February, 2016

Stability(supply of water continuously

in 24hours)

High Quality(supply of potable delicious water)

Preparation tovarious risks

(development of advancedrisk management system)

Dialogue with customers(exchange of communications

for obtaining of reality and reliability)

Contribution to society and region

(activities in due consideration ofenergy saving, environment protection

and other essentials)

Contribution to other water business entities in Japan and abroad(transmission and contribution of

technologies and know-how )

Human resources (recruitment and fostering/

development)

Management system(including group management)

Financial basis(well-planed and efficient

financial operation)

We will promote water resources measures and restructure facilities in order to secure a stable water supply into the future.

In order to reliably supply high quality water to customers, we will thoroughly manage comprehensive water quality from the water source through water taps, and promote shift to water service system without receiving tank.

In order to take all measures for risk management, we will develop facilities that are prepared for threats, such as various disasters that could happen in the future, and we will strengthen our response when disasters occur.

In order to earn greater trust from our customers, we actively communicate information that is easier to understand, gain a detailed understanding of diversifying needs, and reflect these on our initiatives.

In order to contribute to society and region and fulfill our social responsibilities as a company, we are promoting initiatives with consideration for energy and the environment.

In order to contribute to other water business entities in Japan and abroad, which have many different challenges to contend with, we will promote initiatives using our advanced technologies and know-how.

Tokyo Waterworks and Supervised Organizations will work together to hire and train human resources who have flexible ideas and expert knowledge backed by experience in the field, in order to establish a strong base of human resources.

We will enhance group management together with Supervised Organizations in order to both ensure fairness and demonstrate efficiency, while taking responsibility for the operation of our business.

We will conduct sustainable management by making ceaseless efforts in management and promoting financial operation from a medium to long term perspective.

Looking ahead to the 2018 IWA World Congress & Exhibition, the 2020 Tokyo Olympic & Paralympic Games, and the future beyond, we will collaborate with various organizations to further develop the Tokyo Waterworks system, one of the finest in the world, and communicate our achievements both in Japan and abroad.

Tokyo WaterworksManagement Plan

2016～Inheritance world leading water system

to the next generation～（2016～2020）

Management PolicyTokyo Waterworks continues to provide services to supply steadily potable delicious

water of high quality that is an essential lifeline to support citizen’s life and urban

activities of Capital Tokyo.

Tokyo Waterworks also takes all possible measures to ensure risk management, makes

efforts to establish a staunch management system as well as to conduct efficient and

sound business management and performs reliable business operations.

Furthermore, Tokyo Waterworks launches various initiatives of long-sighted approach,

further develop its world leading water system and extend the resulted information

internationally and domestically and passes them to the next generation.

Fiscal income and expenditure plan

Sound financial operations

Water Resources Measures -Securing water resources (Yanba Dam) -Proper management of water conservation forests

Contribution to other water business entities abroad -Promoting international development (Human resources development, project development, and information dissemination)

Establishing systems to support restructuring of the essential waterworks facilities -Securing necessary human resources

Improving risk management and practical skills -Enhancing hands on trainings in practical training fields -Mutual exchange with Supervised 0rganizations

Thorough compliance -Reforming awareness

Promoting transfer of duties to Supervised Organizations -Further streamlining through transfer of duties

Strengthening governance -Thoroughly implementing our management policies -Strengthening governance to important decision-making on management for Supervised 0rganizations

Ensuring objectivity and transparency -Reflecting external expert opinions, conducting external audits -Enhancing information disclosure together with Supervised Organizations

Ceaseless management efforts -Cost reduction and securing revenue of ¥15 billion in 5 years

Using reserve funds and allowances -Using reserve funds to maintain alternative purification facilities (¥50 billion in 10 years since FY 2007) -Using allowances for repairs to upgrade pipelines

Issuing Enterprise bonds appropriately -Appropriating enterprise bonds to renewal of purification plants (Fairness of intergenerational equity)

