Horiba, Ltd. · TSE:6856

Horiba — Q1 2020 Earnings Presentation

48 slides from Horiba's earnings presentation, Jun 25, 2020

Slide 1: Financial Information HORIBA, Ltd.
Financial Information HORIBA, Ltd. June, 2020 (This material was prepared for the 2020Q1 financial results briefing performed on the 25 th Jun., 2020) © 2020 HORIBA, Ltd. All rights reserved. 1
Slide 4: Review of 2019
Review of 2019  The rise of protectionism (the US-China trade conflict, the deteriorating Japan-South Korea relationship) External  BREXIT Events  Slowdown in capital spending on semiconductors  The accelerating automotive electrification trend and tighter emission regulations globally  Formula
Slide 5: Summary of 2019 Results
Summary of 2019 Results Year-on year decrease in sales and profit due to slowdown of the semiconductor segment Year-on-year decrease in sales and profit of the Semiconductor segment due to impacts of the market P&L Due to a change in geographical sales mix and other factors, decline in profitabili
Slide 6: 2019 Results
2019 Results (Billions of Yen) 2018 2019 Forecast vs vs Results Results Forecast (as of Nov. 11) 2018 (as of Nov. 11) Sales 210.5 207.0 200.2 -10.3 -6.7 Operating Profit 28.8 23.0 20.9 -7.9 -2.0 O.P.% 13.7% 11.1% 10.4% -3.3p -0.7p Ordinary Profit 28.3 22.5 20.5 -7.7 -1.9 Net Income attributable to O
Slide 7: 2019 Results by Segment
2019 Results by Segment (Billions of Yen) Sales Operating profit 2018 2019 2018 2019 vs vs vs vs Results Forecast Results Results Forecast Results (as of Nov. 11) 2018 Forecast (as of Nov. 11) 2018 Forecast :Record-high (as of Nov. 11) (as of Nov. 11) Auto 79.6 83.0 81.0 +1.3 -1.9 7.7 7.0 6.4 -1.2 -
Slide 9: Background of the Announcement of Earnings Forecasts and Dividend Forecasts
Background of the Announcement of Earnings Forecasts and Dividend Forecasts  14th Feb. Disclosed Earnings Forecasts and Dividend Forecasts  In response to the relaxation of  16th Apr. Withdrew Earnings Forecasts and restriction of the public's movements in various countries Dividend Forecasts and
Slide 10: 2020 Forecasts
2020 Forecasts (Billions of Yen) 2019 2020 Forecast Forecast vs 2019 Results (as of Feb. 14) First Half Second Half Full year Yen % Sales 200.2 215.0 84.0 103.0 187.0 -13.2 -7% Operating Profit 20.9 25.0 5.5 9.5 15.0 -5.9 -28% O.P. % 10.4% 11.6% 6.5% 9.2% 8.0% -2.4p Ordinary Profit 20.5 24.5 5.5 9.0
Slide 11: 2020 Forecasts by Segments
2020 Forecasts by Segments (Billions of Yen) 2019 2020 Forecast vs 2019 [Topics by segments] Forecast Results (as of Fec. 14) Full year Yen % <Auto, Process & Environment, Scientific>  Product shipment and acceptance may be delayed because of Auto 81.0 85.0 68.0 -13.0 -16% measures to restrict the
Slide 12: Market Assumptions by Regions and HORIBA Group's Status
Market Assumptions by Regions and HORIBA Group’s Status Market Assumption HORIBA Group’s Status in response to the spread of COVID-19 Procurement Production Promotion/Sales Japan  Recovery of sales are expected along with full- scale recovery of economic activities after the state of emergency was
Slide 13: Cash Balance
Cash Balance (Billions of Yen) (Consolidated basis, each end of period) Total Loan Balance 70.3 68.4 Bond Cash* redemption Cash* ¥15.0bn 42.0 44.0 95.6 95.7 Bonds Bonds (2020) 45.0 Cash* Bonds Cash* Bonds 45.0 15.0 63.6 15.0 Borrowed 58.9 Long Long from JBIC Long 17.0 Long 18.7 16.8 ¥15.1bn 16.7 Sho
Slide 14: Approach to Capital Investments and R&D
Approach to Capital Investments and R&D  Capital investment  Continue strategic investment from a long-term perspective  Continue large-scale capital investment such as construction of new facility in China; scrutinizing the schedule  Scrutinize renewal investment and others and implement from t
Slide 16: Priority Measures of MLMAP2023
Priority Measures of MLMAP2023 MLMAP2023 Slogan “ONE STAGE AHEAD” 1. Market Oriented Business  To develop analysis and measurement solutions, utilizing HORIBA’s core technologies, in the leading three business fields of the mega trend 2. Solution Provider Beyond Life Cycle Management  To support c
