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									Management Driven by Ambition
            and
      A Global Strategy
    Expressing our gratitude, contributing to society
   Preserving the Earth’s beauty for future generations
      Aiming to become a world leader in our field

                          Masaaki Hara, President



               HARAKOSAN CO., LTD.
FY2/07 (Fiscal Year ended February 28, 2007) Highlights

• Increased year-end dividend by ¥500 to ¥1,500 per share
      With ¥1,000 interim dividend, FY2/07 annual dividend is ¥2,500 per share


• Signed wind-power technology transfer agreement with Jyoti Ltd. in India
  and made equity investment
      Established presence in India’s rapidly growing wind-power market, one step
      toward the rapid execution of a global strategy

• Announced medium-term management plan and conducted a reorganization
      Adopted a new organization with a focus on growing markets, better positioning
      the company for more growth


• Issued yen-denominated convertible bonds with 2012 maturity
      Plan to use all proceeds for the overseas wind-power business, mainly in China;
      goal is building a base to further strengthen this business and support future
      growth in sales and earnings



                                                                                        2
Financial Summary
Consolidated                                                                  (Figures are rounded down to the nearest million yen, %)

                           FY2/06                                             FY2/07

                           Full-year   Three-month   Six-month   Nine-month      Full-year                    Full-year
                            results       results      results     results        results     Growth rate   revised plan   Growth rate

 Revenue from operations    25,911         3,283      12,683       18,605         52,841          103.9        49,000           89.1

 Gross profit                 3,838          600        2,075        2,744          7,165           86.7         6,500          69.4

 Operating income             1,877          -81          641          583          3,433           82.3         3,700          67.1

 Ordinary income              1,903         -133          506          351          3,065           61.1         3,300          73.4
 Net income                   1,014         -132          257          204          1,959           93.2         1,650          62.7


Non-consolidated
                           FY2/06                                             FY2/07

                           Full-year   Three-month   Six-month   Nine-month      Full-year                  Full-year
                            results       results      results     results        results     Growth rate revised plan Growth rate

 Revenue from operations     24,414        2,697       10,673      16,024         48,694            99.5       45,000           84.3

 Gross profit                 3,348          419        1,555        2,077          5,847           74.6         5,300          58.3

 Operating income             2,043            22          660         788          3,561           74.3         3,500          71.3
 Ordinary income              2,010           -38          516         557          3,223           60.3         3,000          49.3
 Net income                   1,183           -38          314         369          1,948           64.7         1,600          35.2



                                                                                                                                         3
Financial Summary by Segment
Consolidated                                                                              (Figures are rounded down to the nearest million yen, %)

                                       FY2/06                                             FY2/07

                                       Full-year   Three-month   Six-month   Nine-month    Full-year                    Full-year
                                        results       results      results     results      results       Growth rate revised plan Growth rate

   Revenue from operations             25,911         3,283       12,683      18,605          52,841          103.9       49,000            89.1

     Sales of housing and apartments   24,066         2,392       10,681      15,758          47,725            98.3      42,200            75.4

   Leasing and property management       1,125           489          923       1,342           2,008           19.3        1,800           60.0
             Environmental business         718          401       1,079        1,505           3,107         109.6         5,000          596.4




Non-consolidated

                                       FY2/06                                             FY2/07

                                       Full-year   Three-month   Six-month   Nine-month     Full-year                     Full-year
                                        results       results      results     results       results                    revised plan
                                                                                                          Growth rate                  Growth rate

   Revenue from operations             24,414          2,697      10,673       16,024         48,694            99.5      45,000            84.3

     Sales of housing and apartments   22,927          2,226       9,476       14,298         45,211            97.2      39,900            74.0

   Leasing and property management          902          280          519         798          1,092            21.1       1,100            22.0

             Environmental business         584          190          677         928          2,390          309.2        4,000           584.9



                                                                                                                                                     4
Financial Summary by Subsidiary
                                                                                                                    (Figures are rounded down to the nearest million yen)

                                                Revenue from operations                                                        Ordinary income
                          FY2/06     FY2/07      FY2/07     FY2/07         FY2/07       FY2/07        FY2/06     FY2/07      FY2/07      FY2/07       FY2/07       FY2/07
                         Full-year   3-month     6-month    9-month       Full-year    Full-year     Full-year   3-month     6-month     9-month     Full-year    Full-year
                          results     results     results    results       results    revised plan    results     results     results     results     results    revised plan

S Trust                   1,137           89     1,014       1,042          2,002        2,100            45           -5         18         -38           47              57
Harakosan Europe
B.V.
                            318         217         349         589         1,265           800        -165          -60            3        -33             2         -55

Sumiyoshi Heavy
Industries Co., Ltd.
                            133         210         401         577           833           850           94           -7           1        -65        -106               44

Harakosan Life
Service Co., Ltd.
                                -          0           0           0            17            40            0          -1        -12         -23          -58               0

Betsudai Co., Ltd.              -       124         626         996           839        1,000               -       -27          82          88           68              76
Harakosan PFI
Investment Co.,                 -          0           0           8              7           10             -          0          -4            1          -8              0
Ltd.

