Translation
Note:

This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between thistranslated document and the Japanese original, the original shall prevail.

Consolidated Financial Results
for the Six Months Ended June 30, 2024
(Under Japanese GAAP)
August 5, 2024
Company name:
Listing:
Securities code:
Representative:

EBARA JITSUGYO CO.,LTD.
Tokyo Stock Exchange
6328
URL: https://www.ejk.co.jp/
President and COO
Senior Managing Executive Officer,
Inquiries:
Head of Planning & Strategy Office
Scheduled date to file semi-annual securities report:
Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:
Holding of financial results briefing:

Takashi Ishii
Shuji Ohno

TEL: +81-3-5565-2885

August 9, 2024
September 4, 2024
Yes
Yes

(Yen amounts are rounded down to millions, unless otherwise noted.)
1. Consolidated financial results for the six months ended June 30, 2024 (from January 1, 2024 to June 30, 2024)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Six months ended June 30, 2024
19,100
(7.3)
2,610
(3.0)
2,712
(1.5)
1,848
(3.2)
Six months ended June 30, 2023
20,599
22.1
2,690
21.1
2,754
19.3
1,908
12.0
Note:

Comprehensive income For the six months ended June 30, 2024: ¥2,544 million [2.8%]
For the six months ended June 30, 2023: ¥2,475 million [–%]
Basic earnings per share

Diluted earnings per shareYen
154.75
159.67Six months ended June 30, 2024
Six months ended June 30, 2023

Yen
–
–

(2) Consolidated financial position
Total assets
As of June 30, 2024
As of December 31, 2023
Reference:

EquityNet assets

Millions of yen
44,45541,917

Equity-to-asset ratio

Millions of yen
23,13621,028

%
52.0
50.2

As of June 30, 2024: ¥23,136 million
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

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
–
–

Yen
42.50
47.50

Yen
–

Yen
42.50

Yen
85.00

–

47.50

95.00

Year ending December 31, 2024 (Forecast)
Note:

Total

Revisions to the forecast of cash dividends most recently announced: None

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: None

4. Notes(1) Significant changes in the scope of consolidation during the period:(2) Adoption of accounting treatment specific to the preparation of semi-annual consolidated financial statements:(3) Changes in accounting policies, changes in accounting estimates, and restatement
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:
Changes in accounting estimates:
Restatement:

None
None

None
None
None
None

(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 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 June 30, 2024

968,812 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)
Six months ended June 30, 2024
Note:

11,943,374 shares Six months ended June 30, 2023

11,952,221 shares

Effective May 12, 2021, Ebara Jitsugyo Co., Ltd. (the "Company") introduced a Trust-type Employee Stock Ownership Plan
(ESOP); therefore, the Company's stock held by the Trust is included in the number of treasury stock deducted in the calculation ofthe "Number of treasury shares at the end of the period" and the "Average number of shares outstanding during the period (interim
period)."* Semi-annual financial results reports are exempt from review conducted by certified public accountants or an audit firm.
* Proper use of earnings forecasts, and other special matters
The forecasts and other forward-looking statements of the Company Group contained in this document are based on information currently
available and reasonable assumptions regarding economic conditions, market trends, and other factors at the time of this document's
announcement and are subject to change due to various factors that may arise in the future. For information on the assumptions used toforecast financial results and precautionary statements when using the forecast of financial results, please refer to "1. Business Results andOthers (3) Forecasts of Consolidated Business Results and Others" on page 3 of the accompanying document.
* Method of obtaining supplementary materials for financial results, etc.
Supplementary materials for financial results are disclosed on TDnet the same day and posted on the Company's website.

○Attachment: Table of Contents
1.

