Mid-Long Term Management Plan - MLMAP2028

Rapid Changes in the Global Environment

Society is experiencing rapid changes, leading to:

• A trend toward a sustainable society
• Increase in medical issues due to pandemics
• Technological innovation (AI, IoT)

These changes present opportunities to secure emerging business opportunities in rapidly changing times.

Our Future Vision

Vision: Joy and Fun for All

HORIBA focuses on three key fields to realize its future:

• Energy & Environment
• Bio & Healthcare
• Materials & Semiconductor

Mission: Shape our future with solutions based on HONMAMON and Diversity

Values:

• Spirit of Challenge
• Reliability and Trust
• Pursuit of Excellence

Corporate Motto: Joy and Fun

Positioning of MLMAP2028

MLMAP2028 (2024-2028) aims to "MAXIMIZE VALUE", building upon MLMAP2023 (2019-2023).

Previous focus areas included Automotive, Process & Environment, Medical, Semiconductor, and Scientific.

The current and future focus areas under HORIBARIANS are:

• Energy & Environment
• Bio & Healthcare
• Materials & Semiconductor

Key strategies for MLMAP2028 include:

• Business strategy to solve social issues in three focus fields (Field Operation)
• Group HR strategy to maximize HORIBARIANs' potential
• Sustainability strategy to create social impact

*HORIBARIAN: Naming of all employees in HORIBA Group. We call so regarding us as same family.

Objective of Field Operation

The objective is to serve customers by leveraging HORIBA's three fields and core technologies:

• 3 Fields by HORIBA: Energy & Environment, Bio & Healthcare, Materials & Semiconductor
• HORIBA Core Technologies: Gas & Fluid Analysis, Solid & Particle Analysis, Liquid & Bio Analysis, Data Science, AI, IoT
• Functions: Service, Production, Distribution

Through these, HORIBA aims to:

• Cultivate new business opportunities
• Create innovation by novel integration
• Foster core technology development
• Strengthen global management base

HORIBA's Growth Model

The growth model is driven by:

Customer needs ➡️ Core technology ➡️ Innovation

The three fields (Energy & Environment, Bio & Healthcare, Materials & Semiconductor) contribute to maximizing HORIBARIANs' potential and creating social impact, ultimately leading to the Vision: Joy and Fun for All.

This model focuses on creating innovation and a robust supply chain at a global level.

MLMAP2028 The Team

MLMAP Leaders

• Hiroshi Nakamura (Technology)
• Dan Horiba (MLMAP Leader)
• Maki Moriguchi (HR, Sustainability)

Field Officers

• George Gillespie (Energy & Environment)
• Masayuki Adachi (Bio & Healthcare)
• Hideyuki Koishi (Materials & Semiconductor)

MLMAP2028 Major Management Goals

Financial Goals

• Sales: 450 Billion JPY (2023 Result: 290.5 Billion JPY)
• Operating Income: 80 Billion JPY (2023 Result: 47.2 Billion JPY)
• Net Income: 55 Billion JPY (2023 Result: 40.3 Billion JPY)
• ROE: Greater than 12%
• Dividend Payment ratio: 30%
• Shareholder Returns: Timely and proper return to shareholders through special dividends and stock buybacks.

Non-Financial Goals

• Practicing values by all HORIBARIANs
• Creating values of HONMAMON
• Carbon neutrality in 2050
• 42% reduction of CO₂ emissions in 2033* (base year 2023, Scope 1, 2)
• Deeply foster core technologies - targeting 60 Billion JPY sales from new business in 2028

*Note: Revised base and target year of CO₂ emissions reduction. Please check the website for details.

HORIBARIANS: Group HR Strategy to Maximize Potential

Vision: Create a "Stage" together where every HORIBARIAN can maximize their potential through demonstrating their abilities with Joy and Fun.

Key Pillars:

1. Cultivate unique culture as our "Stage" to maximize our potential
   Share and practice of Vision / Mission / Values with all HORIBARIANs.
   

