Expansion of Overseas Sales Channels and Production Facilities, Centered on Indonesia

「Overseas, revenue at PT.SUPER WAHANA TEHNO, which operates a bottled-water business in Indonesia, grew substantially to ¥4,785 million, up 29.2% year on year, setting a record high for the fifth consecutive fiscal year. The business is growing steadily, supported by stronger TV commercials, social media advertising and other promotional initiatives aimed at expanding market share. Monthly revenue also reached a record high on 7 occasions.」

「Revenue at PT.SUPER WAHANA TEHNO, which operates a bottled-water business in Indonesia, was ¥2,100 million, up 37.2% from the same period of the previous year. The strengthening of TV commercials, social media advertising and promotional activities to expand market share proved effective, and monthly revenue reached a record high in May this year. The business continues to grow steadily. Discussions are also under way on constructing a new company-owned plant to meet increased sales volumes, with the aim of raising production capacity and improving operating efficiency.」

「Overseas, revenue at PT.SUPER WAHANA TEHNO, which operates a bottled-water business in Indonesia, grew substantially to ¥3,704 million, up 63.4% year on year, setting a record high for the third consecutive fiscal year. The company further strengthened its TV commercials to raise brand awareness of its Pristine products, for which commercials were launched in the previous fiscal year, and focused on marketing initiatives including social media advertising using influencers and large-scale events. These efforts proved effective.」

「Our policy is to first increase sales and raise our market share in Indonesia. Together with our local partner, Sinar Mas Group, we have set a fiscal 2034 sales target of IDR 1 trillion (¥9.6 billion, based on IDR 1 = ¥0.0096). In addition to our existing digital marketing through social media and other channels, we are again making upfront marketing investments, including launching nationwide television commercials in Indonesia from fiscal 2023 to broaden awareness among a wider audience. We are also discussing the construction of a new plant with Sinar Mas Group to strengthen and streamline production and ensure stable supply.」

「At PT.SUPER WAHANA TEHNO, which operates the bottled-water business in Indonesia, the effects of the major wholesale-route change implemented in January last year and the second television-commercial campaign of the fiscal year in July–August contributed to record-high monthly sales for both PET bottles and gallon bottles in the nine months ended 30 September 2023. Sales were ¥1,637 million, up 21.5% year on year. Operating loss was ¥26 million, compared with operating profit of ¥124 million in the same period a year earlier, as a result of actively making upfront investments in marketing, including television commercials, for subsequent periods. The effects of stronger marketing initiatives are clearly emerging, and we expect sales to grow further and the operating loss to be eliminated in the fourth quarter.」

「The slowdown in sales caused by the major change in wholesale routes implemented in January to acquire new PET-bottle retailers and improve profitability has fully subsided, and shipments are growing. The effects of our first television commercials in February–March also contributed, and both PET bottles and gallon bottles recorded record-high monthly sales, bringing sales to ¥963 million, up 15.1% year on year. Operating profit was ¥46 million in the second quarter (April–June).」

「At PT.SUPER WAHANA TEHNO, which operates the bottled-water business in Indonesia, gallon-bottle sales progressed steadily in the first quarter (January–March 2023), exceeding the previous year’s level in each month. For PET bottles, we significantly changed our wholesale routes from January this year to acquire new retailers and improve profitability, but sales temporarily slowed as the transition took time. As a result, sales were ¥398 million, down 3.5% year on year. Sales have since normalised and are performing well, including setting new monthly sales records. In terms of earnings, we actively made upfront investments in marketing for subsequent periods, including our first television commercials in February–March this year. As a result, operating loss was ¥100 million, compared with operating profit of ¥69 million in the same period a year earlier, and ordinary loss was ¥90 million, compared with ordinary profit of ¥77 million.」

「Together with our local partner, Sinar Mas Group, we have set a target of IDR 1 trillion in sales (¥9 billion, based on IDR 1 = ¥0.0090) for fiscal 2030. In addition to our existing digital marketing through social media and other channels, we are again making upfront marketing investments, including launching nationwide television commercials in Indonesia from fiscal 2023 to broaden awareness among a wider audience.」

「At PT.SUPER WAHANA TEHNO, which operates the bottled-water business in Indonesia, PET-bottle sales volumes recovered and gallon sales grew steadily, resulting in sales growth of 13.6% year on year on a local-currency basis. In fiscal 2023, we will focus on marketing as an upfront investment and work to strengthen production capacity with a view to achieving substantial growth.」

「At PT.SUPER WAHANA TEHNO, which operates the bottled-water business in Indonesia, PET-bottle sales volumes recovered and gallon sales to individual households grew steadily, resulting in sales growth of 10.9% year on year on a local-currency basis. We will continue to work closely with our partner, Sinar Mas Group, while strengthening our production capacity.」

「Overseas, sales of PT.SUPER WAHANA TEHNO’s bottled-water business in Indonesia grew steadily, up 38.7% year on year. As the movement of people recovered with the containment of the COVID-19 pandemic, PET-bottle sales volumes recovered. Gallon sales to individual households also continued to grow steadily. We will continue to expand the business through full cooperation with our local partner, Sinar Mas Group.」

「PT.SUPER WAHANA TEHNO, which operates the bottled-water business in Indonesia, recorded sales of ¥1,402 million, up 22.7% from the previous fiscal year, for January–December 2021, a record high.」

「Overseas, sales of PT.SUPER WAHANA TEHNO’s bottled-water business in Indonesia were ¥984 million, up 20.2% year on year, for January–September 2021.」

「In the overseas business, sales of Indonesia’s bottled-water business were ¥297 million, down 3.7% year on year, for January–March 2021. Although PET-bottle sales to retail distributors declined due to restrictions on movement, business performance has recovered since April 2021 as social activity gradually resumed under the “with COVID-19” environment.」

