Slide 1: Presentation Materials for the Second Quarter of Fiscal Year 2025
Presentation Materials for the Second Quarter of Fiscal Year 2025 (Ending March 31, 2026) (Based on Japanese GAAP) November 5, 2025 Azbil Corporation RIC: 6845.T, Sedol: 6985543 © Azbil Corporation. All rights reserved.
Slide 2: Highlights
Highlights 1. Consolidated Financial Results for the First Half of FY2025 Although orders received and net sales were lower compared with the same period of FY2024 due to the effect of the FY2024 transfer of a subsidiary, Azbil Telstar, operating income increased significantly thanks to higher pro
Slide 3: Contents
Contents 1. Consolidated Financial Results for the First Half of FY2025 4 2. Consolidated Financial Plan for FY2025 13 3. Returning Profits to Shareholders and Investing in Human Capital 17 4. Progress in Implementing the Medium-term Plan 20 5. The azbil Group’s Exhibition Participation 27 Appendix
Slide 4: 1. Consolidated Financial Results for the First Half of FY2025
1. Consolidated Financial Results for the First Half of FY2025 © Azbil Corporation. All rights reserved. 4
Slide 5: Consolidated Financial Results
1. Consolidated Financial Results for the First Half of FY2025 Consolidated Financial Results Although orders received and net sales were lower compared with the same period of FY2024 due to the effect of the FY2024 transfer of a subsidiary, operating income increased significantly thanks to higher
Slide 6: Financial Results by Segment
1. Consolidated Financial Results for the First Half of FY2025 Financial Results by Segment （Billions of yen） （Billions of yen） ■ BA: Orders received increased compared with the same period of FY2024 FY2025 Difference Plan Difference FY2024, mainly due to growth in the field for existing buildings.
Slide 7: Segment Information: BA Business
1. Consolidated Financial Results for the First Half of FY2025 Segment Information: BA Business Business environment — In the domestic market, demand for new office buildings in urban redevelopment projects has leveled off at present; however, the market outlook is robust and demand is expected to c
Slide 8: Segment Information: AA Business
1. Consolidated Financial Results for the First Half of FY2025 Segment Information: AA Business Business environment — In the process automation (PA) market, demand centering on domestic maintenance and refurbishment has remained firm. — In the factory automation (FA) market, although signs of recov
Slide 9: Segment Information: LA Business
1. Consolidated Financial Results for the First Half of FY2025 Segment Information: LA Business Business environment — In the Lifeline field for gas and water meters, sales partly depend on the LP gas meter market, which exhibits cyclical fluctuations in demand. However, demand centering on city gas
Slide 10: Overseas Sales by Region
1. Consolidated Financial Results for the First Half of FY2025 Overseas Sales by Region Overseas sales fell mainly due to the impact (a decrease of 9.9 billion yen) of the FY2024 transfer of a subsidiary, Azbil Telstar (ATL). The overseas sales ratio was 18.2%. (The tables and graph below show ATL
Slide 11: Consolidated Financial Position
1. Consolidated Financial Results for the First Half of FY2025 Consolidated Financial Position Assets: Trade receivables decreased because net sales concentrated in the fourth quarter and collections progressed in the first half. Liabilities: Long-term borrowings increased due to borrowing for a
Slide 12: Consolidated Cash Flows
1. Consolidated Financial Results for the First Half of FY2025 Consolidated Cash Flows Cash flow from operating activities was almost on a par with the same period of FY2024. Net cash used in investing activities was 3.6 billion yen; while there was income in the same period of FY2024 from the sal
Slide 13: 2. Consolidated Financial Plan for FY2025
2. Consolidated Financial Plan for FY2025 —Revised upwards from the initial plan announced on May 13, 2025— © Azbil Corporation. All rights reserved. 13
Slide 14: Consolidated Financial Plan
2. Consolidated Financial Plan for FY2025 Consolidated Financial Plan To reflect the financial results in the first half as well as the outlook for the business environment in the second half, we have revised our full-year financial plan for FY2025 upwards. Although net sales will slightly decrease
Slide 15: Financial Plan by Segment (1)
2. Consolidated Financial Plan for FY2025 Financial Plan by Segment (1) ■ BA: Based on our strong financial results for the first half, and against the backdrop of robust market conditions and a large order backlog, we anticipate second-half sales and segment profit will also be in line with the ini
Slide 16: Financial Plan by Segment (2)
