarter(Nine months ended
September 30, 2018)
Net Sales

146,030

137,030

Cost of Sales

83,046

79,691Gross Income

62,98457,338Selling, General and Administrative Expenses

45,10745,332

Operating Income

17,877

12,005Interest income

86

143

Dividend income

104

105

Other

172

371

Total Non-Operating Income

364

447

Interest expense

318

333

Foreign exchange losses

319

463

Other

85

98

Total Non-Operating Expense

723

895

17,518

11,557

524

111

-

137

524

249

Loss on sales of fixed assets

22-

Loss on disposal of fixed assets

56

8

Total Extraordinary Loss

79

8

Income before Income Taxes

17,962

11,798

Income taxes (current)

4,928

3,409

Income taxes (deferred)

(458)

(57)

Total Income Taxes

4,470

3,351

13,491

8,446

Profit attributable to non-controlling interests

18

19

Net Income Attributable to Owners of Parent

13,473

8,426

Non-Operating Income

Non-Operating Expense

Ordinary Income
Extraordinary Gain
Gain on sales of fixed assets
Reversal of provision for loss on dissolution of the employee's
pension fundTotal Extraordinary Gain
Extraordinary LossNet Income

7

HORIBA, Ltd. (Consolidated)

(Consolidated Statements of Comprehensive Income)Amount: millions of yen
FY2019 third quarter(Nine months ended
September 30, 2019)

FY2018 third quarter(Nine months ended
September 30, 2018)13,491

8,446

(745)

930

6

1

Foreign currency translation adjustments(1,571)(4,082)Remeasurements of defined benefit plans

15

23(2,295)(3,126)

11,196

5,319

11,186

5,307

10

11

Net Income
Other Comprehensive Income
Net unrealized holding gains on securities
Deferred gains or losses on hedges

Total Other Comprehensive Income
Comprehensive Income(Breakdown of comprehensive income)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

8

HORIBA, Ltd. (Consolidated)

(3) Notes to Consolidated Financial Statements(Significant Change in Scope of Consolidation)
From the third quarter of fiscal 2019, newly-established HORIBA (China) Co., Ltd. has been included in the scope of
consolidation.
Application of special accounting for preparing quarterly consolidated financial statement(Calculation method for tax expenses)
The Company and its domestic consolidated subsidiaries calculated income tax expenses by multiplying quarterly income
before income taxes by reasonably estimated annual effective tax rate. This tax rate was reasonably estimated after applying
the deferred tax accounting to the annual income before income taxes.

Change in accounting policy(Application of IFRS 16, “Leases” and FASB Accounting Standards Update (ASU) 2016-02, “Leases”)
The Company applied IFRS 16, “Leases” and FASB Accounting Standards Update (ASU) 2016-02, “Leases” for foreignsubsidiaries from the first quarter of the current fiscal year ending December 31, 2019. The aforementioned standards
require a lessee to recognize assets and liabilities generally for all leases on the balance sheet. The impact of this change
to the consolidated balance sheet as at September 30, 2019, and the consolidated income statement and statement ofcomprehensive income for the nine months ended September 30, 2019 is immaterial.
Additional information(Application of the “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No.
28; February 16, 2018), etc.)
As the Company applied “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No. 28;
February 16, 2018), etc., from the beginning of the first quarter of the current fiscal year, deferred tax assets are presented
under investments and other assets and deferred tax liabilities are presented under non-current liabilities.

9

HORIBA, Ltd. (Consolidated)3. Supplemental Information
HORIBA, Ltd. Financial Highlights for the Nine Months Ended September 30, 2019
1. Consolidated Financial Results

Amount: millions of yen

12/2018
Result12/2019
Result3Q (9Months)

3Q (9Months)

