CORPORATE REPORT 2020

Corporate Group Overview

Asahi Holdings, Inc.

Totally Committed to Protecting the Natural Environment
and Preserving Resources
This slogan was coined in 1978 based on an employee
suggestion. Four decades later, it still remains a valued

Established:
July 1952
Incorporated:
April 2009
Capital:
7,790 million yen
Representative Director: Tomoya Higashiura
Nissay Sannomiya Building 16F 4-4-17 Kano-cho,Head Office:Chuo-ku, Kobe, Hyogo 650-0001 Japan
TEL: +81-78-333-5633 FAX: +81-78-333-5681
Sapia Tower 11F 1-7-12 Marunouchi,
Chiyoda-ku, Tokyo 100-0005 Japan
TEL: +81-3-6270-1833 FAX: +81-3-6270-1859
Number of employees(consolidated):
1,574 (As of March 31, 2020)
URL:
https://www.asahiholdings.com/english/

expression of our mission.

Asahi Pretec Corp.
Business Activities: Precious metals recycling, industrial waste
management and other environmental
preservation activities
Representative Director: Hiroyuki Nakanishi
Headquarters:
Nissay Sannomiya Building 16F 4-4-17 Kanocho, Chuo-ku, Kobe, Hyogo 650-0001 Japan
TEL: +81-78-333-5600 FAX: +81-78-333-5681
Sapia Tower 11F 1-7-12 Marunouchi, Chiyoda-ku,
Tokyo 100-0005 Japan
TEL: +81-3-6270-1820 FAX: +81-3-6270-1825
URL:
https://www.asahipretec.com/ (Japanese Only)

Contents
Corporate Group Overview …………………… 01

ESG Initiatives
G GOVERNANCE

About Asahi Holdings

Corporate GovernanceGroup Philosophy …………………………………… 02

Risk Management …………………………………… 28

Message from the CEO ………………………… 03

Officer Profiles ………………………………………… 29

The 8th Medium-Term Business PlanE ENVIRONMENT(FY2018–FY2020)……………………………………… 04………………………… 26

Precious Metals Recycling Business

Environmental Initiatives

History of the Asahi Holdings Group …… 06

of the Asahi Holdings Group ………………… 30

At a Glance ……………………………………………… 08

Environmental Management ……………… 32

Strength of the Asahi Holdings Group … 09

Climate Change Prevention Initiatives 33

Value Creation by the Asahi Holdings Group… 10

S SOCIETY

The SDGs at Asahi Holdings ………………… 12

Work-Life Balance and Diversity ………… 34
Health and Productivity Management

35

Business Segments of the

Human Resource Development …………… 35

Asahi Holdings Group

Communication with Stakeholders ……… 36

About the Group s Logo
The Group’s logo uses a spiral shape
as a motif to signify the corporate
stance in seeking “environmental
preservation through recycling,” amain feature of its business; the logo
also indicates continuity and growth.
The arrows pointing upward anddownward symbolize Asahi Holdings
as an advanced, cutting-edge company.
The three colors of blue, red andgreen each respectively signify “cleanwater and sky,” “the energy of people
carrying out activities” and “beautiful
nature and forests.”

Precious Metals Business …………………… 14
Environmental Preservation Business 20

Group Company Structure ………………… 39
Financial and Non-Financial Data ……… 40

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

Subsidiaries
ASAHI G&S SDN. BHD. (Malaysia)
Asahi Pretec Korea Co., Ltd.
Asahi Pretec Medical Support Co., Ltd.

Environmental Preservation Business
Domestic Business Locations

Editorial Policy

This report provides an overview of the activities
and operations of Asahi Holdings, Inc., witha focus on the company’s measures to addresssocial issues through its business activities. It has
been prepared as a way for the Asahi HoldingsGroup to communicate with a broad range ofstakeholders and explain the kind of value it isworking to create. By presenting specific group
activities and initiatives, the report also serves as
a company profile.

CORPOR ATE REPORT 2020

Report Period

April 1, 2019 to March 31, 2020

Scope

In principle, this report covers the entire Asahi
Holdings Group, including Asahi Holdings, Inc.
and its consolidated subsidiaries.

Numbers and Graphs

Kobe Head Office

The figures shown here are rounded to thenearest hundred million yen. Due to thisrounding, totals may not agree with theconstituent figures shown. The Group adopted
the International Financial Reporting Standards(IFRS) in fiscal 2016, and each reporting item
name basically follows the IFRS guidelines. The
financial figures for fiscal 2015 are also shown
based on IFRS.

