© Azbil Corporation. All rights reserved.
Presentation Materials
for the Fiscal Year Ended March 31, 2024
(Based on Japanese GAAP)
May 13, 2024
Azbil Corporation
RIC: 6845.T, Sedol: 6985543

2
© Azbil Corporation. All rights reserved.
Highlights
1. Consolidated Financial Results for FY2023

We achieved record consolidated financial results for the third consecutive fiscal year, with increased revenue and profits.
•
Orders received declined owing to stagnation of the factory automation (FA) market and other factors. However, thanks to strengthened procurement and
production capabilities, the order backlog was steadily converted into sales, resulting in increased net sales (up 12.5 billion yen or 4.5% to 290.9 billion yen)
compared with FY2022.
•
Operating income rose significantly (up 5.5 billion yen or 17.9% to 36.8 billion yen) due to this increased revenue and the effect of measures to strengthen
profitability, including cost pass-through, and despite increases in selling, general and administrative expenses.
2. Consolidated Financial Plan for FY2024

We plan to increase both net sales and operating income for the fourth consecutive fiscal year under the current medium-term plan.
•
A robust BA business environment is expected. For the AA business, a gradual recovery of the FA market is anticipated from the second half onwards. The order
backlog at the beginning of the period will be steadily converted into sales, and revenue is thus planned to increase (up 9.0 billion yen or 3.1% to 300.0 billion
yen).
•
While we will be actively investing for growth, operating income is expected to increase (up 0.6 billion yen or 1.8% to 37.5 billion yen) owing to revenue growth
and the effect of measures to strengthen profitability.
3. Returning Profits to Shareholders

We plan to increase the dividend for the tenth consecutive year, with an annual dividend of 88 yen* per share for FY2024, and DOE to
reach 5% level.
•
The year-end dividend for FY2023 will be increased by 3 yen from the initial plan to 39.50 yen per share (for an annual dividend of 76 yen per share).
•
It is planned to further increase the FY2024 dividend by 12 yen, making an annual dividend of 88 yen* per share. Dividend on equity (DOE) will increase to 5.0%.
*
Dividend not taking stock split into account
•
A 4-for-1 common stock split is scheduled (record date: September 30, 2024).
•
As an investment in human capital, using capital policy (use of treasury shares), we are planning new employee benefits and financial measures to further
enhance employee-shareholder engagement.
4. Progress in Implementing the Medium-term Plan

The operating income plan was achieved in FY2023 ahead of schedule due to the progress in initiatives for transformation, such as
strengthening profitability. We will proceed with our transformation for further growth, building on these results of transformation in
FY2023.
•
We will continue to invest actively in technology development, equipment and facilities, and human capital. Progress is being made with strengthening product
competitiveness by developing new business alliances, etc.

3
© Azbil Corporation. All rights reserved.
Contents
1. Consolidated Financial Results for FY2023
4
2. Consolidated Financial Plan for FY2024
13
3. Returning Profits to Shareholders
17
4. Progress in Implementing the Medium-term Plan
22
Appendix
33
Notes
44

© Azbil Corporation. All rights reserved.
4
1. Consolidated Financial Results for FY2023

5
© Azbil Corporation. All rights reserved.
1. Consolidated Financial Results for FY2023
Consolidated Financial Results

Orders received decreased compared with FY2022 mainly because of a fall in the AA business due to a slump in the
FA market.

Net sales rose compared with FY2022 and exceeded the plan. This reflects steady progress made with parts
procurement and production, against the backdrop of increased orders received in FY2022.

Operating income rose significantly compared with FY2022 and exceeded the plan. This was due to increased
revenue and measures taken to strengthen profitability, including cost pass-through, despite increased expenses.