Slide 17: Accelerate Business in Electrification Area
Market Oriented Business Energy & Environment Accelerate Business in Electrification Area Global increase in demand for electrified vehicles Enhance the field of evaluation Establish a production system that of fuel cell and power-train systems responds to demand HORIBA FuelCon’s new facility Techno
Slide 18: Growing Needs for Environmental Measures
Market Oriented Business Energy & Environment Growing Needs for Environmental Measures 【Water monitoring】【Gas monitoring】 Water monitoring system for vessel emission gas scrubber Air pollution monitoring system Emission gas regulations targeting vessels Air pollution such as PM2.5 is a global-wide
Slide 19: Contribute to the entire semiconductor manufacturing process
Market Oriented Business Materials & Contribute to the entire semiconductor Semiconductors manufacturing process *Typical Diverse product line-up contributing to the overall semicon manufacturing process product example Quality control & Material assessment Manufacturing process waste water treatmen
Slide 20: Medical: Expand and Maintain Production Bases
Market Oriented Business Bio & Healthcare Medical: Expand and Maintain Production Bases Japan France Emerging countries Renovate the production line at Purchase of the land adjacent Prepare for the expanding Aso Plant, HORIBA STEC to HORIBA ABX Medical business Reinforce adaptation to the global sta
Slide 21: Contribute to Research in Life Sciences
Market Oriented Business Bio & Healthcare Contribute to Research in Life Sciences Analyzers for life sciences Nanoparticle measurement Transmission Raman Confocal Raman Microscope instrument Fluorescence analyzer LabRAM HR Evolution ViewSizer™ 3000 DUETTA  2D analysis of medicinal  Particle distri
Slide 22: To Change to a Solution-proposal Style Business
Solution Provider Beyond Life Cycle Management To Change to a Solution-proposal Style Business Always with You Support customers in all ways Architectural Rendering Building a new HQ for HORIBA TECHNO SERVICE Integrate functions and enhance abilities to gather/transmit information Expand the analy
Slide 23: Start construction of a new facility in China
Solution Provider Beyond Life Cycle Management Start construction of a new facility in China Integrate strengths of all businesses and R&D/production/service functions Architectural rendering Automotive testing labs  Install battery/fuel cell test systems, chassis dynamo, and drive test systems  E
Slide 24: A "Super Dream Team" to Embody "Joy and Fun"
HORIBA Core Values “The Next Stage of Super Dream Team” A "Super Dream Team" to Embody "Joy and Fun" Activities to create new value and realize a strong HORIBA BlackJack Project Stained Glass Project Basis for multi-product low-volume manufacturing Promote diversity as a management strategy and a gl
Slide 26: 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  2018 Results: 145yen [Interim 50yen/Year-end 95yen
Slide 28: Expand Core Technologies and Contribute to Society
Expand Core Technologies and Contribute to Society Montajir Rahman, HORIBA Instruments (US), HORIBA Jobin Ybon IBH received the Business received the SAE/InterRegs Standards & Regulations Innovation Award from the Institute of Physics in the UK Award 2020  Award theme: Development of  Montajir Rah
Slide 29: Awarded Nadeshiko Brands and Health & Productivity Stock Selection Program
Awarded Nadeshiko Brands and Health & Productivity Stock Selection Program by METI and Tokyo Stock Exchange Activities aimed at realizing a better working environment highly evaluated from the stock market Selected for two consecutive years following 2019 Evaluated our activities based on the Evalua
Slide 31: 2020 Jan.-Mar. Results
2020 Jan.-Mar. Results (Billions of Yen) Decreased in sales and profits due to a decline in sales all business segments except the semiconductor segment 2019 2020 vs 2019 1Q Results 1Q Results Changes % (Jan-Mar) (Jan-Mar) Sales 45.3 44.9 -0.3 -1% Operating Profit 4.4 3.8 -0.5 -12% O.P.% 9.8% 8.7% -
