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.
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.
<b>①Strive for growth</b>
Create and cultivate new businesses and expand existing businesses further into the global market.
<b>②Improve profitability of existing businesses</b>
Transform business structures to strengthen revenue base and increase S&S sales in all businesses.
<b>③Refine management and business infrastructure</b>
Proactively implement digital transformation (DX) technologies to facilitate swifter management and further emphasize ROIC management.
<b>④Enhance ESG-focused management</b>
Address evolving environmental issues, foster bonds with society, and enhance governance practices.
| Key Performance Indicators (KPI) | Targets (FY22) |
|---|---|
| ROIC | 7.6% or more |
| Operating Income to Sales Ratio | 8.5% or more |
| Target Achievement Indicators | Targets (FY22) |
|---|---|
| ROE | 11.2% or more |
| Debt-to-Equity Ratio | 0.4-0.6 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 |
| Shareholder Returns | Targets |
|---|---|
| Consolidated Dividend Payout Ratio | 35% or more |
| Consolidated Dividend on Equity Ratio (DOE) | 2.0% or more |
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)