Slide 1: Analyst Meeting Materials for FY2013
Human-centered Automation Azbil Corporation RIC: 6845.T, Sedol: 6985543 Analyst Meeting Materials For FY2013 ended March 31, 2014 (Japan GAAP) <Contents> 1. Financial Results for FY2013 Ended March 31, 2014 2. Financial Plan for FY2014, Ending March 31, 2015 3. Return to Shareholders 4. Progress of
Slide 2: Notes
Notes: 1. Financial data and financial statements have been prepared based on Japan 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. Each segment amounts include internal transactions b
Slide 3: 1. Financial Results for FY2013 Ended March 31, 2014
1. Financial Results for FY2013 Ended March 31, 2014 3
Slide 4: Consolidated Financial Results
1. Financial Results for FY2013 Ended March 31, 2014 Consolidated Financial Results ■ Orders Compared to the previous fiscal year, all businesses grew overseas and in Japan. The LA business recorded significant growth following the consolidation of Azbil Telstar. Received ■ Net sales Compared to the
Slide 5: Segment Information – BA Business
1. Financial Results for FY2013 Ended March 31, 2014 Segment Information – ■ BA Business ■ Orders Compared to the previous fiscal year, orders increased as a result of increased demand for energy saving Received in the domestic market for existing buildings, driven mainly by proposals for optimizati
Slide 6: Segment Information – AA Business
1. Financial Results for FY2013 Ended March 31, 2014 Segment Information – ■ AA Business Both overseas and in Japan, orders received were up on the previous fiscal year. Attractive solutions were ■ Orders made to domestic equipment manufacturers, and also the overseas business grew mainly in Asia, C
Slide 7: Segment Information – LA Business
1. Financial Results for FY2013 Ended March 31, 2014 Segment Information – ■ LA Business ■ Orders Orders grew in the fields making up the LA business, especially the new LSE field Note1). Overall, there was significant growth. Received ■ Sales Overall sales were up significantly on the previous year
Slide 8: [Reference] Orders Received by Segment
1. Financial Results for FY2013 Ended March 31, 2014 [Reference] Orders Received by Segment 300.0 [Billions of yen] 200.0 100.0 0.0 Fiscal year 2010 2011 2012 2013 ■BA 97.2 Note1) 113.3 105.7 108.4 ■AA 82.9 89.8 86.6 93.1 ■LA 32.7 32.4 Note2) 40.1 52.6 ■ Other 6.1 0.0 0.0 0.0 Consolidated 217.3 233.
Slide 9: [Reference] Sales by Segment
1. Financial Results for FY2013 Ended March 31, 2014 [Reference] Sales by Segment 300.0 [Billions of yen] 200.0 100.0 0.0 Fiscal year 2010 2011 2012 2013 ■BA 102.1 103.8 107.4 109.5 ■AA 80.9 88.8 87.6 90.8 ■LA 32.6 32.5 33.9 49.5 ■ Other 5.1 0.0 0.0 0.0 Consolidated 219.2 223.4 227.5 248.4 9
Slide 10: [Reference] Segment Profit (Operating Income)
1. Financial Results for FY2013 Ended March 31, 2014 [Reference] Segment Profit (Operating Income) 20.0 [Billions of yen] 15.0 10.0 5.0 0.0 (5.0) Fiscal year 2010 2011 2012 2013 ■BA 11.7 10.3 10.1 10.5 ■AA 3.2 4.1 3.6 3.9 ■LA (0.2) (0.1) (0.3) (0.6) ■ Other 0.1 (0.0) 0.0 0.0 Consolidated 14.8 14.3 1
Slide 11: Overseas Sales by Region
1. Financial Results for FY2013 Ended March 31, 2014 Overseas Sales by Region 50.0 25.0% [Billions of yen] Significant growth resulted from the 40.0 20.0% addition to the LA business of LSE 30.0 15.0% operations in Europe, Asia and other regions (including 20.0 10.0% Central & South America). 10.0
Slide 12: Consolidated Financial Position
1. Financial Results for FY2013 Ended March 31, 2014 Consolidated Financial Position ■ Assets Assets rose by 10.0 billion yen compared to the previous year. This was because (1) cash and deposits increased because the last day of the previous period was a national holiday; (2) Inventories increased
Slide 13: Consolidated Cash Flows
1. Financial Results for FY2013 Ended March 31, 2014 Consolidated Cash Flows ■ Net cash provided by operating activities was largely unchanged from the previous fiscal year, but net cash provided by investing activities was up on the previous year, when there were expenditures related to subsidiary
Slide 14: 2. Financial Plan for FY2014, Ending March 31, 2015
2. Financial Plan for FY2014, Ending March 31, 2015 14
Slide 15: Consolidated Financial Plan
1. Financial Plan for FY2014, Ending March 31, 2015 Consolidated Financial Plan ■ In view of the fact that orders were robust in the previous fiscal year, domestic & overseas business growth is forecast, benefiting from the improved business foundation. ■ As for domestic business, we will exploit tr
Slide 16: Segment Information
2. Financial Plan for FY2014, Ending March 31, 2015 Segment Information ■ B A Overall increases in revenue and profits are projected, based on expected growth in the domestic markets for new and existing buildings, and also the fact that expansion is forecast for local building markets overseas. ■ A
Slide 17: [Reference] Sales by Segment
2. Financial Plan for FY2014, Ending March 31, 2015 [Reference] Sales by Segment 300.0 [Billions of yen] 200.0 100.0 0.0 Fiscal year 2011 2012 2013 2014 (Plan) ■ B A 103.8 107.4 109.5 114.0 ■ A A 88.8 87.6 90.8 95.0 ■ L A 32.5 33.9 49.5 53.0 Consolidated 223.4 227.5 248.4 260.0 17
Slide 18: [Reference] Segment Profit (Operating Income)
