AIR WATER INC. (4088) Stock Price

Air Water operates through five business segments: Digital & Industry, Energy Solutions, Health & Safety, Agri & Foods, and Other Operations. Through these segments, the company provides a diverse range of products and services.

The Digital & Industry segment manufactures and sells industrial gases including oxygen, nitrogen, argon, carbon dioxide, and hydrogen. It also manufactures and sells electronic materials and functional materials. Key affiliated companies include Air Water East Japan and Air Water West Japan.

The Energy Solutions segment sells liquefied petroleum gas and kerosene, and manufactures and sells LNG-related equipment. Air Water East Japan and Air Water West Japan operate in this field.

The Health & Safety segment manufactures and sells medical gases, dental materials, hygiene products, injection needles, and aerosol products. It also provides hospital facility construction and home healthcare services. Related companies include Air Water Fire Prevention and Kawamoto Sangyo.

The Agri & Foods segment processes and distributes fresh produce, and manufactures and sells frozen foods and processed meat products. It also provides contract manufacturing for soft drinks. Gold Pack and Kyushu-ya operate in this field.

Other Operations include logistics services, manufacturing and sales of industrial salt, overseas industrial gas operations, high-output UPS business, and power generation using wood biomass. Air Water Logistics and Japan Sea Water operate as affiliated companies.

Air Water has announced its growth strategy "terrAWell30" targeting fiscal year 2030. This plan positions "planetary environment" and "wellness" as growth pillars, aiming for sustainable growth and enhanced corporate value through addressing social challenges. In fiscal year 2022, the company achieved 1 trillion yen in revenue, entering a new corporate stage.

In "terrAWell30 2nd stage," the company will shift from revenue expansion to profitability improvement. It will review existing operations and invest in growth businesses while improving low-growth, low-margin operations. By 2030, Air Water targets a market capitalization of approximately 1 trillion yen, pursuing evolution toward sustainable growth.

Air Water will strategically invest cash generated from high-margin businesses such as industrial and medical gases into industrial gas operations in India and North America, semiconductor-related sectors, and carbon-neutral initiatives. This approach will strengthen earnings capacity.

The company will also streamline its balance sheet to maximize capital efficiency. It will improve working capital efficiency through proper inventory management and optimization of cash conversion cycles.

Air Water aims to create new businesses addressing social challenges in carbon neutrality and agriculture. The company positions carbon-neutral initiatives as a significant business opportunity.

The company is also restructuring its research and development organization for new business creation. It will establish three new research institutes: the Seawater Technology Research Institute, the Regenerative Medicine Research Institute, and the Gas Technology Research Institute to drive technological innovation across these fields.

Strengthening human capital investment is also a key strategy. The company will focus on developing global talent and engineers, improving the ratio of female managers, and cultivating next-generation management personnel.

Through AI and digital transformation, Air Water will improve sales and production efficiency. It will establish a common data platform to support sound management decisions.

The company will also enhance shareholder returns by introducing progressive dividends and reviewing dividend payout ratios. Based on a standard of 35% of net income attributable to parent company shareholders, Air Water will implement stable dividends.