Slide 1: Financial Information
Financial Information HORIBA, Ltd. March, 2021 © 2021 HORIBA, Ltd. All rights reserved. 1
Slide 2: Contents
Contents 2020 Results 2021 Forecast Outlines by Business Segment Topics – HORIBA’s Contribution for Social Issues Shareholder Return Financial Data Corporate Profile © 2021 HORIBA, Ltd. All rights reserved. 2
Slide 3: Contents
Contents 2020 Results 2021 Forecast Outlines by Business Segment Topics – HORIBA’s Contribution for Social Issues Shareholder Return Financial Data Corporate Profile © 2021 HORIBA, Ltd. All rights reserved. 3
Slide 4: Review of 2020
Review of 2020 Economic contraction, driven by COVID-19 impacts Sluggish capital investment and accelerated investment in External electrification by the automobile industry Events Increased investment in semiconductor production equipment due to increased demand for data transmission Height
Slide 5: 2020 Results
2020 Results (Billions of Yen) 2019 2020 Forecast vs vs Results Results Forecast (as of Nov. 12) 2019 (as of Nov. 12) Sales 200.2 188.0 187.0 -13.1 -0.9 Operating Profit 20.9 16.0 19.6 -1.2 +3.6 O.P.% 10.4% 8.5% 10.5% ＋0.1p ＋2.0p Ordinary Profit 20.5 15.0 19.3 -1.1 +4.3 Net Income attributable to Ow
Slide 6: 2020 Results by Segment
2020 Results by Segment (Billions of Yen) Sales Operating Profit 2019 2020 2019 2020 vs vs vs vs Results Forecast Results Results Forecast Results :Record-high (as of Nov. 12) 2019 Forecast (as of Nov. 12) 2019 Forecast (as of Nov. 12) (as of Nov. 12) Auto 81.0 67.0 63.9 -17.1 -3.0 6.4 0.5 2.4 -3.9
Slide 7: 2020 Results (B/S, CF)
2020 Results (B/S, CF) Total assets were ¥328.0bn, up ¥12.9bn, by establishing B/S some bases and financing Equity ratio: 54.3% (compared to the end of Dec. 2019) Operating CF: Cash in ¥32.2bn due to operating profit Free CF: + ¥18.2bn Investing CF: Cash out ¥14.0bn due to CF capital investments
Slide 8: Assumptions Regarding Market Environment
Assumptions Regarding Market Environment Despite growing expectations of containment of spread of COVID-19, the social General and economic outlook remains uncertain. Expect stagnant R&D investment demand to recover. Automotive Electrification and autonomous driving technology development are expect
Slide 9: Contents
Contents 2020 Results 2021 Forecast Outlines by Business Segment Topics – HORIBA’s Contribution for Social Issues Shareholder Return Financial Data Corporate Profile © 2021 HORIBA, Ltd. All rights reserved. 9
Slide 10: 2021 Forecast
2021 Forecast (Billions of Yen) 2019 2020 2021 vs Results Results Forecast 2020 Sales 200.2 187.0 200.0 +12.9 Operating Profit 20.9 19.6 20.0 +0.3 O.P.% 10.4% 10.5% 10.0% ▲0.5p Ordinary Profit 20.5 19.3 19.5 +0.1 Net Income attributable to Owners of Parent 15.4 13.1 13.5 +0.3 Net profit per share (Y
Slide 11: 2021 Forecast by Segment
2021 Forecast by Segment (Billions of Yen) Sales Operating Profit 2020 2021 2020 2021 vs vs Results Forecast 2020 Results Forecast 2020 :Record-high Automotive 63.9 64.0 +0.0 2.4 1.0 -1.4 Process & Environment 18.3 21.0 +2.6 1.6 1.5 -0.1 Medical 21.0 25.0 +3.9 -0.4 0.5 +0.9 Semiconductor 56.9 61.0 +
Slide 12: Contents
Contents 2020 Results 2021 Forecast Outlines by Business Segment Topics – HORIBA’s Contribution for Social Issues Shareholder Return Financial Data Corporate Profile © 2021 HORIBA, Ltd. All rights reserved. 12
Slide 13: Automotive 2020 Results and 2021 Forecasts
Automotive 2020 Results and 2021 Forecasts (Billions of Yen) 1: Mechatronics 2020 Results 2: Engineering Consultancy & Testing 2021 Forecasts Affected by stagnant corporate activities owing to the spread of 【EMS】 COVID-19 Expect a recovery in automakers’ sluggish capital investment 【EMS, MCT1】 【MC
Slide 14: Process & Environmental 2020 Results and 2021 Forecasts
Process & Environmental 2020 Results and 2021 Forecasts (Billions of Yen) 2020 Results 2021 Forecasts Public spending demand was solid but affected by stagnation Expect a recovery from the sluggish economic activity, caused of corporate activities owing to spread of COVID-19 by the spread of COV
