Horiba, Ltd. · TSE:6856
Horiba — Nomura Investment Forum 2017
42 slides from Horiba's conference presentation, Nov 29, 2017
Slide 1: HORIBA, Ltd. Nomura Investment Forum 2017
HORIBA, Ltd. Nomura Investment Forum 2017 November 29, 2017 Hotel Chinzanso, Tokyo © 2017 HORIBA, Ltd. All rights reserved. 1
Slide 2: Contents
Contents 2017 Results & Forecast Business Segment Outline Shareholder Return Other Topics Financial Data Corporate Profile [Disclaimer] Plans and forecasts in this presentation that do not constitute historical facts are predictions concerning future business results. These statements ar
Slide 3: Contents: 2017 Results & Forecast
Contents 2017 Results & Forecast Business Segment Outline Shareholder Return Other Topics Financial Data Corporate Profile © 2017 HORIBA, Ltd. All rights reserved. 3
Slide 4: Review of 2017
Review of 2017 Start of the Trump administration in US UK’s announcement to leave EU -> General election in UK External Presidential election in France Events -> Japan-EU Economic Partnership Agreement Booming semiconductor market Autonomous driving, EV, Emission regulation New/expanded
Slide 5: 2017 Jan.-Sept. Results and Full year forecast
2017 Jan.-Sept. Results and Full year forecast : Record-highs (Billions of Yen) Jan.-Sept. Results ：Renewed record-highs in sales and profit due to booming Auto. & Semi. segments. Full year forecast ：Upward revision of sales, profit, and dividends. Jan.-Sept. Full year Results Results 2017 Forecast
Slide 6: Sales, O.P. (Jan.-Sept. Results and Full year forecast)
Sales, O.P. (Jan.-Sept. Results and Full year forecast) : Record-highs(After 2011) (Billions of Yen) 2016 2017 Jan.-Sept. Jan.-Sept. 2016 2017 2017 【Jan.-Sept. Results】 Sales Forecast vs ◆Auto Results Results vs 2016 Results Forecast vs 2016 Previous as of Aug.4 forecast Increased sales and profit d
Slide 7: Sales, O.P. (Quarterly Results and Forecast)
Sales, O.P. (Quarterly Results and Forecast) (Billions of Yen) 2016 2017 【3Q Results & Sales 4Q Ful year 1Q 2Q 3Q 4Q Full year 1Q 2Q 3Q Forecast forecast 4Q Forecast】 Auto 14.9 13.1 11.2 22.7 62.2 17.3 13.3 14.7 25.6 71.0 ◆Auto Increased sales and P&E 4.1 3.6 4.0 4.9 16.7 4.1 3.8 3.9 4.9 17.0 prof
Slide 8: Bookings trend
Bookings trend (Billions of Yen) Record-highs bookings and backlog in 3Q due to booming Auto. & Semi. segments. Bookings Backlog 2016 2017 2016 2017 3Q 4Q 1Q 2Q 3Q 3Q end 4Q end 3Q end Auto 18.6 22.1 17.3 19.5 22.2 49.5 48.9 62.7 P&E 3.6 5.0 3.7 4.5 5.0 4.2 4.3 5.5 Medical 5.6 6.6 6.6 6.2 6.0 3.5 3.
Slide 9: Contents: Business Segment Outline
Contents 2017 Results & Forecast Business Segment Outline Shareholder Return Other Topics Financial Data Corporate Profile © 2017 HORIBA, Ltd. All rights reserved. 9
Slide 10: Market Overview for the Full-Year 2017
Market Overview for the Full-Year 2017 - Expect steady R&D investment by auto/auto parts manufacturers Auto due to tighter emission regulations in EU and Japan. - Active investment trend in global automotive sector. - Tighter environmental regulations in China P&E - Business opportunities in water t
Slide 11: Auto Jan.-Sept. Results and Forecast for 2017
Auto Jan.-Sept. Results and Forecast for 2017 (Billions of Yen) 2017 Jan.-Sept. Results 2017 Jan.-Sept. Results Sales (prior year) EMS 28.0 (25.1) ＋ EMS Sales increase due to tighter emission regulations MCT 10.1 (7.4) ＋ MCT Recovery in capital spending by automakers ITS 1.3 (1.2) - ECT Expense incr
Slide 12: Auto: Action for next-generation emission regulations
Auto Action for next-generation emission regulations (Billions of Yen) EMS : Action for next-generation emission regulations ※1 [Sales/ Backlog] WLTP (Unified emission regulations by the UN) Backlog Sales Forecast Start: Sep. 2017 in EU; Oct. 2018 in Japan 44.0 37.4 39.8 40.1 33.3 *2 RDE Regulation
Slide 13: Auto: Contributing to R&D for EVs and autonomous driving vehicles
Contributing to R&D for EVs and Auto autonomous driving vehicles (Billions of Yen) MCT Business: Response to the trend to promote EVs Improve sales and profitability in 2017 HORIBA’s business areas - Recovery in automakers’ capex Provide solutions, from single systems (i.e., powertrain, - The Turn K
Slide 14: P&E Jan.-Sept. Results and Forecast for 2017
P&E Jan.-Sept. Results and Forecast for 2017 (Billions of Yen) 2017 Jan.-Sept. Results Increase in demand for stack gas analyzers: replacement demand in Japan and ＋ VOC-regulation related sales in China ＋ Firm demand for water measurement systems in Japan but less-than-expected - sales growth 2017 F
