About this report

Table of Contents• Message from the CVO

p2• How the AMITA Group Creates Value

p4• Financial Performance for FY 2023

p6

• Achievements in the Social Systems Design Business in FY 2023

p10

• Message from the CIOO: Long-Term Management Plan
for FY 2024 through 2030
• Key Strategies for the Groundwork Phase in FY 2024 and 2025

p14

• Our Leadership

p22• Nonfinancial Information: Sustainability Initiatives for FY2023

p24

In this annual report, we discuss what the AMITA Group accomplished for the fiscal year ended
December 31, 2023 (FY 2023), and present an overview of the Group’s Long-Term Management
Plan for FY 2024 through 2030.
The year 2024 marks the 45th anniversary of AMITA entering the circular business in 1979. At thetime, instead of focusing on the treatment of solid and liquid waste, we chose to pursue a bigger
goal of making the entire industrial sectors more environmentally sustainable. The key driver wascircular management of resources. Today, Japan has become one of the global leaders in delivering
enabling technologies for recycling materials and achieving greater energy efficiency. But it was not
until 2015, when the Paris Agreement was adopted, that environmental stewardship became an

p16

integral part of corporate ESG initiatives in Japan. It took more than 35 years for Japanesebusinesses to catch up with AMITA in acknowledging the social implications of a circular business.
In recent years, global society has been going through an unprecedented level of volatility anduncertainty. The impact of climate change and geopolitical upheavals is so great on a global supply
chain that the industrial model of the modern times can no longer afford to take an uninterrupted
supply of natural resources and energy for granted. The day is over when business models driven bymass production, consumption, and disposal are taken as a given.

AMITA Group by the Numbers

Man-made environmental impact has crossed many of the planetary boundaries, or the earth’s safe

As of December 31, 2023

limits, including climate change and loss of biodiversity. Commercial and consumer markets havebeen getting smaller and smaller in resource-poor Japan, in which population is shrinking andmaterials and labor costs are surging. We believe that, to sustain business in such a challenging• Overview

1977

Listed on the Tokyo Stock Exchange’s Growth Market (stock code: 2195)

environment, one of the most viable options is to transform an economic model and a social structure
into ones that are driven by a circular supply chain, rather than a global linear supply chain, and thatembrace the cost of ESG initiatives, including human rights protection and environmental stewardship,

Established:• Employees

as positive investment for a sustainable future.

41
Percentage of women in the leadership team: 13.3%
Number of employees:

241

Number of employees who took parental leave during FY 2023:

The AMITA Group’s four-plus decades of history is about pursuing, developing, and operating a

9100%
Percentage of employees who said they are proud of working for AMITA: 74%

Percentage of employees who returned to work after taking parental leave:business model that emulates a natural ecosystem in which every life form is interrelated andinterdependent. Armed with these experiences, we are in an excellent position to help achieve asociety in which not only industrial sectors, but also society as a whole, are environmentally
sustainable. Our mission is to establish a truly sustainable society that upholds the dignity of human

Average age:

• Offices and facilities

lives. We hope this report will be informative and helpful for you to better understand the AMITA

Number of offices and facilities:

22 worldwide

Japan: 10 offices; 4 AMITA-operated resource-recycling plants and BIO facility;

Group’s strategic vision and initiatives, and that you will join forces with us in this challenging but

and 4 partners’ resource-recycling plants

rewarding endeavor.

Outside Japan: 3 offices and 1 AMITA-operated resource-recycling plant
June 2024
Editorial Team of AMITA HOLDINGS CO., LTD.

4.5 billion yen Operating profit margin: 10.4% Equity capital ratio: 36.6%• Consolidated
financialperformancefor FY 2023

Return on equity (ROE): 14.5% Return on invested capital (ROIC): 10.2%• Clients

Number of corporate and municipal clients:

Net sales:

Market capitalization:

9.4 billion yen

1,562
Number of corporate and municipal partners: 12 (FY 2023)

1About this report

Table of Contents• Message from the CVO

p2• How the AMITA Group Creates Value

p4• Financial Performance for FY 2023

p6

• Achievements in the Social Systems Design Business in FY 2023

p10

• Message from the CIOO: Long-Term Management Plan
for FY 2024 through 2030
• Key Strategies for the Groundwork Phase in FY 2024 and 2025

p14

• Our Leadership

p22• Nonfinancial Information: Sustainability Initiatives for FY2023

p24

In this annual report, we discuss what the AMITA Group accomplished for the fiscal year ended
December 31, 2023 (FY 2023), and present an overview of the Group’s Long-Term Management
Plan for FY 2024 through 2030.
The year 2024 marks the 45th anniversary of AMITA entering the circular business in 1979. At thetime, instead of focusing on the treatment of solid and liquid waste, we chose to pursue a bigger
goal of making the entire industrial sectors more environmentally sustainable. The key driver wascircular management of resources. Today, Japan has become one of the global leaders in delivering
enabling technologies for recycling materials and achieving greater energy efficiency. But it was not
until 2015, when the Paris Agreement was adopted, that environmental stewardship became an

p16

integral part of corporate ESG initiatives in Japan. It took more than 35 years for Japanesebusinesses to catch up with AMITA in acknowledging the social implications of a circular business.
In recent years, global society has been going through an unprecedented level of volatility anduncertainty. The impact of climate change and geopolitical upheavals is so great on a global supply
chain that the industrial model of the modern times can no longer afford to take an uninterrupted
supply of natural resources and energy for granted. The day is over when business models driven bymass production, consumption, and disposal are taken as a given.

AMITA Group by the Numbers

Man-made environmental impact has crossed many of the planetary boundaries, or the earth’s safe

As of December 31, 2023

limits, including climate change and loss of biodiversity. Commercial and consumer markets havebeen getting smaller and smaller in resource-poor Japan, in which population is shrinking andmaterials and labor costs are surging. We believe that, to sustain business in such a challenging• Overview

1977

Listed on the Tokyo Stock Exchange’s Growth Market (stock code: 2195)

environment, one of the most viable options is to transform an economic model and a social structure
into ones that are driven by a circular supply chain, rather than a global linear supply chain, and thatembrace the cost of ESG initiatives, including human rights protection and environmental stewardship,

Established:• Employees

as positive investment for a sustainable future.

41
Percentage of women in the leadership team: 13.3%
Number of employees:

241

Number of employees who took parental leave during FY 2023:

The AMITA Group’s four-plus decades of history is about pursuing, developing, and operating a

9100%
Percentage of employees who said they are proud of working for AMITA: 74%

Percentage of employees who returned to work after taking parental leave:business model that emulates a natural ecosystem in which every life form is interrelated andinterdependent. Armed with these experiences, we are in an excellent position to help achieve asociety in which not only industrial sectors, but also society as a whole, are environmentally
sustainable. Our mission is to establish a truly sustainable society that upholds the dignity of human

Average age:

• Offices and facilities

lives. We hope this report will be informative and helpful for you to better understand the AMITA

Number of offices and facilities:

22 worldwide

Japan: 10 offices; 4 AMITA-operated resource-recycling plants and BIO facility;

Group’s strategic vision and initiatives, and that you will join forces with us in this challenging but

and 4 partners’ resource-recycling plants

rewarding endeavor.

Outside Japan: 3 offices and 1 AMITA-operated resource-recycling plant
June 2024
Editorial Team of AMITA HOLDINGS CO., LTD.

4.5 billion yen Operating profit margin: 10.4% Equity capital ratio: 36.6%• Consolidated
financialperformancefor FY 2023

Return on equity (ROE): 14.5% Return on invested capital (ROIC): 10.2%• Clients

Number of corporate and municipal clients:

Net sales:

Market capitalization:

9.4 billion yen

1,562
Number of corporate and municipal partners: 12 (FY 2023)

1

Message from the CVO

costs and risks, which will result in a steady stream ofrevenue and profit. More specifically, we offer
comprehensive solutions that integrate our nonlinear
business models, such as the closed-loop resource
recycling service, environmental assessment andcertification service, cloud-based environmental
management service, and assistance in sustainable

AMITA Turns Social Anxiety
into Something Positivein Times of Uncertainty

Long-term strategies and key initiatives (See pages 14 and 15)

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

FY 2021 through 2023: The AMITA Group at a critical crossroads amid a social upheaval
April 1, 2024, marked the 45th anniversary of the AMITAGroup’s launch of its circular business. Since its founding,the Group has been at the forefront in helping build asustainable society in which people’s well-being andsociety’s welfare must go hand in hand. During FY 2021
through 2023, the Group was at a critical crossroads.
When the devastating COVID-19 pandemic broke out inearly 2020, the first thought that came to my mind wasthat accepted social norms would change forever. At theheight of the health crisis, people’s freedom to move
about and other inherent rights were restricted to someextent by the authorities. In growing anxiety, people
naturally sought stability and security. Whether they like itor not, it could be a path toward a controlling society thatdemands people’s loyalty to higher authorities. The
society we envision is not a controlling society that forces

people to give up freedom for stability, but is one in whichpeople feel more secure and safe through engagementwith others. In other words, it is a society sustained byconscious and continuous engagement among its
citizens who are freed from a sense of isolation—a sourceof anxiety and unhappiness. To accelerate the pace ofturning this vision into reality, we launched the Social
Systems Design Business in FY 2021.
The Earnings Presentation for FY 2023, available on our
website, reviews our challenges and achievements
during the Business Development Phase from FY 2021
through 2023, with a focus on the Social Systems Design
Business. I hope you find it informative.
Scan the code for
Earnings Presentation for FY 2023.

Our sustainable business strategy: Pursuing circular design and aligning nonlinear
business models into a larger linear model
During the Business Development Phase in FY 2021
through 2023, we transformed our business model by
consolidating our legacy businesses into the Social
Systems Design Business in order to accelerate the paceof developing a market for sustainability solutions. Thistransformation enabled us to save on the common
human, physical, financial, and information costs andrisks associated with offering solutions to clients, and to
pursue a steady stream of revenue and profit.

Society is always full of uncertainties by nature. Stability
is not a natural state in which society thrives. We predictthat nonlinear business models will thrive in increasingly2

unstable and unpredictable circumstances for the next
few decades.
The AMITA Group’s core competencies lie in its extensive
know-how in turning the unpredictable into the predictable
and industry-leading expertise in circular design. Since its
founding, the Group has leveraged these corecompetencies to offer several unique services to businessclients, including (1) the closed-loop recycling service thatconverts industrial waste of unpredictable nature andvolume into usable, value-added materials; (2) theenvironmental assessment and certification service thatvisualizes traceability of forest and fishery resources; and(3) the cloud-based environmental management service.
The key to a successful nonlinear business model is to
manage unpredictable risks. The AMITA Group pursues abusiness strategy for aligning several nonlinear businessmodels into a larger linear model. Under this strategy, we
integrate several nonlinear business models to increase
our share of customer wallet and the turnover of ourservice offerings. This enables us to create greatersynergy among our business units and reduce operating

initiative are greater engagement among all stakeholders
in a community, and a continuous circulation of
resources and information. In 2024, we started
developing MEGURU COMPLEX as one of the solutions
to help municipalities achieve greater community
sustainability, for deployment scheduled for FY 2027 andlater. (See page 18)

The AMITA Group is pursuing a long-term strategy
focused on designing an infrastructure that supports anecosystem society in which resources and information
are interrelated and circulated. Indications are observedthat another social upheaval is likely to occur by 2030.
Should that happen, people will seek the means to ease
their anxiety and sense of isolation, just as they did at theheight of the COVID-19 pandemic a couple of years ago.
Our long-term corporate strategy is to design asustainable infrastructure that eases people’s collective
anxiety in a time of social upheaval.

On April 1, 2024, AMITA HOLDINGS took the initiative in
helping the launch of the Ecosystem Society Agency(ESA), which provides a platform for public-private
collaboration in developing a social model built on
circularity and mutually beneficial engagement. Public- andprivate-sector parties have joined forces under the sharedvision of establishing an ecosystem society. (See page 20)

To put this strategy into practice, we undertake thefollowing three key initiatives:

Cyano Project(See pages 10 and 11)

While pursuing these strategies and initiatives, however,the AMITA Group faced an innovator’s dilemma thatslowed us down. Deeply entrenched in extensive
experiences accumulated over the years and abusiness-as-usual mentality, we were regrettably slow toreassess how best we could allocate our operating
resources and were ill-prepared to inspire employees toembrace changes with a positive mindset. That is why
we have decided to do things differently. Early in FY
2024, the Group started to undergo an organizationaltransformation that included updating our talentmanagement and development policy and programs, aswell as our corporate management practices, in order tobecome better poised to keep creating greater value. At
the same time, we will work more closely with corporate
and municipal partners to tap their expertise, resources,and networks to complement ours. We hope theseapproaches will help us become more agile and resilient
in a changing operating environment.

Assistance in achieving greater corporate sustainability basedon the ESG framework

Co-Creation City

(See page 18)

Initiative to bring residents, businesses, and municipal authorities
together in designing and developing a sustainable community

MEGURU PLATFORM(See page 14)

Platform for achieving greater social sustainability byfacilitating a continuous resource circulation inside and outside
a community and enhancing engagement among stakeholders

The Co-Creation City (CCC) Initiative is to facilitate
collaboration among residents, businesses, andmunicipal authorities to build a circular, sustainablecommunity that fosters greater engagement, diversity,and cultural identity. Greater engagement amongresidents can bolster the vitality of a community, evenwhen its population is shrinking. The key drivers for thisTransforming our business by aligning nonlinear business models
into a larger linear model to make our revenue stream more robust and sustainable
Cloud-based environmental
management service

Clients

Enhance corporate Enhance community
sustainability
sustainability

Enhance social
sustainability

Co-Creation City

MEGURU
PLATFORM

Using ICT solutions to help clients reduce
environmental costs and risks

HumancapitalPhysical
capitalSustainablecommunity
development

Financial Information Relationships Know-how
capitalClosed-loop recycling ofindustrial waste
Producing value-added
alternative materials

Environmental assessment
and certification service
Visualizing the value of forest
and fishery resources

Each business
unit has grownlarger, driving up
redundant
operating costs.

Sustainable community
development
Making better use ofunused local resources

Cloud-based
environmental
management
serviceBusinesstransformation

Looking back on the post-industrial-revolution period, amodern industrialized society relied on linear businessmodels that used underground natural resources asreliable input to keep generating predictable output, oradded value, sustained by mass production andconsumption. Today, the basis that long supported theselinear business models has become unstable, amid
depleting natural resources, climate change, and a
volatile global geopolitical landscape.

community development. These integrated solutions
ensure a steady revenue and profit stream for us. These
integrated services also enable corporate and municipal
clients to achieve greater corporate and community
sustainability in the best interests at the organizationlevel–ranging from developing a To-Be scenario toplaying it out every day.

