Slide 1: Analyst Meeting Materials
Human-centered Automation Azbil Corporation RIC: 6845.T, Sedol: 6985543 Analyst Meeting Materials For the First Half Ended September 30, 2014 (Japan GAAP) <Contents> 1. Financial Results for the First Half Ended September 30, 2014 2. Financial Plan for the Year Ending March 31, 2015 3. Return to Sha
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 the First Half Ended September 30, 2014
1. Financial Results for the First Half Ended September 30, 2014 2
Slide 4: Consolidated Financial Results
1. Financial Results for the First Half Ended September 30, 2014 Consolidated Financial Results ■ Compared to the plan (5/12/2014) Both overall sales and operating income were in line with the plan. Ordinary income and net income were higher than the plan owing to foreign exchange gains, etc. Lookin
Slide 5: Segment Information - BA Business
1. Financial Results for the First Half Ended September 30, 2014 Segment Information - ■ BA Business ■ Compared to the plan (5/12/2014) Sales continued to be robust in the domestic market, exceeding the plan. In addition to the new buildings field, growth in profitable projects involving the existin
Slide 6: Segment Information - AA Business
1. Financial Results for the First Half Ended September 30, 2014 Segment Information - ■ AA Business ■ Compared to the plan (5/12/2014) As anticipated in the plan, capital investment in Japan’s core industries continued to be stagnant. However, thanks to a recovery in some domestic markets, mainly f
Slide 7: Segment Information - LA Business
1. Financial Results for the First Half Ended September 30, 2014 Segment Information - ■ LA Business ■ Compared to the plan (5/12/2014) Sales did not achieve the forecast level, mainly because the Life Science Engineering (LSE) business environment deteriorated owing to flagging economies and increa
Slide 8: [Reference] Orders Received by Segment
1. Financial Results for the First Half Ended September 30, 2014 [Reference] Orders Received by Segment [Billions of yen] 150.0 125.0 100.0 75.0 50.0 25.0 0.0 2012/3 2013/3 2014/3 2015/3 H1 H2 H1 H2 H1 H2 H1 ■BA * 76.1 37.2 63.9 41.8 64.4 44.0 * 76.2 ■AA 46.8 43.0 45.2 41.4 46.5 46.5 49.4 ■LA 16.5 1
Slide 9: [Reference] Sales by Segment
1. Financial Results for the First Half Ended September 30, 2014 [Reference] Sales by Segment [Billions of yen] 150.0 125.0 100.0 75.0 50.0 25.0 0.0 2012/3 2013/3 2014/3 2015/3 H1 H2 H1 H2 H1 H2 H1 ■BA 44.3 59.5 45.3 62.0 45.0 64.4 46.6 ■AA 43.3 45.4 42.6 45.0 42.4 48.3 44.8 ■LA 16.2 16.3 17.5 16.4
Slide 10: [Reference] Segment Profit (Operating Income)
1. Financial Results for the First Half Ended September 30, 2014 [Reference] Segment Profit (Operating Income) [Billions of yen] 15.0 12.5 10.0 7.5 5.0 2.5 0.0 (2.5) 2012/3 2013/3 2014/3 2015/3 H1 H2 H1 H2 H1 H2 H1 ■BA 2.2 8.0 1.7 8.4 1.5 9.0 2.4 ■AA 2.4 1.6 1.9 1.7 1.2 2.7 2.0 ■LA (0.0) (0.0) (0.1)
Slide 11: Overseas Sales by Region
1. Financial Results for the First Half Ended September 30, 2014 Overseas Sales by Region [Billions of yen] 25.0 24.0% ■ Compared to the same period last year 20.0% 20.0 - In the Asian region, sales were down in 16.0% Thailand and Indonesia 15.0 owing to political uncertainty, but sales 12.0% grew i
Slide 12: Consolidated Financial Position
1. Financial Results for the First Half Ended September 30, 2014 Consolidated Financial Position Owing to seasonal factors, the assets and liabilities of the azbil Group tend to be lower at the end of the first half than at the end of the previous fiscal year. ■ Assets Principally owing to a drop in
Slide 13: Consolidated Cash Flows
1. Financial Results for the First Half Ended September 30, 2014 Consolidated Cash Flows ■ Since the sales of the azbil Group are concentrated in the second half of the fiscal year, cash flow tends to increase in the first half when notes and accounts receivable-trade recorded in the previous half i
Slide 14: 2. Financial Plan for the Year Ending March 31, 2015
2. Financial Plan for the Year Ending March 31, 2015 13
Slide 15: Revised Plan
2. Financial Plan for the Year Ending March 31, 2015 Revised Plan According to the revised plan, sales is set at 255.0 billion yen (5.0 billion yen lower than the initial plan) and operating income is set at 15.0 billion yen (0.5 billion yen lower than the initial plan). ■ Based on the financial res
Slide 16: Segment Information (1)
