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Presentation Materials for the First Quarter of Fiscal Year 2026 ( Ending March 31 , 2027 ) ( Based on IFRS ) August 6 , 2026 Azbil Corporation RIC : 6845.T , Sedol : 6985543 To all those affected by the 2026 Kumamoto Earthquake We extend our heartfelt sympathy to everyone affected by the recent 2026 Kumamoto Earthquake . It is our sincere hope that recovery will be accomplished as soon as possible . We in the azbil Group are doing everything in our power to support recovery efforts , which includes helping our customers to restore their facilities . © Azbil Corporation . All rights reserved . 12 @ ANNIVERSARY azbil Engineering the Impossible
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© Azbil Corporation. All rights reserved. Contents The Company voluntarily adopted IFRS Accounting Standards from the first quarter of FY2026. For details on how this affected financial figures, refer to page 26. It is unclear how geopolitical risks, stemming chiefly from the Middle East situation, will impact business performance, so in preparing the consolidated financial plan for FY2026, we have taken into account those impacts that could be ascertained at the time of preparation. And while the prices for parts/materials are rising, there have been no significant changes to the outlook at this time. 2 1. Consolidated Financial Results for the First Quarter of FY2026 4 2. Consolidated Financial Plan for FY2026 12 3. Returning Profits to Shareholders 17 4. Progress in Implementing the Medium-term Plan 22 Appendix 25 Notes 39 Impact of the Middle East situation on the consolidated financial plan Voluntary adoption of International Financial Reporting Standards (IFRS Accounting Standards)
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© Azbil Corporation. All rights reserved.3 1. Consolidated Financial Results for the First Quarter of FY2026 Orders received rose significantly overall. This was because of growth in the BA business, which benefitted from robust market conditions and recorded large- scale projects, and also because AA business orders grew with a recovery in market conditions. Revenue also increased. As regards profits, measures to improve profitability, including cost pass-through, continued to prove effective; however, in addition to various growth investments, there was some recoil from the recording of highly profitable projects in FY2025, as well as increases in personnel and other expenses. As a result, business profit decreased in the first quarter of FY2026. 2. Consolidated Financial Plan for FY2026 *No revision from the most recent announcement on May 13, 2026 Although results for the first quarter show a decline in profits compared to the same period of FY2025, business performance is within expected ranges and on track to achieve our financial plan for the first half and the full year. Against the backdrop of robust market conditions, orders received grew significantly due in part to initiatives to secure neworders and the recording of large- scale projects. Increased revenue and profits are expected as a result of steadily converting orders received into revenue. 3. Returning Profits to Shareholders *No revision from the most recent announcement on May 13, 2026 Our expanded plan to repurchase the Company’s own stock in FY2026 (up to a maximum of 20.0 billion yen or 32 million shares) is currently being implemented. In FY2026, in addition to increasing the ordinary dividend by 6 yen, we plan to issue a commemorative dividend of 12 yen, making an annual dividend of 50 yen per share. 4. Progress in Implementing the Medium-term Plan Under the present medium-term plan, whose key theme is Evolution and Co-creation, and employing the azbil Group’s unique business model, we will actively make investments to strengthen our human capital, enhance product competitiveness, and advance DX. We aim to achieveboth increased revenue and enhanced profitability, and, through further business expansion, to realize the well-being of society and Group employees. The Middle East situation has had some impact on our businesses, but we are responding appropriately, strengthening preparedness and drawing on the experience previously gained from past supply chain disruptions to implement countermeasures. By steadily investing in growth, we aim to realize sustained growth. Financial results for the first quarter were within expected ranges, so we are on track to achieve our full-year plan. There is no change to the financial plan for FY2027 at this point; however, a review will be considered when we have a clearer picture of conditions, taking progress under the current medium-term plan into account. Highlights
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© Azbil Corporation. All rights reserved. 1. Consolidated Financial Results for the First Quarter of FY2026 4
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© Azbil Corporation. All rights reserved. (Billions of yen) FY2025 FY2026 Q1 Q1 (A) (B) (B) - (A) % Change Orders received 89.7 115.3 25.5 28.5 Revenue 62.4 63.6 1.2 2.0 Japan 51.0 51.5 0.5 1.0 Overseas 11.3 12.1 0.7 6.5 Gross profit 28.2 28.0 (0.2) (0.8) Margin 45.3 44.0 (1.3)pp SG&A 21.1 23.0 1.9 9.0 Business profit 7.1 4.9 (2.1) (30.1) Margin 11.4 7.8 (3.6)pp Operating profit 7.0 6.7 (0.3) (4.8) 7.4 7.5 0.0 1.2 5.0 5.0 0.0 1.5 Margin 8.0 8.0 (0.0)pp Difference Profit before tax Profit attributable to owners of the parent 5 Orders received: A significant increase overall compared to the same period of FY2025, due to growth in the BA business—thanks to robust market conditions and the recording of large-scale projects—and in the AA business, which saw a recovery in the FA markets. Revenue: Increased overall compared to the same period of FY2025 due to growth in the AA business, supported by a recovery in the FA markets. Business profit: A significant decrease overall compared to the same period of FY2025, due to growth investments, recoil from the recording of highly profitable projects in the same period of FY2025, and increases in personnel and other expenses, although measures to improve profitability, including cost pass-through, continued to prove effective. Profit attributable to owners of the parent: On a par with the same period of FY2025 due to the recording of gain on sale of property, plant and equipment. 1. Consolidated Financial Results for the First Quarter of FY2026 Consolidated Financial Results Orders received rose significantly overall. This was because of growth in the BA business, which benefitted from robust market conditions and recorded large-scale projects, and also because AA business orders grew with a recovery in market conditions. Revenue also increased. As regards profits, measures to improve profitability, including cost pass-through, continued to prove effective; however, in addition to various growth investments, there was some recoil from the recording of highly profitable projects in FY2025, as well as increases in personnel and other expenses. As a result, business profit decreased in the first quarter of FY2026. * IFRS * Reference: The impact of foreign exchange rate fluctuations (compared with the same period of FY2025) 1.2 billion yen for revenue 0.2 billion yen for business profit 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 currencies.
