Azbil Corporation · TSE:6845
Azbil — Q3 FY2023 Earnings Presentation
34 slides from Azbil's earnings presentation, Feb 8, 2024
Slide 1: Presentation Materials for the Third Quarter of Fiscal Year 2023
Presentation Materials for the Third Quarter of Fiscal Year 2023 (Ending March 31, 2024) (Based on Japanese GAAP) February 8, 2024 Azbil Corporation RIC: 6845.T, Sedol: 6985543 © Azbil Corporation. All rights reserved.
Slide 2: Condolences for the 2024 Noto Peninsula Earthquake
We would like to extend our deepest condolences to those who have lost loved ones in the 2024 Noto Peninsula Earthquake and express our heartfelt sympathy to all who have been affected by this disaster. The azbil Group is providing support to those who are suffering as a result of this disaster. Our
Slide 3: Highlights
Highlights 1. Consolidated Financial Results for the Cumulative Third Quarter of FY2023 Orders received declined owing to stagnation of the factory automation (FA) market and other factors. However, thanks to strengthened procurement and production capabilities, the order backlog was steadily conver
Slide 4: Contents
Contents 1. Consolidated Financial Results for the Cumulative Third Quarter of FY2023 5 2. Consolidated Financial Plan for FY2023 13 →No revision from the most recent announcement on November 7, 2023 3. Returning Profits to Shareholders 17 →No revision from the initial announcement on May 12, 2023 A
Slide 5: 1. Consolidated Financial Results for the Cumulative Third Quarter of FY2023
1. Consolidated Financial Results for the Cumulative Third Quarter of FY2023 © Azbil Corporation. All rights reserved. 5
Slide 6: Consolidated Financial Results
1. Consolidated Financial Results for the Cumulative Third Quarter of FY2023 Consolidated Financial Results Orders received decreased compared with the same period of FY2022 mainly because of a fall in the AA business due to a continuing slump in the FA market. Net sales rose thanks to increased
Slide 7: Financial Results by Segment
1. Consolidated Financial Results for the Cumulative Third Quarter of FY2023 Financial Results by Segment Orders received decreased in the AA business due to continuing sluggishness in the FA market; as for the BA business, despite a robust business environment, orders received were at a similar l
Slide 8: Segment Information: BA Business
1. Consolidated Financial Results for the Cumulative Third 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 and for heating, ventilation, and air conditioning (HVAC)
Slide 9: Segment Information: AA Business
1. Consolidated Financial Results for the Cumulative Third Quarter of FY2023 Segment Information: AA Business Our view of the business environment — In the FA market, conditions remain sluggish in the manufacturing equipment market, but progress is being made with adjusting inventory, which had expa
Slide 10: Segment Information: LA Business
1. Consolidated Financial Results for the Cumulative Third 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 c
Slide 11: Overseas Sales by Region
1. Consolidated Financial Results for the Cumulative Third Quarter of FY2023 Overseas Sales by Region Overseas sales increased by 11.8% from the same period of FY2022 and accounted for 23.9% of net sales. The BA business achieved considerable sales growth, principally in Asia. Owing to sluggish
Slide 12: Consolidated Financial Position
1. Consolidated Financial Results for the Cumulative Third Quarter of FY2023 Consolidated Financial Position Inventories increased owing to measures to secure parts/materials and strengthen our capabilities for procurement, while investment securities also increased due to the rise in market value
Slide 13: 2. Consolidated Financial Plan for FY2023
2. Consolidated Financial Plan for FY2023 →No revision from the most recent announcement on November 7, 2023 © Azbil Corporation. All rights reserved. 13
Slide 14: Consolidated Financial Plan
2. Consolidated Financial Plan for FY2023 Consolidated Financial Plan There is no change to the revised plan that was announced on November 7, 2023. The business environment differs by segment; for example, in the BA business demand has been firm for office buildings and other fields, while the AA b
Slide 15: Financial Plan by Segment (1)
2. Consolidated Financial Plan for FY2023 Financial Plan by Segment (1) ■BA: Against the backdrop of a robust business environment, we will convert our large order backlog into sales by making steady progress with job execution. We thus expect to achieve sales and segment profit in line with the rev
