Slide 1: Presentation Materials for the First Half Ended September 30, 2016
Human-centered Automation Azbil Corporation RIC: 6845.T, Sedol: 6985543 Presentation Materials For the First Half Ended September 30, 2016 (Based on Japanese GAAP) <Contents> 1. Financial Results for the First Half Ended September 30, 2016 2. Financial Plan for the Year Ending March 31, 2017 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. Sales for the azbil Group tend to be concentra
Slide 3: 1. Financial Results for the First Half Ended September 30, 2016
1. Financial Results for the First Half Ended September 30, 2016 3
Slide 4: Consolidated Financial Results
1. Financial Results for the First Half Ended September 30, 2016 Consolidated Financial Results ■ Orders received fell compared to the same period last year owing to a revision made to the way orders received are recorded and the fact that orders received for a number of large-scale projects were re
Slide 5: Segment Information - BA Business
1. Financial Results for the First Half Ended September 30, 2016 Segment Information - ■ BA Business ■ Owing to a revision made to the way orders received are recorded*1 and the fact that orders received for a number of large-scale projects were recorded in the same period last year, plus decrease i
Slide 6: Segment Information - AA Business
1. Financial Results for the First Half Ended September 30, 2016 Segment Information - ■ AA Business ■ Orders received were down on the same period last year due to the impact of foreign exchange rates and the fact that there had been orders received for large-scale projects in the same period last
Slide 7: Segment Information - LA Business
1. Financial Results for the First Half Ended September 30, 2016 Segment Information - ■ LA Business ■ Orders received steadily improved for gas/water meters and residential central air-conditioning systems, but fell in the Life Science Engineering (LSE) field; this was mainly because of the effect
Slide 8: [Reference] Orders Received by Segment
1. Financial Results for the First Half Ended September 30, 2016 [Reference] Orders Received by Segment [Billions of yen] 175.0 150.0 125.0 100.0 75.0 50.0 25.0 0.0 2014/3 2015/3 2016/3 2017/3 H1 H2 H1 H2 H1 H2 H1 ■BA 64.4 44.0 76.1 *1 46.1 85.5 *2 48.3 75.1 ■AA 46.5 46.5 49.1 47.9 50.1 44.7 45.7 ■L
Slide 9: [Reference] Sales by Segment
1. Financial Results for the First Half Ended September 30, 2016 [Reference] Sales by Segment [Billions of yen] 175.0 150.0 125.0 100.0 75.0 50.0 25.0 0.0 2014/3 2015/3 2016/3 2017/3 H1 H2 H1 H2 H1 H2 H1 ■BA 45.0 64.4 46.6 67.6 48.1 70.6 49.4 ■AA 42.4 48.3 44.5 49.0 43.6 49.8 46.0 ■LA 24.2 25.3 24.7
Slide 10: [Reference] Segment Profit (Operating Income)
1. Financial Results for the First Half Ended September 30, 2016 [Reference] Segment Profit (Operating Income) [Billions of yen] 15.0 12.5 10.0 7.5 5.0 2.5 0.0 (2.5) 2014/3 2015/3 2016/3 2017/3 H1 H2 H1 H2 H1 H2 H1 ■BA 1.5 9.0 2.4 9.8 1.7 10.3 1.6 ■AA 1.2 2.7 2.0 3.0 1.5 3.4 2.5 ■LA (0.3) (0.3) (0.8
Slide 11: Overseas Sales by Region
1. Financial Results for the First Half Ended September 30, 2016 Overseas Sales by Region [Billions of yen] <Compared to the same period last year> 25.0 25.0% Overseas sales decreased 20.0 20.0% compared to the same period last year mainly owing to the negative impact of foreign exchange rates. 15.0
Slide 12: Consolidated Financial Position
1. Financial Results for the First Half Ended September 30, 2016 Consolidated Financial Position Owing to seasonal factors, the assets and liabilities of the azbil Group tend to be lower at the end of the first half than at the end of the previous fiscal year. ■ Assets Notes and accounts receivable-
Slide 13: Consolidated Cash Flows
1. Financial Results for the First Half Ended September 30, 2016 Consolidated Cash Flows ■ Cash flows from operating activities increased due to a fall in inventories, but cash flows from investing activities decreased due to an increase in payments into time deposits as well as a fall in proceeds f
Slide 14: 2. Financial Plan for the Year Ending March 31, 2017
2. Financial Plan for the Year Ending March 31, 2017 14
Slide 15: Revised Plan