Restructuring waterworks essential facilities -Developing alternative facilities in preparation for water purification plants’ renewal (Sakai and Misato Purification Plants) -Duplexing of water conveyance facilities. Duplexing and networking of transmission pipes -Establishing and expanding of water supply stations

Restructuring Tama Area Waterworks -Restructuring facilities -Networking of transmission and distribution pipes

（

Suitable support for water quality -Water treatment according to raw water quality -Enhancing the Tokyo High Quality Management Program

Promoting shift to water service system without receiving tank -PR to promote water service system without receiving tank -Model project to introduce water service system without receiving tank in elementary and junior high schools -Initiatives to promote shift (estimation service, etc.)

Developing facilities against disasters -Reinforcing the body of reservoirs (Murayama kami Reservoir) -Covering purification facilities (Renewal Sakai Purification Plant, etc.) -Reinforcing earthquake-resistance of distribution reservoir -Replacing distribution pipes by earthquake-resistant-joint pipes -Replacing service pipes by earthquake-resistant-joints at evacuation centers, etc. -Developing service pipes under private roads -Installing and reinforcing non-utility power generation facility -Measures against floods

Contribution to other water business entities in Japan -Cooperation with other water business entities in Japan (Conducting trainings, lending practical training fields, fiduciary service)

Response in the event of disaster occurrences -Enhancing emergency measures (Emergency water supply stations) (Enhancing transmission of information)

Initiatives to realize and deepen understanding of waterworks -Tokyo Waterworks Water Safety Checkups (Visiting nearly all 7.5 million households by 2019) -Development of various local PRs (Enhancing the Waterworks Caravan, PRs at construction sites, etc.)

Conservation of the Tamagawa Josui Canal -Appropriate conservation management of the Tamagawa Josui Canal (Conservation of the aqueduct and slopes in the midstream sections, installation of information plaques, etc.)

Indicator Calculation Formula FY 2014 (Actual)

FY 2016 - FY 2020

Ratio of the amount of redemption money for principals and interests against the charge income (%)

(interest payment + principal redemption) ÷ charge income

12.4 level lower than FY2014

Ratio of the amount of corporate bonds outstanding against the charge income (%)

Closing balance of enterprise bonds ÷ charge Income

82.3 level lower than FY2014

Ordinary balance ratio (%) (operating revenue + non-operating revenue) ÷ (operating costs + non-operating cost)

114.2 100% or more

*1. In the calculation of ratio of redemption money for principal and interest, refinancing bonds are excluded. 2. Real value of FY2014 is calculated including taxes.

(Units: ¥1,000,000)

FY

Income Expenses Income and expenditure

over-and-under

absorbed overhead

Accumulated income and expenditure

over-and-under absorbed overhead

[Estimated as of the end of FY 2015 Plan241]

Charges Bonds Issues

National subsidies

Money transferred

from general account

Others Total Operating expenses

Interest Payment

Principal Redemp-

tion money

Construction and improvement

costs

Total

2016 318,985 14,260 1,162 4,891 45,858 385,156 251,366 6,097 20,325 106,699 (1,806) 384,487 669 910

2017 319,409 18,465 455 4,355 44,930 387,614 250,886 5,790 20,504 110,817 (△3,562) 387,997 △383 527

2018 319,826 25,613 455 4,569 45,420 395,883 249,555 5,696 17,445 123,407 (△4,514) 396,103 △220 307

2019 321,063 25,395 455 4,748 46,075 397,736 251,824 5,793 16,919 123,407 (△4,667) 397,943 △207 100

2020 320,772 26,504 72 4,571 46,863 398,782 252,716 5,928 17,899 122,339 (△5,976) 398,882 △100 0

Total 1,600,055 110,237 2,599 23,134 229,146 1,965,171 1,256,347 29,304 93,092 586,669 (△16,913) 1,965,412 △241

*1. Bond issues and principal redemption money do not include those refunded. 2. Construction & improvement costs include amounts in the accumulated fund for the renewal of large purification plants, but do not include amounts from reversals of that fund or reversals of the reserve fund for facilities improvement of Okutama waterworks operations. 3. Consumption tax, including local consumption tax, of 8% are included in figures of income and expenditure.

