Slide 1: Results Presentation for FY2023 Ended December 31, 2023
Results Presentation for FY2023 Ended December 31, 2023 EBARA (6361) February 14, 2024
Slide 2: Table of Contents
Table of Contents Points of Results P3 4. Progress of Medium-term P20 1. FY23 Summary of Results Management Plan E-Plan 2025 ・Consolidated P5 5. Appendix ・Segment P6 ・Orders P31 ・Breakdown of Changes in Operating Profit P7 ・Revenue P32 ・Revenue by Region P8 ・Operating Profit P33 2. FY23 Results by S
Slide 3: Points of Results
Points of Results FY23 Results FY24 Forecast YoY* Change Vs. Plan* YoY* ¥5.3 B. ¥30.5 B. ¥13.4 B. Orders ¥820.5 B. +0.7% → +3.9% → Orders ¥834.0 B. +1.6% → ¥78.4 B. ¥12.3 B. ¥67.6 B. Revenue ¥759.3 B. +11.5% ↗ +1.7% → Revenue ¥827.0 B. +8.9% ↗ ¥15.4 B. ¥15.0 B. ¥0.9 B. Operating Profit ¥86.0 B. +21.
Slide 4: FY23 Summary of Results
1. FY23 1-4Q Summary of Results 2. FY23 1-4Q Results by Segment 3. FY24 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 1-4Q Summary of Results Consolidated (billions of yen) FY23 Plan FY22 1-4Q FY23 1-4Q Change Change % Change Change % Announced date (m/d/y) 23/11/14 a b b-a (b-a)/a c b-c (b-c)/c Orders 815.2 820.5 +5.3 +0.7% 790.0 +30.5 +3.9% Revenue 680.8 759.3 +78.4 +11.5% 747.0 +12.3 +1.7% Operating Prof
Slide 6: Segment
1. FY23 1-4Q Summary of Results Segment (billions of yen) FY23 Plan FY22 1-4Q FY23 1-4Q Change Change % Change Change % Announced date (m/d/y) Nov/14/23 a b b-a (b-a)/a c b-c (b-c)/c Orders 815.2 820.5 +5.3 +0.7% 790.0 +30.5 +3.9% Revenue 680.8 759.3 +78.4 +11.5% 747.0 +12.3 +1.7% Total Operating Pr
Slide 7: Breakdown of Changes in Operating Profit
1. FY23 1-4Q Summary of Results Breakdown of Changes in Operating Profit Increased because of higher revenue and improved profitability despite increase in fixed costs Driven by Building Service & Industrial, Energy, and Precision Machinery (+) (billions of yen) Improved profitability in each segmen
Slide 8: Revenue by Region
1. FY23 1-4Q Summary of Results Revenue by Region 271.3 Japan 253.8 +6.9% 488.0 +14.3% Overseas 427.0 Middle Others East 4% 131.8 China 110.3 +19.6% 5% Japan Europe 36% Asia (excl. 139.7 8% 137.1 +1.8% China) North North 80.9 FY23 1-4Q 57.6 +40.3% America Revenue Composition America 11% Domestic 36%
Slide 9: FY23 Results by Segment
1. FY23 1-4Q Summary of Results 2. FY23 1-4Q Results by Segment 3. FY24 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 1-4Q Results by Segment Building Service & Industrial (Billions of yen) Results Key Changes from FY22 Orders Revenue Market ◼ Capital investment in Japan remains strong; however, GDP growth 222.1 Environment continues at a slow pace in Europe, the Middle East, and China 221.3 ◼ China’s build
Slide 11: Energy
2. FY23 1-4Q Results by Segment Energy (Billions of yen) Results Key Changes from FY22 Orders Revenue Market ◼ Robust LNG market in North America 222.7 Environment ◼ Petrochemical projects in North America, Asia, and the Middle FY22 FY23 173.8 East were active in the downstream oil and gas market 16
Slide 12: Infrastructure
2. FY23 1-4Q Results by Segment Infrastructure (Billions of yen) Results Key Changes from FY22 Orders Revenue Market ◼ Domestic public pump market remains steady due to Environment the investment in advanced disaster prevention and 53.5 56.6 50.1 FY22 FY23 43.2 46.2 aging measures in line with the "
