Azbil Corporation · TSE:6845
Azbil — Q1 FY2020 Earnings Presentation
38 slides from Azbil's earnings presentation, Aug 6, 2020
Slide 1: Presentation Materials for the First Quarter of Fiscal Year 2020
Presentation Materials for the First Quarter of Fiscal Year 2020 (Ending March 31, 2021) (Based on Japanese GAAP) August 6, 2020 Azbil Corporation RIC: 6845.T, Sedol: 6985543 © Azbil Corporation. All rights reserved.
Slide 2: Condolences regarding COVID-19 and Japan floods
We would like to offer our heartfelt condolences for all those who have perished as a result of the novel coronavirus disease (COVID-19) as well as those who have lost loved ones in the heavy rains and floods that afflicted Japan in July this year. We would also like to extend our deepest sympathies
Slide 3: Contents
Contents 1. Financial Results for the First Quarter of FY2020 P. 4 2. Financial Plan for FY2020 P.14 3. Returning Profits to Shareholders P.18 4. Future Directions P.22 Appendix P.30 Notes P.37 © Azbil Corporation. All rights reserved. 3
Slide 4: 1. Financial Results for the First Quarter of FY2020
1. Financial Results for the First Quarter of FY2020 © Azbil Corporation. All rights reserved. 4
Slide 5: Consolidated Financial Results
1. Financial Results for the First Quarter of FY2020 Consolidated Financial Results Orders received fell overall compared with the same period last year. This was mainly due to decreases in the BA business, which reflects the fact that subdued demand was expected in this quarter, when fewer multi-
Slide 6: Segment Information - BA Business
1. Financial Results for the First Quarter of FY2020 Segment Information - BA Business The market environment in Japan has continued to be robust thanks to urban redevelopment projects in the Tokyo metropolitan area; the spread of COVID-19 has led to some temporary delays in construction work, but t
Slide 7: Segment Information - AA Business
1. Financial Results for the First Quarter of FY2020 Segment Information - AA Business We are pursuing a growth strategy and implementing measures to strengthen profitability for the three AA business sub-segments*. Burgeoning 5G-related investments led to continued demand in markets for semiconduct
Slide 8: Segment Information - LA Business
1. Financial Results for the First Quarter of FY2020 Segment Information - LA Business The Lifeline field (gas/water meters, etc.) depends on cyclical demand for meter replacement as required by law and thus market conditions can be expected to remain stable. However, LP gas meters reaching the end
Slide 9: Reference: Orders Received by Segment
1. Financial Results for the First Quarter of FY2020 Reference: Orders Received by Segment ■ Comparison to past results (Q1) ■ Quarterly (3 months) (Billions of yen) (Billions of yen) 100.0 FY2019 FY2020 100.0 75.0 75.0 50.0 50.0 25.0 25.0 0.0 0.0 FY2017 FY2018 FY2019 FY2020 FY2019 FY2020 Q1 Q1 Q1 Q
Slide 10: Reference: Sales by Segment
1. Financial Results for the First Quarter of FY2020 Reference: Sales by Segment ■ Comparison to past results (Q1) ■ Quarterly (3 months) (Billions of yen) (Billions of yen) 100.0 100.0 FY2019 FY2020 75.0 75.0 50.0 50.0 25.0 25.0 0.0 0.0 FY2017 FY2018 FY2019 FY2020 FY2019 FY2020 Q1 Q1 Q1 Q1 Q1 Q2 Q3
Slide 11: Reference: Segment Profit (Operating Income)
1. Financial Results for the First Quarter of FY2020 Reference: Segment Profit (Operating Income) ■ Comparison to past results (Q1) ■ Quarterly (3 months) (Billions of yen) (%) (Billions of yen) (%) 12.5 FY2019 FY2020 25.0 12.5 25.0 10.0 20.0 10.0 20.0 7.5 15.0 7.5 15.0 5.0 10.0 5.0 10.0 2.5 5.0 2.5
Slide 12: Overseas Sales by Region
1. Financial Results for the First Quarter of FY2020 Overseas Sales by Region As regards overseas sales, the LA business (Billions of yen) (%) 12.5 25.0 saw increased revenue thanks to the high level of orders received in the previous fiscal year, 10.0 20.0 but sales declined in the BA and AA busine
Slide 13: Consolidated Financial Position
1. Financial Results for the First Quarter of FY2020 Consolidated Financial Position Assets Seasonal factors typically lead to sales concentrating in the fourth quarter, with a corresponding decline in notes and accounts receivable-trade in the first quarter due to the processing of collections. T
Slide 14: 2. Financial Plan for FY2020
2. Financial Plan for FY2020 © Azbil Corporation. All rights reserved. 14
Slide 15: Consolidated Financial Plan
2. Financial Plan for FY2020 Consolidated Financial Plan Derivation of numerical targets of the plan In the first quarter, there was continued demand for automation (technology, products and services) required for operating those facilities crucial to the social infrastructure and client companies
Slide 16: Financial Plan by Segment
2. Financial Plan for FY2020 Financial Plan by Segment BA There are concerns regarding curbs on investments, postponed plans, and requests to lower the cost of service contracts in those markets where business performance has been hardest hit by the COVID-19 pandemic, as well as concerns of some t
Slide 17: Reference: Sales by Segment and Segment Profit (Operating Income)
2. Financial Plan for FY2020 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 FY2017
Slide 18: 3. Returning Profits to Shareholders
3. Returning Profits to Shareholders © Azbil Corporation. All rights reserved. 18
Slide 19: Basic Policy and FY2020 Shareholders' Returns
3. Returning Profits to Shareholders Basic Policy and FY2020 Shareholders’ Returns Basic policy We continue to develop well-disciplined capital policies and aim to maintain/enhance the azbil Group's enterprise value while carefully balancing three key elements: Promoting promoting shareholder return