「During the fiscal year, we made capital investments to nearly double our previous production capacity and reduce costs by bringing some outsourced operations in-house.」

「As a result, consolidated sales for the nine months ended 31 December declined 11.2% year on year, but operating profit was ¥62 million, compared with an operating loss of ¥65 million in the same period a year earlier, due to improvements in manufacturing costs and controls on marketing expenses.」

「Overseas, sales of Indonesia’s bottled-water business rose 4.1% year on year on a local-currency basis for January–June 2020. Although sales volumes of delivered gallon bottles increased, the business was significantly affected by declining PET-bottle sales to nationwide chain stores supplied through wholesalers as COVID-19 infections continued to spread in Indonesia.」

「Overseas, sales of Indonesia’s bottled-water business increased 22.2% on a local-currency basis for January–March 2020. Although PET-bottle sales volumes have declined, mainly at nationwide chain stores supplied through wholesalers, as COVID-19 infections have spread in Indonesia, gallon sales delivered to individual households have grown. We will continue working with our local partner to expand sales.」

「Going forward, we aim to accelerate business growth in Indonesia by strengthening promotions to raise awareness of alkaline water and conducting drinking tests, among other initiatives, and target sales of IDR 1.6 trillion (¥10,720 million, based on the 31 March 2020 exchange rate of IDR 1 = ¥0.0067) in fiscal 2025.」

「Sales in Indonesia’s bottling business grew steadily, up 39.1% year on year on a local-currency basis. Meanwhile, we are making upfront promotional investments in cooperation with our local partner, Sinar Mas Group, to strengthen branding and the supply chain and achieve the target of approximately ¥13 billion in sales in fiscal 2025.」

「In Indonesia’s bottling business, our “Pristine®” brand has gained traction, particularly in the Jakarta metropolitan area. We are discussing a strategy with our local partner, Sinar Mas Group, to achieve sales of approximately ¥17 billion in fiscal 2025, and strongly anticipate substantial future growth.」

「Indonesia’s bottling business has grown 33.0% year on year in sales as described above. To accelerate further growth, we are focusing on marketing as an upfront investment. Meanwhile, production capacity is already tight, and we plan to double our current production capacity by year-end.」

「Overseas, production at Indonesia’s bottling business is operating at full capacity. We plan to make capital investments around this summer to expand production capacity while strengthening our quality-control system.」

「Overseas, sales of water ionizers in China rose 28.7% from the same period a year earlier, while sales in Indonesia’s bottling business increased 26.5%, both progressing steadily.」

「We are working to expand water-ionizer sales into new markets including India, Thailand, and Cambodia. Indonesia’s bottling business is progressing steadily as described above, and we are strengthening quality control and production capacity in preparation for substantial future expansion.」

「Overseas, sales grew steadily in China, up 198.2% from the previous fiscal year, as business with existing distributors performed well and a new distribution agreement was signed with a major company in Hangzhou. Further sales expansion is highly anticipated. Transactions with Vietnam, a new market, have also begun.」

「Overseas sales of water ionizers have now begun large-volume transactions with China and Vietnam. We will continue expanding overseas sales and developing new business partners, focusing on ASEAN.」

「Large-volume transactions with China and Vietnam have begun in earnest. We will continue expanding overseas sales and developing new business partners, focusing on ASEAN. In Indonesia’s bottled-water business, we are jointly developing a business strategy with our partner, the conglomerate Sinar Mas Group, to grow the business to a scale of ¥10 billion.」

「Overseas sales of water ionizers have entered a full-scale phase, with large-volume transactions with China and Vietnam beginning and exports increasing substantially. We will continue working to expand overseas sales and develop new business partners.」

「Indonesia’s bottled-water business is progressing steadily, with sales at approximately 160% of the previous fiscal year’s level. In cooperation with our partner, Sinar Mas Group, we are rolling out the products at 24,000 stores nationwide, including Alfamart, and will expand production facilities and strengthen PR and advertising to increase domestic market share. In South Korea, we are proceeding with medical-device approval procedures and other preparations for a full-scale business launch. Full-scale operations in Vietnam also began in April this year.」

「Indonesia’s bottled-water business is progressing steadily, with sales at approximately 160% of the previous year’s level. Since November last year, we have begun contract production in East Java Province, located in eastern Java, and increased production capacity twofold for PET bottles and fivefold for gallon bottles. In cooperation with our partner, Sinar Mas Group, we have begun rolling out the products at 24,000 stores nationwide, including Alfamart.」

「In Indonesia, beginning in November this year, with a view to strong future growth, we will begin contract production of PET-bottle products in East Java Province, located in the eastern part of Java, and double our current production capacity. The operation of this plant will expand our sales channels from the western part of Java, centered on Jakarta, to eastern areas including Surabaya and Bali. We will also actively pursue PR and advertising to achieve further growth in domestic market share.」

「In Indonesia, we have strengthened our collaboration with our local partner, Sinar Mas Group, since last year and sharply expanded our sales channels. As a result, sales have reached approximately twice the level of the previous year, and business performance has grown steadily. We are currently expanding production facilities and strengthening PR and advertising to achieve further growth in domestic market share.」

「In Indonesia, against a macroeconomic backdrop of population growth and expansion of the middle-income segment, we have strengthened our collaboration with our local partner, Sinar Mas Group, since last year and sharply expanded our sales channels. As a result, recent monthly sales have reached approximately twice the level of the same month a year earlier, and business performance is progressing steadily. Going forward, we will expand production facilities and strengthen PR and advertising to achieve further growth in domestic market share over the medium to long term. In China and Taiwan, we are also working to acquire new distributors through partnerships with local subsidiaries and other arrangements.」