INT E GR AT ED REPORT 2021

Innovation&
Challenge

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

Prec ious Metals

Precious Metals BusinessI n t r o d u c t i o nvarious industries. By recovering and providing gold, silver, platinum,

S egments

E-Scrap
Precision
Cleaning

Catalyst

palladium and other precious metals indispensable to modern manufacturing,■ Revenue ■ Operating Profit■■(billion yen)

171.0

180
160

Business
Fields

we are contributing to the effective utilization of resources and the

113.8

120

15.9

15

Plating
Treatment

24.7

24.0

25

Dentistry

2019

2020

Result2021

Result(FY)

Forecast

Jewelry

Palladium

Palladium

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

PalladiumGold-silver-palladium alloys are themain materials in dental prostheses
such as crowns and inlays, and thepercentage of precious metal content
varies by type. Customers suchas dental clinics and laboratories
provide us with waste containing
these metals and we recycle them.
We offer high-value recovery with
our own system for integrated
management of collection, assay
and reporting.

PalladiumGold

Plating Treatment(manufacturers)
Plating solutions

Assay report (precious metals content analysis)

Catalysts(dismantlers / brokers)
Unused and waste catalysts

ReturnDentistry(dental clinics / dental laboratories)
Removed crowns and processing waste

Jewelry(purchasers, manufacturers, and distributors)

Jewelry
Since precious metal plating is an
excellent way to prevent corrosionand enhance electrical conductivity,
it is used in various applications
from industrial to decorative
products. Utilizing a proprietary
electrolytic precious metals recovery
system, we recover and recycle
the precious metals remaining inplating solutions. We also return therecovered materials to customers
in the form of the precious metalcompound of their request.

24

PlatinumJewelry and processing waste

SilverPlatinum

Palladium

We collect and recycle precious
metals from jewelry and ornamentsthat are no longer needed as wellas precious metal scrap generated
at each stage of the manufacturing
process from purchasers,
manufacturers, and processors. In
addition to accurate analysis, weoffer high-quality precious metal
ingot products, while also returning
raw materials to manufacturing andprocessing company customers.

FinishingGold

SilverMelting and moldingGoldElectronics / semiconductor
manufacturing equipment parts, etc.

Separation and extraction(manufacturers)

We strive to ensure the quality ofequipment used by customers intheir electronic component andsemiconductor manufacturing
processes by regularly and precisely
cleaning them. Customers entrust
us with their equipment parts, andwe perform stripping and recovery of
precious metals adhering to them.
The recovered precious metals are
returned to the customers uponrequest.

Plating Treatment

Collection

Assay

Palladium(Manufacturers, dismantlers, and brokers)

Discarded electronic substrates andprocessing scrap

Pre-treatment

Platinum

E-Scrap

Precision Cleaning

Dentistry

SilverWe have deployed manufacturing operations in Japan and elsewhere in Asia that enable the most efficient recovery of
precious metals and carry out optimal processing of recyclable materials depending on the different characteristics andadmixtures in the business fields where we collect materials. Furthermore, we accurately meet customer needs by fully
utilizing optimal methods and efficient refining facilities depending on the type of precious or rare metal.

Inspection

Precision Cleaning

Rhodium

Automobiles are equipped withcatalytic converters to detoxify
harmful substances in exhaustgas, and precious metals such as
palladium and platinum are used inthese devices. We use our originaltechnologies to recycle precious
metals from automotive, chemicaland other catalysts converters.

Electronic substrates used inpersonal computers, smartphones
and home appliances contain gold,
silver and palladium. We collectmanufacturing process scrap andelectronic substrates from usedproducts. We then put them throughvarious processes such as crushingand sorting to recover and recycle
precious metals. Our precise sampling
and advanced analysis techniques are
just some of the strengths we offer.

Gold

Collecting and Recycling Precious Metals
Platinum(precious metals
purchasers)

SilverCustomers

Gold

Catalysts

Customers (waste providers)

E-Scrap

Precious Metals
Businessdevelopment of industry.

144.8

140

Introduction to Segments

The Group collects and recycles scrap containing precious metals fromtoPrecious metals
market Sale
Trading companies
Manufacturers, etc.

Sale

Main Profit Drivers for the Precious Metals Recycling Business
The main profit drivers are stable refining fees and income from yield differentials (“free metal”).
Category

Profit Driver
Refining fees

Precious metals
recycling

Yield differential (difference
between actual yield andcontracted yield = “free metal”)

I m p ac t on Profi t
Refining fee income increases along with the amount of material collected.

The unit price for refining fees is higher for materials that require difficult pre-processing. This means the average
unit price rises along with the proportion of items that require difficult processing.

The volume of “free metal” expands when the actual yield climbs due toimprovements in technical capabilities and processes.

Income from “free metal” increases in line with rising market prices.

ASAHI HOLDINGS

25

Precious M etals

Precious Metals BusinessIn tr odu c t i o nt o

S e g m e n t s

We have been expanding our precious metals recycling operations in Asia since 1994, focusing on dental and electronics
waste. We have done this by developing business models tailored to local market conditions while utilizing the technology
we have developed in Japan. Furthermore, with the addition of the Asahi Refining businesses to the Group in March 2015,
we have expanded our operations to North America.

In North America, we mainly refine gold and silver raw materials produced by mining companies, and we are proud of ourrefining volume, which is among the largest in the world. We also are striving to develop new services using our refining
business as a platform, while responding to the diverse needs of our customers with financial services and high-valueadded products.

ASAHI G&S
ASAHI
G&S
SDN.
SDN.
BHD.
BHD.

Asahi Refining
Asahi
Reﬁning
USA
USA
Inc.

Asahi Refining
Asahi
Reﬁning
FloridaFloridaLLC

設立 ： 1994年
Incorporated:
1994
Location:
Malaysia
所
在 地Penang,： マレーシア・ペナン州
Numberemployees:
8
従業 員of：
8名
Precious 宝飾分野
metalsBusinessline:
事業内容 ：
電子材料、
recycling from electronic
からの貴金属リサイクル
materials and jewelry

設立 ： 2015年
Incorporated:
2015
Location:
USA所
在 地Utah,： 米国
・ユタ州
Numberemployees:
126
従業 員of：
126名
Businessline:
Goldand silver refining
事業内容 ：
金・銀の精錬

設
立 ： 2019年
Incorporated:
2019
Location:
所
在 地Florida,： 米国・USA
フロリダ州
Numberemployees:
47
従業 員of：
47名
Businessline:
Goldand silver product
事業内容 ：
金・
銀製品加工
processing

Upstream設
立 ： 2015年
Incorporated:
2015
Location:
Canada
所 在 地Ontario,： カナダ
・オンタリオ州
Numberemployees:
159
従 業 員of：
159名
Businessline:
Goldand silver refining
事業内容 ： 金・銀の精錬

Financialservices

Normally, it takes about a weekfrom the arrival of raw materials
to the return of the recycled
product. Asahi Holdings alsooffers "advance trading" toprovide the recycled product in ashorter time frame. We are also
meeting the various financing
needs of our customers byleveraging our unique capacity to
produce large, stable quantities
of precious metals products atworld-class refining facilities.

Refining
Business

Downstream

設
立 ： 2006年
Incorporated:
2006
Location:
South
Korea
所
在 地Chungju,： 韓国忠州（チュンジュ）市
Numberemployees:
33
従業 員of：
33名
Businessline:
Precious電子材料分野
metals事業内容 ：
歯科材料、
recycling from dental
からの貴金属リサイクルand electronic waste

Raw material
receiving

Asahi Refining
Asahi
Reﬁning
CanadaCanadaLtd.

創業 ： 1952年
Established:
1952
Incorporated:
1964
設
立 ： 1964年
Location:
City, Hyogo,
所 在 地Kobe： 兵庫県神戸市
Japan
従 業 員 ： 812名
Number of employees: 812

Product return

アサヒプリテックAsahi Pretec Corp.

Carbontreatment

Activated carbon is used as an adsorbent
by mining companies to perform
preliminary separation of gold from goldore. We collect the used carbon for proper
processing. While difficult to process,activated carbon is a valuable material, andit can be used to adsorb harmful elements
such as mercury. We remove mercury
from the used activated carbon and thenrecover the remaining precious metals.

Precious Metals
Business

Asahi Pretec Korea Co., Ltd.
韓国アサヒプリテック

Customers (waste providers)

North American Refining Business

Introduction to Segments

Global Expansion

Minted
items

Green
gold

We are focusing on supplying high value-added
products such as minted items including coins andsmall bars, as well as green gold produced fromrecycled metal.

(As of March 31, 2021)

Product return

Precious Metals Recycling Business in Asia
Asahi Pretec Korea
ASAHI G&S

Has 35% share of dental materials market

Main Revenue Drivers for the Refining Business in North America

Strengthened capacity with plant renovation in March 2020

In addition to refining fees, which are a stable source of revenue, we are expanding related businesses by using refining
as a platform, such as revenues from financial services and processed products.
Category

Business model

Customers(Electronics and jewelry industries, anddental facilities)

Rawmaterialdelivery

Payment

26

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

Analysis,refining, andproduct creation
Gold, silver, palladium,and platinum

Refining
business

Sales

Market, etc.
Relatedbusinesses

Profit Driver

Impact on Profit

Refining fees

Refining fee income increases along with the volume of incoming raw materials (doré).

Yield differential (difference
between actual yield andcontracted yield = “free metal”)

The volume of “free metal” expands when the actual yield climbs due to improvements
in technical capabilities and processes.

Income from “free metal” increases in line with rising market prices.

Financial revenue (advance
trading, etc.)

Income increases when the period of advance delivery is extended.
Income increases when metal procurement costs fall, and the interest rate spread expands.

Value-added product revenue(minted products, etc.)

Income increases along with the brand value of our value-added products.

The unit fee cost does not change over short term because contracts are long-term.

Income increases when interest rates rise in advance delivery contracts with mines.

Income increases along with the market demand for value-added products.

ASAHI HOLDINGS

27

Precious M etals

Precious Metals Businesst o

S e g m e n t s

Introduction to Segments

R&D System

In tr odu c t i o nSolving Social Issues Through Business Activities

Technical Research Center
Pursues Original R&D

R&D
We anticipate the needs of our customers and strive to create new products and business byapplying our large body of elemental technologies and developing new technologies.
● Technology for separating and refining precious and rare metals● Environmental preservation and resource recycling technology● Precious metals molding and refining technology

Refining Technology
In addition to wet precious metals refining technology, which is particularly effective for recycledmaterial processing, the Group is developing dry precious metals refining technology effective
for the primary raw material processing it is performing in North America. By advancing andcombining both wet and dry refining technologies, we are creating effective precious metals
refining techniques for handling all kinds of raw materials.