Business Results and Others ………………………………………………………………………………………………… 2(1) Interim Business Results …………………………………………………………………………………………………… 2(2) Interim Financial Position ………………………………………………………………………………………………..… 3(3) Forecasts of Consolidated Business Results and Others …………………………………………………………………… 3
2. Consolidated Interim Financial Statements and Main Notes ………………………………………………………………… 4(1) Consolidated Interim Balance Sheet ………………………………………………………………………………………… 4(2) Consolidated Interim Statements of Income and Consolidated Interim Statements of Comprehensive Income …………… 6(3) Consolidated Interim Statement of Cash Flow ……………………………………………………………………………… 8(4) Notes on the Consolidated Interim Financial Statements …………………………………………………………………… 9(Notes on Segment data, etc.) ………………………………………………………………………………………………
9(Note on significant change in shareholders’ equity) ……………………………………………………………………… 10(Note on going concern assumption) ……………………………………………………………………………………… 10(Additional information) …………………………………………………………………………………………………… 10-1-1. Business Results and Others(1) Interim Business Results
During the first half of the fiscal year 2024 (January 1, 2024, to June 30, 2024), the Japanese economy continued to see a moderate
recovery with improvements in capital investments and the employment/income environments on the back of solid corporate
performance. Meanwhile, the economic outlook remained uncertain due to the effects of soaring domestic prices, the depreciationof the Japanese yen, and downside risks stemming from changes in the situation overseas.
The environmental equipment and machinery industry where the Company operates, experienced stable demand in the public sector
for the renewal and maintenance of water infrastructure facilities and disaster prevention and mitigation for rainwater drainage
facilities, while capital investment remained steady in the private sector.
In this business environment, the Company Group aimed to improve its corporate value by 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; and- Establish a stable revenue base.
As a result, in the first half of the fiscal year 2024, the Company recorded ¥19,316 million in orders received (up 2.8% year on year),¥19,100 million in net sales (down 7.3% year on year), ¥2,610 million in operating profit (down 3.0% year on year), ¥2,712 million
in ordinary profit (down 1.5% year on year), and ¥1,848 million in profit attributable to owners of parent (down 3.2% year on year).
The following shows segment-specific information.
Manufacturing
In the Manufacturing segment that manufactured and sold environment-related products, the Company posted ¥4,018 million inorders received for the whole segment, up 3.8% year on year, reflecting the increased demand for land-based aquaculture facilities
and wastewater plant facilities, despite a sluggish recovery in demand for ozone monitors for semiconductor manufacturing
equipment and a falloff in demand for infectious disease control equipment. Net sales fell 14.8% to ¥3,471 million due to a decline
in sales of infectious disease control equipment and storage batteries for industrial use, although net sales of deodorizing facilities
and materials and wastewater plant equipment were solid. Segment profit shrank 16.6% year on year to ¥748 million due to thesmaller net sales.
Engineering
In the Engineering segment that designed and constructed waterworks and sewerage facilities, there was stable demand for the
renewal and maintenance of water infrastructure facilities as well as demand for disaster prevention and mitigation, such as rainwaterdrainage facilities. The Company posted ¥9,271 million in orders received, down 3.9% year on year, and net sales of ¥9,908 million,
down 4.2% year on year, due to the extended construction period resulting from an increase in large projects. Segment profit rose
11.4% year on year to ¥1,700 million on the back of an increase in the gross profit margin.
Trading
In the Trading segment that mainly sold pumps, freezers, and air-conditioning equipment as a trading company, private-sector capital
investment remained strong, while the effects of prolonged delivery times for equipment and other factors began to ease. The
segment's orders received rose 14.5% year on year to ¥6,026 million on the back of increased capital investment in the semiconductor
industry and other factories. In contrast, net sales decreased 7.5% year on year to ¥5,719 million due to the impact of a small backlogof orders at the beginning of the period. Segment profit fell 8.1% year on year to ¥759 million on the back of a decrease in net sales.
The orders received by each segment during the first half of the period under review were as follows.
Segment
Manufacturing
Engineering
Trading
Total

Orders received(millions of yen)Comparison with 2Q
FY2023 (%)

Orders backlog(millions of yen)Comparison with 2Q
FY2023 (%)

