Horiba, Ltd. · TSE:6856
Horiba — H1 2020 Earnings Presentation
45 slides from Horiba's earnings presentation, Aug 20, 2020
Slide 1: Financial Information
Financial Information HORIBA, Ltd. August, 2020 (This material was prepared for the 2020Q2 financial results briefing performed on the 20th Aug., 2020) © 2020 HORIBA, Ltd. All rights reserved. 1
Slide 2: Contents
Contents 2020 First Half Results 2020 Forecast Outlines by Business Segments Our Contribution to Social Issues Topics of 2020 First Half Shareholder Return Financial Data Corporate Profile © 2020 HORIBA, Ltd. All rights reserved. 2
Slide 3: Contents
Contents 2020 First Half Results 2020 Forecast Outlines by Business Segments Our Contribution to Social Issues Topics of 2020 First Half Shareholder Return Financial Data Corporate Profile © 2020 HORIBA, Ltd. All rights reserved. 3
Slide 4: Review of 2020 First Half
Review of 2020 First Half Economic contraction, driven by COVID-19 effects External Downturn in the automotive industry Events Gradual recovery in capex by semiconductor makers Heightened interest in life science Continued business activities as much as possible Internal despite the COVID-
Slide 5: 2020 First Half Results
2020 First Half Results (Billons of Yen) 2019 2020 1st half 1st half 1st half vs vs Forecast 2019 Forecast Results Results (as of Jun. 9) Sales 91.6 84.0 84.9 -6.6 +0.9 Operating Profit 8.2 5.5 6.6 -1.6 +1.1 O.P.% 9.0% 6.5% 7.9% -1.1p +1.4p Ordinary Profit 8.0 5.5 6.7 -1.2 +1.2 Net Income Attributab
Slide 6: 2020 First Half Results by Segment
2020 First Half Results by Segment (Billons of Yen) Sales Operating Profit 2019 2020 2019 2020 1st half 1st half 1st half 1st half vs vs 1st half 1st half vs vs Forecast Forecast Results Results 2019 Forecast Results Results 2019 Forecast (as of Jun. 9) (as of Jun. 9) Auto 34.3 26.5 27.1 -7.2 +0.6 1
Slide 7: 2020 First Half Results (B/S, CF)
2020 First Half Results （B/S, CF） Total assets were ¥309.6bn, down ¥5.4bn, owing to decrease in trade notes and accounts receivable. B/S Total liabilities were ¥140.5bn, down ¥2.9bn, due to decrease in accounts payable. Equity ratio: 54.4% (compared to the end of Dec. 2019) Operating CF: Cash in
Slide 8: Contents
Contents 2020 First Half Results 2020 Forecast Outlines by Business Segments Our Contribution to Social Issues Topics of 2020 First Half Shareholder Return Financial Data Corporate Profile © 2020 HORIBA, Ltd. All rights reserved. 8
Slide 9: 2020 Forecasts
2020 Forecasts 【Impact of COVID-19】 Economic activities are expected to resume after lifting of restrictions but the future General remains uncertain. Lingering impacts from COVID-19 are of concern. The spread of COVID-19 is likely to depress automotive sales. Auto Automotive-related manufacturers a
Slide 10: Exchange rate
Exchange rate (Yen) 2019 2020 Previous Results 1st half Full year 2H Forecast Forecast (as of Aug. 11) (as of Jun. 9) 1Q 2Q 1H USD 110.06 109.03 110 108.86 107.60 108.23 105.77 107 EUR 124.32 122.03 120 120.08 118.54 119.31 120.69 120 1 yen O.P. sensitivity for 2020 Forecast (Yen appreciation/Full y
Slide 11: 2020 Forecast
2020 Forecast (Billons of yen) 2019 2020 Previous vs Results Forecast vs Previous Forecast (as of Aug. 11) 2019 Forecast (as of Jun. 9) Sales 200.2 187.0 188.0 -12.2 +1.0 Operating Profit 20.9 15.0 15.0 -5.9 - O.P.% 10.4% 8.0% 8.0% -2.4p -0.0p Ordinary Profit 20.5 14.5 14.5 -6.0 - Net Income Attribu
Slide 12: 2020 Forecast by Segment
2020 Forecast by Segment (Billons of yen) Sales Operating Profit 2019 2020 2019 2020 Previous vs Previous vs Forecast vs Forecast vs Results Forecast Previous Results Forecast Previous (as of Aug. 11) 2019 (as of Aug. 11) 2019 (as of Jun. 9) Forecast (as of Jun. 9) Forecast Auto 81.0 68.0 68.0 -13.0
Slide 13: Contents
Contents 2020 First Half Results 2020 Forecast Outlines by Business Segments Our Contribution to Social Issues Topics of 2020 First Half Shareholder Return Financial Data Corporate Profile © 2020 HORIBA, Ltd. All rights reserved. 13
Slide 14: Auto First Half Results and 2020 Forecasts
Auto First Half Results and 2020 Forecasts (Billions of yen) Sales 2020 First Half Results 【Half Year】 Sales and O.P. O.P. 1 EMS, MCT - Delayed shipment and acceptance of products because of measures to restrict the movements of people and goods by various countries and regions 2 ECT - Stagnant oper
Slide 15: P&E First Half Results and 2020 Forecasts
