Guidance For Collaborative Value Creation EBARA Way .

INTRODUCTIONINTRODUCTIONInformation Regarding Integrated Report 2018EBARA WayCreation of New Valueby Acting Based on the “EBARA Way”Editorial PolicyThe EBARA Group has issued this integrated report to provide stakeholders withfinancial and non-financial information about its medium-to-long-term value creation activities. We have created the report with reference to the InternationalIntegrated Reporting Council’s International Integrated Reporting Framework; theGuidance for Integrated Corporate Disclosure and Company-Investor Dialogues forCollaborative Value Creation: ESG Integration, Non-Financial Information Disclosure,and Intangible Assets into Investment (Guidance for Collaborative Value Creation)released by the Ministry of Economy, Trade and Industry; and the standards of theGlobal Reporting Initiative. The relationship between information in this report andthe Guidance for Collaborative Value Creation is described in the table of contents.A table detailing the referenced Global Reporting Initiative standards is available onthe Company’s corporate website.The EBARA Group’s beginnings were in answer to the calls of society, and we have continued to provide valueto society through our business in addition to fulfilling our social responsibilities. In conjunctionwith the 100th anniversary of the Company’s founding in 2012, we reflected on the type of companywe are and want to be and reorganized those fundamental values and ethics into theEBARA Group Business Ethics Framework, to support our ethical operation over the next 100 years.As part of this undertaking, we redefined the Group’s founding spirit, corporate philosophy,and CSR Policy as the “EBARA Way,” the transcendental value shared across the EBARA Group.By acting based on the “EBARA Way,” the EBARA Group will create new value.ValuesBusiness modelA transcendental value of the EBARA Group,the EBARA Way comprises the Group’s founding spirit, typified by passion and dedication inthe pursuit of innovation; a corporate philosophy stating the Group’s social mission; andthe EBARA Group CSR Policy, which sets out abasic stance for the realization of the corporatephilosophy.Founding Spirit(Passion and Dedication)Corporate PhilosophyCSR PolicyInformation RegardingIntegrated Report 2018 / Contents03WHAT’S EBARA?0911-Year Financial Summary11Performance Highlights13Message from the President17Message from Executive inProgress of E-Plan 2019 Medium-TermEBARA Group’s Value Creation Process23Value Creation Model25Roadmap for Increasing Corporate Value27Materiality29Overview of and Backgroundfor Key Performance Indicators31Company References“EBARA” and “the Company” refer to EBARA CORPORATION while “the EBARAGroup” and “the Group” refer to EBARA CORPORATION and its domestic and overseas subsidiaries and affiliatesRelationship between Action Policiesand the SDGsEnhancement of Management CapitalAll stakeholders of the EBARA Group33R&D and Intellectual PropertiesReporting Period39Human Resources43Environmental MeasuresThe nine-month period ended December 31, 2017 (April 1, 2017, to December 31,2017)(The irregular nine-month period is the result of a change in the settlementdate used by the Company. This report contains some information from afterJanuary 2018.)Scope of ReportingWe seek to foster trust with our valuedstakeholders by conducting our businesswith a strong sense of ethics.02Management PlanTarget ReadersWe contribute to society through high-qualitytechnologies and services relating to water,air, and the environment.EBARA Way21GovernanceEBARA Way01Charge of FinancePerformance and key performanceindicators (KPIs)Both employees and the Company shall strive for growth withpassion and dedication to bring forth originality and ingenuity,rather than simply fulfilling the task at hand. When workingwith passion and dedication, there is nothing that cannot becommunicated to ARA Group Business Ethics FrameworkGuidance forCollaborativeValue CreationContentsReview of OperationsEBARA CORPORATION and the 89 subsidiaries (of which 57 are consolidatedsubsidiaries) and eight affiliates that collectively comprise the EBARA Group(as of December 31, 2017); notice will be provided when the scope of datacollection differs45Fluid Machinery & Systems Business49Environmental Plants BusinessPublication Date53Precision Machinery BusinessNovember 2018 (2017 edition: December 2017; 2019 edition: October 2019 (tentative))Management Policy(Business Plan)Foundations for GrowthCommunication ToolsINTERNETCorporate website https://www.ebara.co.jp/en/index.html57Message from the Chairman ofthe Board of DirectorsFinancial InformationNon-Financial InformationCompany RegulationsBOOKLETPDFIntegrated Report 201859Board of Directors65Corporate Governance73Risk Management74Compliance75The EBARA Group and Its Stakeholders77EBARA Group History78Corporate Profile / Stock InformationCompiles noteworthy informationCode of ConductINTERNETInformation for investors /index.htmlINTERNETCSR information and ESG lPDFPDFCorporate governance reportAnnual securities reportREFERENCEEBARA Group Business Ethics e/about/ebara/index.html01EBARA Group Integrated Report 2018To contact EBARA CORPORATION, please click “Contact” on the upper righthandcorner of the Company’s corporate website.EBARA Group Integrated Report 201802

