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

INDEX
25 Corporate Governance
27 With Our Customers
28 With Our Communities
30 With Our Employees
35 With Our Shareholders and Investors

For the Society

CORPORATE GOVERNANCE
Under the holding company structure, the Group is committed to building a stronger group governance and driving risk management

Corporate governance philosophy
In order to meet the expectations of stakeholders and to maximize the corporate value, we are committed to enhancing ourcorporate governance with Asahi Holdings taking the initiative as a holding company. Operating companies, Asahi Pretec andJapan Waste make timely decisions and develop operations in each specialty area in order to reinforce competitiveness andexpand profitability. With each company carrying out its functions, we will strive to achieve lasting growth and development
as a corporate group. Currently, one out of the seven directors and two out of the three statutory auditors are selected asexternal corporate executives, monitoring and supervising management from an independent perspective.

● Asahi Holdings Corporate Governance Structure

Shareholders' General Meeting

Board of Directors

Accounting
Auditors

Board of Auditors

audit

Auditors(including 2 outside
auditors)

7 Board Member(including 1 outside director)(Independent
Auditor)collaboration

audit

Representative Director

Group Management Strategy
Meeting

Each Department of Group Companies

audit

Internal Auditing
Asahi Pretec

Japan Waste− 25 −

audit

Maintaining an internal control system

Risk management

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

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

ComplianceBusiness continuity plan (BCP)

We consider compliance a priority issue in delivering fairbusiness activities and ensuring legal compliance and highethical standards. Particularly, operations related to appropriate processing of wastes are based on environmental
laws and regulations as well as governmental licenses, andeach and every employee is required to always act with ahighly compliant mindset. We are conducting activities toraise the legal compliance awareness of each and every
employee through education and mutual communication,
along with rules and manuals related to compliance.

Due to various factors such as large scale disasters, there is arisk that our Group’s functions needed for business continuity
may weaken. As an action plan to achieve quick restorationof mission-critical functions even after a disaster, we createda business continuity plan and have carried out thefollowing initiatives:•Installation of power generators in major plants to
supply backup power•Suppression of peak power [use] by adjusting running
hours of plant equipment and by saving electricity inoffices•Strengthening of backup of information systems
including servers•Decentralization of some parts of production andprocessing (multiple locations supplementing eachother)•Enhancing of earthquake resistance in equipment andfacilities•Reinforcement of facilities to prevent leakage or
diffusion of chemicals, etc.
•Storing of drinking water and food at all Group
locations

IT Protection Education Program•Maintaining a system for safety confirmation andupdated emergency contact information

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

Stock-pile for Emergency− 26 −

For the Society

WITH OUR CUSTOMERS
We make efforts to provide detailed responses to the wide-ranging needs of each of our customers
under our motto that “customers come first”

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

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

Our group articulates “Prohibition of Acts That Compromise
Fair Competition”, “Confidentiality of Supplier Information
and Technology”, “Prohibition of Inappropriate Offering/
Receiving of Benefits” in the Asahi Way (page 3) and otherrules, to ensure fair trade practices and compliance withcorporate ethics.

Quality Assurance System

Risk Management System for
Information Leakage

We hold a Quality Assurance Meeting that is led by the Quality Assurance Division through an amalgamation of our Sales
Division, Technology Development Division, and Product
Manufacturing Division. Through this meeting we share
information such as customer opinions and market trends inour efforts to improve customer satisfaction. In addition, inorder to provide customers with products that earn greater
reassurance and satisfaction from customers, we haveacquired ISO9001 certification and strive to make continuous
improvements to our quality management system andmaintenance and enhancement of quality. In March 2010, we
integrated the certifications of four bases which acquired
ISO9001 certification and started operation of a company-wide
uniform quality managementsystem. Furthermore, Asahi
Pretec also makes efforts to reduce the environmental burden while giving consideration to “green procurement” andthe Restriction of Hazardous Substances (RoHS) Directive,
which is a European regulations on chemical substances.

We employ the latest security measures on PCs andtablet-type devices used by sales persons. In case of theproperty loss or theft, we can reduce the possibility of
information leakage close to as zero by means of deleting
the information through remote operation, and etc.
Recycling Centers located in Saitama and Amagasaki
acquired ISO27001 certification in March 2011. We provide a data deletion and HDD destruction, etc. service asmeasures to prevent information leakage in connection with disposal of PCs and contribute to information protection through our business activities.