   Image depicts a presentation about the Earth, sustainability, and HORIBA's role.

2. Creating value of HONMAMON
   Pursuit of HONMAMON through practice of Values, Establishment of HONMAMON Award.
3. Learn and collaborate with diverse HORIBARIANs
   Network building with diversified HORIBARIANs, Promote a culture of "Mutual Learning & Collaboration".

Sustainability Strategy for Creating Social Impact

Vision: Contributing to the realization of a sustainable society through HORIBA's unique capabilities.

Key Areas:

• Realization of sustainable society by HORIBA products and solutions
  Solving social issues through business in 3 Fields.
• Sustainable operation
  Carbon Neutrality in 2050, 42% reduction of CO₂ emissions in 2033* (base year 2023, Scope 1, 2).
• "Measurement x Education" Inherit to next generation
  Social contribution in Science and Technology area, aiming for more than 100 activities in 2028 with over 4,500 participants (across more than 10 countries).

CO₂ Emissions Reduction:

Chart Description: A bar chart showing CO₂ emissions decreasing from 57,742 (2023) to 31,539 (2033), with a stated goal of "Reduction of 42% or more" towards a 1.5°C target.

Notes: Base year for emissions in 2023 was revised upward in July 2025; the interim target for 2033 remains unchanged. Revised base and target year of CO₂ emissions reduction. Please check website for details.

Field: Energy & Environment

Vision: A Trusted Partner supporting our Customers on their challenges to deliver a Sustainable Environment.

Sales/Operating Profit Projections: Sales from 130 Billion JPY (2024) to 158 Billion JPY (2028) with a CAGR of 5%. Operating Profit from 7.5 Billion JPY (2024) to 15.8 Billion JPY (2028), a 2.1 times increase.

Major business domain: Contributing to Carbon Neutrality by promoting optimal solutions for customer requirements in R&D and regulation processes, leveraging HORIBA's fostered technology and experience.

Business Strategy:

• Provide diversified products and solutions.
• Develop new businesses by integrating capabilities within the HORIBA Group.
• Offer total solutions with system integration and consulting.

Diagram Description: An energy conversion cycle for Carbon Neutral, illustrating the flow from Mobility, Green energy, Storage, and Renewable Energy through Electrolysis to Hydrogen utilization, Synthesis, Chemical products, Carbon circulation, and Carbon absorption/desorption/reduction.

Field: Energy & Environment (Continued)

Focus Areas:

1. Capturing business opportunities in the Hydrogen market
   Establishment of global engineering structure with presence in Germany, China, Japan, and the US.
2. Strengthening our system proposal capability in Carbon Recycling
3. Maximize contribution in Mobility industry
   Total solution proposals leveraging our consulting capability.

Diagram Description: Illustrates the Natural Gas field, CO₂ CCS, Gas modification, CO₂ separation, H₂, Mobility Power, Energy storage, Supply thermal energy, and Power generation, along with Ammonia production. It also shows components like Engineering, Product, Consulting, Operation, and Testing.

Field: Bio & Healthcare

Vision: Provide strong social value by transforming the "Healthcare Journey" with unique solutions.

Sales/Operating Profit Projections: Sales from 40 Billion JPY (2024) to 57 Billion JPY (2028) with a CAGR of 9%. Operating Profit from 1 Billion JPY (2024) to 5.7 Billion JPY (2028), a 5.7 times increase.

Major business domain: Transforming the Healthcare Journey with unique solutions based on HORIBA's IVD know-how, diversified core technologies, and global network. Key examples include solving clinical issues with POCT* solutions and optimizing Bio Pharma R&D and production processes.

*POCT: Point of Care Testing

Business Strategy:

• Providing unique solutions for emerging new niche markets.
• Localization in the IVD testing business.
• Implementing HORIBA's measurement technology and engineering capability in the Bio-pharma industry.

