Slide 1: Results Presentation for Six Months Ended June 30, 2023
Results Presentation for Six Months Ended June 30, 2023 EBARA (6361) August 14, 2023
Slide 2: Table of Contents
Table of Contents Points of Results P3 4. Progress of Medium-term P20 1. FY23 1Q Summary of Results Management Plan E-Plan 2025 ・Consolidated P5 5. Appendix ・Segment P6 ・Orders P26 ・Breakdown of Changes in Operating Profit P7 ・Revenue P27 ・Revenue by Region P8 ・Operating Profit P28 2. FY23 1Q Result
Slide 3: Points of Results
Points of Results FY23 1-2Q Results FY23 Forecast YoY* Change Vs. Plan* YoY* Change Vs.P.Plan* ¥-31.7 B. ¥-4.8 B. ¥-52.2 B. ¥23.0 B. Orders ¥367.6 B. -7.9% ↘ -1.3% → Orders ¥763.0 B. -6.4% ↘ +3.1% → ¥51.4 B. ¥2.8 B. ¥66.1 B. - Revenue ¥363.8 B. +16.5% ↗ +0.8% → Revenue ¥747.0 B. +9.7% ↗ - → ¥6.5 B.
Slide 4: 1. FY23 1-2Q Summary of Results
1. FY23 1-2Q Summary of Results 2. FY23 1-2Q Results by Segment 3. FY23 Forecast 4. Progress of Medium-term Management Plan E-Plan 2025 5. Appendix 4 Copyright(c) Ebara Corporation, All rights reserved
Slide 5: Consolidated
1. FY23 1-2Q Summary of Results Consolidated (billions of yen) FY23 Plan FY22 1-2Q FY23 1-2Q Change Change % Change Change % Announced date(m/d/y) 23/05/15 a b b-a (b-a)/a c b-c (b-c)/c Orders 399.4 367.6 -31.7 -7.9% 372.5 -4.8 -1.3% Revenue 312.4 363.8 +51.4 +16.5% 361.0 +2.8 +0.8% Operating Profit
Slide 6: Segment
1. FY23 1-2Q Summary of Results Segment (billions of yen) FY23 1-2QPlan FY22 1-2Q FY23 1-2Q Change Change % Change Change % Announced date(m/d/y) May/15/23 a b b-a (b-a)/a c b-c (b-c)/c Orders 399.4 367.6 -31.7 -7.9% 372.5 -4.8 -1.3% Revenue 312.4 363.8 +51.4 +16.5% 361.0 +2.8 +0.8% Total Operating
Slide 7: Breakdown of Changes in Operating Profit
1. FY23 1-2Q Summary of Results Breakdown of Changes in Operating Profit OP increased due to higher revenue as well as depreciation of yen in 1-2Q Driven by Building Service & Industrial, Energy, and Precision Machinery (+) (billions of yen) Increase in labor cost as well as R&D expenses, depreciati
Slide 8: Revenue by Region
1. FY23 1-2Q Summary of Results Revenue by Region 129.5 Japan 123.9 +4.6% 234.2 +24.3% Middle Overseas 188.5 Others East 4% 59.5 6% Japan China 50.9 +16.8% Europe 36% 9% Asia (excl. 73.4 57.3 +28.1% China) North FY23 1-2Q 35.9 America North +48.5% Revenue 24.2 10% America Compostions 31.1 Europe 27.
Slide 9: 2. FY23 1-2Q Results by Segment
1. FY23 1-2Q Summary of Results 2. FY23 1-2Q Results by Segment 3. FY23 Forecast 4. Progress of Medium-term Management Plan E-Plan 2025 5. Appendix 9 Copyright(c) Ebara Corporation, All rights reserved
Slide 10: Building Service & Industrial
2. FY23 1-2Q Results by Segment Building Service & Industrial Results (billions of yen) Highlights Orders Revenue Market ◼ GDP growth continues to slow in North America, Europe, Environment the Middle East, and China, but domestic capital investment remains strong. FY22 FY23 204.8 220.0 193.5 210.0
Slide 11: Energy
2. FY23 1-2Q Results by Segment Energy Results (billions of yen) Highlights Orders Revenue Market ◼ In the LNG market, projects are active in North America. Environment ◼ In the downstream oil and gas market, petrochemical projects 190.0 165.0 are active in North America, Asia, and the Middle East.
