Slide 1: Presentation Materials for the Fiscal Year Ended March 31, 2018
Human-centered Automation Azbil Corporation RIC: 6845.T, Sedol: 6985543 Presentation Materials For the Fiscal Year Ended March 31, 2018 (Japanese GAAP) <Contents> 1. Financial Results for FY2017 (Ended March 31, 2018) 2. Progress in Implementing the Medium-term Plan (FY2017-FY2019) 3. Financial Plan
Slide 2: Notes
Notes: 1. Financial data and financial statements have been prepared based on Japanese GAAP and the amounts have been rounded down. 2. Segment names are abbreviated as follows: B A ： Building Automation A A ： Advanced Automation L A ： Life Automation 3. The financial plan is based on management’s as
Slide 3: 1. Financial Results for FY2017
1. Financial Results for FY2017 (Ended March 31, 2018) 3
Slide 4: Consolidated Financial Results
1. Financial Results for FY2017 (Ended March 31, 2018) Consolidated Financial Results Overall orders received increased compared with the previous fiscal year. The BA business maintained a high level of orders received, while the AA and LA businesses achieved significant growth. Net sales increased
Slide 5: Segment Information - BA Business
1. Financial Results for FY2017 (Ended March 31, 2018) Segment Information - ■ BA Business Because large-scale multi-year contracts*1 had been recorded in the previous fiscal year, overall orders received were down, but the business environment has continued to be robust and orders received remained
Slide 6: Segment Information - AA Business
1. Financial Results for FY2017 (Ended March 31, 2018) Segment Information - ■ AA Business From the previous fiscal year, we have enhanced operating systems for the three AA business sub-segments*1 and we have implemented measures for realizing business growth and strengthening business profitabilit
Slide 7: Segment Information - LA Business
1. Financial Results for FY2017 (Ended March 31, 2018) Segment Information - ■ LA Business LA business orders received increased in all fields, and the total was significantly higher than the previous fiscal year, thanks mainly to growth in the Life Science Engineering (LSE) field, in which business
Slide 8: [Reference] Orders Received by Segment
1. Financial Results for FY2017 (Ended March 31, 2018) [Reference] Orders Received by Segment [Billions of yen] 300.0 200.0 100.0 0.0 FY2014 FY2015 FY2016 *4 FY2017 *4 ■BA 122.3 *1 133.8 *3 120.0 *2 117.8 ■AA 97.0 94.8 93.4 101.7 ■LA 48.4 *2 45.7 42.6 48.0 Consolidated 266.9 273.6 254.9 266.2 *1 Ord
Slide 9: [Reference] Sales by Segment
1. Financial Results for FY2017 (Ended March 31, 2018) [Reference] Sales by Segment [Billions of yen] 300.0 200.0 100.0 0.0 FY2014 FY2015 FY2016 FY2017 ■BA 114.3 118.8 116.4 * 120.2 ■AA 93.6 93.5 95.4 97.2 ■LA 47.3 * 45.6 44.1 44.2 Consolidated 254.4 256.8 254.8 260.3 * Figures for the following dom
Slide 10: [Reference] Segment Profit (Operating Income)
1. Financial Results for FY2017 (Ended March 31, 2018) [Reference] Segment Profit (Operating Income) [Billions of yen] (5.0) FY2014 FY2015 FY2016 FY2017 ■BA 12.2 12.0 11.5 * 12.5 ■AA 5.0 5.0 7.2 9.9 ■LA (1.9) * 0.0 1.4 1.5 Consolidated 15.3 17.1 20.1 24.0 * Figures for the following domestic and ove
Slide 11: Overseas Sales by Region
1. Financial Results for FY2017 (Ended March 31, 2018) Overseas Sales by Region [Billions of yen] 50.0 25.0% Overseas sales grew in the AA business thanks mainly to increased demand for semiconductor manufacturing equipment 40.0 20.0% and an initiative to develop the customer base in China, North Am
Slide 12: Consolidated Financial Position
1. Financial Results for FY2017 (Ended March 31, 2018) Consolidated Financial Position ■ Assets Total assets increased by 15.3 billion yen compared to the end of the previous fiscal year despite a decrease in cash and deposits. This was due to an increase in securities for short-term investment and
Slide 13: Consolidated Cash Flows
1. Financial Results for FY2017 (Ended March 31, 2018) Consolidated Cash Flows ■ Cash flows from operating activities were virtually unchanged from the previous fiscal year. Cash flows from investing activities were impacted by increased outgoings for the purchase of property, plant and equipment re
Slide 14: 2. Progress in Implementing the Medium-term Plan (FY2017-FY2019)
2. Progress in Implementing the Medium-term Plan (FY2017-FY2019) 14
Slide 15: Policies & Goals of the Medium-term Plan (FY2017-FY2019)
2. Progress in Implementing the Medium-term Plan Policies & Goals of the Medium-term Plan (FY2017-FY2019) At the same time as attaining the current medium-term plan goals, we will invest in sustainable growth that includes starting up new business fields, aiming to achieve the growth required to mee
Slide 16: Progress Achieved with the Medium-term Plan
2. Progress in Implementing the Medium-term Plan Progress Achieved with the Medium-term Plan [Billions of yen] [%] Upgrading LA business systems has been completed, and the profit structure of the AA business has been bolstered with the business promotion system based on the three sub- segments. Wit
Slide 17: Progress in Implementing Business Measures (1): BA Business
2. Progress in Implementing the Medium-term Plan Progress in Implementing Business Measures (1) BA Building Automation Business Strengthening our relationship with customers in Japan and abroad throughout the lifecycle Jobs are being fulfilled with an upgraded system that is better suited to the m
Slide 18: Progress in Implementing Business Measures (2): AA and LA Businesses
