Year Ended December 31, 2022

Supplementary Materials
for Financial Results

February 10, 2023
EBARA JITSUGYO CO., LTD.

Table of Contents
1. FY2022 Summary
FY2022 Summary

2. FY2022 Financial Results Overview
FY2022 Results Highlights
FY2022 Financial Summary
FY2022 Results Trends by Segment
Results by Segment (Year-on-Year)
Trends in Net Sales, Gross Profit, Orders Received, andOrders Backlog

4. Shareholder Returns
Dividends
Treasury Shares

5. Progress of Medium-Term Management Plan
[EJ2024]
Status of Net Sales and Operating Profit
Management Indicators and Numerical Targets
Progress and Results of Initiatives
Investment Strategy (2022－2024)

6. Reference Materials
3. FY2023 Business Plan
FY2023 Business Plan
Business Plan Assumptions (by segment)
Trends and Strategies by Segment
Demand Trends for Infectious Diseases Control Equipment

Corporate Philosophy / Management Concept
Our BusinessHistory
Business Overview by Segment
Results Trends (past 10 years)
Performance (annual)© EBARA JITSUGYO CO., LTD.

2

FY2022 SummaryMarket condition⚫ Demand for renewal of waterworks and sewage facilities, as well as demand for disaster prevention and mitigation, remains strong⚫ Private capital investment is recovering⚫ Delays in construction progress and product shipments due to shortages in the supply of materials and equipment⚫ Demand for "infectious diseases control equipment," which drove performance in the previous fiscal year, has settled down

Financial Highlights for FY2022⚫ Net sales were 30.2 billion yen and operating profit was 2.7 billion yen, and both sales and profit decreased⚫ Delays in recording orders and sales due to shortages in the supply of materials and equipment⚫ Significant increase in the orders backlog due to delay in recording sales

FY2023 Business Plan
⚫ Expect both sales and profit to increase, with net sales of 35.0 billion yen and operating profit of 3.5 billion yen⚫ Net sales will increase due to progress of high-level orders backlog⚫ Will maintain profit margin by absorbing price increases in raw materials and other costs through price pass-throughs and cost-reduction efforts

Shareholder Returns⚫ Maintained dividend amount despite the decrease in profit, prioritizing stable dividends (payout ratio: 48%)
⚫ Repurchased and canceled treasury shares as part of shareholder returns© EBARA JITSUGYO CO., LTD.

3

FY2022
Financial Results Overview© EBARA JITSUGYO CO., LTD.

FY2022 Results Highlights

30.2 bn yen (- 6.9%)

Orders received

34.6 bn yen (- 1.1%)

Operating Profit

2.7 bn yen (- 30.8%)

Orders backlog

29.2 bn yen (+ 15.8%)

Profit

2.1 bn yen (- 31.4%)

Net Sales

Dec. 2020(Unit: mn yen)

* Figures in parentheses are year-on-year changes

Dec. 2021

Ratio (%)

Dec. 2022

Ratio (%)

Year-on-Year

Ratio (%)

Change (%)

ChangeNet Sales

30,250100.0

32,485100.0

30,229

100.0

- 6.9

- 2,256

Gross Profit

9,010

29.8

10,489

32.3

9,282

30.7

- 11.5- 1,207

SG&A expenses

5,795

19.2

6,507

20.0

6,525

21.6

+ 0.3

+ 18

Operating Profit

3,214

10.6

3,982

12.3

2,756

9.1

- 30.8- 1,226

Ordinary Profit

3,363

11.1

4,110

12.7

2,929

9.7

- 28.7- 1,181

Profit

2,342

7.7

3,159

9.7

2,169

7.2

- 31.4- 990

Orders received

34,000-35,014-34,643

-

- 1.1

- 371

Orders backlog

22,727-25,256-29,250-+ 15.8+ 3,994© EBARA JITSUGYO CO., LTD.

5

FY2022 Financial SummaryMarketcondition⚫ Demand for "infectious diseases control equipment," which drove performance in FY2021, has settled down (a major
factor behind the decrease in sales and profit compared to the previous year).
⚫ Demand for renewal of waterworks and sewage facilities and disaster prevention/mitigation remained strong. In
addition, private capital investment, which had fallen due to the COVID-19 pandemic, is recovering.
⚫ Shortages in the supply of materials and equipment caused delays in construction progress and product shipments,and local governments placed orders behind schedule.
⚫ Costs of materials and equipment increased due to supply chain disruption.

Net Sales
Year-on-Year-

2.25 bn yen (- 6.9%)⚫ Net sales decreased due to delays in construction
progress and product shipments caused by shortages
in the supply of materials and equipment as well as
raw materials

Gross Profit⚫ Decrease in gross profit due to significant decrease in
net sales of infectious diseases control equipment

Year-on-Year-⚫ Sales of infectious diseases control equipment
declined sharply as demand from COVID-19 hospitals
has settled down

1.2 bn yen (- 11.5%)
Operating Profit⚫ Decline in gross profit margin due to higher raw
material prices in Engineering business-

Orders received⚫ Solid demand in Manufacturing and Tradingbusinesses, and orders received increased

Year-on-Year⚫ Engineering business declined due to delay intiming of orders from local governments

0.37 bn yen (- 1.1%)
Orders backlog
Year-on-Year+ 3.99 bn yen (+ 15.8%)⚫ Shortages in the supply of materials and equipment
as well as raw materials caused delays inconstruction progress and product shipments,
resulting in an increase in the orders backlog⚫ In the private market, some of the orders are being
received ahead of schedule in anticipation of longer
delivery times⚫ Operating profit also declined due to a decrease ingross profit

Year-on-Year-

1.22 bn yen (- 30.8%)© EBARA JITSUGYO CO., LTD.

