Horiba, Ltd. · TSE:6856

Horiba — Q3 2023 Earnings Presentation

34 slides from Horiba's earnings presentation, Nov 24, 2023

Slide 2: Contents
Contents  2023 3Q (Jan.- Sep.) Results & 2023 Forecasts  Topics – Accelerate initiatives in focus markets  Shareholder Return  Financial Data  Corporate Profile © 2023 HORIBA, Ltd. All rights reserved. 2
Slide 3: Contents
Contents  2023 3Q (Jan.- Sep.) Results & 2023 Forecasts  Topics – Accelerate initiatives in focus markets  Shareholder Return  Financial Data  Corporate Profile © 2023 HORIBA, Ltd. All rights reserved. 3
Slide 4: 2023 3Q (Jan.-Sep.) Results
2023 3Q (Jan.-Sep.) Results （Billions of yen） Increased in sales in the Automotive segment. Decreased in profit mainly caused by a change in the Scientific product sales mix. 2022 2023 vs 2022 9 Months 9 Months Results Results Changes % (Jan.-Sep.) (Jan.-Sep.) Sales 185.1 200.6 +15.5 +8.4% Operating
Slide 5: 2023 3Q (Jan.-Sep.) Results by Segment
2023 3Q (Jan.-Sep.) Results by Segment Sales Operating profit (Billions of yen) 2022 2023 vs 2022 2022 2023 vs 2022 9 Months 9 Months 9 Months 9 Months Results Results Changes % Results Results Changes % (Jan.-Sep.) (Jan.-Sep.) (Jan.-Sep.) (Jan.-Sep.) Auto 41.3 48.1 +6.8 +16.6% -3.2 -2.7 +0.5 - P&E
Slide 6: 2023 Forecasts
2023 Forecasts (Billions of yen) Upward revision on forecasts for net sales and all profits 2022 2023 Changes Previous Forecasts vs Previous Results Forecasts vs 2022 (as of Nov. 13) Forecasts (as of Aug. 9) Sales 270.1 281.0 284.0 +13.8 +3.0 Operating profit 45.8 41.0 43.0 - 2.8 +2.0 O.P.% 17.0% 14
Slide 7: 2023 Forecasts by Segment
2023 Forecasts by Segment （Billions of yen）： Record-high <Semi> Upward revision done on sales and operating profit thanks to exchange rate trends. © 2023 HORIBA, Ltd. All rights reserved. 7
Slide 8: Contents
Contents  2023 3Q (Jan.- Sep.) Results & 2023 Forecasts  Topics – Accelerate initiatives in focus markets  Shareholder Return  Financial Data  Corporate Profile © 2023 HORIBA, Ltd. All rights reserved. 8
Slide 9: Accelerate initiatives in focus markets
Accelerate initiatives in focus markets Mid-Long Term Management Plan ”MLMAP2023” Market Oriented Business To develop analysis and measurement solutions, utilizing HORIBA’s core technologies, in the leading three business fields of the mega trend Energy & Environment Bio & Healthcare Materials & Sem
Slide 10: [Energy & Environment] Hydrogen Business
[Energy & Environment] Hydrogen Business Production tweaking to meet growing needs Growing demand for evaluation Started mass production in Europe systems and production inspection The HORIBA Group of water electrolyzers that produce hydrogen by using renewable energy systems for the development of
Slide 11: [Energy & Environment] Accelerated Global Partnership in Hydrogen Business
[Energy & Environment] Accelerated Global Partnership in Hydrogen Business Contributing to efficient use of hydrogen energy, i.e., fuel cells and electrolyzers Established a test facility center at HORIBA MIRA in partnership with Ceres Power  Provide various testing, required for developing SOFC &
Slide 12: [Energy & Environment] Conventional Energy
[Energy & Environment] Conventional Energy "HORIBA Will Always Be Involved in Combustion Measurement” Trends in various countries toward the introduction of new emission regulations Emission measurement and HORIBA’s application business order trend Nov. 2022: EU’s announcement of the Euro 7 emission
Slide 13: [Energy & Environment] Water Quality Measurement System: Strengthening Technology and Lineup
[Energy & Environment] Water Quality Measurement System: Strengthening Technology and Lineup Globalizing the water business and accelerating the market share growth in Asia TOCADERO (DE) Tethys (FR) HORIBA Advanced Techno (Asia)  Strengthen the ability to propose solutions for water measurement sys
Slide 14: [Bio & Healthcare] New Integrated Remote Monitoring Support Services for Medical Equipment
[Bio & Healthcare] ”New” Integrated Remote Monitoring Support Services for Medical Equipment Automatic report creation and remote functions: Contribute to medical workplace reform Launched “HORIBA MEDISIDE LINKAGE next” Strengthened “HORIBA MEDISIDE Background: Amended Labor Standards Act (scheduled
Slide 15: [Bio & Healthcare] Increase in Production of Micro Reagent Chips
[Bio & Healthcare] Increase in Production of Micro Reagent Chips for Multi-assay Blood Analyzers Multi-assay blood analyzer “Banalyst” for POCT of Hemoglobin A1C and CRP Visualized production lines to realize increased production efficiency Nickname of an area dedicated to manufacturing of micro rea
Slide 16: [Bio & Healthcare] Method Using Proprietary Technology Acquired Local Certification
[Bio & Healthcare] Method Using Proprietary Technology Acquired Local Certification Aqualog using HORIBA’s unique A-TEEM* technology adopted for pharmaceutical testing Shortening time to examine pharmaceuticals Pharmaceutical testing has many inspection items and some testing takes a long time. Thre
Slide 17: [Materials & Semiconductors] Contributing to Realizing High-quality Continuous Production
