METAWATER : REPORT 2021

The Fiscal Year Ended March 2020

We will continue to contribute to

local communities, society, and conservation of the global environment by

solving water and environmental issues.

The METAWATER Group's Corporate Philosophy

Continue,

to make it sustainable.

We continue to be sincere in what we do. We work on problems earnestly and strive to provide solutions.

We continue to collaborate with our partners. We respect our partners and work to achieve with diverse knowledges, technologies and cultures.

We continue to innovate for the future.

We experiment in new ideas and take challenges.

To make sustainable what is truly important.

Issuing the "METAWATER REPORT 2021"

As a company engaged in water and environmental infrastructure, the METAWATER Group will actively engage in environmental conservation and other social contribution activities in cooperation with local communities as a corporate citizen, thereby contributing to the realization of a sustainable society and the global environment. We have issued this report to communicate the entire picture of our group in an easy-to-understand manner. Besides our corporate philosophy and main business activities, it offers comprehensive and concise information about our activities including the following: Financial information such as changes in performance and our Midterm Business Plan as we look to achieve our long-term vision; and CSR activities not listed in the financial statements and non-financial information such as social contribution activities as a part of CSR activities.

• Period in the scope of reporting

The performance for FY2019 (fiscal year ending March 2020) is the main scope for this report. However, some events in this report may have occurred before or after this period.

• Reference guidelines

• ISO26000 (International Standard of Social Responsibility issued in November 2010)
• Ministry of Environment: Environmental Reporting Guidelines (Version 2018)
• International Integrated Reporting Council (IIRC): International Integrated Reporting Frameworks
• GRI Sustainability Reporting Guideline
• United Nations Global Compact
• Guidance for Collaborative Value Creation, Ministry of Economy, Trade and Industry

1

Contents

Our aim		Our path to growth		Our sustainability		Data section
1	Corporate mission	11	Midterm Business Plan	31	METAWATER Group's ESG	57	Financial Information
3	Our history	13	Message from the CFO	33	Environment	87	Corporate Information
5	Our businesses and vision	15	Performance highlights	39	Social
7	Top management's message	17	Business highlights	49	Governance
		21	Introduction to business operations
		29	Sustainable business model

Glossary

EPC	Design and construction of facilities and equipment	SPC	Companies whose purpose is to run specific business operations
O&M	Operation and maintenance of facilities and equipment	PFI Act	An act related to the promotion of public facility improvement, etc. by making positive use of funding from the private
PPP	A concept referring to an approach allowing the private sector to participate in projects related to public services offering		sector and so forth.
	in a wider sense. Improvement of efficiency and quality of services are sought by making positive use of private funds,	Concession	An approach granting operating rights of public facilities that collect usage fees to a private business while the public
	technologies, know-how and management skills.		entity maintains ownership.
PFI	Comprehensive implementation of facility design, construction, maintenance, repair, etc., utilizing the capital and	WOODAP	Concepts for design, construction, operation, and maintenance centered around quick recovery in the event of a disaster
	know-how of private businesses.	ABW	ABW (Activity Based Working): A work style in which workers can freely choose the time and place where they work
DBO	An approach using the know-how of private businesses to comprehensively implement facility design, construction,		according to the content of their job.
	maintenance, repair, etc	WBC	Water Business Cloud（WBC）：METAWATER's unique information and communications platform for real-time sharing of
DB	An approach using the know-how of private businesses to comprehensively implement facility design and construction.		information and the analysis and utilization of collected information

2

Our history

Contributing to solutions for various social issues in the water and environmental fields

2008 Apr.

.Apr

As a result of integration of

mechanical and electric technologies,

Establishment of METAWATER Group

the water reuse system combining

ceramic membrane and ozone

treatment (Shibaura Water

Reclamation Center, Tokyo) and

The METAWATER Group was established as a comprehensive

multi-layer fluidized incinerator

engineering enterprise engaged in the water and environment fields by

contributing to reducing greenhouse

a merger between the water and environment operating subsidiaries

gas emissions (south sludge plant in

of the NGK Group and Fuji Electric Group.

