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:
<b>i. Contribute to the creation of a sustainable society</b>
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.
<b>ii. Elevate standards of living and support abundant lifestyles for all</b>
We will utilize our technologies to passionately support economic development that enables the world to end poverty and realize ever-evolving and abundant lifestyles.
<b>iii. Conduct comprehensive environmental management</b>
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.
<b>iv. Promote working environments that encourage challenge</b>
We will promote a corporate group culture of competition and challenge, and provide diverse employees with meaningful work and comfortable working environments.
<b>v. Enhance corporate governance</b>
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.
EBARA CORPORATION (“the Group”) announces its Medium-term Management Plan "E-Plan 2025" for three years starting from FY2023.
Based on the achievements of the previous Medium-term Management Plan: E-Plan 2022, the Group will move on to the next stage to further strengthen its competitiveness in each business area. In E-Plan 2025, under the theme of "creating value from the customer's perspective," the Group has positioned the three-year term as a period for steadily approaching EBARA’s Vision for 2030 set forth in E-Vision 2030 as well as ensuring the realization of the vision by 2030 and thus determined the following directions.
With the implementation of the above six, the goal of E-Plan 2025 is to reach a position where the Group can more certainly foresee the path to realize the EBARA's Vision for 2030. For the business growth, the Group has set a CAGR of 7% for revenue during the period of E-Plan 2025, which will be achieved mainly in the following two businesses of growth areas: Building Service & Industrial and Precision Machinery.
The Group strives for sustainable “entrepreneurship” and the creation of value, while fostering an organizational culture that supports a mindset of taking on challenges and transforming the entire company into a structure that truly addresses customer needs and issues, as well as creating a series of flows that generate business.The Group strives for sustainable “entrepreneurship” and the creation of value, while fostering an organizational culture that supports a mindset of taking on challenges and transforming the entire company into a structure that truly addresses customer needs and issues, as well as creating a series of flows that generate business.
In addition, the Group has determined the five key areas to support the realization of the theme as described as follows:
The Group has set the following goals for FY2025, the final year of E-Plan 2025.
| Category | Item | FY2025 Target |
|---|---|---|
| Profitability | Operating profit ratio | 10% or higher |
| Operating profit ratio by business segment | ||
| Building Service & Industrial | 7% or higher | |
| Energy | 12% or higher | |
| Infrastructure | 6% or higher | |
| Environmental Solutions | 7% or higher | |
| Precision Machinery | 17% or higher | |
| Efficiency | ROIC | 10% or higher |
| ROE | 15% or higher | |
| Growth | Building Service & Industrial Revenue CAGR from FY2022 to FY2025 |
6% or higher |
| Precision Machinery Revenue CAGR from FY2022 to FY2025 |
15% or higher | |
| Financial health |
Debt-to-equity ratio | 0.3-0.5 (management guideline) |
*ROIC
(Until FY22) Profit attributable to owners of parent ÷ [Interest-bearing debt (average between beginning and end of period) + Equity attributable to owners of parent (average between beginning and end of period)]
(from FY23) NOPLAT (Net Operating Profit Less Adjusted Taxes) ÷ invested capital {interest-bearing debt (average amount of the beginning and end of fiscal year) + Equity attributable to owners of parent (average amount of the beginning and end of fiscal year)}
| Category | Item | Target |
|---|---|---|
| E: Environment |
CDP score (climate change) | Maintain B or above |
| Scope 1, 2: GHG emissions | Reduce by 32% compared to FY2018 | |
| Scope 3/Avoided emissions/Others (Across Value Chain)* *Revised November 2023 |
Establish a practical measurement method to reduce 100 million tons of CO2 equivalent by 2030 | |
| S: Social |
Transform into a culture of competition and challenge, and strive to create an environment where diverse employees can comfortably work and perform well - Improve Engagement Survey Score (consolidated) |
FY2025: 83 or higher FY2030: 86 or higher |
| Aim for global mobility improvement - Percentage of non-Japanese employees (consolidated) in Global Key Position (GKP) |
FY2025: 30% FY2030: 50% |
|
| Resolve gender pay gap (1) Percentage of female employees in GKP (consolidated) (2) Percentage of female employees in key positions (non-consolidated) |
FY 2025: 100%* *Targets announced in November 2023 |
|
| Cultivate a company culture where employees can work and raise children at the same time regardless of gender - Percentage of male employees taking parental leave (non-consolidated) |
Establish data collection methods by the end of 2023 and set targets based on an action plan to improve the acquisition ratio | |
| Promote good performance of employees with special needs - Percentage of employees with special needs (non-consolidated + four group affiliates) |
FY2025: 2.6% or higher | |
| Implement necessary measures based on the results of human rights due diligence for suppliers | Implement necessary measures based on the results of human rights due diligence for suppliers | |
| G: Governance |
Deepen the performance of the Board of Directors and contributions to G to V: Governance to Value | |
| Item | Description | FY2023-2025 3-year cumulative total |
|---|---|---|
| Growth investment |
Growth investment based on business portfolio (facilities for increased production, R&D, new business, M&A, etc.) |
180.0 to 225.0 billion yen (including R&D expenses of 65 billion yen) |
| Infrastructure investment |
Strengthen bases that underpin sustainable growth, etc. (maintenance and renewal equipment, human capital, IT such as ERP, business infrastructure, ESG investments) |
50 to 80 billion yen |
| Shareholder
returns
|
Dividend policy: Consolidated Dividend Payout Ratio of 35.0% or higher Repurchase of treasury stock: Implement flexibly at appropriate times, carefully considering the level of equity attributable to owners of parent, other investment targets, cash and deposits on hand, stock price trends, business performance trends, and other factors |
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Notice regarding the Formulation of EBARA’s Medium-term Management Plan “E-Plan 2025”
Medium-term Management Plan:E-Plan 2025 (Presentation)
Medium-term Management Plan:E-Plan 2025 (Script)
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)