Slide 1: Presentation Materials for the First Half Ended September 30, 2019
Azbil Corporation RIC: 6845.T, Sedol: 6985543 Human-centered automation Presentation Materials For the First Half Ended September 30, 2019 (Based on Japanese GAAP) Contents 1. Financial Results for the First Half Ended September 30, 2019 2. Financial Plan for the Fiscal Year Ending March 31, 2020 3.
Slide 2: 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. B A ： Build
Slide 3: 1. Financial Results for the First Half Ended September 30, 2019
1. Financial Results for the First Half Ended September 30, 2019 3
Slide 4: Consolidated Financial Results
1. Financial Results for the First Half Ended September 30, 2019 Consolidated Financial Results Orders received were lower for the AA business owing to adverse market conditions, but the BA and LA businesses achieved increases, so overall orders received were on a par with the same period last year.
Slide 5: Segment Information - BA Business
1. Financial Results for the First Half Ended September 30, 2019 Segment Information - ■ BA Business Thanks to urban redevelopment plans for the Tokyo metropolitan area, the market environment continued to be robust. There was a focus on securing orders with a view to enhanced profitability. Additio
Slide 6: Segment Information - AA Business
1. Financial Results for the First Half Ended September 30, 2019 Segment Information - ■ AA Business Focusing on the three AA business sub-segments,* we have implemented measures to achieve business growth and strengthen profitability. Sales and segment profit were impacted by the downturn in market
Slide 7: Segment Information - LA Business
1. Financial Results for the First Half Ended September 30, 2019 Segment Information - ■ LA Business The Lifeline field (gas/water meters, etc.) is a relatively stable business environment since it is focused on meeting cyclical meter replacement demand, as required by law. In the two other fields –
Slide 8: Reference: Orders Received by Segment
1. Financial Results for the First Half Ended September 30, 2019 Reference: Orders Received by Segment (Billions of yen) 175.0 150.0 125.0 100.0 75.0 50.0 25.0 0.0 FY2016 FY2017 FY2018 FY2019 H1 H2 H1 H2 H1 H2 H1 ■BA 76.6 43.4 73.2 44.5 75.2 48.5 76.5 ■AA 46.3 47.0 52.2 49.5 50.3 48.0 45.0 ■LA 21.5
Slide 9: Reference: Sales by Segment
1. Financial Results for the First Half Ended September 30, 2019 Reference: Sales by Segment (Billions of yen) 175.0 150.0 125.0 100.0 75.0 50.0 25.0 0.0 FY2016 FY2017 FY2018 FY2019 H1 H2 H1 H2 H1 H2 H1 ■BA 49.4 66.9 * 50.8 69.3 49.5 69.9 52.1 ■AA 46.0 49.4 46.2 51.0 47.7 51.6 44.8 ■LA 22.6 21.4 21.
Slide 10: Reference: Segment Profit (Operating Income)
1. Financial Results for the First Half Ended September 30, 2019 Reference: Segment Profit (Operating Income) (Billions of yen) 20.0 17.5 15.0 12.5 10.0 7.5 5.0 2.5 0.0 FY2016 FY2017 FY2018 FY2019 H1 H2 H1 H2 H1 H2 H1 ■BA 1.6 9.8* 2.3 10.2 1.1 11.2 2.9 ■AA 2.5 4.6 4.5 5.4 5.8 6.3 4.9 ■LA 0.6 0.7 0.8
Slide 11: Overseas Sales by Region
1. Financial Results for the First Half Ended September 30, 2019 Overseas Sales by Region Compared to the same period last year (Billions of yen) (％) 25.0 25.0% Owing to the downturn in markets for manufacturing equipment, which has resulted mainly in lower revenues in the CP business, 20.0 20.0% ov
Slide 12: Consolidated Financial Position
1. Financial Results for the First Half Ended September 30, 2019 Consolidated Financial Position Seasonal factors affecting business typically lead to a decrease in the azbil Group's assets and liabilities at the end of the first half when compared to the end of the previous fiscal year. ■ Assets Ow
Slide 13: Consolidated Cash Flows
1. Financial Results for the First Half Ended September 30, 2019 Consolidated Cash Flows ■ Cash flows from operating activities increased compared to the same period last year owing to increased collection of notes and accounts receivable-trade, despite an increase in income taxes paid. Cash flows f
