Horiba, Ltd. · TSE:6856

Horiba — H1 2023 Earnings Presentation

43 slides from Horiba's earnings presentation, Aug 24, 2023

  1. Slide 1: Financial Information

    Financial Information HORIBA, Ltd. August 2023 © 2023 HORIBA, Ltd. All rights reserved.

  2. Slide 2: Contents

    Contents  2023 First Half Results  2023 Forecasts  Outlines by Business Segment  Topics – Accelerate initiatives in focus markets  Shareholder Return  Financial Data  Corporate Profile © 2023 HORIBA, Ltd. All rights reserved. 2

  3. Slide 3: Contents

    Contents  2023 First Half Results  2023 Forecasts  Outlines by Business Segment  Topics – Accelerate initiatives in focus markets  Shareholder Return  Financial Data  Corporate Profile © 2023 HORIBA, Ltd. All rights reserved. 3

  4. Slide 4: Review of First Half of 2023

    Review of First Half of 2023  Revitalization of economic activity by reclassifying COVID-19’s category (equivalent to Class 2) to Class 5  Accelerated inflation, including a rise in energy prices, in addition to yen External depreciation Events  Greater delay than expected in recovery in demand f

  5. Slide 5: 2023 First Half Results

    2023 First Half Results (Billions of yen) 2022 2023 Changes 1st half 1st half results 1st half results vs Previous forecasts vs 2022 (Jan.-Jun.) (Jan.-Jun.) Forecasts (as of May 12) Sales 114.9 127.5 131.1 +16.1 +3.6 Operating profit 16.2 18.5 17.8 +1.5 - 0.6 O.P.% 14.1% 14.5% 13.6% -0.5p -0.9p Ordi

  6. Slide 6: 2023 First Half Results by Segment

    2023 First Half Results by Segment (Billions of yen) Sales Operating profit 2022 2023 vs 2022 2022 2023 vs 2022 1st half 1st half 1st half 1st half results results Changes results results Changes (Jan.-Jun.) (Jan.-Jun.) (Jan.-Jun.) (Jan.-Jun.) Auto 25.6 30.5 +4.8 -1.7 -2.1 -0.3 P&E 10.1 11.3 +1.1 0.

  7. Slide 7: 2023 First Half Results (B/S, CF)

    2023 First Half Results (B/S, CF) Total assets were ¥435.2bn, up ¥18.5bn, by increasing B/S inventory Equity ratio: 61.1% (compared to the end of Dec. 2022) Operating CF: Cash in ¥3.6bn due to operating profit Free CF: + ¥2.3bn CF Investing CF: Cash out ¥1.2bn due to capital investments Financi

  8. Slide 8: Contents

    Contents  2023 First Half Results  2023 Forecasts  Outlines by Business Segment  Topics – Accelerate initiatives in focus markets  Shareholder Return  Financial Data  Corporate Profile © 2023 HORIBA, Ltd. All rights reserved. 8

  9. Slide 9: HORIBA's Assumptions Regarding Market Environment

    HORIBA’s Assumptions Regarding Market Environment Continued concern about the impact of global inflation and geopolitical situations. General Expect a recovery in economic activities in the “with or post-COVID-19” era. Accelerate use of hydrogen energy/batteries and increase in plug-in vehicles. Aut

  10. Slide 10: 2023 Forecasts

    2023 Forecasts (Billions of yen) 2022 2023 Changes Previous Forecasts vs Previous Results Forecasts vs 2022 (as of Aug. 9) Forecasts (as of May 12) Sales 270.1 279.0 281.0 +10.8 +2.0 Operating profit 45.8 40.0 41.0 - 4.8 +1.0 O.P.% 17.0% 14.3% 14.6% -2.4p +0.3p Ordinary profit 46.8 39.5 41.0 - 5.8 +

  11. Slide 11: 2023 Forecasts by Segment

    2023 Forecasts by Segment (Billions of yen) Sales Operating profit 2022 2023 Changes 2022 2023 Changes Previous Previous Forecasts vs Previous Forecasts vs Previous Results Forecasts vs 2022 Results Forecasts vs 2022 (as of Aug. 9) forecasts (as of Aug. 9) forecasts (as of May 12) (as of May 12) Aut

  12. Slide 12: Contents

    Contents  2023 First Half Results  2023 Forecasts  Outlines by Business Segment  Topics – Accelerate initiatives in focus markets  Shareholder Return  Financial Data  Corporate Profile © 2023 HORIBA, Ltd. All rights reserved. 12

  13. Slide 13: Automotive: First Half Results and 2023 Forecasts

    Automotive First Half Results and 2023 Forecasts (Billions of yen) 2023 Full Year Forecasts 2023 First Half Results ※1 Mechatronics ※2 Engineering Consultancy & Testing Medium- to long-term outlook 【EMS】 【EMS】 • Sales increased on the back of recovery in demand, mainly in Asia. Increase in demand in

  14. Slide 14: Process & Environment: First Half Results and 2023 Forecasts

    Process & Environment First Half Results and 2023 Forecasts (Billions of yen) 2023 Full Year Forecasts 2023 First Half Results Medium- to long-term outlook ※1 Carbon dioxide Capture, Utilization and Storage ※2 Total Organic Carbon 【Gas monitoring】  Expect an increase in demand for process measureme

