Ebara : Six Months Ended June 30, 2022(Financial Results) PDF(547KB)

CONSOLIDATED FINANCIAL RESULTS

FOR THE SIX MONTHS ENDED JUNE 30, 2022

	〔IFRS〕
	August 12, 2022
Company name:	EBARA CORPORATION
Stock exchange listings:	Tokyo
Code number:	6361
URL:	http://www.ebara.com/en/
Representative:	Masao Asami, President
Contact person:	Shugo Hosoda, Executive Officer, Corporate Strategic Planning,
Finance & Accounting Division
	Tel. [phone]

Scheduled date for submission of quarterly report: Scheduled date for dividend payment:

Preparing supplementary material on financial results: Holding financial results presentation meeting

(for institutional investors and analysts):

August 12, 2022

September 13, 2022

Yes

Yes

(Monetary amounts are rounded down to the nearest million yen)

1. Consolidated Results for the Six Months Ended June 30, 2022

(1) Consolidated Financial Results

(% represents percentage change from a comparable previous period)				Millions of yen
	Revenue	Operating Profit	Profit before Tax	Profit
Six Months Ended	312,418	14.0%	27,183	10.1%	28,177	10.5%	19,258		4.2%
June 30, 2022
Six Months Ended	274,154	11.7%	24,686	93.4%	25,502	128.4%	18,486		135.2%
June 30, 2021
	Profit Attributable to	Total Comprehensive	Basic Earnings per	Basic Earnings per
	Share, Diluted
	Owners of Parent	Income	Share (Yen)
	(Yen)
Six Months Ended	18,065	7.6%	41,739	71.6%		196.35			195.87
June 30, 2022
Six Months Ended	16,789	140.1%	24,316	381.2%		176.30			175.73
June 30, 2021

Note: The Company finalized the provisional accounting treatment for business combinations. Financial results for the six months ended June 30, 2021 reflect the finalization of the provisional accounting treatment.

(2) Consolidated Financial Position

				Millions of yen
			Total Equity	Ratio of Equity
	Total Assets	Total Equity	Attributable to Owners	Attributable to
			of Parent	Owners of Parent
As of June 30, 2022	774,959	350,863	341,262	44.0
As of December 31, 2021	719,736	321,655	312,310	43.4

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2. Dividends

		Dividends per Share (Yen)
	End of 1st Quarter	End of 2nd Quarter	End of 3rd Quarter		Year-End	Annual
Fiscal Year Ended	－	50.00	－		113.00	163.00
December 31, 2021
Fiscal Year Ending	－	85.00
December 31, 2022
Fiscal Year Ending
December 31, 2022			－		85.00	170.00
(Forecast)
Note: Revisions to forecast of dividends in this quarter: None

3. Forecast of Financial Results for the Fiscal Year Ending December 31, 2022

% represents percentage change from the previous fiscal year					Millions of yen
	Revenue	Operating Profit	Profit before Tax	Profit Attributable to	Basic Earnings per
	Owners of Parent	Share (Yen)
Fiscal Year Ending	684,000	13.4%	67,500	10.0%	67,600	12.1%	46,500	6.6%	505.39
December 31, 2022

Note: Revisions to forecast of financial results in this quarter: Yes

The forecast of financial results for the fiscal year ending December 31, 2022, previously announced on May 12, 2022 has been revised. For further details, please refer to "Explanation of Forecast of Consolidated Financial Results" on page 10.

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4. Other Information

1. Changes in significant subsidiaries during the fiscal year under review (Changes in specified subsidiaries involving changes in scope of consolidation): None

Included:	－	(－)
Excluded:	－	(－)

1. Changes in accounting policies and changes in accounting estimates
2. 1. Changes in accounting policies required by IFRS: None
   2. Changes in accounting policies other than (i) above: None
   3. Changes in accounting estimates: None
3. Number of shares outstanding (Common Shares)

1. Number of common shares (Including treasury shares)
2. Number of treasury shares
3. Average number of common shares

As of June 30, 2022	92,059,115	As of December 31,	95,513,633
2021
As of June 30, 2022	23,349	As of December 31,	3,536,073
2021
Six Months Ended	92,007,682	Six Months Ended	95,233,470
June 30, 2022	June 30, 2021

This quarterly financial result is exempt from quarterly review by certified public accountants or accounting firms.

Explanation of the Appropriate Use of Performance Forecast and Other Related Matters

1. The forecast of performance and other forward-looking statements contained in this report are based on information that was available to the Company as of the time of the issuance of this report and on certain assumptions about uncertainties that may have an impact on the Group's performance. Actual performance may differ substantially from these forecast owing to a wide range of factors. For further information on the assumptions made in the preparation of the forecast of performance, please refer to "Explanation of Forecast of Consolidated Financial Results" on page 10. Readers are cautioned not to place undue reliance on these forward-looking statements which are valid only as of the date thereof.
2. This report has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated report and the Japanese original, the original shall prevail. Also, the Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translation.

