Azbil CorporationTSE: 6845

Presentation Materials for the Fiscal Year Ended March 31, 2026

· Issued by Azbil Corporation


Presentation Materials for the Fiscal Year Ended March 31, 2026

May 13, 2026

Azbil Corporation

RIC: 6845.T, Sedol: 6985543

© Azbil Corporation. All rights reserved.

Contents

  1. Consolidated Financial Results for FY2025 4



  2. Consolidated Financial Plan for FY2026 13

  3. Returning Profits to Shareholders 17

  4. Progress in Implementing the Medium-term Plan 22

  5. Aiming for Further Growth as We Mark our 120th Anniversary:

Adopting New Branding and Fostering a Creative, Rewarding Work Environment 30

Appendix 35

Notes 42

Impact of the Middle East situation on the consolidated financial plan

Against the backdrop of the situation in the Middle East (including the conflict involving the United States and Iran), parts of the business environment are currently being affected by such issues as resource prices, logistics, and procurement. Owing to the high degree of uncertainty regarding the impact of the Middle East situation, our consolidated financial plan takes into account only those effects that can be confirmed at this time.

Voluntary adoption of International Financial Reporting Standards (IFRS)

The Company will voluntarily adopt International Financial Reporting Standards (IFRS) from the first quarter of FY2026. For details on how this will affect financial figures, refer to page 36.

Highlights

  1. Consolidated Financial Results for FY2025

    • In the BA and AA businesses, orders received, sales, and segment profit all increased compared to FY2024 by capturing demand amidst favorable market conditions. In the LA business, however, results decreased due to the impact of the FY2024 transfer of an overseas subsidiary, Azbil Telstar (ATL). Consequently, overall orders received and net sales decreased, while operating income increased compared to FY2024 thanks to measures to strengthen profitability, etc.

      If the effect of the transfer is excluded, both orders received and net sales effectively increased.

    • Net income attributable to owners of parent decreased compared to FY2024, mainly because of the recording of gain on sales of equity interests in ATL (7.6 billion yen) as extraordinary income in FY2024.

  2. Consolidated Financial Plan for FY2026

    • As regards the impact of the Middle East situation on our businesses, the plan takes into account only what is currently evident.

    • We plan for increased revenue in each business segment, with growth being achieved primarily in the BA business, which has a large order backlog. Inflation is expected to drive up the cost of parts/materials and personnel expenses, thereby impacting profits; however, we will implement measures to strengthen profitability, including cost pass-through, and harness DX to improve operational efficiency. We thus aim to achieve higher business profits.

  3. Returning Profits to Shareholders

    • Given the strengthened profitability of our business foundation, supported by results through FY2025, and efficient balance sheet management, FY2025/FY2026 dividends will be increased and the share buyback program will be expanded in FY2026.

    • In FY2026, in addition to increasing the ordinary dividend by 6 yen, we plan to issue a commemorative dividend of 12 yen, making an annual dividend of 50 yen per share.

  4. Progress in Implementing the Medium-term Plan

    • FY2025: While financial results varied by business segment, overall performance exceeded the initial plan.

    • FY2026: The Middle East situation has impacted our businesses, but we are responding appropriately, drawing on preparedness and the experience previously gained-from the past supply chain disruptions-to implement countermeasures. By steadily investing in growth, we aim to realize sustainable growth.

    • There is no change to the financial plan for FY2027 at this point; however, a review will be considered at a stage when the current uncertain conditions become more foreseeable, also taking progress under the current medium-term plan into account.

  5. Aiming for Further Growth as We Mark our 120th Anniversary: Adopting New Branding and Fostering a Creative, Rewarding Work Environment



    • We define and announce the azbil Group's Purpose and Vision.



  1. Consolidated Financial Results for FY2025
    1. Consolidated Financial Results for FY2025 Consolidated Financial Results

      In the BA and AA businesses, orders received, sales, and segment profit all increased compared to FY2024 by capturing demand amidst favorable market conditions. In the LA business, however, results decreased due to the impact of the FY2024 transfer of an overseas subsidiary, Azbil Telstar (ATL). Consequently, overall orders received and net sales decreased, while operating income increased compared with FY2024 thanks to measures to strengthen profitability, etc. If the effect of the transfer is excluded, both orders received and net sales effectively increased.

  • Orders received rose for the BA business, but fell significantly for the LA business because of the FY2024 transfer of equity interests in ATL (impact: a reduction of 15.5 billion yen); consequently, overall orders received decreased compared to FY2024.

  • Sales increased for both the BA and AA businesses, but because of the ATL transfer (impact: a reduction of 14.6 billion yen) the LA business saw a significant drop, resulting in an overall decrease compared to FY2024. The plan was achieved.

  • Operating income increased significantly owing to profitability-strengthening measures, including cost pass-through, despite increases in personnel and other expenses. Consequently, operating income was higher than FY2024, and the plan was exceeded.

  • Ordinary income increased significantly compared to FY2024, owing mainly to the growth in operating income. The plan was exceeded thanks to the recording of foreign exchange gains.

  • Net income attributable to owners of parent decreased compared to FY2024, mainly because of the recording of gain on sale of equity interests in ATL (7.6 billion yen) as extraordinary income in FY2024. The plan was far exceeded, mainly due to the recording of gain on sale of investment

(Billions of yen) (Billions of yen)

FY2024

(A)

FY2025

(B)

Difference

(B) - (A)

% Change

Orders received

304.7

302.3

(2.3)

(0.8)

289.1

13.1

4.6

Net sales

300.3

298.9

(1.4)

(0.5)

285.7

13.1

4.6

Japan

237.2

246.5

9.3

3.9

Overseas

63.1

52.4

(10.7)

(17.0)

Gross profit

131.8

139.5

7.7

5.9

Margin

43.9

46.7

2.8pp

SG&A

90.3

92.2

1.8

2.1

86.8

5.3

6.2

Operating income

41.4

47.3

5.8

14.0

41.0

6.2

15.2

Margin

13.8

15.8

2.0pp

14.4

1.5pp

Ordinary income

42.1

48.7

6.5

15.6

Income before income taxes

53.1

50.7

(2.3)

(4.5)

Net income attributable to owners

of parent

40.9

38.5

(2.3)

(5.8)

Margin

13.6

12.9

(0.7)pp

Plan

(Oct. 30, 2025)

(C)

Difference

(B) - (C)

% Change

298.0

0.9

0.3

45.5

1.8

4.0

15.3

0.6pp

45.5

3.2

7.2

33.5

11.2

5.0

1.7pp

15.1

*

*

*

*

*

Reference: The impact of foreign exchange rate fluctuations (compared with the same period of FY2024)

0.3 billion yen for net sales

0.0 billion yen for operating income

The impact of foreign exchange rate fluctuations is derived from the difference in rates, between the previous and current periods, used to convert overseas subsidiaries' P/L into yen from the local currencies.

5 securities. © Azbil Corporation. All rights reserved.

* The figures in the lower rows for orders received, net sales, SG&A, and



operating income exclude Azbil Telstar's results.

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