Further accelerate efforts to strengthen profitability based on the foundation established under the previous medium-term plan

The New Automation business, which was set out in the previous medium-term plan, refers to new products and services that utilize Azbil's unique technologies, and will create highly profitable businesses that use automation technology to solve new social issues. In this regard, creative efforts are underway in three areas and we are ramping up our activities. The first is a sapphire capacitance diaphragm gauge used in semiconductor manufacturing processes, which Azbil has been researching for the past 25 years. By using artificial sapphire for the diaphragm that separates the high-vacuum reference chamber and measurement chamber inside the vacuum gauge, and by combining this with Azbil's proprietary advanced MEMS^*3 technology, we have created a technology that can measure ultra-small changes in air pressure by detecting the deflection of the diaphragm. This enables high measurement accuracy and stability, while also delivering outstanding durability. As a result, we have earned high praise from major semiconductor equipment manufacturers in the U.S. and Japan. The technology has already been adopted by a major Japanese semiconductor equipment manufacturer, and we will accelerate our efforts to develop it into a large-scale business.

The second is a total solution for control valves (CVs), which are widely used in fields such as petrochemicals that make extensive use of process automation. This is a system that quickly collects detailed operational data on control valves, which are particularly important pieces of equipment in plants, and monitors and diagnoses the condition of the control valves via the cloud. Instead of the conventional open inspection of control valves at fixed intervals, it is now possible to implement condition-based maintenance (CBM^*4) by selecting only those control valves that have been diagnosed as exhibiting abnormalities. As a result, there is no need to inspect normal control valves unnecessarily, leading to reduced maintenance costs. Azbil has currently diagnosed over 10,000 control valves, and has confirmed that the diagnostic results match the actual condition of the control valves when they are opened and inspected. The consistency between the two has already reached over 80%, a level that is fit for practical use, and we are proud of the verification and track record that only Azbil, a manufacturer of control valves and provider of maintenance, can provide. The CV total solution is compatible with control valves from all manufacturers, not just Azbil, so business is expected to expand further in the future.

The third is the BiG EYES™ Online Anomaly Detection System for autonomization of factory operations. In the past, plant control has typically involved sensors that measure temperature, pressure, flow rate, etc., and the DCS would issue an alarm when the values were judged to be abnormal based on threshold values. BiG EYES is a system that applies AI, not only to sensor measurements directly related to control, but also to data from equipment, product quality, and environmental variables, enabling it to detect abnormal behaviors indicative of equipment failure at an early stage. Until now, the mainstream approach in plants has been to use sensor information for control and monitoring to detect malfunctions and dangers. From now on, it will be important to utilize sensor information to maintain plant equipment in a healthy condition for as long as possible. By setting and collecting measurement points from the perspective of plant maintenance and combining them with AI technology, we will ensure safe, secure, and stable plant operation and address labor shortages. Azbil has many years of experience in plant control, and by utilizing AI, we provide autonomous systems that function reliably at manufacturing sites. We will support our customers' work sites with our accumulated experience and knowledge.

Based on the foundation for strengthening of our core businesses and “New Automation” business established under the previous medium-term plan, the new medium-term plan will further accelerate improvements in sales and profitability by expanding competitive advantages through strengthening product appeal and continuing and expanding efforts to strengthen profitability.

As for the future initiatives of the Advanced Automation Company, we intend to continue to transform based on the three key concepts of a solid defense, autonomy, and change. First, a “solid defense” means ensuring that Azbil maintains the foundations it has cultivated over the years, including its business viability, such as competitiveness and profitability, as well as compliance and CSR adherence. Even if strict rules are set, there is inevitably some degree of complacency that arises during the course of business operations. We will build a system to proactively prevent such complacency from occurring.

“Autonomy” means that all employees at the Advanced Automation Company understand and share the company's direction and relationships with related departments, and each individual takes the initiative to work on improving and transforming operations, with departments cooperating with each other and functioning with a sense of unity as an organization. As a result, both individual and organizational capabilities are enhanced. The foundation for this is vertical communication, from the field to department and section managers to management, and horizontal communication, connecting personnel in the field with each other. To create such an environment, we will implement various measures to foster communication, including explaining the new medium-term plan internally, and create an environment in which the workplace can autonomously advance change.

We believe that when it comes to change, it is important to grasp the trends in the market, social conditions, and customers and not miss out on the wave. For example, if you work on a technology like generative AI before others, it can generate positive energy such as motivation and excitement. On the other hand, if you fall behind, it takes a lot of effort to catch up. That is why it is important to look not only within the company but also outside, and in addition to constantly keeping a close eye on market and competitor trends, it is essential to quickly detect changes and prepare for them. As stated in the evolution and co-creation concepts of our medium-term plan, we will proceed while being mindful of what innovations other companies are making, what areas we can share with each other, and what we can learn from them.

Going forward, the Advanced Automation Company will continue to steadily implement measures based on its medium-term plan, aiming to further expand its business and realize the well-being of its employees and customers by making contributions “in series” to a sustainable society.

*BiG EYES is a trademark of Azbil Corporation in Japan.