Earnings Briefing
for the Fiscal Year Ended December 31, 2023 (FY 2023)
February 22, 2024

AMITA HOLDINGS CO., LTD.
(Stock code: 2195 on the Growth Market of the Tokyo Stock Exchange)© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

Review of the Business Development
Phase from FY 2021 through 2023

01

KUMANO Eisuke
Chairman and Chief Visionary Officer (CVO)
AMITA HOLDINGS CO., LTD.

© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

2

AMITA's Mission
AMITA is committed to achievinga sustainable society in which
natural and relational capital will
be enhanced in a virtuous circle
as economy and society grow.
March 2011

March 2022

Updated its Article of
Incorporation to redefine theprimary purpose of its businessas increasing natural andrelational capital.

Announced its commitment to pursuing stakeholdercentric business management. It is a commitment tocollaborating with stakeholders to pursue the bestinterests of society as a whole and achieve asustainable society.

© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

3

AMITA’s Long-Held Approach to Business
Management
Invest proactively in developing and providing industryleading commercial solutions to unmet social needs
Identified market
needs

＝

Red ocean market

Intense pricecompetition
AMITA identifies unmet
social needs and invests
proactively in providing theright commercial solutions tothem before anyone elsedoes.

© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

Unmet social needs＝

AMITA partners withothers to jointly
create greater value

AMITA’s approach

Proactively invest in
developing a blue ocean
market4

AMITA’s History of Providing Industry-leading
Commercial Solutions to Unmet Social Needs
1980

1990

2000

Increasing public demand for anti-pollution measures; soaring
procurement costs of materials in a financial slump
Social needs ► Alternative resources replacing natural
resources
Social Fast-paced deterioration of the natural environment;
issue widespread depletion of natural resources
Social needs ► Greater environmental performance
Socialissue

Social
issue

2010
2020

Socialissue

More rigorous enforcement of regulations and international
standards on environmental management
Social needs ► Balancing environmental risks and costs►

Socially driven circular economy

Increasingly stringent environmental restrictions;deepening global divide► Achieving low-carbon business operations
2023
Social needs
that meet globally accepted standards► Visualizing and deepening engagement withニーズ
stakeholders© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.
Socialissue

Closed-loop recycling of industrial waste andbyproducts

AMITA’scommercial
solutions

Environmental assessment and certification
service

AMITA’scommercial
solutions

Cloud-based environmental management
serviceEnd-to-end environmental solutions service

Assistance in developing a mutually-supportive
circular community model

Pervasive anxiety and loneliness among people
Social needs

2022

AMITA’scommercial
solutions

AMITA’scommercial
solutions

Cross-industry partnerships to promote circular
economyAssistance in transitioning to greater corporate
sustainability

AMITA’scommercial
solutionsLow-carbon transition advisory
Token service enabled by Web3 technology

5

Review of the Business Development Phasefrom FY 2021 through 2023

2030
AMITA Group toestablish the Social
Systems Design
Business2027

Achievements
We aggressively developed new service products and pursued
strategic partnerships with others to step up our efforts to assist
corporate clients in developing and implementing transition strategy
for establishing circular business models and achieving greater
corporate sustainability.

AMITA Group tocelebrate its

50th
anniversary

2022
Announced
AMITA Vision
2030.

2027

AMITA has established a leading position in theemerging circular market in Japan.

Challenges
Amid growing social uncertainties throughout FY 2023, the paceof signing corporate clients to Cyano Project in our Social
Systems Design Business and expanding the network of
MEGURU STATION® community resource-collection sites slowed.

2026

2021

2024
2023
2022

2021

© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

2025

Announced its
commitment tobecoming the
Future-design
Company.

2030
2029
2028 Accelerated Business
Growth Phase
Create novel value to achieve
greater social sustainability

Business Expansion Phase
Assist more businesses and municipalities in
adopting AMITA-designed industrial andcommunity platforms

Business Development Phase• Develop service products for the Social Systems Design
Business• Make the Group’s profit structure more robust• Transform the Group’s organizational structure and culture

6Changes in a Market Environment and Social Needs Emerging in Japan,
Resulting from Social Volatility
ExternallyImpact of increasingly serious climate change,
resource depletion, and shrinking population►

Disruption in supply and distribution chains due to climatechange, international conflicts, and resource depletion► Protective tariff barriers and trade restrictions imposed by somecountries► Shrinking market resulting from the shrinking and aging population
Compounded by: From 2020 onward: COVID-19 global health crisis

From 2022 onward: Russian invasion of Ukraine
From 2023 onward: Clash between Israel and Hamas

The global supply chain,once the primary driver
for the Japanese
economy, has fallen into
uncertainty.

►

Restrictive society
Restrictions on social lives, economic activities, and trade► Teleworking becoming a new normal

Pressed by the growing volatility anduncertainty, more and more people look for...
© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

Security and Stability
7Linear Business Models that came into vogue during
the post-industrial-revolution period...
Industrial model Found in the auto and steel industries

Linear business model Reliable inputs continually generate reliable outputs.
Reliable

Reliable
outputs

inputs

Predictable

Assumption_01• Availability of natural
resources• Standardization

Assumption_02

Reliable supplyof materials

Population bonus

Continued
market growthPursue business growth to ensure acontinued stream of profits from selling in a
proven market
Economic discipline

Economies of scale

Operational approach

Produce few selected items inlarge quantity and efficiently

Key financial metric

Revenue growth

Manufacturing discipline

Make-to-stock mass production

Focus of capital expenditure Plants and machinery

Assumptions

01.Wide availability of natural resources and standardization ofmaterials ensure reliable supply of materials.
02.The population bonus drives market growth.
© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

have lost their relevance...
Growing uncertainties

Shrinking population

Materials supply becoming
less reliable
Market becoming smaller8and are being replaced by ecosystem-like Nonlinear
Business Models that remain relevant even in an era ofless reliable and stable supply of materials.
Found in e-commerce sites andEcosystem-like model matching services

Emerging economic driver

Nonlinear business model

Unreliable, unstable, and irregular: Characterized by acontinuity of ambiguity and temporality, just as commonly
observed in a natural environment
Businesses must invest resources infulfilling unpredictable market needs
and constantly adjust inputs and outputs
to remain viable players in the market.

Less reliable
and stable
inputs
Unpredictable
Businesses must mount caseby-case responses to complex
changes in businessenvironments.

This scenario is difficult to play out.
Less reliable
and stable
outputs

But how can we manage them?
© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

9

Align several nonlinear business models into a larger linear
model and pursue the best interests of the whole
Aligning nonlinear business models
into a larger linear model
Align and operate several nonlinear business models on ashared platform to reduce common operating costs andpursue the economies of scope

Example: A customer-loyalty ecosystem
Bring nonlinear business models together to reduce risks andachieve greater synergy among them
Examples of nonlinear business models aligned into a linear business model◼ Platform modelFree
services

Reduce business risks and achieve greater synergy tobolster profitability
Economic discipline◼ Freemium model◼ Subscription model

Premium
services

Service provider

Economies of scope►Produce a wide variety of mutually

Operational approach

Platformcomplementary products to reduce business
The network effect bolsters Nonpaying
risks
customers
the value of services►Make efficient use of common costs of producing
a variety of products to bolster profitability◼ Open-source software and support

Key financial metrics

Operating profit margin, total asset turnover

Manufacturing discipline

Customize-to-order production, smart factory

Focus of capital expenditure Building relationships with other actors

Free software

Payingcustomers◼ Cloud service modelService access withsmall initial costs

Paid services

Consulting

User
supportUsers

Pay-as-you-go
pricing model

AMITA’s strategy© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

10

In FY 2021, we consolidated our legacy businesses into theSocial Systems Design Business.
Integrating nonlinear business models to a larger linear model to achieve maximum return on minimum
investment
AMITA’s conventional business

AMITA’s transformed business
Clients

Cloud-based environmental management service

Integrated ESG solutions

Using ICT solutions to assist in reducing environmental costs and risks

HumancapitalPhysical
capitalFinancial
capitalInformation

Relationships

Know-how

Each business unit has
become larger, driving
up duplicate operating
Closed-loop recycling of industrial waste costs.

