© Azbil Corporation. All rights reserved.
Presentation Materials
for the Third Quarter of Fiscal Year 2021 (Ending March 31, 2022)
(Based on Japanese GAAP)
February 3, 2022
Azbil Corporation
RIC: 6845.T, Sedol: 6985543

© Azbil Corporation. All rights reserved.
We would like to express our deepest condolences to those who have lost loved
ones as a result of the novel coronavirus disease (COVID-19). We would also
like to extend our sympathies to all those who have suffered from this disease
and to those who have been experiencing hardships due to the pandemic.
We would also like to express our sincere gratitude to all members of the
medical profession and others working on the frontlines in the struggle to control
this pandemic.
It is our earnest hope that the pandemic subsides as soon as possible. To that
end, through our business activities we are committed to initiatives aimed at
preventing the spread of COVID-19.
2

© Azbil Corporation. All rights reserved.
Contents
1.
Financial Results for the Third Quarter of FY2021
4
2.
Financial Plan for FY2021
14
→No revision from the most recent announcement
3.
Returning Profits to Shareholders
19
→No revision from the most recent announcement
4.
Progress in Implementing the Medium-term Plan
23
Appendix
31
Notes
39
3

© Azbil Corporation. All rights reserved.
1. Financial Results for the Third Quarter of FY2021
4

© Azbil Corporation. All rights reserved.
1. Financial Results for the Third Quarter of FY2021
Consolidated Financial Results
5

While there were some impacts from the COVID-19 pandemic and from parts shortages, orders received, net sales and profits rose
compared with the same period last year.

Overall orders received grew, reversing the decline in the same
period last year caused by the spread of COVID-19. This growth
was mainly due to an increase in the AA business following a
recovery in market conditions, as well as increased orders received
in the BA business reflecting demand for the refurbishment of
existing buildings and service, and also increased orders received in
the LA business driven by demand for pharmaceutical equipment.

Net sales rose compared with the same period last year. This was
mainly due to sales growth achieved by the AA business, reflecting
a recovery in demand in the manufacturing equipment market.

Operating income increased compared with the same period last
year. There were higher expenses incurred by the increased burden
related to staff working amidst the COVID-19 pandemic, and also an
increase in R&D expenses resulting from measures included in the
medium-term plan. Nevertheless, in addition to the growth in
revenue, measures to strengthen business profitability continued to
have a positive effect.

As a result of higher operating income and recording foreign
exchange gains, net income attributable to owners of parent
increased compared with the same period last year; this was
despite the recording of gain on sales of stocks and non-current
assets following the integration of domestic production bases in the
same period last year.
(Billions of yen)

FY2020
FY2021
Q1-3
Q1-3
(A)
(B)
(B) - (A)
% Change
Orders received
187.2
222.1
34.8
18.6
Net sales
174.2
179.3
5.0
2.9
Japan
141.9
142.3
0.4
0.3
Overseas
32.2
36.9
4.6
14.5
Gross profit
69.0
72.9
3.9
5.7
Margin
39.6
40.7
1.1pp
SG&A
53.8
56.9
3.1
5.8
Operating income (loss)
15.1
16.0
0.8
5.6
Margin
8.7
8.9
0.2pp
Ordinary income (loss)
15.2
16.9
1.6
10.9
2.3
11.6
11.9
0.2
2.4
Margin
6.7
6.7
(0.0)pp
Net income (loss) attributable to
owners of parent
Difference
Income (loss) before income taxes
16.7
17.1
0.3

© Azbil Corporation. All rights reserved.
1. Financial Results for the Third Quarter of FY2021
Segment Information: BA Business
6
In the domestic market, demand has continued to grow for urban redevelopment projects and for heating, ventilation, and air
conditioning (HVAC) control equipment / systems for factories, and there is growing interest in solutions related to ventilation
improvement, energy savings, and CO
2
reduction. Furthermore, the impact of the COVID-19 pandemic continues to be limited. In
overseas markets, however, due to the prolonged impact of the pandemic, sluggish demand and construction delays have continued
in some regions.
Amid such a business environment, we have engaged in securing orders with a view to enhanced profitability, and, while paying
sufficient attention to the safety of both customers and employees, we have also striven to ensure enhanced capabilities and
efficiencies of job execution, particularly on construction sites. Product and service solutions have been enhanced.

