Slide 1: Presentation Materials for the Fiscal Year Ended March 31, 2019
Human-centered automation Azbil Corporation RIC: 6845.T, Sedol: 6985543 Presentation Materials For the Fiscal Year Ended March 31, 2019 (Japanese GAAP) Contents 1. Financial Results for FY2018 (Ended March 31, 2019) 2. Financial Plan for FY2019 (Ending March 31, 2020) 3. Returning Profits to Shareho
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. The following are the Group’s segments (each identified by abbreviation) together with the various sub-segments and their principal business focus. B A ： Building Aut
Slide 3: 1. Financial Results for FY2018
1. Financial Results for FY2018 (Ended March 31, 2019) 3
Slide 4: Consolidated Financial Results
1. Financial Results for FY2018 (Ended March 31, 2019) Consolidated Financial Results Sales and profits were up for two consecutive accounting years. Thanks to the strengthening of profitability in each business, operating income was 26.6 billion yen – a new record – meaning that the goal for the fi
Slide 5: Segment Information - BA Business
1. Financial Results for FY2018 (Ended March 31, 2019) Segment Information - BA Business The business environment has remained robust, thanks to urban redevelopment plans for the Tokyo metropolitan area, etc. Orders received increased both in Japan and overseas. We have made efforts to secure orders
Slide 6: Segment Information - AA Business
1. Financial Results for FY2018 (Ended March 31, 2019) Segment Information - AA Business Operations for the three AA business sub-segments* have been streamlined, and business growth has been achieved along with strengthened profitability. Both sales and profits have continued to grow. We are also d
Slide 7: Segment Information - LA Business
1. Financial Results for FY2018 (Ended March 31, 2019) Segment Information - LA Business The Lifeline field (gas/water meters, etc.) is a relatively stable business environment since it is focused on meeting the cyclical meter replacement demand, as required by law. On the other hand, in the two oth
Slide 8: Non-operating Income & Expenses, Extraordinary Income & Losses and Income Taxes
1. Financial Results for FY2018 (Ended March 31, 2019) Non-operating Income & Expenses, Extraordinary Income & Losses and Income Taxes Mainly due to the increase in operating income, ordinary income was higher than the previous fiscal year. As a contributing factor foreign exchange gains were gene
Slide 9: Reference: Orders Received by Segment
1. Financial Results for FY2018 (Ended March 31, 2019) Reference: Orders Received by Segment (Billions of yen) 300.0 200.0 100.0 0.0 FY2015 FY2016*2 FY2017*2 FY2018*2 ■BA 133.8 *1 120.0 117.8 123.7 ■AA 94.8 93.4 101.7 98.3 ■LA 45.7 42.6 48.0 43.8 Consolidated 273.6 254.9 266.2 264.2 *1 A revision wa
Slide 10: Reference: Sales by Segment
1. Financial Results for FY2018 (Ended March 31, 2019) Reference: Sales by Segment (Billions of yen) 300.0 200.0 100.0 0.0 FY2015 FY2016 FY2017 FY2018 ■BA 118.8 116.4 * 120.2 119.5 ■AA 93.5 95.4 97.2 99.3 ■LA 45.6 44.1 44.2 44.8 Consolidated 256.8 254.8 260.3 262.0 * In December 2016, the Chinese su
Slide 11: Reference: Segment Profit (Operating Income)
1. Financial Results for FY2018 (Ended March 31, 2019) Reference: Segment Profit (Operating Income) (Billions of yen) 30.0 20.0 10.0 0.0 FY2015 FY2016 FY2017 FY2018 ■BA 12.0 11.5 * 12.5 12.4 ■AA 5.0 7.2 9.9 12.2 ■LA 0.0 1.4 1.5 2.0 Consolidated 17.1 20.1 24.0 26.6 * In December 2016, the Chinese sub
Slide 12: Overseas Sales by Region
1. Financial Results for FY2018 (Ended March 31, 2019) Overseas Sales by Region (Billions of yen) Compared to the previous fiscal year 50.0 25.0% Overseas sales increased by 2.0% compared to the previous fiscal year, with revenue growing in China, Asia, and North 40.0 20.0% America. 15.0% BA Busines
Slide 13: Consolidated Financial Position