MEGURU STATION®

Producing value-added alternative materials

Reducecommonoperatingcosts…
Environmental assessment andcertification service
Visualizing the value of forest andfishery resources…
© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

Cloud-based
environmental
management service

Environmental
assessment andcertification service

Sustainable community development

HumancapitalCreate synergy
to reduce
business risks

Sustainablecommunity
developmentz

Financial
capitalCreategreater value
Intangible assets

Operating resources

Physical
capitalClosed-loop
recycling ofindustrial waste

Information

Relationships

Know-how

Making better use of unused local
resources…

Offer comprehensive solutions to clients► To increase the share of customer wallet► To ensure a steady revenue and profit stream

11

Our two core solutions to develop a sustainable market

01

02

Assisting businesses in achieving greater corporate sustainability
and creating new businesses

Resource-collection site that promotes mutually supportive
engagement among community residents and provides
comprehensive solutions to community issues

All-embracing approach to
CE, CN, and NP
Offer circular design solutions
that address the following three
key drivers:
CE: Circular economy
CN: Carbon neutrality
NP: Nature positivity

AMITA’s value
proposition+

End-to-end assistance, ranging
from developing strategies toimplementing them
AMITA is a "Do Tank" that
goes beyond a think tank,assisting in not justdeveloping but implementing
and operating solutions.

Develop a novel transition strategy thatconverts costs into investments to serve aclient's best interests at a corporate
level, not at a department level

Mutually supportive
community that facilitates
greater engagement amongresidents across generations+

Resource circulation forhousehold waste brought inand sorted by residents

AMITA’s value
proposition

Municipalities

Businesses

Residents© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

MEGURU STATION®

Reduce the cost of running social
security and welfare programs
Use information about consumer
behavior and resource
consumption
Make residents feel a part of thecommunity

Municipalities

Reduce environmental
management costs
Reduce procurement costs andrisks

Businesses

Residents

Achieve a cleaner living
environment and raise ecoconsciousness12Five Key Strategies AMITA Pursued during the Business Development
Phase from FY 2021 through 2023
Strategy

02

Maximize the sales opportunities forour service products and solutions

Sales strategy

Make greater use of inbound marketing tostep up inside sales efforts
Achievement01► Held seminars and distributed

email newsletters to raiseawareness of and interest in ourservices among businesses.
FY 2023
Our digital media to sharesustainability information
AMITA'scorporate website

Strategy

Number ofsubscribers to ouremail newsletters:

Number of annual pageviews:

20,000 plus

Achievement

Achievement► Signed more corporate clients to Cyano

Project.
► Expanded the network of MEGURUSTATION®.

Accounting strategy► Tightly managed budget

performance and costs toachieve a higher operating
profit margin.
© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

Achievement

Product strategy

Strategy05

Organizational strategy
Drive collective value-creation
efforts

Develop and offer solutions to assist businesses andmunicipalities in achieving greater corporate andcommunity sustainability

2 million

Make effective use of management
accounting practices

03

Convert sustainability needs intobusiness opportunities

Strategy04

Strategy► Introduced the OKR*

management framework to set
challenging objectives for
employees.
► Replaced the employee

performance appraisal processwith a role-based grading
system.
*OKR: Objectives and Key Results
A collaborative management methodology to define objectives and track key results,aligning and engaging teams and individuals to work toward common challenging goals.

Relationship-building strategy
Invest proactively in relationshipbuilding

Operating profit margin

10.4% for FY 2023(

6.3% for FY 2020)

Achievement► Aggressively pursued public-private-

academic partnerships to jointly
undertake ESG initiatives.

Market capitalization
at the end of FY 2023

2.7

Increased
times
from the FY 2020 level13

Achievement in Relationship Building during the Business Development Phase
FY 2020

Established a cross-industry corporate alliance to drive acircular economy.
(J-CEP)See page 38

AMITA HOLDINGS chairs the J-CEP steeringcommittee and manages its administrative office.
◆ Asahi Kasei Corporation◆ Fujimori Kogyo Co., Ltd.
◆ Marubeni Corporation◆ Marubeni Forest LinX Co., Ltd.
◆ Mitsubishi Chemical Corporation◆ Mitsubishi Corporation Plastics Ltd.
◆ Mitsui Chemicals, Inc.
◆ Nagase Plastics Co., Ltd.
◆ Nihon Yamamura Glass Co., L TD.
◆ Nissha Co., Ltd.
◆ OBAYASHI CORPORATION◆ SAKATA INX CORPORATION◆ Sekisui Chemical Co., Ltd.
◆ Sojitz Pla-Net Corporation◆ SUMITOMO CHEMICAL Co., Ltd.
◆ Toyota Tsusho Corporation

FY 202359

11corporate members
Observer members:◆ Dai Nippon Printing Co., Ltd.
◆ DIC Corporation◆ Kai Corporation◆ Kao Corporation◆ Kawakami Sangyo Co., Ltd.
◆ Kracie, Ltd.

◆ Lion Corporation◆ Mandom Corporation◆ Nestle Japan Ltd.
◆ POLA ORBIS HOLDINGS INC.

◆ Rock Paint Co., Ltd.
◆ Shabondama Soap Co., Ltd.
◆ S.T. CORPORATION◆ Sunstar Inc.

◆ ThreeHigh Co., Ltd.
◆ TOPPAN Inc.
◆ UCC HOLDINGS CO., LTD.
◆ Unicharm Corporation

Materials, trading, and construction• National Institute of Advanced Industrial Scienceand Technology• The Research into Artifacts, Center forEngineering, the University of Tokyo• Smart City Institute Japan• The University of Kitakyushu

59 corporate members Resource-circulation and sustainability
as of February 22, 2024

ICT solutions◆ Chaintope Inc.
◆ digglue Inc.
◆ Fujitsu Japan Limited

9 observer members

9 organizations• Hokkaido University• Kobe City
• Kobe University Graduate School of Human
Development and Environment• The Ministry of Economy, Trade and Industry• The Ministry of the Environment

Consumer and commercial products

corporate members

and*K-CEP, the predecessor of J-CEP, established.

Corporate Membership List
(In alphabetical order, steering committee members
in bold colors)

As of February 22, 2024

As of May 2020*◆ NEC Corporation◆ NEC Solution Innovators Ltd.
◆ NTT Communications Corporation

Financial service◆ Sumitomo Mitsui Trust Bank, Limited◆ ABeam Consulting Ltd.
◆ AMITA HOLDINGS Co., Ltd.
◆ CHUBU NIHON PLASTICS CO., LTD.
◆ EGS Co., Ltd.
◆ Fuyo General Lease Co., Ltd.
◆ Harita Metal Co., Ltd.
◆ JECC Corporation◆ J&T Recycling Corporation◆ KANKYOU STSTEMS. INC◆ Kowa Seiko Co., Ltd.
◆ nanoxi×group◆ Oomotoshiryo Co., Ltd.
◆ omron social solutions co., ltd◆ Pantech Corporation◆ Rise Consulting Group, Inc.
◆ Sanyu Kankyo Sogo Kenkyujo Co., Ltd.
◆ Sumitomo Mitsui Finance and Leasing Company, Limited◆ TBM Co., Ltd.

AMITA selected to work on the Strategic Innovation Promotion Program(SIP), sponsored by the Cabinet Office of the Japanese Government.
A public-private-academic collaborative project to develop a circular economy model

See page 39

AMITA has established a leading position in the emerging circular market
in Japan.
© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

14

Reassessing Our Sales and Product Strategies: Slow in signing clientsto project contracts
Achievements
and challenges
in FY 2023

Our five key strategies proved effective in creating the need for greater corporate
sustainability among businesses.
While we received constant inquiries about Cyano Project, we were slow insigning clients to project contracts.
Factors

01.
Actions for
FY 2024 and2025

External

Businesses were increasingly concerned about their short-term financial performance given the
disruption of global supply chains, and postponed decisions to invest in ESG initiatives.
It took increasingly longer to negotiate contract terms of
Cyano Project with clients.

Internal

While businesses shied away from investing in ESG initiatives, our corporate communication,marketing, and sales teams did not coordinate with each other well to enlighten prospective clients on
the benefits of Cyano Project and address their potential needs to make sales.

January 2024

President

The cross-functional Value Marketing Department was establishedunder the president, responsible for coordinating and managing
AMITA’s corporate communication, marketing, and sales.
Focused on raising awareness of and interest in corporate sustainability among businesses
and establishing a framework for soft-selling and value-marketing approaches

02. Upgrade the value proposition of Cyano Project© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

Value Marketing Department
Corporate
communication

Marketing

Sales

Cross-functional coordinationand management

15

Reassessing Our Organizational Strategy: Slow in transforming AMITA
into a solid profit-generating organization
Challenges in
FY 2023

Employees were slow in embracing the five strategies for better managing fast-changing businessenvironments and in shifting their mindsets to act on them.
We failed to meet organizational goals and bolster collective efforts to keep
creating greater value.
Factors

Caught in the innovator's dilemma; while employees managed to conceptualize the company's strategic goals, theyfailed to break themselves of the old habit of being narrowly focused on personal performance.

