Slide 1: Presentation Materials for the First Quarter of Fiscal Year 2022
Presentation Materials for the First Quarter of Fiscal Year 2022 (Ending March 31, 2023) (Based on Japanese GAAP) August 4, 2022 Azbil Corporation RIC: 6845.T, Sedol: 6985543 © Azbil Corporation. All rights reserved.
Slide 2: Announcement Points
Announcement Points 1. Consolidated Financial Results for the First Quarter of FY2022 ⚫ Orders remained steady. Although orders received in the same period last year benefitted from the renewal of large multi-year service contracts, overall orders received increased by 5%. Order backlog grew by 25%,
Slide 3: Contents
Contents 1. Consolidated Financial Results for the First Quarter of FY2022 4 2. Consolidated Financial Plan for FY2022 15 →No revision from the most recent announcement 3. Returning Profits to Shareholders 21 →No revision from the most recent announcement 4. Initiatives to Enhance Corporate Governan
Slide 4: 1. Consolidated Financial Results for the First Quarter of FY2022
1. Consolidated Financial Results for the First Quarter of FY2022 © Azbil Corporation. All rights reserved.
Slide 5: Consolidated Financial Results
1. Consolidated Financial Results for the First Quarter of FY2022 Consolidated Financial Results (Billions of yen) ⚫ Overall orders received grew compared with the same FY2021 FY2022 Difference period last year. This reflects robust demand for the BA Q1 Q1 business, related to urban redevelopment pr
Slide 6: Segment Information: BA Business
1. Consolidated Financial Results for the First Quarter of FY2022 Segment Information: BA Business In the domestic market, demand has continued to grow for urban redevelopment projects in the Tokyo metropolitan area and for heating, ventilation, and air conditioning (HVAC) control equipment/systems
Slide 7: Segment Information: AA Business
1. Consolidated Financial Results for the First Quarter of FY2022 Segment Information: AA Business As regards market trends in Japan and abroad, expanding investment in 5G and digital transformation (DX) has led to sustained high demand in the market for semiconductor manufacturing equipment, and ov
Slide 8: Segment Information: LA Business
1. Consolidated Financial Results for the First Quarter of FY2022 Segment Information: LA Business The Lifeline field (gas/water meters, etc.) depends on cyclical demand for meter replacement as required by law and thus demand can be expected to remain stable. However, changes in some markets have b
Slide 9: Reference: Orders Received by Segment
1. Consolidated Financial Results for the First Quarter of FY2022 Reference: Orders Received by Segment ◼ Comparison to past results (Q1) ◼ Quarterly (3 months) (Billions of yen) (Billions of yen) FY2021 FY2022 100.0 100.0 75.0 75.0 50.0 50.0 25.0 25.0 0.0 0.0 FY2019 FY2020 FY2021 FY2022 FY2021 FY20
Slide 10: Reference: Order Backlog by Segment
1. Consolidated Financial Results for the First Quarter of FY2022 Reference: Order Backlog by Segment ◼ Comparison to past results (Q1) ◼ Quarterly (3 months) (Billions of yen) (Billions of yen) FY2021 FY2022 200.0 200.0 150.0 150.0 100.0 100.0 50.0 50.0 0.0 0.0 FY2019 FY2020 FY2021 FY2022 FY2021 FY
Slide 11: Reference: Sales by Segment
1. Consolidated Financial Results for the First Quarter of FY2022 Reference: Sales by Segment ◼ Comparison to past results (Q1) ◼ Quarterly (3 months) (Billions of yen) (Billions of yen) FY2021 FY2022 100.0 100.0 75.0 75.0 50.0 50.0 25.0 25.0 0.0 0.0 FY2019 FY2020 FY2021 FY2022 FY2021 FY2022 Q1 Q1 Q
Slide 12: Reference: Segment Profit (Operating Income)
1. Consolidated Financial Results for the First Quarter of FY2022 Reference: Segment Profit (Operating Income) ◼ Comparison to past results (Q1) ◼ Quarterly (3 months) (Billions of yen) (%) (Billions of yen) (%) FY2021 FY2022 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.
