Global TradingBusinessResource
Circulation
Business

ENVIPRO Group Businesses

Lithium-ionBattery
Recycling
Business

Other Business

Other Business

Welfare Service
Business for People
with Disabilities

Environment
ManagementConsultingBusiness2. Business

ENVIPRO Group Sustainability Report 2023

15

Overall View of Our Businesses
Resource Circulation Business

Global Trading BusinessWe work to use limited resources

In this business, we distribute

effectively and reduce waste by promotinginternationally the metal scrap and otherthe reuse, recycling, and remanufacturingresources generated in Japan and otherof waste and resources. We also offer

countries. We provide export agency

new value to the world by using waste toservices for used cars and other items tomanufacture recycled materials.

meet customer needs.

ECONECOL Inc.

Nitto Kako Co., Ltd.

Kuroda Recycle Co., Ltd.

ARBIZ Corporation*

SYN ECO Inc.

Fuji Eco Cycle Co., Ltd.*

Toyo Rubber Chip Co., Ltd.

Breakdowns by Business(Year ended June 2023)

49.1billion

Net sales: ¥3.0%

Cyterrace Co., Ltd.

NEWSCON Inc.

0.8%

34.0%

Breakdown ofnet sales

62.2%*Affiliates accounted for under the equity method

1.9billion

Segment profit:¥

Lithium-ion Battery Recycling Business
By recycling lithium-ion and other

Other BusinessWelfare Service Business for People with Disabilities
Environment Management Consulting BusinessIn this segment, we are developing the Welfare
Service Business for People with Disabilities.
This business supports the independence ofpeople with disabilities, helping them to findwork and in community life. In addition, ourEnvironment Management Consulting Businesshelps companies develop environmental
strategies and plans for
reducing greenhouse gas emissions.

rechargeable batteries, we help to collectand make use of limited resources, suchas cobalt, nickel, and lithium. We aim toachieve a closed loop, LIB-to-LIB.

VOLTA Inc.

23.4%

4.0%

Breakdown ofsegment profit

Welfare Service Business for People with Disabilities

Environment Management Consulting Business

ASTOCO Inc.

Bright Innovation Co., Ltd.

9.0%

63.6%

2. Business

ENVIPRO Group Sustainability Report 2023

16Highlights
Unveiling of the Medium-Term Management PlanAcquisition of Land and Building for a Lithium-Ion Battery (LIB) Recycling Plant inIbaraki Prefecture, Aimed at Tripling Our Processing Capacity

In August 2022, we transitioned the consolidated numerical targets of ourmedium-term management plan to a rolling basis. To adapt flexibly to rapidlychanging market conditions, we have formulated a five-year medium-term
management plan (Mid-Term Plan 2028), which we introduced in August 2023.

In March 2023, we acquired land and buildings in the city of Hitachinaka, Ibaraki Prefecture, to establish a base for a
new LIB recycling plant. We will be constructing a black mass* manufacturing facility with a processing capacity of
5,000 tons. When combined with the existing facility, which has a processing capacity of 2,500 tons, the total
P24
processing capacity will increase to 7,500 tons, triple the current level.

P10

Aggressive Growth
Investments toIncrease LIB
Recycling Capacity

Establishing Cyterrace, Which Handles the Logistics Agency Business
In September 2022, we established Cyterrace Co., Ltd., as a wholly owned
subsidiary. In January 2023, Cyterrace took over operations of the logistics
P22
agency business from 3WM Co., Ltd.

Engaging in Joint Research with the University of Tokyo’s Shinsuke Murakami Laboratory
to Visualize Efforts toward Decarbonization
The ENVIPRO Group has initiated a collaborative research
project aimed at measuring the GHG emissions generated byeach recycling process and obtaining primary data that can beprovided to trading partners. We have quantitatively evaluatedthe difference in GHG emissions between the recycling
processes carried out at the current RE100 plant*1 andconventional recycling processes that use electricity derived
from fossil fuels.

Quantitative Evaluation of GHG Emissions*2*1 Plant where 100% of the electricity used is derived from renewable energy sources*2 Taken from a notice dated August 26, 2022 on joint research with the University ofTokyo’s Shinsuke Murakami Laboratory

Recycling byconventional plants* Black mass:
A cobalt/nickel/lithium
concentrate sludge

LIB processing
capacity (t)15,000Total processing capacity of each plant

14,000 tons

= 30% of LIB process waste generated in 2027

+1,500t Overseas plant commences operations

10,000+5,000t

5,000+5,000t Ibaraki plant commences operations

0Kansai plant commences operations

2,500t Shizuoka plant commences operations
2018

2024

2025

2027

Nitto Kako Co., Ltd. Joins the ENVIPRO GroupRaw material
procurement

In April 2023, the company acquired shares in Nitto Kako Co., Ltd. which
manufactures and sells industrial rubber and resin products, and made it aP19
consolidated subsidiary.

Manufacturing
Transportation
Use
Recycling
Recycling byRE100 plant

Developing Add-ons to Facilitate Reporting under Energy Conservation and GlobalWarming Prevention Legislation
Bright Innovation Co., Ltd. has developed an add-on application in collaboration with Uhuru Corporation that enables
the management of energy usage data through Salesforce Net Zero Cloud and facilitates compliance with the reporting
requirements of the Act on the Rational Use of Energy and the Act on Promotion of Global Warming Countermeasures.
This application will help reduce the administrative burden of regular reporting.

Launching Resource Collection Stations in the City of Akita in Collaboration with theAkita Northern Happinets
We established a new Mottainai BOX resource collection station in the city of Akita, Akita Prefecture, inP18
collaboration with the Akita Northern Happinets, a B.League professional basketball team.

Publication of an Original Picture Book, Boku no Te wa Maho no Te(“My Hands are Magic Hands”)
In June 2023, SYN ECO Inc. and ASTOCO Inc. published a picture book called Boku no Te wa Maho no Te
P41(“My Hands are Magic Hands”).