AMITA HOLDINGS CO., LTD
535 Akinono-cho, Oshikoji-agaru, Karasuma-dori,
Nakagyo-ku, Kyoto
604-0847 Japan
TEL: 075-277-0378 FAX: 075-255-4527
e-mail: press@amita-net.co.jp
JASDAQ (Securities Code 2195)
http://www.amita-hd.co.jp
Published by: AMITA HOLDINGS CO., LTD
Publisher: Eisuke Kumano
General Editor: Hitoshi Fujiwara
Written and edited by Akari Fujimoto, Junpei Yoshida, Yuichiro Ebina, Motoki Maeda
Designed and printed by Daishinsha Inc.
Copyright©2014 AMITA HOLDINGS CO., LTD
All rights reserved

Annual Report 2013

AMITA HOLDINGS CO., LTD

Creating Value,The AMITA Way

The AMITA philosophy is thatpeople and the environment should not have to pay the pricefor disposal of society's waste.

Creating Value,
The AMITA Way
Annual Report 2013

AMITA HOLDINGS CO., LTD

Contents

01 Introduction
02 Greetings from the CEO
04 The AMITA Group's Mission
05 Shaping the Future
06
Philosophy
08
Organization10
People12 Spheres of Business
14
Materials
28
Information
42
Community
50 Financials
52 Stakeholder Feedback
54 Other Facts
57 Publications

This document is a report on, and a blueprint for the future of,
The AMITA Group's performance and business activities.
It explains how the Group is striving to fulﬁl its goal of identifying
and addressing societal needs.
The AMITA Group is a publically traded company in Japan with

We present this information as objectively as possible.

a corporate mission to realize a sustainable society.

Our metrics for measuring performance include both thoseThis annual report, Creating Value, The AMITA Way , describes:

typically used at other companies and others we developed on
our own.

- the kind of value we seek to create- our business philosophy

We are always asking ourselves, “What is value?”—we seek

- our medium- and long-term vision and goals

to improve our performance year by year, providing solutions- how successfully we executed on our goals during theto the challenges faced by society and the business world.

past ﬁscal year
- how our results impacted society

We welcome feedback from anyone reading this report.

- how much natural and relational capital we createdPlease do not hesitate to contact us.

- our ﬁnancial performance
The AMITA Group01

Doing Business with Empathy Capital
Since the founding of The AMITA Group, our company
has sought to provide solutions to the challenges facing
society. Our company motto is: “Nothing wasted”. We putthat into practice by establishing cyclical systems, which
turn neglected resources into useful and value-added
products. We are continually working towards the goal ofa sustainable society.

Eisuke Kumano
Chairman and CEO
AMITA HOLDINGS Co., Ltd.

02

My quest to create a socially conscious business beganwith a single photograph. It was taken by W. Eugene
Smith(1918-1978), and showed a mother embracing her
daughter. The daughter was a victim of Minamata
disease (mercury poisoning). I was 15 years old when I
first saw this photograph in a bookstore, and it rooted
me to the spot. Here I was, frittering away my life in selfcentred idleness, comparing myself with others andregarding myself as unjustiﬁably victimized, while people
like this mother and daughter were suffering such great
hardship. I had an epiphany when looking at that sombre
black-and-white photograph. I realized that I was failing totake responsibility for my life, and that I had become abystander. I saw that pollution, wars and other tragedies,
which I had simply blamed on politics and economics, wereactually problems related to human nature. Who was
responsible? A company? The nation? Society? Individuals? As I
looked at that girl, who was just about my own age, I reached theconclusion that at the core of all civilization's problems are the
incentives that motivate people, including myself. Each era in history
is deﬁned by social phenomena, and these generate the incentives that
motivate people. If you can change the incentives, you can bringcivilization into a new era. Ever since that day, I have been
thinking about how to change the incentives of our era. And notjust thinking, but taking action to change them. Now, 40 years
have passed since I ﬁrst saw that eye-opening photograph.
There are many signs that the Japanese economy isrecovering. However, our country's economic model is basedon quantitative expansion, and we face a moment 10 to 20
years from now when weakening consumer demand and ashrinking population will contract the domestic market. For
this reason, Japanese companies and politicians have set theirsights on rapidly growing markets outside Japan, particularly
in newly industrializing countries (NICs). Even as international
trade negotiations like those for the TPP move forward, I fearthat Japan outside the big cities will be left behind by
globalization and remain dependent on tax-funded transfers.
This will lead to extreme instability, both in Japan andinternationally.
Moreover, in the NICs, rapid economic growth is accompanied
by proliferating environmental challenges. These range from
pollution of the air, water and soil and its impact on humanhealth, to the need for improved legal frameworks and astronger effort to conform to international environmental
standards. The approach to solving these problems that is
ultimately chosen will greatly inﬂuence the fate of the world's
economy and the global environment.
It goes without saying that the air, the oceans and the humancondition all transcend international boundaries. We must act
swiftly. We must embrace new values that go beyond thematerial. If we cannot demonstrate that a thriving community
where nature and human lives are woven together is superior
to a nation based on material wealth, we will lose things that
we should be preserving in perpetuity for our children.
I believe that a company exists to create value for society. Can I,
as an entrepreneur, change the world and create value in a
way that will preserve the dignity of the children of tomorrow?
That has been my lifelong quest. Starting from a three-personcompany in a tiny office, over the past 37 years I have been
fortunate to pursue that quest with the help of our many clientsand colleagues. The motivation driving me forward has been toact in an altruistic way—to make our world a better place forall of us. I have heard that only one in every 5,000 companies
lasts for 30 years or more, but here we are. That in itself is, I
believe, evidence that by creating the right incentives forpeople, we can make history.
Since 2006, AMITA HOLDINGS has been listed on the stock
market (on what is today JASDAQ). We chose to go public inorder to exemplify a cyclical system linking economic returns
and social returns: when investor decisions empower sociallyconscious business practices, investors make the society they
live in a better place. It seems to me that since 1985, when the
yen began to appreciate rapidly, Japanese companies havebecome increasingly disconnected from society. They havepursued the fulfilment of market needs through quantitative
expansion rather than the fulfilment of social needs. As aresult, addressing the challenges society faces has fallen more
and more to governments and not-for-profit organizations.

Finding ways to recycle
rubble from the 2011
Tohoku tsunami

There are companies that see contributing to society as
something separate from their core mission, to be done
only at the margins when surplus resources are available.
This leads to corporate pursuit of primarily short-term
profits, and a social structure that encourages people totrust only in money. These investment conditions make it
difﬁcult to focus on any factor other than economic return.
I am not concerned solely with ﬁnancial returns. I also want
to share with our shareholders, employees, clients andpartner companies the social rewards of business: hopes
and dreams to strive for, a sense of accomplishment in theface of adversity, the satisfaction of becoming part of ateam. Using empathy capital to solve the challenges society
faces is my ideal for how a company should be run.
The AMITA Group focuses on neglected resources: wastematerial, untended forest, disused land and otherresources that are not adequately mobilized by society.
This includes neglected human assets in the form ofcultures, traditions, landscapes and demographic groups(such as seniors and the disabled).
I hope this report will inspire you to share the excitement thatruns through The AMITA Group. Please contact us about
anything in the report that strikes a chord with you. As anentrepreneur, I would be delighted to see ever more people
creating value together, making the most of each other's company
and companies.

March 2014

Dedicated contact
centre for customer
environmental issues

Planning a community
energy self-sufﬁciency
through use of timber
offcuts

03

The AMITA Group's Mission
A sustainable society is one in which development generates both natural and relational capital.
We are committed to realizing just such a sustainable society.
Proliferation ofsocially conscious
companies

Socially conscious
products and services
that grow natural andrelational capital

The AMITA Group's mission to bring about a sustainable society is carriedforward by our business activities, which provide ever improving solutions
to society's challenges. We develop and deliver services that fulfil bothsocial needs (environmental protection, health, community bonds, acontribution to others.) and market needs (low prices, high efﬁciency, highproduct quality.). A business that pursues only one of these kinds of needs
may prosper in the short term, but it cannot survive in the long term.
The more people make use of our services and the more our businessexpands, the more the environment will flourish, the more local
communities will prosper, and the more people will be connected toeach other.

A value chain encompassing
the whole of society

As pioneers in socially oriented business, we share our model and our
know-how with the companies and municipalities that we serve, in orderto bring about a future for sustainable local communities and sustainableindustries throughout in Japan.
By doing all of this, The AMITA Group aims to be the company that “Forgesa Flourishing Future”.
Investing insocially conscious
companies
Social participation throughpurchasing choices04

Shaping the Future: AMITA's Vision
The AMITA Group helps companies, municipalities and localities
to forge value-creating systems within which human beingsand the natural environment both ﬂourish.
Harnessing
neglected
resources

Methods

Forging
the Future

Technologies

Blending
inconsistent
resources to create
consistency

Fostering socially andenvironmentally conscious economies

Forging viable local economies
under local control

We offer companies and municipalities security by lowering environmental costs,

The AMITA Group is aiming to harness neglected resources within communities, inrisks and impacts, as well as opportunity through added environmental value inorder to build viable local economies. Each locality has its own distinct conditions:products and services. In this way, we aim to forge value-creating systems in which

terrain, climate, culture, ecology, etc. We identify neglected resources in the target

industrial development is accompanied by the growth of social value.

locality and create cyclical systems to harness them. In doing so, our aim is to stem

Right now, we mainly provide services in the areas of waste recycling andcompliance, process reengineering, and marketing support for environmental

the draining of resources, economic vitality and human population from nonmetropolitan localities.

operations. In addition, we are developing our international certification

When local people develop, sell and use products and services that are based on aassessment business, as well as our biodiversity conservation-related

local, healthy coexistence between humans and nature, a new economic cycle isopportunities in environmental/CSR consulting. In the future, we plan to expand

realized: local production for local consumption. For example, self-sufﬁcient utility

our services that build “environmental value” across multiple business domains.

infrastructure, like using wood from forest thinning as a fuel, or using household

They will act as a driver for greater social and environmental consciousness

waste as an input for biomass electric power generation. We are helping to develop

among companies and industries.

these economic infrastructure platforms, and then leaving them under local
control.
05

Corporate Philosophy
The bottom line for our business is:sustainable growth of company and society.
A company has many stakeholders, including clients, employees and shareholders. We
believe in making business decisions based on values shared by our entire spectrum of
stakeholders.
Normally, it's thought that the thing all stakeholders want is economic beneﬁts. But forbusinesses which make profit, and only profit, this ultimate objective can create
adversarial relationships over the distribution of the economic beneﬁts—haggling overdiscounts with clients, with employees over wage increases, with shareholders overdividends, and so on. Of course, profit is important. But the most important sharedinterest of stakeholders is sustainable growth of the business. If the business does notcontinue to exist, and to grow, no one will reap any beneﬁts. This may sound obvious,
but the fact is that any number of companies, in the face of an economic downturn,pursue short-term proﬁt maximization over long-term sustainable growth.
By emphasizing this shared interest in sustainable growth, it is only natural for acompany to make the most of limited capital, to value its people, to be receptive to thevoice of shareholders, who are inherent supporters of the company, and to develop
services from a client-centric perspective.
For example, in our recycling business, we have a firm principle to achieve 100%
recycling. We do not consider it a sustainable practice to pick out only the easily
reusable material and dump the rest. We have set up a performance review system thatencourages our people to focus more on value creation than on pure efﬁciency by theclock. By valuing human resources in this way, we believe that we are maximizing ourcompany's growth potential in the long term.

06

Sustainable growth of company and society

Clients

Employees

Shareholders

Sustainable growth of company and society:a value shared by all stakeholders

Management is about purpose.
Our sense of purpose guides us to ﬁnd the optimalbalance between proﬁt maximization and future investment.
The AMITA Group has a keen sense of purpose: toensure that waste is not wasted. This is the basis of
how we run the company. This is the common starting
point for the actions and decisions of all our
employees.

recycling business so that we can fund entry into upand-coming markets that have major potential, allwith the aim of forging new cyclical systems thatholistically harness neglected resources of forest,
farm, ocean and city.

The foundation of The AMITA Group's business is the
Terrestrial Resources Business, which recycles socalled “worthless” industrial waste material into
valuable resources. And the core of the Terrestrial
Resources Business is made up of the recycling
services business and the environmental risk
consulting business. In all, the Terrestrial Resources
Business represents about 90% of The AMITA Group's
earnings. We are also undertaking new businessinitiatives to harness neglected resources, such as
untended forest and uncultivated farmland, as well as
underemployed labour resources in society including
the elderly and handicapped. Moreover, we are
strategically collecting, compiling, analyzing andmaking use of information through our Information
Resources Business. We believe that our role as acompany is to build up profitability in the waste

One of the most important decisions a company must
make is how to balance short-term revenue
maximization against investment in new businesses
that will sustain its future earnings. We evaluate
numerous factors—such as social trends, social
needs, our company's resources, and ouropportunities to partner with outside entities—inorder to make a decision that reﬂects the big picture,and to determine the priority and timing of how wedeploy our business resources: our people, physicalassets, ﬁnancial assets and networks.

Decision-making driven
by a clear mission.
In one sense, it's easy to make management decisions
about how to run a business if all you consider iswhether you are proﬁtable.
But we, the senior management and employees of
The AMITA Group, are looking to accomplish morethan simply making money. We want to run a businessthat enables all our stakeholders—ourselves, those
we do business with, and our shareholders—to feelthat we are making a contribution to society andhelping to build a better future, in that our profits
come from businesses that are providing products andservices meeting societal needs. Here is the question
members of the executive leadershipat The AMITA Group ask each otherwhen we make a decision: “Is thisin accord with our mission?” We
are committed to discussing an
issue until we can come to aunanimous agreement.

The AMITA Group aims to maintain earnings in ourcore business while focusing on select emerging
businesses to establish new primary sources ofrevenue aligned with the future.
Executive Director

Hitoshi Fujiwara
07

Organizational Structure for Achieving Value Creation
The AMITA Group aims to show that a company
rich in relational capital can outperform thoserich only in ﬁnancial capital.
PolicyThe word “company” can refer to a business enterprise, or to a group of people. In
recent years, people ﬂocked to work for monetarily wealthy companies. But whentimes changed and the companies' fortunes dipped, people found theirconnections easily broken.

The most important factor in growing a company sustainably is not ﬁnancial strength
or technological strength. It is the strength of the relationships among colleagues, the people whose“company” you keep. When adversity comes, those colleagues are right alongside you, striving toovercome it. You want to dream big dreams with them, and then achieve those dreams. That is thebiggest driving force in a company's growth. If you assemble a group of colleagues linked by trustand confidence, working towards a shared vision, you can accomplish bold, exciting and sociallyconscious business.
The AMITA Group aims to show that a company which builds an organization that fosters richrelationships to create value can outcompete a company whose only wealth is ﬁnancial. That is why
we engage in dialogue with our stakeholders and actively solicit their feedback, and take it seriously
in our business decisions.

