We are proud for the result that we could hit all new records in sales, operating income, ordinary income, and net income attributable to HORIBA Ltd.’s shareholders in 2023, which was the final fiscal year of our previous Mid-Long Term Management Plan, MLMAP2023. In December 2023, our share price exceeded 10,000 yen, and in January of the following year we broke through to a market capitalization of 500 billion yen. This is the result of finding “HONMAMON” solutions that meet our customer needs, something that only HORIBA can make possible. And I want to thank our owners (shareholders) for their understanding and support.
During the pandemic, not only demand fell due to a freeze on customer investment, but the movement towards decarbonization also accelerated gathered speed. Although we were
impacted by large changes in the business environment, we emphasized making various decisions at the front line, even as we faced restrictions on movement. Against this backdrop, we quickly seized on trends related to hydrogen energy, which was booming in Europe, and expanded the capability of our German Group company HORIBA FuelCon in 2022. The business is still at the developing stage, but I feel it is a very important and forward-looking investment.
Even amidst worldwide difficulties in procurement, we were able to achieve continue enhancing production thanks to the contributions of our global production and procurement team and their excellent network. This made it clear that competitiveness rests on supply capabilities. Our investment in a new manufacturing factory in Fukuchiyama City, Kyoto Prefecture Japan, which is planned to open in 2026, is the largest factory investment in HORIBA’s history. The plant will enable us to establish a long-term, stable supply capability.
By combining HORIBA’s technical ability to create new products with strong supply capabilities, we will demonstrate an overwhelming competitive advantage.
In February 2024, we formulated a new Mid-Long Term Management Plan, MLMAP2028 with 2028 as the target year. It contains is an ambitious plan to achieve 450 billion yen in sales, 80 billion yen in operating income, and 12% ROE or more. While the COVID-19 pandemic may be subsiding, geopolitical risks are at an all-time high, and society is turning towards sustainability. Even under such circumstances, we see the business environment as an opportunity, and HORIBARIANs are highly motivated.
We believe that now is the time to go for the win. To seize this opportunity, our entire Group will take on the challenge of reaching the next big stage of 500 billion yen in sales through MLMAP2028. One of our guiding principles for achieving MLMAP2028 is a business strategy that aims to solve social issues in our three primary fields of Energy & Environment, Bio & Healthcare and Materials & Semiconductor.
In 2004, we declared that the “HORIBA Group is One Company.” and sought to demonstrate our comprehensive capabilities by uniting our global businesses. We also announced our “segment operation” at the same time, and proposed various solutions based on our technologies for target industries. It was very well suited to the changes in society and industry at the time and allowed HORIBA to grow significantly through our five businesses. During the period of MLMAP2023, we consciously sought “cross-segment operation business” that transcended the boundaries between business segments and created synergies that spanned business sectors. Going forward we plan to accelerate these efforts.
The businesses and products that HORIBA has developed thus far have been at the cutting-edge of research in many areas and have helped to spark innovations in various fields. Meanwhile, our mass flow controllers, which boast a significant share of the semiconductor market and were a key player in our achieving MLMAP2023, have contributed to semiconductor manufacturing processes, and created large volumes of business. In addition to helping create new high-end technologies, HORIBA's new challenge is to contribute to improving people’s lives. I am convinced that the steady investments we have made up until now will bear fruit, and that HORIBA holds great potential to create new businesses one after another.
And in MLMAP2028, a major premise for achieving our business goals is the creation of a stage on which HORIBARIANs―the diverse human assets* who implement our strategies―can demonstrate their originality, strengths, and abilities more than ever on a global scale. We will create a new stage for the activities of HORIBARIANs around the world by putting together their wisdom, pursuing “HONMAMON” at the front line, and sharing our thoughts.
Moreover, we will device sustainability strategies and pursue unique activities that create social impact. Since HORIBA was founded, we have made numerous contributions to sustainability through our products and services. We feel that it is important to declare our commitment anew and share its significance in MLMAP2028. We aim to make an impact on society through various businesses and activities, such as providing services that help customers use energy more efficiently by utilizing the solutions that HORIBA offers, while at the same time growing HORIBA.
*human assets: HORIBA considers employees to be valuable assets and refers to them as “human assets.”
In 2023, HORIBA celebrated its 70th anniversary. On January 26, the anniversary of our establishment, HORIBA layed down “Our Future” with a view including our Vision, Mission, and Values towards our 100th Anniversary, 30 years from now. In these uncertain times, it is impossible to foresee the future, let alone 30 years from now. The key is to have the desire to create our own future.
We are proud of the fact that members from our overseas Group companies also collaborated in the project with many discussion for formulating “Our Future”, and that it is the strength of HORIBARIANs which has allowed us to reach this point. I emphasized for passionate HORIBARIANs and the next generation of leaders the importance of the connections with the past.
My consideration is not to replace the history and assets of our past, but to connect them to new ways of thinking and the demands of the times.
Needless to say, the fundamental idea behind “Our Future” “Joy and Fun”. And our new vision of “Joy and Fun for All” makes its connection to society even clearer.
Its assessment criterion is “HONMAMON”. It is vital to determine whether, not just products, but technologies fit the concept of “HONMAMON”. And I hope that HORIBARIANs will hone their eye for judgment.
As long as HORIBA is HORIBA, our culture of Joy and Fun and pursuing “HONMAMON” will remain unchanged, and the HORIBA spirit will endure. As we passed the milestone of our 70th anniversary, we took another new step forward. The goals we have set for ourselves are extremely high. However, we will reach these goals by following the MLMAP2028 slogan to “MAXIMIZE VALUE”, and fully realizing all the value of the HORIBA Group.
When we get to the final fiscal year of MLMAP2028, I cannot wait to find out. I hope that all our stakeholders will eagerly anticipate it as well.
We look forward to your continuous understanding and support in 2024.
April 2024
Atsushi Horiba
Chairman & Group CEO