Lerbec Co., Ltd.                -           -           -          -            99              -            -          -           -            -          -2              -
INOUE
Investment, Inc.
                                -           -           -          0              0            0             -          -           -        -10         431               -3

          * Figure for Harakosan Life Service Co., Ltd. in FY2/06 is not presented since the amount was less than ¥1 million. Figure for Betsudai Co., Ltd. in FY2/06 is
            not presented because it was not included in the consolidated financial statement in that period.
          * Sumiyoshi Heavy Industries Co., Ltd. is included in the consolidation, assuming June 30, 2005 as the date of acquisition. The consolidated financial
            statements include the accounts of Sumiyoshi Heavy Industries Co., Ltd. for the period from July 1, 2005 to December 31, 2005. Betsudai Community Co.,
            Ltd. is included in the consolidation, assuming September 30, 2005 as the date of acquisition. The consolidated financial statements include the accounts of
            Betsudai Community Co., Ltd. for the period from October 1, 2005 to February 28, 2006.

          * Betsudai Co., Ltd. absorbed Betsudai Community Co., Ltd. and Betsudai Real Estate Sale Co., Ltd. on August 1, 2006.

          * The consolidated financial statements include only the balance sheets of Lerbec Co., Ltd. The income statements of the company is not included due to the
            difference of accounting period.

                                                                                                                                                                                5
Financial Summary
  –Sales of Housing and Apartments (Non-consolidated)
                                                                                                                        (Millions of yen)
                                FY2/06                                                FY2/07

                                Full-year   Three-month   Six-month     Nine-month       Full-year                 Full-year
                                 results       results      results       results         results    Growth rate revised plan     Growth rate

  Segment revenue                22,927        2,226          9,476        14,298        45,211           91.2       39,900            74.0
             Condominiums        10,998        1,107          5,400         7,296        14,969           36.1       19,500            77.3
             Real estate sale    11,759        1,078          2,665         5,496        26,514          125.5       18,830            60.1
                       Other           83            7            38           55              22        -73.5             70         -15.7
                 Construction          85          34         1,371         1,451          3,706       4260.0          1,500         1664.7

  Gross profit                     3,013          312         1,155         1,583          5,019          66.6         4,570           51.7


  Major factors
                                                            Basic Concept for Condominiums
                                                            Basic Concept for Condominiums
• Execution of “Prime Location
  Strategy”
                                                           10% higher quality and 10% lower prices
• Large number of buyers attracted by
                                                          Design concept                                  Environmental concept
  the superior designs and amenities
  offered by condominiums using the                1. All apartments face south                        1. Solar energy systems
  ADVANCE21 brand                                  2. All apartments are corner units                     All-
                                                                                                       2. All-electric appliances
                                                   3. All-electric appliances
                                                      All-
                                                                                                 +     3. Garbage disposal
                                                   4. Floor area of at least 100 sq.m.                    systems
                                                   5. Parking is at least 150%

                                                                                     (Figures are rounded down to the nearest million yen)
                                                                                                                                                6
Financial Summary
  –Leasing and Property Management (Non-consolidated)
                                                                                                                     (Millions of yen)
                                  FY2/06                                             FY2/07

                                  Full-year   Three-month   Six-month   Nine-month     Full-year                  Full-year
                                   results       results      results     results       results     Growth rate revised plan Growth rate

 Segment revenue                       902          280          519         798          1,092         21.1         1,100              22.0
                  Rent income          434          111          227         387              535       23.3            470              8.3
        Management income              202           61          116         170              255       26.2            250             23.8
      Other leasing business           145           47            76          94             103       29.0            160             10.3
                Senior business        121           61            99        147              199       64.4            220             81.8
 Gross profit                          292           96          132         208              292            -          280             -4.1

                                                                                                                            (Housing units)
 Major factors                                                                 Housing units under Management


