The Asahi Way
The Asahi Holdings Group has established the Asahi Way as a set of values for all employees. The Asahi Way is made up of
Our Credo, Our Corporate Values, Our Employee Principles, and the Group Code of Conduct. The Asahi Way drives the Group’s
sustainable growth and improves corporate value over the medium to long term, and directors and management executives take thelead by serving as role models who put it into practice.

Our Purpose"Totally Committed to Protecting the Natural
Environment and Preserving Resources"

Our Credo

Our Employee Principles

We conserve limited natural resources,

Innovate and embrace challenges

preserve the global environment,

Put safety firstand contribute to the realization of a

Maintain high quality

sustainable world.

Promptly report (especially bad news)
Build trust and connection

Our Corporate Values

The Asahi Holdings Group Code of Conduct

Contents
About Asahi Holdings

Cooperation with stakeholders
We constantly seek to earn even greater trust fromshareholders, customers, business partners, employees,
and local communities as we work to preserve thenatural environment.

Corporate governance with a balance ofprotective and proactive measures
We boldly promote growth strategies and businessreform while securing transparency in decision-making
and properly managing risk.

No growth without profit
We realize long-term improvement of shareholder value
by ensuring the entire group grows and is profitable.

Trusted corporate brandWe aim to be widely recognized as an exemplary
corporate group and to build a brand that will be trusted
over many years.

Addressing diverse risks
We strive to minimize risks and avert disasters by taking
daily safety measures in workplaces and by constantly
working to prevent accidents.

Highly motivated employees
We promote work-life balance for employees andcontinuously improve working environments and conditions.

Strong sense of mission and high ethical standards
We strive to be an organization where employees takepride in their own work and executives maintain a strong
sense of mission and high ethical standards.

#1 We comply with all laws and regulations#2 We respect the dictates of social norms
and our own conscience#3 We treat everyone equally, regardless ofage, gender, nationality, race, religion,or other characteristics#4 We refrain from conducting any politicalor religious activities in the workplace#5 We treat customers with sincerity#6 We practice fair competition and optimal
decision-making when selecting
business partners#7 We respect the confidential information
obtained through our work and avoid
disclosing it externally#8 We refrain from providing or receiving
meals or gifts in pursuit of personal
benefit

Being a company of good people#9 We act for the greater good, not for
personal or affiliated parties’ gain

We value good employees over the long-term; ourvision of a "good employee" is a person who is not selfcentered and who contributes to mutual prosperity andthe development of the business.

#10 We focus on the actual sites, actual
things, and actual facts

I N TE G R AT E D R E P ORT 2021

Message from the CEO

ESG Initiatives………………………………………… 02

E ENVIRONMENTBusiness Activities and Value Provided

Environmental Initiatives of the Asahi Holdings Group…… 38

Business Strengths and Advantages

Environmental Management ……………………………… 40

Risks and Opportunities

Climate Change Prevention Initiatives…………… 41

Long-Term Vision
Review of Fiscal 2020 and the 8th

S SOCIETY

Medium-Term Business Plan

Initiatives for Responsible Precious Metals Management…… 42

The 9th Medium-Term Business Plan

History of the Asahi Holdings Group……………… 12
At a Glance………………………………………………………………………… 14
Strengths of the Asahi Holdings Group………… 15
Value Creation by the Asahi Holdings Group…… 16
Consolidated Financial / Non-Financial Highlights…… 18
Long-Term Vision and Medium-Term Business Plan…… 20
Overview of the 9th Medium-Term Business Plan…… 22
Asahi Holdings Business Portfolio
Precious Metals Business …………………………………… 24
Environmental Preservation Business ………… 30

Work-Life Balance and Diversity……………………… 44
Human Resource Development Initiatives……… 45
Social Engagement …………………………………………………… 46
G GOVERNANCE
Corporate Governance……………………………………………… 48
Compliance and Risk Management………………… 51
Officer Profiles……………………………………………………………… 53
Financial and Non-Financial Data………………… 54
Group Company Structure………………………………… 56

About the Group’s Logo
The Group’s logo uses a spiralshape as a motif to signify the
corporate stance in seeking"environmental preservation
through recycling," a mainfeature of its business; the logo
also indicates continuity andgrowth. The arrows pointing
upward and downward symbolize
Asahi Holdings as an advanced,
cutting-edge company. The threecolors of blue, red and green
each respectively signify "cleanwater and sky," "the energy ofpeople carrying out activities" and"beautiful nature and forests."

Corporate Group Overview / Share Information…… 57

Asahi Holdings Sustainability Policy……………… 36
Asahi Holdings Material Issues…………………………… 37

Editorial Policy
This report provides an overview of theactivities and operations of Asahi Holdings,
Inc., with a focus on the company’s measures
to address social issues through its businessactivities. It has been prepared as a way for
the Asahi Holdings Group to communicate
with a broad range of stakeholders andexplain the kind of value it is working tocreate. By presenting specific group activities
and initiatives, the report also serves as acompany profile.

Report Period
April 1, 2020 to March 31, 2021
Scope
In principle, this report covers the entire Asahi
Holdings Group, including Asahi Holdings,
Inc. and its consolidated subsidiaries.

Numbers and Graphs
The figures shown here are rounded to
the nearest hundred million yen. Due tothis rounding, totals may not agree withthe constituent figures shown. The Group
adopted the International Financial ReportingStandards (IFRS) in fiscal 2016, and eachreporting item name basically follows the
IFRS guidelines. The financial figures forfiscal 2015 are also shown based on IFRS.

Note on Future Prospects
In addition to past and current facts about
the Group, this report includes forecasts
based on strategies, outlooks, and businessplans. These forecasts were created based on
information available at the time of writing.
Therefore, it is important to note that actual
performance and results may differ greatly
from any forecasts presented here, anddepend to a large extent on future changes inthe business environment.

ASAHI HOLDINGS

01

Message from the CEO
Message fromthe CEO

Connecting Society to theEnvironment and Supporting theCreation of a Circular Economy
Asahi Holdings has two mainstay businesses: Precious Metals (precious metals
recycling and precious metals refining), and Environmental Preservation. We havecontinued to grow based on our strengths of customer-oriented sales and originaltechnology and expertise, and we have carried out scrap-and-build initiatives within
our business in anticipation of market changes.
Furthermore, to help secure the future of humankind, I believe that Asahi
Holdings must be a leader in creating a circular economy that connects society to
the environment. Through our founding business of precious metals recycling, we
promote the reuse of valuable resources. The role of our business is similar to that ofveins in the human circulatory system, which transport blood back to the heart. In theprocess of forming a recycling-based society, we would like to be a leading promoterof cooperation between the "arteries and veins" of the resource circulating system. At
the same time we want to enhance economic and social value.
Our precious metals refining business in North America is expected to grow overthe medium-term. Our strategy is to use precious metals refining as a platform while
diversifying revenue sources by developing various other businesses such as theminting of gold and silver coins, carbon treatment for mineral processing, and various
financial services. This approach has been making significant contributions to ourconsolidated business results. Our long-term vision is to deploy this North Americanmodel in other regions of the world and expand our business globally.
In fiscal 2020, the final year of our 8th Medium-Term Business Plan, we set a new
profit record, even while the world was in the grip of the COVID-19 pandemic. Looking
back over the entire three-year period of the plan, the withdrawal from our existing
business (scrapping) and the entry into new business areas (building) were effectively
executed. We were able to achieve growth in terms of business performance while also
strengthening the business foundation.
With the 9th Medium-Term Business Plan, which took effect in April 2021, we haveretained the slogan of "Building a global company that pursues originality and growth."
We will continue to work on innovating and embracing challenges, and creatingsocial impact while executing growth strategies. At the same time, we intend to reap
the benefits of our HR system and corporate governance reforms, while making ourmanagement foundation stronger and more sustainable.
September 2021

