Organization Design
Board of Directors

Basic Corporate Governance Approach
Practicing effective corporate governance is a key part of corporate social responsibility. Good governance enhances management
efﬁciency and transparency, and it helps keep corporate value growing.
The Asahi Holdings Group’s practice of corporate governance seeks to earn the conﬁdence of shareholders, business partners,
employees, local communities, and other important stakeholders. In addition to fulﬁlling the social mission and responsibilities ofa publicly listed company, we aim to keep growing corporate value by maintaining a corporate governance system that can quickly
respond to changes in the business environment while always securing compliance.

Corporate Governance Structure

Outside Directors

General Shareholder s Meeting
Appoint/
Dismiss

Representative
Director

Audit and Supervisory
Committee: 4 Directors

Audit/Supervise(including 3 Independent
Outside Directors)

The Nominating/Compensation
Committee: 3
Directors on Each

Direct/ReportInternal Control
Promotion Meeting
Safety Management
Meeting

Collaborate
AssistAudit andSupervisory
Committee
Secretariat

Audit
Department

Internal
audit

Independence Criteria have been established, and independent
outside directors with capacity to perform their duties
independently from the management of the Company have been
appointed, taking into consideration their individual backgrounds
and relationships with the Group. They attend Board of Directors
meetings and fulfill their roles and responsibilities as directors.
Whenever possible, they also attend the executive andmanagement committee meetings of Group companies. As partof their wide-ranging activities, the outside directors share theiropinions from an independent point of view.

The Asahi Holdings Group adheres to all the principles of Japan’s
Corporate Governance Code formulated by the Tokyo Stock
Exchange. The 78-point code compliance reports submitted by
Asahi Holdings to the Tokyo Stock Exchange are available on our
website.
In addition, we have formulated the Asahi Holdings
Corporate Governance Policies and are implementing each one tocontinuously enhance corporate governance.

Maintaining an Internal Control System
Aiming to reinforce internal controls, we have established an
Audit and Supervisory Committee within the Board of Directors.
It includes three independent outside directors, and it cooperates
with our audit and internal control departments.
The Audit Department assesses the appropriateness andeffectiveness of operations, while also auditing compliancewith laws, regulations, and company rules. It advises and makes
recommendations to each department, and promptly reports tosenior management. In addition, trained staff in each department
conduct internal audits based on an annual plan and report theirfindings to the Internal Control Promotion Meeting.

Evaluating the Effectiveness of the Board of Directors

Inquire/Reply(including 2 Independent
Outside Directors)

Group
Executive
Committee

Appoint/
Dismiss

Accounting Auditors

Appoint/
Dismiss/
Supervise

Appoint/
Dismiss

Board ofDirectors: 8
Directors

Executive
Directors: 4

The Board of Directors of Asahi Holdings, Inc. is comprisedof executive directors who are knowledgeable concerning theirrespective business, technical or administrative divisions, as wellas outside directors with various types of expertise essential tocorporate management. To have an adequate number of directors
for active, substantial and effective discussions at meetings, theBoard of Directors consists of eight directors, including three
independent outside directors. All directors share their opinions
actively and freely on important subjects such as the Group’s
management strategies and business plans.

Adherence to Japan s Corporate Governance CodeGOVERNANCE

Corporate Governance

ESG Initiatives

GOVERNANCE

As of the year ended March 31, 2016, Asahi Holdings has
evaluated the effectiveness of its Board of Directors every year toensure that the entire board is functioning properly. The evaluation
results are available on our website.

Audit and Supervisory Committee
Under Japan’s Companies Act, Asahi Holdings has elected to be acompany with an Audit and Supervisory Committee, and has three
independent outside directors. This structure has strengthened thesupervisory function of the Board of Directors. It also delegates
important executive decisions to the executive directors for quicker
decision-making and improved management efficiency.

Nominating and Compensation Committees
Collaborate

A Nominating Committee, consisting of one regular director andtwo independent outside directors, as well as a Compensation
Committee, have been established as advisory bodies to the Boardof Directors. The aim is to further enhance corporate governanceby ensuring transparency, fairness, and objectivity for theappointment and dismissal of directors and key management teammembers, as well as for the determination of director remuneration.

Group Executive Committee

Departments and Group Companies

26

CORPOR ATE REPORT 2020

Important matters delegated to the executive directors aredeliberated and decided by the Group Executive Committee. Other
matters related to business execution are deliberated and decided
by the Group’s key company management meeting.
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ESG Initiatives

GOVERNANCE
To properly manage apparent and potential risks in business activities, we study risks from a comprehensive standpoint, against whichassessment is performed and actions taken. We are working hard to prevent risks from arising and to minimize losses when risks
develop into a crisis by carrying out risk management.
ComplianceInternal Reporting System (Whistle-Blowing System)

We consider compliance a priority issue in delivering fair businessactivities and ensuring legal compliance and high ethical standards.
Particularly, operations related to appropriate processing ofwastes are based on environmental laws and regulations as well as
governmental licenses, and each and every employee is required
always to act with a highly compliant mindset. We are conducting
activities to raise the legal compliance awareness of each andevery employee through education and mutual communication,
along with rules and manuals related to compliance.