2. Financial Plan for FY2014, Ending March 31, 2015 [Reference] Segment Profit (Operating Income) 20.0 [Billions of yen] 15.0 10.0 5.0 0.0 (5.0) Fiscal year 2011 2012 2013 2014 (Plan) ■ B A 10.3 10.1 10.5 11.1 ■ A A 4.1 3.6 3.9 4.6 ■ L A (0.1) (0.3) (0.6) (0.2) Consolidated 14.3 13.4 13.9 15.5 18
Slide 19: 3. Return to Shareholders
azbil 3. Return to Shareholders 19
Slide 20: Dividends Plan
3. Return to Shareholders Dividends Plan ■ Putting priority on the interests of our shareholders, we will maintain a stable dividend while working to improve both consolidated business performance and capital net income and net asset dividend rates. ■ Dividends for FY2013 (year-end) Note) and FY2014
Slide 21: 4. Progress of the Medium-term Plan (FY2013 - 2016)
4. Progress of the Medium-term Plan (FY2013 - 2016) 21
Slide 22: Outline of the Medium-term Plan
4. Progress of the Medium-term Plan(FY2013 - 2016) Outline of the Medium-term Plan Target for FY2016 Net sales ¥280.0 billion, Operating income ¥22.0 billion Guided by the philosophy of “human-centered automation” Aiming to become a long-term partner for both the customer and the community through
Slide 23: The First Year (FY2013)
4. Progress of the Medium-term Plan(FY2013 - 2016) The First Year （FY2013） Achieved the financial plan by implementing steadily measures. . Business reforms in Implementing the domestic market Global expansion organizational reforms FY2021 Orders received increased due to business reforms in the
Slide 24: BA Building Automation Business
4. Progress of the Medium-term Plan(FY2013 - 2016) BA Building Automation Business Sales [Billions of yen] 120.0 Business Segment Profit 114.0 environment 107.4 109.5 • Demand for refurbishments and maintenance service based on our long track record will be stable. • Rising electricity costs, etc. w
Slide 25: AA Advanced Automation Business
4. Progress of the Medium-term Plan(FY2013 - 2016) AA Advanced Automation Business Business Sales [Billions of yen] 105.0 Segment profit environment 95.0 • Although the domestic market is mature, there is new demand 90.8 87.6 in the energy and safety fields and for high value-added equipment and fac
Slide 26: AA Business – azbil's market development
4. Progress of the Medium-term Plan(FY2013 - 2016) AA Business – azbil’s market development Leveraging azbil’s unique strengths – wide product lineup, multifaceted customer contacts, lifecycle support capabilities ranging from engineering to maintenance service – we will develop markets with potenti
Slide 27: LA Life Automation Business
4. Progress of the Medium-term Plan(FY2013 - 2016) LA Life Automation Business Sales Segment Profit 53.0 [Billions of yen] 56.0 Business 49.5 environment • Develop stable and/or growth fields with demand cycles that differ from those of the BA and AA businesses (dependent on 33.9 capital investment)
Slide 28: LA Business – Global business reforms
4. Progress of the Medium-term Plan(FY2013 - 2016) LA Business – Global business reforms ■ Life Science Engineering business By combining Azbil Telstar’s production process expertise and equipment technology with azbil’s automation technologies, this solution business aims to offer customers – speci
Slide 29: Global Expansion - new regions and a qualitative change of focus
4. Progress of the Medium-term Plan(FY2013 - 2016) Global Expansion - new regions and a qualitative change of focus - [Billions of yen] Overseas sales Expansion Establish local subsidiaries; upgrade 46.1 Overseas sales / into new development & engineering capabilities Net sales regions and create a
Slide 30: Global production, procurement, logistics and R&D system
4. Progress of the Medium-term Plan(FY2013 - 2016) Aiming to become a corporate organization that never stops learning so that it can continuously strengthen its corporative structure. Develop an optimal production/ procurement/ logistics system globally, while bolstering customization capabilities
Slide 31: Human resource training and reassignment
4. Progress of the Medium-term Plan(FY2013 - 2016) Aiming to become a corporate organization that never stops learning so that it can continuously strengthen its corporative structure. Progress with human resource training and reassignment to support business development globally, including Japan. H
Slide 32: CSR Management
4. Progress of the Medium-term Plan(FY2013 - 2016) CSR Management Providing opportunities for creative activities and growth through putting the Group Employees, philosophy into action Presenting all stakeholders with Partners Emphasis on shareholders the “human-centered” azbil Business management
Slide 33: Summary
4. Progress of the Medium-term Plan(FY2013 - 2016) Summary Aiming at global growth, in Japan and abroad Steady response to market and structural changes in Japan System to ensure flexible response based on coordination between businesses; solutions that harness the azbil Group’s customer contact p
Slide 34: Relevant Information
azbil Relevant Information 34
Slide 35: 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 8.0 10.0 4.0% 6.0 7.5 3.0% 4.0 5.0 2.0% 2.0 2.5 1.0% 0.0 0.0 0.0% Fiscal year 2011 2012 2013 2014 Fiscal year 2011 2012 2013 2014 （ Pla
Slide 36: azbil Group Philosophy “human-centered automation”
azbil Group Philosophy To realize safety, comfort, and fulfillment in people’s lives and contribute to global environmental preservation through “human-centered automation” 36