 1. Growth in revenue due to consistent                             5,000
                                                                                                                               4,469
    increase in number of units under                                                                              4,226
    management                                                                                          3,967
                                                                    4,000
 * 4,469 units under management at end of                                                      3,480
    February 2007                                                                    3,064
                                                                    3,000
 2. Steady growth in rentals of condominiums                                2,545
    for seniors and weekly rentals
                                                                    2,000
                                                                            FY2/02   FY2/03    FY2/04    FY2/05    FY2/06      FY2/07


                                                                                       (Figures are rounded down to the nearest million yen)
                                                                                                                                               7
Financial Summary
–Environmental Business (Non-consolidated)
                                                                                                               (Millions of yen)
                         FY2/06                                             FY2/07

                         Full-year   Three-month   Six-month   Nine-month   Full-year                      Full-year
                          results       results      results     results     results                     revised plan
                                                                                           Growth rate                  Growth rate

  Segment revenue             584         190           677         928       2,390           309.2          4,000         584.9

        Wind-power            539         190           672         923       2,384           342.3          3,700         586.5

                 Other          45           0             5           5             6        -86.6             300        566.7

  Gross profit                  42          17          267         286          536        1176.1              450        971.4


 Major factor
1. Delivered eight of 22 wind-power systems ordered by client in Taiwan during the previous term.
   Will complete delivery of remaining 14 systems during the current term.




                                                                                        (Figures are rounded down to the nearest million yen)
                                                                                                                                                8
Medium-term Business Plan

Consolidated                                                                    (Billions of yen)

                                           FY2/08             FY2/09             FY2/10

 Revenue from operations                          80.0             110.0                150.0
    Sales of housing and apartments                 56.0               65.5                 85.0
               Environmental business               20.0               40.0                 60.0
  Leasing and property management                    4.0                4.5                   5.0
 Operating income                                   5.0                7.0                  9.5
 Ordinary income                                    4.8                6.6                  9.0
 Net income                                       2.65               3.65                   5.0
 Estimated number of shares             128298.49 shares   150098.49 shares   150098.49 shares
 Estimated EPS                                 ¥20,654            ¥24,317             ¥33,311
 Estimated DPS                                  ¥5,000             ¥7,000               ¥8,000


                                                                                                    9
Medium-term Business Plan
                                                               (Millions of yen)
160,000
                                                                 150,000           20,000


                                                                                   18,000
140,000


                   Revenue from operations                                         16,000
120,000
                                                  110,000
                   Ordinary income                                                 14,000

100,000
                                                                                   12,000
                                     80,000
 80,000                                                                            10,000


                                                                                   8,000
 60,000                52,841                                          9,000
                                                                                   6,000
                                                       6,600
 40,000
          25,911                          4,800                                    4,000

 20,000
                            3,065                                                  2,000
               1,903
     0                                                                             0

           20th         21st         22nd Plan    23rd Plan       24th Plan
          FY2/06       FY2/07         FY2/08       FY2/09          FY2/10

                                                                                            10
   Medium-term Business Plan


6,000                                                                                                                              70,000


                                                                                                               5,000               60,000
                            Net income (Millions of yen)
                                                                                                                                   50,000
                            Net income per share (Yen)
4,000
                                                                                     3,650
                                                                                                                                   40,000

                                                          2,650
                                                                                                                                   30,000
                                    1,959                                                                            33,311
2,000
                                                                                                24,317                             20,000

           1,014                                                     20,654
                                              15,463
                                                                                                                                   10,000

                      8,411
   0                                                                                                                               0

            20th                   21st                22nd Plan                  23rd Plan                   24th Plan
           FY2/06                 FY2/07                FY2/08                     FY2/09                      FY2/10
        Number of shares        Number of shares    Estimated number of shares   Estimated number of shares    Estimated number of shares
        118,298.49 shares       128,298.49 shares   128,298.49 shares            150,098.49 shares             150,098.49 shares
                                                                                                                                       11
Reinforcing Management Systems to Support New Businesses

         To increase our focus on growing markets, the Wind Power Div.
                                                                                                                           Shareholders’ Meeting
         and Environmental Div. were moved from the Tokyo Headquarters
         to the Head Office. In addition, directors were appointed to oversee
         these operations in Japan, China and other countries. To start new                            Board of Auditors
         businesses, like an overseas condominium business, the Overseas
         Business Div. was established.                                                                                      Board of Directors

         A director with much experience in finance joined the company to
                                                                                                                                   President               Compliance Group
         help improve financial soundness and strengthen activities
         involving finance.                                                                          Tokyo HQ

