Slide 1: Consolidated Financial Results for Fiscal Year 2011
Consolidated Financial Results for Fiscal Year 2011 (ended March 31, 2012) Initiatives of the Medium-Term Plan (Fiscal Years 2010 - 2013) May 8, 2012 Azbil Corporation
Slide 2: Contents
Contents 1 Consolidated Financial Results for Fiscal Year 2011 (ended March 31, 2012) 1-1. FY2011 Financial Results P. 3 1-2. Business Plan for FY2012 P.17 1-3. Return to Shareholders P.21 2 Initiatives of the Medium-Term Plan P.25 (Fiscal Years 2010 - 2013) Current plans, targets, etc. discussed in
Slide 3: 1-1. FY2011 Financial Results
1 Consolidated Financial Results for Fiscal Year 2011 1-1. FY2011 Financial Results © 2012 Azbil Corporation All Rights Reserved. 3
Slide 4: FY2011 Consolidated Financial Results
FY2011 Consolidated Financial Results 《Compared to the previous fiscal year and the business plan》 Orders The BA business achieved significant growth, owing mainly to large-scale service contracts. Also, the AA business grew. As a result, Received orders totaled 233.9 billion yen, an increase of 7.6
Slide 5: Non-operating Income/Expenses and Extraordinary Income/Loss
FY2011 Non-operating Income/Expenses and Extraordinary Income/Loss 《Compared to the previous fiscal year》 Non-operating income and expenses increased by 0.3 billion yen compared to the previous fiscal year. This is because non-operating income fell by 0.2 billion yen mainly due to the reduced divide
Slide 6: Orders Received, Net Sales and Segment Profit
FY2011 Orders Received , Net Sales and Segment Profit (Operating Income) 《Compared to the previous fiscal year and the business plan》 Owing mainly to the large-scale service contracts won in this period, orders rose by 16.6% on the previous fiscal year to 113.4 billion yen. BA Sales were 103.9 billi
Slide 7: Orders Received by Segment
[Reference] FY2004 - 2011 Orders Received by Segment Billions of yen 300.0 Others 242.3 248.6 LA 250.0 8.8 231.8 233.9 11.3 217.4 AA 6.9 208.0 4.3 195.3 37.0 36.6 6.1 32.4 BA 200.0 176.7 35.9 5.5 10.5 32.8 35.2 15.2 4.9 150.0 102.9 85.7 101.6 92.5 83.0 95.7 69.7 86.2 100.0 50.0 102.1 113.4 86.0 94.7
Slide 8: Net Sales by Segment
[Reference] FY2004 - 2011 Net Sales by Segment Billions of yen 300.0 Others 248.6 LA 250.0 234.6 236.2 223.5 8.4 AA 7.9 212.2 219.2 11.1 36.5 BA 5.1 4.9 188.3 35.9 5.3 200.0 180.8 36.8 32.6 32.5 10.4 34.7 15.5 4.6 150.0 105.4 93.6 84.1 99.7 81.0 93.0 76.9 84.3 100.0 50.0 100.5 100.4 96.7 102.1 103.9
Slide 9: Segment Profit (Operating Income)
[Reference] FY2004 - 2011 Segment Profit (Operating Income) Billions of yen 25.0 20.5 Others LA 20.0 17.3 8.9 17.8 AA BA 13.5 12.4 14.9 14.3 9.1 15.0 5.0 0.4 3.2 9.4 7.5 4.0 10.0 0.6 4.7 11.8 13.1 11.7 11.5 10.3 5.0 8.5 5.5 6.5 0.0 (0.7) (0.5) (0.3) (0.2) (0.2) (0.1) (5.0) FY2004 FY2005 FY2006 FY200
Slide 10: International Business (Overseas Sales)
FY2011 International Business (Overseas Sales) 《Compared to the previous fiscal year》 Despite slowing economic growth in China and unfavorable exchange rates*, there was growth in the Asian region, resulting in sales of 19.8 billion yen, up 9.7% on the previous fiscal year. * The average dollar-yen
Slide 11: International Business (Overseas Sales) Reference
[Reference] FY2007 - 2011 International Business (Overseas Sales) Billions of yen Overseas sales by region 19.4 19.8 Others Europe 20.0 0.3 18.0 18.1 0.6 North America 1.5 0.8 China 0.7 0.7 1.7 Asia (except China) 2.2 1.1 0.8 1.5 14.5 1.6 15.0 0.4 0.9 6.7 5.7 1.0 6.4 6.4 10.0 5.1 5.0 9.7 10.0 8.3 8.
