I n t r o du ct io n

E-scrap

The Group collects and recycles scrap containing

Precision
Cleaning

precious metals from various industries.

■■
Revenue
Operating Income■■

Catalyst

Business
Fields

100.0

18.0

Plating
Treatment

and the development of industry.

DentistryGold

Catalyst
SilverPalladium

Palladium

Platinum

Electronic substrates used in personal computers,
smartphones and home appliances contain gold,
silver and palladium. We collect manufacturing
process scrap and electronic substrates fromused products. We then put them throughvarious processes such as crushing and sorting torecover and recycle precious metals. Our precise
sampling and advanced analysis techniques are
just some of the strengths we offer.

Precision CleaningGold

SilverPlatinum

Automobiles are equipped with catalytic
converters to detoxify harmful substancesin exhaust gas, and precious metals such as
palladium and platinum are used in thesedevices. We use our original technologies
to recycle precious metals from automotive,
chemical and other catalysts converters.

2018

Gold

SilverGold

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

14

CORPOR ATE REPORT 2020

2020

(FY)

Forecast

Social issues
relating to
the Precious
Metals Business● Depletion of precious metal resources● Environmental destruction during mining● Human rights and labor issues related to mining● Money laundering and terrorism financing risk

Contributing to the SDGs
SilverPalladium

PlatinumGold-silver-palladium alloys are the mainmaterials in dental prostheses such as crowns
and inlays, and the percentage 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.

Jewelry
Palladium2019

Resultetc.

We strive to ensure the quality of equipmentused by customers in their electronic
component and semiconductor manufacturing
processes by regularly and precisely cleaning
them. Customers entrust us with theirequipment parts, and we perform stripping
and recovery of precious metals adheringto them. The recovered precious metals are
returned to the customers upon request.

Plating Treatment

15.7

Solving social issues through business activities

Rhodium

Dentistry
Palladium

12.0

18.0
12.0

ResultJewelry

E-scrap

87.8

80.0

modern manufacturing, we are contributing to
the effective utilization of resources

130.0
113.8

120.0

Precious Metals Business

140.0

platinum and other precious metals indispensable to

Se gme n t s

Be the number-one precious metals
refining company in the world(billion yen)

By recovering and providing gold, silver, palladium,t oIntroduction to Segments

Precious Metals BusinessGold

SilverPalladium

Platinum

We collect and recycle precious metals fromjewelry and ornaments that are no longer needed
as well as precious metal scrap generated ateach stage of the manufacturing process frompurchasers, manufacturers, and processors. In
addition to accurate analysis, we offer highquality precious metal ingot products, while
also returning raw materials to manufacturing
and processing company customers.

Leveraging precious metal
recycling to turn consumption
into production, transforming
waste into precious metal
resources

Contributing to industrial
sustainability by continually
improving our highly efficient andhigh-quality precious metal
recycling technologies

Helping to preserve terrestrial
ecosystems, forests, and otherland-based resources by
expanding precious metal
recycling, instead of mining

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

Contributing to sustainable water use by practicing precious metal recycling
without contaminant discharge
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

AS AH I H O L D ING S

15

I n t r o du ct io n

Collecting and Recycling Precious Metalst o

Se gme n t s

R&D System
Technical Research Center
pursues original R&D

Plating Treatment(manufacturers)
Plating solutions

Assay report(precious metal content analysis)

ReturnDentistry

Jewelry(purchasers, manufacturers, and distributors)
Jewelry and processing waste

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

technology improvement in the fields of “recycling of precious
metals and rare metals” and “detoxification and recycling ofFinishingindustrial wastes.” We established the Technical Research Centerin Kobe 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.

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 metal molding and refining technology

Catalysts(dismantlers / brokers)
Unused and waste catalysts

Melting and molding(manufacturers)
Electronics / semiconductor manufacturing
equipment parts, etc.

