Financial Information
HORIBA, Ltd.
September, 2018

© 2018 HORIBA, Ltd. All rights reserved.

1

Contents
2018 First Half Results
2018 Forecast
Business Segments Outline
Shareholder ReturnOther Topics
Financial Data
Corporate profile[Disclaimer]
Plans and forecasts in this presentation that do not constitute historical facts are predictions concerning future business results.
These statements are based on judgments made in accordance with information available at the present time.
All rights reserved. Reproduction in whole or part of this presentation without permission is prohibited.
Copies of this presentation and additional information are available at HORIBA’s website: http://www.horiba.com© 2018 HORIBA, Ltd. All rights reserved.

2

Contents
2018 First Half Results
2018 Forecast
Business Segments Outline
Shareholder ReturnOther Topics
Financial Data
Corporate profile© 2018 HORIBA, Ltd. All rights reserved.

3

Review of the First Half of 2018
 Escalating global trade tensions
 Decline in emerging markets currencies due to tightening by the Fed in
the U.S.
External
Events  Temporary subdued capital spending despite robust demand forsemiconductors
 Automotive electrification, emission regulations

Internal
Events Enhanced North American bases (for Semiconductors and Scientific)
 Full-scale operation at the expanded Aso factory (for Semiconductors)
 Aggressive investment in next-generation automotive technologies
 Renewed record-high stock price of HORIBA; market cap exceeds¥400bn© 2018 HORIBA, Ltd. All rights reserved.

4

Summary of the First Half Results of 2018
Reached a record high in sales, profit and dividend(first half)

P&L

Significant increase in sales and profit in Automotive and Semiconductor
segments, year-on-yearSemiconductor was weak in 2Q compared to 1Q.
Total asset were ¥268.7bn, up to ¥2.8bn, due to increase in inventory.

B/STangible assets was ¥68bn, down to ¥0.6bn due to appreciation of the yen
Equity ratio: 57.1%(Compared to the end of Dec. 2017)

Operating CF: Cash in ¥12.4bn due to growth in profit

CFInvesting CF: Cash out ¥4.4bn due to capital spending

Free CF+¥7.9bn

Financial CF: Cash out ¥4.3bn due to payment of dividend© 2018 HORIBA, Ltd. All rights reserved.

5

2018 First Half Results（Billions of Yen）

2018 1st half2017 1st half

： Record-highResults

Forecast
Beg. of the year
(as of Feb. 13)

Previous
Forecast(as of May 9)

-2.0

14.8

+2.2

-0.7

12.3%

14.5%

14.1%

+3.0p

+1.8p

-0.4p

9.5

11.5

14.5

+4.1

+2.2

-0.7

6.4

7.7

9.7

13.7
10.5

+4.0

+2.8

+0.8

112.34121.66110.00130.00110.00130.00108.67131.55

-3.67

-1.33

-1.33

+9.89

+1.55

+1.55

96.0

102.0

Operating Profit

9.7

11.8

O. P. %

11.1%

Ordinary Profit
Net Income attribute to
Owners of Parent© 2018 HORIBA, Ltd. All rights reserved.

vsPrevious
Forecast

+3.9

87.3

EUR/JPY

vsForcastBeg. of the year

99.9 +12.6
14.0 +4.3

Sales

USD/JPY

Resultsvs2017
1st half

6

2018 First Half Results by Segment（Billions of Yen）

Sales
2017
1st half： Record-highResults

Operating Profit
2017
1st half

2018 1st half
Forecast
Beg. of the year
(as of Feb. 13)

Previous
Forecast(as of May 09)

Resultsvs2017
1st halfvsForcastBeg. of theyear

vsPrevious
Forecast

Results2018 1st half
Forecast
Beg. of the year
(as of Feb. 13)

Previous
Forecast(as of May 09)

