HORIBA (6856) Corporate presentation summary

Strategic vision and business portfolio

• Focus on solving customer challenges through analytical, measurement, and control technologies, aiming for societal and environmental contributions and sustainable growth.

• Reorganized from five segments to three fields: Materials & Semiconductor, Energy & Environment, and Bio & Healthcare, to accelerate market orientation and value creation.

• Business portfolio management emphasizes growth potential and economic value creation, using proprietary metrics to guide resource allocation and investment.

• Continued investment in R&D and M&A to acquire core technologies and become a standard in new growth markets.

• Diverse solutions leverage core technologies across fields, continuously feeding insights back to sustain competitive advantage.

Financial targets and shareholder returns

• Revised 2028 financial targets: sales of ¥460B, operating profit of ¥80B, net profit of ¥90B, and ROE of 14%.

• Dividend payout ratio to increase from 30% until 2026 to 40% after 2027, with special dividends and share buybacks executed as appropriate.

• Cash allocation prioritizes growth investments, R&D, and shareholder returns, with ¥140B planned for both R&D and capital/strategic investments from 2024–2028.

• Strong financial position maintained to support strategic investments and withstand operational uncertainties.

Business field strategies and growth initiatives

• Materials & Semiconductor: Expand supply capacity, strengthen R&D, and broaden solutions for semiconductor production, targeting strong demand driven by AI and data centers.

• Mobility: Maintain high profitability by capturing demand for ICE and hybrid vehicle development, optimize production, and enhance operational efficiency.

• Energy (Hydrogen): Implement structural reforms, optimize costs, and maintain technology leadership while preparing for future market expansion.

• Bio & Healthcare: Strengthen regional strategies, expand OEM sales, and leverage regulatory expertise to support growth in life science and medical businesses.