Diagram Description: The "Healthcare Journey" is depicted as a cyclical process encompassing Prevention (Vaccine Development), Well-Being (Food & Beverage Cosmetics), Monitoring (Unique Hematology POCT), Healthcare, Treatment (Pharma: Drugs development), Diagnostics (Hematology / Clinical Chemistry Testing), and Screening (Liquid Biopsies).

Field: Bio & Healthcare (Continued)

Focus Areas:

1. Developing new solutions by integrating HORIBA's capabilities in emerging niche markets along the Healthcare Journey.
2. Promoting new solutions to solve issues in IVD testing field by unique POCT.
3. Proposing process monitoring solutions for the Bio-pharma market from the expertise of our automotive business segment.

Diagram Descriptions:

• HORIBA's capabilities (Academia, Optics, Software, Fluidics, Reagent, Pharma, Hospital) contribute to various stages of the Healthcare Journey, including Screening & imaging, Capture & isolation, Database + analytics, Cancer cell analysis, Identification & Characterization, Treatment & monitoring, and Market Access.
• "Value creation for clinical sites" is achieved through POCT, enabling shorter turnaround times, strengthened primary care, and drug monitoring for chronic diseases.
• "Improving healthcare access" is facilitated through various hospital and mobile unit solutions.
• Bio-pharma process monitoring covers stages like Cultivation, Formulation, Filling, and Filtration.

Field: Materials & Semiconductor

Vision: Shape the market with innovative solutions in the advanced materials and semiconductor field toward achieving a sustainable society.

Sales/Operating Profit Projections: Sales from 151 Billion JPY (2024) to 235 Billion JPY (2028) with a CAGR of 12%. Operating Profit from 43.5 Billion JPY (2024) to 58.5 Billion JPY (2028), a 1.3 times increase.

Major business domain: Contributing to technology innovation through a "Woven Value Chain" that inter-connects Semiconductor production processes, advanced materials, and facilities. HORIBA provides cutting-edge solutions in advanced material areas and supports customer operations comprehensively.

Business strategy:

• Sustain / Increase market share by increasing production capacity.
• Strengthen process monitoring in the Semiconductor market.
• Apply advanced measurement technology in semiconductor materials.
• Allocate resources on material research, production, and recycling.

Diagram Description: The "Woven Value Chain" illustrates the Semiconductor Manufacturing Process (Wafer, Cleaning, Deposition, Lithography, Etching, CMP) alongside "Advanced R&D / Laboratory / Academia" and "Material Manufactures". The text emphasizes support for the Semiconductor industry in all directions, including facility emissions and wastewater monitoring.

Field: Materials & Semiconductor (Continued)

Focus Areas:

1. Contributing to cutting-edge processes in Semiconductor
   Providing solutions with high-value components and module products.
2. Developing all-round solutions using thin film measurement technology
   Focusing on semiconductor process monitoring and facility monitoring.
3. Contributing to process of material development and production
   Providing solutions by consolidating measurement technologies of the HORIBA Group.

Semiconductor process control domain covered by HORIBA:

• Liquid monitoring / control
• Liquid vaporization
• Pressure control
• Vacuum monitoring
• Chemical concentration
• Plasma monitoring
• Thermal monitoring

Diagram Descriptions: Illustrates Semiconductor Material, Polymer, and Carbon for R&D, Production, and Recycling. Also highlights key performance indicators like Yield improvement, Reduced energy consumption, and Improved efficiency.

New Business in MLMAP2028

Sales of New Business in 2028: 60 Billion JPY

Breakdown by Field:

• Energy & Environment: Business for new energy (i.e. Hydrogen) - 31 Billion JPY
• Bio & Healthcare: Business for Life Science - 14 Billion JPY
• Materials & Semiconductor: New business for Semiconductor industry - 15 Billion JPY

Chart Description: A bar chart projecting sales growth from 2024 to 2028, with "New business" contributing 60 Billion JPY in 2028.

