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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, 2020

The economic environment in Japan and overseas is expected to remain increasingly uncertain for the current consolidated fiscal year ending December 31, 2020 against the background of the deteriorating geopolitical risks in the Middle-East as well as the expansion of the infectious disease caused by a new type of coronavirus.
Given such severe business environment, the Group will try to promote research and development and product development led by the Advanced Technology Center as a central core, and implement strategic marketing activities to develop new markets in each of the “cleanliness, health and safety” business domains.
In the mask-related business segment, by strengthening efforts to sell high-quality and high-value added product lines including “BL” series of Powered Air-Purifying Respirators (PAPR) and “Hi-Luck” series of disposable masks, the Group will try to generate new demand in the industrial mask market and increase market share in the mask market for healthcare settings and general consumers in a stable manner.
In the other business segment, working together with our distributors, we will focus on the promotion and expansion of sale of “KOACH” clean zone creator and “KAGAMINAISHI ⅡG,” the latest addition to our product line of automatic endoscope washer-disinfector.
Due to the rapid spread of the new coronavirus infection, the supply of surgical medical masks and anti-virus masks cannot keep up with the demand. Against this background, in order to supply disposable particulate respirators (NIOSH approved N95 and Japanese National Assay approved DS2) to healthcare institutions including hospitals admitting the new coronavirus patients, the Group is now continuing to maximize their production and shipment.

The earnings forecasts for the second quarter consolidated cumulative period under review and the fiscal year ending December 31, 2020 have been revised.

[Earnings forecasts for the second quarter consolidated cumulative period under review]
Both sales and profit for the second quarter consolidated cumulative period under review are expected to far exceed the initial projections as profit during the first quarter consolidated cumulative period under review already exceeded the previously announced figures for the second quarter consolidated cumulative period under review mainly due to a big surge in demand for anti-virus masks because of the spread of the new coronavirus infection.

[Earnings forecasts for the fiscal year ending December 31, 2020]
Because reasonable estimates of consolidated financial results are made difficult by many uncertainties about the business environment surrounding the Group that may vary greatly depending on the timing of the end of the new coronavirus infection and the degree of contraction of domestic and overseas economic activities, the full-year consolidated earnings forecasts that were announced are withdrawn and remain undecided at present. The full-year forecasts will be disclosed promptly when such disclosure becomes possible.

The followings are forecasts by business segment:

(Mask-related business segment)
In addition to the development of tight-fitting masks, the Group will be continuously engaged in an enlightenment activity to promote the importance of mask fit in each of the industrial, the healthcare and the general consumer fields.
In the industrial field, as the Ministry of Health, Labour and Welfare of Japan has been studying on measures for the prevention of health impairment for workers by chemical substances and chemical substance management in addition to the 9th Comprehensive Measures to Prevent Hazards Due to Dust, the Group is striving not only to develop new products which are compliant to the strengthening of regulations and management regarding the particulates and chemical substances but also to exploit a new demand for our products by providing our customers with the appropriate information on such regulations.
In the healthcare settings and the general consumer field, by emphasizing our “Hi-Luck” series of anti-virus mask’s superior capability to prevent infection, the Group will endeavor to further spread these disposable masks to public health centers, designated medical institutions for infectious diseases and regional core healthcare institutions across the country.

(Other businesses segments including environment-related businesses)
In March, 2019, the Japanese Industrial Standards (JIS) was revised to address the improvement in performance and stricter maintenance of cleanroom. This revision is expected to further increase the general awareness of the superior performance and functionality of the “KOACH,” an open clean zone creator that can materialize an “actual cleanliness” (meaning that cleanliness is maintained during actual operation) as well as provide “super-clean” air cleanliness, the world’s highest level of cleanliness.
In the food-related industry, as the “KOACH” was proved to be effective for reducing the risk of food contamination by microbes such as floating bacteria and fungi, there has been an increasing number of inquiries from people in the industry. Under the circumstances in which concrete countermeasures are sought after due to the rise in general awareness of environmental concerns including food loss, the “KOACH” is receiving attention as an ultimate device to solve such environmental problems fundamentally thanks to its unique functional features. Against this background, we are currently pursuing sales activities in cooperation with a firm which is engaged in food sanitation consulting and education.
The Group’s second generation endoscope washer-disinfector, KAGAMINAISHI ⅡG, is equipped with the industry’s only automatic brushing function. It is a new product that has never existed before and that can significantly reduce the burden of nurses performing endoscopy with its user-friendly functions and the industry’s shortest cleaning and disinfection time due to the use of electrolyzed water. Since its launch in the market, it has been receiving a high evaluation from the doctors who saw it for the first time and hospital staff performing endoscope washing and disinfection. By taking advantage of this high reputation, the Group is striving not only to capture the replacement demand of the existing customers but also to cultivate and expand new customer base.

(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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