Resultsvs2017
1st halfvsForcastBeg. of theyear

vsPrevious
Forecast

Auto

30.6

33.0

35.0

32.7

+2.0

-0.2

-2.2

2.1

2.2

2.7

2.4

+0.3 +0.2 -0.2

P&E

8.0

8.0

8.0

9.2

+1.1

+1.2

+1.2

0.3

0.3

0.3

0.8

+0.5 +0.5 +0.5

Medical

12.3

13.0

13.0

13.1

+0.7

+0.1

+0.1

0.8

0.8

0.8

1.0

+0.1 +0.2 +0.2

Semi

24.7

29.0

33.0

32.3

+7.5

+3.3

-0.6

6.7

8.5

11.0

10.2

+3.4 +1.7 -0.7

Scientific

11.5

13.0

13.0

12.5

+1.0

-0.4

-0.4

-0.4

-

-

-0.5

-0.1 -0.5 -0.5

Total

87.3

96.0 102.0

99.9 +12.6

+3.9

-2.0

9.7

11.8

14.8

14.0

+4.3 +2.2 -0.7

© 2018 HORIBA, Ltd. All rights reserved.

7

Contents
2018 First Half Results
2018 Forecast
Business Segments Outline
Shareholder ReturnOther Topics
Financial Data
Corporate profile© 2018 HORIBA, Ltd. All rights reserved.

8

Market Overview for the Full Year 2018
Auto
P&E
Medical

Semi

Scientific© 2018 HORIBA, Ltd. All rights reserved.

Strong appetite for investment in the global automotive sector due to tighter
emission regulations in Japan & Asia and innovation for electrification &autonomous driving
Increase in demand due to tighter environmental regulations in emerging
countries
Recovery in investment in the oil industry due to higher oil prices
Japan: Favorable sales to doctors in private practiceOverseas: Increase in demand for blood testing equipment in emerging
countries
Anticipate a pick-up in investment in the second half, due to solid demand of
semiconductor devices from a mid- to long-term perspective
Robust corporate R&D expenditures
Accelerating research on new materials for secondary batteries
9Exchange rate
(Yen)

2017 Actual
1sf half

Full year

2018
Previous
Forecast(as of May 9)

Results
1Q

2Q

1st half

Forecast
2nd half

Forecast(as of Aug. 3)

USD

112.34112.16110108.22

109.12108.67

111

110

EUR

121.66126.70130133.14129.96131.55128

130

1 yen O.P. sensitivity for 2018 Forecast (Yen appreciation/Full year)
USD ¥200 million
EUR ¥20 million© 2018 HORIBA, Ltd. All rights reserved.

10

2018 Forecast(Billons yen)

2017
： Record-highResults

2018
Forecast
Beg. of the year
(as of Feb. 13)

Previous
Forecast(as of May 9)

218.0

Resultsvs2017
1st halfvsForcastBeg. of the year

vsPrevious
Forecast

+2.0

-6.0

29.0

212.0 +16.6
34.0
31.0 +4.1

+2.0

-3.0

13.7%

13.8%

15.6%

14.6%

+0.9p

+0.8p

-1.0p

Ordinary Profit

26.6

28.4

33.4

+3.7

+2.0

-3.0

Net Income attribute to
Owners of Parent

16.2

19.0

22.5

30.4
21.5

+5.2

+2.5

-1.0

Net profit per share (Yen)

386
11.5%

450
12.1%

533
14.3%

509
13.8%

+123

+59

-24

+2.3p

+1.7p

-0.5p

Sales

195.3

210.0

Operating Profit

26.8

O. P. %

ROE
© 2018 HORIBA, Ltd. All rights reserved.

11

2018 Forecast by Segment(Billions of Yen)

Sales
2018

2017
： Record-highResults

O.P.

Forecast
Beg. of the year
(as of Feb. 13)

Previous
Forecast(as of May 9)

Results

2018

2017
vs
2017
1st halfvsForcastBeg. of theyear

vsPrevious
Forecast

Results

Forecast
Beg. of the year
(as of Feb. 13)

Previous
Forecast(as of May 9)

Resultsvs2017
1st halfvsForcastBeg. of theyear

vsPrevious
Forecast

Auto

73.3

79.0

79.0

79.0

+5.6

-

-

7.6

8.0

8.0

8.0

+0.3

-

-

P&E

17.4

19.0

19.0

19.0

+1.5

-

-

1.0

1.4

1.4

1.4

+0.3

-

-

Medical

25.1

26.0

26.0

26.0

+0.8

-

-

1.9

2.0

2.0

2.0

+0.0

-

-

Semi

53.3

58.0

66.0

60.0

+6.6

+2.0

-6.0

15.6

17.0

22.0

19.0

+3.3

+2.0

-3.0

Scientific

26.1

28.0

28.0

28.0

+1.8

-

-

0.4

0.6

0.6

0.6

+0.1

-

-

212.0 +16.6

+2.0

-6.0

26.8

29.0

34.0

31.0

+4.1

+2.0

-3.0

Total

195.3 210.0 218.0© 2018 HORIBA, Ltd. All rights reserved.