[Materials & Semiconductors] Contributing to Realizing High-quality Continuous Production Introducing high-end tabletop analysis technology into production process innovation Constant monitoring of production lines for thin metal films 【What to measure】 Measuring brush and switches for motor, and me
Slide 18: [Materials & Semiconductors] Aggressive Investment in the Semiconductor Field
[Materials & Semiconductors] Aggressive Investment in the Semiconductor Field Continuous investment to cope with the further growth of the semiconductor market Strengthening the production and development system for Reticle/mask particle detection equipment Launched a local MFC production line in In
Slide 19: Academic-government Collaboration Leads the Creation of Next-generation Ecosystems
Academic-government Collaboration Leads the Creation of Next- generation Ecosystems HORIBA’s top executives were appointed chairmen of industrial associations JEMIMA JAIMA （Japan Electric Measuring Instruments Manufacturers' Association）（Japan Analytical Instruments Manufacturers' Association ） Cha
Slide 20: Enhancing Industrial Process Monitoring Technology
Enhancing Industrial Process Monitoring Technology Acquisition of Process Instruments, Inc. in the United States  Lineup of high-accuracy  Robust devices and data spectroscopy solutions analysis capabilities  Global sales network cultivated in oil markets  Strength in refinery and petrochemistry
Slide 21: Expanding R&D base for semiconductor business
Expanding R&D base for semiconductor business Strengthen R&D capabilities in both core and next-generation technologies Add a new building in the “Kyoto Fukuchiyama Technology Center” (R&D base)  Expand a space for R&D and experiments for standard flow technologies to enhance R&D for core technolog
Slide 22: Contents
Contents  2023 3Q (Jan.- Sep.) Results & 2023 Forecasts  Topics – Accelerate initiatives in focus markets  Shareholder Return  Financial Data  Corporate Profile © 2023 HORIBA, Ltd. All rights reserved. 22
Slide 23: Shareholder Return
Shareholder Return Dividend payment + Share buyback = 30% of Consolidated net profit to be targeted Basic policy Remaining earnings are retained internally for strategic investment (i.e. facilities, M&A) Dividends per share and Share buybacks  2021 Results 150yen [Interim 50yen/Year-end 100yen]  2
Slide 24: Contents
Contents  2023 3Q (Jan.- Sep.) Results & 2023 Forecasts  Topics – Accelerate initiatives in focus markets  Shareholder Return  Financial Data  Corporate Profile © 2023 HORIBA, Ltd. All rights reserved. 24
Slide 25: Operating Profit Analysis (vs 2022 Jan. – Sep.)
Operating Profit Analysis (vs 2022 Jan. – Sep.) (Billions of yen) 2022 2023 Jan. – Sep. Jan. – Sep. Increase Exchange Exchange Increase 28.57 Increase Cost of Goods Impact for Impact for Increase Other 28.49 Sales Sales Gross Profit Expenses R&D Cost Expense ＋6.25 -2.85 +4.39 -2.14 -1.29 -4.42 Incre
Slide 26: Exchange Rate Trend / Forecasts / Impacts
Exchange Rate Trend / Forecasts / Impacts 2022 2023 Previous Actual Forecasts vs 2022 Annual Forecasts Jan. - Sep. Oct. - Dec. Annual (Annual) (as of Aug. 9) USD 131.62 137 138.24 149.28 141 +9.38 EUR 138.14 148 149.77 154.69 151 +12.86 Exchange rate impact Exchange rate impact for 2023 Jan. – Sep.
Slide 27: Capital Investment, Depreciation, R&D
Capital Investment, Depreciation, R&D (Billions of Yen) 2022 2023 2023 Previous Forecasts vs Actual Actual Forecasts Previous (as of Nov. 13) Jan. - Sep. (as of Aug. 9) Forecasts Capex 12.5 14.0 11.5 -2.5 6.0 Depreciation and 11.3 12.0 12.0 - 9.3 amortization R&D expenses 18.5 22.0 21.0 -1.0 15.0 to
Slide 28: Contents
Contents  2023 3Q (Jan.- Sep.) Results & 2023 Forecasts  Topics – Accelerate initiatives in focus markets  Shareholder Return  Financial Data  Corporate Profile © 2023 HORIBA, Ltd. All rights reserved. 28
Slide 29: Five Business Segments & Major Products
Five Business Segments & Major Products Figures are the sales composition ratio for FY 2022 Process & Automotive Medical Semiconductor Scientific Environmental （25%）（11%）（42%）（14%）（8%） Emission Measurement Automatic Blood Cell Stack Gas Analyzers Mass Flow Controllers Raman Imaging Device Syste
Slide 30: Global Network
Global Network Sales by region (as of Dec 2022) ● : Major business hubs Americas Europe Asia Japan 16% 20% 37% 27% Employee headcount by region (as of Dec 2022) Americas Europe Asia Japan 12% 32% 20% 36% Number of companies （as of Dec 31, 2022) 49 Overseas sales ratio （as of Dec 2022) 73% Foreign em
Slide 31: Achieving Sustainable Growth through M&A
Achieving Sustainable Growth through M&A Major M&As 1996 1997 2005 2015 2018 ABX (France) Jobin Yvon SCHENCK DTS MIRA(UK) FuelCon 【Medical】 (France) (Germany) 【Automotive】 (Germany) 【Scientific】【Automotive】【Automotive】 Trends in consolidated sales 270.1 billion yen About nine-fold growth in corpor
Slide 32: HORIBA’s Business Domain
HORIBA’s Business Domain Space Planetary probe Development Auroral analysis Agriculture New Material IT Infrastructure Health and Security Plant factory Development Diagnostic equipment IoT, Cloud, 5G Soil analysis Secondary battery New drug development Automation informatics Food safety Biomaterial