P&E First Half Results and 2020 Forecasts (Billions of yen) Sales 2020 First Half Results 【Half Year】 Sales and O.P. O.P. 【Stack gas analyzers, Air quality monitoring, Process】 - Sales decrease in Japan, owing to COVID-19 effects ＋ Increase in production of Infrared Thermometers 【Water quality】 - Sa
Slide 16: Medical First Half Results and 2020 Forecasts
Medical First Half Results and 2020 Forecasts (Billions of yen) Sales 2020 First Half Results 【Half Year】 Sales and O.P. O.P. - The number of tests performed at hospitals decreased as the spread of COVID-19 led to a decrease in the number of patients who visit hospital; consequently, segment sales d
Slide 17: Semi First Half Results and 2020 Forecasts
Semi First Half Results and 2020 Forecasts (Billions of yen) Sales 2020 First Half Results 【Half Year】 Sales and O.P. O.P. ＋ Demand fell from the memory chip bubble level in 2018, bottomed out in 2019, and entered a recovery trend. ＋ Increase in demand for high-performance PCs and data centers assoc
Slide 18: Scientific First Half Results and 2020 Forecasts
Scientific First Half Results and 2020 Forecasts (Billions of yen) Sales 2020 First Half Results 【Half Year】 Sales and O.P. O.P. - Sales of Raman Spectrometers decreased in Japan as the spread of COVID-19 depressed corporate activities. - Academic demand was also sluggish worldwide. ＋ Operating inco
Slide 19: Contents
Contents 2020 First Half Results 2020 Forecast Outlines by Business Segments Our Contribution to Social Issues Topics of 2020 First Half Shareholder Return Financial Data Corporate Profile © 2020 HORIBA, Ltd. All rights reserved. 19
Slide 20: HORIBA's Contribution to Social Issues
HORIBA’s Contribution to Social Issues Social issues revealed by the spread of COVID-19 Solution Three fields where HORIBA is focusing Energy & Materials & Market Bio & Healthcare Environment Semiconductor Mobility, Power generation, Clinical diagnostic, Advanced materials, Main Target Environmental
Slide 21: MLMAP2023-Market Oriented Business: Bio & Healthcare
MLMAP2023-Market Oriented Business : Bio & Healthcare Cooperation with SHIMADZU Alliance for development and sales of measurement equipment “LC Raman” Separation and collection of substances in mixture Integrated software Raman spectroscopy Separation Collection Controlling & Measurement monitoring
Slide 22: Creating Solutions by Cooperation with SHIMADZU
MLMAP2023-Market Oriented Business : Bio & Healthcare Creating Solutions by Cooperation with SHIMADZU Development of applications in the drug discovery, food, and agricultural fields Expand fields that utilize LC Raman spectroscopy LC Raman life science technologies Quantitative 〇 × accuracy of Extr
Slide 23: Our response to COVID-19
MLMAP2023-Market Oriented Business : Bio & Healthcare Our response to COVID-19 Joint development of COVID-19 antibody test chips Part of the project "Development of a system for COVID-19 reliable rapid diagnosis" (Supported by METI and Japan Medical Research and Development Organization) AIST HORIBA
Slide 24: High value-added solutions for semiconductor manufacturing processes
MLMAP2023-Market Oriented Business: Materials & Semiconductors High value-added solutions for semiconductor manufacturing processes A key point for improvement in yield: Detection of foreign substances Expecting business expansion in the EUV process Semicon. manufacturing processes HORIBA’s response
Slide 25: HORIBA's Thoughts on Energy in Society
MLMAP2023-Market Oriented Business : Energy & Environment HORIBA’s Thoughts on Energy in Society “Well to Wheel” and “Grid and Mobility” - Energy optimization for entire society Diversification of Diversification of energy Diversification of primary energy sources storage forms powertrains ”Producti
Slide 26: Approach to Capital Investments and R&D
Approach to Capital Investments and R&D Capital Investment Construction of a new facility in China Continue strategic investment from a long-term Start operation in 2021 Total cost： approx. ¥9.0bn perspective New base for development, Continue large-scale capital investment such as producti
Slide 27: Contents
Contents 2020 First Half Results 2020 Forecast Outlines by Business Segments Our Contribution to Social Issues Topics of 2020 First Half Shareholder Return Financial Data Corporate Profile © 2020 HORIBA, Ltd. All rights reserved. 27
Slide 28: Shareholder Return