4,018
9,271
6,026

103.8
96.1
114.5

4,659
20,912
6,066

108.1
118.2
111.6

19,316102.8

31,637115.3-2-

(2) Interim Financial Position(i) Financial Position
The Company Group's total assets as of the end of the first half of the period under review (June 30, 2024) was ¥44,455 million, an
increase of ¥2,537 million from the end of the previous consolidated fiscal year (December 31, 2023). This was mainly due to a
¥6,709 million increase in cash and deposits and a ¥4,993 million decrease in notes and accounts receivable-trade and contract
assets as a result of the collection of accounts receivable toward the end of the interim consolidated accounting period, as theCompany Group's sales to the public sector account for a high percentage of its total sales, which is a normal business pattern anda high percentage of sales recorded in the first quarter of the current consolidated accounting period. It also reflected a ¥1,008
million increase in investment securities due to the rising market value of the Company's investment securities.
Total liabilities at the end of the first half of the period under review was ¥21,318 million, an increase of ¥429 million from the endof the previous consolidated fiscal year. This mainly reflected a ¥481 million increase in notes and accounts payable-trade.
Total net assets at the end of the first half of the period under review were ¥23,136 million, an increase of ¥2,107 million from theend of the previous consolidated fiscal year. This was largely attributable to an increase of ¥1,848 million due to the posting ofinterim net profit attributable to owners of parent company, an increase of ¥699 million in valuation difference on available-forsale securities due to the rising market value of the Company's investment securities, although there was a drop of ¥508 million
resulting from the use of retained earnings for dividend payment.
(ii) Cash Flow
The Company Group's total cash and cash equivalents as of the end of the first half of the period under review (June 30, 2024) was¥20,492 million, an increase of ¥6,638 million from the end of the previous consolidated fiscal year (December 31, 2023). The
status of each cash flow and contributing factors are as follows.
(Cash flows from operating activities)
Net cash gained from operating activities was ¥7,393 million (compared to ¥5,811 million gained in the same period of the previousyear).
In addition to the recording of ¥2,712 million in net profit before taxes, a ¥4,993 million decrease in trade receivables and contract
assets and a ¥481 million increase in trade payables contributed to an overall increase of ¥7,393 million in operating activities.
(Cash flows from investing activities)
Net cash used in investing activities was ¥215 million (compared to ¥288 million used in the same period of the previous year).
This was mainly due to expenditures of ¥77 million for the purchase of property, plant, and equipment as well as a decrease of ¥71
million in connection with the placement of restricted deposits.
(Cash flows from financial activities)
Net cash used in financial activities was ¥539 million (compared to ¥1,160 million used in the same period of the previous year).
This mainly consisted of ¥508 million in cash dividends paid.
(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.

-3-

2. Consolidated Interim Financial Statements and Main Notes(1) Consolidated Interim Balance Sheet(Millions of yen)
As of December 31, 2023
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract assets
Merchandise and finished goods
Work in process
Costs on construction contracts in progress
Raw materials and supplies
Other
Allowance for doubtful accounts

As of June 30, 2024

14,497
14,273
1,285
371
130
536
270
(1)

21,207
9,279
1,154
405
96
573
245
(1)

31,36432,961

3,801(2,130)3,844(2,183)

Buildings and structures, net

1,671

1,661

Machinery, equipment and vehicles
Accumulated depreciation

215
(175)

216
(181)

40

35

767
(648)

790
(666)

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

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

119

124

1,356
3
34
(4)

1,356
–
34
(7)

29

26

3,220

3,204

95

98

Investments and other assets
Investment securities
Insurance funds
Investment property, net
Deferred tax assets
Other
Allowance for doubtful accounts

5,889
429
646
58
318
(104)

6,897
454
637
13
292
(104)

Total investments and other assets

7,237

8,190

10,553

11,493

41,91744,455Land
Construction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets

Total non-current assets
Total assets-4-

(Millions of yen)
As of December 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Accrued consumption taxes
Contract liabilities
Provision for loss on construction contracts
Other
Total current liabilities
Non-current liabilities
Deferred tax liabilities
Provision for retirement benefits for directors (and otherofficers)
Retirement benefit liability
Other

As of June 30, 2024

12,588
1,010
80
838
275
3,132
25
1,049

13,069
1,010
32
784
271
2,972
5
967

19,00019,113

1,247

1,630

158

158

260

219

222

196

1,889

2,205

Total liabilities

20,88921,318

Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares

1,001
844
17,814(1,943)

1,001
863
19,148(1,884)

17,717

19,128

3,294
17

3,993
14

Total non-current liabilities

Total 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-

3,311

4,007

21,02823,136

41,91744,455

(2) Consolidated Interim Statements of Income and Consolidated Interim Statements ofComprehensive Income
Consolidated Interim Statements of Income (cumulative)(Millions of yen)Six months ended
June 30, 2023

Six months ended
June 30, 2024

Net sales
Cost of sales

20,59914,455

19,10012,878Gross profit

6,143

6,221

Selling, general and administrative expenses

3,453

3,611

Operating profit

2,690

2,610

0
62
48
15

0
64
51
16

126

132

Non-operating income
Interest income
Dividend income
Rental income from investment property
Other
Total non-operating income
Non-operating expenses
Interest expenses