Goals Ceaseless management efforts Cost reduction, securing revenue of ¥15billion, and maintaining current charge levels (excluding tax) for 5 years between FY 2016 and FY 2020. (Units: ¥1,000,000)

Items FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 Total

Cost saving by means of efficiency drive of managerial activities

63

237

252

327

522

1,401

Reduction of the regular cost 1,569

1,850

2,201

2,328

2,379

10,327

Income-earning by means of effective use of assets, etc.

1,312

339

467

512

642

3,272

Total 2,944

2,426

2,920

3,167

3,543

15,000

Energy and Environment Measures -Energy efficiency (Introducing solar power generation (Approximately 40% of the facilities’ installation goal owned by the Tokyo Metropolitan Government)) (Introducing small hydraulic power generators) (Introducing co-generation systems (Approximately 10% of the facilities’ installation goal owned by the Tokyo Metropolitan Government))

TOKYO WATERWORKS INNOVATION PROJECT

Financial basis (well-planed and efficient financial operation)

Operation of the essential lifeline

Stability (supply of water continuously in 24hours)

High Quality (supply of potable delicious water)

Maintaining alternative purification facilities

Dialogue with customers (for realization and establishment of credibility)

Preparation for various threats (development of advanced risk management system)

Promoting earthquake-resistance pipelines

Restructuring Tama Area Waterworks

Establishing and expanding of water supply stations

Select 2 companies freely who offer estimate service*, and request estimation

Presenting and explaining estimation

Sending detailed technical manualexplaining the construction description in the estimation

Introducing financial institutions that handle financing for management associations (New support service)

Tokyo Waterworks provides necessary information such as water pressure to those stores.

Estimation Requester

Water meter

Sample water from the tap

Service Pipe

Customer Inspectors

▲CommunityWaterworks Caravan

▲School Waterworks Caravan

▲ Flying flags (training)

Simple water quality Inspections

▲Measure residual chlorine concentration

Questionnaire Survey

Simple water leakage detection

Visually check the water meter

To make customers realize about safe, delicious and high quality water, we gain an accurate understanding of customer needs.

<Construction period and renewal period of water purification facilities (conceptual diagram)>

～ ～ ～ ～ ～ ～ ～ ～ ～ ～ ～ ～ ～ ～ ～ ～ ～ ～ ～ ～ ～ ～ ～

（FY）

(10,000 m3/day)2 0 0

15 0

10 0

5 0

0

（1955） （1960） （1965） （1970） （1975） （1980） （1985） （1990） （1995） （2000） （2005） （2010） （2015） （2020） （2025） （2030） （2035） （2040） （2045） （2050） （2055） （2060） （2065） （2070）

～

Facility Capacity

Year water flow was started

Built intensively during the period of rapid economic growth

Building alternative water purification facilities

Restructure facilities to an appropriate scale considering waterworks demand and risk response, etc.

City B

C ity D

Promoting shift to water service system without receiving tank

Estimate Service

To find emergency water supply sties easier, we fly flags at water supply points and evacuation centers.

Posting information about suspension and water availability areas as visual geographic information on our website (Start operation service from FY 2020).

Misato WPP

Ozaku Intake Weir

Kanamachi WPP

Sakai WPP

Misono WPPHigashi-MurayamaWPP

❶①

④❹

③❸

❺⑤

Ara RiverEdo River

Tama River

⑨

⑧

⑩

、

Initiative Content

Replacing distribution pipes by earthquake-resistant-joint pipes

In order to reduce water service suspension damage effectively, prioritizing supplying routes to major facilities for shifting to earthquake-resistant-joint pipes

Replacing service pipes by earthquake-resistant-joints at evacuation centers, etc.