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Contents
1. Qualitative Information Regarding Consolidated Financial Results	・・・・・・・・・・・・ P.5
(1)	Explanation of Financial Results	・・・・・・・・・・・・ P.5
(2)	Explanation of Financial Position	・・・・・・・・・・・・ P.9
(3)	Explanation of Forecast of Consolidated Financial Results	・・・・・・・・・・・・ P.10
2. Condensed Consolidated Financial Statements and Primary Notes	・・・・・・・・・・・・ P.11
(1)	Condensed Consolidated Statement of Financial Position	・・・・・・・・・・・・ P.11
(2)	Condensed Consolidated Statement of Income and Condensed	・・・・・・・・・・・・ P.13
	Consolidated Statement of Comprehensive Income
(3)	Condensed Consolidated Statement of Changes in Equity	・・・・・・・・・・・・ P.17
(4)	Condensed Consolidated Statement of Cash Flows	・・・・・・・・・・・・ P.19
(5)	Notes to Condensed Consolidated Financial Statements	・・・・・・・・・・・・ P.21
	(Note for the Assumption of Going Concern)	・・・・・・・・・・・・ P.21
	(Segment Information)	・・・・・・・・・・・・ P.21
	(Additional Information)	・・・・・・・・・・・・ P.22
3. Others	・・・・・・・・・・・・ P.23
(1)	Litigation and Others	・・・・・・・・・・・・ P.23
(2)	Segment Information	・・・・・・・・・・・・ P.24
(3) Area Information	・・・・・・・・・・・・ P.26

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1. Qualitative Information Regarding Consolidated Financial Results

The Company finalized the provisional accounting treatment for business combinations. Financial results for the six months ended June 30, 2021 reflect the finalization of the provisional accounting treatment.

(1) Explanation of Financial Results

				Millions of yen
	Six Months Ended	Six Months Ended	Change	Change Ratio (%)
	June 30, 2021	June 30, 2022
Orders Received	344,927	399,415	54,487	15.8
Revenue	274,154	312,418	38,264	14.0
Operating Profit	24,686	27,183	2,496	10.1
Operating Profit on	9.0	8.7	－	－
Revenue Ratio (%)
Profit Attributable to	16,789	18,065	1,276	7.6
Owners of Parent
Basic Earnings per	176.30	196.35	20.05	11.4
Share (Yen)

During the six months ended June 30, 2022, the global economy showed signs of recovery due to the normalization of socio-economic activities in general, despite the impacts of restrictions on economic activities in some regions, including China, as countermeasures against COVID-19. In the Japanese economy as well, capital investment showed signs of recovery amid measures to curb the outbreak of COVID-19 and the normalization of socio-economic activities. On the other hand, the outlook for the domestic and overseas economies continues to be uncertain and unstable due to such factors as soaring raw material and resource prices and semiconductor lack, as well as the rapid depreciation of the yen and heightened geopolitical risks due to the Ukrainian situation. It is necessary to continue to closely monitor this situation.

In the oil and gas market, which is the Group's primary market, demand trended steadily due to rising crude oil prices and a recovery in demand from the impacts of COVID-19. Demand also recovered in the construction equipment market despite regional differences, as construction work that had been discontinued gradually resumed due to a pick-up in economic activity. In the semiconductor market, the demand remained at a high level, and customers' capital investment continued to expand. In addition, Japan's public investment related to national resilience remained firm.

Under these circumstances, orders received for the six months ended June 30, 2022 was firm in the Fluid Machinery & Systems (FMS) Business and the Precision Machinery (PM) Business. Revenues increased year on year in all businesses due to a high level of orders and so on while some negative factors existed, for example, lock-down impact such as plant shutdowns and postponement of shipments continued in some regions of China and shipment delays occurred in some PM Business products due to difficulties in procuring materials. Operating profit increased year on year as a whole, driven by higher sales in the PM Business and improved productivity at automated plants of the Components products in the PM Business, as well as by contributions from yen depreciation, despite decreases in the FMS Business and Environmental Plant Business.

As a result, consolidated orders received for the six months ended June 30, 2022 amounted to ¥399,415 million (an increase of 15.8% year-on-year), revenue amounted to ¥312,418 million (an increase of 14.0% year-on-year), operating profit amounted to ¥27,183 million (an increase of 10.1% year-on-year), and profit attributable to owners of parent amounted to ¥18,065 million (an increase of 7.6% year-on-year). All of them replaced the past highest records.

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