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.
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|
|Growth Investment||Targets (3-year Total)|
|Capital Investment||About 100.0 billion yen|
|R&D||About 40.0 billion yen|
|Consolidated Dividend Payout Ratio||35% or more|
|Consolidated Dividend on Equity Ratio (DOE)||2.0% or more|
Please refer to the following documents for details:
Notice Regarding the Formulation of EBARA’s Long-term Vision and Medium-term Management Plan
Long-term Vision: E-Vision 2030 & Medium-term Management Plan: E-Plan 2022 (Presentation)