2. Business

21

Global Trading

Global Trading Business

Sales (left scale)

Sales (left scale)

Ordinary profit (right scale)(Billions of yen)(Billions of yen)

6.0

60.0

25.0

5.0

50.0

The push for carbon neutrality has been gaining momentum,
20.3 both in Japan and
18.8
20.0
4.0
overseas.
14.2

15.0

2.75

30.0

2.0

20.0

Global Trading Business

5.0

1.0

10.0

0.0

0.0

0.0

1.56

10.0

the countries that need them. Going forward, we will increase our handling volume offerrous and non-ferrous metals and explore new products, thereby expanding thecircular economy worldwide.

FY06/21

Sales (left scale)

FY06/22

FY06/23

Domestic and Overseas Sales of Ferrous Scrap, Which Is Used in Steelmaking
Ferrous scrap is an important recycled resource in Japan,(Billions of yen)

2.0

1.00

2.0

42.9
31.0

34.4

1.14

1.6
1.2

0.71

0.8

0.22
FY06/21

FY06/22

FY06/23(Billions of yen)

0.6

0.24

0.47

0.35

0.50

0.12

International0.5Flow of Waste Paper, Used Clothes,
Rubber, and Other Recycled Goods
0.09
0.25
0.35

electric furnaces that melt ferrous scrap. This approach is0.0

Ordinary profit (right scale)(Billions of yen)

0.3

toward decarbonization is leading to plans to expand

0.4

these activities, we aim to expand our overseas
network and promote the global circulation of recycled resources,
1.63
0.5
0.20
0.46
1.5
0.75
actively contributing
to global efforts
0.44
1.34towards a low-carbon society.
0.57
0.4
0.16
1.0

which is poor in natural resources. The global trend

2.4

Sales (left scale)

Ordinary profit (right scale)(Billions of yen)(Billions of yen)

40.0

3.0

The ENVIPRO Group aims to deliver recycled resourcesin the most optimal manner to2.08

Ordinary profit (right scale)(Billions of yen)

30.0

0.2

0.0

0.00

0.08

0.12
0.08

0.1

0.04
The company exports waste paper (as a raw material for papermaking) and used clothes (reused commercial(0.08)

said to generate less CO2 than blast furnaces that usematerials). We (0.5)
have dedicatedwarehouses
for waste
paper (0.25)
in the city0.0of Niigata
and in Imari,Saga Prefecture.
FY06/21
FY06/22
FY06/23
FY06/21
FY06/22
FY06/23

iron ore and coke. Demand for ferrous scrap is thus slated

0.00

Since fiscal 2022, in addition to waste plastics, we have also begun handling recycled rubber raw materials,

to increase. NEWSCON Inc. conducts quality control inimporting and selling rubber tubes and selling non-vulcanized rubber in Japan and overseas.

accordance with customer needs and sells ferrous scrap
to (blast furnace and electric furnace) steelmakers inJapan and overseas. In response to the growing demand
for steel in Vietnam and other countries in Southeast and Ferrous scrap
Southwest Asia, we have established new and expanded
collection bases in Japan to increase the amount of steel we can collect. The company has earned plaudits for its
quality control and delivery system, which have helped it to sustain long-term contracts. In addition, astransportation logistics grow more diverse, we have been making active use of bulk shipping (small and largevessels) and container transportation to sell ferrous scrap on a global scale.

Waste paper

Used clothes

Rubber tubes

PET flakes

Processing and Supply of Nonferrous Metal Scrap
Promotion of New Business and the Discovery of New Commercial ProductsNEWSCON processes and supplies a variety of nonferrous scrap that has been
shredded and sorted by the ENVIPRO Group and domestic waste disposal

We are actively engaged in discovering new products with a focus on the keyword “recycling” and developing newcompanies to meet the needs of domestic and international customers. In Augustbusinesses with partners nationwide. In addition to having expertise in handling palm kernel shells (PKS) and wood2023, we commenced operations at a branch in the Netherlands, using it as abase for export-import and trilateral trade between Europe and Asia. ThroughAluminum shredder scrap

pellets, which fuel biomass power plants, we handle difficult-to-process scrap and other materials.

