Message from the President

Shugo Hosoda<br>Director,<br>President, Representative Executive Officer, CEO & COO

Shugo Hosoda
Director,
President, Representative Executive Officer, CEO & COO

Striving for Further Evolution as a Global Excellent Company

For more than 110 years since its founding, the EBARA Group has used its advanced technological capabilities to continue and expand its business worldwide.

In February 2023, we announced E-Plan 2025, our medium-term management plan that was created to address issues and challenges that remained from the previous medium-term management plan, E-Plan 2022, and also backcasts from EBARA's long-term vision, E-Vision 2030. In order to accelerate our internal shift from a product-out to market-in perspective, we are further strengthening our competitiveness in each segment under the theme of "business creation: creating value from the customers’ perspective.".

In 2024, the second year of E-Plan2025, we achieved record highs for the fourth consecutive year in terms of orders received, revenues and operating profit. ROIC12.2%, ROE16.2%, Operating Profit Ratio 11.3% and Revenue CAGR12.8% were above 2023 levels in terms of growth potential, while maintaining a high level of capital efficiency and profitability. In 2025, the final year of E-Plan 2025, fixed costs such as depreciation expenses will increase due to the growth investments and foundational investments that have been continuously made during the period. However, the efficiency, profitability, and growth indicators are all planned to exceed the final targets of the medium-term management plan.

With regard to E-Plan2025's priority areas, we have made progress in establishing a system that strengthens our ability to respond to customers in every segment. We are accelerating the development of one-stop customer contact points and solution-based sales. In the Energy Segment, we received bulk orders for compressors, turbines, and custom pumps in petrochemical projects in the Middle East. In the Building Service & Industrial Segment, we integrated sales of standard pumps, chillers, and fans, resulting in an increase in orders across products in each project. Two years have passed since we shifted to a market facing organization, and synergies among our businesses have certainly emerged.

We continue to investment in strengthening the competitiveness of each segment. The direction of our major strategy will remain unchanged in 2025. In the Precision Machinery segment, we will continue to strengthen our production system and invest in R&D. In the Building Service & Industrial segment, we will consider expanding sales of new products and continuing to expand our bases, including through M&A. In the Energy Segment, we will strengthen our production system and optimize our service and support bases.

In creating new business opportunities, we were able to win orders and test-run our products for new-energy fields, including hydrogen, geothermal, SAF, and ammonia. Especially in the hydrogen-related field, the development of the world's first product and the construction of a real-scale commercial product test and development center are under way. In 2025, we will continue to accelerate and monetize solution-oriented business development, promote new energy-related businesses, and invest in new businesses.

While giving due consideration to the balance between capital efficiency and financial soundness, the Group will appropriately return profits from its growth strategy to shareholders while making necessary investments that will lead to the enhancement of corporate value over the long term.

The EBARA Group will continue to view sustainable growth opportunities from a global market-in perspective and contribute to solving social issues, including SDGs, through its business, while working to maximize corporate value.

We look forward to your continued support.

March 2025

Director, CEO & COO
President, Representative Executive Officer
Shugo Hosoda

IR Menu