© Azbil Corporation. All rights reserved.
Presentation Materials
for the Third Quarter of Fiscal Year 2022
(Ending March 31, 2023)
(Based on Japanese GAAP)
February 7, 2023
Azbil Corporation
RIC: 6845.T, Sedol: 6985543

2
© Azbil Corporation. All rights reserved.
1. Consolidated Financial Results for the Cumulative Third Quarter of FY2022

Overall orders received were up by 9.8 billion yen (+4.4%) compared with the same period last year, maintaining a
high level, although there were differences between markets.
Order backlog grew by 33.9 billion yen (+23.1%)
, a
significant increase compared with the same period last year.

Net sales increased by 11.7 billion yen (+6.6%) compared with the same period last year
, reflecting robust growth
in orders received and order backlog. Also, owing to increased revenue and initiatives to improve profitability,
operating income recovered to the level achieved in the same period last year
, despite the continuing impact of
price hikes of parts.

Thanks to enhancements made to our procurement capabilities and production capacity in response to parts
shortages, sales improved,
particularly in the AA business. Sales for the AA business in the third quarter
(October–December) regained record levels and segment profit margin was 15.2%.
2. Consolidated Financial Plan for FY2022

Although a deterioration in conditions was observed in some markets,
in view of the high order backlog and
strengthened production capacity
, our revised plan, announced on November 8, remains unchanged.
We continue
to aim at achieving record 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, in
accordance with the initial announcement of May 13
.
Highlights

3
© Azbil Corporation. All rights reserved.
Contents
1. Consolidated Financial Results
for the Cumulative Third Quarter of FY2022
4
2. Consolidated Financial Plan for FY2022
15
→No revision from the most recent announcement on November 8, 2022
3. Returning Profits to Shareholders
19
→No revision from the initial announcement on May 13, 2022
Appendix
23
Notes
39

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

5
© Azbil Corporation. All rights reserved.
1. Consolidated Financial Results for the Cumulative Third Quarter of FY2022
Consolidated Financial Results

Orders received increased in Japan and overseas for the
BA business, driven by urban redevelopment projects in
the Tokyo metropolitan area, and growth was achieved in
the AA business, reflecting robust demand in the
manufacturing sector as a whole. The LA business also
increased. As a result, overall orders received were higher
than the same period last year.

Sales growth was achieved in all three businesses—the
BA and LA businesses, which had both received
increased orders in the previous fiscal year, and the AA
business, which saw a recovery in sales thanks to
successful handling of parts procurement difficulties and
strengthening of production capacity. Thus, overall net
sales increased from the same period last year.

Despite the recording of R&D expenses related to
measures stipulated by the medium-term plan, as well as
higher costs resulting from the shortages and price hikes
of parts and increased expenses, thanks to increased
revenue and an improvement in profitability, operating
income was on a par with the same period last year. As for
net income attributable to owners of parent, despite
recording of foreign exchange gains and gain on sale of
investment securities, this was down compared with the
same period last year due to the recording of
extraordinary losses
*
and increased income taxes.
* In the LA business, provision for product warranties (2.42 billion yen)—to meet anticipated
expenses resulting from defects in some LP gas meters—was recorded as an extraordinary
loss. Following discussions with each customer regarding how to settle the problem, an
additional sum—based on a reasonable, conservative estimate—was recorded during the
third quarter in order to cover the total cost of resolving this issue.
•
The order backlog at the end of the third quarter of FY2022 stood at 180.5 billion yen.
•
The impact of foreign exchange rate fluctuations (compared with the same period last year)
+4.14 billion yen for net sales, +0.44 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 currency.
(Billions of yen)

FY2021
FY2022
Q1-3
Q1-3
(A)
(B)
(B) - (A)
% Change
Orders received
222.1
231.9
9.8
4.4
Net sales
179.3
191.0
11.7
6.6
Japan
142.3
147.2
4.9
3.4
Overseas
36.9
43.8
6.8
18.5
Gross profit
72.9
74.8
1.8
2.5
Margin
40.7
39.2
(1.5)pp
SG&A
56.9
58.8
1.9
3.4
Operating income (loss)
16.0
15.9
(0.0)
(0.5)
Margin
8.9
8.3
(0.6)pp
Ordinary income (loss)
16.9
16.7
(0.1)
(1.1)
(4.2)
11.9
10.5
(1.4)
(12.0)
Margin
6.7
5.5
(1.2)pp
Difference
Income (loss) before income taxes
17.1
16.4
(0.7)
Net income (loss) attributable to
owners of parent

6
© Azbil Corporation. All rights reserved.
1. Consolidated Financial Results for the Cumulative Third 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 energy
savings and CO
2
reduction, there is growing interest in new solutions that create building environments offering post-pandemic
safety and suited to new work styles. In overseas markets, we have observed a steady recovery from the impact of the postponed
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 have
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 and cloud computing.

As regards orders received, although orders in the same period last year benefitted from the renewal of large-scale multi-year service
contracts, orders this year increased in the field related to new large-scale buildings and our overseas business, thanks to a robust
business environment, and also in the field related to 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, reflecting a
buildup of order backlog at the end of FY2021. There was also growth in overseas business.