Tomoya Higashiura

Representative Director, President & CEO

02

I N TE G R AT E D R E P ORT 2021

ASAHI HOLDINGS

03

Engaged in the Precious Metals andEnvironmental Preservation Businesses
Our business activities consists of two mainstays: Precious
Metals and Environmental Preservation.
The first mainstay, the Precious Metals Business, is divided
into two areas, precious metals recycling and precious metals
refining. Precious metals recycling involves recovering gold,
silver, palladium, and platinum from scrap material and recycling
them into high-purity bullion. This is mainly carried out in Japan,
South Korea, and Malaysia. We support a wide range of fields
such as electronics, catalysts, dentistry, and jewelry, by making
full use of our cutting-edge technology and decades of experienceand expertise. Asahi Holdings is highly competitive due to its
ability to efficiently recycle raw materials using optimal methods,
whatever the format or properties may be. We have secured topclass shares in every market we enter.
As for precious metals refining, we receive gold and silver
raw materials from mining companies and the jewelry industry.
Similar to precious metals recycling, the operation involves
refining gold and silver into very pure forms that can be LBMA(*)certified and sold on the global market. This operation is being
developed in North America. We are also creating various highvalue-added businesses based on the refining business.
(*) LBMA: London Bullion Market Association

In our second mainstay, the Environmental Preservation
Business, Asahi Holdings has processing facilities and equipment
suited for a wide range of industrial fields. We also have thelargest sales team of any company of our kind in Japan, to help
customers properly dispose of and recycle waste. Moreover,
we have obtained industrial waste collection and transportation
permits all across Japan, from Hokkaido to Okinawa, and we are
expanding our business in all regions of the country.
Asahi Holdings was founded as a company engaged in therecycling of silver from photographic fixing solutions and thedetoxification of photographic effluents. Our two businessmainstays today can be seen as logical extensions of those initialactivities.

04

I N TE G R AT E D R E P ORT 2021

Helping to Build a Circular Economy
Through our business activities, we are directly involved in thecreation of value for the economy and society.
Precious metals recycling contributes to the reuse of
precious metals, which are valuable and rare resources,
and it represents a basic measure to help achieve a circular
economy. Originally, this kind of recycling was dictated by the
economic necessity to recover and reuse a very expensive
resource. Recycled precious metals are favored for their low
carbon footprint and minimal supply chain risk. In our precious
metals refining business in North America, we are actively
conducting transactions with major jewelry dealers andpromoting recycling.
The movement toward a circular economy is also having a
big impact on our Environmental Preservation Business, which
involves the proper disposal of industrial waste. Our facilities
recycle waste such as fuel oil, wood, glass, fire-proof bricks,
and organic residue. We are also partnering with outstanding
providers across Japan to promote all kinds of recycling
and to devise optimal collection and transportation routes,
which helps reduce CO2 emissions. There are now increasing
opportunities to collaborate with chemical and material
manufacturers as well as large-scale recyclers, including
those outside of the recycling industry. Such partnerships canhelp build networks for more efficient resource circulation.
When comparing resource distribution to the human
circulatory system, most of our business activities serve afunction similar to veins. Blood is pumped through arteries
to every part of the body before returning back to the heart
through veins. In this system, the role of veins to collectvaluable blood and route it back into circulation. By actively
working to bring resources delivered through transport
arteries to be returned through recovery "veins," the value we
provide to society is steadily growing.

Business Strengths and Advantages

Message fromthe CEO

Business Activities and Value Provided

Promoting Business Reform with an Emphasis on Speed

Major Business Expansions

Photographic
materials

1952

Malaysia

1994

Hard drive
magnetic
material

1999

LCD
indium2000

PDP

Shanghai

2003

2003

South
Korea

2006

Precisioncleaning

2011

Scrap & Build

Major Business Withdrawals

2011

Hard drive
magnetic material

2013
PDP

E-scrap

Taiwan

L&H*

2011

2013

2014

2017

LCD
indium2018

2018

ShanghaiTaiwanRefining
in NorthAmerica

2015

2018

Photographic
materials

Minting /carbon treatment
in North America

2019

2020
L&H*

* Life & Health Business segment

Quickly Responding to Market Changes with
Scrap and Build
Under the Asahi Way, which defines the values our employees share, we
uphold the principles of "No growth without profit" and "Innovate andembrace challenges." With these concepts in mind, Asahi Holdings has
been continually tracking changes in the market and society. By also
anticipating coming changes and taking a "scrap and build" approach to ourbusiness, we have been promoting our own transformation and the creationof new value. Our history is one of achieving results through practicalapplication, rather than simply talking about a particular philosophy.
When Sony announced its intention to develop digital cameras in 1981,
Asahi Holdings was completely focused on the photographic materials
business. Soon after Sony made this announcement, we began successfully
establishing new business areas dealing with precious metals otherthan silver (i.e., gold, palladium, platinum, and rhodium). Materials wereobtained from the dental field, as well as from the electronics, jewelry,and catalyst industries. Our share of the Japanese market for precious
metals recycling has now grown from 40% to 70% in all these fields, andthis serves as the basis of our stable business performance. Outside Japan,
we have entered other Asian markets for precious metals recycling. By
modeling these activities on our operations in Japan, we have achieved
steady returns.
In 2015, we launched our precious metals refining business in North
America, using a business model different from our precious metals
recycling business in Japan and Asia. Asahi Holdings acquired North
American gold and silver refining operations in Utah and Ontario fromJohnson Matthey of the UK. Then in 2019, we acquired the refining assets
of Republic Metals Corporation in Florida, along with some of its otherbusiness assets for minting and carbon treatment, thereby expanding ourbusiness operations in North America.
In the Environmental Preservation Business, the consent of local
residents is necessary before a company can get a permit to begin waste
disposal. To shorten the time required to start disposal operations, Asahi
Holdings has been using a corporate acquisition strategy since 2000. We
now have more than 20 companies under our corporate umbrella, including
waste processing facilities for a wide variety of industrial fields, and have
expanded the range of materials we handle.
While expanding our business in this way, we have also withdrawn fromcertain business areas. These exits were carried out promptly without
hesitation once we determined they were no longer viable, based mainly
on criteria such as profitability, growth potential, and synergy. In 2018, wecompletely withdrew from the photographic materials business, which
we had maintained since our founding. In the same year, our sites inShanghai and Taiwan were eliminated. In 2020, we transferred Fuji Medical
Instruments Mfg. Co., Ltd. to a Taiwanese company and discontinued the Life
& Health Business segment. It should be noted that these withdrawals were

initiated and completed while each business concerned remained profitable.
Through this process of business scrapping and building, Asahi Holdings
has continued to grow and become steadily more profitable.

