Messages from manager from each business section

Plant Engineering DivisionInternational Business Division

We will bring new value and contribute toachieving a sustainable society.

We will bring new value to the world together
with local business partners

Senior Executive Officer and Executive General Manager of

Director, Senior Executive Officer and Executive General Manager ofNoboru Okuda Plant Engineering Division●The Overseas Headquarters operates businesses in countries around the world centered on North America and Europe, which have advanced environmental regulations,

treatment plants at home and abroad, as well as the engineering, procurement, and construction of a variety of devices used with the equipment. METAWATER

as well as Asian countries, which are enhancing infrastructure development. The businesses are conducted primarily by leveraging the Company’s unique technologies

is a unique corporation with expertise in both mechanical and electric technologies. We design and construct eco-friendly plants incorporating energy-saving,with emphasis on relationships with local business partners. Some data suggest that the aggregate scale of the global water markets stands at around 2.8 trillion yen inenergy-creation technologies, etc. using electric technologies that maximize our unique mechanical technologies and capabilities. Combining mechanicalterms of capital investment, which is 10 times larger than the Japanese market, and around 30 trillion yen in terms of operation and maintenance. Supported by increasing

and electric technologies and product development expertise, we develop efficient water treatment plants and sewerage treatment plants, save energy, andpopulations, these figures are likely to grow further in the future. By developing water and environment fields, the Company seeks to contribute to achieving Sustainableefficiently use resources.

Development Goals (SDGs) in the light of improved sanitary conditions, while building communities that offer comfortable lives and preventing global warming.

Given
the frequent occurrence of local heavy rainfalls in recent years,‌Initiatives for SDGs
■ Targeted SDGs

In‌ North America, Aqua-Aerobic Systems, Inc. (AAS) became a subsidiarycumulonimbus clouds at an early stage, and project rainfalls to mitigate

base, supported by a competitive product portfolio including cloth media

flood damage. In addition, we work to improve confluences of rainwater

filter systems, and batch-type sewage treatment devices, etc., applying

and wastewater with high-speed membrane filtration technologies, which

its unique technologies, with which it has acquired a strong market

contribute to elevating water quality in rivers and marine areas.

presence, and distribution networks spread throughout the US. WithIn‌ the Sewage High Technology Demonstration Project (B-DASH Project)

AAS as a major operating base in the North American markets, we havesteered by the Ministry of Land, Infrastructure, Transport and Tourism,

gradually expanded our product lines including ozone generation devices●

processing capacity by installing a cassette in the filtration section using
the existing framework at the final sedimentation tank.
We‌ are proposing a number of solutions including fuel cell technologies, which
contribute to saving energy at treatment plants by generating clean powerfrom sludge digestion gas emitted through the process of sludge treatment.
We‌ are contributing to building local communities that offer comfortable lives●

through a disaster rehabilitation project on the coast of the Tohoku region.
●●

Internal meeting of engineers

Implementing
leading-edge technologies, including‌advanced water-quality improvement technologies, energysaving technologies, and clean energy power generation for
degraded water purification plants and sewage treatment
plants enables stable supplies of safe and clean water ofsufficient quality and capacity through plant construction.
Constructing
sustainable plants with downsized‌
technologies in response to a social environment withfalling populations and super-aging societies
Developing
technologies and supplying solutions for‌increasing sewage inflows due to abnormal weather
such as heavy rainfalls
Engaging
in disaster rehabilitation work centered on the coast‌of the Tohoku Region and contributing to building sustainablelocal communities by improving the water environment

Future developments
Looking at trends over the next 10 years, we will have to respond to significant environment changes, expansion of PPP projects, a serious
shortage of engineers and aging facilities, evolution and expansion of IoT and AI, and development of work-style reforms. To respond tochanging social and customer needs driven by these changes in the business environment, the Plant Engineering Business Headquarters willtake up the challenge and pursue optimal engineering, procurement, and construction, and bring about new value, thus contributing to achievinga sustainable society.
17●of the METAWATER Group in 2016. The company has a stable profit

lead to reductions in construction costs and improvements in sewerage●Major business activities

we identify rain clouds using radar installed on high ground, detect

we are working on demonstration research for technologies which will

●Ichiro Fukushima International Business Division

The Plant Engineering Division is engaged primarily in the design and construction of mechanical and electric equipment for water treatment plants and sewage