Net income attributable to owners of parent rose significantly compared with FY2022. As well as reflecting
increased operating income, this was due to such factors as the recording of a provision for product warranties in
FY2022. The plan was achieved.
The impact of foreign exchange rate fluctuations (compared with FY2022)
+4.0 billion yen for net sales, +0.4 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)
FY2022
FY2023
Plan
(Nov. 7, 2023)
(A)
(B)
(B) - (A)
% Change
(C)
(B) - (C)
% Change
Orders received
296.9
287.8
(9.0)
(3.1)
Net sales
278.4
290.9
12.5
4.5
284.0
6.9
2.4
Japan
215.7
223.6
7.8
3.6
Overseas
62.6
67.3
4.6
7.5
Gross profit
111.9
122.9
11.0
9.9
Margin
40.2
42.3
2.1pp
SG&A
80.6
86.1
5.4
6.7
Operating income (loss)
31.2
36.8
5.5
17.9
33.7
3.1
9.3
Margin
11.2
12.7
1.4pp
11.9
0.8pp
Ordinary income (loss)
32.1
38.9
6.8
21.3
35.2
3.7
10.8
32.1
41.8
9.7
30.4
22.6
30.2
7.6
33.6
27.0
3.2
11.9
Margin
8.1
10.4
2.3pp
9.5
0.9pp
Difference
Income (loss) before income taxes
Net income (loss) attributable to
owners of parent
Difference

6
© Azbil Corporation. All rights reserved.
1. Consolidated Financial Results for FY2023
Financial Results by Segment
■
BA: In FY2022 multi-year service contracts were renewed and orders were received for large-scale projects. However,
in FY2023, against the backdrop of a robust business environment, orders received were at the same level as
FY2022. Both sales and segment profit increased, mainly due to the profitable existing building and service fields.
The plan was achieved.
■
AA: Continued sluggishness in the FA market led to a significant decline in orders received. However, owing to steady
conversion of our large order backlog into sales, revenue rose and the plan was achieved. Segment profit also
rose thanks to increased revenue and initiatives to strengthen profitability; the plan was achieved.
■
LA: Orders received and sales grew in all three fields, particularly in the Lifeline field; segment profit increased thanks
to increased revenue and initiatives to strengthen profitability. The plan was achieved.
（Billions of yen）
FY2022
FY2023
Plan
(Nov. 7, 2023)
(A)
(B)
(B) - (A)
% Change
(C)
(B) - (C)
% Change
■
B A
Orders received
135.3
136.7
1.4
1.1
Sales
128.5
134.6
6.0
4.7
132.3
2.3
1.8
Segment profit (loss)
16.0
19.3
3.2
20.5
16.6
2.7
16.7
Margin
12.5
14.4
1.9pp
12.5
1.8pp
■
A A
Orders received
113.9
101.4
(12.4)
(11.0)
Sales
103.9
107.0
3.0
2.9
105.2
1.8
1.8
Segment profit (loss)
14.5
16.1
1.5
10.6
16.0
0.1
0.7
Margin
14.0
15.1
1.0pp
15.2
(0.2)pp
■
L A
Orders received
49.6
51.6
2.0
4.1
Sales
47.9
51.4
3.4
7.3
48.6
2.8
5.8
Segment profit (loss)
0.5
1.3
0.7
133.6
1.1
0.2
25.1
Margin
1.2
2.7
1.4pp
2.3
0.4pp
Difference
Difference

7
© Azbil Corporation. All rights reserved.

In this period few multi-year service contracts were up for renewal. Also, in the field of new buildings, there was a
decrease compared with FY2022, when orders for large-scale projects had been received; another reason for this
decline in orders received was our focus on projects with higher margins. However, thanks to a robust business
environment, and growth in both the field for existing buildings and overseas business, overall orders received
remained at a similar level as FY2022.

Sales rose overall compared to FY2022, maintaining a high level for new buildings, and recording increases for
existing buildings, service, and overseas business. The plan was exceeded mainly owing to growth in the fields
for existing buildings and service.

Segment profit rose significantly due to increased revenue and the effect of measures to enhance profitability,
and despite a recording of labor and outsourcing costs as well as an investment in digital transformation (DX),
and other expenses. The plan was exceeded owing to increased revenue as well as growth in the profitable fields
for existing buildings and service.
1. Consolidated Financial Results for FY2023
Segment Information: BA Business
Our view of the business environment
— In the domestic market, demand has continued at a high level for office buildings included in urban redevelopment projects,
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 continuing interest in new solutions offering post-pandemic safety and suited to new ways of working.
— Overseas, investment remains firm following the post-pandemic recovery.
(Billions of yen)
FY2022
FY2023
Plan
(Nov. 7, 2023)
(A)
(B)
(B) - (A)
% Change
(C)
(B) - (C)
% Change
Orders received
135.3
136.7
1.4
1.1
Sales
128.5
134.6
6.0
4.7
132.3
2.3
1.8
Segment profit (loss)
16.0
19.3
3.2
20.5
16.6
2.7
16.7
Margin
12.5
14.4
1.9pp
12.5
1.8pp
Difference
Difference

8
© Azbil Corporation. All rights reserved.