                                                                                                    Newly-appointed           Vice President
Yuji Hamasaki                                                                                       General Manager
    Managing Director (tentative), General Manager of
                                                                                                           President, Hara                              Sales Management Div.
    Finance and Corporate Planning Div.
•   Graduated from Faculty of Law, Doshisha University                                                            Real Estate
•   Joined the Yamaguchi Bank, Ltd. in 1970                                                                     Development Div.                          Construction Div.
•   Appointed General Manager, Ube Branch in 2001
•   Leave the bank in 2005
•   Joined HARAKOSAN CO., LTD., as General                                                                      Real Estate Div.                       Rental Management Div.
    Manager of Finance and Corporate Planning Div. in
    2007                                                                                                                                                      Real Estate
                                                         Yokichi Shibamura                                                                                 Information Div.
                                                             Operating Officer, General Manager            Finance and
Takashi Okamoto                                                                                       Corporate Planning Div.                             Administration Div.
                                                             of Wind Power Div.
    Director,                                                                                        Newly-appointed Managing
    General Manager of Overseas Business Div.            •   Graduated from Faculty of
                                                             Engineering, the University of Tokyo    Director (tentative)
•   Graduated from Faculty of Science and Engineering,                                                                                                     Wind Power Div.
                                                         •   Joined NKK Corporation in 1972                  Yuji Hamasaki
    Chuo University
•   Joined Yamaha Motor Co., Ltd. in 1969                •   Leave JFE Engineering Corporation
                                                             (former NKK Corp.) in 2005                                                  Newly-appointed Operating Officer and
•   Leave the company in 1988 (General Manager of                                                      Overseas Business Div.            General Manager of Wind Power Div.
    Overseas Business Div.)                              •   Appointed Chairman of Japanese
                                                             Wind Power Association in 2004                                                                  Yokichi Shibamura
•   Appointed COO of Logo Pacific Inc. (Canada) in                                                  Newly-appointed Director and
    1989                                                 •   Leave the association in 2005          General Manager of Overseas
•   Appointed CEO of Harakosan Europe B.V. in 2006       •   Joined HARAKOSAN CO., LTD.             Business Div.                                         Environmental Div.
                                                             (General Manager of Wind Power
•   Appointed Director of HARAKOSAN CO., LTD. in                                                                  Takashi Okamoto
                                                             Div., Tokyo Headquarters) in 2005
    2006


                                                                                                                                                                                 12
Real Estate Business




                       13
Condominium sales plans in FY2/08 (22th fiscal year)
and following years
                       Increase condominium sales in the Kanto Area
   Yamaguchi
ADVANCE21
 Pensee Kotoshiba
ADVANCE21                                 Kumamoto
 Yamaguchi-honmachi
ADVANCE21
                                           Hakuzan,                   Kanto area
                                           Kumamoto City
 Yamaguchi-ekidori
                                                                   ADVANCE DC Machida
ADVANCE21 Moricho II
                                                                   ADVANCE DC Kanamachi
                                                                   Musashino City, Tokyo
     Nagasaki                                                      Kodaira City, Tokyo
ADVANCE21                                                          Adachi Ward, Tokyo
Izumimachi Colins                                                  Katsushika Ward, Tokyo
                                                                   Itabashi Ward, Tokyo
                                                                   Ota Ward, Tokyo
                                                                   Kodaira City, Tokyo
                                                                   Tokorozawa City, Saitama
                                                                   Ichikawa City, Chiba
                                             Oita                  Kawasaki City, Kanagawa
 Kagoshima                                                                              Others
Tenokuchi-cho,                             ADVANCE21 Nishikasuga
 Kagoshima City                            ADVANCE21 Iwata-koen

Kirishima-kokubu,
 Kagoshima City

                                                                                             14
 Move faster to start new businesses associated with
 sales of housing and apartments
                       Expand operations by using Harakosan’s unique strengths
Speed growth of business operations by starting businesses based on our declaration of environmental responsibility

                   Take on the challenge of starting
                                                                                          Target new business opportunities
                  environmentally friendly businesses

                 Rapidly extend real estate development                                            The wind-power business
                 operations to more areas of Japan

