For the Society
We continue making our social
contributions through various activities
as a good corporate citizen that should
coexist in harmony with society.

INDEX

With Our Customers
28 With Local Communities
30 With Our Employees
35 With Our Shareholders and Investors
27

26

For the Society

with our CustoMers
We make efforts to provide detailed responses to the wide-ranging needs of each of our customers
under our motto that “customers come first.”

Initiatives toImprove Customer Service●●Customer Satisfaction Surveys
We periodically conduct Customer Satisfaction Surveys. We survey
the level of satisfaction with our business activities as a whole, andthen improve upon problem areas based on the results of thereports. Hereafter, we will continue conducting periodic surveys
and working to improve customer satisfaction.

●●Providing Information to Customers
We publish the “Asahi Bulletin” primarily for our customers involvedin the dental sector. Columns on the supply and demand situation
for precious metals and on medicare are posted to the Asahi Bulletinin the interest of providing information.

Quality Assurance System
We hold a Quality Assurance Meeting that is led by the Quality
Assurance Division through an amalgamation of our Sales Division,
Technology Development Division, and Product Manufacturing
Division. Through this meeting we share information such as
customer opinions and market trends in our efforts to improvecustomer satisfaction.
In addition, in order to provide customers with products that earn
their reassurance and satisfaction, we have acquired ISO9001 andstrive to make continuous improvements to our quality management system, while also maintaining and improving upon ourquality. Furthermore, Asahi Pretec also makes efforts to reduce theenvironmental burden while giving consideration to “green procurement” and the Restriction of Hazardous Substances (RoHS) Directive,
which is a European regulations on chemical substances.

Acquisition of ISO 9001 approval
27

Asahi Pretec Co., Ltd.
Techno Center
Fukuoka Plant
Ehime Plant
Saitama Plant
Asahi Bulletin
ISO9001 Certificate●●Initiatives Concerning Fair Trade
We have established the Group Ethics Plan, and prohibit our officers
and employees from having any connection with corruption or antisocial powers.

Asahi Holdings Group Ethics Plan (Excerpt)■●Removing incitements for personal profit and securingcorporate profit- With regard to purchase and other transactions, employees shallnot exert influence designed to impede the adoption of optimalbusiness clients in terms of price, quality, or the delivery term,
and cannot act as a proxy for clients■●Moderate business dining, entertainment, and gifts- Employees shall neither request nor receive money from clientsand customers- Employees shall not provide money or gifts which constitute abribe to clients and customers- As a general rule, employees require prior permission from theirsuperiors when both receiving and offering meals and businessentertainment, and the locations and contents of such meals andentertainment should not be expensive■●Emphasizing safety, the environment, and local

communities- Employees shall not have any connection nor engage in any typeof transaction whatsoever with anti-social powers or activities

Our Risk Management
on Information Leakage
By thoroughly banning the taking copies and bringing duplicatesoutside the company (via information storage media), we have further strengthened our internal and external information risk management. We employ security measures features such as a lockfunction on computers used by sales representatives to ensure thatthe computer cannot be easily operated in the unlikely event thatthe computer is lost or stolen. In addition, we provide a data deletion service at our Recycling Centers located in Saitama, Chiba, andAmagasaki for the sake of countermeasures against data leakage
accompanying the disposal of computers, thereby contributing topersonal information protection through our business activities.

with loCal CoMMunities
We are expanding its business activities nationwide, and the support and understanding of local residents areindispensable. In order to continue being as a good corporate citizen who can coexists with the society, the Asahi
Holdings Group carries out grass roots activities in local communities and contributes to society in various ways.

Introduction of Some Activities●●Efforts for a Clean Environment
The Suma Beach located to the west of Kobe city is not only a symbol of Kobe, but also a beach for swimming that makes use of theonly natural coastline in the Hanshin (Osaka and Kobe) region. Inorder to protect the fantastic coastal scenery there, local residents,businesses, schools and administrations came together to work as
one to clean up the beach before and after the swimming season.
Our employees who work at offices nearby also participate every
year with their families to clean up the beach prior to the opening of
the official swimming season.

