Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Consolidated Financial Results
for the Three Months Ended March 31, 2024
(Under Japanese GAAP)May 8, 2024
Company name:

EBARA JITSUGYO CO.,LTD.

Listing:
Securities code:

Tokyo Stock Exchange
6328
URL: https://www.ejk.co.jp/

Representative:

President and COO
Senior Managing Executive Officer,

Inquiries:

Takashi Ishii
Shuji Ohno

Head of Planning & Strategy Office
Scheduled date to file Quarterly Securities Report:

TEL:+81-3-5565-2885

May 10, 2024

Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results:–
Yes

Holding of quarterly financial results briefing:No(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended March 31, 2024 (from January 1, 2024 to March 31, 2024)(1) Consolidated operating results (cumulative)
Net sales
Three months ended March 31, 2024
Three months ended March 31, 2023
Note:

Comprehensive income

Millions of yen
13,762
13,390Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen
%
2.8
2,846
14.8
2,899
16.3
2,005
16.4
13.9
2,478
6.2
2,492
5.0
1,723
(0.6)

For the three months ended March 31, 2024: ¥2,840 million [31.8%]
For the three months ended March 31, 2023: ¥2,154 million [133.8%]
Basic earnings per share

Diluted earnings per share

Yen
168.04143.62Three months ended March 31, 2024
Three months ended March 31, 2023

Yen
–
–

(2) Consolidated financial position
Total assets
As of March 31, 2024
As of December 31, 2023
Reference:

EquityNet assets

Millions of yen
47,316
41,917

As of March 31, 2024: ¥23,364 million

Equity-to-asset ratio

Millions of yen
23,36421,028

%
49.4
50.2

As of December 31, 2023: ¥21,028 million

2. Cash dividends
Annual dividends per share

Year ended December 31, 2023
Year ending December 31, 2024
Year ending December 31, 2024 (Forecast)Note:

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Total

Yen
–
–

Yen
42.50

Yen
–

Yen
42.50

Yen
85.00

47.50

–

47.50

95.00

Revisions to the forecast of cash dividends most recently announced: No

3. Forecast of consolidated financial results for the year ending December 31, 2024 (from January 1, 2024 to December 31, 2024)
Percentages indicate year-on-year changes
Profit attributable to
Basic earnings
Net sales
Operating profit
Ordinary profit
owners of parent
per share
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
38,000
4.7
4,050
0.6
4,200
0.9
3,150
0.3
263.86
Note:

Revisions to the forecast of consolidated financial results most recently announced: No

4. Notes(1) Changes in significant subsidiaries during the period(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements:

No(3) Changes in accounting policies, changes in accounting estimates, and restatement
Changes in accounting policies due to revisions to accounting standards and other regulations:No

Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement:No(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2024

12,930,000 shares As of December 31, 2023

12,930,000 shares

Number of treasury shares at the end of the period
As of March 31, 2024

991,044 shares As of December 31, 2023

995,144 shares

Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)
Three months ended March 31, 2024
Note:

11,936,496 shares Three months ended March 31, 2023

11,999,567 shares

Ebara Jitsugyo Co., Ltd. (the “Company”) has introduced a Trust-type Employee Stock Ownership Plan (ESOP) on May 12, 2021.
The Company’s stock held by the Trust is included in treasury shares that are deducted in the calculation of “Number of treasury
shares at the end of the period” and “Average number of shares outstanding during the period (cumulative from the beginning of
the fiscal year)”.

* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
* Proper use of earnings forecasts, and other special matters
The forecast of the Company Group is based on currently available information and some reasonable assumptions. Due to various factors,
actual results may differ from those discussed in this document. For information on the forecast of financial results, please see “1. Qualitative
Information on 1Q FY2024 (January 1, 2024 to March 31, 2024) (3) Forecasts of Consolidated Business Results and Others” on page 3 of
the Accompanying document.

○Attachment: Table of Contents
1.

Qualitative Information on 1Q FY2024 (January 1, 2024 to March 31, 2024) ………………………………………………
(1) Business Results ……………………………………………………………………………………………………………
(2) Financial Position …………………………………………………………………………………………………………
(3) Forecasts of Consolidated Business Results and Others ……………………………………………………………………
2. Quarterly Consolidated Financial Statements and Main Notes ………………………………………………………………
(1) Consolidated Balance Sheet ………………………………………………………………………………………………
(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ……………………………
Consolidated Statements of Income ………………………………………………………………………………………
Consolidated Statements of Comprehensive Income ……………………………………………………………………
(3) Notes to Quarterly Consolidated Financial Statements ……………………………………………………………………
(Note on going concern assumption) ………………………………………………………………………………………
(Note on significant change in shareholders’ equity) ………………………………………………………………………
(Additional information) ……………………………………………………………………………………………………
(Segment data) ………………………………………………………………………………………………………………

