The azbil Group promotes DX through two complementary initiatives: internal DX, which improves productivity and creates new ways of working, and product DX, which creates new value for customers in manufacturing sites, building operations, and lifeline utilities. To keep pace with advances in digital technologies, we increased DX investments under our current medium-term plan (FY2025–FY2027) by approximately ¥5 billion compared with the previous medium-term plan. The Digital Promotion Headquarters, established in April 2025 as an organization reporting directly to the president & group CEO, is accelerating internal DX across the azbil Group. The know-how gained through these initiatives, together with the Group’s expertise in measurement and control, is being applied to product DX. In particular, the use of generative AI has expanded throughout the Group, enhancing daily operations and realizing the intergenerational skills transfer from experienced engineers, thereby helping ensure business continuity. In product DX, the azbil Group is leveraging AI and cloud computing to provide anomaly prediction and detection and optimal control solutions. These initiatives contribute to the stable operation and energy efficiency of customer facilities and create new added value at the customers’ sites and inside the Group, going beyond improvements in operational efficiency.

In recognition of these initiatives, Azbil was selected as a Noteworthy DX Company 2026 under the Digital Transformation Stocks (DX Stocks) 2026 program, jointly administered by Japan’s Ministry of Economy, Trade and Industry, the Tokyo Stock Exchange, and the Innovation Platform Agency, Japan (IPA).

Internal DX has expanded the adoption of a Fit to Standard approach, which reviews business processes to align with industry standards, while strengthening governance on a global basis and accelerating decision-making. In addition, the use of generative AI and low-code tools has become widespread across the Group, driving greater efficiency and sophistication of business processes. We are also using generative AI to convert the tacit knowledge of experienced engineers into explicit knowledge, thereby establishing mechanisms for intergenerational skills transfer. Alongside these initiatives, we have strengthened measures to address information security risks and are working to enhance enterprise value and ensure stable business operations. From an organizational perspective, we established the Co creation Group within the Digital Promotion Headquarters in FY2026. This cross-functional organization brings together key talent in digital initiatives from across the company and shifts DX activities from an IT-led support model to a self-driven model within each business unit, enabling the faster execution of DX initiatives. We are also focusing on developing DX talent to foster a corporate culture in which employees leverage digital technologies and actively take on new challenges. Specifically, DX talent is classified into three levels—leader, expert, and DX literate—and training programs tailored to each role are provided.

In product DX, each business segment is advancing the development of services that contribute to greater customer value.

In the Advanced Automation (AA) business, on-site services utilizing AI and cloud computing have evolved beyond supporting implementation to transforming customers’ maintenance operations themselves. The AI-based online anomaly detection system has expanded its applications beyond improving maintenance efficiency and supporting stable operations to include adapting to changes following scheduled equipment maintenance and supporting high-mix, low-volume production. Our control valve maintenance support system provides cloud-based analysis and visualization of valve operating data. In addition to improving quality and operational efficiency, the service supports the transition from time based maintenance to condition-based maintenance and contributes to the transformation of customers’ maintenance workflows.

In the Building Automation (BA) business, we provide cloud services for building management that enable remote, centralized control and monitoring. Through these services, building operators can monitor and control the status of air-conditioning systems in individual rooms in real time from remote locations. This helps streamline building management operations and improves operational efficiency.

In the Life Automation business, smart metering as a service connects smart meters with the cloud to provide remote meter reading, smart maintenance, and leak detection. The multi utility metering of gas, water, and electricity contributes to data integration, the utilization of big data, and enhanced disaster response capabilities. These initiatives contribute to the realization of safe, secure, and smart social infrastructure.