6

FY2022

Results Trends by Segment
Year-on-Year
Dec. 2020

Dec. 2021

Dec. 2022(Unit: mn yen)

Manufacturing(environmentrelated)

Engineering(water-treatmentrelated)

Trading (fluid
machinery-related)

Change (%)

ChangeOrders received

8,972

7,240

7,626

+5.3

+386

Net Sales

7,456

8,563

6,288

- 26.6- 2,275

Gross Profit

3,011

3,803

2,580

- 32.2- 1,223

Orders received

15,74817,435

16,349- 6.2- 1,086

Net Sales

13,155

14,683

14,408

- 1.9

- 274

Gross Profit

3,752

4,403

4,234

- 3.8

- 168

Orders received

9,278

10,338

10,667+3.2+329

Net Sales

9,639

9,238

9,532

+3.2

+294

2,246

2,281

2,467

+8.1

+185

Gross Profit© EBARA JITSUGYO CO., LTD.

7

Results by Segment (Year-on-Year)
Manufacturing (environment-related)(Unit: mn yen)Orders received
Field

Orders received

Measuring+ 0.38 bn yen

7,240

7,626

Dec. 2021

Dec. 2022(+ 5.3%)

Energy-saving/creating
Deodorizing
Water treatment plants

Net Sales- 2.27 bn yen

MedicalChange⚫ Steady demand for ozone monitors for semiconductor manufacturing
facilities and increased demand for ozone monitors for water
purification plants+191⚫ Increased orders for storage batteries at the end of the period+381⚫ Stable demand trend for deodorizer replacements+67⚫ Increased orders for fisheries plant equipment+118⚫ Demand for infectious diseases control equipment for COVID-19
hospitals has settled down

- 370

Net Sales
8,563
6,288

(- 26.6%)
Dec. 2021

Dec. 2022(Unit: mn yen)

Field

- 164

Energy-saving/creating⚫ Although progress is behind schedule, sales of storage batteries
increased+47

Deodorizing⚫ Contribution from bio-deodorizing and bio-desulfurization equipment
projects+229

Water treatment plants⚫ Increase in sales of fisheries plant equipment offset the reactionary
decline in sales of sewerage plant facilities+27

Medical⚫ Demand for infectious diseases control equipment for COVID-19
hospitals has settled down

41.0%

3,803
Dec. 2021

2,580
Dec. 2022

Change⚫ Production and shipments of ozone monitors were delayed anddecreased due to a shortage of parts supply

44.4%- 1.22 bn yen

Change factors

Measuring

Gross Profit Margin

Gross Profit(- 32.2%)(Unit: mn yen)

Change factors- 2,413Gross Profit⚫ Decrease in gross profit due to lower net sales in the medical segment,
and overall gross profit margin of the segment also declined© EBARA JITSUGYO CO., LTD.

8

Results by Segment (Year-on-Year)
Engineering (water-treatment-related)(Unit: mn yen)Orders received- 1.08 bn yen

17,435

16,349(- 6.2%)
Dec. 2021⚫ Delays in construction
progress due toprolonged delivery ofmaterials and equipment
14,683

14,408(- 1.9%)10,667

Dec. 2021

Dec. 2022(+3.2%)Net Sales+ 0.29 bn yen

Dec. 2022

Gross Profit Margin

30.0%- 0.16 bn yen(- 3.8%)+ 0.32 bn yen

10,338

9,238

9,532

Dec. 2021

Dec. 2022(+3.2%)
Dec. 2021

Gross Profit(Unit: mn yen)Orders received

Dec. 2022

Net Sales- 0.27 bn yen⚫ Although demandremained strong, there
were delays in the timingof orders placed by local
governments due to thelack of supply ofmaterials and equipment

Trading (fluid machinery-related)

29.4%⚫ Decline in gross profit
margin due to higher
raw material prices

Gross Profit Margin

Gross Profit+0.18 bn yen
4,403

4,234

Dec. 2021

Dec. 2022(+8.1%)

24.7%

25.9%

2,281

2,467

Dec. 2021

Dec. 2022⚫ Private capital investment
is recovering⚫ Some of the orders
received ahead ofschedule in anticipation of
longer delivery times⚫ Although sales exceeded
the same period in theprevious year, there were
delays in the recording ofsales in some cases due todelays in deliveries ofequipment⚫ Increase in gross profit
margin through selective
order acceptance,
improved operating
efficiency, etc.

© EBARA JITSUGYO CO., LTD.

9

Trends in Net Sales, Gross Profit, Orders Received, and Orders Backlog
Manufacturing

Engineering

Trading(Unit: mn yen)

Trend in Net Sales

29,295 28,431 30,250
5,397

5,296

7,456

32,485
8,563

Trend in Orders received

34,000 35,014 34,643

30,2296,288

27,500 28,220

8,972

5,624

5,328

11,883

12,072

15,748

7,240

7,626

17,435

16,34914,167

12,544

13,155

14,683

14,408

9,729

10,590

9,639

9,238

9,532

9,992

10,818

9,278

10,338

10,667

Dec. 2018

Dec. 2019

Dec. 2020

Dec. 2021

Dec. 2022

Dec. 2018

Dec. 2019

Dec. 2020

Dec. 2021

Dec. 2022

Trend in Gross Profit

Trend in Orders backlog

10,489
7,557

7,621

3,803
3,011

2,108

29,250

9,282

9,010

2,580

2,105

22,727
19,190 18,978
2,996

3,621

3,355

3,752

4,403

1,827

2,159

2,246

2,281

Dec. 2018

Dec. 2019

Dec. 2020

Dec. 2021

4,234

25,256

4,511

3,221
4,544

3,028
16,76018,384

11,886

11,41514,008

2,467

4,307

4,534

4,174

5,274

6,354

Dec. 2022

Dec. 2018

Dec. 2019

Dec. 2020

Dec. 2021

Dec. 2022© EBARA JITSUGYO CO., LTD.

