Azbil Corporation · TSE:6845
Azbil — Q3 FY2021 Earnings Presentation
40 slides from Azbil's earnings presentation, Feb 3, 2022
Slide 1: Presentation Materials for the Third Quarter of Fiscal Year 2021
Presentation Materials for the Third Quarter of Fiscal Year 2021 (Ending March 31, 2022) (Based on Japanese GAAP) February 3, 2022 Azbil Corporation RIC: 6845.T, Sedol: 6985543 © Azbil Corporation. All rights reserved.
Slide 2: COVID-19 condolences and sympathies
We would like to express our deepest condolences to those who have lost loved ones as a result of the novel coronavirus disease (COVID-19). We would also like to extend our sympathies to all those who have suffered from this disease and to those who have been experiencing hardships due to the pandem
Slide 3: Contents
Contents 1. Financial Results for the Third Quarter of FY2021 4 2. Financial Plan for FY2021 14 →No revision from the most recent announcement 3. Returning Profits to Shareholders 19 →No revision from the most recent announcement 4. Progress in Implementing the Medium-term Plan 23 Appendix 31 Notes
Slide 4: 1. Financial Results for the Third Quarter of FY2021
1. Financial Results for the Third Quarter of FY2021 © Azbil Corporation. All rights reserved. 4
Slide 5: Consolidated Financial Results
1. Financial Results for the Third Quarter of FY2021 Consolidated Financial Results While there were some impacts from the COVID-19 pandemic and from parts shortages, orders received, net sales and profits rose compared with the same period last year. Overall orders received grew, reversing the
Slide 6: Segment Information: BA Business
1. Financial Results for the Third Quarter of FY2021 Segment Information: BA Business In the domestic market, demand has continued to grow for urban redevelopment projects and for heating, ventilation, and air conditioning (HVAC) control equipment / systems for factories, and there is growing intere
Slide 7: Segment Information: AA Business
1. Financial Results for the Third Quarter of FY2021 Segment Information: AA Business As regards market trends in Japan and abroad, expanding investment in 5G has led to sustained high demand in the market for semiconductor manufacturing equipment. It is still unclear when the COVID-19 pandemic will
Slide 8: Segment Information: LA Business
1. Financial Results for the Third Quarter of FY2021 Segment Information: LA Business The Lifeline field (gas/water meters, etc.) depends on cyclical demand for meter replacement as required by law and thus demands can be expected to remain stable. However, some changes have been observed, such as L
Slide 9: Reference: Orders Received by Segment
1. Financial Results for the Third Quarter of FY2021 Reference: Orders Received by Segment ■ Comparison to past results (Q1-3) ■ Quarterly (3 months) (Billions of yen) (Billions of yen) FY2020 FY2021 250.0 100.0 200.0 75.0 150.0 50.0 100.0 25.0 50.0 0.0 0.0 FY2018 FY2019 FY2020 FY2021 FY2020 FY2021
Slide 10: Reference: Sales by Segment
1. Financial Results for the Third Quarter of FY2021 Reference: Sales by Segment ■ Comparison to past results (Q1-3) ■ Quarterly (3 months) (Billions of yen) (Billions of yen) FY2020 FY2021 250.0 100.0 200.0 75.0 150.0 50.0 100.0 25.0 50.0 0.0 0.0 FY2018 FY2019 FY2020 FY2021 FY2020 FY2021 Q1-3 Q1-3
Slide 11: Reference: Segment Profit (Operating Income)
1. Financial Results for the Third Quarter of FY2021 Reference: Segment Profit (Operating Income) ■ Comparison to past results (Q1-3) ■ Quarterly (3 months) (Billions of yen) (%) (Billions of yen) (%) 12.5 FY2020 FY2021 25.0 17.5 17.5 15.0 15.0 10.0 20.0 12.5 12.5 7.5 15.0 10.0 10.0 7.5 7.5 5.0 10.0
