© Azbil Corporation. All rights reserved.
Presentation Materials
for the Fiscal Year Ended March 31, 2023
(Based on Japanese GAAP)
May 12, 2023
Azbil Corporation
RIC: 6845.T, Sedol: 6985543

2
© Azbil Corporation. All rights reserved.
Highlights
1. Consolidated Financial Results for FY2022
We achieved record financial results for the second consecutive fiscal year, with increased revenue and profits.

We recorded the highest figures ever for orders received and order backlog (156 billion yen, up 16.2% compared with FY2021).

Faced with parts shortages and procurement difficulties, we secured sales through initiatives to strengthen procurement and
production capabilities.

Despite price hikes of parts and other factors, thanks to higher revenue and enhanced profitability, operating income topped 30 billion
yen, a record high.
2. Consolidated Financial Plan for FY2023
We plan to increase both net sales and operating income for the third consecutive fiscal year.

Drawing on the improvements we made to procurement and production processes during FY2022, we aim to continue increasing
revenue by steadily converting the large order backlog into sales.

We aim to set a new record for operating income by implementing measures to enhance profitability, such as increasing margins at the
point of order receipt and effecting cost pass-through.

We will continue and expand investment for growth—in R&D, equipment and facilities, DX, and human capital.
3. Returning Profits to Shareholders

The year-end dividend for FY2022 is to be increased from the previously announced figure by 1 yen, making an annual dividend of 66
yen per share. It is planned to increase the dividend next year, making FY2023 annual dividend 73 yen per share; this would represent
the ninth consecutive year of dividend increases. Based on the continuation of stable dividend payments, we aim to further improve
the dividend on equity (DOE) ratio (4.4% for FY2022).

We will repurchase the Company’s own stock (up to a maximum of 10 billion yen or 4 million shares) and cancel all of the treasury
shares thus acquired.
4. Progress in Implementing the Medium-term Plan

We are accelerating transformation for growth. To strengthen product competitiveness, we are actively investing in R&D, equipment
and facilities, and human capital.

3
© Azbil Corporation. All rights reserved.
Contents
1. Consolidated Financial Results for FY2022
4
2. Consolidated Financial Plan for FY2023
13
3. Returning Profits to Shareholders
18
4. Progress in Implementing the Medium-term Plan
23
Appendix
38
Notes
55

© Azbil Corporation. All rights reserved.
4
1. Consolidated Financial Results for FY2022

5
© Azbil Corporation. All rights reserved.
1. Consolidated Financial Results for FY2022
Consolidated Financial Results
• In the LA business, provision for product warranties
(2.49 billion yen)—to meet anticipated expenses
resulting from defects in some of the LP gas meters—
was recorded as an extraordinary loss.

Orders received increased for the second consecutive fiscal year. The order backlog also reached a record
high, standing at 156 billion yen.

Both net sales and profits exceeded the plan (announced on November 8, 2022), representing a new record
for business results.

To cope with parts shortages and procurement difficulties, procurement and production capabilities were
strengthened.
• The impact of foreign exchange rate fluctuations (compared with the previous fiscal year)
+6.41 billion yen for net sales, +0.80 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)
(Billions of yen)
FY2021
FY2022
Revised plan
(Nov. 8, 2022)
(A)
(B)
(B) - (A)
% Change
(C)
(B) - (C)
% Change
Orders received
286.9
296.9
9.9
3.5
Net sales
256.5
278.4
21.8
8.5
277.5
0.9
0.3
Japan
204.3
215.7
11.4
5.6
Overseas
52.1
62.6
10.4
20.0
Gross profit
105.7
111.9
6.2
5.9
Margin
41.2
40.2
(1.0)pp
SG&A
77.4
80.6
3.2
4.1
Operating income (loss)
28.2
31.2
3.0
10.7
29.8
1.4
4.9
Margin
11.0
11.2
0.2pp
10.7
0.5pp
Ordinary income (loss)
29.5
32.1
2.6
8.9
31.0
1.1
3.7
30.0
32.1
2.0
6.9
20.7
22.6
1.8
8.8
21.8
0.8
3.7
Margin
8.1
8.1
0.0pp
7.9
0.3pp
Difference
Difference
Income (loss) before income taxes
Net income (loss) attributable to
owners of parent

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© Azbil Corporation. All rights reserved.
1. Consolidated Financial Results for FY2022
Financial Results by Segment

Orders received in all three businesses—the BA, AA, and LA—increased from FY2021.