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© Azbil Corporation. All rights reserved.6 ■ BA: Orders received grew significantly compared to the same period of FY2025, thanks to growth in the fields for new and existing buildings as well as in the overseas business. Revenue was on a par with the same period of FY2025, following a decline in the field for new buildings but growth in the field for existing buildings. Segment profit was significantly down due to increased expenses, and despite the continuing effect of measures to enhance profitability. ■ AA: Orders received rose significantly compared to the same period of FY2025, due to a recovery in demand in the FA markets and growth in overseas PA markets. Revenue increased compared to the same period of FY2025, owing to growth in the FA markets in Japan and overseas. Segment profit decreased substantially as a result of growth investments, recoil from the recording of highly profitable projects in the same period of FY2025, as well as increases in personnel and other expenses, and despite the effect of increased revenue and successful measures to enhance profitability. ■ LA: Orders received were higher than the same period of FY2025 thanks to growth in the Lifeline field. Revenue was on a par with the same period of FY2025. Segment profit was lower compared to the same period of FY2025 due to soaring prices for parts/materials and increased personnel expenses, and despite measures being taken to enhance profitability. 1. Consolidated Financial Results for the First Quarter of FY2026 Financial Results by Segment （Billions of yen） FY2025 FY2026 Q1 Q1 (A) (B) (B) - (A) % Change ■ B A Orders received 55.5 72.9 17.4 31.4 Revenue 29.8 29.8 (0.0) (0.0) Segment profit 2.5 1.7 (0.8) (33.8) Margin 8.7 5.7 (2.9)pp ■ A A Orders received 24.1 32.0 7.9 32.8 Revenue 24.8 26.3 1.4 5.8 Segment profit 4.3 3.2 (1.0) (25.0) Margin 17.4 12.4 (5.1)pp ■ L A Orders received 10.4 10.8 0.4 3.9 Revenue 8.0 7.9 (0.0) (0.7) Segment profit 0.1 0.0 (0.1) (89.8) Margin 2.4 0.2 (2.1)pp Difference * IFRS *
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© Azbil Corporation. All rights reserved. Orders received grew considerably compared to the same period of FY2025, thanks to strong market conditions and the recording of large-scale projects, leading to significant growth in the fields for new and existing buildings as well as in the overseas business. Revenue was on a par with the same period of FY2025, due to progress made with load leveling and growth in the field for existing buildings, and despite a decline in the field for new buildings. Segment profit was significantly down due to ongoing growth investments in R&D and DX, as well as increases in personnel expenses and outsourcing costs, and despite the continuing effect of measures to enhance profitability, including cost pass-through. 7 Business environment ― In the domestic market, demand for new office buildings in urban redevelopment projects has remained strong and is expected to continue at a high level. Demand for the retrofit of buildings also remains strong. In overseas markets, investment continues to be robust for large- scale buildings including data centers. ― In addition to the demand for energy savings and CO2 reduction, there is a high level of interest in creating office environments that address safety concerns and which are suited to new work styles. ― Outsourcing costs for construction work, etc. rose. We will continue promoting measures to enhance profitability, including cost pass- through. 1. Consolidated Financial Results for the First Quarter of FY2026 Segment Information: BA Business (Billions of yen) FY2025 FY2026 Q1 Q1 (A) (B) (B) - (A) % Change Orders received 55.5 72.9 17.4 31.4 Revenue 29.8 29.8 (0.0) (0.0) Segment profit 2.5 1.7 (0.8) (33.8) Margin 8.7 5.7 (2.9)pp Difference * IFRS *
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© Azbil Corporation. All rights reserved.8 Business environment ― In the process automation (PA) markets demand for maintenance and retrofits, in Japan and overseas, remained firm. ― The factory automation (FA) markets have achieved a strong recovery, mainly due to growing demand in the semiconductor manufacturing equipment market. ― Although geopolitical risks in the Middle East are currently having limited direct impact on capital investment in the manufacturing sector, uncertainty remains regarding the possible scope and duration of any such impact. 1. Consolidated Financial Results for the First Quarter of FY2026 Segment Information: AA Business Orders received rose considerably compared to the same period of FY2025, thanks to the recovery in the semiconductor market, increased demand in the FA markets in Japan and overseas, as well as a rebound in the overseas PA markets, which had been sluggish during the same period of FY2025 due to some recoil from the recording of large advance orders. Revenue was higher than the same period of FY2025 due to an increase in sales in the FA markets in Japan and overseas, as with the increase in orders. Segment profit decreased substantially. This was due to several factors—an increase in depreciation expenses associated with capital expenditure on production facilities to expedite future business expansion in the semiconductor manufacturing equipment market, growth investments for the overseas business and DX, recoil from the recording of highly profitable projects in the same period of FY2025, as well as increases in personnel and other expenses—despite higher revenue leading to increased profit and the effect of measures to enhance profitability, including cost pass-through. (Billions of yen) FY2025 FY2026 Q1 Q1 (A) (B) (B) - (A) % Change Orders received 24.1 32.0 7.9 32.8 Revenue 24.8 26.3 1.4 5.8 Segment profit 4.3 3.2 (1.0) (25.0) Margin 17.4 12.4 (5.1)pp Difference * IFRS *
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© Azbil Corporation. All rights reserved. Orders received were higher than the same period of FY2025 thanks to growth in the Lifeline field, while revenue was on a par with the same period of FY2025. Segment profit was lower than the same period of FY2025 due to soaring prices for copper and other materials, as well as increases in personnel expenses, and despite implementing measures to enhance profitability and reduce expenses. 9 Business environment ― In the Lifeline field for gas and water meters, sales partly depend on the LP gas meter market, which exhibits cyclical fluctuations in demand. However, demand centering on city gas meters and water meters can be expected to remain basically stable, thanks primarily todemand for the replacement of meters whose statutory inspection/verification period is due to expire. In the coming years, we also anticipate growing demand for smart meters and the utilization of the data they provide.*1 ― In the residential central air-conditioning systems market, soaring construction costs are affecting the groundbreaking for detached houses. 1. Consolidated Financial Results for the First Quarter of FY2026 Segment Information: LA Business (Billions of yen) FY2025 FY2026 Q1 Q1 (A) (B) (B) - (A) % Change Orders received 10.4 10.8 0.4 3.9 Revenue 8.0 7.9 (0.0) (0.7) Segment profit 0.1 0.0 (0.1) (89.8) Margin 2.4 0.2 (2.1)pp Difference * IFRS * *1 In July 2025, Azbil Kimmon Co., Ltd. in the Lifeline field formalized an agreement to collaborate with Kamstrup A/S (Head office: Denmark), which has a proven track record in the smart water metering field with services such as cloud-based leak detection.
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© Azbil Corporation. All rights reserved. 10 1. Consolidated Financial Results for the First Quarter of FY2026 Overseas Revenue By Region * From FY2025, overseas revenue is presented by the region of the selling entity instead of the destination of delivery. * In October 2024, the Company transferred all equity interests in Azbil Telstar (ATL), which had been included in the LA business. O verseas revenue ratio dropped due to the impact of the ATL transfer Due to growth achieved by both the BA and AA businesses in the Asian region, revenue grew by 6.5% compared to the same period o f FY2025. The overseas revenue ratio was 19.0%. BA business revenue decreased due to recoil from the recording of large-scale projects in China in same period of FY2025. Similarly, the AA bu siness saw some recoil from the recording of large-scale projects in North America in the same period of FY2025, but overall revenue i ncreased owing to multiregional growth achieved by the CP business, which serves the semiconductor market. Overseas revenue ratio excluding the impact of the ATL transfer Overseas revenue excluding ATL （Billions of yen） FY2023 FY2024 FY2025 FY2026 Difference Q1 Q1 Q1 Q1 (A) (B) (B) - (A) % Change 4.9 6.5 4.9 6.2 1.2 26.3 3.5 4.2 3.8 3.5 (0.2) (7.5) 1.0 1.1 2.2 1.8 (0.3) (14.7) 0.2 0.2 0.2 0.2 0.0 34.5 0.3 0.3 0.2 0.2 (0.0) (8.0) 10.2 12.4 11.3 12.1 0.7 6.5 4.3 4.4 - - Overseas revenue including ATL 14.5 16.9 11.3 12.1 0.7 6.5 Reference USD/JPY 132.40 148.62 144.60 159.57 CNY/JPY 19.34 21.47 19.99 23.44 Average exchange rate 19.0 18.2 19.0 ATL revenue Consolidated 20.4 Overseas revenue / Revenue ratio (%) 23.8 25.8 18.2 Consolidated Overseas revenue / Revenue ratio (%) 18.0 ■ N orth America ■ E urope ■ O thers ■ C hina ■ As ia (ex-China)
