Slide 1: Presentation Materials for the First Half Ended September 30, 2018
Azbil Corporation RIC: 6845.T, Sedol: 6985543 Human-centered Automation Presentation Materials For the First Half Ended September 30, 2018 (Based on Japanese GAAP) <Contents> 1. Financial Results for the First Half Ended September 30, 2018 2. Financial Plan for the Fiscal Year Ending March 31, 2019
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. The following are the Group’s segments (each identified by abbreviation) together with the various sub-segments and their principal business focus. B A ： Building Au
Slide 3: 1. Financial Results for the First Half Ended September 30, 2018
1. Financial Results for the First Half Ended September 30, 2018 3
Slide 4: Consolidated Financial Results
1. Financial Results for the First Half Ended September 30, 2018 Consolidated Financial Results Orders received decreased owing mainly to the fact that there were large-scale projects in the same period last year. Compared with the same period last year, sales for the AA and LA businesses grew stead
Slide 5: Segment Information - BA Business
1. Financial Results for the First Half Ended September 30, 2018 Segment Information - ■ BA Business Benefitting from a robust business environment in Japan and abroad, we made efforts to secure orders with a view to enhanced profitability. At the same time, we have striven to enhance job fulfillmen
Slide 6: Segment Information - AA Business
1. Financial Results for the First Half Ended September 30, 2018 Segment Information - ■ AA Business Operations for the three AA business sub-segments*1 have been streamlined, and measures to achieve business growth and strengthen business profitability have been implemented. We are also developing
Slide 7: Segment Information - LA Business
1. Financial Results for the First Half Ended September 30, 2018 Segment Information - ■ LA Business The Lifeline field (gas/water meters, etc.) is a relatively stable business environment since it is focused on meeting the cyclical meter replacement demand, as required by law. On the other hand, in
Slide 8: [Reference] Orders Received by Segment
1. Financial Results for the First Half Ended September 30, 2018 [Reference] Orders Received by Segment [Billions of yen] 175.0 150.0 125.0 100.0 75.0 50.0 25.0 0.0 FY2015 FY2016 *2 FY2017 *2 FY2018 *2 H1 H2 H1 H2 H1 H2 H1 ■BA 85.5 *1 48.3 76.6 43.4 73.2 44.5 75.2 ■AA 50.1 44.7 46.3 47.0 52.2 49.5 5
Slide 9: [Reference] Sales by Segment
1. Financial Results for the First Half Ended September 30, 2018 [Reference] Sales by Segment [Billions of yen] 175.0 150.0 125.0 100.0 75.0 50.0 25.0 0.0 FY2015 FY2016 FY2017 FY2018 H1 H2 H1 H2 H1 H2 H1 * ■BA 48.1 70.6 49.4 66.9 50.8 69.3 49.5 ■AA 43.6 49.8 46.0 49.4 46.2 51.0 47.7 ■LA 22.7 22.9 22
Slide 10: [Reference] Segment Profit (Operating Income)
1. Financial Results for the First Half Ended September 30, 2018 [Reference] Segment Profit (Operating Income) [Billions of yen] 17.5 15.0 12.5 10.0 7.5 5.0 2.5 0.0 (2.5) FY2015 FY2016 FY2017 FY2018 H1 H2 H1 H2 H1 H2 H1 * ■BA 1.7 10.3 1.6 9.8 2.3 10.2 1.1 ■AA 1.5 3.4 2.5 4.6 4.5 5.4 5.8 ■LA 0.2 (0.1
Slide 11: Overseas Sales by Region
1. Financial Results for the First Half Ended September 30, 2018 Overseas Sales by Region [Billions of yen] <Compared to the same period last year> 25.0 25.0% Overseas sales increased by 12.2% compared with the same period last year, 20.0 20.0% with revenue growth in Asia, China, North America and E
Slide 12: Consolidated Financial Position
1. Financial Results for the First Half Ended September 30, 2018 Consolidated Financial Position Seasonal factors affecting business typically lead to a decrease in the azbil Group's assets and liabilities at the end of the first half when compared to the end of the previous fiscal year. ■ Assets Ow
Slide 13: Consolidated Cash Flows
1. Financial Results for the First Half Ended September 30, 2018 Consolidated Cash Flows ■ Cash flows from operating activities were lower as a result of increased payments of income tax, etc. In investing activities, the continued capital investment required for the integration and expansion of dom
Slide 14: 2. Financial Plan for the Fiscal Year Ending March 31, 2019
2. Financial Plan for the Fiscal Year Ending March 31, 2019 14
Slide 15: Consolidated Financial Plan
2. Financial Plan for the Fiscal Year Ending March 31, 2019 Consolidated Financial Plan Taking into account the financial results for the first half and the business outlook for the second half, net sales and operating income for the whole fiscal year are expected to be in line with the figures anno
Slide 16: Plan by Segment (1)