Assay

Precision Cleaning

Pre-treatment

Collection(precious metal purchasers)

Customers (waste providers)(Manufacturers, dismantlers, and brokers)
Discarded electronic substrates
and processing scrap

Inspection

E-scrap

Separation and extraction

We conduct proprietary research and development and analytical

Precious Metals BusinessWe 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 and admixtures in thebusiness ﬁelds where we collect materials. urthermore, we accurately meet customer needs by fully utilizing optimal methods
and efﬁcient reﬁning facilities depending on the type of precious or rare metal.

Introduction to Segments

Precious Metals Business

Refining Technology

Precious metal
market Sale
Trading companies
Manufacturers, etc.

Sale

In addition to wet precious metal reﬁning technology, which is particularly effective for recycled material
processing, the Group is developing dry precious metal reﬁning technology effective for the primary raw
material processing it is performing in North America. By advancing and combining both wet and dry reﬁning
technologies, we are creating effective precious metal 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 manufacture ofelectronic components and semiconductors, the Group is developing technology to chemically and physicallyexfoliate precious metals safely and reliably without damaging the parts and jigs.

Assay
Priority SDG-Related Goal

Expand precious metal recycling
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 stable supply of
precious metals needed in many fields.
By ﬁscal 2030, we aim to achieve total annual recycling of
10 tons of four elements gold, silver, palladium, and platinum.
As recycling emits less CO2 compared to mining andreﬁning, achievement of this recycling target will yield a CO2
reduction effect of 1.465 million tons-CO2. ( See page 31 fordetails.)* From GFMS Gold Survey 201916

CORPOR ATE REPORT 2020

The Asahi Holdings Groupʼs 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 Groupʼs customers.
● Development of new assay technology● Technical guidance for assay groups at each plant and sales office●Purity assay of precious metal 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) optical emission
spectrometry with the aim of conducting rapid and accurate transactions with customers. We are upgrading
our precious metal analysis at sites in and outside of Japan, including Asahi eﬁning.

Engineering
Using cutting-edge technology, experts from each business area design, produce, constructand 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

AS AH I H O L D ING S

17

I n t r o du ct io nt o

Se gme n t s

In North America, we mainly reﬁne gold and silver raw materials produced by mining companies, and we are proud of our
reﬁning 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.

Incorporated: 2015
Location: Ontario, Canada
Number of employees: 159
Business line: Gold and silver
refining

ASAHI G&S SDN. BHD.

Asahi Refining USA Inc.

Asahi Refining Florida LLC

Incorporated: 1994
Location: Penang, Malaysia
Number of employees: 7
Business line: Precious metals
recycling from electronicmaterials and jewelry

Incorporated: 2015
Location: Utah, USA
Number of employees: 124
Business line: Gold and silver
refining

Incorporated: 2019
Location: Florida, USA
Number of employees: 49
Business line: Gold and silver
product processingGemseparation

Financialservices
Normally, it takes about aweek from the arrival of raw
materials to the return of therefined metal. However, we
also offer advance delivery toreturn products in a shorter
period of time. Utilizing theanalytical capabilities of theGroup, we quickly analyze theprecious metal content for
the raw materials concerned,
and accommodate thevarious financing needs ofour customers.

Refining
Business

Downstream

Asahi Refining Canada Ltd.

Established: 1952
Incorporated: 1997
Location: Kobe City,
Hyogo, Japan
Number of employees: 764

Raw material
receiving

Asahi Pretec Corp.

Incorporated: 2006
Location: Chungju, South Korea
Number of employees: 33
Business line: Precious metal
recycling from dental andelectronic waste

Carbontreatment

Product
returnAsahi Pretec Korea Co., Ltd.

Upstream

We have been expanding our precious metal 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 havedeveloped in Japan. urthermore, with the addition of the Asahi eﬁning businesses to the Group in March 201 , we have
expanded our operations to North America.

Clients (Mining companies, etc.)

North American Refining Business

Precious Metals Business

Global Expansion

Introduction to Segments

Precious Metals Business

Minting

Recycled
metalsWe are working to supply high added value
products, including 100% recycled metals andmint business products such as coins and smallbars.

