Asahi Holdings, Inc.

Financial Results for FY2023.3

April 27, 2023
These forecast performance figures are based on information currently available to the company’s management and certain
assumptions judged rationally. Accordingly, there might be cases in which actual results materially differ from forecasts of thisreport.
Copyright © Asahi Holdings, Inc. All rights reserved.

0

I.
II.

Financial Results for FY2023.3(April 1, 2022 ~ March 31, 2023)

Appendix

Copyright © Asahi Holdings, Inc. All rights reserved.

1

01 Key Points of FY2023.3 Financial Results
Business Performance
FY2023.3
Financial results

Revenue: ¥292.4 bn (YoY increase of ¥100 bn)
Operating profit: ¥19.2 bn (YoY decrease of ¥7.2 bn)

Change in metals
collection

Revenue rose due to the larger collection from jewelry sector and rising gold prices.
Larger revenue in jewelry sector made limited contribution to profit because of thelower profit margin than other sectors.
Collections from catalyst and dentistry sectors fell.

Fall in rhodium price

The price of rhodium contained in the automotive catalyst fell sharply, which resulted
in price fluctuations that were difficult to hedge.

Solid North American
refining businessNorth American refining business was overall steady, excluding the impact of the“Stock-Take”.

Strong Environmental
Preservation business

Strong results thanks to the recovery in industrial production activities.
Operation profit increased despite the impact of impairment loss and deconsolidation.

One-time losses(Affecting operating profit)
・Impairment loss and related loss on existing facilities due to building of Yokohama
new incinerator¥0.9 bn・Withdrawal from North American carbon business¥0.4 bn
・Loss on equity-method investments¥0.6 bn(Posted in other expenses)
・Payment for compensation for damage related to intellectual property rights at anequity-method affiliate¥1.5 bn
・Loss on transfer of shares of equity-method affiliate¥1.8 bn

Copyright © Asahi Holdings, Inc. All rights reserved.

2

02 Topics
経営成績
TopicsBando Plant started
operation

Bando Plant began operating in April 2022.
Making a large contribution in increasing the volume of metals collected from jewelry
sector. Leveraging the high production capacity of the state-of-the-art facilities.

Launch of DXE business

DXE Inc., a subsidiary, launched a service to raise efficiency of industrial waste management
using digital technologies in June 2022.

PoC for CO2 emissions
reduction

The CO2 emissions reduction PoC project, which is supported by the Ministry of theEnvironment, duly completed a technological PoC installing hydrogen manufacturing
equipment and moved to the next stage of building a hydrogen supply chain.

Company split of
Asahi Pretec Corp.

Split the company into precious metals recycling, precious metals refining andmanufacturing/trading, and environmental preservation to achieve agile management of eachsubsidiary.

Launch precious metals
warehouse business

Launch precious metals warehousing business in the State of New York in May 2023 withcertification from COMEX.

ESG initiatives

Disclosed Scope 1, 2 and 3 emissions for FY2022.3.
Score “B” by CDP climate change.
Recognized as a Certified Health & Productivity Management Outstanding Organization for the
fourth consecutive year.
Introduced three-day weekends option from October 2022.
Introducing a stock compensation plan for managements that uses TSR as an indicator in
FY2024.3

Copyright © Asahi Holdings, Inc. All rights reserved.

3

03 Consolidated Results
Unit：billion yen

FY2022.3
Results

FY2023.3

FY2024.3
FY2024.3
Plan

YoY

Results

Forecast

ChangeYoY
ChangeRevenue

192.4

292.4

100.0

250.0

(42.4)

Operating profit

26.4

19.3

(7.2)

19.0

(0.3)

13.7%

6.6%

(7.1%)

7.6%

1.0%

Profit before tax

26.4

16.1

(10.3)

18.5

2.4

Profit※1

18.7

10.9

(7.8)

13.2

2.3

Capex

8.3

4.9

(3.4)

12.4

7.5

Depreciation

2.7

3.3

0.6

3.1

(0.2)

Ratio

※1※Profit attributable to owners of parent

Copyright © Asahi Holdings, Inc. All rights reserved.

