Horiba, Ltd. · TSE:6856
Horiba — H1 2021 Earnings Presentation
41 slides from Horiba's earnings presentation, Sep 13, 2021
Slide 1: Financial Information
Financial Information HORIBA, Ltd. August, 2021 © 2021 HORIBA, Ltd. All rights reserved. 1
Slide 2: Contents
Contents 2021 First Half Results 2021 Forecasts Outlines by Business Segment Topics – HORIBA’s Contribution to Social Issues Shareholder Return Financial Data Corporate Profile © 2021 HORIBA, Ltd. All rights reserved. 2
Slide 3: Contents
Contents 2021 First Half Results 2021 Forecasts Outlines by Business Segment Topics – HORIBA’s Contribution to Social Issues Shareholder Return Financial Data Corporate Profile © 2021 HORIBA, Ltd. All rights reserved. 3
Slide 4: Review of First Half of 2021
Review of First Half of 2021 Increased momentum to de-carbonization and carbon neutral Accelerated investment in electrification by the automotive External industry Events Increased investment in semiconductor production equipment due to increased demand for data transmission Further heighte
Slide 5: 2021 First Half Results
2021 First Half Results (Billions of yen) vs 2020 2021 vs 2020 Previous Forecasts 1st half 1st half Results 1st half Results Forecasts Changes Changes (Jan-Jun) (Jan-Jun) (as of May 13) Sales 84.9 97.0 101.3 +16.3 +4.3 Operating Profit 6.6 10.5 13.0 +6.3 +2.5 O.P.% 7.9% 10.8% 12.9% ＋5.0p ＋2.1p Ordin
Slide 6: 2021 First Half Results by Segment
2021 First Half Results by Segment (Billions of yen) Sales Operating profit 2020 2021 vs 2020 2020 2021 vs 2020 1st half 1st half 1st half 1st half Results Results Changes Results Results Changes (Jan-Jun) (Jan-Jun) (Jan-Jun) (Jan-Jun) Auto 27.1 24.9 -2.1 -0.2 -1.1 -0.9 P&E 8.6 10.0 +1.3 0.4 1.1 +0.
Slide 7: 2021 First Half Results (B/S, CF)
2021 First Half Results (B/S, CF) Total assets were ¥348.9bn, up ¥20.8bn, by establishing some bases B/S and increasing in cash Equity ratio: 54.7% (compared to the end of Dec. 2020) Operating CF: Cash in ¥15.8bn due to operating profit Free CF:+¥8.8bn CF Investing CF: Cash out ¥6.9bn due to cap
Slide 8: Contents
Contents 2021 First Half Results 2021 Forecasts Outlines by Business Segment Topics – HORIBA’s Contribution to Social Issues Shareholder Return Financial Data Corporate Profile © 2021 HORIBA, Ltd. All rights reserved. 8
Slide 9: HORIBA's Assumptions Regarding Market Environment
HORIBA’s Assumptions Regarding Market Environment Due to the re-spread of COVID-19, the future remains uncertain. General Growing concern about the procurement of components. Expect stagnant R&D investment demand to recover. Automotive Electrification and autonomous driving technology development ar
Slide 10: 2021 Forecasts
2021 Forecasts (Billions of yen) 2020 2021 Changes Previous Forecasts vs Previous Results Forecasts vs 2020 (as of Aug. 10) Forecasts (as of May 13) Sales 187.0 210.0 220.0 +32.9 +10.0 Operating Profit 19.6 24.5 28.5 +8.8 +4.0 O.P.% 10.5% 11.7% 13.0% +2.5p ＋1.3p Ordinary Profit 19.3 24.0 28.0 +8.6 +
Slide 11: 2021 Forecasts by Segment
2021 Forecasts by Segment (Billions of yen) Sales Operating 2020 2021 Changes 2020 2021 Changes Previous Previous Forecasts vs Previous Forecasts vs Previous Results Forecasts vs 2020 Results Forecasts vs 2020 (as of Aug. 10) Forecasts (as of Aug. 10) Forecasts (as of May 13) (as of May 13) Auto 63.