Slide 16: Financial Plan by Segment (2)
2. Consolidated Financial Plan for FY2023 Financial Plan by Segment (2) Against the backdrop of a robust business environment, we will convert our large order backlog into sales by making BA steady progress with job execution. We thus expect to achieve sales and segment profit in line with the revis
Slide 17: 3. Returning Profits to Shareholders
3. Returning Profits to Shareholders →No revision from the initial announcement on May 12, 2023 © Azbil Corporation. All rights reserved. 17
Slide 18: 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 Basic policy In accordance with our basic policy—promoting shareholder returns, investment for growth and sound financial base—we have completed our repurchase of the Company’s own st
Slide 19: 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) (%) 80.0 Dividend per share Dividend on equity (DOE) 4.7 5.0 (plan) 75.0 4.4 70.0 4.5 4.2 65.0 4.0 3.9 60.0 4.0 3
Slide 20: Appendix I Financial Data
Appendix I Financial Data • Performance Trend by Segment ・・・21 • Capital Investment, Depreciation and R&D Expenses ・・・25 © Azbil Corporation. All rights reserved. 20
Slide 21: Performance Trend by Segment: Orders Received
Appendix I Financial Data Performance Trend by Segment: Orders Received ■ Comparison to past results (Q1-3) ■ Quarterly (3 months) (Billions of yen) (Billions of yen) 250.0 100.0 200.0 80.0 150.0 60.0 100.0 40.0 50.0 20.0 0.0 0.0 FY2020 FY2021 FY2022 FY2023 FY2022 FY2023 Q1-3 Q1-3 Q1-3 Q1-3 Q1 Q2 Q3
Slide 22: Performance Trend by Segment: Order Backlog
Appendix I Financial Data Performance Trend by Segment: Order Backlog ■ Comparison to past results ■ Quarterly (Billions of yen) (Billions of yen) 250.0 250.0 200.0 200.0 150.0 150.0 100.0 100.0 50.0 50.0 0.0 0.0 FY2020 FY2021 FY2022 FY2023 FY2022 FY2023 Q3 Q3 Q3 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 ■BA 78.6 87.
Slide 23: Performance Trend by Segment: Sales
Appendix I Financial Data Performance Trend by Segment: Sales ■ Comparison to past results (Q1-3) ■ Quarterly (3 months) (Billions of yen) (Billions of yen) 250.0 100.0 200.0 75.0 150.0 50.0 100.0 25.0 50.0 0.0 0.0 FY2020 FY2021 FY2022 FY2023 FY2022 FY2023 Q1-3 Q1-3 Q1-3 Q1-3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 ■B
Slide 24: Performance Trend by Segment: Segment Profit (Operating Income)
Appendix I Financial Data Performance Trend by Segment: Segment Profit (Operating Income) ■ Comparison to past results (Q1-3) ■ Quarterly (3 months) (Billions of yen) (%) (Billions of yen) (%) 25.0 25.0 17.5 35.0 15.0 30.0 20.0 20.0 12.5 25.0 10.0 20.0 15.0 15.0 7.5 15.0 10.0 10.0 5.0 10.0 2.5 5.0 5
Slide 25: 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/Q1-3 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 8.9 7.5 7.5 3.0 5.9 5.0
Slide 26: Appendix II Medium-term Plan and Sustainability Management
Appendix II Medium-term Plan and Sustainability Management © Azbil Corporation. All rights reserved. 26
Slide 27: 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 28: 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 so
Slide 29: Focus Points of Our Medium-term Plan—Transformation for Further Growth
Appendix II Medium-term Plan and Sustainability Management Focus Points of Our Medium-term Plan—Transformation for Further Growth Initiatives for transformation to achieve growth by tracking changing customer business models/demand—resulting from structural changes in the business environment—and ex
Slide 30: Initiatives to Strengthen Product Competitiveness
Appendix II Medium-term Plan and Sustainability Management Initiatives to Strengthen Product Competitiveness (from Azbil Corp. press release) Introduction of new products and services Press Release Date of announcement Cloud MT (Manager's Tool) enhances the efficiency of building management and
Slide 31: The azbil Group's Materiality and its Goals and Targets
Appendix II Medium-term Plan and Sustainability Management The azbil Group’s Materiality and its Goals and Targets 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 cyc
Slide 32: 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 33: Notes (2)
Notes (2) (from page 31) 1. Science-based targets: Greenhouse gas emission reduction targets based on scientific evidence 2. The azbil Group’s own sustainable design principles: This design is aimed at creating and providing products that contribute to solving global environmental issues (decarboniz
Slide 34: 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