Release Technology
In order to collect precious metals adhered to the surfaces of parts and jigs, etc., used in the manufactureof electronic components and semiconductors, the Group is developing technology to chemically andphysically exfoliate precious metals safely and reliably without damaging the parts and jigs.

● Depletion of precious metal resources● Environmental destruction during mining● Human rights and labor issues related to mining● Money laundering and terrorism financing risk

Precious Metals
Business

We conduct proprietary research and development
and analytical technology improvement in the fieldsof recycling of precious metals and rare metals anddetoxification and recycling of industrial wastes.
We established the Technical Research Center inKobe High-Tech Park to serve as our R&D hub. We
are looking to take even greater strides forward as
a company that contributes to society by improving
quality and technical innovation.

Social issues relating
to the Precious Metals
Business

Contributing to the SDGs
Leveraging precious metals recycling
to turn consumption into production,transforming waste into precious metal
resources

Contributing to industrial sustainability
by continually improving our highly
efficient and high-quality precious
metals recycling technologies

Helping to preserve terrestrial
ecosystems, forests, and other land-based
resources by expanding precious metals
recycling, instead of mining

Promoting peaceful, inclusive societies
by practicing responsible precious
metals management and transparent
procurement

Contributing to sustainable water use by practicing precious metals recycling without contaminantdischarge
Helping to protect human rights and prevent child labor in high-risk regions such as conflict zones
Helping to prevent climate change by supplying recycled resources with low CO2 emissions
Promoting high levels of sustainability by collaborating with other companies

Assay
The Asahi Holdings Group’s core assay function supports a diversity of corporate activities
using the latest assay equipment and high-level assay technology. In addition, we play animportant role in maintaining and enhancing trust with the Group’s customers.
● Development of new assay technology ● Technical guidance for assay groups at eachplant and sales office ● Purity assay of precious metals products● Environmental analysis of issues such as factory wastewater discharges● Environmental measurement certification

Assay Technology
The Group is developing assay techniques using X-ray and inductively coupled plasma (ICP) opticalemission spectrometry with the aim of conducting rapid and accurate transactions with customers.
We are upgrading our precious metals analysis at sites in and outside of Japan, including Asahi Refining.

Engineering
Using cutting-edge technology, experts from each business area design, produce, construct,and provide maintenance of facilities at subsidiaries in and outside Japan, helping to support
safe and stable operation of the facilities.
● Design, production, construction, and maintenance of facilities and buildings● Maintenance control of existing facilities● Installation and maintenance of precious metals collection facilities for our customers● Support for installation of robotics and IoT for equipment

28

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

Priority SDG-Related Goal

Priority SDG-Related Goal

Expand precious metals recycling

Supply precious metals in ways that arefriendly to people, society, and the environment

About one-fourth* of the world's gold supply comes fromrecycling. Recycled precious metals have minimal impact
on the environment because they are not mined. They also
help promote sustainability because they can be repeatedly
reused. Recycling is an important way to ensure the stablesupply of precious metals needed in many fields.
By fiscal 2030, we aim to achieve total annual recyclingof 410 tons of four elements: gold, silver, platinum, andpalladium. As recycling emits less CO2 compared to mining
and refining, achievement of this recycling target will also
yield a CO2 reduction effect of 1.465 million tons-CO2. (*Seepage 38 to 39 for details.)* From GFMS Gold Survey 2019

While precious metals are indispensable to many industries, various
social issues have also arisen relating to mining, production, anddistribution. Businesses that procure and supply precious metals
must ensure they are not making these issues worse. The goldand silver produced by the Asahi Holdings Group are deliveredin ways that are friendly to people, society, and the environment.
1
We meet the responsible sourcing guidelines of the LBMA* andthe strict standards for RJC certification. Going forward, we willcontinue to promote business activities and initiatives that consider
ethical, social, and environmental concerns, while fulfilling our
responsibilities by supplying precious metals.
*1. LBMA: London Bullion Market Association

Gold and silver with a purity of 99.99% or more produced by Asahi
Pretec and Asahi Refining are certified as LBMA Good Delivery
Bars, while platinum and palladium with a purity of 99.95% or more
2
produced by Asahi Pretec are certified as LPPM* Good Delivery Bars.
*2. LPPM: London Platinum & Palladium Market

ASAHI HOLDINGS

29

Environm ental Preservation

Environmental Preservation Business
The companies of the Asahi Holdings Group meet the diverse needs oftheir customers by leveraging the unique technologies they have developedof various waste materials. As experts in waste disposal, we are helping
to solve global environmental problems and playing a key role in building
sustainable recycling-oriented societies.

Waste oil and sludge

Government
and public
offices■ Revenue ■ Operating Profit■■(billion yen)

Educational
institutions

250

Hospitals,
clinics, etc.

200

20.7

20.0

19.0

150

Research
institutions

Glass andsash
manufacturers

100

Chemicalmanufacturers

4.4

50

4.3

3.8

40

Research
institutions /laboratories

Glass

S egments

30

Plant
manufacturers

Other
manufacturers

2019

2020

2021

ResultResultForecast(FY)

Business Models for the Environmental Preservation BusinessAsahi Holdings offers proper processing of waste from various industries, including detoxification and recycling ofdifficult-to-handle materials. In addition, we are developing consulting sales across Japan based on our multiple
business models.

Environmental
Preservation
Business

Waste reagentsBusiness Fields

toIntroduction to Segments

over the decades in their respective fields to detoxify and properly dispose

I n t r o d u c t i o nBusiness partners(factories, laboratories, hospitals, government offices, universities, high schools, etc.)

Customer consultation
The Group collects reagents for disposal
from educational and research institutions.
They are packed one by one for collection,
confirming that they are stored in propercollection containers. Chemical content
analysis is performed for any unidentified(poorly labeled) reagents to determine
the appropriate processing method
before disposal. Even small quantities of
miscellaneous wastes that are difficult tohandle are also processed properly.

Based on analysis results, waste oils
from factories are mixed and adjusted
to achieve the optimal composition,
before being recycled as alternative
fuels. Meanwhile, sludge is recycled as
raw materials for cement after adjusting
content and moisture and then kneadingthem. The aim is to ensure and maintainthe quality of all recycled materials.

Wood waste

Waste fire-proof bricks

Large amounts of scrap wood are
generated by the demolition of buildings
and other sites. We collect and shred thismaterial into wood chips, which is used
for fueling biomass power generation
plants or for making particleboard.

30

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

Fire-proof bricks are used as
refractories to line glass furnaces, kilns
and incinerators. Waste bricks generated
by the demolishing of such facilities andperiodic repair work are collected andcarefully sorted. Recyclable items arereused as paving materials and fireproof bricks.

Plate glass is collected from glass andsash manufacturers, and glass bottles
from municipalities. The collected glassis screened and pulverized at our own
facility, and recycled as high-quality glass
cullet. This is sold to manufacturers andreused to make window glass, glass
bottles, or home insulation.

Waste acids, alkalis and sludge(inorganic/organic)

Waste acids, alkalis, and sludge are
generated by a wide range of industries,
and their properties are diverse,
including inorganic and organic.
Liquid waste is collected by a vacuum
truck, subjected to neutralization anddewatering processes, then treated withmicrobes, before being discharged into
the public sewer system. The residual
sludge is recycled as a raw material forrefining or composting, etc.

Providing a wide range of solutions that meet customer needs, from waste
collection to transport and disposal

Collection, transport, and proper
processing

Effluent, waste oil, sludge, waste reagents, glass,waste fire-proof bricks, waste wood, etc.

Consulting

Arrangement of disposal destination, etc.

ASAHI HOLDINGS

31

Environment al Preservation

Environmental Preservation BusinessIn tr odu c t i o nt o

S e g m e n t sGroup Network

The Asahi Holdings Group provides one-stop support for all inquiries regarding industrial waste disposal. We
provide a wide range of solutions from collection and transportation to disposal through an experienced sales teamthat extends across our group network. We hold relevant licenses from authorities across Japan and can handle awide variety of materials.

We have a system for swift and proper waste disposal based on the necessary licenses for collection, transportation,and intermediate treatment of most types of industrial waste and specially controlled industrial waste. In addition,
our outstanding technology for detoxifying industrial waste offers optimal solutions for environmental preservation.

O ne- s t o p
Collection andtransportation

Disposal

Kobe Plant
Waste
generator

Consultation●Detoxification of liquidGroup sales
representative

waste and sludge●Oil-water separation ofwaste waterGroup plant

Kawaguchi Plant●Neutralization and dewatering

PartnerGroup plant

process of inorganic liquid
waste

Kitakyushu Plant/Hibiki Plant●Incineration of various waste

Environmental
Preservation
Business

Arrangements

Industrial waste

Introduction to Segments

Providing One-Stop Solutions

Ibaraki Plant●Sludge recycling●Fermentation and composting●Waste plastic crushingof organic sludge and animal/
plant wastes

JW Glass Recycling●Recycling of glass

plate and bottles

Partner plant

Fuji Rozai

Ijuin Plant/Taniyama Rinkai Plant●Regular●Incineration of various waste

maintenanceand demolition
work for glass
manufacturingkilns and waste
incinerators●Detoxification of liquid waste

Processes of Industrial Waste Disposal and Recycling

Samukawa Plant

Collection and transportation

Intermediate treatment

Recycling■Industrial waste■ Neutralization

Landfill

18 articles including waste
acids, waste alkalis, waste oil,sludge, waste plastics, etc.

■ Condensation and■Specially controlledindustrial waste		

17 articles of hazardous waste,such as waste acids, waste
alkalis, waste oil and sludge,
which contain specified toxic
substances, and infectious
waste■ Incineration●Concreting process for burnt

residues, dust and sludge
generated by incinerators, etc.

Totsuka Plant

Yokohama Plant●Neutralization and dewatering●Recycling of sludge, waste oil andprocess of organic liquid waste

precipitation

wood chip●Sorting, recycling of other waste(As o f Apr i l 1, 2021)■ Dewatering

Licenses Acquired by the Group (As of April 1, 2021)■ Cyanide decomposition■ Oil-water separating

Industrial waste collection and transportation license

All prefectures, 9 government ordinance cities and core cities

Industrial waste disposal license

13 prefectures, 7 government ordinance cities and core cities

Specially controlled industrial waste
collection and transportation license

All prefectures, 9 government ordinance cities and core cities■ RoastingSpecially controlled industrial waste disposal license

10 prefectures and 7 government ordinance cities■ Fermentation and composting

Excellent industrial waste
management company certification*

Asahi Pretec: All prefectures and government ordinance cities
Affiliate in Japan: 28 prefectures, 3 government ordinance cities and core cities■ Neutralization, mixing■ Sorting, compressing,

Waste oil recycling facility, Asahi Pretec Yokohama Plant

crushing■ Kneading■ Concreting■ Grading

Incineration facility, Asahi Pretec Kitakyushu Plant* In April 2011, Japanese laws concerning industrial waste management were revised, creating a new recognition system for excellent industrial waste management companies.
Prefectures and government ordinance cities select companies which meet their strict standards in areas such as operational implementation capacity and experience. All Group
companies are pursuing this certification, aiming to ensure that customers can feel totally confident about doing business with the Group.