AMITA HOLDINGS Executive Leadership
Inside directors: 5 External directors: 1 Auditors: 3

Eisuke Kumano, Chairman and CEO
Born 1956. Joined thecompany at age 23,
became CEO in 1993.
Following his motto—“Ordinary people, working
together, can achieve
the extraordinary”—hehas dedicated his life tobuilding a society with a
new measure of value:
relational capital. Serves
jointly as CEO of AMITACORPORATION and AMITA
Institute for Sustainable
Economies Co., Ltd.

Hitoshi Fujiwara, Executive Director
Born 1964. Joined in
2002 having worked
previously at a majorbank and an educational
publisher. In chargeof the group's overall
communications andbusiness development.
Motto: “Work to makeyour mark on the world.”

The AMITA Group is composed of parent company AMITA HOLDINGS Co., Ltd.

Kenichi Sugimoto, Executive Director
Born 1960. Joined
the company in 1983,
handling mainly tradein valuables for the
Terrestrial Resources
Business. Now incharge of personnel,
administration andlabour relations for allof Terrestrial Resources
Business. His motto is“Do right in the sight ofGod.”

Taro Shimizu, Director
Born 1967. Joined in2003 after working in
finance for companies
including a majorr e t a i l e r. O v e r a l lre s p o n s i b i l i t y fo r
financial accounting of
the group. Committed toresponsive and efﬁcientaccounting operations
and robust finances.
Motto: “I know that I do
not know.”

The AMITA Group and four subsidiaries. Consolidated total employees number approximately
160. Important matters are discussed at meetings of the directors of eachsubsidiary and at AMITA HOLDINGS Co., Ltd. board meetings.

AMITA HOLDINGS Co., Ltd. (FY2013)
Resources Business, Information Resources Business
AMITA CORPORATIONー Terrestrial
Handles waste recycling, environmental risk consulting, etc.
Regional Resources Businessmodels of autonomous
AMITA Institute for Sustainable Economies Co., Ltd.ー Develops
local social structures, etc.
Information Resources Business

AMITA Institute of Environmental Certiﬁcation Co., Ltd.ー Undertakes assessments/audits
for environmental certiﬁcation, etc.

AMITA Properties Co., Ltd.ー Manages assets for The AMITA Group(Amita Properties Co., Ltd. merged with The AMITA Co., Ltd. on January 1, 2014)08

Takafumi Hasegawa, Director
Born 1962. Sincejoining AMITA in 1990,
has been in charge of
Terrestrial Resources
Business production
management andrecruiting downstream
users. Since joining theboard in 2013, has been
entrusted with disasterrecovery and opening
new markets. Motto: “Ifyou stumble, get back up.”

Masao Takebayashi, External Director
Born 1941. Joined theboard in 2010 having
w o r ke d a t a m a j o r
industrial machinery
manufacturer, and asa special lecturer at
the University of Tokyo.
Brings his long years ofexperience in building
natural and social capital
to bear on “building abright future.”(Officially resigned
March 25, 2014)

Our board members: All ages given, and all responsibilities listed, reﬂect the situation at theend of 2013(For bios of auditors, please consult the company website at http://www.amita-hd.co.jp/).

Building an organization rich in relational capital through trust and conﬁdence.
A value-creating organizationn (FY2013)

Working with stakeholders to build the future (FY2013)

AMITA HOLDINGS manages all the personnel, administration, corporate
communications, and accounting and ﬁnance functions in an organizational structure
designed to maximize value creation and relational capital formation.

The AMITA Group sees our stakeholders - employees, clients and shareholders who share our mission as companions on our path to the future. In dialogue with our many companions, we are building a systemthat turns the dreams, hopes, knowledge, know-how, time and investment into the capital on which thecompany runs.

General Meeting of Shareholders
Board of Auditors
Board of Directors

Management Strategy Team
This team works directly under the CEO toevaluate new development initiatives andprovide strategic planning support.

Management
Steering GroupAccounting Team
Finance Team

Design Group

Empathy CapitalTeam

Design Team

Carries out corporate
communications transcending
the framework of conventional
public relations and marketingin order to build empathy capital;plans and executes systems thatwill harness people's ideals andaspirations as a form of capital.

H a n d le s h u m a n re s o u rce s ,administration, labour relations,and legal functions. Tasked withtraining personnel and designing aworkplace environment conducive
to generating value while providing
solutions to the challenges facing
society.

IT TeamResults brieﬁngs /stakeholder meetings: venue for airing opinions (twice each).
Designing the Future newsletter: mailed to shareholders and registeredindividuals (quarterly, circulation approx. 1,400)
Client/shareholder surveys: survey of satisfaction and opinions (once each;results on p.52-53)
Client focus group: 5-10 companies per region invited (8 times)

Other collaborations with stakeholders
Advocacy through collaboration with industry groups, media
Planned (jointly with The Cement Shimbun Co., Ltd.) roundtable with Japan
Cement Association, municipalities, and waste generators.
Advocacy through multiple media for the future of cement recycling and reformof cement recycling laws.
Transport company roundtable
Safety classes for transport companies & on-site studies (once each)
Local communications
Environmental education classes for universities and high schools, student
intern programmePartnerships with municipalities
Offer plant tours, trainee opportunities for municipalities' international exchange programmes.
Hosted 141 people from China and South Korea, as well Malaysia and other SEA countries, on
12 occasions.

“Designing the Future” newsletter
covers AMITA's present and futureHigh school environmental education
classes help local communities◀

Develops IT infrastructure,b u i l d s I T l i t e ra c y w i t h i n
the organization, operates
IT strategically to improvebusiness results, and supports
new business initiatives.

Initiatives for active engagementwith clients and shareholders

Discussions at director “town hall”
meetings are always lively, andaddress various issues◀

Wo r k s t o b u i l d t h e
co m p a n y ' s va l u e b yformulating businessplans, setting budgets
and assessing results.

Business Integration
Group

Company meetings: employee representatives and management meet to
exchange views (once in 2013).
Internal SNS: employees can directly submit business ideas or proposals for
improving the organization.
CRM system: stores a complete history of client contacts, makes frontline
observations available to management.
Director town hall meetings: directors visit each business location to havedialogue with staff (24 times in 2013).

◀

President & CEO

As part of our corporate governance structure,
AMITA has this independent body attend the
directors' meetings, and determine auditing
policies and plans. The Board of Auditors
communicates and collaborates with theaccounting auditors and internal auditing
team.

Employees ARE the company.
Major initiatives for internal communications

09

Developing People Who Create Value
We nurture employees with a spirit of altruism and the character to always ask, What is value?”
Value UP

People are an asset, not a cost
People are what make up a company, but
in corporate accounting, they are treatedas personnel costs.

GrowthAt The AMITA Group, people are ourmost important asset. It is people who
generate innovation, growth and limitless value.
We are more interested in the value that our employees generate, and theextent they actively help others, than in how much work they can do perunit time. We expect them to be oriented toward creating and deliveringvalue.

We intend that The AMITA Group employees not only earn their livingfrom the company, but also feel that they are part of a “work family” thatcomplements their home and community life.
By forming a community of shared purpose with valued colleagues,
and connections with clients, partner companies and shareholders
who endorse the AMITA mission, we create a working environment thatenriches the lives of employees not just monetarily, but with a sense ofaccomplishment and having made a difference to society that cannot be
achieved as an isolated individual.

Team evaluation + character evaluation ⇒ value creation

Together creating a workplace where people
can enjoy a long, fruitful career

From individual evaluations to team evaluations

Abolition of mandatory retirement system◆

Since FY2012, we have adopted a team performance evaluation system in which a
team's evaluation (success in achieving objectives) serves as the evaluation for
the team's members. This evaluation is the basis for bonuses.
→ This promotes an attitude of responsibility and solidarity by instilling
an awareness that all team members are accountable for the team's
decisions and results.
→ Promotes atmosphere of mutual assistance where employees
compensate for teammates' weaknesses with their own strengths.

Individual character evaluations◆

10

Forming a “work family”

Promotion decisions based on evaluation of individual character.
Helpfulness, risk-takingout-of-the-box thinking, degree of inﬂuence,and problem-solving ability are among the qualities looked for incharacter evaluation.
→ Under our philosophy that employees' personal growth willgrow the value of the company, we nurture a spirit of altruism
and an enterprising, can-do attitude.

◆

AMITA plans to abolish its mandatory retirement system in 2014

→ By building a system in which employees 60 and overcan continue to work and invest their ample experienceand character, we intend to absorb their insights and stockpile
their knowledge, know-how and networks for the company.
→ Employees who desire the sense of purpose that comeswith a working life can continue at The AMITA Group witheased concerns about post-retirement livelihood.

Home-workplace proximity◆

AMITA is pursuing employment practices that shorten the distancefrom home to workplace.
→ Reducing commute times gives workers more time to care forchildren or elders, and lets them respond more quickly to family
emergencies. We want to offer careers that are compatible with thestages of life and a workplace that gives employees peace of mind.

Human resources development initiatives
Character-building & expertise study groups

Venues for internal communications

Director “town hall” meetings, leadership academy
Directors make the rounds of all the company's workplaces at apace of about two circuits per year, engaging the staff in dialogue.
This provides an opportunity both to reinforce the company's
business philosophy and policies company-wide, and to directly
assess conditions in the workplace. Moreover once a month aleadership academy is held, with discussions touching on topics
like how to approach work with an understanding of AMITA'svalues, and how to encourage teamwork.

Thinking Day
Every Wednesday is Thinking Day at AMITA. Employees gather for
discussions launched by questions like, “Why does AMITA matter?”“What does it mean to be 'in sync' with others?” and “What is ourmost important priority?”
Internal SNS
We have rolled out an internal SNS that is also open to part-timeworkers. Business ideas, random observations, client feedback,book and article recommendations and many other kinds ofinformation and communication are shared across this platform.

Study groups
Periodic study groups on areas of expertise and technology
relevant to AMITA's work, such as recycling technology,
environmental laws, marketing techniques, bookkeeping,
IT and so on. Many are organized through the initiativeand efforts of employees themselves.

Supporting initiatives by employees

Human resources
development
Success stories

Weekend farming and relief fundraising market
Employees came up with the idea of joining with non-employees
once or twice a month to work at an organic farm. Over the past ﬁve
years a cumulative total of 800 people have participated. There isalso a weekly market of local products from areas affected by theGreat East Japan Earthquake to help support the relief andreconstruction efforts there.
Community engagement leave
Community engagement leave was instituted in 2004 in order tosupport employees pursing volunteering or NPO activities thatengage with society and build character.

(FY2013)

Employee surveys and theirapplication to our management

Employee survey
We surveyed employees, asking questions such as, “Is AMITA
living up to the policy that people are assets?” “Is the job you do at
The AMITA Group fulfilling? ” “What atmosphere should AMITA
cultivate?” “Do you feel that management and you are on the same
page?”. There was a 54% response rate. The compiled results andexecutive response were made available to all employees, anddiscussed in management meetings and board meetings to
implement action items.
→ Survey results on p.52

Developing people who add value
to their context.
Responsive. Collegial. Everyone a teacher. Everyone
client-centric. Keep expenses lean. Build
relationships. And avoid three things: slacking,scheming, hypocrisy. These are the standards which
all employees are expected to embrace and adhere toat all times. In this way AMITA is cultivating people
who are asking and acting every day on the question,“How can I do more to create value, monetary andotherwise, in my role?”
When an employee takes a risk and the outcome isa failure, The AMITA Group will give that employee theopportunity to try again. What we do not tolerate is
being static, failing to take risks in order to avoid
failure, or criticizing the failures of other employees
who have taken risks. As a company that iscreating value and forging the future,
we s e e k to i n st i l a p i o n e e r i n g ,revolutionary spirit in our employees.
We want them to believe in theircolleagues and themselves, and feelinspired to take action without any
fear of change or failure.

Executive Director

Kenichi Sugimoto11

Business Domains
Our goal is to realize a sustainable society by operating in three business domains.

Terrestrial Resources Business
The AMITA GroupThe core business underpinning

Terrestrial
Resources
Business

Regional
Resources
Harnessing Businessneglected
resources

Information
Resources
Business
Information Resources Businessbusiness domains
Supports the other two

From society as it is now...
12…to a sustainable society

Economically viablelocal communities

Regional Resources
Business
Pioneering a new future

Socially andenvironmentallyconscious economics

7
197

Terrestrial Resources Business
Since the company's founding in 1977, this unit has
been in the business of 100% recycling of waste. It
also offers comprehensive consulting services thatprovide clients with solutions to complex waste
management challenges. By solving companies'
environmental problems, the Terrestrial Resources
Business creates environmental value and makes apositive difference for society.

2
199

200

Information Resources Business
Provides environmental certification, businessprocess reengineering, and environmental
marketing services. Using data compilation
technologies, this unit sifts through information to
identify the true value of materials, creating
environmental value, and pushing regional
economic development to a higher plane.

2

Regional Resources Business
Aims to build a socioeconomic model in which thedevelopment of industry promotes the restorationof nature, and the enhancement of humanrelationships in communities. By orchestrating
local development that harnesses the unique
attributes of each locality, and providing services tomatch up urban and local human resources, thisunit creates economically viable local communities.

Making it our businessto solve ever-changing societal challenges
In the 70 years since the end of the Second World War,Japan has gone through a period of soaring economic
growth, and achieved unprecedented material
prosperity. But this was accompanied by a soaringa m o u n t o f w a ste a n d i n c re a s e d p o l l u t i o n .
Environmental destruction, population drain fromlocalities outside major cities, and the decline ofprimary industries have put today's Japan at theforefront of developed-world structural problems.
This year is the 38th year that The AMITA Group has
been in business. The company was set up to do 100%
recycling of waste at a time when many people had
never even heard the phrase “resource recycling”. In
subsequent years, as the world changed and new
problems came to the fore, we launched new businessventures such as environmental information services,
environmental risk management, biodiversity
conservation, and local economy revitalization. Since
the Great East Japan Earthquake of 2011, we haveopened two bases in the Tohoku region to process
rubble from the disaster zone and implement a modelof local community that is independent and highly
resilient against disaster.
We at The AMITA Group continue
to pursue our vision of a truly
ﬂourishing society.

Director

Takafumi Hasegawa
13

Terrestrial Resources Business
AMITA is building “resource creation platforms”—using 100% of what would
otherwise be unreliable, useless waste ﬂows in order to create stable,consistent resource supplies.

14

Societal and corporate barriers to creating a cyclical system of resource usage
Our mission as a company is to address the challenges that society and the business world currently face.
Our Terrestrial Resources Business is addressing the following challenges.

Challenges
facing society

s
l
a
m
i
e
Soc Probl
Exhaustion of natural
resources

Transition to a lowcarbon society

Building an international cyclicalsystem of resource usage

Illegal dumping andimproper disposal

Legal environment

B y t h e y e a r 2 0 5 0 , p ro v e n
reserves of iron will be used up
and demand for nickel will betwice proven reserves. Efficientuse of limited resources will beneeded.

