HORIBA, Ltd. has formulated a new Mid-Long Term Management Plan,

MLMAP2020, for the five-year period from fiscal 2016 to fiscal 2020. The company has

determined to make a major advance in its growth and development, by utilizing its global

business infrastructure, and to become a true partner of its customers in analysis and

measurement.

? HORIBA will expand its technology in new business fields and enter new markets

to achieve its business growth targets.

? Corporate growth will be accelerated, based on balanced management, matrix

organization, and a diversity-promoting project.

? Capital efficiency will be enhanced to maximize corporate value.

Numerical targets (for fiscal 2020):

Net sales of 250 billion yen, operating income of 30 billion yen, and ROE2

of at least 10%

In keeping with the management principle of the “HORIBA Group is One Company.” and its

corporate motto, “Joy and Fun,” HORIBA has pursued integrated group management by

achieving well-balanced growth in five business segments (automotive, environmental,

medical-diagnostic, semiconductor, and scientific), promoting efficiency region by region, and

enhancing matrix management.

In fiscal 2015, which was the final year of the previous Mid-Long Term Management Plan, the

Company made large-scale capital investments including several acquisitions. These have

contributed to generate net sales of 170.8 billion yen, exceeding the Plan’s target of 150 billion

yen. Operating margin and ROE, however, fell short of the plan’s targets of 13% or more in

margin and 11% or more in ROE, respectively.

HORIBA now has formulated the new Mid-Long Term Management Plan, MLMAP2020, for the

period up to fiscal 2020. It is intended to promote business growth and expand business fields

with the aim to become a true partner to all the company’s customers in analysis and

measurement.

Three priority measures are featured in the plan.

? Priority Measure 1: Applying HORIBA Technology in new business fields and new

markets and becoming a true partner in analysis and measurement

By making use of established operational bases and investments for future growth made during

the previous Mid-Long Term Management Plan, the company intends on achieving strategic

growth of each business, in addition to further growth of the two highly profitable businesses,

namely the Automotive Test Systems business and the Semiconductor business.

In the Automotive Test Systems business, the HORIBA BIWAKO E-HARBOR, a new Biwako

factory, will boost production and improve profitability to expand business in the emission gas

measurement field, turning to advantage the expected tightening of gas emission regulations in

many countries. In addition, the company will grow the business of HORIBA MIRA Ltd. (U.K.)

which was acquired in July 2015. This is an engineering and testing firm oriented to development

of automobile technology. HORIBA will make use of HORIBA MIRA’s testing knowhow on

connection with autonomous driving technology and promote expansion in connection with

next-generation mobility.

In the Semiconductor business, the semiconductor manufacturing market is expected to expand

on the back of significant growth in use of semiconductors as the automotive, medical, and other

fields are becoming increasingly high-tech and connected online. HORIBA, with its stable supply

capacity of high-precision products, will aim for further growth in this field.

Moreover, by actively making new investments and pursuing M&A opportunities, HORIBA will enter

into other business fields and markets with great growth potential. They include aspects of fuel

cells and other alternative energy sources, the bio-life science field, and the water analytical and

measurement field. HORIBA plans to integrally utilize in-house technological resources and the

customer network of each other’s business in order to realize strategic growth. In addition to

working to achieve the plan’s targets for each business, the company will lay the foundation for the

future following the plan period.

? Priority Measure 2: Accelerating corporate growth by its Super Dream Team based on

balanced management, matrix organization, and HORIBA Stained Glass Project3

In keeping with the management principle of the “HORIBA Group is One Company,” HORIBA

has implemented well-balanced matrix management and has achieved a high order of integrated

group operation. In order to further advance this organization, the company will continue to

promote diversity, through the HORIBA Stained Glass Project, to realize the Super Dream Team

of its human resources with diversity and to accelerate renovation in existing business and

creation of new businesses.

? Priority Measure 3: Raising capital efficiency to maximize corporate value

Under the previous Mid-Long Term Management Plan, HORIBA built a foundation for future

growth by establishing many bases and acquiring businesses abroad. In order to make effective

use of those assets, each group company and each business segment will set its asset

efficiency targets and remain dedicated to efficient management under the new plan.

In 2016, the HORIBA Group also completed the global introduction of its Enterprise Resource

Planning System aimed at promoting common operational processes, and began using it at 85%

of Group companies, in order to speed up business judgment. In preparing the MLMAP2020, the

business segments, the functional divisions, such as for development and production, and the

indirect and administrative divisions, have all been involved. Under the leadership of the global

team, those divisions will support the business segments and help achieve the plan’s targets.