2

3

Rental expenses on real estateCommission expenses
Foreign exchange losses
Other

26
24
7
1

22
–
3
0

Total non-operating expenses

62

29

2,754

2,712

0

0

0

0

Profit before income taxes

2,754

2,712

Income taxes - current
Income taxes - deferred

853
(8)

743
120

Total income taxes

845

864

Profit

1,908

1,848

Profit attributable to owners of parent

1,908

1,848

Ordinary profit
Extraordinary losses
Loss on disposal of non-current assets
Total extraordinary losses-6-Consolidated Interim Statements of Comprehensive Income (cumulative)(Millions of yen)Six months ended
June 30, 2023
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests-7-

Six months ended
June 30, 2024
1,908

1,848

562
4

699
(3)

567

696

2,475

2,544

2,475

2,544

–

–

(3) Consolidated Interim Statement of Cash Flow
(Millions of yen)Six months ended
June 30, 2023
Cash flows from operating activities
Profit before income taxes
Depreciation
Share-based payment expenses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for loss on construction
contracts
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Loss (gain) on disposal of non-current assets
Decrease (increase) in trade receivables and contract assets
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in contract liabilities
Increase/decrease in consumption taxes payable/consumption
taxes refund receivable
Other, net
SubtotalInterest and dividends received
Interest paid
Proceeds from insurance income
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Net decrease (increase) in forced deposits
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale and redemption of investment securities
Purchase of investment property
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Repayments of long-term borrowings
Dividends paid
Repayments of lease liabilities
Purchase of treasury shares
Proceeds from disposal of treasury shares
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period-8-

Six months ended
June 30, 2024

2,754
114
19
(0)

2,712
125
19
(0)

(6)

(19)

21
(62)
2
0
(1,198)
141
3,212
848

(44)
(64)
3
0
4,993
93
481
(159)

201

(4)

29
6,078
62
(2)
–
(326)
5,811

36
8,172
64
(3)
13
(852)
7,393

(63)
(38)
(38)
(199)
100
–
(48)
(288)

(71)
(77)
(21)
–
–
(9)
(36)
(215)

(44)
(516)
(3)
(627)
31
(1,160)
4,362
10,965
15,327

(48)
(508)
(6)
–
22
(539)
6,638
13,854
20,492

(4) Notes on the Consolidated Interim Financial Statements(Notes on Segment data, etc.)
Ⅰ First Half of Fiscal Year 2023 (January 1, 2023 to June 30, 2023)
1. Net sales and profit/loss of each reporting segment and breakdown of revenue(In millions of yen)Amount on
consolidated
Adjustment interim(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

1,761
2,313
4,074
4,074

9,868
473
10,342
10,342

822
5,359
6,182
6,182

12,451
8,147
20,59920,599-12,451
8,147
20,59920,599

-

-

-

-

-

-

Total
4,074
10,342
6,182
20,59920,599Segment profit
897
1,525
825
3,249
(559)
2,690
(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 consolidated interim statements of income.
2. Impairment loss or goodwill on non-current assets of the reporting segments
Not applicable.
Ⅱ First Half of Fiscal Year 2024 (January 1, 2024 to June 30, 2024)
1. Net sales and profit/loss of each reporting segment and breakdown of revenue(In millions of yen)Amount on
consolidated
Adjustment interim(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

1,815
1,656
3,471
3,471

9,646
261
9,908
9,908

1,141
4,578
5,719
5,719

12,603
6,496
19,10019,100-12,603
6,496
19,10019,100

-

-

-

-

-

-

Total
3,471
9,908
5,719
19,10019,100
Segment profit
748
1,700
759
3,208
(597)
2,610
(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 consolidated interim statements of income.
2. Impairment loss or goodwill on non-current assets of the reporting segments
Not applicable.

-9-(Note on significant change in shareholders’ equity)
Not applicable.
(Note on going concern assumption)
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 the assets and liabilities of the Trust are posted as part of the Company's consolidated interim
balance sheet and the consolidated interim statement of cash flows.
The number and book value of the Company shares (of treasury stock) held by the Trust were 30,100 shares and ¥74 million in theprevious consolidated fiscal year and 15,500 shares and ¥38 million in the interim consolidated accounting period under review.

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