Horiba, Ltd. · TSE:6856

Horiba — SMBC NIKKO Japan Series Executive Conference Tokyo 2019

44 slides from Horiba's conference presentation, March 2019

  1. Slide 1: Financial Information

    Financial Information HORIBA, Ltd. March, 2019 © 2019 HORIBA, Ltd. All rights reserved. 1

  2. Slide 2: HORIBA, Ltd. 65th Anniversary of Foundation

    HORIBA, Ltd. 65th Anniversary of Foundation Global growth through M&A In 1996, ABX S.A. was acquired in France In 2005, MCT (Mechatronics) Business of （now HORIBA ABX SAS） Carl Scheck AG was acquired in Germany In 1997, Jobin Yvon S.A. was acquired in France In 2018, FuelCon AG. was acquired in Germ

  3. Slide 3: Jobin Yvon 200th Anniversary of Foundation

    Jobin Yvon 200th Anniversary of Foundation © 2019 HORIBA, Ltd. All rights reserved. 3

  4. Slide 4: Product at the Time of Its Startup

    Product at the Time of Its Startup HORIBA Jobin Yvon pH Meters Fresnel Lens for © 2019 HORIBA, Ltd. All rights reserved. a Lighthouse 4

  5. Slide 5: Contents

    Contents 2018 Results 2019 Forecast Business Segments Outline Share Holder Return Other Topics Financial Data Corporate profile © 2019 HORIBA, Ltd. All rights reserved. 5

  6. Slide 6: Contents

    Contents 2018 Results 2019 Forecast Business Segments Outline Share Holder Return Other Topics Financial Data Corporate profile © 2019 HORIBA, Ltd. All rights reserved. 6

  7. Slide 7: Review of 2018

    Review of 2018  Overheated US-China trade friction  Intensified Brexit uncertainties External  Tighter automotive emission regulations and electrification trend Events  Slowdown in capital spending for semiconductors from the second half of 2018  New Management of HORIBA Group started  Enhance

  8. Slide 8: Summary of 2018 Results

    Summary of 2018 Results Achieved record-highs in sales, profit and dividend Increase in sales and profit in Automotive and Semiconductor segments, year-on-year P&L Semiconductor sales were weak in the second half of the year due to changes in market conditions Total asset were ¥278.1bn, up ¥12.2b

  9. Slide 9: 2018 Results

    2018 Results (Billons of Yen) 2017 2018 Forecast Forecast vs vs vs : Record-high Results (as of Feb.13) (as of Nov.9) Results Forecast Forecast 2017 (as of Feb.13) (as of Nov.9) Sales 195.3 210.0 207.0 210.5 +15.1 +0.5 +3.5 Operating Profit 26.8 29.0 27.5 28.8 +2.0 -0.1 +1.3 O. P. % 13.7% 13.8% 13.3

  10. Slide 10: 2018 Results by Segment

    2018 Results by Segment (Billons of Yen) Sales Operating Profit 2017 2018 2017 2018 vs vs vs vs vs vs Results Forecast Forecast Results Forecast Forecast Results Forecast Forecast Results Forecast Forecast : Record-hjgh (as of Feb. 13) (as of Nov. 13) 2017 (as of Feb.13) (as of Nov.9) (as of Feb. 13

  11. Slide 11: Contents

    Contents 2018 Results 2019 Forecast Business Segments Outline Share Holder Return Other Topics Financial Data Corporate profile © 2019 HORIBA, Ltd. All rights reserved. 11

  12. Slide 12: Market Assumptions for 2019

    Market Assumptions for 2019 Strong appetite for investment in the global automotive sector due to tighter Auto emission regulations mainly in Asia and innovation for electrification & autonomous driving Increase in demand due to tighter environmental regulations in emerging P&E countries Recovery in

  13. Slide 13: Exchange rate

    Exchange rate (Yen) 2017 2018 2019 Results Results Forecast vs 2018 USD 112.16 110.44 110 -0.44 EUR 126.70 130.35 125 -5.35 1 yen O.P. sensitivity for 2019 Forecast (Yen appreciation) USD -243 million yen EUR -12 million yen © 2019 HORIBA, Ltd. All rights reserved. 13

  14. Slide 14: 2019 Forecast

    2019 Forecast (Billons of yen) 2017 2018 2019 : Record-high Results Results Forecast vs 2018 Sales 195.3 210.5 218.0 +7.4 Operating Profit 26.8 28.8 29.0 +0.1 O. P. % 13.7% 13.7% 13.3% -0.4p Ordinary Profit 26.6 28.3 28.5 +0.1 Net Income attribute to Owners of Parent 16.2 22.3 20.0 -2.3 Net profit p

  15. Slide 15: 2019 Forecast by Segment

    2019 Forecast by Segment (Billons of yen) Sales Operating Profit 2018 2019 vs 2018 2019 vs : Record-high Results Forecast 2018 Results Forecast 2018 Auto 79.6 85.0 +5.3 7.7 9.0 +1.2 P&E 19.3 20.0 +0.6 2.0 2.0 -0.0 Medical 26.0 28.0 +1.9 1.8 2.0 +0.1 Semi 57.7 55.0 -2.7 17.0 15.0 -2.0 Scientific 27.7

