MEDIUM- TO LONG-TERM CORPORATE VALUE CREATION
E-Vision 2030 & E-Plan 2025
Positioning of Long-Term Vision E-Vision 2030 and Medium-Term Management Plan E-Plan 2025
Long-Term Vision for 2030: E-Vision 2030
Vision for 2030
Excellent Global Company
In 2020, the EBARA Group formulated a 10-yearlong-term vision and the path towards that goal, E-Vision 2030, as its
greater corporate value and recognition as an excellent global company.
Enhance EBARA's corporate value through the improvement of social, environmental, and economic value
value creation story. Under the slogan of "Technology. Passion. Support Our Globe," we aim to become an excellent global company. Through our business, we will contribute to the resolution of social issues such as the SDGs while simultaneously increasing the social, environmental, and economic value we generate. We believe this will earn
E-Vision 2030 sets out five material issues (EBARA's materiality) for the Group to address by 2030. By endeavoring to solve these problems through EBARA's business activities, we aim to achieve results that lead to improvements in social, environmental, and economic value.
Social / Environmental Value
Solve social issues
through our business
• Reduce GHG emissions by an amount |
equivalent to approximately 100 million |
tons of CO2 |
Economic Value
Sustainable Groupwide growth | Indicator of Corporate Value | |
and efficient | management | |
• ROIC | 10% or more | ¥1 trillion |
• ROE | 15% or more*2 |
EBARA's Material Issue Identification Process and Long-Term Vision Connectivity
• Deliver water to 600 million people |
• Contribute to development of ICAC5*1: |
Challenge 14Å |
• Revenue Around ¥1 trillion |
in market capitalization
*1. IoT, Cloud, AI, Car, 5G
*2. We decided to aim for ROE of 15% or more because the shareholders' equity ratio will become even more important to achieve the financial targets in our vision for 2030.
Positioning of the E-Plan 2025 Medium-Term Management Plan
Background | Population growth | Natural disasters | Food crisis and |
water resource depletion | |||
Climate change and global warming | Infectious | Geopolitical | Ocean pollution |
disease risks | risks | ||
Five Material Issues (Materiality)
We formulated the new medium-term management plan, E-Plan 2025, based on backcasting from our long-term vision, E-Vision 2030, as well as reviewing issues remaining from the previous medium-term management plan, E-Plan 2022, to determine the direction the Group should take. E-Plan 2025 covers the three-year period from 2023 to 2025, and is based on the theme of "creating value from
the customers' perspective" to further strengthen competitiveness in each business.
In addition, while striving to exceed the high levels of
efficiency and profitability achieved in E-Plan 2022, we will achieve topline growth centered on the building and industrial equipment market as well as the semiconductor manufacturing market.
1. Contribute to the | 2. Elevate standards | |
creation of | of living and support | |
a sustainable society | abundant lifestyles | |
We will utilize our technologies to | for all | |
We will utilize our technologies to pas- | ||
passionately | support the creation of a | sionately support economic develop- |
sustainable, environmentally friendly | ment that enables the world to end | |
world with ample food and water, and | poverty and realize ever-evolving and | |
safe and reliable social infrastructure. | abundant lifestyles. | |
For people and society | For industry |
3. Conduct comprehensive environmental management
We will promote the reduction of CO2 emissions from our business operations and maximize our use of renewable energy to move toward
a carbon-neutral world.