2. Consolidated Financial Plan for FY2025 Financial Plan by Segment (2) Based on our strong financial results for the first half, and against the backdrop of robust market conditions and a large order backlog, BA we anticipate second-half sales and segment profit will also be in line with the initia
Slide 17: 3. Returning Profits to Shareholders and Investing in Human Capital
3. Returning Profits to Shareholders and Investing in Human Capital —No revision from the most recent announcement on May 13, 2025— © Azbil Corporation. All rights reserved. 17
Slide 18: Basic Policy and FY2025 Shareholder Returns, Investment in Human Capital
3. Returning Profits to Shareholders and Investing in Human Capital Basic Policy and FY2025 Shareholder Returns, Investment in Human Capital We plan to increase the dividend for the eleventh consecutive year, with an annual dividend of 26 yen per share for FY2025; DOE will improve further to reach 5
Slide 19: Trend of Shareholder Returns
3. Returning Profits to Shareholders and Investing in Human Capital Trend of Shareholder Returns In FY2025, it is planned to increase the annual dividend—for the eleventh consecutive year—by 2 yen to 26 yen per share from FY2024. Dividend per share Dividend on equity (DOE) (Yen) (%) 30 5.5 5.6 6.0
Slide 20: 4. Progress in Implementing the Medium-term Plan
4. Progress in Implementing the Medium-term Plan © Azbil Corporation. All rights reserved. 20
Slide 21: Medium-term Plan (FY2025–FY2027)
4. Progress in Implementing the Medium-term Plan Medium-term Plan (FY2025–FY2027) Under the medium-term plan (FY2025–FY2027), with its key theme of “Evolution and Co-creation,” while Long-term actively making necessary investments in human capital, etc., we will achieve, with azbil’s unique target
Slide 22: The azbil Group's Unique Business Model
4. Progress in Implementing the Medium-term Plan The azbil Group’s Unique Business Model We will achieve growth in core businesses based on our extensive customer base (factories and plants, commercial buildings, lifeline utilities) established over many years, and in our growth businesses, which
Slide 23: Business Strategies and Performance Targets: Summary of Each Segment
4. Progress in Implementing the Medium-term Plan Business Strategies and Performance Targets: Summary of Each Segment of the azbil Group While implementing a variety of measures to strengthen the unique business model of the azbil Group—tailored to the differing business environments and character
Slide 24: Initiatives to enhance product competitiveness and develop business
4. Progress in Implementing the Medium-term Plan Initiatives to enhance product competitiveness and develop business (excerpted from Azbil press releases) Progress is being made with measures in growth businesses and core businesses. New products are being launched, and we have a growing track rec
Slide 25: Initiatives to enhance product competitiveness and develop business
4. Progress in Implementing the Medium-term Plan Initiatives to enhance product competitiveness and develop business (excerpted from Azbil press releases) Recent installations at customer sites Press release Date of announcement Azbil’s online equipment-anomaly detection system delivered to four t
Slide 26: Initiatives to enhance product competitiveness and develop business
4. Progress in Implementing the Medium-term Plan Initiatives to enhance product competitiveness and develop business (excerpted from Azbil press releases) Business development initiatives involving business alliances and investments in other companies Press release Date of announcement Azbil to pr
Slide 27: 5. The azbil Group's Exhibition Participation
5. The azbil Group’s Exhibition Participation © Azbil Corporation. All rights reserved. 27
Slide 28: Introducing Automation Technologies and Products That Target Diverse Business Opportunities
5. The azbil Group’s Exhibition Participation Introducing Automation Technologies and Products That Target Diverse Business Opportunities in Japan and Overseas At trade shows related to our BA, AA and LA businesses, you IIFES2025 can see products and services unique to the azbil Group. Event dates
Slide 29: Appendix I: Financial Data
Appendix I Financial Data • Performance Trend by Segment ・・・30 • Capital Investment, Depreciation and R&D Expenses ・・・32 © Azbil Corporation. All rights reserved. 29
Slide 30: Performance Trend by Segment: Orders Received and Order Backlog
Appendix I Performance Trend by Segment: Orders Received and Order Backlog ■ Orders received by segment ■ Order backlog by segment (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 FY2023 FY2024 FY2025 FY2023 FY2024 FY2025 H1 H2 H1 H2 H1 H1 H2 H1 H2 H1 ■BA 83.
