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

INDEX
25

Corporate Governance27

With Our Customers

28

With Our Communities

30

With Our Employees

35With Our Shareholders and Investors

For the Society

Corporate Governance
Under the holding company structure, the Group is committed to building a stronger group governance and driving risk management.

Corporate governance philosophy
In order to meet the expectations of stakeholders and to maximize the corporate value, we are committed to enhancing our corporate
governance with Asahi Holdings taking the initiative as a holding company. Operating companies, Asahi Pretec and Japan Waste maketimely decisions and develop operations in each specialty area in order to reinforce competitiveness and expand profitability. With
each company carrying out its functions, we will strive to achieve lasting growth and development as a corporate group. Currently, oneof the five Directors and two of the three Statutory Auditors are external corporate executives, monitoring and supervising management from an independent perspective.

● Asahi Holdings Corporate Governance Structure

Shareholders' General Meeting
Board of Directors
6 Board Member（including 1 outside director)

Accounting
Auditors

Board of Auditors

audit

Auditors(including 2 outside auditors)
audit(Independent
Auditor)collaboration

Representative Director
Group Management Strategy Meeting

Each Department of Group Companies
audit

Asahi Pretec

Japan Waste− 25 −

Internal Auditing

audit

Maintaining an internal control
systemBusiness continuity plan (BCP)
Due to various factors such as large scale disasters, there is a riskthat our Group’s functions needed for business continuity may
weaken. As an action plan to achieve quick restoration of missioncritical functions even after a disaster, we created a business
continuity plan and have carried out the following initiatives:

We have enhanced our internal control system by establishing a
structure in which the Board of Directors, Board of Corporate
Auditors, Accounting Auditors, Internal Audit Department, andInternal Control Department each works effectively to develop
regulations and implement company-wide initiatives regarding
compliance, risk management, and information management.
Additionally, Asahi Way provides codes of conduct the Group
employees should adhere to in order to perform fair and soundbusiness activities.

・Installation of power generators in major plants to supply
backup power・Suppression of peak power [use] by adjusting running hoursof plant equipment and by saving electricity in offices
・Strengthening of backup of information systems including
servers

Compliance・Decentralization of some parts of production and processing(multiple locations supplementing each other)

We consider compliance a priority issue in delivering fair businessactivities and ensuring legal compliance and 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 to always
act with a highly compliant mindset. We are conducting activities
to raise the legal compliance awareness of each and every employee through education and mutual communication, along with rules
and manuals related to compliance.

・Enhancing of earthquake resistance in equipment andfacilities
・Reinforcement of facilities to prevent leakage or diffusion ofchemicals, etc.
・Storing of drinking water and food at all Group locations (43sites)
・Maintaining a system for safety confirmation and updated
emergency contact information

Handling of Conflict Metals
With regard to the handling of conflict metals, we have set our
Basic Policies as follows, which are informed thoroughly to the
management and employees involved in relevant operations:
Basic Policy for Handling of Conflict Metals
1. We will neither purchase nor use any gold-containing materials associated with conflicts in the Democratic Republic ofCongo and its neighboring regions, any inhuman acts suchas human trafficking, slavery, forced labor, child labor, abuse,
war crimes, etc., any terrorist activities, or any fraudulent
activities such as money laundering.

IT Protection Education Program

Internal reporting system

2. We will manage conflict metals under the following five-stepframework in conformity with the OECD (Organization for
Economic Co-operation and Development) Guidance, LBMA(The London Bullion Market Association) Guidance, EICC-GeSI (Electronic Industry Citizenship Coalition, Incorporated
and Global e-Sustainability Initiative) Guidance or any otherguidance to completely exclude any conflict metals:

To quickly identify and resolve problems such as unlawful andunjust behavior, we have set up “Asahi Hotline” (internal issue-reporting program). An external law firm acts as a contact point andresponds to calls, including anonymous disclosures. We improve asystem where disclosed matters are to be investigated and corrective actions taken without revealing the identity of the disclosing
and disclosed parties.

1) Development of conflict metals management system
2) Identification and evaluation of risks across the supply
chain

Risk management

3) Development and implementation of countermeasuresagainst risks identified

To properly manage apparent and potential risks in businessactivities, we study risks from a comprehensive standpoint, against
which assessment is performed and actions taken. We are working
hard to prevent risks from arising, and to minimize losses whenrisks develop into a crisis, through the promotion of risk management.