  16. Slide 16: Contents

    Contents 2018 Results 2019 Forecast Business Segments Outline Share Holder Return Other Topics Financial Data Corporate profile © 2019 HORIBA, Ltd. All rights reserved. 16

  17. Slide 17: Auto 2018 Results and 2019 Forecast

    Auto 2018 Results and 2019 Forecast (Billions of yen) Automotive Sales Breakdown 2018 Results EMS MCT ITS ECT 85.0 79.6 73.3 10.0 65.4 9.3 1.0 62.2 8 1.2 ＋ EMS Higher demand in China and India due to new 4.2 1.6 18.2 21.0 1.6 7.2 regulations 1.6 18.3 ＋ 19.7 13.2 - MCT※1 One-off expenses, including a

  18. Slide 18: Industry-academia tie-up to respond to change in the automotive industry

    Industry-academia tie-up to respond Auto to change in the automotive industry Contributing to boosting efficiency in Promoting development of connected the accelerated simulation-based automotive development /autonomous driving technology  Improve development of test equipment allowing  Ensure saf

  19. Slide 19: More solutions, addressing electrification challenges

    More solutions, addressing electrification Auto challenges Acquisition of FuelCon AG (Germany) Open an advanced lab to strengthen battery test business 【September 2018】 for vehicle electrification 【Main business】 HORIBA BIWAKO E-HARBOR Cell Zero Development and production of ① fuel cell and battery

  20. Slide 20: P&E 2018 Results and 2019 Forecast

    P&E 2018 Results and 2019 Forecast (Billions of yen) 2018 Results Supplied water quality analyzers (tap water) to Kuala Lumpur ＋ 【Stack gas analyzers / Process measurement equipment】 Sales increase in North America by sales efforts Received ＋ 【Air quality monitoring】 repeat orders in Demand growth i

  21. Slide 21: Promote localization for business expansion

    P&E Promote localization for business expansion Localization according to trends in developed/emerging markets yields good results HORIBA Group’s main 【Germany】 【USA】 bases in the P&E segment Enhance Enhance Stack gas analyzer manufacturing/sales 【China, Asia】 sales/product dev’t Record shipment of

  22. Slide 22: Medical 2018 Results and 2019 Forecast

    Medical 2018 Results and 2019 Forecast (Billions of yen) 2018 Results Latest test system ＋ Strong sales of hematology analyzers in China and India ＋ - Increase in R&D expenses for achieving greater competitiveness Solution Operation of the large-scale ＋ Acquisition of a micro-blood analysis system (

  23. Slide 23: Broaden technologies and product functions

    Medical Broaden technologies and product functions Acquisition of a micro-blood analysis system Broader functions of products business from Rohm Co., Ltd. help solve social challenges 【Main business】 【Technology characteristics 】 HORIBA’s hematology analyzers Development of μTAS1 Enable offering of

  24. Slide 24: Semi. 2018 Results and 2019 Forecast

    Semi. 2018 Results and 2019 Forecast (Billions of yen) 2018 Results HORIBA STEC’s 45th anniversary Record-high sales and operating profit Launched Japan’s first mass flow ＋ controllers in 1980 Boosted supply and enhanced development ＋ capability by the Aso factory expansion and opening Grew to achie

  25. Slide 25: Expand business to cover the entire semiconductor manufacturing process

    Expand business to cover the entire Semi. semiconductor manufacturing process Diverse product line-up contributing to the overall semicon manufacturing process Material assessment Manufacturing process Quality control and waste water treatment Mass flow controller (Precision enhancement in Raman spe

  26. Slide 26: Scientific 2018 Results and 2019 Forecast

    Scientific 2018 Results and 2019 Forecast (Billions of yen) 2018 Results New product launched in 2018 X-ray analytical microscope XGT9000 ＋ Sales increase in Japan and Europe on the back of More accurate defect and robust corporate R&D spending foreign material analysis of products ＋ Recognized exp

  27. Slide 27: Expand core business and contribute to technology innovation

    Expand core business and contribute to Scientific technology innovation Acquisition of MANTA Instruments Inc. Contributing to technology innovation to obtain new technology  Acquired this U.S. start-up company that develops, manufactures and sells nanoparticle measurement  Prof. Gérard Mourou, who

  28. Slide 28: Core analytic technology supports cutting-edge progress

    Scientific Core analytic technology supports cutting-edge progress 20 years of technological integration of HORIBA and Jobin Yvon and new market development HORIBA celebrates 65th anniversary HORIBA’s strengths in Jobin Yvon’s strengths in measurement instruments for industry products for scientists

  29. Slide 29: Contents

    Contents 2018 Results 2019 Forecast Business Segments Outline Share Holder Return Other Topics Financial Data Corporate profile © 2019 HORIBA, Ltd. All rights reserved. 29

  30. Slide 30: 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 Ordinary dividend: 125yen  2017 Results 116yen [Inte

  31. Slide 31: Contents

    Contents 2018 Results 2019 Forecast Business Segments Outline Share Holder Return Other Topics Financial Data Corporate profile © 2019 HORIBA, Ltd. All rights reserved. 31

