Medium-Term Business Plan
From FYE March 2016 through FYE March 2018
2
Contents
1. Medium-Term Business Plan
2. Basic Policy
3. Business Strategy by Segment
- Plant Engineering Segment
- Service Solution Segment
4. Promotion of CSR Activities
3
Segment Information and Abbreviations
Segment Information
Plant Engineering Segment
This segment is primarily involved in various types of engineering work related to the design and
construction of mechanical equipment used for water treatment processes in water treatment plants, sewage
treatment processes and sludge treatment processes in sewage treatment plants as well as the design and
construction of electrical equipment used to operate the said mechanical equipment.
Service Solution Segment
This segment is primarily involved in various repair work, maintenance (maintenance and checking) and
operational management of mechanical and electric equipment for water treatment plants, sewage treatment
plants, waste treatment facilities and recycling facilities.
Abbreviations
EPC:
Engineering, Procurement and Construction
Designing and construction of water and sewerage facilities and equipment
O&M: Operation and Maintenance
Operation and maintenance of water and sewerage facilities and equipment
PPP：
Public Private Partnership
Broadly refers to methods by which the private sector is involved in the provision of public
services.
PFI：
Private Finance Initiative
A method for public business by which the private sector is utilized for the designing, construction,
maintenance, operation of and fund-raising for public facilities.
DBO：
Design, Build and Operate
A method for public business by which the private sector is used for the designing, construction,
maintenance, and operation of public facilities.
4
5
1-1. Targets of Medium-Term Business Plan
FYE March 2015
Actual
FYE March 2018
Target
Orders
117.0 billion yen
140.0 billion yen
Net sales
106.9 billion yen
130.0 billion yen
Operating profit
8.2 billion yen
10.0 billion yen
Net income
5.0 billion yen
6.0 billion yen
6
1-2. Trends of Performance and Targets (1/2)
0
50
100
150
200
FYE3/'11 FYE3/'12 FYE3/'13 FYE3/'14 FYE3/'15
FYE3/'18
FYE3/'21
0
2
4
6
8
10
12
Net Sales
Operating Profit
Net sales
(Billion yen)
Medium-Term Business Plan
(from FYE 3/’16 to FYE 3/’18)
Listed on TSE
December 2014
Operating profit
(Billion yen)
(*) Consolidation with METAWATER Service Co., Ltd. and three special purpose companies (SPCs) started in FYE March 2013, and with METAWATER USA Inc. in FYE March 2014.
Net Sales
Operating Profit
7
1-2. Trends of Performance and Targets (2/2)
FYE3/'15
FYE3/'18
FYE3/'21
Core Field
Growth Field
(Actual)
(Target)
(Forecast)
Medium-Term Business Plan
(from FYE 3/’16 to FYE 3/’18)
(
*
) Core field refers to EPC and O&M segment in Japan; Growth field means PPP and overseas segments.
Next Medium-Term
Business Plan
Maintain Sales in Core Field and
Expand Business Size in Growth Field
106.9
billion yen
130.0
billion yen
90%
10%
80%
20%
70%
30%
8
1-3. Positioning of Medium-Term Business Plan (1/2)
Medium-Term Business Plan with an Eye
on Water Operation Business in the Future
Medium-Term Business Plan
Water Operation
Business Company
Next Medium-Term Business Plan
FYE 3/’16
FYE 3/’18
FYE 3/’21
Leading Company
in PFI/DBO
for water and sewerage
system
9
1-3. Positioning of Medium-Term Business Plan (2/2)
Contribute to the continuity of water and sewerage business
together with local communities, as a good partner of water
10
11
2-1. Market Environment
Domestic
Market
• A rise in demand for renovation and renewal of water and
sewerage facilities due to aging.
• Financial difficulties and engineer shortage at water and
sewerage business operators.
• Expansion of area to be outsourced to private sector in the
water and sewerage business field.
Overseas
Market
• Expectations that demand for water will increase due to a
population increase in the future.
