Horiba, Ltd. · TSE:6856
Horiba — FY2021 Earnings Presentation
48 slides from Horiba's earnings presentation, Mar 3, 2022
Slide 1: Financial Information
Financial Information HORIBA, Ltd. March, 2022 © 2022 HORIBA, Ltd. All rights reserved. 1
Slide 2: Contents
Contents ◼ 2021 Results ◼ 2021 Forecast ◼ Outlines by Business Segment ◼ Topics - Deepening Cross-segment Activities ◼ Shareholder Return ➢ Financial Data ➢ Corporate Profile © 2022 HORIBA, Ltd. All rights reserved. 2
Slide 3: Contents
Contents ◼ 2021 Results ◼ 2021 Forecast ◼ Outlines by Business Segment ◼ Topics - Deepening Cross-segment Activities ◼ 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 B/S and 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 ◼ 2021 Forecast ◼ Outlines by Business Segment ◼ Topics - Deepening Cross-segment Activities ◼ Shareholder Return ➢ Financial Data ➢ Corporate Profile © 2022 HORIBA, Ltd. All rights reserved. 8
Slide 9: HORIBA's Assumptions Regarding the Market Environment
HORIBA’s Assumptions Regarding the Market Environment Remain concerned about supply chain of components. General Expect economic activities to be revitalized in the “Living with Covid” society. Electrification including utilization of hydrogen and autonomous driving technology accelerates. Automotiv
Slide 10: 2022 Forecasts
2022 Forecasts (Billions of Yen) 2020 2021 2022 vs Results Results Forecasts 2021 Sales 187.0 224.3 250.0 +25.6 Operating Profit 19.6 32.0 35.0 +2.9 O.P.% 10.5% 14.3% 14.0% -0.3p Ordinary Profit 19.3 32.0 34.5 +2.4 Net Income attributable to Owners of Parent 13.1 21.3 23.0 +1.6 Net profit per share
Slide 11: 2022 Forecasts by Segment
2022 Forecasts by Segment (Billions of Yen) Sales Operating Profit 2021 2022 2021 2022 vs vs Results Forecasts 2021 Results Forecasts 2021 Auto 61.2 68.0 +6.7 -0.0 1.5 +1.5 P&E 20.2 23.5 +3.2 1.9 2.0 +0.0 Medical 25.8 28.5 +2.6 0.1 0.5 +0.3 Semi 87.0 96.0 +8.9 28.0 29.0 +0.9 Scientific 29.9 34.0 +4.
Slide 12: Contents
Contents ◼ 2021 Results ◼ 2021 Forecast ◼ Outlines by Business Segment ◼ Topics - Deepening Cross-segment Activities ◼ Shareholder Return ➢ Financial Data ➢ Corporate Profile © 2022 HORIBA, Ltd. All rights reserved. 12
Slide 13: Automotive: 2021 Results and 2022 Forecasts
Automotive 2021 Results and 2022 Forecasts (Billions of yen) *1 Mechatronics *3 Advanced Driver-Assistance Systems 2021 Results *2 Engineering Consultancy & Testing 2022 Forecasts *4 Connected and Autonomous Vehicle ◼ Outlook for internal combustion engine development remained 【EMS】 uncertain. Deman
Slide 14: Process & Environment: 2021 Results and 2022 Forecasts
Process & Environment 2021 Results and 2022 Forecasts (Billions of yen) ※1 Carbon dioxide Capture, Utilization and Storage 2021 Results 2022 Forecasts ※2 Total Organic Carbon ◼ Demand for public investment remained firm against the backdrop of 【Gas Monitoring】 environmental regulations, which led to
Slide 15: Medical-Diagnosis: 2021 Results and 2022 Forecasts
Medical- Diagnosis 2021 Results and 2022 Forecasts (Billions of yen) 2021 Results 2022 Forecasts ◼ Sales of test reagents remained sluggish due to the ◼ Expect containment of COVID-19, enabling full normalization of spread of COVID-19. the number of hospital in-patients. 【Asia and Europe】 ◼ Increase
Slide 16: Semiconductor: 2021 Results and 2022 Forecasts
Semiconductor 2021 Results and 2022 Forecasts (Billions of yen) 2021 Results 2022 Forecasts ◼ Significant increase in sales to semiconductor ◼ Increase in sales to SME manufacturers on the back of manufacturing equipment (SME) manufacturers, who higher capital investment by semiconductor expanded ca
Slide 17: Scientific: 2021 Results and 2022 Forecasts
Scientific 2021 Results and 2022 Forecasts (Billions of yen) 2021 Results 2022 Forecasts ◼ Strong demand and sales increase of optical ◼ Strengthening of analytical and measurement components for semiconductor manufacturing equipment applications in terms of both technologies and sales. (SME). Expec
Slide 18: Contents
