Management Plan

Long-term Vision

EBARA CORPORATION announces our Long-term Vision: E-Vision 2030, which establishes a vision and path for 10 years from fiscal year (FY) 2020. We have identified five material issues (EBARA’s materiality) with our key message for 2030 of: “Technology. Passion. Support our globe,” in mind. The material issues are as follows:

5 Material Issues (Materiality)

1. Contribute to the creation of a sustainable society
　　We will utilize our technologies to passionately support the creation of a sustainable, environmentally-friendly world with ample food and water, and safe and reliable social infrastructure.

2. Elevate standards of living and support abundant lifestyles for all
　　We will utilize our technologies to passionately support economic development that enables the world to end poverty and realize ever-evolving and abundant lifestyles.

3. Conduct comprehensive environmental management
　　We will promote the reduction of CO2 emissions from our business operations and maximizing our use of renewable energy to move toward a carbon-neutral world.

4. Promote working environments that encourage challenge
　　We will promote a corporate group culture of competition and challenge, and provide diverse employees with meaningful work and comfortable working environments.

5. Enhance corporate governance
　　We will lay out a vision for and pursue growth through offensive and defensive governance that supports high-level management capabilities.

10-Year Vision

We aim to further our contributions toward the SDGs through the pursuit of solutions to our identified material issues to contribute to the creation of a sustainable society, while simultaneously increasing the (1) social/environmental value and (2) economic value we generate. We believe this will earn us greater corporate value and recognition as an excellent global company. We have set market capitalization of 1 trillion yen by 2030, as an indicator of our corporate value.

Representative examples of outcome goals
　(1) Social/Environmental Value
　　- Reduce GHG emissions by the equivalent of about 100 million tons of CO2
　　- Deliver water to 600 million people
　　- Contribute to smarter living by challenging the 14Å (angstrom, 1/10 billionth) generation,
　　　state-of-the-art semiconductor devices.
　(2) Economic Value
　　- ROIC over 10.0%
　　- Roughly 1 trillion yen in sales

Medium-term Management Plan

The Medium-term Management Plan: E-Plan 2022, was created by reviewing and clarifying issues that remained from the previous medium-term management plan, in addition to backcasting of the kinds of issues we must face to achieve our Long-term Vision: E-Vision 2030.
We have positioned E-Plan 2022 as the time to “Reconstruct the foundations of growth,” and lay out the following four basic policies to be implemented in the next three years.

E-Plan 2022 Basic Policies

(1) Strive for growth
　　Create and cultivate new businesses and expand existing businesses further into the global market.

(2) Improve profitability of existing businesses
　　Transform business structures to strengthen revenue base and increase S&S sales in all businesses.

(3) Refine management and business infrastructure
　　Proactively implement digital transformation (DX) technologies to facilitate swifter management
　　and further emphasize ROIC management.

(4) Enhance ESG-focused management
　　Address evolving environmental issues, foster bonds with society, and enhance governance practices.

E-Plan 2022 Numerical Targets

Key Performance Indicators (KPI)	Targets (FY22)
ROIC	8.0% or more
Operating Income to Sales Ratio	8.5% or more

Target Achievement Indicators	Targets (FY22)
ROE	11.0% or more
Debt-to-Equity Ratio	0.3-0.5 times
(Operating Income Ratio by Business)
Fluid Machinery & Systems Business	7.0% or more
Pumps Business	6.5% or more
Compressors and Turbines Business	8.0% or more
Chillers Business	5.0% or more
Environmental Plants Business	9.5% or more
Precision Machinery Business	13.0% or more