Note on Future Prospects

In addition to past and current facts about theGroup, this report includes forecasts based on
strategies, outlooks, and business plans. These
forecasts were created based on information
available at the time of writing. Therefore, it isimportant to note that actual performance andresults may differ greatly from any forecastspresented here, and depend to a large extent on
future changes in the business environment.

Sapporo, Aomori, Sendai, Kitakanto, Saitama, Yokohama, Shonan,
Shizuoka, Nagoya, Hokuriku, Kobe, Okayama, Hiroshima, Kitakyushu,
Fukuoka, Okinawa

Tokyo Head Office

Asahi Americas Holdings, Inc.
Business Line: North America gold & silver refining business
Representative Director: Tomoya Higashiura
Sapia Tower 11F 1-7-12 Marunouchi, Chiyoda-ku,
Headquarters:
Tokyo 100-0005 Japan
TEL: +81-3-6895-1900 FAX: +81-3-6270-1859

Subsidiaries
Asahi Refining USA Inc.
Asahi Refining Canada Ltd.
Asahi Refining Florida LLC

Subsidiaries
JW Chemitech Co., Ltd.
Nihon Chemitech Logitem Co., Ltd.
JW Glass Recycling Co., Ltd.
Taiyo Chemical Co., Ltd.
Fuji Rozai Co., Ltd.
Inter Central, Inc.

(As of June 16, 2020)

AS AH I H O L D ING S

01

Message from the CEO

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 theGroupʼs sustainable growth and improves corporate value over the medium to long term, and directors and management
executives take the lead by serving as role models who put it into practice.

The Asahi Way“Totally Committed to Protecting the Natural Environment and Preserving Resources ”

In fiscal 2019 (the year ended March 31, 2020), consolidated operating income exceeded 20
billion yen, surpassing the full-year earnings forecast released in May 2019 and the interim

fiscal year goals of the 8th Medium-Term Business Plan released in May 2018. This was thethird straight year of record-setting profit.

As part of our efforts to further improve business results, we have been steadily updating our

Our Credo
We conserve
limited natural resources,
preserve the global environment,
and support human health.

Our Corporate Values
Cooperation with stakeholders
We constantly seek to earn even greater trust from shareholders,customers, business partners, employees, and local communities
as we work to preserve the natural environment.

Corporate governance with a balance ofprotective and proactive measures
We boldly promote growth strategies and business reform 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 groupand 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 toprevent accidents.

Highly motivated employees
We promote work-life balance for employees and continuously
improve working environments and conditions.

Strong sense of mission and high ethicalstandards
We strive to be an organization where employees take pride in
their own work and executives maintain a strong sense of mission
and high ethical standards.

Our Employee Principles
Innovate and embrace challenges
Put safety first
Maintain high quality
Promptly report (especially bad news)
Build trust and connection
The Asahi Holdings Group Code of Conduct#1 We comply with all laws andregulations#2 We respect the dictates of social
norms and our own conscience#3 We treat everyone equally, regardlessof age, gender, nationality, race,
religion, or other characteristics#4 We refrain from conducting any
political or religious activities in theworkplacebusiness portfolio based on changes in the markets for each business as well as the internaland external resource situations. As a recent example, in March of this year, we transferred a
60% stake in Fuji Medical Instruments Mfg. Co., Ltd., a consolidated subsidiary, to Johnson

Health Tech Co., Ltd. of Taiwan. Currently, we are concentrating our management resourceson the Precious Metals and Environmental Preservation businesses, in order to focus on rapid
realization of the strategies for both segments.

In fiscal 2019, we worked to accomplish our performance targets while striving tocontribute to achievement of the SDGs. Specifically, we set priority SDG-related goals basedon our Sustainability Vision and worked to achieve each goal. As part of this effort, the Asahi
Holdings Group carried out the first green bond issuance (privately placed bonds) in both thenon-ferrous metal industry and the industrial resource recycling business in Japan. We areusing the funds raised to install eco-friendly facilities and equipment.

The Group is also promoting health and productivity management based on the convictionthat the physical and mental health of every employee is a primary management concern. We
have been providing enhanced medical examinations that exceed the legal requirements, andthe employee participation rate is very high. We have also implemented a system to ensurethat employees get a rest interval of at least 11 hours from the time they finish work, to thetime they begin work the next day. In March 2020, based on recognition of these initiatives,#5 We treat customers with sincerity

we acquired certification from the Ministry of Economy, Trade and Industry as a 2020

#6 We practice fair competition andoptimal decision-making whenselecting business partners

The outlook for the global economy is very uncertain given#7 We respect the confidential
information obtained through ourwork 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; our vision of a“good employee” is a person who is not self-centered and who
contributes to mutual prosperity and the development of thebusiness.