12

Contents
2018 First Half Results
2018 Forecast
Business Segments Outline
Shareholder ReturnOther Topics
Financial Data
Corporate profile© 2018 HORIBA, Ltd. All rights reserved.

13

Auto

First Half Results and 2018 Forecast(Billions of yen)2018 First Half Results＋

EMS※1 Europe - Solid demand after new regulations
China, India - Demand increase for compliancewith new regulations

Sales【Half year】 Sales and O.P.

46.2

42.7

38.7
28.1

26.6

O.P.

34.0 30.6

32.7＋

MCT※2 Lower profitability due to higher sales ratio to Asia

5.5 2.4 5.5
2.9 2.2 0.5 2.9 2.1＋-

ECT※3 Expanded business in next-gen. automotive
technology

15.1H 15.2H 16.1H 16.2H 17.1H 17.2H 18.1H 18.2H※1: Emission Measurement Systems ※2: Mechatronics ※3: Engineering Consultancy & TestingFore.

2018 Full Year Forecast＋

EMS Demand growth in China and India＋-

MCT Steady delivery of orders received for Europe, Asia

＋ ECT Aggressive investment to accelerate growth© 2018 HORIBA, Ltd. All rights reserved.

Sales【Full year】 Sales and O.P.
49.5 55.0
5.8
4.2
2013

65.4 62.2

O.P.

73.3 79.0 79.0
7.6

8.0

8.0

2017

2018

2018

Prev.
Fore.

Current
Fore.

5.2
3.5

2014

2015

2016

14

Auto

Effect of enhanced emission regulations
Status of the next-gen. emission regulations
HORIBA BIWAKO E-HARBOR achieved record-high output

 Sales of EMS business
2015(Before the start of E-HARBOR)¥39.8bn

Up 25%

Production at HORIBA BIWAKO E-HARBOR

2018(forecast)¥49.0bn Emission regulations
Regulation
EU
Japan
WLTP1
Oct. 2018
Sep. 20172
RDE
2022 (plan)
China and India: Adoption of new regulations in 2020 (plan)(Same level as Euro6)
1: Worldwide harmonized Light vehicles Test Procedure
2: Real Driving Emissions© 2018 HORIBA, Ltd. All rights reserved.

15

Auto

Enhanced engineering capability

Increase in solution provision for the
automotive development processes Vehicle testing system (Subaru Corp.)
・Provide the powertrain testing system that reproduces
climate change and other conditions of real driving.
・Tie up with HORIBA’s labs in Japan and the U.S. andcurtail the customer’s development processes.

HORIBA MIRA in the U.K. opened
MIRA Technology Institute
Jointly invested with the LLEP* in the U.K.
 Aimed at fostering personnel in the next-gen.
automotive industry
 Education facility in a 24,500㎡ site Managed by local universities (inviting professors) Joint dev’t of EV technologies (Keihin Corp.)
・ HORIBA MIRA provides the battery management
system to assists the EV system development.

*LLEP: Leicester &Leicestershire
Enterprise Partnership
Vehicle testing system© 2018 HORIBA, Ltd. All rights reserved.

Battery management system(To open in Sep. 2018)
Rendering of MIRA Technology Institute

Quoted from https://www.miratechnologypark.com/
16

Auto

Investment plan for a battery evaluation testing facility

Introducing an advanced evaluation concept to connect the real and the virtual
Battery evaluation testing facility for electricvehicles(HORIBA BIWAKO E-HARBOR) Assessment of the combination of a battery, powertrain,
and a vehicle
 Testing a wide range of temperature environment
 To be used in evaluating xEV and fuel batteries
 Operation to start in July 2019 (plan) Investment amount: about ¥1.3bn
Advanced Battery Development Suite (ABDS)(HORIBA MIRA)HORIBA MIRA’s
engineering
capability to be
deployed globally© 2018 HORIBA, Ltd. All rights reserved.