Technical Capabilities, IT Utilization, andCustomer-Orientation Are Our Strengths
The process in our precious metals recycling business begins with avisit by our full-time sales employees to a new customer. After getting
a complete picture of their needs, we collect the raw materials andtransport it to our own facility. There we recover the precious metals
with high efficiency using our advanced technology and expertise. Our
well-trained sales staff make good use of the technology and expertisethat our factories have developed to realize highly customer-focusedsales activities while maintaining close relationships with customers.
Because of these combined strengths, we believe our services are
unrivaled by other companies.
All our salespeople carry digital devices to provide customers withreal-time information such as precious metals prices. During actual
transactions, information related to the transfer of materials is input
electronically, and the data is used for factory activities and precious
metals price hedging. Moreover, electronic "passbook" records are kept
for each dental clinic and laboratory customer concerning the precious
metals they supply in the form of raw materials for recycling. For a
decade, we have been providing a unique service called "Asahi Metal
Account" that allows customers to check balances on their computersor smartphones and initiate a sale at any time.
In our Environmental Preservation Business, incineration processing
forms the physical foundation of this activity, and we are expanding
this capacity each year. While some companies may have the same or
greater capacity than Asahi Holdings, our sales staff numbers morethan 150 people located all across Japan. Rather than searching forcustomers to meet our own facility capacity, we approach our businessactivities by first ascertaining the needs of each business entity thatemits waste and its issue awareness levels.
Rather than relying solely on our own facilities, we make full use of
the waste collection and transportation permits obtained from all the
relevant local governments in Japan. This enables us to provide optimal
solutions for safety, speed, cost reduction, and CO2 reduction issues. In
order to provide this kind of one-stop consulting-based service, Asahi
Holdings needs to understand more than just its own facilities andwaste collection and transportation network. It needs to also have manystrong partnerships with providers outside its corporate group, while
being familiar with the industrial waste processing resources that exist
across Japan. We pride ourselves on the fact that our Environmental
Preservation Business is highly knowledge-based in this way. This is aunique strength that our competitors lack.
ASAHI HOLDINGS

05

markets we have attained substantial shares of around 40%. Meanwhile,environmental preservation in Japan remains a huge market of over5 trillion yen, which is larger than the marine transport, courier ortaxi markets. Most of the market participants, which number around
100,000, are small or medium-sized, and a large dominant leader has
yet to emerge. Although we are one of the largest participants in thisindustry, our revenue in the Environmental Preservation Business is still
only about 20 billion yen, so our market share is minimal. This means
there is a lot of room for growth. We are confident that we will continue
to grow by expanding market share over the long term. As a leading
brand in the industrial waste industry, we will fully utilize our strengths
in offering superior solutions and reliability.

Risks and Opportunities

Maintaining Strong Growth Through Global
Expansion of the Precious Metals Business
The operations of Asahi Holdings, including precious metals
recycling, have long been focused on Japan. However, if we wereto stay mainly in Japan, our growth prospects would be limited.
Based on this logic, we have begun to expand into Asia and North
America in order to sustain our growth.
All our businesses outside Japan are currently profitable,
and the operating margins are comparable to our businesses
in Japan. In fiscal 2020, our overseas precious metals earnings
accounted for over 20% of our total profits for this businesssegment.
Countries outside Japan represent vast untapped markets
for us. One example is India. Indian culture has long placedemphasis on storing wealth in the form of gold products. In fact,global demand for precious metals is diverse and stable at highlevels. This includes demand for currency alternatives, jewelry
and luxury items, as well as electronics-related demand for highconductivity applications. This means that further expansion of
our Precious Metals Business outside Japan is highly likely tolead to business growth and stability. As countries worldwide shift
to a circular economy, the precious metals industry will play anincreasingly important role, as recyclers of rare resources. It issafe to say that business opportunities for Asahi Holdings will befound all over the globe.

The Key to Developing the Environmental
Preservation Business Lies in Cooperation Between
the "Arteries and Veins" of Resource Circulation

I N TE G R AT E D R E P ORT 2021

Certain market changes caused by technological innovation

Opportunities

06

Identified Risks and Opportunities

Risks

Although the size of the industrial waste market is huge, there is nocompany that has a dominant market share. The challenge is how to
expand our market share. With the complex laws and regulations in thismarket, all industrial waste facilities and processing need to be licensed.
While barriers to market entry are high, thereby deterring outsiders,
existing players still face time-consuming work to comply with laws andregulations and obtain permits, even when expanding their businesses.
Meanwhile, as part of Japan's national policy for achieving carbon
neutrality, in 2021 the Bill for the Act on Promotion of Resource
Circulation for Plastics was submitted to the 204th ordinary Diet
session and passed in 2021. With this development, there will be morederegulation of activities aimed at recycling waste such as plastics.

While the Japanese government is considering providing incentives forrecycling, "arterial" companies in the resource circulation system, suchas the chemical industry, are moving to develop chemical recyclingof used plastics using technologies such as gasification, oiling, andmonomerization. As a "venous" company in the system, such moves
could pose challenges for us.
On the other hand, some feel the arterial industry will put pressure
on the venous industry, and we are confident that business opportunities
will expand. We are able to collect used plastics from various plastic
emitters, ranging from manufacturing to distribution companies. Then
we can properly sort them into recyclable and non-recyclable materials,
perform the necessary pretreatment, and distribute the recyclable raw
materials to chemical factories. This is probably not a business activity
that chemical plants can perform on their own.
Going forward, the key to creating a carbon-neutral society
will be cooperation between the arterial and venous sides of theresource circulation system. Asahi Holdings has always operated its
Environmental Preservation Business as a solutions service based on ahigh degree of knowledge, and it has never relied solely on the capacityof its own facilities. We are definitely a unique organization that can playa key role in helping to coordinate this system.
Moreover, Japanese companies that only do specific waste processing
for a certain industry will find it difficult to expand into markets outside
Japan that have different laws, regulations and business practices.
However, since Asahi Holdings has already accumulated the necessary
expertise through proper waste processing and recycling managementin the wider industrial waste market, we believe we have the essential
intangible assets to operate our business from a leadership positionin and outside Japan. Accordingly, we are looking into expand into
Southeast Asia.

(decrease in catalyst volume driven by the shift to EVs, etc.)
Shrinkage of the dental market (decrease in demand for metal dental work)

Lower waste emissions
Lower jewelry demandLess movement of people due to IT advancements
Market stagnation due to the aging of society
Market changes due to technological innovation(more types of items being traded, etc.)

Greater opportunities for expansion into other regions such as
Southeast Asia due to growing awareness of environmental,social and governance issues
Responding to society's needs to deal with population aging
Advancing into outer space (recycling resources in space)Long-Term Vision

Precious Metals Refining Business in North
America Largest in the WorldIn North America, Asahi Holdings has one of the world's fivelargest precious metals refiners, and our business is the world's
largest when both our plants in Utah and Ontario are combined.
In Japan, mining companies often own refining facilities. In
Europe and North America, however, mining and refining
companies are usually independent of each other and areseparate in terms of capital. It can be compared to operating arice farm and a rice mill separately. Making the refining sector ashared service for the industry is considered to be preferable interms of economic and energy-use efficiency. The CO2 emissionsof the refining business itself are almost zero, and most of
the energy used in the refining business of Asahi Holdings ishydroelectric power.
Asahi Holdings believes that precious metals refining willcontinue to be needed as long as these metals are essential toindustry, society and consumers. Based on this, we began toacquire our current North American operations in 2015. Thislarge-scale acquisition outside Japan represented an entirely
new venture for the company.