MEGURUCOMPLEXMEGURUFACTORY

Create greater synergy
to reduce business risks

Environmental
assessment andcertification
service
Closed-loop
recycling ofindustrial waste

Provideinformation
related toa circularsupply chain

MEGURUSTATION®

Cut redundant
operating costs

Operating resources

HumancapitalPhysical
capitalFinancial
capitalInformation

Create greater
value

Intangible assets

Relationships

Know-how3

Message from the CVO

costs and risks, which will result in a steady stream ofrevenue and profit. More specifically, we offer
comprehensive solutions that integrate our nonlinear
business models, such as the closed-loop resource
recycling service, environmental assessment andcertification service, cloud-based environmental
management service, and assistance in sustainable

AMITA Turns Social Anxiety
into Something Positivein Times of Uncertainty

Long-term strategies and key initiatives (See pages 14 and 15)

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

FY 2021 through 2023: The AMITA Group at a critical crossroads amid a social upheaval
April 1, 2024, marked the 45th anniversary of the AMITAGroup’s launch of its circular business. Since its founding,the Group has been at the forefront in helping build asustainable society in which people’s well-being andsociety’s welfare must go hand in hand. During FY 2021
through 2023, the Group was at a critical crossroads.
When the devastating COVID-19 pandemic broke out inearly 2020, the first thought that came to my mind wasthat accepted social norms would change forever. At theheight of the health crisis, people’s freedom to move
about and other inherent rights were restricted to someextent by the authorities. In growing anxiety, people
naturally sought stability and security. Whether they like itor not, it could be a path toward a controlling society thatdemands people’s loyalty to higher authorities. The
society we envision is not a controlling society that forces

people to give up freedom for stability, but is one in whichpeople feel more secure and safe through engagementwith others. In other words, it is a society sustained byconscious and continuous engagement among its
citizens who are freed from a sense of isolation—a sourceof anxiety and unhappiness. To accelerate the pace ofturning this vision into reality, we launched the Social
Systems Design Business in FY 2021.
The Earnings Presentation for FY 2023, available on our
website, reviews our challenges and achievements
during the Business Development Phase from FY 2021
through 2023, with a focus on the Social Systems Design
Business. I hope you find it informative.
Scan the code for
Earnings Presentation for FY 2023.

Our sustainable business strategy: Pursuing circular design and aligning nonlinear
business models into a larger linear model
During the Business Development Phase in FY 2021
through 2023, we transformed our business model by
consolidating our legacy businesses into the Social
Systems Design Business in order to accelerate the paceof developing a market for sustainability solutions. Thistransformation enabled us to save on the common
human, physical, financial, and information costs andrisks associated with offering solutions to clients, and to
pursue a steady stream of revenue and profit.

Society is always full of uncertainties by nature. Stability
is not a natural state in which society thrives. We predictthat nonlinear business models will thrive in increasingly2

unstable and unpredictable circumstances for the next
few decades.
The AMITA Group’s core competencies lie in its extensive
know-how in turning the unpredictable into the predictable
and industry-leading expertise in circular design. Since its
founding, the Group has leveraged these corecompetencies to offer several unique services to businessclients, including (1) the closed-loop recycling service thatconverts industrial waste of unpredictable nature andvolume into usable, value-added materials; (2) theenvironmental assessment and certification service thatvisualizes traceability of forest and fishery resources; and(3) the cloud-based environmental management service.
The key to a successful nonlinear business model is to
manage unpredictable risks. The AMITA Group pursues abusiness strategy for aligning several nonlinear businessmodels into a larger linear model. Under this strategy, we
integrate several nonlinear business models to increase
our share of customer wallet and the turnover of ourservice offerings. This enables us to create greatersynergy among our business units and reduce operating

initiative are greater engagement among all stakeholders
in a community, and a continuous circulation of
resources and information. In 2024, we started
developing MEGURU COMPLEX as one of the solutions
to help municipalities achieve greater community
sustainability, for deployment scheduled for FY 2027 andlater. (See page 18)

The AMITA Group is pursuing a long-term strategy
focused on designing an infrastructure that supports anecosystem society in which resources and information
are interrelated and circulated. Indications are observedthat another social upheaval is likely to occur by 2030.
Should that happen, people will seek the means to ease
their anxiety and sense of isolation, just as they did at theheight of the COVID-19 pandemic a couple of years ago.
Our long-term corporate strategy is to design asustainable infrastructure that eases people’s collective
anxiety in a time of social upheaval.

On April 1, 2024, AMITA HOLDINGS took the initiative in
helping the launch of the Ecosystem Society Agency(ESA), which provides a platform for public-private
collaboration in developing a social model built on
circularity and mutually beneficial engagement. Public- andprivate-sector parties have joined forces under the sharedvision of establishing an ecosystem society. (See page 20)

To put this strategy into practice, we undertake thefollowing three key initiatives:

Cyano Project(See pages 10 and 11)

While pursuing these strategies and initiatives, however,the AMITA Group faced an innovator’s dilemma thatslowed us down. Deeply entrenched in extensive
experiences accumulated over the years and abusiness-as-usual mentality, we were regrettably slow toreassess how best we could allocate our operating
resources and were ill-prepared to inspire employees toembrace changes with a positive mindset. That is why
we have decided to do things differently. Early in FY
2024, the Group started to undergo an organizationaltransformation that included updating our talentmanagement and development policy and programs, aswell as our corporate management practices, in order tobecome better poised to keep creating greater value. At
the same time, we will work more closely with corporate
and municipal partners to tap their expertise, resources,and networks to complement ours. We hope theseapproaches will help us become more agile and resilient
in a changing operating environment.

Assistance in achieving greater corporate sustainability basedon the ESG framework

Co-Creation City

(See page 18)

Initiative to bring residents, businesses, and municipal authorities
together in designing and developing a sustainable community

MEGURU PLATFORM(See page 14)

Platform for achieving greater social sustainability byfacilitating a continuous resource circulation inside and outside
a community and enhancing engagement among stakeholders

The Co-Creation City (CCC) Initiative is to facilitate
collaboration among residents, businesses, andmunicipal authorities to build a circular, sustainablecommunity that fosters greater engagement, diversity,and cultural identity. Greater engagement amongresidents can bolster the vitality of a community, evenwhen its population is shrinking. The key drivers for thisTransforming our business by aligning nonlinear business models
into a larger linear model to make our revenue stream more robust and sustainable
Cloud-based environmental
management service

Clients

Enhance corporate Enhance community
sustainability
sustainability

Enhance social
sustainability

Co-Creation City

MEGURU
PLATFORM

Using ICT solutions to help clients reduce
environmental costs and risks

HumancapitalPhysical
capitalSustainablecommunity
development

Financial Information Relationships Know-how
capitalClosed-loop recycling ofindustrial waste
Producing value-added
alternative materials

Environmental assessment
and certification service
Visualizing the value of forest
and fishery resources

Each business
unit has grownlarger, driving up
redundant
operating costs.

Sustainable community
development
Making better use ofunused local resources

Cloud-based
environmental
management
serviceBusinesstransformation

Looking back on the post-industrial-revolution period, amodern industrialized society relied on linear businessmodels that used underground natural resources asreliable input to keep generating predictable output, oradded value, sustained by mass production andconsumption. Today, the basis that long supported theselinear business models has become unstable, amid
depleting natural resources, climate change, and a
volatile global geopolitical landscape.

community development. These integrated solutions
ensure a steady revenue and profit stream for us. These
integrated services also enable corporate and municipal
clients to achieve greater corporate and community
sustainability in the best interests at the organizationlevel–ranging from developing a To-Be scenario toplaying it out every day.

MEGURUCOMPLEXMEGURUFACTORY

Create greater synergy
to reduce business risks

Environmental
assessment andcertification
service
Closed-loop
recycling ofindustrial waste

Provideinformation
related toa circularsupply chain

MEGURUSTATION®

Cut redundant
operating costs

Operating resources

HumancapitalPhysical
capitalFinancial
capitalInformation

Create greater
value

Intangible assets

Relationships

Know-how3How the AMITA Group Creates Value
Maintaining constructive engagement with stakeholders increases operating capital
The AMITA Group’s articles of incorporation state that our
primary purpose is to increase natural and relational
capital, which serves as a binding principle for everything
we do. Based on this principle, we have placed investingin maintaining intense engagement with stakeholders at
the core of our corporate strategy.

Toward the goal of achieving an ecosystem society by FY
2030, as outlined in AMITA Vision 2030, we have defined FY
2024 and 2025 as the Groundwork Phase. In this phase, we
intend to work more closely with our stakeholders toaccelerate the pace of developing new businesses andservices. We will also raise operating capital from stakeholders
who buy into our mission and vision.

Operating capital keeps growi

Input to FY 2023

ng t hroug
hMakeup of AMITA Group’s capitalas of December 31, 2022

Financial capital

FY 2022 results

609 million yen¹

Operating profit

41.4%

Equity capital ratio

20.5 billion yen²

Market capitalization

1. Amounts rounded down to the nearest million yen
2. Amounts rounded down to the second decimal place. Based on
the closing quote of the Company’s stock as of the last trading
day of December 2022.

Human capital

Facilitating cross-industry partnerships, including
taking the initiative in helping the launch of the
Ecosystem Society Agency

239

Number of employees

Tangible and intangible capital· Network of more than 300 recycling service providers· Infrastructure for gathering and managing information
about industrial waste· System for gathering information about residents’behavior patters and waste disposal· AMITA’s website dedicated to providing information
about sustainability solutions, getting more than
100,000 page views a month· Collaboration with other businesses, municipalities, anduniversities(See pages 19, 20, and 24-27)

Corporate membership of J-CEP

44
9Information capital· Information about industrial waste and recycledmaterials, gathered from our recycling service network
and information infrastructure· Information about community residents’ behavior
patterns and resource consumption, gathered fromMEGURU STATION®

ral

pr
oc

As illustrated below, building and maintaining constructive
engagement with a broad range of stakeholders is how
the AMITA Group creates value.

Natural capital and relational capitalare enhanced in a virtuous spiral as
our business grows, making society
wholesome(See page 26)

Increasing
relational
capitalSociety
Stakeholders

Outcome• Help corporate clients optimize their supply chains to drive a circular
economy and achieve carbon neutrality and nature positivity• Produce circular materials and collect used materials to reduce waste
bound for incineration and landfill, preserve natural resources, andprevent or mitigate damage to the environment• Offer environmental assessment and certification services to help
corporate clients exercise responsible management and use of forest
and fishery resources, and preserve and restore natural capital• Undertake climate-positive initiatives to reduce the Group’s GHG
emissions• Preserve mines to reduce health risks on mine workers and residents,
as well as to prevent illegal labor practices• Operate MEGURU STATION® to help residents extend their healthy
life expectancies and build a mutually supportive, autonomous
community

Increase operating capitaland enterprise value

Output of FY 2023
FY 2023 results

YoY
percentagechangeBusiness operations
outside Japan(See page 12)

As of December 31, 2023

4,536 million yen¹

Down 6.0%

472 million yen¹

Down 22.6%

Equity capital ratio

36.6%

Down 4.8 points

Market capitalization

9.4 billion yen²

Down 54.1%

Net sales
Operating profitCorecompetencies

Scan the codefor details.

1. Amounts rounded down to the nearest million yen
2. Amounts rounded down to the second decimal place. Based on
the closing quote of the Company’s stock as of the last trading
day of December 2023.

• Turning
the unpredictable into
the predictable• Circular design

Business model
Assisting in developinga circular supply chain andproviding BPO service

Cyano Project(See pages 10 and 11)
Comprehensive ESG solutions to help corporateclients achieve greater corporate sustainability anddevelop circular business models

Corporate
cultureWhat is Value?
Pursuing greater value

Activity
AMITA Group’s value drivers

Number of corporate clients
Circular materials
produced
Number of subscribers to
our ICT services

24
145,000 t

5,634 offices** Subscribers to our Smart Management service

4

development programs to help employees improve theirresourcefulness and increase their social engagement. This
will enable us to keep creating greater value individually andas a team.

Increasing
naturalcapitales

Maintain constructive engagementwith a broad range of stakeholders

FY 2022 results

Business partnerships

spi

Invest ininitiating
and maintaining
engagement withstakeholders

Raise operating
capital fromstakeholders that buy
into AMITA’s mission
and new businessventures

As of December 31, 2022

thisIdentify unmet social
needs and formulate anext-phasemarket-development
strategys

4,824 million yen¹

Net sales

More specifically, our investment in maintaining
constructive engagement with stakeholders includes
expanding the scope and scale of business partnerships
with other like-minded companies around the globe, as well
as developing and operating a cross-industry, cross-sector
public-private collaborative platform for facilitating social
and business innovations from a long-term perspective. In
addition, we will update our talent management and241

Number of employees

FY 2023 results
Corporate membershipof J-CEP

59

Business partnerships

9

Operating the resource-recycling businessand import/export business for alternative
materials in Malaysia

Circular materials
produced in Malaysia

33,574 t

MEGURU STATION®
Environmental assessment
and certification service(See page 12)
Assessing and certifying adherence tostandards established by internationallyrecognized ecolabels to ensure sustainableprocurement of materials
Number of corporate clientsassessed for forest certification¹
Number of corporate clientsassessed for fishery certification²(See page 13)
A resource-collection site that promotes
mutually supportive engagement amongcommunity residents and provides
comprehensive solutions to community,
business, and social issues
locations in
Number of locations 37communities

767

Number of new
registered users

1,156

165

Household waste
collected

38 t

1. Total number of assessments conducted for FSC® FM,
FSC® CoC, and FSC® project certifications
2. Total number of assessments conducted for
MSC/ASC CoC, ASC aquaculture, and ASC-MSC
seaweed certifications

5How the AMITA Group Creates Value
Maintaining constructive engagement with stakeholders increases operating capital
The AMITA Group’s articles of incorporation state that our
primary purpose is to increase natural and relational
capital, which serves as a binding principle for everything
we do. Based on this principle, we have placed investingin maintaining intense engagement with stakeholders at
the core of our corporate strategy.

Toward the goal of achieving an ecosystem society by FY
2030, as outlined in AMITA Vision 2030, we have defined FY
2024 and 2025 as the Groundwork Phase. In this phase, we
intend to work more closely with our stakeholders toaccelerate the pace of developing new businesses andservices. We will also raise operating capital from stakeholders
who buy into our mission and vision.

Operating capital keeps growi

Input to FY 2023

ng t hroug
hMakeup of AMITA Group’s capitalas of December 31, 2022

Financial capital

FY 2022 results

609 million yen¹

Operating profit

41.4%

Equity capital ratio

20.5 billion yen²

Market capitalization

1. Amounts rounded down to the nearest million yen
2. Amounts rounded down to the second decimal place. Based on
the closing quote of the Company’s stock as of the last trading
day of December 2022.

Human capital

Facilitating cross-industry partnerships, including
taking the initiative in helping the launch of the
Ecosystem Society Agency

239

Number of employees

Tangible and intangible capital· Network of more than 300 recycling service providers· Infrastructure for gathering and managing information
about industrial waste· System for gathering information about residents’behavior patters and waste disposal· AMITA’s website dedicated to providing information
about sustainability solutions, getting more than
100,000 page views a month· Collaboration with other businesses, municipalities, anduniversities(See pages 19, 20, and 24-27)

Corporate membership of J-CEP

44
9Information capital· Information about industrial waste and recycledmaterials, gathered from our recycling service network
and information infrastructure· Information about community residents’ behavior
patterns and resource consumption, gathered fromMEGURU STATION®

ral

pr
oc

As illustrated below, building and maintaining constructive
engagement with a broad range of stakeholders is how
the AMITA Group creates value.

