Horiba, Ltd. · TSE:6856

Horiba — Q3 2022 Earnings Presentation

31 slides from Horiba's earnings presentation, Nov 24, 2022

  1. Slide 1: Financial Information

    Financial Information HORIBA, Ltd. November, 2022 © 2022 HORIBA, Ltd. All rights reserved. 1

  2. Slide 2: Contents

    Contents ◼ 2022 3Q (Jan.- Sep.) Results & 2022 Forecasts ◼ Topics – Contribution to Social Issues by Cross-Segment Approach ◼ Shareholder Return ➢ Financial Data ➢ Corporate Profile © 2022 HORIBA, Ltd. All rights reserved. 2

  3. Slide 3: Contents

    Contents ◼ 2022 3Q (Jan.- Sep.) Results & 2022 Forecasts ◼ Topics – Contribution to Social Issues by Cross-Segment Approach ◼ Shareholder Return ➢ Financial Data ➢ Corporate Profile © 2022 HORIBA, Ltd. All rights reserved. 3

  4. Slide 4: 2022 3Q (Jan.-Sep.) Results

    2022 3Q (Jan.-Sep.) Results （Billions of yen） Increased in sales and profits mainly due to an increase in sales of the Semiconductor segment 2021 2022 vs 2021 9 Months 9 Months Results Results Changes % (Jan.-Sep.) (Jan.-Sep.) Sales 153.9 185.1 +31.1 +20.2% Operating profit 19.8 28.5 +8.7 +43.9% O.P

  5. Slide 5: 2022 3Q (Jan.-Sep.) Results by Segments

    2022 3Q (Jan.-Sep.) Results by Segments （Billions of yen） Sales Operating profit 2021 2022 vs 2021 2021 2022 vs 2021 9 Months 9 Months 9 Months 9 Months Results Results Changes % Results Results Changes % (Jan.-Sep.) (Jan.-Sep.) (Jan.-Sep.) (Jan.-Sep.) Auto 37.3 41.3 +4.0 +10.7% -1.9 -3.2 -1.3 - P&E

  6. Slide 6: 2022 Forecasts

    2022 Forecasts （Billions of yen） Revised forecasts of sales and all profits upwardly 2021 2022 Changes Previous Forecasts vs Previous Results forecasts vs 2021 (as of Nov. 11) forecasts (as of Aug. 12) Sales 224.3 260.0 265.0 +40.6 +5.0 Operating profit 32.0 40.0 43.0 +10.9 +3.0 O.P.% 14.3% 15.4% 16

  7. Slide 7: 2022 Forecasts by Segments

    2022 Forecasts by Segments （Billions of yen） Sales Operating profit 2021 2022 Changes 2021 2022 Changes Previous Previous Forecasts vs Previous Forecasts vs Previous Results forecasts vs 2021 Results forecasts vs 2021 (as of Nov. 11) forecasts (as of Nov. 11) forecasts (as of Aug. 12) (as of Aug. 12

  8. Slide 8: Contents

    Contents ◼ 2022 3Q (Jan.- Sep.) Results & 2022 Forecasts ◼ Topics – Contribution to Social Issues by Cross-Segment Approach ◼ Shareholder Return ➢ Financial Data ➢ Corporate Profile © 2022 HORIBA, Ltd. All rights reserved. 8

  9. Slide 9: Solution Provider Beyond "Life Cycle Management"

    Contribution to Social Issues by Cross-Segment Approach Mid-Long Term Management Plan ”MLMAP2023” 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

  10. Slide 10: HORIBA FuelCon New Facility Launched Operation

    Alternative Energy Conversion HORIBA FuelCon New Facility Launched Operation Response to needs to realize carbon neutrality ✓ Named "HORIBA eHUB" as a global hub for new energy business. ✓ Production capacity to be tripled by the end of 2023. Started mass production of electrolyzers that generate hy

  11. Slide 11: Contributing to Next-Generation Mobility Development

    Mobility Solution Business Contributing to Next-Generation Mobility Development Demand growth for advanced vehicle engineering services Continuous investment immediately after acquisition Advanced Emission Test Facilities Advanced Battery Test Facilities Environmental Wind Tunnel Laboratory Vehicle

  12. Slide 12: "HORIBA will Never Stop Combustion Measurement"

    Service Lifecycle Management "HORIBA will Never Stop Combustion Measurement” Contribute to energy issues caused by increasingly complex international affairs Respond to demand for new vehicles in the transition period to vehicle electrification Contribute to improving the efficiency of Thoroughly su

  13. Slide 13: Development of Healthcare Business

    Bio & Healthcare Development of Healthcare Business <Medical Business> *IVD: In Vitro Diagnostics Medical Business – Aiming to expand business in the IVD* field 【Medical Business】 Hematology and CRP analyzer “Yumizen H330 CRP” Global network for product development and reagent production ✓ Simultane

  14. Slide 14: Business Expansion in Life-science Field

    Bio & Healthcare Business Expansion in Life-science Field Proactive approach to the food and pharmaceutical industries Residual chlorine concentration monitor “UP-400CL” Microbial rapid inspection device “Rapica” ✓ An online monitor that manages the chlorine ✓ Inspects microorganisms concentration o

  15. Slide 15: Expanding Cross-segment Business Opportunities for the Semiconductor Market

    Materials & Expanding Cross-segment Business Opportunities Semiconductor for the Semiconductor Market Contribute to productivity improvement in the semiconductor manufacturing process CEMS for semiconductor factories* AMC* monitoring system 【Under development】 ✓ AMC affects the performance of produc

