Horiba, Ltd. · TSE:6856

Horiba — Q3 2020 Earnings Presentation

30 slides from Horiba's earnings presentation, Dec 11, 2020

  1. Slide 1: Financial Information

    Financial Information HORIBA, Ltd. December, 2020 © 2020 HORIBA, Ltd. All rights reserved. 1

  2. Slide 2: Contents

    Contents 2020 3Q (Jan.-Sep.) Results 2020 Forecast Shareholder Return Topics -New product development for focused markets- Financial Data Corporate Profile © 2020 HORIBA, Ltd. All rights reserved. 2

  3. Slide 3: Contents

    Contents 2020 3Q (Jan.-Sep.) Results 2020 Forecast Shareholder Return Topics -New product development for focused markets- Financial Data Corporate Profile © 2020 HORIBA, Ltd. All rights reserved. 3

  4. Slide 4: 2020 3Q (Jan.-Sep.) Results

    2020 3Q (Jan.-Sep.) Results (Billons of Yen) Decreased in sales and profits due to a decline in sales all business segments except the semiconductor segment 2019 2020 vs 2019 3Q Results 3Q Results Changes % (Jan-Sep) (Jan-Sep) Sales 137.0 129.7 -7.2 -5% Operating Profit 12.0 10.9 -1.0 -9% O.P.% 8.8%

  5. Slide 5: 2020 3Q (Jan.-Sep.) Results by Segment

    2020 3Q (Jan.-Sep.) Results by Segment (Billons of Yen) Sales <Auto> 2019 2020 3Q Results 3Q Results vs 2019 % • Affected by stagnation of corporate activities owing to the spread of COVID-19. (Jan-Sep) (Jan-Sep) EMS/MCT*: Delayed product shipment and acceptance. Auto 52.0 41.6 -10.4 -20% P&E 13.8 1

  6. Slide 6: Contents

    Contents 2020 3Q (Jan.-Sep.) Results 2020 Forecast Shareholder Return Topics -New product development for focused markets- Financial Data Corporate Profile © 2020 HORIBA, Ltd. All rights reserved. 6

  7. Slide 7: 2020 External Environment

    2020 External Environment Economic activities have been resumed after lifting of restrictions but the future remains uncertain. General Negative impacts from macroeconomic trends, such as the results of the US presidential election and the US-China trade conflicts, are of concern. Most likely to be

  8. Slide 8: 2020 Forecast

    2020 Forecast (Billons of yen) In light of the progress achieved up to the third quarter of this year, revised operating profit and ordinary profit forecasts 2019 2020 Changes Previous vs Results Forecasts vs 2019 Forecasts Previous (as of Nov. 12) (as of Aug. 11) Forecasts Sales 200.2 188.0 188.0 -

  9. Slide 9: 2020 Forecast by Segment

    2020 Forecast by Segment (Billons of yen) Sales 2019 2020 Previous Results Forecasts Forecasts (as of Nov. 12) vs 2019 vs Previous Forecasts <Auto> (as of Aug. 11) Auto 81.0 68.0 67.0 -14.0 -1.0 • Product shipment and acceptance expected to be delayed in P&E 19.5 17.5 18.0 -1.5 +0.5 EMS and MCT. Med

  10. Slide 10: Contents

    Contents 2020 3Q (Jan.-Sep.) Results 2020 Forecast Shareholder Return Topics -New product development for focused markets- Financial Data Corporate Profile © 2020 HORIBA, Ltd. All rights reserved. 10

  11. Slide 11: Shareholder Return

    Shareholder Return Dividends per share and Share buybacks Ordinary dividend: 125yen 2018 Results 145yen [Interim 50yen/Year-end 95yem] Commemorative dividend for the 65th anniversary of the 2019 Results 130yen [Interim 50yen/Year-end 80yen] company foundation: 20yen 2020 Forecasts 75yen [Interim 30y

  12. Slide 12: Contents

    Contents 2020 3Q (Jan.-Sep.) Results 2020 Forecast Shareholder Return Topics -New product development for focused markets- Financial Data Corporate Profile © 2020 HORIBA, Ltd. All rights reserved. 12