32

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

ASAHI HOLDINGS

33

Environment al Preservation

Environmental Preservation BusinessIn tr odu c t i o n

Generating Power from Wastet o

S e g m e n t sSolving Social Issues Through Business Activities

Social issues relating
to the Environmental
Preservation Business

Introduction to Segments

Waste-to-energy is a power generation method that uses the heat generated from waste incineration. It produces hightemperatures and high-pressure steam that turns a turbine and generates power. By taking advantage of the energy
released during waste incineration to produce electricity, the Group can reduce the amount of fuel used, thereby reducing
CO2 emissions accordingly. The Group constructed a waste-to-energy power plant in the city of Kitakyushu. By achieving
advanced and highly efficient heat recovery, we are helping to prevent global warming and build a low-carbon society.

● Contamination by hazardous waste● Impact on land and ocean ecosystems● Pollution of water resources

TurbineGenerator

Powergeneration

Contributing to the SDGs

Garbagepit

Exhaust gas
treatment
equipment

BoilerSmokestack

Realizing a sustainable society byrecycling and detoxifying waste

Securing the sustainability of water
resources by detoxifying discharge
such as waste acids and alkalis

Preventing marine pollution by properly
treating liquid and plastic waste

Preventing pollution of land
environments by detoxifying waste, andextending the lifespan of final disposalsites by promoting recycling

Advancing technological innovationfrom the standpoint of further
improving resource utilization efficiency
for various waste products, andpromoting global sustainability

Achieving sustainable cities and othercommunities by properly managing
waste

Waste

Incineration ash

Digital Transformation in the Environmental Preservation Business

Environmental
Preservation
Business

Garbage crane

Helping to prevent climate change by reducing CO2 emissions from waste-to-energy power generation

Digital platform

Promoting high levels of sustainability by collaborating with other companies

Waste treatment matching
Waste treatment consulting
Sustainability reportCollection and transport route optimization

Waste treatment performance levelingBusiness process streamlining
Electronic manifest cooperation
Electronic contracts

Waste generator

34

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

Collection and transport
providerIntermediate treatment
providerPriority SDG-Related Goal

Expand proper industrial
waste disposal
Due to the increased economic activities ofmass production, mass consumption and massdisposal, a shortage of final waste disposalsites has become a social issue in Japan.
In recent years, the problem of microplastics
polluting the oceans and harming marine life
has also become an international concern.
This is often a result of the improper disposalof plastic materials, which end up in rivers andflow out to sea.
The Asahi Holdings Group disposes all
wastes properly and aims to increase its total
volume of properly handled industrial waste
to 500,000 tons per year by fiscal 2030. We
also plan to expand the detoxification andrecycling of industrial waste, while helping tosolve various social problems and promote asustainable society.

ASAHI HOLDINGS

35

Asahi Holdings Sustainability Policy

Asahi Holdings Material Issues

Sustainability Vision

Issues That Asahi Holdings Must Address
1 Expand Precious Metals Recycling
We will expand and promote precious
metals recycling globally in order to makemore effective use of limited global
resources.
Goals Total amount of recycled precious metals: 410 tons in FY2030 (1.5 times FY2015)
Effective reduction of CO2: 1.465 million tons in FY2030 (1.5 times FY2015)

Business
growthSolutions tosocial issues

The Asahi Holdings Group promotes sustainability-related initiatives by developing measures that focus on priority SDG-related
goals, monitoring the achievement of set targets, and communicating these initiatives both internally and outside of the Group.
These efforts are discussed and determined by the SDGs Promotion Committee, headed by the Representative Director andPresident, which steers the system.

We will work to reduce CO2 emissions
group-wide by implementing energy
saving activities at each site, switching to
next-generation vehicles, and switching to
low CO2 emission power plans.

Board of Directors

Consolidated subsidiaries in Japan
Consolidated subsidiaries outside Japan

Group Executive
Committee

Human resource development and contributing to the SDGs

Technology
Support &Production
Management
Department

Departments

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

P35
・
P39

P39
・
P41

Goals CO2 emissions from energy sources such as electricity and gasoline:
Reduced 50% compared to FY2015 in FY2030

SDGs Promotion Team36

We will strive to ensure proper treatmentof waste as a waste disposal expert andwork to help build a recycling-oriented
society.

4 Reduce CO2 Emissions

Oversight: Representative Director and President

Corporate Planning &Communications Department

P29・
P42-43

3 Expand Proper Industrial Waste Disposal

Goals Amount of proper industrial waste disposal:
500,000 tons in FY2030 (1.6 times FY2015)

SDGs Promotion Committee

Human Resources andGeneral Administration Department

We will contribute to responsible
management of precious metals by
expanding the supply of precious metal
products while protecting theenvironment and human rights. We will
use precious metal-containing scrap andraw materials free from conflict minerals.

Asahi Holdings
Sustainability Policy/
Material Issues

Sustainability Promotion System

P29・
P38-392 Supply Precious Metals in Ways That Are Friendly to People, Society, and the Environment

Business materiality

The Asahi Holdings Group has developed its
business activities over a long period of time
based on its purpose of "A Total Commitment toProtecting the Natural Environment and Preserving
Resources." Our business activities are ourcontribution to sustainability, and we are achieving
both business growth and solutions for the issues
our societies face.
Today, as action is required of all of society,including corporations, we will further our mission
by proactively working to achieve goals that we set
for those issues to which we can make significant
contributions toward solutions.

5 Enhance Work-Life Balance and Employee Diversity
We will strive to enhance job satisfaction by
improving the system to help diverse humanresources to succeed within the Group. This
will be done by reforming working styles,
implementing health and productivity
management, and promoting diversity.

P44
・
P45

Goals Achievement rate for rest intervals of at least 11 hours: 100% every year
Usage rate of Holidays for Refreshment (three consecutive days or more): 100% every year
Percentage of women in managerial positions to all woman employees: Equal to men by the end of FY2030
Percentage of employees with disabilities: At least 2.5% by the end of FY2030

6 Encourage and Support SDG-Related Activities
We will encourage and support employee activities outside the Group’s main
business areas that contribute to SDG achievement, including individual andgroup volunteer activities. This initiative is called “Asahi Holdings SDG
Activities.”

P46

ASAHI HOLDINGS37

ENVIRONMENTESG Initiatives: Environment

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

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

Expand precious metals
recycling

CO2 Emissions Reduction from Precious
Metals Recycling

Recycling

The CO2 emissions reduction benefit from precious metals
recycling by the Group is calculated as the emissions fromits precious metals recycling deducted from the emissions
that would have been produced by refining the same amountof precious metals from mined raw material. By expanding
our precious metals recycling, we will also be indirectly
contributing to CO2 emissions reduction.

Precious Metal bullion

Recycling(The CO2 emissions reduction figure does not indicate the level of emissions directlyreduced by the Group.)

Products

Raw materials for recycling(tons-CO2)

Recycling

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
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

Emissions fromrefining mined
raw material

Emissions fromrecycling

Industrial waste

Reference: Calculated from “Life Cycle Assessment
Data for Computer Products, Mobile Phones andMixed Waste [homepage on the internet], UnitedStates Environmental Protection Agency

Environmental benefit of precious metals recycling

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.

Products

INPUT

Waste

PlantsEmissions
reduction
benefit
543 thousand
tons-CO2

Energy264,730m

Heavy oil48.41 million kWh / year

888 kL / year

Kerosene

Light oil

357 kL / year

3,029 kL / year

Gasoline

Urban gas

968 kL / year

2.98 million m / year

Chemicals

3

LPG

Up compared to the previous year

25 t / year

Down compared to the previous year

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

All figures are for FY2020

We will strive to ensure proper treatment of waste as awaste disposal expert and work to help build a recyclingoriented society.

Liquid waste

Glass and ceramic waste

85,000 t/year

18,000 t/year

SludgeOther (Waste reagents, waste plastic, etc.)

105,000 t/year

93,000 t/year

Waste oil

18,000 t/year

Total

319,000 t/year

Reduce CO2 emissions

Effluent

Electricity

Expand proper industrial
waste disposal

Priority SDG-Related Goal

E ne rg y So urc e s

38

22,075t

Business sites,
research lab, etc.

Priority SDG-Related Goal

Amounts of proper industrial waste disposal
FY2020 results

Recyclingoldings
oupt

ENVIRONMENT

When CO2 savings are expressed as the amount ofgreenhouse gases absorbed by forests, it is equal
to 22,828 hectares of forest (an area one-third thesize of Lake Biwa)

Asahi H
Gr

210

Amount of precious metals recycled in FY2020

ESG Initiatives: Environment

Approximately
one-tenth

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

Emissions factors used for calculation
Refining
mined rawmaterial

We will expand our precious metals recycling globally topromote more effective use of limited resources.

16,324t
Water

367,576m3

CO2

102,674 t

3

OUTPUTBy fiscal 2030, we aim to reduce CO2 emissions fromenergy sources by 50% compared to fiscal 2015.

CO 2 E m is s ion s : FY2 0 2 0 Re sul t s
Compared to
FY201512%
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, 2021. Data fordeconsolidated subsidiaries are subtracted retroactively, while subsidiaries that werepreviously non-consolidated has been added retroactively, going back to the fiscal year
when the subsidiary became consolidated.

ASAHI HOLDINGS39

ENVIRONMENTESG Initiatives: Environment

Environmental Management

Climate Change Prevention Initiatives

Environmental management structure

ISO 14001 Certification
In August 2018, we obtained ISO 14001 certification for oursites in Japan, including those at subsidiaries. As of March
31, 2021, we have achieved certification for 32 sites at 6
companies. Going forward, we will continue to focus on
maintenance and improvement activities with an emphasison extending certification to all sites.