Slide 12: Changes of Sales of Overseas Subsidiaries
[Reference] FY2007 - 2011 Changes of Sales of Overseas Subsidiaries (on local currency basis) 175 Europe FY2007 = 100 160 North America China 150 Asia (except China) 135 146 125 117 133 110 108 103 100 100 105 83 96 75 77 63 78 73 50 57 25 FY2007 FY2008 FY2009 FY2010 FY2011 * The percentage changes
Slide 13: Consolidated Balance Sheets
FY2011 Consolidated Balance Sheets Total assets rose by 2.7% on the previous fiscal year to 223.5 billion yen, mainly due to growth in orders and sales. Billions of yen FY2009 FY2010 FY2011 Difference FY2009 FY2010 FY2011 Difference 4Q 4Q 4Q 4Q 4Q 4Q Mar.2010 Mar.2011 Mar.2012 Mar.2010 Mar.2011 Mar.
Slide 14: Consolidated Balance Sheets (Reference)
[Reference] FY2009 - 2011 Consolidated Balance Sheets Assets Liabilities & Net assets 250.0 Billions of yen 250.0 Billions of yen 218.5 223.5 218.5 217.5 223.5 217.5 200.0 45.1 200.0 35.0 33.9 37.2 45.1 48.6 15.2 11.8 10.2 40.3 41.0 150.0 150.0 39.0 74.7 76.0 85.5 100.0 100.0 16.4 13.8 16.1 24.1 26.
Slide 15: Consolidated Cash Flows
FY2011 Consolidated Cash Flows While income increased compared to the previous fiscal year, net cash provided by operating activities was 5.6 billion yen (down 9.6 billion yen from the previous fiscal year). This was mainly owing to an increase in notes and accounts receivable-trade related to sales
Slide 16: Consolidated Cash Flows (Reference)
[Reference] FY2009 - 2011 Consolidated Cash Flows Billions of yen 20.0 17.7 15.7 15.2 15.0 Operating CF FCF 12.9 Operating CF 10.0 FCF 5.6 5.0 2.0 Operating CF 2.1 Financing CF Financing CF FCF Financing CF 0.0 Investing CF (2.3) Investing CF (3.5) (5.0) Investing CF (6.8) (6.4) (8.0) (10.0) FY2009
Slide 17: 1-2. Business Plan for FY2012
1 Consolidated Financial Results for Fiscal Year 2011 1-2. Business Plan for FY2012 The FY2012 business plan has been drawn up based on the following preconditions. * Inter-segment transfer From FY2012 some operations within “Others” will be transferred to “AA”. Note: Figures given in these material
Slide 18: Business Plan for Consolidated Financial Results
FY2012 Business Plan for Consolidated Financial Results It is predicted that the business environment will continue to be as challenging as it has been from the previous fiscal year onwards. While a decline in income, compared to the previous year, is forecast for the first half, an improvement is e
Slide 19: Business Plan for FY2012 by Segment
FY2012 Business Plan for FY2012 by Segment For the BA business we plan to increase sales by 3.0% to 107.0 billion yen through adding a Chinese subsidiary to the consolidated accounts with the aim of establishing a presence in existing local markets. Although there will be strong downward pressure on
Slide 20: Results and Business Plan for FY2012 by Segment
[Reference] FY2008 - 2012 Results and Business Plan for FY2012 by Segment Billions of yen [Net sales] Billions of yen [Segment profit (Operating Income)] 250.0 236.2 230.0 20.0 223.5 17.8 7.9 212.2 219.2 0.1 4.9 14.9 15.0 5.1 33.0 14.3 35.9 5.3 5.0 200.0 32.6 32.5 15.0 34.7 12.4 3.2 5.0 0.4 4.0 0.6
Slide 21: 1-3. Return to Shareholders
1 Consolidated Financial Results for Fiscal Year 2011 1-3. Return to Shareholders FY2011 (ended March 31, 2012) Dividends Plan FY2012 (ending March 31, 2013) Dividends Forecast © 2012 Azbil Corporation All Rights Reserved. 21
Slide 22: FY2011 Dividends Plan
FY2011 Dividends Plan Placing great importance on the profit sharing with shareholders, Azbil is planning to issue dividends of 63 yen per share, as announced at the beginning of FY2011(May, 2011). FY2011 (Interim) (Year-end) (Annual) Paid on Planned to pay on December, 2011 June, 2012 31.5 yen + 31
Slide 23: FY2012 Dividends Forecast
FY2012 Dividends Forecast In spite of the continuing uncertainties in the business environment, Azbil will issue an annual dividend for FY2012 of 63 yen per share, the same as for FY2011, in order to maintain shareholders’ return. FY2012 (Interim) (Year-end) (Annual) December, 2012 June, 2013 Foreca
Slide 24: Dividends per Share
Dividends per Share Since FY2003 the Group has continuously striven to raise the dividend level and actively implement profit sharing with its shareholders. 63 63yen Yen 70 63 63 60 62 62 Commemorative dividend 60 Year-end dividend Interim diviend 50 50 50 31 31 31.5 31.5 31.5 10 30 40 25 30 20 23 2
Slide 25: Initiatives of the Medium-Term Plan
2 Initiatives of the Medium-Term Plan (Fiscal Years 2010 - 2013) © 2012 Azbil Corporation All Rights Reserved. 25
Slide 26: Embodying the Group's philosophy in azbil