Slide 12: Contents
Contents 2021 First Half Results 2021 Forecasts Outlines by Business Segment Topics – HORIBA’s Contribution to Social Issues Shareholder Return Financial Data Corporate Profile © 2021 HORIBA, Ltd. All rights reserved. 12
Slide 13: Automotive: First Half Results and 2021 Forecasts
Automotive First Half Results and 2021 Forecasts (Billions of yen) 2021 First Half Results 2021 Full Year Forecasts Decline in sales due to the relatively long product lead time Focus on support for vehicle development in the and the decreased order backlog from the end of the transformational p
Slide 14: Process & Environment: First Half Results and 2021 Forecasts
Process & Environment First Half Results and 2021 Forecasts (Billions of yen) 2021 First Half Results 2021 Full Year Forecasts Solid demand for public investment due to environmental Expand business, boosted by growing interests in regulations, and for measurement related to the electronics envi
Slide 15: Medical-Diagnosis: First Half Results and 2021 Forecasts
Medical- Diagnosis First Half Results and 2021 Forecasts (Billions of yen) 2021 First Half Results 2021 Full Year Forecasts Increase in sales of hematology analyzers in the Expect containment of spread of COVID-19 and thereby a Americas and other areas. full-scale recovery in the number of patie
Slide 16: Semiconductor: First Half Results and 2021 Forecasts
Semiconductor First Half Results and 2021 Forecasts (Billions of yen) 2021 First Half Results 2021 Full Year Forecasts Increase in demand for semiconductors, associated Continue to expect sales to semiconductor production with the expansion of digital business equipment manufacturers to increase
Slide 17: Scientific: First Half Results and 2021 Forecasts
Scientific First Half Results and 2021 Forecasts (Billions of yen) 2021 First Half Results 2021 Full Year Forecasts Strong demand and increase in sales of optical Expect a recovery in R&D and capital investments, components for semiconductor production equipment which were stagnant in 2020 manuf
Slide 18: Contents
Contents 2021 First Half Results 2021 Forecasts Outlines by Business Segment Topics – HORIBA’s Contribution to Social Issues Shareholder Return Financial Data Corporate Profile © 2021 HORIBA, Ltd. All rights reserved. 18
Slide 19: HORIBA's Contribution to Social Issues
HORIBA’s Contribution to Social Issues Cross-segmentation in Response to Various Social Issues 1. Market Oriented Business Energy & Environment Bio & Healthcare Materials & Semiconductor Three Fields To develop analysis and measurement solutions, utilizing HORIBA’s core technologies, in the leading
Slide 20: Business Expansion in the Energy Field
Business Expansion in the Energy Field Acquisition of BeXema, a manufacturer of power supplies in Germany BeXema supplies power and electronic load devices used in BeXema has supplied test equipment for fuel cells and battery testing equipment power supplies to HORIBA FuelCon for some time. HORI
Slide 21: Leading the Way to a Sustainable Energy Society
Leading the Way to a Sustainable Energy Society Aiming to develop new technologies and create business in the energy field Launch of HORIBA Institute for Mobility and Connectivity2 Contribution to a hydrogen energy society A research institute Demand growth for hydrogen generators using water elec
Slide 22: Contributing to Higher Efficiency of Vehicle Testing
Contributing to Higher Efficiency of Vehicle Testing Providing total measurement solutions for vehicle development Launch of VULCAN EVO Full-scale development of STARS SOAK + Sales launch of "VULCAN EVO" chassis Measures vehicle conditions and the soak room dynamometer in Japan temperature befor
Slide 23: Development of New Technology "IRLAM"
Development of New Technology “IRLAM” Providing new value with the cutting-edge core technology IRLAM: Infrared Laser Absorption Modulation In-house developed laser The world’s first*1 gas concentration calculation algorithm inspired by the concept of data science By downsizing and lengthening t
Slide 24: High value-added solutions for semiconductor manufacturing processes
High value-added solutions for semiconductor manufacturing processes Various applications that contribute to semiconductor manufacturing Particle detection systems New dissolved oxygen meter Optical Smart Sensing - Metrology HD-960LR Semicon. manufacturing HORIBA’s response Highly accurate continuou
Slide 25: Business Expansion in the Life Science Field
Business Expansion in the Life Science Field Expanding applications - from R&D to manufacturing processes Cooperation with SHIMADZU: LC-Raman System Rapid Microorganism Detection System Rapica "Visible" technology "Separate" technology to distinguish to extract Control / analysis / differences in me
Slide 26: Participation in the HAYABUSA2 Sample Analysis Project
Participation in the HAYABUSA2 Sample Analysis Project HORIBA's core technology for the future （Illustrated by Akihiro Ikeshita） Implemented non-destructive, non-contact analysis of elements contained in samples of Analytical Solution Plaza has been asteroid Ryugu established to broaden service bu
Slide 27: Contents
Contents 2021 First Half Results 2021 Forecasts Outlines by Business Segment Topics – HORIBA’s Contribution to Social Issues Shareholder Return Financial Data Corporate Profile © 2021 HORIBA, Ltd. All rights reserved. 27
Slide 28: 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 Amended the previous forecasts to 2019 Results 130yen [
Slide 29: Contents
Contents 2021 First Half Results 2021 Forecasts Outlines by Business Segment Topics – HORIBA’s Contribution to Social Issues Shareholder Return Financial Data Corporate Profile © 2021 HORIBA, Ltd. All rights reserved. 29
Slide 30: Operating Profit Analysis (vs 2020 Jan. – Jun.)