Slide 12: Infrastructure
2. FY23 1-2Q Results by Segment Infrastructure Results (billions of yen) Highlights Orders Revenue Market ◼ Domestic public pump market remains steady Environment ◼ Investment in advance disaster prevention and FY22 FY23 aging measures is expected to remain strong due to 53.5 49.0 46.2 50.0 the "Fiv
Slide 13: Environmental Solutions
2. FY23 1-2Q Results by Segment Environmental Solutions Results (billions of yen) Highlights Orders Revenue Market ◼ Demand for new construction of waste treatment Environment facilities for public use remained stable as in past 73.7 71.0 FY22 FY23 105.8 90.0 years 76.8 52.2 46.2 49.2 36.4 30.9 Orde
Slide 14: Precision Machinery
2. FY23 1-2Q Results by Segment Precision Machinery Results (billions of yen) Highlights Orders Revenue Market ◼ In the semiconductor market, capital investment is being Environment postponed or partially cancelled, and factories continue to 301.5 adjust their operations FY22 FY23 229.9 250.0 ◼ Decl
Slide 15: 3. FY23 Forecast
1. FY23 1-2Q Summary of Results 2. FY23 1-2Q Results by Segment 3. FY23 Forecast 4. Progress of Medium-term Management Plan E-Plan 2025 5. Appendix 15 Copyright(c) Ebara Corporation, All rights reserved
Slide 16: Consolidated
3. FY23 Forecast Consolidated 1-4Q (billions of yen) FY22 Results FY23 P.Plan FY23 Plan YoY Change Change from previous plan Announced date(m/d/y) May/15/23 Aug/14/23 Change Change % Change Change % a b c c-a (c-a)/a c-b (c-b)/b Orders 815.2 740.0 763.0 -52.2 -6.4% +23.0 +3.1% Revenue 680.8 747.0 74
Slide 17: Segment
3. FY23 Forecast Segment 1-4Q (billions of yen) FY22 実績 FY23 P.Plan FY23 Plan YoY Change Change from previous plan Announced date(m/d/y) May/15/23 Aug/14/23 Change Change % Change Change % a b c c-a (c-a)/a c-b (c-b)/b Orders 815.2 740.0 763.0 -52.2 -6.4% +23.0 +3.1% Revenue 680.8 747.0 747.0 +66.1
Slide 18: Breakdown of Changes in Operating Profit
3. FY23 Forecast Breakdown of Changes in Operating Profit Although there are some revisions to the forecast within the segments, the company-wide operating profit forecast remains at 71.0 billion yen Compared to Full-year Forecast Announced in May 2023 Compared to Previous Year (billions of yen) (bi
Slide 19: 4. Progress of Medium-term Management Plan E-Plan 2025
1. FY23 1-2Q Summary of Results 2. FY23 1-2Q Results by Segment 3. FY23 Forecast 4. Progress of Medium-term Management Plan E-Plan 2025 5. Appendix 19 Copyright(c) Ebara Corporation, All rights reserved
Slide 20: Maintain and Improve Capital Profitability
4. Progress of Medium-term Management Plan E-Plan 2025 Maintain and Improve Capital Profitability Aim to sustainably increase corporate value by maintaining and improving ROIC above WACC and implementing business strategies and capital policies that lead to ROIC spread expansion Changes in ROIC E-Pl
Slide 21: ROIC Tree
4. Progress of Medium-term Management Plan E-Plan 2025 ROIC Tree ◼ Improve capital efficiency through appropriate management of ROIC by business with respect to ROE/ROIC management targets ◼ Active dialogue with capital markets and implementation of measures to reduce the cost of capital Process KPI
Slide 22: ROIC Spread by Segment
4. Progress of Medium-term Management Plan E-Plan 2025 ROIC Spread by Segment WACC by Segment Consolidated WACC E-Plan 2025 Target (Current Status) 5–6% ROIC 10% or higher Measures to Expand ROIC Spread ROIC Spread ◼ Expand the ROIC tree Consolidated 5–6％ Reduce WACC Improve ROIC ◼ Reduce WACC (capi
Slide 23: Initiatives to Expand ROIC Spreads: Building Service & Industrial, Energy
4. Progress of Medium-term Management Plan E-Plan 2025 Initiatives to Expand ROIC Spreads Building Service & Industrial Energy ◼ Signed an Agreement to Receive Pump Business ◼ Optimization of S&S Bases for Machine Tools In July 2023, EBARA Group company EBARA Pumps Europe S.p.A. Maximize revenue by
Slide 24: Initiatives to Expand ROIC Spreads: Precision Machinery
4. Progress of Medium-term Management Plan E-Plan 2025 Initiatives to Expand ROIC Spreads Precision Machinery ◼ New Construction of CMP Production Plant ◼ New Construction of Development Plant Construction of a new production plant (K3) has begun at Kumamoto Construction of a new development buildin