Embodying the Group’s philosophy in “azbil” （azbil: Automation Zone Builder) Symbol of the Group philosophy of “human-centered automation” ■ azbil Group Philosophy ■ To realize safety, comfort and fulfillment in people’s lives and contribute to global environmental preservation through “human-center
Slide 27: The azbil Group's progress to date
The azbil Group's progress to date Creating Creating Promoting reforms to the business and operational Fostering new new azbil spirit structure based on the philosophy of “human-centered work styles business automation” The decade from 2004 has been divided into 3 phases of activity. Period Period o
Slide 28: Future priorities
Future priorities Business environment The quest for “human-centered automation”: It is a very challenging business environment, and also the situation is difficult to predict Enhancing customer relations and value (uncertain future). (scope, quality) strategy. Changes in the domestic Aiming to beco
Slide 29: Offering greater value on site, drawing on advanced technologies
Initiative Aiming to become a long-term partner for both the 1 customer and the community, through offering solutions based on technology and products Offering greater value on site, over a broader range, drawing on azbil’s advanced technologies and expertise Features and strengths of the azbil Grou
Slide 30: Working to Become a Long-term Partner for Customer and Community
Initiative Working to Become a Long-term Partner for 1 Customer and Community Shifting to value-added lifecycle solutions (aG synergy) BA (environment & next-generation HVAC, Smart City, industrial fields, expansion from Japan to overseas) Promoting the energy conservation business to better serve c
Slide 31: Taking the international business to the next level
Initiative Taking the international business to the next level 2 Global initiative: Expansion into new regions and a qualitative change of focus Think globally. In addition to overseas initiatives, this means planning in a way that will ultimately enhance the value that can be offered to customers i
Slide 32: Global Initiatives of the azbil Group
Initiative 2 Global Initiatives of the azbil Group Establishment of a joint valve Establishment of a joint venture with CECEP business (tentative) with Tharawat Industry Development Co., Ltd. for sales of building Development Co. of Saudi Arabia automation systems Equity participation in Beijing YTY
Slide 33: Strengthening the business structure
Initiative Implementing organizational reforms to create a 3 corporate entity that can respond flexibly and continuously to changes in the business environment Creating new Strengthening the business structure work styles Enhancing efficiency through Optimum allocation and use of the Group’s concent
Slide 34: CSR
Presenting all stakeholders with the “human-centered” azbil Group Customers, suppliers Enhancing the value offered to customers Contributing to Customers’ lifecycle partner employment etc., as a member of the local community Contributing globally to the environment and safety through our core Employ
Slide 35: Introducing the Azbil Corporation and the new azbil Group
Introducing the Azbil Corporation and the new azbil Group On April 1, 2012 Azbil Corporation A new start for azbil Group companies Significance We are embarking on a quest for added value that can be provided to our customers via “human-centered automation”. All employees are resolutely committed to
Slide 36: Appendix
Appendix • Capital Investments, Depreciation and R&D Expenses (FY2011 Financial Results / Business Plan for FY2012) • New names for azbil Group companies in Japan © 2012 Azbil Corporation All Rights Reserved. 36
Slide 37: Capital Investments, Depreciation and R&D Expenses
[Reference] Capital Investments, Depreciation and R&D Expenses Billions of yen Capital Investments and Depreciation 6.8 7.0 6.4 Capital Investments Depreciation 6.0 5.3 4.8 5.0 4.5 4.4 4.5 4.5 3.9 4.0 4.0 3.8 4.0 3.3 3.0 2.7 3.0 2.4 2.0 1.0 0.0 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012
Slide 38: New names for azbil Group companies in Japan
New names for azbil Group companies in Japan Current company name New company name Yamatake Corporation Azbil Corporation Yamatake Control Products Co., Ltd. Yamatake & Co., Ltd. Azbil Trading Co., Ltd. Yamatake Friendly Co., Ltd. Azbil Yamatake Friendly Co., Ltd. Yamatake Care-Net Co., Ltd. Azbil C
Slide 39: Group philosophy: human-centered automation
To realize safety, comfort and fulfillment in people’s lives and contribute to global environmental preservation through “human-centered automation.” Copyright © 2011 Yamatake Corporation All Rights Reserved.