12
2-2. Basic Policy
Strengthen the core field (EPC and O&M in Japan)
Expand business in the growth field (PPP and overseas)
Plant Engineering
Segment
Service Solution
Segment
Domestic
Business
Overseas
Business
Strengthen EPC
Segment
Reinforce
O&M Segment
Expand
PPP Segment
Build
foundations of
Overseas Segment
C
o
re
F
ie
ld
G
ro
w
th
F
ie
ld
13
2-3. Business Promotion System
Introduction of an executive officer system to speed up
decision-making on business strategies.
Board of Directors
Domestic Water
and Sewerage
EPC Segment
Delegation of authorities
Speedy Decision-Making
Executive Officers
14
15
3-1. Business Strategy of Plant Engineering Segment (1/2)
プラント エンジニアリング事業 サービス ソリューション事業
国 内
海 外
EPC事業の
強化
O&M事業の
強化
PPP事業の
拡大
海外事業の
基盤構築
Strengthen EPC segment in the water and sewerage field
Basic Policy
S
p
e
c
if
ic
E
ff
o
rt
s
Develop our unique
differentiated technology
Expand engineering domain
Promote engineering with
maintenance in mind
Measures based on Basic Policy
Main products that support EPC segment
Ceramic membrane filtration
system
(Delivered to projects including
Kawai Water Purification Plants
in Yokohama)
■
Ozone processing system
EPC
Overseas
O&M
PPP
PE
SS
Domestic
Overseas
■
Circulating-type multi-layer
combustion furnace
プラント エンジニアリング事業 サービス ソリューション事業
国 内
海 外
EPC事業の
強化
O&M事業の
強化
PPP事業の
拡大
海外事業の
基盤構築
16
3-1. Business Strategy of Plant Engineering Segment (2/2)
Target North America and Europe to expand business size
Basic Policy
S
p
e
c
if
ic
E
ff
o
rt
s
Obtain partners in the strategic
area
Localize management and
engineering
Develop technology to meet
local needs
Measures based on Basic Policy
Main products that support Overseas
segment
Ozone processing system
(Delivered to Boston, the US,
and others)
CeraMac® and Ceramic membrane (Delivered to water treatment plants in Andijk, the
Netherlands)
(* ) “CeraMac ®” is a trademark of PWN Technologies. Fast rainwater treatment system
EPC
Overseas
O&M
PPP
PE
SS
Domestic
Overseas
プラント エンジニアリング事業 サービス ソリューション事業
国 内
海 外
EPC事業の
強化
O&M事業の
強化
PPP事業の
拡大
海外事業の
基盤構築
17
3-2. Business Strategy of Service Solution Segment (1/2)
Reinforce O&M segment in the water and sewerage field
Basic Policy
S
p
e
c
if
ic
E
ff
o
rt
s
Improve efficiency by WBC
*1
Expand a backup system by
promoting the partnership strategy
Standardize maintenance
-operation management work
Measures based on Basic Policy
Main accomplishments in O&M segment
Concluded a DBO contract with the renewal project of Takizawa Water Purification Plant in Aizuwakamatsu City and others.
Maintenance-operation management work
■
Maintenance-operation management of Kawada Water
Recycling Center (2012 to 2014)
■
Maintenance-operation management of broad-area
sewerage-sludge treatment plants in the eastern basin in Hyogo Prefecture
(2013 to 2015)
*1: Water Business Cloud. Our unique ICT.
EPC
Overseas
O&M
PPP
PE
SS
Domestic
Overseas
プラント エンジニアリング事業 サービス ソリューション事業
国 内
海 外
EPC事業の
強化
O&M事業の
強化
PPP事業の
拡大
海外事業の
基盤構築
18
3-2. Business Strategy of Service Solution Segment (2/2)
Expand the business size by creating PPP projects
and efficient management
Basic Policy
S
pe
c
if
ic
E
ff
o
rt
s
Propose and create PFI/DBO projects
by taking advantage of the PFI
proposal system, etc.
