Horiba, Ltd. · TSE:6856

Horiba — Nomura Investment Forum 2019

44 slides from Horiba's conference presentation, Dec 2, 2019

  1. Slide 1: Nomura Investment Forum 2019 Financial Information

    Nomura Investment Forum 2019 Financial Information HORIBA, Ltd. December 2, 2019 © 2019 HORIBA, Ltd. All rights reserved. 1

  2. Slide 2: Contents

    Contents  2019 First Half / 3Q Results  2019 Forecast  Outlines by Business Segments  Shareholder Return  Other Topics  Financial Data  Corporate Profile © 2019 HORIBA, Ltd. All rights reserved. 2

  3. Slide 3: Review of 2019 First Half

    Review of 2019 First Half  The accelerating US-China trade conflict and the deteriorating Japan-South Korea relationship External  Intensified Brexit uncertainties Events  Slowdown in capital spending for semiconductors  Automotive electrification trend and tighter emission regulations  Continu

  4. Slide 4: Summary of 2019 First-Half Results

    Summary of 2019 First-Half Results Significant year-on-year decrease in sales and profit due to a slowdown of the Semiconductor segment  Year-on-year decrease in sales and profit of the Semiconductor segment P&L  Decline in profitability of the Automotive segment due to a change in geographical sa

  5. Slide 5: 2019 First Half Results

    2019 First Half Results (Billons of Yen) 2018 1st Half 2019 1st Half Forecast vs vs Results (as of Feb.12) Results 2018 Forecast Sales 99.9 96.0 91.6 - 8.3 - 4.3 Operating Profit 14.0 10.5 8.2 - 5.7 - 2.2 OP % 14.1% 10.9% 9.0% -5.1p -1.9p Ordinary Profit 13.7 10.3 8.0 - 5.6 - 2.2 Net Profit attribut

  6. Slide 6: 2019 First Half Results by Segment

    2019 First Half Results by Segment (Billons of Yen) Sales Operating Profit 2018 1st Half 2019 1st Half 2018 1st Half 2019 1st Half Forecast vs vs Forecast vs vs Results Results Results Results : Record-hjgh (as of Feb. 12) 2018 Forecast (as of Feb. 12) 2018 Forecast Auto 32.7 36.0 34.3 +1.6 -1.6 2.4

  7. Slide 7: 2019 3Q (Jan.-Sep.) Results

    2019 3Q (Jan.-Sep.) Results (Billons of Yen) (by Segment) 2018 3Q 2019 3Q Sales Operating Profit vs 2018 3Q 2019 3Q 2018 3Q 2019 3Q Results Results 2018 vs vs Results Results Results Results 2018 2018 Sales 146.0 137.0 - 9.0 Auto 48.3 52.0 +3.7 1.7 2.7 +1.0 Operating Profit 17.8 12.0 - 5.8 P&E 13.4

  8. Slide 8: Contents

    Contents  2019 First Half / 3Q Results  2019 Forecast  Outlines by Business Segments  Shareholder Return  Other Topics  Financial Data  Corporate Profile © 2019 HORIBA, Ltd. All rights reserved. 8

  9. Slide 9: Market Assumptions for 2019

    Market Assumptions for 2019 Strong appetite for investment in the global automotive sector due to tighter Auto emission regulations mainly in Asia and innovation for electrification & autonomous driving. Global investment slowdown Increase in demand due to tighter environmental regulations in emergi

  10. Slide 10: Exchange rate

    Exchange rate (Yen) 2018 Results 2019 Forecast Results Forecast Forecast 1sf Half Jan.-Sep. Full year (as of Feb. 12) (as of Aug. 6) (as of Nov. 11) 1Q 2Q 1st Half 3Q Jan.-Sep. USD 108.67 109.60 110.44 110 110.22 109.90 110.06 107.24 109.12 110 110 EUR 131.55 130.87 130.35 125 125.16 123.48 124.32 1

  11. Slide 11: 2019 Forecast

    2019 Forecast (Billons of yen) 2018 2019 vs Forecast Forecast Forecast vs Results (as of Feb. 12) (as of Aug. 6) 2018 Previous (as of Nov. 11) Forecast Sales 210.5 218.0 213.0 207.0 -3.5 -6.0 Operating Profit 28.8 29.0 25.0 23.0 -5.8 -2.0 OP % 13.7% 13.3% 11.7% 11.1% -2.6p -0.6p Ordinary Profit 28.3

  12. Slide 12: 2019 Forecast by Segment

    2019 Forecast by Segment (Billons of yen) Sales Operating Profit 2018 2019 2018 2019 vs vs Forecast Forecast Forecast vs Forecast Forecast Forecast vs Results Previous Results Previous (as of Feb. 12) (as of Aug. 6) (as of Nov. 11) 2018 (as of Feb. 12) (as of Aug. 6) (as of Nov. 11) 2018 Forecast Fo

  13. Slide 13: Contents

    Contents  2019 First Half / 3Q Results  2019 Forecast  Outlines by Business Segments  Shareholder Return  Other Topics  Financial Data  Corporate Profile © 2019 HORIBA, Ltd. All rights reserved. 13