Cultivating HONMAMON Technology Organically

HORIBA fosters HONMAMON technology by connecting technology and talents organically through:

1. Product development closely to the customer
   Customer demand x Core technology = Innovation
2. Business transformation from product sales to solution business
   Develop businesses across fields.
3. Pursuit of HONMAMON technology
   Pursuit of applications, Accelerating open innovation.

Sales Targets:

• Sales in new business: 60 Billion JPY (in 2028)
• Sales in Solution business (incl. Automation / Data management business): 25 Billion JPY (in 2028)
• Advanced R&D: More than 10% of total R&D expense (in 2028)

Image Descriptions: Visuals show advanced equipment, network infrastructure, and collaborative teams involved in R&D and business development.

Strengthening Business Foundation for Global Operation

HORIBA is strengthening its business foundation to support global operations across three key areas:

1. Service: Establish unique service models with high-quality services and analytical solutions.
   Key initiatives include continuous investment in HR and providing solutions for facility optimization.
2. Production: Stably provide high-quality products using a sustainable value chain.
   Focuses on optimization of global resources, passing on skills to the next generation, and pursuit of production automation.
3. Distribution: Expand solutions and build distribution channels that maximize customer value.
   Involves channel optimization based on field operation.

Global Presence Statistics:

• Approx. 650 Distributors
• Approx. 5,400 Oversea HORIBARIANs
• 18 Factories
• 45 Offices
• 3 Fields

Graphic Description: A world map visually represents HORIBA's global network, connecting distributors, factories, offices, and operational fields.

Cash Allocation During MLMAP2028

Projected Operating Cash Flow (2024-2028) before R&D investment: 400 Billion JPY (232.3 Billion JPY in MLMAP2023 results).

Allocation Breakdown:

• Growth Investment:
• R&D Investment: 130 Billion JPY (Approx. 7% vs Sales)
• Facility, Strategic Investment: 140 Billion JPY (59.1 Billion JPY)
• Return to Shareholder etc.:
• Dividend (Approx. 30%): 68 Billion JPY (33.3 Billion JPY)
• Internal fund + Timely and proper return to Shareholders etc.

Key Strategies: Growth strategy, Generation of Operating CF; Investment for future growth; Timely and properly return to shareholders.

Investment Details:

• Regular Investment: Approx. 60 Billion JPY
• Fukuchiyama Factory and Technology Center (Semiconductor): Approx. 20 Billion JPY
• Strategic Investment: Approx. 60 Billion JPY
• Total Investment: Approx. 140 Billion JPY

(B. JPY) denotes Billion Japanese Yen.

Realizing Growth Potential: 500 Billion JPY Sales

HORIBA aims to achieve 500 Billion JPY in sales, representing a 1.5 times increase compared to 2023.

Chart Description: A comprehensive bar chart displays historical and projected Sales, Operating Income, and Net Income Attributable to owners of parent from 2006 to 2028. It highlights the MLMAP2028 period (2024-2028) and shows a Compound Annual Growth Rate (CAGR) of 9.1% for 2023-2028. Exchange Rate information is provided: 1 USD = 140 JPY, 1 EUR = 155 JPY.

MLMAP2028 The Symbol

The symbol for MLMAP2028 is a butterfly, representing transformation and new life.

Symbol Description: A butterfly graphic symbolizes the plan's essence. The text explains: "A butterfly transforms from humble beginnings to a beautiful creature dancing on the wind and spreading new life to each flower it touches. Each tiny flap of its wings may result in massive impact elsewhere. HORIBA's cutting edge analytical and measurement solutions maximize the value to society, to enable a sustainable future for all living things."

Thank You

(Japanese text: Omoshiro-okashiku - Joy and Fun)

Multilingual expressions of gratitude: Terimakasih, Gracias, 谢谢, Danke, Σας ευχαριστώ πάρα πολύ, ขอบคุณครับ, Большое спасибо, ありがとうございました, Dziękuję, Cảm ơn, 감사합니다.

Disclaimer

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