Slide 1: Presentation Materials for the Third Quarter of Fiscal Year 2024
Presentation Materials for the Third Quarter of Fiscal Year 2024 (Ending March 31, 2025) (Based on Japanese GAAP) February 6, 2025 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 FY2024 Orders received, net sales, and operating income were all higher than the same period of FY2023, mainly due to growth in the BA business. Net income attributable to owners of parent increased significantly ow
Slide 3: Contents
Contents 1. Consolidated Financial Results for the Cumulative Third Quarter of FY2024 4 2. Consolidated Financial Plan for FY2024 12 →No revision from the most recent announcement on November 8, 2024 3. Returning Profits to Shareholders and Investment in Human Capital 16 →No revision has been made t
Slide 4: 1. Consolidated Financial Results for the Cumulative Third Quarter of FY2024
1. Consolidated Financial Results for the Cumulative Third Quarter of FY2024 © Azbil Corporation. All rights reserved. 4
Slide 5: Consolidated Financial Results
1. Consolidated Financial Results for the Cumulative Third Quarter of FY2024 Consolidated Financial Results Orders received, net sales, and operating income were all higher than the same period of FY2023, mainly due to growth in the BA business. Net income attributable to owners of parent increased
Slide 6: Financial Results by Segment
1. Consolidated Financial Results for the Cumulative Third Quarter of FY2024 Financial Results by Segment ■ BA: Orders received increased compared to the same period of FY2023 assisted by the renewal of large-scale multi-year service contracts, against the backdrop of a robust business environment.
Slide 7: Segment Information: BA Business
1. Consolidated Financial Results for the Cumulative Third Quarter of FY2024 Segment Information: BA Business Business environment — In the domestic market, demand for new office buildings in urban redevelopment projects has leveled off but remains high. Demand for the refurbishment of existing buil
Slide 8: Segment Information: AA Business
1. Consolidated Financial Results for the Cumulative Third Quarter of FY2024 Segment Information: AA Business Business environment — In the process automation (PA) market, demand centering on domestic maintenance and refurbishment has remained firm. — In the FA market, despite there being signs of r
Slide 9: Segment Information: LA Business
1. Consolidated Financial Results for the Cumulative Third Quarter of FY2024 Segment Information: LA Business 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, and demand can be expected to r
Slide 10: Overseas Sales by Region
1. Consolidated Financial Results for the Cumulative Third Quarter of FY2024 Overseas Sales by Region Overseas sales increased by 4.8% from the same period of FY2023 and accounted for 23.6% of net sales. The BA business increased significantly in Asia and China. With sluggish conditions in the F
Slide 11: Consolidated Financial Position
1. Consolidated Financial Results for the Cumulative Third Quarter of FY2024 Consolidated Financial Position Assets : Assets decreased mainly due to reductions in trade receivables and in investment securities (investments and other assets) caused by a decline in market value and sales of investme
Slide 12: 2. Consolidated Financial Plan for FY2024
2. Consolidated Financial Plan for FY2024 →No revision from the most recent announcement on November 8, 2024 © Azbil Corporation. All rights reserved. 12
Slide 13: Consolidated Financial Plan
2. Consolidated Financial Plan for FY2024 Consolidated Financial Plan Despite the impact on the fourth-quarter (3 months) consolidated financial results of the transfer and exclusion of ATL from the scope of consolidation as well as a fall in revenue due to the delayed recovery in the FA market, tha
Slide 14: Financial Plan by Segment (1)
2. Consolidated Financial Plan for FY2024 Financial Plan by Segment (1) ■ BA: The initial plan was revised upward, for both sales and segment profit, to reflect the higher revenue resulting from robust market conditions and improved profitability. Although expenses have increased, we expect to achie
Slide 15: Financial Plan by Segment (2)
2. Consolidated Financial Plan for FY2024 Financial Plan by Segment (2) The initial plan was revised upward, for both sales and segment profit, to reflect the higher revenue resulting from robust BA market conditions and improved profitability. Although expenses have increased, we expect to achieve
Slide 16: 3. Returning Profits to Shareholders and Investment in Human Capital
3. Returning Profits to Shareholders and Investment in Human Capital → No revision has been made to the most recently announced plan to return profits to shareholders (November 8, 2024). There will be expanded measures to invest in human capital. © Azbil Corporation. All rights reserved. 16
Slide 17: Basic Policy and FY2024 Shareholder Returns
3. Returning Profits to Shareholders and Investment in Human Capital Basic Policy and FY2024 Shareholder Returns The plan to increase the dividend for the 10th consecutive year remains unchanged, and DOE is expected to be at the 5% level. Repurchase of the Company’s own stock to the value of 15.0 bi
Slide 18: Repurchase of Own Stock, Cancellation of Treasury Shares, and Investment in Human Capital
3. Returning Profits to Shareholders and Investment in Human Capital Repurchase of Own Stock, Cancellation of Treasury Shares, and Investment in Human Capital The Company is repurchasing its own stock up to 15.0 billion yen or 24.0 million shares. Treasury shares worth approximately 10.0 billion
Slide 19: Trend of Shareholder Returns
3. Returning Profits to Shareholders and Investment in Human Capital Trend of Shareholder Returns We plan to increase FY2024 annual dividend for the 10th consecutive year, and DOE to reach 5% level. Dividend per share Dividend on equity (DOE) 5.0 (Yen) 4.8 (plan) (%) 25 5.0 4.4 4.2 3.9 4.0 20 3.7