While we discontinued employee performance appraisals in order to motivate employees to tackle challenging
tasks without a fear of failure, many of them tended to set conservative goals well within their reach.
The scope of a transition from financial accounting to management accounting was limited to As-Is analyses.

01. Foster a culture that motivates and develops employees to work as a team to keep creating greater
value for the company and its stakeholders
Actions for
FY 2024 and2025

02. Design and implement a role-based grading system and OKR framework to motivate employees towork collectively toward achieving company-level objectives
03. Design allowance and performance-based compensation schemes to motivate employees to keep
creating greater value

We place a top priority on taking these actions in FY 2024 and 2025, which is defined as
the Groundwork Phase, to bolster our business performance.
© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

16

02

Consolidated Financial Results for
FY 2023SUETSUGU Takahide
President and Chief Integrated Operations
Officer (CIOO)AMITA HOLDINGS CO., LTD.

© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

17

Financial Results for FY 2023: Updated Guidance
We downgraded our guidance for FY 2023 as shown below:►

As businesses rescheduled the implementation of their ESG initiatives due to changing
business environments, we signed fewer corporate clients than expected to Cyano
Project contracts. In addition, revenue from the sale of circular materials declined.

►

Due to the sales downturn, we rescheduled the implementation of our investment plans
and business development initiatives.
Operating profit declined, partly as the sale of recycled materials was weaker thanoriginally planned in Malaysia.

Factors(In millions of yen; amounts rounded down to the nearest million yen)

Initial guidance
for FY 2023

Updated guidance
for FY 2023

Diff from initial guidance(Percentage diff)

Net sales

5,283

4,536

-746 (-14.1%)

Operating profit

774

472

-302 (-39.0%)

Ordinary profit

887

530

-356 (-40.2%)

Profit attributable to ownersof parent

620

308

-311 (-50.3%)© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

18

Financial Results for FY 2023: YoY Changes(In millions of yen; amounts rounded down to the nearest million yen)

FY 2022 results

FY 2023 results

YoY change (Percentage change)

Net sales

4,824

4,536

-288 (-6.0%)

SG&A expenses

1,527

1,665

+137 (+9.0%)

Operating profit

609

472

-137 (-22.6%)

Ordinary profit

715

530

-184 (-25.8%)

Profit attributable to ownersof parent

531

308

-222 (-42.0%)

Summary of financial performance for FY2023
Net sales

Net sales for FY 2023 decreased to ¥4,536M* due to: (1) a change in accounting treatment as a result of transferring business at our former Kawasaki Resource
Recycling Plant to Sanyu Plant Service Co., Ltd.; (2) slower-than-expected signing of Cyano Project contracts; and (3) the weaker sales of recycled valuable andnon-ferrous metal materials outside Japan.
* Gross profit was flat YoY at ¥2,137M for FY 2023, reflecting the increased sale of coal alternatives in the Circular Materials Business and price hikes of recycled materials.

Operating profit

Operating profit decreased to ¥472M due to an increase in SG&A, including additional investments in motivating employees to keep creating greater value.

Ordinary profit

Ordinary profit decreased to ¥530M, reflecting decreases in operating profit and in the share of profit of entities accounted for by using the equity method from our
Malaysian operations* as a tax credit for green investment was no longer granted.
* Revenue from the sale of recycled materials was up YoY in our Malaysian operations.

ProfitProfit decreased to ¥308M, reflecting primarily a decrease in ordinary profit.

© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

19

Financial Results for FY 2023: Year-end Dividend
We have set the year-end dividend rate at 4.00 yen for FY 2023,
unchanged from the initial guidance.
FY 2022

FY 2023

Record date

December 31, 2022

December 31, 2023

Dividend rate

3.00 yen (Dividend payout ratio: 9.9%)

4.00 yen (Dividend payout ratio: 22.8%)

Total amount of dividends

52,642,410 yen

70,209,880 yen

Effective date

March 24, 2023

March 25, 2024

Source of dividend payment

Retained earnings carried forward

Retained earnings carried forward

Our Policy on Shareholder Return and Dividend Payment
We have set the year-end dividend rate for FY 2023 at 4.00 yen, unchanged from the initial guidance, to meetshareholders' expectations. The Group intends to make its financial position well-balanced and make its
operating foundation more robust, so that the Group will be able to achieve a dividend payout rate of 30% in
the long term.
© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

20

Abbreviated Consolidated Balance Sheet(In millions of yen; amounts rounded down to the nearest million yen)

As of December 31, 2022 As of December 31, 2023

YoY change

2,769
2,054

3,838
2,337

+1,068
+282

4,824

6,175

+1,351

1,269
1,554

1,635
2,273

+366
+719

2,823

3,909

+1,086

483
253
1,480
(0)

+2
+2
+255

Treasury shares

480
250
1,225
(0)

Total shareholders' equity

1,955

2,217

+261

Accumulated other comprehensive
income39

42+3

Share acquisition rights

6

6

-0

Total net assets

2,001

2,266

+265

Total liabilities and net assets

4,824

6,175

+1,351

AssetsCurrent assets
Non-current assets

Total assets
Current liabilities
Liabilities

Non-current liabilities

Total liabilities
Share capital

Capital surplus
Retained earnings
Net assets© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

-

21

Abbreviated Consolidated Statement of Cash Flows(In millions of yen; amounts rounded down to the nearest million yen)

FY 2022 results

FY 2023 results

Net cash provided by operating activities

585

725

+140

Net cash provided by (used in) investing
activities

(69)

(441)

-371

Net cash provided by (used in) financing
activities

(142)

754

+896

Change in cash and cash equivalents

389

1,049

+660

1,779

2,829

+1,049Ending balance of cash and cash
equivalents© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

YoY change

22Key Financial Metrics
Operating profit margin (%)

Note: Effective at the beginning of FY 2022, the Company adopted the AccountingStandard for Revenue Recognition.

10.9
5.0

2019

FY
2023

12.6

10.4

6.3

2020

Ordinary profit margin (%)

14.8

11.2

12.2

Target

2021

2022

2023

2024

► Operating profit was down YoY due to a decrease in net sales andan increase in SG&A.
► Revenue from high-margin Cyano Project decreased.

Note: Effective at the beginning of FY 2022, the Company adopted the AccountingStandard for Revenue Recognition.

5.2

6.3

2019

2020

FY
2023

11.7

12.5
Target

2021

2022

2023

2024

► The share of profit of entities accounted for by using the equity

method decreased from our Malaysian operations and Codo
Advisory, Inc.

Return on invested capital (ROIC) (%)

Return on equity (ROE) (%)

22.4
63.0
47.0

17.7

55.9

11.6
30.8

2019

FY
2023

2020

2021

2022

14.5
2023

► An increase in retained earnings bolstered equity capital.
► Annual profit decreased.

© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

10.2

6.2

2019

FY
2023

2020

2021

2022

2023

► Non-current assets increased as a result of expanding the silicon-

recycling capacity.
► Operating profit decreased.

Note: The amount of invested capital was obtained by the following formula: (Trade receivables + Inventories - Trade payables) +Non-current assets, which looks at the lending side of cash.

23

Financial

Topic_01

Actions to Increase AMITA’s Enterprise Value
We intend to bolster our business performance and keep shareholders andinvestors well informed as part of our efforts to increase our enterprise value.

FY 2024

Better businessperformance

AMITA’s enterprise value
AMITA’s stock price Up

Deliver on the MediumTerm Management PlanFY 2023
Business
performance

AMITA’s
stock price

Followed a downward trend due todisappointing business performance.
Expanded the scope of sharing
IR initiatives financial information withshareholders and investors.

Subject

01

AMITA has been chosen as one of 200 constituents of the JPX-Nikkei Mid-and-Small Cap
Index for 2023.
►© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

additional actions in line with our financial+ Takeperformance and the stock market performance

Increaseawarenessof AMITA
among
investors

AMITA met the following criteria to be chosen as a constituent of the JPX-Nikkei Mid-and-Small Cap
Index: The average ROE and cumulative operating profit for FY 2021 through 2023; and the disclosure offinancial information in English via TD-net. Constituents of the Index are perceived to have the potential tosustain the growth of their enterprise value.

