Horiba, Ltd. · TSE:6856
Horiba — Q1 2022 Earnings Presentation
42 slides from Horiba's earnings presentation, Jun 20, 2022
Slide 1: Financial Information
Financial Information HORIBA, Ltd. June, 2022 © 2022 HORIBA, Ltd. All rights reserved. 1
Slide 2: Contents
Contents ◼ 2021 Results ◼ 2022 1Q (Jan.- Mar.) Results ◼ 2022 Forecast ◼ Topics – HORIBA’s Contribution for Social Issues ◼ Shareholder Return ➢ Financial Data ➢ Corporate Profile © 2022 HORIBA, Ltd. All rights reserved. 2
Slide 3: Contents
Contents ◼ 2021 Results ◼ 2022 1Q (Jan.- Mar.) Results ◼ 2022 Forecast ◼ Topics – HORIBA’s Contribution for Social Issues ◼ Shareholder Return ➢ Financial Data ➢ Corporate Profile © 2022 HORIBA, Ltd. All rights reserved. 3
Slide 4: Review of 2021
Review of 2021 ◆ Increased momentum to de-carbonization and carbon neutral ◆ Accelerated investment in vehicle electrification External ◆ Increased investment in semiconductor production equipment due Events to increased demand for data transmission ◆ Further heightened interest in life science ◆ Co
Slide 5: 2021 Results
2021 Results (Billions of Yen) 2020 2021 vs Forecasts vs Results Results Forecasts (as of Nov. 11) 2020 (as of Nov. 11) Sales 187.0 220.0 224.3 +37.2 +4.3 Operating Profit 19.6 28.5 32.0 +12.3 +3.5 O.P.% 10.5% 13.0% 14.3% ＋3.8p ＋1.3p Ordinary Profit 19.3 28.0 32.0 +12.6 +4.0 Net Income attributable
Slide 6: 2021 Results by Segment
2021 Results by Segment (Billions of Yen) Sales Operating Profit 2020 2021 2020 2021 vs vs vs vs Results Forecasts Results Results Forecasts Results (as of Nov. 11) 2020 Forecasts (as of Nov. 11) 2020 Forecasts (as of Nov. 11) (as of Nov. 11) Auto 63.9 64.0 61.2 -2.6 -2.7 2.4 1.0 -0.0 -2.4 -1.0 P&E
Slide 7: 2021 Results (B/S, CF)
2021 Results (B/S, CF) ◆Total assets were ¥371.5bn, up ¥43.5bn, by increasing in cash and B/S accounts receivables due to an increase in sales ◆Equity ratio: 54.8% (compared to the end of Dec. 2020) ◆Operating CF: Cash in ¥35.2bn due to operating profit Free CF: + ¥20.6bn ◆Investing CF: Cash out ¥14
Slide 8: Contents
Contents ◼ 2021 Results ◼ 2022 1Q (Jan.- Mar.) Results ◼ 2022 Forecast ◼ Topics – HORIBA’s Contribution for Social Issues ◼ Shareholder Return ➢ Financial Data ➢ Corporate Profile © 2022 HORIBA, Ltd. All rights reserved. 8
Slide 9: 2022 1Q (Jan-Mar) Results
2022 1Q (Jan-Mar) Results （Billions of yen） Increased in sales and profits mainly due to an increase in sales of the Semiconductor segment 2021 2022 1Q Results 1Q Results Changes % (Jan-Mar) (Jan-Mar) Sales 48.5 55.5 +6.9 +14.3% Operating Profit 5.9 8.6 +2.6 +45.0% O.P.% 12.2% 15.5% ＋3.3p - Ordinary
Slide 10: 2022 1Q (Jan-Mar) Results by Segment
2022 1Q (Jan-Mar) Results by Segment （Billions of yen） Sales Operating Profit 2021 2022 vs 2021 2021 2022 vs 2021 1Q 1Q 1Q Results 1Q Results Results Changes % Results Changes % (Jan-Mar) (Jan-Mar) (Jan-Mar) (Jan-Mar) Auto 12.1 13.6 +1.5 +12.5% -0.4 0.1 +0.5 - P&E 5.2 4.7 -0.4 -8.3% 0.6 0.4 -0.2 -35
Slide 11: Contents
Contents ◼ 2021 Results ◼ 2022 1Q (Jan.- Mar.) Results ◼ 2022 Forecast ◼ Topics – HORIBA’s Contribution for Social Issues ◼ Shareholder Return ➢ Financial Data ➢ Corporate Profile © 2022 HORIBA, Ltd. All rights reserved. 11
Slide 12: 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 May 13) Forecasts (as of Feb. 14) Sales 224.3 250.0 260.0 +35.6 +10.0 Operating Profit 32.0 35.0 38.0 +5.9 +3.0 O.P.% 14.3% 14.0% 14.
