Slide 1: Analyst Meeting Materials for FY2012 ended March 31, 2013
Human-centered Automation Azbil Corporation RIC: RIC 6845 6845.T, T SSedol: d l 6985543 Analyst Meeting Materials For FY2012 ended March 31 31, 2013 IR Dept. Finance Div. Email: azbil-ir@azbil.com URL: http://www.azbil.com/ir/ http://www azbil com/ir/
Slide 2: Contents
Contents Financial Results for FY2012 Business Plan for FY2013 Return to Shareholders New Medium-term Plan (FY2013-2016)
Slide 3: Notes
Notes: 1. Financial data and financial statements have been prepared based on Japan GAAP and the amounts have been rounded down. 2 2. S Segmentt names are abbreviated bb i t d as ffollows. ll B A: Building Automation A A: Advanced Automation L A: Life Automation 3. Each segment amounts include inter
Slide 4: Financial Results for FY2012
Financial Results for FY2012
Slide 5: Consolidated Financial Results
Financial Results for FY2012 Consolidated Financial Results [Compared to the previous fiscal year] [Compared to the business plan] Orders Orders received actually increased if the effect of an atypical Received factor on BA business for the previous year 1 was subtracted. AA business orders decrease
Slide 6: Segment Information
Financial Results for FY2012 Segment g Information [Compared to the previous fiscal year] [Compared to the business plan] In domestic markets (mainly new & existing buildings), revenue grew. BA Orders received increased, mainly overseas. If the effect of an atypical factor behind the surge in orders
Slide 7: [Reference] Orders Received by Segment
Financial Results for FY2012 [[Reference]] Orders Received by y Segment g [Billions of yen] Annual Half year 250.0 200.0 150.0 100.0 50.0 0.0 FY2009 FY2010 FY2011 FY2012 1H 2H 1H 2H Annual Half year FY2009 FY2010 FY2011 FY2012 FY2011 FY2012 B A 98.9 97.2 113.3 105.7 1 76.1 37.2 63.9 41.8 A A 69.7 82
Slide 8: [Reference] Sales by Segment
Financial Results for FY2012 [[Reference]] Sales by y Segment g [Billions of yen] Annual Half year 250.0 200.0 150.0 100.0 50.0 0.0 FY2009 FY2010 FY2011 FY2012 1H 2H 1H 2H Annual Half year FY2009 FY2010 FY2011 FY2012 FY2011 FY2012 1H 2H 1H 2H B A 96.6 102.1 103.8 107.4 44.3 59.5 45.3 62.0 A A 76.9 8
Slide 9: [Reference] Segment Profit (Operating Income)
Financial Results for FY2012 [[Reference]] Segment g Profit(Operating ( p g Income)) [Billions of yen] Annual Half year 16.0 12.0 8.0 4.0 0.0 FY2009 FY2010 FY2011 FY2012 1H 2H 1H 2H (4.0) Annual Half year FY2009 FY2010 FY2011 FY2012 FY2011 FY2012 1H 2H 1H 2H B A 11.5 11.7 10.3 10.1 2.2 8.0 1.7 8.4 A
Slide 10: Overseas Sales by Region
Financial Results for FY2012 Overseas Sales by y Region g Despite the fall in sales to equipment manufacturers resulting from stagnant demand for semiconductors there continued to be robust investment semiconductors, investment, mainly among emerging economies, in upgrading infrastructure (factories
Slide 11: Consolidated Financial Position
Financial Results for FY2012 Consolidated Financial Position Assets and liabilities increased with the addition of newly consolidated companies, such as Telstar. Goodwill increased with the addition of newly consolidated companies. [Billions of yen] Current Previous Current Previous Difference Diffe
Slide 12: Consolidated Cash Flows
Financial Results for FY2012 Consolidated Cash Flows Despite an increase in net cash used for investment activities resulting from the acquisition of subsidiaries,, the accelerated collection of receivables led to increased cash flow,, and so it was possible to maintain free cash flow at the same le
Slide 13: Progress of 3 Initiatives in FY2012
Financial Results for FY2012 Progress g of 3 Initiatives in FY2012 Aiming to become a long-term partner for Taking global operations to the next Initiative both the customer and the community level. Global initiative: Expansion Initiative #1 through offering solutions based on azbil into new regions
Slide 14: Business Plan for FY2013
azbil Business Plan for FY2013
Slide 15: Consolidated Financial Plan