24

Financial

Topic_02

Canceled Share Acquisition Rights to Raise Funds
We have canceled share acquisition rights after reviewing our capital policy and taking into
consideration a projected market environment, our stock price performance, and the number of
exercised share acquisition rights to date.
UpdateAmount of funds raised to date

17,235,000 yen

Number of exercised share acquisition rights todate

150 (15,000 shares)

Number of share acquisition rights to bepurchased and canceled by the Company

19,850 (1,985,000 shares)

Date of purchase and cancellation

February 28, 2024

Number of remaining share acquisition rights
after cancellation0

How to fund the projects to be originally funded by raised funds
Expanding the network of MEGURU STATION®

To be funded by cash on hand and borrowing

Developing a blockchain-based system

Already funded by the 17,235,000 yen, raised through exercised shareacquisition rights.
The rest to be funded by cash on hand and borrowing.

Expanding the silicon-recycling capacity at the Kitakyushu Already funded by borrowing from financial institutions.
Sustainable Resource Management CenterWork related to capacity expansion to be completed in July 2024.
© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

25

03

Business Achievements in FY 2023
SUETSUGU Takahide
President and CIOOAMITA HOLDINGS CO., LTD.

© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

26

Major Business Achievements in FY 2023

01
02

© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

Continued to provide businesses with integrated
assistance in transition strategy, including Cyano Project
for achieving greater corporate sustainability.

Entered into partnership in waste management
to establish a joint venture with the Sumitomo Mitsui Finance andLeasing Group in April 2024.

03

Laid the groundwork for developing the MEGURU
PLATFORM, a circular model for tangibles, information, and people's

04

Stepped up developing new business and pursuingpartnerships outside Japan to bolster our legacy business andthoughtfulness to others, jointly developed in public-private-academic collaboration.

launch the Social Systems Design Business overseas.

27

AMITA Group's Key Initiatives and Actions Undertaken in FY 2023

2023

Jul. 27

Jan. 5Mar. 23• Group structure realigned.
• AMIDAO CORPORATION
established.
• Switched to a 32-hour workweek.

• New president of AMITA HOLDINGS appointed.
Two new non-executive directors appointed.

January

February

March• Company-wide BPR project launched, assisted by generative AI solutions.

Aug. 7• AMITA HOLDINGS chosen as a constituent of the JPX-Nikkei Mid-and-Small Cap Index for 2023.

April

Jan. 27
Entered into strategic partnership with the
BELL Group.
Mar. 27
Signed a collaboration
with Kobe, Hyogo
Prefecture.
Jan. 14
The third MEGURU STATION® in Tachiarai,
Fukuoka Prefecture, became operational.

May

June

July

AugustSeptember

October

December

2024

Nov. 24
Factory support service package released aspart of Cyano Project.

Jun. 23
Acquired a stake in Japan Evolution Fund.
May 15Signed a collaboration with Kakegawa,Shizuoka Prefecture.

NovemberAug. 21Signed a collaboration with
Buzen, Fukuoka Prefecture.

May 15
Joined a PoC project for Digital ProductPassport (DPP).
Jul. 31
Selected to participate in the SIP.

Dec. 14
Selected as an associate
consultant by BSI Group
Japan.
Nov. 14Signed an MOU with Sumitomo Mitsui Financeand Leasing on jointly operating waste
management services.

Feb. 23
The fourth MEGURU STATION® in
Tachiarai, Fukuoka Prefecture, became
May 19operational.
Signed an MOU with Indocement Tunggal Prakarsa on
jointly conducting feasibility study.
Cyano Project

Development of MEGURU PLATFORM

Partnerships

Business development outside Japan© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

May 25Contracted by the Ministry of the Environmentof Japan to develop low-carbon, circularbusiness models in Indonesia and Malaysia.

Oct. 3Contracted by the Ministry of theEnvironment to develop a low-carbon
model in Palau.

28

Japanese Market Updates►

Background►In 2023, more businesses recognized circular economy (CE), carbon neutrality (CN), andnature positivity (NP) as the three key drivers for sustainable business.
The need to comply with the TNFD (Taskforce on Nature-related Financial Disclosures)
framework has been growing among businesses.

Projected circular economy market in Japan

Scope of public-private investment needed todrive transition to GX economy in Japan
Total money needed to beraised by the end of 2034

Food, land, and ocean use¥36T¥150T-plus

Infrastructure and the built
environment¥32T

Energy and extractives

¥36T

¥120T

80

(projected)

50

Money raised through GX
Economy Transition
Bonds in February 2024

¥1.6T
2020

2030

Projected business opportunities by sector inJapan, created by the transition to a naturepositive economy¥104T(projected for 2030)

2050

Source: “Strategy for Resource‐Autonomous Circular Economy
for Growth,” published by the Ministry of Economy, Tradeand Industry of Japan in March 2023

Source: "GX Economy Transition Bonds,” reported by Nihon Keizai
Shimbun in February 2024

Source: "Impact of Transition to Nature Positivity on Japan,” published by the
Ministry of the Environment in November 2022

Assist businesses in transitioning to greater corporate
sustainability with an integrated approach to CE, CN, and NP© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

29

Topic 01
Integrated assistancein transition strategy(1)

Assisted corporate clients in transition strategies to meet theirgrowing need for greater corporate sustainability.
Providing end-to-end assistance in developing and implementing a transition strategy
for greater corporate sustainability,
including developing circular business models, designing their prototypes, conducting PoC field tests, anddeveloping business plans

AMITA's value
proposition

Corporateplanning

Pursue the best interests at the enterpriselevel, not at a department level

All-embracing approach to
CE, CN, and NP
Offer circular design solutions that
integrate the following three key
drivers to assist in transition strategy:
CE: Circular economy
CN: Carbon neutrality
NP: Nature positivity+

Product planning,development, anddesigning

End-to-end assistance ranging
from developing strategies toimplementing them
AMITA is a “Do Tank” that goes beyond
a think tank, assisting in not justdeveloping but implementing andoperating solutions.

Businessdiversification

Materials
procurement
Production
New businesses

Recycling

Proactive strategy
Legacy businesses

Create new businesses
based on circular design

Defensive strategy

AMITA's monetization model

Our approach to integrated assistance has been
well received by clients.

Waste collection

We will be able to establish a consistent,
reliable revenue stream.
© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

Transforming legacy
businesses into
circular businesses

Sharing
Sales(services)

RefurbishingUse► Providing end-to-end support that extends to implementation and operation ofsolutions, not just providing ad hoc consulting► Building long-lasting relationships of trust with clients to drive repeat business

Servicizing

DisposalRefillingfor developing and operating a sustainable, circular business
model

30

Topic 01
Integrated assistancein transition strategy
(2)

Data

01

While slow in signing new clients to Cyano Project,
we delivered on the signed contracts.

It took increasingly longer to close contracts withclients, and we signed fewer clients to Cyano
Project in FY 2023 than in the previous year.

► Businesses were increasingly concerned about their short-term financial performance given the challenging operating
environments, and postponed decisions to invest in ESG
initiatives.
Internal► We did not do a good job of presenting a compellingbusiness case for potential clients to justify their investingin ESG initiatives.

►

FY 2023, compared with 38 in FY 2022.
► Client: Electrical equipment manufacturer

Project
examplesFactors
External

Action for
FY 202424 corporate clients signed up to Cyano Project in⎻ AMITA researched a concurrent-engineering
design process and proposed a new business
scheme.
► Client: Transportation equipment manufacturer⎻ AMITA assisted in designing an internal
resource-circulation scheme.

Contract negotiations underway withas of January 31, 2024.

33 companies► They were seeking our assistance in meeting the TNFD requirements

and in transforming their business operations in the long term.

Revisit our sales strategy and service offerings and shore up our marketing to bolster thecontract closure rate to

Sign more corporate clients to Cyano Project© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

31

Topic 01
Integrated assistancein transition strategy(3)

Started providing end-to-end support to clients' factory operations toassist them in reducing environmental impact and achieving greater
sustainability across supply chains.
Overview

November
2023

Released the Factory Support Service Package as part of Cyano Project.
Service map of the Factory Support Service
Package

AMITA's value
proposition

Service 01
Identifying supplychain issues► Identify a client's supply-chain issues that affect manufacturing

Service 02► Assist in facilitating sustainable processes for product designing, materials

Recyclingprocurement, manufacturing, and waste collection and recycling from the CE, CN, andNP perspectives
Potential market

Source: Industrial Statistics 2012 by Sector, published by the METI on April 11, 2014

Procurement

Assisting in achieving
sustainable procurement
Production

Service 03

Wastecollection

Assisting inachieving zerocarbon and zerowaste emission► Nearly 3,100 large factories are operating in Japan, with a total annual output of

150 trillion yen.
► Leading manufacturers spend millions and billions of yen annually inenvironmental management.