(As of March 31, 2020)

Priority SDG-Related Goal

Product return

Supply precious metals in waysthat are friendly to people,
society, and the environment

Responsible Precious Metals Management

While precious metals are indispensable to many industries, various social issues

Asahi Pretec Corp. has established a Responsible Precious Metals Management Policy for the precious metals supply chain, with the aim

have also arisen relating to mining, production, and distribution. Businesses thatof avoiding human rights violations in high‐risk areas including con ict zones, money laundering, fraudulent transactions, and funds goingto terrorists. To achieve this we have set up a responsible precious metals management system that complies with LBMA, LPPM and RJC

procure and supply precious metals must ensure they are not making these issues

guidance. The system is also maintained and improved by obtaining certiﬁcation from a relevant third-party organization and by undergoingworse. The gold and silver produced by the Asahi Holdings Group are delivered

regular independent audits.

in ways that are friendly to people, society, and the environment. We meet the

responsible sourcing guidelines of the LBMA*1 and the strict standards for RJC

certiﬁcation. Going forward, we will continue to promote business activities andinitiatives that consider ethical, social, and environmental concerns, while fulﬁlling
our responsibilities by supplying precious metals.
*1. LBMA: London Bullion Market Association*2. LPPM: London Platinum & Palladium Market

18

CORPOR ATE REPORT 2020Gold and silver with a purity of 99.99% or moreproduced by Asahi Pretec and Asahi Refining
are certified as LBMA Good Delivery Bars, while
platinum and palladium with a purity of 99.95% ormore produced by Asahi Pretec are certified as
LPPM*² Good Delivery Bars.

In order to support one of the Group's priority SDG-related goals — supply precious metals in ways that are friendly to people, society,and the environment — Asahi Pretec is striving to help build and maintain the Asahi brand. We want to ensure that our brand can be trusted
by customers around the world, allowing them to procure precious metal products that help protect human rights and the environment.

Responsible Precious Metals Management Policy
http www.asahipretec.com conflictmetal index.html

AS AH I H O L D ING S

19

I n t r o du ct io n

Business Fields

The companies of the Asahi Holdings Group meet the diverse
needs of their customers by leveraging the unique technologies

Government
and public
offices

Educational
institutions■■
Revenue
Operating Income■■(billion yen)

Hospitals,
clinics, etc.

25.0

Glass and sash
manufacturers

global environmental problems and playing a key role

10.0

in building sustainable recycling-oriented societies.

Waste reagents

Waste oil and sludge

Glass

5.0

Plant
manufacturers

Based on analysis results, waste oils fromfactories are mixed and adjusted to achieve theoptimal composition, before being recycled asalternative fuels. Meanwhile, sludge is recycled
as raw materials for cement after adjusting
content and moisture and then kneading them.
The aim is to ensure and maintain thequality of all recycled materials.

Wood waste

Fire-proof bricks

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

4.0

Other
manufacturers

20

CORPOR ATE REPORT 2020

ire-proof bricks are used as refractories toline glass furnaces, kilns and incinerators.
Waste bricks generated by thedemolishing of such facilities and periodic
repair work are collected and carefully
sorted. Recyclable items are reused as paving
materials and fire-proof bricks.

Waste acids, alkalis, and sludge are generated bya wide range of industries, and their properties arediverse, including inorganic and organic. Liquid
waste is collected by a vacuum truck, subjected toneutralization and dewatering processes, then treatedwith microbes, before being discharged into the
public sewer system. The residual sludge is recycled
as a raw material for reﬁning or composting, etc.

3.3

2018

2019

2020

ResultResultForecast(FY)● Contaminationby hazardous waste●Impact on land andocean ecosystems●Pollution of water resources

etc.