To quickly identify and resolve problems such as unlawful andunjust behavior, we have set up the Asahi Hotline. All employee
s in and outside of Japan can directly report to either an intern aldesk or an external law firm anonymously. We take corrective
actions to address the reported matters after investigation, without
revealing the identity of the disclosing or disclosed parties.

Business Continuity Management (BCM)

Avoiding All Interactions with Organized Crime and otherAnti-social Forces

Various factors such as large-scale disasters entail the risk of
impairing the functions needed for business continuity. Asan action plan to achieve quick restoration of mission-critical
functions even after a disaster, we created a business continuity
plan (BCP). In addition to the BCP, we are conducting systematic
business continuity management activities to constantly improve
the BCP and business continuity endeavors.

The following statement is part of our Corporate Governance
Policies, and is understood by all our executives and employees.
"We will never have any relationship, including business
relationships, with anti-social forces which threaten thesocial order and sound corporate activities. In the event of anillegal request, we will take a firm attitude and respond to it
organizationally in accordance with the law and internal rules."Officer Profiles
Mitsuharu Terayama

Tomoya Higashiura

ProfileProfileApr 1964: Joined Kuraray Co., Ltd.
Jul 1973: Joined Asahi Pretec Corp.
May1981: Appointed Representative Director andPresident of Asahi Pretec Corp.
Apr 2009: Appointed Representative Director andPresident of Asahi Holdings, Inc.
Jun 2014: Appointed President & CEO of Asahi Holdings, Inc.
:
Apr 2018 Appointed Representative Director, Chairman& CEO of Asahi Holdings, Inc.
Jun 2020: Appointed Director and Chairmanof Asahi Holdings, Inc. (to present)

Apr 1984: Joined NEC Corporation
Feb 2001: Joined Asahi Pretec Corp.
Jun 2006: Appointed Director of Asahi Pretec Corp.
Apr 2011: Appointed Director of Asahi Holdings, Inc.
Jun 2014: Appointed Representative Director andPresident of Asahi Pretec Corp.
Apr 2017: Appointed Representative Director andPresident of Asahi Americas Holdings, Inc. (to present)
Apr 2018: Appointed Director of Asahi Pretec Corp. (to present)
Apr 2018: Appointed Representative Director andPresident of Asahi Holdings, Inc. (to present)

Amane Kojima

Hiroyuki Nakanishi

ProfileProfileApr 1992: Joined Nissho Iwai Corporation
Mar 2011: Joined Asahi Pretec Corp.
Jan 2013: Registered as a USCPA (Washington)
Jun 2017: Appointed Director of Asahi Holdings, Inc. (to present)
Apr 2018: Appointed Director of Asahi Americas
Holdings, Inc.
Oct 2019: Appointed Corporate Auditor of Asahi Americas
Holdings, Inc. (to present)
Apr 2020: Appointed Director, CFO and General Manager
of Financial Planning Office of Asahi Holdings,
Inc. (to present)

Apr 1986: Joined Asahi Pretec Corp.
Jun 2009: Appointed Executive Officer of Asahi Pretec Corp.
Apr 2013: Appointed Director of Japan Waste Corporation
Jun 2016: Appointed Representative Director andPresident of Fuji Medical Instruments Mfg. Co., Ltd.
Apr 2018: Appointed Representative Director andPresident of Asahi Pretec Corp. (to present)
Jun 2018: Appointed Director of Asahi Holdings, Inc.
Apr 2020: Appointed Senior Vice President ofEnvironmental Preservation Business Unit of
Asahi Pretec Corp. (to present)

Information Security
The laptops and tablets used by the Group’s sales force are
equipped with the latest security measures. Even if a device is lostor stolen, the possibility of information leakage is virtually zero
thanks to technology such as remote data wiping.