10

FY2023

Business Plan

© EBARA JITSUGYO CO., LTD.

FY2023 Business Plan
Increasesales andprofits⚫ Anticipate an increase in sales due to progress and shipments of orders received in the previous period and earlier. (The orders
backlog at the beginning of the period is expected to increase by 4.0 billion yen from the previous period.)⚫ Plan to increase orders by steadily capturing demand in the energy-saving and energy-creating sectors and the fisheries sector,
and from local governments for equipment renewal.
⚫ Profit margin is expected to remain unchanged from the previous year, as price increases in raw materials and other costs will beabsorbed by price pass-throughs and cost-reduction efforts.
⚫ Plan to increase SG&A expenses due to higher employee benefits on considering inflation and increased R&D-related costs
targeting business growth.

Dec. 2021 Results

Dec. 2022 Results

Ratio (%)

Ratio (%)

(Unit: mn yen)Dec. 2023 Plan

Year-on-Year

Ratio (%)

Change (%)

ChangeNet Sales

32,485100.0

30,229100.0

35,000100.0+ 15.8+ 4,771

Gross Profit

10,489

32.3

9,282

30.7

10,50030.0+ 13.1+ 1,218

SG&A expenses

6,507

20.0

6,525

21.6

7,000

20.0

+ 7.3

+ 475

Operating Profit

3,982

12.3

2,756

9.1

3,500

10.0

+ 27.0+ 744

Ordinary Profit

4,110

12.7

2,929

9.7

3,650

10.4

+ 24.6+ 721

Profit

3,159

9.7

2,169

7.2

2,600

7.4

+ 19.9+ 431

Orders received

35,014-34,643-36,000-+ 3.9+ 1,357

Orders backlog

25,256-29,250-30,250-+ 3.4+ 1,000

Dividend per share

85 yen-85 yen-85 yen---*Figures for dividend per share have been adjusted retroactively for the 1:2 stock split effective July 1, 2021.
*Dec. 2022 Dividend will be proposed to the Annual General Meeting of Shareholders to be held in March 2023

© EBARA JITSUGYO CO., LTD.

12

Business Plan Assumptions (by segment)
Manufacturing

Manufacturing (environment-related) Plan
Gross Profit⚫ Shipment and sales booking of ordered products delayed due to shortage of parts
supply⚫ Profit amount is expected to increasein line with the higher net sales⚫ Full-scale development of storage battery business, which had been delayed due tosupply chain disruptions⚫ Absorb impact of raw material pricehikes by price pass-throughs andcost-reduction efforts

Engineering (water-treatment-related) Plan
Orders received⚫ Demand for waterworks andsewerage renewal projects anddisaster prevention and mitigation
remains strong

Gross Profit⚫ Sales increase due to progress andshipments of projects ordered in theprevious period and earlier⚫ Plan to secure profit margin at thesame level as the previous year andincrease profit⚫ Private capital investment isrecovering⚫ Sales increase due to progress andshipments of projects ordered in theprevious fiscal year and earlier⚫ Profit margin is expected to decline
due to higher procurement prices,
although some of the cost will bepassed on to selling prices

Change (%)

Change

8,000

-

+ 4.9

+ 374

Net Sales

6,288

7,900

100.0

+ 25.6+ 1,612Gross Profit

2,580

3,320

42.0

+ 28.7+ 740

Engineering

Dec. 2022

Dec. 2023 Plan

Year-on-Year

Ratio (%)

Change (%)

ChangeOrdersreceived

16,34917,000

-

+ 4.0

+ 651

Net Sales

14,40815,600

100.0

+ 8.3

+ 1,192

Gross Profit

4,234

4,600

29.5

+ 8.6

+ 366

Dec. 2022

Dec. 2023 Plan

(mn yen)

Gross Profit

Ratio (%)

7,626

Trading

Net Sales

Year-on-Year

Ordersreceived(mn yen)

Net Sales

Trading (fluid machinery-related) Plan
Orders received

Dec. 2023 Plan

(mn yen)

Orders received・Net Sales⚫ Growth in the fisheries business centered on land-based aquaculture facilities

Dec. 2022

Year-on-Year

Ratio (%)

Change (%)

ChangeOrdersreceived

10,667

11,000

-

+ 3.1

+ 333

Net Sales

9,532

11,500100.0+ 20.6+ 1,968

Gross Profit

2,467

2,580

22.4

+ 4.6

+ 113

© EBARA JITSUGYO CO., LTD.

