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Investor Relations

Dear Shareholders and Investors

Dear Shareholders and Investors:

  • Greeting

I am Tsutomu Murakawa. I am honored and grateful to have the opportunity to serve as President for KOKEN LTD. Firstly,I would like to express my heartfelt gratitude for your continued support and patronage to the Company.
Since its foundation, KOKEN LTD. has grown in the safety business domain with a central focus on the development of respirators for industrial use. Having launched the cleanliness business domain with a central focus on the recently developed KOACH, an open clean zone creator, we are now ready to step up to a new growth stage.
Towards the new growth stage, we have set forth the management principles that are supposed to be contained in the Company’s DNA: “Nurture people,”“Nurture technology” and “Nurture new markets in cleanliness, health and safety business domains.”
For the next generation we would like to establish the health business domain as the third main pillar of operations. Then, by making each of three main pillars of business stand on its own two feet, everybody from the management down to each employee in the Company is now striving as one to achieve a stable and strongly growing company in the future.
We look forward to your continued understanding and support in the future.

  • Announcement of Our Management Stance-Our Goal: Long-Term Sustainable Growth

Based on our Management Principles: (1) Nurture people, (2) Nurture technology and (3) Nurture new markets in cleanliness, health and safety business domains, through which we will contribute to society, we, at the KOKEN Group, aim to achieve long-term sustainable growth.
The current business environment surrounding our Group remains uncertain at home and abroad due to its fast and drastic change.
In this circumstance, while maintaining the unchanging long-term goal to nurture new markets in cleanliness, health, and safety business domains based on our own original technological innovations, we consider that (1) establishing specific targets and an action plan to achieve them every year and implementing them steadily and (2) achieving each year’s targets by modifying the action plan quickly and flexibly to respond to ever-changing business environment are the best and surest ways to achieve long-term sustainable growth of our Group.
As mentioned above, to establish the “cleanliness” and the “health” business domains as the second and third pillars of operations, respectively, following the “safety” business, we are now striving to develop our own original products such as an open clean zone creator, an automatic endoscope washer/disinfector, an antivirus mask and a copper-based antimicrobial agent, which have never before existed, and cultivate and expand new markets for them.
With such management stance, rather than aiming for a rapid profit growth and capital efficiency, we will right now focus on nurturing new businesses in the domains of “cleanliness” and “health” businesses as a high priority, which may eventually result in an improved operating margin as well as increased net sales and operating income.
In September 2018, the Advanced Technology Center was completed with the main objectives of increasing management efficiency through integration of research and development divisions located separately in each business office, promoting of collaboration and joint research activities with external institutes and corporations, strengthening research and development, and promoting human resource development. I am sure that this new facility will help further increase the customer’s trust and expectation for our Group’s technologies and products and enable us as an R&D hub to further expand the number and scale of cooperation and joint research with various external organizations and corporations that we have been involved in.
The Advanced Technology Center is expected to serve as a source of our Group’s growth. We aim to achieve sustainable growth and enhance our corporate value by strengthening our capabilities to nurture technology while utilizing the Center as the research and development base.
We sincerely ask that our shareholders also look forward to our Group’s continued growth from a longer-term perspective.

  • Operating Forecasts for the Current FiscalYear Ending December 31, 2019

The outlook for the Japanese economy is expected to remain increasingly uncertain and unpredictable for the next fiscal year ending December 31, 2019 against the background of various concerns about changes in Japan and overseas.
Given such circumstances, while strengthening efforts to sell high-value-added product lines including Hi-Luck series disposable masks and BL series of Breath Response Powered Air-Purifying Respirators (PAPR), the Group will try to generate new demand in the industrial mask market and increase market shares in the mask market for healthcare settings and general consumers in a stable manner.
Supported by the previous installation results of more than 700 customers and 1,100 units on a cumulative basis and high customer reputation, new and repeated orders for KOACH clean zone creator are expected to increase in the current fiscal year, and we expect orders to increase further.
The followings are forecasts by business segment:

(Mask-related business segment)
In addition to the development of well-fitting masks, the Group will continue to enhance customer awareness by promoting the importance of mask fit in the industrial and healthcare fields in order to promote the market penetration of these masks.
In the industrial field, the Group will further strengthen sales efforts to sell BL series of PAPRs, for which demand is expected to increase based on the encouragement for wearing of such equipment by the Ministry of Health, Labour and Welfare in the 9th Comprehensive Measures to Prevent Hazards Due to Dust.
In the healthcare settings, by emphasizing our products’ superior capabilities to prevent infection, the Group will try to increase market shares of Hi-Luck series masks for infection control in public health centers and designated medical institutions across the country.
While, as the recent earthquakes and typhoons have shown, in a recovery and reconstruction work after natural disasters, the importance of well-fitting masks is increasingly recognized, the Group will continue to conduct activities to local governments and organizations across the country to recommend stockpiling of emergency goods and training to know how to wear masks correctly. In May 2018, we concluded an agreement with Fukushima Prefecture to supply particulate respirators and gas masks upon request in the event of a disaster. We will try to supply masks to local communities to ensure the residents’ security and peace of mind.

(Other businesses segments including environment-related businesses)
For the sale of KOACH, an open clean zone creator, the Group will continue to enhance customer awareness by emphasizing “Actual Cleanliness (meaning that air is kept clean during operation).” We are drawing attention to the cutting-edge innovation of our various new technologies applied to KOACH, for example, by conducting proposal-based sales, which are presented in a way to highlight the heavy facility maintenance burden of “strict clean management” that operators of conventional clean devices are required to implement and to show these operators how introducing KOACH will reduce their burden and therefore significantly benefit them. Through such activities, we are promoting its penetration and sales expansion.
For Kagami-Naishi, an automatic endoscope washer/disinfector that can wash and disinfect endoscopes securely with low running cost, the Group will undertake the development of next-generation product and conduct more aggressive marketing activities based on our excellent services that guarantee high levels of customer satisfaction.

(NOTE) Information on forecasts on business outcomes, business strategies, and other information relating to the future that is contained within the website reflects judgments by officers of the company that were made based on information currently available and assumptions that were judged reasonable. Therefore, please note that business outcomes and progress in business strategies could vary from forecasts if the business environment has changed. This website is not made for solicitation of investment. If you do plan to invest, please do not make an investment decision by solely relying on the information published in this website and use your own judgement before investing. Although KOKEN has implemented all possible means to ensure the accuracy of the content of this website, KOKEN is not liable or responsible in any way for any damages, losses, or costs that may be caused as a result of using this site, including but not limited to damages caused by the use of information or incorrect information posted in this website, and any problems resulting from the downloading of data, for whatever the reason.

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