1. Financial Results for FY2018 (Ended March 31, 2019) Consolidated Financial Position Assets Investments and other assets decreased due to the sale of securities in addition to a drop in their market value. However, total assets increased by 1.7 billion yen compared to the end of the previous fis
Slide 14: Consolidated Cash Flows
1. Financial Results for FY2018 (Ended March 31, 2019) Consolidated Cash Flows ■ Cash flows from operating activities decreased compared to the previous fiscal year, despite a rise in income before income taxes. This was owing to increased expenditures for income taxes, and also to expenditures rela
Slide 15: 2. Financial Plan for FY2019
2. Financial Plan for FY2019 (Ending March 31, 2020) 15
Slide 16: Consolidated Financial Plan
2. Financial Plan for FY2019 (Ending March 31, 2020) Consolidated Financial Plan We will continue initiatives to strengthen profitability in each business. While conditions are deteriorating in certain markets, taking advantage of our wide-ranging business portfolio, we will continue to invest in st
Slide 17: Plan by Segment (1)
2. Financial Plan for FY2019 (Ending March 31, 2020) Plan by Segment (1) (Billions of yen) FY2019 (Plan) Previous Difference fiscal year 1st half 2nd half (A) - (B) % Change (A) (B) ■ B A Sales 51.0 74.0 125.0 119.5 5.4 4.6 Segment profit 2.1 11.6 13.7 12.4 1.2 10.3 % 4.1 15.7 11.0 10.4 0.6P ■ A A S
Slide 18: Plan by Segment (2)
2. Financial Plan for FY2019 (Ending March 31, 2020) Plan by Segment (2) BA Steady progress with handling the increasing number of orders; planning to achieve record-breaking profits Thanks to the robust business environment in Japan, there was a steady increase in the order backlog (64.2 billion ye
Slide 19: 3. Returning Profits to Shareholders
3. Returning Profits to Shareholders 3. Returning Profits to Shareholders Based on the basic policy, we will aim for stable and improved returns to shareholders while making steady progress with investments to drive future growth and thus increase enterprise value. FY2018 Dividends issued as annou
Slide 20: Annual Dividends: 50 yen per share
3. Returning Profits to Shareholders Dividends FY2019 Dividends - Ordinary dividend increase of 4 yen - Annual Dividends: 50 yen per share FY2018 year-end dividends: 23 yen (as announced) Steady progress has been made with business measures, and since it was possible to achieve results in line with
Slide 21: Cancellation of Treasury Shares and Repurchase of Own Shares
3. Returning Profits to Shareholders Cancellation of Treasury Shares and Repurchase of Own Shares Along with the cancellation of treasury shares held on March 31, 2019, in order to improve capital efficiency and to further enhance shareholder return: 10 billion yen of the Company’s own shares will b
Slide 22: 4. Final Year of the Medium-term Plan (FY2017-FY2019)
4. Final Year of the Medium-term Plan (FY2017-FY2019) - Progress and Forward-looking Initiatives - 22
Slide 23: Policies and Goals of the Medium-term Plan (FY2017-FY2019)
4. Final Year of the Medium-term Plan (FY2017-FY2019) Policies and Goals of the Medium-term Plan (FY2017-FY2019) By implementing business strategies based on the three fundamental policies as well as measures to strengthen profitability, we achieved an operating income of 26.6 billion yen and an ROE
Slide 24: Medium-term Plan Performance Goals: Progress by Segment
4. Final Year of the Medium-term Plan (FY2017-FY2019) Medium-term Plan Performance Goals: Progress by Segment The BA business has improved profitability while upgrading its systems to handle high demand. Through strengthening business profitability, the AA business has achieved results that exceed t
Slide 25: Progress in Implementing Business Measures - BA Business
4. Final Year of the Medium-term Plan (FY2017-FY2019) Progress in Implementing Business Measures - BA Business Strengthening our relationship with customers in Japan and abroad throughout the life cycle There are no changes to the outlook for the domestic business environment, and it is expected tha