Message fromthe CEO

Going forward, we intend to expand our Environmental Preservation
Business over the long term, in terms of both facility and consulting
capacity. Moreover, under the 9th Medium-Term Business Plan, we havealready launched a project to provide services through a digital platform.
This will allow customers to select waste processing methods as wellas collection and transportation routes to maximize recycling volume
and CO2 emissions reduction. We are also looking into developing ourEnvironmental Preservation Business in Southeast Asia, which would
make the most of our existing technological capabilities and expertise.
Market share is also important to Asahi Holdings. In fiscal 2020,
we expanded shares in all of our precious metals recycling markets,
namely, dentistry, jewelry, electronics, and catalysts. In the dental
market, we have gained a share of nearly 70%, and in each of the otherefforts have been implemented in North America. Green gold isalso a downstream business.
An example of an upstream business is carbon treatment.
Activated carbon used by mining companies as an adsorbent
during mineral processing contains valuable precious metals,
as well as harmful substances such as mercury. We purchaselarge quantities of activated carbon from our business partners,
remove the mercury, and then recover the remaining precious
metals.
Another example is the growing financial services we areoffering in North America. A basic refining transaction involves
accepting raw material from a business partner, refining it into
high-purity bullion within a contract period of about one week,
and then returning it to the business partner. However, due tocash flow or other circumstances at a business partner, we may
be asked to immediately provide refined material as an "advancedelivery" when we accept raw material. We are actively working

Diversifying Revenue Sources While
Maintaining the Refining Business as a
Platform Has Yielded Benefits
Our management philosophy is "No growth without profit,"
and the company was built on the approach of turning every
challenge into an opportunity. The company's financial
performance suffered immediately after the North Americanbusiness acquisition. Faced with such a harsh reality, we had totry to diversify our revenue sources using the refining businessas a platform, and we made a brave and decisive effort as acompany. In fiscal 2017, our North American business turneda profit, and acquisition of a competitor’s assets in fiscal 2019
also gave us momentum, resulting in a remarkable increase inperformance in recent years.
Here are some examples of what we could not have done
without huge refining capabilities, and how we were able tointernalize profit-generating opportunities in all value chainsthrough the refining business. One example is the “minting”
business, which processes refined precious metals into coins
and metal bars. The bullion refined at our Utah plant is thenturned into coins and bars through a high precision process at
the Florida plant. This adds value to the gold and silver whenoffered for sale. It is a downstream business since it delivers
industrial bullion to the general consumer market.
Another example is the "green gold" business. "Green"means the business does not harm the global environment,does not rely on child or forced labor, and does not fund any
armed conflicts. In other words, the gold is produced in a waythat does not harm the environment or infringe upon humanrights. A premium can be charged for gold bullion and otherproducts made from raw materials that can be guaranteed to
be green. In our precious metals recycling in Japan, we havealready established a high level of traceability and a customer
survey system. We are supplying green gold to major jewelry
manufacturers, which helps enhance our profitability. Similar
ASAHI HOLDINGS

07

Pandemic Had Little Negative Impact on
Business Performance

Deploying the "North American Model"
Elsewhere over the Long Term
As a medium-term growth strategy, Asahi Holdings plans to
expand its precious metals refining business in North America
in two directions, one of which is further diversification ofrevenue sources. With the precious metals refining businessas a platform, we then added financial service and minting
businesses, and they contributed significantly to the fiscal
2020 financial results. Going forward, we will further enhance
the profitability of our North American business by expanding
carbon treatment transactions and launching a precious metals
warehousing business.
The other direction is business model deployment worldwide.
We would like to replicate our North American model, which
offers many high-profit services in addition to refining, in otherparts of the world. Specifically, we intend to expand acrossEurope and to South Asia, mainly India.
We believe that corporate acquisitions in the target regions
can effectively accelerate these initiatives. Meanwhile, we areplanning to launch a minting business in Japan. By combining
our minting expertise, which enabled us to expand rapidly inNorth America, with the green gold production capacity wehave built up in Japan, Asahi Holdings can deliver an extremely
unique business offering a high degree of added value. We aregoing to make this happen patiently and steadily.

Establishing a New Business Model for the North American Refining Business

Expanding all value chains upstream, midstream, and downstream, using the core refining business as a platform

Advancedeliveryfinancing

Structured
finance

Trading

The COVID-19 pandemic began in 2020, took many lives, and has
resulted in a great deal of hardship for people worldwide. Despite
the challenging circumstances and with the help of our dedicatedemployees, we were able to maintain non-stop operation of ourPrecious Metals and Environmental Preservation Businesses. By
continuing to meet the needs of industry and society in this way, Asahi
Holdings has been fulfilling its corporate mission.
For example, our incinerators in Kyushu have met the needs
and maintained the trust of medical institutions and government
agencies by treating large quantities of medical waste generated in
the fight against COVID-19. In addition, as so many more people are
now teleworking, as well as shopping and enjoying video and music
content online, the need to collect precious metals used in circuitboards, connectors, and crystal oscillators has risen sharply along withincreased production of related devices such as servers, computers,
and smartphones. Asahi Holdings has responded by operating its
facilities in Japan at full capacity.
Furthermore, due to recommendations to stay at home, many people
having been organizing their living spaces and taking the opportunity
to dispose of unwanted jewelry stored away for years. Consequently,
precious metals collection requests have increased from businesses
that purchase old jewelry from consumers, and the amount of jewelry
scrap we are handling has reached a record high. Throughout the year,
our business grew both in and outside Japan, driving consolidated
financial results for fiscal 2020 to an all-time high.

Message fromthe CEO

Review of Fiscal 2020 andthe 8th Medium-Term Business Plan

to provide this service. Advance delivery is the same as lending,and it can provide stable interest income. At the same time,
the raw materials that have been delivered contain gold andsilver. Since the content analysis and price hedging are carefully
performed, and since the loan amount is made within a predetermined range, the lending activity poses no risk of default.
As a result of the various efforts described above, our precious
metals refining business in North America not only moved into
the black, but also developed into a highly profitable business,
which has now become a pillar of the Group's growth strategy.

improve its business performance while actively promoting scrap
and build initiatives. The Life & Health Business was discontinued
at the end of 2019, and we have since been able to sell all threecompanies from that segment.
Meanwhile, we not only expanded our North American business,but also implemented dynamic measures in each business area inJapan. In the Environmental Preservation Business, we completed
the construction of three new incinerators and devised a plan
to add two more. In the area of precious metals recycling, we
completed a new electronics-related facility in Kyushu and began
construction of a large highly efficient facility in the Kanto region
that will be equipped with IoT and robotic technologies.
The refining equipment updating project at the Utah plant isbehind schedule. We were planning a large-scale upgrade using
IoT and robots, but due to the pandemic, the completion of thisproject has been integrated into the 9th Medium-Term Business
Plan. To give ourselves an overall grade on our execution of the
8th Medium-Term Business Plan, we would say Asahi Holdings
scored a 90 out of 100.