     Harakosan Strength 1: Innovative products and development skills          The growth of Harakosan s wind-power business
     Innovative thinking: We incorporate advanced technologies in our          • 2002:        Participated in wind-power business in Yamaguchi
     residences ahead of our competitors                                                      prefecture (Two Lagerwey 750kW turbines)
     Environmental responsibility: All of our condominium projects feature
     solar power systems, all-electric appliances and garbage disposal         • Jan. 2005:   2MW wind-power system engineers from Holland’s
     systems                                                                                  Zephyros assigned to work at Harakosan
     Outstanding quality: We build residences where people can live with       • June 2006:   Established Hunan Hara XEMC Windpower Co.,
     confidence and safety                                                                    Ltd., a jointly owned company in China to
                                                                                              manufacture wind-power systems and provided
     Harakosan Strength 2: Ability to extend operations to Japan’s regional                   technology to this company
     cities
                                                                               • Nov. 2006:   Started production of wind-power systems in the
     Plan to use accomplishments in cities in Yamaguchi prefecture and                        Netherlands
     Kyushu to establish a presence in the Tokyo area and all other areas of
     Japan                                                                     • Feb. 2007:   Equity investment in India’s Jyoti Ltd. and start of
     Building a network by using members of the All-Japan Apartment                           technology sharing
     Management Business Association, creating a low-risk, low-cost base for
     nationwide expansion

           Goals                                                                 Goals
            Goals                                                                 Goals
         Expand condominium development activities in the Kanto area                 Establish wind-power development and manufacturing
                                                                                  infrastructure with bases in Japan, Europe, China and India
               Start condominium development business in China
                                                                                   Capture 10% of the global market for wind-power systems
       Export expertise to start real estate development business in other
                                    countries

                                                                                                                                                     15
Condominium Project in Xiang Tan, Hunan Province, China

                                                                         Panoramic view of
                                                                       ADVANCE CITY GARDEN


   New factory of the
    joint company
                              Pre-construction
                                    site                        XEMC




             District court                      City Hall of
                                                 Xiang Tan




  Aerial photo image of the new city center of Xiang Tan

                                                                                             16
Condominium Project in Xiang Tan, Hunan Province, China



   Location:             Center of the City of Xiang Tan, Hunan Province, China
   Total project cost:   Approximately ¥7 billion
   Site:                 26,500 sq.m.
   Building space:       180,000 sq.m. (commercial facility: 40,000 sq.m.; residence area: 140,000 sq.m.)
   Property outline:     Eleven 28-story buildings
                         (1-3rd floors: commercial facilities; 4-28th floors: approx. 900 condominium units)




                                                                                                               17
Environmental Business




                         18
Wind-power Systems Business: Harakosan Technologies
Features of Harakosan Wind-power System (Zephyros)

                          Zephyros                   Other systems
              Direct, gearless mechanism           Direct with gears
Generator     Permanent magnet synchronous         Inductive
              generator                            generator

              About 10% more efficient per unit
Output        area of rotor (no gear power loss,        Standard
              minimal energy loss at generator)

Problems      Few                                       Frequent
                                                                       Share of cumulative orders for wind-power systems in Japan at end of 2005
              Simple and low cost due to absence                         No.          Distributor                    Maker                Share (%)
Maintenance                                            High cost
              of gear box
                                                                          1    Vestas Japan                 Vestas                           22.3%
Power grid    Direct link by matching voltage to
                                                        Standard
link          grid                                                        2    NEG Micon                    NEG-Micon                        18.7%
                                                                               Mitsubishi Heavy             Mitsubishi Heavy                 17.0%
Noise level   No annoying mechanical sounds                 -             3
                                                                               Industries                   Industries
Generator     * High (vacuum seal, permanent                                   Japan Wind                   GE                                 9.5%
                                                          High            4
insulation      magnet rotor)                                                  Development
            Maximum diameter of 4 meters
Dimensions,                                          Large diameter       5    TOMEN                        Sienens (Bonus)                    7.9%
weight      Maximum component weight of 50
                                                     Nacelle 70 tons
            tons                                                          6    JFE                          Lagerwey-JFE                       7.6%
              * High durability due to minimal                            7    IHI                          Nordex                             4.1%
Cover                                                       -
                use of FRP covers
                                                                          8    Meidensha                    REpower                            3.2%
                                                                         Lagerwey is the predecessor of Harakosan Europe B.V.
                            (* comparison based on Lagerwey systems)
                                                                         *Total output 1,186 thousand kW; based on Japan Wind Power Association materials

                                                                                                                                                            19
Wind-power Business:                                    Japan

             Shimane Prefecture                                               City of Muroran


City of Gotsu: Eleven 2,000kW systems (Z82)
                                                                    Harakosan’s first wind-power system in Japan,
City of Masuda: One 2,000kW system (Z82)
                                                                    a Z70 system at a development project at the
• Annual output: 45 million kW (supplies about 12,000 households)   port of Muroran in Hokkaido. A second system
• CO2 emission equivalent: About 18,500 tons annually               (Z82) is now under construction.
• Start of commercial operation: February 2008 (tentative)
• Cost: ¥5,025 million

          (computerized image of project after completion)




