Ebara (6361) Investor Day 2024 summary

Strategic direction and business transformation

• Energy segment is being transformed into a growth business under the E-Plan 2025, focusing on synergy between compressors, turbines, cryogenic pumps, and custom pumps.

• Emphasis on supporting energy transition markets, particularly ammonia and hydrogen, to align with global decarbonization trends.

• Hydrogen-related business is positioned as a strategic business unit aiming for commercialization and significant growth by 2040.

• Targeting hydrogen-related business sales of ¥200 billion by 2040, leveraging core technologies and business synergies.

• Accelerated initiatives are aligned with the long-term vision, E-Vision 2030, to achieve carbon neutrality by 2050.

Key technological and business developments

• Developed the world's first liquid hydrogen booster pump and canned motor pump for liquid ammonia, supporting safer fuel transport and decarbonization.

• Launched hydrogen-powered absorption chiller/heater and secured contracts for compressors in sustainable aviation fuel projects.

• Announced construction of a full-scale equipment testing and development center for liquid hydrogen pumps, with a ¥16 billion investment and completion planned for June 2026.

• The new center will enable rapid establishment of a testing system for liquid hydrogen pumps, supporting global hydrogen supply chains.

• Demonstration tests confirmed reliability and safety of ammonia pumps, contributing to environmental impact reduction.

Financial and market outlook

• Energy segment accounted for 22% of FY2023 revenue (¥167.2 billion) and 25% of operating profit (¥22.3 billion).

• High growth is expected in building service, industrial, and precision machinery businesses, with revenue CAGR targets of 15% and 6% respectively.

• Hydrogen-related business aims for commercialization and market expansion, targeting new markets and customers through innovation cycles.

• Investment in hydrogen infrastructure and technology is expected to drive long-term growth and profitability.

• Sustainable aviation fuel projects are projected to reduce greenhouse gas emissions by 80,000 tons per year.