Slide 12: Overseas Sales by Region
1. Financial Results for the Third Quarter of FY2021 Overseas Sales by Region Overseas sales rose by 14.5% on the same period last year. (Billions of yen) (%) 50.0 25.0 In Asia, the recovery in the manufacturing equipment market continued, but sales were on a par with the same period last year becau
Slide 13: Consolidated Financial Position
1. Financial Results for the Third Quarter of FY2021 Consolidated Financial Position Assets Total assets decreased by 15.6 billion yen from the end of FY2020 owing mainly to decreases in cash and deposits and trade receivables. Liabilities Total liabilities decreased by 10.6 billion yen from the
Slide 14: 2. Financial Plan for FY2021
2. Financial Plan for FY2021 →No revision from the most recent announcement © Azbil Corporation. All rights reserved. 14
Slide 15: Consolidated Financial Plan
2. Financial Plan for FY2021 Consolidated Financial Plan No changes to the revised consolidated financial plan that was announced on November 2, 2021 Against the backdrop of a growing order backlog and a robust business environment, particularly in the manufacturing equipment market, we aim to achie
Slide 16: Financial Plan by Segment (1)
2. Financial Plan for FY2021 Financial Plan by Segment (1) (Billions of yen) FY2020 FY2021 FY2021 Full year H1 H2 Full year Full year Difference Difference (results) (results) (revised plan) (revised plan) (initial plan) (Nov. 2, 2021) (Nov. 2, 2021) (May 14, 2021) (A) (B) (B) - (A) % Change (C) (B)
Slide 17: Financial Plan by Segment (2)
2. Financial Plan for FY2021 Financial Plan by Segment (2) We expect to achieve our full-year financial plan, by achieving growth mainly in our BA refurbishment business for existing buildings. Demand for HVAC control equipment/systems for large-scale buildings is robust, and considering the build
Slide 18: Reference: Sales by Segment and Segment Profit (Operating Income)
2. Financial Plan for FY2021 Reference: Sales by Segment and Segment Profit (Operating Income) ■ Sales by segment ■ Segment profit (operating income) (Billions of yen) (Billions of yen) (%) 300.0 30.0 15.0 250.0 25.0 12.5 200.0 20.0 10.0 150.0 15.0 7.5 100.0 10.0 5.0 50.0 5.0 2.5 0.0 0.0 0.0 FY2018
Slide 19: 3. Returning Profits to Shareholders
3. Returning Profits to Shareholders →No revision from the most recent announcement © Azbil Corporation. All rights reserved. 19
Slide 20: Plan to Further Improve Shareholder Returns in Accordance with the Basic Policy
3. Returning Profits to Shareholders Plan to Further Improve Shareholder Returns in Accordance with the Basic Policy In line with our basic policy—promoting shareholder returns, investment Basic policy in growth and healthy financial foundation—we have repurchased the Company’s own stock and will in
Slide 21: FY2021 Annual Dividend Plan
3. Returning Profits to Shareholders FY2021 Annual Dividend Plan FY2021 In our business plan for FY2021, the first year of the medium-term plan, we are aiming to increase net sales and annual set a new record for profits. We will therefore increase the annual dividend by 5 yen to 60 yen per share. d
Slide 22: Trend of Shareholder Returns
3. Returning Profits to Shareholders Trend of Shareholder Returns The dividend per share has been retroactively revised, taking into account the effects of the 2-for-1 common stock split effective in 2018. (Yen) Dividend per share Dividend on equity (DOE) (%) 60.0 5.0 4.2 55.0 (plan) 4.5 4.0 3.9 50.
