Slide 1: Presentation Materials for the First Quarter of Fiscal Year 2024
Presentation Materials for the First Quarter of Fiscal Year 2024 (Ending March 31, 2025) (Based on Japanese GAAP) August 7, 2024 Azbil Corporation RIC: 6845.T, Sedol: 6985543 © Azbil Corporation. All rights reserved.
Slide 2: Highlights
Highlights 1. Consolidated Financial Results for the First Quarter of FY2024 Both orders received and net sales increased compared to the same period of FY2023 mainly due to increases in the BA business. Operating income also rose significantly due to this increased revenue and measures to strengt
Slide 3: Contents
Contents 1. Consolidated Financial Results for the First Quarter of FY2024 4 2. Consolidated Financial Plan for FY2024 12 3. Returning Profits to Shareholders 17 4. Progress in Implementing the Medium-term Plan 20 Appendix I Financial Data 22 Appendix II Three Growth Fields, Sustainability Managemen
Slide 4: 1. Consolidated Financial Results for the First Quarter of FY2024
1. Consolidated Financial Results for the First Quarter of FY2024 © Azbil Corporation. All rights reserved. 4
Slide 5: Consolidated Financial Results
1. Consolidated Financial Results for the First Quarter of FY2024 Consolidated Financial Results Both orders received and net sales increased compared to the same period of FY2023 mainly due to an increase in the BA business. Operating income also rose significantly due to this increased revenue and
Slide 6: Financial Results by Segment
1. Consolidated Financial Results for the First Quarter of FY2024 Financial Results by Segment ■ BA: Orders received increased mainly due to the renewal of large-scale multi-year service contracts. Progress was made with initiatives to level the workload, against the backdrop of an order backlog at
Slide 7: Segment Information: BA Business
1. Consolidated Financial Results for the First Quarter of FY2024 Segment Information: BA Business Our view of the business environment — In the domestic market, demand for new office buildings in urban redevelopment projects has leveled off but remains at a high level. Demand for the refurbishment
Slide 8: Segment Information: AA Business
1. Consolidated Financial Results for the First Quarter of FY2024 Segment Information: AA Business Our view of the business environment — In the process automation (PA) market, demand centering on domestic maintenance and refurbishment has remained firm. — In the factory automation (FA) market, desp
Slide 9: Segment Information: LA Business
1. Consolidated Financial Results for the First Quarter of FY2024 Segment Information: LA Business Our view of the business environment — The Lifeline field, which includes gas (city gas, LP gas) and water meters, depends on demand for meter replacement as required by law. Though demand can be expec
Slide 10: Overseas Sales by Region
1. Consolidated Financial Results for the First Quarter of FY2024 Overseas Sales by Region Overseas sales increased by 16.1% from the same period of FY2023 and accounted for 25.8% of net sales. The BA business increased significantly, mainly due to growth in Asia. Although sluggish conditions co
Slide 11: Consolidated Financial Position
1. Consolidated Financial Results for the First Quarter of FY2024 Consolidated Financial Position Assets : Trade receivables decreased because net sales concentrated in the fourth quarter and collections progressed in the first quarter. Liabilities : Current liabilities, including provision for
Slide 12: 2. Consolidated Financial Plan for FY2024
2. Consolidated Financial Plan for FY2024 * The transfer of Azbil Telstar, S.L.U. (announced on June 7, 2024) is currently awaiting approval. The exact transfer date has yet to be determined and the effect on the consolidated financial results is currently being determined. © Azbil Corporation. All
Slide 13: Consolidated Financial Plan