Disposal

Provided closed-loop resource-recycling services to 813 factories

around the country in FY 2023.
Action for
FY 2024

Leveraged this nationwide network to sell this service package
to prospective corporate clients.

Use

Sales

Sustainable BPO ofenvironmental
management

Service 04► Client: Manufacturer in the chip industry

Project
example⎻ AMITA assisted in identifying opportunities for increasing
the resource-circulation rate in its plants and indeveloping resource-circulation solutions.

Step up our efforts to sell the support service package to more corporate clients of our resource-recycling services© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

32

Topic 01
Integrated assistancein transition strategy(4)

Stepped up the recycling of industrial waste into alternative fuels tomeet growing need for sustainable procurement practices among
businesses.
►
Background

►

Data

01

More and more manufacturers were seeking alternative raw materials and fuels to
replace natural resources and achieve low-carbon operations.
Manufacturers faced increasing risks in materials procurement amid the destabilizing
international situation and surging materials costs.

We sold a record-high volume of alternative cement
fuels in FY 2023 as planned, helping cement producers
reduce carbon emissions.
Recycled cement fuels producedby AMITA in FY 2023

97,000 t
(Up

Data

02

Actions for
FY 2024

15% YoY)

We sold 10% less recycled cement materials and nonferrous metal materials than initially planned, due to a
slowdown in the manufacturing sector.

Data

03

We recycled 3% less silicon in FY 2023 than in the previous
year, due to a temporary slowdown in the chip market.

Sales of Semiconductor Manufacturing
Equipment
Japanese Equipment Sales*(In billions of yen)

3,443

3,922

Record highprojected

Up 27%

3,177

4,035

4,438

Chip production is projected
to return to growth, reflecting
capacity-expansion plansannounced by leading chip
manufacturers.
*Japanese manufacturers' domestic andoverseas sales combined

2021

2022

2023

2024

(projected)

2025(projected)

Source: "Market Forecast Report on
Semiconductor and FPD Manufacturing
Equipment," published by Semiconductor
Equipment Association of Japan in January
2024

01. Offer the Cyano Project factory support service package to assist manufacturers in sustainable procurement
02. With an additional silicon-recycling line scheduled to become operational in July 2024, we
project a 20% YoY increase in the volume of silicon recycling for FY 2024.

© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

33

Topic 01
Integrated assistancein transition strategy(5)

Conducted an increasing number of environmental assessments forclients to meet their growing need for sustainable management offorest and fishery resources.
Number of businesses assessed by AMITAFY 2022

FY 2023AMITA's share of theJapanese market

FSC® FM

23

23

68 %

FSC® CoC certification

615

691

32 %

FSC® project certification

47

53

MSC/ASC CoC certification

166

149

80 %
50 %
(estimated)

ASC aquaculture certification

13

15

94 %

1

1

50 %

Forestcertification

Fisherycertification

Action for
FY 2024 andbeyondASC-MSC seaweedcertification

Number of FSC® CoC Assessments
Conducted by AMITA

691
615
502
402

2019

431

2020

2021

Topic

AMITA participated in a project organized by WWF Japan to verify the compatibility in01

methodologies adopted by FSC® and TNFD.

2022

2023

Expand the scope of our environmental assessment and certification services to make them more relevant to corporate clients'
business strategies and their need for broader disclosure of sustainability information►

Enhance our QCD performance and add more assessors to support the expansion of our services, including
the RFM (Responsible Fisheries Management) CoC certification assessment service we launched in
December 2023

© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

34

Topic 02
Partnership for better
waste management

Pursued partnerships that leverage our environmental management
support services to assist businesses in switching to circular
operations.
►

Corporate clients faced chronic labor shortages and were seriously in need of staff wellversed in waste management.
Background► They had an increasing need to switch to circular business models amid growing uncertainties
over their operating environments.
Data The number of offices subscribing to our cloud-based
Data The number of corporate clients of our outsourcing services
01 environmental management services in FY 2023:
02 for environmental management in FY 2023:

5,634 (up 12% YoY)

28 (up 40% YoY)

Partnership

Background

November 2023

April 2024
Overview

Action for
FY 2024 andbeyondand► Signed an MOU on jointly operating waste

management services.

Joint venture Circular LinX CO., LTD. to be established

Combine AMITA's strengths with the Sumitomo Mitsui Finance and Leasing Group's expertise and clientbase in the finance and sustainability fields, so that we can jointly build a robust information infrastructure
for materials circulation and assist businesses in switching to circular operations►

Jointly develop and offer new services for assisting businessesin switching to circular operations© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

Revenue target: ¥1B-plus for FY 2028

35

Topic 03
Working toward establishing
the MEGURU PLATFORM

Started developing a circular economy modelin public-private-academic collaboration.

by 2030(1)

MEGURU PLATFORM
Establish a virtuous circle of manufacturing andconsumption, in which tangibles, information, andpeople's thoughtfulness to others are all circulatedHome living
BusinessesKeyinitiatives
undertaken
in FY 2023

01.

Continued to expand the network of MEGURUSTATION®, a scheme to collect resources and information.

02.

Continued to promote circular economy through
J-CEP, a scheme to process collected resources into usable

Resourcesmaterials.

MEGURU STATION®

Information

Resource-collection site that
promotes mutually
supportive engagement
among community residents© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

MEGURU FACTORY
Facility that turns collectedtraceable resources into circularmaterials

03.

Started to develop a circular model under the SIP,a scheme to compile and use circular information.

36

Topic 03
Working toward establishing
the MEGURU PLATFORM

Operated MEGURU STATION® in three municipalities and began
talks with another about its community-wide deployment.

by 2030 (2)Case
Kobe, Hyogo Prefecture

Case
Tachiarai, Fukuoka Prefecture

March 2023

4 locations

2 locations**AMITA provided MEGURU STATION® know-how to Kobe City
when launching two of the 18 household-waste-collection sites
operated by the city (as of February 2024).

Signed a collaboration with Kobe City to jointly achieve asustainable ecosystem community.

February 2023

Cross-industry partnerships and SIP-initiated projects
underway in collaboration with Kobe City.

MEGURU STATION® became operational in all
its school districts, accessible to all its
residents.

Case

Case

Buzen, Fukuoka
Prefecture

Nagakute, Aichi Prefecture
June 2023

August 2023

Considering maximizing the usefulness of
MEGURU STATION® in the four locations in
preparation for transferring their operation
progressively to residents© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

Signed a collaboration with the city andthe Institute of Connected Community
Development.
Talks underway regarding a potential
city-wide deployment of MEGURUSTATION®

Set up a compact bioenergy generator MEGURU-BIO at
an elementary school in the city to promote resourcecirculation practice and greater community engagement.
Taking actions to streamline its operation and makeit more widely accessible to residents

37Topic 03
Working toward establishing
the MEGURU PLATFORM

Broader cross-industry public-private-academic collaboration indeveloping a circulation model for plastic waste

by 2030 (3)Dozens of corporate members of J-CEP have joined
forces to develop business models for circular economy
in collaboration with community residents, municipal
authorities, and universities.

Trial

01

Conducted a PoC field test of collecting, sorting, andrecycling plastic bottle caps.

Project members: AMITA, Kai Corporation, Kawakami Sangyo, Kobe City, Mitsui
Chemicals, and Nihon Yamamura Glass

Recycled plastic caps into nail clipper holders
and bubble pack sheets and explored othercommercial application of recycled plastics.
Nail clipper holders made from recycledplastic caps were given to all elementary
schools and schools for handicapped children
in the city.

Japan Clean Ocean Material Alliance (CLOMA), which has 511
businesses and groups as its members as of January 30, 2024,
promotes cross-industry collaboration in addressing marine
plastic litter and other plastics-related issues.

Trial

01

Participated in the CLOMA_DX/SIP Platform
Development Working Group.

Working group members: AMITA, Asahi Kasei, Kyoto University Graduate
School of Global Environmental Studies, Mitsubishi Research Institute, and 25
other companies and groups

The mission of the working group is to promote DX solutions along theentire life cycle of plastics.
AMITA president TABEI Shinichi was appointed as chair of the working
group in 2023, working closely with other members to develop a circular
economy model.