                                                                              Mie Prefecture



                                                                    • Location: Mie prefecture, 19 systems
                                                                    • Cost: Approx. ¥7 billion
                                                                    • Official order: Contract signing planned for
                                                                                      Oct. 2007
                                                                    • Completion: Feb. 2010 (Phase I)
                                                                                   and Feb. 2011 (Phase II)


                                                                                                                     20
Global Strategy for Wind-power Systems
                   Goal is a global market share of 10%
                       1. Improve performance and offer consistently high quality
                        1. Improve performance and offer consistently high quality
                       2. Use production facilities of alliance partners to eliminate need for large capital expenditures
                        2. Use production facilities of alliance partners to eliminate need for large capital expenditures
                       3. Spread out exposure to liability risk for manufacturing activities
                        3. Spread out exposure to liability risk for manufacturing activities


                05/2            06/2           07/2       08/2             09/2           10/2             11/2

                                   Phase I
                                                                   Phase II

                                                        Complete Asia
                       Phase I                          strategy and                               Phase II
                                                        expansion of
   1. Strengthen the European operating base            European                  1. Continue building a powerful base for the
       Improve development capabilities, increase       infrastructure                European strategy
       the workforce and make organizational            within two years              Transfer technology to alliance partners in
       reforms; set up an assembly plant                to prepare for                Spain and Portugal
                                                        Phase II                      Increase production capacity in Europe
    2. Strategy for bases in Asia
        Technical assistance agreements with                                      2. Americas strategy
        partners in China and India
                                                                                      Transfer technology to alliance partner in
        Establish a presence in Taiwan                                                Brazil
    3. Strengthen operating bases in Scandinavia
        and Eastern Europe                                                        3. Expand sales activities in South America
       Semi-offshore development in Finland                                          Establish a sales and service joint venture



                                                                                                                                    21
 Wind-power Business:                     China
                                          Inner Mongolia
                                                                                         Fujian, China
                                                                China
     Hogsara, Finland
                                          China                               • Location: Wind-power Plant in Liuao, Zhangpu,
                                                                                Fujian, China
• To be completed by May 2007                               Sample type for   • Cost: Approx. ¥3 billion
                                                            Datan Power       • Ordering from Datan Power
• Semi-offshore wind-power systems
                                                                              • Delivery date: The end of November 2007




                                                  South Korea
                                                                                             Taiwan




            Aim to reinforce production
            system as soon as possible

                                                                                                                            22
   Wind-power Business:                               China
Growth of the wind-power business in China
Established company with prominent Chinese partner (XEMC)
                                                                                                    • Wind-power projects in China open to bids
to capture orders as demand for wind-power systems in China
grows rapidly                                                                                           3,000MW to 4,000MW annually
Roles of new company
                                                                                                    (Equivalent to 1,500 to 2,000 2MW wind-power systems)
   • Lower manufacturing expenses                                                                   Market is growing much faster than the Chinese government’s
                                                                                                    target.
   • Develop and manufacture
     low-cost components                                                                            *Wind-power projects open to bids totaled 3,858.15MW in FY07
     (generators and blades)                                                                        (Equivalent to 1,929 2MW wind-power systems)
Goals
     Orders in FY2/07: 70 systems
     Following years: Hundreds of systems per year
                    Chinese Government Target for
                      New Wind-power Systems                  (MW)                            China’s Share of the Wind-power System Market
40,000
                                                     30,000                                China Comp any GW
30,000
                                                                                          Overseas Comp any G
                                                                                                                                                                         2005
20,000                                                                 Wind-p ower outp ut of domestic sy stems
                                                                                                                                                                         2004
                                       10,000                          Wind-p ower outp ut of imp orted sy stems                                                         2003
10,000                    5,000                                             Total volume of wind-p ower outp ut
            1,260
                                                                                                               0    100,000 200,000 300,000 400,000 500,000 600,000
    0
            2005           2010         2015          2020
                                                                                                                             (MW)

         Expect growth to more than 15,000
         2MW systems by 2020                                         Both Chinese and overseas manufacturers are posting rapid growth in China. Chinese company
                                                                     GW monopolizes the market for wind-power systems made in China
*Based on data of China Electric Power Generation Reform Committee     Presents opportunity to enter this market
                                                                                                                   * Based on data of China Electric Power Association
                                                                                                                                                                          23
Wind-power Business:                          China
Chinese joint venture:                                                     Advantages of making wind-power systems in China
                      Hunan Hara XEMC Windpower                            • Low taxes and labor expenses
                                                                           • No need for expensive, long-distance ocean transport
                                                                           • Quick support and maintenance services
   Assembly plant with goal of annual output of 300                        • Exclusive specifications based on European technology
   wind-power systems                                                      Government support for wind-power system production
   Blade factory able to produce 34m and 40m blades                          in China
Location:     High-tech industrial park in city of Xiang Tan, Hunan        • R&D subsidies for local wind-power system
              Province, China                                                manufacturers
Site:         165,000 sq.m. (49,912 tubo) Building area: 20,000 sq.m.      • Wind-power facilities require local content of at least
Investment:   About ¥1.4 billion                                             70%*
Completion:   Scheduled for August 2007                                    (*Notice No. 1204 of China National Development and Reform
                                                                             Committee 2005)