Slide 31: Performance Trend by Segment: Sales and Segment Profit
Appendix I Performance Trend by Segment: Sales and Segment Profit ■ Sales by segment ■ Segment profit (operating income) (%) (Billions of yen) (Billions of yen) 200.0 30.0 25.0 25.0 20.0 150.0 20.0 15.0 15.0 100.0 10.0 10.0 5.0 50.0 5.0 0.0 0.0 FY2023 FY2024 FY2025 0.0 H1 H2 H1 H2 H1 FY2023 FY2024 F
Slide 32: Capital Investment, Depreciation and R&D Expenses
Appendix I Capital Investment, Depreciation and R&D Expenses ■ Capital investment, depreciation ■ R&D expenses Full-year results/ H1 results for FY2025 Full-year plan for FY2025 (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 5.8 2.0 3.9 3.6 2.5
Slide 33: Appendix II
Appendix II Initiatives to Strengthen Corporate Governance, Returning Profits to Shareholders, Investments, and Sustainability Management • Initiatives to Strengthen Corporate Governance ・・・34 • Returning Profits to Shareholders (FY2025 Annual Dividend Plan, Repurchase and Cancellation of Own Stock)
Slide 34: Strengthen Corporate Governance (1): Transition to a New Board Structure
Appendix II 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 company wit
Slide 35: Strengthen Corporate Governance (2): Revision of the Remuneration Policy for Officers
Appendix II Strengthen Corporate Governance (2): Revision of the Remuneration Policy for Officers (May 2025) * Revisions are highlighted in red. Further motivate corporate executives to achieve medium- and long-term performance targets and enhance the enterprise value under the medium-term plan Expa
Slide 36: Shareholder Returns (1): FY2025 Annual Dividend Plan
Appendix II Shareholder Returns (1): FY2025 Annual Dividend Plan FY2025 It is planned to increase the dividend by 2 yen per share, to make an annual dividend of dividend 26 yen per share, and DOE to improve to 5.6%. In FY2025, geopolitical risks and the U.S. reciprocal tariff policy will serve to
Slide 37: Shareholder Returns (2): Repurchase of Own Stock and Cancellation of Treasury Shares
Appendix II Shareholder Returns (2): Repurchase of Own Stock and Cancellation of Treasury Shares Repurchase of We have completed repurchase of the Company’s own stock of 10.83 million shares for own stock 14.9 billion yen. (Completed on October 10, 2025) Cancellation of treasury We have completed ca
Slide 38: Investment to Strengthen the Business Model
Appendix II 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 for executing business stra
Slide 39: The azbil Group's Materiality and its Own SDG Targets
Appendix II The azbil Group’s Materiality and its Own SDG Targets 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
Slide 40: 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 41: Notes (2)
Notes (2) 4. Essential Goals of the azbil Group for the 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 emissio
Slide 42: Notes (3)
Notes (3) 4. Essential Goals of the azbil Group for the 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 tenf
Slide 43: 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 IR Inquiry: https://form.azbil.com/form/pub/contact/azbil_form_e Disclaimer The projections are based on management’s assumptions,