13

Trends and Strategies by Segment Manufacturing (environment-related)
Advance niche strategies and expansion of business domains to be the core of growthMarketcondition⚫ Uncertainty about future demand in the semiconductor industry⚫ Increase in demand for fisheries plant equipment, especially for land-based aquaculture facilities⚫ Increase in demand for storage batteries in anticipation of a decarbonized society⚫ Increase in demand for new products that contribute to a society that coexists with infectious diseases

Orders received(Unit: mn yen)

8,972
Measuring
Energy-saving/creating

7,240

7,626

Net Sales

8,000

5,328

(Unit: mn yen)

Gross Profit Margin

7,456

8,563

7,900
6,288

5,296
44.4%

Deodorizing
Water treatment plants

39.7%

40.4%

Dec. 2019

Dec. 2020

41.0%

42.0%

MedicalDec. 2019

Dec. 2020

Dec. 2021

Dec. 2022

Dec. 2023
Plan

Ourstrategy

Dec. 2021

Dec. 2022

Dec. 2023
Plan

1. Launch new products

2. Brush-up existing product lines

3. Strengthen maintenance service⚫ Full-scale entry into the ZEB market withcertification of storage batteries⚫ Launch of infectious diseases control equipment
in response to coexisting with COVID-19⚫ Further improve profitability of proven products⚫ Strengthen competitiveness in a way that meetsthe needs of "advanced processing," "energy
saving," "AI/IoT," "environmental load reduction,"and "safety and security."⚫ Cultivate maintenance services that are resilientto the external environment as a revenue base

© EBARA JITSUGYO CO., LTD.

14

Trends and Strategies by Segment Engineering (water-treatment-related)
Develop business domains based on both the customer and product axes
Marketcondition⚫ Increase in demand for renewal of waterworks and sewage facilities⚫ Growing demand for disaster prevention and mitigation due to frequent natural disasters⚫ Stagnation of construction projects due to lack of supply of materials and equipment, etc.
⚫ Rising prices of resources and raw materials

Orders received(Unit: mn yen)

15,74817,435

16,349Net Sales

17,00012,544

12,072(Unit: mn yen)

Gross Profit Margin

13,155

15,60014,683

14,408

30.0%

29.4%

29.5%

Dec. 2022

Dec. 2023

28.5%
26.7%

Dec. 2019

Dec. 2020

Dec. 2021

Dec. 2022

Dec. 2023

Dec. 2019

Plan

Our
strategy

Dec. 2020

Dec. 2021

Plan

1. Selective order acceptance,
2. Strengthen sales activities in new
improvement of estimating techniques,
entry areas
and thorough cost awareness3. Respond to demand for disasterprevention and mitigation⚫ Strengthen cooperation with subcontractors to
improve construction capabilities and pricecompetitiveness⚫ Provide technologies and products to meet thedemand for disaster prevention and mitigation
based on the Fundamental Plan for National
Resilience⚫ Expand into new areas, mainly in Hokkaido and
Hokuriku© EBARA JITSUGYO CO., LTD.

15

Trends and Strategies by Segment Trading (fluid machinery-related)
Steadily reinforce the revenue base that has been a foundation since the foundation
Marketcondition⚫ Private capital investment is recovering⚫ Price pass-throughs are possible despite the impact of equipment price hikes
Net Sales

Orders received(Unit: mn yen)

10,818
9,278

10,338

10,667

11,000

Net
Sales
売上総利益率Gross Profit Margin

10,59020.4%

Dec. 2019

Dec. 2020

Dec. 2021

Dec. 2022

Dec. 2023

Dec. 2019(Unit: mn yen)

11,500
9,639

9,238

9,532

23.3%

24.7%

25.9%

Dec. 2020

Dec. 2021

Dec. 2022

Plan

Our
strategy

22.4%

Dec. 2023
Plan

1. Strengthen collaboration with general contractors,
subcontractors, and manufacturers

2. Reach out to a diverse customer base

⚫ Strengthen sales activities from the design stage and improve costcompetitiveness⚫ Reinforce precise responses and proposal-based sales⚫ Acquire new customers by leveraging our extensive delivery record© EBARA JITSUGYO CO., LTD.

16

Demand Trends for Infectious Diseases Control Equipment
Trends⚫ Demand for negative pressure equipment for general hospitals has settled down
⚫ Scope of subsidies for infectious diseases control equipment has been reduced

MedicalDec. 2021⚫ Government policy to move the classification of COVID-19 infections fromequivalent to category 2 to category 5 has been determined⚫ Parts supply shortages continue, but the negative impact is being minimized⚫ Demand for infectious diseases control equipment remains high compared to that
before the COVID-19 pandemic, but both orders and sales are down from theprevious year and the two previous years when there was special demand

Year-on-Year
Dec. 2022(mn yen)Dec. 2023
Plan

Change(%)

ChangeOrdersreceived

1,476

1,106

1,000

- 9.6

- 106

Net Sales

3,402

989

1,000

+ 1.1

+ 11

⚫ Launch of new equipment addressing the transition to category 5 COVID-19 infections and post-pandemic.

⚫ Expand maintenance and service business by leveraging accumulated delivery volume⚫ Enter the disaster medical field⚫ Maintain a stable supply of products by optimizing procurement management

Simple negative pressure equipment
ACE-2000

Indoor ozone sanitation equipment EFD-1000

ACE series⚫ Triple structure of pre-filter, UV lamp, and enzyme HEPA
filter reduces the risk of airborne infection in the
installation space⚫ Two functions: air purification and ozone gas fumigation⚫ Slimmed down by approximately 40% in volume from theconventional ACE-5000, making it more applicable tosmall spaces such as examination rooms and small
hospital rooms⚫ Capable of sterilizing an entire room by ozone gas
fumigation at night (when unoccupied)⚫ Retrofittable, existing rooms can be easily converted to anegative pressure environment

New launch⚫ Air purification with HEPA filter + normal temperaturecatalyst during daytime (when manned)⚫ Suitable size for small- to medium-size clinics《ACE-2000》《EFD-1000》© EBARA JITSUGYO CO., LTD.

