Consolidated Financial Results for the Fiscal Year Ended March 31, 2026

Notice: This document is a translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Consolidated Financial Results

for the Fiscal Year Ended March 31, 2026 (Based on Japanese GAAP)

Company name: Azbil Corporation

Stock exchange listing: Tokyo Stock Exchange Prime Market (Code 6845) URL: https://www.azbil.com/

Representative: Kiyohiro Yamamoto

Director, President and Group Chief Executive Officer

Contact: Yasunori Nawata

May 13, 2026

General Manager, Accounting Department, Group Management Headquarters

Phone: +81-3-6810-1009

Scheduled date of ordinary general meeting of shareholders: June 24, 2026 Scheduled date to file annual securities report: June 19, 2026 Scheduled date to commence dividend payments: June 25, 2026 Preparation of supplementary materials on financial results: Yes

Holding of financial results meeting: Yes (for institutional investors and analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the fiscal year ended March 31, 2026 (from April 1, 2025 to March 31, 2026)

   1. Consolidated financial results Percentages indicate year-on-year changes

      	Net sales		Operating income		Ordinary income		Net income attributable to owners of parent
      Year ended March 31, 2026 Year ended March 31, 2025	Millions of yen 298,930 300,378	% (0.5) 3.2	Millions of yen 47,304 41,486	% 14.0 12.6	Millions of yen 48,760 42,170	% 15.6 8.1	Millions of yen 38,565 40,955	% (5.8) 35.6

      Note: Comprehensive income Year ended March 31, 2026	46,632 million yen	16.8%
      Year ended March 31, 2025	39,915 million yen	5.9%

      	Net income per share	Diluted net income per share	Return on equity	Ordinary income/ total assets	Operating income/ net sales
      Year ended March 31, 2026 Year ended March 31, 2025	Yen 75.76 77.96	Yen - -	% 15.7 17.9	% 15.1 13.4	% 15.8 13.8

      Note: Azbil Corporation ("the Company") implemented a 4-for-1 common stock split effective on October 1, 2024. "Net income per share" has been calculated as if the stock split had been implemented at the beginning of the previous fiscal year.

   2. Consolidated financial position

      	Total assets	Net assets	Shareholders' equity ratio	Net assets per share
      	Millions of yen	Millions of yen	%	Yen
      As of March 31, 2026	332,240	255,999	76.1	497.71
      As of March 31, 2025	315,072	240,517	75.3	459.01

      Reference: Shareholders' equity As of March 31, 2026

      As of March 31, 2025

      252,853 million yen

      237,205 million yen

   3. Consolidated cash flows

      	Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at the end of period
      Year ended March 31, 2026 Year ended March 31, 2025	Millions of yen 38,032 43,953	Millions of yen (6,472) 2,032	Millions of yen (30,066) (29,771)	Millions of yen 97,931 92,637

2. Dividends

   	Dividend per share					Total amount of cash dividends (annual)	Payout ratio (consolidated)	Dividend on equity (consolidated)
   	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
   	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
   Year ended March 31, 2025	-	44.00	-	13.00	-	12,784	30.8	5.5
   Year ended March 31, 2026	-	13.00	-	19.00	32.00	16,589	42.2	6.7
   Year ending March 31, 2027 (forecast)	-	31.00	-	19.00	50.00		72.0

   Notes: 1. Details of 2nd quarter-end dividends for the fiscal year ending March 31, 2027 (forecast): an ordinary dividend of 19.00 yen, a commemorative dividned of 12.00 yen

   1. The Company has introduced an employee tock ownership plan, a Trust-Type Employee Shareholding Incentive Plan, and a stock compensation plan. The total amount of cash dividend includes the dividends for the stock of the Company held by trust accounts of these plans (256 million yn for the year ended March 31, 2025, 325 million yen for the year ended March 31, 2026).

   2. The total annual dividend forecast for the year ended March 31, 2025 is left blank, shown as a "-". The reason is as follows. The Company implemented a 4-for-1 common stock split effective on October 1, 2024. As regards dividends per share, the 2nd quarter-end dividends for the year ended March 31, 2025 are applied to shares held prior to the stock split, while the fisical year-end dividends for the year ended March 31, 2025 are applied shares held after the stock split. If the stock split were taken into account, the total annual dividend would be 24.00 yen per share.

3. Forecast of consolidated financial results for the fiscal year ending March 31, 2027 (from April 1, 2026 to March 31, 2027)

Percentages indicate year-on-year changes

Note: The Company will voluntarily adopt International Financial Reporting Standards ("IFRS") for its consolidated financial statements, starting from the first quarter of the fisical year ending March 31, 2027. Accordingly, forecast of consolidated financial results have been prepared in accordance with IFRS. As a result, year-on-year change ratios compared with the results for the fiscal year ended March 31, 2026, prepared under Japanese GAAP, are not presented.

The Company has resolved, at the Board of Directors meeting held on May 13, 2026, to repurchase its own stock.

For "Net income per share" in the forecast of consolidated financial results, the impact of these matter is not considered.