Major business activities●Management and Operations Overview

Strategy for the future

METAWATER REPORT 2018using its unique technologies for improving the environment, as well as
ceramic membrane filtration systems.
●Initiatives for SDGs
■ Targeted SDGs●

Sellingsewage treatment devices and clean water‌devices in North America●

Developing
ceramic membrane filtration technologies in‌
collaboration with overseas institutions●Implementing
advanced energy-saving sewage treatment‌systems in Asia

●Diffusing
in-vehicle water purification devices‌●Creatingjobs and providing education through local‌
companies, subsidiaries, representative offices, andprojects in local areasIn‌ Europe and Singapore, in collaboration with local water-supply entities
and their subsidiaries, we seek to formulate and expand our businessbase centered on sales of mechanical devices such as the CeraMac®
system—an energy-saving and space-saving water-supply systemequipped with our ceramic membrane as its core.

●In‌ Asia, we are currently constructing the first machine of an advancedenergy-saving sewage treatment system in Vietnam, which has been
acknowledged as an overseas-oriented technology by the Japan Sewage
Works Agency. We intend to enhance projects in response to local needs,
including use of the Official Development Assistance (ODA) framework.

●In‌ other activities, we have sold a total of 24 in-vehicle ceramic membrane
filtration devices in five African countries and Southeast Asian countries.
We received a letter of gratitude from the Myanmar government for
filtration devices used at times of floods. As a result, we are contributing
to the development of local communities.

Future developments
In other markets, we will seek to acquire new business partners in order to develop our environmental technologies primarily throughinternational collaborations. Furthermore, we will strive to proactively enhance localized operations that root our businesses in local
communities and offer the world new value using the features of a Japanese corporation. As a result, we will continue to contribute to achievinga sustainable society.

METAWATER REPORT 201818

Messages from manager from each business section

PPP Division

We will continue to create and offer new services
that contribute to sustaining water andenvironmental infrastructure.

We will focus on formulatinga new business base as a front runnerin the PPP business.

Executive Officer and Executive General Manager of

Executive Officer and Executive General Manager ofMakoto Shimizu Service Solution Division

The Service Solution Division is engaged in business activities that include inspection, repair, operation, and maintenance of mechanical and electric equipment of

The PPP Division promotes PPP projects in the domestic water supply and sewage market. In Japan, we need to take early measures to resolve a string

domestic water supply and sewage facilities, as well as design, construction, operation, and maintenance of waste treatment facilities (bulk waste, incombustibleof issues including falling revenue and a lack of engineers in local governments operating water supply and sewerage projects, at a time when there

waste, and recyclable waste). Given a domestic water supply and sewage business facing degradation of facilities and equipment, there are high expectations of private

are declining populations, degradation of facilities and equipment constructed during the period of high economic growth, and major earthquakes andcompanies when local governments are experiencing financial squeezes and there are shortages of engineers and staff to operate and maintain facilities. The Service

torrential rainfalls. Since the implementation of the PFI Act in 1999, public infrastructure developments have been carried out through PPP, using capital,Solution Division provides services through networks run by 30 operating bases across the country. Our services are oriented toward customers in local communities. For

technologies, and know-how of the private sector. Furthermore, the PFI Act revised in 2011 incorporated the “Proposal System by Private Sectors.” PPP

instance, if a customer experiences an emergency, such as a failure or problem with mechanical and electric equipment, we visit them immediately to provide support.

projects using the private sector with the scope for wider area operations are likely to expand further.