17

Shareholder Returns© EBARA JITSUGYO CO., LTD.

Dividends
Basic policy

Maintain stable and continuous profit
distribution with a target payout ratio

Dividends

of 35%

Dec. 2020
ResultDec. 2021
ResultDec. 2022
Plan

Dec. 2023
Forecast

Annual55.0 yen85.0 yen85.0 yen85.0 yenInterim15.0 yen

37.5yen42.5yen42.5yenYear-end

40.0 yen

47.5yen42.5yen42.5yen

29.8%

33.6%

48.0%

40.0%

Payout ratio
Maintain dividend by prioritizing stability,
despite lower profit in FY2022*Dec. 2022 Dividend will be proposed to the Annual General Meeting of Shareholders to be held in March 2023
*Figures for dividend per share have been adjusted retroactively for the 1:2 stock split effective July 1, 2021

Trends in annual dividends per share
Dividend
配当金
(yen)
(円)

Payout
配当性向
ratio(%) (%)

48.0%
40.0%

35.4%

35.2%
30.8%

29.3%
24.8%

24.9%

26.2%

29.8%

33.6%
85

55
20

22.5

22.5

22.5

25

30

30

Dec. 2013

Dec. 2014

Dec. 2015

Dec.2016

Dec. 2017

Dec. 2018

Dec. 2019

Acquisition of treasury shares

270 mn yen

Dec. 2020

Dec. 2021

85

Dec. 2022

85

Dec. 2023
Plan

570 mn yen 1,000 mn yen *320 mn yen *680 mn yen*Resolved to repurchase treasury shares with a repurchase period from November 2022 to October 2023 and a maximum repurchase price of 1,000 million yen.
680 million yen, which is the maximum acquisition price of 1,000 million yen minus the total acquisition price of 320 million yen for FY2022, is stated as theplanned acquisition price for FY2023© EBARA JITSUGYO CO., LTD.

19

Treasury Shares
Basic policy

Acquisition of treasury shares

As one way of returning profits to shareholders, flexibly implement share buybacks,
taking into account capital needs and stock price levels(1) Description of the resolution adopted by the Board of Directors in November 2022
Total acquisition cost

1,000 million yen (maximum)

Total number of shares to beacquired

500,000 shares (maximum)
Percentage of total number of shares issued (excluding treasury shares)
4.1%

Acquisition period

November 2022 to October 2023

(2) Treasury shares acquired up to the end of December 2022 based on the above resolution

Cancellation of treasury shares

Total acquisition cost

320 million yen

Total number of shares acquired

143,300 shares

Number of shares cancelled

Percentage of total number of shares issued and outstanding before cancellation

500,000 shares
3.7%
Date of cancellation

November 30, 2022

© EBARA JITSUGYO CO., LTD.

20

Progress of Medium-Term Management Plan [EJ2024]© EBARA JITSUGYO CO., LTD.

Medium-Term Management Plan [EJ2024]

Status of Net Sales and Operating Profit
Aim to achieve operating profit of 4.4 billion yen in the final year of the medium-term management plan by increasing
sales and profit in FY2023, against the backdrop of the high orders backlog,
although the first year of the medium-term management plan started below plan due to the market condition.
Medium-Term Management Plan [EJ2024]
40,000(Unit: mn yen)

■ Net Sales

8000

38,000■ Operating Profit■ Operating Profit Margin

7000

35,00035,00032,48530,00029,29530,25028,431

12.3%

7.3%

7.1%

30,229

5000

11.6%

10.6%

10.0%

3,982
25,000

6000

9.1%

4,400

3,500

3,214

3000

2,756
20,000

2,139

4000

2000

2,024
1000

0

15,000Dec. 2018

Dec. 2019

Dec. 2020

Dec. 2021

Dec. 2022

Dec. 2023
Plan

Dec. 2024
Plan© EBARA JITSUGYO CO., LTD.

22

Medium-Term Management Plan [EJ2024]

Management Indicators and Numerical Targets⚫ Gross Profit Composition Ratio of Manufacturing(environment-related): 50% or moreManagement
strategy

Aiming for dramatic growththrough expansion of
Manufacturing(environment-related)

Management
indicators⚫ Gross Profit margin: 30% or more

⚫ Operating Profit margin: 10% or more
⚫ ROE: 13% or more
⚫ R&D Investment: 2.5 billion yen or more
⚫ Growth Investment: 2.5 billion yen or more

(Unit: mn yen)Dec. 2021
ResultDec. 2022
ResultDec. 2023
Result Forecast

Dec. 2024
Plan

Net Sales

32,48530,22935,00038,000Gross Profit

10,489

9,282

10,50011,400

32.3

30.7

30.0

30.0

3,982

2,756

3,500

4,400

Operating Profit Margin (%)

12.3

9.1

10.0

11.6

ROE (%)

17.6

11.6

13.8

13.3

Gross Profit Margin (%)
Operating Profit© EBARA JITSUGYO CO., LTD.