Globally, civilization is underi n te n s e p re ss u re to m ovefrom mass production/
mass consumption to lowcarbon societies with reduced
environmental impacts.

R e q u i re m e n t s i n c l u d e a ninternational legal frameworkand system for recycling, as wellas an increased recycling ratio.

In Japan, about 60,000 tons ofwaste is illegally dumped eachyear. There has been little progressin reversing the damage fromillegal dumping incidents, evenones that occurred 25 years ago,and fears remain of negativeenvironmental impacts.

Since Japan enacted the Waste
Management Act in 1970, it has
frequently been revised and iscurrently extremely complex
and difﬁcult to understand.

s
'
y
n
a
s
p
m
m
e
Co Probl
Corporate issues

Soaring resource
procurement costs

Initiatives for a lowcarbon society

Establishing international
management structures

Risking the brandStrengthening
compliance

As demand for resources has
risen, there has been a longterm rise in the price of suchitems as iron ore and copper.
This has pushed up raw material
procurement costs year afteryear, making it harder forbusinesses to remain proﬁtable.

Corporations are understrong pressure to be moreenvironmentally conscious
through greater use of renewableenergy and reductions of their
CO2 emissions.

As Japanese companies movetheir manufacturing bases
offshore, their new obligations will
include establishing transnational
management systems toensure compliance with theenvironmental laws of eachcountry, and promoting “reduce,reuse, recycle” practices.

Companies implicated in illegal
dumping or improper disposal
risk tarnishing the brands they
have laboured to build. Illegal
dumping is a murky problem,and companies must adopt
suitable policies to combat it.

Companies face pressure tostrengthen their compliancewith laws and regulations.
But the interpretation andimplementation of confusinge n v i ro n m e n t a l l a w s , a n d
responding to frequent changes
in these laws, is driving up
management and training
costs, and becoming a growing
challenge for businesses.

1980

CO 2
2012

Terrestrial Resources BusinessSocietal
Problems

70%

50%Companies
reportingsupply chain
management
issues70%
Companies
reporting issues
in establishing
operations
outside Japan
50%(Nikkei Ecology, Sep. 2012)

Improperdisposal
Illegaldumping
Tarnishedcorporate
image

Help! I can't keep
track of it all...

15

AMITA's
VisionAMITA's Vision for Our Terrestrial Resources Business
Building systems to promote the recycling of resources and energy, which support
the creation of both a sustainable society and a sustainable business”
Japan today has an established supply chain for planning,

Starting with directly involved parties—such as waste generating

manufacture, sale and consumption of goods and services thatcompanies, recycling companies, and companies that use recycled

is expanding year by year thanks to advances in IT and othermaterial, along with municipalities and logistics companies,

technologies. Imagine this supply chain as a pipe: a large, sturdy

academic institutions, and other stakeholders—we must embracepipe through which everything flows smoothly on a daily basis.

a shared mission to realize a sustainable society based on the

At present, however, there is no optimized recycling system forhandling all the waste generated by manufacturing goods, by

The mission of AMITA's Terrestrial Resources Business is to build

expired merchandise, and by consumers themselves. The “pipe” forthe systems that will make this recycling possible. Along withrecycling waste material is extremely narrow, and the amount ofproviding eco-solutions that reduce the environmental risks, costs,

material that is recycled to create useful resources is still small.

and burdens to companies and municipalities, we are working withThis situation does not have a single root cause. There are in factmany causes: recycling technologies, legal aspects, cost, IT, logistics
and waste generation processes are all factors.
In order to continue our drive to make business sustainable, andthereby make possible a sustainable society, AMITA believes that wemust solve these issues by building systems to recycle resourcesand energy.

16

recycling of resources.

government, universities, and research institutions to develop newtechnologies for the future and pioneer new markets.

Think of the supply chain as a pipe...
【 Society Envisioned by AMITA 】

Social structure based on seeking
individual best interest

A society with a shared mission and values forrealizing sustainability across businesses,
industries and positions in the marketplace

StimulateconsumerdemandPromotion/ SalesEfﬁcient, defectfree production

Manufacturing

Large sales volume
Low production
costs

Environmentallyconscious PR

Seek cheapest
possible priceConsumption

Supply chain in which resourcesand energy stagnate

Seek safe, cheap
disposal

Waste

Planning

Manufacturing

Glut of un-recycledmaterial
Disposal in
landﬁll

Legal complexity /Information gaps / Cost
/ Technology
Main obstacles to seamless recycling

At present, the supply chain from manufacturing to consumption is robust, but the pipelinefrom WASTE TO RESOURCES remains largely UNDEVELOPED.
NO OPTIMAL CYCLICAL SYSTEM IS IN PLACE for resources and energy.

Promotion/ Sales

Products with lessenvironmental
impactConsumption

Seamless supply chain forrecycling resources and energy

Planning

Today: not many resources
are recycled“Material recycling”—recycling resources intomaterials for production—
is not common.

Solving this resource
shortage requires
many inputs

Green procurement of raw materials
Designing products for ease of recycling
Improved manufacturing processes

Terrestrial Resources Business【 Society Today 】

Resources&
Energy

Waste

Reuse

Recycling

A better, fatter pipe for therecycling supply chain will
propel corporate and social
growthCost saving / Increased business efﬁciency /Environmental education / IT implementation /Legislation / Environmentally conscious
product design / Emissions control / Recycling
technologies R&D
The key to seamless recycling

How can we “fatten the pipe” of RESOURCE RECYCLING? R&D, more efﬁcient logistics,
rollout of IT systems, and legislation is needed, along with retooling of manufacturing
processes for ease of RECYCLING. We also need DRASTIC RENOVATION OF PRODUCTDESIGN, of methods of retrieving goods in circulation, and of the rest of
THE PIPELINE BETWEEN MANUFACTURING AND CONSUMPTION.

17

Terrestrial Resources BusinessSupply Chain

Supply Chain

AMITA's Terrestrial Resources Business turns industrial and consumer
waste into resources, and, in doing so, boosts the use of recycled resources.
Private dining
Company cafeterias

Farmers
Paddies &ﬁelds

Concrete makers
Ferrous metal
goods / Nonferrous
metal goods

Buildings
Finished products
Retailers
Manufacturers /User companies

Eco-solutions
Recycling solutions
Employee training
Risk consulting
Business process improvement

Manufacturers of ferrous
metals / nonferrous metals/ cement(Users of alternative raw
materials and fuels)

Academic research
institutions

Recycled products
Reused products

Otheralternative
raw materials

Recycling R&D
partnerships

The government
Issues permits for
waste disposal
businesses

Consumers

Manufacturers(Waste generators)

Municipalities(Waste generators)

Productwaste

Raw cement materials
MetalsElectricity / Gas / Energy
resources
Fertilizer

Waste

Recycling companies
AMITA acts as a hub connecting various
partner companies with advanced
recycling know-how and technology

Waste collection &transportation companies
Transport waste by land and sea

Landﬁlls
Mines / Coalﬁelds / Oilﬁelds

13.6 years of capacity remaining

Reduce natural resources depletion throughrecycling

Extend service life of landﬁlls throughincreased recycling rate18

(as of 2012)

What is the value ofconsistency and stability?

What AMITA has to offer

Technology
Finding the optimal means toturn unharnessed, unstablewaste streams into consistent
resource streams.
Compared to virgin material, wastematerial offers less stability in terms of
its supply quantities, properties, quality
and production frequency. At AMITA's
resource recycling plants, a wide range ofmaterials is shipped in every day. AMITA,
however, is able to turn 100% of most ofthese waste materials into raw materials
with stabilized quality and quantity. The
result is terrestrial resources that can
substitute for extractive resources, andthat can be supplied to user companies.

Terrestrial Resources Business

Values

The stream of materials or fuelfor manufacturing processes
must provide consistent quality
and stable supply. For inherently
inconsistent or unstable waste
flows to become useful, theymust meet these requirements.

Knowledge

Various kinds of waste withunstable or unreliable
quantity/properties/frequency

100% recycling without burning,water or chemicals

Stable supply of productswith consistent quality
Metal materials / SlurMix(R) / Cement
materials (calorific) / Cement materials(non-caloriﬁc) / Liquid fertilizer / Specialty
steel materials / Electricity

Using our expertise and experience
Product
across multiple environmental ﬁelds,
Employee collection andreuse
AMITA provides optimal solutions to training /Logistics
Management
optimization
systemmeet client needs.
There is no single universal answer to thespectrum of environmental issues companies
face, of which waste recycling is one.
Problems that appear superficially similar
may have different solutions according to thesize, beliefs, budget and other attributes ofa client company. That is why all the speciﬁcfactors on the right must be evaluated, andthe best overall answer chosen. AMITA
uses its broad expertise and long years ofexperience in environmental management toanalyze needs from many angles and propose
optimal solutions that lower risks, costs andenvironmental impacts all at the same time.

Reengineering ofProcess improvement/ IT implementation Environmental Environmental manufacturing /storage processes
costs
risks

Compliance /Conﬁdentiality

Environmental
impacts

Identiﬁcation /selection of disposal
providers

Awareness raising Assessment of risks/ Communications (e.g. environmental,
safety, brand risk)

Optimal eco-solutions based oncomprehensive multifactor assessment

AMITA possesses a unique set of technology and knowledge to provide
companies with comprehensive eco-solutions.
To maximize the value we offer, we have established six pillars of business strategy, shown on the next page.
19

Business
Strategy

The six pillars of
AMITA's Terrestrial
Resources strategy

Hardware & Technology◆−Link with external partners−Expand range of waste materials that can berecycled◆

Partnering Capabilities◆

Build relationships withclients

Develop and upgrade recycling
technologies

Acquire recycling facilities−Take advantage of general-purpose facilities−Improve utilization to speed return on
investment◆

Information Resources Business (p.28)

Generate and use renewable energy−Develop renewable energy technologies andﬁnd users for them

−Assess client needs through a mix of
personalized and automated approaches−Rapid turnaround on inquiries, estimatesand other client requests−Increase client retention throughobservant, considerate and attentive
attitude from all employees◆

Environmental
Information Platform

Build relations with partnercompanies

Marketing database
Waste generation
stats/analysis
database

Logistics database

Recycling partners
database

Quotes and orders
database
Waste generators
database

ProvideComprehensive
Environmental
Solutions−Support service improvements bypartner companies, e.g. by offeringsafety instruction to transportcompanies

Basing and Logistics◆−Low-cost, efﬁcient collection andtransportation

Solution Delivery◆◆

International Market Expansion

Issue recognition and analysis capability−Deploy tools to share, collect and analyze client
feedback

Gather and exploit domain knowledge/
industry information◆◆

Offer products ﬁne-tuned to client needs◆◆

Energize environmental business market

20

Provide input and proposals togovernment

Build international resource
cycle networks−Link with governments, municipalities,
and domestic Japanese companies−Marketing, market research, product development, etc.

◆

Speed up market research−Take part in public-private partnershipstudies−Reduce risks, costs and hassles◆◆

Implement modal shift◆

Build out roster of partnercompanies◆

Find new users for recycled
products−Strategic use of marine transportation

Expand overseas presence−South Korea, Taiwan, China, Russia,
Malaysia, Thailand, etc.

−Environmental laws, regulations, and accident casestudies◆

Expand logistics bases

Expand services offered−Establish nationwide logistics network−Expand clients of alternative fuelsCase.

01

AMITA's solutions for complex client challenges

Raised compliance for a group of more than 40 companies
by assisting in reengineering of waste management systems

Case.

02

Assisted client in achieving 100% recycling of used
wetsuits and surfboards that otherwise could only
be disposed of through incineration. Rolled out thisrecycling plan to shops nationwide. Helped the client
promote the 5 Rs.

Client problem

Client problem

Saibugas Co., Ltd. manufactures, supplies and sells municipal gas, primarily in Fukuoka,
Kumamoto and Nagasaki Prefectures. Previously each office and division of the company
handled waste management in an uncoordinated, ad-hoc fashion. But this exposed thecompany to a growing waste management risks. Operating in the public utility sector,
Saibugas Co. is held to a high standard of operational assurance. To achieve that, they neededto dramatically strengthen their waste management system. They needed to establish uniform
group-wide operating rules and build a uniﬁed information management system, as well as
implement a PDCA cycle.

“Build the best product, cause no unnecessary harm, use business to inspire and implement
solutions to the environmental crisis.” That is the mission statement of major outdoor
equipment company Patagonia. Patagonia pursues the 5 Rs (reduce, repair, reuse, recycle,
reimagine), reflecting its philosophy to use only what can be returned to nature. However,they were not able to ﬁnd a way to recycle used wetsuits and surfboards past the point of
repair, since these products incorporate multiple materials.

AMITA's solution: proposal and implementation

AMITA's solution: proposal and implementation

The AMITA Group carried out a three-year consulting plan related to internal capacity
building at Saibugas, in order to empower their waste management skills. The plan had threecomponents: situational assessment, personnel development and system development.
In the ﬁrst year AMITA provided risk assessment services, with experts from The AMITAGroup dispatched to Saibugas sites to identify compliance issues. At the same time, Saibugas
personnel were instilled with a knowledge base through training activities. In the second
year, a custom waste management manual speciﬁc to Saibugas 's issues was created, withthe purpose of bringing consistency to management methods and improving workflow. In thethird year, seminars were held combining knowledge base development and implementationof PDCA cycle practices across Saibugas.
From risk identiﬁcation to policy formulation and reengineering of workflow, to increasing
the skill of personnel through seminars, The AMITA Group provided comprehensive services
that empowered Saibugas to upgrade its waste management operations.

AMITA assessed the materials embodied in these products—urethane, ﬁberglass, metal,
wood, etc.—and proposed that they be pulverized, the metal extracted to be recycled in
the metals business, and the rest used in AMITA's unique “blending” process to be 100%
recycled into cement raw material. The pulverization process also offered the benefit ofprotecting the brand from the risk of diversion or dumping of goods destined for disposal.
In June 2011, the Patagonia Chiba Surf Shop was the ﬁrst to begin this recycling program.
As of 2013, five AMITA resource
recycling plants nationwide, alongwith our logistics network, areserving Patagonia stores acrossJapan, including surf shops inTokyo, Fukuoka, Osaka, Kobe, andKyoto. AMITA's ability to offer clients
consistent recycling services all overJapan is one of its major strengths.

[Designing a governance structure consulting plan]
Year One

Expert risk assessment to identify existing problems and implementationof seminars

Year Two

Plan new workflow, establish speciﬁc policies

Year Three

Implement company-wide PDCA cycle for operational improvement

Terrestrial Resources Business

Case Studies&
Solutions

Presentation about recycling program in a Patagonia store

21

The “by-products andresidues” concept

Scope&
Services

AMITA regards waste materials as
terrestrial resources, and internally
we refer to them as “by-products
and residues.”However, in thisdocument we generally use theterm “waste,” which is shorter andperhaps easier to grasp.