Major business activities●●We‌ provide wide-area administration services for facilities, based on theInitiatives for SDGs
■ Targeted SDGs

●We‌ undertook the “Comprehensive Consignment of the Arao City
Water Business, etc.” in 2016, which was a consigned project packageand registry services for equipment and devices to support asset

comprehensively covering areas from customer services to asset

management.

management for water supply facilities. When launched, this consigned

We
propose optimal solutions to achieve energy savings, automation,‌In‌ the same year, we also participated in a project related to a third-sector

We
strive to strengthen partnerships with local companies in order to‌company, Kitakyushu Water Service Co., Ltd., with joint investments from theoffer more stable and local-community oriented services.

municipal government of Kitakyushu City, Fukuoka Prefecture, and six private●

Contributing
to generating and supplying safe and clean‌water by maintaining the functions of clean water
treatment equipment and devices
Contributing
to stable operations by maintaining the‌functions of sewage treatment equipment and devices(maintenance of discharged water quality)●

Supporting
innovations and energy-saving maintenance‌
operations by offering new technologies and newservices, such as automated unmanned operation●‌‌Services for WBC-based and SaaS-type operations(providing software and software operating system
environment through a network)●‌‌D esign and operation of waste treatment facilities
with functions attached which enable local residents toaddress the importance of reducing and recycling waste,
and supporting their education and encouragement●‌‌Reinforcing the service solution business throughpartnerships with local companies

Maintenance management operation using WBC■ Targeted SDGs●

‌‌Activities ranging from design and construction tooperation and maintenance of water treatment plants,
including mechanical and electric equipment●In‌ the implementation of governmental projects requiring
full accountability to the head of the local government,parliament, and general public, we propose appropriate
solutions for issues including coverage of a project andreasons for selecting consignee. A number of our uniquevalue-added services for PPP projects are also proposed.

●Executionof a Business Continuity Plan (BCP) in the event‌of a natural disaster such as water supply activities
following the Kumamoto Earthquakes in April 2016.

companies, and are engaged in monitoring operations and centralized control
of municipal water and wastewater facilities and other wide-area projects.
●In‌ addition, we were consigned the Nakatsugawa City’s comprehensive watersupply consignment project (Gifu Prefecture) and other projects, and theconsigned areas covered were expanded, including involvement in business
operations for management and planning support and administration of watersupply and sewage pipelines, which had previously been undertaken by local
governments and governmental institutions. As a result, as a growing company,
our consigned business areas offering total solutions have expanded.

Completion ceremony of the Takizawa water purification plant in Aizuwakamatsu City

Future developments
In the future, in addition to conventional maintenance services, we plan to provide new services including a variety of outsourced services
related to stock and asset management, along with expanding PPP projects.
We also implemented the first profit-sharing system in Japan, in which profits are to be returned to a local government in the event thatpurchases and sales of recyclables (metals, cans, and PET bottles) resulting from the sorting process of a waste treatment, exceed targets.
Based on these proven achievements, we will continue to proactively promote initiatives that strengthen partnerships with local companies andlocal governments.

METAWATER REPORT 2018

Initiatives for SDGs

project was the first in Japan to provide comprehensive coverage.
●●19Major business activities

Water Business Cloud (WBC) using IoT and cloud computing technology,and unmanned operations using new technologies and services.
●Masashi Sakai PPP Division

Management and Operations Overview

Service Solution Division

Future developments
Amid increasingly expanding business areas that are expected to be covered by the private sector, we have positioned the PPP business as agrowth area and seek to formulate a new business base targeting privatization and wide-area services in the water and wastewater businesses.
We have already participated in more than 30 PPP projects. In the future, we intend to promote the following three measures and work on
business expansion as a front runner in the PPP market: (1) creating projects making use of a proposal system under the PFI Act; (2) improving
efficiency and developing tools such as asset management tools using ICT; and, (3) promoting alliances and partnerships, and responding to
wide-area services with comprehensive service packages.

METAWATER REPORT 201820