Azbil Corporation · TSE:6845
Azbil — Q1 FY2023 Earnings Presentation
35 slides from Azbil's earnings presentation, Aug 8, 2023
Slide 1: Presentation Materials for the First Quarter of Fiscal Year 2023
Presentation Materials for the First Quarter of Fiscal Year 2023 (Ending March 31, 2024) (Based on Japanese GAAP) August 8, 2023 Azbil Corporation RIC: 6845.T, Sedol: 6985543 © Azbil Corporation. All rights reserved.
Slide 2: Highlights
Highlights 1. Consolidated Financial Results for the First Quarter of FY2023 Owing to a slump in the semiconductor market conditions and to the fact that this was a period when few multi-year service contracts were up for renewal, orders received declined. However, thanks to strengthened procurement
Slide 3: Contents
Contents 1. Consolidated Financial Results for the First Quarter of FY2023 4 2. Consolidated Financial Plan for FY2023 12 →No revision from the most recent announcement 3. Returning Profits to Shareholders 16 →No revision from the most recent announcement Appendix I Financial Data 21 Appendix II Med
Slide 4: 1. Consolidated Financial Results for the First Quarter of FY2023
1. Consolidated Financial Results for the First Quarter of FY2023 © Azbil Corporation. All rights reserved. 4
Slide 5: Consolidated Financial Results
1. Consolidated Financial Results for the First Quarter of FY2023 Consolidated Financial Results Orders received fell short of the high (Billions of yen) FY2022 FY2023 Difference level achieved in the same period of Q1 Q1 FY2022, when multi-year service (A) (B) (B) - (A) % Change contracts were re
Slide 6: Financial Results by Segment
1. Consolidated Financial Results for the First Quarter of FY2023 Financial Results by Segment Orders received decreased in the AA （Billions of yen） business due to a slump in the FY2022 FY2023 Difference semiconductor manufacturing Q1 Q1 equipment market; there was also a (A) (B) (B) - (A) % Chan
Slide 7: Segment Information: BA Business
1. Consolidated Financial Results for the First Quarter of FY2023 Segment Information: BA Business Our View of the Business Environment — In the domestic market, demand has continued at a high level for urban redevelopment projects in the Tokyo metropolitan area and for heating, ventilation, and air
Slide 8: Segment Information: AA Business
1. Consolidated Financial Results for the First Quarter of FY2023 Segment Information: AA Business Our View of the Business Environment — In the process automation market, demand centering on maintenance and refurbishment has remained strong. In the factory automation market, however, demand has dec
Slide 9: Segment Information: LA Business
1. Consolidated Financial Results for the First Quarter of FY2023 Segment Information: LA Business Our View of the 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. Though demand can be expec
Slide 10: Overseas Sales by Region
1. Consolidated Financial Results for the First Quarter of FY2023 Overseas Sales by Region Overseas sales increased by 14.3% from the same period of FY2022 and accounted for 23.8% of net sales. AA business sales grew significantly in Asia and China, mainly due to increased sales of field instrum
Slide 11: Consolidated Financial Position
1. Consolidated Financial Results for the First Quarter of FY2023 Consolidated Financial Position In addition to inventories, investment securities increased due to the rise in market value of shareholdings. However, trade receivables decreased because net sales concentrate in the fourth quarter a
Slide 12: 2. Consolidated Financial Plan for FY2023
2. Consolidated Financial Plan for FY2023 →No revision from the most recent announcement © Azbil Corporation. All rights reserved. 12
Slide 13: Consolidated Financial Plan
2. Consolidated Financial Plan for FY2023 Consolidated Financial Plan No change to the initial financial plan. Despite the uncertainty in some business environments, we plan to increase both net sales and operating income for the third consecutive fiscal year by making further progress with sustai
Slide 14: Financial Plan by Segment (1)
2. Consolidated Financial Plan for FY2023 Financial Plan by Segment (1) The business environment is different for each business, but we plan to increase revenue in the BA and AA businesses by making use of the order backlog at the start of FY2023. Profits for the AA and LA businesses are expecte
Slide 15: Financial Plan by Segment (2)
2. Consolidated Financial Plan for FY2023 Financial Plan by Segment (2) BA The domestic market will remain robust. Overseas markets are expected to recover and return to pre-pandemic levels. Based on the buildup in the order backlog at the start of FY2023, sales are expected to increase steadily
Slide 16: 3. Returning Profits to Shareholders
3. Returning Profits to Shareholders →No revision from the most recent announcement © Azbil Corporation. All rights reserved. 16
Slide 17: Plan to Further Improve Shareholder Returns in Accordance with the Basic Policy
3. Returning Profits to Shareholders Plan to Further Improve Shareholder Returns in Accordance with the Basic Policy In accordance with our basic policy—promoting shareholder returns, investment in growth and healthy financial foundation—we are repurchasing the Company’s own stock and will cancel tr
Slide 18: FY2023 Annual Dividend Plan
3. Returning Profits to Shareholders FY2023 Annual Dividend Plan FY2023 The Company plans to increase the annual dividend by 7 yen per share, to 73 yen per share. dividend Although the outlook for the business environment is uncertain, in FY2023 the plan calls for an increase in revenue and profit
Slide 19: Repurchase of Own Stock and Cancellation of Treasury Shares
3. Returning Profits to Shareholders Repurchase of Own Stock and Cancellation of Treasury Shares Repurchase of We are repurchasing the Company’s own stock up to a maximum of 10.0 billion yen (or 4.0 million shares). own stock * Progress of repurchase until July 31, 2023: 1,462,400 shares (6.5 billio
Slide 20: Trend of Shareholder Returns
3. Returning Profits to Shareholders Trend of Shareholder Returns In FY2023 it is planned to increase dividends for the ninth consecutive fiscal year. DOE is expected to be 4.7%. (Yen) (%) 4.7 80.0 Dividend per share Dividend on equity (DOE) (plan) 5.0 75.0 4.4 4.2 4.5 70.0 4.0 3.9 65.0 3.7 4.0 3.