23

Medium-Term Management Plan [EJ2024]

Progress and Results of Initiatives in FY2022
Although the results fell short of the initial plan due to the market condition,
we steadily achieved results in accordance with the basic policy.
Basic policy

Progress and results of initiatives⚫ Respond to increase in demand from the semiconductor industry

Creation of new
businesses/
Acceleration of new
product development⚫ Explore unmet needs in the storage battery market and expand the product lineup⚫ Launch new products for a society coexisting with infectious diseases⚫ Develop new products related to disaster prevention (manhole pump start-up
support system in the event of a disaster power outage)⚫ Develop and launch fisheries plant equipment that contributes to advanced land-based

aquaculture systems

Expansion of businessdomains⚫ Acquire orders in response to demand for disaster prevention and disastermitigation based on the Fundamental Plan for National Resilience⚫ In the Engineering business, enhance the product lineup from the increase in OEM

products

Establishment of stablerevenue base

⚫ Improve profitability of existing businesses through cost reductions⚫ Maintain maintenance net sales of own products as planned© EBARA JITSUGYO CO., LTD.

24

Investment Strategy (2022－2024)[ Results for FY2022 ]R&D investment

2.5~3.0 bn yen[ 0.74 bn yen ]Expected R&D fields⚫ Product development in the energy saving and creating field⚫ Entry into sensor business based on ozone and optical measurement
technology⚫ Aquaculture system development supporting next-generation fisheriesbusiness⚫ Highly efficient water treatment system⚫ Product development toward a decarbonized society⚫ Water treatment systems utilizing IoT and AI

Capital investment

Operating CF
generation

8.8 bn yen[ 1.6 bn yen ]Approx.

GrowthInvestment

2.5~4.5bn yen⚫ Productivity improvements through IT⚫ Improvements to the work environment (work style reform)⚫ Enhance and strengthen R&D facilities⚫ Invest in the maintenance of business infrastructure

1.5~2.0 bn yen
0.27 bn yen ][M&A, etc.
⚫ Capture of new products and technologies (including venture
investments, etc.)⚫ Expand business domains and areas of Engineering business⚫ Expand area of Trading business1.0~2.5 bn yen[- ]Acquisition of treasury shares[ *0.32 bn yen ]Shareholder
Returns

Dividends
Consolidated payout ratio[ 1.11 bn yen ] [ FY2022*The Board of Directors approved a resolution to repurchase its own shares with a repurchase period from November 2022 to October 2023 and a maximum
repurchase price of 1.0 billion yen, and the repurchase is currently ongoing.

35%
48% ]

© EBARA JITSUGYO CO., LTD.

25

Reference Materials© EBARA JITSUGYO CO., LTD.

Corporate Philosophy and Management Concept of EBARA JITSUGYO
Corporate Philosophy

Striving to provide a wholesome human environment
for mankind and society
Restoring the beauty of our global environment is a crucial issue
facing humankind in the 21st century.
Ebara Jitsugyo has a long track record as an expert inenvironmental protection technologies, even from before
environmental problems became a social concern. We arededicated to being a leader in the environmental sector, which
has unlimited growth potential.
Management Concept

Corporate value through profit growth = Increase shareholder value© EBARA JITSUGYO CO., LTD.

27

Our business
Manufacturing (environment-related)
The development, manufacture, and sales of environmentrelated products and facilities

20.8
%

31.5
%
Net Sales⚫ Highest-focus business with our own products⚫ Highly profitable, aiming for 50% in gross profit

Year ended
December 31, 2022

30,229 mn yen

The three businesssegments

47.7%

Engineering (water-treatment-related)
The design, construction, and maintenance ofwaterworks and sewerage⚫ Steady demand for renewals and repairs, and steadydisaster-prevention needs⚫ Business domains are being explored and expanded

27.8
%

26.6
%
Gross profit

Trading (fluid machinery-related)Year ended
December 31, 2022

Sales of pumps, blowers, air conditioners etc., mostly
Ebara products, as an agent⚫ Focuses on sales of pumps, a major product, as well as
new products⚫ Caters to redevelopment projects
Note: “Ebara products” implies various products of Ebara Corporation (Ebara Group).
There is no capital relationship between Ebara Corporation (Ebara Group) and Ebara Jitsugyo.

9,282 mn yen

45.6%© EBARA JITSUGYO CO., LTD.

28

History
Responding to social needs, wehave expanded our business,water and air

settingas our themes

1976
startedManufacturing (environment-related)
The development, manufacture, and sales ofenvironment-related products and facilities

We have developed our own products to address niche andspecialized customer issues

startedEngineering (water-treatment-related)
The design, construction, and maintenance ofwaterworks and sewerage

We started to do design, construct and maintenance work for waterworks
and sewerage to answer the diversifying needs relating to them2022: Transitioned to the Prime Marketof the Tokyo Stock Exchange
2004: Listed on the first sectionof the Tokyo Stock Exchange

1946
started

Trading (fluid machinery-related)
Sales of pumps, blowers, air conditioners
etc., mostly Ebara products, as an agent

We started this business to support the establishment of
infrastructure in Japan during its post-war recovery

2001: Listed on the second sectionof the Tokyo Stock Exchange

Image of sales changing

1956

1998: Registered with JASDAQ© EBARA JITSUGYO CO., LTD.

29

Business overview by segment: Manufacturing (environment-related)

Manufacturing
メーカー事業 (環境関連)(environment-related)
環境関連製品・設備のThe開発・製造・販売
development, manufacture, andsales of environment-related
products and facilities

Diverse customer attributes and products

Social needs:

Needs for specialized
water and air products

Measuring

Highprecisionozone gasanalyzer

Ozone gas/water
analyzer for
semiconductors

Energy-saving/creatingHomebatteries

Energy-saving
blowers

Deodorizing

Humus
deodorizers

Bio
desulfurizationequipment

Water treatment
Plants

Efficientsandfiltrationequipment

land-based
aquaculture
systems

Medical

Simplenegativepressureequipment

Indoor ozone
sanitizationequipment

Proportion of
consolidated net sales

Net SalesYear ended
December 31, 2022

20.8
%

6,288
mn yenConcept

Proportion of
consolidated gross profit

Gross profit

Year ended
December 31, 2022

2,580
mn yen27.8%

Supply niche andspecialized water and air
products to the market
We supply our original
and competitive productsthat are highly
profitable© EBARA JITSUGYO CO., LTD.