For our business activities
and supply chain
4. Promote working | 5. Enhance | |
environments | corporate | |
that encourage | governance | |
challenge | ||
We will promote a Group culture of | We will lay out a vision for and pursue | |
competition and challenge, and pro- | growth through offensive and defen- | |
vide diverse employees with meaning- | sive governance | that supports |
ful work and comfortable working | high-level management capabilities. | |
environments. | ||
For our employees | For sustainable | |
management | ||
E-Plan 2019 | E-Plan 2022 | E-Plan 2025 | E-Vision 2030 | ||||||||
"Technology. Passion. Support Our Globe." | |||||||||||
Unlimited challenge | Reconstruct the | Business creation: | |||||||||
toward growth | foundations of growth | Creating value from | Solve social issues through our business | ||||||||
the customer's | • Reduce GHG emissions by an amount | ||||||||||
perspective | equivalent to approximately 100 million | ||||||||||
tons of CO2 | |||||||||||
• Deliver water to 600 million people | |||||||||||
Accelerating | market-in | ||||||||||
Backcasting | • Contribute to development of ICAC5: | ||||||||||
activities | Challenge 14Å | ||||||||||
Economic Value
Issue | ||||||||||||
resolution | Reduced GHG | Safe and reliable living | Smarter living | |||||||||
emissions | ||||||||||||
ROIC | 10% or higher | |||||||||||||||||||
8.0% | 11.2% | ROE | 15% or higher | ROIC | 10% or more | |||||||||||||||
ROIC | ROIC | Operating Profit Ratio | 10 % or higher | ROE | 15 % or more | |||||||||||||||
Operating | Operating | Revenue CAGR in Building | ||||||||||||||||||
Profit Ratio | 9.0% | Profit Ratio | 10.4% | Service & Industrial | 6 % or higher | Revenue | 1 trillion yen scale | |||||||||||||
Revenue CAGR in | 15% or higher | |||||||||||||||||||
Precision Machinery | Target consolidated revenue | |||||||||||||||||||
Market capitalization: | Market capitalization: | CAGR of 7% or higher | ||||||||||||||||||
¥316.3 billion | ¥434.6 billion | 2025/12 target | ||||||||||||||||||
2019/12 results | 2022/12 results | Indicator of Corporate Value | ||||||||||||||||||
1 trillion yen market capitalization |
- ROIC: (Until FY22) Profit attributable to owners of parent ÷ [Interest-bearing debt (average between beginning and end of period) + Equity attributable to owners of parent (average between beginning and end of period)] (from FY23) NOPLAT (Net Operating Profit Less Adjusted Taxes) ÷ invested capital [Interest-bearing debt (average amount of the beginning and end of fiscal year) + Equity attributable to owners of parent (average amount of the beginning and end of fiscal year)]
9 EBARA Group Integrated Report 2023 | EBARA Group Integrated Report 2023 10 |
MEDIUM- TO LONG-TERM CORPORATE VALUE CREATION
Message from the President
Masao Asami
We want to deliver happiness with technology to passionately support the world.
Director, President and
Representative Executive Officer
CEO & COO
Reflecting on the Previous Medium-Term
Management Plan
I was appointed as president in March 2019. Profitability at that time was low, and the quantitative targets of three consecutive medium-term management plans were not achieved. We created another medium-term management plan amidst these circumstances, but the COVID-19 pandemic began along with the plan's announcement, and the Japanese government soon declared a state of emergency that April. Even though the COVID-19 pandemic brought tremendous turbulence, we were able to continue to provide our essential business for both society and industry. This experience made me realize anew how stable our business is and that if we continue providing our products and services properly, society will continue to rely on us.
In the three years of the plan, we were able to make three large achievements. The first was strengthened profitability. With improved profitability, we were able to achieve our targets for operating profit ratio and ROIC.
The second achievement was taking action for growth. Two of EBARA's businesses, the Standard Pumps Business, and the Precision Machinery
Business, were positioned as growth areas. For the Standard Pumps Business, we had a goal to increase the number of bases by ten. We were able to add eight bases, including through M&A such as that of Hayward Gordon and Vansan.
In the Precision Machinery Business, which faced sharply rising demand amidst the semiconductor shortage, it was challenging to meet customers' desired delivery dates. Still, because of our efforts, record highs were reached in orders, revenue, and operating profit in 2021 and 2022.
The third achievement was the strengthening of our management foundation. We have been making various efforts throughout the Company. One of those efforts was Companywide quality assurance measures to halve the costs arising from quality problems. I also wanted people to change their mind- sets, so rather than a ten or twenty percent reduction, we set the formidable target of a 50% reduction. As a result, there were some things we achieved and some things we didn't, but I believe that we were able to effectively communicate the "cost of quality," a management concept to ensure high-quality standards, throughout the entire Company.
