Table of Contents /Editorial Policy

Corporate Vision

Message from thePresident

A History ofValue Creation

Sustainability
StrategyAction Plan

Resource CirculationBusiness

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other BusinessOverall view of our businesses Achievement of the circular economy that our group seeks

ESG Initiatives

09

Corporate Data

● Business results highlights

Resource Circulation BusinessNet sales (left axis)

Resource Circulation Business
By promoting the reuse, recycling,
and remanufacturing of waste andresources, we tackle the effective useof limited resources and the reductionof waste, while also manufacturing
recycled materials from waste to offer
new value to the world.

Ordinary profit (right axis)(100(100 million yen)

Reso ucu la t ion Busrc e Ci ri n es

● ECONECOL Inc.

● SYN ECO Inc.

● Kuroda Recycle Co., Ltd.

● Toyo Rubber Chip Co., Ltd.

s

Affiliates accounted forunder the equity method● ARBIZ Corporation● Fuji Eco Cycle Co., Ltd.

20.8 million yen)
20.0

160
140

142
129

120

10.2

15.0

127
9.2

10.0
107

100

5.4

5.0
00
Jun/2018 Jun/2019 Jun/2020 Jun/2021

Global Trading BusinessNet sales (left axis)

Reuse/Recycling/RemanufacturingmLithiu-ion Battery RecyclinThe
ENVIPROGroup

singB

ess

Along with the international
distribution of metal scrap
and other resources
generated in Japan andelsewhere, we bring used
items such as used carsand maintenance parts
from Japan into globalmarkets.

Global Trading Bu

Global Trading
Businessusin● NEWSCON Inc.

Welfare Service
Business for
People with
Disabilities

Environmental
Management
Consulting
Businessess● 3WM Co., Ltd.

(100(100 million yen)

330

Lithium-ion Battery
Recycling Business

300

6.3

7.1 million yen)
7.0
310

293

6.0
280

270

4.6

4.3

5.0

257

4.0

240

Through the recycling oflithium-ion and otherrechargeable batteries, wecontribute to theestablishment of resource
recycling systems fornickel, cobalt, and otherminor metals, and to theeffective utilization oflimited resources.
● VOLTA Inc.

00
Jun/2018 Jun/2019 Jun/2020 Jun/2021

Lithium-ion Battery Recycling BusinessNet sales (left axis)

Ordinary profit (right axis)(100 million yen)

(100million yen)

3.5

3.6

4.5
3.0

2.4
0.9

1.2

1.5

0.3
00-0.2Other Business

Ordinary profit (right axis)

O t h e r B u s i nes s-0.8

-1.2

-0.8

-1.5

Jun/2018 Jun/2019 Jun/2020 Jun/2021
Changes in business segment categories

We are developing a welfare service business that supports the independenceof people with disabilities in finding employment and in community life, as wellas an environmental management consulting business that provides support
for companies' environmental strategies and CO2 reduction plans.

● By integrating the Global Resource Circulation Business and theWelfare Service Business forPeople with Disabilities

Environmental Management
Consulting Business● ASTOCO Inc.

● Bright Innovation Co., Ltd.

Used Car-Related Business, which are overseas businesses, into
the Global Trading Business, we have strengthened synergies.
● We made the Lithium-ion Battery Recycling Business independent
from the Resource Circulation Business as a strategic business ofthe group, out of consideration for the content and scale of business,
including hydrometallurgy, and the alliances planned for the future.

Table of Contents /Editorial Policy

Corporate Vision

Message from thePresident

A History ofValue Creation

Sustainability
StrategyAction PlanACTION PLAN

Battery to Battery
The dawn of a new era for lithium-ion batteries
The near-future depletion of cobalt, nickel, and other mineral materials
used in lithium-ion batteries (LIBs) is cause for concern.
For that reason, we are acting to strategically secure resources.
"Battery to battery".
This is a circular system for LIBs, premised on recycling.
The ENVIPRO Group has taken a major step in the direction ofbuilding a new circular economy model that integrates
LIBs production and mineral resource recycling.

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate DataBecoming an indispensable presence in the battery industry
and supporting the next generation.
Today, the world is undergoing a major transformation aimed at securing mineral resources. The
recycling of LIBs is an important key to protecting the resources of Japan and the planet. This
recycling is also expected to grow further as a new pillar of business for the ENVIPRO Group. Ourrepositioning of the Lithium-ion Battery Recycling Business from one of our resource recycling
businesses to an independent business segment from this fiscal year also indicates theimportance of this business. Underlying this is the rapid proliferation of electric vehicles (EVs). As
demand for LIBs takes off, the depletion of cobalt, nickel, and other raw materials in the near
future is cause for concern. Minor metals are produced in a limited number of countries, creatinga need to strategically secure domestic resources. The recycling of LIBs in Japan is currently at
the point of collecting the concentrated cobalt and nickel sludge called black mass, which isexported overseas. The outflow of this valuable resource to destinations overseas will be a greatloss for Japan. Preventing this calls for smelting black mass in Japan and supplying theremanufactured resources directly to domestic manufacturers. However, this entails
considerable investment and determination. In addition to the cost of plant construction cost, thelong time frame for realization of profit and the need to secure more material for smelting areamong the difficult barriers that confront commercialization at the present stage. At this rate,
many companies in Japan, including in the domestic battery industry and automobile industry,
will lose competitiveness. While advancing constant research to achieve advanced smelting, ourcompany is making steady preparations that include the planning of plant equipment and siting
and alliances with battery manufacturers. We aim to complete a hydrometallurgical plant andbegin full-scale operation in 2025, creating a new major pillar of business for the ENVIPRO Group.
With this, our group will tackle the challenge of becoming an indispensable presence in thebattery industry.
Black mass
A mixture of cobalt, nickel, and othersubstances produced from thebaking of lithium-ion batteries.
Through smelting, recycled cobalt
and nickel can be produced.

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