Slide 32: 2020 Jan.-Mar. Results by Segments
2020 Jan.-Mar. Results by Segments (Billions of Yen) Sales 2019 2020 1Q Results 1Q Results vs 2019 % (Jan-Mar) (Jan-Mar) <Auto> Auto 16.2 14.8 -1.3 -8% • Affected by stagnation of corporate activities owing to the spread of COVID-19 P&E 4.7 4.5 -0.1 -4%  EMS: Decline in sales in Europe and Americas
Slide 33: Impact of Fluctuation in Foreign exchange
Impact of Fluctuation in Foreign exchange (Billions of Yen) Exchange rate impact (2020 Jan.-Mar. results) 2020 Jan.-Mar. results vs 2019 Decrease Sales - 0.68 Decrease Cost of Goods Sales + 0.39 Decrease Expense + 0.21 Impact to Operatinf Profit - 0.07 (Yen) 2019 Jan.-Mar. 2020 Jan.-Mar. Deiff. USD
Slide 34: Operating Profit Analysis (vs 2019)
Operating Profit Analysis (vs 2019) (Billions of Yen) 2019 2020 Jan. – Mar. Jan. - Mar. 4.43 Increase Exchange Exchange Increase 3.89 Increase Increase Cost of Goods Impact for Impact for Other Sales R&D Cost Sales Gross Profit Expenses Expense +0.36 +0.21 -0.14 -0.59 -0.29 -0.08 Excluded exchange i
Slide 35: Capital Investment, Depreciation, R&D
Capital Investment, Depreciation, R&D (Billions of Yen) Increase in capital expenditures due to enhancement of business sites Forecasts will be disclosed as soon as they become available. 2019 2019 2020 1Q Results 1Q Results Results (Jan.-Mar.) (Jan.-Mar.) Capital Investment 12.8 2.3 3.4 Depreciatio
Slide 37: Expanding in New Domains and Moving onto a New Stage
Business Segments Automotive Process & Test Systems Environmental Medical Semiconductor Scientific Scientific Expanding in New 14% Automotive Net Sales 200.2 billion yen Semiconductor 40% Domains and Moving onto a New Stage 23% Medical P&E Sales by business segment (%) 13% 10% Fiscal 2019 © 2020 HOR
Slide 38: Global Network
Global Network (as of Dec 2019) Sales Sales Sales Sales 22% 31% 31% 16% Europe Asia Japan Americas Americas Other Europe 2% 2% USA 10% Employees by Region The number of companies Japan Germany 10% 38% Americas 993 （12％） 7 UK Europe 2,771 （33％） 23 10% France Other Asia 4,524 （55％） 19 (4 in Japan, Inc
Slide 39: HORIBA's Steady Growth
HORIBA’s Steady Growth Fiscal year ending Dec. 2019 Net sales: 200.2 billion yen Moving on to Operating profit: 20.9 billion yen the next stage with our new Mid- Long Term Management 1953 Plan HORIBA, LTD. was established 1960 1970 1980 1990 2000 2010 Founded business as Developed globally Expanded
Slide 41: HORIBA MIRA Ltd.
HORIBA MIRA Ltd. Providing Engineering Service with World Leading Mobility Development Capability and R&D Location with Dedicated Facilities and Proving Ground Business Offering 1. Vehicle development engineering 2. Test engineering 3. MIRA Technology Park (Providing Unique R&D Location) Established
Slide 42: MIRA Technology Park
MIRA Technology Park Various experiments using a large test course MIRA Technology Park 30 customers 1km Test Site Proving ground “35” Test Site • Performance(4.5km) Wind Tunnels / EMC / Crash • Off road lab/NVH Chassis/Battery test • Wet surface • City Circuit • Noise-Generating • Ride & Durability
Slide 43: HORIBA BIWAKO E-HARBOR
HORIBA BIWAKO E-HARBOR  Consolidating development, design, and production operations of gas measurement equipment at a single location  Doubling of production capability and shortening delivery time to one-third by using a new production methodology  Comprehensive engineering services from sales
Slide 47: 2020 Forecasts
2020 Forecasts Status of each segment following the spread of COVID-19 The reduction in R&D investment by automotive manufacturers, given a decline in automobile sales, will have an impact. Auto Product shipment and delivery may be delayed because of measures to restrict the public’s movements by va
Slide 48: Response to the spread of COVID-19
Response to the spread of COVID-19 HORIBA Group’s response and status (As of May 20th, 2020)  The production/distribution situation varies depending on the country/region and business.  While service and maintenance are impacted due to restriction of people’s movement, HORIBA continues business ac