11 EBARA Group Integrated Report 2023 | EBARA Group Integrated Report 2023 12 |
MEDIUM- TO LONG-TERM CORPORATE VALUE CREATION
Message from the President
We established the Global Procurement and SCM Strategy Department in 2020, and we have been making efforts to optimize procurement across the entire Group. Three years of consecutive collaboration have lowered the walls between the businesses, and I feel a growing sense of unity. This initiative proved successful during the global parts shortage caused by the COVID-19 pandemic. By establishing a procurement point of contact, we were able to flexibly exchange parts regardless of business division or region and continued supplying products to our customers.
We have also established the ExValuE Project for cost planning. The capital letter E at the beginning and end of the project name represents EBARA's desire to offer the ultimate value to customers throughout the product life cycle. Value engineering typically aims to reduce the costs of what we currently have, but instead, EBARA will switch to a more balanced approach and invest its development resources into functionality that adds value in order to increase competitiveness, rather than using such resources on functions that would just be nice to have. All products starting development in 2024 and beyond will be developed based on this cost planning philosophy.
Focus of the New E-Plan 2025 Medium-Term
Management Plan
Market-In Perspective and New Structures
I think we are about 30% of the way to achieving E-Vision 2030, our long-term vision. The three accomplishments I mentioned were positive outcomes of the previous
medium -term plan, but there is still room for improvement toward 2030.
111 years ago, the EBARA Group started with pumps, and we have been improving on and expanding that business ever since. However, as the business grew, we started focusing on selling products. Why was this originally
needed? What was the starting point? When I asked myself these questions, the answer was that because the market and the times demanded it. To find the needs of today, we must adjust our structure to fit the markets we serve, rather than following a product-centered structure. This is the "market-in" perspective, and the primary focus of the new medium-term management plan, E-Plan 2025.
For example, our Compressors & Turbines and Custom Pumps Businesses were serving the same oil and gas mar- ket, but operating separately. Since the customers for these products are the same, we are now working to integrate the businesses and production systems and optimize our new in-house company, the Energy Company, to better serve the needs of the oil and gas market. This optimization will allow us to build a robust business with strong sales, production, and procurement.
Additionally, we consider this period an important time to consider business opportunities we can contribute to in the transition from fossil fuel energy sources to sustainable sources. This transition will require new energy alternatives, and EBARA's pumps, compressors and turbines can be used in a variety of fields, including carbon capture, usage and storage (CCUS) as well as ammonia and hydrogen production, transport, and usage. We will contribute to the realization of a hydrogen society by supporting all stages of hydrogen production, transport, and usage.
Business Creation and My Thoughts Since Becoming President
The theme of E-Plan 2025 is "Creating value from the customer's perspective leads to business creation." Entrepreneurs are always thinking about how to solve
a problem, and that's exactly what we're trying to do with our market-oriented business structure. Rather than thinking from the perspective of how to create or sell something, we will go the extra mile to solve customers' problems, even when the solution is ultimately different from how the customer describes it.
Even if an entrepreneur or a start-up has an idea to solve a social issue, they might not be very good at realizing their idea at scale. On the other hand, corporations already doing business like EBARA are better at ensuring profitability and delivering products to customers at a certain scale. EBARA is working to solve social issues through its business by investing in the Real Tech Global Fund, which supports start-ups in Southeast Asia, and if we have affinity with
a company, I'd like to try collaborating on something with them. Entrepreneurs make it easier for us to connect our business to customer needs. It doesn't matter if they are from inside or outside the Company. To cultivate entrepreneurs from inside EBARA, we have dispatched EBARA personnel to the Fund. These personnel get close to customers with their entrepreneurial knowledge, and then bring their ideas back to EBARA. The Company has the requisite resources, such as technology development and production systems for new businesses. If we don't have the resources we need, we can simply collaborate with an external entity, and thus create a new business. We will create the
Companywide pathways to create such new businesses and transform EBARA.