2. Financial Plan for the Year Ending March 31, 2015 Segment Information (1) [Billions of yen] Revised Initial plan Difference Difference Last year plan (5/12/2014) (A) - (B) % Change (A) - (C) % Change (A) (B) (C) ■ B A Sales 115.0 114.0 1.0 0.9 109.5 5.4 5.0 Segment profit 11.8 11.1 0.7 6.3 10.5 1
Slide 17: Segment Information (2)
2. Financial Plan for the Year Ending March 31, 2015 Segment Information (2) BA: Plan is revised upward for both sales and segment profit. ＢＡ The business environment for the second half is expected to remain robust, as in the initial plan. Based on the financial results for this first half, the pla
Slide 18: LSE structure enhancement and concentration on the core business
2. Financial Plan for the Year Ending March 31, 2015 LSE structure enhancement and concentration on the core business Life Science Engineering Targeting markets for pharmaceutical formulation, research and the production of functional foods, a new business field was established within the LA busines
Slide 19: [Reference] Sales by Segment
2. Financial Plan for the Year Ending March 31, 2015 [Reference] Sales by Segment [Billions of yen] 300.0 250.0 200.0 150.0 100.0 50.0 0.0 2012/3 2013/3 2014/3 2015/3 (Plan) ■ B A 103.8 107.4 109.5 115.0 ■ A A 88.8 87.6 90.8 94.0 ■ L A 32.5 33.9 49.5 48.0 Consolidated 223.4 227.5 248.4 255.0 18
Slide 20: [Reference] Segment Profit (Operating Income)
2. Financial Plan for the Year Ending March 31, 2015 [Reference] Segment Profit (Operating Income) [Billions of yen] 20.0 16.0 12.0 10.0 8.0 4.0 0.0 0.0 (4.0) 2012/3 2013/3 2014/3 2015/3 (Plan) ■ B A 10.3 10.1 10.5 11.8 ■ A A 4.1 3.6 3.9 4.7 ■ L A (0.1) (0.3) (0.6) (1.5) Consolidated 14.3 13.4 13.9
Slide 21: 3. Return to Shareholders
20 3. Return to Shareholders azbil
Slide 22: Dividends Plan
3. Return to Shareholders Dividends Plan Putting priority on the interests of our shareholders, we will maintain stable dividends while striving to increase the dividend payout, comprehensively taking into account consolidated performance, level of Return On Equity (ROE), Dividends On Equity (DOE)
Slide 23: 4. Toward Future Business Development
4. Toward Future Business Development Looking beyond the medium-term plan ～ ～ while adjusting to changes in the business environment 22
Slide 24: Medium-term Plan (2014/3-2017/3)
4. Toward Future Business Development Medium-term Plan (2014/3-2017/3) Since establishing the medium-term plan in 2013, the azbil Group has been implementing the following: 1. Shift to the business that supports customers throughout the lifecycle of their facilities; 2. Acceleration of global busine
Slide 25: Progress of the Medium-term Plan (1)
4. Toward Future Business Development Progress of the Medium-term Plan (1) Stable improvement in performance achieved through tapping into domestic ＢＡ Building demand growth, job process improvement, and job management. Expansion of the service business and growth of overseas business expected to bo
Slide 26: Progress of the Medium-term Plan (2)
4. Toward Future Business Development Progress of the Medium-term Plan (2) Progress achieved with global expansion and adjusting the business structure to ＡＡ Advanced changes in the domestic market. Further enhancement to be implemented in view of market structural changes. Automation Sales and prof
Slide 27: Business restructuring/enhancement to adapt to environmental changes (1)
4. Toward Future Business Development Business restructuring/enhancement to adapt to environmental changes (1) 1. Domestic business and operation structural reforms Reassignment and optimization of Group resources to adjust to changes in the market environment will be implemented again. Progress wil
Slide 28: Business restructuring/enhancement to adapt to environmental changes (2)
4. Toward Future Business Development Business restructuring/enhancement to adapt to environmental changes (2) 2. Global expansion Accelerate business expansion using upgraded overseas operating bases. Accelerate the switch to a lifecycle model for the overseas business by establishing and expandi
Slide 29: Relevant Information
28 Relevant Information azbil
Slide 30: 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 10.0 10.0 5.0% 8.0 8.0 4.0% 6.0 6.0 3.0% 4.5 4.0 4.0 2.0% 2.8 2.0 1.8 2.0 1.0% 0.0 0.0 0.0% 2012/3 2013/3 2014/3 2015/3 2012/3 2013/3 2
Slide 31: 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” 30