President and Representative Executive Officer
The EBARA Group has expanded its business domains through the development, manufacture, and sale of products that meet the needs of society since it was founded as a pump manufacturer in 1912. We were able to make contributions to society and the environment through its business. Looking ahead, we remain committed to making further contributions to the resolution of social issues in the course of our business activities and thereby realizing a more enriched society and protecting the environment.
One look at the world today will reveal countless issues plaguing society and the global environment. Companies too are not without problems, as the competitive climate is constantly growing more complicated and more intense. In this climate, there will certainly be companies that choose to prioritize their own profits and market presence, paying no heed to the concerns of society and the environment. As a company, EBARA must, of course, grow its profits. However, the growth and competitive edge we seek cannot come at the expense of society and the environment. Rather, our vision for the EBARA Group is one in which the Group is able to create social value and help alleviate the burden placed on the environment through its business activities while simultaneously generating profits.
The medium-to-long-term goal of the EBARA Group is to become a manufacturer of industrial machinery that grows and develops its business on a global basis and that can stand abreast with global rivals in terms of both quantity and quality, or, in other words, business scale and profitability. Accomplishing this goal will require that we swiftly heighten the competitiveness of our products in the Fluid Machinery & Systems Business and other businesses while expanding our post-delivery service and support operations. These are tasks that cannot be accomplished without employees that are driven by their passion and dedication and embody the “EBARA Way.” We therefore recognize the need to develop organizational structures and workplace environments that enable employees to exercise their talents to an even greater extent than previously possible. Moreover, employees should be able to hone their skills in a corporate culture that encourages competition and embraces challenges while pursuing higher pinnacles together with their coworkers.
In April 2017, we launched “E-Plan 2019,” our new medium-term management plan, to further our goals. Now in motion, E-Plan 2019 is aimed at thoroughly improving profitability in all businesses, and its period has been designated as a time to engage in the “unlimited challenge toward growth.”
In the first year of E-Plan 2019, the fiscal year ended December 31, 2017, due to the impact of a nine month accounting period, income levels declined temporarily. Our key management indicator of ROIC and operating income ratio declined year on year, but the first year transitioned largely on par with plans. Measures for each business also progressed smoothly. However, recovery of the energy sector, particularly oil and gas, is slower than expected, although we projected a certain level of market recovery. As a result, profitability of the Fluid Machinery & Systems Business fell below plans.
For the second and the third year, to achieve ROIC 8%, we will implement additional measures to improve operating income ratio and promote enhancements to capital efficiency. At businesses lagging behind in profitability improvements, we will rebuild production structures and optimize human resources to further improve income.
Taking advantage of products backed by EBARA’s technologies and turning an earnest eye to the needs of customers, we have proceeded to bolster the Group’s performance by maximizing the value we provide to customers. In my capacity as president, I will strive to ensure that all employees and all members of management are keenly aware of the fact that all of our efforts should be aimed at both the accomplishment of our medium-to-long-term goal and at contributions to society and the environment. Spurring us forward, I will help unite the strengths of our employees to drive further improvements to the EBARA Group’s corporate value.