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1. Qualitative Information on 1Q FY2024 (January 1, 2024 to March 31, 2024)(1) Business Results
During the first quarter of the fiscal year 2024 (January 1, 2024 to March 31, 2024), the Japanese economy saw a moderate recovery
with improvements in capital investments and the employment/income environments on the back of solid corporate performance.
Meanwhile, there were downward risks including the rising inflations, cheaper yen, change to the government’s monetary policy,
and slowdown in overseas economies. As a result, the economic outlook remained unclear.
The environmental equipment and machinery industry where Ebara Jitsugyo Co., Ltd. (the “Company”) operates experienced thelingering impact of supply shortages in materials and equipment and the rising materials prices. However, the Company enjoyedstable demand in the public sector in relation to the renewal and maintenance of water infrastructure facilities and disaster prevention
and mitigation such as rainwater drainage facilities. In addition, capital investments in the private sector were solid.
In this business environment, the Company Group aimed to improve its corporate value focusing on three core areas of disasterprevention and mitigation, storage batteries, and the fisheries business, under the following basic policy:-

Create new businesses / accelerate new product development;
Expand business domains; andEstablish a stable revenue base.

As a result, in the first quarter of the fiscal year 2024, the Company recorded ¥10,065 million in orders received (up 42.5% year onyear), ¥13,762 million in net sales (up 2.8% year on year), ¥2,846 million in operating profit (up 14.8% year on year), ¥2,899 million
in ordinary profit (up 16.3% year on year), and ¥2,005 million in profit attributable to owners of parent (up 16.4% year on year).
The following shows segment-specific information.
Manufacturing
In the Manufacturing segment that manufactured and sold environment-related products, the Company posted ¥1,996 million inorders received for the whole segment, up 10.5% year on year, reflecting the increased demand for deodorizing facilities andmaterials and land-based aquaculture facilities, despite stagnant demand for ozone monitors used in semiconductor manufacturing
equipment and a fall in demand for infectious disease control equipment. Net sales fell 15.9% to ¥2,160 million due to a decline in
infectious disease control equipment sales, although net sales of deodorizing facilities and materials and land-based aquaculture
facilities were solid. Segment profit shrank 25.6% year on year to ¥531 million because of the smaller net sales.
Engineering
In the Engineering segment that designed and constructed waterworks and sewerage facilities, the Company posted ¥5,150 million
in orders received, up 84.3% year on year, thanks to stable demand related to the renewal and organization of water infrastructure
facilities and disaster prevention and mitigation such as rainwater draining facilities. Net sales rose 10.5% year on year to ¥7,724
million due to the posting of a high level of an orders backlog at the beginning of the period as sales, despite the slightly lingering
impacts of factors such as work delays caused by supply shortages of materials and equipment. Segment profit rose 34.2% year on
year to ¥1,954 million on the back of an increase in net sales.
Trading
In the Trading segment that mainly sold pumps, freezers, and air-conditioning equipment as a trading company, private-sector capital
investments were solid, although uncertainties remained such as the ongoing long delivery times. The segment’s orders receivedrose 18.5% year on year to ¥2,917 million on the back of the increased demand resulting from capital investments mainly insemiconductor related factories. Net sales also increased 1.2% year on year to ¥3,877 million as the orders backlog was steadily
posted as sales. Segment profit grew 15.3% year on year to ¥691 million on the back of an increase in net sales.
The orders received by each segment during the quarter under review were as follows.
Segment
Manufacturing
Engineering
Trading
Total

Orders received(millions of yen)Comparison with 1Q
FY2023 (%)

Orders backlog(millions of yen)Comparison with 1Q
FY2023 (%)