2. Consolidated Financial Plan for FY2024 Consolidated Financial Plan The BA and AA businesses are making steady progress and continue to aim to achieve the plan. In the LA business, we will continue to promote the business restructuring and our efforts to improve profitability. The BA business en
Slide 14: Financial Plan by Segment (1)
2. Consolidated Financial Plan for FY2024 Financial Plan by Segment (1) ■ BA: A good start has been made in the first quarter. We expect increased revenue against the backdrop of a robust business environment and our large order backlog. Despite facing soaring costs and increased expenses, by increa
Slide 15: Financial Plan by Segment (2)
2. Consolidated Financial Plan for FY2024 Financial Plan by Segment (2) A good start has been made in the first quarter. We expect increased revenue against the backdrop of a robust business BA environment and our large order backlog. Despite facing soaring costs and increased expenses, by increasin
Slide 16: Reference: Transfer of Equity Interests in Azbil Telstar
2. Consolidated Financial Plan for FY2024 Reference: Transfer of Equity Interests in Azbil Telstar 1. Reason for transfer In the Life Science Engineering field, we have striven to strengthen the business competitiveness of Azbil Telstar to further improve its profitability. However, with the ongoing
Slide 17: 3. Returning Profits to Shareholders
3. Returning Profits to Shareholders →No revision from the most recent announcement © Azbil Corporation. All rights reserved. 17
Slide 18: Basic Policy and FY2024 Shareholder Returns
3. Returning Profits to Shareholders Basic Policy and FY2024 Shareholder Returns We plan to increase the dividend for the tenth consecutive year, with an annual dividend of 88 yen*1 per share for FY2024, and DOE to reach 5% level. In accordance with our basic policy shown on the right, while we rema
Slide 19: Trend of Shareholder Returns
3. Returning Profits to Shareholders Trend of Shareholder Returns We plan to increase the annual dividend for FY2024 by 12 yen to 88 yen per share compared to FY2023, which is an increase for the tenth consecutive fiscal year. (%) (Yen) Dividend per share Dividend on equity (DOE) 100.0 6.0 5.0 (pl
Slide 20: 4. Progress in Implementing the Medium-term Plan
4. Progress in Implementing the Medium-term Plan © Azbil Corporation. All rights reserved. 20
Slide 21: 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 defines three growth fields—new automation, environment and energy, and life-cycle solutions—which share a common foundation of automation Long-term targets technology. Focusing on the growth of t
Slide 22: Appendix I: Financial Data
Appendix I Financial Data • Performance Trend by Segment ・・・23 • Capital Investment, Depreciation and R&D Expenses ・・・27 © Azbil Corporation. All rights reserved. 22
Slide 23: Performance Trend by Segment: Orders Received
Appendix I Performance Trend by Segment: Orders Received ■ Comparison to past results (Q1) ■ Quarterly (3 months) (Billions of yen) (Billions of yen) 100.0 100.0 75.0 75.0 50.0 50.0 25.0 25.0 0.0 0.0 FY2021 FY2022 FY2023 FY2024 FY2023 FY2024 Q1 Q1 Q1 Q1 Q1 Q2 Q3 Q4 Q1 ■BA 47.7 48.9 46.4 56.2 ■BA 46.
Slide 24: Performance Trend by Segment: Orders Backlog
Appendix I Performance Trend by Segment: Orders Backlog ■ Comparison to past results ■ Quarterly (Billions of yen) (Billions of yen) 200.0 200.0 150.0 150.0 100.0 100.0 50.0 50.0 0.0 0.0 FY2021 FY2022 FY2023 FY2024 FY2023 FY2024 Q1 Q1 Q1 Q1 Q1 Q2 Q3 Q4 Q1 ■BA 88.0 101.1 104.5 113.5 ■BA 104.5 110.7 1
Slide 25: Performance Trend by Segment: Sales
Appendix I Performance Trend by Segment: Sales ■ Comparison to past results (Q1) ■ Quarterly (3 months) (Billions of yen) (Billions of yen) 100.0 100.0 75.0 75.0 50.0 50.0 25.0 25.0 0.0 0.0 FY2021 FY2022 FY2023 FY2024 FY2023 FY2024 Q1 Q1 Q1 Q1 Q1 Q2 Q3 Q4 Q1 ■BA 21.6 23.5 24.9 28.8 ■BA 24.9 31.1 34.
