Slide 1: Presentation Materials of the azbil Group Management Strategy for Medium-term Plan (FY2025-2027)
Presentation Materials of the azbil Group Management Strategy for Medium-term Plan (FY2025-2027) May 13, 2025 Azbil Corporation RIC: 6845.T, Sedol: 6985543 © Azbil Corporation. All rights reserved.
Slide 2: Index
Index 1. New Medium-term Plan Performance Targets 3 2. Review of the Previous Medium-term Plan 4 3. Changes in the Business Environment 5 4. Key Themes of the New Medium-term Plan 6 5. New Medium-term Plan 5-1. The Outline of the New Medium-term Plan 7 5-2. The azbil Group’s Unique Business Model 8
Slide 3: New Medium-term Plan (FY2025-2027) Performance Targets
1. New Medium-term Plan (FY2025-2027) Performance Targets Previous medium-term FY2024 performance targets for net sales, operating income, operating income margin and ROE were all plan achieved, exceeding the targets set by the initial plan. In particular, profitability was significantly improved. （
Slide 4: Review of the Previous Medium-term Plan (FY2021-2024)
2. Review of the Previous Medium-term Plan (FY2021-2024) FY2024 performance targets for net sales, operating income, operating income margin and ROE were all achieved, exceeding the targets set by the initial plan. Profitability was significantly improved while making investments aimed at transfor
Slide 5: Changes in the Business Environment
3. Changes in the Business Environment Response of the azbil Group to Changes in the Business Environment We aim for sustained growth by incorporating growth markets that arise from technological advances and social issues, while considering geopolitical risks. 2025～2027 Mega trends Changes in the
Slide 6: Key Themes of the New Medium-term Plan (FY2025-2027)
4. Key Themes of the New Medium-term Plan (FY2025-2027) We will realize “Evolution” and “Co-creation” aimed at making contributions that lead “in series” to a sustainable society and aim to achieve further growth in growth markets (addressing technological advancement and social issues). Growth ma
Slide 7: Outline of the New Medium-term Plan (FY2025-2027)
5-1. Outline of the New Medium-term Plan (FY2025-2027) The new medium-term plan (FY2025-2027) envisages the realization of “Evolution” and “Co- Long-term creation” aimed at contributing “in series” to the achievement of a sustainable society and the target realization of the well-being of society
Slide 8: The azbil Group's Unique Business Model
5-2. The azbil Group’s Unique Business Model We will achieve growth in core businesses based on our wide customer base (plants/factories, commercial buildings, lifeline utilities) established over the long term, and in our growth businesses, which harness new business opportunities that arise from
Slide 9: Unique Business Model: Examples of Growth Businesses
5-2. The azbil Group’s Unique Business Mode: Examples of Growth Businesses Increasing our competitive advantage Regional expansion (overseas markets) (strengthening product competitiveness) We will achieve sustained business growth by supplying products and We will create new automation utilizing ou
Slide 10: Investment to Strengthen the Business Model
5-3. Investment to Strengthen the Business Model We will steadily invest in human capital, product competitiveness and DX promotion to Growth enhance the azbil Group’s unique business model. businesses Human capital: Secure and develop essential human resources to execute business strategies (pe
Slide 11: Enhancing Product Competitiveness; Promoting DX; Utilizing Generative AI
5-3. Investment to Strengthen the Business Model Enhancing Product Competitiveness; Promoting DX; Utilizing Generative AI We will continue to actively invest in the use of generative AI for both enhancing product competitiveness and promoting in-house DX (to make business operations more efficient a
Slide 12: The azbil Group's Growth Businesses and Core Businesses
5-4. Business Strategy and Performance Targets The azbil Group’s Growth Businesses and Core Businesses Aim to achieve further expansion through both Net sales Operating income growth and core businesses (Billion of yen) 400.0 (Billion of yen) 100.0 FY2024 FY2027 340.0 Growth businesses: 88.0 billion
Slide 13: Summary of Each Segment of the azbil Group
5-4. Business Strategies and Performance Targets Summary of Each Segment of the azbil Group CAGR Business strategy and priority measures * For details, refer to pp.14-17. FY2024 FY2027 (compared to FY2024) Net sales 285.7 billion yen 340.0 billion yen 5.8 % azbil Aim to achieve further expansion thr
Slide 14: Building Automation (BA) Business