Terrestrial Resources Business:
Scope and Services

Waste recycling services
Since AMITA was founded in 1977, our main business has been the 100% recycling ofwaste(by-products and residues). Through recycling in our own plants and recycling bypartner companies, we have provided alternatives to natural resources extracted fromunderground in the form of terrestrial resources recovered aboveground.
Our R&D efforts pursue methods of recycling waste that would otherwise have to beincinerated or buried into usable resources.

Residues of manufacturing
processes

The AMITA Group's Recycling Network
Resource recycling plants
Partner companies

Waste generated by orcollected by municipalities

Promotional andscrapped merchandise

Generated waste

Recycled in
ﬁve plants
Metals (nickel, copper), cement
raw material (caloriﬁc), liquid
fertilizer, electricity, etc.

Recycling incollaboration withpartner companies
Metals (steel, silver, lead, etc.),
feedstuff, fertilizer stock

Value assessment

Market identiﬁcation
service
Metals (steel, lead, etc.),
fertilizer stock, etc.

AMITA's 5 resource recycling plants
AMITA has four facilities spaced across Japan's industrial heartland along the Paciﬁccoast—in Ibaraki, Kawasaki, Himeji, and Kitakyushu—as well as a biogas power
generation plant in Kyotango that handles organic waste material. These five plants
handle the recycling needs of our clients.

Cyclical resource generation center, Terrestrial Resources partner network

Supply and sales of recycled resources (alternative fuels, etc.) to user companies

22

Through The AMITA Group's network of more than 300 partner companies nationwide,
including affiliated recycling plants that employ AMITA's processing technology andknowhow, all kinds of material are able to be recycled.

The optimal solution for the various environmental problems
faced by companies and municipalities depends on budget,
scale, personnel, and organizational structure. Over more than
35 years, AMITA has been offering comprehensive, multi-faceted
environmental solutions that are tailored to the speciﬁc needs ofclients.

Terrestrial Resources Business

Environmental businessconsulting services

International business
Since the 1980s, AMITA has been operating outside Japan in
the recycling business. It has focused on the East Asian market,
developing effective international flows of resources primarily in
Taiwan, South Korea, China and Russia.

Environmental risk management/consulting

Making the best proposals
for reducing environmental
costs, risks and impacts

Our experts do on-site risk assessments to identify
risk factors and propose improvements. They also
consult on the engineering of waste management
systems, enabling clients to develop more efficient
workflows and improve operational performance.
(Countries where AMITA has operated)

Marketing &PR departments
Sales &
planning
departments

Waste management outsourcing

Environmental/
CSR departments

Companies &municipalities
Manufacturing& procurement
departments

For clients looking to reduce the costs of employee
training, solve labour shortages, and achieve
breakthroughs in cost control, AMITA offers
outsourcing services that take over specialized tasks
such as administration and contractor searches.

Building international resource circulation routes
Taking advantage of the diversity of industry across various
countries, we match up sources of waste from industrial
processes with recipients who can put them to use. This rectiﬁes
imbalances in resource availability among countries andpromotes recycling.

Training support (seminars, education, training)

Research and outsourcing for international resource circulation

AMITA offers clients who are seeking to strengthen
their environmental management practices highquality seminars and on-demand training deliveredby experienced instructors, as well as e-learning andcorporate training services.

AMITA offers services to undertake search and identificationof suitable recipient countries and possible recycling paths for
waste that is difﬁcult to recycle in-country. AMITA can also handle
complex tasks involved in import/export on behalf of a company.

Environmental/CSR marketing support services
AMITA offers services to support eco-value creation throughenvironmental market research and sales promotions for newly-launchedeco-businesses and newly-developed environmental services, as well as
in-house environmental/CSR activities.

Training/seminars
Communications & marketing support
Information Resources Business p.34

23

Performance
2013

Terrestrial Resources Business Accomplishments FY2013

Waste recycling services
At AMITA's own ﬁve plants and through partner companies, we recycled more than
2,600 different types of by-products and residues into resources. These resources
included caloriﬁc cement raw materials, metals, liquid fertilizer, and electric power,
which all contributed to a cyclical system of resource and energy usage.

Recycled at AMITA plants
Change in caloriﬁc cement raw materials output(t)

150,000

Residues ofmanufacturing processes

124,440

120,000

Waste generated by orcollected by municipalities

90,000131,298 136,514

146,341

136,632 134,380

134,380

88,98860,000

0

Value assessmentof valuable
materials

Generated waste

FY200708

09

Metal (Ni)4,500Market identiﬁcation
service

Recycling by partnercompanies in FY2013

Types ofby-products andresidues handled

Types ofby-products andresidues handled

24

555
368

13

4,398

Metal (Ni)

2,675

2,000
1,500
1,000

1,204 1,226

1,825
1,449

2,758

4,398

3,072

2,293
1,349

1,284

1,497

679

FY2007

08

09

10

11

12

t

Metal (Cu)

1,403

500

Recycling by AMITA's ﬁve
plants in FY2013

Business
partner sites
served12

Metal (Cu)

3,500

0

2,138
882

11

4,000

2,500

Recycling incollaboration withpartner companies

10

Change in metal raw materials output
(t)

3,000

Business
partner sites
servedt

30,000

Promotional andscrapped merchandise

Recycling in ﬁve
plantsCaloriﬁc cement
raw materials

679

t

13

Liquid fertilizer

Between AMITA's own plants and partnercompanies, more than 600,000 tons ofwaste is currently being recycled annually.
★If you're wondering how much virgin raw material we
saved by substituting recycled material, please see p.55.

3,883

t

Power generated

426,382

kWhTerrestrial Resources Business

Environmental businessconsulting services

Overseas business

Environmental risk management/consulting

36

Consulting
engagements withcompanies

Services provided:

Making the best proposals
for reducing environmental
costs, risks and impacts

・Creation of waste management guidelines andprocedures
・Risk assessments
・Advisory services on waste disposal methods▲AMITA's engagement in Yantai City, China

Waste management outsourcing
Marketing &PR departments
Sales &
planning
departments

Environmental/
CSR departments

Companies &municipalities
Manufacturing& procurement
departments

5

Outsourcing
engagements withcompanies

Services provided:・Compilation of information regarding waste
・Composition of reports
・Document management
・Patent application administration, etc.

Training support(seminars, education, training)
Seminars held:
Seminarattendees:

60
1,541

Example seminars:
・Waste management methods and practices
seminar・Biodiversity seminar・Environmental law seminar

Total volume:

108,500

Countries:
Taiwan, Russia, South Korea,
and moretMaterials handled:
Raw cement materials, zincmaterials, etc.

Provide comprehensive
environmental solution services
The environmental issues faced by companies are growing
ever more complex and diverse. The AMITA Group supplies
integrated solution services tailored to these needs. Belowis the number of customer sites served with several of
AMITA's spectrum of recycling services, environmental risk
management, waste management systems, environmental
certiﬁcation and other services.
Bundled service
engagements with66

companies*All numbers are actual ﬁgures for 2013
*See p.35 for information regarding our plans for and implementation of Emvironmental/CSR Marketing Support Services.

25

Business
Highlights
2013

Business Highlights

Highlight

01

Study on reduction of greenhouse gas
emissions from cement recycling inIndonesia completed

Highlight

02

Achieved recycling of ﬂuorine-containing waste that poses
disposal problems
PTFE and other fluoropolymers, toothpaste, and other fluorine-

In cooperation withcontaining wastes have a significant potential to damage cement

the Institute for Global

kilns, making it difficult to recycle them as calorific cement raw

Environmental Strategies

materials. Since other recycling methods are also difﬁcult, fluorine-(IGES), AMITA conductedcontaining waste has been a prominent problematic waste material.

a feasibility study on

AMITA has succeeded in developing a recycling path for fluorine-

reducing greenhouse

containing waste that, instead of trying to remove the fluorine, blends

gas emissions as part of

it to create a raw material that can be used by chemical makers.

a technical assistance

AMITA continues to carry out research and development on recycling

project to design a “Low-Carbon City Plan” for Surabaya,

of materials that currently pose challenges for sustainable disposal.

Indonesia.
Specifically, the study investigated the use of Japanese
recycling technologies in the waste disposal sector, enablingfor example the intake of waste materials by cement makers,
marketability of waste products and the construction ofHighlight

03

Blend

Not suitable forcaloriﬁc cement
raw materials orother recycling
processes

Exploit ﬂuorine
content to recycle
as raw material
for chemical
makersreduction in CO2 emission per unit of energy would be achieved

AICHI KAIUN CO., LTD. recycling plant goes into operation
with AMITA knowhow to increase recycling capability in Japan's
Chubu region

through the introduction of waste recycling, and what theIn April 2013, AICHI KAIUN CO., LTD. started up a recycling plantintermediate processing plants. The study calculated how
much energy consumption would be saved and how great aenvironmental impacts would be.
AMITA continues to deploy Japanese technology in the
rapidly growing economies of the Asia-Pacific region toenhance their opportunities to become low-carbon societies.

incorporating AMITA recycling technologies and expertise. The
plant uses proprietary technologies for handling a wide range of
waste types in small batches, container waste, and high-chlorinecontent waste. This establishes infrastructure to increase recycling
capability in Japan's manufacturing-intensive Chubu region.

26

Fluorine-containing waste (sludge, etc.)

In FY2014: Strengthening
sales and productdevelopment

Hardware & Technology◆

Improve quality, safety and efﬁciency

Environmental
Information Platform−Automate plants (hands-off production system)−Upgrade quality management systems◆

Develop alternative fuels

Information Resources Business (p.39)−Develop/produce/market new valuable materials◆

Partnering Capabilities◆

Produce and use renewable energy−Act as representative for sales andpurchases of green electric power

Strengthen non-counter selling−Improve contact centre functions
strengthen web sales, etc.
−Raise customer satisfaction throughrobust customer support system noncounter selling−Raise efﬁciency by integrating salesofﬁces◆Marketing database
Waste generation
stats/analysis
database

Logistics database

Recycling partners
database

Quotes and orders
database
Waste generators
database

ProvideComprehensive
Environmental
Solutions

Strengthen links with partners−Joint training and product development
initiatives with partners

Basing and Logistics◆

Solution Delivery◆

Turn customer problem-solving
into a productInternational Market Expansion◆−Launch customer process visibility services−Launch waste management outsourcing
services−Develop CSR-related services◆

Nurture expert personnel−Boost sales personnel's knowledgeof social issues, develop sustainability
coordinators for corporate and municipal
markets, train contact centre operators

Terrestrial Resources BusinessBusiness
Plan
2014

Build out overseas bases−Prepare to build and operate
recycling plants in Taiwan−Explore recycling business
opportunities in Malaysia◆

Build out bases−Conduct studies on setting up newbases and markets in Japan's Joetsu
and Tohoku regions◆◆

Identify users for planned
products
Increase efﬁciency and cut
costs in logistics−Explore contracting out logisticsrelated operations

Promoting an international
cyclical system of resource usage−Build network and gather informationby actively contributing to publicprivate partnership studies

27

Information Resources Business
When people shift their values and their viewpoints,
they uncover new challenges to be solved.
We are restructuring existing businesses to unlock value
and use resources effectively.

28

Turning information into value

Information Resources BusinessInformation
Resource
Business

Championing the idea that nothing is truly worthless”.
Reorganizing information and applying new viewpoints to generate value.
Collecting, accumulating and sharing information to create new value.
The AMITA Group is creating substantial value
throughthecollection

andcompilationof

information.
Essentially, information is any meaningful content
conveyed between people through a medium.
Information is affected by the perceptions of those
who send and those who receive it. For example,
imagine a large quantity of eggshells. One person
might consider them trash, something to be
thrown away: “Look at all this garbage. Just abunch of eggshells.” But another person might say,
“Eggshells are 95% calcium carbonate. This isn't
garbage, it's a valuable raw material with industrial
applications.” The information is transformed
from “eggshells are trash” to “eggshells are aresource”.

diversity of knowledge and expertise.
In the 1980s, The AMITA Group began to focus
on the value of information in turning waste

F

indingnew
viewpoints

A different viewof eggshells

products into recycled resources, starting with

As a recyclable

Eggshells

Contains 95%
calcium carbonate,a neglected resource.

Dirty, smelly
garbage.

Same quality as natural limestone.
Can be alternative resource to limestone.

Throw it away!

Eliminate odour and filthby heat treating.
Grind into powder.

the eggshell example (in fact the actual originof today's Terrestrial Resources Business) justdescribed. Drawing on this experience, in the 1990s
we began publishing an environmental information
magazine, which provided a venue for companies
producing waste and companies needing resourcesangeThis ch hanges
point c
w
ie
v
in
ture!
ole pic
the whAs wasteto publicize that information and make matches.
Later, we launched our environmental certification
business, which makes information on traceability

D

eeper
knowledge

Where does a wooden deskcome from?

available to consumers so that they can makeenvironmentally conscious choices about theway they consume goods. Since 2000, we have

Furniture maker

Are workers
being paid a fair wage?

sought to further harness environment-related

The perception that something is worthless is

information by establishing an eco-marketing

what makes it worthless, and the perception

office and developing a cloud-based environmental

that something has value is what makes it so.

operations support system. This section will cover

Information generates value when it is shared,

these aspects of The AMITA Group's Information

recognized, managed, processed and evaluated by

Resources Business.

Ex. Working conditions

SawmillEx. Illegal logging

Logging of forest

By objectively observing
the production process,and sharing that
information with
consumers, we support
responsible forestry.

Does the wood come fromillegal logging practices
that destroy ecosystems?

multiple people and/or companies that possess a
29

AMITA's
VisionAMITA's Vision for our Information Resources Business
DATA

To build an information platform, based on society's wisdom andcapabilities, that creates new value through optimal managing andsharing of environmental information.”
DATA

Information platform

In Japan more than 1,000 companies issue CSR reports and disclose

DATA

DATA

Research
Analysisenvironmental information, including about gas emissions, waste,water use and the chemicals they generate. National, prefectural

Cooperation
Ideas

DATA

DATA

and municipal governments also publish all kinds of statistical data

DATA

DATA

on the environment. But is this huge amount of information actually
Connections
Ideas

put to good use?

Sharing

DATA

Many companies, even large ones, have been slow to deploy IT
systems for their waste management functions, hindering themfrom having a unified view of the situation at each of their facilities.
Many instances of wasted resources and improper disposal slip
through the cracks. Furthermore, few companies share withother companies or experts information about the waste they are
generating, in order to develop solutions. Of the companies that doCommunications
External communications▼ Solicit outside opinions▼ Develop joint environmental
initiatives with outside partners
External communications

issue CSR reports, many complain that few people read them.
To put information to work in an effective way, data must be collectedInternal sharing

and compiled accurately, shared with the appropriate people and▼ Unified management for greater efficiency▼ Plan and deploy solutions across facilities
and business units▼ Embrace environmental viewpoint on
business, e.g. develop "green" products

organizations, and acted on through concrete measures which
produce value. The AMITA Group aims to build an information
platform for environmental operations which facilitates optimal
management and sharing of all environmental information (not justwaste management), so that the wisdom and expertise of many
stakeholders can be brought to bear on creating solutions that
contribute to a sustainable society.

