Ebara : Three Months Ended March 31, 2023(Financial Results)

CONSOLIDATED FINANCIAL RESULTS

FOR THE THREE MONTHS ENDED MARCH 31, 2023

	〔IFRS〕
	May 15, 2023
Company name:	EBARA CORPORATION
Stock exchange listings:	Tokyo
Code number:	6361
URL:	http://www.ebara.com/en/
Representative:	Masao Asami, Representative Executive Officer, CEO & COO
Contact person:	Shugo Hosoda, Executive Officer, Division Executive, Corporate Strategic Planning,
Finance and Accounting Division & CFO

Tel. [phone]

Scheduled date for submission of quarterly report: Scheduled date for dividend payment:

Preparing supplementary material on financial results: Holding financial results presentation meeting

(for institutional investors and analysts):

May 15, 2023

－

Yes

Yes

(Monetary amounts are rounded down to the nearest million yen)

1. Consolidated Results for the Three Months Ended March 31, 2023

(1) Consolidated Financial Results

(% represents percentage change from a comparable previous period)				Millions of yen
	Revenue	Operating Profit	Profit before Tax	Profit
Three Months Ended	184,071	20.5%	15,264	7.7%	15,183	(2.5)%	8,855		(20.2)%
March 31, 2023
Three Months Ended	152,808	13.0%	14,177	15.9%	15,569	19.0%	11,103		18.2%
March 31, 2022
	Profit Attributable to	Total Comprehensive	Basic Earnings per	Basic Earnings per
	Share, Diluted
	Owners of Parent	Income	Share (Yen)
	(Yen)
Three Months Ended	8,098	(21.0)%	11,085	(35.3)%		87.95			87.78
March 31, 2023
Three Months Ended	10,251	19.6%	17,142	13.6%		111.44			111.16
March 31, 2022

(2) Consolidated Financial Position

				Millions of yen
			Total Equity	Ratio of Equity
	Total Assets	Total Equity	Attributable to Owners	Attributable toOwners
			of Parent	of Parent
As of March 31, 2023	858,232	369,859	360,560	42.0
As of December 31, 2022	828,049	369,725	359,966	43.5

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2. Dividends

		Dividends per Share (Yen)
	End of 1st Quarter	End of 2nd Quarter	End of 3rd Quarter		Year-End	Annual
Fiscal Year Ended	－	85.00	－		108.00	193.00
December 31, 2022
Fiscal Year Ending	－
December 31, 2023
Fiscal Year Ending
December 31, 2023		97.50	－		97.50	195.00
(Forecast)

Note: Revisions to forecast of dividends in this quarter: None

3. Forecast of Financial Results for the Fiscal Year Ending December 31, 2023

% represents percentage change from the previous fiscal year					Millions of yen
	Revenue	Operating Profit	Profit before Tax	Profit Attributable to	Basic Earnings per
	Owners of Parent	Share (Yen)
Six Months Ending	361,000	15.5%	31,900	17.4%	32,100	13.9%	19,200	6.3%	208.51
June 30, 2023
Fiscal Year Ending	747,000	9.7%	71,000	0.6%	71,200	2.5%	52,300	3.6%	567.98
December 31, 2023
Note: Revisions to forecast of financial results in this quarter: Yes

The forecast of financial results for the six months ending June 30, 2023 ＆ the fiscal year ending December 31, 2023, previously announced on February 14, 2023 has been revised. For further details, please refer to "Explanation of Forecast of Consolidated Financial Results" on page 10.

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4. Other Information

1. Changes in significant subsidiaries during the fiscal year under review (Changes in specified subsidiaries involving changes in scope of consolidation): None

Included:	－	(－)
Excluded:	－	(－)

1. Changes in accounting policies and changes in accounting estimates
2. 1. Changes in accounting policies required by IFRS: None
   2. Changes in accounting policies other than (i) above: None
   3. Changes in accounting estimates: None
3. Number of shares outstanding (Common Shares)

1. Number of common shares (Including treasury shares)
2. Number of treasury shares
3. Average number of common shares

As of March 31,	92,127,015	As of December 31,	92,086,015
2023	2022
As of March 31,	24,818	As of December 31,	24,422
2023	2022
Three Months		Three Months
Ended March 31,	92,080,265	Ended March 31,	91,991,784
2023		2022

This quarterly financial result is exempt from quarterly review by certified public accountants or accounting firms.

Explanation of the Appropriate Use of Performance Forecast and Other Related Matters

1. The forecast of performance and other forward-looking statements contained in this report are based on information that was available to the Company as of the time of the issuance of this report and on certain assumptions about uncertainties that may have an impact on the Group's performance. Actual performance may differ substantially from these forecast owing to a wide range of factors. For further information on the assumptions made in the preparation of the forecast of performance, please refer to "Explanation of Forecast of Consolidated Financial Results" on page 10. Readers are cautioned not to place undue reliance on these forward-looking statements which are valid only as of the date thereof.
2. This report has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated report and the Japanese original, the original shall prevail. Also, the Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translation.