GOVERNANCE

Risk Management

Audit and Supervisory Committee Members

Yuji Kimura

Kyoko Kanazawa

ProfileProfileApr 1979: Joined the Environment Agency
Jul 2006: Appointed General Manager of Industrial
Waste Management Division, Waste Management andRecycling Department of the Ministry of the Environment
Aug 2010: Appointed Director-General of Kyoto Mechanism
Business Promotion Department of New Energy
and Industrial Technology Development Organization
Jul 2012: Appointed Director-General of Hakodate
Customs, Ministry of Finance JapanOct 2014: Appointed Executive Director and General Manager of Tokyo
Office, Global Environment Centre Foundation (to present)
Jun 2017: Appointed Outside Director (serving as Audit andSupervisory Committee Member) of Asahi Holdings, Inc. (to present)

Apr 1989: Joined Fuji Research Institute Corporation
Apr 2000: Registered as attorney / Joined Hata & Co.
Law Offices (to present)
Jun 2017: Appointed Outside Director (serving as Audit
and Supervisory Committee Member) of Asahi
Holdings, Inc. (to present)

Yoshikatsu Takeuchi

Yoshinori Hara

ProfileProfileApr 1978: Joined Hyogo Sogo Bank
Apr 1999: Joined Asahi Pretec Corp.
Jun 2001: Appointed Director of Asahi Pretec Corp.
May2008: Appointed Representative Director andPresident of Japan Waste Corporation
Apr 2009: Appointed Director of Asahi Holdings, Inc.
Apr 2018: Appointed Director and Chairman of Japan
Waste Corporation
Apr 2018: Appointed Director and Chairman of Asahi Life
& Health Corporation
Jun 2019: Appointed Director (serving as Audit andSupervisory Committee Member) of Asahi
Holdings, Inc. (to present)

Apr 1983: Joined NEC Corporation
Aug 1990: Became a Visiting Researcher, Stanford University
Jul 2004: Supervised NECʼs Kansai Research Laboratories
Apr 2006: Professor of Graduate School of Management,
Kyoto University (to present)
Apr 2018: Dean of Graduate School of Management,
Kyoto University
Jun 2019: Appointed Outside Director (serving as Audit
and Supervisory Committee Member) of Asahi
Holdings, Inc. (to present)(As of June 16, 2020)28

CORPOR ATE REPORT 2020

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ESG Initiatives

ENVIRONMENTThe Asahi Holdings Group strives to ensure that its business activities contribute to healthy
cyclical use of materials to protect the global environment.

ENVIRONMENT

Environmental Initiatives of the Asahi Holdings Group
Priority SDG-Related Goal

Recycling

Expand precious metal recycling

CO2 Emissions Reduction from Precious Metal Recycling
The CO2 emissions reduction benefit from precious metal recycling by the Group is
calculated as the emissions from its precious metals recycling deducted from the emissions
that would have been produced by refining the same amount of precious metals frommined raw material. By expanding our precious metal recycling, we will also be indirectly
contributing to CO2 emissions reduction.

OUTCOMEWe will expand our precious metal recycling globally topromote more effective use of limited resources.

Amount of precious metals recycled in FY2019

367

t (Increase of 34% compared to FY2015)(The CO2 emissions reduction figure does not indicate the level of emissions directly reduced by the Group.)

Priority SDG-Related Goal

Emissions factors used
for calculation(tons-CO2)

Approximately
one-tenth

Emissions from refining
mined raw material

Refining
mined rawmaterial

Gold: 12,621 kg of CO2 / kg of gold
Silver: 95 kg of CO2 / kg of silver
Platinum / palladium: 9,297 kg of
CO2 / kg of palladium

Recycling

Gold: 1,256 kg of CO2 / kg of gold
Silver: 22 kg of CO2 / kg of silver
Platinum / palladium: 658 kg of
CO2 / kg of palladium

Recycling
Products

Reference: Calculated from “Life Cycle
Assessment Data for Computer Products,
Mobile Phones and Mixed Waste [homepage
on the internet],” United States Environmental
Protection Agency

Emissions fromrecycling

Environmental benefit of precious metal recycling
When CO2 savings are expressed as the amount of greenhouse gases
absorbed by forests, it is equal to 43,317 hectares of forest(an area two-thirds the size of Lake Biwa)
Note: Calculation was based on the assumption that one cedar treeabsorbs 14 kg of CO2 annually (Source: Forestry Agency of Japan),and 1,700 cedar trees are planted in an area of one ha.

Industrial waste

Expand proper industrial
waste disposal

Precious Metal bullion

Raw materials for recycling

Asahi
Gr

Holdings
oup

We will strive to ensure proper treatment of waste as a waste
disposal expert and work to help build a world of sustainable
recycling.

Glass cullet,
fermented compost,
metal raw materials,
fuels and raw
materials for cement,
refractory brick andpaving materials, andwood chips

Amounts of proper industrial waste disposal FY2019 results

Recycling
Resources

INPUT

Emissions
reduction
benefit

PlantsEnergy Sources
Heavy oil

49,99million kWh / year

762kL / year

Kerosene

Light oil

468 kL / year

3,350kL / year

Gasoline

Urban gas

972 kL / year

3.06million m / year

CORPOR ATE REPORT 2020

Business sites,
research lab, etc.

EnergyElectricity

21,000 tons / year

SludgeOther waste plastic, etc.)