Slide 15: P&E Enhancing global business
P&E Enhancing global business Invest in the process measurement equipment business : New Houston factory Start: April 1st, 2017 Houston factory Analyzer house* Place: Houston in Texas (US) Function: Production of P&E equipment; Scientific & Medical-related sample tasting Objective: Business growth t
Slide 16: Medical Jan.-Sept. Results and Forecast for 2017
Medical Jan.-Sept. Results and Forecast for 2017 (Billions of Yen) 2017 Jan.-Sept. Result ＋ - Increase in expense in promoting hematology and CRP analyzers in Japan ＋ - Sales drop in EU/South America; impacts of French new products in and after 2018 2017 Full-Year Forecast - Intensified competition
Slide 17: Medical New product launch for business expansion
Medical New product launch for business expansion New inspection system “HELO Solution” in the mid- to high-end market Strengths “HELO Solution” - Total solutions including clinical (Launch in 2017) data management system - Flexibility in layout Schedule Rendering of installed products in a cust
Slide 18: Semi Jan.-Sept. Results and Forecast for 2017
Semi Jan.-Sept. Results and Forecast for 2017 (Billions of Yen) 2017 Jan.-Sept. Results MFC-related topics in Semi. market ＋ Record-high sales and OP - Transition of memory in data centers - Increase in capital spending in Asia -> Surge in semiconductor - High demand for etching for 3D-NAND - Change
Slide 19: Semi Further enhancing stable supply
Semi Further enhancing stable supply Investment in production factory (Aso in Japan; South Korea) Expanding Aso factory of HORIBA STEC Co., Ltd. Expansion area Investment: App. 2.7bn yen / Completion: Dec. 2017 (Plan) Objective: Expand production capacity of MFC (1.5 times in floor space) Establ
Slide 20: Scientific Jan.-Sept. Results and Forecast for 2017
Scientific Jan.-Sept. Results and Forecast for 2017 (Billions of Yen) 2017 Jan.-Sept. Results ＋ Sales increase of core components for optical products in US and EU - Sluggish sales for universities in Japan, US, and EU ⇔ ＋ Strong sales in China ＋ Increase in R&D expenses for new product launch Diffr
Slide 21: Scientific Supporting to cultivate HORIBA's technologies
Scientific Supporting to cultivate HORIBA’s technologies “Diffracting grating,” core technology of the French subsidiary Increase in demand for customized grating for high-intensity laser Increase in demand for optical equipment including grating increase for SPE* makers *Semiconductor Productio
Slide 22: Contents: Shareholder Return
Contents 2017 Results & Forecast Business Segment Outline Shareholder Return Other Topics Financial Data Corporate Profile © 2017 HORIBA, Ltd. All rights reserved. 22
Slide 23: Shareholder return
Shareholder return Basic policy - Dividend payment + Share buyback = 30% of Consolidated net profit to be targeted - Remaining earnings are retained internally for strategic investment (i.e., facilities, M&A) Dividends per share and Share buybacks 2015 Results 70 yen [Interim 28 yen, Year-end 42 yen
Slide 24: Contents: Other Topics
Contents 2017 Results & Forecast Business Segment Outline Shareholder Return Other Topics Financial Data Corporate Profile © 2017 HORIBA, Ltd. All rights reserved. 24
Slide 25: Change of Representative Directors
Change of Representative Directors At the board meeting on Oct. 24th 2017, change of Company’s Representative Directors was decided as follows Name New title from Jan. 1st 2018 Current title Atsushi Horiba Chairman & Group CEO Chairman, President and CEO Juichi Saito Executive Vice Chairman & Group
Slide 26: HORIBA Medical and Siemens Healthineers enter into long-term agreement
HORIBA Medical and Siemens Healthineers enter into long-term agreement on Oct. 9th. ◆Background of the agreement Achieve further expansion in IVD market to address the multidisciplinary requirement though long-term partnership HORIBA ABX S.A.S. (France) Continuous investments have resulted in hema
Slide 27: Action for workstyle innovation
Action for workstyle innovation “Stained Glass Project” initiatives “KAERU” Meeting *KAERU” =Going home STEP 1 - Start from promoting women’s (from May 2017) 2014 empowerment - 111 persons (18 teams) join - Themes: “Efficient operation” - Start “workstyle innovation” workshop “Individual skill-up” S
Slide 28: HORIBA Stained Glass Project