Slide 13: Environmental Solutions
2. FY23 1-4Q Results by Segment Environmental Solutions (Billions of yen) Results Key Changes from FY22 Orders Revenue Market ◼ Demand for new construction of waste treatment facilities for Environment public use remains stable as in past years FY22 FY23 105.8 100.8 *EPC: Facility engineering, procu
Slide 14: Precision Machinery
2. FY23 1-4Q Results by Segment Precision Machinery (Billions of yen) Results Key Changes from FY22 Orders Revenue Market ◼ Demand for semiconductors has bottomed out and Environment customer inventories have been normalizing, however FY22 FY23 301.5 246.9 full-scale investment to increase productio
Slide 15: FY24 Forecast
1. FY23 1-4Q Summary of Results 2. FY23 1-4Q Results by Segment 3. FY24 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. FY24 Forecast Consolidated 1-4Q 1-2Q (billions of yen) FY23 Results FY24 Plan Change Change % FY23 Results FY24 Plan Change Change % Announced date (m/d/y) Feb/14/24 Feb/14/24 a b b-a (b-a)/a c d d-c (d-c)/c Orders 820.5 834.0 +13.4 +1.6% 367.6 384.5 +16.8 +4.6% Revenue 759.3 827.0 +67.6 +8.9% 36
Slide 17: Segment
3. FY24 Forecast Segment 1-4Q 1-2Q (billions of yen) FY23 実績 FY24 Plan Change Change % FY23 実績 FY24 Plan Change Change % Announced date (m/d/y) Feb/14/24 Feb/14/24 a b b-a (b-a)/a c d d-c (d-c)/c Orders 820.5 834.0 +13.4 +1.6% 367.6 384.5 +16.8 +4.6% Revenue 759.3 827.0 +67.6 +8.9% 363.8 402.5 +38.6
Slide 18: Breakdown of Changes in Operating Profit
3. FY24 Forecast Breakdown of Changes in Operating Profit We expect profit levels higher than FY23, despite increased investments in growth and infrastructure 1. Increased revenue (+) • Capital investment in semiconductor market has bottomed out Decreased S&S revenue (-) • Market expected to gradual
Slide 19: Shareholder Returns
3. FY24 Forecast Shareholder Returns ◼ FY23, annual dividend per share scheduled to be ¥229 (+¥36 compared to FY22） ◼ FY24, annual dividend per share planned to be ¥230 (+¥1 compared to FY23) Dividends per share (￥) Consolidated payout ratio (%) 35.2 35.0 35.2 35.0 33.3 24.8 229 230 193 163 90 60 60
Slide 20: Progress of Medium-term Management Plan E-Plan 2025
1. FY23 1-4Q Summary of Results 2. FY23 1-4Q Results by Segment 3. FY24 Forecast 4. Progress of Medium-term Management Plan E-Plan 2025 5. Appendix 20 Copyright(c) Ebara Corporation, All rights reserved
Slide 21: Positioning of E-Plan 2025
4. Progress of Medium-term Management Plan E-Plan 2025 Positioning of E-Plan 2025 Achieve top-line growth primarily in Building Service & Industrial and Precision Machinery Businesses, while maintaining the high level of efficiency and profitability achieved in E-Plan 2022 E-Plan 2022 E-Plan 2025 E-
Slide 22: E-Plan 2025 Financial Targets
4. Progress of Medium-term Management Plan E-Plan 2025 E-Plan 2025 Financial Targets ◼ In FY23, we achieved greater results than FY22 for each indicator and improved each segment’s operating profit ratio more than planned, despite also pursuing aggressive investments in product and system developmen
Slide 23: E-Plan 2025 Financial Targets (Growth)
4. Progress of Medium-term Management Plan E-Plan 2025 E-Plan 2025 Financial Targets (Growth) Revenue (billions of yen) Consolidated Building Service & Industrial Precision Machinery 11,000 8,000 0.3 8,000 0.3 0.3 827.0 759.3 680.8 265.0 246.9 222.1 230.0 222.2 193.5 0 0 0 00 0 FY22 FY23 FY24 FY25 F