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Contents
1. Qualitative Information Regarding Consolidated Financial Results	・・・・・・・・・・・・ P.5
(1)	Explanation of Financial Results	・・・・・・・・・・・・ P.5
(2)	Explanation of Financial Position	・・・・・・・・・・・・ P.9
(3)	Explanation of Forecast of Consolidated Financial Results	・・・・・・・・・・・・ P.10
2. Condensed Consolidated Financial Statements and Primary Notes	・・・・・・・・・・・・ P.12
(1)	Condensed Consolidated Statement of Financial Position	・・・・・・・・・・・・ P.12
(2)	Condensed Consolidated Statement of Income and Condensed	・・・・・・・・・・・・ P.14
	Consolidated Statement of Comprehensive Income
(3)	Condensed Consolidated Statement of Changes in Equity	・・・・・・・・・・・・ P.16
(4)	Condensed Consolidated Statement of Cash Flows	・・・・・・・・・・・・ P.18
(5)	Notes to Condensed Consolidated Financial Statements	・・・・・・・・・・・・ P.20
	(Note for the Assumption of Going Concern)	・・・・・・・・・・・・ P.20
	(Segment Information)	・・・・・・・・・・・・ P.20
	(Contingency)	・・・・・・・・・・・・ P.22
	(Additional Information)	・・・・・・・・・・・・ P.22
3. Others	・・・・・・・・・・・・ P.23
(1)	Segment Information	・・・・・・・・・・・・ P.23
(2) Area Information	・・・・・・・・・・・・ P.25

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1. Qualitative Information Regarding Consolidated Financial Results

1. Explanation of Financial Results

				Millions of yen
	Three Months Ended	Three Months Ended	Change	Change Ratio (%)
	March 31, 2022	March 31, 2023
Orders Received	177,005	197,909	20,903	11.8
Revenue	152,808	184,071	31,262	20.5
Operating Profit	14,177	15,264	1,086	7.7
Operating Profit on	9.3	8.3	－	－
Revenue Ratio (%)
Profit Attributable to	10,251	8,098	(2,152)	(21.0)
Owners of Parent
Basic Earnings per	111.44	87.95	(23.48)	(21.1)
Share (Yen)

During the three months ended March 31, 2023, the global economy showed signs of a slowdown in economic activity, including the prolonged situation in Ukraine, global inflation, and restrained corporate investment in line with monetary tightening. In China, the transition to a new stage of "with Corona" is progressing due to the termination of the zero-corona policy and the simultaneous pursuit of economic activities with measures to control the COVID-19. Capital investment is gradually picking up. However, uncertainty remains as a result of concerns over an economic downturn in Europe and the United States due to monetary policy and heightened geopolitical risks, such as tighter export control regulations in the United States and China.

Under these circumstances, we formulated the Medium-term Management Plan "E-Plan 2025" for three years starting from fiscal year 2023. Under the theme of "creating value from the customer's perspective," we have shifted to a face-to-face market structure to further strengthen the competitiveness of each of our businesses, and we are moving forward with various measures to achieve our management indicators.

Orders received for the three months ended March 31, 2023 increased from the same period of the previous fiscal year in each segment excluding the Precision Machinery (PM) Business. This was due to an increase in demand in the oil and gas markets facing the Energy Business, as well as orders for large-scale domestic projects in the Environmental Business. On the other hand, orders received in the PM Business fell significantly below the results for the corresponding period of the previous fiscal year due to the clear postponement of capital investment plans by semiconductor manufacturers and movements in inventory adjustments following the slowdown in semiconductor demand since the second half of 2022. Revenues increased in the Building Service & Industrial Business, which was impacted by a lockdown in China in the previous year, and in the PM Business, which saw improvements in production conditions due to increased sales in the Energy Business and the elimination of component shortages. In addition to the increase in sales, Operating profit increased due to the impacts of price revisions and the depreciation of the yen. As a result, orders received, revenue, and operating income all reached record highs for the first quarter of the current fiscal year.

As a result, consolidated orders received for the three months ended March 31, 2023 amounted to ¥197,909 million (an increase of 11.8% year-on-year), revenue amounted to ¥184,071 million (a decrease of 51.2% year- on-year), operating profit amounted to ¥15,264 million (a decrease of 34.3% year-on-year), and profit attributable to owners of parent amounted to ¥8,098 million (a decrease of 21.0% year-on-year).

Operating Results by Business Segment is as follows. From the first quarter of the fiscal year ending December 31, 2023, the classification of reportable segments has been changed. As a result, figures for the first quarter of the previous fiscal year have been reclassified into the new segment classification.

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