130,000tons / year

95,000tons / year

23,227(waste reagents,

Total

358,000

tons /
year(Increase of 16% compared to FY2015)

Priority SDG-Related Goal

Reduce CO2 emissions

3

Up compared to the previous year
Down compared to the previous year
All figures are for FY2019

By ﬁscal 2030, we aim to reduce CO2 emissions from energy
sources by 26 compared to ﬁscal 201 .

CO2 Emissions: FY2019 Results

Effluent

272,902m

Chemicals

17,024

Water

479, 820m
30

94,000 tons / year

18,000tons / year

Waste

tons-CO2

15 t / year

Glass and ceramic waste

Waste oil

1.031million

LPG

Liquid waste

CO 2

3

108,064

3

OUTPUT

Compared
to FY2015

9

reduction

Scope of data
Headquarters, sites, sales offices and plants in Japan, as well as Group
companies*, and overseas subsidiaries* (calculation period: April to March)* The data pertains to consolidated subsidiaries as of March 31, 2020. Data fordeconsolidated subsidiaries are subtracted retroactively, while subsidiaries
that were previously non-consolidated has been added retroactively, goingback to the fiscal year when the subsidiary became consolidated.

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ESG Initiatives

ENVIRONMENT
Priority SDG-Related Goal
Environmental management structureManagement

ISO 14001 Certification
In August 2018, we obtained ISO 1 001 certiﬁcation for our sites inJapan, including those at subsidiaries. As of March 31, 2020, we haveachieved certiﬁcation for 32 sites at 6 companies. Going forward, we
will continue to focus on maintenance and improvement activities
with an emphasis on extending certiﬁcation to all sites.

Climate Change Prevention Initiatives
CO2 emission trends

General Internal
Auditors■ Non-energy-derived CO2 emissions■ Energy-derived CO2 emissions (in Japan)

General Environment
Committee

40

40.8
14.7

ISO Office

57.1

Supervisors

0Internal Auditors
Environment
Preservation
Administrator
Environment
Committee
ISO 14001 certificate

Departments

Environmental Management Promotion System
Every year we develop Company-wide Environmental Goals based on our Environmental Policy, which sets out our environmental preservation
philosophy. According to the above-established purposes and goals, each ISO 1 001 certiﬁed site in Japan develops its own Annual
Environmental Goals and implements environmental preservation activities closely related to their business tasks. In addition, the Environment
Committee of each site deliberates on such matters as compliance with environmental laws and regulations, revisions of plans and environmental
education, and provides reports to management. While the ISO Ofﬁce controls the environmental management system (EMS), an environmental
preservation administrator is also assigned for each site in order to ensure thorough implementation of environmental initiatives.

Environmental preservation activities by employees■ Energy-derived CO2 emissions (Group basis for 2015 onward)

39.4

39.1

40.0
2.8

14.0

15.3

14.5

51.8

20
26.1

Supervisors■ Energy-derived CO2 emissions (outside Japan)(1,000 tons CO 2)

60

Chief Environment
Control Manager

Supervisors

Reduce CO2
emissions

ENVIRONMENT

Environmental Management

We actively participate in cleaning
activities in each region.

2015 (Base year)

25.4

48.4
23.8

2017

68.0

22.7

2018

2019

(FY)

In ﬁscal 201 , the Group s total CO2 emissions were up approximately 8 from ﬁscal 201 . This does not include the emissions attributed to one site outside Japanthat joined the Group in ﬁscal 201 , as it was not included in the total for the base year. Breaking down this total, energy-derived CO2 emissions in Japan were down
thanks to group-wide energy-saving activities and the closure of a site. Even though emissions by sites outside Japan remained about the same, the worldwide total
dropped by approximately . On the other hand, CO2 emissions generated through industrial waste incineration were up approximately 1 from ﬁscal 201 . The
Asahi Holdings Group is helping to extend the lifespan of ﬁnal disposal sites by incinerating waste plastic and drastically reducing its volume. The main reason for
the emissions increase was a jump in the amount of waste plastic incinerated after updating incinerators.
As one of its priority SDG-related goals, the Group is working toward a 26 reduction in CO2 emissions by ﬁscal 2030, compared to ﬁscal 201 . The
Group’s energy-derived CO2 emissions in Japan mainly stem from power consumption in ofﬁces, power and fuel consumption in factories, and fuel consumption
by sales and other vehicles. Overseas, these emissions originate from power and fuel consumption in factories and ofﬁces. Non-energy-derived CO2 emissions
arise from the incineration of industrial waste.
We focus on energy-derived CO2 emissions in particular, and aim to achieve our target not only through in-house efforts, but also by utilizing resources outside
the company. These include generating power from waste, reducing energy use for air conditioning, lighting and vehicles, and changing electric power providers.
Scope of data

Headquarters, sites, sales offices and plants in Japan, as well as Group companies,* and overseas subsidiaries* (calculation period: April to March)* The data pertains to consolidated subsidiaries as of March 31, 2020. Data for subsidiaries that were previously non-consolidated has been added retroactively, going back to
the fiscal year when the subsidiary became consolidated.