INTRODUCTIONINTRODUCTIONआपल सर्वोत्तम देण्याकरिता स्वतःलानेहमीच आव्हान देण.Always challenging ourselves togive our �ドルも乗り越えることができるMoved by courage and a dedication topersevere, EBARA will overcome anyobstacle.WHAT’S EBARA?EBARA’S SPIRITUtilizing our over 100-year historyto create and provide services andtechnologies that unfailinglysupport daily life.FOUNDING SPIRIT “Netsu to Makoto”(Passion and Dedication)Both employees and the Company shall strive for growth withpassion and dedication to bring forth originality and ingenuity,rather than simply fulfilling the task at hand. When workingwith passion and dedication, there is nothing that cannot be communicated to others.CORPORATE PHILOSOPHY We contribute to society through high-quality technologies andservices relating to water, air, and the り大きな成果を導き出すNever faltering, even when faced withdifficult issues, we harness our insightand experience to achieve greatsuccess as a �打造未来,让世界都知道荏原A drive to be known throughout theworld for integrity and cutting-edgetechnology that shapes the future.CSR POLICY We seek to foster trust with our valued stakeholders by conducting our business with a strong sense of ��となって課題解決に邁進するTaking on challenges as a team thatcoordinates across division andorganization lines to deliver results.기업의 이익을 창출하여 사회의기반을 든든하게 받치고 모든 이들의삶을 풍요롭게 하고자 노력합니다.Helping build robust social infrastructureto enrich the lives of people aroundthe world, committed to profit.03EBARA Group Integrated Report 2018EBARA Group Integrated Report 201804

INTRODUCTIONINTRODUCTIONWHAT’S EBARA?EBARA’S BUSINESSThe EBARA Group is a conglomerate comprised of three core businesses: the Fluid Machinery & SystemsNet Sales Ratio by IndustryNet Sales Ratio by RegionOthersJapanRatio of Service and Support (S&S)Sales to Product SalesOverseasProductS&SElectric power Business, which supplies pumps, compressors, and other rotating machinery; the Environmental Plants Busi-Semiconductorness, which handles urban waste incineration plants and other facilities; and the Precision Machinery Business,Buildingequipmentwhich produces equipment and devices related to semiconductor manufacturing. With these three businesses,Asia(excluding Japan)we are helping resolve social issues through the provision of products and services to our customers.Middle EastEuropeNorth AmericaOthersConsolidated Net SalesConsolidated Operating Income 381.9 billion 18.1 billion( 507.8 billion)( 36.6 billion)Fluid Machinery &Systems BusinessThe Fluid Machinery & Systems Business supplies products and servicesthat combine our world-class technological capabilities and extensiveexperience to address customerneeds and support social and industrial infrastructure around the world.Pumps BusinessThe pumps business offers large-scale,high-pressure custom pumps for use insewage facilities, rainwater drainage systems, petrochemical plants, and otherfacilities as well as standard pumps for usein high-rise buildings, condominiums, andindustrial facilities, etc.Net Sales Ratio1. Pumps Note: EBARA changed its settlement date toDecember 31, 2017, resulting in an irregular ninemonth reporting period ended December 31,2017. Figures in parentheses ( ) are twelve-month reference data and include January to Marchof the fiscal year ended March 31, 2017.59%The Environmental Plants Businessuses EBARA’s incinerator and gasification plant technologies to handle thedesign, construction, maintenance,and operation of urban waste incineration plants and other waste treatment facilities. This business helpssupport sanitary cities and safe andsecure lifestyles. 133.4 billion3. Chillers 29.2 billion4. Others 9.3 billion2345 225.7 billionCompressors and Turbines BusinessThe compressors and turbines businessprovides compressors and turbines for oilrefineries and petrochemical plants.Oil and gas** Mostly downstream businessesEnvironmentalPlants Business2. Compressors and Turbines 53.8 billionTotal Publicinfrastructure1Air空気Environment環境We provide dry vacuum at create clean vacuums, ement systems for 市場に提供しています。hazardous gases as well as greenhouse gases, chillers used for airconditioning, and tunnel ventilationfans to the global market.We support efficient resource �ンプレッサの納入、廃棄物処理施and stable energy supplies by ng pumps and compressors forenergy-related facilities, ��ing and maintaining waste treat給を支えています。ment facilities and biomass powergeneration plants, and supplyingenergy-efficient and resourceconserving products.05EBARA Group Integrated Report 20185. Environmental Plants 47.6 billionThe Precision Machinery Business contributes to the realization of more convenient and comfortable societies byproviding dry vacuum pumps thatcreate the vacuums used when manufacturing semiconductors, flat panels,LEDs, and other devices indispensableto today’s information society as well aschemical mechanical polishing (CMP)systems that can polish semiconductorwafers with nano-level TIONNet Sales RatioOther BusinessesOther businesses include the provision offans for use in applications such as tunnelventilation as well as electricity, telecommunications, and energy controlequipment.12%PrecisionMachinery BusinessChillers BusinessThe chillers business handles chillers, cooling towers, and related systems for use inthe air-conditioning equipment of buildings and large-scale commercial facilities.Net Sales RatioWater水Information情報We support water �や海worldwide by providing a eup of products, such as フラを支えています。supply pumps for buildings andcondominiums, pumping stationsthat prevent flooding, and pumpsfor desalination plants.Aiming to contribute to the ment of the information ど各種の半導体製造装置を提供we provide vacuum pumps and varしています。ious types of semiconductor manufacturing equipment, including CMPsystems, that capitalize on the technologies we have fostered in thewater, air, and environment fields.76. Components 51.7 billion7. CMP Systems 49.8 billion8. Others 828% 5.8 billionTotal 107.3 billionOthers 1.2 billionEBARA Group Integrated Report 201806