Slide 14: 2. Financial Plan for the Fiscal Year Ending March 31, 2020
2. Financial Plan for the Fiscal Year Ending March 31, 2020 14
Slide 15: Consolidated Financial Plan
2. Financial Plan for the Fiscal Year Ending March 31, 2020 Consolidated Financial Plan While the downturn in certain markets have some impact, thanks to a diverse business portfolio, we will achieve net sales of the same level as the previous fiscal year. As regards profits, building on the success
Slide 16: Plan by Segment (1)
2. Financial Plan for the Fiscal Year Ending March 31, 2020 Plan by Segment (1) (Billions of yen) FY2019 (revised plan) Initial plan Difference Difference FY2018 H1 H2 Full year (May 10, 2019) % Change % Change (results) (plan) (A) (B) (A) - (B) (C) (A) - (C) ■ B A Sales 52.1 72.8 125.0 125.0 - - 11
Slide 17: Plan by Segment (2)
2. Financial Plan for the Fiscal Year Ending March 31, 2020 Plan by Segment (2) BA We will make steady progress with the handling of orders, expecting to achieve record-breaking profits. Thanks to the robust business environment in Japan, orders received and the order backlog remain at high levels.
Slide 18: 3. Returning Profits to Shareholders
3. Returning Profits to Shareholders Based on the basic policy below, we aim for stable and improved returns to shareholders while making steady progress with investments to drive future growth and thus increase enterprise value. Ordinary dividends increased by 4 yen per year, for a total annual A
Slide 19: Dividends
3. Returning Profits to Shareholders Dividends FY2019 Dividend plan (No change from the initial plan as announced on May 10, 2019) As previously announced on May 10, 2019, it is planned to issue an annual dividend of 50 yen per share (both interim and year-end dividends to be 25 yen per share), repr
Slide 20: Cancellation of Treasury Shares and Repurchase of Own Shares
3. Returning Profits to Shareholders Cancellation of Treasury Shares and Repurchase of Own Shares Along with cancellation of treasury shares held on March 31, 2019, in order to improve capital efficiency and to further enhance shareholder return: Repurchase of the Company’s own shares of 9.9 billion
Slide 21: Reference: Trends of Shareholders' Returns
3. Returning Profits to Shareholders Reference: Trends of Shareholders’ Returns (Yen) Dividend per share (yen) Dividend on equity (DOE, %) (％) 60 5.0 55 4.5 50.0 50 4.0 46.0 45 3.5 41.0 40 38.5 3.0 35 33.5 2.5 31.5 31.5 31.5 30 2.0 25 1.5 20 1.0 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY201
Slide 22: 4. Final Year of the Medium-term Plan (FY2017-FY2019)
4. Final Year of the Medium-term Plan (FY2017-FY2019) - Progress of Measures and Initiatives Aimed at Future Growth - 22
Slide 23: Policies and Targets of the Medium-term Plan (FY2017-FY2019)
4. Final Year of the Medium-term Plan (FY2017-FY2019) Policies and Targets of the Medium-term Plan (FY2017-FY2019) By implementing business strategies based on the three fundamental policies as well as measures to strengthen profitability, we expect operating income to surpass 27.0 billion yen for F
Slide 24: Medium-term Plan Performance Goals: Progress by Segment
4. Final Year of the Medium-term Plan (FY2017-FY2019) Medium-term Plan Performance Goals: Progress by Segment We are upgrading business systems in each of the three segments – BA, AA and LA – and making progress with improving profitability. Progress is being made with developing new automation fiel
Slide 25: BA Business: Progress of Measures and Initiatives Aimed at Future Growth
4. Final Year of the Medium-term Plan (FY2017-FY2019) BA Business: Progress of Measures and Initiatives Aimed at Future Growth Strengthening our relationship with customers in Japan and abroad throughout building life cycles ■ Outlook for business environment and progress in implementing business me
Slide 26: AA Business: Progress of Measures and Initiatives Aimed at Future Growth