Slide 24: E-Plan 2025 Cash Allocation
4. Progress of Medium-term Management Plan E-Plan 2025 E-Plan 2025 Cash Allocation ◼ Steady progress in first year of E-Plan 2025 (3-year plan) ◼ Continue aggressive investment in FY24, especially in growth ◼ In FY24, we will especially accelerate investment in Precision Machinery Segment, looking t
Slide 25: E-Plan 2025 Progress & Achievements
4. Progress of Medium-term Management Plan E-Plan 2025 E-Plan 2025 Progress & Achievements ◼ In line with E-Plan 2025’s Basic Policy, we have reorganized our business into segments based on target market and introduced the CxO system, we continue to pursue advanced and efficient management infrastru
Slide 26: E-Plan 2025 Progress & Achievements
4. Progress of Medium-term Management Plan E-Plan 2025 E-Plan 2025 Progress & Achievements Advanced and Efficient Management Advance ESG-Focused Management Infrastructure ◼ Expanded Group Governance through introduction of ◼ Considered GHG*1 emission reduction measures, including CxO system avoided
Slide 27: E-Plan 2025 Progress by Segment
4. Progress of Medium-term Management Plan E-Plan 2025 E-Plan 2025 Progress by Segment ◼ Various investments/initiatives were conducted in FY23. Profit growth in Building Service & Industrial and Precision Machinery progressed mostly according to plan. In FY24, OP will decrease in Energy, Infrastruc
Slide 28: Appendix: E-Plan 2025 Market Environment by Segment
4. Progress of Medium-term Management Plan E-Plan 2025 Appendix: E-Plan 2025 Market Environment by Segment EBARA’s Market Prospects Segment Target Markets Trends by Market and Region FY23-25 (3-year period) • Increase in housing complexes and buildings due to population concentration in cities Build
Slide 29: Appendix: E-Plan 2025 Non-Financial Targets (Human Capital)
4. Progress of Medium-term Management Plan E-Plan 2025 Appendix: E-Plan 2025 Non-Financial Targets (Human Capital) Percentage of non-Japanese Percentage of female Global Engagement Survey score (consolidated) employees in GKP* employees in GKP* (consolidated) (consolidated) 2025 Target (％) (％) 83 20
Slide 30: Appendix
1. FY23 1-4Q Summary of Results 2. FY23 1-4Q Results by Segment 3. FY24 Forecast 4. Progress of Medium-term Management Plan E-Plan 2025 5. Appendix 30 Copyright(c) Ebara Corporation, All rights reserved
Slide 31: Orders
5. Appendix Orders FY22 FY23 FY24 (billions of yen) 1-2Q Plan 1-4Q Plan 1Q 1-2Q 1-3Q 1-4Q 1Q 1-2Q 1-3Q 1-4Q Announced date (m/d/y) Feb/14/24 Feb/14/24 Total 177.0 399.4 594.5 815.2 197.9 367.6 598.3 820.5 384.5 834.0 Building Service & 47.3 102.6 156.6 204.8 52.2 111.0 169.3 221.3 117.0 230.0 Indust
Slide 32: Revenue
5. Appendix Revenue FY22 FY23 FY24 (billions of yen) 1-2Q Plan 1-4Q Plan 1Q 1-2Q 1-3Q 1-4Q 1Q 1-2Q 1-3Q 1-4Q Announced date (m/d/y) Feb/14/24 Feb/14/24 Total 152.8 312.4 480.0 680.8 184.0 363.8 551.2 759.3 402.5 827.0 Building Service & 41.1 89.5 137.7 193.5 53.0 106.5 161.8 222.1 113.0 230.0 Indust
Slide 33: Operating Profit
5. Appendix Operating Profit FY22 FY23 FY24 (billions of yen) 1-2Q Plan 1-4Q Plan 1Q 1-2Q 1-3Q 1-4Q 1Q 1-2Q 1-3Q 1-4Q Announced date (m/d/y) Feb/14/24 Feb/14/24 Total 14.1 27.1 42.6 70.5 15.2 33.7 56.9 86.0 38.5 87.0 Building Service & 2.0 4.8 7.2 11.4 3.9 6.7 10.4 15.7 6.5 16.5 Industrial Energy 1.
