Top management’s message

Yasushi Nakamura
President and Representative Director METAWATER, Co., Ltd.
Before being designated as the President and Representative Director in June 2016,
he experienced a series of management positions in the Plant Engineering and Service
Solution Divisions, as well as accepting the role of Executive General Manager of theCorporate Strategy Planning Division. He has been engaged as a key member of thedevelopment of the Water Business Cloud (WBC), and is well versed in business execution
in a wide range of fields supported by his affluent experience.

time while ownership of the water supply business and water

To realize our long-term vision, METAWATER will

infrastructure are maintained by the local government.

continue to take bold measures to respond to theSince the enforcement of the PFI laws in 1999, approximately

rapidly changing environment.

60 PPP applications have been accepted nationwide regarding

In the future, major environmental changes are expected,

the water and sewage field. The METAWATER Group has taken

including a further increase in the number of projects forpart in about half of those projects, handling everything fromfurther comprehensiveness and a growing demand forfacility design and construction to operation, maintenance,wider area management represented by concessions. Inand management. Up to now we have worked on a number ofanticipating these changes and strengthening our corporate

further comprehensiveness projects, including those supporting

structure to realize our long-term vision*3 aiming for sales

management and planning for local governments, feeof 200 billion yen, in April 2018 the METAWATER Group

collection, and support for residents, etc. In order to continue

formulated the "Mid-Term Management Plan 2020", whichwith the steady activities we have been engaged in during

will end in March 2021.

this period and to be able to take on wider area management

Under the "Mid-Term Management Plan 2020", we willprojects, we will be adopting the "three centers concept"

implement "strategic development investments" in addition tocentered around the "Training center for facility operators",

conventional development investments, and are also working on"Knowledge center", and "Supply center for parts". In addition,

development of products, solutions, and new businesses that are

we will work to reduce construction costs and improve

essential for medium- to long-term growth. In terms of businessmaintenance efficiency through the incorporation of cutting-strategy, we are capturing replacement demand and reinforcing

edge technologies such as AI* and ICT* . Furthermore, we are

the domestic EPC business, while at the same time steadily

1

In April 2008, the METAWATER Group was established asmanagement through public-private partnerships (PPP), andactively promoting the disclosure of information and aiming forincreasing a stock business, the domestic O&M business.

the first comprehensive engineering enterprise in Japanlegislation is currently underway to promote this. The Grouphighly transparent business operations.

We are also working to expand the domestic PPP business,engaged in the water and environmental fields. Since then,believes that Japan, which has experienced the Great East

which is positioned as a field for growth, and reinforce andwe have worked as a corporate group engaged in the social

Japan Earthquake, can create a sustainable water andexpand overseas business foundations, through regional andinfrastructure indispensable to industries and people's lives,

environmental infrastructure, and has been exploring howpartnership strategies making use of our results thus far.

promoting the fusion of mechanical technology, electricalbest to achieve that over time. Finally, we are ready to move

Additionally, we are promoting work-style reforms, creating

technology, ICT, and maintenance know-how, contributing toon to specific measures. We will continue to undertakesociety through water, sewage, and resource environment

sincere efforts in order to be a corporate group confidently

businesses. At the same time, we are also engaged in CSR

entrusted with the social infrastructure of the future.

activities such as working to conserve the environment and72contributing to local communities.

In response to the revised Water Supply Act, we will continue

Much of Japan's water and sewage infrastructure wasto undertake steady efforts to gain the trust of citizens.

developed during a period of high economic growth, andIn December 2018, the "revised Water Supply Act" wasthe aging of these facilities and equipment has becomeenacted. In this revision, the aim of the act was changeda serious issue. Another major issue we're facing is thefrom "planned maintenance" to "strengthening infrastructure"

recent increased occurrence of natural disasters such as

regarding water infrastructure. Additionally, prefectures

earthquakes, heavy rainstorms, and typhoons. However,

have become responsible for "wider area management", andlocal governments that plan and operate water and sewage

local government and other business entities are obliged to carrybusinesses are having problems of their own, such as decreased

out "maintenance of ledgers" and "appropriate maintenance andincome due to a declining population and a shortage of engineers.

repair". As another option for improving the efficiency of business,

In order to solve these problems, business operations

concession agreements can now be established as well, which allow

urgently need further comprehensiveness and wider area

operation of the business to be outsourced for long periods ofMETAWATER REPORT 2019

Main points regarding the revised Water Supply Act
1 T he aim of the Water Supply Act has changed from "plannedmaintenance" to "strengthening infrastructure" on thepremise of renewal, maintenance, and operation of thewater supply business
2 The promotion of "wider area management" is the responsibilityof prefectures, and the "maintenance of ledgers" and"appropriate maintenance and repair, including inspection"
are obligations of the local government
3 T he concept of water charges has been changed to "fair andreasonable to ensure sound management"
4 The "Water Facility Operating Rights Granting Permit Method"(concession agreement) was established as a private-public
partnership method

Management and Operations Overview

METAWATER will continue toundertake steady efforts to earn
the confidence and trust ofcitizens while also taking boldmeasures to respond to
the rapidly changing environment.

a work environment in which excellent human resources
will constantly join the company and enabling growth andinnovative work.
The environment in today's Japan is changing drastically
due to a declining population, frequent natural disasters,
etc. If you look overseas, the number of people without
access to drinking water has been rapidly increasing, andnumerous lives have been lost due to unsanitary water
environments. Under these circumstances, the technology,know-how, human resources, and information that theMETAWATER Group has available are indispensable.
We are making continuous efforts to ensure that the safe
and secure water environment Japan currently enjoys will

*1 AI : Artificial Intelligence; technology that gives computers recognition and inference capabilities
similar to that of humans*2 ICT : Information and Communications Technology related to computers and the Internet*3 Refer to “Achieving our long-term vision” (P15-16).

be available for our children, and their children as well. We
will also expand our efforts to overseas countries requiring
a better water environment.

METAWATER REPORT 20198