  14. Slide 14: Auto First Half Results and 2019 Forecast

    Auto First Half Results and 2019 Forecast (Billions of yen) 2019 First Half Results 【Half year】 Sales and O.P. Sales 50.6 48.6 ＋ EMS Higher demand in China and India, driven by O.P. 42.7 46.9 6.4 adoption of new regulations 34.0 30.6 5.5 32.7 5.2 34.3 5.4 28.1 Robust demand in Europe continued even

  15. Slide 15: P&E First Half Results and 2019 Forecast

    P&E First Half Results and 2019 Forecast (Billions of yen) Sales 2019 First Half Results 【Half year】 Sales and O.P. O.P. 10.8 10.8 ＋ 【Stack gas analyzers】 9.3 9.2 10.1 9.1 8.9 Strong sales in Japan 7.7 8.0 1.3 1.3 1.1 ＋ 【Air quality monitoring】 0.8 0.8 - Decline from last year when a large project w

  16. Slide 16: Medical First Half Results and 2019 Forecast

    Medical First Half Results and 2019 Forecast (Billions of yen) Sales 2019 First Half Results 【Half year】 Sales and O.P. O.P. 15.3 Decrease in sales from Europe in yen terms due to the - 13.8 12.7 12.3 12.8 13.1 12.8 12.6 13.3 euro’s depreciation against the yen 1.5 1.2 1.2 ＋ Business expansion in em

  17. Slide 17: Semi First Half Results and 2019 Forecast

    Semi First Half Results and 2019 Forecast (Billions of yen) Sales 2019 First Half Results 【Half year】 Sales and O.P. O.P. 32.3 28.5 27.2 27.2 - Decline in both sales and operating profit comparing 24.7 10.2 25.4 22.7 20.9 8.8 with the previous year 17.8 6.7 6.8 6.6 6.6 5.1 5.3 - Semiconductor manufa

  18. Slide 18: Scientific First Half Results and 2019 Forecast

    Scientific First Half Results and 2019 Forecast (Billions of yen) Sales 2019 First Half Results 【Half year】 Sales and O.P. O.P. 17.3 ＋ Sales increase in Asia and Americas on the background of 13.3 14.6 15.2 15.3 12.3 12.5 12.6 11.5 robust corporate R&D spending ＋ Improvement in profitability compare

  19. Slide 19: Contents

    Contents  2019 First Half / 3Q Results  2019 Forecast  Outlines by Business Segments  Shareholder Return  Other Topics  Financial Data  Corporate Profile © 2019 HORIBA, Ltd. All rights reserved. 19

  20. Slide 20: 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 Ordinary dividend: 125yen  2017 Results 116yen [Inte

  21. Slide 21: Contents

    Contents  2019 First Half / 3Q Results  2019 Forecast  Outlines by Business Segments  Shareholder Return  Other Topics  Financial Data  Corporate Profile © 2019 HORIBA, Ltd. All rights reserved. 21

  22. Slide 22: Withdrawal from the ITS business

    Withdrawal from the ITS* business *ITS: Intelligent Transport Systems  Developed and provided total management systems that enabled monitoring of commercial vehicle driving information  Commoditization of onboard devices made it hard to differentiate the products  Will end to sell products and of

  23. Slide 23: Contents

    Contents  2019 First Half / 3Q Results  2019 Forecast  Outlines by Business Segments  Shareholder Return  Other Topics  Financial Data  Corporate Profile © 2019 HORIBA, Ltd. All rights reserved. 23

  24. Slide 24: Operating Profit Analysis (vs 2018)

    Operating Profit Analysis (vs 2018) (Billions of yen) 2018 2019 Jan. – Sep. Jan. – Sep. Decrease Exchange Exchange Decrease Decrease Cost of Impact for Impact for Increase Other 17.87 Sales Goods Sales Gross Profit Expenses R&D Cost Expense 12.00 -5.66 +1.34 -1.32 +0.94 -1.55 +0.38 Decrease -4.32 Ex

  25. Slide 25: Impact of Fluctuation in Foreign exchange

    Impact of Fluctuation in Foreign exchange (Billions of yen) Exchange rate impact (2019 First Half results) Exchange rate impact Sales -¥1.63bn O.P. -¥0.14bn for 2019 Forecast 1 yen impact of Sales and O.P. (Yen appreciation) 2019 First Half results vs 2018 Sales Decrease Sales - 1.63 USD -¥0.44bn De

  26. Slide 26: Capital Investment, Depreciation, R&D

    Capital Investment, Depreciation, R&D (Billions of yen) 2018 2019 2018 2019 vs Forecast Forecast vs Result Previous 3Q 3Q vs 3Q (as of Aug 6) (as of Nov. 11) 2018 Forecast Capital Investment 10.2 16.0 14.0 +3.7 -2.0 7.4 8.3 60% Depreciation 7.2 8.0 8.0 +0.7 - 5.2 6.4 81% R&D 15.1 16.0 16.0 +0.8 - 10