Contributing to the SDGs

Realizing a sustainable society byrecycling and detoxifying waste

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

Preventing marine pollution byproperly treating liquid andplastic waste

Preventing pollution of land
environments by detoxifying
waste, and extending the lifespanof final disposal sites bypromoting recycling

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

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

4.4

3.0

Waste acids, alkalis and sludge(inorganic/organic)

3.9

Solving social issues through business activities
Social issues
relating to
the Environmental
Preservation
Business

The Group collects reagents for disposal fromeducational and research institutions. They are
packed one by one for collection, conﬁrmingthat they are stored in proper collection
containers. Chemical content analysis isperformed for any unidentiﬁed (poorly
labeled) reagents to determine the appropriate
processing method before disposal. Even small
quantities of miscellaneous wastes that are
difﬁcult to handle are also processed properly.

20.0

15.0

Chemicalmanufacturers

As experts in waste disposal, we are helping to solve
Research
institutions /laboratories

20.7

19.4

Environmental Preservation Business

20.0

Research
institutions

Se gme n t s

Be a leader in the environmental business in Japanthey have developed over the decades in their respective fields
to detoxify and properly dispose of various waste materials.

t oIntroduction to Segments

Environmental Preservation Business

Achieving sustainable cities andother communities by properly
managing waste

Helping to prevent climate change by reducing CO2 emissions from waste-to-energy power
generation
Promoting high levels of sustainability by collaborating with other companies

AS AH I H O L D ING S

21

I n t r o du ct io nt o

Se gme 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 team that extends across ourgroup network. We hold relevant licenses from authorities across Japan and can handle a wide 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, ouroutstanding technology for detoxifying industrial waste offers optimal solutions for environmental preservation.

ne

a te
generator

onsultationtoer i eo e tion an tran

ortationio aAsahi Pretec Kobe Plantroaere re entati e●Detoxification of liquid

waste and sludge

a i Preteant●Oil-water separation ofwaste water

rrangements

In ustrial

aste

i iar

Partner

ant in a an

JW Saitama Office
JW Chemitech Kawaguchi Plant●Neutralization and dewatering

Asahi Pretec Kitakyushu
Office and Plant

process of inorganic liquid waste●Incineration of various

JW Chemitech Ibaraki Plant

waste●Sludge recycling●Waste plastic crushing
Partner

Environmental Preservation Business

Providing One-Stop Solutions

Introduction to Segments

Environmental Preservation Business●Fermentation and composting oforganic sludge and animal/plant
wastesant

JW Glass Recycling●Recycling of glass

plate and bottles

Processes of Industrial Waste Disposal and Recycling

Taiyo Chemical Ijuin Plant/
Taniyama Rinkai Plant●Incineration of various waste●Detoxification of liquid waste

Collection and transportation

Intermediate treatment

Recycling

Industrial waste

Neutralization
Incineration
Condensation andprecipitation
Dewatering
Cyanide decomposition
Oil-water separating
Neutralization, mixing
Sorting, compressing,crushing
Kneading
Concreting
Roasting
Fermentation andcomposting
Grading

Landfill

18 articles including waste
acids, waste alkalis, wasteoil, sludge, waste plastics,
etc.
Specially controlled industrial waste
17 articles of hazardous
waste, such as waste acids,
waste alkalis, waste oiland sludge, which containspecified toxic substances,and infectious waste

CORPOR ATE REPORT 2020

●Regular maintenanceand demolition workfor glassmanufacturing kilns
and waste incinerators●Concreting process

for burnt residues, dust
and sludge generated byincinerators, etc.

JW Chemitech Totsuka Plant●Neutralization and dewatering

process of organic liquid waste

JW Yokohama Office●Recycling of sludge, waste oil

and wood chip

●Sorting, recycling of other waste(As of April 1, 2020)

Waste oil recycling facility, JW Yokohama Plant

Incineration facility, Asahi Pretec Kitakyushu Plant

22

JW Shonan Office andSamukawa Plant

Fuji Rozai

Licenses acquired by the Group (As of April 1, 2020)
Industrial waste collection transportation license

All prefectures, 8 government ordinance cities and core cities

Industrial waste disposal license

12 prefectures and 8 government ordinance cities

Specially controlled industrial waste collection transportation license

All prefectures, 7 government ordinance cities and core cities

Specially controlled industrial waste disposal license

10 prefectures and 7 government ordinance cities

Excellent industrial waste management company certification*

Asahi Pretec: All prefectures and government ordinance cities
Affiliate in Japan: 28 prefectures, 4 government ordinance cities and core cities* 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.