1,996
5,150
2,917

110.5
184.3
118.5

3,948
18,975
4,799

105.3
133.7
96.3

10,065142.5

27,723

120.9-2-

(2) Financial Position
The Group’s total assets at the end of the quarter under review (March 31, 2024) was ¥47,316 million, an increase of ¥5,398 million
from the end of the previous fiscal year (December 31, 2023). This was mainly due to a ¥4,088 million increase in notes and accounts
receivable-trade and contract assets as the Company Group’s net sales tend to concentrate in March each year when the fiscal yearof local governments closes. It also reflected a ¥1,204 million increase in investment securities due to the rising market value of theCompany’s shareholding.
Total liabilities at the end of the quarter under review was ¥23,952 million, an increase of ¥3,062 million from the end of the previous
fiscal year. This mainly reflected a ¥3,357 million increase in notes and accounts payable-trade and a ¥1,254 million drop in contract
liabilities for the same reason as in total assets, the posting of ¥377 million in the provision for bonuses, and an increase of ¥330
million in deferred tax liabilities in relation to the fair market valuation of investment securities.
Total net assets at the end of the quarter under review were ¥23,364 million, an increase of ¥2,335 million from the end of theprevious fiscal year. This was largely attributable to an increase of ¥2,005 million due to the posting of profit attributable to ownersof parent, an increase of ¥835 million in valuation difference on available-for-sale securities due to the rising market value of theCompany’s shareholding, although there was a drop of ¥508 million resulting from the use of retained earnings for dividend payment.
(3) Forecasts of Consolidated Business Results and Others
There is no change to our forecasts of the consolidated business results for the fiscal year ending December 31, 2024 which weannounced in the Summary of Consolidated Financial Results for the Fiscal Year Ended December 31, 2023 dated February 9, 2024.

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2. Quarterly Consolidated Financial Statements and Main Notes(1) Consolidated Balance Sheet(Millions of yen)
As of December 31, 2023

As of March 31, 2024

AssetsCurrent assets
Cash and deposits

14,497

14,826

14,273
1,285

18,361
1,110Work in process
Costs on construction contracts in progress

371
130

364
50

Raw materials and supplies
Other

536
270

575
238

Allowance for doubtful accounts

(1)

(1)

31,36435,525

Notes and accounts receivable - trade, and contract assets
Merchandise and finished goods

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

3,801

3,809

Accumulated depreciation(2,130)(2,156)

Buildings and structures, net

1,671

1,652

Machinery, equipment and vehicles

215

215

Accumulated depreciation

(175)

(178)

40

37

Machinery, equipment and vehicles, net
Tools, furniture and fixtures

767

777

Accumulated depreciation

(648)

(661)

Tools, furniture and fixtures, net

119

115

1,356

1,356

3
34

15
34

Accumulated depreciation

(4)

(5)

Other, net

29

28

3,220

3,206

95

88

Investments and other assets
Investment securities

5,889

7,093

Insurance funds
Investment property, net

429
646

441
641

Deferred tax assets
Other

58
318

126
297

Allowance for doubtful accounts

(104)

(104)

Land
Construction in progress
Other

Total property, plant and equipment
Intangible assets

Total investments and other assets
Total non-current assets
Total assets

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7,237

8,496

10,553

11,79041,91747,316

(Millions of yen)
As of December 31, 2023

As of March 31, 2024

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings

12,5881,010

15,946
1,010

80
838

80
1,043

275
3,132

480
1,878

–
25

377
6

Other

1,049

954

Total current liabilities

19,00021,776

1,247

1,577

158

158

260

240

222

198

Current portion of long-term borrowings
Income taxes payable
Accrued consumption taxes
Contract liabilities
Provision for bonuses
Provision for loss on construction contracts

Non-current liabilities
Deferred tax liabilities
Provision for retirement benefits for directors (and otherofficers)
Retirement benefit liability
Other
Total non-current liabilities

1,889

2,175

20,88923,952

Share capital
Capital surplus

1,001
844

1,001
844

Retained earnings
Treasury shares

17,814(1,943)

19,305(1,933)

Total shareholders' equity

17,717

19,218

3,294

4,129

17

15

3,311

4,145

21,02823,364

41,91747,316

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets-5-(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income (cumulative)(Millions of yen)Three months ended

Three months ended

March 31, 2023

March 31, 2024

Net sales
Cost of sales

13,3909,201

13,7629,112

Gross profit

4,188

4,649

Selling, general and administrative expenses

1,710

1,803

Operating profit

2,478

2,846

Interest income
Dividend income

0
24

0
29

Rental income from investment property
Other

24
2

25
14

Total non-operating income

5169

Non-operating income

Non-operating expenses
Interest expenses
Rental expenses on real estateCommission expenses

1

1

9
24

11
–

Other

2

2

Total non-operating expenses

38

16

Ordinary profit

2,492

2,899

Profit before income taxes

2,492

2,899

Income taxes - current
Income taxes - deferred

903
(134)

999
(106)

Total income taxes

768

893

Profit

1,723

2,005

Profit attributable to owners of parent

1,723

2,005

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Consolidated Statements of Comprehensive Income (cumulative)(Millions of yen)Three months ended
March 31, 2023
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax

Three months ended
March 31, 2024

1,723

2,005

428

835

2

(1)

431

834

Comprehensive income

2,154

2,840

Comprehensive income attributable toComprehensive income attributable to owners of parent