Management

Priority SDG-Related Goal

Reduce CO2
emissions

CO2 Emission Trends■Non-energy-derived CO2 emissions■Energy-derived CO2 emissions (in Japan)■Energy-derived CO2 emissions (outside Japan)■Energy-derived CO2 emissions (Group basis for 2015 onward)(1,000 tons CO 2)

General Internal Auditors

60

Chief Environment Control Manager
40

General Environment Committee

40.7
14.7

ISO Office

57.1

Supervisors

Supervisors

Environment Preservation
Administrator
Environment Committee
Departments
ISO 14001 certificate

Environmental Management Promotion System

Promoting Green Purchasing
The Group strives to help solve serious environmental problems. This includes climate change, which is caused by emissions
from mass production, mass consumption, and mass disposal. To help build a sustainable world and protect the global
environment, we have established guidelines for green purchasing that comply with Japan's Act on Promotion of Procurementof Eco-Friendly Goods and Services by the State and Other
Entities (Green Purchasing Law), which encourages the use of
products and services that help reduce environmental impact.
Recommended products(1) Products contributing to forest protection approved by the Programme
for the Endorsement of Forest Certification (PEFC)(2) Products that are certified by the Japan Environmental Association
for their low environmental impact and usefulness for environmental
conservation(3) Products that meet the criteria for specific procured products under
the Green Purchasing Law(4) Products listed as eco-friendly by the Green Purchasing Network

Going forward, the Group will continue to actively pursue green
purchasing. We will carefully conserve limited resources and reduce
waste generation, thereby helping to build a recycling-oriented
economic system.

14.5

2015

(Base year)

22.7

2018

64.7

14.5

48.4
23.8

38.0
2.2

21.3

2019

2020

(FY)

In fiscal 2019, the Group's total CO2 emissions were up approximately 3% from fiscal 2015. This does not include the emissions attributed to
one site outside Japan that joined the Group in fiscal 2019, as it was not included in the total for the base year.
Breaking down this total, energy-derived CO2 emissions in Japan were further reduced thanks to energy-saving activities at each site andconsumption of self-generated power. This included high-efficiency power generated using exhaust heat from new waste incinerators. Even
though emissions by sites outside Japan remained about the same, the worldwide total dropped by approximately 12%.
On the other hand, CO2 emissions generated through industrial waste incineration were up approximately 13% from fiscal 2015. 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.
The Group has set the reduction of energy-derived CO2 emissions as one of its Priority SDG-Related Goals. We have been striving to
reduce these emissions by 26% by fiscal 2030, compared to fiscal 2015. In response to the Japanese government raising its greenhousegas reduction targets for fiscal 2030, the Group has also bumped up its reduction target to 50% by fiscal 2030 compared to fiscal 2015. The
Group's energy-derived CO2 emission sources in Japan are electricity and fuel consumption in factories, fuel consumption in commercial
vehicles, and electricity consumption in offices. Outside Japan the sources are electricity and fuel consumption in factories and offices. Our
non-energy-derived CO2 emissions come from the incineration of industrial waste.
Asahi Holdings pays particular attention to energy-derived CO2 emissions and is working hard to achieve its target. At our facilities, we
strive to save energy during the operation of air conditioning, lighting and vehicles, and we review our choices concerning electric power
providers. At new facilities, we pursue structural energy saving and energy generation, such as power generation from waste heat recovery.
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, 2021. 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
Energy-derived emissions: Calculated based on the amounts of electricity and fuel consumed at each site (emissions in Japan calculated based on the Act on Promotion of Global WarmingCountermeasures, and the Act on the Rational Use of Energy)
Non-energy-derived emissions: Calculated based on the amount of industrial waste incineration

ENVIRONMENT

Every year we develop Company-wide Environmental Goals based on our Environmental Policy, which sets out ourenvironmental preservation philosophy. According to the above-established purposes and goals, each ISO 14001 certified sitein 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 withenvironmental 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 isalso assigned for each site in order to ensure thorough implementation of environmental initiatives.

0

68.0

ESG Initiatives: Environment

Internal Auditors

15.3

20
26.0

Supervisors

40.0
2.8

39.1

Issuing Green Bonds for Renewable Energy Adoption
Green bonds are issued to raise funds for a green project with environmental preservation benefits, such as renewable energy or othermeasures to combat global warming.
On March 31, 2020, Asahi Holdings issued the first green bond in the Japanese non-ferrous metal industry to raise the funds necessary
for the adoption of environmentally friendly facilities and equipment. Under the Group's purpose, "Totally Committed to Protecting
the Natural Environment and Preserving Resources," we are making a direct contribution to the global goal of ensuring a sustainable
planet. Going forward, the entire Group will continue to work toward achieving a sustainable world.
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.

※PEFC：Programme for the Endorsement of Forest Certification

40

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

ASAHI HOLDINGS

41

SOCIETY

ESG Initiatives: Society

Initiatives for Responsible Precious Metals Management
The Asahi Holdings Group is engaged in global procurement of the materials from which it recovers precious metals, which areessential for manufacturing products such as electronics, auto parts, and jewelry. We have established a management system thatcomplies with guidance issued by relevant international organizations. As a member of the precious metals supply chain, we promote
Responsible Precious Metals Management. This is an important part of fulfilling our social responsibilities for compliance with laws,
respect for international norms, human and labor rights, health and safety, environmental preservation, fair trade and ethics.

What is Responsible Precious Metals Management?
Responsible Sourcing of Minerals
The Dodd-Frank Act was enacted in the United States in 2010 out of concern that mineral resources were being used assources of funds for armed groups causing conflict and human rights abuses. The act regulates the use of conflict minerals
from the Democratic Republic of the Congo and nine surrounding countries. Companies that are publicly listed in the US andwhich procure tin, tantalum, tungsten, and gold (3TG) are required to carry out due diligence, survey country of origin, andreport on the use of any conflict minerals.
The Organization for Economic Co-operation and Development (OECD) has issued Due Diligence Guidance for Responsible
Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. This OECD Guidance sets out a five-step framework
for companies: (1) establish strong company management systems; (2) identify and assess risks in supply chain; (3) design
and implement a strategy to respond to identified risks; (4) carry out independent third-party audits; and (5) report annually on
supply chain due diligence.
The Conflict Minerals Regulation also came into effect in the European Union in January 2021. It applies to importers ofmaterials containing 3TG into the EU from conflict and high-risk areas, and they are now required to carry out due diligence intheir supply chain. As a result, responsible sourcing of minerals is expanding globally.

Based on the Group's corporate philosophy and code of conduct, the "Asahi Way," we have set out a Responsible Precious
Metals Management Policy at Asahi Pretec, and a Precious Metals Procurement Policy at Asahi Refining. We conduct due
diligence for suppliers and materials of precious metals in accordance with the LBMA and LPPM guidances, and we practiceresponsible precious metal procurement.
The compliance status is audited annually by a third party, and then reported to the LBMA and LPPM. These reports aredisclosed on our website along with the assurance reports issued by the auditing organizations.
To fulfill one of our Priority SDG-Related Goals, “Supplying precious metals in ways that are friendly to people, society, andthe environment,” we work to maintain the Asahi brand as a trusted presence that reassures customers all over the worldthat we practice highly transparent procurement and traceability of raw materials as certified by third parties, and that our
precious metals products are made with consideration for human rights and the environment.

Asahi Pretec’s Responsible Precious Metals Management Policy ➡ https://www.asahipretec.com/responsible-sourcing/➡ https://www.asahirefining.com/corporate-responsibility/

Based on our Responsible Precious Metals (RPM) Management
Policy, we have established the Responsible Precious Metals
Management Committee (RPM Committee) to oversee ourRPM management across the Company. The President of Asahi
Pretec has ultimate responsibility for our RPM management,
and we have appointed a Compliance Officer, who is chairmanof the RPM Committee, to manage our RPM. The RPM
Committee, chaired by the Compliance Officer, adopts andrevises policy, decides on important measures, implements
management system, monitors operation status, provides
training to employees, and reports to senior management.
We consider any transactions that adversely impact our
precious metals supply chain to be high-risk and do not
engage in such transactions. Any transactions considered
to be risky are deliberated by the RPM Committee, andadditional due diligence is carried out as necessary to enhance
the management system. In fiscal 2020, no transactions
considered to be high risk were identified.

Ultimate
responsibility

Representative
Director andPresident

RPM Committee

Compliance
Officer(Administration)(RPM members)
General managersof collection,
manufacturing andsales departments

Business unit
managers

Plant managers(Promoters)
Staff of collection,
manufacturing andsales departments

Staff of business
units and sales
offices

Staff of plants

SOCIETY

Asahi Holdings Group’s Action

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

* RJC: A non-profit organization that promotes transaction transparency andresponsible corporate behavior in the jewelry industry. This includes businesses
that handle precious metals and diamonds, from mines to retailers.

ESG Initiatives: Society

Refiners who meet criteria in areas such as quality of products, assaying capability, and responsible sourcing, and which havepassed testing procedures, are accredited by the London Bullion Market Association (LBMA) for gold and silver or the London
Platinum and Palladium Market (LPPM) for platinum and palladium as good delivery refiners. Asahi Pretec has received Good
Delivery accreditation for gold, silver, platinum and palladium, while Asahi Refining (USA and Canada) has received the samefor gold and silver. These accreditations ensure the companies are trusted by customers in the global market.
To maintain Good Delivery status, in addition to regular quality and technical testing procedures, good delivery refiners
are required to be audited annually by a third-party for the LBMA Responsible Gold and Silver Guidance, and the LPPM
Responsible Platinum and Palladium Guidance in compliance with OECD Guidance.
In addition to avoiding conflict minerals, human rights abuses, money laundering, terrorist financing, and fraudulent
transactions, the LBMA Guidance also now requires refiners to fulfill their social responsibilities related to the environmentand sustainability.
Asahi Pretec and Asahi Refining (USA and Canada) are also accredited by the Responsible Minerals Initiative (RMI) as
conflict-free gold refiners that comply with the Responsible Minerals Assurance Process (RMAP).

42

Utilizing its sales network that covers all of Japan as well as other sites in Asia, Asahi Pretec collects and recycles recyclable
materials containing precious metals from sources such as e-scrap, plating treatment, precision cleaning, catalysts,
dentistry and jewelry. By recycling gold, silver, platinum, palladium, and other precious metals that are essential for modern
manufacturing, Asahi Pretec is contributing to the effective use of resources and the development of industry.
Asahi Pretec brand is recognized worldwide for its gold, silver, platinum and palladium products. In addition to LBMA and
LPPM Good Delivery accreditation, its products have also been accredited as a deliverable brand by futures exchanges suchas the Osaka Exchange (OSE) in Japan, as well as the Commodity Exchange (COMEX) and the New York Mercantile Exchange(NYMEX) in the United States.
In July 2019, Asahi Pretec became the first Japanese refiner to obtain the Code of Practices (COP) certification from the
Responsible Jewellery Council (RJC)*. In July 2021, the company also obtained the Chain of Custody (COC) certification.
The RJC COP is a standard for the code of practices such as
corporate ethics, legal compliance, human rights, labor rights,
environmental conservation, etc. The RJC COC is a standard
for the transparency and traceability of raw materials. Asahi
Pretec’s operations meet the RJC’s strict standard forcode of practices on ethics, human rights, society, and theenvironment, due diligence and traceability, and the company
will continue to fulfill its responsibilities as a member of the
precious metals supply chain.