#10 We focus on the actual sites,
actual things, and actual facts

Group Philosophy / Message from the CEOGroup Philosophy

Certified Health & Productivity Management Outstanding Organization.

the current COVID-19 pandemic, and there is growing

unpredictability for business operations. We are striving toovercome this unprecedented social crisis by staying unified

as a group in order to reward all our stakeholders through bothbusiness development and social impact. I appreciate yourcontinued support for the Asahi Holdings Group.

Tomoya Higashiura
Representative Director, President & CEO
June 202002

CORPOR ATE REPORT 2020

AS AH I H O L D ING S

03

Company Slogan

Basic Policy

Building a global company that pursues originality and growth

Be the number-one precious metal
refining company in the world

Be a leader in the environmental
business in Japan

Business Performance■■
Revenue
Operating Income■■(billion yen)

140

135.6

140
130
120

1. Building a new business foundation that will support the coming era
Precious Metals

Environmental Preservation

110.4
20.1

20

16

13.4

15

Augmenting intangible capital

10
2018

2019

2020

ResultResultForecast

The 8th Medium-Term Business Plan (FY2018-FY2020)

The 8th Medium-Term Business Plan (FY2018-FY2020)

Actively investing in human capital(FY)

The 8th Medium-Term Business Plan

Actively investing in new technology

Progress on the 8th Medium-Term Business Plan
Revenue
130 billion yen

Achieved

Achieved the target with increased
sales for three consecutive years

2. Improving productivity and work styles utilizing information processing technology
AI

Operating income
15 billion yen

Precious Metals
Business

Achieved

Sales andprofitincrease

New record profit withthree consecutive years of growth

Achieved a substantial increase insales and profits thanks to higherthan-planned precious metals
recovery and market prices

Improving productivity

Robotics
Thoroughreview ofoperations

Improving work-lifebalance

×

IoT

RPA

FintechEnvironmental
Preservation
Business

Sales andprofitincrease

Achieved higher sales and profits by
utilizing the strengths of each operatingcompany to enhance the Group's sales
system that provides services, and byworking to develop new projects

3. Sharing the Asahi Way with all employees group-wide
04

CORPOR ATE REPORT 2020

AS AH I H O L D ING S

05

History of the Asahi Holdings Group

History of the Asahi Holdings GroupOur 68-year history is one of innovation and challenge. Over that time, we have developed into a global corporategroup and continue to grow today.

1952

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
1997

Head Office building completed in Higashi-Nada-ku, Kobe City

1998

Headquarters operations transferred to Chuo-ku, Kobe City

Name changed to Asahi Pretec Corp.

1999

Initial public stock offering made on over-the-countermarket2000

Listed on the 2nd Section of the Tokyo Stock
Exchange

2002

Promoted to the 1st Section of the Tokyo Stock
Exchange

2009

Asahi Holdings, Inc. established2012

The Asahi Way established
Selected for inclusion in an ESG index by the Tokyo Stock Exchange

2015

Company with an Audit and Supervisory Committee system adopted
Nominating and Compensation Committees established
Performance-based stock-option system introduced

Technical Research Center opens in Nishi-ku, Kobe City

2016

International Financial Reporting Standards (IFRS) adopted

2017

Capital increased through new share issue

2018

The Asahi Way revised

Foundation and Initial Decades: 1952 to 1998

Act 2

Public Company: 1999 to 2011Act 3

New Development: 2012 to present

1952

Silver recycling business starts using photographic fixing solutions

2003
2006
2011

Automobile catalyst business launched2015

US and Canadian gold and silver refining subsidiaries

Precious Metals

Act 1

1975

Compact electrolytic silver collection equipment “PLATA” developed

1982

Precious metal recycling business launched in thedental field

1984

Precious metal recycling business launched in theplating solution field

1986

Precious metal recycling business launched in
the electronics components and jewelry fields

Asahi Pretec Korea Co., Ltd. establishedE-scrap business launched
Precision cleaning business launched2019

Environmental Preservation

ASAHI G&S SDN. BHD. establishedin Malaysia

1972

Equipment for detoxification of photographic effluents
installed at the Kobe Plant

1975

Industrial waste disposal license acquired from Kobe City
(detoxification of photographic effluent containing harmful substances)