17

P&E

First Half Results and 2018 Forecast(Billions of yen)2018 First Half Results＋＋＋

Stack gas analyzers: Sales increase in North America due toenforced marketing; flattish demand in Japan
Air quality monitoring: Demand growth in Europe andemerging countries due to enhanced regulations
Water quality: Sales increase due to business expansion in
Japan and emerging countries

2018 Full Year Forecast＋＋＋

Stack gas analyzers: Anticipate progress in VOC
regulations in China

Process measurement equipment: Anticipate a recovery ininvestment due to higher oil prices
Water quality monitoring: Capture replacement demand inJapan and expand business in emerging countries© 2018 HORIBA, Ltd. All rights reserved.

Sales【Half year】 Sales and O.P.

O.P.

9.3 9.2 9.7
8.9
8.4
8.2
8.0
7.7
0.9 0.8 0.8

0.6

0.7 0.8
0.3

0.5

15.1H 15.2H 16.1H 16.2H 17.1H 17.2H 18.1H 18.2H
Fore.

Sales

【Full year】 Sales and O.P.
14.7

16.4 16.7 16.7 17.4

2.0

1.7

1.2
2013

1.5
1.0

2014

2015

2016

2017

O.P.

19.0 19.0

1.4

1.4

2018

2018

Prev.
Fore.

Current
Fore.

18

P&E

Initiatives for expansion into new markets
Business growth in Asia

Launch of “HAKARU※ EXpress”

Expand the environmental regulation and monitoring business

From a hardware sales business to a data sales
business using cloud computing

 Delivery to and continued orders received from Ho Chi
Minh and 5 other cities/provinces in Vietnam
・ Air Quality Monitoring Station (AQMS)

1. Provide the water quality measurement report
2. Use cloud and monitor the status of equipment

・ Water Quality Monitoring Station (WQMS)

Main operation by HORIBA Advanced Techno

Main operation by HORIBA, Vietnam
Air pollution monitoring
equipment business:
Consolidated sales (¥bn)

 Installation of automatic total nitrogen, total phosphorous
measurement equipment

2.4

2.1

2.5

3.0

2015

2016

2017

2018

HAKARU EXpress

Install
Equipment

StableOperation
RoutineMaint.

Fore.

Daily
Maint.

Measurement

Analytical part of AQMS, produced
at HORIBA BIWAKO E-HARBOR© 2018 HORIBA, Ltd. All rights reserved.

Trouble

AQMS

Diagnosis

Analysis

RecoveryDan Horiba
President of HORIBA
Advanced TechnoCo., Ltd.

“HAKARU EXpress” service ※: HAKARU = Measuring in Japanese19Medical First Half Results and 2018 Forecast(Billions of yen)2018 First Half Results

Sales【Half year】 Sales and O.P.

O.P.

＋

Strong sales of new products in Japan13.9 13.7 13.8 12.7＋

Sales increase in Europe in yen terms due to the weakeryen

1.3 1.2 1.5 1.2

Business expansion in emerging countries (China, India)

15.1H 15.2H 16.1H 16.2H 17.1H 17.2H 18.1H 18.2H＋

12.3 12.8 13.1 12.8

0.8 1.0 1.0 0.9
Fore.

2018 Full Year Forecast
Intensified competition in hematology and
CRP analyzers in Japan＋

Further business expansion in emerging countries withhigh demand

2.4

Higher sales promotion expenses due to new productlaunch2013© 2018 HORIBA, Ltd. All rights reserved.

O.P.

26.8 27.0 27.6 26.5 25.1 26.0 26.0

＋
-

＋
-

Sales

【Full year】 Sales and O.P.

2.5

2.8

1.7
2014

2015

2016

1.9

2.0

2.0

2017

2018

2018

Prev.
Fore.

Current
Fore.

20

Medical Initiatives for business expansion
New products to be launched globally
Mid and large-sized
new product“HELO Solution”
Completed installationin France, Brazil, Thailand
and the U.K.