HORIBA — Q3 2023 Earnings Presentation on 6ix

Horiba — Q3 2023 Earnings Presentation

Slide 1: Financial Information

Slide 2: Contents

Slide 3: Contents

Slide 4: 2023 3Q (Jan.-Sep.) Results

Slide 5: 2023 3Q (Jan.-Sep.) Results by Segment

Slide 6: 2023 Forecasts

Slide 7: 2023 Forecasts by Segment

Slide 8: Contents

Slide 9: Accelerate initiatives in focus markets

Slide 10: [Energy & Environment] Hydrogen Business

Slide 11: [Energy & Environment] Accelerated Global Partnership in Hydrogen Business

Slide 12: [Energy & Environment] Conventional Energy

Slide 13: [Energy & Environment] Water Quality Measurement System: Strengthening Technology and Lineup

Slide 14: [Bio & Healthcare] New Integrated Remote Monitoring Support Services for Medical Equipment

Slide 15: [Bio & Healthcare] Increase in Production of Micro Reagent Chips

Slide 16: [Bio & Healthcare] Method Using Proprietary Technology Acquired Local Certification

Slide 17: [Materials & Semiconductors] Contributing to Realizing High-quality Continuous Production

Slide 18: [Materials & Semiconductors] Aggressive Investment in the Semiconductor Field

Slide 19: Academic-government Collaboration Leads the Creation of Next-generation Ecosystems

Slide 20: Enhancing Industrial Process Monitoring Technology

Slide 21: Expanding R&D base for semiconductor business

Slide 22: Contents

Slide 23: Shareholder Return

Slide 24: Contents

Slide 25: Operating Profit Analysis (vs 2022 Jan. – Sep.)

Slide 26: Exchange Rate Trend / Forecasts / Impacts

Slide 27: Capital Investment, Depreciation, R&D

Slide 28: Contents

Slide 29: Five Business Segments & Major Products

Slide 30: Global Network

Slide 31: Achieving Sustainable Growth through M&A

Slide 32: HORIBA’s Business Domain

Slide 33: HORIBA celebrates its 70th anniversary in 2023.

Slide 34: © 2023 HORIBA, Ltd. All rights reserved.