1978

Registered as an environmental measurement certification office

1990

Environmental preservation business otherthan photographic effluents entered

Ability to Adapt to Change

Asahi Refining Florida LLC establishedManagement Capabilities for
Business Regeneration

Compact electrolytic gold collection
equipment “ZIPANG” developed

1994

Group Strengths Built Across the Yearsacquired from Johnson Matthey (UK), and Asahi
Refining USA Inc. and Asahi Refining Canada Ltd.
established2004

Nihon Chemitech Co., Ltd. acquired

2006

Taiyo Chemical Co., Ltd. acquired

2007

Kitakyushu Office of Asahi Pretec Corp. opened

2008Japan Waste Corporation established

2012

Inter Central, Inc. acquired

2017

Nihon Chemitech Co., Ltd. and Ecomax Co., Ltd.
integrated into Japan Waste Corporation

2020

Asahi Pretec Corp. and Japan Waste Corporation
integrate environmental preservation businesses

Industry-Leading Unique
Technologies
Trusted Asahi Brand
Highly Motivated Employees
Globally Expanding Network

Fuji Rozai Co., Ltd. acquired

Good Relationships with
Stakeholders

2009

JW Glass Recycling Co., Ltd. acquired2010

Yokohama Office of Japan Waste Corporation opened

Substantial Market Share

Ecomax Co., Ltd. acquired

Business Performance(billion yen)
160

17.5

120

15

100

12.5

80

10

60

7.5

40

5

20

2.5

0

06

(billion yen)
20

Operating Income

1964

1980

1981

CORPOR ATE REPORT 2020

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

Operating Income

Revenue

140

Revenue0(FY)

AS AH I H O L D ING S

07

Others

We are engaged in both Precious

0.8 %Metals and Environmental Preservation
businesses based on our core missionof being "Totally Committed toProtecting the Natural Environment
and Preserving Resources." We aim
to maximize the growth of both these

Asahi Holdings Strengths

Revenue by Business Segment

Revenue

Environmental
Preservation
Business

135,563million yen

R&D
expenses(A year-on-yearincrease of 22.8%)

15.3 %(20,716 million yen)

Precious
MetalsBusinessbusiness areas by practicing efficientmanagement and leveraging synergies.

(113,755 million yen)

Precious Metals Business

Number of patentapplications(Asahi Pretec)+

Many including those for inventions and expertise

Our First Business

World-Class Refining Scale

Precious Metals Recycling

North American Refining

Our business began with the recycling of silver containedin photographic materials. Today, we recycle scrap
produced by various sectors such as the electronics
industry and dentistry into high-purity precious metals. For
more than half a century, we have been providing precious
metals produced through recycling, while continuallyadapting to the changing times.

In North America, our refining operations raise thepurity of raw gold and silver received mainly from mining
companies. We are also using the refining business as aplatform to diversify our revenue sources.

74,593

2017

87,804

2018

113,755

Operating Income(million yen)

18,022
11,137 11,992

2019

2017

2018

2019

(FY)

Environmental Preservation BusinessHelping to Create a Sustainable Global Environment

Proper Waste Disposal
This business began with the detoxifying of harmful substances contained in photographic effluent, and has since expanded tothe detoxification and proper disposal of various waste materials. Through M&A, companies with different areas of expertisehave joined the Asahi Holdings Group, thereby leveraging synergies to provide customers with one-stop solutions for a wide
variety of needs.
Revenue

16,2352017

Operating Income

19,408 20,716

2018

2019

3,504

2017

3,850

(million yen)

4,355

2019

(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 income figures for fiscal 2018 and 2019 reflect this change.

12100peopleFostering the next-generation of executive management candidates

Employee health checkup rate
(Asahi Holdings, Inc.
and Asahi Pretec)

Providing full medical examinations that exceed legal requirements

Strengths rooted in Asahi's history

Paying close attention to the business environment andlifecycle and practicing ﬂexible thinking, decisive action, andquick decision-making, we have built original business models
and quickly exited businesses in decline. With the ability torespond in this manner, we will continue to maintain growth.

Industry-Leading Unique Technologies
We are proud of the original technologies we have developed. These
include technologies for recovering precious metals with high efﬁciency
that leverage our advanced analytical capabilities, technologies forproperly processing various industrial waste materials, and technologies
for product development based on accurate ascertainment of customer
needs. Through constant research and development, the Group continues
to enhance its unique technologies in each of its business ﬁelds.