2. Financial Plan for the Fiscal Year Ending March 31, 2019 Plan by Segment (1) Regarding each segment, while there are changes in the business environment, we aim to achieve the initial plan (announced in May 2018) by steadily implementing appropriate measures. [Billions of yen] FY2018 Difference P
Slide 17: Plan by Segment (2)
2. Financial Plan for the Fiscal Year Ending March 31, 2019 Plan by Segment (2) BA Steadily processing projects expected to contribute to second half sales, so as to achieve the sales and profit targets Thanks to a robust business environment, projects on order that will contribute to second half sa
Slide 18: [Reference] Sales by Segment
2. Financial Plan for the Fiscal Year Ending March 31, 2019 [Reference] Sales by Segment [Billions of yen] 300.0 200.0 100.0 0.0 FY2015 FY2016 FY2017 FY2018 (Plan) ■ B A 118.8 116.4* 120.2 122.0 ■ A A 93.5 95.4 97.2 100.0 ■ L A 45.6 44.1 44.2 46.5 Consolidated 256.8 254.8 260.3 267.0 * Figures for t
Slide 19: [Reference] Segment Profit (Operating Income)
2. Financial Plan for the Fiscal Year Ending March 31, 2019 [Reference] Segment Profit (Operating Income) [Billions of yen] 30.0 20.0 10.0 0.0 FY2015 FY2016 FY2017 FY2018 (Plan) ■ B A 12.0 11.5 * 12.5 13.0 ■ A A 5.0 7.2 9.9 11.0 ■ L A 0.0 1.4 1.5 2.0 Consolidated 17.1 20.1 24.0 26.0 * Figures for th
Slide 20: 3. Returning Profits to Shareholders
3. Returning Profits to Shareholders Basic policy We will develop well-disciplined capital policies and aim to Promoting maintain/enhance azbil's enterprise value while carefully balancing shareholder among three key elements: promoting shareholder returns, investing returns in growth, and maintaini
Slide 21: FY2018 Capital Policy
3. Returning Profits to Shareholders FY2018 Capital Policy While striving to make further progress in promoting shareholder returns, we have implemented a stock split for the purpose of increasing share liquidity. May 11, 2018: Dividends increase and repurchase of own shares announced Reflecting the
Slide 22: Dividends
3. Returning Profits to Shareholders Dividends *1 FY2018 Dividends Plan (No change) (November 2, 2018) Interim dividends : 46 yen per share *1 Year-end dividends (planned) : 23 yen per share (Pre-split conversion 46 yen) *1 The interim dividends per share are issued based on the number of shares hel
Slide 23: [Reference] Trends of Return to Shareholders
3. Returning Profits to Shareholders [Reference] Trends of Return to Shareholders The dividends per share and the number of own shares repurchased have been retroactively revised, taking into account the effects of the stock split. [yen] [％] Dividends per share [yen] Dividends on equity [%] 50 5.0 4
Slide 24: 4. Progress in Implementing the Medium-term Plan (FY2017-FY2019)
4. Progress in Implementing the Medium-term Plan (FY2017-FY2019) 24
Slide 25: Policies & Goals of the Medium-term Plan (FY2017-FY2019)
4. 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 sustained growth that includes starting up new business fields, aiming to achieve the growth required to meet
Slide 26: Progress of Business Measures
4. Progress in Implementing the Medium-term Plan Progress of Business Measures BA Strengthening our relationship with customers in Japan and abroad throughout the life cycle Building Automation Business With demand continuing at a high level, progress is being made with upgraded systems to ensure
Slide 27: Upgrading and strengthening the business foundation
4. Progress in Implementing the Medium-term Plan Upgrading and strengthening the business foundation Image of Azbil Shonan Factory (scheduled for Establishing an advanced global production system completion in 2019) Progress is being made with consolidating production functions at the Shonan facto
Slide 28: azbil Group Corporate Governance Reforms
4. Progress in Implementing the Medium-term Plan azbil Group Corporate Governance Reforms We continue initiatives to secure greater objectivity and transparency in accord with the intent of Japan’s revised Corporate Governance Code. Regarding the June 2018 Strengthening corporate governance in 2018:
Slide 29: Upcoming Trade Shows
[Reference] Upcoming Trade Shows New products and services featured here can be seen at the following events. Dates: Nov. 7 (Wed) to 9 (Fri), 2018 Open: 10am to 5pm Venue: Grand Cube Osaka (Osaka Prefecture International Convention Center, Nakanoshima) 3F & 10F Azbil booth (No. 3-54) theme/exhibits
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 ■ Capital Expenditure, Depreciation ■ R&D Expenses, R&D Expenses/Net Sales [Billions of yen] [Billions of yen] 9.0 12.5 5.0% 8.0 10.0 4.0% 7.0 6.0 7.5 3.0% 5.0 5.6 4.0 3.7 5.0 2.0% 3.0 2.0 2.0 2.5 1.0% 1.0 0.0 0.0 0.0% FY2015 FY
Slide 32: 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 33: 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” Investor Relations, Group Management Headquarters Email: azbil-ir@azbil.com URL: https://www.azbil.com/ir/ 33