Slide 25: 5. Appendix
1. FY23 1-2Q Summary of Results 2. FY23 1-2Q Results by Segment 3. FY23 Forecast 4. Progress of Medium-term Management Plan E-Plan 2025 5. Appendix 25 Copyright(c) Ebara Corporation, All rights reserved
Slide 26: Orders
5. Appendix Orders Former Segments（〜FY22） New Segments FY22 FY22 FY23 (billions of yen) (billions of yen) 1-4Q Plan 1-4Q Plan 1Q 1-2Q 1-3Q 1-4Q 1Q 1-2Q 1-3Q 1-4Q 1Q 1-2Q Announced date(m/d/y) Announced date(m/d/y) May/15/23 Aug/14/23 Total 177.0 399.4 594.5 815.2 Total 177.0 399.4 594.5 815.2 197.9
Slide 27: Revenue
5. Appendix Revenue Former Segments（〜FY22） New Segments FY22 FY22 FY23 (billions of yen) (billions of yen) 1-4Q Plan 1-4Q Plan 1Q 1-2Q 1-3Q 1-4Q 1Q 1-2Q 1-3Q 1-4Q 1Q 1-2Q Announced date(m/d/y) Announced date(m/d/y) May/15/23 Aug/14/23 Total 152.8 312.4 480.0 680.8 Total 152.8 312.4 480.0 680.8 184.0
Slide 28: Operating Profit
5. Appendix Operating Profit Former Segments（〜FY22） New Segments FY22 FY22 FY23 (billions of yen) (billions of yen) 1-4Q Plan 1-4Q Plan 1Q 1-2Q 1-3Q 1-4Q 1Q 1-2Q 1-3Q 1-4Q 1Q 1-2Q Announced date(m/d/y) Announced date(m/d/y) May/15/23 Aug/14/23 Total 14.1 27.1 42.6 70.5 Total 14.1 27.1 42.6 70.5 15.2
Slide 29: Backlog of Orders
5. Appendix Backlog of Orders Former Segments（〜FY22） New Segments FY22 FY22 FY23 (billions of yen) (billions of yen) 1-4Q Plan 1-4Q Plan 1Q 1-2Q 1-3Q 1-4Q 1Q 1-2Q 1-3Q 1-4Q 1Q 1-2Q Announced date(m/d/y) Announced date(m/d/y) May/15/23 Aug/14/23 Total 689.5 774.9 813.2 818.1 Total 689.5 774.9 813.2 8
Slide 30: Revenue by Region
5. Appendix Revenue by Region Former Segments（〜FY22） New Segments (billions of yen) FY22 FY23 (billions of yen) FY23 1Q 1-2Q 1-3Q 1-4Q 1Q 1-2Q 1Q 1-2Q FMS Business 87.6 179.2 270.2 383.3 109.4 215.2 Building Service & Industrial 53.0 106.5 Japan 38.5 67.4 93.2 132.2 44.7 76.6 Japan 23.6 45.2 Asia (e
Slide 31: Service & Support (S&S) Revenue
5. Appendix Service & Support (S&S) Revenue Former Segments（〜FY22） New Segments (billions of yen) FY22 FY23 (billions of yen) FY23 1Q 1-2Q 1-3Q 1-4Q 1Q 1-2Q 1Q 1-2Q S&S Revenue 33.7 64.0 91.8 136.4 43.9 83.4 S&S Revenue 10.8 21.7 FMS Business Building Service & Industrial S&S Ratio 39% 36% 34% 36% 4
Slide 32: Balance Sheet
5. Appendix Balance Sheet (billions of yen) FY22 2Q FY22 4Q FY23 2Q Change Change a b c c-a c-b Total Assets 774.9 828.0 852.7 +77.7 +24.6 Current Assets 538.4 580.6 594.1 +55.6 +13.4 Cash and cash equivalents 143.5 116.1 143.6 +0.0 +27.5 Trade receivables 212.4 253.0 228.6 +16.2 -24.3 Inventories 1
Slide 33: Cash Flows
5. Appendix Cash Flows (billions of yen) 1-2Q 1-4Q FY22 FY23 Change FY22 FY23 Plan FY23 Plan YoY Change Change Announced date(m/d/y) May/15/23 Aug/14/23 a b b-a c d e e-c e-d CF from 28.4 52.1 23.6 37.0 50.0 55.0 +17.9 +5.0 operating activities CF from -14.0 -15.9 -1.9 -38.3 -57.0 -47.0 -8.6 +10.0 i
Slide 34: CAPEX, Depreciation and Amortization, R&D Expenses
5. Appendix CAPEX, Depreciation and Amortization, R&D Expenses (billions of yen) 1-2Q 1-4Q (billions of yen) 1-2Q 1-4Q FY22 FY22 FY23 Change FY23 Plan FY23 Plan Change Change Announced date(m/d/y) Announced date(m/d/y) May/15/23 Aug/14/23 a b c c-a d e e-b e-d CAPEX 12.2 27.5 CAPEX 16.0 +3.7 56.0 46
Slide 35: ESG Topics
5. Appendix ESG Topics Integrated Report 2023* Information Disclosure Based on TCFD Recommendations* ⚫ Management strategies of the new medium-term management plan E-Plan 2025 New scenario analysis and financial impact disclosure of ⚫ Disclosure of non-financial KPIs for the E-Plan 2025 climate chan
Slide 36: Change in Business Segments
5. Appendix Change in Business Segments ■ Effective January 1, 2023, we have reorganized our business segments from conventional product-based segments to segments based around target markets. (Reference) Former Segments New Segments Target Markets Main Products & Services Building Service & Buildin
Slide 37: Disclaimer
Disclaimer This release contains forward-looking statements which involve certain risks and uncertainties that could cause actual results to differ materially from those projected. Readers are cautioned not to place undue reliance on these forward-looking statements which are valid only as of the da