Slide 21: Appendix I Financial Data
Appendix I Financial Data Performance Trend by Segment 22 Capital Investment, Depreciation and R&D Expenses 26 © Azbil Corporation. All rights reserved. 21
Slide 22: Performance Trend by Segment: Orders Received
Appendix I Financial Data Performance Trend by Segment: Orders Received ■ Orders received by segment (comparisons of Q1) ■ Orders received by segment (quarterly comparisons) (Billions of yen) (Billions of yen) 100.0 100.0 75.0 75.0 50.0 50.0 25.0 25.0 0.0 0.0 FY2020 FY2021 FY2022 FY2023 FY2022 FY202
Slide 23: Performance Trend by Segment: Order Backlog
Appendix I Financial Data Performance Trend by Segment: Order Backlog ■ Order backlog by segment (comparisons of Q1) ■ Order backlog by segment (quarterly comparisons) (Billions of yen) (Billions of yen) 200.0 200.0 150.0 150.0 100.0 100.0 50.0 50.0 0.0 0.0 FY2020 FY2021 FY2022 FY2023 FY2022 FY2023
Slide 24: Performance Trend by Segment: Sales
Appendix I Financial Data Performance Trend by Segment: Sales ■ Sales by segment (comparisons of Q1) ■ Sales by segment (quarterly comparisons) (Billions of yen) (Billions of yen) 100.0 100.0 75.0 75.0 50.0 50.0 25.0 25.0 0.0 0.0 FY2020 FY2021 FY2022 FY2023 FY2022 FY2023 Q1 Q1 Q1 Q1 Q1 Q2 Q3 Q4 Q1 ■
Slide 25: Performance Trend by Segment: Segment Profit
Appendix I Financial Data Performance Trend by Segment: Segment Profit ■ Segment profit (comparisons of Q1) ■ Segment profit (quarterly comparisons) (Billions of yen) (%) (Billions of yen) (%) 5.0 25.0 17.5 35.0 15.0 30.0 4.0 20.0 12.5 25.0 3.0 15.0 10.0 20.0 2.0 10.0 7.5 15.0 5.0 10.0 1.0 5.0 2.5 5
Slide 26: Capital Investment, Depreciation and R&D Expenses
Appendix I Financial Data Capital Investment, Depreciation and R&D Expenses ■ Capital investment, depreciation ■ R&D expenses Full-year results/Q1 results for FY2023 Full-year plan for FY2023 (Billions of yen) (Billions of yen) (%) 15.0 15.0 6.0 12.5 12.5 5.0 10.0 10.0 4.0 7.5 7.5 3.0 5.0 5.0 2.0 2.
Slide 27: Appendix II Medium-term Plan and Sustainability Management
Appendix II Medium-term Plan and Sustainability Management © Azbil Corporation. All rights reserved. 27
Slide 28: Long-term Targets and Medium-term Plan
Appendix II Medium-term Plan and Sustainability Management Long-term Targets and Medium-term Plan The azbil Group defines three growth fields—new automation, environment and energy, and life-cycle solutions—which share a common foundation of Long-term targets automation technology. Focusing on the g
Slide 29: Initiatives in Three Growth Fields and Application to Each Business Segment
Appendix II Medium-term Plan and Sustainability Management 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
Slide 30: Strengthening Investment in Human Capital to Realize Growth in the Three Growth Fields
Appendix II Medium-term Plan and Sustainability Management Strengthening Investment in Human Capital to Realize Growth in the Three Growth Fields The azbil Group’s approach to sustainability management The azbil Group is committed to continuously enhancing enterprise value, to realizing “safety, com
Slide 31: Medium-term Plan: Initiatives in the First Quarter
Appendix II Medium-term Plan and Sustainability Management Medium-term Plan: Initiatives in the First Quarter (from Azbil Corp. press release) Developing technologies and enhancing product competitiveness through collaborative creation with our partners May 22, 2023: Azbil and the Indian Institute
Slide 32: Goals and Targets of the azbil Group's Materiality
Appendix II Medium-term Plan and Sustainability Management Goals and Targets of the azbil Group’s Materiality The azbil Group has established five categories and ten items of the materiality and has set unique and specific SDGs targets to achieve them. By placing the targets on a management cycle th
Slide 33: 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 34: Notes (2)
Notes (2) (from page 32) 1. Science-based targets: Greenhouse gas emission reduction targets that are consistent with scientific evidence. 2. The azbil Group’s own sustainable design principles: This design strives to create and provide products that contribute to solving global environmental issues
Slide 35: 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