As regards orders received, there was a decline in the field related to new large-
scale buildings, reflecting the fact that in the same period last year orders had been
received for several large-scale projects. While the service field was impacted by
the new accounting standard for revenue recognition*, in addition to the renewal of
multi-year service contracts, demand remained robust for the refurbishment of
existing buildings and service to provide solutions for ventilation improvement,
energy savings, and CO
2
reduction. Accordingly, overall orders received were higher
than the same period last year.

Sales were on a par with the same period last year. While there was sales growth in
the fields related to new large-scale buildings and existing buildings, there were
decreases in the security field—reflecting the fact that there had been several
projects in the same period last year—and in the service field, due to the new
accounting standard for revenue recognition.

Segment profit was lower than the same period last year in spite of improved
profitability. This was due to higher expenses—for R&D, as stipulated in the
medium-term plan, and for personnel required for intensified order-taking activities—
as well as the increased expenses, recorded in H1 of the current fiscal year, of
adapting working conditions to deal with the COVID-19 pandemic.
*
Effect of the new accounting standard for revenue recognition on the service field:
The main impact of the new accounting standard for revenue recognition has been on the service field, reducing the figure for orders
received by approximately 3.2 billion yen, and the negative impact on sales was about 0.8 billion yen, while segment profit was unaffected.
(Billions of yen)
FY2020
FY2021
Q1-3
Q1-3
(A)
(B)
(B) - (A)
% Change
Orders received
94.2
104.8
10.6
11.3
Sales
78.6
79.1
0.5
0.7
Segment profit (loss)
6.2
5.4
(0.8)
(13.2)
Margin
7.9
6.8
(1.1)pp
Difference

© Azbil Corporation. All rights reserved.
1. Financial Results for the Third Quarter of FY2021
Segment Information: AA Business
7
As regards market trends in Japan and abroad, expanding investment in 5G has led to sustained high demand in the market for
semiconductor manufacturing equipment. It is still unclear when the COVID-19 pandemic will abate; however, overall capital
investment is seen to be recovering, particularly in the manufacturing equipment market.
Amidst this business environment, growth has been achieved in the overseas business—which has been a focus—and the profit
structure has been successfully strengthened by continued implementation of various measures. However, due to parts shortages,
certain products have been affected and, as a result, delivery times have lengthened.

Orders received were higher than the same period last year. Although this partly
reflects the impact of advance orders triggered by parts shortages, this increase
was mainly due to continued demand in the manufacturing equipment market—
against the backdrop of a global expansion in semiconductor-related investment—
as well as business growth overseas. The order backlog also increased.

Despite the impact of longer product delivery times resulting from parts shortages,
there was sales growth, mainly in the manufacturing equipment market and
overseas business. Sales thus increased compared with the same period last year.

As regards segment profit, although there was an increase in expenses associated
with intensified sales activities and higher R&D expenses, as stipulated in the
medium-term plan, segment profit was higher than the same period last year owing
to revenue growth and the success of measures to strengthen profitability that had
already proved effective. Segment profit margin continued to improve.
(Billions of yen)
FY2020
FY2021
Q1-3
Q1-3
(A)
(B)
(B) - (A)
% Change
Orders received
62.9
81.3
18.3
29.2
Sales
64.5
69.2
4.6
7.2
Segment profit (loss)
7.9
9.9
2.0
25.8
Margin
12.3
14.4
2.1pp
Difference

© Azbil Corporation. All rights reserved.
1. Financial Results for the Third Quarter of FY2021
Segment Information: LA Business
8
The Lifeline field (gas/water meters, etc.) depends on cyclical demand for meter replacement as required by law and thus demands
can be expected to remain stable. However, some changes have been observed, such as LP gas meters being in a period of low
demand. Also, in the Life Science Engineering (LSE: for pharmaceuticals/laboratories) field investment in equipment for
pharmaceutical plants has continued to grow.
Going forward, we will continue our initiatives to reform the business structure so as to stabilize and enhance profitability in each
business field.