Sales growth was also achieved compared with FY2021 in all three businesses, and the AA and LA
businesses exceeded the plan.

While being affected by price hikes of parts, the BA and AA businesses still increased their profits thanks
to initiatives to strengthen profitability and increases in revenue. Despite achieving higher revenue, the LA
business saw a decrease in profit, mainly due to the impact of inflation.
（Billions of yen）
（Billions of yen）
FY2021
FY2022
Revised plan
(Nov. 8, 2022)
(A)
(B)
(B) - (A)
% Change
(C)
(B) - (C)
% Change
■
B A
Orders received
132.5
135.3
2.8
2.1
Sales
119.7
128.5
8.7
7.3
129.0
(0.4)
(0.3)
Segment profit (loss)
13.8
16.0
2.2
16.0
14.7
1.3
9.3
Margin
11.6
12.5
0.9pp
11.4
1.1pp
■
A A
Orders received
109.5
113.9
4.4
4.0
Sales
94.2
103.9
9.7
10.3
102.0
1.9
1.9
Segment profit (loss)
13.2
14.5
1.3
10.1
14.3
0.2
2.0
Margin
14.0
14.0
(0.0)pp
14.0
0.0pp
■
L A
Orders received
46.8
49.6
2.8
6.0
Sales
44.2
47.9
3.6
8.3
46.5
1.4
3.0
Segment profit (loss)
1.1
0.5
(0.5)
(48.9)
0.8
(0.2)
(26.4)
Margin
2.6
1.2
(1.4)pp
1.7
(0.5)pp
Difference
Difference

7
© Azbil Corporation. All rights reserved.
Our View of the Business Environment— In the domestic market, demand has continued at a high level for urban redevelopment projects in the Tokyo metropolitan
area and for heating, ventilation, and air conditioning (HVAC) control equipment/systems for factories. Demand for the
refurbishment of existing buildings, including energy savings and CO
2
reduction, has remained steady.
— There is a growing interest in new solutions that create building environments offering post-pandemic safety and suited to
new work styles.
— In overseas markets, we have steadily recovered from the impact of the postponed construction projects and construction
delays caused by the COVID-19 pandemic.

Thanks to a robust business environment, orders received increased. Sales also increased in the new building,
existing building, service, and overseas markets. Although sales results fell just short of the plan, they were up
from FY2021. Especially during the second half, results were achieved due to robust sales progress.

Segment profit greatly increased from FY2021. This was due to higher revenue and the success of measures for
improving profitability. The latter measures contributed to the achievement of the plan.
1. Consolidated Financial Results for FY2022
Segment Information: BA Business
(Billions of yen)
(Billions of yen)
FY2021
FY2022
Revised plan
(Nov. 8, 2022)
(A)
(B)
(B) - (A)
% Change
(C)
(B) - (C) % Change
Orders received
132.5
135.3
2.8
2.1
Sales
119.7
128.5
8.7
7.3
129.0
(0.4)
(0.3)
Segment profit (loss)
13.8
16.0
2.2
16.0
14.7
1.3
9.3
Margin
11.6
12.5
0.9pp
11.4
1.1pp
Difference
Difference