Slide 26: Progress in Implementing Business Measures - AA Business
4. Final Year of the Medium-term Plan (FY2017-FY2019) Progress in Implementing Business Measures - AA Business Generating profits in mature fields and accelerating the shift to growth fields Despite the downturn in some markets, in Japan and abroad we continue to see robust investment in production
Slide 27: Progress in Implementing Business Measures - LA Business
4. Final Year of the Medium-term Plan (FY2017-FY2019) Progress in Implementing Business Measures - LA Business From establishing the profit structure to expanding the business In the various fields that make up the LA business, the profit structure has been firmly established though initiatives aime
Slide 28: Progress with Upgrading and Strengthening the Business Foundation (1)
4. Final Year of the Medium-term Plan (FY2017-FY2019) Progress with Upgrading and Strengthening the Business Foundation (1) Establishing an advanced global production system New Shonan Factory (mother factory) The production functions of the Shonan factory, the Isehara factory and the Fujisawa Tec
Slide 29: Progress with Upgrading and Strengthening the Business Foundation (2)
4. Final Year of the Medium-term Plan (FY2017-FY2019) Progress with Upgrading and Strengthening the Business Foundation (2) Enhancing our technologies and product development capabilities to expand into new automation field We are developing next-generation system products for the IoT era, including
Slide 30: 5. CSR-focused Management and Corporate Governance
5. The azbil Group’s CSR-focused Management and Corporate Governance 30
Slide 31: Two wheels of management for continuous maximization of enterprise value
5. The azbil Group’s CSR-focused Management and Corporate Governance azbil Group CSR-focused management – putting into practice our “human-centered” philosophy Employees Providing opportunities Establishment of internal controls and comprehensive risk management based Enhancing value for for creativ
Slide 32: azbil Group Corporate Governance Reforms (1)
5. The azbil Group’s CSR-focused Management and Corporate Governance azbil Group Corporate Governance Reforms (1) We are implementing ongoing initiatives to ensure that the board of directors is highly transparent and diverse as well as highly effective in administrative matters. We are also working
Slide 33: azbil Group Corporate Governance Reforms (2)
5. The azbil Group’s CSR-focused Management and Corporate Governance azbil Group Corporate Governance Reforms (2) Corporate governance reforms to date Appointed and increased independent outside directors (from 1 in 2007 to 2 in 2010, 3 in 2014, Strengthening of and 4 in 2018) supervisory/audit- Inc
Slide 34: Appendix
34 Appendix azbil
Slide 35: Capital Expenditure, Depreciation and R&D Expenses
Appendix Capital Expenditure, Depreciation and R&D Expenses ■ Capital Expenditure, Depreciation ■ R&D Expenses, R&D Expenses/Net Sales (Billions of yen) (Billions of yen) (%) 8.0 14.0 5.0% 7.0 12.0 4.0% 6.0 10.0 5.0 3.0% 8.0 4.0 6.0 2.0% 3.0 4.0 2.0 1.0% 1.0 2.0 0.0 0.0 0.0% FY2016 FY2017*1 FY2018*1
Slide 36: Trends of Shareholders' Returns
Appendix Trends of Shareholders’ Returns (Yen) (％) 50.0 46.0 41.0 38.5 33.5 31.5 31.5 31.5 (Plan) Dividends per share (yen) 31.5 31.5 31.5 33.5 38.5 41.0 46.0 50.0 Dividends on equity (DOE, %) 3.4 3.3 3.1 3.1 3.5 3.5 3.7 3.9 Repurchase of own shares 1.9 2.9 4.9 10.0 Total amount (billions of yen) Nu
Slide 37: Sustainable Development Goals and the azbil Group
Appendix Sustainable Development Goals and the azbil Group The founder’s vision formed the basis for the azbil Group’s philosophy of “human-centered automation.” Through management based on this philosophy, we are simultaneously pursuing sustainable development goals. By making continued, steady pro
Slide 38: 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” Investor Relations, Group Management Headquarters Email: azbil-ir@azbil.com URL: https://www.azbil.com/ir/ 38