AS AH I H O L D ING S

23

I n t r o du ct io nt o

Se gme n t s

Inter Central

Waste-to-energy is a power generation method that uses the heat generated from waste incineration. It produces high temperatures andhigh-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 isconstructing a waste-to-energy power plant in the city of itakyushu. By achieving advanced and highly efﬁcient heat recovery, we
are helping to prevent global warming and build a low-carbon society.

Inter Central, Inc. provides comfortable environments by manufacturing and selling various electric heaters and designing andinstalling air conditioning systems. Today’s heightened awareness of health and safety means that products need to offer comfort
and be user-friendly, while also being clean, energy-saving, and environmentally friendly. By pursuing the possibilities of air
conditioning, Inter Central will continue to take on the challenge of creating comfortable spaces.

Electric heaters

TurbineGenerator

Garbage pit

BoilerPower
generation

As a company responsible for efficient and energy-saving air conditioning equipment, Inter Central provides a wide variety ofheating equipment to various buildings, including public facilities and commercial facilities.

Exhaust gas
Smokestacktreatment equipment

Sunheatradiating far infrared heater

Panel Heater (vertical type)natural convention type heater

Lucciola
far infrared heater

Environmental Preservation Business

Generating power from waste

Introduction to Segments

Environmental Preservation Business

MyHeat Seraphy
far infrared heater

Radiant air conditioning systems
Garbage
crane

Waste
Incineration ash

Priority SDG-Related Goal

Contributing to Increased Proper Industrial Waste Disposal
Due to the increased economic activities of mass production, mass consumption and mass disposal, a shortage of ﬁnal waste disposalsites has become a social issue in Japan.

Ceiling radiant air conditioning systems

Floor radiant air conditioning systems

Ceiling and floor radiant air conditioning systems use hot
and cold water as well as forced air in combination. By
cooling or heating the entire ceiling or floor and causing
those surfaces to radiate cold or heat in the room, theair conditioning system creates a pleasant space with
comfortable temperatures and no noise. Ceiling radiantair conditioning systems are widely used in medical
settings and offices, while floor radiant air conditioning
systems are widely used in entrance lobbies such as
those in government buildings and commercial facilities,
as well as in libraries, art galleries and museums.

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 disposal of plastic materials, which end up in rivers and ow out to sea.

The Asahi Holdings Group disposes all wastes properly and aims to increase its total volume of properly handled industrial waste to00,000 tons per year by ﬁscal 2030. We also plan to expand the detoxiﬁcation and recycling of industrial waste, while helping to solve

various social problems and promote a sustainable society.

Realizing Comfortable Energy-Saving Interiors
With the adoption of the Paris Agreement and the UN Sustainable Development
Goals (SDGs) in 201 , efforts to reduce the environmental impact of societies
have been intensifying worldwide. In Japan, the government aims to realize

net zero energy building (ZEB) status in newly constructed public buildings by
2020, and then to achieve EB status on average for newly constructed public
and private buildings by 2030. Therefore, new buildings including ofﬁces are
required to reduce their environmental impact.

Another recent trend is the move toward creating high-quality interior

work spaces to promote employee health, comfort and intellectual productivity,
as part of work-style reform.

To help address this social issue, Inter Central, Inc. contributes to comfortableenergy-saving interiors with its products and services for improving temperature

control and air quality. These include radiant air conditioning systems, as well as
air puriﬁers with deodorization, sterilization, and fragrance features.

24

CORPOR ATE REPORT 2020

photo by KAI NAKAMURA

Floor radiant air conditioning system installed in a multipurpose facility,
Minna no Mori" Gifu Media Cosmos

AS AH I H O L D ING S

25