Table of Contents /Editorial Policy

Corporate Vision

ResourceCirculation
Business

Message from thePresident

A History ofValue Creation

Action Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

Treatment/processing flow in the Resource Circulation BusinessAirplanes

Input

Sustainability
Strategy

Ferrous scrap

Automobiles

Electronic equipment/
circuit boards

Riddling ash

Small appliances

Plastics

Abovegroundresources(wastes)
Recycling
Materials are finely
shredded forrecycling.

Shredding
Separation· Automobiles· Photocopiers· Monitors· Microwave ovens· Vacuum cleaners· Smartphones, etc.

Materials for
cementproduction

Paper Waste, sponges, and light dust

Ferrous scrap isremoved from theshredded mixture using
strong magnetic force.

Magnetic separation

Dry specific gravity
separation

Agitation propellers

Air separation
Ferrous metals
Nonferrous metals

Incineration

Frictional forces are used tosort through the motion ofvibration and upward air flow.

Paper Waste,sponges, and light
dust are removed fromthe shredded mixture
using air separators.

Light particles
Liquid

RPF and other solid fuelare produced from waste.

Refuse paper andPlastics plastic fuel (RPF) plant(lightweight)

Airpower

Heavy particles

Reuse

Wet specific gravity separation

Airplanes

The specific gravity of a liquid that combines waterand a specific metal powder is adjusted according
to the items to be extracted, separating items into
those that float and those that settle.

ExtruderPlastic
pellets

Eddy current separation
Used cars

Falling non-magnetic metals are sorted
using magnetic repulsion.

Export overseas

RPF

Extrudedmaterials
Gold, silver & Copper Aluminum
copper sediment sludge

Materials manufacturers

Plastics
for fuel

Remanufacturing

OutputRecreatingresourcevalue= Shredded steel scrap= Copper= Aluminum= Gold, silver & copper
sediment sludge= Plastics for fuel= RPF (solid fuel)11

Table of Contents /Editorial Policy

Corporate Vision

Message from thePresident

A History ofValue Creation

Resource
Circulation
Business

Sustainability
Strategy

Action Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Promoting the recycling of diverse wastesof gold, silver & copper sediment
02 Collection
sludge from waste incineration ash

Engaging in the reproduction, processing,and sales of materials derived from above ground resources,
particularly recycling of metal resources

ECONECOL has engaged in years of research into technology and plantdesign for utilizing differences in the material properties of wastes, etc. toperform physical sorting into ferrous and nonferrous metals, gold, silver &copper sediment sludge, plastics, and other materials. Through theaccumulation of these technologies and knowledge, the company has further
evolved its sorting technology and has established technologies toconcentrate and recover fine gold, silver & copper sediment sludge evenfrom waste incineration ash seemingly free of precious metals, obtaining apatent in January 2019. Many local governments have disposed of waste
incineration ash in landfills, but an increasing number are working to recovergold, silver & copper sediment sludge from the ash, for the purpose ofrecycling as well as reducing the volume of landfill. The company is actively
developing business with local governments, aiming to expand its businessto a 30% share among local governments nationwide by 2028.
Amount of waste
incineration ash collected
Amount of thecollection of precious
metals from waste
incineration ash

Main business activities of ECONECOL Inc.
recovery
01 Resourcefrom urban mines

RPF

03 production

12Corporate Data

02

Collection of gold, silver & copper
sediment sludge from waste
incineration ash

Reuse and04 recyclingof aircraft

Shredding and aof05 recycling
mattresses

Value & Vision
Reproduction of materials derived from above groundresources through low-carbon processes.
Contribution to the achievement of a sustainabledecarbonized society by circulating high-quality,
low-carbon raw materials and fuels through society.

01 Resource recovery from urban mines

The precious metals and other metals contained in scrapped
automobiles and household appliances, known as "urban mines,"
provide many useful resources. However, advanced and complex
technologies for shredding and sorting are required to recycle suchcomposite materials. ECONECOL Inc. shreds these "urban mine"materials and applies combinations of magnetic force, air power, wet
specific gravity, dry specific gravity, color, and other separation
technologies to separate and concentrate individual materials andachieve higher levels of resource recovery. In recycling, the company
also engages in production using low-carbon processes thatsignificantly reduce CO2emissions, and supplies
high-quality raw
materials and fuels
derived from above
ground resources.