Slide 26: Performance Trend by Segment: Segment Profit (Operating Income)
Appendix I Performance Trend by Segment: Segment Profit (Operating Income) ■ Comparison to past results (Q1) ■ Quarterly (3 months) (Billions of yen) (%) (Billions of yen) (%) 6.0 30.0 15.0 30.0 5.0 25.0 12.5 25.0 4.0 20.0 10.0 20.0 3.0 15.0 7.5 15.0 2.0 10.0 5.0 10.0 1.0 5.0 2.5 5.0 0.0 0.0 (1.0) (
Slide 27: Capital Investment, Depreciation and R&D Expenses
Appendix I Capital Investment, Depreciation and R&D Expenses ■ Capital investment, depreciation ■ R&D expenses Full-year results/ Q1 results for FY2024 Full-year plan for FY2024 (%) (Billions of yen) (Billions of yen) 15.0 15.0 6.0 12.5 12.5 5.0 10.0 10.0 4.0 7.5 7.5 3.0 5.0 5.0 2.0 2.8 2.5 2.1 2.5
Slide 28: Appendix II: Three Growth Fields, Sustainability Management and Shareholder Returns
Appendix II Three Growth Fields, Sustainability Management and Shareholder Returns • Three Growth Fields ・・・29 • Sustainability Management ・・・30 • Shareholder Returns ・・・33 © Azbil Corporation. All rights reserved. 28
Slide 29: Initiatives in Three Growth Fields and Application to Each Business Segment
Appendix II Initiatives in Three Growth Fields and Application to Each Business Segment Three Growth Fields New Automation Field Providing distinctive solutions through our business in the three growth fields in which the Expanding sales by providing solutions that meet new demands azbil Group posse
Slide 30: The azbil Group's Sustainability Management
Appendix II The azbil Group’s Sustainability Management Materiality is identified from the perspective of sustainability and contributing “in series” to a sustainable society. As regards the seven key categories related to business and corporate activities, specific azbil Group SDG targets have been
Slide 31: Decarbonization transition plan
Appendix II Decarbonization transition plan We are actively contributing to solutions for energy challenges faced by both our customers and society at large, and we have also developed a transition plan to support decarbonization efforts. In June 2023, we sent a commitment letter to the SBTi to set
Slide 32: Investing in Human Capital: Benefits and Financial Measures to Strengthen Employee Engagement
Appendix II Investing in Human Capital: Benefits and Financial Measures to Strengthen Employee Engagement Partial Revision to the Employee Stock Ownership Plan (J-ESOP) (page 18), further increasing employee incentives and enhancing engagement Employee Stock Ownership Plan (J-ESOP) (introduced in Ma
Slide 33: FY2024 Annual Dividend Plan
Appendix II FY2024 Annual Dividend Plan FY2024 It is planned to increase the dividend by 12 yen per share, to make an annual dividend of dividend 88 yen*1 per share, and DOE to reach 5% level. *1 Dividend not taking stock split into account Profitability has been strengthened by the measures imple
Slide 34: Overview of the Stock Split
Appendix II Overview of the Stock Split It is planned to implement a 4-for-1 common stock split. Stock split Investment unit cost to be in the 100-thousand-yen range* following the stock split * Estimated from closing price on May 10, 2024 (Friday). To increase share liquidity, prepare an environmen
Slide 35: Notes (1)
Notes (1) 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: Bui
Slide 36: Notes (2)
Notes (2) 4. Essential Goals of the azbil Group for SDGs *1 Science-based targets (SBT): Greenhouse gas emission reduction targets based on scientific evidence *2 The azbil Group’s own sustainable design principles: This design is aimed at creating and providing products that contribute to solving g
Slide 37: Notes (3)
Notes (3) 4. Essential Goals of the azbil Group for SDGs *8 Provide environments that support stress-free and diverse work styles to 6 million people: As of April 2022, environments that support stress-free and diverse work styles have been provided to 0.6 million people, aiming to increase tenfold
Slide 38: 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