2. Progress in Implementing the Medium-term Plan Progress in Implementing Business Measures (2) AA Advanced Automation Business Model F7M thermal micro flow rate liquid flowmeter uses MEMS sensing technology. Generating profits in mature markets and accelerating the shift to growth areas Leveragin
Slide 19: Upgrading/strengthening the business foundation (1): Global production system
2. Progress in Implementing the Medium-term Plan Upgrading/strengthening the business foundation (1) Creating an advanced global production system - Creating the mother factory for realizing next-generation production and expanding overseas production The azbil Group's mother factory We are integr
Slide 20: Upgrading/strengthening the business foundation (2): IoT and AI
2. Progress in Implementing the Medium-term Plan Upgrading/strengthening the business foundation (2) The electric power company Strengthening our ability to meet the needs for industrial innovation that makes use AutoDR system of IoT and AI applications - Establishment of IT Solutions HQ, developmen
Slide 21: 3. Financial Plan for FY2018 (Ending March 31, 2019)
3. Financial Plan for FY2018 (Ending March 31, 2019) 21
Slide 22: Consolidated Financial Plan
3. Financial Plan for FY2018 (Ending March 31, 2019) Consolidated Financial Plan Net sales of 267 billion yen, operating income of 26 billion yen – Aiming for increased sales and profits* by steadily implementing business measures while strengthening/upgrading the business foundation for sustainable
Slide 23: Segment Information: BA, AA, LA Plan
3. Financial Plan for FY2018 (Ending March 31, 2019) Segment Information Supported by a robust business environment, a high level of domestic sales will be BA maintained through steady job fulfillment with upgraded systems. Thanks to this, together with sales growth overseas by leveraging performanc
Slide 24: 4. Returning Profits to Shareholders: 82 yen to 92 yen
4. Returning Profits to Shareholders FY2017 The annual dividends as previously announced 82 yen FY2018 Ordinary dividends raised by 10 yen 92 yen FY2018 Repurchase of the Company's own shares 1 million shares Basic policy We will develop well-disciplined capital policies and aim to Promoting main
Slide 25: Annual Dividends: 92 yen per share
4. Returning Profits to Shareholders Dividends Plan Dividends Plan for the fiscal year ending March 2019 ～to enhance the return of profits to shareholders～ Annual Dividends: 92 yen per share (Ordinary dividends raised by 10 yen) The annual dividends for FY2017 will be 82 yen per share as previously
Slide 26: Repurchase of the Company's Own Shares
4. Returning Profits to Shareholders Repurchase of the Company’s Own Shares In addition to the dividends, taking into consideration business results and the outlook for future business performance, and striving to improve capital efficiency and further raise the return of profits to our shareholders
Slide 27: 5. The azbil Group's CSR-focused Management and Corporate Governance
5. The azbil Group's CSR-focused Management and Corporate Governance 27
Slide 28: Two wheels of management for continuous maximization of enterprise value
5. The azbil Group's CSR-focused Management and Corporate Governance azbil Group CSR-focused management – putting into practice our “human-centered” philosophy Employees Providing opportunities Establishment of internal controls and comprehensive risk management based Enhancing value for for creativ
Slide 29: azbil Group Corporate Governance Reforms
5. The azbil Group's CSR-focused Management and Corporate Governance azbil Group Corporate Governance Reforms Strengthening corporate governance in 2018: main points In FY2018, complying with the spirit of the (following the conclusion of the Ordinary General Meeting of Stockholders on June 26, 2018
Slide 30: Relevant Information
30 Relevant Information azbil
Slide 31: Capital Expenditure, Depreciation and R&D Expenses
Relevant Information Capital Expenditure, Depreciation and R&D Expenses [Billions of yen] ■ Capital Expenditure, Depreciation ■ R&D Expenses, R&D Expenses/Net Sales 9.0 12.5 5.0% 8.0 10.0 4.0% 7.0 6.0 7.5 3.0% 5.0 4.0 5.0 2.0% 3.0 2.0 2.5 1.0% 1.0 0.0 0.0 0.0% FY2015 FY2016 FY2017*1 FY2018*1 FY2015*
Slide 32: Trends of Return to Shareholders
Relevant Information Trends of Return to Shareholders [yen] [％] 92 82 77 67 63 63 63 50 （Plan） Dividends per share（yen） 50 ～ 63 63 63 67 77 82 92 Dividends on equity(%) 3.2 ～ 3.4 3.3 3.1 3.1 3.5 3.5 3.7 Repurchase of own shares ～ 0.6 0.7 1.0 （million shares） 32
Slide 33: Inclusion in ESG Indexes (FY2017)
Relevant Information Inclusion in ESG Indexes (FY2017) Azbil corporation has been selected for inclusion in the FTSE4Good Index Series for the eleventh consecutive year, and additionally included in the 3 environmental, social and corporate governance (ESG) indexes newly adopted by the Government Pe
Slide 34: Sustainable Development Goals and the azbil Group
Relevant Information Sustainable Development Goals and the azbil Group The founder's vision formed the basis for the azbil Group's philosophy “human-centered automation”. Through the management drawing on this philosophy, we are continuously pursuing sustainable development goals. < Group Philosophy
Slide 35: azbil Group Philosophy
azbil Group Philosophy To realize safety, comfort, and fulfillment in people’s lives and contribute to global environmental preservation through “human-centered automation” 35