Since I have become president, I have tried to impress upon employees two words: sensitivity and imagination. When we talk with our customers, if we aren't sensitive to what they are thinking in that moment or fail to understand their background, it won't be possible to imagine how the customer will feel when I explain something, or what kind of action the talk will lead to. The main idea is to get close to
the customer, understand their perspectives, and imagine how they will feel. We will obviously be offering added value for our customers if we can solve their problems involving disadvantages, inconvenience, and dissatisfaction, and then they will naturally want to buy what we are selling. Our starting point needs to be getting close to our customers and what they really want. This is the foundation of new business. This philosophy should be applied to everyday work and assignments, not just limited to new things. Instead of just doing what they're told, I want our employees to work while imagining how the person on the receiving end of their work will think.
Furthermore, we also need problem awareness and strong thinking. In our everyday lives, I believe it's important to be aware of the problems ahead and have your own unique intentions, such as wanting to make society a better place, or wanting to improve how your work is done. For example, even if you only see one news article, if you are aware of the problem, you can use it as a reference, try something out, and connect to the next step. Being driven to want to make something better, solve a problem, or make someone happy is very important. I want our employees to not only do what they are told, but also to be proud knowing that what they are doing is meaningful to society.
Data-Driven Management and Task Diversity
To realize business and product strategy, data on the
customer perspective is essential. Without such data, it is impossible to find solutions to overcome difficult situations and solve our customers' problems. The business side needs to be able to comprehend and use data to formulate strategies. We established the Data Strategy Team in July 2022 to provide dedicated support to do just that. The team receives and analyzes problems and goals from the business side and derives solutions. We will make it possible to make data-driven decisions in human resources with tools such as people analytics, in sales when looking at
customers and markets, and in technology.
In January 2022, the Diversity Project was formed by a group of volunteers and established as a dedicated
structure in July 2022 to promote task diversity, meaning the invisible diversity of skills, knowledge, and experience. It is crucial to know what kind of task will suit a person, and whether we can expect high performance in that task. We need objective data in order to make that determination. We will strive to put the right person in the right role based on their experience, behavior patterns, thinking patterns, and the abilities they have acquired.
Our people will support the realization of what the Group is striving for and our vision as set forth in E-Vision 2030. We will promote data-driven diversity to ensure the right
employees are in the right roles, receive the right training, and are able to fulfill their responsibilities.
Visualization and Communication of the EBARA Group's Approach and Strengths
In 2022, EBARA received multiple awards including the Minister of Economy, Trade and Industry Award at the Corporate Governance of the Year 2022 Awards, Best IR Award, and Outstanding Leadership Awards in Corporate Communications. In the early 2000s, EBARA faced some challenges with corporate governance in terms of management and problems related to compliance. We received these awards in recognition of our efforts over the past twenty years to strengthen governance, and we plan to
continue to serve as a model for other Companies with Three Committees in the future. I am truly thankful for the work of my predecessors and the Independent Directors who promoted governance reform, as well as the efforts of the executive side who worked to improve profitability. It is important for those outside the Company to understand our approach and strengths. For example, after we published our Strategic Table of Technological Capabilities last year, our strengths in technology were more widely known and we started hearing that others would be interested in discussing their problems with us. Even internally, when faced with a problem, we sometimes end up unsuccessfully searching for a solution in the same business department, so it is essential for our employees to be able to see where other sources of help in the Company are available. I would like to continue to make these
connections visible both inside and outside of EBARA. We have contributed to both society and industry by leveraging our strengths for over 110 years. We will further enhance this DNA and strengthen any weaknesses based on data, so that we may continue contributing to society. I hope that the future world will be comfortable to live in, sustain- able, environmentally friendly, and a place where everyone can smile. We want to deliver happiness with technology to passionately support the world, and we will continue to work to realize this goal.
