Expanding sales of the “Naias” sprinkler fire extinguishing system

「In this segment, the manufacturing and sales business for our proprietary Nias sprinkler fire-extinguishing system has benefited from improving demand for facilities at hospitals and welfare facilities, while the manufacturing and sales business for sprinkler heads has steadily strengthened the earnings base. We therefore recognize that the segment's business scale has entered a new stage of growth.」

「In this business, sales of our core product, the Nias sprinkler fire-extinguishing system, are beginning to recover gradually, against a backdrop of renewed capital investment, mainly at medical and welfare facilities. In particular, as plans for new construction and renovations at hospitals and senior-care facilities resume, inquiries have increased as a result of strengthening our product proposals and technical support.」

「Our group intends to increase revenue by expanding its sales channels, including by increasing the number of sales staff and selling through distributors,」

「As hospital and welfare-facility operations and demand for fire-protection equipment gradually recovered following the reclassification of COVID-19 as a Class 5 disease, orders for the Nias sprinkler fire-extinguishing systems manufactured and sold by our group continued to trend upward. As a result, net sales for the current consolidated fiscal year were ¥445 million, up 11.0% year on year.」

「As hospital and welfare-facility operations and demand for fire-protection equipment gradually recovered following the reclassification of COVID-19 as a Class 5 disease, orders for the Nias sprinkler fire-extinguishing systems manufactured and sold by our group continued to trend upward. As a result, net sales for the nine months ended the third quarter of the current fiscal year were ¥334 million, up 14.8% year on year, and segment profit was ¥19 million, up 15.7%.」

「The impact of COVID-19 has gradually improved, and the installation of fire-protection equipment at hospitals and other facilities became somewhat more active, resulting in higher net sales. However, profit declined as related costs increased, including due to higher selling expenses such as the cost of outsourcing and implementing telemarketing for new customer development.」

「We progressively reflected in our results projects carried over from the previous fiscal year whose delivery dates had been postponed until after the third quarter. In the Kansai region, we also received and recorded several new orders for the installation of large Nias sprinkler fire-extinguishing systems at hospitals, resulting in an improving trend in operating performance in the third quarter.」

「In response to this market environment, our group is further intensifying efforts to expand sales of the fire-extinguishing systems for hydrogen stations that it has been promoting, while conducting sales promotion nationwide targeting architectural and engineering firms, using the cost advantage of not requiring a self-generation unit as a selling point.」

「In addition to sales efforts in the power and other energy-related fields, we have expanded the market potential of the Nias sprinkler fire-extinguishing system through our own efforts, including by capturing demand for the system as cooling equipment.」

「Meanwhile, in the Kanto and Kansai regions, continued sales efforts have resulted in an ongoing upward trend in both orders received for large-scale projects and inquiries.」

「In light of this demand environment, we have conducted thorough follow-up sales activities for Naias, our proprietary sprinkler fire-extinguishing system, among our traditional core customers in the nursing-care and hospital sectors, while also targeting energy-related manufacturers and proposing new applications beyond fire extinguishing.」

「In the Fire Protection and Safety Business, we have pursued expanded sales of the Naias sprinkler fire-extinguishing system developed by us and manufactured by our subsidiary 株式会社三和テスコ, with a policy of focusing particularly on sales to the nursing-care facility market. In that market, demand for newly built rental housing exclusively for older people has recently been increasing, and sales activities targeting these facilities could further expand the addressable market. We will also promote the system directly to hotels, condominiums and mass retailers, among others, and focus on acquiring new customers.」

「At the same time, we have used the adoption of the system by major companies as a sales reference and actively expanded sales activities to companies operating facilities with high fire risk, devoting substantial effort to developing new customers.」

「Based on the track record from these projects, we expect sales activities to be effective not only at conventional nursing-care and medical facilities but also across a wide range of sites requiring fire-prevention measures.」

「We have conducted sales activities proposing the installation of the “Naias” sprinkler fire-extinguishing system manufactured and sold by our group, focusing on facilities eligible for subsidies.」