Expanding into new business areas to realize a world of automation created by human ingenuity and technologyNew medium-term plan (FY2017-FY2019) for the azbil Group

May  30, 2017

TOKYO, May 30, 2017: Azbil Corporation (Head Office: 2-7-3 Marunouchi, Chiyoda-ku, Tokyo; President and Chief Executive Officer: Hirozumi Sone) has announced a new medium-term plan for the azbil Group covering a 3-year period through the fiscal year ending March 31, 2020.

■Rationale behind the new medium-term plan
Our business is driven by a dedication to realize safety, comfort, and fulfilment in people's lives and to contribute to the global environment through the Group philosophy of "human-centered automation".
As performance metrics, we have set ourselves long-term targets to achieve by 2021, which will mark the 115th year since our founding. We have made progress with the first stage in achieving these targets with our FY2013-2016 medium-term plan. For the second stage we have created a new medium-term plan, which runs for 3 years starting in fiscal 2017. It continues the three key initiatives set out in the previous medium-term plan but includes new vectors for future business growth. And while implementing specific measures to achieve our FY2019 and FY2021 targets, we will strive to build a firm foundation for maintaining a high level of profits in the medium-to-long term.

■FY2019 medium-term plan

1. Fiscal 2019 targets
The new medium-term plan (FY2017-FY2019), which represents the second stage in achieving the Group's long-term goals, sets the following targets for fiscal 2019:
Net sales: ¥270 billion; Operating income: ¥25 billion; ROE: Over 9%

2. Three fundamental policies
The Group will continue with and intensify the following three fundamental policies, established in the previous medium-term plan:

  1. Being a long-term partner for the customer and the community by offering solutions based on our technologies and products;
  2. Taking global operations to the next level by expansion into new regions and a qualitative change of focus; and
  3. Being a corporate organization that never stops learning, so that it can continuously grow stronger

3. Vectors of business expansion
The Group will develop business globally, especially in the following areas that have the potential for sustainable growth. And to further this expansion we will actively engage in R&D, capital investment, and in the building of partnerships in Japan and abroad (including M&A).

  1. Provide solutions throughout the life cycle Supplying value matched to each stage in the lifecycle of a customer's business
  2. Develop new automation opportunities Adapting to transformative structural changes in industry by combining "things" and information
  3. Focus on environmental and energy issues Providing solutions to the long-term issues of environmental impact reduction and energy demand restraint

4. Corporate governance & CSR management in the azbil Group
The azbil Group enhances corporate governance continuously, to consistently increase enterprise value by means of highly efficient and transparent management. As a world-class general automation manufacturer, we regard corporate social responsibility as a top management priority. We are committed to "human-centered CSR management" and we implement CSR management to actively contribute to the benefit of all stakeholders.

5. Returning profits to shareholders
The azbil Group will continue to treat the return of profits to shareholders as a management priority. Carefully balancing shareholder returns with investment in growth and ensuring a healthy financial foundation, we will implement a well-disciplined capital policy and aim to maintain/enhance enterprise value through the new medium-term plan.

■Looking to the future
Guided by our philosophy of "human-centered automation", the azbil Group will continue to realize safety, comfort, and fulfilment in people's lives and contribute to the global environment.
  • Our vision
    By focusing on people and realizing a world of automation created by human ingenuity and technology, we will become a top-class global corporate group that enhances the safety and security of its customers, helps to improve their corporate value, and contributes to solving global environmental issues.

  • FY2021 targets
Net sales: ¥300 billion; Operating income: ¥30 billion or more; ROE: Over 10%

* Posted information is accurate as of the date of announcement.