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© Azbil Corporation. All rights reserved.11 1. Consolidated Financial Results for the First Quarter of FY2026 Consolidated Financial Position * IFRS Assets: Total assets decreased primarily due to a decline in trade and other receivables owing t o progress made with the collection of notes and accounts receivable-trade recorded in the f ourth quarter of FY2025. Liabilities: Liabilities decreased due to a reduction in current liabilities following bonus payments. Equity: Despite the recording of profit attributable to owners of the parent, there was a decrease in equity due to the payment of dividends and by repurchasing own stock. * Revenue for the azbil Group tends to be highest in the fourth quarter of the consolidated accounting period. (Billions of yen) As of Mar. 31, 2026 * As of Jun. 30, 2026 Difference As of Mar. 31, 2026 * As of Jun. 30, 2026 Difference (A) (B) (B)-(A) (A) (B) (B)-(A) Cash and cash equivalents 98.1 90.6 (7.4) Trade and other payables 18.0 17.1 (0.9) Trade and other receivables 78.2 53.8 (24.3) Borrowings 4.8 4.6 (0.1) Contract assets 18.3 17.9 (0.4) Lease liabilities 4.9 4.6 (0.2) Inventories 35.4 39.0 3.6 Other current liabilities 50.7 41.8 (8.8) Other current assets 8.3 10.9 2.5 Current liabilities 78.5 68.3 (10.1) Current assets 238.4 212.3 (26.1) Borrowings 5.0 4.5 (0.4) Property, plant and equipment 41.5 43.4 1.8 Lease liabilities 7.0 6.8 (0.2) Right-of-use assets 12.6 12.1 (0.4) Other non-current liabilities 7.1 6.8 (0.2) Intangible assets 7.5 7.7 0.2 Non-current liabilities 19.2 18.3 (0.9) Other financial assets 37.5 38.5 0.9 Total liabilities 97.7 86.6 (11.1) Other non-current assets 9.6 8.8 (0.7) Share capital 10.5 10.5 - Non-current assets 108.8 110.6 1.7 Capital surplus 13.0 13.0 0.0 Retained earnings 240.3 235.8 (4.5) Treasury share (37.7) (47.0) (9.3) Other components of equity 20.1 21.1 0.9 246.4 233.5 (12.9) Non-controlling interests 3.1 2.8 (0.2) Total equity 249.5 236.3 (13.1) Total assets 347.3 323.0 (24.3) Total liabilities and equity 347.3 323.0 (24.3) 70.9% 72.3% 1.3pp Total equity attributable to owners of parent Equity attributable to owners of the parent ratio
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© Azbil Corporation. All rights reserved. 2. Consolidated Financial Plan for FY2026 → No revision from the most recent announcement on May 13, 2026 • It is unclear how geopolitical risks, stemming chiefly from the Middle East situation, will impact business per formance, so in preparing the consolidated financial plan for FY2026, we have taken into account those impacts that could be ascertained at the time of preparation. And while the prices for parts/materials are rising, there have been no significant changes to the outlook at this time. • The Company voluntarily adopted International Financial Reporting Standards (IFRS Accountin g S tandards) from the first quarter of FY2026. For details on how this affected financial figures, refer to page 26. 12
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© Azbil Corporation. All rights reserved. （Billions of yen） FY2025 FY2026 Full year H1 H2 Full year Difference results plan plan plan (A) (B) (B) - (A) % Change Revenue 298.8 139.5 175.5 315.0 16.1 5.4 Business profit 46.4 17.3 30.9 48.2 1.7 3.8 Margin 15.5 12.4 17.6 15.3 (0.2)pp Operating profit 45.5 19.1 30.6 49.7 4.1 9.0 Margin 15.3 13.7 17.4 15.8 0.5pp Profit attributable to owners of the parent 36.4 12.4 22.9 35.3 (1.1) (3.3) Margin 12.2 8.9 13.0 11.2 (1.0)pp *2 IFRS 13 Although results for the first quarter show a decline in profits compared to the same period of FY2025, business performance is within expected ranges and on track to achieve our financial plan for the first half and the full year. Against the backdrop of robust market conditions, orders received grew significantly due in part to initiatives to secure new orders and the recording of large-scale projects. Increased revenue and profits are expected as a result of steadily converting orders received into revenue. The BA business environment continues to be robust. In the AA business, signs of FA market recovery are becoming increasingly evident. Although it is not yet clear how our business performance is going to be impacted by geopolitical risks, stemming chiefly from the Middle East situation,*1 we will monitor developments and—drawing on the experience previously gained from the COVID-19 p andemic and other crises—we will strive to mitigate any such impacts by responding swiftly and appropriately. While inflation and further increases in labor and other costs are expected, our outlook on future business opportunities involving automation technologies is unchanged. We will make steady progress in actively investing in strengthening our human capital, enhancing product competitiveness, and advancing DX. 2. Consolidated Financial Plan for FY2026 Consolidated Financial Plan Reference: Exchange rates FY2025 USD/JPY 150, CNY/JPY 21.2 FY2026 USD/JPY 156, CNY/JPY 22.2 *2 *1 In preparing the FY2026 financial plan, we have taken into account those impacts that could be ascertained at the time of preparation. And while the prices for parts/materials are rising, there have been no significant changes to the outlook at this time.
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© Azbil Corporation. All rights reserved.14 ■ BA: A continued increase in revenue is expected against the backdrop of robust market conditions and a large order backlog. Although there will be increases in outsourcing costs and personnel expenses, the plan anticipates increased profits resulting from revenue growth and such BA measures as increasing margins at the point of order receipt and effecting cost pass-through. ■ AA: We plan for increased revenue thanks to the FA market recovery. Despite soaring prices for parts/materials and increased personnel expenses, as well as some recoil from the recording of highly profitable projects mainly in the first half of FY2025, thanks to the effect of increased revenue and the continuation of measures to enhance profitability, Segment profit is expected to be on a par with FY2025. ■ LA: In the first quarter, there was some postponed recording of sales; however, we plan to increase revenue primarily through growth in the Lifeline field, and while personnel and other expenses are expected to rise, we anticipate higher profits due to the success of measures to improve profitability, including price adjustments. 2. Consolidated Financial Plan for FY2026 Financial Plan by Segment (1) （Billions of yen） FY2025 FY2026 Full year H1 H2 Full year Difference results plan plan plan (A) (B) (B) - (A) % Change ■ B A Revenue 156.2 68.3 97.7 166.0 9.7 6.2 Segment profit 28.3 8.7 21.3 30.0 1.6 5.9 Margin 18.1 12.7 21.8 18.1 (0.1)pp ■ A A Revenue 110.7 54.2 60.8 115.0 4.2 3.9 Segment profit 17.5 8.1 9.1 17.2 (0.3) (1.7) Margin 15.8 14.9 15.0 15.0 (0.9)pp ■ L A Revenue 33.3 17.5 17.8 35.3 1.9 5.9 Segment profit 0.6 0.5 0.5 1.0 0.3 61.6 Margin 1.9 2.9 2.8 2.8 1.0pp * IFRS *
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© Azbil Corporation. All rights reserved. A continued increase in revenue is expected against the backdrop of robust market conditions and a large order backlog. Although there will be increases in outsourcing costs and personnel expenses, the plan anticipates increased profits resulting from revenue growth and such BA measures as increasing margins at the point of order receipt and effecting cost pass-through. 