Slide 13: 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 May 13) Forecasts (as of May 13) Forecasts (as of Feb 14) (as of Feb 14) Au
Slide 14: Contents
Contents ◼ 2021 Results ◼ 2022 1Q (Jan.- Mar.) Results ◼ 2022 Forecast ◼ Topics – HORIBA’s Contribution for Social Issues ◼ Shareholder Return ➢ Financial Data ➢ Corporate Profile © 2022 HORIBA, Ltd. All rights reserved. 14
Slide 15: HORIBA's Contribution to Social Issues
HORIBA’s Contribution to Social Issues Cross-segmentation in Response to Various Social Issues 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 Ma
Slide 16: Organizational Restructuring to Deepen Cross-Segments
Organizational Restructuring to Deepen Cross-Segments Our objective: Further growth by creating new businesses Established the Business Incubation Division Operations at five centers Alternative Energy Conversion Center Mobility Solution Business Center Bio・Life Science Center Optical Smart Sensing（
Slide 17: Concept for reorganization of automotive business
Concept for reorganization of automotive business Matured Market Market growth Dawn Market Response to electrified vehicle Service (Drive systems etc.) Lifecycle *1 Vehicle Resilience: Management Emission measurement Solutions that eliminate threats associated with advanced vehicle *2 Advanced Drive
Slide 18: Service Lifecycle Management (1/2)
Service Lifecycle Management（1/2） Expanding service coverage to include the function of customers’ facility management Current Products Services • Functions Services • Facility management Products • Performance • Improvement in lab • Specifications • Stable operation utilization rate and test of equ
Slide 19: Service Lifecycle Management (2/2)
Service Lifecycle Management（2/2） Business model transformation starting from 8,000 installed sites Providing high-quality 【Social needs】 services to make the Vehicle electrification most of existing facilities ✓ New vehicle demand during the transition period ✓ EURO7 and other new regulations 【Issu
Slide 20: Mobility Solution Business (1/2)
Mobility Solution Business（1/2） Strengthening the supply of solutions for the mobility business Mobility Solution Business: Focus areas Model-based VRES*/ Autonomous driving/ Date science development Cyber security ADAS ✓ Providing applications ✓ From data ✓ Developing efficient ✓ Business developme
Slide 21: Mobility Solution Business (2/2)
Mobility Solution Business（2/2） Supporting R&D for vehicles in the new fields HORIBA MIRA to expand global activities Autonomous driving/ADAS ✓ Comprehensive support for vehicle control performance and safety evaluation tests for practical use of autonomous driving technology ➢ Constructed a high-sp
Slide 22: Alternative Energy Conversion (1/3)
Alternative Energy Conversion（1/3） Promoting new application development by utilizing existing business network Generation Energy conversion Utilization <Business Incubation> Existing Existing Alternative Energy business area business area Conversion Process & Environmental Automotive Core technolog
Slide 23: Alternative Energy Conversion (2/3)
Alternative Energy Conversion（2/3） Contributing to carbon neutral strategy in France ✓ In July 2021, Atsushi Horiba, Chairman ✓ Delivered the and Group CEO, met electrolyzer test with President system to GENVIA. Emmanuel Macron of France . Support to build a hydrogen energy society ✓ A hydrogen tech
Slide 24: Alternative Energy Conversion (3/3)
Alternative Energy Conversion（3/3） Various measures for expanding new energy business HORIBA Fuelcon: Construction of a new factory HORIBA MIRA: Partnering with Octopus Hydrogen Architectural rendering (construction to be completed in 2022) ✓ Installed a hydrogen/EV charging station of Octopus Hydro
Slide 25: Bio-life Science (1/2)
Bio-life Science（1/2） Providing a wide range of analytical and measurement solutions for R&D and manufacturing Bio-life science Research institutes Strengthen HORIBA’s area of Grow in new areas expertise Corporate R&D Product process Analysis and evaluation and measurement in manufacturing Industria
Slide 26: Bio-life Science (2/2)
