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Medium-term Plan

The azbil Group’s FY2021 to FY2024 medium-term plan

Azbil Corporation announced it has established the azbil Group’s new long-term targets (for fiscal year 2030) as well as a new medium-term plan (for fiscal years 2021 to 2024) with the aim of achieving growth and contributing “in series” to the achievement of a sustainable society by providing automation-related products and services.

Based on the philosophy of “human-centered automation,” the azbil Group aims to ensure its own sound growth over the medium to long term and sustainably increase its corporate value by contributing “in series” to the achievement of a sustainable society through its business. The azbil Group has established new long-term targets to be met by fiscal year 2030 in which it aims to become a corporate organization with net sales in the 400 billion yen range, operating income in the 60 billion yen range, operating income margin of approx. 15%, and return on equity (ROE) of approx. 13.5%. As part of the process of achieving those targets, the Group established its new medium-term plan (for fiscal years 2021 to 2024). Focusing on expanding the azbil Group’s previously defined three growth fields—new automation, environment and energy, and life-cycle solutions business—which share a common foundation of automation technology, the azbil Group will develop and achieve global growth in its businesses: Building Automation (BA), Advanced Automation (AA), and Life Automation (LA).

The azbil Group’s three growth fields, which share a common foundation of automation technology

As society faces a wide range of problems, including the COVID-19 pandemic, climate change, and working toward carbon neutrality, the role played by automation to handle these problems increases by the day. The azbil Group’s three growth fields will leverage automation technology to allow such societal problems to be tackled by continually carrying out improvements to the quality of space and productivity in customers’ assets, as well as curbing energy usage for such improvements. Based on the expertise and big data cultivated and collected over many years at customers’ sites, the three growth fields will demonstrate the azbil Group’s unique key strengths, from products to engineering and maintenance services.

To further ensure global growth focused on the three growth fields, the azbil Group will actively invest in R&D and capital expenditure for accelerating the development and introduction of new products and services that will continually create solutions. At the same time, the Group will implement digital transformation (DX) in sales, engineering, of services, and strengthen network infrastructure, all of which are necessary for creating high value-added services and making business more efficient. Improvements have already been made to production systems, with the focus on the Group’s Shonan Factory (in central Japan), which offers sophisticated production technologies. The production facility was repositioned as a “mother factory” and, starting this fiscal year at the Fujisawa Technology Center (in central Japan), which is the Group’s main R&D base, construction has begun on two new buildings that will improve the base’s capabilities (scheduled to be completed in fiscal year 2022).

In addition to the measures to expand business globally, the azbil Group will continue to implement various measures to improve profitability that enable stable profits even in the current changing business environment due to the COVID-19 pandemic. Furthermore, the Group will improve profitability by expanding overseas production and procurement and further carrying out measures to increase efficiency, such as the use of DX and cloud computing. Through these means, the azbil Group will aim to achieve the new long-term targets by steadily implementing the new medium-term plan. Return on invested capital (ROIC) will also be put into practice starting this fiscal year, leading to management that is even more efficient and mindful of the cost of capital.

Based on the Group philosophy of “human-centered automation,” the azbil Group has defined the SDGs as important guideposts for management and is striving to achieve its essential goals for the SDGs, while also continually reevaluating those targets based on changes in society and the business environment※1. Through such initiatives and the aforementioned business development, the azbil Group will strive to contribute “in series” to the achievement a sustainable society and attain sustained growth, by which it aims to fulfil the new medium-term plan and new long-term targets.

※1. “The azbil Group Raises Current Target and Establishes New Targets for SDGs Initiatives” dated May 14, 2021.