Horiba, Ltd. · TSE:6856
Horiba — CREDIT SUISSE 2019 Japan Kyoto Conference
92 slides from Horiba's conference presentation, Sep 30, 2019
Slide 1: Financial Information
Financial Information HORIBA, Ltd. September, 2019 © 2019 HORIBA, Ltd. All rights reserved. 1
Slide 2: Contents
Contents 2019 First Half Results 2019 Forecast Outlines by Business Segments Shareholder Return Other Topics Financial Data Corporate Profile © 2019 HORIBA, Ltd. All rights reserved. 2
Slide 3: Contents
Contents 2019 First Half Results 2019 Forecast Outlines by Business Segments Shareholder Return Other Topics Financial Data Corporate Profile © 2019 HORIBA, Ltd. All rights reserved. 3
Slide 4: Review of 2019 First Half
Review of 2019 First Half The accelerating US-China trade conflict and the deteriorating Japan-South Korea relationship External Intensified Brexit uncertainties Events Slowdown in capital spending for semiconductors Automotive electrification trend and tighter emission regulations Continu
Slide 5: Summary of 2019 First-Half Results
Summary of 2019 First-Half Results Significant year-on-year decrease in sales and profit due to a slowdown of the Semiconductor segment Year-on-year decrease in sales and profit of the Semiconductor segment P&L Decline in profitability of the Automotive segment due to a change in geographical sa
Slide 6: 2019 First Half Results
2019 First Half Results (Billons of Yen) 2018 1st Half 2019 1st Half Forecast vs vs Results (as of Feb.12) Results 2018 Forecast Sales 99.9 96.0 91.6 - 8.3 - 4.3 Operating Profit 14.0 10.5 8.2 - 5.7 - 2.2 OP % 14.1% 10.9% 9.0% -5.1p -1.9p Ordinary Profit 13.7 10.3 8.0 - 5.6 - 2.2 Net Profit attribut
Slide 7: 2019 First Half Results by Segment
2019 First Half Results by Segment (Billons of Yen) Sales Operating Profit 2018 1st Half 2019 1st Half 2018 1st Half 2019 1st Half Forecast vs vs Forecast vs vs Results Results Results Results : Record-hjgh (as of Feb. 12) 2018 Forecast (as of Feb. 12) 2018 Forecast Auto 32.7 36.0 34.3 +1.6 -1.6 2.4
Slide 8: Contents
Contents 2019 First Half Results 2019 Forecast Outlines by Business Segments Shareholder Return Other Topics Financial Data Corporate Profile © 2019 HORIBA, Ltd. All rights reserved. 8
Slide 9: 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
Slide 10: Exchange rate
Exchange rate (Yen) 2018 Results 2019 Previous Results Forecast Current 1sf Half Full year Forecast 2nd Half Forecast (as of Feb. 12) 1Q 2Q 1st Half (as of Aug. 6) USD 108.67 110.44 110 110.22 109.90 110.06 109.94 110 EUR 131.55 130.35 125 125.16 123.48 124.32 125.68 125 1 yen O.P. sensitivity for 2
Slide 11: 2019 Forecast
2019 Forecast (Billons of yen) 2018 2019 Previous vs Forecast vs Results Forecast 2018 Previous ： Record-high (as of Feb. 12) (as of Aug. 6) Forecast Sales 210.5 218.0 213.0 +2.4 -5.0 Operating Profit 28.8 29.0 25.0 -3.8 -4.0 OP % 13.7% 13.3% 11.7% -2.0p -1.6p Ordinary Profit 28.3 28.5 24.5 -3.8 -4.