Conducted a PoC* study on product traceability as part of cross-industry
efforts to develop specifications for the Japanese DPP (Digital ProductPassport) scheme.
* A process for verifying the feasibility of newly minted ideas and concepts© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

38

Topic 03
Working toward establishing
the MEGURU PLATFORM

Participated in a national project to develop a circular economy
model.

by 2030 (4)July 2023

Overview

AMITA selected to work on the SIP, sponsored by the Cabinet Office.
Tasked with coordinating with other businesses, groups, and municipalities to develop acircular economy model. More specifically, we are responsible for providing data, samplesof circular materials, and testing fields as a basis for working on the R&D theme described
below.

Develop a circular economy model
R&D theme

Establish a system for sorting used plastics collected by municipalities
and supplying them for recycling

R&D project leader

AMITA HOLDINGS CO., LTD.

Conducting technology research
Project co-leader

Supplying plastic materials

Toray Industries, Inc.
Develop value-added technology to support recycling and upcycling practices

Project partners: Kobe City, J-CEP and CLOMA members (including brand owners, retailers, materials suppliers,
recycling service providers), system vendors© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

Other R&D projects under the SIP• Develop a Japanese DPP scheme(Project leader: NEC Corporation)
Collaboration• Draw up rules for a Japanese DPP scheme(Project leader: Nomura Research Institute,Ltd.)• Develop methods of environmental impact
assessments to support the development of anenvironmentally friendly plastic circulation
system(Project leader: National Institute of Advanced
Industrial Science and Technology)

39

Topic 03
Working toward establishing
the MEGURU PLATFORM

Working more closely with corporate partners, industry groups, andmunicipalities to develop a circular economy modelby 2030 (5)Actions for
FY 2024

Leverage our role as a member of an R&D project under the SIP to bring together
other SIP, J-CEP, and CLOMA members, as well as our corporate partners andmunicipalities, and

Accelerate developing a circular economy model
Actions to take© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

►

Continue to play an instrumental role in cross-industry projects►

Coordinate the efforts of the SIP, J-CEP, and CLOMA to conduct PoC fieldtests at an accelerated pace and on a wider scale►

Evaluate the business case of AMITA becoming a provider of a circular
platform

40

Topic 04

Sustainability needs growing fast globally

Develop and expand
business outside
Japan (1)►
Background

Asian countries place a high priority on achieving CE, CN, and NP, just as Japan does.
Their pressing challenge is to achieve low-carbon operations in their industrial sectors, which
supply products to the rest of the world.

Waste management market in the
ASEAN region

18B

Asia's share of annual global energyderived carbon emissions

USD
in 2024(projected)

33.6Bt-CO2

60

Manufacturing sector's share of GDP bycountry and region (%)

21
20
15
%

EU
EU
► The ASEAN waste management► Fast-growing economy and energy

market is predicted to grow at a
CAGR of 7% from 2024 through2029, driven by a burgeoning
economy with rapid population
growth, increased economic
activities, urbanization, andindustrialization.

demand have driven carbon
emissions up sharply in many partsof Asia.

Source: "ASEAN Waste Management Market Size & Share
Analysis,” published by Mordor Intelligence© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

► The pressing challenge in Asia is tocurb carbon emissions without
checking population and economic
growth.
Source: Modified from the table published by Mitsubishi ResearchInstitute.

ASEAN

ASEAN

日本
Japan

9
英国
U.K.

11
米国
U.S.

► The manufacturing sector's share of

GDP in the ASEAN region isrelatively high.
► Some industries in ASEAN countries

have the considerable challenge ofachieving low-carbon operations.

Source: "Realization of GX in Japan,” presented by the Ministerof Economy, Trade and Industry at the GX
Implementation Council on December 15, 2023

41

Topic 04

Operating the Social Systems Design Business outside Japan

Develop and expand
business outside
Japan (2)Action for
FY 2024

April 2024

To rename our Malaysian subsidiary to AMITA CIRCULARDESIGN SDN. BHD., which will serve as the Group's
regional headquarters in the Asia-Pacific.
► Accelerate the development of the Social Systems Design Business in the Asia-

Objectives

Pacific► Facilitate faster business decision-making to better accommodate local market
needs► Pursue wider partnership opportunities with local businesses from around Asia,
essential for accelerated business expansion► Recruit talent from around Asia and pursue new business opportunities in the
Asia-Pacific(through a transfer of stocks from AMITA CORPORATION to AMITA HOLDINGS

Overview► To be established: April 1, 2024 CO., LTD., upon an absorption-type company split)► Leadership team: SATO Hiroyuki, Chairman

YAMATO Eiichi, Managing Director► Head office: Kuala Lumpur, Malaysia© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

42

Topic 04

Updates on Our Business Development and Expansion in Asia

Develop and expand
business outside
Japan (3)Malaysia
From 2017
onwardData

01

Indonesia
Operating the closed-loop recyclingof industrial waste.

While we received more industrial waste forprocessing from suppliers in FY 2023 than in
the previous year, we sold 15% less recycledmaterial than originally planned to corporate
customers due to their cutbacks in production.

41,000 t(Up

10% YoY)

Primary factor
Action for
FY 2024
andbeyondWorked with local sales partners to sign
up with additional suppliers of waste.

► Prepare to develop additional

alternative materials, including biomass► Partner with local universities toconsider operating mutually supportive
resource-collection sites in the country© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

May 2023

May 2023

Palau
Signed an MOU with PT
Indocement Tunggal Prakarsa Tbk.,
a leading cement producer inIndonesia.
AMITA selected to participate in an
Urban Collaboration Project forAchieving a Low-Carbon Society inIndonesia, sponsored by the
Ministry of the Environment ofJapan.

October 2023

AMITA selected to participate in an
Urban Collaboration Project forAchieving a Low-Carbon Society in
Palau, sponsored by the Ministry of
the Environment of Japan, resuming
a project to develop a resourcecirculation scheme in the country
following a suspension during the
pandemic.

Developing low-carbon, circular businessmodels in Indonesia and Malaysia.

Develop a low-carbon, circularbusiness model using locally available
resources► Prepare to launch a materials-recycling business► Apply a circular business model to be developedin the country in FY 2025 or later► Develop a collaborative circular economy modelwith other members of the Indonesian Working
Group under CLOMA

for Palau to other Pacific island nations that rely
heavily on imported fossil fuels

43

AMITA Group Companies
for FY 2024
Stock code: 2195 on TSE
Growth Market

AMITA HOLDINGS CO., LTD.

Wholly-owned subsidiary

Transition strategy business

AMITA CORPORATION► Assist businesses in achieving greater corporate sustainability► Assist municipalities in achieving greater community sustainability► Develop the Social Systems Design Business outside Japan

Wholly-owned subsidiary

Circular materials business
Provide end-to-end solutions for sustainable procurement and use ofresources

AMITA CIRCULAR CORPORATION

Wholly-owned subsidiary (Company nameeffective April 1, 2024)

AMITA CIRCULAR DESIGN
SDN. BHD.
Head office: Nakagyo-ku, Kyoto, Japan

Headed by: KUMANO Eisuke, Chairman and CVO

Assist in achieving greater corporate
and community sustainability in the
Asia-Pacific region

Wholly-owned subsidiary

SUETSUGU Takahide, President and CIOO

Number of employees: 240 (consolidated, as of January 2024)(Corporate officers and temporary employees not included)

Joint venture
Established by ACD and the
Malaysia-based BERJAYA GroupAMITA BERJAYA SDN.
BHD.

Ecosystem co-creation business
Leverage Web3 technology to provide a platform for creating an
ecosystem society

Established: April 1, 1977
Capital: 483,560,300 JPY

Regional headquarters

AMIDAO CORPORATION

Joint venture
Established by AMITA HOLDINGS and MCP Japan
Holdings

Low-carbon transition advisory
Assist businesses in defining and refining their low-carbon
transition strategy

Codo Advisory, Inc.