30

Business overview by segment: Manufacturing (environment-related)
Field

Measuring

Energy-saving/creating

Deodorizing

Business⚫ Manufacture and sales ofmeasuring equipment usedmainly for water treatment⚫ Manufacture and sales ofmeasuring equipment for
semiconductors

Medical⚫ Public facilities(advanced waterworks and seweragefacilities)⚫ Private sector plants(including semiconductors, LCD, and food)⚫ Development, design,
construction and sales of
ZEB/ZEH-related products⚫ Private companies(air conditioner manufacturers, officebuildings, etc.)⚫ Manufacture and sales of
blowers, especially energysaving blowers⚫ Private sector plants(including food, drinks, paper, andchemicals)⚫ Manufacture and sales of
deodorizers and deodorizing
equipment, especially industrial
deodorizers⚫ Public facilities(sewerage, and sewerage for agriculturalcommunities)⚫ Design, construction and sales ofbio-deodorizing anddesulfurization equipment

Water treatment
plantsMain customers⚫ Private sector plants (including for food anddrinks)

Product examples
Highprecisionozone gasanalyzerOzone
gas/water
analyzer for
semi
conductors

Home
batteries

Energy-saving
blowers

Humus
deodorizers

Bio
desulfurizationequipment

Efficient sandfiltrationequipment

land-based
aquaculture
systems

Simplenegativepressureequipment

Indoor ozone
sanitizationequipment⚫ Shopping centers (grease and sludge
trapping systems)⚫ Design and construction ofindustrial waterworks andwastewater facilities⚫ Private sector plants(including food, drinks, paper, andchemicals)⚫ Engineering for aquacultures, fish
farms and waterscape facilities⚫ Public facilities (including fisheries
research institutes)⚫ Development and sales of
medical equipment including forpreventing infectious diseases
and for emergency disastermeasures⚫ Medical institutions, municipalities, central
government, and others⚫ Private sector companies, plants, etc.

⚫ Others© EBARA JITSUGYO CO., LTD.

31

Business overview by segment: Engineering (water-treatment-related)
Engineering (watertreatment-related)
The design, construction, andmaintenance of waterworks andsewerage

Waterworks

We handle design, construction and maintenance work for all
equipment and devices to take in water from rivers, lakes andgroundwater, from various water treatment equipment through toequipment to supply water to homes and business sites.

Sewerage

We handle design, construction, and maintenance work for all
types of facilities, equipment and devices including for interim
pumping stations that collect contaminated water and send it tosewerage stations, various sewerage stations, and water treatment
stations that send clean, treated water back to rivers etc.

Rainwater draining
facilities

These facilities are rolled out nationwide to protect the lives ofpeople in areas prone to serious damages from river flooding due
to torrential rain from typhoons. We handle the design, construction,and maintenance of rainwater draining pumps and electricity
systems for target facilities.

Net SalesYear ended
December 31, 2022

14,408mn yen

Proportion of
consolidated net sales

47.7%

Gross profit
Year ended
December 31, 2022

4,234
mn yen45.6 Proportion of% consolidated gross profit

Manhole pumpfacilities

These facilities are being used nationwide as a new armor forsmall-scale contaminated-water-transferring pumping stations,which are essential to spread the use of sewerage systems. The
facilities are compact, with a tank to collect contaminated water(manhole) set with an underwater pump and employed in places
with insufficient space for other facilities.

Cloud monitoring
systemE-Qias Cloud

We offer a system to remotely monitor waterworks and sewerage
stations.

© EBARA JITSUGYO CO., LTD.

32

Business overview by segment: Trading (fluid machinery-related)
We sell industrial machines such as pumps, blowers,
air conditioners, coolers and heaters, for buildings
including shopping centers and factories

Trading (fluid machineryrelated)
Sales of pumps, blowers, airconditioners etc., mostly Ebara
products, as an agent
Proportion of
consolidated net sales

31.5%

Net SalesYear ended
December 31, 2022

Pumps/ blowers/air
conditioning, cooling andheating/energy/other

Water-supply
pump units

Fire extinguishing
pumps

9,532
mn yen
Proportion of
consolidated gross profit

26.6
%

Fans

Gross profit
Year ended
December 31, 2022

2,467
mn yenCrushers

The manufacture andinstallation of steel
scaffolding forconstruction sites andplant facility stands (steel
structures)© EBARA JITSUGYO CO., LTD.

