© Azbil Corporation. All rights reserved.
Presentation Materials
for the First Quarter of Fiscal Year 2022
(Ending March 31, 2023)
(Based on Japanese GAAP)
August 4, 2022
Azbil Corporation
RIC: 6845.T, Sedol: 6985543

2
© Azbil Corporation. All rights reserved.
Announcement Points
1. Consolidated Financial Results for the First Quarter of FY2022
⚫
Orders remained steady. Although orders received in the same period last year benefitted from the renewal of large multi-year service contracts, overall orders received increased by 5%. Order backlog grew by 25%, a significant increase compared with the same period last year.
⚫
The AA business, the core of which is product sales, uses large volumes of parts and is subject to significant fluctuations in demand. It was thus particularly affected by the shortages and price hikes of parts, leading to lower sales and profits. However, there was only limited impact on the BA and LA businesses, which both achieved higher sales and profits compared with the same period last year.
2. Consolidated Financial Plan for FY2022
⚫
The initial financial plan remains unchanged, and we are still aiming to achieve a new record high for profits.
⚫
In response to the shortages and price hikes of parts, we will progressively implement a series of measures
—
ranging from strengthening our capability to secure/procure parts to optimizing selling prices. In this way we will steadily convert the accumulated order backlog into sales and thus secure profits.
3. Returning Profits to Shareholders
⚫
As regards the annual dividend for FY2022, we plan to increase it by 5 yen per share, to 65 yen per share.
⚫
We canceled treasury shares
(1.5 million shares) and are repurchasing the company’s own stock (up to a
maximum of 10.0 billion yen or 4.0 million shares).
4. Initiatives to Enhance Corporate Governance
⚫
Transition to a company with a three-committee board structure (as of June 23).
⚫
Revision of executive remuneration system (including introduction of stock compensation plan), disclosure of the remuneration policy.
ReferenceProgress of repurchase until July 31, 2022: 1,992,800 shares (7.3 billion yen) have already been repurchased.

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© Azbil Corporation. All rights reserved.
Contents
1. Consolidated Financial Results for the First Quarter of FY2022
4
2. Consolidated Financial Plan for FY2022
15
→No revision from the most recent announcement
3. Returning Profits to Shareholders
21
→No revision from the most recent announcement
4. Initiatives to Enhance Corporate Governance
26
Appendix
29
Notes
41

© Azbil Corporation. All rights reserved.
1. Consolidated Financial Results
for the First Quarter of FY2022

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© Azbil Corporation. All rights reserved.
1. Consolidated Financial Results for the First Quarter of FY2022
Consolidated Financial Results
(Billions of yen)
FY2021
FY2022
Q1
Q1
(A)
(B)
(B) - (A)
% Change
Orders received
88.1
92.8
4.7
5.4
Net sales
53.4
56.0
2.5
4.8
Japan
42.7
43.3
0.6
1.4
Overseas
10.7
12.7
1.9
18.1
Gross profit
21.4
20.8
(0.5)
(2.6)
Margin
40.1
37.2
(2.8)pp
SG&A
18.4
18.7
0.2
1.2
Operating income (loss)
2.9
2.1
(0.7)
(26.6)
Margin
5.5
3.9
(1.7)pp
Ordinary income (loss)
3.2
3.3
0.1
3.53.7
2.0
2.0
0.0
2.1
Margin
3.8
3.7
(0.1)pp
Difference
Income (loss) before income taxes
3.1
3.3
0.1
Net income (loss) attributable toowners of parent
⚫
Overall orders received grew compared with the same period last year. This reflects robust demand for the BA business, related to urban redevelopment projects in the Tokyo metropolitan area, and for the AA business, in the semiconductor manufacturing equipment market as well as from overseas business expansion.
⚫
Net sales rose compared with the same period last year. While AA business sales decreased because little progress was made in the recording of sales for some products due to procurement difficulties, sales increased for the BA and LA businesses, which had both received increased orders in FY2021.
⚫
Operating income decreased compared with the same period last year. This was due to the recording of R&D expenses related to measures stipulated by the medium-term plan, as well as increased costs resulting from difficulties in parts procurement and increased expenses. Net income attributable to owners of parent increased compared with the same period last year due to the recording of foreign exchange gains of 0.83 billion yen, despite the lower operating income.
* The order backlog at the end of the first quarter of FY2022 stood at 173.2 billion yen, a record level.
* The impact of foreign exchange rate fluctuations (compared with the same period last year)
+0.68 billion yen for net sales, +0.03 billion yen for operating incomeThe impact of foreign exchange rate fluctuations is calculated using the difference in rates between
the two periods in question to convert overseas subsidiaries’ P/L into yen from the local currency.

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© Azbil Corporation. All rights reserved.
1. Consolidated Financial Results for the First Quarter of FY2022
Segment Information: BA Business
In the domestic market, demand has continued to grow for urban redevelopment projects in the Tokyo metropolitan area and for heating, ventilation, and air conditioning (HVAC) control equipment/systems for factories. With the continuing demand for ventilation improvement, energy savings, and CO
2
reduction, there is growing interest in solutions that meet emerging building
environmental needs in this “new normal” era. In overseas markets, there are signs of recovery from the impact of the postpon
ed
construction projects and construction delays caused by the COVID-19 pandemic.Amidst such a business environment, we have not only engaged in securing orders with a view to enhanced profitability, while paying sufficient attention to the safety of both customers and employees, but we have also striven to ensure enhanced
capabilities and efficiencies of job execution, particularly on customers’ sites for construction and service. Moreover, we h
ave
made progress with the expansion of our products and services to better meet the needs of customers in Japan and abroad, who are interested in harnessing such technologies as IoT.
⚫
As regards orders received, although orders in the same period last year benefitted from the renewal of multi-year service contracts, in this quarter orders increased for new large-scale buildings, thanks to a robust business environment, and also for existing buildings, reflecting increased demand for ventilation improvement, energy savings, and CO
2
reduction solutions.
Accordingly, overall orders received were higher than the same period last year.
⚫
Sales increased from the same period last year. There was sales growth in the fields related to new large-scale buildings and existing buildings, reflecting the fact that there was an order backlog at the end of FY2021.
⚫
Segment profit improved from the same period last year. This was due to increased revenue and improved profitability, despite higher expenses.
(Billions of yen)
FY2021
FY2022
Q1
Q1
(A)
(B)
(B) - (A)
% Change
Orders received
47.7
48.9
1.2
2.5
Sales
21.6
23.5
1.8
8.7
Segment profit (loss)
(0.4)
0.0
0.4
-
Margin
(2.0)
0.2
2.1pp
Difference