Slide 15: Medical 2020 Results and 2021 Forecasts
Medical 2020 Results and 2021 Forecasts (Billions of Yen) 2020 Results 2021 Forecasts Decline in sales, caused by a decline in the number of Expect containment of spread of COVID-19 and thereby a recovery tests performed at hospitals, as the spread of COVID-19 in the number of patients visiting
Slide 16: Semiconductor 2020 Results and 2021 Forecasts
Semiconductor 2020 Results and 2021 Forecasts (Billions of Yen) 2020 Results 2021 Forecasts Increase in demand for semiconductors, associated with the Continue to expect sales to semiconductor production equipment expansion of telework and digital business manufacturers are expected to increase,
Slide 17: Scientific 2020 Results and 2021 Forecasts
Scientific 2020 Results and 2021 Forecasts (Billions of Yen) 2020 Results 2021 Forecasts Decrease in sales mainly due to the stagnant corporate Expect a recovery in R&D and capital investments, activities affected by the spread of COVID-19 which were stagnant in 2020 Increase in demand for opt
Slide 18: Contents
Contents 2020 Results 2021 Forecast Outlines by Business Segment Topics – HORIBA’s Contribution for 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 Business Expansion in Response to Various Social Issues 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 Energy & Environment Bio & Healthcare
Slide 20: Developing the Sensing Technology for the Semiconductor Market
Developing the Sensing Technology MLMAP2023 Market Oriented Business for the Semiconductor Market Materials & Semiconductor Promote Optical Smart Sensing Technology From the perspective of the Optical Smart Sensing (OSS) technology, utilize various sensing technologies owned by the HORIBA Group gl
Slide 21: Development of Healthcare Business <Medical Business>
Development of Healthcare Business MLMAP2023 Market Oriented Business <Medical Business> Bio & Healthcare Expand Business in the US by Acquiring MedTest Engaged in R&D and production of a wide range of biochemical reagents. Possesses the application development function, which is combined with equi
Slide 22: Business Expansion in the Pharmaceutical Industry
Business Expansion MLMAP2023 Market Oriented Business in the Pharmaceutical Industry Bio & Healthcare Contribution in a Wide Range, from R&D to Production Processes Highly-sensitive and rapid microbial Pharmaceutical process evaluation Analysis of exosomes1 in blood contamination inspection Nanopart
Slide 23: Hydrogen Energy Society and HORIBA
MLMAP2023 Hydrogen Energy Society and HORIBA Market Oriented Business Energy & Environment Hydrogen Energy: "Clean," "Storable and Transportable," and "Inexhaustible" Hydrogen Smartly Production Storage Use Evaluator rf-GD-OES1 (GDS) Evaluator EC/ES Evaluate the EC/ES Control the hydrogen Meet
Slide 24: Vehicle Electrification and HORIBA
MLMAP2023 Vehicle Electrification and HORIBA Market Oriented Business Energy & Environment Provide Total Solution for the Vehicle Development – from Internal Combustion Engine to Electrification R&D Technology requirement Vehicle type Powertrain Vehicle Drivetrain Engine Batty/Fuel cell (ICE) Intern
Slide 25: Established Vehicle Development Center for Connected and Autonomous
Established Vehicle Development Center for MLMAP2023 Market Oriented Business Connected and Autonomous Energy & Environment Comprehensive Support from Design to feasible verification of vehicle Comprehensive R&D and Engineering facilities (Open in Mar. 2021) Support vehicle development from four asp
Slide 26: Initiatives for Open Innovation
MLMAP2023 Initiatives for Open Innovation Market Oriented Business Energy & Environment/Materials & Semiconductor Collaborate with Academia Globally HORIBA & National Institute of HORIBA & University of California, Irvine Advanced Industrial Science and Technology (AIST) A new research institute s
Slide 27: Opened a Production Base for Advanced Spectroscopic Technology in Europe
