Masao Asami Director, President, Representative Executive Officer, CEO & COO
For more than 110 years since our foundation, the EBARA Group has expanded its business by identifying inconveniences, problems, and other woes just beginning to make themselves known throughout society, and quickly provide solutions utilizing our advanced technological capabilities.
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 the fiscal year ended December 2023, the first year of our medium-term management plan, we recorded an increase in profit in all segments, achieving a record-high consolidated total profit. As a result, ROIC was 12.2%, ROE 15.7%, the operating profit ratio was 11.3%, and the compound annual growth rate was 11.5%, all higher than in the previous fiscal year. In 2024, we will maintain our high level of financial performance, while investing in growth and infrastructure.
In January 2023, we shifted from a product-based business segments to market-based ones and introduced a CxO system to address E-Plan 2025 priority areas. We have been unifying our organization in each segment and accelerating our efforts to resolve the woes of each market. One example of this is how we consolidated contact points. Previously, sales representatives of each product would make individual proposals to the same customer, but now, the sales representative can propose many products at once, strengthening their proposals and introducing greater synergy into the process.
As for creating new value, we are developing customer-driven solutions and products for new energy sources, including world-first hydrogen-related products, like canned motor pumps for liquid ammonia, by utilizing our know-how gained from our extensive line-up of products.
We are also making advances in ESG-focused management by reducing greenhouse gas emissions and increasing avoided emissions through our product offerings, in order to achieve carbon neutrality by 2050. We have established a Diversity, Equity and Inclusion (DE&I) Department to promote this concept within the company, and are taking measures to strengthen our human capital management by increasing the ratio of women in managerial positions and the ratio of men taking childcare leave.
The EBARA Group will continue to view sustainable growth opportunities from a global market-in perspective and contribute to solving social issues, including the SDGs, through its business, while working to maximize corporate value. In order to further contribute to society through our business, we will continue to support the globe with technology and passion, while building firm relationships of trust with our stakeholders.
We look forward to your continued support.
April 2024