New medium-term management plan
“NEXT-2020 Ver.1”
Air Water, Inc. (Chuo-ku, Osaka; chairperson Hiroshi Aoki) announced its new three- year business plan “NEXT-2020 Ver.1” which starts FY 2010.
The new medium-term business plan not only succeeds the current medium-term business plan “Renovation 330” ending in FY 2009 but stands as the first step for the long-term growth vision “Vision for 1-trillion Company 2020” for the next ten years.
During the past ten years when Japan’s GDP showed the minimum growth, Air Water has marked a striking growth as its sales increased 230% and current profit increased 350% during the same period. It is greatly because of establishment of “All-Weather Management System” which led to a new management strategy developing a unique business portfolio which we call “Order Rodentia Style of Business.”
Based on the new management strategy, the new medium-term business plan implements new measures and develops “Foundation for Further Growth” to realize “Vision for 1-trillion Company 2020.”
About “All-Weather Management System” and “Order Rodentia Style of Business”
（All-Weather Management System）
Always striving for stable profits while seeking a business portfolio ideally balancing businesses for industry and for everyday life.
（Order Rodentia Style of Business）
Striving for sustainable growth as a group of businesses by continually creating and raising medium-sized companies which, like mice, have the vitality to swiftly accommodate to any changes in the environment, flexibly explore new fields, and carve out new businesses.
Management Vision “NEXT-2020”
「FY2020 / 1-trillion yen company」
3 basic principles and key terms
1.Revenue base restructuring in order to cope with management environment change
2.Sustained growth by development of new growth strategies
3.Challenges for NEXT-2020/ 1-trillion Vision
| Key terms |
|---|
| Foundation for Further Growth |
Main measures of new medium-term management plan
10 main measures (FY2010-2012)
| Revenue base restructuring | ■Business restructuring Restructure branch offices and regional business companies into 9 blocs to reinforce regional business system and promote and expand regional businesses. Seek for synergy effect of 10 independent business companies to improve their earning capacity. |
|---|---|
| ■Cost restructuring Regain earning power lost in recent economic slowdown by reducing procurement and distribution cost. |
|
| Development of new growth strategies | ■Growth strategies of each segment Expand business globally, especially to China and other Asian nations, breaking out of the conventional business structure focused more on domestic Industrial Gas Business, and reinforce business end such as regional business. Promote technology development, M&A and horizontal discussion and cooperation to shift business to growing markets and explore new business field. See below for detailed growth strategies of each field. |
| ■Capital investment, M&A investment Implement 90 billion investment plan in 3 years including 70 billion to capital investment and 20 billion to M&A investment. |
|
| Challenges for NEXT-2020/ 1-trillion Vision | ■Create Agricultural Business Enter agricultural business as a new challenge for 1-trillion Company Vision. |
| ■Foundation for global expansion Develop foundation in China as the first step to expand Industrial Gas Business on a global basis. |
|
| ■Become a technology-led company Promote technology development directly connected to creation of a new business to reinforce business restructuring and lead business expansion. |
|
| ■Human resource development and utilization Develop human resources leading “Order Rodentia Style of Business” and potential executives with the spirit of a corporate founder. |
|
| Improvement of Financial Condition | ■Based on stable Cash-Flow Build enough financial standing for “Challenges for NEXT-2020/ 1-trillion Vision” early. |
| ■Allotment policy 30% of consolidated net profit |
Management Targets
Numerical targets for New medium-term business plan “NEXT-2020 Ver.1”
(unit：100 million yen)
| 2009 （Forecast） |
New medium-term management plan “NEXT-2020 Ver.1” |
|||
| 2010 | 2011 | 2012 | ||
| Sales | 4,250 | 4,500 | 4,700 | 5,000 |
| Operating Profit | 270 | 290 | 330 | 350 |
| Current Profit | 280 | 290 | 330 | 350 |
| Current Earnings | 138 | 150 | 175 | 185 |
※The numerical targets and forecasts contained in this document are based on currently available information and are subject to hidden risks and uncertainties.
Please note, therefore, that the actual results of Air Water could differ materially from these projections, due to changes in various factors.
Presentation document
