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.

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, which was completed in 2018, is a facility where development engineers gather to exchange wisdom and greatly contribute to improving the ability to “nurture original technology.” In the future, we will intensify our efforts to increase its presence as a base for promoting collaboration and joint research with external institutions and corporations, aiming for sustainable growth and enhancement of corporate value.
We hope that our shareholders will continue to look forward to the growth of the Group in the long run.

The future business environment surrounding the Group is expected to remain unpredictable, as there are various factors such as rising prices of goods, the situation in the Middle East, and U.S. policy trends, while economic recovery is expected due to improvements in employment and income conditions. Under these circumstances, the Group will diligently strive to develop markets using its comprehensive responsive abilities based on its technological capabilities while further evolving our efforts.
For the fiscal year ending December 31, 2025, revenue and profit are expected to increase primarily due to the expansion of deliveries of the “KOACH” open clean system.

Regarding industrial masks, demand from the manufacturing industry and public-works projects are expected to remain stable. Since target substances will continue to be added in the autonomous management of chemical substances and efforts to establish developed laws are promoted by the administration, the market is expected to expand further in the future. We will further strengthen problem-solving proposal-based marketing and strive to expand sales of safer and higher quality products so that businesses engaged in autonomous management can select optimal masks.
We expect that net sales of anti-infection masks will remain at the same level in the current year, as orders from medical institutions have continued even after the special demand during the COVID-19 pandemic subsided and seasonal outbreaks of infectious diseases are forecasted.
Sales of protective masks are expected to continue to increase in the next year, supported by factors such as an increase in defense costs.
Therefore, net sales for the mask-related business segment are expected to be 9.9 billion yen (up 6.3% year on year).

Technological advancements in the current semiconductor market are remarkable, and miniaturization and the improvement of performance have been accelerating. Also, the importance of a clean environment has been growing. The “KOACH” open clean system is recognized as a system which can create an ISO Class 1 environment, the world’s highest level of air cleanliness, and the level of interest and inquiries from customers are expanding unprecedentedly. As of the end of the current fiscal year, the number of orders received of large-scale models exceeds three times that of the previous year.
Therefore, net sales for the environment-related business segment are expected to be 1.9 billion yen (up 78.6% year on year).

Net sales for the other business segment are expected to be 0.2 billion yen (down 47.9% year on year) due to a decrease in revenue of air-purifying equipment.
Regarding sales of the endoscope washer/disinfector “Kagami-Naishi II G,” the Group will continue sales activities to acquire new customers and enhance additional and replacement demand from existing customers.


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