Management Capabilities for
Business Regeneration
Over the past 20 years, we have brought more than 20companies into the group through mergers and acquisitions
and improved corporate management. Utilizing our ﬂexible
management capabilities matched to speciﬁc businessenvironments, nearly all of our companies enjoy better
performance than before joining the group. We will continue
working to further improve performance.

Trusted Asahi Brand
The Asahi Group's precious metal products are highly
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 ourbusinesses.

Highly Motivated Employees

Globally Expanding Network

The Group’s growth has been driven by our employees, who share
the group-wide values of the Asahi Way, deeply value trust andconnections, and are motivated by a passion for innovation andembracing challenges. The Group proactively invests in humanresources and continues to develop highly motivated employees.

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 inNorth America through a merger and acquisition, expanding ourtarget customer base to countries around the world.

Good Relationships with Stakeholders

2018

Short-term business school
placement program for
employees

Eight Factors Supporting Value Creation
Ability to Adapt to Change

Revenue

CORPOR ATE REPORT 2020

350
59

millionyen

Launched specialized teams to promote new technology development

83.9 %

Totally Committed to Protecting the Natural Environment
and Preserving Resources

08

Strong Business Foundation(1,090 million yen)

At a Glance / Asahi Holdings Strengths

At a Glance

We actively engage in dialogue with investors and listen to ourcustomers and business partners to strengthen governance anddevelop our products and services. We value the mutual trust
we have with our employees and with the local community andwork to increase our long-term corporate value.

Substantial Market ShareOur highest priority is to satisfy our customers and business
partners, and we have worked hard to improve our products
and services. Our sales and technical capabilities that meet awide range of needs have earned us the trust of our customers
and enabled us to acquire a strong market share.

AS AH I H O L D ING S

09With our two businesses as the drivers of our value creation, we have achieved business growth anddeveloped 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.

Social Issues

Capital Investment

Depletion of resources,
human rights and labor issues
in mining

Financial capital
Total
Capital69.2

Our Vision

Environmental pollution,
global warming, decline of
population in Japan, etc.

billionyen

Created Value

Naturalenvironment

Creating a recycling society
Effective use of limited global
resources

Contributing to the SDGs

Production capital
Location/Base In Japan Outside Japan

5010

Human capital

1,574

Employees

Intellectual capital

Precious
MetalsBusiness
P. 14

Environmental
Preservation
Business

Value
Creation
Process

Shareholders
and investors

Business
partners

Management Capabilities
for Business Regeneration

Industry-Leading
Unique Technologies

Trusted Asahi
Brand

Highly MotivatedEmployees

Globally Expanding
Network

Good Relationships
with Stakeholders

Substantial
Market Share

Natural capital

Precious Metals
Business

Supplying precious metals inways that are friendly
to people, society, and theenvironment
Providing one-stop solutions
for waste disposal

Improving workplace support
and job satisfaction
Utilization of diverse humanresources

Eight Factors Supporting Value Creation
Ability to Adapt toChangeIndustrial waste

Sustainable growth
Continuous and stableshareholder returns

P. 20
Employees

Scraps containing precious metals

Building a global
company that
pursues originality
and growth

Value Creation by the Asahi Holdings Group

Value Creation by the Asahi Holdings Group

Local
communities

Precious
Metal
Products

Contributing to the SDGs

Environmental
Preservation BusinessContribution throughparticipation incommunity activities

Proper
Waste
Disposal

Priority SDG-related Goals

P. 13

The Asahi Way(As of March 31, 2020)

10

CORPOR ATE REPORT 2020

AS AH I H O L D ING S

11

The SDGs at Asahi Holdings

The SDGs at Asahi Holdings
Priority SDG-related Goals
Sustainability Vision
The Asahi Holdings Group has developed its businessactivities over a long period of time based on its core
mission of "A Total Commitment to Protecting the Natural
Environment and Preserving Resources." Our businessactivities are our contribution to sustainability, and we areachieving 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 byproactively working to achieve goals that we set for thoseissues to which we can make significant contributions
toward solutions.

Expand precious metal recycling
We will expand and promote precious metal
recycling globally in order to make more
effective use of limited global resources.

Business
growthGoals Total amount of recycled precious metals: 410tons in FY2030 (1.5 times FY2015)
Effective reduction of CO2: 1.465million tons in FY2030 (1.5 times FY2015)

Solutions tosocial issues
2

3

SDG-related goals, monitoring the achievement of set targets, and communicating these initiatives both internallyand outside of the Group. These efforts are discussed and determined by the SDGs Promotion Committee, headed by

4

Board of Directors

Corporate Planning &Communications Department

P.31
・
P.33

Goals CO2 emissions from energy sources such as electricity and gasoline: Reduced 26% compared to FY2015

5
Technology
Support &Production
Management
Department

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

Oversight Representative Director and President

SDGs Promotion Team

P.24
・
P.31

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

the Representative Director and President, which steers the system.