15 BA LA AA The business environment in Japan and overseas remains robust. Due to successful initiatives to secure new orders, there was an in crease in orders received in the first quarter. Against the backdrop of a large order backlog, revenue growth in line with the plan is anticipated in the fields for existing buildings and service as well as in the overseas business. Also, we will continue to engage in load-leveling initiatives. Despite increases in outsourcing costs and other expenses, as well as higher personnel and DX-related expenses for growth, the plan will achieve higher profits through revenue growth, mainly in the profitable existing building and service fields, as well as through measures tostrengthen profitability, such as higher margins at the point of order receipt and appropriate cost pass-through. Demand is expected to increase with continued investment in the PA markets and as the recovery in FA markets, such as the semicon ductor manufacturing equipment market, gathers pace. We plan to increase revenue by decisively capturing the growing demand in both the PA and FA markets. We expect to achieve segment profit on a par with the same period of FY2025, or marginally lower, through revenue growth and meas ures to enhance profitability, including cost pass-through, in spite of the anticipated impact of soaring prices for parts/materials and increased personnel expenses, as well as some recoil from the recording of highly profitable projects mainly in the first half of FY2025. We plan for increased revenue thanks to the FA market recovery. Despite soaring prices for parts/materials and increased personnel expenses, as well as some recoil from the recording of highly profitable projects mainly in the first half of FY2025, thanks to the effect of increased revenue and the continuation of measures to enhance profitability, segment profit is expected to be on a par with FY2025. In the Lifeline field, while steadily capturing demand for gas and water meter replacement as required by law, we plan to increas e revenue by promoting the development of markets related to smart metering as a service*. Growth is also projected in the residential central air-conditioning systems field. Despite soaring prices for materials such as copper, as well as increased labor costs and other expenses, we plan to achieve higher profits thanks to increased revenue and measures to enhance profitability such as cost pass-through, sales initiatives focused on profitability, and the replacement of conventional meters with smart meters. In the first quarter, there was some postponed recording of sales; however, we plan to increase revenue primarily through growth in the Lifeline field, and while personnel and other expenses are expected to rise, we anticipate higher profits due to the success of measures to improve profitability, including price adjustments. 2. Consolidated Financial Plan for FY2026 Financial Plan by Segment (2) * Business involving the provision of new value-added services on top of the conventional measurement function of meters
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© Azbil Corporation. All rights reserved. For both BA and AA businesses orders received have remained strong. To achieve the objectives of the financial plan and the medium-term plan, we will ensure that orders are converted into revenue. Revenue and segment profit were affected by seasonal factors and also by the timing of sales recording, the business mix, and additional expenses. Nevertheless, these results were within expected ranges, so we are on track to achieve our full-year plan. Margins at the point of order receipt continued to improve, and steady progress was made with initiatives to achieve sales expansion in the field for existing buildings and enhance profitability. In Japan and overseas, the business environment is robust. Orders received increased in the fields for new and existing buildings as well as service and in the overseas business. In the profitable field for existing buildings, orders received grew by more than 65% compared to the same period of FY2025. This resulted from the recording of large-scale projects and successful initiatives to secure new orders. We plan to increase revenue by taking advantage of the FA market recovery and aim to achieve the plan, despite increased growth investments and some recoil from the recording of highly profitable projects in FY2025. Business environment and orders Revenue and segment profit 16 First quarter results by fiscal year Orders received for the BA business Growth rate for orders received in the field for existing buildings (FY2022 Q1 = 100) For this first quarter, the timing of sales recording meant that revenue remained on a par with the same period of FY2025. Although this had an impact on profits for the quarter, we anticipate increased revenue and an improved segment profit ratio in the second quarter onward, supported by the order backlog. For details of how seasonal factors affect the BA business, see page 32. 2. Consolidated Financial Plan for FY2026 Financial Plan by Segment (supplement): First-quarter Progress Toward Achieving the FY2026 Financial Plan Note: The field for existing buildings is presented here for reference as it is responsible for approximately 35% of the orders received by the BA business, and approximately 40% of the growth in orders received in FY2026 Q1. Note: The CP business is presented here for reference as it is responsible for approximately 40% of the orders received by the AA business, and approximately 75% of the growth in orders received in FY2026 Q1. AABA Business environment and orders Revenue and segment profit In Japan and overseas, recovery in the FA markets, principally the semiconductor-related markets, is clearly gathering pace. Since the start of FY2026, orders received for FA-related markets are growing significantly QoQ. The increase exceeds 50% compared to the same period of FY2025. We will take advantage of market growth by launching strategic products for semiconductor equipment. Despite the impact of growth investments (including capital expenditure to enhance the competitiveness of products for the semiconductor market) and some recoil from the recording of highly profitable projects in the same period of FY2025, we plan to achieve profit plan with higher revenue, supported by robust numbers for orders received. Results by quarter Orders received for the AA business Growth rate for orders received in the CP business (FY2025 Q1 = 100)
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© Azbil Corporation. All rights reserved. 3. Returning Profits to Shareholders 17 Developing a disciplined capital management and maintaining and enhancing the azbil Group’s enterprise value, while carefully balancing three key elements: promoting shareholder returns, investing for growth, and maintaining a sound financial base. Returning profits to shareholders is a management priority. Returning profits to shareholders is mainly by dividends, but also by flexible repurchase of shares by the Company. In deciding the level of returns, consideration is given to consolidated financial results, level of ROE, DOE, and retain ed ea rnings required for future business development and s trengthening of the Company. We strive to maintain a stable but rising dividend level. Basic Policy → No revision from the most recent announcement on May 13, 2026
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© Azbil Corporation. All rights reserved.18 3. Returning Profits to Shareholders Further Improvement in Shareholder Returns: DOE to Exceed Target Level Set in Current Medium-term Plan In view of the strengthened profitability of our business foundation and efficient balance sheet management, FY2025/FY2026 dividends will be (have been) increased and the share buyback program will be expanded in FY2026. A By implementing initiatives in the medium-term plan, we have continued to strengthen the foundation of business profitability, and our FY2025 f inancial results exceeded the initial plan. In order to enhance shareholder returns and improve capital efficiency, we will increase (have i ncreased) FY2025/FY2026 dividends and expand the share buyback program in FY2026. This is because it has been determined that, going forward, we will be able to secure the necessary funds, partly through debt financing, even while investing for growth and even if the business environment deteriorates due to geopolitical risks. FY2025 dividend FY2026 dividend Repurchase of own stock We plan to actively return profits to our shareholders using funds generated through our business performance through FY2025. Enhancing shareholder returns in line with our basic policy Strengthened foundation for business profitability, improved balance sheet Practicing disciplined capital management, improving capital efficiency (ROE) Securing funds necessary for growth investments and business continuity * Conscious of the cost of capital in management, the azbil Group has introduced and been in process of enhancing business management that incorporates return on invested capital (ROIC), which is based on the trial calculation of adjusted after-tax business profit. Reference: FY2025 azbil Group ROIC (trial calculation) was 11.5% applying J-GAAP, 11.1% applying IFRS. Weighted average cost of capital (WACC) was 7.6%. For ensuring a disciplined capital management and improved capital efficiency, the Company will repurchase the Company’s own stock up to 20.0 billion yen. The Company plans an annual dividend of 50 yen per share (+18 yen compared to FY2025). ― Ordinary dividend to rise by 6 yen + 120th anniversary commemorative dividend of 12 yen The year-end dividend was increased by 6 yen from the initial plan (May 2025), making an annual dividend of 32 yen per share (+8 yen compared to FY2024). ― DOE was 6.8%, exceeding the target level set in the medium-term plan. In progress
