Year ended December 31, 2017

Everything begins with measurement Everything begins with measurement 01

Sustainable growth in society is established through technological innovation. Engineers’ dreams, passions, and persistent efforts are intertwined with the conditions that enable them, including investment opportunities and social demand. “Measurement Technologies” that resolve unknown materials and phenomena help accelerate innovation by engineers. Everything begins with measurement. HORIBA’s “Measurement Technologies” and analysis solutions are always at the frontlines of innovation.

Results over the long-term and global expansion Global growth through M&As HORIBA has achieved continuous growth since its foundation, by specializing in “Measurement Technologies” and entering new markets. We intend to continue to grow by globally promoting HORIBA’s corporate culture, expressed in the corporate motto “Joy and Fun.” HORIBA Korea Ltd. was established in South Korea. HORIBA RADIO LABORATORY was established. OLSON-HORIBA, INCORPORATED, a joint venture company, was established in the U.S. HORIBA begins overseas expansion. HORIBA Instruments (Shanghai) Co., Ltd. was established in...

Net sales exceeded 100 billion yen \ The reagent plant for hematology analysis, the first in India, began operation. 2016 Net sales exceeded 50 billion yen

HORIBA’s value-creating cycle HORIBA’s value-creating cycle Creation of economic value Global business making and selling more than 1,000 products of various kinds Top-level shares in niche markets Profit generated year after year HORIBA’s value-creating cycle is presented by a tree (maintaining an operating margin of around 10%) Rich fruits born through business activities Five businesses Strong thick roots grown in rich soil Invisible values Corporate culture Business growth supported by continuous investment Rich soil cultivated by corporate motto “Joy and Fun” Strong trunk grown by nutrient...

Out of 17 Global Goals of the Sustainable Development Goals (SDGs), HORIBA has selected the following items to focus on. To contribute to building a sustainable society and the improvement of the global environment To realize a safe, pl easant society P19-22 To empower regions and create jobs P33-34 Scientific GOVERNANCE Invisible values Organizational structures Brand HORIBA operates five business segments HORIBA works on growing "Invisible in 27 countries. We believe it is important Values,” such as talents, technologies, and that each business is promoted from the its corporate culture....

HORIBA’s 4 unique points Corporate culture Corporate motto “Joy and Fun” We believe that if we take interest and pride in the work that occupies so much of our lives, and for many of us where we spend a large part of each day, then as a result our satisfaction with life will increase, and we will be able to enjoy our lives more. Operating income by business segment (Billions of yen) Balanced management The Semiconductor segment grew sharply thanks to continuous investment. HORIBA is an analytic and measurement equipment manufacturer with five business segments: Automotive Test Systems, Process...

ABX S.A. (now HORIBA ABX SAS) was acquired in France Jobin Yvon S.A. (now HORIBA FRANCE SAS) was acquired in France MCT (Mechatronics) business of Carl Schenck AG was acquired in Germany HORIBA style global management Automotive Test Systems MIRA, Ltd. (now HORIBA MIRA Limited) was acquired in the U.K. Overseas sales ratio Spreading the culture of Kyoto around the world Number of group companies HORIBA got its start in Kyoto with a venture spirit. We have achieved business growth based on our corporate culture of success and we have grown to become one of Kyoto’s most successful companies. Since...

Editorial policy HORIBA believes in achieving business growth by providing industrial and institutional equipments in the private and public sectors with “Measurement Technologies” as the essence of HORIBA’s Corporate Social Responsibility. In this integrated “HORIBA Report 2017” we have presented related activities (see the ESG mark) on each business segment page, to help you better understand how HORIBA’s investments in “Invisible Assets” are contributing in actual business growth. Through editing this report, we have also recognized that HORIBA’s every activity has been inseparably tied to...

Notation of HORIBA and HORIBA, Ltd. In this HORIBA Report, the HORIBA Group of companies is described as “HORIBA” and the parent company as “HORIBA, Ltd.” Notation of owners (shareholders): HORIBA fully recognizes the importance of its shareholders and frequently calls them owners. Disclaimer Regarding Future Plans and Forecasts This HORIBA Report contains certain statements describing future plans, strategies, and performance forecasts of HORIBA, Ltd. and its affiliated companies. These statements reflect forecasts based on management’s assumptions and beliefs based on the available information...

HORIBA will sprint to its next stage, keeping up with the changes in the world with the spirit of “Joy and Fun” Chairman & Group CEO Photo taken at the HORIBA BIWAKO E-HARBOR Biwako Factory

Since its founding 73 years ago, HORIBA has been working at solving social issues through its core business, “Measurement Technologies.” We now have a new management team focused on responding to the requests from our customers and society and seeking to raise our corporate value while navigating the rapid changes in every area of technology. Operating under a new management team starting in 2018 From January 1,2018, a new management team took charge, with myself as Chairman & Group CEO, Juichi Saito as Executive Vice Chairman & Group COO, and Masayuki Adachi as President & COO. Under the new...