Natural capital and relational capitalare enhanced in a virtuous spiral as
our business grows, making society
wholesome(See page 26)

Increasing
relational
capitalSociety
Stakeholders

Outcome• Help corporate clients optimize their supply chains to drive a circular
economy and achieve carbon neutrality and nature positivity• Produce circular materials and collect used materials to reduce waste
bound for incineration and landfill, preserve natural resources, andprevent or mitigate damage to the environment• Offer environmental assessment and certification services to help
corporate clients exercise responsible management and use of forest
and fishery resources, and preserve and restore natural capital• Undertake climate-positive initiatives to reduce the Group’s GHG
emissions• Preserve mines to reduce health risks on mine workers and residents,
as well as to prevent illegal labor practices• Operate MEGURU STATION® to help residents extend their healthy
life expectancies and build a mutually supportive, autonomous
community

Increase operating capitaland enterprise value

Output of FY 2023
FY 2023 results

YoY
percentagechangeBusiness operations
outside Japan(See page 12)

As of December 31, 2023

4,536 million yen¹

Down 6.0%

472 million yen¹

Down 22.6%

Equity capital ratio

36.6%

Down 4.8 points

Market capitalization

9.4 billion yen²

Down 54.1%

Net sales
Operating profitCorecompetencies

Scan the codefor details.

1. Amounts rounded down to the nearest million yen
2. Amounts rounded down to the second decimal place. Based on
the closing quote of the Company’s stock as of the last trading
day of December 2023.

• Turning
the unpredictable into
the predictable• Circular design

Business model
Assisting in developinga circular supply chain andproviding BPO service

Cyano Project(See pages 10 and 11)
Comprehensive ESG solutions to help corporateclients achieve greater corporate sustainability anddevelop circular business models

Corporate
cultureWhat is Value?
Pursuing greater value

Activity
AMITA Group’s value drivers

Number of corporate clients
Circular materials
produced
Number of subscribers to
our ICT services

24
145,000 t

5,634 offices** Subscribers to our Smart Management service

4

development programs to help employees improve theirresourcefulness and increase their social engagement. This
will enable us to keep creating greater value individually andas a team.

Increasing
naturalcapitales

Maintain constructive engagementwith a broad range of stakeholders

FY 2022 results

Business partnerships

spi

Invest ininitiating
and maintaining
engagement withstakeholders

Raise operating
capital fromstakeholders that buy
into AMITA’s mission
and new businessventures

As of December 31, 2022

thisIdentify unmet social
needs and formulate anext-phasemarket-development
strategys

4,824 million yen¹

Net sales

More specifically, our investment in maintaining
constructive engagement with stakeholders includes
expanding the scope and scale of business partnerships
with other like-minded companies around the globe, as well
as developing and operating a cross-industry, cross-sector
public-private collaborative platform for facilitating social
and business innovations from a long-term perspective. In
addition, we will update our talent management and241

Number of employees

FY 2023 results
Corporate membershipof J-CEP

59

Business partnerships

9

Operating the resource-recycling businessand import/export business for alternative
materials in Malaysia

Circular materials
produced in Malaysia

33,574 t

MEGURU STATION®
Environmental assessment
and certification service(See page 12)
Assessing and certifying adherence tostandards established by internationallyrecognized ecolabels to ensure sustainableprocurement of materials
Number of corporate clientsassessed for forest certification¹
Number of corporate clientsassessed for fishery certification²(See page 13)
A resource-collection site that promotes
mutually supportive engagement amongcommunity residents and provides
comprehensive solutions to community,
business, and social issues
locations in
Number of locations 37communities

767

Number of new
registered users

1,156

165

Household waste
collected

38 t

1. Total number of assessments conducted for FSC® FM,
FSC® CoC, and FSC® project certifications
2. Total number of assessments conducted for
MSC/ASC CoC, ASC aquaculture, and ASC-MSC
seaweed certifications

5Financial Performance for FY 2023
Financial Highlights
Consolidated Financial Results(In millions of yen; amounts rounded down to the nearest million yen)

Note: Numbers in parentheses in this chart are the initial performance guidance the Company announced at the beginning of the year.

4,744

5,157

4,608

Key Financial Metrics
Operating Profit Margin (%)
10.9

4,824

(5,283)Results for FY 2023
10.4

6.3

5.0

4,536

12.6

Operating profit was down YoY as a result of a decrease in net
sales and an increase in SG&A.
Revenue from high-margin Cyano Project decreased.

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Ordinary Profit Margin (%)

11.7

Results for FY 2023
The share of profit of entities accounted for by using the equity
method decreased from our Malaysian operations and Codo
Advisory.

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Net sales

FY 2019

FY 2020

FY 2021

FY 2022

FY 2023

Return on Equity (ROE) (%)
560
388
289 292

236 246629 632

715
609

63.0

47.0
47.0

531

Results for FY 2023

55.9
30.8

(887)

(774) 530

472

(620)

An increase in retained earnings bolstered equity capital.

14.5

Annual profit decreased.

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

308

162
Ordinary
profit

14.8

6.3

5.2

Operatingprofit12.2

Return on Invested Capital (ROIC) (%)

Results for FY 2023

Profit

6.2

11.6

22.4

17.7

Non-current assets increased as a result of expanding thesilicon-recycling capacity.

10.2

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Operating profit decreased.
Note: The amount of invested capital was obtained by the following
formula: (Trade receivables + Inventories - Trade payables) +Non-current assets, which looks at the management of funds.

Fell short of the initial guidance for FY 2023 due to a challenging operating environment
Abbreviated Statement of Cash Flows and Balance Sheet(In millions of yen; amounts rounded down to the nearest million yen)

During FY 2023, the AMITA Group continued toinvest aggressively in sustaining innovation andlaying the groundwork for business growth,
including investment in talent development.
However, we were unable to achieve sales growth
to compensate for those investments. This wasprimarily because we were slow in signing new
corporate clients to Cyano Project and processeda smaller amount of circular materials than in theprevious year, as Japanese businesses wereincreasingly concerned about their short-term
financial performance given the challenging
operating environment. Combined withslower-than-expected materials recycling
operations in Malaysia, the Group posted smaller
net sales, operating profit, ordinary profit, andprofit for FY 2023 than in FY 2022 and than the
Company’s initial guidance for the year.

Cash flows

Net sales

OperatingprofitOrdinary
profitProfit6

Net sales for FY 2023 decreased by ¥288M year on year to¥4,536M due to: (1) a change in accounting treatment as aresult of transferring business at our former Kawasaki
Sustainable Resource Management Center to Sanyu Plant
Service Co., Ltd.; (2) slower-than-expected signing of Cyano
Project contracts; and (3) the weaker sales of recycled valuable
and non-ferrous metal materials outside Japan.
Operating profit decreased by ¥137M year on year to ¥472M asa result of an increase in SG&A, including additional investment
in talent management

Ordinary profit decreased by ¥184M year on year to ¥530M,
reflecting decreases in operating profit and in the share of profit
of entities accounted for by using the equity method from our
Malaysian operations, as a tax credit for green investment was
no longer granted.
Profit decreased by ¥222M year on year to ¥308M, reflecting
primarily a decrease in ordinary profit.

Balance sheet

FY 2019

FY 2020

FY 2021

FY 2022

FY 2023

Net cash provided by operating activities

430

391

873

585

725

Net cash provided by (used in) investing activities

(166)

(29)

(73)

(69)

(441)

Net cash provided by (used in) financing activities

(152)

96

(649)

(142)

754

Total assets

3,826

4,311

4,427

4,824

6,175

Liabilities

3,402

3,502

2,972

2,823

3,909

Net assets

424

809

1,455

2,001

2,266

Retained earnings

(292)

96

728

1,225

1,480

Shareholders’ equity

426

815

1,448

1,955

2,217

Equity capital

424

809

1,455

1,995

2,260

Scan the code forFinancial Statement for FY 2023.

7

Financial Performance for FY 2023
Financial Highlights
Consolidated Financial Results(In millions of yen; amounts rounded down to the nearest million yen)

Note: Numbers in parentheses in this chart are the initial performance guidance the Company announced at the beginning of the year.

4,744

5,157

4,608

Key Financial Metrics
Operating Profit Margin (%)
10.9

4,824

(5,283)Results for FY 2023
10.4

6.3

5.0

4,536

12.6

Operating profit was down YoY as a result of a decrease in net
sales and an increase in SG&A.
Revenue from high-margin Cyano Project decreased.

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Ordinary Profit Margin (%)

11.7

Results for FY 2023
The share of profit of entities accounted for by using the equity
method decreased from our Malaysian operations and Codo
Advisory.

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Net sales

FY 2019

FY 2020

FY 2021

FY 2022

FY 2023

Return on Equity (ROE) (%)
560
388
289 292

236 246629 632

715
609

63.0

47.0
47.0

531

Results for FY 2023

55.9
30.8

(887)

(774) 530

472

(620)

An increase in retained earnings bolstered equity capital.

14.5

Annual profit decreased.

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

308

162
Ordinary
profit

14.8

6.3

5.2

Operatingprofit12.2

Return on Invested Capital (ROIC) (%)

Results for FY 2023

Profit

6.2

11.6

22.4

17.7

Non-current assets increased as a result of expanding thesilicon-recycling capacity.

10.2

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Operating profit decreased.
Note: The amount of invested capital was obtained by the following
formula: (Trade receivables + Inventories - Trade payables) +Non-current assets, which looks at the management of funds.

Fell short of the initial guidance for FY 2023 due to a challenging operating environment
Abbreviated Statement of Cash Flows and Balance Sheet(In millions of yen; amounts rounded down to the nearest million yen)

During FY 2023, the AMITA Group continued toinvest aggressively in sustaining innovation andlaying the groundwork for business growth,
including investment in talent development.
However, we were unable to achieve sales growth
to compensate for those investments. This wasprimarily because we were slow in signing new
corporate clients to Cyano Project and processeda smaller amount of circular materials than in theprevious year, as Japanese businesses wereincreasingly concerned about their short-term
financial performance given the challenging
operating environment. Combined withslower-than-expected materials recycling
operations in Malaysia, the Group posted smaller
net sales, operating profit, ordinary profit, andprofit for FY 2023 than in FY 2022 and than the
Company’s initial guidance for the year.

Cash flows

Net sales

OperatingprofitOrdinary
profitProfit6

Net sales for FY 2023 decreased by ¥288M year on year to¥4,536M due to: (1) a change in accounting treatment as aresult of transferring business at our former Kawasaki
Sustainable Resource Management Center to Sanyu Plant
Service Co., Ltd.; (2) slower-than-expected signing of Cyano
Project contracts; and (3) the weaker sales of recycled valuable
and non-ferrous metal materials outside Japan.
Operating profit decreased by ¥137M year on year to ¥472M asa result of an increase in SG&A, including additional investment
in talent management

Ordinary profit decreased by ¥184M year on year to ¥530M,
reflecting decreases in operating profit and in the share of profit
of entities accounted for by using the equity method from our
Malaysian operations, as a tax credit for green investment was
no longer granted.
Profit decreased by ¥222M year on year to ¥308M, reflecting
primarily a decrease in ordinary profit.

Balance sheet

FY 2019

FY 2020

FY 2021

FY 2022

FY 2023

Net cash provided by operating activities

430

391

873

585

725

Net cash provided by (used in) investing activities

(166)

(29)

(73)

(69)

(441)

Net cash provided by (used in) financing activities

(152)

96

(649)

(142)

754

Total assets

3,826

4,311

4,427

4,824

6,175

Liabilities

3,402

3,502

2,972

2,823

3,909

Net assets

424

809

1,455

2,001

2,266

Retained earnings

(292)

96

728

1,225

1,480

Shareholders’ equity

426

815

1,448

1,955

2,217

Equity capital

424

809

1,455

1,995

2,260

Scan the code forFinancial Statement for FY 2023.

7

Financial and Investor Relations Initiatives to Support the Group’s Business Growth
Financial Performance for FY 2023

The AMITA Group’s top priority is to sustain business operations to achieve AMITA Vision 2030, even under a volatilebusiness environment. Our financial policy supports this effort as part of increasing the Group’s enterprise value andsharing a reasonable level of profit with shareholders consistently. Primary considerations for our financial initiatives are
growth potential, profitability, capital efficiency, and low risks.
In our IR initiatives, we keep investors and analysts informed of our business strategies and operations to gain their
buy-in.

Financial Mechanism
for Increasing ourEnterprise Value

Increase the Group’s
enterprise value

Expanding our silicon-recycling capacity
as part of investment in sustaining revenue growth
We invested ¥409M in expanding the silicon-recycling
capacity at our Kitakyushu Sustainable Resource
Management Center. An additional recycling line isscheduled to become operational in July 2024.
Bolstered by added capacity, our production of recycled
silicon for FY 2024 is projected to increase by 20% overthe previous year.

Canceled share acquisition rights to raise funds
IR initiatives• Provide regular updates
on business andfinancial performance• Enhance investor
engagement efforts

Increase revenue
from business operations

Generate
cash(See pages 10-13)(See pages 6 and 7)

Relationship-building with other parties

Key strategic
investments

Expand the scope and scale ofpublic-private-academic partnerships(See pages
24 and 25)

Talent development
Hire and develop talent to keep creating greater
value as an enterprise

In February 2024, we canceled share acquisition rights toraise funds, initiated in 2022, after reviewing our capital
policy and taking into consideration a projected market
environment, our stock price performance, and thenumber of exercised share acquisition rights to date. The
17-plus million yen already raised through exercisedrights was spent on developing a blockchain-based
system. The projects originally scheduled to be financed
by raised funds are to be funded by our on-hand cash
and bank borrowings.

IR Achievements and Challenges in FY 2023

(See page 27)

Capital expenditure and R&D
Upgrade hardware and software solutions forour businesses with high growth potential

Returnprofit toshareholders

Make our financial base more robust and resilient

Key Financial Initiatives Undertaken during FY 2023
Borrowed money from banks to mitigate risks and make our financial base more robust and resilient
We borrowed a total of ¥700M from banks in December 2023 and January 2024. This was intended to increase cash on
hand as a hedge against rising interest rates, as well as to make our financial base more robust and resilient, necessary
to sustain business growth. With these borrowings, the Group’s equity capital ratio declined to 36.6%, compared withthe end of FY 2022, which was well within an acceptable range for the Group.

We shared as much information as possible about the
AMITA Group’s business and financial performance via
reports and press releases with a broad range ofstakeholders in Japan and abroad. Recognized to havethe potential to sustain the growth of its enterprise value,
AMITA HOLDINGS was chosen as one of 200
constituents of the JPX-Nikkei Mid-and-Small Cap Index
for 2023.

During FY 2024, we intend to undertake the following
initiatives to address pressing issues and increase theGroup’s enterprise value:• Take action outlined in the Medium-Term Management
Plan to bring sales and profit back to growth• Continue to step up IR initiatives• Start talking with our key shareholders about a potential
partial sale of treasury stock

As a result of less-than-stellar financial performance,
however, our stock price continued to decline during FY
2023. Our tradable share ratio was 23.3% as ofDecember 31, 2023, which was below the minimum of
25% required to meet TSE’s Continued Listing Criteria for
the Growth Market.
We have until December 31, 2026, to complete action toremain eligible to be listed on the Growth Market.