4. Final Year of the Medium-term Plan (FY2017-FY2019) AA Business: Progress of Measures and Initiatives Aimed at Future Growth Generating profits in mature fields and accelerating the shift to growth fields ■ Outlook for business environment and progress in implementing business measures While deman
Slide 27: LA Business: Progress of Measures and Initiatives Aimed at Future Growth
4. Final Year of the Medium-term Plan (FY2017-FY2019) LA Business: Progress of Measures and Initiatives Aimed at Future Growth From establishing the profit structure to expanding the business ■ Outlook for business environment and progress in implementing business measures In the fields that make up
Slide 28: Progress with Upgrading and Strengthening the Business Foundation (1)
4. Final Year of the Medium-term Plan (FY2017-FY2019) Progress with Upgrading and Strengthening the Business Foundation (1) Establishing an advanced global production system New Shonan Factory (mother factory) The production functions of the Shonan factory, the Isehara factory and the Fujisawa Tec
Slide 29: Progress with Upgrading and Strengthening the Business Foundation (2)
4. Final Year of the Medium-term Plan (FY2017-FY2019) Progress with Upgrading and Strengthening the Business Foundation (2) Enhancing technologies and product appeal to create/expand new automation fields Advanced the development of next-generation systems and services tailored to the IoT age, inclu
Slide 30: azbil Group CSR management – putting into practice our human-centered philosophy
4. Final Year of the Medium-term Plan (FY2017-FY2019) azbil Group CSR management – putting into practice our “human-centered” philosophy Based on our Group philosophy of “human-centered automation”, we have actively embraced a management approach, distinctively azbil, in which CSR plays a key role.
Slide 31: azbil Group CSR management – progress of corporate governance reforms
4. Final Year of the Medium-term Plan (FY2017-FY2019) azbil Group CSR management – progress of corporate governance reforms Appointed and increased independent outside directors (from 1 in 2007 to 2 in 2010, 3 in 2014, Strengthening of 4 in 2018, and 5 in 2019) supervisory/audit- Increased independe
Slide 32: Appendix
32 Appendix azbil
Slide 33: New Initiatives in the Energy Management Field
Appendix New Initiatives in the Energy Management Field The azbil Group and the TAKAOKA TOKO Group* have agreed on November 1, 2019 to proceed with discussions toward collaboration in solving social issues in the energy management field. Social issues New activities utilizing the strengths of • Coun
Slide 34: Upcoming Trade Shows
Appendix Upcoming Trade Shows New products and services can be seen at the following events. ■ IIFES (Innovative Industry Fair for E x E Solutions) Dates: Nov. 27 (Wed.) to 29 (Fri.), 2019 Hours: 10 am. to 5 pm. Venue: Tokyo Big Sight (West Halls 1-4, and Atrium) Azbil booth (West Hall 2, No.1-115)
Slide 35: Capital Expenditure, Depreciation and R&D Expenses
Appendix Capital Expenditure, Depreciation and R&D Expenses Full-year results/H1 results for FY2019 Full-year plan for FY2019 ■ Capital expenditure, depreciation ■ R&D expenses, R&D expenses/Net sales (Billions of yen) (Billions of yen) (%) 8.0 15.0 6.0% 12.6 7.0 (Plan) 12.5 5.0% 6.0 5.5 (Plan) 4.6
Slide 36: Sustainable Development Goals and the azbil Group
Appendix Sustainable Development Goals and the azbil Group The founder’s vision formed the basis for the azbil Group’s philosophy of “human-centered automation.” Through management based on this philosophy, we are simultaneously pursuing sustainable development goals. By making continued, steady pro
Slide 37: azbil Group Philosophy
azbil Group Philosophy To realize safety, comfort, and fulfillment in people’s lives and contribute to global environmental preservation through “human-centered automation” Investor Relations, Group Management Headquarters Email: azbil-ir@azbil.com URL: https://www.azbil.com/ir/ 37