Masao Asami
Director, President and Representative Executive Officer
CEO & COO
13 EBARA Group Integrated Report 2023 | EBARA Group Integrated Report 2023 14 |
MEDIUM- TO LONG-TERM CORPORATE VALUE CREATION
Message from the CFO
We will maintain high levels of efficiency while making the necessary investments to realize E-Vision 2030
Cash Allocation
The diagram below compares the overview of cash allocation | versus cash out balance, we will actively make both growth |
(cash in versus cash out) during the period of E-Plan 2025 | and infrastructure investments to realize E-Vision 2030 |
(fiscal 2023-2025) with the previous two medium-term | while effectively utilizing debt. |
management plan periods. In light of the expanding cash in
Shugo Hosoda
Executive Officer,
Division Executive,
Corporate Strategic Planning,
Finance and Accounting Division & CFO
We announced our new medium-term management plan, E-Plan 2025, in February 2023. In a financial
context, it will be a three-year period of steady
investment while maintaining high levels of efficiency. We will conduct balanced investment and loan activities to support our continued business expansion and to allocate capital to investing for the future. To achieve this, we will further utilize interest-bearing debt while maintaining financial soundness. We will conduct
appropriate financial activities while aiming for a target return on equity (ROE) of 15%, along with return on invested capital (ROIC) in the new medium-term management plan.
Cash Allocation by Medium-Term Management Plan | Unit: Billions of yen | |||||||
E-Plan 2019 (Results) | E-Plan 2022 (Results) | E-Plan 2025 (Plan) | ||||||
3-year total from FY2017 to FY2019 | 3-year total from FY2020 to FY2022 | 3-year total from FY2023 to FY2025 | ||||||
Foreign exchange | ||||||||
gains: 8.4 | ||||||||
Sale and reduction | ||||||||
of assets: 8.0 | ||||||||
Foreign exchange gains: 0.8 | Debt reduction: 2.7 | Growth investment: | ||||||
Increase in cash on hand, etc.: 1.3 | 180.0-225.0 | |||||||
R&D expenses, | (of which, | |||||||
R&D investment: 65.0) | ||||||||
adjusted CF: 265.0 | ||||||||
Growth and | (Operating CF: 200.0) | ||
infrastructure | |||
investment: | |||
Growth and | 149.2 | ||
R&D expenses, | (Operating CF: 81.3 | Infrastructure | |
infrastructure | R&D expenses: 41.3 | ||
investment: | adjusted CF: | M&A: 25.1) | investment: |
Maximize ROIC to WACC Spread
E-Plan 2025 target: ROIC of 10%
or more
10%
Deepening ROIC Management
We will further deepen ROIC management. We will break down the ROIC tree into specific factors and improve its effectiveness as a tool (see diagram below). The Group's most recent WACC is estimated to be about 5%-6%. We will maximize the ROIC to WACC spread in
Operating CF: | 104.2 | 215.5 | 50.0-80.0 | ||||||||||||||||||
134.9 | (Operating CF: 81.3 | (Operating CF: 174.2) | |||||||||||||||||||
(Operating CF: 105.5) | R&D expenses: 41.3 | Shareholder returns: | |||||||||||||||||||
M&A: 25.1) | Shareholder | ||||||||||||||||||||
Shareholder returns: | 37.7 | 59.4 | returns | ||||||||||||||||||
Sale a | nd reduction of | assets | |||||||||||||||||||
(Dividends: 39.3 | |||||||||||||||||||||
(Dividends: 17.7 | Share buybacks: 20.1) | ||||||||||||||||||||
Sale and reduction | Share buybacks: 20.0) | Debt utilization | Increase in cash on | ||||||||||||||||||
D | ebt reduction: 13 | .9 | Increase in cash on | ||||||||||||||||||
of assets: 23.2 | hand, etc.: 21.2 | hand, etc. | |||||||||||||||||||
Cash in | Cash out | Cash in | Cash out | Cash in | Cash out |
Maximize ROIC to WACC spread in each segment | |||||
7.0-8.0% | |||||
5-6% | |||||
Estimated WACC: | 4.5-5.0% | 4.7-5.2% | |||
5%-6% | 4.5-5.0% | ||||
4.0-4.5% | |||||
Estimated WACC by segment | |||||
0% | |||||
Consolidated | Construction | Energy | Infrastructure Environment Precision | ||
and production | machinery |
each business and strive to achieve the ROIC target of 10% or more by fiscal 2025, and emphasize such spreads in investment capital allocation to realize well-balanced business portfolio management (see left figure).
