Air Water Inc. · TSE:4088
Air Water — Investor Presentation (June 2025)
27 slides from Air Water's investor presentation, Jun 10, 2025
Slide 1: terrAWell30 2nd stage: Medium-term Management Plan (FY2025-2027)
ter rAWell3 0 2 n ds t age 2025.4.21 Medium-term Management Plan (FY2025 - 2027) terrAWell30 2nd stage June 10, 2025
Slide 2: Our Purpose
OUR PURPOSE The Air Water Group is united under the Purpose of “meeting society’s needs with nature’s blessings.” We have been working as one to contribute to enrich our society through solving social issues. © 2025 AIR WATER INC. All Rights Reserved. Our business provides constant and stable supply
Slide 3: Agenda
M ediu m - term M a n a gem en t P la n ( F Y2 0 2 5 - F Y2 0 2 7) Agenda terrAWell30 2nd sta ge • Growth Path • R e v i e w o f t h e p r e v i o u s M e d i u m - t e r m M a n a g e m e n t P l a n" t e r r AW e l l 3 0 1 s t s t a g e" Contents • P o s i t i o n i n g o f t h e n e w M e d i u m
Slide 4: Medium-term Management Plan (FY2025-FY2027)
Medium-term Management Plan (FY2025 - FY2027) terrAWell30 2nd stage © 2025 AIR WATER INC. All Rights Reserved. 4
Slide 5: Growth Path
Growth Path FY2024 Revenue 1,075.9 billion yen From the establishment of Air Water (FY2000) to FY2024 Revenue 6.8% Operating profit 75.2 billion yen CAGR (compound annual growth rate) Operating profit 7.6% 9.8% Revenue 7.5% 7.0% ROE 471.8 billion yen Operating profit Overseas sales ratio Progress of
Slide 6: Review of the previous Medium-term Management Plan
Review of the previous Medium-term Management Plan "terrAWell30 1st stage" For the 1st stage, the compound annual growth rate (CAGR) was 6.6% for revenue and 4.9% for operating profit, while capital returns remained flat. Revenue/Operating profit Growth in Focus Areas ROE/ROIC 20,000 900 Overseas in
Slide 7: Positioning of the new Medium-term Management Plan
Positioning of the new Medium-term Management Plan "terrAWell30 2nd stage" ■ Numerical targets From expansion of scale to pursuit of profitability 1st stage 2nd stage 3rd stage FY2022-FY2024 FY2025-FY2027 FY2028-FY2030 Expansion in scale Pursuit of profitability Evolution towards sustainable growth
Slide 8: Five Management Policies for the 2nd stage
Five Management Policies for the 2nd stage Seeking further growth under the following management policies: 1 Business Strategy 1. Growth and Profitability 2. Investment and Growth 2 Financial Strategy 1. Improvement of PBR 2. Cash generation 1. “Maximizing the potential of human resources” and “Util
Slide 9: Business Strategy 1. Growth potential and profitability
1 Business Strategy 1. Growth potential and profitability ■ Business portfolio strategy Pursuing profitability in existing businesses • Investing funds generated from cash cows, such as the domestic gas Improving production efficiency business, into high-growth businesses • Achieving highly efficien
Slide 10: Business Strategy: Digital and Semiconductor growth
1 Business Strategy 1. Growth potential and profitability Growth strategies Digital and Semiconductor Digital and semiconductor related location map Total solutions for semiconductor plants 25 strategic and sales locations • Continuing investment in high-purity gas plants essential for semiconductor
Slide 11: Business Strategy: Global Industrial Gas
1 Business Strategy 1. Growth potential and profitability Growth strategies Global Industrial Gas Global Promotion Framework Global Strategy • Capturing India's robust demand for industrial gas, by combining our strengths in Promotion Established in April 2025 plant engineering and plant operation t
Slide 12: Business Strategy 2. Investment and growth: Long-Term Growth Strategy
1 Business Strategy 2. Investment and growth Long-Term Growth Strategy Renewable energy and carbon neutrality Food security (Agricultural solutions) • Leveraging our strengths in energy gas handling technology and the domestic gas • Utilizing a long-running agricultural business in Agricultural busi
Slide 13: Unit-based system with 15 units
1 Business Strategy 2. Investment and growth Continuing efficient and speedy business execution through a unit -based system while flexibly establishing and reorganizing operations to create synergies 15 units Esta blishmen t a n d r estr u ctu r in g in Apr il 2025 Globalenvironment Wellness High g
Slide 14: Financial Strategy 1. Improvement of PBR
2 Financial Strategy 1. Improvement of PBR Striving for continuous improvements in market valuation (PBR) by achieving capital profitability that surpasses the expected rate of return (capital cost) ROE (Return on equity) Net D/E ratio Level: 0.8-1.0 Appropriate financial controls 12.0% or higher 11
