Slide 1: Presentation Materials for the Fiscal Year Ended March 31, 2017
Human-centered Automation Azbil Corporation RIC: 6845.T, Sedol: 6985543 Presentation Materials For the Fiscal Year Ended March 31, 2017 (Japanese GAAP) <Contents> 1. Financial Results for the FY2016 (Ended March 31, 2017) 2. Review of Medium-term Plan (FY2013-FY2016) 3. New Medium-term Plan (FY2017-
Slide 2: Notes
Notes: 1. Financial data and financial statements have been prepared based on Japanese 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. The financial plan is based on management’s as
Slide 3: 1. Financial Results for the FY2016 (Ended March 31, 2017)
1. Financial Results for the FY2016 (Ended March 31, 2017) 3
Slide 4: Consolidated Financial Results
1. Financial Results for the FY2016 (Ended March 31, 2017) Consolidated Financial Results ■ Orders The business environment was largely unchanged; however, because a revision had been made in the previous fiscal year to the way multi-year contracts are recorded, leading to a transient jump in the am
Slide 5: Segment Information - BA Business
1. Financial Results for the FY2016 (Ended March 31, 2017) Segment Information - ■ BA Business The domestic business environment remained robust, but orders received were negatively impacted by the recording of a lump sum due to the revision*1 made in the previous fiscal year to the way multi-year c
Slide 6: Segment Information - AA Business
1. Financial Results for the FY2016 (Ended March 31, 2017) Segment Information - ■ AA Business Orders received benefitted from a market recovery starting from the third quarter, and from sales promotion activities – focused on selected targets in Japan and abroad – carried out by the three sub-segme
Slide 7: Segment Information - LA Business
1. Financial Results for the FY2016 (Ended March 31, 2017) Segment Information - ■ LA Business Although orders received were up for the gas/water meters as well as residential central air-conditioning systems fields, overall orders received were down. This was because large-scale projects had been r
Slide 8: Consolidated Financial Position
1. Financial Results for the FY2016 (Ended March 31, 2017) Consolidated Financial Position ■ Assets Total assets increased by 4.1 billion yen compared to the end of the previous fiscal year despite decreases in notes and accounts receivable-trade and inventories. This was due to increases in cash an
Slide 9: Consolidated Cash Flows
1. Financial Results for the FY2016 (Ended March 31, 2017) Consolidated Cash Flows ■ Cash flows from operating activities increased mainly due to a rise in income before income taxes. Cash flows from investing activities decreased due to an increase in disbursements on the purchase of held-for-tradi
Slide 10: 2. Review of Medium-term Plan (FY2013-2016)
2. Review of Medium-term Plan (FY2013-2016) 10
Slide 11: Business performance Trends
2. Review of Medium-term Plan (FY2013-FY2016) Business performance Trends In the medium-term plan (FY2013–FY2016), we have pursued business development in line with the three key initiatives based on the corporate philosophy of “human-centered automation”. In adjusting to changing market conditions
Slide 12: Measures Implemented and Results Achieved, by Segment
2. Review of Medium-term Plan (FY2013-FY2016) Measures Implemented and Results Achieved, by Segment Through implementing measures in line with the three key initiatives based on the corporate philosophy of “human-centered automation”, we have achieved increased sales and profits in each segment. BA
Slide 13: Progress with Strengthening the Business Foundation
2. Review of Medium-term Plan (FY2013-FY2016) Progress with Strengthening the Business Foundation Steady progress was achieved with the introduction of systems that comprise the business foundation, upgrading equipment and other infrastructure, and the training/reassignment of human resources. BA bu
Slide 14: Orders Received by Segment
2. Review of Medium-term Plan (FY2013-FY2016) Orders Received by Segment 300.0 [Billions of yen] 200.0 100.0 0.0 FY2012 FY2013 FY2014 FY2015 FY2016 ■BA 105.7 108.4 122.3*1 133.8*4 117.6*5 ■AA 86.6 93.1 97.0 94.8 93.7 ■LA 40.1*2 52.6 48.4*3 45.7 42.0*5 Consolidated 231.1 252.4 266.9 273.6 252.3 *1 Or
Slide 15: Sales by Segment
2. Review of Medium-term Plan (FY2013-FY2016) Sales by Segment [Billions of yen] 300.0 200.0 100.0 0.0 FY2012 FY2013 FY2014 FY2015 FY2016 ■BA 107.4 109.5 114.3 118.8 116.4 ■AA 87.6 90.8 93.6 93.5 95.4 ■LA 33.9 49.5*1 47.3*2 45.6 44.1 Consolidated 227.5 248.4 254.4 256.8 254.8 *1 In the fiscal year e
Slide 16: Segment Profit (Operating Income)
2. Review of Medium-term Plan (FY2013-FY2016) Segment Profit (Operating Income) [Billions of yen] 25.0 20.0 15.0 10.0 5.0 0.0 (5.0) FY2012 FY2013 FY2014 FY2015 FY2016 ■BA 10.1 10.5 12.2 12.0 11.5 ■AA 3.6 3.9 5.0 5.0 7.2 ■LA (0.3) (0.6)*1 (1.9)*2 0.0 1.4 Consolidated 13.4 13.9 15.3 17.1 20.1 *1 In th
Slide 17: Overseas Sales by Region
2. Review of Medium-term Plan (FY2013-FY2016) Overseas Sales by Region [Billions of yen] Overseas sales fell short of the planned medium-term goal (published in May 2013), 50.0 25.0% which was set at 20% of total sales, owing to a slowdown in the economic growth of emerging 40.0 20.0% nations, the i
Slide 18: Strengthening Corporate Governance and Promoting Return to Shareholders