5-4. Business Strategy and Performance Targets Building Automation (BA) Business Expand domestic market; increase revenue in overseas market; strengthen product development FY2021-2024 achievements * Previous medium-term plan, May 2021 (Billion of yen) Sales (Billion of yen) Segment profit Bolstered
Slide 15: Advanced Automation (AA) Business
5-4. Business Strategy and Performance Targets Advanced Automation (AA) Business Accelerate global business expansion; create new automation; strengthen profitability FY2021-2024 achievements * Previous medium-term plan, May 2021 (Billion of yen) Sales (Billion of yen) Segment profit Profitability i
Slide 16: Life Automation (LA) Business
5-4. Business Strategy and Performance Targets Life Automation (LA) Business Achieve growth through synergy between smart meters and smart metering as a service; restructure the business portfolio Sales Segment profit FY2021-2024 achievements * Previous medium-term plan, May 2021 (Billion of yen) (B
Slide 17: Overseas Business
5-4. Business Strategy and Performance Targets Overseas Business Accelerate overseas business growth through business promotion and a strong management system tailored to regional characteristics FY2021-2024 achievements * Previous medium-term plan, May 2021 (Billions of yen) 80.0 40.0% We achieved
Slide 18: Initiatives to Strengthen the Management Foundation
5-5. Initiatives to Strengthen the Management Foundation To achieve sustainable growth, we implement a variety of measures, ranging from the setting up of new organizations/systems to creating mechanisms for management that is conscious of the cost of capital. We also practice sustainability manag
Slide 19: Increase Profits and Enhance Profitability
5-5. Initiatives to Strengthen the Business Foundation Increase Profits and Enhance Profitability We will enhance the profitability of our BA, AA and LA businesses through improvements of business mix and costs as well as selling price optimization including cost pass-throughs, while optimizing our
Slide 20: Investments Utilizing Balance Sheet (B/S)
5-5. Initiatives to Strengthen Management Foundation Investments Utilizing Balance Sheet (B/S) Achieve the next stage of growth through fostering the growth of existing businesses and investing in new ventures by the strategic allocation of assets and liabilities B/S at the end of previous fiscal ye
Slide 21: New Medium-term Plan (Summary)
6. New Medium-term Plan (Summary) Under the new medium-term plan (FY2025-2027), with its key themes of “Evolution” and “Co-creation”, Long-term while actively making necessary investments in human capital, etc., we will achieve, with azbil’s targets unique business model, both expanded sales and i
Slide 22: Appendix
Appendix © Azbil Corporation. All rights reserved. 22
Slide 23: The azbil Group's Sustainability Management
Appendix 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 se
Slide 24: Decarbonization Transition Plan
Appendix 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 has
Slide 25: Further Strengthen Corporate Governance (1): Transition to a New Board Structure
Appendix Further Strengthen Corporate Governance (1): Transition to a New Board Structure Aiming to further strengthen the independence and supervisory function of Board of Directors before June, 2022: Operated as a company with an audit & supervisory board June, 2022: Transitioned to a compan
Slide 26: Further Strengthen Corporate Governance (2): Revision of the Remuneration Policy for Officers
Appendix Further Strengthen Corporate Governance (2): Revision of the Remuneration Policy for Officers Further motivate corporate executives to achieve medium- and long-term performance targets and enhance the enterprise value Expansion of the performance-linked Revision of key performance indicator
Slide 27: Notes (1)
Notes (1) 1. Financial data and financial statements have been prepared based on Japanese GAAP and the amounts have been rounded down. Figures for core and growth businesses are approximative estimates of the Company. 2. The following are the azbil Group’s segments (each identified by abbreviation)
Slide 28: 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 29: 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 30: IR Inquiries and Disclaimer
IR Inquiries and Disclaimer Inquiries regarding investor relations Azbil Corporation Investor Relations Phone: +81-3-6810-1031 Website: https://www.azbil.com/index.html Email: azbil-ir@azbil.com Disclaimer The projections are based on management’s assumptions, intent and expectations in light of the