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© Azbil Corporation. All rights reserved. In addition to a dividend increase of 6 yen, a 120th anniversary commemorative dividend of 12 yen is to be issued, which would make a projected annual dividend of 50 yen per share. DOE will rise to 10.7%. 19 3. Returning Profits to Shareholders FY2026 Annual Dividend *1 *2 *3 *1 FY2026 dividend In FY2026, based on our policy of enhancing shareholder returns and aiming to further improve our stable dividend level, we plan to increase the ordinary dividend by 6 yen, resulting in an interim dividend of 19 yen per share, a year-end dividend of 19 yen per share, and an annual dividend of 38 yen per share. In addition, as we are celebrating our 120th anniversary in FY2026, to express our gratitude to the shareholders we plan to issue a commemorative dividend of 12 yen per share at the time that the interim dividend is paid. (It is planned total interim dividend of 31 yen per share.) In FY2024 a revised stock ownership plan (J-ESOP-RS) was adopted for all employees, and the FY2026 dividend increase, including the commemorative dividend, will thus serve as a way for them to also share in the profits. At the same time, from the perspective of sharing value with shareholders, it will also act as an incentive to foster engagement in the business, thereby contributing to the enhancement of enterprise value. *1 To facilitate comparison, figures for FY2025 have been recalculated using IFRS. When calculated using Japanese GAAP, the FY2025 dividend payout ratio was 42.2％ and dividend on equity (DOE) was 6.7％. *2 Calculating earnings per share and estimating the IFRS-based dividend payout ratio, after taking into account the effect of the repurchase of own stock in FY2026. *3 Payout ratio and DOE excluding commemorative dividend *4 The following factors have been taken into account for the trial calculation of DOE (IFRS), which is based on total equity attributable to owners of the parent as of March 31, 2026: repurchase of own stock in FY2026, year-end dividends for FY2025, interim dividends for FY2026 (including commemorative dividend), profit attributable to owners of the parent for the full year in the consolidated financial plan for FY2026. *4 *3 (Yen) FY2025 FY2026 Actual Plan (May 13, 2026) Interim Year-end Annual Interim Year-end Annual Ordinary dividend 13.0 19.0 32.0 19.0 19.0 38.0 120th anniversary commemorative dividend - - - 12.0 - 12.0 Dividend per share 13.0 19.0 32.0 31.0 19.0 50.0 46.1% 72.1% 54.8% 6.8% 10.7% 8.0% Payout ratio Dividend on equity (DOE)
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© Azbil Corporation. All rights reserved. 3. Returning Profits to Shareholders Repurchase of Own Stock 20 Reference: Status of treasury shares held as of June 30, 2026 • Total number of issued shares (excluding treasury shares): 511,201,291 shares • Number of treasury shares: 30,171,445 shares The number of treasury shares shown on the left does not include shares owned by trust accounts of an employee stock ownership plan, a Trust-Type Employee Shareholding Incentive Plan and stock compensation plan, which owned 8,763,979 shares as of June 30, 2026. In view of the ROE figures set out in our long-term targets (FY2030) and the medium-term plan (FY2025–FY2027), we will engage in measures to expand business and strengthen profitability, and we are repurchasing own stock to practice disciplined capital management, improve capital efficiency, and increase shareholder returns. The extent and duration of the impact of the Middle East situation on industry and the economy are unknown, and there is increasing uncertainty as regards the business environment. However, as with dividends, the share buyback program will be funded strictly by our financial results to date. Furthermore, considering (1) the strengthened profitability of our business foundation, and (2) leveraging external debt going forward, it has been determined that we will be able to continue making investments for growth and enhancing shareholder returns. Note that, while we have usually cancelled such repurchased shares at a suitable time, in this case, given the uncertainty surrounding the future business environment, we do not plan to cancel the repurchased shares immediately. Instead, they will be held as treasury shares for the time being to ensure that our capital policy options offer sufficient flexibility to respond to future changes in the business environment. Repurchase of own stock The Company is repurchasing its own stock up to a maximum of 20.0 billion yen or 32 million shares. Repurchase of own stock 1. Type of stock to be repurchased: Common stock of the Company 2. Total number of shares to be repurchased: Up to 32.00 million shares* 3. Total amount of repurchase: Up to 20.0 billion yen 4. Period of repurchase: From May 14, 2026 to October 30, 2026 5. Method of repurchase: Market transactions on the Tokyo Stock Exchange * 6.2% of the total number of common shares issued, excluding treasury shares
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© Azbil Corporation. All rights reserved. Total amount of own stock repurchased (billions of yen) 1.9 2.9 4.9 9.9 9.9 9.9 9.9 14.9 14.9 20.0 Number of shares repurchased (millions of shares) 4.80 5.71 7.48 14.87 9.01 10.68 8.77 12.46 10.83 32.00 8.37 9.00 10.25 11.50 12.50 13.75 15.00 16.50 19.00 24.00 32.00 38.00 0.625 12.00 3.1 3.5 3.5 3.7 3.9 4.0 4.2 4.4 4.8 5.5 6.8 10.7 0.0 2.0 4.0 6.0 8.0 10.0 12.0 0 10 20 30 40 50 60 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 FY2026 (%)(Yen) Ordinary dividend Commemorative dividend Dividend on equity (DOE) 3. Returning Profits to Shareholders Trend of Shareholder Returns In FY2026, in addition to increasing the ordinary dividend for the 12th consecutive year, we plan to issue a commemorative dividend (an annual dividend of 50 yen per share, which will be 18 yen higher than FY2025). 21 *1 Through FY2024, DOE was calculated under Japanese GAAP; from FY2025 onward, IFRS has been applied. Under Japanese GAAP, DOE for FY2025 was 6.7%. *2 The dividend per share and total number of own shares purchased have been retroactively adjusted to take into account the effect of the stock split in October 2024 and in October 2018. (Plan) (Plan) (Plan) (Plan) (Plan)
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© Azbil Corporation. All rights reserved. 4. Progress in Implementing the Medium-term Plan 22
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© Azbil Corporation. All rights reserved. In the first quarter, orders increased significantly against the backdrop of robust market conditions, thanks to our successf ul initiatives. First quarter results are typically susceptible to factors that engender profit fluctuations, but revenue and se gment p rofit were within expected ranges, so we are on track to achieve our full -year plan. 4. Progress in Implementing the Medium-term Plan Medium-term Plan (FY2025–FY2027) 23 340.0 bil.yen [62.0 bil.yen] 51.0 bil.yen 15.0% 14% Growth Evolution and Co-creation Long-term targets FY2030 FY2026 plan (IFRS basis) May 13. 2026 Through business expansion, we aim to realize the well-being of society and group employees by making contributions that lead “in series” to a sustainable society. Long-term targets (formulated in May 2025) FY2024 results 300.3 bil.yen 285.7 bil.yen [63.1 bil.yen] [48.5 bil.yen] 41.4 bil.yen 13.8% 17.9% Transformation Revenue [overseas sales] Business profit Margin ROE Growth Cycling from growth to core and back to growth businesses 297.0 bil.yen [50.5 bil.yen] 43.0 bil.yen 14.5% 13.1% 420.0 bil.yen [100.0 bil.yen] 65.0 bil.yen 15.5% 15% Core *2 *1 *1 298.8 bil.yen [52.4 bil.yen] 46.4 bil.yen 15.5% 15.2% [bil.yen = billion yen] FY2025 initial plan May 13. 2025 FY2025 results (IFRS basis) 315.0 bil.yen [56.5 bil.yen] 48.2 bil.yen 15.3% 15.0% FY2027 formulated May 2025 As regards the impact of the M iddle East situation, the F Y2026 plan takes into account o nly what is currently evident. For FY2027, a review will be considered at a stage when the c urrent uncertain conditions become more foreseeable, also taking progress under th e c urrent medium-term plan into account. *1 Net sales exclude the impact of the transfer of Azbil Telstar (ATL) in October 2024. Excluding the impact of the ATL transfer, operating income was 41.0 billion yen and operating income margin was 14.4%. *2 ROE excluding the extraordinary gains from the transfer of equity interests in Azbil Telstar and other factors was 14.2%. Under the current medium-t erm plan, whose key theme is Evolution and Co-creation, and employing the azbil Group’s unique business model, we will actively make necessary investments to strengthen our human capital, enhance product competitiveness, and advance DX. We aim to achieve increased sales and enhanced profitability, and, through further business expansion, to realize the well-being of society and Group employees. FY2025: While results varied by business segment, we achieved overall financial results that exceeded the initial plan. FY2026: The Middle East situation has had some impact on our businesses; however, we are responding appropriately, strengthening preparedness and drawing on the experience previously gained from past supply chain disruptions to implement countermeasures. By steadily investing in growth, we aim to realize sustainable growth.