Contents ◼ 2021 Results ◼ 2021 Forecast ◼ Outlines by Business Segment ◼ Topics - Deepening Cross-segment Activities ◼ Shareholder Return ➢ Financial Data ➢ Corporate Profile © 2022 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 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 20: 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 21: 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 22: 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 23: 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 24: 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 25: 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 26: 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 27: 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 28: 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 29: 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 30: 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 31: 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 32: 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 33: Contents
Contents ◼ 2021 Results ◼ 2021 Forecast ◼ Outlines by Business Segment ◼ Topics - Deepening Cross-segment ◼ Shareholder Return ➢ Financial Data ➢ Corporate Profile © 2022 HORIBA, Ltd. All rights reserved. 33
Slide 34: 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] ⚫ 202
Slide 35: Contents
Contents ◼ 2021 Results ◼ 2021 Forecast ◼ Outlines by Business Segment ◼ Topics - Deepening Cross-segment ◼ Shareholder Return ➢ Financial Data ➢ Corporate Profile © 2022 HORIBA, Ltd. All rights reserved. 35
Slide 36: Operating Profit Analysis (vs 2020)
Operating Profit Analysis (vs 2020) (Billions of yen) 2020 2021 Jan. – Dec. Jan. – Dec. Exchange Exchange Increase Increase Increase Increase impact for impact for R&D Other 19.69 Sales COGS Gross Profit Expense Expense Expense 32.04 ＋30.13 ｰ16.76 +3.41 -1.74 -0.71 -1.98 Increase Exchange Increase G
Slide 37: Consolidated Cash Flows
Consolidated Cash Flows (Billions of Yen) 2021 2020 Variation Cash flows from operating activities +35.2 +32.2 +3.0 Cash flows from investing activities -14.6 -14.0 -0.6 Cash flows from financing activities -4.0 +0.8 -4.8 Cash and cash equivalents at end of year 133.9 114.1 +19.7 Free cash flows +20
Slide 38: Cash Balance
(Consolidated basis, each end of period) Cash Balance (Billions of Yen) Total Loan Balance Cash Bond 77.0 135.0 80.1 redemption 70.3 Cash ￥15.0bn 114.5 （2026） Bonds ￥15.0bn 44.0 Bonds 30.0 30.0 （2029） Cash Bonds 95.6 45.0 Cash Bonds Long Borrowed from 63.6 15.0 Long 25.0 Banks Long 37.5 ¥15.1bn Long
Slide 39: Exchange Rate
Exchange Rate 2020 2021 2022 Annual Annual Forecasts vs 2021 USD 106.76 109.90 115 +5.10 EUR 121.88 129.91 130 +0.09 1 yen O.P. sensitivity for 2022 forecast (Yen appreciation) USD -0.37 billion yen EUR -0.01 billion yen © 2022 HORIBA, Ltd. All rights reserved. 39
Slide 40: Impact of Fluctuation in Foreign exchange
Impact of Fluctuation in Foreign exchange (Billions of Yen) Exchange rate impact for 2021 Exchange rate impact (vs 2020) for 2022 Forecasts 1 yen impact of Sales and O.P. (Yen appreciation) Increase Sales +7.09 Increase Cost of Goods Sales -3.67 Operating Impact to Gross Profit +3.41 Sales Profit In
Slide 41: Capital Investment, Depreciation, R&D
Capital Investment, Depreciation, R&D (Billions of Yen) 2020 2021 2022 Previous vs vs vs Actual Forecasts Actual Forecasts Previous Forecasts Previous (as of Nov 11) Capex 15.1 16.5 12.4 -2.6 -4.0 15.0 +2.5 Depreciation and amortization 9.6 10.5 10.4 +0.8 -0.0 11.0 +0.5 R&D expenses 15.5 17.0 16.7 +
Slide 42: Contents
Contents ◼ 2021 Results ◼ 2021 Forecast ◼ Outlines by Business Segment ◼ Topics - Deepening Cross-segment ◼ Shareholder Return ➢ Financial Data ➢ Corporate Profile © 2022 HORIBA, Ltd. All rights reserved. 42
Slide 43: 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 44: 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 45: 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 46: 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 47: HORIBA Report 2020-2021 (Eng. ver.)
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 © 2022 HORIBA, Ltd. All rights reserved. 47
Slide 48: © 2022 HORIBA, Ltd. All rights reserved.
© 2022 HORIBA, Ltd. All rights reserved. 48