Business Plan for FY2013 Consolidated Financial Plan Building on the achievements of FY2012 measures implemented to expand business and upgrade the business infrastructure, we will aim to boost growth of our business in Japan and abroad. Although there will be an increase in cost 1 and goodwill amor
Slide 16: Segment Information
Business Plan for FY2013 Segment g Information BA The business involving local building markets overseas is expected to expand. In Japan, although there may be a small decline in the market for new buildings, it is planned to increase revenue and profits for the BA business as a whole by p y achievi
Slide 17: [Reference] Sales by Segment
Business Plan for FY2013 [[Reference]] Sales by y Segment g [Billions of yen] Annual Half year 300.0 250.0 200.0 150.0 100.0 50.0 0.0 FY2010 FY2011 FY2012 FY2013 1H 2H 1H 2H Annual Half year FY2010 FY2011 FY2012 FY2013 FY2012 FY2013 1H 2H 1H 2H B A 102.1 103.8 107.4 111.0 45.3 62.0 44.0 67.0 A A 80.
Slide 18: [Reference] Segment Profit (Operating Income)
Business Plan for FY2013 [[Reference]] Segment g Profit(Operating ( p g Income)) [Billions of yen] Annual Half year 16.0 12.0 8.0 4.0 0.0 FY2010 FY2011 FY2012 FY2013 1H 2H 1H 2H (4.0) Annual Half year FY2010 FY2011 FY2012 FY2013 FY2012 FY2013 1H 2H 1H 2H B A 11.7 10.3 10.1 10.3 1.7 8.4 1.3 9.0 A A 3
Slide 19: Return to Shareholders
azbil Return to Shareholders
Slide 20: Dividends Plan
Return to Shareholders Dividends Plan Putting priority on the interests of our shareholders shareholders, we will maintain a stable dividend while working to improve both consolidated business performance and capital net income and net asset dividend rates. Dividends for FY2012 (year-end) and FY2013
Slide 21: New Medium-term Plan (FY2013-2016)
New Medium Medium-term term Plan(FY2013-2016) Plan(FY2013 2016)
Slide 22: Group Philosophy and Long-term Goals
New Medium-term Plan(FY2013-2016) Group p Philosophy p y and Long-term g Goals FY2021 will mark 10 years since the birth of the new azbil (115th anniversary of the company’s founding) and the start of a 10-year 10 year plan aimed at achieving long-term long term goals goals. < azbil Group Philosophy
Slide 23: Implementing a Business Plan to Achieve Long-term Goals
New Medium-term Plan(FY2013-2016) Implementing a Business Plan to Achieve Long-term Goals Aiming to achieve our long-term goals, since 2004 we have been implementing reforms in 3 phases over 10 years, with FY2013 marking the final year. The business environment was transformed as a result of the Leh
Slide 24: Medium-term Financial Target
New Medium-term Plan(FY2013-2016) Medium-term Financial Target g The new medium-term plan is to be implemented over 4 years, FY2013-2016. By developing our unique “human-centered human centered automation” automation businesses in Japan and abroad, we aim to harness the synergies of the entire Group
Slide 25: Aiming at Global Growth (Japan & Overseas)
New Medium-term Plan(FY2013-2016) Aiming g at Global Growth (Japan ( p & Overseas)) The 3 key initiatives point the way for azbil to achieve sustainable growth. Solutions based on technologies and products will be implemented in fields that are common to domestic and overseas markets markets. When i
Slide 26: 3 Growth Fields for Future Business Expansion
New Medium-term Plan(FY2013-2016) 3 Growth Fields for Future Business Expansion p In offering solutions to become a long-term partner for both the customer and the community, y we have designated g 3 priority p y fields for growth, g developing p g a new business model that relies on distinctly azbi
Slide 27: Action Plan for Each Business Segment
New Medium-term Plan(FY2013-2016) Action Plan for Each Business Segment g BA Building Automation Expand business through energy-saving refurbishment of facilities and equipment, targeting small- and medium-sized buildings, data centers, research labs and other key customer facilities FY2016 Target E
Slide 28: [BA] Core & Growth Areas / Products & Services
New Medium-term Plan(FY2013-2016) [[BA]] Core & Growth Areas / Products & Services Exploiting azbil’s energy-management expertise (expanding scope of domestic business, entering overseas markets with new partner for each region). New BA initiative targeting customers’ customers vital facilities (dat