Gold, silver & copper sediment sludge

3,122Gold (Au)tons

Silver (Ag)25.3 264.9kgkg

Table of Contents /Editorial Policy

Corporate Vision

Message from thePresident

A History ofValue Creation

Resource
Circulation
Business

03

Sustainability
StrategyAction Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling BusinessOther Business

ESG Initiatives

Corporate Data

Evolution of technology and expansion into new business domains

06

RPF production

Wide-ranging one-stop services
The company offers one-stop services that range from collection,transport, and disposal of waste to dismantling of buildings. Normally, eachprocess requires separate outsourcing to multiple contractors capable ofperforming the work. ECONECOL is able to offer one-stop services thatspan waste removal and disposal, dismantling of structures, andremediation of contaminated soil after dismantling. This not only
contributes to increasing the recycling rate but also reduces burden andcosts on the customer.

Refuse paper and plastic fuel (RPF) is a solid fuel created by compressing waste plastics and paper waste materials
that are difficult to recycle, into a primary raw material. This environmentally friendly fuel features stable quality andcan significantly reduce CO 2 emissions compared with fuels such as coal. ECONECOL Inc. produces about 25,000
tons of RPF annually, continuously supplying this material primarily to paper manufacturers as boiler fuel. The plantcurrently runs at full capacity 24 hours a day, with plans to expand the number of purchasing companies and tofurther expand the production system in the future.
RPF (solid fuel)▼ One-stop service

04

STEP 01

Reuse and recycling of aircraft

Removal anddisposal ofwastes

In May 2019, ECONECOL won a tender for two sold-off government aircraft, and soldthe craft as reuse and recycling resources to a buyer in the U.S. for parts supply.
From this start, the company made a full-scale launch of the only aircraft reuse andrecycling business in Japan. The reuse and recycling market for aircraft currently
exists primarily in Europe and the U.S. However, reuse and recycling are generally
separated overseas as well, and transactions for used aircraft, and recycling fromwaste materials, are normally handled by different companies. Unlike the matter ofsimply selling the planes as used aircraft, know-how is required to determine theproper resource value of craft and their parts. The know-how that the company
cultivated through years of evaluating and appraising metals and other composite
materials has enabled one-stop support that spans asset evaluation and appraisal torecycling of unneeded waste materials. The company currently aims to expand its
business as a pioneer in aircraft reuse and recycling, through actions such as
launching the Aircraft Recycling Park Concept in alliance with airlines, leasing
companies, and other partners in Japan.

07

STEP 03

Dismantling ofstructure

Remediation ofcontaminated soil
following dismantling

Collaboration with shredderbusinesses nationwide
To meet customers' demands for metal scrap purchase, waste disposal,and construction demolition projects, ECONECOL works through nearby
shredder businesses that possess the same level of management andprocessing capacity as our company, and serves as a contact desk thatlets customers engage in proper disposal with peace of mind even in
geographically distant areas. Collaborating and gaining mutual trust also
leads to approaches to new business partners.

Aircraft reuse and recycling resources

05

STEP 02

Shredding and recycling of mattresses
From August 2021, ECONECOL began the breakdown and recycling of mattresses, which are designated as items
difficult to dispose of properly. Its high-performance shredders enable processing with minimum human
workload. The company also plans to develop dedicated shredders in collaboration with a shredder manufacturer.
In this way, the company is working to create means of working in a new business domain, including fully
accepting work spanning the collection and disposal of waste associated with hotel relocation and closure, tobuilding demolition.
Mattresses

08

Promoting responsible recycling
ECONECOL has obtained certification under the "R2 Standard", a program
managed by the U.S. Environmental Protection
Agency. It assesses responsible behavior byelectrical and electronic equipment recyclers,and mandates strict security measures. The
company sets up booths at barricades toperform strict inspection of entry and exit byrelated parties. As foreign-affiliated companies
preferentially deal with businesses that haveobtained this certification, we will continue totackle proper recycling and its promotion inaccordance with R2 certification.
Certificate of R2
Standard certification

13Table of Contents /Editorial Policy

Corporate Vision

Message from thePresident

Resource
Circulation
Business

A History ofValue Creation

Sustainability
StrategyAction Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

Aiming for local revitalization through recycling
to the global environment by02 Contributing
recycling wood scrapDeveloping a community-based recycling business