2. Business

ENVIPRO Group Sustainability Report 2023

22Global Trading

Interviews at Overseas Bases

The New Cyterrace Commences Operation

NEWSCON Inc., which creates new business opportunities on the global
stage, commenced operations at a new branch in the Netherlands inAugust 2023.
Below are messages from the representatives of our three overseas
locations, including existing offices in Vietnam and the United Kingdom.

September 2022 marked the establishment of Cyterrace Co., Ltd. The newcompany took over the logistics agency business from 3WM Co., Ltd., whichspearheads the reuse of used automobiles and parts. Below is a message fromKenro Suzuki, the new company’s president.

Interview 01

Branch in the Netherlands

Branch in the Netherlands

NEWSCON Inc. is expanding its recycling activities worldwide. Recently, we have been collaborating withrecyclers in Europe, and we continue to maintain those partnerships. August 2023 marked theestablishment of NEWSCON Netherlands in Rotterdam, bringing us closer to our recycling partners inEurope. Leveraging our over 73 years of expertise in recycling and strong customer relationships
throughout Asia, we aim to be a reliable partner for sustainable raw materials in Europe.
We are prepared to address the increasing demand for the recycling of e-waste, batteries, and metals,
driven by the digital transformation and the widespread adoption of electric vehicles.
Our mission is to expand the circularity of reusable materials in Europe through collaborative partnerships,
supported by specialized knowledge in recycling and innovative solutions. We invite you to join us on thisjourney towards a carbon-neutral society.

George Harris
Deputy General Manager,
Recycling Raw Materials
DivisonGeneral Manager,Global
Business Development Division
General Manager,NEWSCON
Netherlands

Interview 02 Vietnam Representative Office
I feel that the recycling expertise and technologies developed in Japan are now needed in Vietnam, as thecountry has been rapidly establishing environmental laws and systems, including the implementation of a
new environmental law starting in 2022. Companies are beginning to work earnestly toward achieving
these goals.
Amid a changing environment, we are no longer seeing Vietnam merely as the endpoint for Japan’s
resource circulation but also as a starting point to establish environmental businesses. Going forward, weaim to become more deeply involved in Vietnam by actively collaborating with local companies.

Interview 03

Shinji Imabayashi
Branch Manager, Vietnam
Representative Office

UK Representative Office

The UK Representative Office supports the collection and sales of mixed metals, including non-ferrous andprecious metals, as well as electronic substrates handled by NEWSCON. In addition to the trading

We were spun off from ENVIPRO Group company 3WM in September
2022 and established as a specialized logistics company. We began
operations in January 2023. We handle a wide range of import andexport cargoes across various industries, with a particular focus on
logistics arrangements for the export of reusable products such as
used cars and used parts. We deliver cargoes to destinations
worldwide, including Dubai in the Middle East and various countries inAfrica.
In this regard, our company embraces the “one-stop logistics service” approach. We offer comprehensive services
spanning customs clearance and export procedures to container booking, land transportation arrangements, vehicle
management at the receiving yard, and container bundling. For the export of vehicles and parts, we leverage ourextensive experience to arrange the best transportation methods and deliver items to the desired port quickly andcost-effectively. With our unique network service that covers every corner of Japan and the world, we prioritize thedesires and sensibilities of our customers, ensuring reliable delivery to our customers across the seas.
We have earned plaudits from numerous customers for the dedicated plans we offer in such reuse industry
categories as used cars and parts, and for the provision of services tailored to their specific needs andcircumstances.
In addition, we have obtained a customs clearance license from Yokohama Customs starting from July 2023 andhave begun in-house customs clearance operations. This allows us to not only broaden our range of services but
also to directly reflect customer feedback in our business, enabling us to further improve our services.
Looking ahead, we plan to establish a branch in Dubai, United Arab Emirates, in 2024. Dubai serves as a hub port
connecting Asia, Africa, and Europe, and our goal is to handle not only import procedures for cargo from Japan andre-export procedures to third countries but also to handle the arrangement of cargos
from around the world.

business, the office also collects, analyzes, and disseminates various information related to European
environmental policies, recycling technologies, recycling business models, and decarbonization. The office
is working to collaborate with recycling companies and environment-related businesses in Europe andimplementing medium- to long-term business strategies.

Shinobu Tachibana
Branch Manager, UK
Representative OfficeKenro Suzuki
President, Cyterrace Co., Ltd.