4

04 Business Environment in Each Segment (4Q)
Precious Metals Business
Volume of collection in the precious metals recycling sector fell from 3Q. This was mainly due to a fall in collection from major customers in
jewelry sector, a fall in collection from catalyst sector due to the weak PGM prices, and a fall in collection in electronics sector due to inventory
adjustments. On the other hand, collection from dentistry sector increased.

Business field
Dentistry
Jewelry
Catalyst
Electronics
North American refining

Business environment

Collection continued falling partly due to the spread of alternative products, although the number ofpatients increased as restrictions on dental treatment were relaxed.
Although there was a temporary drop in purchase demand due to market uncertainty, it has been
recovering. Collection from manufactures is on a rise because of resumption of events, etc.
Collection fell in Japan due to falling PGM prices; overseas, collection from Korean catalyst
manufacture shrank.
Collection rapidly slowed due to the impact of inventory adjustments in the supply chain in response
to high inflations and a decline of the Chinese market.
Product processing, selling and other transactions were steady.

Environmental Preservation Business
Volume collected related to medical care is on a downward trend due to the end of the COVID-19 pandemic. Volume collected
related to automobiles remained weak.

Business environment

Industry
Educational/research
institutions
Construction
Automobile
Electronics

Volume collected from educational institutions slightly fell year on year.
Private-sector residential construction fell due to the skyrocketing materials prices, while privatesector non-residential construction increased.
Volume of waste collected from related parts factories stagnated due to the reduced operation offactories caused by semiconductor and parts shortages.
Inventory adjustment moves by electronics manufacture affected production of components
suppliers. Related waste generation is on a downward trend.

MedicalVolume of medical waste collected decreased following a drop in COVID-19 infections.

Chemical

Production index of chemical industry slightly decreased year on year.

Copyright © Asahi Holdings, Inc. All rights reserved.

5

05 Precious Metals Business Segment
Precious Metals Recycling Business (Japan and Asia)
FY2023.3 Results

Revenue rose due to the larger collection and sales mainly fromjewelry sector. This made limited contribution to profit because of
the lower profit margin than other sectors.
Meanwhile, catalyst and dentistry sectors that have relatively highprofit margins fell.
Price of rhodium contained in the automotive catalyst fell sharply,
which resulted in price fluctuations that were difficult to hedge.

North American Refining Business
FY2023.3 Results

Various value-added transactions based on refining
progressed solidly.
Performed normal annual “Stock-Take” as opposed to
two-year “Stock-Take” in the previous fiscal yearthat was affected by COVID-19.
Excluding the impact of “Stock-Take”, profit was higher.

➡Increaseinrevenueanddecreaseinprofit➡Increaseinrevenueanddecreaseinprofit
FY2024.3 Forecast

FY2024.3 Forecast

Both revenue and profit are projected to drop due to factors
Revenue and profit are expected to increase throughsuch as the current precious metals price and change in accounting
enhancement to various value-added transactions based
treatment. The forecast also reflects the impact of relevant costs which on refining.
shall be allocated to the segment, organization reinforcement and➡Increaseinrevenueandprofit
personnel following the company split.

➡Decreaseinrevenueand profit[Unit: billion yen]

Precious

FY2022.3

MetalsResults

FY2023.3
Results

FY2024.3

YoY Change

Forecast

YoY Change

Revenue

173.9

274.2

100.3

232.0

(42.2)

Operating Profit

26.6

19.8

(6.8)

16.7

(3.1)

15.3%

7.2%

(8.1%)

7.2%(0.0%)

Ratio

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6

06 Fall in rhodium price••••

To avoid the impact of fluctuation of precious metals prices, precious metals hedging is carried out
in principle.
Rhodium contained in the automotive catalyst has a small market and hedging capacity has been
limited.
The recent rapid fall in its prices made hedging difficult. In addition, the adoption of the lower-ofcost-or-market method became a significant factor of profit reduction.
We currently try to expand the counterparties for hedge transactions and the means of hedging.