●●Participating in Local Traditional Events
At Taiyo Chemical, employees participate as volunteers in “Myoen-jimairi”, a historically traditional event in Kagoshima prefecture, withgreat excitement. In addition to the usual offering of water and distribution of the event pamphlets to visitors of the event, this year
our employees took advantage of their special skills to decorate theyagura towers erected along the Satsuma Kaido road. Their efforts
to pave the ground around the yagura with stones, handmade signs
and street maps were greatly enjoyed by the visitors.

●●Training for International TechnicalCooperation

The Kitakyushu business office was requested by the Kitakyushu
International Techno-cooperative Association to provide training
concerning waste treatment business to JICA technical trainees fromSoutheast Asia. Participants were young environmental administrative officers working with environmental policies and waste management by the industrial sector in their own countries. They wereattentive to explanations about regulations stipulated by Japan’senvironmental law and our plant’s waste management system.

28

For the Society

Social Contributions ThroughBusiness Activities
We agree with the purpose and support the activities of the 8020
Promotion Foundation for the 8020 Campaign (a campaign to still
have over 20 of one’s own teeth upon reaching the age of 80).
We also recycle the removed teeth crowns collected by dental clinics that agree with the purpose of the cooperating organization forreproducing precious metals such as gold and palladium. The net
profits obtained from sales of these precious metals are madeavailable as funds to assist the activities of various cooperatingorganizations.

<Major organizations that our company
assists>●●The 8020 Promotion

Foundation●●The Japan Cleft Palate

Foundation, a Specified
NPO

29(Provides medical assistance to children
with oral handicaps such as cleft lips andpalates)●●Medecins Du Monde Japon, a Specified

NPO(Provides medical assistance to people suffering from wars andnatural disasters)

TOPICS

Exhibiting at the Kyushu Dental Show
We participated at the 2009 Kyushu Dental Show held at the Marine
Messe Fukuoka in June. At our booth we provided information concerning our recycling technology and products in the area of dental materials to visitors from the dentistry world. By exhibiting at such specializedshows, we are promoting our company activities and disseminating theimportance of recycling awareness.

Medical assistance by Medecins Du Mondewith our eMployees
Our aim is to create happy workplaces infused with a sense of motivation and solidarity that respect individuality andenable self-refinement through work under the management philosophy of “Respect for Human Dignity/Capability.”
We promote a variety of initiatives designed to elicit the strengths possessed by each individual employee tothe greatest extent possible and apply this to work, and to enable them to tackle their work with a sense ofchallenge and job satisfaction.

Creating an Environment Where People Can Work with Peace of Mind
Work-Life Balance

Living one’s life by utilizing the abilities to full extent while striking a balance between
challenging, rewarding work and a fulfilling personal life is not only important to employees,
but to the company as well. There are a wide variety of important values in one’s personal
life, such as family, health, sports, and hobbies, which vary depending on each individuals.
Our company offers support which allows employees to strike a balance in their personaland working lives.

●●Refresh Holiday●●Mental Healthcare

This is a system whereby employees can take three to five days ofcontinuous holiday time every year beginning in their second year.
This makes it possible to take nine days of continuous vacation time
if weekends are included, which can be used for travel with familyor hobbies.

It is said that stress from work or daily-living related anxieties or worries is spreading in our modern society.
At Asahi Holdings, we believe that mental health is a vital key to ouremployees’ productivity and the improvement of their vitality, andwork with industrial medical professionals with expertise on mental
healthcare to provide individual consultations and preventive seminars. In addition, efforts are made toward comprehensive healthmanagement and seminars concerning better health through medical viewpoints are given whenever necessary.

Individual Cosultaion●●Managing Working Hours
Aiming for suitable workloads and working hours, we conduct personal interviews with every employee and have created a system
to manage actual working conditions with a view to the work-lifebalance of each and every employee. We also provide guidance individually on improving one’s working environment.

Disease Prevention Seminar30

For the Society●●Childcare Leave●●Supporting Company Club Activities

We assist employees for the birth and childcare, and support working patterns that are suited to their lifestyle through childcare leaveand short-time work.

The Asahi Holdings Group supports the Golden Fighters, the group’s
American football club team. We hope you will continue to support
and cheer for the team.

