Achieving One Company Management and Becoming a First-class, Global Company
HORIBA has established the management principle of “the HORIBA Group is One Company,” and introduced a variety of reforms, such as commencing management on a global business basis and eliminating between HORIBA group companies. However, to enhance our corporate value and become the leader in the analytical and measurement equipment market, we must execute our “One Company” Management principle, increase speed and efficiency, and make the leap to become a first-class, global company. Our goal is to sustain well-balanced growth among our four business segments, and in the fiscal year ending December 31, 2010, achieve ¥150 billion in net sales, an operating income ratio greater than 10%, and a ROE of over 11%.

Mid-Long Term Management Plan: Priority Measures

1. Building a Platform for ¥200 Billion in Sales
2. Building a Well-balanced Business Portfolio
3. Increasing the “Invisible Values”

As a corporation grows, its operating systems and structures must grow with it to maintain control of the organization. HORIBA is taking action now to establish a foundation that will support sustainable growth as we continue to develop and seek to achieve the next target of ¥200 billion in sales.

• Pursuit of global business strategies
The introduction of “One Company” Management has led to the breakdown of barriers between countries, regions and companies, and the reform of the business structure to one in which business strategies and plans are formulated on a business segment basis. This allows for quick and varied responses to market trends in each business field, as well as the pursuit of globally unified business management.

• Effective management on a regional basis
HORIBA is introducing shared services on a regional basis for Europe, the Americas and Asia, consolidating certain operations common to numerous group companies, such as accounting and finance, legal affairs, intellectual property management, human resources and IT. This structure will allow us to bring together a small number of personnel with first-class skills, which will improve the quality of our operations, as well as help raise productivity while lowering costs throughout all HORIBA group companies.

• Introduction of a new Enterprise Resource Planning (ERP) System
The Enterprise Resource Planning (ERP) system has been developed since 2005, which is being introduced in stages at the HORIBA group companies in 2007. The implementation of this system will require a substantial investment, but by utilizing the system's high-quality information to stimulate growth and become more efficient, we anticipate a rapid return on this investment and also additional benefits from the system which will contribute to higher earnings.

The Enterprise Resource Planning (ERP) system has been developed since 2005, which is being introduced in stages at the HORIBA group companies in 2007. The implementation of this system will require a substantial investment, but by utilizing the system's high-quality information to stimulate growth and become more efficient, we anticipate a rapid return on this investment and also additional benefits from the system which will contribute to higher earnings.

Under HORIBA’s Mid-Long Term Management Plan, we aim to make effective use of the“invisible values” that do not appear on the balance sheet. By enhancing their value, we intend to use these values as the basis for achieving dramatic improvements in profitability and return on investment. To this end, we are promoting the following measures:

• Use our corporate culture as a guide for all corporate activities
HORIBA believes that by putting this corporate culture into practice in our business activities, we can build a win-win relationship with all our stakeholders that spurs further growth and development for all parties. As a full-line manufacturer of analytical equipment, we will continue our contribution to creating sustainable societies and uncovering the root causes of a range of environmental and social problems by fulfilling our mission of enabling any type of substance to be analyzed and measured.

The HORIBA Motto: “Joy and Fun”
Our motto expresses our recognition of the importance of approaching work, the most time-consuming element of our productive lives, with a spirit of pride and a willingness to tackle new challenges. Working with a spirit of excitement, our employees will achieve greater self-satisfaction and fill their lives with “Joy and Fun.” “Joy and Fun” also represents our wish that all employees lead happy and fulfilling lives by performing work that is rewarding. We want our people to put “Joy” into their work through their own efforts at making the most of the time they spend at work.

“Open & Fair” and a “Venture Spirit”
Our policy is to openly provide employees with challenges and evaluate their performances with fairness. The goal is to establish a transparent corporate culture that encourages creative work and prevents improper behavior. To drive us forward, we retain the same “Venture Spirit” that founded our establishment. Through this spirit, we will continue to create innovative technologies that respond to emerging market needs.

We want all employees to take our corporate philosophy to heart. The resulting professional growth of each and every employee will contribute to HORIBA’s corporate value.

• Increase in the HORIBA brand value
One of the priorities of HORIBA's Mid-Long Term Management Plan is increasing the HORIBA brand value. Striving to meet quantitative targets for net sales and earnings is of course also a focus, but at the same time, we are careful to cultivate the “invisible values”—such as our corporate culture, people and technical capabilities—that are the source of future earnings and that will ensure HORIBA's durability as an enterprise. The HORIBA brand embodies all these “invisible values,” and we are implementing measures to increase our value.

“Omoi”: five pillars to phrase the HORIBA way
“Omoi” means an emotional feeling, passion, thoughts, enthusiasm, desire, aspiration, ambition, commitment, mission, and objective. We encourage our employees to have the following “Omoi,” which is the essence of acting on “Joy and Fun” through their work.

The HORIBA Brand Book
The fiscal year ended March 20, 2006 was a landmark year in which HORIBA celebrated its 60th anniversary, as well as achieved net sales of ¥100 billion. In the past few years, the number of our employees all over the world has increased dramatically as a result of acquisitions alliances and the establishment of new operating bases. With the company growing in size and conducting its operations on a global scale, it will be necessary to invest even greater effort to preserve and nurture the HORIBA corporate culture. This was what spurred us to publish the HORIBA Brand Book as the “bible” for the HORIBA group companies, enabling our employees to reconfirm their understanding of what the HORIBA brand is, and offering a basis for sharing and passing on that understanding. The HORIBA Brand Book was published on January 26, 2007 and distributed to about 4,700 employees around the world.

