Water and Environmental Consulting & Software Solutions
In February 2017, NJS announced its Mid-term Management Plan and theFormulation and Implementation of Technologies and Know-How in line with thecurrent era of management operation. This Mid-term Management Plan is now
revised to incorporate recent changes in the business environment andtechnological development initiatives. Further, NJS will, in order to align with thecurrent rapid progression of globalization and digitization of socio-economics,adopt "Water and Environment Consulting & Software Solutions" as its Business
Policy with the aim to become a front runner in the field of water and environment
consulting.

The current global economy is on an expansion trend mainly due to stableexchange rates and growth of emerging economies. The progress of digitaltechnologies such as Artificial Intelligence (AI), Internet of Things (IoT), robotics
and big data is changing society and industries. Industries are now in the era ofimplementing digitalization for productivity enhancement.
Coverage ratio of Water supply and sewerage in Japan has reached 98% and 78%
respectively (with 90% coverage ratio for wastewater treatment), and it is now
entering the era of management operation. With declining population andfrequent natural disasters, Japan is now facing challenges such as improving
business efficiency, strengthening disaster countermeasures and renewal/
rehabilitation of aging facilities.
There is rising trend to establish public-private partnership (PPP) for water supply
and sewerage projects in order to improve project efficiency whilst various formsof business reform are expected to be developed nationwide for businessefficiency enhancement.
The demand for disaster countermeasures are being addressed by improving
structural measures such as disaster prevention along with the development ofinnovative digital technology such as countermeasure software that provide
accurate and timely information.

1In addition to carrying out renewal/rehabilitation works, it is imperative to utilize
digital technology and improve overall business efficiency through proper Life
Cycle Management.
Since its foundation in 1951, NJS, as a water and environment consultant, hasbeen carrying out various water supply and sewerage projects whilst developing
various new software solutions; although utilizing these technologies andknow-how to contribute to implementation of water supply and sewerage projectsof the digital age is a new challenge.
Major software solutions developed/distributed by NJS are as follows:
SkyScraper :Cloud-type

consolidated

softwarepackagecovering

administration, facility management and contingency recovery services.
KanroKarte ：Asset Management Tool for Sewer Collection Systems



AirSlider：Survey Drone for confined spaces



BioWin：Sewage treatment process simulator (International AuthorizedResellers for Envirosim)

In order to achieve sustainable development of water supply and seweragesystems,

NJS

willexpand

its

consultingservices,

strengthen

softwaredevelopment, and contribute to the utilization of digital technology andimprovement of productivity of water supply and sewerage systems. To reach said
goals, NJS will set "Water and Environment Consulting & Software Solutions" as its
business policy and work on resolving the following issues of the Mid-Term
Management Plan.
(1)

Realization of Infrastructure Life Cycle Management
Aging and deterioration of facilities developed during the period of highgrowth is progressing and there is an urgent need to undertake
countermeasures against deterioration of these facilities. It is critical torealize efficient life cycle management encompassing all works frominspection and investigation of aged facilities to implementation ofoptimum repair / remodeling and operation management.

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Through proper understanding of infrastructure life cycle, NJS will developand provide consulting services and software solutions which cater tothese stages of: inspection survey, analysis diagnosis, repair renovation,operationmanagement,disastercountermeasure,andoperationmanagement. Further, NJS will promote the development and sale ofrelated tools such as Inspection Survey Drone and improvement ofproductivity through Building Information Modeling (BIM) /Construction
Information Modeling and Management (CIM).
These services, software and tools will be catered for general purpose use
for infrastructure management of various other industries apart from thewater supply and sewerage industry.

Management through infrastructure lifecycle

3(2)Promotion of Public Private Partnership Project
Promotion of regionalization and PPP-projects are being strengthened toincrease efficiency of water supply and sewer facilities. NJS will, inaddition to improvement of consulting services, take a proactive role topromote and expand PPP-project which will enable NJS to create a diverse
business scheme based on regional needs, consultant-led project
formulation, and active participation in business management.

(3)

Globalization of Technology and Services
Management throughout the lifecycle of an infrastructure, advancementof operation management with AI/IoT and energy management,
productivity improvement through BIM/CIM are some issues that are
currently being addressed globally. NJS will focus on global technology
trends and proactively promote the introduction and diffusion of advanced
technologies. NJS will also expand its software solutions and tool on aninternational scale.
Development of technology and human resources is steadily progressing
with economic growth in emerging economies. PPP projects are being
adopted mainly in emerging economies and more than 1 billion people
now have access to water supply and sewerage services. Based on thesedemands, NJS will establish a global information gathering system, foster
local companies and strengthen cooperation, and promote globalization ofbusiness.

42020 targets;

Targets

1Billion JPY
FY2017FY2017FY2018FY2019FY2020Net Sales

16.4

16.6

18.0

18.7

20.0

Operating Income

0.8

1.2

1.6

1.6

1.7

Net Income

0.3

0.7

1.0

1.1

1.2

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Measures to be adopted to achieve targets are as follows:(1)

Promotionofsoftwaredevelopment

andstrengthening/

expansion of business structure
NJS will:
1. Promote the development of software solutions and related tools torealize comprehensive infrastructure lifecycle management andstrengthen sales and service system.
2. Promote the development of these software solutions and tools forother industries apart from water and sewerage industry.
3. Promote business alliances with diverse companies and institutions toacceleratetechnology

development

andpromotemarketdevelopment. Additionally, NJS will also actively promote businessexpansion through Mergers and Acquisitions (M&A).
(2)

Productivity improvement through process reform
NJS will:
1. Realize process reform through application of digital technology
promoting productivity improvement, and quality assurance
2. Realize flexible and diverse working styles through telework / mobile
work by mobile terminals and improve productivity.
3. Utilize and secure BIM / CIM's work for improving productivity ofdesign work and ensuring quality, and efficient information linkage
with the construction and maintenance phase. NJS will steadily
promote capital investment and human resource development.
4. Utilize BioWin software for sewage treatment plant function diagnosis,
optimization of design, operation management support, and improveadded value and service.

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(3)

Building and strengthening social capital
NJS will:
1. Strive to build and deepen social capital by internally and externallyemphasizing on reliance, norms and networks. To achieve this, NJS
will establish and strengthen quality control, human resource
development, working way reform, compliance and Corporate Social
Responsibility (CSR) activities.
2. Create an efficient and attractive workplace where work can be
carried out professionally and with a sense of security by adopting
mechanisms such as work-life balance, an IT-minded “Smart Office”
as well as a personnel system reformation to extend the retirement
age to 70, etc.
3. Work on improving its social obligation from the viewpoint of society,environment, people, community and governance and fulfill its social
responsibilities as a corporate citizen.

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