Shareholder Returns
For the fiscal year ended December 31, 2022, the consolidated dividend payout ratio was 35.2%, while the annual dividend per share was ¥193, an increase of 18% compared to the previous year's ¥163. In the period of E-Plan 2025, which began this fiscal year, we will maintain our policy of paying dividends in line with the performance of each fiscal year, with the goal of a consolidated dividend payout ratio
shareholders in the form of capital gains. EBARA views share repurchases as a way to improve EPS, and its policy is to flexibly implement such investments when necessary, while making due consideration for the equity ratio, cash and deposits on hand, business performance trends, and stock price trends, and comparing these against other investment targets. Relative total shareholder returns (TSR)
ROIC Tree
Process KPIs | ||||
Cost to sales ratio | Procurement cost reductions | |||
Prevention of additional costs | ||||
Action examples
Expand procurement from low-cost
countries
Improve quote accuracy
of at least 35%.
Based on EBARA's dividend policy, we will maintain shareholder returns based on income gains while steadily investing in growth to realize medium- to long-term growth in earnings per share (EPS), as we return profits to
for the past ten years (see below diagram) outperformed the market average as of December 31, 2022. We are striving to expand both capital and income gains, including increasing PER, and will continue aiming to maximize TSR.
Operating profit ratio
ROIC
Invested capital
turnover rate
Effective statutory tax
Reduction of fixed | |||||||
manufacturing costs | |||||||
S&S revenue | Maintenance orders | ||||||
Revenue from new product sales | |||||||
Orders/revenue | Sales growth rate | ||||||
Revenue from new product sales | New technology development | ||||||
Overseas revenue | Revenue from overseas bases | ||||||
Sales, general, and | Sales and administrative fixed costs | ||||||
administrative expense rate | |||||||
Days sales outstanding | Outstanding receivables | ||||||
Days inventory outstanding | Immovable stock | ||||||
Days fixed assets outstanding | Production rate | ||||||
Average effective tax rate | Taxation governance | ||||||
Improve operating ratio of automated plants
Strengthen global customer support capabilities
Propose value-added technologies to
meet customer needs
Expand M&A base products globally
Create and develop new business models
Capture growth markets
Reduce overtime work by improving
operational efficiency
Reduce outstanding receivables
Restructure inventory strategy
Enhance production technologies with
digital transformation and AI
Pay taxes appropriately, utilize tax benefits, and eliminate double taxation
TSR | TSR Flowchart | |
500 | ||
400 | ||
300 | 308.9 | |
274.2 | Total shareholder | |
200 | returns | |
261.8 | (TSR) | |
100 | ||
0 |
EBARA TOPIX dividend included TOPIX Machinery dividend included
* Set at 100 as of December 31, 2012
Capital gains
(rise in stock price)
Income gains
(cumulative
dividend)
PER
increase
Message from management
EPS
growth
Dividends
IR | • Financial information disclosure | ||
activities | • Engage in dialogue with investors | ||
ESG | |||
Disclosure of non-financial | |||
management | information | ||
Growth and | • Capital investments | ||
• R&D | |||
infrastructure | • M&A, etc. | ||
investments | |||
ERP investment, etc. | |||
Comparison | |||
Flexible stance on share | |||
repurchases | |||
Dividend | |||
Dividend payout ratio of 35% | |||
policy | or more |
15 EBARA Group Integrated Report 2023 | EBARA Group Integrated Report 2023 16 |
MEDIUM- TO LONG-TERM CORPORATE VALUE CREATION
Financial and Non-Financial Highlights
The occurrence of the irregular nine-month period ended December 31, 2017, is the result of a change in the settlement date used by EBARA CORPORATION and consolidated subsidiaries. Effective from the fiscal year ended December 31, 2021, the Company has adopted IFRS in place of the previously used Japanese GAAP. The financial figures for the fiscal year ended December 31, 2020 are also presented in accordance with IFRS.
