Slide 1: Presentation Materials for the Third Quarter of Fiscal Year 2022
Presentation Materials for the Third Quarter of Fiscal Year 2022 (Ending March 31, 2023) (Based on Japanese GAAP) February 7, 2023 Azbil Corporation RIC: 6845.T, Sedol: 6985543 © Azbil Corporation. All rights reserved.
Slide 2: Highlights
Highlights 1. Consolidated Financial Results for the Cumulative Third Quarter of FY2022 Overall orders received were up by 9.8 billion yen (+4.4%) compared with the same period last year, maintaining a high level, although there were differences between markets. Order backlog grew by 33.9 billion
Slide 3: Contents
Contents 1. Consolidated Financial Results for the Cumulative Third Quarter of FY2022 4 2. Consolidated Financial Plan for FY2022 15 →No revision from the most recent announcement on November 8, 2022 3. Returning Profits to Shareholders 19 →No revision from the initial announcement on May 13, 2022 A
Slide 4: 1. Consolidated Financial Results for the Cumulative Third Quarter of FY2022
1. Consolidated Financial Results for the Cumulative Third Quarter of FY2022 © Azbil Corporation. All rights reserved.
Slide 5: Consolidated Financial Results
1. Consolidated Financial Results for the Cumulative Third Quarter of FY2022 Consolidated Financial Results Orders received increased in Japan and overseas for the (Billions of yen) FY2021 FY2022 Difference BA business, driven by urban redevelopment projects in Q1-3 Q1-3 the Tokyo metropolitan are
Slide 6: Segment Information: BA Business
1. Consolidated Financial Results for the Cumulative Third Quarter of FY2022 Segment Information: BA Business In the domestic market, demand has continued to grow for urban redevelopment projects in the Tokyo metropolitan area and for heating, ventilation, and air conditioning (HVAC) control equipme
Slide 7: Segment Information: AA Business
1. Consolidated Financial Results for the Cumulative Third Quarter of FY2022 Segment Information: AA Business Regarding market trends in Japan and abroad surrounding the AA business, capital investment has continued at a high level in the manufacturing sector as a whole, although there has been some
Slide 8: Segment Information: LA Business
1. Consolidated Financial Results for the Cumulative Third Quarter of FY2022 Segment Information: LA Business The Lifeline field, which includes gas (city gas, LP gas) and water meters, depends on cyclical demand for meter replacement as required by law. Though demand can be expected to remain basic
Slide 9: Reference: Orders Received by Segment
1. Consolidated Financial Results for the Cumulative Third Quarter of FY2022 Reference: Orders Received by Segment Comparison to past results (Q1-3) Quarterly (3 months) (Billions of yen) (Billions of yen) FY2021 FY2022 250.0 100.0 200.0 75.0 150.0 50.0 100.0 25.0 50.0 0.0 0.0 FY2019 FY2020 FY20
Slide 10: Reference: Order Backlog by Segment
1. Consolidated Financial Results for the Cumulative Third Quarter of FY2022 Reference: Order Backlog by Segment Comparison to past results Quarterly (3 months) (Billions of yen) (Billions of yen) FY2021 FY2022 250.0 250.0 200.0 200.0 150.0 150.0 100.0 100.0 50.0 50.0 0.0 0.0 FY2019 FY2020 FY202
Slide 11: Reference: Sales by Segment
1. Consolidated Financial Results for the Cumulative Third Quarter of FY2022 Reference: Sales by Segment Comparison to past results (Q1-3) Quarterly (3 months) (Billions of yen) (Billions of yen) 250.0 FY2021 FY2022 100.0 200.0 75.0 150.0 50.0 100.0 25.0 50.0 0.0 0.0 FY2019 FY2020 FY2021 FY2022
Slide 12: Reference: Segment Profit (Operating Income)
1. Consolidated Financial Results for the Cumulative Third Quarter of FY2022 Reference: Segment Profit (Operating Income) Comparison to past results (Q1-3) Quarterly (3 months) (Billions of yen) (%) (Billions of yen) (%) FY2021 FY2022 17.5 17.5 12.5 25.0 15.0 15.0 10.0 20.0 12.5 12.5 7.5 15.0 10
Slide 13: Overseas Sales by Region
1. Consolidated Financial Results for the Cumulative Third Quarter of FY2022 Overseas Sales by Region Overseas sales rose by 18.5% on the same period last year. (Billions of yen) (%) 50.0 25.0 Sales in China were lower because little progress was made in the recording of sales for some products due
Slide 14: Consolidated Financial Position
1. Consolidated Financial Results for the Cumulative Third Quarter of FY2022 Consolidated Financial Position Assets Total assets decreased by 6.0 billion yen from the end of FY2021. This was due to a decrease in cash and deposits, and in securities, despite an increase in inventories as well as pr
Slide 15: 2. Consolidated Financial Plan for FY2022
2. Consolidated Financial Plan for FY2022 →No revision from the most recent announcement on November 8, 2022 © Azbil Corporation. All rights reserved.
