Slide 1: Presentation Materials for the First Half Ended September 30, 2017
Human-centered Automation Azbil Corporation RIC: 6845.T, Sedol: 6985543 Presentation Materials For the First Half Ended September 30, 2017 (Based on Japanese GAAP) <Contents> 1. Financial Results for the First Half Ended September 30, 2017 2. Financial Plan for the Year Ending March 31, 2018 3. Retu
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. Net sales for the azbil Group tend to be conce
Slide 3: 1. Financial Results for the First Half Ended September 30, 2017
1. Financial Results for the First Half Ended September 30, 2017 3
Slide 4: Consolidated Financial Results
1. Financial Results for the First Half Ended September 30, 2017 Consolidated Financial Results ■ Orders received grew for the AA and LA businesses. Overall orders received increased significantly. ■ Sales grew for the BA business, but fell for the LA business owing to the structural and business re
Slide 5: Segment Information - BA Business
1. Financial Results for the First Half Ended September 30, 2017 Segment Information - ■ BA Business ■ Orders received decreased from the same period last year when multi-year contracts for large-scale projects* were recorded. But the business environment continued to be robust, and orders received
Slide 6: Segment Information - AA Business
1. Financial Results for the First Half Ended September 30, 2017 Segment Information - ■ AA Business ■ From the previous fiscal year we have engaged in enhancing operating systems for the three AA business sub-segments (CP, IAP & SS). Also, in order to grow each business, we have actively conducted
Slide 7: Segment Information - LA Business
1. Financial Results for the First Half Ended September 30, 2017 Segment Information - ■ LA Business ■ LA business orders received were significantly higher than the same period last year. In the Life Science Engineering (LSE) field, as a result of structural reforms undertaken to improve profitabil
Slide 8: [Reference] Orders Received by Segment
1. Financial Results for the First Half Ended September 30, 2017 [Reference] Orders Received by Segment 175.0 [Billions of yen] 150.0 125.0 100.0 75.0 50.0 25.0 0.0 FY2014 FY2015 FY2016 FY2017 H1 H2 H1 H2 H1 H2 H1 ■BA 76.1 *1 46.1 85.5 *3 48.3 75.1 42.5 *4 73.1 ■AA 49.1 47.9 50.1 44.7 45.7 48.0 52.0
Slide 9: [Reference] Sales by Segment
1. Financial Results for the First Half Ended September 30, 2017 [Reference] Sales by Segment [Billions of yen] 175.0 150.0 125.0 100.0 75.0 50.0 25.0 0.0 FY2014 FY2015 FY2016 FY2017 H1 H2 H1 H2 H1 H2 H1 ■BA 46.6 67.6 48.1 70.6 49.4 66.9 *2 50.8 ■AA 44.5 49.0 43.6 49.8 46.0 49.4 46.2 ■LA 24.7 22.5 *
Slide 10: [Reference] Segment Profit (Operating Income)
1. Financial Results for the First Half Ended September 30, 2017 [Reference] Segment Profit (Operating Income) [Billions of yen] 17.5 15.0 12.5 10.0 7.5 5.0 2.5 0.0 (2.5) FY2014 FY2015 FY2016 FY2017 H1 H2 H1 H2 H1 H2 H1 ■BA 2.4 9.8 1.7 10.3 1.6 9.8 *2 2.3 ■AA 2.0 3.0 1.5 3.4 2.5 4.6 4.5 ■LA (0.8) (1
Slide 11: Overseas Sales by Region
1. Financial Results for the First Half Ended September 30, 2017 Overseas Sales by Region [Billions of yen] <Compared to the same period last year> 25.0 25.0% Overseas sales grew in the Asian and North American regions, offsetting the 20.0 20.0% negative impact of business reforms in China and Europ
Slide 12: Consolidated Financial Position
1. Financial Results for the First Half Ended September 30, 2017 Consolidated Financial Position Seasonal factors affecting business typically lead to a decrease in the azbil Group's assets and liabilities at the end of the first half when compared to the end of the previous fiscal year. ■ Assets Ow
Slide 13: Consolidated Cash Flows
1. Financial Results for the First Half Ended September 30, 2017 Consolidated Cash Flows ■ Cash flows from operating activities were virtually unchanged from the same period last year. However, cash flows from investing activities were impacted by increased expenditures for the purchase of securitie
Slide 14: 2. Financial Plan for the Year Ending March 31, 2018
2. Financial Plan for the Year Ending March 31, 2018 14
Slide 15: Revised Plan
2. Financial Plan for the Year Ending March 31, 2018 Revised Plan In consideration of financial results for the first half and the business outlook for the second half, the financial plan for the year ending March 31, 2018 has been revised as follows. Net sales will be 1 billion yen lower at 260 bil
Slide 16: Revised Plan by Segment