8th Medium-Term Business Plan Performance:“90 out of 100”
Over the three years covered by the 8th Medium-Term Business
Plan, including fiscal 2020, Asahi Holdings was able to steadily

Precious
metalswarehousing

Business Results for Fiscal 2020

Customer
asset utilization

Carbontreatment

Upstream08

I N TE G R AT E D R E P ORT 2021

Refining
business

Mintedproducts

Downstream

Green gold

In our Precious Metals Business segment, revenue andoperating profit for the recycling area in Japan as wellas in South Korea and Malaysia increased year-onyear. This was due to higher precious metals prices andlarger shares in all markets. Moreover, revenue andoperating profit in the precious metals refining area inNorth America also rose year-on-year. This was due to asignificant expansion of product processing and sales aswell as financial transactions.
In our Environmental Preservation Business, industrial
production activities shifted to a recovery phase after
stagnation caused by the pandemic. Revenue in thissegment fell 3.6% year-on-year due to an overall drop
in industrial waste emissions. However, operating
profit remained at the same level as in the same periodof the previous year. We achieved this by maintaining
the operating rate of our own facilities and raising theprocessing unit price. Nevertheless, we recorded losseson the disposal and sale of unnecessary equipment.
As a result of the conditions described above, thebusiness results for fiscal 2020 (April 1, 2020 to March
31, 2021) were as follows: revenue was 164,776 million
yen (increase of 29,213 million yen, or 21.5%, year-onyear), operating profit was 25,126 million yen (increase
7,115 million yen, or 39.5%), profit before tax was 26,136
million yen (increase of 8,486 million yen, or 48.1%),
profit was 25,725 million yen (increase of 15,879 million
yen, or 161.3%), and profit attributable to owners ofparent was 25,725 million yen (increase of 15,879 million
yen, or 161.3%). All of these figures were record highs.
Looking at revenue by segment, the Precious Metals
Business earned 144,795 million yen (increase of
31,039 million yen, or 27.3%), while the Environmental
Preservation Business recorded 19,981 million yen(decrease of 735 million yen, or 3.6%).

ASAHI HOLDINGS

09

Building a Global Company That Pursues
Originality and Growth
We are implementing our 9th Medium-Term Business Plan from
April 2021 to March 2024. Under the slogan of "Building a global
company that pursues originality and growth," the plan's basic
policies are: (1) reinforce the foundation for global growth; (2)promote new human resources policies; (3) strengthen Grouprisk management, and (4) contribute to the SDGs.

Enhancing Profitability and Growth Potential byStrengthening CompetitivenessOur precious metals recycling business has secured large sharesin each market and is producing steady profits. However, inorder to further increase cost competitiveness, Asahi Holdings
will complete a new comprehensive plant for precious metals
recycling in Ibaraki Prefecture to further strengthen the businessfoundation in Japan.
In North America, Asahi Holdings will update aging refining
equipment to improve the profitability of related businesses. At
the same time, we will prepare for expansion from North America
to Europe and South Asia, and will establish systems that can be
implemented at new sites whenever necessary.
In the Environmental Preservation Business, we installed
three new incinerators during the 8th Medium-Term Business
Plan, and will install two more during the 9th and 10th MediumTerm Business Plans. One of them will be built in the Kanto
region of Japan. Moreover, while undertaking digitalization to
improve business efficiency and green measures to promotedecarbonization, we will improve profitability and growth throughboth industrial waste processing and management.

Ensuring Compensation Based on Performance andCapabilities While Promoting Employee Diversity
Our employees have always been paid based on performanceand capabilities. Under the 9th Plan, these efforts will become
even more thorough. We will carefully adjust each person's
remuneration so that it fully reflects their achievements andabilities, while promoting HR activities that place the most suitable
individuals in key positions regardless of their age or history withthe company.
Since Asahi Holdings has historically recruited more midcareer hires than new graduates, we have many employees withdiverse backgrounds. Whenever a new organization joins the Groupthrough a corporate acquisition, conflicts based on differencesin organizational culture are very rare. The employee diversity
at Asahi Holdings makes the cost of new company integration
extremely low. Given that individual performance and capabilities
are the basis of compensation and promotion, there is also noneed for individuals to employ the political clout of their baseorganizations, and factions are virtually non-existent.
Under the 9th Medium-Term Business Plan, we will strengthen
diversity and inclusion, with particular emphasis on supporting
the advancement of women in the workforce. There is no denyingthat our workforce is predominantly male. Responding to social
conventions influenced by historical gender bias, women havetended to be excluded from work that is considered dangerous.
The company has also refrained from assigning women to its
sales department, as sales representatives sometimes haveto visit customers who handle hazardous chemicals. However,
we recognize the importance of providing equal employment
opportunities to women and so are now seeking to reform theindustry’s male-dominant culture by actively hiring and assigning
women to sales positions. Over the years, men and women havebeen employed equally in workplaces where there are none of
the aforementioned cultural health concerns. For example, wehave almost achieved employee gender balance at our TechnicalResearch Center in Kobe. Since personnel are paid based on
performance and capabilities, there is no difference between men
and women in terms of compensation and speed of promotion.

Reforming the Board of Directors andStrengthening Risk Management
The Board of Directors is being gradually reformed to increase
management agility. For the re-election of directors at theAnnual General Meeting of Shareholders in June 2021, thenumber of candidates for directors was seven, and the board
became smaller, with one less member than the previous fiscal
year. In addition, new members with extensive experience in themarketing field have been added as outside directors. This has
further diversified the board, and the membership majority now
comprises independent outside directors.
Through this new Board of Directors, the aim is to balance thefunctions of both risk taking and risk minimization in an efficientway. We hope that this will lead to corporate governance witha balance of protective and proactive measures in line with the
Asahi Way.
A Group Risk Management Department was established on
April 1, 2021. It will promote compliance risk management for theentire Group, including operations outside Japan. In particular,
we will enhance credit risk management concerning our business
partners in the fast-growing North American refining business.
Moreover, Asahi Holdings will thoroughly implement “Responsible
Precious Metals Management” and strive to increase the value ofthe “Asahi brand.” This will be done by providing precious metals
products while also protecting human rights and the environment.

Continuing to Provide Stable Shareholder Returns
We regard the return of profits to shareholders as an importantmanagement mission, and we continue to focus on shareholder

10

I N TE G R AT E D R E P ORT 2021

dividends. We have always endeavored to pay stable dividends
even when the company has been unprofitable. This basic policy
remains unchanged.
Under the 9th Medium-Term Business Plan, we will makecapital investment for future growth, and increase the internal
reserves necessary for M&A activities. At the same time, we will
ensure stable shareholder returns without lowering the current
level of annual dividends, with the intention to maintain a payout
ratio of 40%.

Increasing Both the Economic and Social Valueof Asahi Holdings
In order to help achieve carbon neutrality by 2050 and promote
the necessary decarbonization measures, our activities over the

next decade will be critical. Industry is increasingly aware of
the importance of cooperation between the arterial and venous
sides of the resource circulation system. This will lead to moreresource recycling and greater reductions in CO2 emissions.
We intend to be a leader in the circular economy that connects
society to the environment.
Since humanity needs to achieve the SDGs to help ensure
its own survival, corporations are being asked to assume moresocial responsibility in the capitalist system. Asahi Holdings will
strive to deliver both economic and social value by making themost of our core business activities. We will do all we can tohelp build a sustainable world.
I would like to ask all of our investors for their continued
support.

Message fromthe CEO

9th Medium-Term Business Plan

Financial and Capital Policies

1. Expansion of equity capital and diversification of financing
In order to secure the stable funds required to globally expand our financial business, including trading basedon the refining business in North America, we will expand our equity capital and maintain financial soundness.

2. Strengthening relationships with existing lenders
To further strengthen relationships with our current lenders in Japan including megabanks, we will share withthem our medium- and long-term business strategies and the financial strategy necessary to support them.

3. Realization of direct financeTo reduce our dependence on indirect financing, we aim to obtain direct financing through means such as theissuance of corporate bonds and commercial paper. With the goal of securing high scores from external rating
agencies, we will work to significantly improve our financial position and indicators.

4. Utilization of policy loans
We will actively utilize policy loans provided by government-affiliated financial institutions in order to securestable long-term business funding.