Financial Indicators
ROIC*1 / ROE*2
(%) | 15.0% | ||||||||||
15.0 | |||||||||||
10.0 | 11.2% | ||||||||||
5.0 | |||||||||||
0 | |||||||||||
2017/12 | 2018/12 | 2019/12 | 2020/12 | 2021/12 | 2022/12 | ||||||
ROIC | ROE | ||||||||||
JGAAP | IFRS | |
Operating Prot / Operating Prot to Revenue Ratio
(Billions of yen) | (%) | |||||
80.0 | 70.5 | 12.0 | ||||
60.0 | ||||||
10.4% | 9.0 | |||||
40.0 | 6.0 | |||||
20.0 | 3.0 | |||||
0 | 0 | |||||
2017/12 | 2018/12 | 2019/12 | 2020/12 | 2021/12 | 2022/12 |
Operating prot (left scale) | Operating prot to revenue ratio (right scale) | |
Non-Financial Indicators
Proportion of Female New Graduate Hires*6 / Proportion of Non-Japanese New Graduate Hires*6
(%)
30.0
25.0
20.0 | 17.5% |
15.0 | |
10.0 | 16.5% |
5.0 | |
0 |
2017/12 2018/12 2019/12 2020/12 2021/12 2022/12
Proportion of female new graduate hires(Non-consolidated) Proportion of non-Japanese new graduate hires(Non-consolidated)
Total Recordable Incident Rate*7
4.0 | ||
3.0 | 2.62 | |
2.0 | ||
1.0 | ||
0 |
2017/12 | 2018/12 | 2019/12 | 2020/12 | 2021/12 | 2022/12 |
Capital Expenditures / Depreciation and Amortization / R&D Expenses
(Billions of yen)
40.0 | |||||
30.0 | 27.5 24.0 | ||||
20.0 | |||||
15.2 | |||||
10.0 | |||||
0 | |||||
2017/12 | 2018/12 | 2019/12 | 2020/12 | 2021/12 | 2022/12 |
Capital expenditures | Depreciation and amortization | R&D expenses | ||
Dividends per Share / Consolidated Dividend Payout Ratio*3
(Yen) | (%) | |||||
200 | 193 | 50 | ||||
150 | 35.2% | 40 | ||||
30 | ||||||
100 | ||||||
20 | ||||||
50 | ||||||
10 | ||||||
0 | 0 | |||||
2017/12 | 2018/12 | 2019/12 | 2020/12 | 2021/12 | 2022/12 |
Dividends per share (left scale) | Total return ratio (right scale) | ||
GHG emissions (Scope 1 & 2)*8
(Thousands tons)
50 | ||||
40 | 36 | |||
30 | ||||
20 | ||||
10 | ||||
0 | ||||
2018/12 | 2019/12 | 2020/12 | 2021/12 | 2022/12 |
Water Consumption
(km3) | |||||
1,200 | 1,085 | ||||
1,000 | |||||
800 | |||||
600 | |||||
400 | |||||
200 | |||||
0 | |||||
2017/12 | 2018/12 | 2019/12 | 2020/12 | 2021/12 | 2022/12 |
Equity Attributable to Owners of the Parent / Ratio of Equity | Interest-Bearing Debt / Debt-to-Equity Ratio | ||
Attributable to Owners of Parent (Shareholders' equity*4 | / Equity ratio) | ||
(Billions of yen) | (%) | (Billions of yen) | (Times) |
400.0 | 359.9 | 50 | 150.0 | 0.60 | ||||||||||
40 | 119.3 | |||||||||||||
300.0 | 43.5% | 100.0 | 0.40 | |||||||||||
30 | ||||||||||||||
200.0 | ||||||||||||||
20 | 0.33 | |||||||||||||
100.0 | 50.0 | 0.20 | ||||||||||||
10 | ||||||||||||||
0 | 0 | 0 | 0 | |||||||||||
2017/12 | 2018/12 | 2019/12 | 2020/12 | 2021/12 | 2022/12 | 2017/12 | 2018/12 | 2019/12 | 2020/12 | 2021/12 | 2022/12 |
Equity attributable to owners of the parent (Shareholders' equity) (left scale) | Interest-bearing debt (left scale) | Debt-to-equity ratio (right scale) | ||
Ratio of equity attributable to owners of parent (Equity ratio) (right scale) |
CDP Scores | Global Engagement Survey Score | ||||||||||||||||||||||||
A | (%) | ||||||||||||||||||||||||
100 | 83% | 86% | |||||||||||||||||||||||
B | B | 80 | 79% | ||||||||||||||||||||||
60 | |||||||||||||||||||||||||
C | |||||||||||||||||||||||||
40 | |||||||||||||||||||||||||
D | C | ||||||||||||||||||||||||
20 | |||||||||||||||||||||||||
0 | |||||||||||||||||||||||||