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© Azbil Corporation. All rights reserved. In our growth businesses, we will enlarge our customer base, while in our core businesses we will improve sustainability and profitability. By continually cycling from growth businesses to core businesses and back to growth businesses, we aim to achieve sustained business expansion. Growth businesses Businesses operating in markets where there is demand for harnessing technological advances and resolving social issues Enlarging the customer base by introducing new products and services that are on the cutting edge Core businesses Businesses with an existing customer base, established over many years Sustained improvement of profitability is possible through DX promotion. We will realize growth through expansion of the customer base. Examples: Cutting-edge products and services in each business In the BA business, GX solutions for saving energy and utilizing renewable energy; in the AA business, MEMS sensors for semiconductor manufacturing equipment and other FA; and in the LA business, smart metering as a service Examples: Retrofit and servicing of existing systems based on the customer base of each business 24 4. Progress in Implementing the Medium-term Plan The azbil Group’s Unique Business Model
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© Azbil Corporation. All rights reserved. Appendix • Major Impact by Adopting IFRS 26 • Performance Trend by Segment 27 • How seasonal factors affect the BA business 32 • Capital Investment, Depreciation and Amortization, and R&D Expenses 33 • Medium-term Plan: Progress in Each Business 34 • Looking at the Future Balance Sheet with an Eye on Capital Efficiency 35 • Corporate Governance 36 • The azbil Group’s Materiality and its Own SDG Targets 37 • Our Purpose and Vision 38 25
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© Azbil Corporation. All rights reserved. Appendix Major Impact by Adopting IFRS Reference 2: Impact to profit and loss statement (FY2025 results)*1 Reference 1: Impact to balance sheet at the point of adoption (March 31, 2026) We voluntarily adopted International Financial Reporting Standards (IFRS), starting from the first quarter of FY2026. Accordingly, the financial plan for FY2026 is presented based on IFRS. Purpose of voluntary adoption To enhance our global business management through the unification of accounting standards across the azbil Group to IFRS; and to improve the international comparability of our financial information in the capital markets Business profit We disclose business profit, a management-defined performance measure calculated by deducting cost of sales and selling, general and administrative expenses from revenues, to indicate the profitability of the core business activities. Impacts of first-time adoption of IFRS (key factors) to balance sheet *1 Recognition of right-of-use assets and fair value measurement of unlisted stock investments *2 Recognition of lease liabilities and accrued paid leave Impacts of IFRS adjustments (key factors) to profit and loss statement *3 Expense recognition of paid leave and other employee benefits *4 Recognition of gains or losses on sales of investment securities in other comprehensive income (not in profit and loss statement) 26 (Billions of yen) (Billions of yen) J-GAAP Impact of IFRS adoption IFRS J-GAAP IFRS IFRS adjustments Total assets 332.2 15.1 347.3 *1 Net sales 298.9 Revenue 298.8 (0.0) Liabilities 76.2 21.5 97.7 *2 Gross profit 139.5 Gross profit 138.7 (0.8) *3 Net assets 255.9 (6.4) 249.5 Operating income 47.3 Business profit 46.4 (0.8) *3 Total liabilities and net assets 332.2 15.1 347.3 Operating profit 45.5 Ordinary income 48.7 Net income attributable to owners of parent 38.5 Profit attributable to owners of parent 36.4 (2.0) *4
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© Azbil Corporation. All rights reserved. FY2023 * FY2024 * FY2025 FY2026 FY2025 FY2026 Q1 Q1 Q1 Q1 Q1 Q2 Q3 Q4 Q1 46.4 56.2 55.5 72.9 55.5 45.0 31.1 31.9 72.9 25.7 24.2 24.1 32.0 24.1 22.8 27.8 31.3 32.0 12.7 15.6 10.4 10.8 10.4 7.7 7.4 8.3 10.8 84.3 95.7 89.7 115.3 89.7 75.2 66.0 71.2 115.3 Orders received excluding Azbil Telstar 9.8 9.4 81.4 89.5Consolidated ■ BA ■ BA ■ AA ■ AA ■ LA ■ LA Consolidated Consolidated ■ ＬＡ 0.0 25.0 50.0 75.0 100.0 125.0 0.0 25.0 50.0 75.0 100.0 125.0 (Billions of yen)(Billions of yen) 27 Appendix Performance Trend by Segment: Orders Received Comparison to past results (Q1) Quarterly (3 months) * FY2023, FY2024 J-GAAP
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© Azbil Corporation. All rights reserved. FY2023 * FY2024 * FY2025 FY2026 FY2025 FY2026 Q1 Q1 Q1 Q1 Q1 Q2 Q3 Q4 Q1 104.5 113.5 115.6 141.6 115.6 125.8 116.1 98.2 141.6 54.6 49.0 47.1 50.5 47.1 42.1 43.9 44.6 50.5 21.4 26.4 7.0 8.1 7.0 6.7 6.2 5.2 8.1 180.1 188.8 169.6 199.8 169.6 174.4 166.1 147.7 199.8 Order backlog excluding Azbil Telstar 7.4 7.1 166.1 169.5Consolidated ■ BA ■ BA ■ AA ■ AA ■ LA ■ LA Consolidated Consolidated ■ ＬＡ 0.0 50.0 100.0 150.0 200.0 0.0 50.0 100.0 150.0 200.0 (Billions of yen)(Billions of yen) 28 Appendix Performance Trend by Segment: Order Backlog Comparison to past results (Q1) Quarterly (3 months) * FY2023, FY2024 J-GAAP
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© Azbil Corporation. All rights reserved. FY2023 * FY2024 * FY2025 FY2026 FY2025 FY2026 Q1 Q1 Q1 Q1 Q1 Q2 Q3 Q4 Q1 24.9 28.8 29.8 29.8 29.8 35.0 41.5 49.9 29.8 24.8 25.0 24.8 26.3 24.8 28.1 26.7 30.9 26.3 11.9 12.0 8.0 7.9 8.0 8.0 7.9 9.2 7.9 61.2 65.5 62.4 63.6 62.4 70.8 75.7 89.8 63.6 Revenue excluding Azbil Telstar 7.6 7.6 56.8 61.1Consolidated ■ BA ■ BA ■ AA ■ AA ■ LA ■ LA Consolidated Consolidated ■ ＬＡ 0.0 25.0 50.0 75.0 100.0 125.0 0.0 25.0 50.0 75.0 100.0 125.0 (Billions of yen)(Billions of yen) 29 Appendix Performance Trend by Segment: Revenue Comparison to past results (Q1) Quarterly (3 months) * FY2023, FY2024 J-GAAP
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© Azbil Corporation. All rights reserved. FY2023 * FY2024 * FY2025 FY2026 FY2025 FY2026 Q1 Q1 Q1 Q1 Q1 Q2 Q3 Q4 Q1 0.4 1.6 2.5 1.7 2.5 5.7 7.8 12.1 1.7 1.7 5.6 8.7 5.7 8.7 16.3 19.0 24.3 5.7 3.8 3.9 4.3 3.2 4.3 4.7 3.5 4.8 3.2 15.7 15.6 17.4 12.4 17.4 16.9 13.2 15.7 12.4 0.3 0.2 0.1 0.0 0.1 0.1 0.0 0.2 0.0 2.8 2.1 2.4 0.2 2.4 1.8 0.4 2.7 0.2 4.6 5.7 7.1 4.9 7.1 10.6 11.4 17.2 4.9 7.6 8.8 11.4 7.8 11.4 15.1 15.0 19.2 7.8 Business Profit excluding Azbil Telstar 0.2 0.1 4.5 5.7 ■ BA ■ BA - Margin - Margin ■ AA ■ AA - Margin - Margin ■ LA ■ LA ■ ＬＡ Consolidated - Margin - Margin Consolidated Consolidated Margin Margin 0.0 10.0 20.0 30.0 40.0 0.0 5.0 10.0 15.0 20.0 0.0 10.0 20.0 30.0 40.0 0.0 2.0 4.0 6.0 8.0 (Billions of yen)(Billions of yen) (%)(%) 30 Appendix Performance Trend by Segment: Segment Profit (Business Profit) * FY2023, FY2024 J-GAAP Comparison to past results (Q1) Quarterly (3 months)
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© Azbil Corporation. All rights reserved. Appendix Performance Trend by Segment: Orders Received and Order Backlog (full-year) Orders received by segment Order backlog by segment 31 * FY2022, FY2023, FY2024 J-GAAP FY2022 * FY2023 * FY2024 * FY2025 FY2022 * FY2023 * FY2024 * FY2025 135.3 136.7 153.6 163.7 82.8 85.5 90.3 98.2 113.9 101.4 105.9 106.2 53.4 48.5 48.6 44.6 49.6 51.6 46.8 33.9 20.1 22.1 4.5 5.2 296.9 287.8 304.7 302.3 156.0 155.9 143.3 147.7 Orders received excluding Azbil Telstar Order backlog excluding Azbil Telstar 30.8 32.3 31.3 33.9 5.1 5.3 4.5 5.2 278.1 268.5 289.1 302.3 141.0 139.1 143.3 147.7 ■ BA ■ BA ■ AA ■ AA ■ LA ■ LA Consolidated Consolidated ■ LA ■ LA Consolidated Consolidated 0.0 50.0 100.0 150.0 200.0 250.0 300.0 (Billions of yen) 0.0 50.0 100.0 150.0 200.0 250.0 300.0 (Billions of yen)
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© Azbil Corporation. All rights reserved. Revenue for the BA business tends to be low in the first quarter of the consolidated accounting period and highest in the fourth quarter. However, fixed costs are incurred constantly, which typically means that segment profit is relatively lower in the first quarter of the consolidated fiscal year, rising higher in the second quarter onward, particularly in the fourth quarter. Appendix How seasonal factors affect the BA business 32 * FY2024 J-GAAP
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© Azbil Corporation. All rights reserved.33 Appendix Capital Investment, Depreciation and Amortization, and R&D Expenses Capital investment, depreciation and amortization R&D expenses * FY2026 plan includes depreciation of right-of-use assets based on lease contracts in addition to those of non-current assets. Full-year results/ Q1 results for FY2026 Full-year plan for FY2026 FY2023 FY2024 FY2025 FY2026 FY2023 FY2024 FY2025 FY2026 plan plan J-GAAP J-GAAP J-GAAP IFRS J-GAAP J-GAAP J-GAAP IFRS ■ Capital investment 8.6 9.8 7.9 11.7 ■ R&D expenses 12.3 12.7 12.7 13.8 ■ Depreciation and amortizaition * 6.0 6.7 7.0 12.0 ― R&D expenses / Revenue (%) 4.2 4.2 4.3 4.4 (%) 3.8 3.0 0.0 2.5 5.0 7.5 10.0 12.5 15.0 2.5 0.0 1.0 2.0 3.0 4.0 5.0 6.0 0.0 2.5 5.0 7.5 10.0 12.5 15.0 (Billions of yen) (Billions of yen)
