Azbil Corporation · TSE:6845
Azbil — Q1 FY2021 Earnings Presentation
35 slides from Azbil's earnings presentation, Aug 5, 2021
Slide 1: Presentation Materials for the First Quarter of Fiscal Year 2021
Presentation Materials for the First Quarter of Fiscal Year 2021 (Ending March 31, 2022) (Based on Japanese GAAP) August 5, 2021 Azbil Corporation RIC: 6845.T, Sedol: 6985543 © Azbil Corporation. All rights reserved.
Slide 2: COVID-19 condolences and sympathies
We would like to express our deepest condolences to those who have lost loved ones as a result of the novel coronavirus disease (COVID-19). We would also like to extend our sympathies to all those who have suffered from this disease and to those who have been experiencing hardships due to the pandem
Slide 3: Contents
Contents 1. Financial Results for the First Quarter of FY2021 4 2. Financial Plan for FY2021 14 →No revision from the most recent announcement 3. Returning Profits to Shareholders 18 →No revision from the most recent announcement Appendix 23 Notes 34 © Azbil Corporation. All rights reserved. 3
Slide 4: 1. Financial Results for the First Quarter of FY2021
1. Financial Results for the First Quarter of FY2021 © Azbil Corporation. All rights reserved. 4
Slide 5: Consolidated Financial Results
1. Financial Results for the First Quarter of FY2021 Consolidated Financial Results Overall orders received were up on the same period last year, reversing the decline seen then, which resulted from the spread of COVID-19. This growth was due to increased orders received in the AA business followi
Slide 6: Segment Information: BA Business
1. Financial Results for the First Quarter of FY2021 Segment Information: BA Business In the domestic market, demand has continued to grow for urban redevelopment projects, and there is growing interest in solutions related to ventilation improvement, energy savings, and CO2 reduction. Furthermore,
Slide 7: Segment Information: AA Business
1. Financial Results for the First Quarter of FY2021 Segment Information: AA Business As regards market trends in Japan and abroad, expanding investment in 5G has led to increasing demand in market for semiconductor manufacturing equipment. Although it is still unclear when COVID-19 will abate, a gr
Slide 8: Segment Information: LA Business
1. Financial Results for the First Quarter of FY2021 Segment Information: LA Business The Lifeline field (gas/water meters, etc.) depends on cyclical demand for meter replacement as required by law and thus demands can be expected to remain stable. However, some changes have been observed, such as L
Slide 9: Reference: Orders Received by Segment
1. Financial Results for the First Quarter of FY2021 Reference: Orders Received by Segment ■ Comparison to past results (Q1) ■ Quarterly (3 months) (Billions of yen) (Billions of yen) FY2020 FY2021 100.0 100.0 75.0 75.0 50.0 50.0 25.0 25.0 0.0 0.0 FY2018 FY2019 FY2020 FY2021 FY2020 FY2021 Q1 Q1 Q1 Q
Slide 10: Reference: Sales by Segment
1. Financial Results for the First Quarter of FY2021 Reference: Sales by Segment ■ Comparison to past results (Q1) ■ Quarterly (3 months) (Billions of yen) (Billions of yen) FY2020 FY2021 100.0 100.0 75.0 75.0 50.0 50.0 25.0 25.0 0.0 0.0 FY2018 FY2019 FY2020 FY2021 FY2020 FY2021 Q1 Q1 Q1 Q1 Q1 Q2 Q3
Slide 11: Reference: Segment Profit (Operating Income)
1. Financial Results for the First Quarter of FY2021 Reference: Segment Profit (Operating Income) ■ Comparison to past results (Q1) ■ Quarterly (3 months) (Billions of yen) (%) (Billions of yen) (%) FY2020 FY2021 12.5 25.0 12.5 25.0 10.0 20.0 10.0 20.0 7.5 15.0 7.5 15.0 5.0 10.0 5.0 10.0 2.5 5.0 2.5
Slide 12: Overseas Sales by Region
1. Financial Results for the First Quarter of FY2021 Overseas Sales by Region Overseas sales rose by 6.6% on the same period last year. (Billions of yen) (%) 12.5 25.0 Sales declined in Asia owing to continued sluggish investment because of the COVID-19 pandemic. However, the AA business 10.0 20.0 a
Slide 13: Consolidated Financial Position
1. Financial Results for the First Quarter of FY2021 Consolidated Financial Position Assets Seasonal factors typically lead to net sales concentrating in the fourth quarter, with a corresponding decline in trade receivables in the first quarter due to the processing of collections. Thus, there was
Slide 14: 2. Financial Plan for FY2021
2. Financial Plan for FY2021 →No revision from the most recent announcement © Azbil Corporation. All rights reserved. 14
Slide 15: Consolidated Financial Plan
2. Financial Plan for FY2021 Consolidated Financial Plan No change to the financial plan published on May 14, 2021 Our financial results in the first quarter of FY2021 have been almost entirely within the range of the plan. Although the prospects remain unclear for global containment of the COVID-19
Slide 16: Financial Plan by Segment
2. Financial Plan for FY2021 Financial Plan by Segment BA Demand for air conditioning (HVAC) control equipment and systems for large-scale buildings will remain high. Both sales and profits are expected to increase thanks to a healthy order backlog for new buildings and growing demand for the refu
Slide 17: Reference: Sales by Segment and Segment Profit (Operating Income)
2. Financial Plan for FY2021 Reference: Sales by Segment and Segment Profit (Operating Income) ■ Sales by segment ■ Segment profit (operating income) (Billions of yen) (Billions of yen) (%) 300.0 30.0 15.0 250.0 25.0 12.5 200.0 20.0 10.0 150.0 15.0 7.5 100.0 10.0 5.0 50.0 5.0 2.5 0.0 0.0 0.0 FY2018
Slide 18: 3. Returning Profits to Shareholders
3. Returning Profits to Shareholders →No revision from the most recent announcement © Azbil Corporation. All rights reserved. 18
Slide 19: Plan to Further Improve Shareholder Returns in Accordance with the Basic Policy
3. Returning Profits to Shareholders Plan to Further Improve Shareholder Returns in Accordance with the Basic Policy In line with our basic policy—promoting shareholder returns, investment Basic in growth and healthy financial foundation—we will increase dividends policy and repurchase the Company’s
Slide 20: FY2021 Annual Dividend Plan
3. Returning Profits to Shareholders FY2021 Annual Dividend Plan FY2021 In our business plan for FY2021, the first year of the medium-term plan, we are aiming to increase net sales and set a new record annual for profits. dividend We will therefore increase the annual dividend by 5 yen to 60 yen per
Slide 21: Repurchase of Own Stock
3. Returning Profits to Shareholders Repurchase of Own Stock FY2021 Aiming to improve capital efficiency, and considering current and forecast business repurchase of own stock performance, we are repurchasing the Company’s own stock up to a maximum of (in progress) 10 billion yen. Giving due conside
Slide 22: Trend of Shareholder Returns
3. Returning Profits to Shareholders Trend of Shareholder Returns The dividend per share has been retroactively revised, taking into account the effects of the 2-for-1 common stock split effective in 2018. (Yen) Dividend per share Dividend on equity (DOE) (%) 60.0 5.0 4.2 55.0 (plan) 4.5 4.0 3.9 50.