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

Data deletion using an exclusive software

ISO9001 Certificate− 27 −

WITH OUR COMMUNITIESUnderstanding and support for our business from people of the local community is indispensable for us
since we develope our business operation across the county. To be a company that coexists with society
as a corporate citizen, we carry out activities that are rooted in communities in various ways

Our Initiative Activities● Adopt Program in Koga City, Fukuoka

Prefecture

Fukuoka office participates in a volunteer program, “Adopt
Program in Koga City”. This program is designed for being
attentive to beautification and conservation activities aiming
for beautiful cityscapes by Koga City, partnering withcorporations and business offices. To enhance our awarenessfor environmental beautification of public spaces such as
roads, etc., a variety of organizations like elementary schools,
junior high schools and high schools in Koga City conduct theactivities regularly. We will continuously make an active
contribution for the environmental conservation of thecommunity.

● Forest Project of Kobe Association of

Corporate Executive

We participate in “Forest Project of Kobe Association of
Corporate Executive (KACE)”, a volunteer program hosted by
KACE. Three years have been passed since we initially joined
the program, whose objective is to assist efforts to foster theforests over five years. We develop the activities to deepen
our understanding for nature and to nurcher the forests forthe next generation through forest improvement, such astree thinning and cutting on Mt. Futatabisan in the Rokko
Mountains, and nature observation.

● Registration as a Place for “Refuge forChildren Dial 110”

Aomori office has registered and conducted a volunteer
activity, called “Refuge for Children Dial 110”, for thechildren’s safety in the community. We offer drop-in
emergency assistance and refuge for children as a temporary
shelter when they suffer something dangerous or fear for
their physical safety. At the same time, a report for the police,
school, family, etc. are provided to protect their safety. A
poster for “Refuge for the Children Dial 110” is posted at aplace where children can easily recognize. We will make aneffort to conduct community-based activities to foster asafety environment, in which children can live freefrom anxiety.

− 28 −

For the Society

Social Contributions ThroughBusiness Activities
We agree with the purpose and suppor t the activities of the 8020
Promotion Foundation for the 8020 Campaign (a campaign to still
have over 20 of one’s own teeth upon reaching the age of 80).
We also recycle the removed teeth crowns collected by dental
clinics that agree with the purpose of the cooperating organization for reproducing precious metals such as gold and palladium.
The net profits obtained from sales of these precious metals are
made available as funds to assist the activities of various cooperating organizations.
©V. Dupont/Medecins Du Monde
Medical assistance by Medecins Du Monde<Major organizations that our company assists>● Medecins Du Monde Japon,● The 8020 Promotion Foundationa Specified NPO(Provides medical assistance to people sufferingfrom wars and natural disasters)● The Japan Cleft Palate● Nippon Foundation("TOOTH FAIRY" Project)Foundation, a Specified NPO(Provides medical assistance to children withoral handicaps such as cleft lips and palates)

TOPICS 1
Medical Support by Free Operation for Patientswith Cleft Lip and Palate in Vietnam ”
Japan Cleft and Palate Foundation is engaged insupport activities for children with congenital physicalimperfections and provides free operations, relief workin developing countries, etc. The Foundation has been
engaged in medical assistance activities over 20 years in
Vietnam and provided free operations for about

3,000 people with cleft lip and palate. Asahi Pretec,
as a cooperative company, has carried out support
activities through our precious metal recycling business.
Our assistance activities were highly appreciated and we
received a letter of appreciation from Principal of Hanoi
Medical University at an international convention, which
was held in Hanoi by commemorating the 40th anniversaryof diplomatic relations between Vietnam and Japan. We
continuously serve social roles through our precious metal
recycling business.
Awards ceremony at the convention

TOPICS 2
A visit of Hidaka High School for our Factory TourWe perform a factory tour as part of CRS activities for high-school students. In October
2013, 80 students from Hidaka High School in Wakayama Prefecture were welcomed
to Amagasaki and Kobe Factory for each site factory tour. We mainly introduced rare
metal refining process at Amagasaki Factory and Treatment process of industrial
wastes at Kobe Factory.

− 29 −

WITH OUR EMPLOYEES
We aim to create a livable and cohesive workplace through respect for the individuals and daily work.
Also, we are providing various support so that each and every employee can bring out the best in
their work and find their duties “rewarding” and “fulfilling”

Creating an Environment Where People Can Work Free from Anxiety

Work-Life Balance

It is very important not only for employees but also for the company to go through life
with giving free scope to one's talent and striking a balance between challenging
assignments and fulfilling personal life. The important things in one's personal life
diversify according to individual values such as family, health, sports and hobbies.
We support all employees, as a corporate, in order for them to have a balance between
private and work life.