Replace service pipes at evacuation centers and major stations by earthquake-resistant-joints pipes and stainless steel pipes

Developing service pipes under private roads

Replace service pipes under private roads by distribution pipes and stainless steel pipes

Pipe Jointing by Earthquake-Resistant-Joints in Water Supply Pipes Connected to Major Facilities

配水池

Pipe with Earthquake- Resistant-JointsPipe with Non-Earthquake- Resistant JointsEarthquake-Resistant Service Pipes

Purification Plant

Water Supply Station

Water Supply Station (under construction)Conveyance Facility

Transmission Pipe

Conveyance Facility (under construction)Transmission Pipe (under construction)

Facility Name

Details of maintenance

Facility Capacity (10,000 m3/day)

Year of completion

Sakai Purification Plant

Restructuring as a substitute for renewal of the Higashi-Murayama Purification Plant

31.5 → 70 FY 2021

Misato Purification Plant

Reinforcing as a substitute for renewal of the Kanamachi Purification Plant

110+50 FY 2023

Facility Name Category Year of completion

6. Kohoku Water Supply Station New construction FY 2018

7. Oji Water Supply Station New construction FY 2023

8. Kamikitazawa Water Supply Station New construction FY 2019

9. Wadabori Water Supply Station Expansion FY 2021

10. Komazawa Water Supply Station Expansion FY 2024

Facility Name Year of completion

3. Second Asaka-Kamiigusa Line FY 2020

4. Tama South-North Line FY 2018

5. Ariake Water Supply Station Related Transmission Pipes FY 2019

Facility Name Category Year of completion

Chigase Second Purification Plant Upgrade FY 2018

Chigase First Purification Plant Upgrade FY 2021

Northern Tama Water Supply Station

Newly construction

FY 2020

Saiwaicho Purification Plant Expansion FY 2018

Shibasaki Purification Plant Expansion FY 2020

Jindaiji Purification Plant Expansion FY 2022

Purification Plants in Okutama-machi

Upgrade FY 2019

Initiative Target Venues Content

School Waterworks Caravan

Mainly 4th graders at elementary schools

Elementary schools and special needs schools

Performing skits, quizzes, water purification experiments, so children can enjoy learning about the mechanisms of waterworks

Community Waterworks Caravan

Guardians of infants Child welfare residential facilities

Introduce waterworks project initiatives and information about waterworks that is useful for everyday life through skits

General public (new) Venues organized by Tokyo Waterworks and municipal public lectures, etc.

Explaining waterworks initiatives in greater details and our disaster response clearly

Smartphones, tablets, etc.

Suspended

Partially Available

Available

Municipal waterworks

Click

Initiative Content

PR to promote water service system without receiving tank

Distributing pamphlets when conducting inspection surveys of water supply facilities with receiving tank

Model project to introduce

water service system

without

receiving tank in

elementary and junior high

schools

- Implementing model projects that offer technical support and bear some of the construction costs- Following up with prioritized municipalities that have a low implementation rate since FY 2017

Construction to increase service pipe diameter to shift to water service system without receiving tank

When converting to direct water service systems, if service pipes must be widened, the Tokyo Waterworks bears part of the costs for construction from under the road to the water meter

※Stores that offer estimation serviceThey are the registered operators of plumbing contractors designated for this service by the Tokyo Metropolitan Government.

Facility Name Year of completion

1. Second Asaka-Higashi-Murayama Line FY 2018

2. Second Asaka Water Take Tunnel FY 2022

Consultation Service

Other Initiatives

Current Status After Restructuring

Enhancing emergency measures

Emergency Water Supply StationsEnhancing transmission of information

Development of initiatives and sending the relevant information

Tokyo Waterworks Water Safety Checkups Results of Checkups andPR from the Tokyo Waterworks

Various community PR developments (Enhancing the Waterworks Caravan)

Water Supply Station

● Police & Fire Stations, etc.