Calculation method

En er g y-der ived em ission s: Calculated based on the amounts of electricity and fuel consumed at each site (emissions in Japan calculated based on the Act on Promotionof Global Warming Countermeasures, and the Act on the Rational Use of Energy)
Non-energy-derived emissions: Calculated based on the amount of industrial waste incineration

Green Bond IssuanceGreen bonds are issued to raise funds for a project with environmental preservation benefits, such as renewable energy orother measures to combat global warming. As part of our initiatives to promote sustainable management, we have issued
green bonds to secure the financing necessary to install eco-friendly facilities and equipment. This green bond issuancehas been recognized as a measure to help solve environmental problems, and it has received the highest rating of "GA 1."
Going forward, the Asahi Holdings Group will continue to work as one for the "resolution of the earth’s sustainability."
Uses of Funds

Upgrading the incinerator and constructing a new power generation
facility at the Kitakyushu Plant of Asahi Pretec Corp.
Upgrading the incinerator at the Hibiki Plant of Asahi Pretec Corp.
Installing a new incinerator at the Rinkai Plant of Taiyo Chemical Co., Ltd.
The funds will be used to help promote the following SDGs.

Okinawa: Beach cleanup Aomori: River cleanup

32

CORPOR ATE REPORT 2020

Nigata: Road cleanup

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ESG Initiatives

SOCIETY
Health and Productivity Management

While welcoming workplace diversity, the members of the Asahi Holdings Group respect each other's individuality. We are engaged
in various initiatives with the aim of creating inclusive workplaces where all employees can demonstrate their abilities.

The Asahi Holdings Group’s approach to health and productivity management starts with treating the physical and mental health of
all employees as a key management issue.

Priority SDG-Related Goal

Asahi Holdings Health Declaration
The Asahi Holdings Group recognizes that every employee ʼ s mental and physical health are assets tothe company and is working to enhance corporate value by building healthy, productive workplaces.
Representative Director, President & CEO: Tomoya Higashiura

Enhance work-life balance and diversity promotion
FY2019 Results

Thorough implementation of the rest
interval system (at least 11 hours rest)

100% by the end of FY2020

98.3%

100% of usage rate by theend of FY2020

98.2%

Raising the usage rate of Holidays for
Refreshment (at least 3 days off)

* Target for Group companies in Japan

Asahi e-Learning

Asahi Small Group(ASG) Activities

Other
Business school attendance(based on employee applications)

2.07%

Rank-based education

Short-term businessschool placement(Percentage of men in
managerial positions: 18.6%)

Education for new hires

Selective leader
training

Percentage of women in
managerial positions:
3.88%

With the aim of developing professional human resources who can operate at a global level, regardless of rank or occupation type, we have
implemented our own qualiﬁcation systems and internal education curriculums. In addition, we are striving to develop human resources
who enjoy taking on challenges, using systems that fairly and impartially evaluate each employee’s contribution to business performance.

Distance learning

The company is working to create jobs that arechallenging and rewarding for employees withdisabilities, thereby allowing them to use theirabilities and experience in the workplace.

Percentage of employees withdisabilities: At least 2.5% by theend of FY2030 (legally required
rate is 2.3%)

Human Resource Development

Step-up training

Promoting the employmentof people with disabilities

Equal to men by the end of
FY2030Since good mental health is essential for improving employee
productivity and vitality, employees are given individual consultations
and preventative seminars by industrial physicians specialized in mental
health. In addition, stress checks are given to all employees at all sites
including workplaces with fewer than 50 people.
After the checks are carried out, we analyze the results for each siteand make workplace improvements to promote even more supportive
working environments.

Training for new
executive hires

The aim is to create a company where womencan play an active role in the workplace andfully demonstrate their abilities. We are working
to improve our workplaces and raise careerplanning awareness, so that both men andwomen can reach their full potential.

Starting at age 35, a gastroscopic examination is recommended for
employees, and advanced medical checkups including brain MRI / MRA
exams as well as PET scans are provided periodically starting at age 40.
We have been recognized by Japan's Ministry of Economy, Trade andIndustry as a 2020 Certiﬁed ealthroductivity Management Outstanding
Organization. This recognition is given to corporations that are promoting
employee health management from astrategic business perspective.

Upper-level
positions

Increasing the percentage of womenin managerial positions

Mental HealthMid-level
positionsThis type of leave provides three consecutive
days or more, and the employment rules also
allow leaves of five consecutive days. The aim isfor employees to reinvigorate their minds andbodies, while realizing stimulating work styles.

Robust Health Exam Program that Exceeds Legal Requirements

Basic-level
positions

We have introduced a system to ensure that
employees get at least 11 hours of rest, fromthe time they leave work, to the time they start
work the next day. We are actively striving topromote employee health, which is an asset forthe company.