Complement insufficient functions
with partnership
Shift to a broader area and develop
asset management tools
Measures based on Basic Policy
Main accomplishments in PPP segment
Yokohama City: Redevelopment project of Kawai Water Purification Plant
Aizuwakamatsu City: Renewal project of Takizawa Water Purification Plant
Aichi Prefecture: Development and operation of sludge treatment facilities in Toyokawa Water Purification Center
EPC
Overseas
O&M
PPP
PE
SS
Domestic
Overseas
19
3-3. Investment Plan
Main Contents
Business
Investment
• Expand the engineering domain.
• Complement insufficient functions with
partnership.
R&D Investment
• Develop our unique differentiated technology.
• Shift to a broader area and develop asset
management tools.
From Term ending March 2016 to Term ending
March 2018 Total:
20 billion yen Level
20
21
4. Efforts in CSR Activities
Based on a lively corporate culture, continue to be a fair and
honest company and a good corporate citizen, contributing to
society and the environment through business
Compliance
Information disclosure and
control
Internal control
Personal information protection
B
a
s
ic
C
S
R
Risk management
Countermeasures against
disaster and business
continuation
Comply with laws, regulations and internal rules.
Disclose and control information properly.
Execute internal control without fail and expand its scope.
Strengthen personal information protection and information
security.
Minimize business management risks and operational risks.
Promote business continuation management in case of an
incident.
Environmental harmony
Utilization and development of
human resources
Contribution to society
V
a
lu
e
c
re
a
ti
o
n
C
S
R
Promote activities to reduce environmental loads.
Utilize and develop diverse human resources and promote
human rights.
Participate in community activities regionally.
C
S
R
re
la
te
d
to
B
u
s
in
e
s
s
Contact regarding this document
Investor & Public Relations Department, METAWATER Co., Ltd.
E-mail: [email protected]
Disclosure Policy
1. Basic Policy
Based on its corporate philosophy, the METAWATER Group strives to become a corporate group that meets expectations of every stakeholder, garners trust from society and continuously contributes to society so as to achieve sustainable growth in society. In accordance with this viewpoint, the METAWATER Group discloses corporate information related to the Group to stakeholders and society in an equal, fair, timely and appropriate manner. It also promotes active communication with stakeholders to facilitate understanding of the METAWATER Group and ensure highly transparent and reliable business operations. 2. Basics of information disclosure
The METAWATER Group discloses corporate information whose disclosure is required by relevant laws such as the Companies Act, the Financial Instruments and Exchange Act, and rules set out by financial instruments exchanges in accordance with the applicable laws, regulations or rules. Even if the corporate information does not fall under such information, the Group proactively discloses information as much as possible when it is deemed to be useful for stakeholders or disclosure is deemed to be necessary for society.
3. Method of information disclosure
For corporate information whose disclosure is required by the above-mentioned laws, regulations and rules, the Group discloses information in a manner set out by the applicable laws, regulations or rules, and through the Company’s website. Information that does not fall under such information is disclosed through the media, the Company’s website or other appropriate means in consideration of its significance and urgent needs.
4. Communication after information is disclosed
The METAWATER Group actively communicates with stakeholders regarding disclosed information by answering questions in a conference, briefings meeting, interviews and inquiries. Opinions received from stakeholders through communication are shared within the Company’s Group and treated as future reference. 5. Silent Period
In order to prevent the leaks of accounts closing information and ensure fairness, the Group sets a silent period that starts on the day after the closing date (including quarterly periods) through to the day of announcing financial statements. During this silent period, the Group does not answer any questions in a conference, briefings meeting, interviews and inquiries regarding the accounts closing and business prospects, except where information on a revision of business forecasts is disclosed.
6. Forward-looking statements
Of business forecasts, strategies and targets disclosed by the METAWATER Group, forward-looking statements are made based on information available to the Company’s Group as of the date of disclosure and a certain grounds that are deemed to be reasonable. Actual performance may differ from forecasts as a result of various factors.
7. Establishment of Internal Structure
The METAWATER Group builds an internal structure and establishes internal rules so as to comply with this Disclosure Policy, disclose information in an appropriate manner, and communicate with stakeholders.