• Foster the development of people with a global perspective
HORIBA's Human Resources Development
We believe that new concepts and innovations start with people. We also believe that to consistently generate corporate value and grow it is necessary for every employee to embrace and practice the HORIBA corporate culture, as expressed in the mottos “Joy and Fun,” “Open & Fair” and “a Venture Spirit.”
A workplace could be likened to a theatrical stage. A company must provide the actors—its employees—with the opportunity to perform their role in their own way. The stage directors—management—must cast and direct these actors to perform a scene (corporate strategy) that expresses the essence of the company’s culture. In this way, the company can put on a well-orchestrated and lively performance. And as a result, the audience—customers—are satisfied, and the theater owners—shareholders—get a good return on their investment. Within this scenario, the company’s ability to produce good actors can make or break its performance. At HORIBA, this perception of its employees as being actors on a stage is an intrinsic part of the management approach.

HORIBA Training center –“Fun House”
The “Fun House” is a name for the HORIBA training center. Located an hour and a half by car from the head office deep in the forest in the mountains of Kutsuki, Shiga Prefecture, the center gives our people the chance to get away from the stresses of the work routine and relax as they take part in training.

Foster the development of people with a global perspective
To become a first-class, global company, it is essential to have the people who can make globalization a reality. HORIBA’s efforts to develop human resources have focused up to now on training and personnel exchanges among group companies. From now on, we plan to accelerate employee development by providing new opportunities for global career advancement.

Share of overseas employees(HORIBA Group)

No. of employees with overseas work experience(HORIBA, Ltd.)

Overseas Training Program
The HORIBA Overseas Training Program gives employees the opportunity to apply for one year of training at a group company overseas. All employees are eligible because there are no restrictions related to the number of years of employment or foreign language ability. Most applicants for the program have been with the company for three to five years. The program has recently been expanded to about 10 trainees annually. As a result, the number of employees with overseas experience is increasing every year. This network has become vital to the realization of “One Company” management.

HORIBA Is Among the Best Companies to Work for in Japan HORIBA was placed among the top 20 companies to work for in a survey conducted by the Great Place to Work® Institute in Japan, and published in the February 19, 2007 edition of Nikkei Business magazine. The definition of a good company to work for according to the Great Place to Work® Institute comprises five elements: trust, respect, fairness, pride and a sense of community. This particular ranking is distinguished by the fact that employee responses account for two thirds of the points allocated in the assessment process. Worldwide, the trend now is toward employee-centric management, on the belief that creating a rewarding work environment leads ultimately to a more competitive company. The Great Place to Work® Institute's ranking is attracting attention as a measure of achievement in this regard.

• Upgrade capabilities involving technologies
“A Step Ahead in Hi-Tech: HORIBA”
In keeping with this slogan, we consistently pursue the development of original core technologies to support analysis and measurement. At the same time, we strive to provide total solutions through the creation of innovative measurement technologies, to achieve revolutionary improvements in function, size, and production cost, and to develop new products to help reduce the burden on the environment.

Developing Basic Technologies and Products
Infra-red measurement technology
Technology for real-time analysis of elements in gases

Particle-size distribution analysis technology
Particle-size and quantity distribution analysis technology

Gas flow control technology
Technology to measure and instantly control the flow of gases

Research and Development Activities
HORIBA conducts R&D activities based on the product development flowchart opposite. The most significant feature of our R&D process is the system of multiple design reviews, which allows us to generate inventions and file patent applications in a comprehensive manner. HORIBA’s policy regarding intellectual property is to file a wide range of high-quality patent applications to ensure the technological added value that secures market superiority. At the same time we actively utilize our own intellectual property rights, we respect those of other companies.

Introduction to (HORIBA’s Technical Reports)
Readout is a collection of technical reports published to introduce the products and technologies created and developed by the HORIBA group companies. The title “Read Out” incorporates our hopes as a manufacturer of analytical and measurement equipment that the products and technologies created and developed by HORIBA will become widely known through this publication. The content of Readout is also available online, where entire texts can be searched and back issues and articles are available by product type or measurement application. In this way Readout helps build a closer relationship between the HORIBA group companies and its clients.

• HORIBA’s Approach to Corporate Social Responsibility (CSR)
HORIBA’s CSR Policy: Promote CSR in the course of day-to-day operationssss
HORIBA conducts its businesses with an emphasis on the key issues of global environment, human health, public safety, and energy, contributing to the creation of a comfortable and pleasant society.

HORIBA products play a behind-the-scenes part in many aspects of our lives, helping to conserve the global environment and ensure our health and safety. Our products are used for a wide range of purposes, including measuring and analyzing hazardous substances in gas emissions and the atmosphere, analyzing the quality of factory wastewater, detecting heavy metals or other harmful substances, making medical diagnoses through blood analysis, and conducting quality control for foods and pharmaceuticals. Our four business segments (automotive, analytical (environment/science), medical, semiconductor) are, therefore, intimately linked with the key issues of the global environment, human health, public safety, and energy—areas that are indispensable to providing all forms of life on earth with a comfortable and rich existence. We will maintain the focus on our core business, continually seek genuine technological innovation, and work to provide high-value-added, high-quality products and services that will lead to the creation of a comfortable and pleasant society.

  Social and Environmental Report