●●Employee’s Opinion Surveys
We conduct an Opinion Survey on all our employees once every
three years. This survey is conducted in order to objectively grasp
the employees’ level of satisfaction in the company, and the resultsof the survey serve to further vitalize the organization and its humanresources.

●●Employment of Disabled Persons
Employees with disabilities engage in the same types of work thatphysically unimpaired employees do at our workplaces.

31

Employees having a pleasant conversation during break time
(Amagasaki Recycling Center)

Communication between colleagues and with clients is enhanced
through club activities such as baseball and futsal.

Fostering Human Resources

We strive to have professional human resources which value expertise within every rank
Basic Philosophy
and line of work within the company. We provide initiatives like our unique qualificaRegarding the Fostering tion scheme and internal education curriculum, as well as voluntary small group activities which are known as Asahi Small Group Activities (ASG Activities). Furthermore, weof Human Resources

have seven courses of action (mindfulness of profits, CS, information, cooperation, CSR,growth, and risk) which adopts a results-oriented personnel system that fairly and impartially evaluates the degree to which each and every employee contributes to businessperformance. As such, we endeavor to foster human resources with a fighting spirit.

●●Employee Training Program
Our company provides education suited to the employees’ level ofproficiency from the time they join the company (Entrance Training,
Step-up Training, Power-up Training), as well as education and training for selective human resources by rank (Junior Leader Training,
Manager Training, Leader Training). In addition to which we also

instill each individual with the practical knowledge needed byprofessional human resources through training by division andtechnical ability education. We have also established training
programs which make it possible to nurture specialized capabilities.

32

Step-up Training

Power-up Training

Training by rank

Entrance training

Self-education

Support for acquiring qualifications

Correspondence education

ASG Activities (Asahi Small Group Activities)

DIPS Training (Dental Division training)

Promotion test and training

Leader Training

Manager Training

Junior Leader Training

Power-up Training (around 1 year after joining the company)

Step-up Training (around 3 to 6 months after joining the company)

Primarymanagement
positions

Training upon joining
the company

Mid-levelmanagement
positions

Training for management positions
upon joining the company

High-level management positions
Specialized andfull-time positions

Training for new entrantsTraining by division

For the Society

Promoting Safety and Health Activities
Initiatives for OSHMS

Environmental Safety Education

It is essential to nip disasters in the bud by focusing on the innumerable risks latent in the workplace and reducing such risks in advanceso as to reduce the number of disasters. Our company aims toimprove the safety and health standards of our workplaces by incorporating the reasoning behind the Occupational Safety and HealthManagement System (OSHMS*) and reducing risks.
Our OSHMS is based upon reducing workplace risks by repeatedly
applying the PDCA Cycle. This is a sequential cycle which runs from“establishing a plan” based on assessments of factors contributing torisk and hazards (Plan) -> “implementing the plan” (Do) -> “evaluating the results of the plan” (Check) -> “revisions and improvements
based on the evaluation” (Act).

Environmental safety education is conducted as part of the Human
Resource Fostering Program in the employee training systemdescribed above, and teaches things like a frame of mind for safely
conducting work and basic knowledge of hazardous substances.
Furthermore, we also incorporate into this role play-type education
which holds group discussions by envisioning specific emergency
situations, such as how you should react if a fire were to break out
during working hours. We also contrive of means to enable individuals to correctly understand the actions that should be taken at theactual work site.

A(Act)
Revise and improve

33

C(Check)
Confirm and evaluate
the progress

D(Do)Implement
the planP(Plan)Create a plan
Rank challenges
in order of priority

Environmental safety education

In terms of on-site support, on-the-job training (OJT) is provided by
specialized staff concerned with health and safety at our sales andplant sites. We strive to improve health and safety in workplaceenvironments by means of safety instruction to workers and persons
in charge.

Identify and evaluate
risk factors: Occupational Safety and Health Management System*

Plant training

Responding to Emergencies

Safety Commendation Activities

By way of safety measures at plants, our company seeks out risks
regarding our business activities, decides on a “Safety PromotionDirector” for each work site, and takes preventive measures. In addition, we have set in place a structure for promptly responding to any
problems in the event that something should occur.
Furthermore, as a means of responding within the company andoutside the company when emergencies occur, we have completed
the “Emergency Response and Management Manual.” We have also
distributed “Accident and Disaster Response Procedures,” which contain essentials for responding to accidents and disasters when they
initially occur, and have mandated that every employee must carrythese with them at all times.