Tokyo) commenced operations

2008

2009

2010

2011

.Apr

Established the Europe

.Apr

Launched the reconstruction of

.Sep

METAWATER SERVICE Co.,

.Apr

Launched a new business

Representative Office in

Kawai Purification Plant, Japan's

Ltd. took over the sewage

called Water Business Cloud

Germany (relocated to the

first PFI project covering the

works business of the CHUGAI

(WBC) to support the water

Netherlands in 2014)

renewal of the entire purification

RO Group

and wastewater business

plant and its operation and

.Oct

management (Yokohama City,

Established a representative

.May

Installed small ceramic

Kanagawa Prefecture)

office in Hanoi, Vietnam

membrane water purification

.Jul

equipment in Ishinomaki,

Acquired the environment

Miyagi, to support emergency

business of Kurimoto Technos

water generation

aimed at strengthening and

expanding the resource and

Aug

Introduced MBR*1 equipment to

environment busines

Ofunato, Iwate, as part of

.

efforts to support

Aug

Held first "METAWATER

reconstruction after the Great

Mission Uchimizu"

East Japan Earthquake

.

.Sep

Established the JSWE-METAWATER

Best Paper Award with the Japan

Society on Water Environment

(JSWE) for the purpose of fostering

researchers in the field of water and

the environment and vitalizing

academic societies

.Apr

.Dec

The "Omuta and Arao Joint Water Treatment Plant (Ariake Water Treatment Plant)" commenced operation as a Design, Build and Operate (DBO) project for rehabilitation of a water treatment plant by two adjacent municipal authorities across a prefectural border

Delivered first mobile ceramic membrane water purification equipment to African countries (Republic of Malawi, Republic of Kenya, Republic of Togo)

2012

.Jan		METAWATER USA, INC. was
	established in the United States
		as the METAWATER Group's
		first overseas subsidiary
.Apr		Relocated the Head Office from
	Toranomon, Minato-ku, Tokyo to
		Kanda-sudacho,Chiyoda-ku,
		Tokyo
		Established a representative
		office in Phnom Penh, Cambodia
		2013
.Jun		Undertook capital increase of
	System IO Co., a subsidiary of
		Nihon Suido Consultants Co., Ltd.
Aug		Formed capital and business
	alliance by undertaking
.		third-party allocation of shares
		of Rood Wit Blauw Holding
		B.V. in the Netherlands
.Oct		Started providing "Smart Field
	Service," a water and sewage
		infrastructure management
		service, in collaboration with
		Fujitsu Ltd.
		●Net sales exceeded JPY
		100.0 billion
		Business alliance
		and collaboration
		● Nihon Genryo Co., Ltd.
		● Suido Kiko Kaisha, Ltd.
		● Kokusai Kogyo Co., Ltd.
		● PWNT B.V. (the Netherlands)

.Apr	HyBrid Chemical Co., Ltd. in the
chemical business was
	established based on joint
	investment between a
	subsidiary of the Tsukishima
	Kikai Group and METAWATER
	SERVICE Co., Ltd.
	Launched the effluent treatment
	facility reconstruction project for
	the seafood processing complex in
	Onagawa-cho, the first
	financially-independent-type PFI
	project in plant management in
	Japan (Onagawa-cho, Miyagi)
	Launched the "Takizawa Water
	Purification Plant Renovation
	Project" (Aizuwakamatsu,
	Fukushima), a water facilities
	renovation project covering water
	intake to faucets
	2014
.Sep	Established METAWATER TECH Co., Ltd.
engaging in maintenance and management
	of water and wastewater facilities
.Nov	Received the 2014 Nikkei Global Environmental
Technology Award for Excellence for our
	"simultaneous nitrification and denitrification
	treatment system," developed via joint
	research with the Tokyo Metropolitan
	Government's Bureau of Sewerage and Tokyo
	Metropolitan Sewerage Service Corporation
Dec	Launched the "Development and
Operation of Sludge Treatment Facilities
.	for Toyokawa Water Purification Center,"
	the first sewage project in Japan using
	the RO scheme*2 (Aichi Prefecture)

• Listed on the First Section of the Tokyo Stock Exchange

Business alliance and collaboration

• HORIBA, Ltd.
• Nagaoka International Corporation

3

Our aim

Our path to growth

Our sustainability

Data section

.Jan	Ozone generating system
commenced operation at the
	Wylie Water Treatment Plant in
	Texas, one of the world's largest
	water treatment plants