Responsible Precious Metals Management System

Responsible Precious Metals Management

Asahi Refining’s Precious Metals Procurement Policy

Asahi Pretec’s Action

Supply Chain Management
Our due diligence process is carried out using a risk-based approach addressing the risks in the precious metals supply chain,such as conflict, compliance with laws, human rights, labor rights, health and safety, and the environment. By communicating with
suppliers and conducting know-your-customer questionnaires, we understand the transaction and origin of materials, and we
assess risks of suppliers and materials. We sent a consent form to all of our suppliers, requiring them to confirm that they consent
to our RPM Management Policy, and we ask them for their understanding and cooperation in responsible precious metals sourcing.
We establish relationships of trust with our suppliers and conduct continuous due diligence to mitigate supply chain risk.
(1) Implementation of due diligence for suppliers (risk assessment based on information such as nature of business, location of business,
type of materials, county of origin)(2) Communicating our Responsible Precious Metals Management Policy to suppliers(3) Recording of transaction and management of traceability(4) Providing training to employees on Responsible Precious Metals Management and due diligence(5) Monitoring of implementation status and reviewing by management(6) Conducting annual independent third-party audit

ASAHI HOLDINGS

43

SOCIETY

ESG Initiatives: Society

Work-Life Balance and Diversity

Human Resource Development Initiatives

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

In a market environment that is changing faster than ever before, the Asahi Holdings Group needs to help meet the needsof society. While constantly pursuing portfolio optimization and efficiency, it must also keep pace with changes such as the
progress of today’s digital transformation (DX). In order for the Group to continue growing globally amid all kinds of major
external changes, it is essential to have a foundation that allows the organization to readily respond to these changes.
Ultimately, human resources will determine the strength of that foundation, so we are determined to develop our people to thefullest extent.
We expect our employees to continually transform their thinking and pursue growth. The Group will do its utmost to support
the growth of its employees as they take on challenges.

Priority SDG-Related Goal

Enhance work-life balance and promote diversity
SDG-Related Goal

Thorough implementation of the rest interval
system (at least 11 hours rest)
We have introduced a system to ensure that employees get at least 11
hours of rest, from the time they leave work, to the time they start work
the next day. We are actively striving to promote employee health, which
is an asset for the company.

Raising the usage rate of Holidays for
Refreshment (at least 3 days off)
This type of leave provides three consecutive days or more, and theemployment rules also allow leaves of five consecutive days. The aim
is for employees to reinvigorate their minds and bodies, while realizing
stimulating work styles.

Increasing the percentage of women in
managerial positions
The aim is to create a company where women can play an active role in
the workplace and fully demonstrate their abilities. We are working to
improve our workplaces and raise career planning awareness, so thatboth men and women can reach their full potential.

The company is working to create jobs that are challenging andrewarding for employees with disabilities, thereby allowing them to use
their abilities and experience in the workplace.

FY2020 Results

100% achievement each fiscal
year

99.9%

100% achievement each fiscal
year

99.9%

Equivalent to the percentage ofmen in managerial positions by
the end of fiscal 2030

Percentage of managers
among women: 2.4%
(Percentage of managers
among men: 19.7%)

2.5% or more employment rateof persons with disabilities by
the end of fiscal 2030 (statutory
level: 2.3%)

1.9%* Target for Group companies in Japan

Human Resource Development

44

Othe rAsahi e-Learning

Training for new hires

Short-Term Business School Placement

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

This is our own internal e-learning program, which is part of efforts to sharein-house knowledge across the Group. By using teaching materials andcontent created by each department, the aim is for participants to deepen theirknowledge of company rules and operations, while improving business skills.

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

The Group reviewed its evaluation and compensation system, which
had been based on age, seniority and past achievements. It has now
introduced clear, easy-to-understand qualification requirements andcompensation standards, whereby evaluation and compensation arealways based on performance and abilities. Regardless of age, employeeswith talent and ability now have the opportunity to reach higher positions
earlier in their career, which can be a driving force for growth.

The Group provides opportunities to employees for further
learning and challenge-taking, so that they can play activeroles in global operations, while also supporting employee
growth for success in a range of new fields. Support isprovided for language testing, and manager training
programs are offered outside Japan in collaboration withoverseas sites. Trainee systems are actively taken on atoverseas sites as well.
The Group has also launched the Asahi "Intrepreneur*"
Program (A.I.P). This is an internal venture system forindividual employees and teams with new business ideasthat have a high probability of success. The program gives
these participants the authority and resources to take on
the challenge of turning their ideas into profitable ventures.
After a team proposes a new business idea to senior
management and it is deemed promising, the Intrepreneurs
are able to work on commercializing the idea for a certain
period of time, and launch the business on their own. This is
a way for the Group to discover and develop future business
managers internally.

(2) Promotion of Diversity and Inclusion
The Group is prioritizing the promotion of diversity and inclusion.
This means developing workplaces where diverse employees are
accepted and treated equally. By recognizing, respecting, andaccepting each individual's differences, we aim to create a newstrength that fuels the Group's growth. Specifically, we are focusing
on raising hourly performance, by eliminating unnecessary overtime
and recognizing employees who work more efficiently. In thisway, we seek to create workplaces that do not require employees
to work long hours and do not penalize employees with family
responsibilities, such as child or senior caregivers.
The Group will also provide more support for employees tomaintain work-life balance. We are promoting flexible work styles,
sharing information on childcare, nursing care and health programs,
and providing thorough maternity leave guidance for expectant
mothers and their workplace superiors. Career advancement
support will also be enhanced by improving career training for
women. Support will also be given to employees with home care
responsibilities, since this is an issue that many more employees
are expected to face as society becomes increasingly older.

* "Internal entrepreneur" (employee entrepreneur)(3) Multifaceted Evaluation for All Executives

Asahi Small
Group (ASG)
Activities

Business school
attendance (based on
employee applications)Short-termbusiness school
placement

Selective
leadertraining

Rank-bas e d e ducatio nDistance learning

Step-uptraining

Training for
new executive
hires
Training
beforestart towork

Basic-level Mid-level Upper-level
positions
positions positions

Professional andspecialist positions

Ed u ca tion for n ew hires(4) Opportunities for Learning and Challenge-Taking

SOCIETY

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 todevelop human resources who enjoy taking on challenges, using systems that fairly and impartially evaluate each employee’s
contribution to business performance.

(1) Ensuring Performance and Ability-Based Pay

ESG Initiatives: Society

Promoting the employment of people withdisabilities

Targets

With a total of approximately 2,300 employees serving as
evaluators, multifaceted evaluations are conducted every year
for all executives group-wide (approximately 180 in fiscal 2020).
The evaluation criteria include not only business performanceand KPI achievement, but also leadership, passion for change,
human resource development, ethics, and organizational
management. Based on the results of their individual
multifaceted evaluations, each executive is interviewed
by the directors and the relevant executive officers. The
executives receive direct feedback including specific actions
and approaches they can adopt to improve their management
skills, giving them clear guidelines for further growth.
Through these interviews, top management is committed toassessing each executive and promoting the improvement of
their individual management skills.
ASAHI HOLDINGS

45

SOCIETY

ESG Initiatives: Society

Relationship with Society
The Asahi Holdings Group has relationships with various stakeholders. We place special emphasis on maintaining
good communication with stakeholders and strive to build strong relationships with them.

Main Initiatives
Ethical Sustainable Jewelry
In recent years, ethical and sustainable jewelry has been gaining attention as products made frommaterials that are friendly to people, society, and the environment. As a company, we can help solve
various environmental and social problems by supplying this kind of jewelry.
Sustainable jewelry is also very suitable for use as special gifts such as engagement rings. This isbecause consumers appreciate knowing that their piece of jewelry has not negatively impacted theenvironment or contributed to other social problems.
In recent years, famous jewelry brands have launched products based on a sustainability concept,
while brands specializing exclusively in ethical and sustainable jewelry have also emerged. The new
trend is even being featured in women's magazines. Asahi Pretec supports the ethical and sustainablejewelry movement by supplying precious metals that are friendly to people, society and the environment.

Strengthening Cooperation with Outside Stakeholders
The role of the Group in the circular economy is much like the veins of the human circulatory system, and this role will
become even more important in the future. Since our business brings back waste resources from local communities
and companies for reuse, we must further strengthen our relationships with those stakeholders. Accordingly, the Group
engages in various initiatives, such as those organized by national and local governments as well as industry groups, while
conducting its own social contribution and sponsorship activities.

Asahi Jewelry Journal
Nowadays, all companies are expected to promote environmental, socialand governance activities. The Group also believes it must take its own
particular measures such as Responsible Precious Metals Management,
and widely share information about them. Asahi Pretec launched the
Asahi Jewelry Journal in June 2020 for its partners in the jewelrybusiness. Published on a regular basis, it covers SDG initiatives and otherrelevant topics.

Asahi Clean Project

Participating in Social Contribution Activities

Serving Our Customers
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.

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 information and technology, or results in improper benefits. These
rules are strictly enforced to ensure compliance with fair business practices and corporate ethics.

Quality Assurance System
At Asahi Pretec, quality assurance is positioned as the core department, and it
works closely with the sales, technology development, and product manufacturing
departments. It shares customer feedback and market trends with thesedepartments and cooperates with them to improve customer satisfaction. In addition,
the Asahi Holdings Group maintains ISO 9001 certification to ensure 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.

Procurement Initiatives
Asahi Pretec has implemented a CSR Procurement Policy. It pertains to the
procurement of secondary materials such as chemicals and consumables usedin precious metals recycling and the environmental preservation business.

46

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

Other social contribution activities
Support for the activities of nonprofits like Médecins du Monde Japon and the Japan Cleft Palate Foundation
Food and toy donations
Nippon Foundation donations through vending machines, etc.

SOCIETY

Fair Trade Measures

As a corporate citizen, the Group carries out social contribution activities
rooted in local neighborhoods and environmental preservation. The
initiatives are promoted in various ways and are important for remaining
an organization that supports local communities.
As part of its social contribution activities, Asahi Pretec participates in
the TOOTH FAIRY project, which is jointly run by the Nippon Foundationand the Japan Dental Association. The project promotes the collection
and recycling of gold, palladium, and other precious metals that have
served their purpose at dental clinics across Japan. Profits obtained from selling the resulting recycled precious metals
are used for social contribution activities such as support for children with intractable diseases and their families inJapan and building schools in Myanmar. Asahi Pretec provides support for these activities by recycling the precious
metals donated to the TOOTH FAIRY project.

ESG Initiatives: Society

The Asahi Holdings Group encourages and supports
activities in which employees contribute to the SDGs
as members of society, such as volunteer activities by
individuals and groups, as "Asahi Holdings SDGs Activities."
On April 1, 2021, the "Asahi Clean Project" was started topromote activities specializing in cleaning. We are engaged
in cleanup activities not only around our offices and sales
offices, but also in various areas.