Slide 12: 2019 Forecast by Segment
2019 Forecast by Segment (Billons of yen) Sales Operating Profit 2018 2019 2018 2019 Previous vs Previous vs Forecast vs Forecast vs Results Forecast Previous Results Forecast Previous : Record-hjgh (as of Aug. 6) 2018 (as of Aug. 6) 2018 (as of Feb. 12) Forecast (as of Feb. 12) Forecast Auto 79.6 8
Slide 13: Contents
Contents 2019 First Half Results 2019 Forecast Outlines by Business Segments Shareholder Return Other Topics Financial Data Corporate Profile © 2019 HORIBA, Ltd. All rights reserved. 13
Slide 14: Auto First Half Results and 2019 Forecast
Auto First Half Results and 2019 Forecast (Billions of yen) Sales 2019 First Half Results 【Half year】 Sales and O.P. O.P. 50.6 ＋ EMS Higher demand in China and India, driven by 46.9 42.7 6.4 adoption of new regulations 34.0 30.6 5.5 32.7 5.2 34.3 28.1 Robust demand in Europe continued even after 2.9
Slide 15: P&E First Half Results and 2019 Forecast
P&E First Half Results and 2019 Forecast (Billions of yen) Sales 2019 First Half Results 【Half year】 Sales and O.P. O.P. ＋ 【Stack gas analyzers】 10.8 10.1 8.9 9.3 9.2 9.1 Strong sales in Japan 7.7 8.0 1.3 ＋ 【Air quality monitoring】 1.1 - Decline from last year when a large project was recorded in As
Slide 16: Medical First Half Results and 2019 Forecast
Medical First Half Results and 2019 Forecast (Billions of yen) Sales 2019 First Half Results 【Half year】 Sales and O.P. O.P. 15.3 Decrease in sales from Europe in yen terms due to the - 13.8 12.7 12.3 12.8 13.1 12.8 12.6 euro’s depreciation against the yen 1.5 1.2 1.2 1.0 ＋ Business expansion in eme
Slide 17: Semi First Half Results and 2019 Forecast
Semi First Half Results and 2019 Forecast (Billions of yen) Sales 2019 First Half Results 【Half year】 Sales and O.P. O.P. 32.3 28.5 27.2 - Decline in both sales and operating profit comparing 24.7 10.2 25.4 8.8 22.7 20.9 with the previous year 17.8 6.7 6.8 6.6 5.3 - Semiconductor manufacturers’ capi
Slide 18: Scientific First Half Results and 2019 Forecast
Scientific First Half Results and 2019 Forecast (Billions of yen) Sales 2019 First Half Results 【Half year】 Sales and O.P. O.P. 17.3 ＋ Sales increase in Asia and Americas on the background of 13.3 14.6 15.2 12.3 12.5 12.6 11.5 robust corporate R&D spending ＋ Improvement in profitability compared to
Slide 19: Contents
Contents 2019 First Half Results 2019 Forecast Outlines by Business Segments Shareholder Return Other Topics Financial Data Corporate Profile © 2019 HORIBA, Ltd. All rights reserved. 19
Slide 20: 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
Slide 21: Contents
Contents 2019 First Half Results 2019 Forecast Outlines by Business Segments Shareholder Return Other Topics Financial Data Corporate Profile © 2019 HORIBA, Ltd. All rights reserved. 21
Slide 22: Withdrawal from the ITS business
Withdrawal from the ITS* business *ITS: Intelligent Transport Systems Developed and provided total management systems that enabled monitoring of commercial vehicle driving information Commoditization of onboard devices made it hard to differentiate the products Will end to sell products and of
Slide 23: Contents
Contents 2019 First Half Results 2019 Forecast Outlines by Business Segments Shareholder Return Other Topics Financial Data Corporate Profile © 2019 HORIBA, Ltd. All rights reserved. 23
Slide 24: Operating Profit Analysis (vs 2018)
Operating Profit Analysis (vs 2018) (Billions of yen) 2018 2019 Jan. – Jun. Jan. - Jun. Decrease Decrease Exchange Exchange Increase 14.05 Cost of Impact for Impact for Increase Other Sales Goods Sales Gross Profit Expenses R&D Cost Expense 8.28 -6.72 +2.51 -0.61 +0.47 -1.23 -0.18 Decrease -4.21 Exc
Slide 25: Impact of Fluctuation in Foreign exchange
Impact of Fluctuation in Foreign exchange (Billions of yen) Exchange rate impact (2019 First Half results) Exchange rate impact Sales -¥1.63bn O.P. -¥0.14bn for 2019 Forecast 1 yen impact of Sales and O.P. (Yen appreciation) 2019 First Half results vs 2018 Sales Decrease Sales - 1.63 USD -¥0.44bn De