2. Financial Plan for the Year Ending March 31, 2018 Revised Plan by Segment Given the robust business environment, we will make steady progress with job processing – BA using the job fulfilment system that was upgraded in the previous fiscal year – to achieve profits higher than the same period las
Slide 17: [Reference] Sales by Segment
2. Financial Plan for the Year Ending March 31, 2018 [Reference] Sales by Segment [Billions of yen] 300.0 200.0 100.0 0.0 FY2014 FY2015 FY2016 FY2017 (Plan) ■ B A 114.3 118.8 116.4 *2 119.0 ■ A A 93.6 93.5 95.4 97.0 ■ L A 47.3 *1 45.6 44.1 44.5 Consolidated 254.4 256.8 254.8 260.0 *1 In February 201
Slide 18: [Reference] Segment Profit (Operating Income)
2. Financial Plan for the Year Ending March 31, 2018 [Reference] Segment Profit (Operating Income) [Billions of yen] *2 *1 *1 In February 2015, all shares in Azbil Care & Support Co., Ltd. were transferred to SOHGO SECURITIY SERVICES CO., LTD. The figures had been consolidated until the third quarte
Slide 19: 3. Returning Profits to Shareholders
3. Returning Profits to Shareholders →No change from the initial plan Basic policy We will develop well-disciplined capital policies and aim to Promoting maintain/enhance azbil's enterprise value while carefully balancing shareholder among three key elements: promoting shareholder returns, investing
Slide 20: Dividends Plan: Annual dividends of 82 yen per share
3. Returning Profits to Shareholders Dividends Plan Dividends plan for the fiscal year ending March 2018 →No change from the initial plan Annual dividends: 82 yen per share (Incorporating last year’s commemorative dividends of 5 yen within the ordinary dividends and furthermore increasing it by 5 ye
Slide 21: 4. Progress in Implementing the Medium-term Plan (FY2017-FY2019)
4. Progress in Implementing the Medium-term Plan (FY2017-FY2019) 21
Slide 22: Policies & Goals of the Medium-term Plan
4. Progress in Implementing the Medium-term Plan Policies & Goals of the Medium-term Plan (FY2017-FY2019) The current 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 l
Slide 23: Progress: Building Automation Business
4. Progress in Implementing the Medium-term Plan Building Automation Business BA Smart Building N L Launch of new building automation system: savic-netTMG5 EXPO － Provision of an open network compatible with the latest technological innovations (Cloud, IoT, etc.), advanced user interface, and high-s
Slide 24: Progress: Advanced Automation Business
4. Progress in Implementing the Medium-term Plan Advanced Automation Business AA Enhanced lineup of products & applications for hi-tech markets in Japan and overseas SCF/ L MCS with growth potential – semiconductors, FPDs (LCD, touch panels, organic EL), rechargeable batteries, etc. －Includes the mo
Slide 25: Progress: Life Automation Business
4. Progress in Implementing the Medium-term Plan Life Automation Business LA N Engaged in the verification of IoT-based remote automatic meter SCF/ reading using LPWA (Low Power Wide Area) New LP gas meter MCS networks as a new business field Can be adapted to various －Water-meter reading solution u
Slide 26: Further Strengthening/Upgrading of Business Infrastructures
4. Progress in Implementing the Medium-term Plan Further Strengthening/Upgrading of Business Infrastructures Creating an advanced Group production system ー Shonan & Isehara factory integration, Thai factory extension Azbil: Shonan & Isehara factories Production functions of Azbil’s Shonan and Iseh
Slide 27: Upcoming Trade Shows
[Reference] Upcoming Trade Shows New products and services featured here can be seen at the following events. Dates: Nov. 29 (Wed) to Dec. 1 (Fri), 2017 Open: 10am to 5pm Venue: Tokyo Big Sight (West Halls 1, 3, 4, and Atrium) Azbil booth (No. 4-38) theme/exhibits “Azbil + IoT: Realizing a new dimen
Slide 28: Relevant Information
28 Relevant Information azbil
Slide 29: 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 3.7 6.0 5.1 2.0% 3.0 4.0 1.9 2.0 1.0% 2.0 1.0 0.0 0.0 0.0% FY2014 FY2015 FY2016 FY2017
Slide 30: Trends of Return to Shareholders
Relevant Information Trends of Return to Shareholders [yen] [％] 82 （Plan） 77 67 63 63 63 50 （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 shares * ～ 0.6 0.7 （million shares） * Repurchase of own shares was completed on Ju
Slide 31: Disposal/Cancellation of Treasury Shares & Repurchase of Own Shares
Relevant Information Disposal/Cancellation of Treasury Shares & Repurchase of Own Shares In conjunction with the introduction of Employee Stock Disposal of treasury shares Ownership Plan, intended to give employees greater in conjunction with the incentive to raise enterprise value by sharing the in
Slide 32: 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” 32