Net Sales

146,030

137,030

Operating Income

17,877

Operating Income Ratio

Ordinary Income

12/2018
Result12/2019
Forecast

Ratio

Full year

Full year-9,000-6.2%

210,570

207,000-3,570-1.7%

12,005-5,871-32.8%

28,83823,000-5,838-20.2%

12.2%

8.8%

-3.4P

13.7%

11.1%

-2.6P

17,518

11,557-5,96028,31622,500-5,816

13.4%

10.9%

-2.5P

22,31316,000-6,313

ChangesAmount-34.0%

ChangesAmountOrdinary Income Ratio

12.0%

8.4%

-3.6P

Net Income Attributableto Owners of Parent

13,4738,426-5,046Net Income Ratio

9.2%

6.1%

-3.1P

10.6%

7.7%

-2.9P

US$

109.60109.12-0.48

110.44110.00

-0.44

Euro

130.87122.62-8.25

130.35122.00-8.35

Changes

12/2018
Result12/2019
Forecast

Full year

Full year-37.5%

2. Consolidated Segment Results

Ratio-20.5%-28.3%

Amount: millions of yen

12/2018
Result12/2019
Result3Q (9Months)

3Q (9Months)

Automotive

48,34552,086+3,741+7.7%

79,65683,000+3,343+4.2%

Process&Environmental

13,49913,871

+372

+2.8%

19,361

20,000

+638

+3.3%

Medical19,24018,703

-537

-2.8%

26,01226,000-12-0.0%

Semiconductor

45,40133,543-11,857-26.1%

57,78550,000-7,785-13.5%

Scientific

19,543

18,824

-718

-3.7%

27,75428,000

+245

+0.9%

Total

146,030

137,030-9,000-6.2%

210,570 207,000-3,570-1.7%

Operating Income

12/2018
Result12/2019
Result3Q (9Months)

3Q (9Months)

Automotive

1,744

2,799

+1,055+60.5%

7,702

7,000

-702

-9.1%

Process&Environmental

1,182

975

-207

-17.5%

2,027

2,000

-27

-1.4%

Medical

1,312

1,049

-262

-20.0%

1,823

1,500

-323

-17.8%

Semiconductor

14,052

7,437-6,614-47.1%

17,063

12,000-5,063-29.7%

Scientific

(414)

(257)

+156

-

221

500

+278

+126.2%

Total

17,877

12,005-5,871-32.8%

28,83823,000-5,838-20.2%Net Sales

AmountRatio

ChangesAmount10

Ratio

12/2018
Result12/2019
Forecast

Full year

Full year

ChangesAmountRatio

ChangesAmountRatio

HORIBA, Ltd. (Consolidated)3. Consolidated Segment Sales by Destination
12/2018
Result12/2019
Result3Q (9Months) 3Q (9Months)