Slide 26: Capital Investment, Depreciation, R&D
Capital Investment, Depreciation, R&D (Billions of yen) 2018 2019 2018 2019 Previous vs Forecast vs 1st Half 1st Half Result Forecast Previous (as of Aug 6) 2018 Results Results (as of May 14) Forecast Capital Investment 10.2 16.0 16.0 +5.7 - 5.7 5.1 Depreciation 7.2 8.0 8.0 +0.7 - 3.5 4.2 R&D 15.1
Slide 27: Consolidated Cash Flows
Consolidated Cash Flows (Billions of yen) 2019 2018 Variation 1st Half 1st Half Cash flows from operating activities +13.84 +12.40 +1.44 Cash flows from investing activities -4.26 -4.43 +0.16 Cash flows from financing activities -7.26 -4.31 -2.94 Cash and cash equivalents at end of year 64.64 61.47
Slide 28: Cash Balance
Cash Balance (Billions of yen) (Consolidated basis, each end of year) Total Loan Balance Bond 46.7 44.0 redemption 42.0 40.9 In 2020 Bonds 15.0 Bonds Bonds Cash* Cash* Cash* Cash* Bonds Borrowed for 15.0 15.0 51.9 58.3 62.8 64.6 15.0 Long MIRA Long Long 19.2 17.0 Long Acquisition 18.7 16.8 ¥15.1bn S
Slide 29: Contents
Contents 2019 First Half Results 2019 Forecast Outlines by Business Segments Shareholder Return Other Topics Financial Data Corporate Profile © 2019 HORIBA, Ltd. All rights reserved. 29
Slide 30: Business Segments
Business Segments Automotive Process & Test Systems Environmental Medical Semiconductor Scientific Scientific 13% Net Sales Automotive Expanding in New 38% 210.5 billion yen Semiconductor 28% Domains and Moving onto P&E a New Stage Medical Sales by business segment (%) 9% Fiscal 2018 12% © 2019 HORI
Slide 31: Global Network
Global Network (As of December 31, 2018) 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 Germany Japan 9% 38% Americas 991 （12％） 9 UK 10% Europe 2,637 （33％） 22 France 12% Other Asia Asia 4,315 （55％） 18
Slide 32: HORIBA's Business Domain
HORIBA’s Business Domain from Nano- to Cosmic-Level Analysis Space Planetary probe Development Auroral analysis Water Quality Global Environment Manufacturing Agriculture Management Conservation IT Infrastructure Process Plant factory Monitoring system Monitoring air pollution IoT, Cloud, 5G Semicon
Slide 33: HORIBA's Steady Growth
HORIBA’s Steady Growth : x10 Net Sales and x18 Op. Profit in 30 years Fiscal year ending Dec. 2018 Net sales: 210.5 billion yen Operating profit: 28.8 billion yen Moving on to the next stage with our new management 1953 HORIBA, LTD. was established 1960 1970 1980 1990 2000 2010 Moving on to the Foun
Slide 34: HORIBA BIWAKO E-HARBOR
HORIBA BIWAKO E-HARBOR © 2019 HORIBA, Ltd. All rights reserved. 34
Slide 35: 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 36: HORIBA BIWAKO E-HARBOR
HORIBA BIWAKO E-HARBOR © 2019 HORIBA, Ltd. All rights reserved. 36
Slide 37: Expansion of E-LAB for xEV Technology
Expansion of E-LAB for xEV Technology Expanding E-LAB to add test facility for secondary batteries and fuel cells (Operation is planned to start in 2019) CELL 0 CELL 1 CELL 2 CELL 3 Additional facility Cell and module testing, pack and fuel cell experiments © 2019 HORIBA, Ltd. All rights reserved. 3
Slide 38: HORIBA MIRA
HORIBA MIRA Information on page 40 to 41 are as of acquired the company. © 2019 HORIBA, Ltd. All rights reserved. 38
Slide 39: 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 40: 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(3)/EMC(9)/Crash • Off road lab/NVH Chassis/Battery test • Wet surface • City Circuit • Noise-Generating • Ride & Durabili
Slide 41: Mid-Long Term Management Plan MLMAP2023
Mid-Long Term Management Plan “MLMAP2023” HORIBA, Ltd. September, 2019 © 2019 HORIBA, Ltd. All rights reserved. 41
Slide 42: MLMAP2023 contents
MLMAP2023 1. Looking back on the current plan (MLMAP2020) 2. Numerical Targets 3. Priority Measures 4. Segment Strategy 5. Regional Strategy 6. Capital Strategy © 2019 HORIBA, Ltd. All rights reserved. 42
Slide 43: MLMAP2023 contents
MLMAP2023 1. Looking back on the current plan (MLMAP2020) 2. Numerical Targets 3. Priority Measures 4. Segment Strategy 5. Regional Strategy 6. Capital Strategy © 2019 HORIBA, Ltd. All rights reserved. 43