SDGs Promotion Committee

P.18

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

The Asahi Holdings Group promotes sustainability-related initiatives by developing measures that focus on priority

Human Resources and General
Administration Department

Supply precious metals in ways that are friendly to people, society, and the environment
We will contribute to responsible management ofprecious metals by expanding the supply of precious
metal products while protecting the environment andhuman rights. We will use precious metal-containing
scrap and raw materials free from conflict minerals.

Sustainability Promotion System

P.16
・
P.31

Enhance Work-Life Balance and Employee Diversity
We will strive to enhance job satisfaction by improving thesystem to help diverse human resources to succeed within theGroup. This will be done by reforming working styles,
implementing health and productivity management, andpromoting diversity.

Group Executive Committee

Goals Achievement rate for rest intervals of at least 11 hours: 100% by the end of FY2020

P.34
・
P.35

Usage rate of Holidays for Refreshment (three consecutive days or more): 100% by the end of FY2020
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

Departments
6

Consolidated subsidiaries in Japan
Consolidated subsidiaries outside Japan

12

CORPOR ATE REPORT 2020

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 and group
volunteer activities. This initiative is called “Asahi Holdings SDG Activities.”

P.38

AS AH I H O L D ING S

13

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

Organization Design
Board of Directors

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

Corporate Governance Structure

Outside Directors

General Shareholder s Meeting
Appoint/
Dismiss

Representative
Director

Audit and Supervisory
Committee: 4 Directors

Audit/Supervise(including 3 Independent
Outside Directors)

The Nominating/Compensation
Committee: 3
Directors on Each

Direct/ReportInternal Control
Promotion Meeting
Safety Management
Meeting

Collaborate
AssistAudit andSupervisory
Committee
Secretariat

Audit
Department

Internal
audit

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

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

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

Evaluating the Effectiveness of the Board of Directors

Inquire/Reply(including 2 Independent
Outside Directors)

Group
Executive
Committee

Appoint/
Dismiss

Accounting Auditors

Appoint/
Dismiss/
Supervise

Appoint/
Dismiss

Board ofDirectors: 8
Directors

Executive
Directors: 4

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

Adherence to Japan s Corporate Governance CodeGOVERNANCE

Corporate Governance

ESG Initiatives

GOVERNANCE

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

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

Nominating and Compensation Committees
Collaborate

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

Group Executive Committee

Departments and Group Companies

26

CORPOR ATE REPORT 2020

Important matters delegated to the executive directors aredeliberated and decided by the Group Executive Committee. Other
matters related to business execution are deliberated and decided
by the Group’s key company management meeting.
AS AH I H O L D ING S

27

ESG Initiatives

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

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

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

Business Continuity Management (BCM)

Avoiding All Interactions with Organized Crime and otherAnti-social Forces

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

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

Tomoya Higashiura

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

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

Amane Kojima

Hiroyuki Nakanishi

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

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

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

GOVERNANCE

Risk Management

Audit and Supervisory Committee Members

Yuji Kimura

Kyoko Kanazawa

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

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

Yoshikatsu Takeuchi

Yoshinori Hara

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

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

CORPOR ATE REPORT 2020

AS AH I H O L D ING S

29

ESG Initiatives

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

ENVIRONMENT

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

Recycling

Expand precious metal recycling

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

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

Amount of precious metals recycled in FY2019

367

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

Priority SDG-Related Goal

Emissions factors used
for calculation(tons-CO2)

Approximately
one-tenth

Emissions from refining
mined raw material

Refining
mined rawmaterial

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

Recycling

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

Recycling
Products

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

Emissions fromrecycling

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

Industrial waste

Expand proper industrial
waste disposal

Precious Metal bullion

Raw materials for recycling

Asahi
Gr

Holdings
oup

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

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

Amounts of proper industrial waste disposal FY2019 results

Recycling
Resources

INPUT

Emissions
reduction
benefit

PlantsEnergy Sources
Heavy oil

49,99million kWh / year

762kL / year

Kerosene

Light oil

468 kL / year

3,350kL / year

Gasoline

Urban gas

972 kL / year

3.06million m / year

CORPOR ATE REPORT 2020

Business sites,
research lab, etc.