2. Financial Plan for the Year Ending March 31, 2017 Revised Plan The financial results for the first half slightly exceeded the plan, but there remains uncertainty regarding the outlook for capital investment in Japan and overseas. Also, since the strong yen is expected to continue, no changes are
Slide 16: Revised Plan by Segment [1]
2. Financial Plan for the Year Ending March 31, 2017 Revised Plan by Segment [1] [Billions of yen] Revised Initial plan Difference Previous Difference plan (5/13/2016) fiscal year (A) - (B) % Change (A) - (C) % Change (A) (B) (C) ■ B A Sales 120.0 120.0 - - 118.8 1.1 1.0 [Amortization of goodwill] [
Slide 17: Revised Plan by Segment [2]
2. Financial Plan for the Year Ending March 31, 2017 Revised Plan by Segment [2] The profit plan was revised but we are still aiming to achieve a segment profit greater than that of ＢＡ the previous fiscal year Sales for the full fiscal year are expected to be in line with the initial plan. While inc
Slide 18: [Reference] Sales by Segment
2. Financial Plan for the Year Ending March 31, 2017 [Reference] Sales by Segment [Billions of yen] 300.0 200.0 100.0 0.0 2014/3 2015/3 2016/3 2017/3 (Revised Plan) ■ B A 109.5 114.3 118.8 120.0 ■ A A 90.8 93.6 93.5 94.0 ■ L A 49.5 47.3 * 45.6 46.0 Consolidated 248.4 254.4 256.8 260.0 * In the fourt
Slide 19: [Reference] Segment Profit (Operating Income)
2. Financial Plan for the Year Ending March 31, 2017 [Reference] Segment Profit (Operating Income) [Billions of yen] 25.0 20.0 15.0 10.0 5.0 0.0 (5.0) 2014/3 2015/3 2016/3 2017/3 (Revised Plan) ■ B A 10.5 12.2 12.0 12.5 ■ A A 3.9 5.0 5.0 5.0 ■ L A (0.6) (1.9) 0.0 1.5 Consolidated 13.9 15.3 17.1 19.0
Slide 20: 3. Return to Shareholders
20 3. Return to Shareholders azbil
Slide 21: Dividend Plan: Annual dividend 74 yen per share
3. Return to Shareholders Dividend Plan Dividend plan for the fiscal year ending March 2017 →No change from the initial plan Annual dividend: 74 yen per share (Ordinary dividend raised by 2 yen, additional commemorative dividend of 5 yen) [Basic policy] We place great importance on the distribution
Slide 22: 4. Toward Future Business Development
4. Toward Future Business Development 22
Slide 23: Progress of the Medium-term Plan (FY2013-FY2016) [1]
4. Toward Future Business Development Progress of the Medium-term Plan (FY2013-FY2016) [1] Becoming a long-term partner for the customer and the community by offering solutions based on our technologies and products Taking global operations to the next level, with global expansion by moving into new
Slide 24: Progress of the Medium-term Plan (FY2013-FY2016) [2]
4. Toward Future Business Development Progress of the Medium-term Plan (FY2013-FY2016) [2] Targets for Net Sales : 260 billion yen (down 20 billion yen *) FY2016 Operating income : 19 billion yen (down 3 billion yen *) *Figures in parentheses represent comparison with initial plan (published May 201
Slide 25: Achievements and Strategies for Each Segment
4. Toward Future Business Development Achievements and Strategies for Each Segment Progress has been made in line with the initial plan (May 2013) and investments were made accordingly in upgrading the business infrastructure. • We are making steady progress with upgrading the business infrastruct
Slide 26: Achievements and Strategies for Strengthening the Corporate Structure
4. Toward Future Business Development Achievements and Strategies for Strengthening the Corporate Structure Progressing with the creation of new customer value, forming stronger relationships as a long-term partner Long-term partner • Upgrading of sales, service, and production systems across the
Slide 27: Aiming to Strengthen CSR Management and Business the azbil Way
4. Toward Future Business Development Aiming to Strengthen CSR Management and Business the azbil Way Providing opportunities for creative activities Presenting all stakeholders with the and growth by practicing the Group philosophy “human-centered” azbil Group Employees Management’s focus on shareho
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 7.0 12.0 5.0% 6.0 10.0 4.0% 5.0 8.0 3.0% 4.0 6.0 5.0 3.0 2.0% 1.9 4.0 2.0 1.6 1.0% 1.0 2.0 0.0 0.0 0.0% 2014/3 2015/3 2016/3 2017/3 201
Slide 30: 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” Azbil Corporation celebrates its 110th anniversary in 2016. Yamatake for 100 years, azbil for 10 years. Together 110 years. Thr