Running a robust health exam program that exceeds legal requirements and practicing thorough mental and physical health management
Encouraging employees to understand the importance of their own health, and supporting them to maintain and promote their own health
Promoting work-style reforms with the aim of improving work-life balanceMainmeasures

Training
before start
to workTargets

Professional and specialist
positions

SDG-Related Goal

SOCIETY

Work-Life Balance and Diversity

Training for new hires

Work-Life Balance Support
We are working to create workplaces where it is easy for employees to secure time
off for family needs, such as childbirth, childcare, or home care for a relative. Our
program providing shortened working hours after childcare leave can be used until
the child graduates from elementary school, a beneﬁt which greatly exceeds legal
requirements. The company has also introduced a telework system for employees
who have young children, are providing home care, or are receiving medical
treatment. This helps employees to work according to their circumstances.

34

CORPOR ATE REPORT 2020

Short-Term Business School Placement

Asahi e-LearningThis program allows employees to attend business school
courses with students from other companies. The aim isto enable them to acquire practical management skills
and expand their personal networks.

This is our own internal e-learning program, which is part ofefforts to share in-house knowledge across the Group. By using
teaching materials and content created by each department,
the aim is for participants to deepen their knowledge ofcompany rules and operations, while improving business skills.

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ESG Initiatives

SOCIETY
Partnering with Shareholders and InvestorsServing our Customers

In order to meet the expectations of our shareholders and investors, we present our vision, management policy, and medium-term businessplan in accessible way, and disclose corporate information in a timely and appropriate manner. In addition, the Group is actively engaged inconstructive dialogue with shareholders and investors, while aiming for sustainable growth and higher corporate value.

Our motto is the customer comes ﬁrst, and we mean it. We do all that we can to provide ﬁnely tuned responses to the wide-ranging
needs of each of our customers.

IR Activities

General Shareholder s Meeting

Management brieﬁngs are held twice a year after the announcement of thesecond quarter ﬁnancial results and the annual ﬁnancial results. In addition,
we give individual interviews as an opportunity to directly explain ﬁnancial
information to institutional investors and securities analysts on a quarterly
basis. We also disclose information fairly and broadly to all stakeholders inJapanese and English, using IR tools such as our website.

The regular general meeting of shareholders is held every June in Kobe
and provides an opportunity to communicate with shareholders. Senior
management responds directly to the questions and concerns of attendees,
uses the feedback for management of the Group, and aims to make themeetings useful for shareholders.

The basic policy of Asahi Holdings is to improve corporate value by maintaining profitability and delivering sustainablegrowth, and to meet the expectations of shareholders by providing sustainable, stable dividends. We also believe that it
is important to enhance internal reserves to prepare for investment in growth areas and new business development.
Based on this policy, we aim for a consolidated dividend payout ratio of 50% or higher. The ratio is decided after
taking into consideration the business results of each fiscal year, the need for enhancing the financial position, and the
management strategy of the Group.

Dividend Per Share

■Commemorative dividend ■Mid-term dividend ■Year-End Dividend
Dividend payout ratio (Japanese standard)
Dividend payout ratio (IFRS)(Unit: %)(Unit: JPY)
(Unit: %)Stock Ownership, by Types of Shareholders
Securities
Firms
611,418shares

68.6

70

52.6

52.0

3.2

ForeignInvestors
10,233,475shares

39.1

32.7

25.7

33.9

30

10

30

30

30

30

30

30

30

30

30

30

2013

2014

2015

2016

2017

Stock Prices■Trading volume (shares)

120

60

70

60

60

2018

2019

3

Number ofshareholders

Individuals
and Others
15,291,825shares

38.4

60

Financial
Institutions
12,395,500shares

0

31.1

(As of March 31, 2020)■Closing price(JPY)(1,000 shares)

2,500

12,5002,000

10,000

1,500

7,500

1,000

5,000

500

2,500

15,0003,000

0April 2014

CORPOR ATE REPORT 2020

April 2015

April 2016

April 2017

April 2018

April 2019

At Asahi Pretec, quality assurance is positioned as the coredepartment, and it works closely with the sales, technology
development, and product manufacturing departments. It sharescustomer feedback and market trends with these departments andcooperates with them to improve customer satisfaction. In addition,
the Asahi oldings Group maintains ISO 9001 certiﬁcation toensure that its products deliver satisfaction and peace of mind
to customers. We strive to continuously improve our quality
management system and maintain the highest quality possible.

CSR Procurement Policy
Procurement is carried out based on the following seven points:
1. Environmental preservation
2. Quality control
3. Fair trade
4. Information security
5. Crisis management
6. Social responsibility
7. Human rights protection and occupational safety and healthTransactions are promoted based on relationships of trustwith our business partners. The aim is to improve corporate
value for both the company and our business partners.