Joint venture to be established April 1, 2024
Established by AMITA HOLDINGS and the Sumitomo
Mitsui Finance and Leasing Group

Circular LinX CO., LTD.
© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

Circular management business
Offer ICT and BPO solutions to assist businesses inachieving circular operations

44

Key Initiatives for FY 2024

01

by revisiting our sales strategy and service offerings and shoring up our marketing tobolster the project contract closure rate

02

Develop and offer services for assisting businesses in achieving
circular operations

03

As a member of the SIP project, work more closely with corporate
partners, industry groups, and municipalities04© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

Sign more corporate clients to Cyano Projectby establishing joint venture Circular LinX between the AMITA Group and theSumitomo Mitsui Finance and Leasing Groupto jointly develop a circular economy model

Establish regional headquarters AMITA CIRCULAR DESIGN SDN.
BHD. in Malaysia to accelerate the development of the Social
Systems Design Business in the Asia-Pacific region
45

04

AMITA Group's Updated Mediumand Long-Term Management Plan
to support AMITA Vision 2030

KUMANO Eisuke
Chairman and CVO
AMITA HOLDINGS CO., LTD.

© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

46

Themes of WEF* annual meetings in Davos for the past five years*World Economic Forum

Rebuilding Trust

2024

Reinforcing the fundamental principles oftransparency, consistency, and accountability

2023

Cooperation in a Fragmented World
Keyword2022

History at a Turning Point: Government
Policies and Business Strategies
Keyword2021

Polycrisis (a cluster of related global risks withcompounding effects)

Permacrisis (an extended period of instability and insecurity)

The Great Reset
A commitment to jointly and urgently build the foundations of our economic and social system for amore fair, sustainable, and resilient future

2020

Stakeholders for a Cohesive and Sustainable World
Renewing the concept of stakeholder capitalism© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

47

What are the common vision andmethodology that businesses mustembrace to succeed in the next decade?

© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

48

Great realignment anticipated in the global business arena
Global supply chains to remain unreliable and unstable
In the past2024 and beyond

A reliable supply of resources and materials has driven market growth.
Shrinking markets render the principle of the economies of scale irrelevant.
► Increasingly serious climate change, resource depletion,

Primaryfactors

and shrinking population► Destabilizing international situation and growing geopoliticalrisks

Great realignment

Global business giants
Increasingly commoditized products in a highly
competitive market, such as:

Glocal businesses

Local businesses

Semiconductors andbatteries

Their production and sales are dominated by ahandful of global giants.
© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

49

Glocal businesses

Local businesses► Procure traceable raw materials from established► Procure a wide variety of ESG-compliant raw

Procurement

materials and components from local suppliers

Procurement► Emerging smart factories► Produce products with an ESG-compliant► Customize-to-order production using a wide variety

Production

Sales andcustomersof raw materials and components► Sell on the global market

Unstable supply of materials is driving theservitization of industries.

local producers and suppliers (culturally relevant
procurement)

Production

Sales andcustomers

quality using locally procured materials► Sell to other local businesses and glocal

businesses pursuing ESG-compliant procurement

Glocal businesses' growing need for local procurement
drives the emergence of new local businesses.
(e.g., community-based social impact business)

Increasingly popular ESG-compliant local procurement practices bolster supply-chain sustainability.
At the same time, the sustainable business of offering intangible value, such as

stakeholder engagement and cultural relevance, is expected to gain momentum.
© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

50

Mounting Challenges Facing Japanese Businesses
Challenge

01

Rising variable costs

Challenge

Soaring materials prices,
growing procurement risks

02

Rising fixed coast

Challenge

03

Soaring labor costs

Global average

Shrinking market

Japan
AfricaShrinking population

OceaniaSouth America

Crude Oil Price (in dollars per barrel)

Minimum Wage in Japan (yen)120

Annual Population Growth Rate by Region (%)

Asia
North America
Europe

1,050

3.0

0

0
Jan. 2020

700
Jan. 2024

Source: "OPEC Basket Price," published by theOrganization of the Petroleum Exporting Countries

-1.5

2013

2023

Source: "The Minimum Wage for FY 2023," published by
the Ministry of Health, Labour and Welfare

2000

2020

2050

Source: "Global Statistics 2023," published by the Statistics Bureau of the Ministry of Internal Affairs
and Communications

How can we sustain business growth in a shrinking
market and with rising operating costs?
© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

51

Apply a circular design approach to business toboost the turnover

Emerging enterprise needs

A novel strategy for a transition
to a circular business model

AMITA intends to play a leading role indeveloping a circular market—a newand promising frontier—in thegeographically small Japan.
© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

52

AMITA Group’s Medium-Term Management Plan
for FY 2024 and 2025
Transform our business by aligning nonlinear business models into a larger linear model
to make our revenue stream more robust and sustainable
AMITA’s conventional business

AMITA’s transformed business
Clients

Cloud-based environmental management service► Using ICT solutions to assist in reducing environmental costs and risks

Enhance corporate
sustainability

Enhance community
sustainability

Enhance social
sustainability

Co-Creation City

MEGURU
PLATFORM

MEGURU STATION®
Human
capitalPhysical
capitalFinancial
capitalInformation

Relationships

Know-how

Each business unit has
become larger, driving up
Closed-loop recycling of industrial waste duplicate operating costs.
► Producing value-added alternative materials

Cloud-based
environmental
management
service…

Environmental
assessment andcertification
service

Environmental assessment andcertification service► Visualizing the value of forest andfishery resources

Sustainable community
development► Making better use of unused local

Reduce common
operating costs

MEGURUCOMPLEXMEGURUFACTORY

Create synergy to reducebusinessrisks
zProvide information
related to a circularsupply chain

MEGURUSTATION®

Closed-loop
recycling ofindustrial waste

Intangible assets

Operating resources

resources…

Sustainablecommunity
development

Create greater
value

…
Human
capitalPhysical
capitalFinancial
capitalInformation

Relationships

Know-howIn FY 2024 and 2025, we intend to follow through with our transformation initiatives launched in the Business
Development Phase (FY 2021 to 2023) and focus on laying a solid groundwork for future growth.
© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

53

Key Strategies for the Groundwork Phase in FY 2024 and 2025
Maximize the sales opportunities forour service products and solutions

Strategy

02

Sales strategy

StrategyUpgrade our marketing operations

01► Establish a cross-functional department

responsible for coherently coordinating andmanaging AMITA's corporate communication,marketing, and sales► Establish a framework for soft-selling andvalue-marketing approaches

04

Product strategy

Upgrade our solutions for assisting businesses
and municipalities in achieving greater
corporate and community sustainability

Actions to take

Strategy

Convert sustainability needs intobusiness opportunities

Actions to take

► Solutions for businesses•

Upgrade the value proposition of
Cyano Project► Solutions for municipalities• Develop Co-Creation City and
MEGURU COMPLEX initiatives

Accounting strategy
Implement a management accounting system

Operating profit margin

Action to take
► Tightly manage ourbudget performance andcosts to achieve a higher
operating profit margin.

© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

Strategy05(10.4% for FY 2023)

TBA

03

Organizational strategy

Find a way out of innovator's dilemma; transform theorganization and culture to encourage employees toshift their mindsets to "out-of-the-box" thinking
Actions to take
► Offer performance-based compensation packages to

employees► Eliminate mid-level manager positions and replacethem with a self-organizing management style* toencourage every employee to take leadership at work
► Design a logic tree based on the OKR management
framework to visualize how an organizational objective
and performance relate to each employee's objective
and performance

Relationship-building strategy
Pursue partnerships more aggressively

Actions to take

FY 2025 target: 12.8%

Strategy► Establish a joint venture with the Sumitomo Mitsui Finance and Leasing

Group in April 2024
► Develop a circular market in Indonesia in collaboration with Indocement► Participate in a joint project to develop a platform shared by businesses,
municipalities, and government offices*Self-organizing dynamics is a phenomenon in which individual organisms behave independently of each other, without a big-picture perspective, but unconsciously form an orderly
system as a result. A self-organizing management style encourages every employee to demonstrate ownership and leadership at work and keep creating greater value as a team54

Expand the Advantage and Scope of Cyano Project
Step up corporate communication, including industry and public relations, toengage more corporate clients and develop long-term partnerships with themplays the role of a circular "Do Tank"
Three key drivers fortransition strategy

Consulting service
Provide TCFD- and TNFD-compliance solutions and a factory
support service package to provide integrated consulting tocorporate clients on these three key drivers

CE

Cross-functional task force
Assist the client's task force comprising membersof corporate management, procurement,
manufacturing, sales, public relations, and IR indeveloping and implementing a shared strategy formaking a transition to a circular business model

Solution service

Assistanceintransition

Assist in conducting a PoC assessment on business development,
based on insights gained through consultation with clientsNP

CNand client

Operation service
CE: Circular economy
CN: Carbon neutrality
NP: Nature positivity

Assist in providing, maintaining, and operating a new system
to allow clients to focus on creating value in their core business
operations

Fulfill the client's need to access ESG informationand select a venue for conducting a field test toverify the business case
Use MEGURU STATION® as an
information access point and a venue
for a field test

Conduct a PoC assessment on AMITA's circular platform as part of assisting clientsin fulfilling their circular business needs© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

55

Introducing AMITA's Co-Creation City Initiative
to build a sustainable community based on greater engagement
and resource circulation
Build a circular, sustainable community that fosters
greater engagement, diversity, and cultural identity

Co-Creation City
To be implemented in:

Point

Municipalities with a population of less than
150,000 and their immediate vicinity
Resource
circulation in
a community

Mutually
supportive
engagement
among residents

Joint community development
efforts by businesses, residents,and municipal authorities

To be incorporated into a national initiative to develop
urban communities with DX solutions, promoted by theJapanese government

Businesses

MEGURU STATION®

MEGURU COMPLEX

Biogas plant

Diaper-recycling facility

Carbonization furnace

Materials hard to recycle in thecommunity are shipped to out-oftown recycling service providers
operating on the MEGURU
PLATFORM.