2. Review of Medium-term Plan (FY2013-FY2016) Strengthening Corporate Governance and Promoting Return to Shareholders Employees Providing opportunities Enhancing value for for creative activities the customer Partners and growth by Corporate governance and CSR management in the azbil Group The custo
Slide 19: 3. New Medium-term Plan (FY2017-FY2019)
3. New Medium-term Plan (FY2017-FY2019) 19
Slide 20: Policies & Goals
3. New Medium-term Plan (FY2017-FY2019) Policies & Goals A New Medium-term Plan (FY2017-FY2019) has been drawn up to promote corporate operations based on the philosophy of “human-centered automation”, and as a second step toward achieving our long-term goals (FY2021). Corporate operations based on
Slide 21: Expanding Business Areas to Secure Sustainable Growth
3. New Medium-term Plan (FY2017-FY2019) Expanding Business Areas to Secure Sustainable Growth Prepare systems/products in anticipation of emerging needs such as a growing demand for the retrofit of large-scale buildings in Japan and for Provide solutions the provision of advanced plant protection su
Slide 22: Strategy Details
3. New Medium-term Plan (FY2017-FY2019) Strategy Details FY2016 FY2019 Net Net Consolidated sales 254.8 billion yen sales 270.0 billion yen (+6.0%) financial plan Operating Operating income 20.1 billion yen income 25.0 billion yen (+24.1%) We will implement measures tailored to the business environm
Slide 23: Strategy Details
3. New Medium-term Plan (FY2017-FY2019) Strategy Details Creating profit in mature fields and accelerating the shift to growth fields ＡＡ Develop and cultivate a strong automation field, unique to azbil, with an integrated business promotion system – from marketing conducted by the three sub-segmen
Slide 24: 4. Financial Plan for the FY2017 (Ending March 31, 2018)
4. Financial Plan for the FY2017 (Ending March 31, 2018) 24
Slide 25: Consolidated Financial Plan
4. Financial Plan for the FY2017 (Ending March 31, 2018) Consolidated Financial Plan Net sales of 261 billion yen, operating income of 22 billion yen – Aiming to achieve continuous profit growth while making steady progress with investments in technological development, etc. and necessary measures.
Slide 26: Segment Information
4. Financial Plan for the FY2017 (Ending March 31, 2018) Segment Information Domestically a robust business environment will continue, sales will grow, and system BA development will lead to improved profits. Overseas too growth is projected, reflecting a recognized track record in local markets and
Slide 27: 5. Returning Profits to Shareholders
5. Returning Profits to Shareholders Basic policy Carefully balancing shareholder returns with investment in growth and ensuring a Promoting healthy financial foundation, we will develop well-disciplined capital policies and aim shareholder to maintain/enhance azbil’s enterprise value. returns To
Slide 28: Overview of Planned Return to Shareholders
5. Returning Profits to Shareholders Overview of Planned Return to Shareholders FY2016 Close of the previous medium-term plan (FY2013-FY2016) resolution Steady progress has been observed in business growth and strengthening of the corporate structure, so the following measures have been decided. Rev
Slide 29: FY2016 resolution: Revision of year-end dividends
5. Returning Profits to Shareholders FY2016 resolution: Revision of year-end dividends Steady progress has been made with initiatives included in the previous medium-term plan to improve the profit structure. Since it was thus recorded profits that exceeded the plan, the year-end dividends will be i
Slide 30: FY2016 resolution: Disposal/cancellation of treasury shares
5. Returning Profits to Shareholders FY2016 resolution: Disposal/cancellation of treasury shares Out of the 1,865,659 treasury shares currently held by us, in conjunction with the adoption of Employee Stock Ownership Plan, 1,000,000 treasury shares will be disposed of through allocation to a third p
Slide 31: FY2017 plan: Planned FY2017 dividends (increase)
5. Returning Profits to Shareholders FY2017 plan: Planned FY2017 dividends (increase) Taking into consideration the business structure reforms and measures to strengthen the profit structure implemented so far, it is expected that stable and sustainable growth will be achieved under the new medium-t
Slide 32: FY2017 plan: Repurchase of the company's own shares
5. Returning Profits to Shareholders FY2017 plan: Repurchase of the company’s own shares Taking into consideration the outlook for future performance, and striving to improve capital efficiency and further raise the return of profits to our shareholders, we will implement a repurchase of our own sha
Slide 33: [Reference] Trends of Return to Shareholders
5. Returning Profits to Shareholders [Reference] Trends of Return to Shareholders [yen] [％] 82（Plan） Expected level as of May 2016 77（Revised） 74 67 63 63 63 50 （Revised） （Plan） Dividends per share（yen） 50 ～ 63 63 63 67 77 82 Dividends on equity(%) 3.2 ～ 3.4 3.3 3.1 3.1 3.5 3.6 Repurchase of own sha
Slide 34: Relevant Information
34 Relevant Information azbil
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 12.0 5.0% 7.0 10.0 4.0% 6.0 8.0 5.0 3.0% 4.0 6.0 2.0% 3.0 4.0 2.0 1.0% 2.0 1.0 0.0 0.0 0.0% FY2012 FY2013 FY2014 FY2015 FY2016 FY20
Slide 36: 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” 36