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.

Pandemic Measures
The Asahi Holdings Group has set up a COVID-19 response headquarters headed by the CEO, to prevent the spreadof the new coronavirus among employees and other stakeholders. To ensure that customers can use the Group's
services more safely and securely, we have been implementing various safety measures.
In addition to disinfecting hands and wearing masks, we are conducting regular coronavirus antigen tests for
employees. The Group will continue to take thorough infectious disease control measures and ensure reliable
delivery of services and products.

ASAHI HOLDINGS

47

GOVERNANCE

ESG Initiatives: GovernanceCorporate Governance

Adherence to Japan’s Corporate Governance Code

Basic Corporate Governance Approach

Organization Design

Practicing effective corporate governance is a key part of corporate social responsibility. Good governance enhancesmanagement 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 andresponsibilities of a publicly listed company, we aim to keep growing corporate value by maintaining a corporate governancesystem that can quickly respond to changes in the business environment while always securing compliance.

Board of Directors

Corporate Governance Structure
General Shareholder’s Meeting

Appoint/Dismiss

Appoint/Dismiss

Appoint/Dismiss

Board of Directors(with a majority of independent outside directors)

Executive Director

Appoint/Dismiss/Supervise

Audit/Supervise

Audit and Supervisory
Committee Director(with a majority of independent
outside directors)

Inquire/Reply

The Board of Directors comprises executive directors who are knowledgeable
concerning their respective business, technical or administrative divisions,as well as outside directors with various types of expertise essential tocorporate management. To further enhance the objectivity and independenceof the Board of Directors and ensure that discussions are active andeffective, the majority of members are independent outside directors. The
board consists of two executive directors and five Audit and Supervisory
Committee members, including four independent outside directors, two ofwhom are women, for a total of seven board members. All directors share
their opinions actively and freely on important subjects such as the Group’s
management strategies and business plans.

Maintaining an Internal Control System

Outside Directors

As part of corporate governance enhancement, we are engaged ina continuous process of analyzing and evaluating the effectivenessof the entire Board of Directors as well as in the investigation of
improvement measures. The analysis and evaluation for the fiscal
year ended March 2021 has been completed.

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, theyalso attend the executive and management committee meetings ofGroup companies. As part of their wide-ranging activities, the outside
directors share their opinions from an independent point of view.
In addition, in order to further strengthen cooperation between
independent outside directors and the executive directors andto establish a system that enables smooth communication andcoordination, we appointed one of the independent outside directors
to serve as the head of the independent outside directors.

(with a majority of
independent outside
directors)

AssistCollaborate

Secretariat of
Audit
Group Executive
Committee

Collaborate

Internal Audit
Department

Support /Educate /Guide /
Monitor

Safety Management
Meeting

Departments and Group Companies

Internal audit

Collaborate

A Nominating Committee, consisting of one internal director and two
independent outside directors, as well as a Compensation Committee,
have been established as advisory bodies to the Board of Directors.
The chairpersons of both committees are appointed from among theindependent outside directors. The aim is to further enhance corporate
governance by 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
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.

Evaluating the Effectiveness of the Board of Directors

1. Analysis and evaluation method for the fiscal year
ended March 2021
A questionnaire consisting of multiple evaluation items in six
categories was distributed to all directors, including directors
who are Audit and Supervisory Committee members. Responses
were obtained from all directors, and the evaluation results
were reported to and examined by the Board of Directors.
Questionnaire evaluation categories
1) Discussion of main strategies, such as corporate strategy
2) Creating an environment that promotes appropriate risk taking
3) Execution of highly effective oversight4) Appropriate communication with shareholders
5) Composition of the Board of Directors
6) Management of the Board of Directors

2. Summary of evaluation results for the fiscal year
ended March 2021
The evaluation results are summarized as follows,
and they indicate satisfaction in all six categories.
(1) Discussion of major strategies, such as corporate strategy⇒Discussion was sufficient.
(2) Creating an environment that promotes appropriate risk taking⇒The system allows the risks associated with businessexecution to be fully discussed and business was
executed with an appropriate level of risk taking.
(3) Execution of highly effective oversight⇒ Oversight was highly effective.
(4) Appropriate communication with shareholders⇒ Appropriate communication was achieved.
(5) Composition of the Board of Directors⇒ The composition is appropriate.
(6) Management of the Board of Directors⇒Sufficient discussion time was taken and discussions
were substantial.

3. Measures to improve effectiveness

GOVERNANCE

Internal Control
Promotion Meeting

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

Under Japan’s Companies Act, Asahi Holdings has elected to
be a company with an Audit and Supervisory Committee, andhas four independent outside directors.
This structure has strengthened the supervisory function of
the Board of Directors. It also delegates important executive
decisions to the executive directors for quicker decisionmaking and improved management efficiency.

Nominating and Compensation Committees
Group Risk
Management
Department
Collaborate

48

Acco unt i ng
A udi t ors

Representative
Director

Direct/ReportAiming to reinforce internal controls, we have established an Internal Audit
and Supervisory Committee within the Board of Directors. It includes four
independent outside directors, and it cooperates with our Audit Department
and other related departments.
The Audit Department assesses the appropriateness and effectivenessof operations, while also auditing compliance with laws, regulations, andcompany rules. It advises and makes recommendations to each department,
and promptly reports to senior management. In addition, trained staff ineach department conduct internal audits based on an annual plan andreport their findings to the Internal Control Promotion Meeting.

ESG Initiatives: Governance

Audit and Supervisory Committee
Nominating Committee
Compensation Committee

The Asahi Holdings Group adheres to all the principles of Japan’s Corporate
Governance Code formulated by the Tokyo Stock Exchange. We submit Corporate
Governance Reports, which provide investors with 78 points of governanceinformation in a standard format, to the Tokyo Stock Exchange, and these areavailable on our website.
In addition, we have formulated the Asahi Holdings Corporate Governance Policies
and are implementing each one to continuously enhance corporate governance.

By taking the following measures, we will further improve theeffectiveness of Board of Directors management and strive tokeep strengthening corporate governance.
Make appropriate advance preparations to ensure evenricher discussions on corporate strategy, etc.
Increase opportunities to discuss the SDGs as an importantmanagement issue and expand constructive dialogue withexternal stakeholders
Expand discussions on risk issues related to important
projects and response measures

ASAHI HOLDINGS

49

GOVERNANCE

ESG Initiatives: GovernanceCompliance and Risk Management
In order to appropriately manage various apparent and latent risks relating to corporate activities, the Group identifies
risks comprehensively, evaluates them, and implements mitigation measures. By implementing risk management, we
strive to prevent risk materialization and minimize losses in the event of an incident.

Director Skill Matrix
General executive
management skills

Industryknowledge

Mitsuharu Terayama●●

Tomoya Higashiura

●

●

●

●

●

Name
Director and Chairman

Representative Director, President & CEO

Yuji Kimura

Director, Chairman of
the Audit andSupervisory Committee

Kyoko Kanazawa
Director, Audit andSupervisory
Committee Member

Yoshinori Hara
Director, Audit andSupervisory
Committee Member

Miyoko Kimura
Director, Audit andSupervisory
Committee Member

Independent
OutsideDirector

International
experience

Independent
OutsideDirector●

Independent
OutsideDirector●

Independent
OutsideDirector

Sales

Technology andinnovation

●

●

Legal

Finance andaccounting

●

●

●

●

●
●
●

●

Mitsutoshi Kagimoto

Administrative
experience

●

●

●

●

Amane Kojima●●

Hiroyuki Nakanishi●●Nobuo Tajima

●

●

●

●

Shohei Yasuda

●

●

●

●

Director, Audit and Supervisory
Committee Member
Corporate Officer and CFO
Corporate Officer
Corporate Officer
Corporate Officer

●
●

●
●

●

R e m une r at io n fo r D ire c t o rs
Policy for Determining the Details of Director Compensation
Remuneration policy determination

Overview of the remuneration policy
Director compensation must be within the limits approved by the General Meeting of Shareholders. The Board of Directors
determines the specific director compensation policy within these limits, based on the recommendation from the Compensation
Committee, which plays an advisory role. The remuneration system is designed to motivate directors to improve the Group'sbusiness performance. Their remuneration consists of basic compensation, bonuses, and performance-linked stock-based
compensation. However, directors who are Audit and Supervisory Committee members receive only basic compensation.

Total Amount of Director Remuneration

Directors excluding those who are Audit and Supervisory Committee members (outside directors only)

Total (outside directors only)

163（ 0 ）38（ 18 ）201（ 18 ）Total amounts by type of remuneration (million yen)
Monetary compensation
Fixed compensation

86（ 0 ）
38（ 18 ）124（ 18 ）Performance-linked compensation

54（ 0 ）0（ 0 ）
54（ 0 ）

Non-monetary remuneration

Number ofapplicabledirectors(names)22（ 0 ）0（ 0 ）
22（ 0 ）

4（ 0 ）
4（ 3 ）
8（ 3 ）

Monetary compensation

Notes

1. The amount paid to directors (excluding those who are Audit and Supervisory Committee members) does not include employee salaries for directors who also serve in employee positions.
2. The indicator used for performance-linked compensation (bonus and performance-linked stock-based compensation) is consolidated operating profit, which is considered to be the most suitable management index for
profits earned by the main business. The fiscal 2020 result was 25,126 million yen. The performance-linked compensation (bonuses) is calculated by first multiplying the consolidated operating profit for the relevant fiscal
year by a certain ratio to calculate the total amount for all directors including the directors of Asahi Holdings subsidiaries. The amounts for each director are then determined according to the weighting for each position andthe degree of individual contribution to business performance.
3. Performance-linked stock-based compensation is a non-monetary compensation system in which Asahi Holdings shares are awarded to eligible directors according to their position and performance target achievement
rates. Since the purpose is to provide incentive to improve corporate value over the medium and long term, allocation points are awarded according to the achievement rate of the performance target, namely consolidated
operating profit each fiscal year. Those who were enrolled as of May 31, 2021 after the completion of the 8th Medium-Term Management Plan are eligible for the award. At the 9th Annual General Meeting of Shareholders
held on June 19, 2018, continuation of the performance-linked stock-based compensation system was approved. The shareholders also approved the number of allocation points to be awarded to directors in their positions
for the three years from fiscal 2018 to 2020, not including outside directors, part-time directors, and Audit and Supervisory Committee members. The performance-linked coefficients are provided below.

