Mid-term Management Plan

Mid-term Management Plan

We established a mid-term management plan “NEXT-2020 Final” of which implementation period is 3 years from fiscal 2019 to fiscal 2021. We are now finalizing the “1 trillion yen corporate vision,” which we have been promoting since fiscal 2010.

“NEXT-2020 Final” (FY2019-2021)(4.86MB)

Position of the mid-term management plan

This mid-term management plan “NEXT-2020 Final” is positioned as a period to complete the “1 trillion yen corporate vision for 2020”. We are planning to realize it in fiscal 2021 due to the influence from the transfer of coal chemical business for the structural reform of the chemical-related business.

 Position of mid-term management plan

Basic concept and policy

Concept

Reform = Execution of innovations Go back to the fundamentals that Air Water is founded on and build a strong company capable of delivering sustainable growth.

The basic concept of this mid-term management plan is “Reform = Execution of innovations”.
We will implement basic policies to promote “innovation” of business models with a view to environmental changes and implement management measures linked to them. And we will build a strong company that can achieve 1 trillion yen in sales and achieve sustainable growth beyond 2022.

Basic policy and Measures

Management objectives

  Final year of “Ver.3” New mid-term management plan“NEXT-2020 Final” Growth over 3-year period
FY2018 FY2019 FY2020 FY2021
Revenue 7,416 8,300 9,000 10,000 134.8%
Operating profit 427 480 530 600 140.6%
Operating profit margin 5.8% 5.8% 5.9% 6.0%
Net income 283 300 330 370 130.7%
  • *Net income = Profit attributable to owners of parent
  • *Assumed exchange rate: 113 yen to the dollar

Management indicators

  FY2018 FY2021
ROE
(Return on equity)
10.3% 10.8%
ROA
(Return on assets)
5.7% 6.2%
Overseas income ratio 5% 10%

Finance indicators

Financial indicators
Equity capital ratio 37%
Net D/E ratio 0.9

Shareholder return

We distribute of stable dividends appropriate to business results long into the future, aiming for 30% payout ratio.

Investment plan

The three-year investment is planned to be 240 billion yen, including M & A and capital investment. Under this mid-term business plan, we will continue to invest aggressively with the aim of improving business growth and profitability, launching a power generation business and further strengthening overseas expansion.

Investment plan

Final plan
(FY2019 – 2021)
M&A investment 70 billion
Capital investment Strategy investment 130 billion
Ordinary investment 40 billion
Total investment 240 billion

Contribution to solving social issues

Management philosophy and vision

The Air Water Group utilizes the earth's resources, such as air and water, and provides valuable products and services that are essential to our lives and industries in a stable and sustainable way. We also believe that we can contribute to solving various social issues through our business activities by taking advantage that we are a complex of a wide range of businesses.
In this mid-term management plan, we have set 4 areas - “Security, safety and disaster prevention,” “Healthcare,” “Clean energy” and “Water and environment” – where our group can particularly contribute to solving social issues.
In addition, our group released a brand statement “Meeting society’s needs with nature’s blessings” in 2018. Currently, each and every employee has been fostering a culture where they look at and listen to the society and challenge to solve various social issues resolutely. We will strive harder to create new values to continue playing an essential role that is trusted by the society.