.Feb	Concluded a contract on the
"Water Source eco-project"
	(W-eco'p) with Yokohama
	Waterworks Bureau

	2015
.Mar	Won the top award in the
Water Technology Company of
	the Year section at the Global
	Water Awards 2015
.Sep	The TBS Radio program
"METAWATER Presents
	Mizuoto Sketch" began airing
.Oct	Concluded first business
agreement for development
	and operation of recycling
	center (Gotemba Oyama Kouiki
	Gyousei Kumiai Recycling
	Center) under the PFI scheme

Business alliance and collaboration

• NTT DATA

.Jan

.Apr

.Dec .Apr

Converted a U.S. water-treatment engineering company, Aqua-Aerobic Systems, Inc., and its subsidiary into wholly-owned subsidiaries

Arao Water Service*3 represented by METAWATER commenced business based on an agreement for comprehensive consignment of Arao City water business with Arao, Kumamoto

2016

Kitakyushu Water Service, Co., Ltd.*4 invested by Kitakyushu City, METAWATER, and others commenced business

Acquired ISO 55001 (asset management system) certification

.Mar	Concluded an agreement for a
naming rights partner for the
	Aichi Sewerage Science
	Museum
	Commenced operation of
.Apr	ceramic membrane filtration
water treatment plant in the
	United States (Basin Creek
	Water Treatment Plant in
	Montana), the first delivery for
	the METAWATER Group
	2017
.Nov	Established the "Facility
Operator Training Center" in
	anticipation of further
	comprehensiveness and wider
	area management in the water
	and wastewater business
	Created the "Island" satellite
	space as part of work style reforms

Dec	Received order for the
comprehensive management
.	business with facilities
	improvement of the Ofunato
	Purification Center comprehensive
	management business with
	facilities improvement,
	maintenance, and management to
	the private sector
	(Ofunato City, Iwate Prefecture)

						.Jan		Signed naming rights
							agreement with Nagoya City
			.Feb					Sewerage Science Museum
				Opened representative office
				in Singapore	.Apr
			.Apr				Began operation of sludge
				Held opening ceremony for		recycling facility as part of
				"Comprehensive outsourcing		"Area-wide Sewage Sludge
					of privately contracted			Recycling Project in northern
					services, including water			district of Akita Prefecture,"
					supply services" in			which will contribute to
					Fukuchiyama City			creating a recycling-oriented
			.Sep					society while also pursing
				Began operation of Singapore's			"business continuity" and a	.Jan
				first ceramic membrane filtration			"contribution to the local		Disposed of treasury stock by
				water treatment plant, the "Choa			community"		third-party allotment and
					ChuKang Water Treatment Plant"						retired treasury stock
			.Oct					Made Wigen Companies, Inc.
				Acquired treasury stock and			(USA) a wholly owned
				conducted tender offer for			subsidiary, in order to expand
					treasury stock			business in North America
	2018			2019			2020			2021
.Mar		Formed capital and business			.Sep		Began leasing "Container
	alliance by accepting new				Package Ceramic Mobiles
		shares of SkySeeker Co., Ltd.					(CPCMs)," packaged ceramic
		through a third-party allotment					membrane filtration equipment
						for water supply business
			Drone
		Formulated the "Midterm					operators
		Business Plan 2020"			.Oct		Signed agreement to
.Apr
	10th anniversary				implement "Kumamoto
						Prefecture Ariake/Yatsushiro
.Jun								industrial waterworks
	Announced new corporate
					operation project," Japan's first
	philosophy, "Continue, to					concession for industrial water
		make it sustainable."					supply
.Nov		First "Pre-treated Trickling			.Nov		Acquired all shares of Rood Wit
	Filtration" (PTF) unit, a type of				Blauw Holding B.V. of the
						Netherlands
		sewage treatment system for
		developing markets, began
		operation in Vietnam

*1 MBR: Membrane Bioreactor. Membrane separation active sludge method

*2 RO system: RO stands for Rehabilitate Operate. It is a scheme to upgrade and repair the facilities and then engage in operation and management

*3 A special purpose company that operates a water supply business and other services under a comprehensive consignment contract in Arao, Kumamoto Prefecture *4 Third-sector company responsible water-related operations across a wide area in Kitakyushu City, northern Kyushu, and overseas

4