  15. Slide 15: Medical-Diagnosis: First Half Results and 2023 Forecasts

    Medical- Diagnosis First Half Results and 2023 Forecasts (Billions of yen) 2023 Full Year Forecasts 2023 First Half Results Medium- to long-term outlook  Sales of test reagents were on a recovery trend due to recovery of  Expect a recovery in sales of test reagent sales, following that of social a

  16. Slide 16: Semiconductor: First Half Results and 2023 Forecasts

    Semiconductor First Half Results and 2023 Forecasts (Billions of yen) 2023 Full Year Forecasts 2023 First Half Results Medium- to long-term outlook  A high order backlog at the end of 2022 led to sales  Capital investment by semiconductor manufacturers will increase, although demand for semiconduc

  17. Slide 17: Scientific: First Half Results and 2023 Forecasts

    Scientific First Half Results and 2023 Forecasts (Billions of yen) 2023 Full Year Forecasts 2023 First Half Results Medium- to long-term outlook  Increased sales of Raman Spectrometers, Particle-size  Expand the industrial manufacturing process evaluation and distribution analyzers, X-ray fluoresc

  18. Slide 18: Contents

    Contents  2023 First Half Results  2023 Forecasts  Outlines by Business Segment  Topics – Accelerate initiatives in focus markets  Shareholder Return  Financial Data  Corporate Profile © 2023 HORIBA, Ltd. All rights reserved. 18

  19. Slide 19: 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

  20. Slide 20: [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

  21. Slide 21: 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 &

  22. Slide 22: [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

  23. Slide 23: 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

  24. Slide 24: 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

  25. Slide 25: Increase in Production of Micro Reagent Chips for Multi-assay Blood Analyzers

    [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

  26. Slide 26: 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

  27. Slide 27: 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

  28. Slide 28: 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

  29. Slide 29: 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

  30. Slide 30: Contents

    Contents  2023 First Half Results  2023 Forecasts  Outlines by Business Segment  Topics – Accelerate initiatives in focus markets  Shareholder Return  Financial Data  Corporate Profile © 2023 HORIBA, Ltd. All rights reserved. 30

  31. Slide 31: 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

  32. Slide 32: Contents

    Contents  2023 First Half Results  2023 Forecasts  Outlines by Business Segment  Topics – Accelerate initiatives in focus markets  Shareholder Return  Financial Data  Corporate Profile © 2023 HORIBA, Ltd. All rights reserved. 32

  33. Slide 33: Exchange Rate Trend / Forecasts / Impacts

    Exchange Rate Trend / Forecasts / Impacts 2022 2023 Previous Actual Forecasts vs 2022 1H Annual Forecasts Annual (Annual) (as of 12 May ) 1H 2H USD 123.14 131.62 133 135.00 139.00 137 +5.38 EUR 134.39 138.14 144 145.93 150.07 148 +9.86 (Yen) Exchange rate impact for 2023 First Half results Exchange

  34. Slide 34: Operating Profit Analysis (vs 2022)

    Operating Profit Analysis (vs 2022) (Billions of yen) 2022 2023 Jan. – Jun. Jan. – Jun. Exchange Exchange Increase Increase Increase Increase impact for impact for R&D Other 16.26 Sales COGS Gross Profit Expense Expense Expense 17.83 ＋9.84 -5.7 +3.08 -1.36 -0.95 -3.31 Increase Exchange Increase Gros

  35. Slide 35: 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 Aug. 9) Jan. - Jun. (as of May 12) Forecasts Capex 12.5 14.0 14.0 - 4.2 Depreciation and amortization 11.3 12.0 12.0 - 5.9 R&D expenses 18.5 22.0 22.0 - 9.8 to net sal

  36. Slide 36: Cash Balance

    Cash Balance (Consolidated basis, each end of period) (Billions of yen) Total Loan Balance Cash Cash 80.1 139.8 Bond 77.0 135.0 Cash redemption Cash 67.2 127.7 ￥15.0bn 114.5 Bonds Bonds 57.9 （2026） 30.0 ￥15.0bn 30.0 Bonds （2029） 30.0 Bonds Long 30.0 Long 25.0 Borrowed from 37.5 Long Banks 24.8 Long

  37. Slide 37: Contents

    Contents  2023 First Half Results  2023 Forecasts  Outlines by Business Segment  Topics – Accelerate initiatives in focus markets  Shareholder Return  Financial Data  Corporate Profile © 2023 HORIBA, Ltd. All rights reserved. 37

  38. Slide 38: 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

  39. Slide 39: 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

  40. Slide 40: 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

  41. Slide 41: 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

  42. Slide 42: HORIBA celebrates its 70th anniversary in 2023.

    HORIBA celebrates its 70th anniversary in 2023. © 2023 HORIBA, Ltd. All rights reserved.

  43. Slide 43: © 2023 HORIBA, Ltd. All rights reserved.

    © 2023 HORIBA, Ltd. All rights reserved.

HORIBA — H1 2023 Earnings Presentation on 6ix