5. Global centralization of funds and precious metals procurement, etc.
In the Precious Metals Business, we will shift to centralized management of funds and precious metals
procurement with the aim of reducing procurement costs on a global basis. At the same time, we will maximize
profits from arbitrage and hedge transactions by performing trading activities at a global level.

6. Dividend policy
While striving to enhance internal reserves for executing M&A activities along with capital investment for future
growth, we will strive to maintain steady dividends with a payout ratio of 40%, continue to pay annual dividends,
and maintain them at current levels.
Equipment Investment Plan

Shareholder Returns(Unit: billion yen)

FY
2021

FY
2022

FY
2023

Precious Metals
Business

6.3

3.2

3.4

12.9

Japan

4.7

1.9

0.9

7.5

Outside
Japan

1.6

1.3

2.5

5.4

Environmental
Preservation Business

0.8

2.2

6.8

9.8

Total

7.1

5.4

10.2

22.7

The 8th Medium-TermBusiness Plan

Total

FY
2016
Earnings
per Share (yen)*

FY
2017

FY
2018

-18.62 135.39 114.07

FY
2019

The 9thMedium-TermBusiness Plan

FY
2020

(Forecast)125.12 326.90

231.27

FY2021

AnnualDividend (yen)*

30

31.5

60

65

85

90

Dividend
Payout Ratio (%)

-

23.3

52.6

52.0

26.0

38.9

* Earnings per share and annual dividends through fiscal 2020 are adjusted to reflect
the two-for-one stock split of common stock on April 1, 2021.

ASAHI HOLDINGS

11

History of the Asahi Holdings GroupOur 69-year history is one of innovation and challenge. Over that time, we have developed into a global corporate group and continue to grow today.
Asahi Chemical Laboratory founded in Joto-ku, Osaka City

1964

Becomes kabushiki gaisha (stock-based company)

1974

Fukuoka sales office opens. Sales offices start to beestablished across Japan

1978

1999

Initial public stock offering made on over-the-		
counter market

2012

The Asahi Way established
Selected for inclusion in an ESG index by the Tokyo Stock Exchange

2000

Listed on the 2nd Section of the Tokyo Stock 		Exchange

2015

Head Office building completed in Higashi-Nada-ku,
Kobe City

2002

Promoted to the 1st Section of the Tokyo Stock 		Exchange

Company with an Audit and Supervisory Committee
system adopted
Nominating and Compensation Committees Established

1997

Name changed to Asahi Pretec Corp.

2009

Asahi Holdings, Inc. established

1998

Headquarters operations transferred to Chuo-ku, 		Kobe City
Technical Research Center opens in Nishi-ku, Kobe City

Act 1

s
l
a
t
e
M
s
u
o
i
c
e
r
P

n
o
i
t
a
v
r
e
s
e
r
P
l
a
t
n
e
m
n
o
r
i
v
n
E

Performance-based stock-option system introduced

2016

International Financial Reporting Standards (IFRS) adopted

2017

Capital increased through new share issue

2018

The Asahi Way thoroughly revised

Act 2Foundation and Initial Decades: 1952 to 1998

Act 3

Public Company: 1999 to 20112003

Automobile catalyst business launched

2006

Asahi Pretec Korea Co., Ltd. established2011

E-scrap business launched
Precision cleaning business launched

i
h
a
s
Ap
eu
ho
r
t
G
f
os
g
yn
r
i
od
t
l
s
o
i
H
H

1952

New Development: 2012 to Present

1952

Silver recycling business starts using photographic
fixing solutions

2015

US and Canadian gold and silver refining 		subsidiaries acquired from Johnson Matthey (UK),and Asahi Refining USA Inc. and Asahi Refining 		Canada Ltd. established

1975

Compact electrolytic silver collection equipment 		
"PLATA" developed

1982

Precious metals recycling businesslaunched in the dental field2019

Asahi Refining Florida LLC established

1984

Precious metals recycling businesslaunched in the plating solution field

1986

Precious metals recycling businesslaunched in the electronics 		
components and jewelry fields

2017

Nihon Chemitech Co., Ltd. and Ecomax Co., Ltd. 		
integrated into Japan Waste Corporation

Compact electrolytic gold collection
equipment "ZIPANG" developed

2020

Asahi Pretec Corp. and Japan Waste Corporation
integrate environmental preservation businesses

Group Strengths Built
Across the Years
Ability to Adapt to ChangeManagement Capabilities for
Business Regeneration

1994

ASAHI G&S SDN. BHD. established in Malaysia

1972

2004

Nihon Chemitech Co., Ltd. acquired

Equipment for detoxification of photographic 		
effluents installed at the Kobe Plant

2007

Taiyo Chemical Co., Ltd. acquired

1975

Industrial waste disposal license acquired 		from Kobe City (detoxification of photographic 		
effluent containing harmful substances)

2007

Kitakyushu Office of Asahi Pretec Corp. opened

2008Japan Waste Corporation establishedFuji Rozai Co., Ltd. acquired2009

JW Glass Recycling Co., Ltd. acquired2010

Yokohama Office of Japan Waste Corporation opened
Ecomax Co., Ltd. acquired

1978

Registered as an environmental measurement 		
certification office

1990

Environmental preservation 		business other than photographic
effluents entered

Industry-Leading Unique
Technologies
Trusted Asahi Brand
Highly Motivated Employees
Globally Expanding Network
Good Relationships with
Stakeholders
Substantial Market ShareBusiness Performance(billion yen)(billion yen)

180
160
140
e
u
n
e
v
e
R

120
100
80

Operating Profit

22.5
20.0
17.5
15.0
12.5
10.0

60

7.5

40

5.0

20

2.5

0

12

25.0

CYCLICAL GROW TH

Revenue

1964

1980

1981

I N TE G R AT E D R E P ORT 2021

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

t
i
f
o
r
P
g
n
i
t
a
r
e
p
O

200

0
(FY)

ASAHI HOLDINGS

13

At a Glance

Asahi Holdings Strengths
Strengths (Value-creation drivers)
Environmental
Preservation
Business

12.1%(19,981 million yen)
Revenue by
Business Segment

We are engaged in both Precious Metals and Environmental Preservation
businesses based on our purpose of being "Totally Committed toProtecting the Natural Environment and Preserving Resources." We aim
to maximize the growth of both these business areas by practicing efficientmanagement and leveraging synergies.

Precious
MetalsBusiness

164,776 million yen

87.9 %(A year-on-yearincrease of 21.5%)(144,795 million yen)

Our First Business

World-Class Refining Scale

Precious Metals Recycling

North American Refining

Our business began with the recycling of silver contained inphotographic materials. Today, we recycle scrap produced byvarious sectors such as the electronics industry and dentistry into
high-purity precious metals. For more than half a century, we havebeen providing precious metals produced through recycling, while
continually adapting to the changing times.

In North America, our refining operations raise the purity of
raw gold and silver received mainly from mining companies.
We are also using the refining business as a platform todiversify our revenue sources.

87,804

2018

113,755

Operating Profit

144,795

2020

By advancing and combining both wet and dry refining technologies,
Asahi Holdings has established effective precious metals refining
methods that can be applied to all raw materials.

Hazardous substance processing,waste treatment,
and recycling technology

We hold permits for collection, transportation and intermediate
disposal of most types of industrial waste and specially controlledindustrial waste, and our system enables proper and prompt
disposal and recycle.