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© Azbil Corporation. All rights reserved. (billion yen) FY2024 FY2025 FY2026 FY2027 results results plan formulated J-GAAP IFRS May 13, 2026 May 2025 Revenue 285.7 298.8 315.0 340.0 Overseas 48.5 52.4 56.5 62.0 Business profit 41.0 46.4 48.2 51.0 Margin 14.4% 15.5% 15.3% 15.0% Revenue 148.7 156.2 166.0 174.0 Overseas 14.4 15.7 17.7 18.5 Segment profit 24.3 28.3 30.0 26.9 Margin 16.4% 18.1% 18.1% 15.5% Revenue 106.8 110.7 115.0 123.0 Overseas 32.0 34.9 36.8 41.0 Segment profit 15.9 17.5 17.2 21.0 Margin 15.0% 15.8% 15.0% 17.1% Revenue 32.0 33.3 35.3 43.0 Overseas 2.1 1.7 2.0 2.5 Segment profit 0.7 0.6 1.0 2.8 Margin 2.3% 1.9% 2.8% 6.5% azbil Group BA AA LA We are implementing measures aimed at strengthening the unique bu siness model of the azbil Group and tailored to the business environment and characteristics of each segment. In FY2025, growth was driven mainly by the BA and AA businesses. • Growth in the fields for existing buildings and service exceeded the plan. Orders received for data center projects also grew, in Japan and overseas. The profit margin exceeded the target set for the final year of the medium-term plan. • From FY2026 onwards we will continue to focus on our domestic bu siness in the fields for existing buildings and service while engaging in overseas expansion initiatives. • In FY2025, the product mix contributed to achieving a business profit margin of 15.8%. In the PA market, both growth and core businesses achieved expansion. • The FA market recovery was delayed beyond what had been anticipated, im pacting our financial results. Although there is an impact from product mix, to catch up to the level set in the plan, we will implement business management that is precisely tailored to region and product. • It is taking longer than expected to develop smart metering as a service, la unch new products and expand sales. • While implementing measures to enhance profitability such as cost pass-through, sales initiatives focused on profitability, and replacement to smart meters, we will aim to expand high-value-added businesses that offer solutions to societal issues, such as leak detection. • Initiatives to expand the customer base in both our BA and AA bu sinesses—for example, by developing global account customers— have achieved a degree of success. • We are implementing initiatives that make the most of regional c haracteristics, as demonstrated by our establishment of a new sales base in the Johor-Singapore Special Economic Zone (JS-SEZ) in Malaysia. BA AA LA Overseas * The figures exclude the results of Azbil Telstar. There is no change to the financial plan for FY2027 at this point; however, a review will be considered at a stage when the current uncertain conditions become more foreseeable, also taking progress under the current medium-term plan into account. Appendix Medium-term Plan: Progress in Each Business * 34
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© Azbil Corporation. All rights reserved. In view of our strong financial stability and current liquidity, underpinned by sound financial results, we will actively work to promote shareholder returns based on disciplined capital management, while continuing to make growth investments. As regards both FY2027 and FY2030 targets for ROE, we will consider revising them once we have a clearer picture of the uncertai n situation, in addition to taking into account the progress of our medium-term plan. 42.1 51.1 138.6 100.3 255.9 9.8 66.3 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 500,000 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 35.6 48.6 135.6 95.0 240.5 5.4 69.0 While practicing dis ciplined capital management and appropriate management of our balance sheet, we will continue to enhance shareholder returns and invest for growth. Current assets We will maintain short-term liquidity at an appropriate level to support stable business operations, including reserves for business continuity planning (revising the target level in accordance with current business profitability and our capacity to raise capital). Fixed assets We will continue to invest in non-current assets as growth investments aimed at business expansion. Liabilities We will further improve capital efficiency by securing appropriate debt financing to capitalize on opportunities to invest for growth (using debt to fund growth investments worth approximately 50.0 billion yen). Equity While practicing disciplined capital management, we will allocate equity capital to growth investments while maintaining a sound financial structure and enhancing shareholder returns. Final year of the medium-term plan In FY2025, steady progress was made with st rengthening the revenue base. (billions of yen) FY2027 ROE (plan) 14% ( formulated in May 2025) FY2030 ROE (plan) 15% (formulated in May 2025) FY2024 ROE (results) 17.9% (14.2%*1) FY2025 ROE (results) 15.7%（15.2％*2） By appropriately managing the balance sheet using external debt, while being conscious of the cost of capital, we will aim to further increase ROE. Long-term targets FY2030 Projected interest- bearing debt ratio: approximately 15% FY2025 Interest-bearing debt ratio: 3% Appendix Looking at the Future Balance Sheet with an Eye on Capital Efficiency *1 ROE excluding the extraordinary gains from the transfer of equity interests in Azbil Telstar and other factors was 14.2%. *2 FY2025 ROE was 15.2% based on IFRS. ■ Cash and cash equivalents ■ Current assets ■ Non-current assets ■ Investments and other assets ■ Liabilities ■ Interest-bearing debt ■ Equity 35
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© Azbil Corporation. All rights reserved. Nomination Committee Remuneration Committee Audit Committee Supervisory Inside directors Outside directors Each statutory committee is chaired by an outside director Accelerate the delegation of authority to the executive side Chair- person Corporate executives Executive officers Composition of independent outside directors: 72.7% Composition of female directors: 27.3% 3 inside directors and 8 independent outside directors Board of Directors 10 to 11 Executive Composition of independent outside directors: 70.0% Composition of female directors: 30.0% 3 inside directors and 7 independent outside directors Aiming to further strengthen the independence and supervisory function of Board of Directors April 2022: Corporate Secretariat Office established as a dedicated secretariat for the Board of Directors. June 2022: Transitioned to a company with a three-committee board structure, with a non-executive inside director serving as chairperson June 2025: An outside independent director assumes the chair June 2026: Enhanced composition of independent outside directors … Chair- person Appendix Corporate Governance Current composition of the Board of Directors, following approval at the Ordinary General Meeting of Shareholders in June 2026 36
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© Azbil Corporation. All rights reserved.37 Materiality is identified from the perspective of sustainability and contributing “in series” to a sustainable society. As regards the seven key categories related to business and corporate activities, specific azbil Group SDG targets have been set as Essential Goals of the azbil Group for SDGs. At the same time, as regards the three fundamental obligations to society that a company must fulfill, we have set specific targets for our CSR activities. We will promote sustainability management by implementing initiatives to achieve these targets. Materiality Targets Climate change Resource recycling Innovation Ⅱ Realizing sustainable production sites, work environments, and a safe and comfortable society through new automation New automation Solving occasional issues as required by society and creating added value through advanced measurement, a data-driven approach, and autonomy ● We will achieve a state of resilience to changes in the business environment at 8,000 business sites by 2030.*9 ● We will provide environments that support stress-free and diverse work styles to 6 million people by 2030.*10 Supply chain Contribute to local communities Human rights, safety, and health Learning and employee development Product safety and quality Corporate governance Compliance Our fundamental obligations Governance Fulfilling our fundamental obligations to society * With regard to product safety and quality and compliance, each department sets indicators and goals directly related to business as a CSR activity plan. The plan includes compliance enhancement, strengthening of response to legal requirements, disaster prevention and BCP, information leak prevention, proper accounting practices, creation of a healthy workplace, enhanced occupational health and safety, assurance of customer safety from product incidents, and respect for human rights. Progress on these initiatives is monitored through the azbil Group CSR Promotion Committee, ensuring maintenance and improvement of such initiatives. * With regard to corporate governance, in 2022 the company transitioned to a three-committee Board structure, and is working to ensure appropriate supervision and effectiveness under a system of Board of Directors with a majority of outside derectors and three statutory committees. - In 2025, the company strengthened its corporate governance by appointing an outside director as the chairperson of the Board of Directors and revising its remuneration policy for officers—expansion of the performance-linked component of the remuneration structure for corporate executives, revision of key performance