Installation case in Brazil

Opened the application center (biochemical)
to accelerate the U.S. business To start full operation in August 2018 (plan)in Irvine, California
 For application development in thebiochemical field Biochemical business consolidated sales:¥4.1bn(2017)5 diff. white cell diagnosis + CRP“Yumizen H630”
Favorable sales to doctors in private
practice in Japan

Business alliance with Siemens Healthcare Diagnostics
In the process of arranging products for obtaining
accreditation© 2018 HORIBA, Ltd. All rights reserved.

Biochemical analytical equipment to be launched in
the U.S. (OEM supply from JEOL Ltd.)
21

Semi

First Half Results and 2018 Forecast(Billions of yen)2018 First Half Results
Record-high sales and O.P.
Record-high production volume in Mass Flow Controllers(MFC)
The Aso factory expansion boosted supply capacity.

＋＋＋

2018 Full Year Forecast
＋
-

＋
＋

Anticipate a pick-up in investment in the second half due tosolid demand from a mid- to long-term perspective, despite
the current time-out in capital spending demand by semicon
makersJapan: The Aso factory’s full-fledged operation has
stabilized the supply system.
Overseas : Opening of a new development base in the U.S.
to enhance a global R&D capacity© 2018 HORIBA, Ltd. All rights reserved.

Sales【Half year】 Sales and O.P.

19.1 16.2 17.8 20.9
5.1 4.2 4.4 5.1

24.7
6.7

O.P.

28.5

8.8

32.3
10.2

27.6
8.7

15.1H 15.2H 16.1H 16.2H 17.1H 17.2H 18.1H 18.2H
Fore.

Sales

【Full year】 Sales and O.P.

O.P.

66.0

53.3
24.1 28.9

4.8

6.4

2013

2014

35.3 38.8

22.0
15.6

9.4

9.6

2015

2016

2017

60.0

19.0

2018

2018

Prev.
Fore.

Current
Fore.

22

Semi

Strengthen supply capacity and global R&D

Full-fledged production after the Aso expansion

Opening of HORIBA Reno Technology Center

Combined output at Aso and Kyoto
350,000 MFCs per year

Enhance a N. America development base in the focus area

Production status: Record-high output (March 2018)
Aso Factory: Mass production of MFCs
Kyoto Factory: Development and production ofadvanced MFCs

Start: Aug. 2018 Investment: App. ¥1.2bn
Place: Reno, Nevada, the U.S.
Activity: Development in fluid measurement and control
technologies

Expanded area

HORIBA STEC Aso Factory

Construction completion
ceremony (May 2018)

Establish a global R&D capability

Reno Technology Center’s surroundings

Relocate into the semiconductor industry
cluster region
1. Deepen relationship with customers
2. Promptly capture needs
3. Incorporate into products

Reno Tech Center
Semi/battery makers

HORIBA’s semicon bases
SPE makers

HORIBA’s global MFC market share: About 60% (HORIBA’s estimate; as of 2018)© 2018 HORIBA, Ltd. All rights reserved.

23

Scientific First Half Results and 2018 Forecast(Billions of yen)2018 First Half Results＋ Sales increase in Japan and Europe on the back ofrobust corporate R&D spending＋ Americas’ sales up for semicon makers' spectroscopes-

Expense incurred to strengthen bases in Americas

Sales【Half year】 Sales and O.P.
13.1 13.6 12.3 13.3
0.6 0.5

0.2

O.P.

14.6
11.5

15.4
12.5
1.1

0.9

0.6
-0.4

-0.5

15.1H 15.2H 16.1H 16.2H 17.1H 17.2H 18.1H 18.2H
Fore.

2018 Full Year Forecast＋ Solid sales in Japan to continue

22.9＋ Enhance actions for business expansion in secondary batteries-

Risk in temporary slowdown in sales of spectroscopes forsemicon makers in Americas

O.P.

28.0 28.0
25.6 26.7 25.7 26.1

1.2
0.9

1.1

0.9
0.4

2013

© 2018 HORIBA, Ltd. All rights reserved.

Sales【Full year】 Sales and O.P.

2014

2015

2016

2017

0.6

0.6

2018

2018

Prev.
Fore.