・Trend in Rhodium Prices
20,000(Unit：$/toz)

・Global Supply of Precious Metals in 2021

（Unit：t）

16,00012,000

8,000

4,000

0
2022/4/1

2022/7/1

2022/10/1

2023/1/1*Ref：Metals Week NY Dealer Prices ,Metal Focus, WORLD GOLD COUNCIL ” Gold Demand Trends Date」,Our Research
Copyright © Asahi Holdings, Inc. All rights reserved.

7

07 Details of Change in Collection•••

Revenue rose due to the increase in sales of gold. Larger collection from jewelry sector
significantly contributed.
Larger revenue in jewelry sector made limited contribution to profit because of the lower profit
margin than other sectors.
This trend is expected to continue in FY2024.3

・Breakdown of revenues
Seles of Au

Seles of Others

Unit：bn yen

・Breakdown of AU collected
Jewelry sector
Other sectors

24,811
kg

169.4
76.6

292.4

192.4

FY2023.3

16,578kg
FY2022.3

Copyright © Asahi Holdings, Inc. All rights reserved.

FY2023.3

FY2022.3
8

08 Ref: Volume of Precious Metals Collected•••

The volume of gold collected rose mainly in jewelry sector, increasing approx. 8 tons YoY overall.
The volume of palladium collected was almost at par with FY2022.3, with an increase incollection from jewelry sector, making up for a drop in the volume collected from dentistry andcatalyst sectors.
The volume of platinum collected rose 1 ton YoY, with an increase in the volume collected fromjewelry sector exceeding a fall in collection from catalyst sector.

Au

Pd

Achieve
計画
ment
計画
達成率
against
達成率
101%
plan
101.2%
100%

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Pt

Achieve
計画
計画
ment
達成率
達成率
達成率
against
96.3%
97.3%
plan
96.3%
101%

Unit：kgAchieve計画
ment
against
達成率
plan
97.4%
99%

9

09 Environmental Preservation Business Segment
Environmental Preservation Business
FY2023.3 Results

Thanks to the recovery of industrial production activities, the processing volume of industrial waste increased,
The operation status of our plants remained at high levels. The processing volume of waste with high unit prices,such as COVID-related medical waste, was also steady.
The results reflected the impact of the transfer of JW Glass Recycling in May 2022 (FY2022.3 results: revenue ¥1.2bn; operating
profit: ¥0.2bn) and impairment losses (¥0.9bn) and related loss on existing facilities following the construction of the Yokohama
new incinerator which is scheduled to start operating in 2025.

➡Decreaseinrevenueand increaseinprofit
FY2024.3 Forecast

Plan to make up mostly for a fall in COVID-related medical waste with other waste. The forecast reflects the impact of relevantcosts which will be allocated to the segment, and costs for organization reinforcement following the company split,➡Decreaseinrevenueandprofit[Unit: billion yen]

Environmental
Preservation

FY2022.3
Results

FY2023.3
Results

FY2024.3

YoY Change

Forecast

YoY Change

Revenue

18.6

18.2

(0.3)

18.0

(0.2)

Operating Profit

3.7

3.8

0.1

2.3

(1.5)

20.1%

21.1%

0.9%

12.8%

(8.3%)

Ratio

Copyright © Asahi Holdings, Inc. All rights reserved.