Slide 44: 20-Year Operating Results and Progress of MLMAP2020
20-Year Operating Results and Progress of MLMAP2020 Achieved continuous sales growth and high profitability グループ管理 through proactive investments with a long-term perspective 250.0 (Billions of yen) MLMAP2020 1.8 times sales growth in 8 years from 2010 210.5 213.0 Profit plan 30.0 28.8 Sales Operatin
Slide 45: Main Topics, 2016-2019 [M&A/Capital Investment]
Main Topics, 2016-2019 ［M&A/Capital Investment］ Investing to expand business scale and areas at a time of drastic change in industrial structure New businesses acquired through M&As [DE]FuelCon AG [UK]MIRA Ltd. [US]MANTA Instruments, Inc. Micro-blood analysis Strengthening Strengthening Strengthenin
Slide 46: Main Topics, 2016-2019 [M&A/Capital Investment]
Main Topics, 2016-2019 ［M&A/Capital Investment］ Investing to expand business scale and areas at a time of drastic change in industrial structure Strengthening development/production capabilities: ¥40bn invested in 3 years [US] Optical measurement [US]Support to a new [IN] HORIBA India [US] Process m
Slide 47: Background in Launching MLMAP2023
Background in Launching MLMAP2023 Urgent need to respond to the accelerated changes in business environment Significant changes in the trend Accelerated advanced in Increasing interest of automotive industry technology development in solving social issues SDGs/ Electrification/ Environmental Worksty
Slide 48: MLMAP2023 contents
MLMAP2023 1. Looking back on the current plan (MLMAP2020) 2. Numerical Targets 3. Priority Measures 4. Segment Strategy 5. Regional Strategy 6. Capital Strategy © 2019 HORIBA, Ltd. All rights reserved. 48
Slide 49: Numerical Targets of MLMAP2023
Numerical Targets of MLMAP2023 Net sales ¥300.0bn Operating income ¥40.0bn Net income ¥30.0bn EPS ¥711 (Earnings Per Share) ROE 10% or more Total return ratio Target around 30% Foreign exchange rate assumptions: ¥110/US$, ¥125/Euro © 2019 HORIBA, Ltd. All rights reserved. 49
Slide 50: Numerical Targets of MLMAP2023
Numerical Targets of MLMAP2023 (Billions of yen) Advancing to the next stage with continuous growth in sales and profit 300.0 1.5 times growth from 2018 40.0 CAGR Sales 210.5 213.0 20152018:7.2% 28.8 20182023:7.3% Sales Operating income Net income 170.8 170.0 Operating income 25.0 30.0 20152018:1
Slide 51: MLMAP2023 contents
MLMAP2023 1. Looking back on the current plan (MLMAP2020) 2. Numerical Targets 3. Priority Measures 4. Segment Strategy 5. Regional Strategy 6. Capital Strategy © 2019 HORIBA, Ltd. All rights reserved. 51
Slide 52: Priority Measures of MLMAP2023
Priority Measures of MLMAP2023 MLMAP2023 Slogan “ONE STAGE AHEAD” 1. Market Oriented Business To develop analysis and measurement solutions, utilizing HORIBA’s core technologies, in the leading three business fields of the mega trend 2. Solution Provider Beyond Life Cycle Management To support custo
Slide 53: HORIBA's Core Technologies
HORIBA’s Core Technologies Infrared Spectroscopic Liquid analysis Gas flow control Particle analysis measurement analysis (Electrochemical analysis) Semiconductors Automotive Test Systems Process & Environmental Automotive Test Systems Scientific Process & Environmental Semiconductors Automotive Tes
Slide 54: Priority Measure 1: Market-Oriented Business
Priority Measure 1: “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 Materials Bio Market & & & Environment Semiconductor Healthcare Mobility, Power Advanced materials, Clinic
Slide 55: Priority Measure 2: Solution Provider Beyond Life Cycle Management
Priority Measure 2: Becoming a “Solution Provider Beyond Life Cycle Management” To support customers’ businesses from all aspects, from installation to replacement Products/Solution Packages Support the efficient operation of Consulting with analysis technologies customers’ facilities Offer new valu
Slide 56: Priority Measure 3: HORIBA Core Values