4) Implementation of third-party audit for management
system and the state of implementation
5) Publication of this Basic Policies and reports on the state ofsuch implementation− 26 −

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

Initiatives to
Improve Customer Service● Customer Satisfaction Surveys● Fair trade initiatives

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

Our group [of companies] provides, in the Asahi Way (Page 3),“Prohibition of Acts That Compromise Fair Competition”, “Confidentiality of Supplier Information and Technology”, “Prohibition of
Inappropriate Offering/Receiving of Benefits” and other rules, toensure fair trade practices and compliance with corporate ethics.

Quality Assurance System

Our Risk Management
on Information Leakage

We hold a Quality Assurance Meeting that is led by the Quality
Assurance Division through an amalgamation of our Sales Division,
Technology Development Division, and Product Manufacturing
Division. Through this meeting we share information such as
customer opinions and market trends in our efforts to improvecustomer satisfaction.

We employ security measures features such as a lock function on
computers used by sales representatives to ensure that the computer cannot be easily operated in the unlikely event that thecomputer is lost or stolen.
Recycling Centers located in Saitama and Amagasaki acquired
ISO27001 certification in March 2011. We provide a data deletion
service as a measure to prevent information leakage in connection
with disposal of PCs and contribute to information protection
through our business activities.

In addition, in order to provide customers with products that earn
greater reassurance and satisfaction from customers, we haveacquired ISO9001 certification and strive to make continuous
improvements to our quality management system and maintenance and enhancement of quality. In March 2010, we integrated
the certifications of four bases which acquired ISO9001 certificationand started operation of a company-wide uniform quality management system. Furthermore, Asahi Pretec also makes efforts to
reduce the environmental burden while giving consideration to“green procurement” and the Restriction of Hazardous Substances(RoHS) Directive, which is a European regulations on chemical
substances.

Acquisition of
ISO 9001 approval
Asahi Pretec Co., Ltd.
Techno Center
Fukuoka Plant
Ehime Plant
Saitama Plant

Data deletion using an exclusive software

ISO9001 Certificate− 27 −

With Our Communities
As a business entity operating nationwide, the understanding and support from people in local communities areindispensible for our company. To be a company that coexists with society, as a corporate citizen, we will carryout activities that are rooted in communities in various ways.

Our Initiative Activities● Programs for making the environment clean
Since 1988, we have participated in a program to clean up Suma
Beach, the only natural beach in the Hanshin area. Organized by
the Hyogo Prefecture Industrial Waste Association, this program
has participants from local communities, businesses, schools andgovernments all working together as volunteers, and employees
from our company participate at nearby locations from where they
commute. Some employees bring their family members along andengage in the clean up while enjoying each other’s company.

● Kobe Association of Corporate Executive’s

Forest Project

We participate in “The Kobe Association of Corporate Executive’s(KACE) Forest Project”, a volunteer program organized by KACE.
This program is intended to assist efforts to develop the forests
over five years, and employees of participating companies work on
forest conservation and engage in nature walks. The program
includes volunteer activities (forest thinning and improvement
cutting) on Mt. Futatabi-san in the Rokko Mountains, and willcontinue in the future.

● Plant Tour by Kids Eco Club
Kids Eco Club is a project proposed by the Ministry of Environment
to support nurturing awareness in children about respecting theenvironment, through experiences in which they enjoy and learn
with friends about the environment.
The Asahi Pretec Kitakyushu Plant invited elementary and juniorhigh school children from Kitakyushu City Kids Eco Club, and gave aplant tour. The tour presented a good opportunity for the children
to deepen their understanding of the importance of separating
wastes and how the wastes generated in our everyday life areprocessed on a daily basis.

− 28 −

For the Society

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

©V. Dupont/Medecins Du Monde
Medical assistance by Medecins Du Monde<Major organizations that our company assists>● The 8020 Promotion

Foundation● The Japan Cleft Palate

Foundation, a Specified NPO(Provides medical assistance to children withoral handicaps such as cleft lips and palates)● Medecins Du Monde Japon, a Specified NPO(Provides medical assistance to people suffering from wars
and natural disasters)

TOPICS 1

Participation in the TOOTH FAIRY Project
The social project “TOOTH FAIRY”, promoted by the cooperation of Nippon Foundation and Japan Dental Association, recycles metals that have finished their functional role at dental clinics across Japan to support children andtheir families both domestically and abroad. As a partner company in metals recycling, we participate in supporting and operating this project. The project contributes establishing “The Ocean View Forest”, a facility that
supports children with incurable diseases and serious disabilities, and “Child Chemo House - Dream Hospital”, a
residential center for pediatric chemotherapy that allows children and their families to live together during their
healing. As an overseas project, we have built schools in Myanmar to support the education of economicallydisadvantaged children.