Shareholder Return Dividends per share and Share buybacks Ordinary dividend: 125yen 2018 Results 145yen [Interim 50yen/Year-end 95yem] Commemorative dividend for the 65th anniversary of the 2019 Results 130yen [Interim 50yen/Year-end 80yen] company foundation: 20yen 2020 Forecasts 75yen [Interim 30y
Slide 29: Contents
Contents 2020 First Half Results 2020 Forecast Outlines by Business Segments Our Contribution to Social Issues Topics of 2020 First Half Shareholder Return Financial Data Corporate Profile © 2020 HORIBA, Ltd. All rights reserved. 29
Slide 30: Operating Profit Analysis (vs 2019)
Operating Profit Analysis (vs 2019) (Billions of yen) 2019 2020 Jan. – Jun. Jan. – Jun. Decrease Exchange Exchange Decrease Decrease 8.28 Cost of Goods Impact for Impact for Decrease Other Sales -4.98 Sales Gross Profit Expenses R&D Cost +0.33 Expense 6.67 +2.33 -0.81 +0.47 +1.04 Decrease -2.64 Exch
Slide 31: Impact of Fluctuation in Foreign exchange
Impact of Fluctuation in Foreign exchange Exchange rate impact (2020 First Half results) Exchange rate impact for 2020 Forecast Sales -¥1.64bn O.P. -¥0.34bn 1 yen impact of Sales and O.P. (Yen appreciation) 2020 First Half results vs 2019 Sales Decrease Sales - 1.64 USD -¥0.46bn Decrease Cost of Goo
Slide 32: Capital Investment, Depreciation, R&D
Capital Investment, Depreciation, R&D (Billions of yen) 2019 2020 2019 2020 Previous vs Forecast vs 1st half 1st half Results Forecast Previous (as of Aug. 11) 2019 Results Results (as of Feb. 14) Forecast Capital Investment 12.8 20.0 17.5 +4.6 -2.5 5.1 6.1 Depreciation 8.7 9.5 9.5 +0.7 - 4.2 4.7 R&
Slide 33: Consolidated Cash Flows
Consolidated Cash Flows (Billions of yen) 2020 2019 Variation 1st Half 1st Half Cash flows from operating activities +15.38 +13.84 +1.53 Cash flows from investing activities -5.00 -4.26 -0.73 Cash flows from financing activities -3.09 -7.26 +4.16 Cash and cash equivalents at end of year 102.38 64.64
Slide 34: Cash Balance
Cash Balance (Consolidated basis, each end of period) (Billions of yen) Total Loan Balance Bond 70.3 70.7 redemption ¥15.0bn (Oct. 2020) Cash* Cash* 44.0 ¥15.0bn 42.0 95.6 Bonds 102.5 Bonds (2026) 45.0 45.0 Cash* Bonds ¥15.0bn Cash* Bonds 15.0 63.6 15.0 (2029) 58.9 Long Long Long Long Borrowed from
Slide 35: Contents
Contents 2020 First Half Results 2020 Forecast Outlines by Business Segments Out Contribution to Social Issues Topics of 2020 First Half Shareholder Return Financial Data Corporate Profile © 2020 HORIBA, Ltd. All rights reserved. 35
Slide 36: Expanding in New Domains and Moving onto a New Stage
Business Segments Automotive Process & Test Systems Environmental Medical Semiconductor Scientific Scientific Expanding in New 14% Automotive Net Sales 200.2 billion yen Semiconductor 40% Domains and Moving onto a New Stage 23% Medical P&E Sales by business segment (%) 13% 10% Fiscal 2019 © 2020 HOR
Slide 37: Global Network
Global Network (as of Dec 2019) 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 Japan Germany 10% 38% Americas 993 （12％） 7 UK Europe 2,771 （33％） 23 10% France Other Asia 4,524 （55％） 19 (4 in Japan, Inc
Slide 38: HORIBA's Steady Growth
HORIBA’s Steady Growth Fiscal year ending Dec. 2019 Net sales: 200.2 billion yen Moving on to Operating profit: 20.9 billion yen the next stage with our new Mid- Long Term Management 1953 Plan HORIBA, LTD. was established 1960 1970 1980 1990 2000 2010 Founded business as Developed globally Expanded
Slide 39: HORIBA MIRA Ltd. / HORIBA BIWAKO E-HARBOR
HORIBA MIRA Ltd. HORIBA BIWAKO E-HARBOR © 2020 HORIBA, Ltd. All rights reserved. 39
Slide 40: 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
Slide 41: MIRA Technology Park
MIRA Technology Park Various experiments using a large test course MIRA Technology Park 30 customers 1km Test Site Proving ground “35” Test Site • Performance(4.5km) Wind Tunnels / EMC / Crash • Off road lab/NVH Chassis/Battery test • Wet surface • City Circuit • Noise-Generating • Ride & Durability
Slide 42: 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
Slide 43: HORIBA BIWAKO E-HARBOR
HORIBA BIWAKO E-HARBOR © 2020 HORIBA, Ltd. All rights reserved. 43
Slide 44: © 2020 HORIBA, Ltd. All rights reserved.
© 2020 HORIBA, Ltd. All rights reserved. 44
Slide 45: Thank you
Thank you Cảm ơn 감사합니다 ありがとうございました Dziękuję Grazie धन्यवाद நன்ற Merci 谢谢 ขอบคุณคร ับ Obrigado Σας ευχαριστούμε Tack ska ni ha Большое спасибо Danke Gracias © 2020 HORIBA, Ltd. All rights reserved. 45