• Notes

  1. Significant changes in the scope of consolidation during the period

     Newly included: 1 company (Azbil Information Technology Center (Dalian) Co., Ltd.)

     Yes

  2. Changes in accounting policies, changes in accounting estimates, and retrospective restatements

     1. Changes in accounting policies accompanying revision of accounting standards, etc.: No

     2. Changes in accounting policies other than (a) above: No

     3. Changes in accounting estimates: No

     4. Retrospective restatements: No

  3. Number of issued shares (common stock)

     1. Total number of issued shares at the end of the period (including treasury shares)

        As of March 31, 2026

        541,372,736 shares

        As of March 31, 2025

        560,672,736 shares

     2. Number of treasury shares at the end of the period

        As of March 31, 2026

        33,337,561 shares

        As of March 31, 2025

        43,892,273 shares

     3. Average number of shares during the period

Notes: 1. The Company implemented a 4-for-1 common stock split effective on October 1, 2024. The total number of issued shares, the number of treasury shares and the average number of shares during the period have been calculated as if the stock split had been implemented at the beginning of the previous fiscal year.

2. The Company has introduced an employee stock ownership plan, a Trust-Type Employee Shareholding Incentive Plan, and a stock compensation plan. The number of treasury shares at the end of the period includes the Company's stock held by trust accounts for these plans (9,814,916 shares as of March 31, 2026; 11, 908,397 shares as of March 31, 2025). Also, the Company's stock held by these trust accounts is included in treasury shares that are deducted in the calculation of the average number of shares during the period (12,376,797 shares for the year ended March 31, 2026; 10,510,605 shares for the year ended March 31, 2025).

Contents

1. Overview of financial results and others 2

   1. Overview of financial results 2

   2. Overview of financial position 10

   3. Basic policy regarding profit sharing and the dividends for the current and next periods 11

2. Management policy 14

   1. Basic policy 14

   2. Management targets 14

   3. Medium- to long-term management strategy 15

3. Activities (present situation) of the azbil Group 17

4. Basic rationale for selection of accounting standards 19

5. Consolidated financial statements and related notes 20

   1. Consolidated balance sheets 20

   2. Consolidated statements of income and consolidated statements of comprehensive income 22

      Consolidated statements of income 22

      Consolidated statements of comprehensive income 23

   3. Consolidated statements of changes in net assets 24

   4. Consolidated statements of cash flows 26

   5. Notes to the consolidated financial statements 28

      Notes regarding going concern assumptions 28

      Notes on segment information 28

      Per share information 33

      Significant subsequent events 34

6. Other 35

   1. Management changes 35

   2. Status of orders received 36

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1) Overview for the current fiscal year

The business environment for the azbil Group is as follows.

In the field of heating, ventilation, and air conditioning (HVAC) control equipment/systems for large-scale buildings in Japan, strong demand driven by urban redevelopment plans has continued while retrofit demand, including interest in solutions for energy saving and lower CO2 emissions, has remained strong. As regards equipment/systems for production facilities, demand remained firm thanks to the decarbonizing of factories/plants and the promotion of DX, but demand in factory automation (FA) markets was seen to vary depending on the region and market.

As a result, financial results for the current consolidated fiscal year were as follows.

Orders received were 302,366 million yen overall, down 0.8% on the 304,723 million yen recorded in the previous consolidated fiscal year. Although there was an increase in the Building Automation (BA) business-which recorded large-scale projects, in Japan and abroad, against a backdrop of robust market conditions, while also benefitting from the implementation of various measures-there was a significant drop in orders received in the Life Automation (LA) business due to the transfer, in the previous consolidated fiscal year, of equity interests in Azbil Telstar,

S.L.U. Note 1 (hereinafter referred to as "Azbil Telstar"), a company which had played a central role in the Life Science Engineering field.

For the same reason there was a sharp drop in LA business sales. Accordingly, in spite of sales growth in the BA business, mainly in the fields for existing buildings and service, and also in the Advanced Automation (AA) business, mainly in the domestic and overseas process automation (PA) markets, net sales were 298,930 million yen, down 0.5% on the 300,378 million yen recorded in the previous consolidated fiscal year.

As regards profits, despite the recording of R&D expenses required by the medium-term plan, as well as increases in DX-related, personnel and other expenses, operating income was 47,304 million yen, up 14.0% on the 41,486 million yen recorded in previous consolidated fiscal year; this significant growth was mainly due to measures to enhance profitability, including cost pass-through. Ordinary income-which improved mainly due to the growth in operating income-also increased significantly to 48,760 million yen, up 15.6% on the 42,170 million yen recorded in the previous consolidated fiscal year, when a figure of 42,170 million yen was recorded. Net income attributable to owners of parent was 38,565 million yen, down 5.8% on the 40,955 million yen recorded in the previous consolidated fiscal year; this was primarily due to the recording of gain on sale of equity interests in Azbil Telstar (approx. 7.6 billion yen) as extraordinary income in the previous consolidated fiscal year.

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