Slide 13: Overseas Sales by Region
1. Consolidated Financial Results for the First Quarter of FY2022 Overseas Sales by Region (Billions of yen) (%) Overseas sales rose by 18.1% on the same period last year. 15.0 25.0 Sales in China were lower because little progress was made in the recording of sales for some products due to parts pr
Slide 14: Consolidated Financial Position
1. Consolidated Financial Results for the First Quarter of FY2022 Consolidated Financial Position ⚫ Assets Although inventories increased, seasonal factors lead to net sales concentrating in the fourth quarter, while a corresponding decline in trade receivables in the first quarter due to the proces
Slide 15: 2. Consolidated Financial Plan for FY2022
2. Consolidated Financial Plan for FY2022 →No revision from the most recent announcement © Azbil Corporation. All rights reserved.
Slide 16: Consolidated Financial Plan
2. Consolidated Financial Plan for FY2022 Consolidated Financial Plan No change to the financial plan published on May 13, 2022 We will strive to expand business in the three growth fields (see page 32), which address new issues facing society and customer needs, while ensuring that we tap into robu
Slide 17: Countering Shortages and Price Hikes of Parts to Achieve the Financial Plan
2. Consolidated Financial Plan for FY2022 Countering Shortages and Price Hikes of Parts to Achieve the Financial Plan ⚫ To increase sales, we will promote growth measures in the three growth fields and overseas market. At the same time, in order to steadily convert our order backlog into sales, we w
Slide 18: Financial Plan by Segment (1)
2. Consolidated Financial Plan for FY2022 Financial Plan by Segment (1) We plan to increase both sales and profits thanks to the order backlog and increasing demand BA related to both new buildings and existing buildings. ⚫ Demand for HVAC control equipment/systems for new large-scale buildings cont
Slide 19: Financial Plan by Segment (2)
2. Consolidated Financial Plan for FY2022 Financial Plan by Segment (2) ⚫ Against a backdrop of robust orders, by responding promptly and appropriately to changes and risks in the business environment—such as shortages and price hikes of parts—we expect to achieve increased sales and profits in all
Slide 20: Reference: Sales by Segment and Segment Profit (Operating Income)
2. Consolidated Financial Plan for FY2022 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.
Slide 21: 3. Returning Profits to Shareholders
3. Returning Profits to Shareholders →No revision from the most recent announcement © Azbil Corporation. All rights reserved.
Slide 22: 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 in Basic policy growth and healthy financial foundation—we are repurchasing the Company’s own stock and will in
Slide 23: FY2022 Annual Dividend Plan
3. Returning Profits to Shareholders FY2022 Annual Dividend Plan FY2022 The Company plans to increase the annual dividend by 5 yen per share, to 65 yen per share. dividend ⚫ Considering parts shortages, inflation, and other factors, the outlook for the global economic environment is expected to rema
Slide 24: Repurchase of Own Stock and Cancellation of Treasury Shares
3. Returning Profits to Shareholders Repurchase of Own Stock and Cancellation of Treasury Shares Repurchase of own stock We are repurchasing the Company’s own stock up to a maximum of 10.0 billion yen (or 4.0 million shares). (in progress) * Progress of repurchase until July 31, 2022: 1,992,800 shar
Slide 25: 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) (%) 70.0 4.4 5.0 (plan) 65.0 4.2 4.5 3.9 4.0
Slide 26: 4. Initiatives to Enhance Corporate Governance
4. Initiatives to Enhance Corporate Governance © Azbil Corporation. All rights reserved.
Slide 27: Transition to a Company with a Three-committee Board Structure
4. Initiatives to Enhance Corporate Governance Transition to a Company with a Three-committee Board Structure ⚫ Transition to a company with a three-committee board structure ➢ Aiming to promote further reforms in corporate governance, the Company transitioned to a company with a three-committee boa
Slide 28: Revision of the Executive Remuneration System and Disclosure of Remuneration Policy
4. Initiatives to Enhance Corporate Governance Revision of the Executive Remuneration System and Disclosure of Remuneration Policy With regard to our executive remuneration system, in order to add impetus to the realization of our long-term targets (to achieve by FY2030) and the medium-term plan (FY
Slide 29: Appendix
Appendix © Azbil Corporation. All rights reserved.