1010 Assumptions for FY2024.3 Forecast
Assumptions
FY2024.3 forecast

Revenue: ¥250.0bn(YoY decrease of ¥42.4 bn)
Operating profit: ¥19.0bn (YoY decrease of ¥0.3 bn)

Volume collected

Volume of precious metals collected is projected almost at the same level as theprevious fiscal year given the current business environment

Change in priceassumptions

Forecast was projected based on the prices of precious metals at the time of the
preparation of the forecast

Change in accounting
treatment following
the company split

Posting of one-time cost as we will not be able to post the personnel cost forcollection sales staff in assets following the company split.
After the company split, expenses that have been posted outside segments(Adjustments) will be allocated to each segment.
No cash out for either of the above.

Strengthen systems
following the company
split

Improvement of each company’s back-office and management systems following thecompany split (including developing organizations for the listing of a subsidiary)

Employees
engagement

Wage raise including wages for new employees; increase of executive employees,
holding general meeting of employees

Total CI strategy

Change of company name; branding; advertising and promotion

R&D for growth, etc.

Full-scale launch of environmental DX business; R&D to cultivate new areas andproducts in precious metals recycling

Cost increase
Copyright © Asahi Holdings, Inc. All rights reserved.

1111 Financial Position
Unit：billion yen

Current Assets
Trade receivables

Mar 31,Mar 31,

2022

2023

Change

241.8

238.4

(3.4)

151.4

154.0

2.6

Remarks

The greater part of the balance and changes are receivables that constitute borrowings tomatch metal procurement in North American business.

The majority of inventory balances and changes in inventories are linked to materials, works in
Inventories

63.4

40.9

(22.5)

process and products that contain precious metals in the precious metals recycling
business. Risks associated with price fluctuations and quality deterioration are limited
because precious metals prices are hedged at the time of purchase.

Others

26.9

43.5

16.5

Non-current assets

56.6

49.1

(7.5)

Total Assets

298.4

287.4

(10.9)

Liabilities

193.3

180.5

(12.8)
Borrowings for Advance Trading in North American business constitute a large percentage.

Bonds and loans

150.9

144.4

(6.6)

Risks associated with price fluctuations and bad debts are limited because bullion for
Adovance Trading is procured through borrowing after receiving raw materials and precious
metal prices are hedged according to the repayment date.

Others

42.3

36.1

(6.2)

Capitals

105.1

107.0

1.8

Total equity and liabilities

298.4

287.4

(10.9)

Copyright © Asahi Holdings, Inc. All rights reserved.

1212 Sound Financial BaseFinancial Position

Equity Ratio[Unit: ¥ bn]

March 31, 2023

Excluding North
America businessCurrent
Assets

238.4

102.1

Non-current
assets

49.1

49.1

Total
Assets

287.4

151.1

Liabilities

180.5

44.2

Capitals

107.0

107.0

Total equity
and liabilities

287.4

151.1

•
•
•

Mar 31,2023

37.2%
loan for “Advance Trading”

Excluding North
America business

70.8%

Enabling large-scale funding for the finance services with competitive interest rates.
Advance trading is tied to refining contract.
In general, rising interest will not affect the profitability of the North American business.

Copyright © Asahi Holdings, Inc. All rights reserved.

1313 Progress of Capital Investment
Investment purposes: Business expansion, margin improvement

Total amount of investment in Mid-term business plan: ¥22.7 bn

Bando Plant Largest state-of-the-art precious
metals recycling plant in Asia

North American Refining Business

New incinerator in Yokohama Large incinerator in eastern Japan Launching warehouse business &strengthening existing equipment

Unit: ¥bn

FY2022.3

FY2023.3

FY2024.3

Results

Results

Plan

Precious Metals

7.7

4.5

10.4

Domestic

4.0

2.5

5.7

Overseas

3.6

2.0

4.6

Environmental
Preservation

0.7

0.5

2.1

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1414 Shareholder Return Policy
Basic Policy：We will strive to consistently pay dividends without decreasing the annual dividendlevel from the current level. Moreover, we aim to maintain a dividend payout ratio of 40%, while
retaining sufficient internal reserves for capital investment and M&A for future growth.