Bio-life Science（2/2） Business expansion in the pharmaceutical industry Propose customized technologies and contribute to the realization of high-quality continuous production Analysis of small Analysis of cell / Quality inspection module medicines Analysis of antibody medicines biological samples (
Slide 27: Optical Smart Sensing (OSS) (1/2)
Optical Smart Sensing (OSS)（1/2） Develop the sensing technology for semiconductor manufacturing market Chemical Optical Smart Sensing Mass flow From R&D to quality control Concentration controller In-line process monitoring Measurement equipment used in a wide range of monitor applications Process g
Slide 28: Optical Smart Sensing (OSS) (2/2)
Optical Smart Sensing (OSS)（2/2） Deploying solutions that meet customer needs, based on core technologies Contribute to improving productivity in semiconductor manufacturing processes Reticle/Mask Particle Detection system PD Xpadion Plasma Emission Monitor EV 2.0 ✓ Monitor the state of plasma in th
Slide 29: Launched Social Cooperation Program with University of Tokyo
Launched Social Cooperation Program with University of Tokyo Conducted a joint study, aimed at establishing an "energy management system" HORIBA BIWAKO E-HARBOR in Shiga Prefecture, Japan 【From left】 Dr. Takao Someya, Professor, School of Engineering, the University of Tokyo Atsushi Horiba, Chairman
Slide 30: Awarded Semi-Nadeshiko Brands and Health & Productivity Stock Selection Program
Awarded Semi-Nadeshiko Brands and Health & Productivity Stock Selection Program by METI and Tokyo Stock Exchange Activities aimed at realizing a better working environment highly evaluated from the stock market ✓ Evaluated our activities based on the “Health ✓ Evaluated the engagement based on our p
Slide 31: Contents
Contents ◼ 2021 Results ◼ 2022 1Q (Jan.- Mar.) Results ◼ 2022 Forecast ◼ Topics – HORIBA’s Contribution for Social Issues ◼ Shareholder Return ➢ Financial Data ➢ Corporate Profile © 2022 HORIBA, Ltd. All rights reserved. 31
Slide 32: 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
Slide 33: Contents
Contents ◼ 2021 Results ◼ 2022 1Q (Jan.- Mar.) Results ◼ 2022 Forecast ◼ Topics – HORIBA’s Contribution for Social Issues ◼ Shareholder Return ➢ Financial Data ➢ Corporate Profile © 2022 HORIBA, Ltd. All rights reserved. 33
Slide 34: Operating Profit Analysis (vs 2021 Jan - Mar)
Operating Profit Analysis (vs 2021 Jan - Mar) （Billions of yen） 2021 2022 Jan. – Mar. Jan. – Mar. Increase Exchange Exchange Increase Increase Increase Cost of Goods Impact for Impact for Other 5.93 Sales +4.63 Sales Gross Profit Expenses R&D Cost -0.10 Expense 8.60 -2.40 +1.49 -0.47 -0.47 Increase
Slide 35: Impact of Fluctuation in Foreign exchange
Impact of Fluctuation in Foreign exchange （Billions of yen） Exchange rate impact for 2022 Forecast Exchange rate impact for 2022 Jan. - Mar. 1 yen impact of Sales and O.P. (vs 2021 Jan. - Mar.) (Yen depreciation) Increase Sales +2.29 Operating Increase Cost of Goods Sales -0.80 Sales Profit Impact t
Slide 36: 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 May 13) Jan - Mar (as of Feb 14) Forecasts Capex 12.4 15.0 15.0 - 1.8 Depreciation and amortization 10.4 11.0 11.0 - 2.6 R&D expenses 16.7 19.0 19.0 - 4.0 to net sales
Slide 37: Contents
Contents ◼ 2021 Results ◼ 2022 1Q (Jan.- Mar.) Results ◼ 2022 Forecast ◼ Topics – HORIBA’s Contribution for Social Issues ◼ Shareholder Return ➢ Financial Data ➢ Corporate Profile © 2022 HORIBA, Ltd. All rights reserved. 37
Slide 38: Five Business Segments & Major Products
Five Business Segments & Major Products Figures are the sales composition ratio for FY 2020 Process & Automotive Medical Semiconductor Scientific Environmental （34%） （11%） （31%） （14%） （10%） Emission Measurement Automatic Blood Cell Stack Gas Analyzers Mass Flow Controllers Raman Imaging Device Syst
Slide 39: 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 40: 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 41: 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
Slide 42: © 2022 HORIBA, Ltd. All rights reserved.
© 2022 HORIBA, Ltd. All rights reserved. 42