Performance target
achievement rate

50

Performance-linked
coefficient

100%

1.0

50% or more

0.5

Less than 50%

0

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

The following statement is part of our Corporate Governance
Policies, and is understood by all our executives andemployees. "We will never have any relationship, including
business relationships, with anti-social forces which
threaten the social order and sound corporate activities. In
the event of an illegal request, we will take a firm attitude
and respond to it organizationally in accordance with thelaws and internal rules."Business Continuity Management (BCM)
Various factors such as large-scale disasters entail the riskof impairing the functions needed for business continuity.
As an action plan to achieve quick restoration of missioncritical functions even after a disaster, we created abusiness 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.

Information Security

Anti-Corruption Measures
As part of our Group Philosophy, the Asahi Way, we have aten-point Code of Conduct. One of these points states that
"we refrain from providing or receiving meals or gifts inpursuit of personal benefit." Group employees ensure thatthey do not engage in any transactions that could resultin bribery, such as providing some benefit to a business
partner or competitor for personal gain. Moreover, Asahi
Pretec, which manages the Group's Precious Metals
Business, has established a Responsible Precious Metals
Management Policy. It has declared and implemented apolicy of avoiding transactions that could result in money
laundering or fraudulent transactions in the precious
metals supply chain. Asahi Pretec also conducts employee
education on this topic on a regular basis.

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

To quickly identify and resolve problems such as unlawful
and unjust behavior, we have set up the Asahi Hotline. All
employees in and outside of Japan can directly report toeither an internal desk or an external law firm anonymously.
We take corrective actions to address the reported mattersafter investigation, without revealing the identity of thedisclosing or disclosed parties.

GOVERNANCE

Directors who are Audit and Supervisory Committee members (outside directors only)

We consider compliance a priority issue in delivering
fair business activities and ensuring legal complianceand high ethical standards. Particularly, operations
related to appropriate processing of wastes 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 ofeach and every employee through education and mutualcommunication, along with rules and manuals related tocompliance.

Internal Reporting System (Whistle-Blowing System)
Total amount of
remuneration(million yen)Classification

Avoiding All Interactions with Organized Crime and other Anti-Social Forces

ESG Initiatives: Governance

The Board of Directors requests the volunteer Compensation Committee, which consists of three board members, including
two independent outside directors, to draft a recommendation for remunerating the directors of Asahi Holdings. Based on thisrecommendation, the Board of Directors determines a policy detailing remuneration for each director.

Compliance

4. At the 6th Annual General Meeting of Shareholders held on June 16, 2015, the monetary compensation for directors (excluding those who are Audit
and Supervisory Committee members) was established at a total of no more than 200 million yen per year. (This does not include, however, employee
salaries for directors who also serve in employee positions.) The number of directors (excluding those who were Audit and Supervisory Committee
members) at the end of that general meeting was five.
5. Also at the 6th Annual General Meeting of Shareholders, the amount of monetary compensation for directors who are Audit and Supervisory
Committee members was established at a total of no more than 100 million yen per year. The number of directors who were Audit and Supervisory
Committee members at the end of that general meeting was four.
6. At the 9th Annual General Meeting of Shareholders held on June 19, 2018, continuation of the performance-linked stock-based compensation system
was approved. In addition to the above monetary compensation level, the amount and details of remuneration was determined for Asahi Holdings
directors (excluding directors who were Audit and Supervisory Committee members or outside directors) who were in their positions for the three
years from fiscal 2018 to 2020. At the end of the general meeting, the number of directors (excluding directors who were Audit and Supervisory
Committee members or outside directors) was five.

ASAHI HOLDINGS

51

GOVERNANCE
Group-Wide Oversight and Auditing by Directors
Asahi Holdings has established a system to appropriately
oversee and audit Group companies from every angle toensure these businesses are always operating properly.
Important executive decisions for Group companies arecarefully deliberated and made by the Group Executive
Committee, attended by directors of Asahi Holdings, Inc.,and its Group companies. Particularly important matters
are submitted to the Asahi Holdings Board of Directors fordetermination. Directors who are Audit and Supervisory
Committee members also participate in the management
meetings of Group companies and actively provide input.
The management situation and sales activities of Group
companies are regularly reported to the Board of Directorsof Asahi Holdings. In addition, the company's Audit
Department audits Group companies on a regular basis
and whenever required, and the resulting audit reports
are shared with the Audit and Supervisory Committee andrelevant departments.

Improving Group Risk Management

Group Risk Management Department Created
On April 1, 2021, a Group Risk Management Department
was created to properly identify potential risks in theGroup's business execution processes and businessstructures. It was established to evaluate risks in businessactivities and implement mitigation measures acrossthe Group. The department implements compliance risk
management for each business unit and strives to ensure
appropriate governance in collaboration with the Audit
Department. We have also established a complianceand safety system under which we hold Internal Control
Meetings and Safety Management Meetings regularly toprevent risks from materializing.

Strengthening Risk Management in the North
American BusinessIn our North American business, we are working toestablish a model to expand our business into relatedareas, using refining as a platform. In particular, we
will continue to aggressively promote financial services
such as "advance trading," and we will also develop
new financial products. To do this, we will first need toestablish strong mechanisms to ascertain and monitor
credit risk of business partners. In addition, identity
verification (know-your-customer / KYC) procedures are
becoming increasingly important to prevent the fundingof organized crime and terrorism. Accordingly, we will
work to strengthen credit risk management of business
partners and enhance systems at individual sites as we
promote the expansion of our North American business,
which is one of our growth drivers.

Director Profiles

Mitsuharu Terayama (Born March 10, 1940)

Tomoya Higashiura (Born January 26, 1961)

ProfileProfileApr 1964 : Joined Kuraray Co., Ltd.
Jul 1973 : Joined Asahi Pretec Corp.
May 1981: Appointed Representative Director and President of
Asahi Pretec Corp.
Apr 2009 : Appointed Representative Director and President of
Asahi Holdings, Inc.
Jun 2014 : Appointed Representative Director, President andChairman of Asahi Holdings, Inc.
Apr 2018 : Appointed Representative Director, Chairman of
Asahi Holdings, Inc.
Jun 2020 : Appointed Director and Chairman of 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 and President of
Asahi Pretec Corp.
Apr 2017 : Appointed Representative Director and President of
Asahi Americas Holdings, Inc.
Apr 2018 : Appointed Director of Asahi Pretec Corp. (to present)
Apr 2018 : Appointed Representative Director and President of Asahi Holdings, Inc.
Jun 2020 : Appointed Representative Director, President &CEO of Asahi Holdings, Inc. (to present)

Au d it a n d S u p e r vis o r y C o mmit t e e M e mb e r s

Yuji Kimura (Born July 23, 1955)

Kyoko Kanazawa (Born October 11, 1965)

ProfileProfileApr1979 : Joined the Environment Agency
Jul 2006 : Appointed General Manager of Industrial Waste
Management Division, Waste Management and Recycling
Department of the Ministry of the Environment
Aug2010 : 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 Japan
Oct2014 : Appointed Executive Director and General Manager of Tokyo
Office, Global Environment Centre Foundation (to present)
Jun 2017: Appointed Independent Outside Director (serving as Audit andSupervisory Committee Member) of Asahi Holdings, Inc.
Jun 2021: Appointed Head of Independent Outside Director (serving as Chairmanof Audit and Supervisory Committee) 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 Independent Outside Director(serving as Audit and Supervisory Committee Member)of Asahi Holdings, Inc. (to present)

Yoshinori Hara (Born July 21, 1958)

Miyoko Kimura (Born June 12, 1964)

ProfileProfileApr1983 : Joined NEC Corporation
Aug1990 : Became a Visiting Researcher, Stanford University
Jul 2004 : Supervised NEC’s Kansai Research Laboratories
Apr2006 : Professor of Graduate School of Management,
Kyoto University (to present)
Apr2018 : Dean of Graduate School of Management, Kyoto University
Jun2019 : Appointed Independent Outside Director (serving as
Audit and Supervisory Committee Member) of Asahi
Holdings, Inc. (to present)

Apr1988 : Joined PLUS Corporation
May1999 : Joined ASKUL Corporation
Feb2010 : Appointed Representative Director and President of
ASMARU Corporation
May2017 : Appointed Chief Marketing Officer (CMO), Executive Officer,
Executive Officer of Life Creation Unit and Value Creation Center
Unit, B-to-C Company of ASKUL Corporation
Mar2020 : Appointed Director, Supervisor of Merchandising Unit, Chief
Marketing Officer (CMO), Executive Officer of ASKUL Corporation
May2021 : Appointed Director in charge of branding, designing andsupplier relations of ASKUL Corporation (to present)
Jun2021 : Appointed Independent Outside Director of Asahi Holdings, Inc.
(serving as Audit and Supervisory Committee Member) (to present)

GOVERNANCE

Mitsutoshi Kagimoto (Born June 15, 1958)

ESG Initiatives: GovernanceAs compliance is essential to maintaining trustworthy
corporate activities, the Group ensures legal complianceand thorough adherence to corporate ethics among its
members. While developing human resources that embraceinnovation and challenge-taking by continuously expanding
the types of challenges they undertake, the Group mustalso recognize the increasingly diverse needs and values ofsociety. To pursue sustainable growth going forward, theGroup must not only comply with laws and regulations, butalso enhance management of all kinds of risks.
While risk management is practiced at each businesslocation, management standard-setting and location
monitoring must be performed independently. Recognizing
this, Asahi Holdings decided to enhance its organizational
structure, by introducing a unified management framework

for the Group. The Audit Department was placed underthe Audit and Supervisory Committee to ensure a fully
independent organization for confirming and monitoringbusiness execution. We have also set up the Legal
Department to bolster the framework for minimizing various
legal risks at business locations. In this way, we have beenfurther enhancing our risk management system.