7
© Azbil Corporation. All rights reserved.
1. Consolidated Financial Results for the First Quarter of FY2022
Segment Information: AA Business
As regards market trends in Japan and abroad, expanding investment in 5G and digital transformation (DX) has led to sustainedhigh demand in the market for semiconductor manufacturing equipment, and overall capital investment continues to recover, particularly in the manufacturing equipment market.Amidst this business environment, our growth for the overseas business
—
which has been a focus
—
has borne fruit, and we are
continuing with various measures related to enhancing profitability. However, due to parts procurement difficulties, deliverytimes have lengthened and parts prices have increased for certain products .
⚫
Orders received were higher than the same period last year. This increase was mainly due to a recovery in demand in the manufacturing equipment market and business growth overseas.
⚫
Due to the impact of parts procurement difficulties, little progress was made in the recording of sales for some products, and thus sales decreased compared with the same period last year.
⚫
Segment profit was lower than the same period last year. This was due to a decrease in revenue and increase in parts prices.
(Billions of yen)
FY2021
FY2022
Q1
Q1
(A)
(B)
(B) - (A)
% Change
Orders received
27.0
31.2
4.1
15.5
Sales
21.8
21.1
(0.7)
(3.4)
Segment profit (loss)
3.3
2.0
(1.3)
(39.5)
Margin
15.3
9.6
(5.7)pp
Difference

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© Azbil Corporation. All rights reserved.
1. Consolidated Financial Results for the First Quarter of FY2022
Segment Information: LA Business
The Lifeline field (gas/water meters, etc.) depends on cyclical demand for meter replacement as required by law and thus demand can be expected to remain stable. However, changes in some markets have been observed, such as that for LP gas meters, for which cyclical demand is currently at a low ebb. 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 ineach business field.
⚫
Orders received were lower than the same period last year, mainly as a result of a concentration of orders recorded in the same period last year in the LSE field, driven by growing demand for equipment in the pharmaceutical market.
⚫
Sales increased from the same period last year, thanks to growth in the LSE field due to the increase in orders received in FY2021.
⚫
Segment profit was on a par with the same period last year. Although revenue increased, it was impacted by increased expenses, soaring prices for raw materials, and higher energy and transportation costs.
(Billions of yen)
FY2021
FY2022
Q1
Q1
(A)
(B)
(B) - (A)
% Change
Orders received
13.6
13.1
(0.4)
(3.0)
Sales
10.2
11.7
1.4
14.3
Segment profit (loss)
0.0
0.0
0.0
40.0
Margin
0.6
0.7
0.1pp
Difference

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© Azbil Corporation. All rights reserved.
FY2019
FY2020
FY2021
FY2022
FY2021
FY2022
Q1
Q1
Q1
Q1
Q1
Q2
Q3
Q4
Q1
　　
■
B A
47.5
45.9
47.7
48.9
　　
■
B A
47.7
30.7
26.3
27.6
48.9
　　
■
A A
22.5
22.5
27.0
31.2
　　
■
A A
27.0
26.1
28.1
28.1
31.2
　　
■
L A
11.5
10.3
13.6
13.1
　　
■
L A
13.6
12.5
11.1
9.5
13.1
Consolidated
81.4
78.5
88.1
92.8
Consolidated
88.1
68.8
65.1
64.8
92.8
0.0
25.0
50.0
75.0
100.0
0.0
25.0
50.0
75.0
100.0
1. Consolidated Financial Results for the First Quarter of FY2022
Reference: Orders Received by Segment
◼
Comparison to past results (Q1)
(Billions of yen)
(Billions of yen)
◼
Quarterly (3 months)
FY2022
FY2021

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© Azbil Corporation. All rights reserved.
FY2019
FY2020
FY2021
FY2022
FY2021
FY2022
Q1
Q1
Q1
Q1
Q1
Q2
Q3
Q4
Q1
　　
■
B A
89.4
87.2
88.0
101.1
　　
■
B A
88.0
91.8
87.7
75.1
101.1
　　
■
A A
29.5
29.7
32.6
53.4
　　
■
A A
32.6
34.5
39.4
42.3
53.4
　　
■
L A
14.1
13.5
17.8
19.4
　　
■
L A
17.8
19.1
19.7
17.2
19.4
Consolidated
132.9
130.2
138.3
173.2
Consolidated
138.3
145.2
146.5
134.2
173.2
0.0
50.0
100.0
150.0
200.0
0.0
50.0
100.0
150.0
200.0
1. Consolidated Financial Results for the First Quarter of FY2022
Reference: Order Backlog by Segment
◼
Comparison to past results (Q1)
(Billions of yen)
(Billions of yen)
◼
Quarterly (3 months)
FY2022
FY2021