Opened a Production Base for MLMAP2023 Market Oriented Business Advanced Spectroscopic Technology in Europe Materials & Semiconductor Leading the Market as an Advanced Company in Spectroscopic Technology Relocated an R&D and production base in Lille, France and doubled the building area. Strengt
Slide 28: Aim to Establish New Business Model
MLMAP2023 Aim to Establish New Business Model Solution Provider Beyond Life Cycle Management Built New Headquarters for HORIBA TECHNO SERVICE Functions as the forefront of the sales division that creates Start of operation in Feb. 2021 Total cost: Approx. 3.8 billion yen a continuous use cycle for
Slide 29: Participation in the HAYABUSA2 Sample Analysis Project
Participation in the HAYABUSA2 MLMAP2023 Solution Provider Sample Analysis Project Beyond Life Cycle Management Participation in the Initial Analysis Project Six international teams are conducting initial analysis of samples taken from the asteroid, Ryugu. HORIBA TECHNO SERVICE, which specialize
Slide 30: Contents
Contents 2020 Results 2021 Forecast Outlines by Business Segment Topics – HORIBA’s Contribution for Social Issues Shareholder Return Financial Data Corporate Profile © 2021 HORIBA, Ltd. All rights reserved. 30
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 2019 Results 130yen [Interim 50yen/Year-end 80yen]
Slide 32: Contents
Contents 2020 Results 2021 Forecast Outlines by Business Segment Topics – HORIBA’s Contribution for Social Issues Shareholder Return Financial Data Corporate Profile © 2021 HORIBA, Ltd. All rights reserved. 32
Slide 33: Operating Profit Analysis (vs 2019)
Operating Profit Analysis (vs 2019) (Billions of Yen) 2019 2020 Jan. – Dec. Jan. – Dec. Decrease Exchange Exchange Decrease 20.91 Decrease 19.69 Impact for Decrease Cost of Goods Impact for Other Sales Sales Gross Profit Expenses R&D Cost Expense -10.81 +6.14 -1.51 +0.53 +0.59 +3.82 Decrease Exchang
Slide 34: Consolidated Cash Flows
Consolidated Cash Flows (Billions of Yen) 2020 2019 Variation Cash flows from operating activities +32.2 +26.6 +5.6 Cash flows from investing activities -14.0 -12.3 -1.6 Cash flows from financing activities +0.8 +19.2 -18.3 Cash and cash equivalents at end of year 114.1 96.0 +18.0 Free cash flows +1
Slide 35: Cash Balance
(Consolidated basis, each end of period) Cash Balance (Billions of Yen) Total Loan Balance Bond 70.3 77.0 redemption ¥15.0bn (2026) Cash* Cash* Bonds ¥15.0bn 42.0 44.0 95.6 114.5 30.0 (2029) Bonds 45.0 Borrowed from Cash * Bonds Cash* Bonds 15.0 63.6 15.0 Long Banks 58.9 Long Long Long 37.5 ¥15.1bn
Slide 36: Exchange Rate
Exchange Rate 2019 2020 2021 vs Results Results Forecast 2020 USD 109.03 106.76 105.00 - 1.76 EUR 122.03 121.88 125.00 + 3.12 1 yen O.P. sensitivity for 2021 forecast (Yen appreciation) USD -0.26 billion yen EUR -0.00 billion yen © 2021 HORIBA, Ltd. All rights reserved. 36
Slide 37: Impact of Fluctuation in Foreign exchange
Impact of Fluctuation in Foreign exchange (Billions of Yen) Exchange rate impact Exchange rate impact for 2021 Forecast Sales -¥1.31bn O.P. -¥0.98bn 1 yen impact of Sales and O.P. (Yen appreciation) 2020 vs 2019 Sales Decrease Sales - 1.31 USD -¥0.49bn Decrease Cost of Goods Sales + 6.97 EUR -¥0.33b
Slide 38: Capital Investment, Depreciation, R&D
Capital Investment, Depreciation, R&D (Billions of Yen) 2019 2020 2021 Last vs Last Results Forecast Results vs '19 Forecast vs '20 Forecast (as of Nov. 12) Capex 12.8 17.5 15.1 +2.3 - 2.3 16.5 +1.3 Depreciation and amortization 8.7 9.5 9.6 +0.8 +0.1 10.5 +0.8 R&D expenses 16.2 16.0 15.5 - 0.6 - 0.4
Slide 39: Contents
Contents 2020 Results 2021 Forecast Outlines by Business Segment Topics – HORIBA’s Contribution for Social Issues Shareholder Return Financial Data Corporate Profile © 2021 HORIBA, Ltd. All rights reserved. 39
Slide 40: 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 41: 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 42: 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 43: 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 44: © 2021 HORIBA, Ltd. All rights reserved.
© 2021 HORIBA, Ltd. All rights reserved. 44