  32. Slide 32: Workplace-rooted Workstyle Renovation

    Workplace-rooted Workstyle Renovation Stained Glass Project Introducing “Good Place” work system Step 1  Initial focus on engagement of women at Allowing flexible workstyle and in 2014 workplace aiming at capable employees to continue working Step 2  Start “work style renovation” workshop “Good Pl

  33. Slide 33: Contents

    Contents 2018 Results 2019 Forecast Business Segments Outline Share Holder Return Other Topics Financial Data Corporate profile © 2019 HORIBA, Ltd. All rights reserved. 33

  34. Slide 34: Operating Profit Analysis (vs 2018)

    Operating Profit Analysis (vs 2018) (Billions of yen) 2017 2018 Jan. – Dec. Jan. - Dec. Increase Exchange Increase Exchange Increase Cost of Impact for Increase 26.8 Sales Goods gross Impact for R&D Cost Other 28.8 Expenses Expense +14.5 sales Profit -1.1 -0.1 -3.3 -7.9 -0.02 Increase +6.6 Exchange

  35. Slide 35: Impact of Fluctuation in Foreign exchange

    Impact of Fluctuation in Foreign exchange (Millions of yen) Exchange rate impact (2018 result) Exchange rate impact Sales +¥579mn O.P. -¥182mn for 2019 Forecast 1 yen impact of Sales and O.P. Sales Operating Profit (Yen appreciation) Total USD EUR Total USD EUR Sales Auto +581 -177 +586 -11 -41 +56

  36. Slide 36: Capital Investment, Depreciation, R&D

    Capital Investment, Depreciation, R&D (Billions of yen) 2017 2018 2019 Previous vs vs vs Result Forecast Result Previous Forecast 2017 2018 (as of Nov 9) Forecast Capital Investment 11.6 14.0 10.2 -1.3 -3.7 16.0 +5.7 Depreciation 7.5 7.5 7.2 -0.2 -0.2 7.5 +0.2 R&D 13.9 15.5 15.1 +1.2 -0.3 16.0 +0.8

  37. Slide 37: Consolidated Cash Flows

    Consolidated Cash Flows (Billions of yen) 2018 2017 Variation Cash flows from operating activities +19.5 +28.2 -8.7 Cash flows from investing activities -11.0 -13.1 +2.1 Cash flows from financing activities -3.2 -9.0 +5.8 Cash and cash equivalents at end of year +62.8 +58.3 +4.5 Free cash flows +8.5

  38. Slide 38: Cash Balance

    Cash Balance (Billions of yen) (Consolidated basis, each end of year) Total Loan Balance 46.7 44.7 44.0 Bond 42.0 redemption Bonds Bonds Bonds In 2020 15.0 Bonds Cash*1 15.0 Cash*1 15.0 Cash*1 Cash*1 15.0 62.8 58.3 47.8 Long 51.9 Long Long Borrowed Long 16.8 19.2 18.7 17.0 from JBIC*2 Short Short Sh

  39. Slide 39: Contents

    Contents 2018 Results 2019 Forecast Business Segments Outline Share Holder Return Other Topics Financial Data Corporate profile © 2019 HORIBA, Ltd. All rights reserved. 39

  40. Slide 40: Business Segments

    Business Segments Sales Breakdown by Segment Automotive Test Systems Sales: ¥210.5bn (1,897MUND) 13% Scientific Process & Environmental 27.7 38% （250） Automotive 79.6 Semicon （717） Medical 28% 57.7 （520） Medical P&E 26.0 19.3 Semiconductor （234） （174） 9% 12% Scientific ( ) =Segment Sales in MUSD % =

  41. Slide 41: HORIBA Worldwide

    HORIBA Worldwide Sales of FY2018 : ¥210.5bn (1,897 MUSD) Sales Ratio by Region The Number of Group Companies by region EU Japan (As of December 31, 2018) 22% 31% Americas Americas 9 16% Asia Europe 22 31% Asia 18 (4 in Japan, including HORIBA, Ltd.) Total 49 © 2019 HORIBA, Ltd. All rights reserved.

  42. Slide 42: Employees by Region

    Employees by Region Americas Other Europe 2% Total Number of Employees 2% The U.S. 7,943 10% Germany Japan Total Asia : 4,315 9% Japan 55% 38% The U.K. 38% Total Europe： 2,637 10% France 33% Other 12% Asia Total Americas： 991 17% 14% 12% (As of December 31, 2018) © 2019 HORIBA, Ltd. All rights reser

  43. Slide 43: © 2019 HORIBA, Ltd. All rights reserved.

    © 2019 HORIBA, Ltd. All rights reserved. 43

  44. Slide 44: Business results trend for 20 years/Targets/Progress of MLMAP

    【Ref.】 Business results trend for 20years/Targets/Progress of MLMAP (Billons of yen) Continuous growth in Sales/Operating Profit/Net Income Sales Growth in two times for 10 years from 2010 250.0 20152020 CAGR：7.8％ 218.0 210.5 Sales Operating Profit Net Income 195.3 Operating Profit 28.8 29.0 30.0 1

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