TOPICS 2
Exhibition participation at the “Tokyo Dental Show”
We took part in the “Tokyo Dental Show 2011” held at Tokyo Big Site
in November. A booth was set up to present information on our
Company’s recycling technology and products in the dental materials
area for visitors from the dental industry. Through participating insuch exhibitions, we intend to explain our business activities andspread the importance of resource recycling.

− 29 −

With Our Employees
By respecting individuality, we aim to create a positive and cohesive workplace in which employees
develop their skills through work and find something to live for. Also, we are providing various support
so that each and every employee can bring out the best in their work and engage and find their duties“rewarding” and “fulfilling”.

Creating an Environment Where People Can Work Free from Anxiety

Work-Life Balance

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

● Holding General Meetings of Employees● Mental Healthcare

We hold a general meeting of employees every year. At the general
meeting of employees a number of different activities are held,
including a message from CEO, presentations on the previous term’s
performance and priority issues for the current term and discussions
between top management and employees.

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

General Meeting of Employees● Our Healthcare Administration

Individual Consultation

Regular physical examination programs (e.g., checkup for preventing lifestyle-related disease, checkup for people engaged in designated operations, and general medical checkup), which are requiredby law, are offered to all employees. For those aged 45 or above andall managers, a comprehensive medical checkup program is offered.
We also support medical checkups for brain and PET scans for early
detection of cancer upon requests from eligible employees.
100% of the employees go through these routine checkups, whichshows that both the company and the employees are committed to
improving health, preventing disease, and detecting early symptoms.

Mental Health Care Management Traiing− 30 −

For the Society● Self-assessment system● Employment of Disabled Persons

Once a year, all employees are asked to carry out a written self
assessment on topics including how effectively they are using theirabilities, their suitability for their roles, their feelings of challenge
and accomplishment, and the atmosphere in their workplace, andare invited to write about their desired career path. The report cardalso includes a checklist to self-diagnose the degree of fatigue
accumulation. The completed self assessments are submitted
directly to the HR department, which works together with employees’ managers and supervising directors in order to adjust personnel
assignments, improve the work atmosphere, and promote a feelingof rewarding and encouraging work.

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

● Interviews for all employees
Every three years, individual interviews are held for all employees.
Employees are asked about their current work environment andtheir jobs in the interview. In order to improve the working environment by taking into account the work-life balance for each employee, employees are advised to maintain an appropriate workload aswell as [appropriate number of] working hours.

Amagasaki Recycling Center● Childcare Leave
The Company supports the balance between birth, childcare andnursing care of family members and work. We support working
patterns suited to the lifestyles of employees by shortening working
hours specified in the childcare leave system.

● Employee Survey
Every three years, an “employee surveyl” is given to all company
employees. This survey is carried out in order to objectively measure employees’ attitudes to and levels of satisfaction with theirworkplace, work, managers and the company, and their awarenessof the corporate culture. The survey results are used to promote thefurther development of the organization and its employees.

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

● Creation of an Environment enabling activeroles overseas

We create an environment enabling employees to actively engage
in roles overseas, including language training for employees to betransferred overseas and those going on business trips overseas.

● Supporting Company Club Activities
Communication between colleagues and with clients is enhanced
through club activities such as baseball and futsal.
Chinese Seminar (Techno-Center)− 31 −

Fostering Human Resources
HR development
philosophy

Employees at all levels/in all lines of work are encouraged to become professionals with an emphasis on expertise, and are offered original certification programs as well as internal educational curriculums. Additionally, so-called ASG Activities are carried out in small groups on a
voluntary basis. Furthermore, we hope to cultivate ambition in employees through a performance-based personnel system which evaluates the performance and contributions of each
employee in an impartial and fair manner.