  27. Slide 27: Consolidated Cash Flows (First Half)

    Consolidated Cash Flows (First Half) (Billions of yen) 2019 2018 Variation 1st Half 1st Half Cash flows from operating activities +13.84 +12.40 +1.44 Cash flows from investing activities -4.26 -4.43 +0.16 Cash flows from financing activities -7.26 -4.31 -2.94 Cash and cash equivalents at end of year

  28. Slide 28: Cash Balance

    Cash Balance (Billions of yen) (Consolidated basis, each end of year) Total Loan Balance Bond 46.7 44.0 redemption 42.0 41.0 In 2020 Bonds 15.0 Bonds Bonds Cash* Cash* Cash* Cash* Bonds Borrowed for 15.0 15.0 51.9 58.3 62.8 63.4 15.0 Long MIRA Long Long 19.2 17.0 Long Acquisition 18.7 16.8 ¥15.1bn S

  29. Slide 29: Issue of Unsecured Straight Bonds

    Issue of Unsecured Straight Bonds 5th Unsecured Straight Bonds 6th Unsecured Straight Bonds Total amt. of issue 15 billion yen 15 billion yen Interest rates 0.18% per annum 0.27% per annum Date of Issue October 17, 2019 October 16, 2026 October 17, 2029 Maturity Date (7 years) (10 years) Purposes Bo

  30. Slide 30: Contents

    Contents  2019 First Half / 3Q Results  2019 Forecast  Outlines by Business Segments  Shareholder Return  Other Topics  Financial Data  Corporate Profile © 2019 HORIBA, Ltd. All rights reserved. 30

  31. Slide 31: Business Segments

    Business Segments Automotive Process & Test Systems Environmental Medical Semiconductor Scientific Scientific 13% Net Sales Automotive Expanding in New Domains Semiconductor 38% 210.5 billion yen 28% and Sales by business segment (%) Medical 12% P&E 9% Moving onto a New Stage Fiscal 2018 © 2019 HORI

  32. Slide 32: Global Network

    Global Network (As of December 31, 2018) 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 Germany Japan 9% 38% Americas 991 （12％） 9 UK 10% Europe 2,637 （33％） 22 France 12% Other Asia Asia 4,315 （55％） 18

  33. Slide 33: HORIBA's Business Domain

    HORIBA’s Business Domain from Nano- to Cosmic-Level Analysis Space Planetary probe Development Auroral analysis Water Quality Global Environment Manufacturing Agriculture Management Conservation IT Infrastructure Process Plant factory Monitoring system Monitoring air pollution IoT, Cloud, 5G Semicon

  34. Slide 34: HORIBA's Steady Growth

    HORIBA’s Steady Growth : x10 Net Sales and x18 Op. Profit in 30 years Fiscal year ending Dec. 2018 Net sales: 210.5 billion yen Operating profit: 28.8 billion yen Moving on to the next stage with our new management 1953 HORIBA, LTD. was established 1960 1970 1980 1990 2000 2010 Moving on to the Foun

  35. Slide 35: HORIBA BIWAKO E-HARBOR

    HORIBA BIWAKO E-HARBOR © 2019 HORIBA, Ltd. All rights reserved. 35

  36. Slide 36: 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

  37. Slide 37: HORIBA BIWAKO E-HARBOR

    HORIBA BIWAKO E-HARBOR © 2019 HORIBA, Ltd. All rights reserved. 37

  38. Slide 38: © 2019 HORIBA, Ltd. All rights reserved.

    © 2019 HORIBA, Ltd. All rights reserved. 38

  39. Slide 39: Expansion of E-LAB for xEV Technology (CELL Zero)

    Expansion of E-LAB for xEV Technology (CELL Zero) Expanding E-LAB to add test facility for secondary batteries and fuel cells 【Features of facility】  Providing a wide temperature range of test environment  To be used for xEV and fuel cell evaluation  CELL Zero to be connected with CELL 1, 2 and 3

  40. Slide 40: HORIBA MIRA

    HORIBA MIRA Information on page 40 to 41 are as of acquired the company. © 2019 HORIBA, Ltd. All rights reserved. 40

  41. 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

  42. 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 More than 35 Test Sites • Performance(4.5km) Wind Tunnels(3)/EMC(9)/Crash • Off road lab/NVH Chassis/Battery test • Wet surface • City Circuit • Noise-Generating • Ride &

  43. Slide 43: Masao Horiba Awards Award Ceremony (Oct. 17, 2019)

    Masao Horiba Awards Award Ceremony(Oct. 17, 2019) Contribute to accelerating innovation through supporting young researchers and engineers globally Theme of Cutting-edge analysis and measurement technologies for efficient control this year in order to optimize energy and battery utilization 【Award c

  44. Slide 44: © 2019 HORIBA, Ltd. All rights reserved.

    © 2019 HORIBA, Ltd. All rights reserved. 44

HORIBA — Nomura Investment Forum 2019 on 6ix