2,154

2,840

–

–

Total other comprehensive income

Comprehensive income attributable to non-controllinginterests-7-

(3) Notes to Quarterly Consolidated Financial Statements(Note on going concern assumption)
Not applicable.
(Note on significant change in shareholders’ equity)
Not applicable.
(Additional information)
Trust-type Employee Stock Ownership Plan (ESOP)In its Bord of Directors meeting held on April 20, 2021, the Company resolved to dispose of its treasury stock (hereinafter, the“Treasury Stock Disposal”) through private placement following the introduction of a Trust-type Employee Stock Ownership Plan
(ESOP) (hereinafter, the “Plan”).
The Plan is available to the Company Group employees (hereinafter, the “Eligible Employees”) who are the members of the Ebara
Jitsugyo Employee Stock Ownership Association (hereinafter, the “Association”). The Company has established the Employee Stock
Ownership Association Trust (a trust that is created for the benefits of beneficiaries who are not the trustor) (hereinafter, the “Trust”)
with the Eligible Employees who satisfy certain requirements as its beneficiaries.
The Trust used the funds raised through bank borrowings to acquire at once the number of Company shares that the Association was
expected to acquire over a period of approximately five years after signing a trust agreement. The Company provides a guarantee tothe said borrowings obtained by the Trust.
Under the Plan, the Association will purchase Company shares from the Trust. If the Trust accumulates an amount equivalent tosales gains through the acquisition of Company shares by the Association, the said amount will be distributed to the Eligible
Employees who are beneficiaries of the Trust at the expiry of the Trust. On the other hand, if the Trust is unable to fully repay its
borrowings due to a fall in the Company’s share price, the Company will repay the remaining debts to the lending banks. In thiscase, the Eligible Employees will not be held liable for the repayment of the debts. The Company transferred 60,606 shares of its
treasury stock (121,212 shares after the share split) to the Trust as of May 12, 2021.
For the accounting treatment of the Treasury Stock Disposal, the Company and the Trust are deemed as one entity. As such, theCompany shares held by the Trust and assets and liabilities of the Trust are posted as part of the Company’s consolidated quarterly
balance sheet. As of the end of the quarter under review (March 31, 2024), the number of Company shares (of treasury stock) heldby the Trust was 26,000 at the book value of ¥64 million.

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(Segment data)
Ⅰ First Quarter of Fiscal Year 2023 (January 1, 2023 to March 31, 2023)
1. Net sales and profit/loss of each reporting segment and breakdown of revenue(In millions of yen)Amount on
consolidated
Adjustment quarterly(Note) 1
statements ofincome(Note) 2

Reporting segments
Manufacturing
Net sales
Public sector
Private sector
Revenue from customer contracts
Other revenue
Net sales to external customers
Internal net sales or transfers
between segments

Total

Engineering

Trading

1,360
1,208
2,568
2,568

6,683
307
6,991
6,991

660
3,169
3,830
3,830

8,705
4,685
13,39013,390

-

8,705
4,685
13,39013,390

-

-

-

-

-

-

Total
2,568
6,991
3,830
13,39013,390
Segment profit
714
1,456
599
2,771
(292)
2,478
(Notes)1. The adjustment to segment profit mainly represents general and administrative expenses that do not belong to the reporting
segments.
2. Segment profits are adjusted for operating profit posted on the quarterly consolidated statements of income.
2. Impairment loss or goodwill on non-current assets of the reporting segments
Not applicable.
Ⅱ First Quarter of Fiscal Year 2024 (January 1, 2024 to March 31, 2024)
1. Net sales and profit/loss of each reporting segment and breakdown of revenue(In millions of yen)Amount on
consolidated
Adjustment quarterly(Note) 1
statements ofincome(Note) 2

Reporting segments
Manufacturing
Net sales
Public sector
Private sector
Revenue from customer contracts
Other revenue
Net sales to external customers
Internal net sales or transfers
between segments

Total

Engineering

Trading

1,263
897
2,160
2,160

7,522
201
7,724
7,724

991
2,886
3,877
3,877

9,776
3,985
13,762
13,762

-

9,776
3,985
13,762
13,762

-

-

-

-

-

-

Total
2,160
7,724
3,877
13,762
13,762
Segment profit
531
1,954
691
3,177
(331)
2,846
(Notes)1. The adjustment to segment profit mainly represents general and administrative expenses that do not belong to the reporting
segments.
2. Segment profits are adjusted for operating profit posted on the quarterly consolidated statements of income.
2. Impairment loss or goodwill on non-current assets of the reporting segments
Not applicable.

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