Automotive

Amount: millions of yen
ChangesAmountRatio

12/2018
Result12/2019
Forecast

Full year

Full year

ChangesAmountRatio

48,34552,086+3,741+7.7%

79,65683,000+3,343

+4.2%

Japan

15,687

15,123

-563

-3.6%

23,07521,000-2,075

-9.0%

Asia

11,97515,152+3,176+26.5%

21,672

24,000+2,327+10.7%

Americas

6,646

5,940

-705

-10.6%

11,191

10,500

-691

-6.2%

Europe14,036

15,870+1,833+13.1%

23,71627,500+3,783+16.0%

Process&Environmental

13,49913,871

+372

+2.8%

19,361

20,000

+638

+3.3%

Japan

6,783

7,366

+583

+8.6%

9,538

10,000

+461

+4.8%

Asia

3,190

2,806

-383

-12.0%

4,616

4,500

-116

-2.5%

Americas

1,915

1,816

-99

-5.2%

2,677

3,000

+322

+12.0%

Europe

1,610

1,882

+272

+16.9%

2,528

2,500

-28

-1.1%

19,24018,703

-537

-2.8%

26,01226,000

-12

-0.0%

Japan

4,349

4,701

+351

+8.1%

5,889

6,500

+610

+10.4%

Medical
Asia

4,273

4,107

-166

-3.9%

5,607

5,500

-107

-1.9%

Americas

3,961

3,867

-93

-2.4%

5,341

5,500

+158

+3.0%

Europe

6,655

6,026

-629

-9.5%

9,174

8,500

-674

-7.4%

45,40133,543-11,857-26.1%

57,78550,000-7,785-13.5%

Japan

15,484

11,806-3,678-23.8%

20,20818,000-2,208-10.9%

Asia

21,64914,840-6,808-31.4%

26,78822,000-4,788-17.9%

Americas

5,399

4,400

-999

-18.5%

6,956

6,500

-456

-6.6%

Europe

2,867

2,496

-371

-13.0%

3,833

3,500

-333

-8.7%

Semiconductor

Scientific

19,543

18,824

-718

-3.7%

27,75428,000

+245

+0.9%

Japan

5,173

5,083

-89

-1.7%

7,275

7,500

+224

+3.1%

Asia

5,165

4,654

-510

-9.9%

7,609

7,000

-609

-8.0%

Americas

5,189

5,330

+141

+2.7%

7,117

8,000

+882

+12.4%

Europe

4,015

3,755

-260

-6.5%

5,753

5,500

-253

-4.4%

146,030

137,030-9,000-6.2%

210,570

207,000-3,570

-1.7%

Japan

47,47844,082-3,395-7.2%

65,98663,000-2,986

-4.5%

Asia

46,254

41,561-4,692-10.1%

66,29363,000-3,293-5.0%

Americas23,112

21,355-1,757-7.6%

33,28333,500

+216

+0.6%

Europe29,18530,030

+845

+2.9%

45,00647,500+2,493

+5.5%

Total

11

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

Net Sales
Operating Income

52,696
9,199

12/2018 Result
2Q
3Q

47,2704,857

46,063
3,819

Amount: millions of yen
4Q

1Q Result

64,53910,96145,3204,434

12/2019
2Q Result
3Q Result

46,2873,848

45,422
3,722

4Q Forecast

69,96910,994

17.5%

10.3%

8.3%

17.0%

9.8%

8.3%

8.2%

15.7%

8,968

4,763

3,786

10,798

4,303

3,737

3,517

10,942

Ordinary Income Ratio

17.0%

10.1%

8.2%

16.7%

9.5%

8.1%

7.7%

15.6%

Net Income attributableto Owners of Parent

6,114

4,388

2,970

8,840

2,561

3,209

2,655

7,573

Operating Income Ratio

Ordinary Income

Net Income Ratio

11.6%

9.3%

6.4%

13.7%

5.7%

6.9%

5.8%

10.8%

US$
Euro

108.22133.14109.12129.96111.46129.51112.96
128.79110.22125.16109.90123.48107.24119.22112.64120.14

6. Consolidated Segment Results (Quarterly Comparison)
Net Sales

Automotive
Process&Environmental

Medical
Semiconductor
Scientific
Total
Operating Income

Automotive
Process&Environmental

Medical
Semiconductor
Scientific
Total

1Q

18,097
4,941
6,637
16,4686,551
52,696

12/2018 Result
2Q
3Q

14,607
4,306
6,497
15,875
5,983
47,27015,6404,250
6,106
13,0587,008
46,063

1Q

12/2018 Result
2Q
3Q

2,610
681
552
5,453
(97)
9,199

(120)
187
452
4,786
(448)
4,857

(745)
314
308
3,812
131
3,819

4Q

1Q Result

31,3105,861
6,771
12,384
8,210
64,53916,242
4,791
6,307
11,5486,429
45,320

4Q

1Q Result

5,958
844
511
3,011
635
10,961

905
470
208
2,752
98
4,434

Amount: millions of yen
12/2019
2Q Result
3Q Result 4Q Forecast

18,138
4,369
6,359
11,157
6,261
46,287

17,705
4,709
6,036
10,837
6,132
45,42230,913
6,128
7,296
16,456
9,175
69,96912/2019
2Q Result
3Q Result

4Q Forecast

694
193
501
2,647
(188)
3,848

1,199
312
339
2,037
(167)
3,722

4,200
1,024
450
4,562
757
10,994

Contact
Investor Relations, Corporate Control Dept, General Administration Division, HORIBA, Ltd.
2, Miyanohigashi-cho, Kisshoin, Minami-ku, Kyoto 601-8510, Japan
E-mail: ir-info@horiba.com

12

HORIBA, Ltd. (Consolidated)