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: Forecasting business results for the final year of the medium-term plan that exceed the targets set at the time of formulation The azbil Group defines three growth fields, which share a common foundation of auto
Slide 22: Strengthening Strategic Investment to Advance Our Transformation for Further Growth
4. Progress in Implementing the Medium-term Plan Strengthening Strategic Investment to Advance Our Transformation for Further Growth, and Restructuring Our Business Portfolio Track changes in customers’ business models and demand resulting from structural changes in the business environment, and t
Slide 23: Progress of Medium-term Plan Measures in FY2024: Press Release Excerpts
4. Progress in Implementing the Medium-term Plan Progress of Medium-term Plan Measures in FY2024: Press Release Excerpts Strengthening competitiveness (products and services): developing business involving products that utilize AI, energy conservation, and renewable energy — Azbil contributes to m
Slide 24: Appendix I: Financial Data
Appendix I Financial Data • Performance Trend by Segment ・・・25 • Capital Investment, Depreciation and R&D Expenses ・・・29 © Azbil Corporation. All rights reserved. 24
Slide 25: Performance Trend by Segment: Orders Received
Appendix I Performance Trend by Segment: Orders Received ■ Comparison to past results (Q1-3) ■ Quarterly (3 months) (Billions of yen) (Billions of yen) 250.0 100.0 200.0 80.0 150.0 60.0 100.0 40.0 50.0 20.0 0.0 0.0 FY2021 FY2022 FY2023 FY2024 FY2023 FY2024 Q1-3 Q1-3 Q1-3 Q1-3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 ■B
Slide 26: Performance Trend by Segment: Order Backlog
Appendix I Performance Trend by Segment: Order Backlog ■ Comparison to past results ■ Quarterly (Billions of yen) (Billions of yen) 250.0 250.0 200.0 200.0 150.0 150.0 100.0 100.0 50.0 50.0 0.0 0.0 FY2021 FY2022 FY2023 FY2024 FY2023 FY2024 Q3 Q3 Q3 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 ■BA 87.7 101.6 101.3 101.1
Slide 27: Performance Trend by Segment: Sales
Appendix I Performance Trend by Segment: Sales ■ Comparison to past results (Q1-3) ■ Quarterly (3 months) (Billions of yen) (Billions of yen) 250.0 100.0 200.0 75.0 150.0 50.0 100.0 25.0 50.0 0.0 0.0 FY2021 FY2022 FY2023 FY2024 FY2023 FY2024 Q1-3 Q1-3 Q1-3 Q1-3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 ■BA 79.1 83.3 90.
Slide 28: Performance Trend by Segment: Segment Profit (Operating Income)
Appendix I Performance Trend by Segment: Segment Profit (Operating Income) ■ Comparison to past results (Q1-3) ■ Quarterly (3 months) (Billions of yen) (%) (Billions of yen) (%) 30.0 30.0 15.0 30.0 25.0 25.0 12.5 25.0 20.0 20.0 10.0 20.0 15.0 15.0 7.5 15.0 10.0 10.0 5.0 10.0 5.0 5.0 2.5 5.0 0.0 0.0
Slide 29: 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/ Q1-3 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 9.2 4.0 7.5 6.9 7.5 3.0 5.0 5.0 5.0 2.0 2.
Slide 30: Appendix II
Appendix II Transfer of Equity Interests in Azbil Telstar, Three Growth Fields, Sustainability Management, and Shareholder Returns • Transfer of Equity Interests in Azbil Telstar ・・・31 • Initiatives in Three Growth Fields and Application to Each Business Segment ・・・32 • The azbil Group’s Sustainabil
Slide 31: Transfer of Equity Interests in Azbil Telstar
Appendix II Transfer of Equity Interests in Azbil Telstar: Restructuring Our Business Portfolio in the LA Business From the perspective of restructuring our business portfolio to improve capital efficiency, the Company transferred Azbil Telstar to Syntegon Technology GmbH., a global packaging soluti
Slide 32: 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 33: 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 34: 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. Our scope 3 emission reduction target towards FY2030, which h
Slide 35: Investing in Human Capital: Benefits and Financial Measures (1)
Appendix II Investing in Human Capital: Benefits and Financial Measures to Improve Employee Engagement (1) Introduction of a special incentive scheme, a welfare program using treasury shares to enhance incentive and contribute to asset building of employees Special incentive scheme (to be introduced
Slide 36: Investing in Human Capital: Benefits and Financial Measures (2)
Appendix II Investing in Human Capital: Benefits and Financial Measures to Improve Employee Engagement (2) Using treasury shares for the continuation of our employee stock ownership plan (J-ESOP) Modifying the system to allow for in-service benefits that can further incentivize employees Employee st
Slide 37: 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 88 dividend yen*1 per share, and DOE to reach 5% level. *1 For comparison, the dividend amount before the stock split is shown. Profitability has been strengthen
Slide 38: Overview of the Stock Split
Appendix II Overview of the Stock Split Implemented a 4-for-1 common stock split Stock split Effective from Tuesday, October 1, 2024 Investment unit cost is now in the 100-thousand-yen range*1 following the stock split *1 Calculated based on the closing price on Tuesday, October 1, 2024 To increase
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) 4. Essential Goals of azbil Group for SDGs *1 3.40 million metric tons of CO2/year: The FY2030 emission factor from electricity generation is our own estimated value based on the Japanese government’s Energy Basic Plan in 2019. *2 Science-based targets (SBT): Greenhouse gas emission reduct
Slide 41: Notes (3)
Notes (3) 4. Essential Goals of azbil Group for SDGs *9 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 to 6
Slide 42: 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