Priority Measure 3： “HORIBA Core Values” The next stage of the Super Dream Team BlackJack Project Stained Glass Project To bring about changes in our awareness and HORIBA’s diversity promotion project activities, the project has yielded a system for [Themes] sharing front-line operating information
Slide 57: Priority Measure 3: HORIBA Core Values
Priority Measure 3: “HORIBA Core Values” Improve asset efficiency with HORIBA Premium Value Budgeting by using HORIBA’s unique KPI (subtracting “Cost of Approach for the enhancement of Capital” from “Operating Income”) that measures capital efficiency capital efficiency HORIBA Premium Value Operatin
Slide 58: MLMAP2023 contents
MLMAP2023 1. Looking back on the current plan (MLMAP2020) 2. Numerical Targets 3. Priority Measures 4. Segment Strategy 5. Regional Strategy 6. Capital Strategy © 2019 HORIBA, Ltd. All rights reserved. 58
Slide 59: Vision of MLMAP2023: Application-driven business
Vision of MLMAP2023 Application-driven business Provide the best applications in four business areas. Establish a position as an indispensable partner in the automotive development field. CAV: Connected/autonomous Emissions: Engine/exhaust gas Energy efficiency: Electrification driving system Enterp
Slide 60: Emissions: Strengthening the existing areas and challenging growth areas
Emissions: Strengthening the existing areas and challenging growth areas Solutions for fuel efficiency and exhaust gas Optimal powertrains (Challenging growth areas) regulations (Strengthening the existing areas) Globally, continuing tighter regulations Electrification leads to an increase in system
Slide 61: Energy Efficiency: Maximize the electrification business
Energy Efficiency： Maximize the electrification business Contribute to optimizing the development process of electric vehicles Establishment of the “CELL Zero” test facility for Objective of “Test in the Loop” evaluation of batteries for electric vehicles Proposal of a highly-efficient R&D environme
Slide 62: CAV: Acquisition of Initiatives in Advanced Technology
CAV*: Acquisition of Initiatives in Advanced Technology * CAV: Connected and Autonomous Vehicle “Drive/Turn/Stop & Protect” - Support R&D from all directions (HORIBA MIRA’s initiatives) Drive/Turn/Stop Protect Multi-purpose tests for Test facilities to verify an Opened the Vehicle Resilience* autono
Slide 63: Enterprise Data Management for Development
Enterprise Data Management for Development： Contributing to optimizing overall vehicle R&D Contributing to the front-loading of automotive development (reduction in man-hours from shorter development process) Core system that integrates and manages analysis and measurement data Knowledge in engineer
Slide 64: Vision of MLMAP2023
Vision of MLMAP2023 HORIBA as a worldwide player who analyzes the entire earth Provide various solutions in the global market: ranging from approaches to environmental regulations, to raising production efficiency Business growth in Open up markets in developed countries Grow globally in the emergin
Slide 65: Global Trend and Growing Needs of Environmental Measures
Global Trend and Growing Needs of Environmental Measures Increased awareness on global environmental preservation ⇒ contribution to productivity improvement Phase to improve industrial processes Phase for improving the environment Approaches to Demand 環境汚染～環境規制導入 environmental regulations Product sa
Slide 66: Growth in Emerging Countries/Developed Countries
Growth in Emerging Countries/Developed Countries Emerging Countries (Southeast Asia, etc.) Developed Countries Needs Approaches to environmental regulations Approaches to env. reg.＋ Industrial process improvement Improve Respond to local needs Higher productivity in the petro- air Enhance Industrial
Slide 67: Global Growth in the Water Measurement Business
Global Growth in the Water Measurement Business Process & Sales expansion in the tap water monitoring market Environmental Semiconductor Scientific Kuala Lumpur(Malaysia) Sao Paulo(Brazil) Water measurement business Tap water Monitoring of quality water discharge monitoring in the tap water Integrat