30

Collect, manage and compile
environmental informationfrom corporations,municipalities, etc.
▼ Situational awareness andproblem recognition▼ PDCA for solutions

The four pillarsof AMITA's
Information
Resources BusinessDistribution & collection of
information◆ Augment line-up ofcommunication channels◆

Website◆The most important aspect of information-based businesses
is information quality, which includes factors such as how
reliable and up-to-date a piece of information is. We workwith public entities and outside experts to develop personnel
with the domain expertise and communications skills
required to deliver our services. Within The AMITA Group,
along with front-line business units, the legal, PR andmarketing departments collect and share environmental
information in their areas of expertise. (See Environmental/
CSR Marketing Support Services, p.34-35; Environmental
Certification Business, p.36-37.)

Emailnewsletter

Nurture specialized
knowledge and expertise−Eco-labelling auditors−Experts in environmental regulation−Eco-marketers◆

Knowledge stockpile−Collect, analyse and store environmental
technology information−Collect and store information on
legal changes

Fax DM

Boost reach and response ofchannels

Environmental
information platform

Case information◆

Contact
centre−Higher quality content, leverage external
partners−Plan and execute media-specificstrategies to raise response

Accidents,
incidents inenvironmental ops

Developing environmental
professionals

Seminars&
eventsSince the 1990s, The AMITA Group has been developing
multiple channels for distributing environmental
information. Now we are implementing market surveys
and promotional campaigns across these channels forother companies who want to communicate about theirenvironmental initiatives, or launch an eco-business of
their own. (See Environmental/CSR Marketing Support
Services, p.34-35.)

The environmental operations sector has been slow
to embrace IT. We develop and provide specialized
cloud-based services for environmental operations
management that enable optimized information
management and real-time sharing among involved
parties. Our combination of IT and human services,
provided by domain experts, offers clients lowered costs
and lowered risks. (See digital waste management
system, p.32-33.)

Environmental law
information

Marketing database

IT system development

Waste generation facts
and analysis database

Logistics
database

Recycling partner
database

Quotes and orders
database◆

Business
records
Environmental
audit records

Pursue IT systems
development−Develop environmental operations
support systems−Effective updating of system andlinking with partner companies−Promote reciprocal communication
with system users

Waste generators
database
Eco-tech
information

Information Resources BusinessBusiness
Strategy

Creating communication
channels◆

IT as a driver of sales−Deploy smartphones & other mobile
devices in sales−Share and leverage sales
information through CRM
systems and internal SNS

We are leveraging our communications channels, knowledge and systems, as well as the environmental operations databases derived fromthem, to provide environmental management systems, environmental communications support, and environmental certification services.
This information is also leveraged by the Terrestrial Resources Business to support the quality of services it provides.
31

WasteManagement
Application

Line of business: Digital waste management system
This service provides efficient internet-based execution of the spectrum of tasks associated with
waste management, reducing management costs while ensuring greater compliance.

AMITA provides a service that unifies managementof all information in the cloud, solving the cost

Management
costs

Compliancepaperwork involved in waste management, while
cutting down on compliance problems like illegal

Illegaldumping

Reducing management costs and substantiallygoals, can be accomplished simultaneously throughour service, which enhances corporate environmental
Violations

value.

Management oflarge document
volumes

AMITA's digital waste
management system is the solution!

All necessary information is collected andmanaged on the cloud32

dumping and paperwork errors and omissions.
improving compliance, often thought to be contradictory

Information
management
across multiple
facilities

Operational
overheadchallenges of generating the massive amount ofThoroughcompliance

Reducedmanagement
costs

Digital waste management systemkills two birds with one stone!

Digital waste management system: achievements and case study

Market penetration

Case study
Improved compliance through adoption of digitalwaste management system (IHI Corporation)

Growth every year in the four years
since launch!

Client problem
Whenever knowledgeable employees transferred or retired, waste

Number of businesses and the operation sites

management operations were negatively impacted. In some locations,
214

200

The AMITA Group's solution
400

77
50

0

improper handling of contracts exposed the company to increased

600

119

100

800

environmental risk.

163

150

Information Resources Business

Performance

The digital waste management system was offered to achieve both improved
compliance at facilities and reduced administrative work at headquarters.

45

200

135

428

543

651

775

2009

2010

2011

2012

2013

By running complex tasks like contracts and billing through the digital waste
management system, improved compliance at all locations was achieved.

0

The AMITA Group's information helped IHI to build a more robust
management system, such as using risk assessment information about

Businesses

Number of operation sites

the contractors doing waste disposal to avoid risks associated with illegal
dumping incidents.

The number of businesses and the operation sites using the service has

Along with system delivery, The AMITA Group's Terrestrial Resources

grown continuously over the four years since launch. Customers desiring

Business provided synergistic risk assessment and other consulting services

to strengthen compliance and move to e-billing have expressed highto help IHI build a waste management system that leads their sector.

satisfaction. Pharmaceutical companies and food and beverage companies
with multiple operation sites in Japan have been especially pleased with thistool's ability to reduce environmental risks.

33

CSR
SupportServices

Environmental/CSR Marketing Support Services: achievements and case study
Assisting customers in developing eco-businesses and environmental services,and creating a more eco-conscious society.
Many companies that are launching eco-businesses or developing

has influential media outlets, and the capability to do market surveys

environmental services need lists of contacts, marketing media in theand telemarketing. This experience and track record enable us to tailor

environmental/CSR field, and an appropriate strategy.

our services to each company we work with.

Over decades in the business, The AMITA Group has put together ahuge proprietary database covering the environmental/CSR field. It alsoMedia

By promoting environmental/CSR activities, a company can increase
the “environmental value” of society as a whole.

Expertise &know-how

Databases

Website25,800 visitors/month(Environmental/CSR professionals)

Email newsletter subscribers
Approx.

11,500

Fax update subscribers
Approx.

6,500

List of environmental/CSR professionals

29,000 entries

Telemarketing

Waste products value analytics

19,000 calls (2010-2013, cumulative)

Waste products generation processes

Seminars
Seminars held: 600+ (cumulative)

12,600 entries
12,000 entries

Attendees: 8,900+ (cumulative)

List of waste generating facilities

61,000 entries

Use marketing channels and know-how to help companies solve environmental issues
Market development
34

Promotion support

Sales representation

Environmental/CSR training

Capability & Examples of Services

Case study

Reach and influence of communications

Achieving expansion of sales channels through ecomarketing support services (KIMITSU SYSTEM Co., Ltd.)

Email newsletter recipients
Environmental/
CSR professionals
at listed companies
Approx.

44

Environmental/
CSR professionals
by job title
Approx.

%Information Resources Business

Capability
&
Cases

20

Client problem%

The client had technology that differentiates it from competitors, but lacked
manpower for sales activities. It was only able to market to a limited set ofcompanies, and mainly filled orders from companies that initiatied enquiries.

Recycling bulletins/Email newsletters sent out

The AMITA Group's solution

12,00010,000KIMITSU SYSTEM Co., Ltd. is a company that specializes in detecting and

8,000

remediating soil pollution. In order to actively market to potential customers

6,000that it had not been able to reach before, Kimitsu called on The AMITA

4,000

Group's eco-marketing support services.

2,000

A feature devoted to Kimitsu was placed both in AMITA's email newsletter0(which reaches more than 10,000 subscribers, primarily people responsible
2004

2006

2008

2010

2012

Recycling bulletins circulation
Email newsletter circulation

The number of corporate environmental/CSR professionals reacheddirectly by our email newsletter and Recycling bulletin directly is growing
year by year, becoming one of the most influential media channels in theenvironmental/CSR field. In conjunction with that, The AMITA Group has a
track record of providing support to awareness-building campaigns for soil
pollution remediation, licensing examinations and more.

for their company's environmental operations) and on the Daily AMITA
website, which attracts 120,000 pageviews per month. Kimitsu's CEO held afree seminar, at which he explained his business to representatives of morethan 60 large companies. This led to several sales negotiations, successfully
opening new contacts for the company among environmental operations
professionals. Despite Kimitsu's limited personnel resources, they wereable to efficiently raise awareness of their company and increase their sales
reach.

35

Environmental
Certification

Environmental Certification Business: achievements and case study
We enable companies to demonstrate the traceability of their products,
so they can offer consumers fresh choices and values.
We provide assessments for international eco-labelling that certify products as having been produced and processed in a sustainable, responsible way, without illegal logging or overfishing.

Forestry Certification Business

FSC Certification

Forest Stewardship Council® (FSC) certification is a forestry products
certification system. It issues FSC Forest Management (FM) certification toforests that are managed in an environmentally, socially and economically
responsible way, and FSC Chain of Custody (COC) certification to lumber
and paper products that come from certified forests, and are processed anddistributed in ways that meet certain specifications. The AMITA Institute ofEnvironmental Certification Co., Ltd. (AIEC) conducts assessments for both FSC
FM and COC certification services.

Fishery Certification Business

BudgetPrice

DesignPreferences

Processing

Distribution
Taste

Use

Distribution

Processing oftimberCertified forests

Fisheries Certification Business for Aquaculture

FSC Forest Management (FM) Certification
A system for certifying that a forest is managed in an environmentally, sociallyand economically responsible way, in accordance with FSC's "10 Principles."Consumers

A system for certifying that wood and paper products are made from FSC
certified, managed timber* or recycled material that is identified or kept
segregated from non-certified material.
* Timber that meets five criteria, including that it is not illegally logged, and that it is notlogged from forest with high conservation value.

36

Distribution

Processing

Choosing certified productsProtecting the environment,
biodiversity, and local
communities and economies

ASC Certification

ASC Certification consists of ASC Aquaculture Certification, which certifies whether
fish farms' environmental and social aspects comply with standards of sustainable
management—basically, MSC certification applied to aquaculture—and ASC Chainof Custody (COC) Certification, which certifies traceability in the stages of processing
and distribution. The AMITA Institute of Environmental Certification Co., Ltd. (AIEC)
conducts assessments for ASC COC certification.

For forest owners and managers

FSC COC (Chain of Custody) Certification

Sustainable andwell-managed
fishery

MSC COC Certification covers:
1. Distributors involved in the marine product distribution stage
2. Processors involved in production of processed marine products
3. Volume retailers that process (open cases of and repackage) marine
products in the distribution stage
4. Restaurants that serve marine products

A new basis forchoice: Is it certified?

FSC certified products

For manufacturers of wood and wood-derived products andmerchants who sell these products

MSC Certification

MSC certification comes in two parts. MSC Fishery Certification certifies whether
fisheries (fishery managers) are in conformity with the MSC's "Principles andCriteria for Sustainable Fishing"—this involves a comprehensive evaluation
covering resource, environmental and social aspects. MSC Chain of Custody (COC)
Certification certifies a fishery's marine products through the stages of processing
and distribution. The AMITA Institute of Environmental Certification Co., Ltd. (AIEC)
conducts assessments for MSC COC certification.

Sustainable andwell-managed
fish farm

ASC COC Certifications covers:
1. Distributors involved in the farmed product distribution stage
2. Processors involved in production of processed farmed products
3. Volume retailers that process (open cases of and repackage) farmed
products in the distribution stage
4. Restaurants that serve farmed products

FSC®N001887 MSC 0128
AIEC partners with FSC certiﬁcation bodies Soil Association Woodmark and SCS Global Services to conduct FSC audits/assessments and serves as a certiﬁcation body for MSC COC and ASC COC certiﬁcation audits/assessments.

Environmental Certification Assessment

Forestry Certification Business

Fishery certification Business

Area of FSC FM certified forest
I n 1 9 9 9 we u n d e r to o k J a p a n ' s f i rst
assessment for FSC FM Certification, andhave been involved in 24 certifications in all
since then. We have certified approximately
280,000 hectares of forest, constituting 71%
of Japan's FSC certified forest. We continue
to promote the trend toward sustainable
forest management.

Information Resources Business

Performance

MSC COC certified businesses
Forest area under FSC certification(As of Dec. 2013)

Other

AIEC

71%

AIEC Certified
Total Certified in Japan

278,025 ha
392,990 ha

Since becoming Japan's first body offering
MSC certification, we have issued 35
certifications, 61% of the total in Japan. In
2013, the Hokkaido Federation of Fisheries
Cooperative Associations scallop fisheryobtained MSC certification. Since this fisheryaccounts for about 90% of Japan's scallop
fishery, it is likely that more processors
and distributors will now seek certification
also. The AMITA Group will continue towork toward making fisheries sustainablethrough certification assessments.

Certified businesses(Share of total Japan-wide certifications issued by
AIEC as of 2013)

Other

AIEC

61%

AIEC
Total in Japan

35 businesses
57 businesses

FSC COC Certifications
We have issued 259 COC certifications,constituting 23% of the total number inJapan. We perform assessments mainlyin the paper, printing and forest products
sectors. We are now planning to expand ourservice into Southeast Asia (where thereis rapid economic growth) in conjunction
with our Terrestrial Resources Businessservices. Our goal is to become active in theworld of sustainable forestry beyond Japan.

Certified businesses(As of Dec. 2013)

Other

AIEC
Total in Japan

23%

AIEC

259 businesses
1,112 businesses

ASC COC certifications
In September 2012, The AMITA Group was authorized as the first ASC COC certifying
body in Asia. Aquaculture is a fast-growing industry, and is expected to account for
more than 40% of the world's marine products by the year 2020. And currently, 87% ofaquaculture production comes from Asia.
We are developing this service in order to reduce the negative environmental impactsof aquaculture, e.g. the destruction of coastal ecosystems in order to build fish farms;
environmental pollution caused by fish farm drainage and waste; pathogens carriedby fish and other creatures when they are introduced to fish farms; and damage tobiodiversity.

37

The value offorestry certification

ValuesForestry

The diagram below shows the main features of the forest
products supply chain.
How does forestry certification add value to each part ofToru Hayami
Representative
Hayami Forest

the chain? We asked four stakeholders.
Papermaking

Woodchipping

Forestry

Mill
Papermaking

Toru Katsura
CSR Advisor to the CEO
Mitsubishi Paper Mills
LimitedPrinting

Firewood &charcoalmakingCommercial builders &homebuilders

FurnituremakersWoodenproducts

Masayuki Miyachi
Compliance
Implementation Section in
General Affairs Department
Nikkei Printing Inc.

Printing user

Users of printed products

Users
Building
users
Officeshomes
38

Printing

Yuko Naruse
Manager, Communications
Department, Marketing
Division
THE BODY SHOP Japan

We want to make a strong appeal to designers
about the merits and value of choosing certified lumber.
In the latter half of the 1990s, the forestry industry saw a strong global trend toward
embracing forestry certification systems, and, in Japan, WWF Japan worked to promote
adoption of certification in the downstream supply chain. Still, few businesses chose to becertified. Fearing that Japan would be left behind by the rest of the world, in 2000 wemanaged to carry out Japan's first FSC FM certification. Thanks to coverage in the media,
there were inquiries from other industries with which Hayami had not previously enjoyedstrong connections. It is no exaggeration to say that forestry certification opened people'seyes to forestry as an environmental sector. Now we need to raise awareness of FSC
further. We want to make a strong appeal to designers who select lumber about theadvantages and value of choosing certified products.