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

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

Step-up Training

Power-up Training

Training by rank

Entrance training

Self-education

Support for acquiring qualifications

Correspondence education

ASG Activities (Asahi Small Group Activities)

DIPS Training (Dental Division training)− 32 −

Promotion test and training

Leader Training

Manager Training

Junior Leader Training

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

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

Primary
management
positions

Training upon joining
the company

Mid-level
management
positions

Training for management positions
upon joining the company

High-level management positions
Specialized andfull-time positions

Training for new entrants

Training by division

For the Society

Promoting Safety and Health Activities
Initiatives for OSHMS

Environmental Safety Education

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

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

A(Act)

Revise and improve

C(Check)

Confirm and evaluate
the progress

Environmental safety education

D(Do)Implement
the plan

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

P(Plan)Create a plan

Rank challenges
in order of priority
Identify and evaluate
risk factors* Occupational Safety and Health Management System

Plant training− 33 −

Responding to Emergencies

Creating Vital Workplaces
Through Small Group Activities

By way of safety measures at plants, our company seeks out risks
regarding our business activities, decides on a “Safety Promotion
Director” for each work site, and takes preventive measures. In
addition, we have set in place a structure for promptly responding
to any problems in the event that something should occur.
Furthermore, as a means of responding within the company andoutside the company when emergencies occur, we have completed
the “Emergency Response and Management Manual. ” We have also
distributed “Accident and Disaster Response Procedures,” whichcontain essentials for responding to accidents and disasters when
they initially occur, and have mandated that every employee mustcarry these with them at all times.
We set up the disaster headquarters led by our CEO of Asahi Holdings on the day of the Great Eastern Japan Earthquake in March,
2011. Then we confirmed all of the safety of our employees andtheir family members and offered support for our damaged production/sales sites to be restored.

We implement what we call Asahi Small Group Activities (ASG
Activities) with voluntary participation from employees within thesame workplace. Through these activities, participants use theircreativity to work toward solving issues and problems within theirworkplace. Groups with outstanding efforts are awarded at theemployee general assembly.

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

Safety commendation

INTERVIEW

Participating in ASG Activities

At the Kitakyushu Business Office wedeal with many kinds of waste, notonly from Kyushu. This waste includes
items containing harmful substances
and those requiring special handling.
So we created an an intranet encyclopedia exclusively on wastes bycompiling the information of components and special characters describing with the handling methods foreach type of waste.

Today this encyclopedia is used in the
training of new hires, and to collectnecessary information quickly andefficiently when receiving wastes andduring processing. By sharing useful
information on waste among all
employees, understanding of thenature and incidence of chemical
reactions within incinerators has
deepened, making more stable
operations possible.

− 34 −

ASG activities Kitakyushu Business OfficeGroup Leader

Hiromitsu Tahara

For the SocietyWith Our Shareholders and Investors
We are proactively promoting growth strategy and striving to improve corporate value and provide
stabilized returns to our shareholders through business development.
● Stock Distribution by Shareholders● Sales(JPY in 100million)
1600

Securiteis firms

1,510

470,318 stocks

1.30%

1200

Indivisuals and others

Treasury firms

1,174

1,264
1,105

14,686,721 stocks

3,517,689 stocks

40.51%

9.70%

826

800

Other corporations
3,618,300 stocks

9.98%

400

Financial institutions

Foreign corporation, etc.

7,286,950 stocks

6,674,366 stocks

20.10%

18.41%

0

2007

2008

2009

2010

2011

as of March 31, 2011

● Sales Profit(JPY in 100million)
120

Basic Policy on Shareholder Returns

108

106

112

100
78

80

(Our core policy of returning profits to shareholders)
In order to continue to grow our corporate value, we carryout strategic investment for growth while working toenhance our revenue base. Our payout ratio is a key
metric in the distribution of the proceeds of this, and wereturn profits to our shareholders through the provisionof a stable dividend.

60
40
20
-3

0
-20

2007

2008

2009

2010

2011

● ROE (Return on Equity)
（％）
25
20

● Dividend Per Share
(JPY)
60
50
40

50.0

10
60.0
50.0

5

50.0
30.0

25.0

25.0

25.0

0
-5

20

0

-1.9

25.0

30

10

16.2

15.4

15

■ year-end dividend■ mid-term dividend
50.0

19.1

20.2

25.0

25.0

25.0

25.0

2007

2008

2009

2010

2007

2008

2009

2010

2011

30.0

● Capital Equity Ratio
2011

（％）
70
66.6
65

60

59.3

59.6

2008

2009

57.5

58.0

55

50

− 35 −

2007

2010

2011