Procurement Initiatives

Working with Communities
As an enterprise with business activities across Japan, the Group realizes that the understanding and support of local residents is
indispensable. In order to maintain good relations with our neighbors, we are promoting various types of social contribution activities
to beneﬁt communities and the natural environment. We will continue to fulﬁll our responsibilities as a corporate citizen and actively
contribute to the development of an even healthier society.

16,092(Unit: JPY)

23.3

20

0.1

Other
Companies
1,288,589shares

5040

As part of the Asahi Way, the Code of Conduct of the Asahi
Holdings Group prohibits any behavior that impedes faircompetition, violates the conﬁdentiality of supplier informationand technology, or results in improper beneﬁts. These rules arestrictly enforced to ensure compliance with fair business practices
and corporate ethics.

Asahi Pretec has implemented a CSR Procurement Policy. It
pertains to the procurement of secondary materials such as
chemicals and consumables used in precious metal recycling andthe environmental preservation business.

Treasury
Stocks
33,537shares

1.5

60

Fair Trade Measures

Quality Assurance System(Basic Policy on Shareholder Returns)

36

SOCIETY

Communication with Stakeholders

Participating in Social Contribution Activities
The company has provided cooperation for the social project
TOOT
AI , which is run with the cooperation of
Nippon oundation and apan ental Association. Some ofthe proﬁts obtained from sales of recycled precious metals
are made available as funds to assist the activities of theseorganizations.
We also support the nonproﬁt organizations M decins
du Monde apon and apan Cleft and late oundation, which
provide medical support activities.

0

AS AH I H O L D ING S

37

Asahi Holdings
Board of Directors

Partnering with Employees

Group Company Structure

SOCIETY

Group Company Structure

Audit and Supervisory Committee

Representative Director

The Group actively supports social contribution activities undertaken by employees. It aims to create an environmentthat encourages all employees to take a broad interest in various social issues and contribute to society voluntarily. In
addition, we are working to improve productivity by leveraging small group activities and building workplaces thatsatisfy employees.
Asahi Holdings SDG Activities

Asahi Small Group (ASG) Activities

Asahi oldings S G Activities are those that employees perform
independently, aside from their regular work, as members of society
to contribute to the S Gs. The Asahi oldings S G Awards were
established to honor individuals and groups who have performed
outstanding S G-related activities during the three years from 201 to
2020. As a company, we encourage and support all employees in theirefforts to understand and help achieve the global agenda set out in
the S Gs.

ASG activities refers to small group activities that are carried out
based on the active, voluntary participation of employees in the same
workplace. These groups apply ingenuity to solve problems in theworkplace. The groups that have made the most outstanding efforts arerecognized at the Employee General Meeting.

Financial Planning Office

Audit Department

Corporate Planning & Communications Department
Legal Department
Overseas Business Development Office

Asahi Pretec
Board of Directors
Representative Director
Precious Metals
Business Unit

Auditors
Precious Metals Business Division

Asahi Pretec
Medical Support

Jewelry Business Division
Electronics Catalyst Business Department
Precious Metal Sales Department
ASAHI G&S

Priority SDG-Related Goal

Asahi Pretec Korea

Encourage and support SDG activities
Employees, as upstanding citizens, are encouraged to help achieve the
S Gs as in various ways, including support for individual and group
volunteer activities.

Environmental
Preservation
Business Unit

Environmental Preservation Business Division
Affiliated Business Management Division

JW Saitama Office
JW Yokohama Office
JW Shonan Office
Taiyo Chemical
Fuji Rozai
JW Glass Recycling
INTER CENTRALFY2019 SDG Activities

Sales Office Management Department
Technical
ResearchCenterDomestic Sales Sites

Technology Support & Production Management Department
Research & Development Department
Production & Engineering Department
Safety Management Office
Human Resources and General Administration Department
Finance & Accounting Department
Information Technology Department

Asahi Americas Holdings, Inc.
Board of Directors
Representative Director

Disaster Volunteer
Some worked as volunteers in disaster areas
affected by heavy rain, mainly in the Chugoku andnorthern Kyushu regions.

Hanshin region: Beach park cleanup
Every year since 1988, employees have participated in beach park
cleanup activities. Many take part with their whole families. In fiscal
2019, 45 people comprised of employees and family members took
part, including those from Group companies.