Slide 20: FY2020 Shareholders' Returns
3. Returning Profits to Shareholders FY2020 Shareholders’ Returns FY2020 dividend plan (No change from the initial plan as announced on May 20, 2020) As initially announced, Azbil plans to issue an annual dividend of 50 yen per share (both interim and year-end dividends to be 25 yen per share) The
Slide 21: Trends of Shareholders' Returns: Maintaining Dividend Stability
3. Returning Profits to Shareholders Trends of Shareholders’ Returns: Maintaining Dividend Stability In accordance with our basic policy, we have continued to maintain a stable dividend level while at the same time striving to raise it. The dividend per share has been retroactively revised, taking
Slide 22: 4. Future Directions
4. Future Directions © Azbil Corporation. All rights reserved. 22
Slide 23: Direction and Long-term Goals of azbil Group Development
4. Future Directions Direction and Long-term Goals of azbil Group Development The United Nation’s sustainable development goals (SDGs) will serve as new signposts to indicate for management the direction of Group development globally. While continually striving to attain our long-term goals, we will
Slide 24: Expansion of the Roles of Automation and Increase of Its Value
4. Future Directions Expansion of the Roles of Automation and Increase of Its Value With the added impact of the COVID-19 pandemic, society and industry are undergoing major changes, as are the needs of each. This situation is revealing various issues that must be solved, as well as giving rise to
Slide 25: Smart Security Solution Employing Big Data and AI
4. Future Directions Smart Security Solution Employing Big Data and AI Azbil’s online anomaly monitoring system utilizes big data for online detection of possible Example 1 anomalies in processes and equipment. Our future variable forecasting system offers Smart security solutions and other monitori
Slide 26: Virtual Power Plant (VPP) for Expanding the Use of Renewable Energy
4. Future Directions Virtual Power Plant (VPP) for Expanding the Use of Renewable Energy Example 2 From automation that cuts waste to automation that avoids waste (demand control) Strengthening Tackling for use of renewable energy environmental/ ⇒To increase the amount of renewable energy in Japan,
Slide 27: HVAC Solution for Hospital BCP, AI Body Temperature Sensing Solution
4. Future Directions HVAC Solution for Hospital BCP, AI Body Temperature Sensing Solution Pressure control for hospitals that facilitates BCP, by enabling safety and flexible Example 3 building use BCP for buildings – Dual-use wards for normal and emergency situations at medical institutions desig
Slide 28: The azbil Group's New Targets for Achieving the SDGs
4. Future Directions The azbil Group’s New Targets for Achieving the SDGs Setting new goals: Aiming at business activities that contribute directly to a sustainable society and human resource development that supports those activities Targets for FY2030 Preserving the Earth’s environment and Environ
Slide 29: In Conclusion
In Conclusion Guided by our Group’s philosophy of “human-centered automation”, we will aim to achieve new growth that capitalizes on changes to the business environment and new trends in technological innovation. Drawing on the customer trust, experience and knowledge that we have built up over
Slide 30: Appendix
Appendix © Azbil Corporation. All rights reserved. 30
Slide 31: Capital Expenditure, Depreciation and R&D Expenses
Capital Expenditure, Depreciation and R&D Expenses Full-year results/Q1 results for FY2020 Full-year plan for FY2020 Capital expenditure, depreciation R&D expenses, R&D expenses/Net sales ratio (Billions of yen) (Billions of yen) (%) 9.0 15.0 6.0 11.6 (plan) 7.5 12.5 5.0 6.0 10.0 4.0 4.5 4.6 (pl
Slide 32: Progress of Corporate Governance Reforms
Progress of Corporate Governance Reforms Number of directors Composition of independent outside directors (People) Total number of directors Independent outside directors 12 11 11 10 9 9 9 45.5% 2019 45.5% 2020 6 5 5 5 out of 11 ５ out of 11 4 54.5% 54.5% 3 3 3 0 2016 2017 2018 2019 2020 (Year) Indep
Slide 33: azbil Group CSR Management
azbil Group CSR Management Business Activities and Growth Directly Contributing to a Sustainable Society The azbil Group’s Guiding Principles and Code of Conduct were renewed as a mechanism Share- Sustainable holders society for sustainable growth. We are aiming to Customers achieve further growth b
Slide 34: Essential Goals of azbil Group for the SDGs
Essential Goals of azbil Group for the SDGs Business and General Corporate Activities Preserving the Earth’s environment and solving energy-related problems through cooperative creation Solutions for energy (toward a low-carbon society) • Further reduction of GHG*1 emissions at customers’ sites • 30
Slide 35: Contribution to the Environment
Contribution to the Environment Regarding greenhouse gas emissions (Scope 1 + 2)*1 associated with our own business activities, we have already launched specific initiatives. Aiming to achieve zero emissions by FY2050, we have developed our Long-term Vision for Reducing Greenhouse Gas Emissions, and
Slide 36: Contribution to the Environment: 3,010,000 tons/year
Contribution to the Environment We will continue to reduce CO2 emissions at our customers’ sites through the BA, AA and LA businesses, and also work to reduce the environmental impact of our entire supply chain. CO2 emission reduction at customers’ sites through our business FY2019 (Ended March 31,
Slide 37: 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 38: IR Inquiries
IR Inquiries 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, and therefore the