Slide 1: Presentation Materials for the Third Quarter of Fiscal Year 2020
Presentation Materials for the Third Quarter of Fiscal Year 2020 (Ending March 31, 2021) (Based on Japanese GAAP) February 4, 2021 Azbil Corporation RIC: 6845.T, Sedol: 6985543 © Azbil Corporation. All rights reserved.
Slide 2: COVID-19 condolences and gratitude
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 FY2020 4 2. Financial Plan for FY2020 14 3. Returning Profits to Shareholders 18 4. Future Directions 21 Appendix 29 Notes 35 © Azbil Corporation. All rights reserved. 3
Slide 4: 1. Financial Results for the Third Quarter of FY2020
1. Financial Results for the Third Quarter of FY2020 © Azbil Corporation. All rights reserved. 4
Slide 5: Consolidated Financial Results
1. Financial Results for the Third Quarter of FY2020 Consolidated Financial Results Orders received decreased for the Advanced Automation (AA) business due to sluggish market conditions caused by the COVID-19 pandemic. Orders received were also down for the Building Automation (BA) business—reflec
Slide 6: Segment Information: BA Business
1. Financial Results for the Third Quarter of FY2020 Segment Information: BA Business In Japan, continued demand has been expected for urban redevelopment projects, with heightened interest being shown in solutions related to ventilation improvement, energy savings, and CO2 reduction. While the COVI
Slide 7: Segment Information: AA Business
1. Financial Results for the Third Quarter of FY2020 Segment Information: AA Business Growth strategies and measures to strengthen profitability have been developed based on the three AA business sub-segments*. Investment in 5G and other areas has led to expanded demand in the semiconductor manufact
Slide 8: Segment Information: LA Business
1. Financial Results for the Third 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 have been in the p
Slide 9: Reference: Orders Received by Segment
1. Financial Results for the Third Quarter of FY2020 Reference: Orders Received by Segment ■ Comparison to past results (Q1-3) ■ Quarterly (3 months) (Billions of yen) (Billions of yen) FY2019 FY2020 250.0 100.0 200.0 75.0 150.0 50.0 100.0 25.0 50.0 0.0 0.0 FY2017 FY2018 FY2019 FY2020 FY2019 FY2020
Slide 10: Reference: Sales by Segment
1. Financial Results for the Third Quarter of FY2020 Reference: Sales by Segment ■ Comparison to past results (Q1-3) ■ Quarterly (3 months) (Billions of yen) (Billions of yen) FY2019 FY2020 250.0 100.0 200.0 75.0 150.0 50.0 100.0 25.0 50.0 0.0 0.0 FY2017 FY2018 FY2019 FY2020 FY2019 FY2020 Q1-3 Q1-3
Slide 11: Reference: Segment Profit (Operating Income)
1. Financial Results for the Third Quarter of FY2020 Reference: Segment Profit (Operating Income) ■ Comparison to past results (Q1-3) ■ Quarterly (3 months) (Billions of yen) (%) (Billions of yen) (%) FY2019 FY2020 17.5 17.5 12.5 25.0 15.0 15.0 10.0 20.0 12.5 12.5 7.5 15.0 10.0 10.0 7.5 7.5 5.0 10.0
Slide 12: Overseas Sales by Region
1. Financial Results for the Third Quarter of FY2020 Overseas Sales by Region (Billions of yen) (%) As regards overseas sales, strong 40.0 20.0 semiconductor-related demand meant that the AA business saw growth. LA business sales also grew, so overall sales were up 2.8% on the 30.0 15.0 same period
Slide 13: Consolidated Financial Position
1. Financial Results for the Third Quarter of FY2020 Consolidated Financial Position Assets Total assets decreased by 8.0 billion yen from the previous fiscal year-end, owing to a decrease in notes and accounts receivable-trade. Liabilities Total liabilities decreased by 14.3 billion yen from th
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 No Changes to the Revised Consolidated Financial Plan (announced on November 5, 2020, revised upwards) In response to the ongoing COVID-19 pandemic, the Government of Japan has declared a second state of emergency. Although such conditions hav
Slide 16: Financial Plan by Segment
2. Financial Plan for FY2020 Financial Plan by Segment BA It is anticipated that sales and profit will be lower this year. This is because of the fact that the results for the previous financial year were at a high level and there have been curbs on investment and postponed plans in certain market
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: 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, Azbil plans to issue an annual dividend of 50 yen per share (both interim and year-end dividends to be 25 yen per share) While the global spread of COVID
Slide 20: 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 21: 4. Future Directions
4. Future Directions © Azbil Corporation. All rights reserved. 21
Slide 22: 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 guideposts to indicate for management the direction of Group development globally. While continually striving to attain our long-term goals, we wil
Slide 23: Approach to Business Management
4. Future Directions Approach to Business Management 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 new issues that demand solutio
Slide 24: Business Environment and Strategies (1)
4. Future Directions Business Environment and Strategies (1) No changes are anticipated in continued investment in the large-scale redevelopment BA projects in the Tokyo metropolitan area from 2021, or in the robust demand forecast for numerous refurbishment projects for existing buildings. Moreov
Slide 25: Business Environment and Strategies (2)
4. Future Directions Business Environment and Strategies (2) While there have been recent signs of improvement in some markets, the overall picture for capital AA investment in the manufacturing industry remains unclear. However, with labor shortages, environmental measures, productivity improveme
Slide 26: Business Environment and Strategies (3)
4. Future Directions Business Environment and Strategies (3) The Lifeline field mainly depends on stable demand for meter replacement as required by law. LA There is also new demand, such as for our Meter Data Cloud Service based on smart technology. In the LSE field, we anticipate growing demand
Slide 27: Progress with Upgrading and Strengthening the Business Foundation (1)
4. Future Directions Progress with Upgrading and Strengthening the Business Foundation (1) Building a global production and R&D network: Construction of a new building at Fujisawa Technology Center, upgrading facilities As part of our efforts to build a global production and R&D network, in May 2019
Slide 28: Progress with Upgrading and Strengthening the Business Foundation (2)
4. Future Directions Progress with Upgrading and Strengthening the Business Foundation (2) Management and activities that contribute “in series” to the achievement of a sustainable society Established new targets (below) related to SDGs, including effective reduction of CO2 at customer’s sites D
Slide 29: Appendix
Appendix © Azbil Corporation. All rights reserved. 29
Slide 30: Capital Expenditure, Depreciation and R&D Expenses
Capital Expenditure, Depreciation and R&D Expenses Full-year results/Q1-3 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) (%) 7.5 12.5 5.0 11.6 6.0 10.0 (plan) 4.0 4.5 7.5 3.0 4.6 4.5(pl
Slide 31: 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 5 out of 11 5 out of 11 54.5% 54.5% 6 5 5 4 3 3 3 0 Independent Inside directors 2016 201
Slide 32: azbil Group CSR Management
azbil Group CSR Management Business activities and growth that contribute “in series” to the achievement of a sustainable society The azbil Group’s Guiding Principles and Code Share- Sustainable of Conduct were renewed as a mechanism holders society for sustainable growth. We are aiming to Customers
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
Slide 34: CO2 Emission Reduction at Customers' Sites
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 35: 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 36: 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