Year-end Dividend
Year-end dividend rates for FY 2023 and FY 2024 (guidance) are
shown in the table at right. We intend to continue to return areasonable level of profit to our shareholders, taking into
consideration investment necessary to sustain innovation andbusiness growth, as well as annual business performance.
For the Company’s dividend policy, visit the Investor Section of
our company website.

8

The number of our silicon-recycling lines is to increase
from the current two to three.

FY 2022

FY 2023

FY 20243.00 yen

4.00 yen

4.00 yen

9.9%

22.8%

18.9%

resultDividend rate
Consolidated dividend
payout ratio

resultguidance

9

Financial and Investor Relations Initiatives to Support the Group’s Business Growth
Financial Performance for FY 2023

The AMITA Group’s top priority is to sustain business operations to achieve AMITA Vision 2030, even under a volatilebusiness environment. Our financial policy supports this effort as part of increasing the Group’s enterprise value andsharing a reasonable level of profit with shareholders consistently. Primary considerations for our financial initiatives are
growth potential, profitability, capital efficiency, and low risks.
In our IR initiatives, we keep investors and analysts informed of our business strategies and operations to gain their
buy-in.

Financial Mechanism
for Increasing ourEnterprise Value

Increase the Group’s
enterprise value

Expanding our silicon-recycling capacity
as part of investment in sustaining revenue growth
We invested ¥409M in expanding the silicon-recycling
capacity at our Kitakyushu Sustainable Resource
Management Center. An additional recycling line isscheduled to become operational in July 2024.
Bolstered by added capacity, our production of recycled
silicon for FY 2024 is projected to increase by 20% overthe previous year.

Canceled share acquisition rights to raise funds
IR initiatives• Provide regular updates
on business andfinancial performance• Enhance investor
engagement efforts

Increase revenue
from business operations

Generate
cash(See pages 10-13)(See pages 6 and 7)

Relationship-building with other parties

Key strategic
investments

Expand the scope and scale ofpublic-private-academic partnerships(See pages
24 and 25)

Talent development
Hire and develop talent to keep creating greater
value as an enterprise

In February 2024, we canceled share acquisition rights toraise funds, initiated in 2022, after reviewing our capital
policy and taking into consideration a projected market
environment, our stock price performance, and thenumber of exercised share acquisition rights to date. The
17-plus million yen already raised through exercisedrights was spent on developing a blockchain-based
system. The projects originally scheduled to be financed
by raised funds are to be funded by our on-hand cash
and bank borrowings.

IR Achievements and Challenges in FY 2023

(See page 27)

Capital expenditure and R&D
Upgrade hardware and software solutions forour businesses with high growth potential

Returnprofit toshareholders

Make our financial base more robust and resilient

Key Financial Initiatives Undertaken during FY 2023
Borrowed money from banks to mitigate risks and make our financial base more robust and resilient
We borrowed a total of ¥700M from banks in December 2023 and January 2024. This was intended to increase cash on
hand as a hedge against rising interest rates, as well as to make our financial base more robust and resilient, necessary
to sustain business growth. With these borrowings, the Group’s equity capital ratio declined to 36.6%, compared withthe end of FY 2022, which was well within an acceptable range for the Group.

We shared as much information as possible about the
AMITA Group’s business and financial performance via
reports and press releases with a broad range ofstakeholders in Japan and abroad. Recognized to havethe potential to sustain the growth of its enterprise value,
AMITA HOLDINGS was chosen as one of 200
constituents of the JPX-Nikkei Mid-and-Small Cap Index
for 2023.

During FY 2024, we intend to undertake the following
initiatives to address pressing issues and increase theGroup’s enterprise value:• Take action outlined in the Medium-Term Management
Plan to bring sales and profit back to growth• Continue to step up IR initiatives• Start talking with our key shareholders about a potential
partial sale of treasury stock

As a result of less-than-stellar financial performance,
however, our stock price continued to decline during FY
2023. Our tradable share ratio was 23.3% as ofDecember 31, 2023, which was below the minimum of
25% required to meet TSE’s Continued Listing Criteria for
the Growth Market.
We have until December 31, 2026, to complete action toremain eligible to be listed on the Growth Market.

Year-end Dividend
Year-end dividend rates for FY 2023 and FY 2024 (guidance) are
shown in the table at right. We intend to continue to return areasonable level of profit to our shareholders, taking into
consideration investment necessary to sustain innovation andbusiness growth, as well as annual business performance.
For the Company’s dividend policy, visit the Investor Section of
our company website.

8

The number of our silicon-recycling lines is to increase
from the current two to three.

FY 2022

FY 2023

FY 20243.00 yen

4.00 yen

4.00 yen

9.9%

22.8%

18.9%

resultDividend rate
Consolidated dividend
payout ratio

resultguidance9

Achievements in the Social Systems Design Business in FY 2023
Supporting corporate clients’ efforts to adopt sustainable, circular business models• Sustainable business-process outsourcing (BPO)

AMITA Group’s
value propositions
and competitive
advantages

Cyano Project offers corporate clients comprehensive solutions and services that address three
key priorities–circular economy, carbon neutrality, and nature positivity–for achieving greater
corporate sustainability in the best interests at the enterprise level.
The AMITA Group plays the role of a “Do Tank” that goes beyond a think tank in providing clientswith end-to-end assistance–consulting, solution development, and operational assistance–for an
extended period of time so that the clients can enjoy a steady stream of revenue and profit.

Consulting

CirculareconomyAssistance in transition
Carbonneutrality

Naturepositivity

Assist clients in developing an enterprise-level strategy and business planthat address three key sustainability priorities–circular economy, carbon
neutrality, and nature positivity. Provide solutions to meet corporate ESG
reporting requirements and international sustainability frameworks.

Solutiondevelopment

Assist in a proof-of-concent (PoC) assessment of businessdevelopment, based on insights gained in the consulting phase

Implementationand operation

Assist in developing, deploying, operating, monitoring, and maintaining
a new system that supports sustainable operations to allow clients tofocus on creating value in their core business.

Three key drivers fortransition strategy

AMITA’s professional staffers perform complex environmental
management functions on behalf of corporate clients who face ashortage of knowledgeable and experienced staff of their own.
Demand for our BPO service remains strong among clients having
those issues and operating in a volatile business environment.

Number of Corporate Clients and Offices
Subscribing to Our Cloud-based ICT
Environmental Management Service

Number of corporate clients subscribing
to our outsourcing services during FY 2023:

28

Topic

444

445

429
(up 40% year on year)

Number of offices subscribing toour cloud-based ICT services during FY 2023:
Up by

5,634

5,032

4,419

FY 2021602

FY 2022

FY 2023

Number ofcorporate subscribers, or 12%, year on year

Number of
office subscribers

Jointly established Circular LinX with the SMFL Group in April 2024
Circular LinX combines the AMITA Group’s strengths in environmental andsustainability services and solutions with the Sumitomo Mitsui Finance andLeasing Group’s expertise and client base in the finance and sustainability
fields to help businesses switch to a circular supply chain operation.

and• Assisting in achieving double-zero emissions
The Double-Zero Emissions Service supports clients’ efforts toachieve zero-waste emissions and zero-GHG emissions, as well ascarbon neutrality and circular business operations. This service
includes closed-loop recycling of industrial waste, otherwise boundfor incineration and landfill that would contribute to GHG emissions.

Primary service products offered in Cyano Project: Updates and achievements in FY 2023
Cement Alternative Materials and Fuels Produced by
the AMITA Group and Its Partners in Japan (t)• Assisting in developing circular businessmodelsWe help clients develop and validate a business case fora circular business model and adopt it following a PoC
assessment. Projects normally run for 18 to 36 months.
Our roles include setting up a cross-functional task force
within a client company, selecting the venue and partners
for a PoC field test, and managing the project.

135,624

FY 2022

FY 2023

3,736

3,921

3,792

FY 2022

FY 2023

Won project contracts from 24 companies during FY 2023.

External issue

Businesses were increasingly concerned
about their short-term financial
performance given the challenging
operating environment, and postponeddecisions to invest in ESG initiatives.

FY 2021

Our closed-loop recycling of industrial waste sourced frombusiness operators reduces their use of primary materials,
helping them achieve zero-waste, zero-GHG emissions.

We did not do a good job of presenting acompelling business case for potential
clients to justify their investing in ESG
initiatives.

• Assisting in sustainable procurement

10

129,164

Down from 38 in FY 2022, but a total number of projects inprogress was up from the previous year.

Internal issue

Amid rising threats of climate change and regional
conflicts, one of the most pressing issues in the
manufacturing sector is to ensure an uninterrupted
supply of raw materials and energy sources. We produce
and supply circular materials to manufacturers and help
them develop and operate a sustainable supply chain of
raw materials and fuels.

124,451

Silicon Recycled by the AMITA Group (t)TopicProject example

Project outline

Client: Paint manufacturer

FY 2021

While we recycled 3% less silicon in FY 2023 than in the previous year,
due to a temporary slowdown in the chip market, we had a higher
operating profit margin in this business as a result of expanding into
profitable sales channels and reducing the cost of sales. Our volume ofrecycled silicon is expected to return to growth from FY 2024 onward,
helped by the expansion of our own silicon-recycling capacity and anincreased production output of semiconductors planned by leading
chip manufacturers.

Released the Factory Support Service Package in November 2023
Our Factory Support Service Package helps manufacturers make their legacy businesses more sustainable, with a focus on
reducing environmental impact of their plant operations.

We developed–and designed a supply
chain of–circular materials that substitutefor primary materials (natural resources)used to produce paint.

11

Achievements in the Social Systems Design Business in FY 2023
Supporting corporate clients’ efforts to adopt sustainable, circular business models• Sustainable business-process outsourcing (BPO)

AMITA Group’s
value propositions
and competitive
advantages

Cyano Project offers corporate clients comprehensive solutions and services that address three
key priorities–circular economy, carbon neutrality, and nature positivity–for achieving greater
corporate sustainability in the best interests at the enterprise level.
The AMITA Group plays the role of a “Do Tank” that goes beyond a think tank in providing clientswith end-to-end assistance–consulting, solution development, and operational assistance–for an
extended period of time so that the clients can enjoy a steady stream of revenue and profit.

Consulting

CirculareconomyAssistance in transition
Carbonneutrality

Naturepositivity

Assist clients in developing an enterprise-level strategy and business planthat address three key sustainability priorities–circular economy, carbon
neutrality, and nature positivity. Provide solutions to meet corporate ESG
reporting requirements and international sustainability frameworks.

Solutiondevelopment

Assist in a proof-of-concent (PoC) assessment of businessdevelopment, based on insights gained in the consulting phase

Implementationand operation

Assist in developing, deploying, operating, monitoring, and maintaining
a new system that supports sustainable operations to allow clients tofocus on creating value in their core business.

Three key drivers fortransition strategy

AMITA’s professional staffers perform complex environmental
management functions on behalf of corporate clients who face ashortage of knowledgeable and experienced staff of their own.
Demand for our BPO service remains strong among clients having
those issues and operating in a volatile business environment.

Number of Corporate Clients and Offices
Subscribing to Our Cloud-based ICT
Environmental Management Service

Number of corporate clients subscribing
to our outsourcing services during FY 2023:

28

Topic

444

445

429
(up 40% year on year)

Number of offices subscribing toour cloud-based ICT services during FY 2023:
Up by

5,634

5,032

4,419

FY 2021602

FY 2022

FY 2023

Number ofcorporate subscribers, or 12%, year on year

Number of
office subscribers

Jointly established Circular LinX with the SMFL Group in April 2024
Circular LinX combines the AMITA Group’s strengths in environmental andsustainability services and solutions with the Sumitomo Mitsui Finance andLeasing Group’s expertise and client base in the finance and sustainability
fields to help businesses switch to a circular supply chain operation.

and• Assisting in achieving double-zero emissions
The Double-Zero Emissions Service supports clients’ efforts toachieve zero-waste emissions and zero-GHG emissions, as well ascarbon neutrality and circular business operations. This service
includes closed-loop recycling of industrial waste, otherwise boundfor incineration and landfill that would contribute to GHG emissions.

Primary service products offered in Cyano Project: Updates and achievements in FY 2023
Cement Alternative Materials and Fuels Produced by
the AMITA Group and Its Partners in Japan (t)• Assisting in developing circular businessmodelsWe help clients develop and validate a business case fora circular business model and adopt it following a PoC
assessment. Projects normally run for 18 to 36 months.
Our roles include setting up a cross-functional task force
within a client company, selecting the venue and partners
for a PoC field test, and managing the project.

135,624

FY 2022

FY 2023

3,736

3,921

3,792

FY 2022

FY 2023

Won project contracts from 24 companies during FY 2023.

External issue

Businesses were increasingly concerned
about their short-term financial
performance given the challenging
operating environment, and postponeddecisions to invest in ESG initiatives.

FY 2021

Our closed-loop recycling of industrial waste sourced frombusiness operators reduces their use of primary materials,
helping them achieve zero-waste, zero-GHG emissions.

We did not do a good job of presenting acompelling business case for potential
clients to justify their investing in ESG
initiatives.

• Assisting in sustainable procurement

10

129,164

Down from 38 in FY 2022, but a total number of projects inprogress was up from the previous year.

Internal issue

Amid rising threats of climate change and regional
conflicts, one of the most pressing issues in the
manufacturing sector is to ensure an uninterrupted
supply of raw materials and energy sources. We produce
and supply circular materials to manufacturers and help
them develop and operate a sustainable supply chain of
raw materials and fuels.

124,451

Silicon Recycled by the AMITA Group (t)TopicProject example

Project outline

Client: Paint manufacturer

FY 2021

While we recycled 3% less silicon in FY 2023 than in the previous year,
due to a temporary slowdown in the chip market, we had a higher
operating profit margin in this business as a result of expanding into
profitable sales channels and reducing the cost of sales. Our volume ofrecycled silicon is expected to return to growth from FY 2024 onward,
helped by the expansion of our own silicon-recycling capacity and anincreased production output of semiconductors planned by leading
chip manufacturers.

Released the Factory Support Service Package in November 2023
Our Factory Support Service Package helps manufacturers make their legacy businesses more sustainable, with a focus on
reducing environmental impact of their plant operations.

We developed–and designed a supply
chain of–circular materials that substitutefor primary materials (natural resources)used to produce paint.

11

Sustainable Community Development

Environmental Assessment and Certification Service

FY 2023 achievements

MEGURU STATION®

FY 2021 FY 2022
FSC® FM certification

23

23

FY 2023

YoY percentage change

AMITA’s share of theassessment service
market in Japan

23

Fisherycertification

502

615

691 (up 12%)32%

FSC® projectcertification

42

47

53 (up 13%)80%

ASC aquaculture
certification

12

13

15 (up 15%)

94%

ASC-MSC seaweedcertification

1

1

1

50%

156

166

149

Topic

In operation in

68%

FSC® CoC certification

MSC/ASC CoC
certification

AMITA-developed MEGURU STATION® is a resource-collection site that
promotes mutually supportive engagement among residents. Residents’ routine
chores of disposing of household waste promote circular management of local
resources and make the community life full of vitality. MEGURU STATION®
serves as the cornerstone of an ecosystem society.