8
© Azbil Corporation. All rights reserved.
(Billions of yen)
(Billions of yen)
FY2021
FY2022
Revised plan
(Nov. 8, 2022)
(A)
(B)
(B) - (A)
% Change
(C)
(B) - (C)
% Change
Orders received
109.5
113.9
4.4
4.0
Sales
94.2
103.9
9.7
10.3
102.0
1.9
1.9
Segment profit (loss)
13.2
14.5
1.3
10.1
14.3
0.2
2.0
Margin
14.0
14.0
(0.0)pp
14.0
0.0pp
Difference
Difference
Our View of the Business Environment— Capital investment has continued at a high level in the manufacturing industry as a whole, thanks to the gradual recovery
from the COVID-19 pandemic.
— From the third quarter, there was some recoil owing to the number of advance orders that had been received up to the
second quarter, and conditions in the semiconductor manufacturing equipment market deteriorated.
— Regarding parts procurement difficulties, a slow recovery has been evident from the second quarter, though the impact of
price hikes has continued.

Overall orders received increased from FY2021. This was mainly due to a recovery in capital investments in the
manufacturing sector as a whole and business growth overseas.

Though there was some impact from parts procurement difficulties, thanks to measures taken in production and
procurement, throughout FY2022 sales exceeded the plan, and they were significantly up from FY2021.

Although parts price hikes had an impact throughout FY2022, segment profit was higher than FY2021, and
exceeded the plan. This was due to initiatives undertaken to enhance profitability, and increased revenue.
1. Consolidated Financial Results for FY2022
Segment Information: AA Business

9
© Azbil Corporation. All rights reserved.
Our View of the Business Environment— The Lifeline field, which includes gas (city gas, LP gas) and water meters, depends on demand for meter replacement
as required by law. Though demand can be expected to remain basically stable, the market for LP gas meters itself is
dependent on cyclical demand which is currently at a low ebb.
— In the Life Science Engineering (LSE: for pharmaceuticals/laboratories) field, investment demand continues for
pharmaceutical plant facilities. Inflation is pushing up costs, particularly in the European region, and restructuring of the
industry is underway in response to intensifying competition and higher costs.

Orders received increased from FY2021, 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 FY2021—and an
increase in the Lifeline field—which exceeded the plan—overall sales were higher than FY2021.

Segment profit was significantly lower than FY2021 and fell short of the plan. 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.
1. Consolidated Financial Results for FY2022
Segment Information: LA Business
(Billions of yen)
(Billions of yen)
FY2021
FY2022
Revised plan
(Nov. 8, 2022)
(A)
(B)
(B) - (A)
% Change
(C)
(B) - (C)
% Change
Orders received
46.8
49.6
2.8
6.0
Sales
44.2
47.9
3.6
8.3
46.5
1.4
3.0
Segment profit (loss)
1.1
0.5
(0.5)
(48.9)
0.8
(0.2)
(26.4)
Margin
2.6
1.2
(1.4)pp
1.7 (0.5)pp
Difference
Difference

10
© Azbil Corporation. All rights reserved.
（Billions of yen）
FY2019
FY2020
FY2021
FY2022
18.7
18.8
19.4
25.0
9.8
11.0
14.2
15.1
3.7
3.7
4.9
6.6
9.1
9.0
10.3
11.3
2.6
2.2
3.1
4.2
44.1
44.8
52.1
62.6
Reference information
USD/JPY
109.03
106.77
109.90
131.64
EUR/JPY
122.03
121.88
129.91
138.15
CNY/JPY
15.77
15.48
17.04
19.50
■
North America
22.5
Average
exchange
rate
■
Europe

■

Others
Consolidated
　　　
Overseas sales /
　　　
Net sales ratio (%)
17.0
18.2
20.3
　
■
Asia (ex-China)
　
■
China
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
FY2019
FY2020
FY2021
FY2022
(%)
(Billions of yen)

Sales increased in all areas, up 20% from FY2021. The overseas sales now accounts for 22.5% of
net sales.

The BA and AA businesses achieved a significant growth in Asia. From the fourth quarter a
recovery was observed in China. LA business sales grew in Europe, reflecting an increase in orders
received during FY2021.
1. Consolidated Financial Results for FY2022
Overseas Sales by Region
* Overseas sales figures include only the sales of overseas subsidiaries and direct exports;
indirect exports are excluded.
* The accounting year for most overseas subsidiaries ends on December 31.