Operating Profit Analysis (vs 2020 Jan. – Jun.) (Billions of yen) 2020 2021 Jan. – Jun. Jan. – Jun. Exchange Exchange Decrease Increase Increase Increase 6.67 Sales COGS impact for impact for Gross Profit Expense R&D Expense Other Expense 13.06 +14.14 -7.30 +0.89 -0.72 ＋0.07 -0.69 Increase Exchange
Slide 31: Cash Balance
Cash Balance (Consolidated basis, each end of period) (Billions of yen) Bond Total Loan Balance redemption 77.0 77.9 ¥15.0bn 70.3 Cash Cash (2026) Cash 114.5 122.3 ¥15.0bn 95.6 Bonds (2029) Bonds Cash 44.0 Bonds 30.0 300 Borrowed from 63.6 45.0 Bank Bonds 15.0 ¥15.1bn Long 37.5 Long 38.5 Long (redem
Slide 32: Exchange rate
Exchange rate (Yen) 2020 2021 Previous Actual Forecasts 1H Annual Forecasts vs 2020 (as of 13th May) 1Q 2Q 1H 2H Annual USD 108.23 106.76 108 106.09 109.55 107.82 110.18 109 +2.24 EUR 119.31 121.88 128 127.81 131.97 129.89 130.11 130 +8.12 Revise forecast for annual exchange rate. 1USD : 108 Yen ->
Slide 33: Impact of Fluctuation in Foreign exchange
Impact of Fluctuation in Foreign exchange (Billions of yen) Exchange rate impact Exchange rate impact (2021 First Half results) for 2021 Forecast 1 yen impact of Sales and O.P. (Yen appreciation) Increase Sales +2.19 Increase Cost of Goods Sales -1.30 Operating Increase Expenses -0.72 Sales Profit I
Slide 34: Capital Investment, Depreciation, R&D
Capital Investment, Depreciation, R&D (Billions of yen) 2020 2021 2021 Previous Forecasts Actual Results Forecasts Diff. (as of Aug. 10) Jan - Jun (as of May 13) Capex 15.1 16.5 16.5 - 6.2 Depreciation and 9.6 10.5 10.5 - 5.0 amortization R&D expenses 15.5 17.0 17.0 - 7.9 to net sales(%) 8.3% 8.1% 7
Slide 35: Contents
Contents 2021 First Half Results 2021 Forecasts Outlines by Business Segment Topics – HORIBA’s Contribution to Social Issues Shareholder Return Financial Data Corporate Profile © 2021 HORIBA, Ltd. All rights reserved. 35
Slide 36: Five Business Segments & Major Products
Five Business Segments & Major Products Figures are the sales composition ratio for FY 2020 Process & Medical Automotive Semiconductor Scientific Environmental Diagnostics （34%） （31%） （14%） （10%） （11%） Emission Measurement Automatic Blood Cell Stack Gas Analyzers Mass Flow Controllers Raman Imaging
Slide 37: Global Network
Global Network Sales by region (as of Dec 2020) ● : Major business hubs Americas Europe Asia Japan 15% 21% 33% 31% Employee headcount by region (as of Dec 2020) Americas Europe Asia Japan 11% 33% 18% 38% Number of companies （as of Dec 31, 2020) 49 Overseas sales ratio （as of Dec 2020) 69% Foreign em
Slide 38: 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 187.0 billion yen Six-fold growth in corporate sc
Slide 39: 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 Semiconductor device IoT, Cloud, 5G Soil analysis Secondary battery Solar panels Automation informatics Food safety Biomaterial Petroch
Slide 40: Published "HORIBA Report 2020-2021" (Eng. ver.)
Published “HORIBA Report 2020-2021” (Eng. ver.) An Integrated Report that conveys HORIBA's "diversity" and “uniqueness"! https://static.horiba.com/fileadmin/Horiba/Company/Investor_Relations/IR_Library /HORIBA_Report/20210812_HR_en_01.pdf © 2021 HORIBA, Ltd. All rights reserved. 40
Slide 41: © 2021 HORIBA, Ltd. All rights reserved.
© 2021 HORIBA, Ltd. All rights reserved. 41