Current
Fore.

24

Scientific Strengthen global bases and expand core businessOpening of HORIBA New Jersey
Optical Spectroscopy Center
Start: Aug. 2018 Investment: App. ¥2.1bn
Place: Piscataway, New Jersey, the U.S.
Activity: Development and production of fluorescenceanalyzers and spectrometers
Expand demand
for semiconductors

Expand into thelife science field

Fluorescence analyzer
DUETTA

Spectrometer

Hosting of the RamanFest 2018 International
Symposium on Raman technologies
Held on June 25 and 26, 2018
 Attended by about 100 advanced technology researchersand developers
 HORIBA initiated this project, held the first one in 2013
and the first in Japan in 2018.
 16 academic/corporate speakers and poster session
 Connecting academia and industries

Aim at further business expansion as a leading company
with a 50-year history in Raman Spectroscopy
Raman Spectroscopy
global share 30%※HORIBA New Jersey Optical Spectroscopy Center© 2018 HORIBA, Ltd. All rights reserved.

RamanFest 2018

* HORIBA’s estimate (as of 2018)25

Contents
2018 First Half Results
2018 Forecast
Business Segments Outline
Shareholder ReturnOther Topics
Financial Data
Corporate profile© 2018 HORIBA, Ltd. All rights reserved.

26

Shareholder Return
Basic policy-Dividend payment + Share buyback = 30% of Consolidated net profit to be targeted-Remaining earnings are retained internally for strategic investment (i.e. facilities, M&A)
Per-share dividend(from 2008 to 2018 Forecast)

Dividends per share and Share buyback
InterimYear-end

2016 Results
85 yen[30 yen, 55 yen]2017 Results 116 yen[40 yen, 76 yen]2018 Forecast 120 yen[50 yen, 70 yen]

Renewed record-highs in
dividend in 7 years (Fore.)
44

40

50

60

116 120
85

67 70

13 17
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018Fore.

© 2018 HORIBA, Ltd. All rights reserved.

27

Contents
2018 First Half Results
2018 Forecast
Business Segments Outline
Shareholder ReturnOther Topics
Financial Data
Corporate profile© 2018 HORIBA, Ltd. All rights reserved.

28

HORIBA’s perspectives on ESG investment
Contribution to the environment and society via its business;
Building of an open & fair governance structure【Examples】
Emission gas
measurement system
Portableemissionmeasurement
systemOBS-ONE

Contribute toemission regulations,realizing healthy society,preventing climate change

Environment-related
products
Contribute to environmental preservation andimprovement by identifying
Industrial water
causes of pollutions via
quality analyzer
analysis of air pollutants
H-1 Series
and industrial waste© 2018 HORIBA, Ltd. All rights reserved.

Outside Directors with diverse
Innovation for electrification
experiences and skills& autonomous driving
Help realize safe, pleasantsociety

MIRA Technology InstituteContribute to industries’
development by developing
next-gen. talents

Aso factory’s expansion
Contribute to local communities
and continuous job creation

Raise the quality of strategies by making
decisions upon active discussions at theBoard of Directors and corporate value
Sawako Takeuchi
Academic background as a holder of a
doctor’s degree in engineering andinternational experience

Masahiro Sugita
Deep insight and knowledge on financeand economy, and accumulated experience
as a director and auditor of othercompanies

Jiko Higashifushimi
Insight as Head Priest of the Shorenin
Religious Corporation and work experienceat a financial institution
29

HORIBA Premium Value to improve asset efficiency
Case of an improved asset efficiency in the MCT business Improvement at Olomouc Factory (Czech) with a focus
on production of standard Chassis dynamometers Full review of production processes and supply
chain and adoption of the Kanban pull system

25% cut in production lead-timeWorkshops on adoption of a new benchmark
 Action plan for those responsible in global finance Workshops for managers

Olomouc Factory (left) and its production area (right)

HORIBA Premium ValueA new management benchmark
with awareness on WACC

 Action plan (examples)
O.P.
Cost of capital・Promoting the benchmark to all group employees
・Optimization of group inventory by sharing inventory(Invested capital X In-houserate of cost of capital)
information
・Building of a sales company-factory cooperative structure for collection of receivables© 2018 HORIBA, Ltd. All rights reserved.