2017/12 | 2018/12 | 2019/12 | 2020/12 | 2021/12 | 2022/12 | 2019/12 | 2020/12 | 2021/12 | 2022/12 | 2025 | 2030 | ||||||||||||||
Climate Change | Water Security | Target | Target | ||||||||||||||||||||||
Cash Flows
(Millions of yen)
75,000 | |||||
50,000 | 37,070 | ||||
25,000 | |||||
0 | -1,254 | ||||
-25,000 | -23,749 | ||||
-50,000 | |||||
-38,324 | |||||
2017/12 | 2018/12 | 2019/12 | 2020/12 | 2021/12 | 2022/12 |
Cash ows from operating activities | Cash ows from investing activities | |||
Cash ows from nancing activities | Free cash ow |
Total Shareholder Returns (TSR)*5
(%)
200.0 | ||||||||
150.0 | 123.1% | |||||||
100.0 | 117.2% | |||||||
50.0 | ||||||||
0 | ||||||||
2017/12 | 2018/12 | 2019/12 | 2020/12 | 2021/12 | 2022/12 | |||
EBARA | TOPIX, including dividends | |||||||
Diversity in Global Key Positions
(%) | 50% | |||||||
50 | ||||||||
40 | ||||||||
30 | 23% | 30% | ||||||
20 | ||||||||
10 | 7% | 8% | 10% | |||||
0 | ||||||||
2019/12 | 2020/12 | 2021/12 | 2022/12 | 2025 | 2030 | |||
Target | Target |
Proportion of locally hired staff in key positions outside of Japan Proportion of locally hired female staff in key positions outside of Japan
Proportion of Women in Management Positions*6 / Proportion of Employees with Special Needs
(%) | 8.00% | (%) | ||||
8.00 | 3.00 | |||||
6.00 | 6.49% | 2.60% | 2.00 | |||
4.00 | 2.37% | |||||
2.00 | 1.00 | |||||
0 | 0 | |||||
2019/12 | 2020/12 | 2021/12 | 2022/12 | 2025 | ||
Target |
Proportion of women in management positions (non-consolidated) (left axis)
Proportion of employees with special needs (non-consolidated & Applicable Group companies) (right axis)
*1. ROIC: IFRS: | Profit | attributable to | owners | of | parent / [Interest-bearing debt (Average between beginning and end of period) + Equity attributable to owners | |
of parent (Average between beginning and end of period)] | ||||||
JGAAP: Profit attributable to | owners | of | parent / [Interest-bearing debt (Average between beginning and end of period) + Shareholders' equity (Average | |||
*2. ROE: IFRS: | between beginning and end of period)] | Shareholders' equity (Average between beginning and end of period) | ||||
Profit | attributable to | owners | of | parent / | ||
JGAAP: | Profit | attributable to | owners | of | parent / | Equity attributable to owners of parent (Average between beginning and end of period) |
*3. When the annual dividend of ¥36 for the fiscal year ended March 31, 2017 (including an interim dividend of ¥6), is converted after the consolidation of shares, it is equivalent to ¥60 per share, consisting of an interim dividend of ¥30 and a year-end dividend of ¥30. Accordingly, the total return ratio is calculated based on an annual dividend of ¥60 per share.
17 EBARA Group Integrated Report 2023
*4. Shareholders' equity: Total net assets - (Subscription rights to shares + Non-controlling interests)
*5. Set at 100 as of December 31, 2017.
*6. EBARA CORPORATION (non-consolidated)
*7. EBARA Corporation and Domestic Group
*8. EBARA CORPORATION. Values calculated in line with the GHG Protocol.
EBARA Group Integrated Report 2023 18
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Ebara Corporation published this content on 10 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 October 2023 17:44:25 UTC.