The President's New Year Message for 2015

I'd like to wish you all a very Happy New Year.

We entered into a new stage on December 19 last year when we were listed on the first section of Tokyo Stock Exchange. Our industry category is "Electric Power & Gas," engaging in businesses associated with social infrastructure such as power and gas. We are the only water supply company listed.

Last year we achieved some projects contributing to the future growth of the Company, such as the start of the water supply at Kawai Purification Plant Cerarocca of Yokohama Waterworks Bureau for which the renewal, operation and maintenance of the purification plant will be managed in the PFI method for the first time in Japan; the launch of the renewal and improvement project of Takizawa Purification Plant in Aizu-Wakamatsu City, for which renewal of the purification plant and maintenance of the facility including water delivery and distribution uses the DBO method; and acceptance of an order for an improvement project of the wastewater treatment facilities for a fish processing factory complex in Onagawa, Miyagi Prefecture. The entire project including the improvement of wastewater treatment facilities, operation and maintenance of the facilities and collection of use charges will be implemented by the self-supporting system, the PFI method. Of particular note is the fact that Yokohama Waterworks Bureau won the "Water Supply Innovation Award" for the improvement project of Kawai Purification Plant, because the project serves as a model for water-supply entities nationwide, which pursue increased water management and secured sustainability of water supply operations. We are truly honored to be able to engage in such an excellent business.

In international operations, a large purification plant using the ceramic membrane filtration system we supply has started operations in the Netherlands, and we received an order for the ceramic membrane filtration system in the US, both of which created momentum for future business expansion.

It is expected that the pace of changes in the market environment will be accelerated. While competition is increasingly intensified, we will see new business opportunities such as the privatization of the water and sewage business and the expansion of our business scope. We will develop from an engineering corporation in the water and environment field to a company providing total solutions for water and environmental infrastructure. In addition, we will address new technology development and expand our business field by utilizing funds obtained from listing in order to accelerate overseas operations. We will also strengthen corporate governance and compliance as a listed company, as well as our CSR efforts.

As we will enter into a stage of new growth this year, all employees will work keeping in mind the idea of Innovation, Challenges and Diversity; meet the expectations of our stakeholders including individuals, local governments, shareholders, investors, clients and partner companies; and strive to become a company that garners the trust from the community.

Tomoyasu Kida
President and Representative Director

The "Water Innovation Award" has been given by the Japan Water Works Association in order to recognize its regular members who endeavor to solve issues they have and heighten the momentum for the waterworks industry to launch new initiatives.

Please see the following web site for the overview of the award given to Yokohama Waterworks Bureau.

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