Wooden houses are commonly built in Hokkaido, and a large amount of wood
scrap is generated from demolition. Kuroda Recycle installed shredding
facilities in 2020 to reuse this wood scrap. The shredded wood scrap ismainly reused as cement raw fuel and a boiler fuel, helping to extend life oflimited resources.

focused on Hakodate City in southern Hokkaido

of dismantled wind power
03 Acceptancegeneration equipment
Hokkaido has many locations suited to wind power generation. The service
life of wind power generators is generally about 20 years, meaning thatremoval of aging equipment built around the year 2000 is gradually
increasing. Kuroda Recycle is able to shred and dismantle large wind power
generators using equipment that includes a 1,250-ton scrap shear. As thenumber of wind power generators that have reached the end of their service
life continues its upward trend, the company will broaden its horizons andaccept equipment throughout Hokkaido.

04 ASR Recycling Business
Main business activities of Kuroda Recycle Co., Ltd.

01

Comfortable Life
Support Business

03Acceptance of dismantled
wind power generationequipment

02

Wood scrap recycling

04

ASR Recycling
Business

01

Expanding the Comfortable Life
Support Business
Kuroda Recycle Co., Ltd. launched its Comfortable Life Support Business in2017, serving the area of Hakodate City and its environs in southern
Hokkaido, to make contributions to the community. In the first year, the main
focus was on issues in people's personal environments, such as clean-up
work targeting general individuals. From the following year, the company has
been expanding the work by offering one-stop support for dismantlingfishing boats, buildings, and other structures for business establishments,
local governments, hospitals, property receiver cases, and so on.

Value & Vision
One-stop handling of removal, treatment, andrecycling of unneeded goods. Contributing to
the promoting of regional resource recycling
and revitalization of the local economy.

Before clean-up

After clean-up

Kuroda Recycle engages in the business of recycling the automobile
shredder residue (ASR) that remains after used automobiles are shredded.
ASR contains metals that cannot be fully recovered in the shredding andsorting processes. Fine metal scrap is recovered through sorting equipmentusing specific gravity differences and air power (sorting by air table), among
other equipment. The company will continue its focus on research into
advanced sorting technology and process efficiency to contribute toimproved recycling rates for scrapped vehicles.

▼ Separation using an air table
Nonferrous metals and plastics are sorted by specific gravity through theactions of vibration and upward air flow.

14

Table of Contents /Editorial Policy

Corporate Vision

Message from thePresident

Resource
Circulation
Business

A History ofValue Creation

Sustainability
Strategy

Action Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

Regional circular and ecological economy through recycling

Developing a regional circular and ecological economy-oriented
recycling business centered on Matsumoto City andAzumino City in Nagano Prefecturehigh-quality intermediate
02 Achieving
treatment through large shredders
The head office plant, which has been operating on an RE100 basis sinceApril 2021, performs shredding and separation of metals and waste plastics
using the only large shredder in Nagano Prefecture. The company carried out
a major renewal project to expand its business partners and to processcomposite materials. Metals shredded and recycled by the company are sent
directly to manufacturers to be reborn as new products, while mixed metals
and nonferrous metals generated by the shredding process are recycled bygroup companies through re-sorting and other means, maximizing synergies
and economies of scale in the group. From the perspective of regional
resource recycling and decarbonization, the company will bear a role in"contributing to the region".

a specified home appliance03 Launching
recycling business

Main business activities of SYN ECO Inc.
and recycling
01 Collectingof local resources

03

Recycling of specified
home appliances

02 Intermediate
treatment of waste
04

Local club teamcollaborative projects

Value & Vision
Promoting the effective use of regional resources
while promoting advanced efforts for the local
production and consumption of resources,
through activities aimed at creating "a regional
circular and ecological economic zone".

of local resources with
01 Collection
Mottainai BOX
SYN ECO Inc. has set up Mottainai BOX Stations as resource collection
sites at 21 locations in the Chushin district of Nagano Prefecture. This
includes four new locations added from the previous year, bringing theamount of resources collected in fiscal 2020 to 5,300 tons. Each stationcollects local resources (metals, waste paper, aluminum cans, and usedclothes) to create an environment that makes use by locals and collectionof containers easy. Collected resources undergo sorting, processing, andshipment at plants, to be reused as resources. Another feature of thecompany is that people with disabilities and general employees work
together at plants. The
company also donates aportion of profits to thelocal J2 League
Matsumoto Yamaga
Football Club and NaganoChildren's Hospital, as ittackles local production
and local consumption byreturning locallygenerated resource valueand profits to the region.