FY 2023 achievements

Number of Businesses Assessed by AMITAForestcertification

Achievements in the Social Systems Design Business in FY 2023

We offer environmental assessment and certification services to ensure responsible management and use offorest and fishery resources. Our certification services include forest management (FM) certification, certification
for sustainable fishery and aquaculture (MSC certification and ASC aquaculture certification), andchain-of-custody (CoC) certification for responsible management, processing, and distribution of certified forest
and fishery resources.

Number of FSC® CoC Assessments

Conducted by AMITA

615
402

431

691

7

locations in

Topic

3

August 2023: Signed a collaboration with the City of Buzen in Fukuoka
Prefecture and the Institute of Connected Community Development,
regarding a city-wide deployment of MEGURU STATION®.

communities

Kobe, Hyogo Prefecture

2 locations

Tachiarai, Fukuoka Prefecture

4 locations

Nagakute, Aichi Prefecture

1 location

August 2023: AMITA HOLDINGS, a member of CLOMA*,
signed a collaboration with the City of Kobe, regarding a
project to develop a scheme for collecting and recycling
used containers of lactic acid drinks as part of establishingcircular management of resources.

502*Japan Clean Ocean Material Alliance, a cross-industry consortium that addresses theissue of marine plastic litter as part of circular management of plastics and works with theJapanese government, municipalities, and citizen groups to develop a social innovation

50% (estimated)

September 2023: AMITA HOLDINGS and Sumitomo Mitsui Trust Bank
conducted a joint assessment of MEGURU STATION®’s social
implications, verifying its benefits of promoting residents’ health andwell-being, as well as their engagement with others.

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Expanded a lineup of service products
for fishery certification

Expanded the scope and scale of strategic partnerships

2024

We started to offer the RFM (Responsible Fisheries Management)
CoC certification service, originally developed in Alaska.

Topic

April 2024: MEGURU STATION® became operational in
six locations in Tsukigase District, Nara Prefecture.
AMITA works with the City of Nara and Local Coop Yamato Kogen todevelop a sustainable, circular community in the district.

Business Operations outside Japan
Climate change, the depletion of natural resources, and deteriorating biodiversity all have global implications. The
AMITA Group extends circular business models originally developed for the Japanese market into Malaysia andother Asian countries.

Working with Corporate and Municipal Partners to Create Greater Value

J-CEP

Topic

(Japan Circular Economy Partnership)
FY 2023 achievements
Topic

39,40328,903 27,405

AMITA and several other member companies
participated in a project to recycle used plastic caps into
nail clipper holders and bubble pack sheets and exploredother commercial application of recycled plastics.

Cross-industry, cross-sector consortium
to promote a circular economy

Cement Alternative Materials Produced at
the AMITA BERJAYA Plant in Malaysia (t)Expanded the scope and scale of strategic partnerships
May 2023: Signed an MOU for a joint study with PT Indocement
Tunggal Prakarsa Tbk., a leading cement producer in Indonesia.

33,574

18,154

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Click here for details.

AMITA has been selected to participate in an Urban Collaboration
Project for Achieving a Low-Carbon Society in Indonesia, Malaysia, andPalau, sponsored by the Ministry of the Environment of Japan.

SIP(Strategic Innovation Promotion Program)

PoC field test of collecting, sorting, and recycling usedplastic bottle caps

Topic

AMITA selected to work on the SIP, sponsoredby the Cabinet Office
AMITA participates in SIP’s third-phase project to develop
a circular economy.

A national public-private-academic
collaborative project to innovate scienceand technology

R&D theme

Establishing a system for sorting used plastics collectedby municipalities and supplying them for recycling

R&D project leader

AMITA HOLDINGS

Conducting technology research
Project co-leader

Supplying plastic materials

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

2024
Topic

Renamed our Malaysian subsidiary AMITACIRCULAR DESIGN, which serves as the Group’s
regional headquarters for the Asia-Pacific
We have established a regional headquarters in
Malaysia, which reports directly to AMITA HOLDINGS,
to accelerate the pace of our development andexpansion of the Social Systems Design Business in
the Asia-Pacific region.
Click here for details.

12

2024
Topic

Partnered with an Indian corporate group to conducta joint feasibility study on circular society
We agreed with a waste management service provider inIndia, which is a Ramky Group company, and its Japanesesubsidiary, P9, to conduct a joint feasibility study ofdeveloping a circular society and economy in India.

ESA(Ecosystem Society Agency)
Public-private-academic collaboration
promoting circularity and mutually
beneficial social engagement

2024
Topic

Took the initiative in helping the launch of ESA, which provides
a platform for public-private collaboration
April 2024: Municipalities facing aging and shrinking populations andother pressing local issues joined forces with businesses ambitious tocreate new business models and established a public-private
collaborative platform for creating greater social value.

Click here for details.

13

Sustainable Community Development

Environmental Assessment and Certification Service

FY 2023 achievements

MEGURU STATION®

FY 2021 FY 2022
FSC® FM certification

23

23

FY 2023

YoY percentage change

AMITA’s share of theassessment service
market in Japan

23

Fisherycertification

502

615

691 (up 12%)32%

FSC® projectcertification

42

47

53 (up 13%)80%

ASC aquaculture
certification

12

13

15 (up 15%)

94%

ASC-MSC seaweedcertification

1

1

1

50%

156

166

149

Topic

In operation in

68%

FSC® CoC certification

MSC/ASC CoC
certification

AMITA-developed MEGURU STATION® is a resource-collection site that
promotes mutually supportive engagement among residents. Residents’ routine
chores of disposing of household waste promote circular management of local
resources and make the community life full of vitality. MEGURU STATION®
serves as the cornerstone of an ecosystem society.

FY 2023 achievements

Number of Businesses Assessed by AMITAForestcertification

Achievements in the Social Systems Design Business in FY 2023

We offer environmental assessment and certification services to ensure responsible management and use offorest and fishery resources. Our certification services include forest management (FM) certification, certification
for sustainable fishery and aquaculture (MSC certification and ASC aquaculture certification), andchain-of-custody (CoC) certification for responsible management, processing, and distribution of certified forest
and fishery resources.

Number of FSC® CoC Assessments

Conducted by AMITA

615
402

431

691

7

locations in

Topic

3

August 2023: Signed a collaboration with the City of Buzen in Fukuoka
Prefecture and the Institute of Connected Community Development,
regarding a city-wide deployment of MEGURU STATION®.

communities

Kobe, Hyogo Prefecture

2 locations

Tachiarai, Fukuoka Prefecture

4 locations

Nagakute, Aichi Prefecture

1 location

August 2023: AMITA HOLDINGS, a member of CLOMA*,
signed a collaboration with the City of Kobe, regarding a
project to develop a scheme for collecting and recycling
used containers of lactic acid drinks as part of establishingcircular management of resources.

502*Japan Clean Ocean Material Alliance, a cross-industry consortium that addresses theissue of marine plastic litter as part of circular management of plastics and works with theJapanese government, municipalities, and citizen groups to develop a social innovation

50% (estimated)

September 2023: AMITA HOLDINGS and Sumitomo Mitsui Trust Bank
conducted a joint assessment of MEGURU STATION®’s social
implications, verifying its benefits of promoting residents’ health andwell-being, as well as their engagement with others.

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Expanded a lineup of service products
for fishery certification

Expanded the scope and scale of strategic partnerships

2024

We started to offer the RFM (Responsible Fisheries Management)
CoC certification service, originally developed in Alaska.

Topic

April 2024: MEGURU STATION® became operational in
six locations in Tsukigase District, Nara Prefecture.
AMITA works with the City of Nara and Local Coop Yamato Kogen todevelop a sustainable, circular community in the district.

Business Operations outside Japan
Climate change, the depletion of natural resources, and deteriorating biodiversity all have global implications. The
AMITA Group extends circular business models originally developed for the Japanese market into Malaysia andother Asian countries.

Working with Corporate and Municipal Partners to Create Greater Value

J-CEP

Topic

(Japan Circular Economy Partnership)
FY 2023 achievements
Topic

39,40328,903 27,405

AMITA and several other member companies
participated in a project to recycle used plastic caps into
nail clipper holders and bubble pack sheets and exploredother commercial application of recycled plastics.

Cross-industry, cross-sector consortium
to promote a circular economy

Cement Alternative Materials Produced at
the AMITA BERJAYA Plant in Malaysia (t)Expanded the scope and scale of strategic partnerships
May 2023: Signed an MOU for a joint study with PT Indocement
Tunggal Prakarsa Tbk., a leading cement producer in Indonesia.

33,574

18,154

FY 2019 FY 2020 FY 2021 FY 2022 FY 2023

Click here for details.

AMITA has been selected to participate in an Urban Collaboration
Project for Achieving a Low-Carbon Society in Indonesia, Malaysia, andPalau, sponsored by the Ministry of the Environment of Japan.

SIP(Strategic Innovation Promotion Program)

PoC field test of collecting, sorting, and recycling usedplastic bottle caps

Topic

AMITA selected to work on the SIP, sponsoredby the Cabinet Office
AMITA participates in SIP’s third-phase project to develop
a circular economy.

A national public-private-academic
collaborative project to innovate scienceand technology

R&D theme

Establishing a system for sorting used plastics collectedby municipalities and supplying them for recycling

R&D project leader

AMITA HOLDINGS

Conducting technology research
Project co-leader

Supplying plastic materials

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

2024
Topic

Renamed our Malaysian subsidiary AMITACIRCULAR DESIGN, which serves as the Group’s
regional headquarters for the Asia-Pacific
We have established a regional headquarters in
Malaysia, which reports directly to AMITA HOLDINGS,
to accelerate the pace of our development andexpansion of the Social Systems Design Business in
the Asia-Pacific region.
Click here for details.

12

2024
Topic

Partnered with an Indian corporate group to conducta joint feasibility study on circular society
We agreed with a waste management service provider inIndia, which is a Ramky Group company, and its Japanesesubsidiary, P9, to conduct a joint feasibility study ofdeveloping a circular society and economy in India.

ESA(Ecosystem Society Agency)
Public-private-academic collaboration
promoting circularity and mutually
beneficial social engagement

2024
Topic

Took the initiative in helping the launch of ESA, which provides
a platform for public-private collaboration
April 2024: Municipalities facing aging and shrinking populations andother pressing local issues joined forces with businesses ambitious tocreate new business models and established a public-private
collaborative platform for creating greater social value.

Click here for details.

13

Message from the CIOO: Long-Term Management Plan
for FY 2024 through 2030

Learning from the past andyet maintaining
a forward-looking posture
to thrive in a fast-changing
business landscape

SUETSUGU Takahide
President and Chief Integrated Operations Officer (CIOO)AMITA HOLDINGS CO., LTD.

Scan the codes below for details about AMITA Vision 2030.

AMITA Vision 2030
video

AMITA Vision 2030
microsite

AMITA Vision 2030
briefing document

We intend to develop and implement the MEGURU
PLATFORM as one of the key drivers for achieving
AMITA Vision 2030. This is a digital information platformthat supports a sustainable, circular supply chain.
MEGURU STATION® (See page 13) operating in 13

MEGURU PLATFORM
Businesses

locations in 4 communities in Japan (as of June 2024) is
one of the critical elements of the MEGURU PLATFORM.
It is a community infrastructure on which residents’routine chores of disposing of household waste promotemutually supportive engagement among residents andcircular management of local resources.
In February 2024, we unveiled the Co-Creation City
(CCC) Initiative, to build a community model around thisnetwork of MEGURU STATION®. This initiative facilitatescollaboration among residents, businesses, andmunicipal authorities to build a circular, sustainablecommunity that fosters greater engagement, diversity,and cultural identity.
The key drivers for this initiative are greater engagement
among stakeholders and continuous resource circulation.
In addition to expanding the network of MEGURUSTATION®, we are developing MEGURU COMPLEX (Seepage 18), as an additional solution to be offered tomunicipalities. MEGURU COMPLEX recycles
water-containing municipal waste, such as food waste
and used diapers, into usable resources, minimizing theneed for an energy-intensive incineration process andenabling resource circulation within a community.

Co-Creation City

14

Once the MEGURU PLATFORM becomes operational,
Big Data about community residents’ behavior, activities,
and resource consumption and disposal can be gathered
through the platform. This data can be compiled andanalyzed to predict consumer purchase intentions andbehavior, as well as the supply of materials, in a mannercustomized for each community. We aspire to become acircular platform player that uses this information to help
municipalities and businesses pursue lean, sustainablecommunity and business operations.

This is part of our efforts to assist them in switching tocircular business models. Clients have the opportunity touse MEGURU STATION® as a venue for a PoC field testof their proposed new business models, creating thebenefit of achieving greater sustainability of not only theirbusiness operations but also selected communities.

Transforming our business operations and bolstering our financial performanceto achieve a long-term success
We have redefined FY 2024 and 2025 as the Groundwork
Phase, in which to focus on transforming our business
operations and bolstering our financial performance,
while upgrading the value propositions of solutions
offered in Cyano Project and developing the key
concepts of the CCC Initiative. More specifically, the
AMITA Group will focus its strategy on five key
areas–Products, Production, Relationship-building,Marketing, and Organization–as part of efforts to makeits business foundation more robust.

MEGURU STATION®

Use Big Data
about consumers’ behavior,activities, and resource
consumption and disposal
to predict demand

Circularlifestyle

4,536

11.7%

14.4%

12.5%

FY 2024(target)FY 2025(target)FY 2026

FY 2027(target)(target)Business
Expansion Phase

Diaper-recycling
facilities

Carbonization
furnaces

FY 2028

FY 2029(target)(target)Accelerated Business
Growth Phase

FY 2030(target)AMITA Group to establish
the Social Systems Design Business(In millions of yen; amounts rounded down to the nearest million yen)

Establish a framework for cross-functional marketing
encompassing visioning, corporate communications, accountrelations, and B2B sales (See page 20)

Develop the Co-Creation City Initiative and MEGURUCOMPLEX (See page 18)
Drive the growth of our silicon-recycling business by tapping
into the buoyant chip industry

Biogasplants

8,611

5,070

4,809

Assist clients in adopting circular business models
Upgrade value propositions of solutions offered in Cyano
Project to attract and retain more clients (See pages 10 and 11)

MEGURU COMPLEX

Our long-term sales and profit targets are shown in thechart below. Under this plan, we intend to expand ourbusiness to achieve net sales of 8.6 billion yen in FY 2030.

AMITA Group’s Net Sales and Ordinary Profit Margin

Groundwork Phase

Establish a virtuous circle ofproduction and consumption

The Groundwork Phase will be followed by the Business
Expansion Phase (FY 2026 and 2027) and the Accelerated
Business Growth Phase (FY 2028 and 2029). The following
key initiatives are planned for these three phases.

28.6%

FY 2023

Resource
circulation in
a community

By offering the CCC Initiative to communities and Cyano
Project services to businesses, we help make people’s
lives and industries more sustainable as a critical step
toward achieving AMITA Vision 2030. To make thisstrategy work, our top priority for FY 2024 and 2025 is todevelop and launch new services at an accelerated pace.
Accordingly, we have updated our long-term
management plan and road map as outlined below.

Today’s global supply chain of natural resources and raw(result)

Promote mutually
supportive
engagement
among residents

MEGURUFACTORY

materials has become increasingly unreliable andunpredictable. To mitigate risks associated with
disruptions in a global supply chain, we help corporateclients plan, develop, and adopt a more dependable,
environmentally friendly local procurement scheme.