Slide 34: Backlog of Orders
5. Appendix Backlog of Orders FY22 FY23 FY24 (billions of yen) 1-2Q Plan 1-4Q Plan 1Q 1-2Q 1-3Q 1-4Q 1Q 1-2Q 1-3Q 1-4Q Announced date (m/d/y) Feb/14/24 Feb/14/24 Total 689.5 774.9 813.2 818.1 827.2 836.8 892.5 890.7 872.7 897.7 Building Service & 53.6 62.9 72.5 62.7 61.7 74.6 70.1 60.6 64.6 60.6 Ind
Slide 35: Revenue by Region
5. Appendix Revenue by Region Former Segments New Segments (billions of yen) FY22 FY23 (billions of yen) FY23 1Q 1-2Q 1-3Q 1-4Q 1Q 1-2Q 1-3Q 1-4Q 1Q 1-2Q 1-3Q 1-4Q FMS Business 87.6 179.2 270.2 383.3 109.4 215.2 318.6 439.5 Building Service & Industrial 53.0 106.5 161.8 222.1 Japan 38.5 67.4 93.2 13
Slide 36: Service & Support (S&S) Revenue
5. Appendix Service & Support (S&S) Revenue Former Segments New Segments (billions of yen) FY22 FY23 (billions of yen) FY23 1Q 1-2Q 1-3Q 1-4Q 1Q 1-2Q 1-3Q 1-4Q 1Q 1-2Q 1-3Q 1-4Q S&S Revenue 33.7 64.0 91.8 136.4 43.9 83.4 118.6 170.7 S&S Revenue 10.8 21.7 31.5 49.9 Building Service & Industrial FMS B
Slide 37: Balance Sheet
5. Appendix Balance Sheet (billions of yen) FY22 4Q FY23 4Q Change a ｂ ｂ-a Total Assets 828.0 913.9 +85.8 Current Assets 580.6 648.3 +67.6 Cash and cash equivalents 116.1 148.0 +31.9 Trade receivables 253.0 263.2 +10.2 Inventories 181.3 200.6 +19.2 Other Current Assets 30.2 36.3 +6.1 Non-current Ass
Slide 38: Cash Flows
5. Appendix Cash Flows (billions of yen) 1-4Q FY22 FY23 Change FY24 Plan Change Announced date (m/d/y) Feb/14/24 a b b-a c c-b CF from 37.0 70.0 32.9 70.0 -0.0 operating activities CF from -38.3 -35.6 2.6 -73.0 -37.3 investing activities FCF -1.2 34.3 35.6 -3.0 -37.3 CF from -23.7 -4.6 19.0 -8.0 -3.
Slide 39: CAPEX, Depreciation and Amortization, R&D Expenses
5. Appendix CAPEX, Depreciation and Amortization, R&D Expenses (billions of yen) 1-4Q 1-4Q 1-4Q FY22 FY23 Change FY24 Plan Change Announced date (m/d/y) Feb/14/24 a b b-a c c-b CAPEX 27.5 CAPEX 40.6 +13.1 72.0 +31.3 FMS Business 10.9 Building Service & Industrial 9.5 14.0 +4.4 EP Business 2.0 Energy
Slide 40: ESG Topics
5. Appendix ESG Topics 2023 CDP Scores: Maintained B for Climate Change, Raised Water Security E from C to B Environment Received 2023 Minister of Health, Labour and Welfare Award for S Human Resource Development Social 2023/12 News release G Received Grand Prize Company at the “Corporate Governance
Slide 41: 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 & Building
Slide 42: 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