In January 2021, SYN ECO began accepting specified home appliances(general waste) generated in Nagano City. This had its start in theacceptance and recycling of specified home appliances damaged by anatural disaster in the Hokushin area of Nagano Prefecture in 2019. The
activity has been praised as an effective initiative for regional resourcerecycling. In FY2020, acceptance reached 6,500 units (including those fromdisaster damage in Nagano City).

04 From PET bottles to uniforms

In January 2022, SYN ECO will begin a project to create uniforms for matchvolunteers from PET bottles collected at home games of the Matsumoto
Yamaga Football Club. This multi-year initiative marks an evolution of theYELL Project launched in 2013 to eliminate disposal costs for wastes fromthe stadium, and will form a part of projects to recycle local resources.
Looking ahead, the company will collaborate with materials manufacturers,
final goods manufacturers, and other partners as it works toward theconstruction of "a regional circular and ecological economy zone" thatrecycles wastes generated in the prefecture and returns these to localcommunities.

15

Table of Contents /Editorial Policy

Message from thePresident

Corporate Vision

ResourceCirculation
Business

A History ofValue Creation

Sustainability
StrategyAction Plan

Resource Circulation
Business

Global Trading
Business

Lithium-ion Battery
Recycling Business

Other Business

ESG Initiatives

Corporate Data

From waste materials to high-quality recycled materials

Toyo Rubber Chip Co., Ltd.

Manufacturing rubber chips from recycled materialsand developing wide-ranging of products used inpublic facilities

02 Contribution to a circular society
Toyo Rubber Chip has been active in the development of rubber recycling forabout 80 years. Rubber chips, made from waste tires and products
generated from rubber manufacturing processes in plants, are used ascushioning material for filling artificial turf at sports grounds, as well as
paving material for parks and sidewalks. Rubber powder, made from finely
shredded waste tires, is used in industrial finished goods such as a tire filler
and automobile brake linings. In this way, recycled rubber processed by ourcompany is used in many fields. Utilizing technologies that we have built up
over many years, our company will continue to actively develop
recycling-related finished goods. In collaboration with suppliers, we are
currently advancing initiatives to establish a circular model that collects andremanufactures rubber waste material in a closed loop.

▼ Rubber recycling process

RE100
Toyo Rubber Chip Co., Ltd.
Classification

Main business activities of Toyo Rubber
Chip Co., Ltd.

010203

Manufacturing blackrubber mulch fromwaste rubber

Manufacturing colorrubber chips fromsynthetic rubber

Making rubber
finished goods used atpublic facilities, etc.

01 Toward the achievement of a safe society
Toyo Rubber Chip Co., Ltd. manufactures color rubber chips from synthetic
rubber, offering a wide range of colors that accommodate buildings andstructures of diverse design. At the parks, school grounds, kindergartens,
and other places where children play, color rubber chips serve ascushioning material that reduces the risks of fatal injuries from falls. Thecompany's Omni Pedestrian Rubber Panels, used as a material at railroadcrossings, feature outstanding elasticity and durability, prevent slips, andresist corrosion, assisting safety at pedestrian passageways. The Vehicular
Clearing Posts launched this year use color rubber chip molded products
to indicate clearances between railway cars. They ensure good visibility
over a long period with little weathering-related fading, contributing tosafety in railway operation.

Value & Vision

Shredding
Removal of steel

Purchase of waste
tire chips fromintermediate
processors

Black rubber mulchBlack rubber powder

Artificial turf field

Use in industrialproducts● Tire filler● Brake material

TOPIC

Low-carbon products manufactured at RE100 plants

From May 2019, Toyo Rubber Chip has operated an RE100plant, switching to 100% renewable energy sources forelectricity supplied to the plant. This has enabled the reductionof CO2 emissions from manufacturing processes and themanufacturing of products with low environmental impact.

Achieving a circular economy that converts
rubber offcuts into products throughlow-carbon processes at RE100 plants.
Omni Pedestrian Rubber Panels

16