Slide 23: 4. Progress in Implementing the Medium-term Plan
4. Progress in Implementing the Medium-term Plan © Azbil Corporation. All rights reserved. 23
Slide 24: Long-term Targets and Medium-term Plan
4. Progress in Implementing the Medium-term Plan Long-term Targets and Medium-term Plan The azbil Group previously defined three growth fields—new automation, environment and Long-term energy, and life-cycle solution—which share a common foundation of automation technology. Focusing on the growth
Slide 25: Three Growth Fields that Share a Common Foundation of Automation Technology
4. Progress in Implementing the Medium-term Plan Three Growth Fields that Share a Common Foundation of Automation Technology The three growth fields—new automation, environment and energy, and life-cycle solution—sharing a common foundation of automation technology, will enable entry into various ma
Slide 26: Segment Growth (BA, AA, LA) Leveraging the Changing Business Environment
4. Progress in Implementing the Medium-term Plan Please see page 28 for progress in the current period. Segment Growth (BA, AA, LA) Leveraging the Changing Business Environment We plan to achieve growth in each of the three businesses by launching new products and services in Japan and overseas, foc
Slide 27: Creating Enduring Solutions in the Three Growth Fields
4. Progress in Implementing the Medium-term Plan Creating Enduring Solutions in the Three Growth Fields By combining the strengths of our three growth fields, we have developed solutions unique to the azbil Group that have already proven themselves on site to our customers. We will continue to creat
Slide 28: Progress in the Current Period
4. Progress in Implementing the Medium-term Plan Progress in the Current Period (with respective dates of announcement) Development of new products and services As well as products that employ MEMS devices, unique to the azbil Group, and new products that meet the needs of overseas markets, we will
Slide 29: Sustained Growth and Contribution "In Series" to the Achievement of a Sustainable Society
4. Progress in Implementing the Medium-term Plan Sustained Growth and Contribution “In Series” to the Achievement of a Sustainable Society The azbil Group is committed to continuously enhancing corporate value based on mutual trust with stakeholders, to realize “safety, comfort, and fulfillment” in
Slide 30: Essential Goals of azbil Group for SDGs
4. Progress in Implementing the Medium-term Plan Essential Goals of azbil Group for SDGs Regarding SDGs, we have set our four own essential goals (I to IV) as well as specific targets, and we are now working to steadily implement them. Furthermore, we are continuously reviewing and raising their lev
Slide 31: Appendix
Appendix © Azbil Corporation. All rights reserved. 31
Slide 32: Capital Expenditure, Depreciation and R&D Expenses
Capital Expenditure, Depreciation and R&D Expenses Full-year results/Q1-3 results for FY2021 Full-year plan for FY2021 ■ Capital expenditure, depreciation ■ R&D expenses, R&D expenses/Net sales ratio (Billions of yen) (Billions of yen) (%) 15.0 15.0 6.0 13.5 (plan) 12.1 (plan) 12.5 12.5 5.0 10.0 10.
Slide 33: Singapore Apex Corporate Sustainability Award 2021
Singapore Apex Corporate Sustainability Award 2021 Receipt of the Singapore Apex Corporate Sustainability Award 2021 (Sustainable Solutions, Non-SME category) Global Compact Network Singapore (GCNS) annually recognizes companies whose business operations or solutions have exemplified the Ten Pri
Slide 34: Contribution "In Series" to the Achievement of a Sustainable Society
Contribution “In Series” to the Achievement of a Sustainable Society Reduce about 170 times of the CO2 (environmental burden) from business activities of azbil Group at customers’ sites By providing our customers with automation equipment/systems, energy management and other solutions, as well as fo
Slide 35: Contribution to the Environment
Contribution to the Environment Regarding greenhouse gas emissions (scopes 1+2)*1 associated with our own business activities, we have already launched specific initiatives. Aiming to achieve zero emissions by 2050, we have developed our long-term vision for reducing greenhouse gas emissions, and we
Slide 36: Progress of Corporate Governance Reforms (1)
Progress of Corporate Governance Reforms (1) Number of directors Composition of independent outside directors (People) Total number of directors Independent outside directors 12 11 11 11 10 9 9 45.5% 2020 45.5% 2021 5 out of 11 5 out of 11 6 5 5 5 54.5% 54.5% 4 3 3 0 2017 2018 2019 2020 2021 (Year)
Slide 37: Progress of Corporate Governance Reforms (2)
Progress of Corporate Governance Reforms (2) Skill matrix Sustainability • Disclosed skill matrix (2021) • In the medium-term plan, we recognize that addressing ‒ The Board of Directors at the meeting held on May 14, 2021 defined the skills sustainability is not simply a response to risk, but also a
Slide 38: External Evaluation and Initiatives (as of January 2022)
External Evaluation and Initiatives (as of January 2022) ESG-related topics—Inclusion in ESG indexes, external evaluation and initiatives Four indexes adopted by the Government Pension Investment Fund (GPIF) of Japan FTSE Blossom Japan Index MSCI Japan ESG Select Leaders Index MSCI Japan Emp
Slide 39: Notes
Notes 1. Financial data and financial statements have been prepared based on Japanese GAAP and the amounts have been rounded down. 2. The following are the azbil Group’s segments (each identified by abbreviation) together with the various sub-segments and their principal business fields. BA: Buildin
Slide 40: IR Inquiries and Disclaimer
IR Inquiries and Disclaimer Inquiries regarding investor relations Azbil Corporation Investor Relations Phone: +81-3-6810-1031 Email: azbil-ir@azbil.com Disclaimer The projections are based on management’s assumptions, intent and expectations in light of the information currently available to it, an