Slide 30: Capital Expenditure, Depreciation and R&D Expenses
Capital Expenditure, Depreciation and R&D Expenses Full-year results/Q1 results for FY2022 Full-year plan for FY2022 ■ Capital expenditure, depreciation ■ R&D expenses, R&D expenses/Net sales ratio (Billions of yen) (Billions of yen) (%) 15.0 15.0 6.0 13.3 14.3 (plan) (plan) 12.5 12.5 5.0 10.0 10.0
Slide 31: 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 energy, and life- Long-term cycle solution—which share a common foundation of automation technology. Focusing on the growth of these targets fields, we will achieve growth
Slide 32: Three Growth Fields that Share a Common Foundation of Automation Technology
Three Growth Fields that Share a Common Foundation of Automation Technology ⚫ Sharing a common foundation of automation technology, the three growth fields will enable continually carrying out improvements to the quality of space and productivity in customers’ assets as well as curbing energy usage
Slide 33: Initiatives in the First Quarter
Initiatives in the First Quarter (with respective dates of announcement) ⚫ Launch of the Pharmanage V management system for the manufacture of pharmaceuticals and medical devices; started supplying as a software package MES (Jun. 6, 2022) ➢ Pharmanage V is a manufacturing execution system (MES)* dev
Slide 34: Sustained Growth and Contribution "In Series" to the Achievement of a Sustainable Society
Sustained Growth and Contribution “In Series” to the Achievement of a Sustainable Society The azbil Group is committed to continuously enhancing enterprise value based on mutual trust with stakeholders, to realize “safety, comfort, and fulfillment” in people’s lives and contributing “in series” to a
Slide 35: Essential Goals of azbil Group for SDGs
Essential Goals of azbil Group for SDGs Regarding SDGs, we have set four of our 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. Ⅰ Environment and energy Ⅱ New automation
Slide 36: 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 azbil Group at customers’ sites By providing our customers with automation equipment/systems, energy management and other solutions, as well as fo
Slide 37: Contribution to the Environment
Contribution to the Environment Regarding greenhouse gas emissions (scopes 1+2)*1 associated with our own business activities, we have already launched specific initiatives. Aiming to achieve zero emissions by 2050, we have developed our long-term vision for reducing greenhouse gas emissions, and we
Slide 38: 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 12 11 11 11 10 9 8 33.3% 45.5% 2021 2022 5 out of 11 8 out of 12 6 5 5 5 54.5% 4 66.7% 3 0 2018 2019 2020 2021 2022 (Year)
Slide 39: 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 40: External Evaluation and Initiatives (as of July 2022)
External Evaluation and Initiatives (as of July 2022) ESG-related topics—Inclusion in ESG indexes, external evaluation and initiatives ⚫ Five indexes adopted by the Government Pension Investment Fund (GPIF) of Japan ⚫ FTSE Blossom Japan Index ⚫ FTSE Blossom Japan Sector Relative Index ⚫ MSCI Japan E
Slide 41: Notes (1)
Notes (1) 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: Bui
Slide 42: Notes (2)
Notes (2) (from page 35) 1. Science-based targets: Greenhouse gas emission reduction targets that are consistent with scientific evidence. 2. The azbil Group’s own sustainable design principles: This design strives to create and provide products that contribute to solving global environmental issues
Slide 43: 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