Licenses and collection, transport,
and processing facilities (network)

Utilizing the Group’s network, our large team of salespeople canprovide a wide range of solutions to meet customer needs, fromwaste collection to transport and disposal. Our licenses cover all ofJapan, and we handle a wide variety of waste types.

Strengths rooted in Asahi's history(million yen)

Ability to Adapt to Change
Paying close attention to the business environment
and lifecycle and practicing flexible thinking, decisive
action, and quick decision-making, we have built original
business models and quickly exited businesses indecline. With the ability to respond in this manner, we
will continue to maintain growth.

24,037
11,9922019Highly efficient precious metals
recovery technology

Eight Factors Supporting Value Creation

Precious Metals Business

Revenue

Our trained sales staff effectively use IT to conduct customeroriented sales by proposing optimal solutions for customer needs.

2018

15,9142019

Industry-Leading Unique
Technologies
2020

(FY)

Environmental Preservation BusinessHelping to Create a Sustainable Global Environment

We are proud of the original technologies we have developed.
These include technologies for recovering precious metals withhigh efficiency that leverage our advanced analytical capabilities,
technologies for properly processing various industrial wastematerials, and technologies for product development based on
accurate ascertainment of customer needs. Through constantresearch and development, the Group continues to enhance its
unique technologies in each of its business fields.

Proper Waste Disposal
This business began with the detoxifying of harmful substances contained in photographic effluent, and has since expanded to thedetoxification and proper disposal of various waste materials. Through M&A, companies with different areas of expertise have joined
the Asahi Holdings Group, thereby leveraging synergies to provide customers with one-stop solutions for a wide variety of needs.

Revenue

19,408Operating Profit

20,716 19,981

3,850

4,355

(million yen)

3,833

Highly Motivated Employees
The Group’s growth has been driven by our employees,
who share the group-wide values of the Asahi Way,
deeply value trust and connections, and are motivatedby a passion for innovation and embracing challenges.
The Group proactively invests in human resources andcontinues to develop highly motivated employees.

Good Relationships with
Stakeholders
2018

2019

2020

2018

2019

2020

(FY)

Due to the dissolution of our Life and Health Business in fiscal 2019, Inter Central, Inc. was shifted to the Environmental Preservation Business category. The revenue
and operating profit figures for fiscal 2018 and 2019 reflect this change.

14

I N TE G R AT E D R E P ORT 2021

At a Glance /Asahi Holdings
Strengths

Totally Committed to Protecting the Natural
Environment and Preserving Resources

Salespeople

We actively engage in dialogue with investors and listen
to our customers and business partners to strengthen
governance and develop our products and services. We
value the mutual trust we have with our employees andwith the local community and work to increase our longterm corporate value.

Management Capabilities
for Business Regeneration
Over the past 20 years, we have brought more than
20 companies into the group through mergers andacquisitions and improved corporate management. Utilizing
our flexible management capabilities matched to specificbusiness environments, nearly all of our companies enjoy
better performance than before joining the group. We willcontinue working to further improve performance.

Trusted Asahi Brand
The Asahi Group's precious metals products arehighly regarded throughout the world for their reliable
quality. We are committed to building a trusted Asahi
brand by continuing to provide high quality products
and services in all of our businesses.

Globally Expanding
Network
Since establishing a local subsidiary in Malaysia in
1994, we have expanded into other countries in Asia,
including South Korea, China, and Taiwan. In 2015,
we acquired a refining business in North America
through a merger and acquisition, expanding ourtarget customer base to countries around the world.

Substantial Market ShareOur highest priority is to satisfy our customers andbusiness partners, and we have worked hard to
improve our products and services. Our sales andtechnical capabilities that meet a wide range ofneeds have earned us the trust of our customers andenabled us to acquire a strong market share.
ASAHI HOLDINGS

15

Asahi Holdings Value Creation
With our two businesses as the drivers of our value creation, we have achieved business growth and developed solutions to social
problems. We strive to maximize the value created by our business activities and aim to position ourselves as a global company
that pursues originality and growth.

CapitalInvestment

Our Vision

Depletion of resources, human rights andlabor issues in mining

Created Value

Environmental pollution, global warming,
decline of population in Japan, etc.

Financial capital

97.9

Creating a recyclingoriented society

billionyen

Production capital
OutsideLocations In Japan Japan

38 10

Human capital
Employees

1,510

Naturalenvironment

Value-creation
drivers

Total
CapitalHighly efficientprecious metals
recoverytechnology

P. 15

Licenses andcollection, transport,
and processing
facilities (network)

Precious
MetalsBusiness
Business model

Intellectual capital

Scraps containing
precious metals

Salespeople

Competitive
advantage

Hazardous
substance
processing,waste
treatment,
and recycling
technology

Shareholders
and investors

Business
partners

Highest efficiency
collection

Small-quantity special
processing, high unit price

Employees

Natural capital

Localcommunities

M&A in the environmental
business area

Eight Factors Supporting Value Creation

Effective use of resources
Stable, high profits

Contributing to the SDGs

Supplying precious metals
in ways that are friendly
to people, society, and theenvironment
Providing one-stop solutions
for waste disposal

Utilization of diverse humanresources

Environmental Preservation
Business
Social value

Industrial waste

Market hedge

Continuous and stableshareholder returns

Economic value

P. 24

Improving workplace support
and job satisfaction

Competitive
advantage

One-stop total solution
for industrial waste

Precious Metals
Business
Social value

Sustainable growth

Environmental
Preservation
Business

High-precision
analysis

Effective use of limited
global resources

To be a leader in creatinga circular economy thatconnects society to theenvironment

Asahi Holdings
Value Creation

So c i a l I s s u e s

P. 15

Contribution throughparticipation in community
activities

Recycling of
precious metals
products

Economic value

P. 30

Global environmental problems
Sales leader in Japan

Contributing to the SDGs

Detoxification andproper treatmentof waste

The Asahi Way(As of March 31, 2021)

16

I N TE G R AT E D R E P ORT 2021

ASAHI HOLDINGS

17

Consolidated Financial and Non-financial Highlights

Number of employees, percentage of women in the workforce
and percentage of employees outside Japan

Operating profit(million yen)(million yen)

25,126

164,776

Number of
employees

Percentage of womenin the workforce

2,042

1,928

23.4

Percentage of
employees outside Japan

115,797

18,010110,412
13,791

21.2

2018

2020

2019

(FY)

2017

Income for the year attributable to owners of the parent company

2018

2019

(million yen)

9,000

2017

2018

9,846

2020

(FY)

Total capital

2018

2019

11.6

2017

2019

(yen)

11.1

11.1

9

9

2017

2018

12.5

12.5

8

8

2019

2020

9.0

2020

99.9

98.3

93.0

2020

(FY)

1,244.06

813.60

9.9

2018

2018

861.58879.00

2018

2019

2020

2019

(FY)

(FY)

Usage rate of Holidays for Refreshment* 2

%

(FY)

Electrical power consumption(yen)244,803160,272

Percentage of women directors

82.5

81.1

2017

2018

98.2

99.7

2019

2020

%

125.12(million yen)

229,958(FY)

Equity attributable to owners of the parent company per share

Total assets/total capital
Total assets

2017

114.07

1,510

Achievement rate for rest intervals of at least 11 hours* 1
326.90135.3920192020

Basic earnings per share

25,725

9,416

Number of directors

16.7

13,442

11.5

2017

1,574

Number of directors and percentage of women directors

24.7

135,563

Consolidated Financial
and Non-financial
Highlights

Revenue

45,54244,50920172018

49,993

48,413

2019

2020

(FY)

CO2 emissions from energy sources such as electricity and gasoline
1,000 kWh

39.4

39.1

2017

2018

40.0

(1,000 tons)

38.0

131,484

97,90364,435

2017

67,8042018

69,174

2019

2020

(FY)

2017

2020

(FY)

* On April 1, 2021, a stock split was conducted with a ratio of two common shares for one. The basic earnings per share and equity attributable to owners of parent per share
have been calculated based on the assumption that the stock split was conducted at the beginning of fiscal 2017.