indicators, and expansion of the scope of “Malus and Clawback policy.” ● Effective reduction of CO2 at customers' sites: 3.40 million metric tons of CO2/year*1 (FY2030) ● Reduction targets in greenhouse gas (GHG) emission (science-based target*2 approved) (FY2030) 60% reduction in GHG emissions from our business activities (scopes 1+2) compared to 2017*3 33% reduction in GHG emissions throughout the entire supply chain (scope 3) compared to 2017 ● Design all new products to meet the azbil Group’s own sustainability standards *4 and to be 100% recyclable*5 (FY2030) ● Increase the number of skilled professionals *7 for supporting sustainable services *6 to a total of 1,800*8—triple the number in FY2021 General corporate activities Society Ⅲ Fulfilling our responsibilities to society across our supply chain and contributing to local communities Supply chain; Social responsibility ● Working with our business partners on achieving SDGs as a common goal and creating shared CSR value across the supply chain; Evaluating policies, systems, initiatives, and effectiveness using our own evaluation indicators *11 ● Social contribution activities rooted in local communities are run at all our business sites,*12 with the active participation by every employee*13 Human resource Ⅳ Strengthening our foundation to solve societal problems through health and well-being management and continuous learning Health and well-being management; An organization that never stops learning ● Implementing health and well-being management (job satisfaction, health, diversity and inclusion) Employees expressed satisfaction with working at azbil Group companies in FY2030: 65% or more*14 Increase the percentage of women in manegerial positions to at least 10%*15 in FY2030 Double the percentage of female managers in the Group's domestic companies by FY2027, compared to FY2017*16 ● Developing and strengthening “an organization that never stops learning” Employees have experienced personal growth through their work in FY2030: 65% or more*14 Essential Goals of azbil Group for SDGs Essential goals Business Environment Ⅰ Preserving the Earth’s environment and solving energy-related problems through cooperative creation Environment and energy We are currently reviewing our materiality in light of changes in the business environment and the establishment of our purpose, following discussions at the Board of Directors. Appendix The azbil Group’s Materiality and its Own SDG Targets
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© Azbil Corporation. All rights reserved. 38 Appendix Our Purpose and Vision Purpose This purpose expresses how we aim to drive the creation of new value on site with our customers— advancing “From efficiency to innovation. From impossible to possible.”—which is achieved by using technologies centered on automation to unlock the tremendous potential inherent in people and society. Vision By pursuing our Purpose, we aim to achieve our distinct vision and set of goals of ten years from now for the azbil Group to achieve. Brand statement: Engineering the Impossible An expression of determination of the azbil Group’s Purpose and Vision. azbil Group Way Shared values that unite our aspirations for the Group’s future
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© Azbil Corporation. All rights reserved. Notes (1) 39 1. The amounts have been rounded down. The figures for growth businesses and core businesses are approximate values based on internal calculations. 2. The following are the azbil Group’s segments (each identified by abbreviation) together with the various sub-segments and their principal business fields. BA: Building Automation AA: Advanced Automation • Control Product (CP) business: Supplying factory automation products such as controllers and sensors • Industrial Automation Product (IAP) business: Supplying process automation products such as differential pressure transmitters, pr essure transmitters, and control valves • Solution and Service (SS) business: Offering control systems, engineering service, maintenance service, energy -saving solution service, etc. LA: Life Automation • Lifeline field: Provision of gas meters and water meters, safety equipment such as alarms and automatic shut-off valves, regulators and other products for industry • Lifestyle-related field: Provision of residential central air-conditioning systems for houses 3. Revenue for the azbil Group tends to be low in the first quarter of the consolidated accounting period and highest in the fourth quarter. However, fixed costs are generated constantly. This means that profits are typically lower in the first quarter and higher inthe fourth quarter.
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© Azbil Corporation. All rights reserved. Notes (2) 40 4. Essential Goals of the azbil Group for the SDGs *1 3.40 million metric tons of CO2/year: The FY2030 emission factor from electricity generation is our own estimated value based on the Japanese government’s Energy Basic Plan in 2019. *2 Science-based targets (SBT): Greenhouse gas emission reduction targets based on scientific evidence *3 60% reduction in GHG emissions from our business activities (Scope 1+2) compared to FY2017: In April 2026, an updated target to realize a 60% reduction by FY2030 compared to FY2017, from the previous target of 55% compared to FY2017, was received validation from the Science Based Targets initiative (SBTi). *4 The azbil Group’s own sustainable design principles: This design is aimed at creating and providing products that contribute to solving global environmental issues (decarbonization, resource recycling, and biodiversity conservation). *5 All new products will be designed to be 100% recyclable: To the extent of using best available technologies (BAT, the most effective technology that is both economically and technologically viable) *6 Sustainable services: As well as contributing, through our automation technologies, to productivity improvements and stable operations at our customers’ sites, we offer field engineering services that can contribute to the realization of a sustainable society by solving environmental challenges that face our customers and society in all three of the azbil Group’s environmental priority areas (decarbonization, resource recycling, and biodiversity conservation). *7 Skilled professionals: We have set up an in-house qualification system for the following staff with specialized skills considered vital for realizing solutions to issues in our three environmental priority areas. • Professionals licensed for network services, such as remote maintenance of large-scale buildings, energy management, and cloud services • Certified professionals in the fields of advanced plant/factory control, energy-saving solution technologies, and valve maintenance
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© Azbil Corporation. All rights reserved.41 Notes (3) 4. Essential Goals of the azbil Group for the SDGs *8 Increase the number of skilled professionals to a total of 1,800—triple the number in FY2021: The total number of qualified personnel includes individual employees who have acquired multiple professional skills in the process of mastering new technologies for our field engineering services. *9 Achieve a state of resilience to changes in the business environment at 8,000 business sites: The base year for our target is FY2022. Base value is as of April 2022 (530 business sites). *10 Provide environments that support stress-free and diverse work styles to 6 million people: The base year for our target is FY2022. Base value is as of April 2022 (0.6 million). *11 Evaluation of policies, systems, initiatives, and effectiveness using our own evaluation indicators: A unique framework and evaluation system based on external ESG assessments such as FTSE *12 All business sites: All offices both in Japan and overseas. *13 Active participation by every employee: The azbil Group aims to participate in activities of a scale that can accommodate the total number of employees. *14 Employees expressed satisfaction/have experienced personal growth: We aim to achieve 65%, which is considered a high level in the azbil Group’s annual employee engagement survey conducted in Japan, or, in other words, 2/3 of all employees. *15 Percentage of women in managerial positions: The target of at least 10% female managers applies to Azbil Corporation. *16 Double the percentage of female managers in the Group’s domestic companies by FY2027, compared to FY2017: The base year for our target is FY2017 because in FY2018 we revised our personnel system to incorporate measures for women’s advancement.
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© Azbil Corporation. All rights reserved. IR Inquiries and Disclaimer 42 Phone: +81-3-6810-1031 Website: https://www.azbil.com/index.html IR Inquiry: https://form.azbil.com/form/pub/contact/azbil_form_e Azbil Corporation Investor Relations Inquiries regarding investor relations The projections are based on management’s assumptions, intent and expectations in light of the information currently available to it, and therefore these statements are not guarantees of future performance. Due to various factors in the future, actual results may differ from financial targets in the materials. This document is a translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail. Disclaimer