Orders received significantly decreased due to the cyclical decline in demand in the semiconductor
manufacturing equipment market and because of some recoil following advance orders made in FY2022.

Sales increased significantly thanks to the progress made with production as a result of the strengthening of
procurement/production systems and an easing of parts procurement difficulties, underpinned by our large order
backlog. The plan was exceeded.

Segment profit rose thanks to revenue growth and initiatives to enhance profitability, including cost pass-through.
This was despite R&D investment and increased DX-related investment. Profit level also improved, and the plan
was achieved.
1. Consolidated Financial Results for FY2023
Segment Information: AA Business
Our view of the business environment
— In the FA market, conditions remain sluggish in the manufacturing equipment market, but progress is being made with adjusting
inventory, which had expanded considerably as a result of advance orders. We are keeping a close watch for signs of a market
recovery.
— In the process automation (PA) market, although the market in China continues to be sluggish, overall demand centering on
maintenance and refurbishment has remained robust.
(Billions of yen)
FY2022
FY2023
Plan
(Nov. 7, 2023)
(A)
(B)
(B) - (A)
% Change
(C)
(B) - (C)
% Change
Orders received
113.9
101.4
(12.4)
(11.0)
Sales
103.9
107.0
3.0
2.9
105.2
1.8
1.8
Segment profit (loss)
14.5
16.1
1.5
10.6
16.0
0.1
0.7
Margin
14.0
15.1
1.0pp
15.2
(0.2)pp
Difference
Difference

9
© Azbil Corporation. All rights reserved.

Orders received increased overall, thanks to growth in each field—Lifeline, LSE and Lifestyle-related.

Sales rose overall, thanks to growth in each field, especially the Lifeline field. The plan was exceeded.

Segment profit rose, thanks to increased revenue and initiatives to strengthen profitability. The plan was achieved.
1. Consolidated Financial Results for FY2023
Segment Information: LA Business
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 overseas for
pharmaceutical plant facilities. However, inflation is having an impact on investments and the economy.
(Billions of yen)
FY2022
FY2023
Plan
(Nov. 7, 2023)
(A)
(B)
(B) - (A)
% Change
(C)
(B) - (C)
% Change
Orders received
49.6
51.6
2.0
4.1
Sales
47.9
51.4
3.4
7.3
48.6
2.8
5.8
Segment profit (loss)
0.5
1.3
0.7
133.6
1.1
0.2
25.1
Margin
1.2
2.7
1.4pp
2.3
0.4pp
Difference
Difference

10
© Azbil Corporation. All rights reserved.

Overseas sales increased by 7.5% from FY2022 and accounted for 23.1% of net sales.

The BA business achieved considerable sales growth, principally in Asia. Owing to sluggish conditions in the FA
market, AA business sales were lower in North America, but grew in Asia and China thanks to the recovery in
production following easing of parts procurement difficulties. LA business sales increased overall owing to
growth in North America and Europe, and despite lower sales in Asia and other regions.
1. Consolidated Financial Results for FY2023
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.
0.0
10.0
20.0
30.0
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
FY2020
FY2021
FY2022
FY2023
(%)
(Billions of yen)
（Billions of yen）
FY2020
FY2021
FY2022
FY2023
18.8
19.4
25.0
26.6
11.0
14.2
15.1
16.6
3.7
4.9
6.6
8.1
9.0
10.3
11.3
12.4
2.2
3.1
4.2
3.4
44.8
52.1
62.6
67.3
Reference information
USD/JPY
106.77
109.90
131.64
140.66
EUR/JPY
121.88
129.91
138.15
152.10
CNY/JPY
15.48
17.04
19.50
19.82
23.1
Average
exchange
rate
■
Europe

■

Others
Consolidated
　　　
Overseas sales /
　　　
Net sales ratio (%)
18.2
20.3
22.5
■
North America
　
■
Asia (ex-China)
　
■
China