Slide 16: Consolidated Financial Plan
2. Consolidated Financial Plan for FY2022 Consolidated Financial Plan No revision from the announcement on November 8, 2022 Taking advantage of the buildup in order backlog, which reflects robust market demand, we will continue measures to address parts shortages, and by making steady progress with
Slide 17: Financial Plan by Segment
2. Consolidated Financial Plan for FY2022 Financial Plan by Segment ■BA Business Given the large order backlog, we expect to achieve planned sales and profits by making steady progress with job execution. ■AA Business Thanks to those measures designed to address parts shortages and enhance productio
Slide 18: Reference: Sales by Segment and Segment Profit (Operating Income)
2. Consolidated Financial Plan for FY2022 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.
Slide 19: 3. Returning Profits to Shareholders
3. Returning Profits to Shareholders →No revision from the initial announcement on May 13, 2022 © Azbil Corporation. All rights reserved.
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 in Basic policy growth and healthy financial foundation—we repurchase the Company’s own stock and increase divi
Slide 21: FY2022 Annual Dividend Plan
3. Returning Profits to Shareholders FY2022 Annual Dividend Plan FY2022 annual The Company plans to increase the annual dividend by 5 yen per share, to 65 yen per share. dividend Considering parts shortages, inflation, and other factors, the outlook for the global economic environment is expected
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) (%) 70.0 4.4 5.0 (plan) 65.0 4.5 4.0 4.2 3.9
Slide 23: Appendix
Appendix © Azbil Corporation. All rights reserved.
Slide 24: Capital Expenditure, Depreciation and R&D Expenses
Capital Expenditure, Depreciation and R&D Expenses Full-year results/Q1-3 results for FY2022 Full-year plan for FY2022 ■ Capital expenditure, depreciation ■ R&D expenses, R&D expenses/Net sales ratio (Billions of yen) (Billions of yen) (%) 15.0 15.0 6.0 13.3 (plan) 14.3 12.5 (plan) 12.5 5.0 10.0 10.
Slide 25: Long-term Targets and 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 Long-term solutions—which share a common foundation of automation technology. Focusing on the growth of these fields, we will achieve growth globally in each of o
Slide 26: Three Growth Fields Sharing a Common Foundation of Automation Technology
Three Growth Fields Sharing a Common Foundation of Automation Technology We are expanding business by focusing on three growth fields that address new societal and customer needs. In FY2022, we created the Green Transformation (GX)* Solution Department and began promoting business area expansion
Slide 27: Business Environment and Progress of Measures within Each Business (BA/AA/LA)
Business Environment and Progress of Measures within Each Business (BA/AA/LA) While responding to changes in the socioeconomic environment—such as the pandemic, parts procurement difficulties, and inflation—we will steadily implement measures contained in the medium-term plan, aiming to achieve grow
Slide 28: Investing in Japan Green Investment Corp. for Carbon Neutrality (JICN)
Toward Expansion of the Environment and Energy Field: Investing in Japan Green Investment Corp. for Carbon Neutrality (JICN) Azbil to invest in Japan Green Investment Corp. for Japan Green Investment Corp. for Carbon Neutrality Carbon Neutrality (JICN)*, a public-private fund established by Japan’s
Slide 29: Investing in CEC and Forming a Business Alliance
Providing Solutions that Combine Energy-saving with Renewable Energy: Investing in CEC and Forming a Business Alliance Azbil to invest in Clean Energy Connect, Inc. and form a business alliance: Contributing to the realization of a decarbonized society by Energy-saving solutions Green power solution
Slide 30: azbil Group Sustainability
azbil Group Sustainability The azbil Group is committed to continuously enhancing enterprise value based on mutual trust with stakeholders, to realize safety, comfort, and fulfillment in people’s lives and contributing “in series” to a sustainable society. These are achieved through practicing the a
Slide 31: Essential Goals of azbil Group for SDGs
Essential Goals of azbil Group for SDGs Regarding SDGs, we have set four of our 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 levels. Ⅰ Environment and energy Ⅱ New automation
Slide 32: Contribution “In Series” to the Achievement of a Sustainable Society
Contribution “In Series” to the Achievement of a Sustainable Society Reduce about 160 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 33: 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 34: Transition to a Company with a Three-committee Board Structure
Transition to a Company with a Three-committee Board Structure Transition to a company with a three-committee board structure Aiming to promote further reforms in corporate governance, the Company transitioned to a company with a three-committee board structure (on June 23, 2022), ensuring the s
Slide 35: Revision of the Executive Remuneration System and Disclosure of Remuneration Policy
Revision of the Executive Remuneration System and Disclosure of Remuneration Policy With regard to our executive remuneration system, in order to add impetus to the realization of our long-term targets (to achieve by FY2030) and the medium-term plan (FY2021-FY2024), we will further increase both the
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 12 11 11 11 10 9 8 33.3% 45.5% 2021 2022 5 out of 11 8 out of 12 6 5 5 5 54.5% 4 66.7% 3 0 2018 2019 2020 2021 2022 (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 2023)
External Evaluation and Initiatives (as of January 2023) ESG-related topics—Inclusion in ESG indexes, external evaluation and initiatives Five indexes adopted by the Government Pension Investment Fund (GPIF) of Japan FTSE Blossom Japan Index FTSE Blossom Japan Sector Relative Index MSCI Japa
Slide 39: 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 40: Notes (2)
Notes (2) (from page 31) 1. Science-based targets: Greenhouse gas emission reduction targets that are consistent with scientific evidence. 2. The azbil Group’s own sustainable design principles: This design strives to create and provide products that contribute to solving global environmental issues
Slide 41: 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