Second quarter financial results briefing topics
Overseas business strategy
- Industrial gas business in India
- Overseas engineering business in North America
- High-powerUPS (uninterruptible power supply) business
November 8, 2019
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Business strategy 1: Industrial gas business in India
To establish a strong position in India's industrial gas market: About 12% share
Acquisition of business from Praxair India
- Date of business acquisition: July 2019 (included in the scope of consolidation from
■ Scale of business: | the 2nd quarter of fiscal 2019) |
Sales of about ¥7.9 billion/year (in the year ended | |
■ Company-owned facilities: | December 31, 2018 ) |
3 on-site ASUs for steel plants (in Jamshedpur) | |
■ Main supply destination: | 2 cylinder-filling stations (in Parbangla and Asansol) |
Tata Steel Ltd. |
Acquisition of business from Linde India
- Date of business acquisition: December 2019 (schedule)
■ Scale of business: | Sales of about ¥ 5.7 billion/year (in the year ended |
■ Company-owned facilities: | December 31, 2018 ) |
1 on-site ASU for steel plants (in Bellary) | |
■ Main supply destination: | 2 cylinder-filling stations (in Hyderabad and Chennai) |
JSW Steel Ltd. |
Establishment of an "upstream business" through the acquisition
of on-site supply bases and liquefied gas production bases
Ellenbarrie Industrial Gases Ltd.
■ Established in: | 1973 ※ Made into AWI's subsidiary in 2013 (equity stake of |
■ Scale of business: | 51%) |
Sales of about ¥2.6 billion/year (in the year ended March | |
■ Company-owned facilities: | 31, 2019) |
3 ASUs (in Ulveria, Vizag and Hyderabad) | |
5 cylinder-filling stations (above-listed 3 hubs with ASUs + | |
■ Business outline: | Kolkata and Kalyani) |
Gas lorry/cylinder supply business in eastern and | |
southeastern India |
Expansion of a "downstream business" through lorry and
cylinder supply
(Air separation gas production capability)
New Delhi
Asansol filling station
Kalyani filling station
Jamshedpur ASUParbangla filling station
Ulveria ASU Kolkata filling station
Hyderabad ASU | |
Hyderabad filling station | Vizag ASU |
Ballary ASU
Chennai filling station
● Prax India
● Linde India
● Ellenbarrie
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Business strategy 1: Industrial gas business in India
Growth strategy in India's industrial gas market where high economic growth continues
Response to growing industrial gas demand associated
1 with expanded steel production
- Take advantage of AWI's extensive operation know-how for steel plants accumulated in Japan
Promote maximized efficiency to reduce production energy consumption rate
-
Build a trust relationship with customers who are leading blast furnace manufacturers
Capture further business opportunities such as construction of additional and new plants
Acquisition of new projects for on-site supply service
2 from small- and medium-sized plants
- Allows AWI to implement the business through the acquisition of back-up and maintenance functions
- The above-mentioned growth strategies 1 and 2 will be implemented based on the plant engineering technology (large- to small-sized cryogenic air separation plants) which was acquired after AWI made SAC (Shinko Air Water Cryoplant, Ltd.) into a wholly-owned subsidiary.
Expansion of the lorry and cylinder supply business through
3 synergies created with Ellenbarrie Industrial Gases Ltd.
- Expansion of business in eastern India (where steel industries are concentrated)
- Advances to southern India (where auto and electronics industries are concentrated)
- Acquisition of the argon supplier allows AWI to implement sales expansion
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Business strategy 2: Overseas engineering (North America)
[Structure of overseas engineering business]
Air Water Inc.
Ryosuke Matsubayashi
Corporate Director
Overseas engineering
department
Industrial gas-related engineering and equipment business
(Sales for fiscal year 2019: approx. 11 billion yen)
High-power UPS Engineering and equipment business
(Sales for fiscal 2019: approx. 20 billion yen)
January 2018 | |
Air Water America | |
Location: | New Jersey, the U.S. |
Business outline: Planning and promotion of business strategies Business management of subsidiaries under control
April 2019
Air Water Asia
Location: Singapore
Business outline: Provision of industrial gas engineering to Southeast Asia group bases
Engineering and gas businesses | Cryogenic equipment business | ||||
Ishmael Chalabi | Eric Rottier | ||||
Steven Wong | Garrett Forde | |
Pee Chee Kiang | ||
May 2018
Air Water-AMCS
Investment ratio: 51%
Location: Bedminster,
New Jersey, the U.S.
Business outline: Industrial gas plant EPC and on-site supply, production and sale of industrial gas
November 2018
TW America
Investment ratio: 100%
Location: Houston, Texas, the U.S.
Business outline: Manufacturing and sale of cryogenic transport equipment
February 2016
February 2018
TOMCO2
Investment ratio: 100%
Location: Atlanta, Georgia, the U.S.