    Office building                                                       Assembly plant
 Site: 1,662.2 sq.m. Building area: 5,754.3 sq.m.                       Site: 17,811 sq.m. Building area: 18,534 sq.m.
 Offices on floors one to four and meeting rooms on fifth floor




                                                                                                                                        24
Wind-power Business:                            India



-Start of business in India is one step toward the rapid execution of a global strategy-
   Jyoti Ltd. (Mumbai Stock Exchange, Code 504076)
                                                                                    Objective
                                                                                     Objective
         Activities:  Manufacture and sale of electrical machinery                  Establish a position in India’s rapidly growing market
                                                                                  • • Establish a position in India’s rapidly growing market
                      and equipment and pumps                                       for wind-power systems. This alliance combines
                                                                                      for wind-power systems. This alliance combines
         Sales:       ¥3,200 million (FY12/06, yen equivalent)                      Harakosan’s technology and other expertise in wind-
                                                                                      Harakosan’s technology and other expertise in wind-
         Established: 1943                                                          power systems with Jyoti’s manufacturing capabilities
                                                                                      power systems with Jyoti’s manufacturing capabilities
                                                                                    and highly respected brand.
         Investment: ¥300 million (yen equivalent)                                    and highly respected brand.


   World’s Largest Producers                       Newly Installed
        of Wind Power                         Wind Power Systems in 2006                         The Wind-power Market in India
                       Capacity                              Capacity                   (1) For total installed wind-power capacity through 2006,
                                  Ratio                                  Ratio              India ranks fourth in the world (6,270MW, 8.4% share of
                        (MW)                                  (MW)
                                                                                            global output)
 Germany                 20,622    27.8%   USA                   2,454    16.1%
                                                                                        (2) For newly installed wind-power systems in 2006, India
 Spain                   11,615    15.6%   Germany               2,233    14.7%
                                                                                            ranks third in the world (1,840MW, 12.1%)
 USA                     11,603    15.6%   India                 1,840    12.1%
 India                    6,270     8.4%   Spain                 1,587    10.4%        Global overview of wind-power systems
 Denmark                  3,136     4.2%   China                 1,347     8.9%        • Total installed wind-turbine power capacity in the world has
                                                                                         increased by more than four times between 2000 and 2006.
 China                    2,604     3.5%   France                 810      5.3%
                                                                                       • At end of 2006, India ranked fourth in systems installed and
 Italy                    2,123     2.9%   Canada                 776      5.1%
                                                                                         China ranked sixth. All other top-10 countries except the U.S.
 UK                       1,963     2.6%   Portugal               694      4.6%          are in Europe. Japan ranks 13th.
 Portugal                 1,716     2.3%   UK                     634      4.2%        • India ranks third and China fifth in newly installed wind-
                                                                                         power systems in 2006. All other top-10 countries except the
 France                   1,567     2.1%   Italy                  417      2.7%
                                                                                         U.S. and Canada are in Europe. Japan again is not in the top
 Other countries         11,004    14.8%   Other countries       2,405    15.8%          10.
 Global total            74,223   100.0%   Global total         15,197   100.0%
                                                                                           Source: Global Wind Energy Council, February 2, 2007 materials
                                                                                                                                                            25
Harakosan Group Wind-power System Orders and Deliveries

                                                                          (*indicates full turnkey order received directly by Harakosan)

                                        Project             Type   No. of systems
 Harakosan Europe B.V.   Holland Eneco                      Z72                   1     Prototype
                         Taiwan LUXE                        Z72                  22     Installation completed

                         Finland HISP                       Z72                   3     Manufacturing under way

                         Chinese JV-Datan Power (sample     Z72                   2     Manufacturing under way
                         type)

                         South Korea                        Z72                  30     Unofficial order received