HORIBA — Q1 2020 Earnings Presentation on 6ix

Horiba — Q1 2020 Earnings Presentation

Slide 1: Financial Information HORIBA, Ltd.

Slide 2: Contents

Slide 3: Contents

Slide 4: Review of 2019

Slide 5: Summary of 2019 Results

Slide 6: 2019 Results

Slide 7: 2019 Results by Segment

Slide 8: Contents

Slide 9: Background of the Announcement of Earnings Forecasts and Dividend Forecasts

Slide 10: 2020 Forecasts

Slide 11: 2020 Forecasts by Segments

Slide 12: Market Assumptions by Regions and HORIBA Group's Status

Slide 13: Cash Balance

Slide 14: Approach to Capital Investments and R&D

Slide 15: Contents

Slide 16: Priority Measures of MLMAP2023

Slide 17: Accelerate Business in Electrification Area

Slide 18: Growing Needs for Environmental Measures

Slide 19: Contribute to the entire semiconductor manufacturing process

Slide 20: Medical: Expand and Maintain Production Bases

Slide 21: Contribute to Research in Life Sciences

Slide 22: To Change to a Solution-proposal Style Business

Slide 23: Start construction of a new facility in China

Slide 24: A "Super Dream Team" to Embody "Joy and Fun"

Slide 25: Contents

Slide 26: Shareholder Return

Slide 27: Contents

Slide 28: Expand Core Technologies and Contribute to Society

Slide 29: Awarded Nadeshiko Brands and Health & Productivity Stock Selection Program

Slide 30: Contents

Slide 31: 2020 Jan.-Mar. Results

Slide 32: 2020 Jan.-Mar. Results by Segments

Slide 33: Impact of Fluctuation in Foreign exchange

Slide 34: Operating Profit Analysis (vs 2019)

Slide 35: Capital Investment, Depreciation, R&D

Slide 36: Contents

Slide 37: Expanding in New Domains and Moving onto a New Stage

Slide 38: Global Network

Slide 39: HORIBA's Steady Growth

Slide 40: HORIBA MIRA Ltd. / HORIBA BIWAKO E-HARBOR

Slide 41: HORIBA MIRA Ltd.

Slide 42: MIRA Technology Park

Slide 43: HORIBA BIWAKO E-HARBOR

Slide 44: HORIBA BIWAKO E-HARBOR

Slide 45: © 2020 HORIBA, Ltd. All rights reserved.

Slide 46: © 2020 HORIBA, Ltd. All rights reserved.

Slide 47: 2020 Forecasts

Slide 48: Response to the spread of COVID-19