Smart Buildings

Azbil’s Building Automation Business and 2022 Financials Examined

In this Research Note, we examine Azbil, a public company with a leading position in the Japanese building automation market.  Our analysis is based on their annual results, year ending 31st March 2022 and investor presentations. The Building Automation (BA) business, the largest of three business units, accounts for 46.4% of consolidated net sales for the Azbil Group, which increased 3.9% to 256,551 million yen, year ending 31 March 2022. The overall vision for the BA business is to become an Asia-based world-class supplier of building systems. Core strategies include: Integrating their building automation systems, IoT devices and field equipment to optimize energy usage, air quality and temperature quality.Introducing cloud-based energy efficiency and virtual power plant services.Developing proven energy-saving apps and engineering services meeting safety and comfort needs in the overseas market. The BA business provides solutions incorporating the latest technology in sensing, controls, IT, building system optimization, construction, and maintenance services, as demonstrated in more than 25,000 installed systems to […]

Stay ahead of the pack

with the latest independent smart building research and thought leadership.

Have an account? Login

Subscribe Now for just $200 per year per user (just $17 USD per month) for Access to Quality Independent Smart Building Research & Analysis!

What Exactly Do you Get?

  • Access to Website Articles and Notes. Unlimited Access to the Library of over 1,700 Articles Spanning 10 Years.
  • 10% discount on ALL Memoori Research reports for Subscribers! So if you only buy ONE report you will get your subscription fee back!
  • Industry-leading Analysis Every Week, Direct to your Inbox.
  • AND Cancel at any time
Subscribe Now

In this Research Note, we examine Azbil, a public company with a leading position in the Japanese building automation market.  Our analysis is based on their annual results, year ending 31st March 2022 and investor presentations.

The Building Automation (BA) business, the largest of three business units, accounts for 46.4% of consolidated net sales for the Azbil Group, which increased 3.9% to 256,551 million yen, year ending 31 March 2022.

The overall vision for the BA business is to become an Asia-based world-class supplier of building systems. Core strategies include:

  • Integrating their building automation systems, IoT devices and field equipment to optimize energy usage, air quality and temperature quality.
  • Introducing cloud-based energy efficiency and virtual power plant services.
  • Developing proven energy-saving apps and engineering services meeting safety and comfort needs in the overseas market.

The BA business provides solutions incorporating the latest technology in sensing, controls, IT, building system optimization, construction, and maintenance services, as demonstrated in more than 25,000 installed systems to date. Azbil does its own development and manufacturing of the products that are essential for BA systems to ensure a high level of compatibility and a high level of performance from an integrated system.

BA sales, year ending 31 March 2022 increased 1.9% year on year to 119,764 million yen (around $823 million) due to growth in the fields related to new large-scale buildings and the refurbishment of existing buildings. However, sales fell short of the plan due to long delivery times triggered by parts shortages and the prolonged impact of the pandemic in overseas markets, which resulted in the postponement of construction projects and continued construction delays in some regions. 

In the domestic market, demand has continued to grow for urban redevelopment projects in the Tokyo metropolitan area and for HVAC control equipment and systems for factories. There is also growing interest in solutions related to ventilation improvement, energy savings and CO2 reduction.  The impact of the COVID-19 pandemic on domestic markets was limited although some negative impact from parts procurement difficulties was evident.

BA segment margin was 11.6%, down from 11.9% in the previous year. Although initiatives to enhance profitability have progressed, segment profit was 13,862 million yen, on par with the 14,023 million yen recorded for the previous fiscal year. BA employed 3,283 people in March 2022.

SourceAzbil Web Site Financial Results

With a 1.9% increase in revenues, following a 5.1% decline the previous year, Azbil Group is anticipating continued recovery in its major business unit in 2022. The financial plan for year ending March 2023 targets BA sales of 129 billion yen, a 7.7% year-on-year increase. The plan to increase both sales and profitability back to pre-pandemic levels is backed up by the order backlog and robust demand for HVAC control equipment and systems in both new large-scale buildings and refurbishment of existing buildings. 

This article was written by Daphne Tomlinson, Senior Research Associate at Memoori.

Most Popular Articles

Smart Buildings

Azbil Building Automation Business & FY2023 Financials Examined

In this Research Note, we examine Azbil, a Japanese public company with a leading position in the domestic building automation market. The financial highlights and growth strategy analysis of the Building Automation business is based on their FY2023 annual results, year ending 31st March 2024, Annual Report 2023, and investor presentations. Azbil Building Automation Financial […]

MapMortar Startup Examined
Energy

MapMortar Examined: The Google Maps for Zero Carbon Building Retrofits

This Research Note examines an early-stage UK startup, MapMortar which has developed a retrofit twin platform designed to help large commercial real estate portfolio owners and asset managers model and simulate portfolio decarbonization to plan, manage, and execute retrofitting at scale. Founded in 2022 as Mortar.io, the startup changed its name to MapMortar, headquartered in […]

AI in Commercial Buildings
Smart Buildings

Major Players Put Their Weight Behind AI in Commercial Buildings

The development of artificial intelligence (AI) in commercial buildings is far-reaching, leading to a broad adoption landscape. The strategic positioning of key players in the AI market for commercial buildings is a critical aspect of understanding the current landscape and the future potential of AI. “Many large building automation firms are at the forefront of […]

Subscribe to the Newsletter & get all our Articles & Research Delivered Straight to your Inbox.

Please enter a valid email

Please enter your name

Please enter company name

By signing up you agree to our privacy policy