● Hub of large-scale rescue activities (metropolitan parks,

waste disposal factories, etc.)

Evacuation CentersJunior High Schools, Elementary Schools ,Universities, ● Senior High Schools, Community Centers, etc.

● Venues of the Olympic & Paralympic Games Tokyo 2020

● Capital Central AgenciesEmergency Medical Institutions(National Diet, Central Government Agencies, etc.)

Major StationsDaily passengers(● Over 200,000Over 100,000, less than 200,000）

Town C

Municipal BordersCity A

Water Supply Stat ion

Town C

C ity D

C ity A C ity B

Municipal Borders

Hamura Intake Weir

Asaka WPP

Akigase Intake Weir

Duplexing of water conveyance facilities

Duplexing and networking of water transmission pipes④

③

⑦⑥

Renewal preparation

period

Renewal start

periodRenewal equalization period

Water Supply Stat ion

Water Supply Stat ion

Water Supply Stat ion

Water Supply Stat ion

Water Supply Stat ion

Water Supply Stat ion Water

Supply Stat ion

Capital Central Agencies(● Facilities) 100% in FY 2019

Supporting Bases

Human resources (recruitment and fostering/ development)

Management system (including group management)

(1) Securing human resources

(1) Division of roles in business operations

(2) Strengthening our unified business operations (promoting group management)

(2) Fostering human resources

-Establishing a risk management system that can respond accurately to various threats

-Establishing an operation system for steadily restructuring waterworks facilities→ Securing human resources to support these systems

-Being responsible for planning and management, Tokyo Waterworks promotes mutual exchange with Supervised Organizations, which are responsible for work on-site.

-Promoting human resources training together with Supervised Organizations

Thoroughness of compliance enforcement

Improving risk management skills

Fostering an international perspective

Improving practical skills on-site

Human Resources

Planning and management

On-site

OJT OJT

“Knowledge Bank”

Waterworks Technical Experts

Target Indicators for Facility Development

Main project plan for facilities improvement

TSS Tokyo Water Co., Ltd.

PUC Co., Ltd.

Tokyo Waterworks Group

Demonstrate synergy benefits

Opinions from

External ExpertsExternal Audits

Ensuring Objectivity

Improvem

ent of transparency

Management MeetingsImportant

decision-making in corporate management

Monitoring Monitoring

Tokyo WaterworksFormulating management policies

(Unit: %)

Indicators

Pastrecord

TargetDescription of indicators

After 10 years

FY 2025FY 2014 FY 2020

Water resource availability for steady water supply at drought expected to happen once in every 10 years

93 100Ratio of secured water volume against the targeted water volume

-

Rate of the water supply in an accident 78 83 Ratio of water distribution reservoir capacities in waterpurification plants/water supply stations having respective

water distributing areas against the volume of water distributionin 12 hours of planed daily maximum water distribution volume

89

Rate of direct water supply from distribution mains 70 73 Ratio of the numbers of direct water supply fromdistribution mains against the total number of water supply

75

Rate of earthquake-resistant distribution reservoirs 70 89 Ratio of the distribution reservoir volumes in anti-earthquake reinforced system against the total distribution reservoir volume

99

Capital’s central agencies and emergency medical institutions

77 100(FY 2019)

Ratio of the total length of earthquake-resistant-joint pipes against the total length of water supply pipes in the relevant supply areas

-

Bases of large-scale rescue and relief operations, etc.