Every year, we strive to enhance awareness of safety by holding
activities to commend business sites and employees who havemade a contribution to safety management at general meetings ofemployees.

Holding General Meetings ofEmployees
We hold general meetings of employees every year. At the general
meetings of employees a number of different activities are held, including a message from CEO, presentations on the previous term’s
performance and priority issues for the current term from the various division directors, ASG presentations by selected teams, anddiscussions between top management and employees.

Safety commendationCreating Vital Workplaces
Through Small Group Activities
We implement what we call Asahi Small Group Activities (ASG Activities) with voluntary participation from employees within the sameworkplace. Through these activities, participants use their creativity
to work toward solving issues and problems within their workplace.
Groups with outstanding efforts are awarded at the employee general assembly.

General meeting of employees

INTERVIEW

Taking Part in ASG Activities

The main theme of our team, the Yokohama Sales Office B-Team, was tocome up with ways of solving issues
pertaining to cost reduction. Of what
we came up with, our efforts to catalog complicated equipment for easy
viewing and to devise detailed documents concerning industrial wastes
have received high appraisal.
When you look at the effects of ourcost reduction effort you might think
each effect is insignificant. However,since the effort was expanded to
all national sales offices, the effects
have been tremendous. More thanbeing awarded for our efforts, I am
proud and overjoyed to know that
we were able to bring good influences to the company as a whole.

Masami Igarashi
ASG Activities B-Team group leader
Yokohama Sales Office34

For the Society

with our shareholders and investors
We are proactively promoting growth strategy and striving to improve corporate value and provide stabilized returns toour shareholders through business development.
●●Sales

Shareholder Composition
The total number of our shareholders as of the end of March 2010
was 11,338. When it comes to the stock distribution status by holder,individuals and others hold 46.75%, foreign corporations and others
hold 12.68%, financial institutions hold 19.74%, other corporations
hold 10.08%, treasury stocks hold 9.70%, and securities firms
account for 1.05%.

(100 millionyen)
（億円）
1,500

1,174

1,200

1,264976
820

900

600623300●●Stock Distribution Status by Holder

02005

2006

2007

2008

2009

Securities firms
191,172 stocks

1.05%
Individuals and others
17,270,063 stocks

Treasury stocks
4,038,767 stocks

46.75%

9.70%●●Ordinary Profit(100 millionyen)
（億円）
120

108
95

100

Other corporations
4,050,150 stocks

10.08%

7580

Financial institutions
5,279,246 stocks

Foreign corporations, etc.
5,424,946 stocks

19.74%

12.68%

35As of March 31, 2010

6055

4020-50

Basic Philosophy
on Shareholder Returns-20

Our basic philosophy with regard to the sharing of profits is to “measure up to the expectations of all of our shareholders through dividends and the like by striving to raise our corporate value throughmaintaining a stable earning capacity and further growth.” At thesame time, we also believe that “it is important to aim for ample
retained earnings in order to provide for things like investment togrowth sectors and new business development.” As such, we haveadopted Dividends on Equity (DOE) as indicators for returns toshareholders, which is a multiple with Return on Equity (ROE) by thedividend payout ratio. Based upon this fundamental policy, withregard to shareholder dividends we will make strategic business
investments to strengthen and grow our earnings structure, while
also striving to continue effectively utilizing shareholders’ equity.

2005

2006

2007

2008

2009

●●Total Assets(100 millionyen)
（億円）
600

556

500

456

417
400

492

364

300

200

10002005

2006

2007

2008

2009

1,151

1,1802008

2009●●Number of Employees●●Transition of Dividend Per Shareyear-end dividend ■ 中間配当
mid-term dividend■ 期末配当(Yen)（円）
5050.0

50.0

25.0

25.0

25.0

0

1,000

1,076
9119452005

2006

800

25.0

600

400

2010

1,200

45.0

4030

50.0

(Persons)
（名）

20.0

2006

25.0

25.0

25.02007

2008

2009

20002007