 Chinese JV              Datan Power, Fujian                Z72                  13     Order received
                         Datan International Power, Inner   Z72                  22     Order received
                         Mongolia
                         Datan International Power          Z72                  24     Unofficial order received
 Harakosan-JSW           In-house (JSW), Muroran            Z72                   1     Installation completed Aug. ’06
                         Same as above                      Z82                   1     Installation will complete May 07
                         *Masuda WP, Shimane                Z82                   1     Installation will complete Aug. 07
                         *Gotsu WP, Shimane                 Z82                  11     Installation will complete Sep. 08
                         *Certain company, Mie              Z82                  19     Unofficial order received
                         Total                                                 150      300,000 kW




                                                                                                                                       26
Environmental Business: Bio-diesel Fuel
Advantages of bio-diesel fuel
                                                              The bio-diesel fuel business at Harakosan
 • Much lower emissions of sulfurous oxides (SOx)
   and particulate matter than with fuel made from
                                                           2006: Completed installation of production equipment
   petroleum
                                                           Apr. 2006: Started trial operations (still ongoing)
 • Bio-diesel fuel has the same properties as
                                                              Biomass, etc. unused energy demonstration business of NEDO (New Energy and Industrial
   conventional diesel fuel
                                                              Technology Development Organization, a company backed by the Japanese government)
 • Cuts CO2 emissions because it is a recycled fuel
                                                              Joint research theme
 • Diesel engines require no modifications to use bio-            Trial production of bio-fuels using the STING (simultaneous reaction of transesterification and
   diesel fuel
                                                                  cracking) process
 • Significantly fuel costs because pure bio-diesel fuel          Bio-diesel fuel is produced to fuel generators and diesel vehicles. Data are gathered
   is tax free
                                                                  concerning the effect on fuel consumption and vehicles, enabling the evaluation of bio-diesel
Features of Harakosan bio-diesel fuel                             fuel production equipment and the quality of the fuel.
                                                           End of 2006: Fuel performance standard for B5 (diesel fuel with 5% bio content) was added to
  Able to make fuel from animal fats that other
                                                                        diesel fuel standards (see note); now continuing tests to conform with this standard.
  companies cannot use                                                                                            (Note: Law Concerning Quality of Volatile Oils, Etc.)
  Almost no by-products
                                                                                                   The experimental bio-diesel fuel plant
  The Market

 Ministry of the Environment, Eco-Fuel Promotion Council
    Bio-diesel fuel utilization targets
    16,000 kl (2010), 1 million kl (2020), 2 million kl (2030)
    Market (Plants, about ¥5 billion/year; Products, about
    ¥1.5 billion/year)
    Bio-ethanol utilization targets
    800,000 kl (2010), 1.9 million kl (2020), 3.8 million kl (2030)



                                                                                                                                                                          27
Senior Housing Business




                          28
    Nationwide Development of Senior Housing Business
        Opening more for-profit nursing care facilities
        in the Tokyo area


Two types
              Welfare Stay -Low price
to target a   Initial deposit of ¥4 million to ¥7 million
broad         One nursing care professional for every three residents
range of      Lerbec -High-end residence
needs         Initial deposit of ¥12 million to ¥20 million
              One nursing care professional for every 2.5 residents
                                                                                 Welfare Stay Nishioku
  Lerbec Rokakoen (for-profit nursing home)
                  (for-                                                          Capacity: 118 residents: 20 for short stays;
                                                                                           18-resident group home; 80-resident nursing home
  September 1, 2006 Lerbec Co., Ltd. became a subsidiary                                   A facility that uses exercise to prevent diseases
                                                                                       * Exercise programs are prepared under the supervision
                                               Location:                                 of physicians to ensure that exercise regimen is both
                                                 Setagaya-ku, Tokyo                      safe and effective.
                                               Structure:
                                                 3 floors, reinforced concrete             Combines a clinic, short-stay facility and group home
                                               Capacity:
                                                 60 residents, 56 rooms          Welfare Stay Tanashi (tentative)
                                                                                 Location: Nishi-Tokyo City, Tokyo
                                                                                 Opening planned for April 2008
                                                                                 Capacity: 123 residents: 12 for short stays;
     Lerbec Ogikubo (tentative)                                                            18-resident group home; 93-resident nursing home
     Location: Suginami-ku, Tokyo (opening planned for June 2007)                          Combines a clinic, short-stay facility and group home
     Structure: 2 floors, reinforced concrete
     Capacity: 30 residents
     Floor area: 1,201.28 sq.m.

                                                                                                                                              29
                      HARAKOSAN CO., LTD.



      URL: http://www.harakosan.co.jp

The forward-looking statements in this presentation contains
risks and uncertainties resulting from the changes in the
operating environment and other factors.
Consequently, these forward-looking statements are not
guarantees concerning future performance.



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