Earnings per
share(yen)Dividend payout
ratio(%)

114.07125.12326.90238.11141.19172.23

52.6

52.0

26.0

37.8

63.7

52.3

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15

of
15 Introduction
TSR-linked stock compensation plan•

Plan to Introduce a stock compensation plan for managements that uses total shareholder
return (TSR) as an indicator in FY2024.3. to incentivize more about shareholder returns.
Stock-based
compensation

Monetary
compensation

Current system

After Revision

Fixedcompensation

Fixed
compensation

Basic remuneration according to job
responsibilities

Performance-linked
compensation

Consolidated operating profit is multiplied by acertain ratio to calculate the total amount, andmoney is paid according to position points andcontribution to business performance.

Performance-linked
compensation

Stock-based
compensation

TSR linked
stock-based
compensation

Consolidated operating profit is multiplied by acertain ratio to calculate the total amount, andshares are paid according to position points and
TSR.

Note: Subject to a resolution at the General Meeting of Shareholders in June, 2023
Copyright © Asahi Holdings, Inc. All rights reserved.

1616 Group Organizational Restructuring••

Restructure our business model as a measure to “Reinforce the foundation for global growth”,
which is a basic policy of the 9th Medium-Term Business Plan
Aim to enhance the corporate value of the entire group through optimal and speedy decision
making by each company.

(Former)(New)

Asahi Holdings

Asahi Holdings

Asahi Pretec
アサヒプリテック

アサヒプリテックAsahi Pretec

Precious
貴金属
環境保全
metals Environmental
リサイクル preservation
recyclingbusiness
事業
事業
business

貴金属リサイクル事業
recycling business

Precious metals

As a leading company in precious metals
recycling, develop new business areas
including oversea expansion and products inaddition to further strengthen existing
business.

ASAHI METALFINE
アサヒメタルファイン

Aim to establish a global Asahi brand throughrefining, manufacturing/trading of precious
metals products with consideration forhuman rights, the environment, and othernew services

Japan Waste
ジャパンウェイスト

Aim to become one of Japan’s leadingindustrial waste specialists utilizing its
networks and licensing covering the entire
nation, technical skills, highly specialized
salesforces, and unique DX service

Precious metals refining,andmanufacturing/trading
貴金属精錬・販売事業
business

Environmental
環境保全事業
preservation
business

Copyright © Asahi Holdings, Inc. All rights reserved.

(Target)1717 Change to the Holding Company’s Trade Name
・Plan to change the company name to “ARE Holdings, Inc.” as of July 1, 2023
・Become a corporate group that embodies its purpose, “Totally committed to protecting the naturalenvironment and preserving resources,” both in name and in substance(New name) ARE Holdings, Inc.
Asahi
Resources ＆ ＝Environment

With resources and theenvironment as our core business,
we are committed to resource
recovery for environment andenvironmental preservation.

Note: Subject to a resolution at the General Meeting of Shareholders in June 2023
Copyright © Asahi Holdings, Inc. All rights reserved.

18

I.
II.

Financial Results for FY2023.3(April 1, 2022 ~ March 31, 2023)

Appendix

Copyright © Asahi Holdings, Inc. All rights reserved.

19

Ref

Precious Metals Recycling Business：
Growth Drive-New Field, Geographic Expansion
Expansion to New field by technicalinnovation（2021～）

EV-Field

Production ofpharmaceuticalmarketSoutheast Asia
Business Expansion
Korea

2011

E-Scrap

2006

Malaysia
1986

1994

Jewelry

Au,Pt
1986
1982

Dentistry

Plating Treatment

Copyright © Asahi Holdings, Inc. All rights reserved.