EnergyElectricity

21,000 tons / year

SludgeOther waste plastic, etc.)

130,000tons / year

95,000tons / year

23,227(waste reagents,

Total

358,000

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

Priority SDG-Related Goal

Reduce CO2 emissions

3

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

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

CO2 Emissions: FY2019 Results

Effluent

272,902m

Chemicals

17,024

Water

479, 820m
30

94,000 tons / year

18,000tons / year

Waste

tons-CO2

15 t / year

Glass and ceramic waste

Waste oil

1.031million

LPG

Liquid waste

CO 2

3

108,064

3

OUTPUT

Compared
to FY2015

9

reduction

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

AS AH I H O L D ING S

31

ESG Initiatives

ENVIRONMENT
Priority SDG-Related Goal
Environmental management structureManagement

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

Climate Change Prevention Initiatives
CO2 emission trends

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

General Environment
Committee

40

40.8
14.7

ISO Office

57.1

Supervisors

0Internal Auditors
Environment
Preservation
Administrator
Environment
Committee
ISO 14001 certificate

Departments

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

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

39.4

39.1

40.0
2.8

14.0

15.3

14.5

51.8

20
26.1

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

60

Chief Environment
Control Manager

Supervisors

Reduce CO2
emissions

ENVIRONMENT

Environmental Management

We actively participate in cleaning
activities in each region.

2015 (Base year)

25.4

48.4
23.8

2017

68.0

22.7

2018

2019

(FY)

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

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

Calculation method

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

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

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

Okinawa: Beach cleanup Aomori: River cleanup

32

CORPOR ATE REPORT 2020

Nigata: Road cleanup

AS AH I H O L D ING S

33

ESG Initiatives

SOCIETY
Health and Productivity Management

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

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

Priority SDG-Related Goal

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

Enhance work-life balance and diversity promotion
FY2019 Results

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

100% by the end of FY2020

98.3%

100% of usage rate by theend of FY2020

98.2%

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

* Target for Group companies in Japan

Asahi e-Learning

Asahi Small Group(ASG) Activities

Other
Business school attendance(based on employee applications)

2.07%

Rank-based education

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

Education for new hires

Selective leader
training

Percentage of women in
managerial positions:
3.88%

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

Distance learning

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

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

Human Resource Development

Step-up training

Promoting the employmentof people with disabilities

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

Training for new
executive hires

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

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

Upper-level
positions

Increasing the percentage of womenin managerial positions

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

Robust Health Exam Program that Exceeds Legal Requirements

Basic-level
positions

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

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

Training
before start
to workTargets

Professional and specialist
positions

SDG-Related Goal

SOCIETY

Work-Life Balance and Diversity

Training for new hires

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

34

CORPOR ATE REPORT 2020

Short-Term Business School Placement

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

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

AS AH I H O L D ING S

35

ESG Initiatives

SOCIETY
Partnering with Shareholders and InvestorsServing our Customers

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

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

IR Activities

General Shareholder s Meeting

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

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

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

Dividend Per Share

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

68.6

70

52.6

52.0

3.2

ForeignInvestors
10,233,475shares

39.1

32.7

25.7

33.9

30

10

30

30

30

30

30

30

30

30

30

30

2013

2014

2015

2016

2017

Stock Prices■Trading volume (shares)

120

60

70

60

60

2018

2019

3

Number ofshareholders

Individuals
and Others
15,291,825shares

38.4

60

Financial
Institutions
12,395,500shares

0

31.1

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

2,500

12,5002,000

10,000

1,500

7,500

1,000

5,000

500

2,500

15,0003,000

0April 2014

CORPOR ATE REPORT 2020

April 2015

April 2016

April 2017

April 2018

April 2019

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

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

Procurement Initiatives

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

16,092(Unit: JPY)

23.3

20

0.1

Other
Companies
1,288,589shares

5040

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

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

Treasury
Stocks
33,537shares

1.5

60

Fair Trade Measures

Quality Assurance System(Basic Policy on Shareholder Returns)

36

SOCIETY

Communication with Stakeholders

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

0

AS AH I H O L D ING S

37

Asahi Holdings
Board of Directors

Partnering with Employees

Group Company Structure

SOCIETY

Group Company Structure

Audit and Supervisory Committee

Representative Director

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

Asahi Small Group (ASG) Activities

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

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

Financial Planning Office

Audit Department

Corporate Planning & Communications Department
Legal Department
Overseas Business Development Office