We don't just want to increase adoption of FSC products —wewant to incorporate the FSC philosophy into our business.
In 1998 we were looking around for wood pulp that was environmentally friendly, and we
discovered FSC COC certification. We asked AMITA (now AIEC) because they had the mostknowledgeable and trustworthy people working on assessments, and we became the first
paper company in Japan to achieve certification. In 2008, there was a problem with paper
certified by a different certification body that forced many companies to cease production.
We, however, were able to continue production uninterrupted, because AIEC had done all
its audits properly, and then later did careful follow-up on the procurement. We want tocreate value not just with FSC products as physical goods, but by adopting the FSC way as
a business ideal.

With growing scrutiny of corporate credibility,
FSC certification is an important tool.
At the request of our sales department, we obtained FSC COC certification in 2007. We had
previously had some difficult experiences when trying to obtain other certifications, so wewere looking for a partner who would provide solid service. AIEC's people did a great job of
explaining everything, and they were able to give convincing answers to all my questions.
When I went to AIEC headquarters in Tokyo for a seminar, I was impressed by theprofessionalism of the entire staff there, and could tell that it was a well-run company.
Orders for FSC certified products have risen year after year, and I believe that growth willcontinue to meet a real need in society. In the future, the credibility of companies andproducts in all respects, not just environmentally, will be important. FSC is an important
tool in building that credibility day by day.

FSC certification was the best way to express
our brand ideals.
Our company operates retailing for The Body Shop in Japan. To conform to the brand'svalues of environmental responsibility, in 2000 we adopted FSC certified packaging paper.
When we learned about recycled paper production and the bleaching agents that are usedin that process, and understood the whole cycle from production through disposal, we
decided that FSC Forestry Certification was more sustainable and eco-conscious. We also
carry products made from FSC-certified wood. Our customers are very conscientious about
the environment, and many said that using FSC certified paper is what they would expectfrom us. We will continue working to minimize our environmental impact by making andconsuming only what we really need, in accordance with The Body Shop brand's ideals.

FSC®N001887

In FY2014, IT willtransform AMITA.

◆

Strengthen contact centre
capabilities

Information Resources BusinessBusiness
Plan
2014

Build communications
channels−Strengthen contact centre as key
element of new businesses−Enhance existing customer support
across phone, email and internet

Website◆Emailnewsletter

Seminars&
eventsContact
centreFax DM

Strengthen web marketing
capabilities−Enchance website content topromote enquiries

Accidents,
incidents inenvironmental ops

Environmental
information platform

Case information

Develop environmental
business professionals

Environmental law
information

Next steps for
information systems

Marketing database

Waste generation facts
and analysis database

Logistics
database

Recycling partner
database

Quotes and orders
database◆◆

Strengthen links withexternal organizations−Train external evaluators for ecolabeling−Create expert-led educational
opportunities for staff◆

Encourage knowledge
acquisition−Analyse sales records and customer
data to discern market trends−Rapidly adjust products in responseto changes in the law−Harness IT in planning, developing andsupplying products

Waste generators
database
Eco-tech
information

Business
records
Environmental
audit records

Improve efficiency and qualityof services through adoption of
IT platforms◆

Raise sales capabilities
through adoption of IT
platforms−Deploy IT devices in sales process−Refine sales strategy based on data mining

39

New business initiatives for the “environmental century”

New
Business

Environmental Business Process Outsourcing (BPO)
Imperative to cut
operating costs

Combining the experience and know-how developed in our Terrestrial Resources Business andInformation Resources Business, in FY2014 we are launching full-scale into environmental operations
support services.
Foreignlaws

Societal Needs

Increasing &strengthening
regulation

Corporate Response

CSR pressure

Increase environmental initiatives

Accountability for what the company isdoing to help the environment

・Expand environmental ・Improve environmental
operations departments technologies
・More expertise・Green businessinitiatives

Business requirements

Build core business

Expectations of increased stock price,
dividends, etc.

・Focus on core business・Rationalization and outsourcing of non-corebusinesses
・Risk minimization

Value
providedby AMITA
40

Trading
partners

Environmental
ISO/wastes

Environmental/
CSR
Department

Clients

Labour unions
Local&
communities
employees Raw materials
procurement

Increased attention
on corporate
environmental
work

Sys
operatemtions

Sys
operatem
tions
Docu
Fac
mana ilities manag ment
geme
emen
t
nt

BPO Market in Japan
2016

Banks

Laws &
regulations

BPO: Business Process Outsourcing
BPO refers to companies turning over entire chunks of operations to specialized outsidecontractors. Unlike sales representation or consulting, everything from operations
analysis to planning and implementation to process improvement is entrusted to theoutside contractor. It is the form of outsourcing in which the outsourcing provider has thegreatest latitude. For many companies, environmental operations are important, but they
do not represent the company's main business. In cases like these, BPO with a separate,
specialized company allows the company to focus its economic resources on its corebusiness, boosting competitiveness.

Investors

Facmana ilities
geme
nt

Document
management

Data
collection

Personnel /vendor / contractor
management

Data
Personnel /collection vendor / contractor
management

693.7 billion

yen (projected)

Leave it to AMITA!

(Average annual growth rate:
4.2% per IDC)
Environmental operations expected to be
an area of growth in BPO, especially forlarge companies

How can we get any
real work done?

AMITA takes on yournon-core environmental
operations, so you canfocus on your corebusiness!

Now your company can focus management resources on the business that reﬂects
its core competencies, without falling short on environmental operations.
The AMITA Group's environmental BPO service makes this new way of doing business possible.

Now we can focus!
CorebusinessCorebusinessSys
operatemtions
Facmana ilities
geme
nt

Document
management

Data
collection

Personnel /vendor / contractor
management

We do it all
for you!

Let AMITA take over your entire environmental operation:
it's a non-core activity for you, but it's our core business.
With 35+ years of experience in the environmental sector, we have the know-how to minimize the risks to you, and a track recordof delivering solutions on the ground. A good environmental strategy is critical to any company expanding globally. We can executethe strategy you have now, or help you improve it.
The AMITA Group takes over non-core
operations in their entirety, so you canfocus in your core business!

Environmental/
CSR
Department

We're startinghere.

Launched
Spring 2014

Waste management
operations BPO

Overseas environmental
operations BPO

Environmental
communications BPO
And moreGreenprocurement BPO

Compliance BPO

Terrestrial Resources Business know-how

Information Resources Business know-how

・Support recycling more than 600,000 tons per year
・Five recycling plants and one affiliated recycling plant Japan-wide
・Network of 300+ recycling partners Japan-wide
・Successfully recycled more than 4,000 kinds of waste to date・Approximately 2,000 recycling consultations per year
・Environmental risk assessments and/or consulting engagementswith more than 160 companies

・Track record of deploying IT in environmental operations to improve
operational efficiency and performance・Success in consulting for entry into environmental businesses
・Development of environmental business models
・Marketing support for new environmental market development
・Support for formulation and implementation of communications
plans for environmental/CSR activities
・Support for international eco-labelling and certification

Environmental operations
back office・Database of 29,000 environmental
operations professionals
・Contact centre with 19,000(2010-2013,cumulative)
・Experienced environmental management
staff
・Staff with environmental law expertise41

Regional Resources BusinessOur aim is a sustainable society,built on a new social systemthat values quality time.

42

The challenges society
faces in everyday life

With Japan's population decreasing, the Japanese market is expected to shrink as well. In a rapidlychanging world, what should we value? What should we consider most important?

Regional Resources Business

Through our business practices, we in The AMITA Group are pursuing a genuinely thriving society.

The paradox of wellbeing: what a thriving society looks like

Regional neglected resources

Cabinet Office: “System of National Accounts” and “Public Opinion Survey on the Life of the People”

Degree of life satisfaction

Per capita real GDP

250

Import-dependent
resources

200
150
100

Life's easier...
but I'm not satisﬁed

50

10

06

98

2002

94

90

86

82

78

74

70

66

62

0
1958

Relationship between percapita real GDP and life
satisfaction (Japan)（1970＝100）(Year)

Energy self-sufﬁciency: 4% *1
Fossil fuel imports:
20 trillion yen per year
Food imports:
58 million tons per year *2

Source: Cabinet Office: “Public Opinion Survey on the Life of the People” (2013)（％）

What do you intend toprioritize in your life?

70

Mental and emotional
wellbeing

Material
wellbeing

Cannot say
which

50
40

Discarded food:20.86 million tons per year *2
I care about mental
and emotional
wellbeing!

Total value of uneaten food:
11 trillion yen per year *2
Plantation forest usable for timber:Three years from now, 6.88 million ha *3

30
20
10
0

Domestic neglectedresources
Cropland out of cultivation: 396,000 ha *2

60

1974
76
78
80
82
84
86
88
90
92
94
96
98
2000
02
04
06
08
10

SocialProblems(Year)*1 Ministry of Finance trade statistics*2 Ministry of Agriculture, Forestry and
Fisheries reports*3 White paper on forestry

Despite a rising real GDP per capita in Japan, people are not becoming more

Japan is only 4% of the way to being energy self-sufficient. It imports 20 trillion yen

satisfied with life, and this divergence continues to grow. However, little by little, aof fossil fuels per year, along with 58 million tons of food. Meanwhile, over the last 30

shift in priorities is occurring. People are valuing material prosperity less, and mental

years the amount of uncultivated cropland in Japan has tripled to 396,000 hectares,

and emotional wellbeing more. We believe that society must make a transition fromand in three years the amount of plantation forest that could be used for forestry willa model of material prosperity based on mass production and mass consumption toreach 6.8 million hectares, larger than the Japanese islands of Shikoku and Kyushu

a new model, a social development that is based on qualitative wellbeing.

put together. With the deepening global problems of resource depletion and foodNote: The full “emotional wellbeing” prompt in the “Basic Survey on National Life” was:“Given a certain level of material prosperity, I want to focus on emotional wellbeing andreduced stress in my life”.
The full “material prosperity” prompt in the “Basic Survey on National Life” was:“Even given a certain level of material prosperity, I want to focus on increasing that level”.

shortages, it is extremely important to harness such neglected regional resources.

43

AMITA's
VisionAMITA's Vision for Our Regional Resources Business
Lifestyles nurture regional economies, and interpersonal exchange generates new
industries and products. We are aiming to build a new social system that harnesses
neglected resources and pursues qualitative, not quantitative, growth.”

As society pursued efficiency, there was a shift from using forest

In building a social system, “community-based industrialization” isresources to petroleum resources, and different regions chose to

one of AMITA's key terms. It refers to creating products and services“rationalize” and focus on particular livelihoods: agriculture, forestry,in two ways: through community recognition of the relationships

and so on. But the influx of even more efficiently produced products

binding people with nature, and through information sharing withinand services from outside these regions caused the decline and ruin

the community. These activities will reveal that everyday life itself canof local industries.

generate economic activity and markets leading to “industrialization”.

AMITA is establishing a new social system that is founded on quality
time, which arises from positive relationships among people andbetween people and nature. Linking together livelihoods of theforest and the fields, or of the fields and the seaside, to bring about

Wood from forest thinning can be pelletized and used as a fuelsource in towns, or waste food from these towns can be used as
biomass for electricity generation. Those are just two examples of
how regions can develop their own independent infrastructure.

a society that makes the most of everything and everything, our

AMITA plans to transition from quantitative to qualitative prosperity,

system empowers regions to fulfill their inherent potential.

building a model of a sustainable society starting with concrete
regional solutions, accumulating evidence of results, and establishinga new way of life. We believe our business model will nurture thriving
regions, and lay the foundations for a society that is truly rewarding.

44

Conditions vary from region to region: terrain, climate, culture, ecosystem. AMITA identifies
neglected resources in targeted regions, and seeks to put them to the best possible use. By

Building a new social systemdoing so, we help to connect people, materials goods and money forming an autonomous
Regional Resources Business

New
Systemcyclical system within the region. Our aim is to break the chain of negative links in theexisting social system that drive the decline of local regions, and replace it with a chain of
positive links established through the harnessing of neglected resources.

Existing system: negative spiral

New social system: positive spiral

Erosion of lifestyle foundations, industrial decline
Loss of employment/Loss of population

Job generation, population inﬂux
Stable and secure lifestyles, entrepreneurship

ForestForestForestry

Disconnectedindustries

Forestry

Towns
Towns
Agriculture

Agriculture
Fisheries

Sea

Fisheries

FieldsSea

Fields45

Business
Strategy

Two pillars of
the Regional Resources Business:toward a new social system

In order to build a new social system that harnesses the unique neglected resources of eachregion, we follow two strategies to transition from proof-of-concept to actual business activity.

Establishing a new social system【Development of symbiotic farming】
Symbiotic farming is a method that limits
agrochemical inputs and takes into
consideration the health of the variousorganisms that inhabit rice paddies.
Instead of regarding wildlife as an obstacle
to farming that should be removed, ourmethod carefully controls the water levelof the paddies and the growth processof the rice sprouts, providing habitats
for organisms. AMITA is undertaking
development of this farming method toprovide safer, healthier rice.

Harness neglectedresources from theforests, ﬁelds and sea◆

Develop technologies andknow-how for:−Wood biomass exploitation(wood pelletization technologies,
methods of extraction of timber
offcuts)−Symbiotic farming methods−Medicinal plant cultivation techniques◆

Harness neglectedresources from towns◆−Household waste recycling(biogas production and exploitation
technologies)◆

System set-up−Open sales channels for agricultural
products, forge links with partnercompanies−Open sales channels for woodpellets【Setting up a system to harness wood pellets】
Wood pellets are a solid combustion fuel made by compressing
timber offcuts (forestry waste) into compact pellets. Instead ofusing fossil fuels or other non-renewable resources brought infrom outside the area, renewable material from local forests istapped as a neglected resource, and processed into fuel that canbe used to heat homes, ofﬁces or greenhouses. AMITA is setting
up a system to turn a forest resource into a resource of value tofarms and towns.

46

Develop technologies andknow-how for:

System set-up−Build “nothing wasted” stations(Gather and analyze relevant market
information, build expertise in productdevelopment)−Establish a collection system forhousehold waste (e.g., food waste)【Harnessing biogas and liquid fertilizer】
Collecting food waste from homes andprocessing it to produce methane biogas
allows waste to be transformed into
useful energy for electricity and heat.
And the residue left over can be used inagriculture as a liquid fertilizer. We are
creating systems like this that effectively
turn waste into resources. We plan to build
local facilities appropriately scaled to agiven area, rather than large facilities. This
will help to create a sustainable, cyclicalsystem of resource use.

The town of Minami-Sanriku lost its economic base in the Great East Japan Earthquake. Sincesynergistically linking neglected resources from forests, farms, the sea and in towns, investing
Regional Resources Business

Development
Cases

2012, The AMITA Group has been building the prototype of a new sustainable society there. By

Model forlocal cyclical system

in infrastructure on which people can base their livelihoods, and developing products that draw
attention to person-to-person connections, The AMITA Group is testing and validating a systemthat can establish specific businesses.