Since 2021, we have been offering Cyano Project services(See pages 10 and 11) to corporate clients to help maketheir business models and operations more sustainable.

Long-term strategy to support AMITA Vision 2030
In November 2022, we announced AMITA Vision 2030,
our initiative and commitment to creating an ecosystemsociety by 2030. Our proposed ecosystem society is acircular society that supplies just the right amount ofgoods to meet the demand and produces no waste. Thisis a radical departure from a traditional industrializedsociety sustained by mass production, consumption, anddisposal. The idea of an ecosystem society, which values
continuous engagement among its members, has taken
its cue from a natural ecosystem in which every life form
is interrelated and interdependent.

Municipal waste hard to recycle locally is shipped to
AMITA’s sustainable resource management centers andout-of-town MEGURU FACTORY operated by recycling
service providers, and is recycled into value-added
materials for sale to local and out-of-town businesses.

Use Cyano Project to drive the Group’s revenue growth
Grow the service business at Circular LinX
Monetize the resource-recycling business in Indonesia
MEGURU COMPLEX to be deployed in communities
MEGURU PLATFORM to become operational

Launch the Social Systems Design Business in Malaysia
Circular LinX to develop new businesses

15Message from the CIOO: Long-Term Management Plan
for FY 2024 through 2030

Learning from the past andyet maintaining
a forward-looking posture
to thrive in a fast-changing
business landscape

SUETSUGU Takahide
President and Chief Integrated Operations Officer (CIOO)AMITA HOLDINGS CO., LTD.

Scan the codes below for details about AMITA Vision 2030.

AMITA Vision 2030
video

AMITA Vision 2030
microsite

AMITA Vision 2030
briefing document

We intend to develop and implement the MEGURU
PLATFORM as one of the key drivers for achieving
AMITA Vision 2030. This is a digital information platformthat supports a sustainable, circular supply chain.
MEGURU STATION® (See page 13) operating in 13

MEGURU PLATFORM
Businesses

locations in 4 communities in Japan (as of June 2024) is
one of the critical elements of the MEGURU PLATFORM.
It is a community infrastructure on which residents’routine chores of disposing of household waste promotemutually supportive engagement among residents andcircular management of local resources.
In February 2024, we unveiled the Co-Creation City
(CCC) Initiative, to build a community model around thisnetwork of MEGURU STATION®. This initiative facilitatescollaboration among residents, businesses, andmunicipal authorities to build a circular, sustainablecommunity that fosters greater engagement, diversity,and cultural identity.
The key drivers for this initiative are greater engagement
among stakeholders and continuous resource circulation.
In addition to expanding the network of MEGURUSTATION®, we are developing MEGURU COMPLEX (Seepage 18), as an additional solution to be offered tomunicipalities. MEGURU COMPLEX recycles
water-containing municipal waste, such as food waste
and used diapers, into usable resources, minimizing theneed for an energy-intensive incineration process andenabling resource circulation within a community.

Co-Creation City

14

Once the MEGURU PLATFORM becomes operational,
Big Data about community residents’ behavior, activities,
and resource consumption and disposal can be gathered
through the platform. This data can be compiled andanalyzed to predict consumer purchase intentions andbehavior, as well as the supply of materials, in a mannercustomized for each community. We aspire to become acircular platform player that uses this information to help
municipalities and businesses pursue lean, sustainablecommunity and business operations.

This is part of our efforts to assist them in switching tocircular business models. Clients have the opportunity touse MEGURU STATION® as a venue for a PoC field testof their proposed new business models, creating thebenefit of achieving greater sustainability of not only theirbusiness operations but also selected communities.

Transforming our business operations and bolstering our financial performanceto achieve a long-term success
We have redefined FY 2024 and 2025 as the Groundwork
Phase, in which to focus on transforming our business
operations and bolstering our financial performance,
while upgrading the value propositions of solutions
offered in Cyano Project and developing the key
concepts of the CCC Initiative. More specifically, the
AMITA Group will focus its strategy on five key
areas–Products, Production, Relationship-building,Marketing, and Organization–as part of efforts to makeits business foundation more robust.

MEGURU STATION®

Use Big Data
about consumers’ behavior,activities, and resource
consumption and disposal
to predict demand

Circularlifestyle

4,536

11.7%

14.4%

12.5%

FY 2024(target)FY 2025(target)FY 2026

FY 2027(target)(target)Business
Expansion Phase

Diaper-recycling
facilities

Carbonization
furnaces

FY 2028

FY 2029(target)(target)Accelerated Business
Growth Phase

FY 2030(target)AMITA Group to establish
the Social Systems Design Business(In millions of yen; amounts rounded down to the nearest million yen)

Establish a framework for cross-functional marketing
encompassing visioning, corporate communications, accountrelations, and B2B sales (See page 20)

Develop the Co-Creation City Initiative and MEGURUCOMPLEX (See page 18)
Drive the growth of our silicon-recycling business by tapping
into the buoyant chip industry

Biogasplants

8,611

5,070

4,809

Assist clients in adopting circular business models
Upgrade value propositions of solutions offered in Cyano
Project to attract and retain more clients (See pages 10 and 11)

MEGURU COMPLEX

Our long-term sales and profit targets are shown in thechart below. Under this plan, we intend to expand ourbusiness to achieve net sales of 8.6 billion yen in FY 2030.

AMITA Group’s Net Sales and Ordinary Profit Margin

Groundwork Phase

Establish a virtuous circle ofproduction and consumption

The Groundwork Phase will be followed by the Business
Expansion Phase (FY 2026 and 2027) and the Accelerated
Business Growth Phase (FY 2028 and 2029). The following
key initiatives are planned for these three phases.

28.6%

FY 2023

Resource
circulation in
a community

By offering the CCC Initiative to communities and Cyano
Project services to businesses, we help make people’s
lives and industries more sustainable as a critical step
toward achieving AMITA Vision 2030. To make thisstrategy work, our top priority for FY 2024 and 2025 is todevelop and launch new services at an accelerated pace.
Accordingly, we have updated our long-term
management plan and road map as outlined below.

Today’s global supply chain of natural resources and raw(result)

Promote mutually
supportive
engagement
among residents

MEGURUFACTORY

materials has become increasingly unreliable andunpredictable. To mitigate risks associated with
disruptions in a global supply chain, we help corporateclients plan, develop, and adopt a more dependable,
environmentally friendly local procurement scheme.

Since 2021, we have been offering Cyano Project services(See pages 10 and 11) to corporate clients to help maketheir business models and operations more sustainable.

Long-term strategy to support AMITA Vision 2030
In November 2022, we announced AMITA Vision 2030,
our initiative and commitment to creating an ecosystemsociety by 2030. Our proposed ecosystem society is acircular society that supplies just the right amount ofgoods to meet the demand and produces no waste. Thisis a radical departure from a traditional industrializedsociety sustained by mass production, consumption, anddisposal. The idea of an ecosystem society, which values
continuous engagement among its members, has taken
its cue from a natural ecosystem in which every life form
is interrelated and interdependent.

Municipal waste hard to recycle locally is shipped to
AMITA’s sustainable resource management centers andout-of-town MEGURU FACTORY operated by recycling
service providers, and is recycled into value-added
materials for sale to local and out-of-town businesses.

Use Cyano Project to drive the Group’s revenue growth
Grow the service business at Circular LinX
Monetize the resource-recycling business in Indonesia
MEGURU COMPLEX to be deployed in communities
MEGURU PLATFORM to become operational

Launch the Social Systems Design Business in Malaysia
Circular LinX to develop new businesses

15Key Strategies for the Groundwork Phase in FY 2024 and 2025
During the Groundwork Phase in FY 2024 and 2025, the AMITA Group will focus its strategy on five key areas–Products,
Production, Relationship-building, Marketing, and Organization–to become better prepared for the Business Expansion Phase
to begin in FY 2026.

1

Product strategy

Key initiatives
Offer more extensive assistance tobusinesses and municipalities inachieving greater corporate andcommunity sustainability• Upgrade the value propositions of solutions offered in
Cyano Project (See page 17)• Develop a blueprint and road map for the Co-Creation City
(CCC) Initiative and develop MEGURU COMPLEX (See page 18)• Set up a team specializing in gathering, compiling,
analyzing, and using information essential to assist
businesses with a transition strategy• Automate the production process in our sustainable
resource management centers• Expand business at Circular LinX
• Play an active role in SIP• Play an active role in ESA• Partner with other companies to expand business outside
Japan (See page 19)2

Production strategy

Upgrade the system for gathering,compiling, analyzing, and using avariety of information related toresources availability and ESG
frameworks

3

Relationship-building
strategy

Pursue partnerships with other players
to accelerate the pace of achieving ourcorporate objectives

45Marketing strategy

Organizational
strategy

Offer more extensive assistance to businesses and municipalities
in achieving greater corporate and community sustainability

Product strategy

Over the years, the AMITA Group has established a hard-to-emulate business model by offering industry-leading service
products and solutions that address unmet sustainability needs of businesses and municipalities. During theGroundwork Phase, we will focus on developing next-generation service products and solutions while making existingones more competitive.

Strategic objectives and initiatives in five key areas
Strategic objectives

1

Establish a framework forcross-functional marketing
encompassing visioning, corporate
communications, account relations,and B2B sales

Transform the organization to resolve
the innovator’s dilemma• Establish an integrated marketing department• Develop a marketing channel through which to approachclients’ senior executives and decision-makers• Update the talent management policy and procedures tofacilitate self-organizing management that encourages each
employee to take ownership and leadership at work
• Implement the OKR (Objectives and Key Results)
management framework to align company-, department-,
and employee-level objectives

Focused areas in FY 2024 and 2025

1

Cyano Project(See pages 10 and 11)

2

Co-Creation City

(See page 18)

Assist businesses in achieving greater corporate
sustainability driven by ESG considerations

Assist residents, businesses, and municipal authorities
in designing and developing a sustainable community

Upgrade the value propositionsof service products and solutions

Develop and offer new service
products and solutions

MEGURU PLATFORM

Platform for achieving greater social sustainability byfacilitating resource circulation inside and outside a communityand enhancing engagement among stakeholders

Develop new service products and solutions based on the platform and prepare to launchthem in sync with the expansion of Cyano Project and CCC Initiative (from FY 2026 onward)

1

Upgrade the value propositions of Cyano Project

While the corporate needs for greater corporate sustainability continued to grow, reflecting
the ESG-driven investment trends, we were slow in signing new clients to Cyano Project
during FY 2023, as many businesses were increasingly concerned about their short-term
financial performance given the challenging operating environment. During the Groundwork
Phase, we will focus on upgrading the value propositions of the solutions offered in Cyano
Project. This will enable us to better help clients develop and adopt circular business models
that will generate a steady stream of profit for them, even in a volatile business environment.
This approach is also expected to make our revenue stream more robust and resilient.
Actions

41

Marketing strategy

Product strategy

Implement sophisticated, integrated marketing programs toensure the steady stream of operating capital necessary to pursue
other four strategies

Step up the development of service products and solutions andenhance their value propositions to make them more compellingto clients

How the five strategies are interrelated

2 Production strategy

3

Gather, compile, analyze, and use information
in a more sophisticated manner to add greater
value to our service products and enhance ourorganizational excellence

5
16

Relationship-building
strategy
Invest in relationship-building efforts to reduce
costs associated with pursuing partnerships
and doing business with clients

Organizational
strategy

Transform the organizational structure as a basis for pursuing the
Product, Marketing, Relationship-building, and Production
strategies in a more coherent manner

Upgrade the value propositions of our solutions to ensure a better return on investment for clients
The low deal closure rate for Cyano Project during FY 2023 was attributed primarily to: (1)clients’ perception of not getting enough support from us in developing and implementing
circular business models and (2) our failure to present a compelling business case to
influence clients’ investment decisions. To address these issues and upgrade the value
propositions of the solutions we offer, we will work more closely with outside partners and set
up a dedicated in-house team.

Offer diverse and comprehensive operational support to clients
Achieving greater corporate sustainability requires a company to allocate a majority of its
operating resources to the business built on its core competency and keep creating greater
value. Moreover, the company must constantly update and optimize the way it operates toremain agile and resilient in a fast-changing business environment. To meet these corporateneeds, AMITA will provide upgraded operational support to clients in diverse industries indeveloping and operating circular business models.
Two focused actions to take during the Groundwork Phase are:
AMITA CIRCULAR to play a central role indeveloping new circular materials and supply
them consistently

Work with Circular LinX to develop an operational
support system for a circular supply chain andmake it available to clients in FY 2025

17

Key Strategies for the Groundwork Phase in FY 2024 and 2025
During the Groundwork Phase in FY 2024 and 2025, the AMITA Group will focus its strategy on five key areas–Products,
Production, Relationship-building, Marketing, and Organization–to become better prepared for the Business Expansion Phase
to begin in FY 2026.

1

Product strategy

Key initiatives
Offer more extensive assistance tobusinesses and municipalities inachieving greater corporate andcommunity sustainability• Upgrade the value propositions of solutions offered in
Cyano Project (See page 17)• Develop a blueprint and road map for the Co-Creation City
(CCC) Initiative and develop MEGURU COMPLEX (See page 18)• Set up a team specializing in gathering, compiling,
analyzing, and using information essential to assist
businesses with a transition strategy• Automate the production process in our sustainable
resource management centers• Expand business at Circular LinX
• Play an active role in SIP• Play an active role in ESA• Partner with other companies to expand business outside
Japan (See page 19)2

Production strategy

Upgrade the system for gathering,compiling, analyzing, and using avariety of information related toresources availability and ESG
frameworks

3

Relationship-building
strategy

Pursue partnerships with other players
to accelerate the pace of achieving ourcorporate objectives

45Marketing strategy

Organizational
strategy

Offer more extensive assistance to businesses and municipalities
in achieving greater corporate and community sustainability

Product strategy

Over the years, the AMITA Group has established a hard-to-emulate business model by offering industry-leading service
products and solutions that address unmet sustainability needs of businesses and municipalities. During theGroundwork Phase, we will focus on developing next-generation service products and solutions while making existingones more competitive.

