Signing of a shareholders’ agreement regarding “Mizumirai Hiroshima Corporation”

On August 28, 2012, Swing Corporation and the Hiroshima Prefectural Government reached a “shareholders’ agreement for the establishment and management of Mizumirai Hiroshima Corporation”, a joint venture that will play a role in the renewed operation of prefectural water supply services.

Background of the establishment of Mizumirai Hiroshima Corporation

The Hiroshima Prefectural Government is facing difficulties arising from a decreased water demand due to industrial structural changes and declining population, increasing demand for renewal of aging facilities, and potential decrease in engineering expertise resulting from the mass retirement of skilled engineers. In order to address these imminent issues and maintain a stable supply of reliable, safe, and high-quality water in the future, the Hiroshima Prefectural Government has decided to establish a public-private joint venture (stock company) to apply a private sector business approach to the management of water supply services.

Outline of the joint venture

(1) Company name ： Mizumirai Hiroshima Corporation

(2) Purpose of establishment
　By combining the advantages of the public and private sectors to provide a stable supply of reliable, safe, and high-quality water, Mizumirai Hiroshima Corporation aims to reinforce the foundations for the operation of prefectural water supply services and to centralize the management of municipal water supply services. It will contribute to providing sustainable water supply services trusted by residents and businesses in Hiroshima Prefecture. The company will play a broad role in the operation of water supply services and provide new revenue sources for the development and success of the regional economy.

(3) Main fields of business
　- Operation, management, and maintenance of water supply facilities
　- Consulting, human resource development, and training services for water business

(4) Capital
　JPY 60 million (Hiroshima Prefectural Government: 35%, Swing Corporation: 65%)

(5) Location
　SK Hiroshima Building, 2F, 7-1 Mikawa-cho, Naka-ku, Hiroshima-shi, Hiroshima, Japan

(6) Candidate executives
　- President: Takatoshi Manabe (Project Division Director, Swing Corporation)
　- Outside Director of the Board: Kiyoharu Okita (Public Enterprise Manager, Hiroshima Prefectural Government)
　- Outside Director of the Board: Makoto Kobayashi (Senior Managing Executive Officer, Swing Corporation)
　- Outside Corporate Auditor: Hiroshi Mitsuki (Managing Executive Officer, Swing Corporation)
　- Outside Corporate Auditor: Kazumasa Kagami (Former Chief Auditing Commissioner, Hiroshima Prefectural Government)

(7) Future schedule
　- The company will be established in late September.
　- Its office will open on October 1 (two staff members from the Hiroshima Prefectural Government and two from Swing Corporation will be assigned).