30

Contents
2018 First Half Results
2018 Forecast
Business Segments Outline
Shareholder ReturnOther Topics
Financial Data
Corporate profile© 2018 HORIBA, Ltd. All rights reserved.

31

Trend of Market capitalization¥407bnon May 14, 2018
(Record-high)¥132bnin Jan. 2008¥52bn
in Dec. 2008

Jan-2008

Jan-2009© 2018 HORIBA, Ltd. All rights reserved.

Jan-2010

Jan-2011

Jan-2012

Jan-2013

Jan-2014

Jan-2015

Jan-2016

Jan-2017

Jan-2018

32

Operating Profit Analysis (vs 2017)(Billions of yen)

2017

2018

Jan. – Jun.

Jan. – Jun.

9.70

Increase
Sales

Increase
Cost of
Goods
Sales

Exchange
Impact for
Gross
ProfitExchange
Impact for
Expenses

Increase
R&D Cost

Increase
Other
Expenses+11.66

-4.98

+0.06

-0.36

-0.44

-1.58

Increase
Gross Profit +6.68

14.05

Exchange Impact -0.30 Increase Expenses -2.02

Increase of Operating Profit +4.35© 2018 HORIBA, Ltd. All rights reserved.

33

Impact of Fluctuation in Foreign exchange
Exchange rate impact (2018 First-Half Results)
Sales +¥0.97bn O.P. -¥0.30bn
Sales
Total

USD

Operating profit
EUR

Total

USD

EUR

Auto

+0.67 -0.13 +0.48-0.02 -0.04 +0.03

P&E+0.05 -0.06 +0.07+0.08 +0.00 +0.04

Medical+0.34 -0.06 +0.39-0.11 +0.00 -0.10

Semi-0.25 -0.46 +0.03-0.24 -0.39 +0.02

Scientific+0.14 -0.15 +0.27-0.00 +0.00 -0.00

Total+0.97 -0.88 +1.26-0.30 -0.42 -0.00

2016 Jan. - Dec.
2017 Jan. - Dec.
2018 Jan. - Dec. (Fore.)© 2018 HORIBA, Ltd. All rights reserved.

(Billions of Yen)

Exchange rate impact
for 2018 Forecast
1 yen impact of Sales and O.P.
(Yen appreciation)

Sales
USD -¥0.47bn
EUR -¥0.33bn

Operating profit
USD -¥0.20bn
EUR -¥0.02bn

USD : 108.78 yen, EUR : 120.26 yen
USD : 112.16 yen, EUR : 126.70 yen
USD : 110.00 yen, EUR : 130.00 yen
34Capital Investment, Depreciation, R&D
2018

2017

Results

Forecast

Forecast（as of May 9）（as of Aug. 3）

vs
2017

vs
Previous
Forecast(Billions of Yen)
2017

2018

First-Half
Results

First-Half
Results

Capital Investment

11.6

16.0

16.0

+0.4

-

5.5

5.7

Depreciation

7.5

7.5

7.5

-0.0

-

3.6

3.5

R&D

13.9

15.5

15.5

+0.1

-

6.6

7.2

7.1%

7.1%

7.3%

7.6%

7.2%

(To net sales)

-PP&E
2018
Topics -Depreciation-R&D© 2018 HORIBA, Ltd. All rights reserved.

Enhancement of North American bases, Investment to MIRA,
Battery evaluation testing facility (HORIBA BIWAKO E-HARBOR),
Enhancement of global bases
Decrease Goodwill of MIRA※(¥0.4bn/year)+ Increase by new investment
Increase in Auto Business※Good will of MIRA e.g...Amortization included
35

Consolidated Cash Flows(Billions of Yen)

2018
First Half2017
First Half

Variation

Cash flows from operating activities+12.40+16.27-3.86

Cash flows from investing activities

-4.43

-6.80

+2.37

Cash flows from financing activities

-4.31

-7.10

+2.79

Cash and cash equivalents at end of year

61.47

54.17

+7.29

Free cash flows

+7.97

+9.47

-1.49

© 2018 HORIBA, Ltd. All rights reserved.

