Ebara : Medium- to Long-Term Corporate Value Creation

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)]

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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.

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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

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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

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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.

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