2011
Precision Cleaning

2003

Catalyst■Business Strategy of Precious Metals Recycling
Secure collection volume through expanding into
areas where market growth is expected toaccompany technological innovation
20

New Recycling Market

Ref
6,000

Solving social challenges leads to the creation of a new recycling
market and business opportunities for Asahi Holdings
Electric vehicle

5,000
4,000

Gasoline (diesel) car

With the shift to electricity as a source of power (incl. HV/FCV),
computerization of driving, stopping and turning progresses at thesame time, increasing production of controlling/sensor devices using alarge amount of precious metals

3,000
2,000
1,000
0

(1,000 units)

50

28%

28%

29%

29%

32%

34%

36%

38%

40%

42%

44%

46%

48%

51%

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

Source: Estimates by Asahi Holdings based on data provided by the Japan Automobile Dealers Association

遺伝子細胞治療薬
Gene and cell
medications

40

Conventional bio従来型バイオ医薬品
pharmaceuticals

合成医薬品
Synthetic drugs

30
20
10
0

(bns of US
dollar)

The global pharmaceutical market continues uninterrupted growth; palladium catalysts play animportant role in soliciting chemical reactions in the pharmaceutical production process
2016年
2016

2017年
2017

2018年
2018

Copyright © Asahi Holdings, Inc. All rights reserved.

2019年
2019

2020年
2020

2021年
2021

2022年
2022

2023年
2023

2024年
2024

2025年
2025

2026年
2026

Source: Estimates by Asahi Holdings based on data provided by EvaluatePharma®

21

Ref

Manufacturing and Selling of New Products
That Contribute to CO2 Emissions Reduction

・In the electronics industry, demand is growing for recycling-based gold potassium cyanide torealize a recycling-based society and for actions to achieve carbon neutrality, SDGs, and ESG
initiatives.
・Based on these needs, we installed manufacturing lines for gold potassium cyanide and began
manufacturing and selling it in April 2023.

About 68.2％ gold by weight

Gold potassium cyanide

Gold potassium cyanide
manufacturing facilities◆External environment
A major global smartphone manufacturer with suppliers inJapan has declared that its supply chain will achieve 100%carbon neutrality by 2030.

Copyright © Asahi Holdings, Inc. All rights reserved.

22

Ref

Value Added Service - “Green Gold”•

Global Jewelry brands prefer precious metals that respect human rights, CO2, and theenvironment•

This “Green” preference extends to sectors other than jewelry, as well as precious metals otherthan gold•

We lead market in recycling, traceability, and international certifications
Our Main Plant: Bando Plant

•
•
•
•

Copyright © Asahi Holdings, Inc. All rights reserved.

Consolidating processes from raw material collection to finishing
Improving production efficiency by introducing cutting-edge IoTtechnology.
Excellent industrial production area from the viewpoint of BCM(Business Continuity Management).
Certified as top tier and “ZEB Ready” by Building-Housing Energyefficiency Labeling System of Japan's Ministry of the Environment.
23

Ref

North American Refining Business：
Expanding Value Added Services

Strengthen finance business・Trading
・Precious metals warehousing
・Loan, structured finance(e.g., support for environmental
measures in South American mines)

FY2022～
Loan/structured
finance

Downstream development
・Minting, products
Reserve“American Reserve”
Our mega hit productin US mining/refining

Increase jewelry industry clients(Procure materials with awarenessof human rights and environment)
・ Green GoldFY2015(When acquired)

TradingCore:
RefiningGreen Gold

Precious
metalswarehousing

Minting/
products

Refining

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24

COMEX Approved Precious Metals Warehousing

Ref
•
•

Establishing a warehouse specializing in precious metals by purchasing land and building instate of NY.
This warehouse will be a COMEX approved depository and start its operation in early May.

■Summary of the warehousing business

•

•

•

■Inside the warehouse under construction

Precious metal transactions throughCOMEX are conducted using
dedicated warehouses designated by
COMEX. The operators of thedesignated warehouses receive
stipulated storage fees (certificate fee
and warrant fee) and withdrawal feesat the time of the discharge of goods.
As a COMEX-approved depository, we
are able to gain stable income andreduce our transportation cost to
deliver ingot.
In addition, synergies between trading
and warehousing business will be
expected in the future.