Strategic objectives and initiatives in five key areas
Strategic objectives

1

Establish a framework forcross-functional marketing
encompassing visioning, corporate
communications, account relations,and B2B sales

Transform the organization to resolve
the innovator’s dilemma• Establish an integrated marketing department• Develop a marketing channel through which to approachclients’ senior executives and decision-makers• Update the talent management policy and procedures tofacilitate self-organizing management that encourages each
employee to take ownership and leadership at work
• Implement the OKR (Objectives and Key Results)
management framework to align company-, department-,
and employee-level objectives

Focused areas in FY 2024 and 2025

1

Cyano Project(See pages 10 and 11)

2

Co-Creation City

(See page 18)

Assist businesses in achieving greater corporate
sustainability driven by ESG considerations

Assist residents, businesses, and municipal authorities
in designing and developing a sustainable community

Upgrade the value propositionsof service products and solutions

Develop and offer new service
products and solutions

MEGURU PLATFORM

Platform for achieving greater social sustainability byfacilitating resource circulation inside and outside a communityand enhancing engagement among stakeholders

Develop new service products and solutions based on the platform and prepare to launchthem in sync with the expansion of Cyano Project and CCC Initiative (from FY 2026 onward)

1

Upgrade the value propositions of Cyano Project

While the corporate needs for greater corporate sustainability continued to grow, reflecting
the ESG-driven investment trends, we were slow in signing new clients to Cyano Project
during FY 2023, as many businesses were increasingly concerned about their short-term
financial performance given the challenging operating environment. During the Groundwork
Phase, we will focus on upgrading the value propositions of the solutions offered in Cyano
Project. This will enable us to better help clients develop and adopt circular business models
that will generate a steady stream of profit for them, even in a volatile business environment.
This approach is also expected to make our revenue stream more robust and resilient.
Actions

41

Marketing strategy

Product strategy

Implement sophisticated, integrated marketing programs toensure the steady stream of operating capital necessary to pursue
other four strategies

Step up the development of service products and solutions andenhance their value propositions to make them more compellingto clients

How the five strategies are interrelated

2 Production strategy

3

Gather, compile, analyze, and use information
in a more sophisticated manner to add greater
value to our service products and enhance ourorganizational excellence

5
16

Relationship-building
strategy
Invest in relationship-building efforts to reduce
costs associated with pursuing partnerships
and doing business with clients

Organizational
strategy

Transform the organizational structure as a basis for pursuing the
Product, Marketing, Relationship-building, and Production
strategies in a more coherent manner

Upgrade the value propositions of our solutions to ensure a better return on investment for clients
The low deal closure rate for Cyano Project during FY 2023 was attributed primarily to: (1)clients’ perception of not getting enough support from us in developing and implementing
circular business models and (2) our failure to present a compelling business case to
influence clients’ investment decisions. To address these issues and upgrade the value
propositions of the solutions we offer, we will work more closely with outside partners and set
up a dedicated in-house team.

Offer diverse and comprehensive operational support to clients
Achieving greater corporate sustainability requires a company to allocate a majority of its
operating resources to the business built on its core competency and keep creating greater
value. Moreover, the company must constantly update and optimize the way it operates toremain agile and resilient in a fast-changing business environment. To meet these corporateneeds, AMITA will provide upgraded operational support to clients in diverse industries indeveloping and operating circular business models.
Two focused actions to take during the Groundwork Phase are:
AMITA CIRCULAR to play a central role indeveloping new circular materials and supply
them consistently

Work with Circular LinX to develop an operational
support system for a circular supply chain andmake it available to clients in FY 2025

17

2

2

Develop and offer new service products in the CCC Initiative

We undertake the CCC Initiative to facilitate collaboration among residents, businesses, and municipal authorities
to foster greater engagement, diversity, and cultural identity in communities. The initiative is intended to help
municipalities achieve greater community sustainability by addressing the four major issues that many of them
face today: Population drains; aging and shrinking populations; the rising costs of social security programs; anddeclining employment opportunities.

Production strategy

Upgrade the system for gathering, compiling, analyzing,
and using a variety of information

For years, we have been recycling industrial waste and byproducts into value-added circular materials and supplying themto industrial customers. One of our greatest competitive advantages in this business is our expertise in analyzing elemental
composition of waste bound for recycling. This enables us to produce circular materials that exactly meet the commercial
requirements of customers. To drive further revenue growth, we will refine our information-processing system andknow-how for turning industrial waste and byproducts into value-added materials.
Actions

Actions

Set up a team dedicated to gathering and processing information to better assist clientsin achieving greater corporate sustainability

Develop MEGURU COMPLEX

Today’s businesses operating in a fast-changing social environment must choose the most effective way of doing
business and report on their performance objectives, progress, and outcomes to stakeholders. From a massive flow ofsocial, environmental, and business information available to us, we pick up, compile, and analyze most relevant
information and share it with corporate and municipal clients to better support their sustainability efforts.

The CCC Initiative is intended to promote greater engagement among all stakeholders in a community, as well asa continuous circulation of resources and information. When this initiative becomes operational, it will besupported by a network of MEGURU STATION® (See page 13) operating in communities around the country. We
are working with recycling service providers and municipalities to recycle household waste–such as plastics,
paper, glass bottles, and cans–that residents bring in to MEGURU STATION® into usable materials, as part of PoC
field tests to assess the feasibility of circular management of municipal waste.

Automate a production process in our sustainable resource management centers
Incinerating a large volume of commonly disposed-of water-containing household waste, such as food waste andused diapers, consumes a significant amount of energy and generates CO2 in the process. The pressing issue isthat already financially burdened municipalities with shrinking populations do not have a budget for maintaining
and upgrading their incineration facilities. We have started developing MEGURU COMPLEX, a circular model ofcollecting and sorting a variety of combustible municipal waste and recycling it into usable materials using thebest combination of different types of processing facilities. We will develop and test a prototype MEGURUCOMPLEX during the Groundwork Phase and start deploying fully operational models in FY 2027.

Issues associated with incinerating
municipal waste in Japan• Incinerating water-containing waste, such as food waste(80% water) and used diapers (70% water), isenergy-consuming.
• Incinerators are a major source of CO2 emissions in
the community.
• Financially burdened municipalities with shrinking
populations do no have a sufficient budget for keeping
their incineration facilities in good operating condition.

We are transforming the way we produce circular materials in our facilities. More specifically, we are working to develop
systems for:
Automating and applying digital solutions to the process of recycling industrial waste and byproducts intovalue-added materials
Conducting more efficient blending simulations of circular materials we produce, using information about incoming
industrial waste and industrial customers’ requirements for materials Design work is to be completed by the end of
FY 2024, with a system deployment scheduled for FY 2026 and later.

AMITA’s proposed resource-circulation scheme

MEGURU COMPLEX
Under this scheme, food waste and used diapers with high watercontent are separated from other combustible municipal waste
and recycled into usable resources. Residues with reduced watercontent can be thermally decomposed through self-sustaining
combustion without the need for fossil fuels to burn them.

• More than 200 municipal incineration facilities aroundthe country are past their safe operating life of 30 years.

Relationship-building
strategy

Pursue partnerships with other players to accelerate the paceof achieving our corporate objectives

We invest in relationship-building so that we can tap partners’ know-how and networks associated with service products,
production, procurement, and sales to complement our own and accelerate the pace of our business expansion.

Actions

Residents bringpresorted
household waste
for disposal• Shortage of landfill sites

3

Make our business foundation more robust

andCircular LinX

Biogas plants

Combustible municipal waste by type in Japan
Other waste

14.5%

MEGURUSTATION®

Wood and grasses 6%
Plastics

Paper andtextilesFood waste

14.7%

Circular management of waste makes
better use of resources and reduces CO2
emissions and environmental impact
associated with incineration and landfill.

36.8%

28%

Used diapers(included left)

5%Sources: “A 2022 Report on the Use and Disposal ofContainers and Packages in the Eight Largest
Cities in Japan” and “A 2022 Report on the
Recycling of Used Diapers,” both published by the
Ministry of the Environment

18

Diaper-recycling
facilities

The AMITA Group and the SMFL Group jointly established Circular LinX in April 2024, to consolidate
waste-management services and customer bases in order to achieve greater operational efficiency, expand sales
teams, improve service quality, and save on system-development costs.

Work more closely with overseas partners to expand our business outside Japan
Carbonization
furnaces

Expected benefits• All parties involved can make better use of resources.
• The self-sufficient scheme makes residents feel more proud of and attached totheir communities.

We pursue partnerships across the Asia-Pacific region to accelerate our business expansion in this region.
Malaysia

Palau

AMITA partners with a local business college in a project todeploy MEGURU STATION® in Malaysia (announced onJune 10, 2024).

Under a partnership agreement, we will continue to assist in
developing a circular community model.

India
AMITA has agreed with the Ramky Group company, a leading waste management service provider in India, to conduct a joint
feasibility study of developing a circular society and economy in India (announced on May 15, 2024).

• Residents can take the initiative in community development.
• The scheme facilitates greater engagement among stakeholders and creates jobs.

19

2

2

Develop and offer new service products in the CCC Initiative

We undertake the CCC Initiative to facilitate collaboration among residents, businesses, and municipal authorities
to foster greater engagement, diversity, and cultural identity in communities. The initiative is intended to help
municipalities achieve greater community sustainability by addressing the four major issues that many of them
face today: Population drains; aging and shrinking populations; the rising costs of social security programs; anddeclining employment opportunities.

Production strategy

Upgrade the system for gathering, compiling, analyzing,
and using a variety of information

For years, we have been recycling industrial waste and byproducts into value-added circular materials and supplying themto industrial customers. One of our greatest competitive advantages in this business is our expertise in analyzing elemental
composition of waste bound for recycling. This enables us to produce circular materials that exactly meet the commercial
requirements of customers. To drive further revenue growth, we will refine our information-processing system andknow-how for turning industrial waste and byproducts into value-added materials.
Actions

Actions

Set up a team dedicated to gathering and processing information to better assist clientsin achieving greater corporate sustainability

Develop MEGURU COMPLEX

Today’s businesses operating in a fast-changing social environment must choose the most effective way of doing
business and report on their performance objectives, progress, and outcomes to stakeholders. From a massive flow ofsocial, environmental, and business information available to us, we pick up, compile, and analyze most relevant
information and share it with corporate and municipal clients to better support their sustainability efforts.

The CCC Initiative is intended to promote greater engagement among all stakeholders in a community, as well asa continuous circulation of resources and information. When this initiative becomes operational, it will besupported by a network of MEGURU STATION® (See page 13) operating in communities around the country. We
are working with recycling service providers and municipalities to recycle household waste–such as plastics,
paper, glass bottles, and cans–that residents bring in to MEGURU STATION® into usable materials, as part of PoC
field tests to assess the feasibility of circular management of municipal waste.

Automate a production process in our sustainable resource management centers
Incinerating a large volume of commonly disposed-of water-containing household waste, such as food waste andused diapers, consumes a significant amount of energy and generates CO2 in the process. The pressing issue isthat already financially burdened municipalities with shrinking populations do not have a budget for maintaining
and upgrading their incineration facilities. We have started developing MEGURU COMPLEX, a circular model ofcollecting and sorting a variety of combustible municipal waste and recycling it into usable materials using thebest combination of different types of processing facilities. We will develop and test a prototype MEGURUCOMPLEX during the Groundwork Phase and start deploying fully operational models in FY 2027.

Issues associated with incinerating
municipal waste in Japan• Incinerating water-containing waste, such as food waste(80% water) and used diapers (70% water), isenergy-consuming.
• Incinerators are a major source of CO2 emissions in
the community.
• Financially burdened municipalities with shrinking
populations do no have a sufficient budget for keeping
their incineration facilities in good operating condition.

We are transforming the way we produce circular materials in our facilities. More specifically, we are working to develop
systems for:
Automating and applying digital solutions to the process of recycling industrial waste and byproducts intovalue-added materials
Conducting more efficient blending simulations of circular materials we produce, using information about incoming
industrial waste and industrial customers’ requirements for materials Design work is to be completed by the end of
FY 2024, with a system deployment scheduled for FY 2026 and later.

AMITA’s proposed resource-circulation scheme

MEGURU COMPLEX
Under this scheme, food waste and used diapers with high watercontent are separated from other combustible municipal waste
and recycled into usable resources. Residues with reduced watercontent can be thermally decomposed through self-sustaining
combustion without the need for fossil fuels to burn them.

• More than 200 municipal incineration facilities aroundthe country are past their safe operating life of 30 years.

Relationship-building
strategy

Pursue partnerships with other players to accelerate the paceof achieving our corporate objectives

We invest in relationship-building so that we can tap partners’ know-how and networks associated with service products,
production, procurement, and sales to complement our own and accelerate the pace of our business expansion.

Actions

Residents bringpresorted
household waste
for disposal• Shortage of landfill sites

3

Make our business foundation more robust

andCircular LinX

Biogas plants

Combustible municipal waste by type in Japan
Other waste

14.5%

MEGURUSTATION®

Wood and grasses 6%
Plastics

Paper andtextilesFood waste

14.7%

Circular management of waste makes
better use of resources and reduces CO2
emissions and environmental impact
associated with incineration and landfill.

36.8%

28%

Used diapers(included left)

5%Sources: “A 2022 Report on the Use and Disposal ofContainers and Packages in the Eight Largest
Cities in Japan” and “A 2022 Report on the
Recycling of Used Diapers,” both published by the
Ministry of the Environment

18

Diaper-recycling
facilities

The AMITA Group and the SMFL Group jointly established Circular LinX in April 2024, to consolidate
waste-management services and customer bases in order to achieve greater operational efficiency, expand sales
teams, improve service quality, and save on system-development costs.

Work more closely with overseas partners to expand our business outside Japan
Carbonization
furnaces

Expected benefits• All parties involved can make better use of resources.
• The self-sufficient scheme makes residents feel more proud of and attached totheir communities.

We pursue partnerships across the Asia-Pacific region to accelerate our business expansion in this region.
Malaysia

Palau

AMITA partners with a local business college in a project todeploy MEGURU STATION® in Malaysia (announced onJune 10, 2024).

Under a partnership agreement, we will continue to assist in
developing a circular community model.

India
AMITA has agreed with the Ramky Group company, a leading waste management service provider in India, to conduct a joint
feasibility study of developing a circular society and economy in India (announced on May 15, 2024).

• Residents can take the initiative in community development.
• The scheme facilitates greater engagement among stakeholders and creates jobs.

19

Took the initiative in helping the launch of ESA in an effort to achieve an ecosystem society
AMITA HOLDINGS took the initiative in helping establish ESA in April 2024.
ESA promotes circularity and mutually beneficial social engagement in creating greater social value andfacilitates public-private-academic collaboration in building a sustainable society in which people canenjoy a higher level of well-being, even under some constraints. Member companies bring theirbusiness know-how and networks to ESA and work with each other and with municipal members to
conduct PoC field tests as a step toward achieving an ecosystem society, which could not be
accomplished by going it alone.

5

Organizational
strategy

Transform our organization to resolve the innovator’s dilemma

We strive to establish an endoskeletal organizational structure to resolve the innovator’s dilemma that could disrupt theaccomplishment of our corporate objectives. An endoskeletal organizational structure is characterized by its metabolic
function in retaining and enhancing a company’s core competencies that drive its competitive advantages while
partnering with outside players having diverse know-how and networks to keep creating greater value. We will take thefollowing two actions to enhance our core competencies and transform our organization into one capable of continuing
to create greater value:

Actions

4

Marketing strategy

Establish a framework for cross-functional marketing encompassing visioning,
corporate communications, account relations, and B2B sales

Marketing actions play a critical role in acquiring operating capital necessary to pursue (1) Product, (2) Production,and (3) Relationship-building strategies. Today’s businesses have a growing need to pursue ESG-driven business
management and achieve greater corporate sustainability. To better address this need, the AMITA Group strives toestablish itself as the “go-to” entity to provide end-to-end assistance to corporate clients in developing andimplementing a comprehensive, enterprise-level strategy for achieving a circular economy, carbon neutrality, andnature positivity. More specifically, AMITA HOLDINGS’ visioning and corporate communications teams will moreclosely coordinate with Group companies’ account relations and B2B sales teams in cutting common operating
costs, disseminating more coherent corporate and product messages, and reducing the lead time between receiving
inquiries from clients and receiving orders. In addition, we will develop a marketing channel through which toapproach directly clients’ senior executives and decision-makers.

