HORIBA is a global group of companies that provides analytical and measurement equipment in fields that are indispensable to people's lives, including the environment, health, safety, and energy. We are expanding our business operations by making use of our advanced technological capabilities and global network. HORIBA products hold No. 1 or No. 2 share positions of global markets - for example, our automotive emission measurement systems command an 80% share of the global market - accounting for approximately 60% of total sales.

During the past ten years, HORIBA's "visible" earnings have improved substantially, with operating income growing at an annual rate of 12% . Moreover, in 2007, we achieved our operating income target for our Mid-Long Term Management Plan, which ends in the fiscal year ending December 31, 2010, a full three years ahead of schedule. Nevertheless, we will continue to invest for the long term in order to foster "invisible values (assets that do not appear in the financial statements)" such as human resources, technologies, and our brand as we aim for sustainable growth.

Net Sales & Operating Income Ratio
Note: For the fiscal year ended December 31, 2006, the accounting term for the Company was 9 months and 11 days as a result of a change in its fiscal year-end from March 20 to December 31