43 100(FY 2019)

-

Junior High Schools 36 100(FY 2019)

-

Elementary Schools 38 78 100(FY 2022)

Universities/ high schools/community centers

36 36 100

Number of passengers a day (more than 200,000)

41 100(FY 2019)

-

Number of passengers a day(more than 100,000 and less than 200,000)

44 78 100(FY 2022)

Venues for Tokyo Olympic and Paralympic GamesTokyo 2020

60 100(FY 2019)

-

Rate of earthquake-resistant service pipes supplying evacuation centers and major stations

44 100(FY 2019)

Ratio of the total length of earthquake-resistant water distribution pipes against the total length of water distribution pipes to and in the relevant

facilities such as evacuation centers and major railway stations

-

Rate of earthquake-resistant service pipes installed in private roads

38 59 Ratio of the total length of earthquake -resistant water distribution pipes against the total length of water distribution pipes to be installed in

water distribution projects in private road areas

85

Rate of water supply available during massive power outage

61 97 Ratio of the volume of secured water supply against the estimatedvolume of water supply at times of massive power outage

100(FY 2021)

Rate of accomplishment of counter measures for anticipated inundation

0 100(FY 2016)

Ratio of the number of completed facilities to cope with inundationagainst the number of planned facilities as required as inundation -

resistant measures

-

*1. Figures in the column ""After 10 years"" are targets set in Master Plan for Construction of Tokyo Waterworks Facilities.2. Years in brackets shown in the column ""Target;FY2020"" or the column ""after 10 years; FY2025"" are years of completion of development projects.

Category Content

Improving risk management skills

Enhancing hands-on trainings and other trainings referred by accidents.

Improving practical skills on-site

Promote trainings in practical skills fields and OJT in various workplaces.

Thoroughly compliance enforcement

Reforming awareness by enhancing trainings on preventing corruption such as bribery, and by raising a sense of duty and ethical perspective

Fostering an international perspective

Training human resources with an international perspective and foreign languages’ skills, looking beyond the 2018 IWA World Water Congress & Exhibition Tokyo

Private Contractors

Semi-Core DutiesImportant duties for business operations

Essential Duties

Regular Duties

Core DutiesDuties related to core business operations

PUC Co., Ltd.

Tokyo Waterworks

TSS Tokyo Water Co., Ltd.

Category Content

Tokyo Waterworks (Core Duties)

Formulating management policies and plan for facilities improvement, water quality control, maintaining and managing important facilities, wide area water supply operation, etc.

Supervised Organizations(Semi-Core Duties)

Supervision and guidance of duties commissioned to private contractors, operational control and maintenance inspections of facilities, general reception, etc.

Private Contractors(Regular Duties)

Contracted construction (equipment construction, pipe construction, etc.), water meter inspections, etc.

*Regarding role sharing, we constantly revises them based on changes in socio-economic status.

Item Content

Thoroughness of management policies

Thoroughly enforcing management policies through management meetings

Strengthening governance

Conducting governance by dispatching staff and holding board meetings

Monitoring Tracking management plans, overall judgment of initiatives toward management reform.Overall judgment of management goals achievement and reflecting appropriately into remuneration

Demonstrating synergy benefits

Demonstrate efficiency by commodity procurement jointly

Project Name Project ExpensePlanned amount by FY

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

Water resources and purification plantsimprovement project

164,000 31,000 32,000 32,000 32,000 37,000

Transmission/ distribution facilitiesimprovement project

536,000 109,000 108,000 108,000 108,000 103,000

Water supply facilities improvement plan 50,000 10,000 10,000 10,000 10,000 10,000

Total 750,000 150,000 150,000 150,000 150,000 150,000

Enterprise bonds 110,237 14,260 18,465 25,613 25,395 26,504

National Subsidies 2,599 1,162 455 455 455 72

Money transferred from general account

2,599 1,162 455 455 455 72

Others 634,565 133,416 130,625 123,477 123,695 123,352

Training

(Units: ¥1,000,000)

Supervised Organizations

Supplement/Support

Enhancing information disclosure

Thoroughness Strengtheninggovernance

Strengtheninggovernance

Important decision-making in corporate management

Collaboration

Investment

Investment

Evacuation centers

Major

stations

Rateof earthquake-resistant-joint pipes

used in supply routes serving important facilities

Preparedness to various types of risksStability

High

Quality

Financial resources