Message from the President & COO

Message from the President & COO

The Japanese economy in the consolidated fiscal year ended March 31, 2019 was on a gradual recovery trend as a whole, backed by improvements in corporate earnings and employment and income environments. On the other hand, the business condition continued to remain uncertain due to the influences such as the trade conflict between the U.S. and China and natural disasters occurred in many parts of Japan. In such a business environment, each business segment of our corporate group steadily promoted various implementation measures set out in our mid-term business plan “NEXT-2020 Ver. 3” by placing the two wheels of “structural reform of existing businesses” and “growth strategies through M&A” on the standard of our growth strategies.

As a result, for the consolidated performance, the net sales were ¥801.5 billion, which was an increase of \47.9 billion. The operating income was ¥43.6 billion, an increase of \1.2 billion compared to the previous year, ordinary income was ¥47.0 billion, an  increase of \2.3 billion from the previous year and current net income attributable to shareholders of the parent was ¥26.5 billion, an increase of \1.3 billion compared to the previous year. With regard to sales and all profits, our group achieved the highest performance ever.

We are working to achieve a medium-term management plan “NEXT-2020 Final,” of which implementation period is 3 years from fiscal 2019 to fiscal 2021, as the finalization of the “1 trillion yen corporate vision,” which we have been promoting since fiscal 2010. The basic concept of this medium-term management plan is "reform = execution of innovation." In order to create a strong company capable of achieving sales of ¥ 1 trillion and sustainable growth after fiscal 2022, we will implement basic policies to promote “reform” of business models that anticipate changes in the environment and business measures linked to that.

For example, in the industrial gases business, based on the expansion of gas production bases and cylinder filling stations at "VSU" plants, we strongly promote the “VSU” strategy which deepens domestic gas business by eight regional operating companies across the country cooperating with leading partners in each area.

In the medical business and agriculture and food products business, we have positioned those as pillars of future growth and are working to expand the scale of our business through aggressive investments such as M & A and capital investment. For example, in the medical business, in addition to advanced medical facilities such as operating rooms and ICUs, peripheral products and consumables such as sterilization services and surgery sets will be comprehensively proposed to expand business of the perioperative field. In the agriculture and food products businesses, along with decentralizing production areas for stable profits, we will improve profitability by capital investment for labor saving and expand business areas centered on the vegetable processing field.

In addition to these, as a business that is responsible for the next generation growth after fiscal 2020, we have set “Power business,” “Strengthening overseas strategies” and “Building a new technology company” and have made strategic investment in view of specific business development. With each business exerting its strengths through these growth measures, we will create a strong company that achieves the 1 trillion yen corporate vision and enables sustainable growth.

We would like to ask for continued understanding and support to the Air Water Group which will expand its business diversity more and more and challenge the future with its own strategy.

AIR WATER INC. Chief Operating Officer Kiyoshi Shirai