Overall orders received were higher than the same period last year, mainly as a
result of an increase in the LSE field driven by growing demand for equipment in the
pharmaceutical market.

Overall sales were on a par with the same period last year. A decrease was seen in
the Lifeline field due to the COVID-19 pandemic and parts shortages, and the
pandemic also dampened sales growth in the LSE field. Nevertheless, sales growth
was achieved owing to the increase in orders received in the previous fiscal year.

Segment profit decreased compared with the same period last year because of the
fall in profits associated with the decrease in sales in the Lifeline field and increased
expenses along business growth in the LSE field.
(Billions of yen)
FY2020
FY2021
Q1-3
Q1-3
(A)
(B)
(B) - (A)
% Change
Orders received
31.1
37.2
6.1
19.8
Sales
32.0
32.1
0.1
0.4
Segment profit (loss)
0.9
0.6
(0.3)
(36.8)
Margin
3.1
2.0
(1.2)pp
Difference

© Azbil Corporation. All rights reserved.
FY2018
FY2019
FY2020
FY2021
FY2020
FY2021
Q1-3
Q1-3
Q1-3
Q1-3
Q1
Q2
Q3
Q4
Q1
Q2
Q3
　　■
B A
101.0
98.5
94.2
104.8
　　
■
B A
45.9
27.2
21.0
24.2
47.7
30.7
26.3
　　■
A A
74.7
69.7
62.9
81.3
　　
■
A A
22.5
20.0
20.3
24.5
27.0
26.1
28.1
　　■
L A
29.4
33.7
31.1
37.2
　　
■
L A
10.3
10.7
10.0
12.2
13.6
12.5
11.1
Consolidated
204.1
200.8
187.2
222.1
Consolidated
78.5
57.6
51.0
60.6
88.1
68.8
65.1
0.0
50.0
100.0
150.0
200.0
250.0
0.0
25.0
50.0
75.0
100.0
1. Financial Results for the Third Quarter of FY2021
Reference: Orders Received by Segment
9
■
Comparison to past results (Q1-3)
■
Quarterly (3 months)
(Billions of yen)
(Billions of yen)
FY2021
FY2020

© Azbil Corporation. All rights reserved.
1. Financial Results for the Third Quarter of FY2021
Reference: Sales by Segment
10
FY2018
FY2019
FY2020
FY2021
FY2020
FY2021
Q1-3
Q1-3
Q1-3
Q1-3
Q1
Q2
Q3
Q4
Q1
Q2
Q3
　　■
B A
79.8
83.9
78.6
79.1
　　
■
B A
21.7
26.8
30.0
38.8
21.6
27.0
30.4
　　■
A A
73.0
67.8
64.5
69.2
　　
■
A A
20.4
21.3
22.8
23.1
21.8
23.8
23.4
　　■
L A
33.6
32.2
32.0
32.1
　　
■
L A
10.0
11.6
10.3
10.9
10.2
11.4
10.4
Consolidated
185.3
183.0
174.2
179.3
Consolidated
51.9
59.4
62.8
72.5
53.4
61.8
63.9
0.0
50.0
100.0
150.0
200.0
250.0
0.0
25.0
50.0
75.0
100.0
■
Comparison to past results (Q1-3)
■
Quarterly (3 months)
(Billions of yen)
(Billions of yen)
FY2021
FY2020