Town

ForestSawmill
TimberWaste
mushroom
bed

Scrap wood
Hot spring

Stove

Fuel

BoilerHomes - Shops Public Facilities

Wood from forest
thinning“Nothing wasted”
stationWood pellet
facillity

Food waste
Food

Responsible
management

Timber offcuts

Abundant water
Fuel

Puriﬁer

FSCⓇ forest
certiﬁcation/
FORESTOCK
lumberNutrients
Minerals

Fuel

SludgeBoilerFood

Heat

Fields/Pasture

Farm

Permaculture

Liquid fertilizer

Heat

Biogasfacility

Sea

Heat
Gas - Electricity - Heat

Fisheries
management
BoilerResidue

Fishery/Aquaculture
certiﬁcation
MSC/ASC

Seafood processing plant

Medicinal plants (leaves/roots)

Environment/Watershed protection

Cyclical system through thebounty of forest, farm and sea
Human activities in harmony withecosystems

Branding entire communities
Products
Services
Time

Empathy

Clients47

Performance&
Highlights

Achievements and highlights of the Regional Resources Business(Achievements of business development initiative in Minami-Sanriku, Miyagi Pref.)Cultivation of medicinal
crops and associated R&D
In April 2009, through a donation by
The AMITA Group, a research groupstudying functional plant production
was established at Chiba University's
Center for Environment, Health and Field
Sciences. In FY2012, The AMITA Groupbegan carrying out collaborative researchwith the centre. Angelica root, panax
ginseng and other medicinal herbs thatare threatened with extinction becauseof growing global demand are being
explored as crops for growing in MinamiSanriku. This project is advancing on thebasis of new research-based knowledge,
and through the incorporation of efficienthorticultural cultivation methods.

Producing and Selling
Products with Empathy
The town of Minami-Sanriku in Miyagi
Prefecture was hit hard by the 2011 Great
East Japan Earthquake. Last year, working
together with local farmers, womenwhose jobs had disappeared in the wake ofthe disaster, and members of the town's
community workshop, we began symbiotic
farming of both the Sasanishiki variety
of rice and the herb Chinese angelica(the latter was a trial cultivation). The
Sasanishiki rice was branded "MinamiSanriku: Forest, People, Ocean" and iscurrently on sale at some rice shops inthe city of Sendai. We are continuing towork with Minami-Sanriku to develop new
products and build market presence.

48

Developing applied technologies for biogas
Under an initiative by the Ministry of the Environment, The AMITA Group carried out a feasibility
study on turning waste materials from Minami-Sanriku into resources. Beginning with studiesof trash separation and collection methods used in homes and business, The AMITA Groupultimately did a trial run of a biogas demonstration plant and formulated a plan that included
provisions for disposal of the town's ordinary waste; we are currently examining commercial
applications for the technology.
〈 Major accomplishments 〉◆ Studied trash separation and collection methods
Within the demonstration project zone of Minami-Sanriku, The AMITA Group recruited 86
households and 13 businesses to cooperate in a study of trash separation. The content of theseparated trash was analyzed and its biomass quantity assessed.
◆ Pilot operation of biogas pilot plant
We set up a biogas demonstration plant that turned collected trash into biogas. Various ways ofusing the gas were evaluated (e.g., heat, electric power generation), as were uses for the liquid
fertilizer that is a by-product of the process.
Based on the demonstration results, planning is underway to build out a full-scale business
operation.

In FY2014: Visualizing future
models of local societies

Regional Resources Business

Development
Plans

Establishing a new social system
Wood pellet applications
With sights set ultimately on engineering a cyclical system with
distributed energy generation, The AMITA Group is piloting theprocessing of neglected wood resources such as forest thinnings
into pellets for use as a heating fuel in local communities. Our
efforts to commercialize this technology are ongoing.

Harnessing neglected resourcesfrom forest, farm and ocean〈 Major accomplishments 〉
In conjunction with our study of unique methods for recovering
timber offcuts in Minami-Sanriku, The AMITA Group is doing trial
wood pellet production with a pilot plant.
With the cooperation of approximately 40 homes and businesses
who have installed pellet stoves and monitoring systems, weare evaluating the chain of production, sales and use. We aregathering this information in the hope of turning this into abusiness.

◆

Studies of local potential

Harnessing neglectedresources from communities◆−Keihoku area of northern Kyoto, etc.

◆

Develop medicinal plant cultivation
techniques and expand area ofthese plants' cultivation−Job creation, linking local residents withnew residents relocating from cities◆−Spread medicinal plant cultivation tomultiple sites, introduce symbiotic farming◆

Develop mechanisms
for commercializing anddistributing products−Local residents working in the sellingand distribution of farm products, etc.

Increase relational capitalof communties

Develop infrastructure forrecycling household waste−Explore introduction of biogas generation
facilities◆

Build resource collection
systems−Establish household waste collection
systems, etc.

49

Financial Report2013 (Jan. 1, 2013 - Dec. 31, 2013).

FY2013 Accounts
FY2012
Net sales

FY2013(Forecast)

FY2013(Actual)Deviation fromforecast (%)(Consolidated, in millions of yen)
Comment

Growth in sales of valuable materials,
0.5% implementation of disaster debris disposal
business

4,412

4,653

4,676

Selling, general andadministrative expenses

1,484

-

1,502

1,403

-

1,367

-

Operating income

80

150

135

△9.9%

Ordinary income

75

146

106

△27.0%Net income

18

113

115

-

Received compensation from TEPCO in
2.3% relation to damages from the Fukushima
Daiichi nuclear plant accident

Japan, the company continues to investigate new markets;for example, in May, in cooperation with the Institute for Global
Environmental Strategies (IGES), AMITA conducted a study on

to damages from the Fukushima Daiichi nuclear plant accident.
Both net income and net sales were up year on year.
AMITA CORPORATION opened a new recycling facility inHamamatsu, Shizuoka Prefecture in January 2013, and in April,
AICHI KAIUN CO., LTD. began operating Gamagori Recycle SC
using AMITA CORPORATION recycling technology, opening up
new markets for us in the Tokai region. Outside

Indonesia.
The AMITA Group also is developing a BPO (Business
Process Outsourcing) product called Best Way to Manage
Waste. This product will leverage our strengths to enable
AMITA CORPORATION to entirely take over highly specialized
and labour-intensive waste management operations for clients.

4,732

4,735

Consolidated operating income(in millions of yen)

4,412

50

2011

(in millions of yen)

135

5

2010

2012

2013

This business segment covers recycling operations and manufacture of terrestrial resources.
Growth in sales of valuable materials and full implementation of debris disposal from the
Tohoku disaster zone pushed net sales to 4.496 billion yen (up 8.3%/343.022 million yen year
on year). Operating income was hurt by rising manufacturing costs and expenses related to2) Eco-solutions business

2009

△ 350

2010

18

△ 350 △ 553

2011

2012

2013

2009

2010

2011

2012

Terrestrial Resource
Business
96%*Ratio of net sales excluding adjustments.

【Ref. : chart of relationship between lines of business, business segments and services 】

Terrestrial
resources

Information
resources

2013

Eco-solutions
Business
4%

services such as FSC and MSC. A decrease in consulting
engagements caused net sales to fall to 182.096 million
yen (down 32.3%/86.710 million yen year on year, while
operating losses were 49.336 million (-/10.873 million
yen) due to the eﬀects of reduced expenses related tosales and general administration.

115

80

Ratio of Net Sales (FY2013)This business segement provides environmental

Name of service
Terrestrial resourcesmanufacturing
Recycling operations
Resource sales
Eco-consulting

4,676
84

2009

Consolidated net income
251

4,987

1) Terrestrial Resources BusinessBusiness【Recent Business Results】(in millions of yen)

Results by business segment given below.
(Ref.: chart of correspondence between business name given in the main body of the reportmillion yen (up 31.8%/44.607 million yen year on year).

In 2013, growth in sales of valuable materials and implementationof our disaster debris disposal business contributed to the
net sales of the Terrestrial Resources Business. Net income

Consolidated sales

By business segment

Regional
resources

Information management
supporting environmental
operations
Information systems functions

Survey researchCompany providing

Business segment in

AMITA
CORPORATION

Terrestrial resources

AMITA Institutefor Sustainable
Economies Co., Ltd.

Eco-solutionsAMITA
CORPORATION

Terrestrial resources

AMITA Instituteof Environmental
AMITA Institutefor Sustainable
Economies Co., Ltd.

Eco-solutions

Financial Report

Financial Statement

Three-year midterm forecast(in millions of yen)●Consolidated Balance Sheet●Consolidated Statement of Income(in thousands of yen)
Current
period(in thousands of yen)
Current
periodPrevious
period2,102,839
2,142,791

1,789,375
2,099,186

1,935,269

1,912,192

33,251

41,140174,270

145,853

4,245,630

3,888,561

1,913,638
1,619,438
3,533,076

1,603,494
1,688,378
3,291,873

712,553
Capital stock
474,920
Capital surplus
408,499
Retained earnings △170,731
Treasury stock△134
Total net assets
712,553596,688474,920
408,499△286,664△66
596,688

Total liabilities andnet assets

3,888,561

Current assets
Fixed assets
Fixed assets:
Property, plantand equipment
Intangible fixed
assetsInvestments andother assets
Total assets(Liabilities)
Current liabilities
Fixed liabilities
Total liabilities(Net assets)
Shareholder's equity

4,245,630

Previous
periodCurrent
periodNet sales

4,676,087

4,412,779

Cost of sales

3,173,127

2,928,604

Gross profit

1,502,960

1,484,175

Selling, generaland administrative
expenses

1,367,823

1,403,889

Operating income

135,137

80,285Non-operating income

45,56335,666

Non-operating
expenses

73,92540,252

Ordinary income

106,775

75,700Extraordinary income

117,963

48,460Extraordinary losses

3,038

-

Income before income
taxes and minority
interests

221,700

124,161

Income taxes - current

43,692

10,844

Income taxes deferred
Income before minority
interests

62,07594,712

115,932

18,605

Net income

115,932

18,605The AMITA Group holds net sales, operating income and operating profit as important
metrics of the company's growth and profitability, and ROE (return on equity) as animportant metric of capital efficiency. In FY2103, net sales rose as a result of growth indisaster debris disposal work and sales of valuable materials. Operating income rose
as well. And by launching new ventures like Gamagori Recycle S.C. that do not requirelarge capital expeditures, we are improving our return on capital.

December
2014
projected

December
2015
projected

December
2016
projected

Net sales

4,379

5,082

5,436

(in thousands of yen)

January 1 January 1 December 31, 2013 December 31, 2012

December 31, 2013 December 31, 2012

(Assets)●Consolidated Statement of Cash Flows
Previous
periodJanuary 1 January 1 December 31, 2013 December 31, 2012

Net cash provided by(used in) operating
activities
Net cash provided by(used in) investing
activities
Net cash provided by(used in) financing
activities
Effect of exchange ratechanges on cash andcash equivalents
Net increase in cash andcash equivalents
Cash and cash
equivalents at
beginning of period
Cash and cash
equivalents at end of
period440,085

181,275△64,670△87,951△202,963△99,311

13,88911,713

186,341

5,727

866,610

860,883

1,052,952

866,610

Operating income

▲76

110

350

Ordinary income

▲69

80

320

Net income

▲84

69

409

For FY2014, AMITA will be strengthening development efforts toachieve its midterm forecast, including new product development
and major facilities investment. In FY2015 AMITA plans toincrease income and profits through the opening of overseas
bases, and in FY2016 increased production at the bases openedin 2015 and growth of the BPO business are expected to boost
profits.
We expect this FY to be a pivotal one. The seeds of new business
opportunities in the environmental services field that The AMITAGroup has laid down so far will blossom into new products
yielding business results. To this end, we aim to create acompany-wide platform that can provide essential environmental
services to private companies and public-sector entities.

Profit sharing in 2013 took the form of a year-end dividend. Although this depletes
capital surplus, it was decided on to mark a new start toward securing a dividend
resource as well as a flexible and manoeuvrable future capitalization strategy. From
FY2014, there will be annual development initiatives in support of the medium-termplan in order to raise competitiveness.

Director

Taro Shimizu

51

Stakeholder survey results
Employee survey

The AMITA Group conducts surveys of various stakeholder groups in order to monitor the company's position and identify issues thatneed to be addressed. The results are fed into our PDCA cycle for continuous improvement in executing our business activities.

Shareholder survey*Key findings highlighted below(Survey parameters) Survey group: permanent employees and contract employees (the survey group did not include executives,
dispatched workers or part-timers)
Respondents: 85 (out of 158 who were sent the survey)
Survey period: May 9-23, 2013
Survey method: e-mailed instructions to fill out electronic form

1) Employee perceptions of their jobs
Q. Would you say that the job you do at The
AMITA Group is fulfilling? Please tell us
how you feel right now.
(Respondents = 85)
60
50

45

40

40

A job at The AMITA Group should offer employees more than just apaycheck-it should function as a vehicle for allowing them to make adifference in society. 53% of respondents (a total of 45 people) said that
their current job was worth devoting their life to. Looking ahead, giventhat the place where we work is a context for living our lives together,
we will strive to foster a workplace environment and corporate culturethat offers employees a greater sense of fulfilment.

30
20[Detailed responses] (Feedback on whether the job is fulfilling)- This job fits what I would like to accomplish, and what I would like to see
accomplished, in my lifetime.
- I can tell my kids I'm proud of the job I do.
- This job keeps me motivated and ready to take on new challenges year
after year. I feel that is very worthwhile, and I never get tired of it.

100

Worth it

Not worth it2) Assessment of human resources development principlethat people are not a cost but an asset
Q. One company principle is that people are to
be considered an asset, not a cost.
Is this thinking implemented from the
management perspective?
Is it implemented from the employee perspective?
50
40

40
27

[Management response to survey results]

18
12

10
0

52

39

34

30
20

In 2012 The AMITA Group adopted a human resources development
plan based on the principle that employees are considered assets, notcosts. The most common response to the question of whether thisprinciple has been put into practice was, “Not sure.” In the future, as
this principle is worked out through concrete policies, we expect theratio of positive responses to rise.

Yes

No

Not sure

We see a lack of opportunities and mechanisms to make management's
intentions apparent to employees. We will work to create clearly
articulated systems for drawing out the motivation and potential of each
employee, and increase opportunities for dialogue between management
and employees that fosters understanding of management's intentions.
In this way, we will win the recognition of our employees that they areindeed an asset to the company.

* Includes investors who are not shareholders but have requested information about AMITA Group.
* Selected survey results are presented below.

