EBARA JITSUGYO CO.,LTD. (6328) Stock Price

## Business Overview of Ebara Jitsugyo

Ebara Jitsugyo is a company whose core business is the manufacturing and sales of environmental equipment and devices, as well as plant design and construction for water treatment facilities and similar infrastructure. In addition to manufacturing and selling its own proprietary products, the company also procures and sells wind and hydraulic cooling and heating equipment under a distributor agreement with the Ebara Corporation Group. The company provides a wide range of environment and energy-related products, from ozone-related equipment to infectious disease countermeasure products and residential energy storage systems.

The company's primary customers are government agencies and public institutions. It has established a structure to directly receive orders for infrastructure projects such as water treatment facilities. Its revenue structure is built on two main pillars: plant construction projects in which the company procures equipment and materials from the Ebara Group, and sales of its own proprietary products. The ongoing cooperative relationship with the Ebara Group forms the foundation of stable revenue.

The business is divided into three main segments: the "Manufacturer Business," which outsources production of proprietary products to partner companies for resale; the "Engineering Business," which directly receives orders from government agencies for design and construction work; and the "Trading Business," which focuses on procurement and sales of Ebara Group products. Through these business operations, the company provides comprehensive solutions in both environmental conservation and infrastructure development.

Ebara Jitsugyo has established a long-term vision targeting revenue of 60 billion yen and operating profit of 8 billion yen by fiscal year 2030. Under its purpose of "Creating comfortable environments for the future," the company aims to evolve into a "Total Environmental Solutions Company," targeting an operating profit margin of 13.0% and ROE of 15.0% or higher to achieve a highly profitable business structure. Toward this long-term goal, the medium-term management plan "EJ2027" through fiscal year 2027 sets staged targets of 45 billion yen in revenue and 5.5 billion yen in operating profit.

The company's growth strategy is built on three core pillars: "strengthening existing businesses," "exploring new domains," and "enhancing management foundations." Leveraging its position in the public water infrastructure market, the company is responding to growing demand for disaster prevention and mitigation measures while adapting to structural market changes, including public-private partnerships. The company is also focusing on creating new business models in the environmental sector and optimizing its business portfolio by capturing recovery opportunities in semiconductor industry demand.

Regarding technology innovation and human capital investment, the company plans to allocate over 2.5 billion yen in research and development and over 3 billion yen in capital and growth strategy investments during the medium-term plan period. In its fabless manufacturing operations, the company has positioned "human capital maximization" as a top priority, focusing on building a talent portfolio that supports management strategy execution and developing an organization capable of adapting to change. The company is also advancing environmental impact reduction, including greenhouse gas emissions reduction, to build a sustainable growth foundation.

In financial strategy, the company will strengthen shareholder returns by raising the dividend payout ratio from the previous 35% to 40%, while continuing growth investments to achieve ROE of 15.0% or higher. In fiscal year 2025, the company achieved operating profit of 6.1 billion yen and ROE of 17.1%, already exceeding the final-year plan targets and demonstrating steady progress toward the 45 billion yen revenue goal. The company is also considering flexible implementation of share buybacks to balance capital efficiency improvements with shareholder value maximization.