Auditors
Asahi Refining Canada Ltd.
Asahi Refining USA Inc.
Asahi Refining Florida LLC(As of April 1, 2020)38

CORPOR ATE REPORT 2020

AS AH I H O L D ING S

39

Ten-Year Financial and Non-Financial Summary←［ Japanese Standard ］ ［ IFRS ］→
FY
Unit

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Revenue*2

Billion JPY

110.5

151.1

96.4

94.3

111.4

119.4

106.8

115.8

110.4

135.6

Operating income*2

Billion JPY

10.7

11.2

7.5

9.6

10.5

6.1

2.0

13.8

13.4

20.1

Pre-tax income

Billion JPY

10.5

10.8

7.3

9.9

9.7

5.9

1.8

13.4

12.4

17.7

Income for the year attributable to owners of the parent company

Billion JPY

6.1

5.9

4.5

6.0

5.8

2.9

-1.2

9.4

9.0

9.8

Total capitalBillion JPY

34.3

38.9

42.0

46.5

51.0

49.0

44.8

64.4

67.8

69.2

Total assets

Billion JPY

59.1

58.3

62.3

66.1

104.9

101.6

89.0

131.5

160.3

230.0

Capital investment

Billion JPY

3.4

1.6

1.3

1.1

1.5

1.7

3.0

3.1

5.7

4.2

Depreciation

Billion JPY

2.1

2.3

2.1

1.8

1.8

2.4

2.3

2.3

2.3

2.8

R&D expenses

Billion JPY

0.38

0.36

0.35

0.37

0.44

0.50

0.51

0.51

0.45

0.35

Cash flow from operating activities

Billion JPY

5.5

11.3

-0.4

14.1

9.4

14.3

3.3

-13.4

-20.6

-60.3

Cash flow from investing activities

Billion JPY

-3.7

-2.3

-2.1

-1.1

-29.6

-1.9

-2.4

-2.8

-5.6

-1.9

Cash flow from financing activities

Billion JPY

-1.1

-7.7

2.6

-8.0

21.4

-6.5

-6.6

29.8

18.3

65.2

Basic earnings per share (EPS)

JPY190.46183.20139.24183.50176.8987.48-37.24270.77228.14250.24Equity attributable to owners of the parent company per share (BPS)

JPY

1,062.30

1,198.77

1,288.56

1,422.51

1,542.82

1,490.56

1,359.02

1,627.20

1,723.16

1,758.00

Dividend per share

JPY

50.00

60.00

60.00

60.00

60.00

60.00

60.00

63.00

120.00130.00Operating income margin

％

9.6

7.4

7.8

10.2

9.4

5.1

1.9

11.9

12.2

14.8

Return on equity (ROE) attributable to owners of the parent company

％

19.1

16.2

11.2

13.6

11.9

5.8

-2.6

17.3

13.6

14.4

Pre-tax return on assets (ROA)

％

19.2

19.0

12.9

15.6

12.4

5.7

1.8

12.2

8.5

9.0

Ratio of equity attributable to owners of the parent company

％

58.0

66.6

67.3

70.1

48.2

47.8

49.8

49.0

42.3

30.1

Payout ratio

％

26.3

32.8

43.1

32.7

33.9

68.6

-

23.3

52.6

52.0

1,206

1,277

1,328

1,360

2,080

2,005

1,961

1,928

2,042

1,574

Financial Data *1

Financial and Non-Financial Data

Financial and Non-Financial Data

Non-Financial Information *3
Number of employees
Percentage of female employees

％

9.0

9.4

10.4

10.5

12.0

11.7

11.8

11.5

11.6

9.9

Percentage of employees outside Japan

％

1.9

2.8

3.2

4.0

20.2

18.4

17.5

16.7

21.2

23.4

Electrical power consumption

1,000 kWh

24,09723,186

22,66922,96323,29247,522

46,35445,54244,50949,993CO2 emissions *4

tons CO 2

75,322

71,30277,75583,93991,494

101,540

94,54095,034

90,162

108,064

-

-

-

-

-

348

290

230

362

303

-

-

-

-

-

94.0

93.8

93.0

93.9

90.8

-

-

-

-

-

-

-

-

-

10,312

-

-

-

-

-

-

-

-

-

87.2

Number of employees in leader training

-

-

-

-

-

-

30

30

29

25

Number of employees participating in the
short-term business school placement program

-

-

-

-

-

-

-

-

-

12

Number of employees using distance learning
Distance learning participation rate％

Number of Asahi e-Learning participants
Asahi e-Learning participation rate％

Note 1Since the Group adopted the International Financial Reporting Standards (IFRS) in fiscal 2016, the financial figures for fiscal 2015 are also shown
based on IFRS.
Note 2The business of Fuji Medical Instruments Mfg. Co., Ltd. was categolized as non-consolidated business in fiscal 2019. As a result, the revenue andoperating income figures for fiscal 2018 and 2019 reflect this change.

40

CORPOR ATE REPORT 2020

Note 3
The annual non-financial information is compiled as of March 31.
Note 4
Until fiscal 2014, the CO2 emissions pertain to those of all Group companies in Japan. Starting in fiscal 2015, the emissions pertain to those of all Group
consolidated subsidiaries worldwide, as of March 31 of each year.

AS AH I H O L D ING S

41