33

Results Trends (past 10 years)
Trends in ROE and Equity Ratio

Trends in Net Sales and Operating Profit
Net Sales

Operating
Profit Margin

Operating Profit

Gross Profit
Margin(Unit: mn yen)

28,770ROE

29,29526,994

27,771

30,250

49.1%

29.8%
27.7%
24.7%

41.3%

0.35000

32.3%

47.1%

45.3%

3,982

26,110

54.9%

51.4%
30,22928,431

53.6%

53.3%

32,48529,93922.4%

Equity Ratio

30.7%

37.6% 38.4%
0.30000

25.8%

26.8%

3,214

24.0%
0.25000

21.7%

2,756
0.20000

2,139

2,024

0.15000

1,717
1,417

3.8%

5.3%

10.6%

1,290

1,130 1,146
3.9%

17.6%
12.3%

6.6%

7.3%

0.10000

14.8%
9.1%

7.1%

0.05000

10.4% 10.3% 10.8% 10.2%

11.6%

12.7%

11.0%

11.6%

4.6%
0.00000(0.05000)

Dec. 2013 Dec. 2014 Dec. 2015 Dec. 2016 Dec. 2017 Dec. 2018 Dec. 2019 Dec. 2020 Dec. 2021 Dec. 2022

(0.10000)

Dec. 2013 Dec. 2014 Dec. 2015 Dec. 2016 Dec. 2017 Dec. 2018 Dec. 2019 Dec. 2020 Dec. 2021 Dec. 2022

© EBARA JITSUGYO CO., LTD.

34

Performance (annual)(Unit: m n yen)

Gross profit

Net Sales

Orders received

Measuring
Energy-saving/creating
Deodorizing
Water-treatment plants
MedicalManufacturing (environment-related)
Engineering (water-treatment-related)
Trading (fluid machinery-related)
Total
Measuring
Energy-saving/creating
Deodorizing
Water-treatment plants
MedicalManufacturing (environment-related)
Engineering (water-treatment-related)
Trading (fluid machinery-related)
Total
Manufacturing (environment-related)
Engineering (water-treatment-related)
Trading (fluid machinery-related)
Total
Selling, general and administrative expenses
Operating profit
Non-operating profit
Non-operating expenses
Ordinary profit
Extraordinary income
Extraordinary losses
Profit before income taxes
ProfitDec 2019
Result
YoY
1,212
+3.1%
600
+2.9%
1,189
-13.3%
2,138
-3.8%
189
-30.0%
5,328-5.3%
12,072+1.6%
10,818+8.3%
28,220
+2.6%
1,304
-6.2%
734
+28.3%
1,118-29.6%
1,784+22.7%
356
-9.4%
5,296
-1.9%
12,544-11.5%
10,590+8.8%
28,431
-2.9%
2,105
-0.1%
3,355
-7.3%
2,159
+18.2%
7,621
+0.8%
5,596
+3.3%
2,024
-5.4%
210
65
2,169
-3.7%
2,169
-3.7%
1,512
-5.5%

Dec 2020
ResultYoY
1,519+25.3%
642
+7.0%
987
-17.0%
2,094
-2.1%
3,729
+1873.0%
8,972+68.4%
15,748+30.5%
9,278-14.2%
34,000+20.5%
1,388
+6.4%
689
-6.1%
1,016
-9.1%
2,629
+47.4%
1,733+386.8%7,456+40.8%
13,155
+4.9%
9,639
-9.0%
30,250+6.4%
3,011+43.0%
3,752+11.8%
2,246
+4.0%
9,010
+18.2%
5,795
+3.6%
3,214
+58.8%
209
61
3,363+55.0%
327
3,339+53.9%
2,342+54.9%

Dec 2021
ResultYoY
1,717+13.0%
739+15.1%
1,197+21.3%
2,110
+0.8%
1,476
-60.4%
7,240-19.3%
17,435+10.7%
10,338+11.4%
35,014
+3.0%
1,514
+9.1%
590
-14.4%
1,023
+0.7%
2,033
-22.7%
3,402+96.3%
8,563+14.9%
14,683+11.6%
9,238-4.2%
32,485+7.4%
3,803+26.3%
4,403+17.4%
2,281+1.6%
10,489+16.4%
6,507+12.3%
3,982+23.9%
230
102
4,110
+22.2%
338
57
4,392+31.5%
3,159+34.9%

Dec 2022
Dec 2023
ResultYoY
Corrected plan
YoY
1,908
+11.1%
1,700-10.9%
1,120+51.6%
1,700+51.8%
1,264
+5.6%
1,200
-5.1%
2,228
+5.6%
2,400
+7.7%
1,106
-25.1%
1,000
-9.6%
7,626
+5.3%
8,000
+4.9%
16,349-6.2%
17,000+4.0%
10,667+3.2%
11,000+3.1%
34,643-1.1%
36,000+3.9%
1,350-10.8%
1,800+33.3%
637
+8.0%
1,500
+135.5%
1,252+22.4%
1,200
-4.2%
2,060
+1.3%
2,400
+16.5%
989-70.9%
1,000
+1.1%
6,288
-26.6%
7,900+25.6%
14,408-1.9%
15,600
+8.3%
9,532
+3.2%
11,500+20.6%
30,229-6.9%35,000+15.8%
2,580-32.2%
3,320+28.7%
4,234
-3.8%
4,600
+8.6%
2,467
+8.1%
2,580
+4.6%
9,282
-11.5%
10,500+13.1%
6,525
+0.3%
7,000
+7.3%
2,756
-30.8%
3,500+27.0%
241
200
68
50
2,929
-28.7%
3,650+24.6%
14021
3,048-30.6%
3,650+19.8%
2,169-31.4%
2,600+19.9%© EBARA JITSUGYO CO., LTD.

35

This presentation contains descriptions about our future performance. These descriptions do not
warranty future performance and entail risks and uncertainties. Please note that future performancecan differ from the forecast values due to factors such as changes in the management environment.
The purpose of this presentation is only to provide information and not to solicit business deals.
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.

Corporate Planning & Strategy Office

TEL 03-5565-2885