Copyright © Asahi Holdings, Inc. All rights reserved.

25

Environmental Preservation Business：
Capital Investment

Ref
•
•

Continuous capital investment is necessary for business expansion.
Expand processing capacity through planned capital investment

Hibiki Plant[Unit: ¥ bn]
Completion: October 2021
Investment amount :approx. 1.7

Completion: October 2025
Investment amount: approx. 6.0

Yokohama Plant

2025
Scheduledcompletion

Kitakyushu Plant

Taniyama Rinkai Plant

Completion: October 2020
Investment amount:approx.4.0

Copyright © Asahi Holdings, Inc. All rights reserved.

Completion: April 2018
Investment amount :approx.1.8

26

Ref
•
•

Environmental Preservation Business：
Digital Transformation Business of Waste Treatment
Contribute to the building of a low-carbon, sustainable society through digitalization of industrial
waste from discharge to treatment and reduction of environmental impact
A major version upgrade as “DXE Station” was conducted in April 2023. This upgrade includes aservice for disposal companies and has dramatically streamlined a series of industrial waste
processing operations from manifests to sales invoices.

2025～
Phase03
Contribution to CO2 emissions
reductions

April 2023～
June 2022～
Phase01
Launch DXE Service

The business efficiency of collection andtransportation providers is improved withuse of electronic manifests and ordermanagement functions using SaaS.
Electronic manifests
Alternative to vouchers
Automatic generation ofelectronic manifests

Phase02
Release DXE Station
All waste management companies are connectedseamlessly from collection management todelivery management.

Contribute to carbon neutrality throughautomatic calculation of CO2 emissions.
Calculation of CO2 emissions
Business rating &matching

Measures on carbon
credits

Discharge, collection
and disposal
workflowCompliance check withelectronic contracts

Discharge, collection
and disposal
workflowCompliance check withelectronic contracts

Sales and billing
management

Electronic manifests:
Alternative to vouchers

Sales and billing
management

Electronic manifests:
Alternative to vouchers

Automatic generationof electronic manifests

Interface with vehicle
dispatch and driver
apps

Automatic generationof electronic manifests

Interface with vehicle
dispatch and driver
appsInterface with vehicle dispatch
and driver apps

Copyright © Asahi Holdings, Inc. All rights reserved.

27

Ref

Selected as a Constituent of Index• JPX-NIKKEI 400
We have been included in the JPX Nikkei Index 400 for three consecutive years. The index
consists of companies that are highly appealing to investors and that meet the requirementsof global investment standards, such as efficient use of capital and management
perspectives that are conscious of investors.

• FTSE Blossom Japan Sector Relative Index
We have been included in the FTSE Blossom Japan Sector Relative Index (one of the GPIF's
benchmarks), which reflects the performance of Japanese companies that demonstratestrong environmental, social, and governance (ESG) practices in their respective sectors, andis designed to be sector-neutral.

Copyright © Asahi Holdings, Inc. All rights reserved.

28

Ref

•
•
•
•

ESG Initiatives
Our business strategy is tied to carbon neutral strategy.
TCFD compliant disclosures; got for Score “B” by CDP climate change.
Disclosed Scope1, 2 & 3 CO2 emissions in FY2022.3 and start third-party verification from FY2023.3.
Social and Governance also improved. See following pages.

External evaluations*

Inclusion in ESG-related
indexes

Score

B*Based on external evaluations in FY2022
Copyright © Asahi Holdings, Inc. All rights reserved.