Slide 68: Vision of MLMAP2023: To be a Preferred Partner
Vision of MLMAP2023 To be a Preferred Partner Expand product portfolio from small to large scale analyzers. Accelerate global business expansion. Enhancing strength Entering the large-scale Capturing emerging Sales development in the small- and market markets medium-sized market Access to the hospit
Slide 69: Expand Business Domains
Expand Business Domains Use of proprietary technologies and Enhance strength in alliances for further expansion the small- to medium-sized market Test Category Hematology Clinical Immunology Coagulation Business environment Chemistry • Increase in testing in the background of the aging society Marke
Slide 70: Entering Large-scale Markets and Focusing on Particular Markets
Entering Large-scale Markets and Focusing on Particular Markets Expand business in large-scale markets Strengthen global network/supply chain Business environment • European market: centralization of testing at France France Japan US large-scale laboratories and productivity China improvement India
Slide 71: Vision of MLMAP2023: Shape the market, sell the solution
Vision of MLMAP2023 Shape the market, sell the solution Evolve the company into a comprehensive supplier that provides high-value-added solutions in all semiconductor manufacturing processes, from R&D to aftermarket services Enhance the existing fields Extend coverage Taking up challenges in new fie
Slide 72: Semiconductor Market Projection and HORIBA's Market Share in MFC
Semiconductor Market Projection and HORIBA’s Market Share in Mass Flow Controllers (MFC) US$1bn 700 HORIBA’s global market share in MFC(RH) 70% Market size by semi. device type(LH) 60% 604 600 60% Others 500 Analog 486 50% Discrete and Opto Electronics Flash Memory 400 40% DRAM 347 Logic 300 30% 200
Slide 73: Extend Coverage and Take up the Challenges of New Fields
Extend Coverage and Take up the Challenges of New Fields Provide high-value-added solutions in semiconductor manufacturing processes Wet/Lithograph Challenge to add R&D CVD/Etching process process new value Contribute to Deal with micro particles, evaluation/analysis of Increase in processes due
Slide 74: Establish a Solid R&D Network and Supply Chain
Establish a Solid R&D Network and Supply Chain Global R&D system Enhance supply capacity Enhance R&D operations in Kyoto and Production system in Japan Fukuchiyama (Japan), and Reno(US) Accelerate local engineering in China Reflect customers’ needs in R&D Aim to gain higher market share Increase pro
Slide 75: Vision of MLMAP2023: Core Technology Provider
Vision of MLMAP2023 Core Technology Provider Apply the technology cultivated as a founding business in the megatrend market. Leading “HORIBA in Technology” in cooperation with each segment Advanced materials Bio Energy, Semiconductor, Water Customized technology to meet all customer needs; Local eng
Slide 76: Advanced Materials and Bio Field
Advanced Materials and Bio Field Maximize synergies by effectively using resources from three global bases HORIBA FRANCE(France) HORIBA(Japan) HORIBA INSTRUMENTS (US) A leading company in Utilizing various technologies as a Deploy applications that satisfy spectroscopic analysis “headquarter o
Slide 77: Energy, Semiconductor, and Water
Energy, Semiconductor, and Water Collaborate with other segments to realize business expansion by using their sales channels Energy and automotive industry Profit from electrification in China Increase in demand for secondary battery material analysis Increase in demand for battery Raman spectrome
Slide 78: One-to-One Customization & Global Engineering
One-to-One Customization & Global Engineering Accelerate product development Strengthen uniqueness in for customer needs global engineering One to One Customization Founding Global Customization & Engineering Technology Engineering Inline/online measurement Propose products for customers based on
Slide 79: © 2019 HORIBA, Ltd. All rights reserved.