36

Cash Balance
Total Loan Balance(Billions of Yen)

46.7

44.7

※1

Cash
47.8

Bonds
15.0
Long
16.8
Short
12.8

2015
242％
56％

※1

Cash
51.9

Bonds
15.0
Long
19.2
Short
12.4

2016
237％
55％

(Consolidated basis, each end of year)

42.0

Cash※1
58.3

40.5

Bonds
15.0

Bond
redemption
In 2020
Cash※1
61.4

Bonds
15.0

Long
18.7

Long
18.3

Short 8.3

Short 7.1

2017
239％
57％

2018 end of Jun.
245％
57％

Borrowedfrom JBIC※2¥15.1bn

Current ratio
Capital ratio- Loan repayment due to group financing- Recent issuer rating : R&I “A-” (July 2017), JCR “A” (August 2017)*1 Cash*…Cash and Cash Equivalents at End of Period. *2 JBIC: Japan Bank for International Cooperation© 2018 HORIBA, Ltd. All rights reserved.

37

Contents
2018 First Half Results
2018 Forecast
Business Segments Outline
Shareholder ReturnOther Topics
Financial Data
Corporate profile© 2018 HORIBA, Ltd. All rights reserved.

38

Corporate Profile
Head Office
Foundation
Incorporation
Fiscal Year End

Kyoto, Japan
1945
1953
December 31- Corporate motto -Atsushi Horiba
Chairman & Group CEO
To have interest and pridein our work to enjoy our lives© 2018 HORIBA, Ltd. All rights reserved.

39

Business Segments
Automotive Test Systems

Process & Environmental

Medical

Semiconductor

Scientific© 2018 HORIBA, Ltd. All rights reserved.

・Emission Measurement Systems
・Test Automation Systems
・Intelligent Transport Systems
・Engineering Consultancy & Testing(HORIBA MIRA, Ltd)・Environmental & Process Systems
・Environmental Radiation Monitor
・Environmental Regulation & Process Business

・In-Vitro Diagnostic (IVD) Systems
・Integration of HORIBA ABX’s
Technology & Marketing Know-how
・Mass Flow Controller
・In-situ Analysis
・Synergy among HORIBA HQ, HORIBA STEC, HORIBA Advanced Technoand HORIBA Jobin Yvon’s Technologies

・Raman, Grating, and Fluorescence・Synergy of HORIBA and HORIBA Jobin Yvon’s Technologies
40Business Segments
Sales Breakdown by Segment

Sales: ¥195.3bn
13%

Automotive Test Systems

Scientific

26.1
（231）

Process & Environmental

Medical

27%

73.3
（649）

Semicon53.3（471）
Medical

Semiconductor

Automotive

25.1
（222）

P&E

17.4
（154）

13%
Scientific9%( ) =Segment Sales in MUSD
% = Segment Sales Ratio© 2018 HORIBA, Ltd. All rights reserved.

38%(Sales of FY2017)41

Market Share
GlobalDomestic

Emission Measurement Systems

Automatic Blood Cell Counterplus CRP

80%

Stack Gas Analyzers

100%

20%

(As of December 31, 2015)

Mass Flow Controllers

60%

Raman Spectrophotometers

30%

Gratings

35%※Market shares quoted are estimates by HORIBA.

© 2018 HORIBA, Ltd. All rights reserved.

42

HORIBA Worldwide
Sales of FY2017 : ¥195.3bn(1,729 MUSD)

Sales Ratio by Region
EU
21%

Japan
33%

Americas17%© 2018 HORIBA, Ltd. All rights reserved.

Asia
29%

The Number of Group Companies by region(As of December 31, 2017)

Americas
Europe
Asia
Total

9
22
17 (4 in Japan, including HORIBA, Ltd.)
48
43

Employees by Region
Americas
2%

Other Europe

2%

The U.S.

7,399

11%
Germany

Japan

8%

Japan
38%
38%

The U.K.

11%
France12%

Total Number of Employees

Other
Asia
14%16%

Total Asia : 4,041

54%
Total Europe： 2,414

33%
Total Americas： 944

13%(As of December 31, 2017)© 2018 HORIBA, Ltd. All rights reserved.

44

© 2018 HORIBA, Ltd. All rights reserved.

45