29

Ref

Low Carbon Technology Research, Development
and Demonstration Program• Asahi Pretec Corp. has proposed the "Development of a system for building a green hydrogen
supply chain through effective use of by-products" jointly with FC Development Co., Ltd., X-Scientia
Co., Ltd., and Sumitomo Mitsui Trust Bank, Limited., for the "2021 Low Carbon Technology
Research, Development and Demonstration Program," which was publicly called on by the Global
Environment Bureau, Ministry of the Environment and this system has been selected for a partiallysubsidized project.
• The introduction of a hydrogen generator at the Kitakyushu Plant completed in December 2022 andtechnical demonstration testing finished in March 2023.
• Aiming to create a hydrogen supply chain and selling by-products.

Copyright © Asahi Holdings, Inc. All rights reserved.

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Contribution to CO₂ Emissions Reduction by
Precious Metals Recycling
Through precious metals recycling
Reduce CO₂ emissions

Favorable environmental impact of 438,000t CO₂

Prepared based on data by the US Environmental
Protection Agency(t-CO2)Emissions comparison

Converted to forests’ greenhouse gas
absorption
184 k㎡(equivalent to 30% of the area of Tokyo’s 23 wards)

Approx. one-tenth

From mines

From recycling

Precious metals recycling growth strategy
Carbon neutral strategy

Copyright © Asahi Holdings, Inc. All rights reserved.

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•

Factory GX and Cost Reduction
Recycle 99% of the NOx gas produced as nitric acid when dissolving recycled materials using
nitric acid
Nitric acid

Hydrochloric
acid

Treatment of exhaust gas

3. Reuse

1. NOx arises(Dissolution bath)

2. Recycle
nitric acid

(Absorption tower)1.

NOx arises from the dissolution ofrecycled materials

2. Recycle nitric acidin the absorption
tower
3.

Reuse in the
dissolution bath
Dissolution bathCompetition strategy for precious metals recycling cost
Carbon neutral strategy

Copyright © Asahi Holdings, Inc. All rights reserved.

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Social: New work styles, 3-day weekends• To achieve a good work-life balance for employees in various forms.

• To improve productivity and allow our organizations to run smoothly• Two models to cover different roles and workplaces.

Three-day weekends

10 designated holidays per year
Sun.

Fri.

Sat.

Tue.

Wed.

Thu.

Fri.

Sat.

Sun.

36 designated holidays per year,
giving employees three-day weekends

Copyright © Asahi Holdings, Inc. All rights reserved.

Mon.

10 designated holidays per year
to enable flexible time off throughout
the year33

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Governance： Structure<Board of Directors>
The majority is an Independent Outside
Director, consisting of two Executive Directors
and five Audit and Supervisory Committee
Directors, including four Independent Outside
Directors, for a total of seven Directors (twofemales).
Evaluates the effectiveness every year and theresults are available on our website.
<Audit and Supervisory Committee>
Strengthen the supervisory function forbusiness execution by attending the executive
and management committee meetings of theGroup companies and share their opinionsfrom an independent point of view.
Appointed Head of Independent Outside
Director to further strengthen cooperation
between Independent Outside Directors andExecutive Directors and to carry out smoothcommunication and coordination.
<Risk Management Structure>
From a standpoint independent of thebusiness unit, the Group Risk Management
Department promotes risk management suchas compliance risks.

Establishment of governance that allows the Board of
Directors to take risks properly
Copyright © Asahi Holdings, Inc. All rights reserved.

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Trend in Metals Prices (Gold, Palladium)

Copyright © Asahi Holdings, Inc. All rights reserved.

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Trend in Metals Prices (Platinum), Mid-term
Average Price

Unit：Yen

Precious

Metal Prices

Q4

Q4

FY2022/3

FY2023/3

Average price

Average pricefor the period

for the period

Gold

7,028

8,058

1,030

Palladium

8,814

6,833

(1,981)

Platinum

3,921

4,307

386

(per gram)

Copyright © Asahi Holdings, Inc. All rights reserved.

Change◆Reference
Gold…Quote from mining company
Palladium …Nikkei low price
Platinum …retail price(exclude tax)
36