ESG Initiatives: Governance

ProfileApr1984 : Joined Teijin Limited
Feb2006 : Joined Asahi Pretec Corp.
Mar2009 : Appointed Assistant General Manager of Kitakanto
Office of Asahi Pretec Corp.
Dec2009 : Appointed Representative Director and President of
JW Glass Recycling Co., Ltd.
Apr2013 : Appointed General Manager of Purchasing Divisionof INTER CENTRAL, INC.
Oct2015 : Appointed General Manager of Audit andSupervisory Committee Secretariat of Asahi Holdings, Inc.
Jun2021 : Appointed Director of Asahi Holdings, Inc. (serving as
Audit and Supervisory Committee Member) (to present)(As of June 15, 2021)

52

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

ASAHI HOLDINGS

53

Financial and Non-Financial Data
Ten -Yea r F in ancial and Non-Financ i al S u mmar y← Japanese Standard IFRS →
FY

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Unit

Financial Data* 1
Revenue* 2

Billion yen

151.1

96.4

94.3

111.4

119.4

106.8

115.8

110.4

135.6

164.8

Operating profit* 2

Billion yen

11.2

7.5

9.6

10.5

6.1

2.0

13.8

13.4

18.0

25.1

Pre-tax income

Billion yen

10.8

7.3

9.9

9.7

5.9

1.8

13.4

12.4

17.7

26.1

Income for the year attributable to owners of the parent company

Billion yen

5.9

4.5

6.0

5.8

2.9

-1.2

9.4

9.0

9.8

25.7

Total capitalBillion yen

38.9

42.0

46.5

51.0

49.0

44.8

64.4

67.8

69.2

97.9

Total assets

Billion yen

58.3

62.3

66.1

104.9

101.6

89.0

131.5

160.3

230.0

244.8

Capital investment

Billion yen

1 .6

1 .3

1. 1

1. 5

1. 7

3. 0

3. 1

5. 7

4.2

5.3

Depreciation

Billion yen

2 .3

2 .1

1. 8

1. 8

2. 4

2. 3

2. 3

2. 3

2.8

2.5

R&D expenses

Billion yen

0 .3 6

0 .3 5

0. 37

0. 44

0. 50

0. 51

0. 51

0. 45

0.35

0.32

Cash flow from operating activities

Billion yen

11.3

-0.4

14.1

9.4

14.3

3.3

-13.4

-20.6

4.5

-33.4

Cash flow from investing activities

Billion yen

-2.3

-2.1

-1.1

-29.6

-1.9

-2.4

-2.8

-5.6

1.9

-2.8

Cash flow from investing activities

Billion yen

-7.7

2.6

-8.0

21.4

-6.5

-6.6

29.8

18.3

0.3

24.4

Basic earnings per share (EPS)*3

Yen

91.60

69.62

91.75

88.45

43.74

-18.62135.39114.07125.12326.90Equity attributable to owners of the parent company per share (BPS)*3

Yen

599.39644.28711.26771.41745.28679.51813.60861.58879.001,244.06

Dividend per share*3

Yen

30.00

30.00

30.00

30.00

30.00

30.00

31.50

60.00

65.00

85.00

Operating profit margin

%

7.4

7.8

10.2

9.4

5.1

1.9

11.9

12.2

13.3

15.2

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

%

16.2

11.2

13.6

11.9

5.8

-2.6

17.3

13.6

1 4 .4

3 0 .8Pre-tax return on assets (ROA)

%

19.0

12.9

15.6

12.4

5.7

1.8

12.2

8. 5

9.0

11.0

Ratio of equity attributable to owners of the parent company%

6 6 .66 7 .3

70. 1

48.2

47. 8

49. 8

49. 0

42. 3

30.1

40.0

Payout ratio%

3 2 .84 3 .1

32. 7

33.9

68. 6

-

23. 3

52. 6

5 2 .02 6 .0

1 ,2 7 7

1 ,3 2 8

1, 3602,080

2, 005

1, 961

1, 9282, 042

1 ,5 7 4

1,510

Non-Financial Information* 4
Number of employees
Percentage of women in the workforce

%

9 .4

1 0 .4

10. 5

12.0

11. 7

11. 8

11. 5

11. 6

9 .9

9 .0

Percentage of employees outside Japan

%

2 .8

3 .2

4. 0

20.2

18. 4

17. 5

16. 7

21. 2

23.4

24.7

-

-

-

-

-

-

-

-

-

74

8

8

10

10

9

9

9

9

8

8

0 .0

0 .0

0. 0

0.0

0. 0

0. 0

11. 1

11. 1

1 2 .5

1 2 .5

Number of new hires
Percentage of women among new hires%

Percentage of managers among women%

Average years of employment (men)Year

Average years of employment (women)

Year

Number of directors*

5

Percentage of Board of Directors members who are women

%

10.8
8 .5
14.8
13.1

Electricity consumption

1,000 kWh

2 3 ,1 8 6

2 2 ,6 6 9

22, 963

23,29247, 52246, 35445, 54244, 509

4 9 ,9 9 3

4 8 ,4 1 3CO2 emissions resulting from energy sources such as electricity and gasoline

1,000 tons

-

-

-

-

40. 6

39. 5

39. 4

39. 1

4 0 .03 8 .0Note 3Since the Group adopted the International Financial Reporting Standards (IFRS) in fiscal 2016, the financial figures for fiscal 2015 are also shown based on IFRS.

On April 1, 2021, a stock split was conducted with a ratio of two-for-one, and the calculation is based on the assumption that the stock split was conducted at the
beginning of fiscal 2011.

Note 2The business of Fuji Medical Instruments Mfg. Co., Ltd. was categorized as a non-consolidated business in fiscal 2019. As a result, the revenue and operating profit
figures for fiscal 2018 and 2019 reflect this change.

Note 4

The annual non-financial information is compiled as of March 31.
Note 5

Financial and
Non-Financial Data

Note 1

The company transitioned to a “company with Audit and Supervisory Committees” structure in fiscal 2015. Through fiscal 2014, the figures include the number of Auditors.

54

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

ASAHI HOLDINGS

55

Group Company Structure

Corporate Group Overview
Asahi Holdings, Inc.

Asahi Holdings
Board of Directors

Audit and Supervisory Committee

Representative Director
Financial Planning Office

Audit Department

Corporate Planning & Communications Department

Audit and Supervisory Committee Secretariat

Asahi Pretec Corp.

Established: July 1952

Business Activities: Precious metals recycling, industrial waste

Incorporated: April 2009

management and other environmental preservation activities

Capital: 7,790 million yen

Representative Director: Hiroyuki Nakanishi

Representative Director: Tomoya Higashiura

Headquarters: Nissay Sannomiya Building 16F 4-4-17 Kano-cho, Chuo-

Head Office: Nissay Sannomiya Building 16F 4-4-17 Kano-cho, Chuo-ku,

ku, Kobe, Hyogo 650-0001 Japan

Kobe, Hyogo 650-0001 Japan

TEL: +81-78-333-5600 FAX: +81-78-333-5681

TEL: +81-78-333-5633 FAX: +81-78-333-5681

Sapia Tower 11F 1-7-12 Marunouchi, Chiyoda-ku, Tokyo 100-0005 Japan

Sapia Tower 11F 1-7-12 Marunouchi, Chiyoda-ku, Tokyo 100-0005 Japan

TEL: +81-3-6270-1820 FAX: +81-3-6270-1825

TEL: +81-3-6270-1833 FAX: +81-3-6270-1859

URL: https://www.asahipretec.com/ (Japanese Only)

Number of employees (consolidated): 1,510 (As of March 31, 2021)

Legal Department

URL: https://www.asahiholdings.com/english/

Precious Metals Recycling BusinessGroup Risk Management Department

Domestic Business Locations

Overseas Business Development Office
North American Business Unit

Asahi Refining USA

Research Laboratory: Technical Research Center (Kobe)
Plants: Saitama, Nagano, Amagasaki, Kobe, Technical Research Center, Ehime, Fukuoka
Business offices: Sapporo, Aomori, Sendai, Nigata, Kitakanto, Kanto, Yokohama, Kofu,
Nagano, Shizuoka, Nagoya, Hokuriku, Hanshin, Kobe, Okayama, Hiroshima, Shikoku,
Fukuoka, Kagoshima, Okinawa

Asahi Refining Florida

Subsidiaries

Asahi Refining Canada

Asahi Pretec
Board of Directors
Representative Director

ASAHI G&S SDN. BHD. (Malaysia)

Tokyo Head Office

Kobe Head OfficeSubsidiaries

Precious Metals
Business Unit

Environmental Preservation BusinessAsahi Refining USA Inc.
Asahi Refining Florida LLC

Auditors

Asahi Pretec Korea Co., Ltd.

Asahi Refining Canada Ltd.

Domestic Business Locations‌Plants: Kobe, Kitakyushu, Kitakyushu Hibiki

Precious Metals Business Division

Business offices: Sapporo, Sendai, Kitakanto, Yokohama, Shizuoka, Nagoya,
Hokuriku, Kobe, Okayama, Hiroshima, Kitakyushu, Okinawa

Jewelry Business Division

Subsidiaries

Electronics Catalyst Business Department

Japan Waste Corporation
Nihon Chemitech Logitem Co., Ltd.
Taiyo Chemical Co., Ltd.

Technical Department

Precious Metal Sales Department

JW Chemitech Co., Ltd.
JW Glass Recycling Co., Ltd.
Fuji Rozai Co., Ltd.
(As of April 1, 2021)

ASAHI G&S

Environmental Preservation
Business Unit

Asahi Pretec Korea

Share Information

JW Saitama Office

Stock Ownership,by Types of Shareholders

Environmental Preservation Business Division
Affiliated Business Management Division

JW Yokohama Office

0.10%

3.00%

Taiyo Chemical

Foreign Investors
9,889,828 shares

24.80%

Fuji Rozai
JW Glass Recycling

Major Shareholders

2.40%

Treasury Stocks
33,787 shares

Securities Firms
1,201,154 shares

JW Shonan Office

Number ofshares:39,854,344

Environmental DX Promotion Division

Individuals and Others
16,739,516 shares

42.00%

Financial Institutions
11,036,000 shares

Sales Office Management Department
Technical Research Center

Other Companies
954,059 shares

27.70%

Research & Development Department(As of March 31, 2021)

Shareholder Name

Number of
Shares Held

Shareholding
Ratio (%)

The Master Trust Bank of Japan, Ltd. (trust account)

3,045,200

7.64

Custody Bank of Japan, Ltd. (trust account)

2,428,600

6.09

Mitsuharu Terayama

887,145

2.22

State Street Bank West Client - Treaty 505234

772,800

1.93

Masamichi Terayama

742,345

1.86

Asahi Employee Stock Ownership Plan

711,800

1.78

Custody Bank of Japan, Ltd. (Trust Account 5)569,100

1.42

Custody Bank of Japan, Ltd. (securities investment trust account)

520,400

1.30

Custody Bank of Japan, Ltd. (Trust Account 6)

504,600

1.26

JP Morgan Chase Bank 385781

495,029

1.24* On April 1, 2021, a stock split was conducted with a ratio of two-for-one, and thenumber of issued shares is now 79,708,688 shares.

Production Technology & Engineering Department

Market Capitalization

Technology Support & Production Management Department■ Trading volume (shares)■ Market capitalization (yen)(1,000 shares)(billion yen)

15,000240

Human Resources and General Administration Department200

12,500Finance & Accounting Department160

10,000Information Technology Department

120

7,500

80

5,000

40

2,500
0

0
April 2015

April 2016

April 2017

April 2018

April 2019

April 2020

Group Company Structure/
Corporate Group Overview

Administration Unit

(As of April 1, 2021)

56

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

ASAHI HOLDINGS

57

Asahi Holdings, Inc.

Environmental Consideration in Printing
Paper: This report uses paper certified by FSC® (Forest Stewardship Council®) that includes fiber from responsibly