18

I N TE G R AT E D R E P ORT 2021

(FY)

2019

2020

(FY)

* 1 Scope: Group companies in Japan. We introduced a rest interval system in the second half of fiscal 2018. Therefore, the figures for fiscal 2018 are based only on Asahi
Holdings, Inc. and Asahi Pretec Corp. in the second half.
* 2 Scope: Group companies in Japan. In 2019, we introduced a Holidays for Refreshment system for group companies in Japan. Therefore, the fiscal 2017 and 2018 figures are
based only on Asahi Holdings, Inc. and Asahi Pretec Corp.

ASAHI HOLDINGS

19

Long-Term Vision and Medium-Term Business Plan
The Group's long-term vision is to be a leader in creating a circular economy that connects society to the environment. The
goals of the 9th Medium-Term Business Plan (April 2021 to March 2024) were devised using a process of backcasting from theachievement of the Group's vision in the future. This strategy represents the first step toward realizing our vision.
Since the goals of the 8th Medium-Term Management Plan (April 2018 to March 2021) were exceeded both in terms of revenue
and operating profit in all three years, we carefully reviewed our goals and made improvements in the 9th Medium-TermBusiness Plan.
Based on evaluations of past plans and the remaining issues, the 9th Medium-Term Business Plan was formulated using afuture-based perspective driven by what it will take to realize our vision. We are determined to deliver on the goals of the plan.

Long-Term Vision

Performance during the 8th Medium-Term Business Plan
(Unit: billion yen)

FY2018FY2019Long-Term Vision
and Medium-TermBusiness Plan

To be a leader in creatinga circular economy
that connects society
to the environment

FY2020

Forecast

Result*1

Forecast

Result*2

Forecast

ResultRevenue

120.0

128.7

130.0

135.6

140.0

164.8

Operating profit

14.0

14.5

15.0

20.1

16.0

25.1

Operating profit
margin

11.7%

11.3%

11.5%

14.8%

11.4%

15.2%

Return on equity
(ROE)

14.1%

13.6%

13.8%

14.4%

13.5%

30.8%

The 9thMedium-TermBusiness Plan

* 1: Numerical values without retroactive adjustment due to classification of Fuji Medical Instruments Mfg. Co., Ltd. as a discontinued business

April 1, 2021 to March 31, 2024

* 2: Numerical values without retroactive adjustment due to changes in accounting policies related to the North American business

Refreshing our business portfolio using scrap and build

Withdrew from photographic materials business,
discontinued operations in Shanghai and Taiwan, etc.,
and exited the Life & Health Business

Created basedon evaluationand issues

Established Asahi Refining Florida to operate acquired
assets related to minting and carbon treatment

Building a global company
that pursues originality
and growth

Backcasting

Began operation of three new incinerators

The 8thMedium-TermBusiness Plan
April 1, 2018 to March 31, 2021

Basics of the 9th Medium-Term Business Plan

(Unit: billion yen)

Building a global company that pursues
originality and growth
Basic policies

1. Reinforce the foundation for global growth
2. Promote new human resource policies
3. Strengthen Group risk management
4. Contribute to the SDGs

20

I N TE G R AT E D R E P ORT 2021

Performance Targets of the Medium-Term Business Plan

P22
・
P23

FY2021 Plan

FY2022 Plan

FY2023 Plan

Revenue

190

200

210

Operating profit

26.0

24.0

27.5

Return on equity
(ROE)

18%

15%

16%

Capital adequacy
ratio

35%

38%

40%

ASAHI HOLDINGS

21

Overview of the 9th Medium-Term Business Plan
We have created the 9th Medium-Term Business Plan by backcasting from our long-term vision, and based on an evaluationof the 8th Plan and outstanding issues.
With the concept of building a global company that pursues originality and growth, the plan's basic policies are:(1) reinforce the foundation for global growth; (2) promote new human resource policies; (3) strengthen Group risk
management; and (4) contribute to the SDGs. We are determined to deliver on the goals of this plan.

Precious Metals
Business
Boost cost competitiveness by utilizing the
cutting-edge technology and expertise
Establish a sales system that makes efficientuse of IT, and improve market share
Establish a new business model and growprofits in the North American refining
business

Pursue greening along with digitalizationand decarbonization

Continue scrap and build strategy

2

Strive to achieve sustainablegrowth and globalization

Promote New Human Resource Policies
Ensure all employees are compensated based on performance and abilities

4

I N TE G R AT E D R E P ORT 2021

Achieve fiscal 2030 targets for the percentage
of managerial positions held by women and thepercentage of employees who have disabilities
Enforce rest intervals and the taking ofHolidays for Refreshment by all employees
Expand support for employees withfamily nursing care responsibilities

The 8th Medium-Term Business Plan
Operating Profit (million yen)

13.6

13,791

13,44220172018

The 9th Medium-Term Business Plan

30.8

ROE (%)Create opportunities for high-performing employees to play an active role even after retirement age
Establish pay-for-performance in areas where the knowledge and experience of veteran employees can be utilized

22

Enhance the image of the Asahi brand by further promoting
Responsible Precious Metals Management, and by providing precious
metals products that help protect human rights and the environment

Pursue climate change action suchas reviewing power contracts for ourfacilities and actively switching tohydrogen and electric vehicles

Enhance programs
such as those forencouraging worklife balance

Increase hiring of seniors

Improve human resources development to foster people who can take on global challenges and make great strides
Establish an internal venture capital system to allow employees to take on the challenge of product commercialization anddevelop human resources who can become future management leaders

Strengthen credit risk management relating to business partners

Expand the amounts of precious metals
recycled and industrial waste properly
treated, which are our main businesses

Effectively
utilizeresources

Promote diversity and inclusion

Provide opportunities for learning and challenge-taking

Establish a system for further global growth, including
contributing to the SDGs

Contribute to the SDGs

Introduce clear, easy-to-understand qualification requirements and determine evaluation and compensation based on
performance and abilities
Give talented employees the opportunity to be promoted to higher positions and work to revitalize the entire organization
Create new value that promotes the growth of the company by developing workplaces that embrace diversity
Support career advancement of women in the workforce by increasing assistance for work-life balance

Perform group-wide management of compliance risks
along with detailed risk management from a perspective
independent of business segments

Strengthen risk
management
for the North
American business

Leverage wide-area and diverse networks

Globally expand through M&A

Improve efficiency in Japanand promote global strategy

Establish aGroup risk
management
department

Environmental
Preservation
Business

Improve profitability in terms ofboth industrial waste treatment andmanagement

Establish a framework to maintain a corporate brand trusted as a global company, and create a global risk
management mechanism

Overview of
the 9th Medium-TermBusiness Plan

1

Reinforce the Foundation for Global Growth3

Strengthen Group Risk Management

18

14.4

15
25,12626,0002020

2021

18,0102019

24,0002022

16
27,5002023

ASAHI HOLDINGS

23