Segment profit increased from the same period last year. This was due to increased revenue and the success of measures for improving
profitability, despite higher R&D and other expenses.
(Billions of yen)
FY2021
FY2022
Q1-3
Q1-3
(A)
(B)
(B) - (A)
% Change
Orders received
104.8
108.2
3.3
3.2
Sales
79.1
83.3
4.1
5.3
Segment profit (loss)
5.4
5.9
0.5
10.5
Margin
6.8
7.2
0.3pp
Difference

7
© Azbil Corporation. All rights reserved.
1. Consolidated Financial Results for the Cumulative Third Quarter of FY2022
Segment Information: AA Business
Regarding market trends in Japan and abroad surrounding the AA business, capital investment has continued at a high level in
the manufacturing sector as a whole, although there has been some recent evidence of deteriorating conditions in the
semiconductor market, including a decrease in advance orders. Progress has also been made with measures to expand
overseas business that we have been focusing on, and orders have continued to increase.Although parts procurement difficulties have still continued since the previous fiscal year, a slow amelioration has been evident
from the second quarter (July–September 2022), and a steady recovery in production has been achieved thanks to such
countermeasures as product design changes. Consequently, the third quarter (October–December 2022) saw a significant
improvement over the same period last year, with a segment profit margin of 15.2%.

Overall orders received increased from the same period last year. This was mainly due to a recovery in capital investments in the
manufacturing sector as a whole and business growth overseas.

Sales were higher than the same period last year due to the gradual recovery from the second quarter (July–September 2022) thanks to
measures implemented in production and procurement, though there was some impact from parts procurement difficulties.

Segment profit was on a par with the same period last year while price hikes of parts have had an impact throughout the consolidated
cumulative third quarter. This was due to initiatives undertaken to enhance profitability, and also the increased revenue that resulted from
the recovery in production from the second quarter (July–September 2022).
(Billions of yen)
FY2021
FY2022
Q1-3
Q1-3
(A)
(B)
(B) - (A)
% Change
Orders received
81.3
87.0
5.6
7.0
Sales
69.2
73.9
4.7
6.8
Segment profit (loss)
9.9
9.6
(0.3)
(3.3)
Margin
14.4
13.1
(1.4)pp
Difference

8
© Azbil Corporation. All rights reserved.
1. Consolidated Financial Results for the Cumulative Third Quarter of FY2022
Segment Information: LA Business
The Lifeline field, which includes gas (city gas, LP gas) and water meters, depends on cyclical demand for meter replacement as
required by law. Though demand can be expected to remain basically stable, the cyclical demand for LP gas meters is currently
at a low ebb. In the Life Science Engineering (LSE: for pharmaceuticals/laboratories) field, investment in equipment for
pharmaceutical plants continues to grow. While there are concerns about increasing expenses driven by the rapid inflation in Europe, we will engage in appropriate cost
management and optimization of selling prices. Note that approximately 2.4 billion yen was recorded in the nine months ended
December 2022 as an extraordinary loss to meet anticipated expenses resulting from defects in some LP gas meters. We will
continue with efforts to achieve stable revenue through cost management at a fundamental level and quality control in the LA
business.

Orders received increased from the same period last year, mainly due to an increase in the Lifeline field (city gas meters, water meters).

As regards sales, thanks to growth in the LSE field, reflecting the increase in orders received in the previous fiscal year, and also due to
an increase in the Lifeline field, overall sales were higher than the same period last year.

Despite increased revenue, segment profit was lower than the same period last year. This was due to increased expenses, including
personnel expenses, mainly caused by inflation in Europe, as well as price hikes for materials, and higher energy and transportation costs.
(Billions of yen)
FY2021
FY2022
Q1-3
Q1-3
(A)
(B)
(B) - (A)
% Change
Orders received
37.2
38.1
0.8
2.3
Sales
32.1
35.3
3.1
9.8
Segment profit (loss)
0.6
0.2
(0.3)
(56.8)
Margin
2.0
0.8
(1.2)pp
Difference

9
© Azbil Corporation. All rights reserved.
FY2019 FY2020 FY2021
FY2022
FY2021
FY2022
Q1-3
Q1-3
Q1-3
Q1-3
Q1
Q2
Q3
Q4
Q1
Q2
Q3
　　
■
B A
98.5
94.2
104.8
108.2
　　
■
B A
47.7
30.7
26.3
27.6
48.9
31.2
28.0
　　
■
A A
69.7
62.9
81.3
87.0
　　
■
A A
27.0
26.1
28.1
28.1
31.2
27.3
28.4
　　
■
L A
33.7
31.1
37.2
38.1
　　
■
L A
13.6
12.5
11.1
9.5
13.1
13.9
11.0
Consolidated
200.8
187.2
222.1
231.9
Consolidated
88.1
68.8
65.1
64.8
92.8
72.0
67.0
0.0
50.0
100.0
150.0
200.0
250.0
0.0
25.0
50.0
75.0
100.0
1. Consolidated Financial Results for the Cumulative Third Quarter of FY2022
Reference: Orders Received by Segment

Comparison to past results (Q1-3)
(Billions of yen)
(Billions of yen)

Quarterly (3 months)
FY2021
FY2022

10
© Azbil Corporation. All rights reserved.
FY2019 FY2020 FY2021
FY2022
FY2021
FY2022
Q3
Q3
Q3
Q3
Q1
Q2
Q3
Q4
Q1
Q2
Q3
　　
■
B A
78.5
78.6
87.7
101.6
　　
■
B A
88.0
91.8
87.7
75.1
101.1
104.6
101.6
　　
■
A A
30.6
26.1
39.4
58.0
　　
■
A A
32.6
34.5
39.4
42.3
53.4
56.9
58.0
　　
■
L A
13.7
12.6
19.7
21.3
　　
■
L A
17.8
19.1
19.7
17.2
19.4
22.0
21.3
Consolidated
122.7
117.2
146.5
180.5
Consolidated
138.3
145.2
146.5
134.2
173.2
182.9
180.5
0.0
50.0
100.0
150.0
200.0
250.0
0.0
50.0
100.0
150.0
200.0
250.0
1. Consolidated Financial Results for the Cumulative Third Quarter of FY2022
Reference: Order Backlog by Segment

Comparison to past results
(Billions of yen)
(Billions of yen)

Quarterly (3 months)
FY2021
FY2022