© 2019 HORIBA, Ltd. All rights reserved. 79
Slide 80: MLMAP2023 contents
MLMAP2023 1. Looking back on the current plan (MLMAP2020) 2. Numerical Targets 3. Priority Measures 4. Segment Strategy 5. Regional Strategy 6. Capital Strategy © 2019 HORIBA, Ltd. All rights reserved. 80
Slide 81: Vision of MLMAP2023: Think Big. Grow Bigger. (India)
India Vision of MLMAP2023 Think Big. Grow Bigger. Strengthen sales and the service network, rooted in the local society Provide high-value-added analysis/measurement technologies Enhance engineering/facility capability 2023 plan Sales of ¥13.0bn Establish local bases to strengthen engineering capa
Slide 82: Current Status and Changes in China Market
China Current Status and Changes in China Market China: Rapid growth and changes in the market Growth and technological improvement of local companies HORIBA: Invest aggressively and realize further growth in China at the time of changing trends in technology 1. Strengthen “production capacity” Plan
Slide 83: MLMAP2023 contents
MLMAP2023 1. Looking back on the current plan (MLMAP2020) 2. Numerical Targets 3. Priority Measures 4. Segment Strategy 5. Regional Strategy 6. Capital Strategy © 2019 HORIBA, Ltd. All rights reserved. 83
Slide 84: Shareholder Return and Financial/Investment Strategy
Shareholder Return and Financial/Investment Strategy Shareholder return policy Financial/investment strategy Dividend payment + Share buyback = 30% of 1. Invest effectively from a long-term perspective consolidated net profit* to be targeted 2. Utilize intra-group financing Retained earnings wil
Slide 85: Thoughts on ESG investment and SDGs
Thoughts on ESG investment and SDGs [Basic Policy] We contribute to realizing the sustainable G: Governance society advocated by SDGs* by offering S: Social analyze and measurement technologies Automotive Test E: Environment which lead technology innovation that supports security, safety, and health
Slide 86: Symbol for MLMAP2023: Hawk
Symbol for MLMAP2023: Hawk Find the targets from a heightened perspective Accomplish the objectives at the fastest speed © 2019 HORIBA, Ltd. All rights reserved. 86
Slide 87: © 2019 HORIBA, Ltd. All rights reserved.
© 2019 HORIBA, Ltd. All rights reserved. 87
Slide 88: References
References © 2019 HORIBA, Ltd. All rights reserved. 88
Slide 89: Numerical targets (vs 2018, vs 2019)
Numerical targets (vs 2018, vs 2019) (Billions of yen) 2018 2019 MLMAP2020 MLMAP2023 Results Forecast Plan Plan vs.2018 vs.2019 Sales 210.5 213.0 250.0 300.0 +42% +41% Operating income 28.8 25.0 30.0 40.0 +39% +60% Operating income% 13.7% 11.7% 12.0% 13.3% -0.4p +1.6p Net income 22.3 17.5 20.0 30.0
Slide 90: Numerical targets (by Segment)
Numerical targets (by Segment) (Billions of yen) Sales Operating income 2018 2019 MLMAP2020 MLMAP2023 vs. vs. 2018 2019 MLMAP2020 MLMAP2023 vs. vs. Results Forecast Plan Plan 2018 2019 Results Forecast Plan Plan 2018 2019 Auto 79.6 85.0 100.0 120.0 +51% +41% 7.7 8.0 10.0 12.0 +56% +50% P&E 19.3 20.0
Slide 91: Transition of Symbol
Transition of Symbol © 2019 HORIBA, Ltd. All rights reserved. 91
Slide 92: 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 © 2019 HORIBA, Ltd. All rights reserved. 92