Slide 23: Appendix
Appendix © Azbil Corporation. All rights reserved. 23
Slide 24: Capital Expenditure, Depreciation and R&D Expenses
Capital Expenditure, Depreciation and R&D Expenses Full-year results/Q1 results for FY2021 Full-year plan for FY2021 ■ Capital expenditure, depreciation ■ R&D expenses, R&D expenses/Net sales ratio (Billions of yen) (Billions of yen) (%) 13.5 15.0 6.0 15.0 (plan) 12.1 (plan) 12.5 12.5 5.0 10.0 10.0
Slide 25: Long-term Targets and Medium-term Plan
Long-term Targets and Medium-term Plan The azbil Group previously defined three growth fields—new automation, environment and Long-term energy, and the life-cycle solution—which share a common foundation of automation technology. Focusing on the growth of these fields, we will achieve growth globa
Slide 26: Three Growth Fields that Share a Common Foundation of Automation Technology
Three Growth Fields that Share a Common Foundation of Automation Technology The three growth fields, which share a common foundation of automation technology, will enable continuously carrying out “improvements to the quality of space and productivity” in the customers’ assets, while curbing energy
Slide 27: Initiatives in the First Quarter
Initiatives in the First Quarter (with respective dates of announcement) Azbil to develop digital solutions for intelligent building management systems (Jun. 9, 2021) New automation Azbil has started developing new digital solutions for use with intelligent building management systems* (IBMS) fo
Slide 28: The azbil Group's CSR Management: Contributing to Society's Sustainable Development
The azbil Group’s CSR Management: Contributing to Society’s Sustainable Development Business activities and growth that Through the medium-term plan as well, we will promote contribute “in series” to the Group management and achievement of a sustainable society enhance corporate The azbil Group’s Gu
Slide 29: Essential Goals of azbil Group for SDGs
Essential Goals of azbil Group for SDGs Regarding SDGs, we have set our four own essential goals (I to IV) as well as specific targets, and we are now working to steadily implement them. Furthermore, we are continuously reviewing and raising their levels Preserving the Earth’s environment Fulfilling
Slide 30: Contribution "In Series" to the Achievement of a Sustainable Society
Contribution “In Series” to the Achievement of a Sustainable Society Reduce about 170 times of the CO2 (environmental burden) from business activities of the azbil Group at customers’ sites By providing our customers with automation equipment/systems, energy management and other solutions, as well a
Slide 31: Progress of Corporate Governance Reforms (1)
Progress of Corporate Governance Reforms (1) Number of directors Composition of independent outside directors (People) Total number of directors Independent outside directors 12 11 11 11 10 9 9 45.5% 2020 45.5% 2021 5 out of 11 5 out of 11 6 5 5 5 54.5% 54.5% 4 3 3 0 2017 2018 2019 2020 2021 (Year)
Slide 32: Progress of Corporate Governance Reforms (2)
Progress of Corporate Governance Reforms (2) Skill matrix Sustainability • Disclosed skill matrix (2021) • In the medium-term plan, we recognize that addressing ‒ The Board of Directors at the meeting held on May 14, 2021 defined the skills sustainability is not simply a response to risk, but also a
Slide 33: External Evaluation and Initiatives (as of July 2021)
External Evaluation and Initiatives (as of July 2021) ESG-related topics—Inclusion in ESG indexes, external evaluation and initiatives Four indexes adopted by the Government Pension Investment Fund (GPIF) of Japan FTSE Blossom Japan Index MSCI Japan ESG Select Leaders Index MSCI Japan Empowe
Slide 34: 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 azbil Group’s segments (each identified by abbreviation) together with the various sub-segments and their principal business fields. BA: Buildin
Slide 35: IR Inquiries and Disclaimer
IR Inquiries and Disclaimer Inquiries regarding investor relations Azbil Corporation Investor Relations Phone: +81-3-6810-1031 Email: azbil-ir@azbil.com Disclaimer The projections are based on management’s assumptions, intent and expectations in light of the information currently available to it, an