Asahi Pretec
Board of Directors
Representative Director
Precious Metals
Business Unit

Auditors
Precious Metals Business Division

Asahi Pretec
Medical Support

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

Priority SDG-Related Goal

Asahi Pretec Korea

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

Environmental
Preservation
Business Unit

Environmental Preservation Business Division
Affiliated Business Management Division

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

Sales Office Management Department
Technical
ResearchCenterDomestic Sales Sites

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

Asahi Americas Holdings, Inc.
Board of Directors
Representative Director

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

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

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

CORPOR ATE REPORT 2020

AS AH I H O L D ING S

39

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

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Revenue*2

Billion JPY

110.5

151.1

96.4

94.3

111.4

119.4

106.8

115.8

110.4

135.6

Operating income*2

Billion JPY

10.7

11.2

7.5

9.6

10.5

6.1

2.0

13.8

13.4

20.1

Pre-tax income

Billion JPY

10.5

10.8

7.3

9.9

9.7

5.9

1.8

13.4

12.4

17.7

Income for the year attributable to owners of the parent company

Billion JPY

6.1

5.9

4.5

6.0

5.8

2.9

-1.2

9.4

9.0

9.8

Total capitalBillion JPY

34.3

38.9

42.0

46.5

51.0

49.0

44.8

64.4

67.8

69.2

Total assets

Billion JPY

59.1

58.3

62.3

66.1

104.9

101.6

89.0

131.5

160.3

230.0

Capital investment

Billion JPY

3.4

1.6

1.3

1.1

1.5

1.7

3.0

3.1

5.7

4.2

Depreciation

Billion JPY

2.1

2.3

2.1

1.8

1.8

2.4

2.3

2.3

2.3

2.8

R&D expenses

Billion JPY

0.38

0.36

0.35

0.37

0.44

0.50

0.51

0.51

0.45

0.35

Cash flow from operating activities

Billion JPY

5.5

11.3

-0.4

14.1

9.4

14.3

3.3

-13.4

-20.6

-60.3

Cash flow from investing activities

Billion JPY

-3.7

-2.3

-2.1

-1.1

-29.6

-1.9

-2.4

-2.8

-5.6

-1.9

Cash flow from financing activities

Billion JPY

-1.1

-7.7

2.6

-8.0

21.4

-6.5

-6.6

29.8

18.3

65.2

Basic earnings per share (EPS)

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

JPY

1,062.30

1,198.77

1,288.56

1,422.51

1,542.82

1,490.56

1,359.02

1,627.20

1,723.16

1,758.00

Dividend per share

JPY

50.00

60.00

60.00

60.00

60.00

60.00

60.00

63.00

120.00130.00Operating income margin

％

9.6

7.4

7.8

10.2

9.4

5.1

1.9

11.9

12.2

14.8

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

％

19.1

16.2

11.2

13.6

11.9

5.8

-2.6

17.3

13.6

14.4

Pre-tax return on assets (ROA)

％

19.2

19.0

12.9

15.6

12.4

5.7

1.8

12.2

8.5

9.0

Ratio of equity attributable to owners of the parent company

％

58.0

66.6

67.3

70.1

48.2

47.8

49.8

49.0

42.3

30.1

Payout ratio

％

26.3

32.8

43.1

32.7

33.9

68.6

-

23.3

52.6

52.0

1,206

1,277

1,328

1,360

2,080

2,005

1,961

1,928

2,042

1,574

Financial Data *1

Financial and Non-Financial Data

Financial and Non-Financial Data

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

％

9.0

9.4

10.4

10.5

12.0

11.7

11.8

11.5

11.6

9.9

Percentage of employees outside Japan

％

1.9

2.8

3.2

4.0

20.2

18.4

17.5

16.7

21.2

23.4

Electrical power consumption

1,000 kWh

24,09723,186

22,66922,96323,29247,522

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

tons CO 2

75,322

71,30277,75583,93991,494

101,540

94,54095,034

90,162

108,064

-

-

-

-

-

348

290

230

362

303

-

-

-

-

-

94.0

93.8

93.0

93.9

90.8

-

-

-

-

-

-

-

-

-

10,312

-

-

-

-

-

-

-

-

-

87.2

Number of employees in leader training

-

-

-

-

-

-

30

30

29

25

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

-

-

-

-

-

-

-

-

-

12

Number of employees using distance learning
Distance learning participation rate％

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

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

40

CORPOR ATE REPORT 2020

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

AS AH I H O L D ING S

41

Asahi Holdings, Inc.