● Employee General Meeting● Mental Healthcare

An employee general meeting is held every year. At themeeting, a message from CEO, the previous fiscal year's
performance results and the priority issues of the current
fiscal year are presented. Also a panel discussion between
top management and employees are implemented.

We believe mental health care is vital for the employees’
productivity and the improvement of vitality. We provide
an individual consultation and a preventive seminar working
with an industrial physician with expertise in mental healthcare.

Individual Consultation
General Meeting of Employees● Our Healthcare Administration
Regular physical examination programs (e.g. checkup for
preventing lifestyle-related disease, checkup for people
engaged in designated operations, and general medical
checkup), which are required by law, are offered to all
employees. For those aged 45 or above and all managers,
a comprehensive medical checkup program is offered.
We also support medical checkups for brain and PET scansfor early detection of cancer upon requests from eligible
employees.
100% of the employees go through these routine checkups,
which shows that both the company and the employees arecommitted to improving health, preventing disease, anddetecting early symptoms.

Mental Health Care Management Traiing− 30 −

For the Society● Self-assessment system● Childcare Leave

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

The Company supports the balance between birth, childcare
and nursing care of family members and work. We support
working patterns suited to the lifestyles of employees by
shortening working hours specified in the childcare leavesystem.

● Interviews for all employees● Holiday for Refreshment

Every three years, individual interviews are conducted forall employees. Employees are asked about their current
work environment and their jobs in the interview. In orderto improve the working environment by taking into accountthe work-life balance for each employee, employees areadvised to maintain an appropriate workload as well as
appropriate number of working hours.

We provide a welfare benefit plan, "holiday for refreshment", where employees can take 3 to 5-consecutive-day
holiday every year from the 2nd year after joining thecompany. Added to the weekends, 9-consecutive-day
vacation can be taken. Employees can enjoy spending timewith family in traveling and doing hobbies.

● Employee Survey
Every three years, an “employee surveyl” is given to allcompany employees. This survey is carried out in orderto grasp objectively employees’ satisfaction, attitudes,
values and recognition of corporate culture concerning
workplace, assignment, supervisors and the company.
The survey results are used to promote the further development of the organization and its employees.

● Employment of Disabled Persons● Supporting Company Club Activities

Employees with impairment engage in each job at the same
workplace with healthy people.

Communication between colleagues and clients is enhanced
through club activities such as baseball and futsal.

− 31 −

Fostering Human Resources

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

Human Resource
Development● Employee Training Program
Our company provides education suited to the employees’
level of proficiency from the time they join the company(Entrance Training, Step-up Training, Power-up Training), as
well as education and training for selective human resources
by rank (Junior Leader Training, Manager Training, Leader
Training). In addition to which we also instill each individualwith the practical knowledge needed by professional

human resources through training by division andtechnical ability education. We have also establishedtraining programs which make it possible to nurture
specialized capabilities.

Training by rank

Entrance training

Training by division

Self-education

Support for acquiring qualifications

Correspondence education

ASG Activities(Asahi Small Group Activities)

DIPS Training(Dental Division training)

Promotion test and training

Leader Training

Manager Training

Junior Leader Training

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

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

Primary
management
positions

Training upon joining
the company

Mid-level
management
positions

Training for management positions
upon joining the company

High-level management positions
Specialized andfull-time positions

Training for new entrants

Power-up Training

Junior Leader Training− 32 −

Manager Training

For the Society

Promoting Safety and Health Activities

Initiatives for OSHMS

Environmental Safety Education

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

Environmental safety education is conducted as part of the
Human Resource Fostering Program in the employee training system , in which attitudes toward conducting a safety
work and basic knowledge of hazardous substances are
educated. Furthermore, we also incorporate a role-playdiscussion into the education assuming a specific emergency
situation such as fire breaking-out during working hours.
We also devise means to enable individuals to correctly
understand the actions that should be taken at the actual
work site.

A(Act)

Revise and improve

C(Check)

Confirm and evaluate
the progress

D(Do)Environmental safety education

Implement
the plan

In terms of on-site support, on-the-job training (OJT) is
provided by specialized staff of safety and health at the siteof sales and plant. We strive to improve health and safety inworkplace environments by means of safety guidance forworkers and persons in charge.