Slide 15: Financial Strategy 2. Generating Cash: Capital allocation
2 Financial Strategy 2. Generating Cash Capital allocation(3-year total) FY2025 to FY2027 Plan (3-year total) Cash inflows Cash outflows Executing essential and sufficient Results for FY2022 to FY2024(3-year total) Investment investments within the maximized 320.0 billion yen operating cash flow Cas
Slide 16: Financial Strategy 2. Generating Cash: Capital efficiency
2 Financial Strategy 2. Generating Cash Maximizing capital efficiency through balance sheet management aligned with business structure and scale Optimization of business locations Optimizing working capital Sales of relational shareholdings and utilization of real estate Changes in the number of Tra
Slide 17: Financial Strategy 3. Shareholder Return Policy
2 Financial Strategy3. Shareholder Return Policy • Aiming to set the dividend payout ratio at 35% as our target level, gradually increasing it over time (the ratio was 30% until FY2023) Shareholder Return • Introducing progressive dividends to balance sustainable growth with enhanced shareholder ret
Slide 18: Human Capital Management
Human Capital Management 1“Maximizing the potential of human 3 resources” and “Utilizing people in management " Maximizing the potential of human resources Utilizing people in management Achieving productivity improvements and Developing managerial and other human continuous wage increases resources
Slide 19: Technology Strategy 1. Medium- to Short-term (competitiveness)
4 Technology Strategy 1. Medium- to Short-term Technology Strategy (Strengthening business competitiveness) Through rapid development under the business division, we prioritize investment profitability in technological development that delivers results quickly and enables swift market entry. Strengt
Slide 20: Technology Strategy 1. Medium- to Short-term (new business creation)
4 Technology Strategy 1. Medium- to Short-term Technology Strategy (new business creation) Going forward, we will harness the technological resources we possess to tackle the social challenges faced by our Company and its customers, driving the creation of sustainable new businesses. Strengthening c
Slide 21: Technology Strategy 2. Long-term Technology Strategy
4 Technology Strategy 2. Long-term Technology Strategy Established three research laboratories on April 1, 2025 We will continue to contribute to society and make progress by "creating the future of Air Water" in a future-oriented manner. Seawater Technology Research Institute Regenerative Medicine
Slide 22: DX Strategy 1. Improving productivity
5 DX Strategy 1. Improving productivity Advancing digital transformation (DX) through the systemization of overall operations and the automation of sales administration tasks Going forward, we will leverage an integrated data master platform and systems capable of revenue and cost management to stre
Slide 23: DX Strategy 2. Allocating Human Resources to Growth Fields
5 DX Strategy 2. Allocating Human Resources to Growth Fields Through initiatives that leverage AI and digital transformation to enhance operational efficiency and improve productivity, we will free up 30% of the resources in existing businesses, reskill employees, and allocate talent to growth secto
Slide 24: Target results for the 2nd stage of terrAWell30
Target results for the 2nd stage of "terrAWell30" 2027 Operating profit Guided by our purpose, we will continue to address social challenges while striving to create new value. 100 billion yen 2024 CAGR 9.9% Operating profit © 2025 AIR WATER INC. All Rights Reserved. 75.2 billion yen CAGR 4.9% 2021
Slide 25: Appendix: ESG Initiatives
25 © 2025 AIR WATER INC. All Rights Reserved. Appendix: ESG Initiatives
Slide 26: ESG Initiatives (Non-Financial KPIs)
ESG Initiatives (Non-Financial KPIs) Sustainability Vision Realizing a recycling-oriented society through coexistence with the local community and society Controlling the use of substances Response on climate change that affect the environment Recycle resources Achieving carbon neutrality Achieving
Slide 27: Notes
Notes • The numerical targets and forecasts presented in this document reflect the judgment of our company based on information currently available and involve potential risks and uncertainties. Therefore, the reader should note that actual business performance may differ significantly from the proj