Slide 29: [AA] Core & Growth Areas / Products & Services
New Medium-term Plan(FY2013-2016) [[AA]] Core & Growth Areas / Products & Services Global development of production/engineering/service functions (systems, field instruments, control valves, etc.) Global development of customized design/development functions to facilitate the supply of customer valu
Slide 30: [LA] Core & Growth Areas / Products & Services
New Medium-term Plan(FY2013-2016) [[LA]] Core & Growth Areas / Products & Services New Life Science Engineering (LSE) business initiative (integration of next-generation production equipment and environmental systems). Solution business initiative for energy flow and water lines. Develop market for
Slide 31: Global Operations
New Medium-term Plan(FY2013-2016) Global Operations p To enhance competitiveness and raise customer value, matched to regional characteristics, local solution structures will be further upgraded and strengthened, aiming to achieve overseas sales of over 20% of net sales in FY2016. Overseas sales/ O
Slide 32: Further Reinforcing Business Structures to Realize Sustainable Growth
New Medium-term Plan(FY2013-2016) Further Reinforcing Business Structures to Realize Sustainable Growth Create global production and procurement systems Structural reform of global optimized ti i d byb region/product i / d t (production ( d ti site it scrap- production and development and-build) As
Slide 33: Structural Reform of Global Production and Development
New Medium-term Plan(FY2013-2016) Structural Reform of Global Production and Development p [Establish development, production, procurement and logistics on a global scale] Three pronged development structure (Japan, Three-pronged (Japan USA, USA Europe): Accelerate technology and product development
Slide 34: Structural Reform of Engineering and Service Business
New Medium-term Plan(FY2013-2016) Structural Reform of Engineering g g and Service Business Knowledge-intensive services based on ample data and proven track record Expand remote maintenance (BA) and operational support services (AA) Develop environment/energy management services (ENEOPT) Offe
Slide 35: Human Resources Reform
New Medium-term Plan(FY2013-2016) Human Resources Reform Personnel composition and human resources training to meett the th needs d off the th FY2016 b businesses i envisaged i d in i the new medium-term plan. azbil Group’s business initiatives Strengthen the solutions business based on technologies
Slide 36: CSR Management
New Medium-term Plan(FY2013-2016) CSR Management g Employees, Providing opportunities for creative Presenting all stakeholders with activities and growth through putting Partners the “human-centered” azbil the Group philosophy into action Group Human-centered Human- Enhancing the value offered to Au
Slide 37: New Medium-term Plan Summary
New Medium-term Plan(FY2013-2016) New Medium-term Plan Summary y Target for FY2016 Net sales ¥280.0 billion, Operating income ¥22.0 billion Aiming to become a long-term partner for both the customer and the community through offering solutions based on azbil technologies and products 3 Taking global
Slide 38: Relevant Information
azbil Relevant Information
Slide 39: Life Science Engineering Business
Relevant Information Life Science Engineering Business To provide new solutions that realize enhanced safety and productivity in the workplace through combining Telstar’s design, engineering and manufacturing process knowledge and the azbil Group’s automation technologies
Slide 40: Capital Expenditure, Depreciation and R&D Expenses
Relevant Information Capital p Expenditure, p Depreciation p and R&D Expenses p [Billions of yen] C it l Expenditure, Capital E dit Depreciation D i ti R&D E Expenses, R&D E Expenses/Net /N t S Sales l Capital Expenditure 3.3 3.0 3.1 4.0 R&D Expenses 8.9 8.8 7.8 8.6 R&D Expenses/ Depreciation 4.4 4.
Slide 41: azbil Group Philosophy
azbil Group Philosophy To realize safety, comfort, and fulfillment in people’s people s lives and contribute to global environmental preservation through “human-centered automation”