P(Plan)Create a plan
Prioritize the issues
Identify and evaluate
risk factors* Occupational Safety and Health Management System

TOPICS
Project for Accident Eradication
Social demand for safety has steadily been increasing
year by year while we have promoted proactively
to extract, improve and reduce potential risks
at the workplace. Therefore, we started “Accident
Eradication Project” in October 2013. By assigning
the top management as the project leader, we aim toconstruct a prompt and essential safety management
system. We aim for providing a safe workplace sothat employees can work free from anxiety bysecuring, maintaining and improving higher safety
standards.

Plant training− 33 −

Responding to Emergencies

Safety Commendation Activities

As safety measures, we examine risks in business activities
closely and decide a "Safety Promotion Administrator" ateach site in order to prevent accidents/problems. In addition,
we organize a system properly for a prompt response in theevent that something unexpected occurs.
As a means of internal and external response at the time of
emergency, we have prepared "Management Manual for
Emergency " and also distributed "Manual at the time of Accident and Disaster " to all employees, which stipulates guidelines at the initial stage of accident and disaster.

We make an effort to enhance our awareness for safety andevery year some business sites and employees are commended for their contribution to their outstanding achievement
at the general meeting of employees.

commendation for safety activities

Emergency training

Creating Vital Workplaces Through Small Group Activities
We implement Asahi Small Group Activities (what we call "ASG Activities") with voluntary and indepent-minded participationfrom employees within the same workplace. Through these activities, participants use their creativity to work toward solving
issues and problems within their workplace. Groups with outstanding efforts are awarded at the general meeting of employees.

INTERVIEW

Taking Part in ASG Activities

I work at Administration Group in Yokohama Office in charge of administrative task of Precious Metal Recycling andEnvironmental Preservation Business. Our FY2013 target of ASG(AsahiSmallGroup) activities is to enforce our organizational
power by focusing on the following three - “Efficiency in Operation”, “CS Improvement” and “Cost Reduction”.
For operational effi ciency, we reviewed all offi ce work and offered effective alternatives for improvement andput them into practice. For CS improvement, we promoted to share informationinternally and to enforce communication for smooth and sophisticatedtelephone skills. For cost reduction, we reconstructed a system, in which
each employee could address cost reduction proactively by raising eachindividual’s awareness of responsibility for the cost reduction.
Implementation of this restructuring through ASG activities resulted inreform of the mindset of all members of Administration Group. This activity
developed the willingness for one’s task and enforced the communication
among others that led to improve the strength of both organizationand motivation as a group of “thinking”. Furthermore, we will engage inorganization management keeping in mind “Innovation and Challenge”
Group Leader Hirotaka Nagaoka
stipulated in ASAHI WAY, our corporate credo without being satisfied of
Yokohama Officethe situation in which we are now.

− 34 −

For the Society

WITH OUR SHAREHOLDERS AND INVESTORSWe are proactively promoting strategic focus on growth and striving to improve corporate
values through business development and provide stabilized returns to our shareholders● Net Sales● Operating Profit(JPY in 100 million)(JPY in 100million)

1600

120

1,511

1200
800

1,105
964

826

80

943

112

107

100
79

96
75

60
40

400
0

20
0
2009

2010

2011

2012

2013

2009

● ROE (Return on Equity)

2010

2011

(%)
70

70.3
66.6

19.1

15

67.3

65

16.2

15.4

2013

● Capital Equity Ratio

(%)
25
20

2012

11.2

13.5
60

59.6

58.0

10
55

5
0

2009

2010

2011

2012

50

2013

2.04%

Treasury Stocks
3,518,557 stocks

8.60%

Indivisuals and Others
13,742,235 stocks

2012

2013

● Dividend Per Share

37.91%

year-end dividend
(JPY)

60

Financial Institutions
6,290,950 stocks

17.35%

2011

In order to continue to grow our corporate value, we carry out
strategic investment for growth while working to enhance
our revenue base. Our payout ratio is a key metric in the distribution of the proceeds of this, and we return profits to ourshareholders through the provision of a stable dividend.

Securiteis Firms
740,893 stocks

Other Corporations
3,117,150 stocks

2010

Basic Policy on Shareholder Returns● Stock Distribution by Shareholders

9.71%

2009

Foreign Investors, etc.
8,844,559 stocks

24.40%

50
40

mid-term dividend

60.0

60.0

60.0

30.0

30.0

30.0

50.0

50.0

25.0

25.0

25.0

25.0

30.0

30.0

30.0

2009

2010

2011

2012

2013

30
as of March 31, 2014

20
10
0

− 35 −