Business outline: Manufacturing and sale of cryogenic equipment for beverage and food
June 2019
August 2018 | July 2019 | |||
Power Partners | Hitec Holding BV | |||
Investment ratio: 60% | Investment ratio: 100% | |||
Location: | Singapore | Location: | Almelo, | |
Business outline: Engineering | the Netherlands. | |||
maintenance, and | Business outline: Development, design, | |||
after-the-sale service | assembly, installation, | |||
related to high- | maintenance and | |||
power UPS | overhaul of DRUPS | |||
TW Malaysia | Dohmeyer | |||
Investment ratio: 100% | Investment ratio: 49% | |||
Location: | Kuala Lumpur, Malaysia | Location: | Gent, Belgium | |
Business outline: Manufacturing and sale | Business outline: Manufacturing | |||
of stationary cryogenic | and sale of liquid | |||
nitrogen freezers | ||||
containers | ||||
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Business strategy 2: Overseas engineering (North America)
Establish an industrial gas-related engineering and equipment business base, with
an eye toward deploying industrial gas supply business in North America
Industrial gas market in the U.S.
- Market size: Approx. 2.3 trillion yen
- Demand is also buoyant in sectors of food including beverages and bio-science
- About 85% of the US industrial gas market is monopolized by major companies
- About 750 dealers exist in the region
Increase the recognition of Air Water Group Establish a partnership with dealers
Engineering and cryogenic equipment areas
Engineering and gas businesses | Cryogenic equipment business | ||
■ Air Water-AMCS | ■ TW America | ■ TOMCO2 |
Cryogenic transport container | Carbonic acid trailer | |
■ TW Malaysia | ■ Dohmeyer |
Cryogenic air separator
Stationary cryogenic containers | Liquid nitrogen freezer |
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Business strategy 3: High-power UPS (Uninterruptible power supply) business
Entry into the high-power UPS system business
To promote the commercialization of "utility solutions" that are crucial to customers' BCPs (business continuity plans) and aim to become the world's top in the field of high-power UPS systems and peripherals.
What are dynamic rotary uninterruptible power supply systems? (DRUPS) ※ ※Dynamic Rotary Uninterruptible Power Supply
- An uninterruptible power supply (UPS) suitable for high-power band over an output of 1,500 kVA.
- Introduced at data centers, large semiconductor and pharmaceutical factories and critical infrastructure such as airports.
- An important device to prevent facilities and products from damage caused by voltage drop and blackout and maintain stable operations.
Hitec Holding B.V. (Hitec)
- Date of stock acquisition: July 2019 (to be included in the scope of consolidation
■ Sales: | from 3Q FY2019) |
12.6 billion yen (in the year ended December 31, 2018) | |
■ Head office: | The Netherlands |
Overhaul service hubs: | The Netherlands, the U.S., Taiwan |
Business bases: | 9 locations worldwide |
Sales regions: | 40% in EMEA, 6% in North America, 17% in China and |
Taiwan, 37% in APAC |
EMEA: Europe, Middle East and Africa
APAC: Asia Pacific
Power Partners Private Limited (Power Partners)
- Date of stock acquisition: August 2018 (included in the scope of consolidation from April 2018)
■ Sales: | 3.9 billion yen (in the year ended December 31, 2018) |
■ Head office: | Singapore |
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Business strategy 3: High-power UPS (Uninterruptible power supply) business
Hitec Head Office
The Netherlands
PP Ltd.
- Overhaul service facilities
- Hitec business bases
- Countries having partner hubs
- PP Ltd. hubs
[Growth strategies ]
1 Global market for high-power UPS is about 160 billion yen, and is expected to continue to grow over 6%.
- To aim for the global No. 1 by effectively utilizing the worldwide network of our business partner hubs
- To accelerate global expansion of the business by reducing equipment procurement costs, etc. through integrated operation of Hitec and PP.
To create group synergies between industrial gas business for electronics applications and Air Water Safety
- Service, Inc.
- To target semiconductor manufacturers which are customers of our industrial gas business.
- To create synergies between businesses by combining the business of Air Water Safety Service Inc. which has a high domestic share in nitrogen extinguishers for data centers.
- To cultivate the Japanese market by utilizing the group's hubs
- To increase the market share of DRUPS through a maintenance system that utilizes our group's engineering hubs.
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The forecasts, future prospects, business plans, etc. presented in this document were prepared based on the judgement of our company from information currently available and involve various uncertainties. Therefore, the reader should note that actual business performance may differ from the projections made herein due to changes in various factors, such as economic conditions.
Copyright © AIR WATER INC all rights reserved.
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AIR WATER Inc. published this content on 20 November 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 November 2019 09:44:00 UTC