  13. Slide 13: New Product Development for Focused Markets

    New Product Development for Focused Markets MLMAP2023 Market Oriented Business Bio & Healthcare/Materials & Semiconductor 【Three fields of focus by HORIBA】 Market Energy & Environment Bio & Healthcare Materials & Semiconductor Mobility, Power generation, Clinical testing, Pharmaceutical, Advanced ma

  14. Slide 14: New Product Development for Focused Markets

    New Product Development for Focused Markets MLMAP2023 Market Oriented Business Energy & Environment Strengthening the existing areas and further challenging growth areas Highly accurately reproduce complex Opened a safety test facility for in-vehicle batteries Real Driving Emissions (RDE) in the lab

  15. Slide 15: Contents

    Contents 2020 3Q (Jan.-Sep.) Results 2020 Forecast Shareholder Return Topics -New product development for focused markets- Financial Data Corporate Profile © 2020 HORIBA, Ltd. All rights reserved. 15

  16. Slide 16: Impact of Fluctuation in Foreign exchange

    Impact of Fluctuation in Foreign exchange Exchange rate impact (2020 3Q results) Exchange rate impact Sales -¥1.80bn O.P. -¥0.61bn for 2020 Forecast 1 yen impact of Sales and O.P. 2020 3Q results vs 2019 3Q (Yen appreciation) Decrease Sales - 1.80 Sales Decrease Cost of Goods Sales + 0.70 USD -¥0.48

  17. Slide 17: Operating Profit Analysis (vs 2019)

    Operating Profit Analysis (vs 2019) (Billions of yen) 2019 2020 Jan. – Sep. Jan. – Sep. Exchange Exchange Decrease 12.00 Decrease Decrease Decrease Impact for Impact for Other 10.96 Cost of Goods Sales Sales Gross Profit Expenses R&D Cost Expense -5.43 +2.16 -1.09 +0.48 +0.55 +2.28 Decrease Exchange

  18. Slide 18: Capital Investment, Depreciation, R&D

    Capital Investment, Depreciation, R&D (Billions of yen) 2019 2020 2019 2020 vs Forecasts Forecasts vs Results Results Results Previous (as of Aug. 11) (as of Nov. 12) 2019 (Jan. - Sep.) (Jan. - Sep.) Forecasts Capital Investment 12.8 17.5 17.5 +4.6 - 8.3 9.8 Depreciation 8.7 9.5 9.5 +0.7 - 6.4 7.1 R

  19. Slide 19: Cash Balance

    Cash Balance (Consolidated basis) (Billions of yen) Total Loan Balance 70.3 90.8 Bond redemption ¥15.0bn (Paid in Oct. 2020) Cash Cash ¥15.0bn (2026) Bonds 42.0 44.0 95.6 124.0 45.0 ¥15.0bn (2029) Bonds Cash Cash Bonds 45.0 Borrowed from Bonds 63.6 58.9 15.0 15.0 Long JBIC Long Long 37.5 ¥15.1bn Lon

  20. Slide 20: Contents

    Contents 2020 3Q (Jan.-Sep.) Results 2020 Forecast Shareholder Return Topics -New product development for focused markets- Financial Data Corporate Profile © 2020 HORIBA, Ltd. All rights reserved. 20

  21. Slide 21: 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

  22. Slide 22: 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

  23. Slide 23: 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

  24. Slide 24: HORIBA MIRA Ltd. HORIBA BIWAKO E-HARBOR

    HORIBA MIRA Ltd. HORIBA BIWAKO E-HARBOR © 2020 HORIBA, Ltd. All rights reserved. 24

  25. Slide 25: 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

  26. Slide 26: 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

  27. Slide 27: 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

  28. Slide 28: HORIBA BIWAKO E-HARBOR

    HORIBA BIWAKO E-HARBOR © 2020 HORIBA, Ltd. All rights reserved. 28

  29. Slide 29: © 2020 HORIBA, Ltd. All rights reserved.

    © 2020 HORIBA, Ltd. All rights reserved. 29

  30. Slide 30: © 2020 HORIBA, Ltd. All rights reserved.

    © 2020 HORIBA, Ltd. All rights reserved. 30

HORIBA — Q3 2020 Earnings Presentation on 6ix