[Survey parameters] Survey group: shareholders and investors
Respondents: 32 (out of approximately 1,200 who were sent the survey)
Survey period: July 1-14, 2013
Survey method: included in mailing of fourth quarter Designing the Future
newsletter sent to shareholders and investors

1) Comments on IR bulletins and other corporate communications
The AMITA Group always asks shareholders and other investors to rate our investor relations
communications, namely earnings reports and shareholder/investor bulletins, out of 100.
This survey was enclosed with the Designing the Future newsletter, which received anaverage score of 78. All the feedback received will be carefully taken into consideration tocraft future investor communications that are more attuned to your needs.
[Detailed responses] (feedback about Designing the Future newsletter)- The in-depth explanation of internal HR issues allowed me to appreciate the company's humanresources development.
- The company's contributions to society were conveyed effectively.
- It would be better if it contained more information about risk management.

2) Expectations for The AMITA GroupThe following are typical of the comments that were received regarding expectations for The
AMITA Group. Along with desires for a rising stock price and dividends, many respondents
expressed opinions about the company's business domains and development of new services.
AMITA is committed to pursuing business activities that will fulfil investor expectations.
[Detailed responses]- If Mr. Kumano's philosophy were to be embraced widely in Japan and around the world, it would
boost economies and create more liveable societies.
- I hope the company will continue to take part in the recovery of Tohoku.
- I'd like to see the company aggressively develop environmentally conscious products and services
that will bring about a sustainable society.
- I'd like to see a mutualistic capitalism of the future, which unites and delights nature, society,companies and people.
- I expect Asian countries experiencing rapid economic growth to have massive environmental
needs in the years ahead.

* Selected survey results are presented below.

[Survey parameters] Survey group: Business partners(waste generators, steel, nonferrous metal and cement makers, waste collection companies)
Respondents: 247 companies (out of 811 who were sent the survey)
Survey period: July 8-26, 2013
Survey method: Email and postal mail1) Reasons for selecting AMITA as a vendor * Top five responses (respondents could list more than one reason)
120

112

Business partners survey (Environmental Certification Business)[Survey parameters] Survey group: Certified businesses
Respondents: 110 companies (out of 309 who were sent the survey)
Survey period: July 8-26, 2013
Survey method: Email and postal mail1) Why clients chose AIEC (AMITA Institute of Environmental Certification Co., Ltd.) as their certifier* Top five responses (respondents could give more than one reason)
60

108
87

90

81

60

30

30

15

0

Sales
representatives
are trustworthy

Agree withAMITA's corporate
philosophy

Believe in service
quality andproduct quality

Cost advantage

0

Offered something othercompanies couldn't(attractiveness of proposal)

Many respondents mentioned that the assiduous efforts of our sales team and the seminars we offer
were among the factors convincing them that AMITA would be a business partner they could count on. The
quality of our products and services was also highly rated.

2) Satisfaction with AMITA's services

42
31

Heard about AIEC
from colleague or
acquaintance

Trusted quality of
AIEC's assessment
and productConscientious
phone service
and paperwork

21

17

Seminar
explained services
clearly

Agree with
AIEC's mission
and philosophy

Many responses to the question of why clients chose AIEC mentioned referrals, quality and otherindicators that suggest AIEC is seen as a trusted business partner. As a third-party company conducting
certification assessments, AIEC strives both to handle all business paying careful attention to detail, and toclearly communicate information about the quality of our services through seminars and other means.

0%* Top five responses (respondents could list more than one reason)

76% of clients responded they were “very satisfied”, “satisfied”
or “somewhat satisfied”. Our specialized expertise in waste
disposal and flexible, detail-oriented responsiveness werehighly praised. This supports the responses for the previous
question (“Why did you choose AMITA as a vendor?”)

49

45

70

* Selected survey results are presented below.

4%

0%
15%

Very satisfied
Satisfied20%

Somewhat satisfied
Neutral6%

Somewhat unsatisfied
Unsatisfied
55%

Not at all satisfied[Detailed responses]- AMITA salespeople really understand the business and the regulations within it, so we know we can rely on
them. (Electrical equipment manufacturer)- They put on a lot of seminars that are a helpful source of information. (Chemical company)- When we had materials that other companies couldn't take, AMITA went out of their way to handle the logistics
and disposal for us, even the negotiations and the contracts. (Chemical company)

2) Satisfaction with AIEC

0%
1%

* Top five responses (respondents could give more than one reason)

81% of respondents were “very satisfied”, “satisfied” or“somewhat satisfied”. Only 3% chose “somewhat unsatisfied”,“unsatisfied” or “not at all satisfied”. The quality of service
provided in regard to certification was lauded, and our speedy
response to specific issues and helpfulness answering
questions received particular praise.

16%

2%
18%

Very satisfied
SatisfiedSomewhat satisfied

6%

NeutralSomewhat unsatisfied
Unsatisfied
57%

Not at all satisfied[Detailed responses]- Responsive, and auditors are good at explaining the procedures. (Fisheries industry)- They respond to needs and give guidance from the perspective of someone within the industry. (Furniture industry)- Employees have a high level of knowledge, and I have learned a lot through working with them. They are a sourceof inspiration and good suggestions. When I have questions, they are always happy to answer them. (Forestry)3) Opinions and expectations about AMITA

3) Opinions and expectations for AIEC

Below are some important comments from our clients regarding what they hope and expect from AMITA.
We will strive to respond to this feedback and further enhance the quality of our services.

Feedback indicated a perception that there is little progress in spreading awareness of FSC and MSC, anda desire for enhanced promotional efforts. We are working to provide a higher level of service that ourclients find useful.

[Detailed responses]- We would like to see AMITA propose a material cycle and new approaches relating to it. And we would like toreceive recommendations on things like reducing costs. (Electrical equipment manufacturer)- I would like to see more thorough responses to inquiries about regulation. (Electrical equipment manufacturer)- Please look into finding disposal paths for unrecyclable materials like brine. (Chemical company)- I would like to see AMITA build an integrated system incorporating contracts, collection & transportation,
disposal, and data management. (Petroleum products company)[Detailed responses]- I would like to see you hold seminars for explaining important information, such as changes to the various forest
products certification programmes. (Printing industry)- Our company is pulling out all the stops to build awareness of FSC. We'd like to see AMITA doing more on that front.
(Papermaking industry)- You should look into making certification levels more readily understood by the average person. (Local public institution)

53

SurveyBusiness partner survey (Terrestrial Resources Business)Fact Data
Summary of notable data about FY2013 (Jan. 1, 2013 - Dec. 31, 2013) not covered in operating results.

Creating a workplace where people can enjoy a long, fruitful career
Category

Initiatives/Performances

Human resources
development/
training

Leadership academy

Held monthly to nurture leadership ability in employees who lead teams.

Education/Training

Periodic study groups held to raise operational performance in plants and improve the workplace. In FY2013, a total of 54
sessions involving 373 employees were held.

Evaluation system

Employees are evaluated at the team unit level. Since individual ability and qualifications are considered to be observable
only within the activity of a team, contribution to the team is the evaluation metric.

Leave system

Sabbatical, social sabbatical leave, and anniversary leave introduced. Combined with paid leave, 11.3 days taken (FY2013
figures).

AMITIME System

Under The AMITA Group's unique system, unused annual paid leave is banked by the Group, and the employees concerned
can take the accumulated days off later. Through 2013, three employees have been in need of leaves.

Safety metrics*Frequency rate: 9.12 (General & industrial waste management: 9.38 – 2012 Survey on Industrial Accidents)
Severity rate: 0.02 (General & industrial waste management: 0.16 – 2012 Survey on Industrial Accidents)

Safety improvements (risk assessments)

To reduce the number of accidents and near-accidents, and pre-empt complaints/claims, risk assessments are performedat the start of the fiscal year for each line of business, and high-risk operations are subjected to intensive risk reduction
initiatives.

Radiation measurement

All loads undergo radiation testing upon arrival.

Employee communications

In order to build a foundation for value creation, each AMITA workplace holds a “Thinking Day” every Wednesday. Employees
discuss questions connected to social concerns: What is life? What is happiness? What is family? What is community?

Communication between executives andemployees

In order to achieve the company's mission, “town hall” meetings between executives and employees are held at locations
around Japan.

Harnessing internal information
resources

The company introduced a groupware-based internal communications system called AMIHO. In the nine months after
installation, there were more than 1,900 posts, more than 2,600 comments and more than 6,500 “likes”. The system isfostering communication among staff in different AMITA locations.

Employment system/
Evaluation system

Safety initiatives

Internal
communications*Frequency rate: The number of injures or deaths per 1,000,000 working hours (frequency of accidents).
Severity rate: The number of working days lost per 1,000 working hours (severity of accidents).

54Fact Data

Environment
Category

Initiatives/Performances

Survey on environmental business

The AMITA Group conducts surveys covering environmental management to fill gaps in official surveys. In FY2013, AMITA
carried out a survey on the current state of cement recycling. In cooperation with The Cement Shimbun Co., Ltd.
AMITA held a roundtable discussion where government and industry figures could exchange views and explore how
environmental management can reach a higher level of excellence.

Lectures

In addition to lectures on recycling and environmental certification programs such as FSC and MSC, as a company committed
to tackling the challenges society faces, The AMITA Group also holds various events and seminars.
Lectures held: 39

External public service communications

AMITA conducts communications to raise awareness among the public and promote greater excellence among environmental
management professionals. It does this via magazines such as Nikkei Ecology, books and newspapers.

Factory tours

AMITA offers factory tours at five of our plants around Japan. A total of 400 tours were held totaling 1,100 participants fromboth the general public and companies.
We have welcomed observation tours from China, South Korea, and several countries in Southeast Asia.

Contribution to the Environment through our Core Business

The AMITA Group considers “environmental value” in all of our operations. For specifics, please consult the relevant pages
for each line of business.

Advocacy activities

Note

s!!

Natural resources saved by substituting recycled resources (FY2013)
Savings in cement materials
Cement materials(calorific)substitute110,757t

The AMITA Group is reducing consumption of the following natural resources by recycling waste.

Savings in nickel materials

Amount of coal saved

Metal (nickel)
substitute17,850

4,398

t

t

Savings in copper materials

Amount of nickel ore saved

Metal (copper)
substituteAmount of copper ore
saved

7,913

679

19,587ttt*These calculations assume a standard calorific value of 29MJ/l for coal, and ore grades of 2.49% for nickel and 0.52% for copper.

55

Fact Data

Community involvement
Category

Contribution to
the Communities

Social Action

Initiatives/Performances
Environmental education
initiatives

Lectures on environmental/CSR were held at 12 educational institutions including the University of Tokyo, Keio University, and Doshisha
University. Student interns are also taken at AMITA's Kyoto headquarters.

Local clean-up activities

Neighborhood clean-ups around the company's facilities are performed as part of AMITA's community service activities. AMITA also
participates in public clean-up activities.

Weekend farming and relief
fundraising market

After the Great East Japan Earthquake, AMITA began to hold a weekly market for employees at Tokyo headquarters as part of our efforts to
support the relief and reconstruction efforts. Produce and other products from disaster-affected areas are sold at cost to employees. In 2013,45 markets were held, generating 478,090 yen.

Grants and Philanthropy(Thank you Books)

As part of AMITA's “nothing wasted” philosophy, since February 2012 the company has worked with the Arigatobon campaign, through whichused books are sold and the money given to charities. In FY2013 a total of 836 books were collected and donated from 15 AMITA locations
across Japan.

Support for anti-poverty efforts(STAND UP TAKE ACTION
campaign)

AMITA contributes to the STAND UP TAKE ACTION campaign, which aims to support the UN's anti-poverty
Millennium Development Goals. This campaign held 1,023 events drawing 32,600 participants nationwide,
among which were 136 AMITA personnel from 16 locations around Japan. The AMITA Group began taking partin 2008, so 2013 marked the sixth year of participation. In 2012, The AMITA Group won the campaign's “uniquephoto” prize.

Fair operating practices
Category

Fair operating
practices

Initiatives/Performances
Dealing with social challenges

The AMITA Group is revising its screening procedures for establishing new commercial ties, in order to avoid any involvement with antisocial
elements including organized crime.

Improving compliance

All employees of The AMITA Group undergo annual testing on compliance regarding subcontracting laws, etc., to promote mastery of needed
knowledge and strengthen compliance capabilities.

*The AMITA Group was, in 2002, the fourth Japanese company to sign on to the UN-led Global Compact (GC) initiative addressing environmental/CSR.
AMITA actively embraces and promotes GC principles and issues an annual report to stakeholders on the status of these efforts.

56

Tools, Documents
Facts, Data

Keeping up with The AMITA Group (Periodical communications)
For information on The AMITA Group's business activities, outlook and latest initiatives, please visit our website regularly:(The categories below can be accessed at http://www.amita-hd.co.jp)

Designing the Future newsletter

AMITA Books

This newsletter is issued quarterly by The
AMITA Group and contains up-to-date
information about company business. The
newsletter covers a wide range of topics,
including stories on our management
philosophy, detailed reports from
employees handling important business,and HR development. Why is AMITA in
certain businesses? Why have we chosen
to operate in certain ways? You'll find theanswers in Designing the Future, mustread content for stakeholders wanting
insights into the strategies and ideas thatdrive the company.

The AMITA Group has publishedand edited various books ande-books, including Eisuke Kumano's
book The Thinking Company anda book of first-person accounts andreflections relating to the company's
efforts to help rebuild the town of
Minami-Sanriku in Miyagi Prefecture
after the 2011 Tohoku earthquake andtsunami.

Interactive BreakthroughEvery other month Eisuke Kumano, Chairman and
CEO of AMITA HOLDINGS, posts a video or text
update in which he discusses what the company isdoing to bring about a sustainable society.
Some rights reserved by Kabacchi

AMITA Photojournal

AMITA Group websites

Sometimes words alone can't convey everything, so every other month a twominute slideshow of photos from the company is posted to give a glimpse of thecompany's activities. Scenes range from employees in the office to business on
the front line.

The AMITA Group operates websites related to the environment and CSR.
Daily AMITA Update provides information about recycling, biodiversity
and other environmental topics. A portal site allows visitors to read andcompare CSR reports from a number of companies.

57

AMITA HOLDINGS CO., LTD
535 Akinono-cho, Oshikoji-agaru, Karasuma-dori,
Nakagyo-ku, Kyoto
604-0847 Japan
TEL: 075-277-0378 FAX: 075-255-4527
e-mail: press@amita-net.co.jp
JASDAQ (Securities Code 2195)
http://www.amita-hd.co.jp
Published by: AMITA HOLDINGS CO., LTD
Publisher: Eisuke Kumano
General Editor: Hitoshi Fujiwara
Written and edited by Akari Fujimoto, Junpei Yoshida, Yuichiro Ebina, Motoki Maeda
Designed and printed by Daishinsha Inc.
Copyright©2014 AMITA HOLDINGS CO., LTD
All rights reserved

Annual Report 2013

AMITA HOLDINGS CO., LTD

Creating Value,The AMITA Way

The AMITA philosophy is thatpeople and the environment should not have to pay the pricefor disposal of society's waste.

Creating Value,
The AMITA Way
Annual Report 2013

AMITA HOLDINGS CO., LTD