MEGURUFACTORY

MEGURU PLATFORM© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

56

MEGURU COMPLEX
addresses communities' waste-management challenges
Communities' challenges

Recycle combustible municipal waste into usable resources,
eliminating the need for incineration and land-filling

Incinerating municipal waste◼ Incinerating water-containing waste, such as food waste (80%water) and used diapers (70% water), is energy-consuming.
◼ Incinerators are a major source of CO2 emissions in thecommunity.
◼ Financially challenged communities with a shrinking population
do not have a sufficient budget for maintaining municipal
incineration facilities.

MEGURU COMPLEX
Food waste

Biogas plant

Manufacturers

Used diapers

Municipal incineration facilities
Diaper-recycling
facility

They need to be overhauled every 20 to 30 years to remain in
operating condition.

Other waste

Recycling service
providers

650 of the 936 operating and non-operating municipal
incineration facilities are 20 years old or older in Japan.

Carbonization furnace
Plastic waste
Used diapers: 5%(included below)

Combustible municipal waste by type
Food

Paper and textiles

Plastics

28%

37%

15%

Wood
and
grasses

6%

Other

15%

Source: "A Report on the Use and Disposal of Containers and Packages in the 8 Largest Cities in Japan in 2022" and "A Reporton the Recycling of Used Diapers in 2022," published by the Ministry of the Environment© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

MEGURUSTATION®

The combination of MEGURU STATION® and other integrated
solutions assists in the closed-loop recycling of waste andstreamlined waste management.

57

AMITA's Updated Road Map through 2030
2030

Updated road map

Road map announced in 2020

AMITA Group toestablish the Social
Systems Design
Business

AMITA Group tocelebrate its
50th anniversary

2027
Accelerated Business
Growth Phase
Create novel value to achieve
greater social sustainability

Business Development Phase
•
•
•

2029

Develop service products for the Social Systems
Design Business
Make the Group's profit structure more robust
Transform the Group's organizational structure
and culture

Business Expansion Phase andAccelerated Business Growth Phase◼ Launch MEGURU COMPLEX and deploy

Co-Creation City
2026

◼ Complete the development of the MEGURU

PLATFORM into deployment
2025

Business Expansion Phase
Announced its
commitment tobecoming the Futuredesign Company.

2030

2028

Assist more businesses and municipalities in
adopting AMITA-designed industrial and community
platforms

Future-design
Company

2027

AMITA Group tocelebrate its 50th
anniversary

Announced
AMITA Vision
2030

AMITA Group toestablish the Social
Systems Design
Business

2024

Groundwork Phase
Establish a framework for value marketing, upgrade value
proposition of Cyano Project to attract more clients◼ Develop Co-Creation City and MEGURU COMPLEX◼ Transform the company into a profit-generating organization
capable of keeping creating greater value◼

During the Groundwork Phase in FY 2024 and 2025, we focus on transforming the Group's organizational structure,
bolstering its financial performance, and preparing for business expansion. We will enter the Business Expansion Phasein FY 2026 with the goal of achieving an ecosystem society in FY 2030.
© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

58Six-Year Management Plan for FY 2025 through 2030
We have updated our revenue and profit targets as shown below, reflecting changes in our operating
environment brought about by recent geopolitical developments, including the Russia-Ukraine conflict andthe clash between Israel and Hamas.
FY 2024 and 2025

Earlier targets for net sales

Updated net sales (results and targets)

Earlier targets for ordinary profit margin

Updated ordinary profit margin (results and targets)

27.4%
8,400

(In millions of yen)

20.5%
16.8%
6,010
5,283
4,809

5,070

4,536

11.7%

28.6%
8,611

12.5%

◼ Establish a framework for value marketing, upgrade

value proposition of Cyano Project to attract moreclients◼ Drive the growth of our silicon-recycling business bytapping into the solid growth of the chip industry◼ Launch the Social Systems Design business in
Malaysia◼ Develop new business at Circular LinX Co., Ltd.

14.4%
FY 2026 through 2030
◼ Cyano Project to drive the Group's revenue growth◼ Grow the service business at Circular LinX
◼ Monetize the resource-recycling business in

23年度
FY2023

24年度
FY202425年度
FY2025Groundwork Phase

26年度
FY202627年度
FY2027

Business
Expansion
Phase

28年度
FY202829年度
FY2029Accelerated
Business Growth
Phase

30年度
FY2030Indonesia◼ Launch MEGURU COMPLEX◼ Establish the MEGURU PLATFORM

AMITA aspires to become a leading circular platform player by FY
2030, capable of envisaging and designing a sustainable future.
© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

59

Financial Targets for the Groundwork Phase in FY 2024 and 2025
(In millions of yen; amounts rounded down to the nearest million yen)

FY 2023 results

FY 2024 targets

FY 2025 targets

Net sales

4,536

4,809

5,070

Operating profit

472

540

651

Ordinary profit

530

599

731

Profit

308

371

489

Operating profit margin

10.4%

11.2%

12.8%

Ordinary profit margin

11.7%

12.5%

14.4%

In FY 2024 and 2025, we intend to follow through with our transformation initiatives
launched in the Business Development Phase and focus on laying the
groundwork for growth and bolstering our financial performance.
© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

60

Home living

Businesses
Resources

MEGURU STATION®

By FY 2030, AMITA aspires to become aleading circular platform player thatcompiles circular information fromresidents, businesses, and municipalities
for community and commercial use.

Information

Resource-collection site that promotes
mutually supportive engagement
among community residents

MEGURU FACTORY

Facility that turns collected traceable
resources into value-added circularmaterials

Establish a virtuous circle of manufacturing and consumption, in which tangibles,
information, and people's thoughtfulness to others are all circulated

MEGURU PLATFORM
Big data(Information about consumers'
behavior and activities, as wellas their resource consumption)
Predict consumerpurchase intentions
Predict procurement
needs

Predict customizationneeds in a community
Predict consumer
behavior

Provide circular information that businesses canuse in their well-being marketing efforts© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

61

AMITA Vision 2030:
AMITA's initiative and commitment to creating an
ecosystem society by 2030

An ecosystem society is a circular societythat promotes the circular use of land andresources to maximize their value.
It is a relationship-driven society in which
natural and relational capital will beenhanced in a virtuous circle as it grows.

AMITA spurs social innovationthat brings people maximum
happiness with minimum
consumption.

© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

Triggers socialtransformation

Triggers
industrial
transformation

Triggers
businesstransformation

People’s lives
are transformed

Triggers
producttransformation

Triggers mindset
shift in people

People's lives
are transformed

62

AMITA's Five Commitments to Earn and Retain Public Trust
1. AMITA delivers on "Our Mission.”
2. AMITA remains autonomous.

3. AMITA delivers social good in the belief that a team of ordinary people
can do something extraordinary.
4. AMITA stays at the forefront of achieving an ecosystem society in which
every member plays a leading role, as well as a supporting role.

5. AMITA pursues business to increase natural and relational capital andupholds the dignity of all life forms.

For inquiries about this document, send emails to the Investor Relations Section of
AMITA HOLDINGS CO., LTD. at ir@amita-net.co.jp
Disclaimer: This document is for informational purposes only and is not intended to solicit investment in the Company’s publicly traded stock.
Opinions and forecasts expressed in this document are based on information, estimation, and assessment available at the time of writing (February 22, 2024).
AMITA HOLDINGS CO., LTD. does not guarantee their accuracy or completeness and reserves the right to update the content at any time without notice.
© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.

63