Message from the President

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

For over 110 years since its founding, the EBARA Group has leveraged its advanced technological capabilities to expand its business globally.

In February 2023, we announced E-Plan 2025, our medium-term management plan created by backcasting from our long-term vision, E-Vision 2030. This plan aims to resolve outstanding issues from E-Plan 2022 and serves as a strategic roadmap to guide us toward our future goals. The central theme of E-Plan 2025 is “Business Creation: Creating Value from the Customer’s Perspective”. Throughout these three years, we will strengthen competitiveness across all business segments and finish transitioning our organizational mindset from product-out to market-in.

In 2024, the second year of E-Plan 2025, we achieved record highs for the fourth consecutive year in orders, revenue, and operating profit. Key performance indicators, ROIC at 12.2%, ROE at 16.2%, operating profit ratio at  11.3% and revenue CAGR at 12.8%, all surpassed 2023 levels, reflecting strong growth potential while maintaining high capital efficiency and profitability. In 2025, the plan's final year, we anticipate an increase in fixed costs such as depreciation due to ongoing investments in growth and infrastructure. Nevertheless, we expect efficiency, profitability, and growth metrics to exceed the final targets set in E-Plan 2025.

*ROIC Formula: NOPLAT (Net Operating Profit Less Adjusted Taxes)/{interest-bearing debt (average between beginning and end of period) + equity attributable to owners of the parent (average between beginning and end of period)}

We have achieved such results because of our progress in the priority strategic areas of E-Plan 2025, including building systems that enhance responsiveness to customer needs across all of our business segments. We are accelerating the development of one-stop customer contact points and solution-based sales. In the Energy Segment, we secured bulk orders for compressors, turbines, and custom pumps for petrochemical projects in the Middle East. In the Building Service & Industrial Segment, we integrated sales of standard pumps, chillers, and fans, increasing orders across product lines. Two years into our transition to a market-facing organization, synergies across our segments are steadily increasing, contributing to enhanced operational efficiency and customer value. 

We continue to invest in strengthening the competitiveness of each segment. Our strategic direction will remain consistent in 2025: 

• In the Precision Machinery Segment, we will enhance our production systems and invest in R&D. 
• In the Building Service & Industrial Segment, we will explore expanding sales of new products and growing our footprint, including through M&A.
• In the Energy Segment, we will reinforce our production systems and optimize service and support infrastructure.

Regarding new business development, we have secured orders and conducted test runs in new energy fields such as hydrogen, geothermal, SAF (Sustainable Aviation Fuel), and ammonia. Notably, in hydrogen, we are developing a world-first product and constructing a full-scale commercial testing and development center. In 2025, we will continue accelerating solution-oriented business development, promoting new energy-related businesses, and investing in future growth areas.

The EBARA Group will responsibly return profits to shareholders and make strategic investments to enhance long-term corporate value while balancing capital efficiency and financial stability.

We remain committed to identifying sustainable growth opportunities from a global, market-driven perspective. Through our business activities, we aim to contribute to solving social challenges, including the SDGs, while maximizing corporate value.

We sincerely appreciate your continued support.

March 2025
Shugo Hosoda
Director, CEO & COO
President, Representative Executive Officer