  16. Slide 16: Growth Investment in Europe

    Cross-segment Growth Investment in Europe Respond to increasing demand for analysis and measurement in various industries Drive the market as a leading company with spectroscopic technology ✓ Relocated the custom grating production base in Saclay near Paris to the "HORIBA Europe Research Center“. ✓

  17. Slide 17: New Product Development for Target Markets

    Cross-segment New Product Development for Target Markets HORIBA's technology that contributes to efficiency, such as by reducing analysis time and maintenance man-hours X-ray Analytical Microscope No-refill self-cleaning pH electrode No need to replenish electrode solution; “XGT-9000 Pro” and “XGT-9

  18. Slide 18: 2022 Masao Horiba Awards Ceremony

    2022 Masao Horiba Awards Ceremony (Held on 2022/10/18) 【Theme】 Analytical and measurement technologies that contribute to the use of hydrogen for a decarbonized society Application targets: Advanced analysis and measurement technologies that contribute to technological innovation for new use of hydr

  19. Slide 19: Co-sponsorship of a Thematic Project for EXPO2025

    Co-sponsorship of a Thematic Project for EXPO2025 Contribution to the “Future of Life" by measurement technology Sponsorship as a Bronze Partner of one of the Signature Pavilions Pavilion led by Dr. Hiroshi Ishiguro, Producer Theme: “Future of Life” Expand the possibilities of life by fusing with te

  20. Slide 20: Contents

    Contents ◼ 2022 3Q (Jan.- Sep.) Results & 2022 Forecasts ◼ Topics – Contribution to Social Issues by Cross-Segment Approach ◼ Shareholder Return ➢ Financial Data ➢ Corporate Profile © 2022 HORIBA, Ltd. All rights reserved. 20

  21. Slide 21: 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 ⚫ 2020 Results: 90YEN [Interim 30yen / Year-end 60yen

  22. Slide 22: Contents

    Contents ◼ 2022 3Q (Jan.- Sep.) Results & 2022 Forecasts ◼ Topics – Contribution to Social Issues by Cross-Segment Approach ◼ Shareholder Return ➢ Financial Data ➢ Corporate Profile © 2022 HORIBA, Ltd. All rights reserved. 22

  23. Slide 23: Operating Profit Analysis (vs 2021 Jan. – Sep.)

    Operating Profit Analysis (vs 2021 Jan. – Sep.) （Billions of yen） 2021 2022 Jan. – Sep. Jan. – Sep. Increase Exchange Exchange Increase 19.85 Increase Cost of Goods Impact for Impact for Increase Other 28.57 Sales Sales Gross Profit Expenses R&D Cost Expense ＋16.96 -12.20 +9.54 -2.56 -0.75 -2.26 Inc

  24. Slide 24: Exchange Rate Trend / Forecasts / Impacts

    Exchange Rate Trend / Forecasts / Impacts 2021 2022 Previous Actual Forecasts Annual Forecasts vs 2021 (as of 12 Aug.) Jan. - Sep. Oct. - Dec. Annual USD 109.90 130 128.30 147.10 133 +23.10 EUR 129.91 135 136.05 143.85 138 +8.09 Exchange rate impact Exchange rate impact for 2022 Jan. – Sep. for 2022

  25. Slide 25: Capital Investment, Depreciation, R&D

    Capital Investment, Depreciation, R&D (Billions of Yen) 2021 2022 2022 Previous Forecasts vs Actual Actual Forecasts Previous (as of Nov. 11) Jan. - Sep. (as of Aug. 12) Forecasts Capex 12.4 15.0 13.5 -1.5 7.4 Depreciation and amortization 10.4 11.0 11.0 - 8.3 R&D expenses 16.7 19.0 19.0 - 13.2 to n

  26. Slide 26: Contents

    Contents ◼ 2022 3Q (Jan.- Sep.) Results & 2022 Forecasts ◼ Topics – Contribution to Social Issues by Cross-Segment Approach ◼ Shareholder Return ➢ Financial Data ➢ Corporate Profile © 2022 HORIBA, Ltd. All rights reserved. 26

  27. Slide 27: Five Business Segments & Major Products

    Five Business Segments & Major Products Figures are the sales composition ratio for FY 2021​ Process & Automotive Medical Semiconductor Scientific Environmental （27%） （12%） （39%） （13%） （9%） Emission Measurement Automatic Blood Cell Stack Gas Analyzers Mass Flow Controllers Raman Imaging Device Syste

  28. Slide 28: Global Network

    Global Network Sales by region (as of Dec 2021) ● : Major business hubs Americas Europe Asia Japan 15% 20% 35% 30% Employee headcount by region (as of Dec 2021) Americas Europe Asia Japan 12% 32% 19% 37% Number of companies （as of Dec 31, 2021) 49 Overseas sales ratio （as of Dec 2021) 70% Foreign em

  29. Slide 29: 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 224.3 billion yen Six-fold growth in corporate sc

  30. Slide 30: 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 Diagnostic equipment IoT, Cloud, 5G Soil analysis Secondary battery New drug development Automation informatics Food safety Biomaterial

  31. Slide 31: © 2022 HORIBA, Ltd. All rights reserved.

    © 2022 HORIBA, Ltd. All rights reserved. 31

HORIBA — Q3 2022 Earnings Presentation on 6ix