HORIBA Stained Glass Project When diverse human resources can shine, HORIBA can become even stronger ＜Goals＞ 1. Increase the corporate competitiveness of HORIBA through diversity Business - Turn diversity beyond gender, generation, group, nationality, form of employment, disability, etc. into power
Slide 29: Contents: Financial Data
Contents 2017 Results & Forecast Business Segment Outline Shareholder Return Other Topics Financial Data Corporate Profile © 2017 HORIBA, Ltd. All rights reserved. 29
Slide 30: Operating profit analysis (vs. 2016)
Operating profit analysis ( vs. 2016 ) (Millions of Yen) 2016 2017 Jan.-Sept. Jan.-Sept. Increase Increase Cost of Exchange Exchange Other 10,659 Sales goods impact for impact for R&D cost expenses 14,612 amount sales Gross profit Expenses increase increase +13,716 -8,002 +1,107 -380 -577 -1,909 Sal
Slide 31: Impact of fluctuation in foreign exchange
Impact of fluctuation in foreign exchange Exchange rate impact (2017 Nine Months Results) Exchange rate Average Exchange rate for 2017 Forecast Jan.-Sept. 2016 USD/JPY : 108.57, EUR/JPY : 121.06 USD/JPY : 111, EUR/JPY : 127 Jan.-Sept. 2017 USD/JPY : 111.89, EUR/JPY : 124.58 (4Q USD/JPY : 108 , EUR/J
Slide 32: Capital Investment, Depreciation, R&D
Capital Investment, Depreciation, R&D (Billions of Yen) No change from previous forecast 2016 2017 Forecast 2016 2017 Forecast Revised vs Forecast Jan.-Sept. Jan.-Sept. Results as of Aug. 4 as of Aug. 4 Forecast PP&E 13.4 14.6 14.6 No change 8.5 8.1 Intangibles 0.3 0.4 0.4 No change 0.2 0.2 Capital
Slide 33: Consolidated Cash Flows
Consolidated Cash Flows (Millions of yen) 2016 2017 Variation First-Half First-Half Cash flows from operating activities 5,987 16,274 +10,287 Cash flows from investing activities -5,071 -6,804 -1,732 Cash flows from financing activities 59 -7,104 -7,164 Cash and cash equivalents at end of year 47,71
Slide 34: Cash Balance
Cash Balance (Billions of yen) (Consolidated basis, each end of the year) Total Loan Balance 44.7 46.7 41.7 28.0 Bond redemption in 2020 Cash※ Cash※ Bonds 15.0 Cash※ Bonds 15.0 Cash※ 51.1 47.8 51.9 54.1 Bonds 15.0 Bonds 15.0 Long 16.8 Long 19.2 Long 19.0 Borrowed from JBIC* Long 2.2 15.1bn yen Short
Slide 35: Contents: Corporate Profile
Contents 2017 Results & Forecast Business Segment Outline Shareholder Return Other Topics Financial Data Corporate Profile © 2017 HORIBA, Ltd. All rights reserved. 35
Slide 36: Corporate Profile
Corporate Profile Atsushi Horiba Head office Kyoto, Japan President & CEO Founded 1945 Incorporated 1953 CEO Atsushi Horiba Fiscal year end December 31 - Corporate motto - To have interest and pride in our work to enjoy our lives © 2017 HORIBA, Ltd. All rights reserved. 36
Slide 37: Business Segments
Business Segments ・Emission Measurement Systems ・Test Automation Systems Automotive Test Systems ・Intelligent Transport Systems ・Engineering Consultancy & Testing (HORIBA MIRA, Ltd) ・Environmental & Process Systems Process & Environmental ・Environmental Radiation Monitor ・Environmental Regulation &
Slide 38: Business Segments: Sales Breakdown by Segment
Business Segments Sales Breakdown by Segment Automotive Test Systems Sales: 170.0 bn yen (1,460 MUSD) 15% Process & Environmental Scientific 25.7 36% 23% (220) Automotive 62.2 Medical Semicon (534) 38.8 (333) P&E Medical 16.7 Semiconductor 26.5 (143) (228) 16% 10% ( ) =Segment Sales in MUSD Scientif
Slide 39: Market Shares
Market Shares Global Domestic Automatic Blood Cell Counter Emission Measurement Systems Stack Gas Analyzers plus CRP 80% 20% 100% (As of December 31, 2015) Mass Flow Controllers Raman Spectrophotometers Gratings 57% 30% 35% ※Market shares quoted are estimates by HORIBA. © 2017 HORIBA, Ltd. All right
Slide 40: HORIBA Worldwide
HORIBA Worldwide Sales of FY2016 : 170.0 BJPY (1,460 MUSD) Sales Ratio by Region EU The Number of Group Companies by region Japan (As of December 31, 2016) 23% 33% Americas 9 Americas Europe 23 18% Asia Asia 17 (4 in Japan, including HORIBA, Ltd.) 26% Total 49 © 2017 HORIBA, Ltd. All rights reserved
Slide 41: Employees by Region
Employees by Region Americas 3% Total Number of Employees Other Europe 2% U.S.A 7,149 10% Total Asia : 3,761 Germany Japan 8% Japan 53% 38% UK 38% Total Europe： 2,442 11% France 34% Other 13% Asia Total Americas： 946 15% 14% 13% (As of December 31, 2016) © 2017 HORIBA, Ltd. All rights reserved. 41
Slide 42: © 2017 HORIBA, Ltd. All rights reserved.
© 2017 HORIBA, Ltd. All rights reserved. 42 42