Actions

Update the talent management policy and procedures to encourage every employee
to play a leading role and a supporting role
We will eliminate mid-level manager positions and replace them with self-organizing* management that allows each
employee to set and pursue their own performance objectives that are closely aligned with the company’s success.
*Self-organizing dynamics is a phenomenon in which individual organisms behave independently of each other, without a big-picture perspective,
but unconsciously form an orderly system as a result.

Leadership and team-building roles previously assumed by mid-level managers are now shared among motivatedand self-driven employees who demonstrate ownership at work. This approach prevents supervisory roles frombecoming too dependent on the designated few and enables all members of a team to learn collective wisdom. It isan organization that encourages every employee to play a leading role and a supporting role.

Update talent development programs
We are developing a three-step talent development program for employees: (1) Learn the basics of creating value byfaithfully following examples; (2) Exercise ingenuity by trying different approaches to creating value; and (3) Work
with others to come up with an idea for a new business. In FY 2024, we will start offering AMITA-designed training
programs to employees, intended to develop them into one of the following three professional roles within four toeight years of joining the company.

Take an integrated marketing design approach to enhancing corporate branding efforts
We take an integrated marketing design approach to formulating strategies and action plans that encompass all
four key functions: visioning, corporate communications, account relations, and B2B sales. This approach enables
us to leverage unified corporate branding efforts to reach and attract prospective corporate customers more
broadly, and helps us save on advertising, sales promotion, and personnel costs across business lines.

Future Designer

Playing the role of providing end-to-end assistance in developing and implementing a

Do Tank Specialist transition strategy for greater corporate sustainability

Integrated marketing design approach
AMITA HOLDINGS

Visioning

Corporate
communications

Provide deep insights intosocial issues and identify
unmet social needs

Keep stakeholders informed tomaintain good working
relationships with them

AMITA Group companies

Account relations

B2B sales

Stay on top of market trends
and maintain good
relationships of trust withcustomers

Offer service products tocustomers in a most efficientand effective manner to meettheir expectations

Playing the role of turning a changing business environment and social constraints intobusiness opportunities and designing an infrastructure that supports a sustainable future

Town Manager

Playing the role of providing comprehensive solutions to community issues and assisting incircular management of municipal operations that facilitates constructive engagement among
stakeholders

Financial targets for the Groundwork Phase in FY 2024 and 2025
We will pursue all these five key strategies during the Groundwork Phase to return to a growth path fast.
(In millions of yen; amounts rounded down to the nearest million yen)

FY 2023 results

Develop a communication vehicle and content tailored to clients’ decision-makers

FY 2025 targets

4,536

4,809

5,070

Operating profit

472

540

651

Ordinary profit

530

599

731

Set up a team dedicated to offering more creative insights and better service solutions

Profit

308

371

489

During FY 2024, we will deploy a special-mission team having highly professional expertise and know-how inanalyzing and compiling competitive information to support corporate clients’ decision-making and provide themwith better service products.

Operating profit margin

10.4%

11.2%

12.8%

Ordinary profit margin

11.7%

12.5%

14.4%

We are developing a relationship-building communication vehicle and specialized content to reach prospective
corporate clients’ decision-makers and raise their awareness of, and gain their buy-in to, the benefits of our Cyano
Project services. They are scheduled to become available during FY 2024.

20

FY 2024 targets

Net sales21

Took the initiative in helping the launch of ESA in an effort to achieve an ecosystem society
AMITA HOLDINGS took the initiative in helping establish ESA in April 2024.
ESA promotes circularity and mutually beneficial social engagement in creating greater social value andfacilitates public-private-academic collaboration in building a sustainable society in which people canenjoy a higher level of well-being, even under some constraints. Member companies bring theirbusiness know-how and networks to ESA and work with each other and with municipal members to
conduct PoC field tests as a step toward achieving an ecosystem society, which could not be
accomplished by going it alone.

5

Organizational
strategy

Transform our organization to resolve the innovator’s dilemma

We strive to establish an endoskeletal organizational structure to resolve the innovator’s dilemma that could disrupt theaccomplishment of our corporate objectives. An endoskeletal organizational structure is characterized by its metabolic
function in retaining and enhancing a company’s core competencies that drive its competitive advantages while
partnering with outside players having diverse know-how and networks to keep creating greater value. We will take thefollowing two actions to enhance our core competencies and transform our organization into one capable of continuing
to create greater value:

Actions

4

Marketing strategy

Establish a framework for cross-functional marketing encompassing visioning,
corporate communications, account relations, and B2B sales

Marketing actions play a critical role in acquiring operating capital necessary to pursue (1) Product, (2) Production,and (3) Relationship-building strategies. Today’s businesses have a growing need to pursue ESG-driven business
management and achieve greater corporate sustainability. To better address this need, the AMITA Group strives toestablish itself as the “go-to” entity to provide end-to-end assistance to corporate clients in developing andimplementing a comprehensive, enterprise-level strategy for achieving a circular economy, carbon neutrality, andnature positivity. More specifically, AMITA HOLDINGS’ visioning and corporate communications teams will moreclosely coordinate with Group companies’ account relations and B2B sales teams in cutting common operating
costs, disseminating more coherent corporate and product messages, and reducing the lead time between receiving
inquiries from clients and receiving orders. In addition, we will develop a marketing channel through which toapproach directly clients’ senior executives and decision-makers.

Actions

Update the talent management policy and procedures to encourage every employee
to play a leading role and a supporting role
We will eliminate mid-level manager positions and replace them with self-organizing* management that allows each
employee to set and pursue their own performance objectives that are closely aligned with the company’s success.
*Self-organizing dynamics is a phenomenon in which individual organisms behave independently of each other, without a big-picture perspective,
but unconsciously form an orderly system as a result.

Leadership and team-building roles previously assumed by mid-level managers are now shared among motivatedand self-driven employees who demonstrate ownership at work. This approach prevents supervisory roles frombecoming too dependent on the designated few and enables all members of a team to learn collective wisdom. It isan organization that encourages every employee to play a leading role and a supporting role.

Update talent development programs
We are developing a three-step talent development program for employees: (1) Learn the basics of creating value byfaithfully following examples; (2) Exercise ingenuity by trying different approaches to creating value; and (3) Work
with others to come up with an idea for a new business. In FY 2024, we will start offering AMITA-designed training
programs to employees, intended to develop them into one of the following three professional roles within four toeight years of joining the company.

Take an integrated marketing design approach to enhancing corporate branding efforts
We take an integrated marketing design approach to formulating strategies and action plans that encompass all
four key functions: visioning, corporate communications, account relations, and B2B sales. This approach enables
us to leverage unified corporate branding efforts to reach and attract prospective corporate customers more
broadly, and helps us save on advertising, sales promotion, and personnel costs across business lines.

Future Designer

Playing the role of providing end-to-end assistance in developing and implementing a

Do Tank Specialist transition strategy for greater corporate sustainability

Integrated marketing design approach
AMITA HOLDINGS

Visioning

Corporate
communications

Provide deep insights intosocial issues and identify
unmet social needs

Keep stakeholders informed tomaintain good working
relationships with them

AMITA Group companies

Account relations

B2B sales

Stay on top of market trends
and maintain good
relationships of trust withcustomers

Offer service products tocustomers in a most efficientand effective manner to meettheir expectations

Playing the role of turning a changing business environment and social constraints intobusiness opportunities and designing an infrastructure that supports a sustainable future

Town Manager

Playing the role of providing comprehensive solutions to community issues and assisting incircular management of municipal operations that facilitates constructive engagement among
stakeholders

Financial targets for the Groundwork Phase in FY 2024 and 2025
We will pursue all these five key strategies during the Groundwork Phase to return to a growth path fast.
(In millions of yen; amounts rounded down to the nearest million yen)

FY 2023 results

Develop a communication vehicle and content tailored to clients’ decision-makers

FY 2025 targets

4,536

4,809

5,070

Operating profit

472

540

651

Ordinary profit

530

599

731

Set up a team dedicated to offering more creative insights and better service solutions

Profit

308

371

489

During FY 2024, we will deploy a special-mission team having highly professional expertise and know-how inanalyzing and compiling competitive information to support corporate clients’ decision-making and provide themwith better service products.

Operating profit margin

10.4%

11.2%

12.8%

Ordinary profit margin

11.7%

12.5%

14.4%

We are developing a relationship-building communication vehicle and specialized content to reach prospective
corporate clients’ decision-makers and raise their awareness of, and gain their buy-in to, the benefits of our Cyano
Project services. They are scheduled to become available during FY 2024.

20

FY 2024 targets

Net sales21

Our Leadership (as of April 1, 2024)

Dynamic Evolution
The AMITA Group has evolved into a corporate entity poised to turn social and business needs arising in a changing
operating environment into an opportunity to achieve a sustainable society in collaboration with corporate partners indiverse industries.

• AMITA HOLDINGS CO., LTD.

AMITA CORPORATION plays an instrumental role in coordinating the Group’s effort to assist businesses and municipalities
in achieving greater sustainability by working with other Group companies having proprietary circular solutions, as well as
expertise and networks in sustainability, and with AMITA-initiated joint ventures and affiliates.

• AMITA CORPORATION (wholly owned subsidiary of AMITA HOLDINGS)KUMANO Eisuke

Chairman and Chief Visionary Officer

SUETSUGU Takahide

President and Chief Integrated Operations Officer

OKADA Kenichi

Director and Chief Growth Officer

TAKANO Masaharu

Non-executive Director

SHIMIZU Nahoko

Non-executive Director

HASEGAWA Takafumi

Audit & Supervisory Board Member

NAKAHIGASHI Masafumi

Audit & Supervisory Board Member

YAMOTO Hironori

Audit & Supervisory Board Member
Click here for details
about executive profiles• AMITA CIRCULAR DESIGN SDN. BHD. (ACD) (wholly owned subsidiary of AMITA HOLDINGS)

Assist businesses and municipalities in Japan in achieving greater corporate and community sustainability
Assist businesses and municipalities outside Japan in achieving greater corporate and community sustainability

OKADA Kenichi

Transition strategy business

YAMATO Eiichi

President and CEO

Managing Director
and CEOOn April 1, 2024, AMITA HOLDINGS renamed its Malaysian subsidiary
AMITA CIRCULAR DESIGN SDN. BHD., which serves as the Group’s
regional headquarters for the Asia-Pacific region. The company extends
the Group’s proprietary technologies and know-how originally developed
for the Japanese market into overseas markets and promotes therecycling of industrial waste into usable resources in the region.

• AMITA BERJAYA SDN. BHD. (joint venture established by ACD and the Malaysia-based NAZA Group)
Recycle industrial waste into usable resources in Malaysia• AMITA CIRCULAR CORPORATION (wholly owned subsidiary of AMITA HOLDINGS)
Provide end-to-end solutions for sustainable procurement and use of resources

Regional
headquarters

Circular materials
business• Circular LinX Co., Ltd. (joint venture)

TSUCHIMOTO KenjiandPresident and CEO

Provide a waste management system and the sustainable BPO service

Ecosystem co-creation
business

Circular managementbusiness• AMIDAO CORPORATION (wholly owned subsidiary of AMITA HOLDINGS)TABEI Shinichi

AMITA HOLDINGS and the SMFL Group jointly established Circular LinX
Co., Ltd., on April 1, 2024, as an entity to provide a waste management
system and the sustainable BPO service to assist businesses in pursuing
ESG-driven corporate management and a circular economy.

President and CEO

Provide a platform for creating an ecosystem society,Low-carbon transition
advisory businessusing Web3 technology

OKADA Kenichi
President and CEO

Affiliate(Shinrinno Bokujo)• Codo Advisory, Inc. (joint venture)andAssist businesses in defining and refining
their low-carbon transition strategies

Shinrinno Bokujo [ranch in a forest] Co., Ltd., operates ranches in Nasu and Mashiko,Tochigi Prefecture.
The company has converted forests and abandoned farms into ranches to raise Jersey
cattle, and produces and sells dairy products.

SUZUKI Kaori
President and CEO

MCP Japan Holdings

Scan the code for details
about each Group company.

The AMITA Group partners with the ranch to pursue the shared vision of a sustainable
society as part of the Social Systems Design Business.

22

23

Our Leadership (as of April 1, 2024)

Dynamic Evolution
The AMITA Group has evolved into a corporate entity poised to turn social and business needs arising in a changing
operating environment into an opportunity to achieve a sustainable society in collaboration with corporate partners indiverse industries.

• AMITA HOLDINGS CO., LTD.

AMITA CORPORATION plays an instrumental role in coordinating the Group’s effort to assist businesses and municipalities
in achieving greater sustainability by working with other Group companies having proprietary circular solutions, as well as
expertise and networks in sustainability, and with AMITA-initiated joint ventures and affiliates.

• AMITA CORPORATION (wholly owned subsidiary of AMITA HOLDINGS)KUMANO Eisuke

Chairman and Chief Visionary Officer

SUETSUGU Takahide

President and Chief Integrated Operations Officer

OKADA Kenichi

Director and Chief Growth Officer

TAKANO Masaharu

Non-executive Director

SHIMIZU Nahoko

Non-executive Director

HASEGAWA Takafumi

Audit & Supervisory Board Member

NAKAHIGASHI Masafumi

Audit & Supervisory Board Member

YAMOTO Hironori

Audit & Supervisory Board Member
Click here for details
about executive profiles• AMITA CIRCULAR DESIGN SDN. BHD. (ACD) (wholly owned subsidiary of AMITA HOLDINGS)

Assist businesses and municipalities in Japan in achieving greater corporate and community sustainability
Assist businesses and municipalities outside Japan in achieving greater corporate and community sustainability

OKADA Kenichi

Transition strategy business

YAMATO Eiichi

President and CEO

Managing Director
and CEOOn April 1, 2024, AMITA HOLDINGS renamed its Malaysian subsidiary
AMITA CIRCULAR DESIGN SDN. BHD., which serves as the Group’s
regional headquarters for the Asia-Pacific region. The company extends
the Group’s proprietary technologies and know-how originally developed
for the Japanese market into overseas markets and promotes therecycling of industrial waste into usable resources in the region.

• AMITA BERJAYA SDN. BHD. (joint venture established by ACD and the Malaysia-based NAZA Group)
Recycle industrial waste into usable resources in Malaysia• AMITA CIRCULAR CORPORATION (wholly owned subsidiary of AMITA HOLDINGS)
Provide end-to-end solutions for sustainable procurement and use of resources

Regional
headquarters

Circular materials
business• Circular LinX Co., Ltd. (joint venture)

TSUCHIMOTO KenjiandPresident and CEO

Provide a waste management system and the sustainable BPO service

Ecosystem co-creation
business

Circular managementbusiness• AMIDAO CORPORATION (wholly owned subsidiary of AMITA HOLDINGS)TABEI Shinichi

AMITA HOLDINGS and the SMFL Group jointly established Circular LinX
Co., Ltd., on April 1, 2024, as an entity to provide a waste management
system and the sustainable BPO service to assist businesses in pursuing
ESG-driven corporate management and a circular economy.

President and CEO

Provide a platform for creating an ecosystem society,Low-carbon transition
advisory businessusing Web3 technology

OKADA Kenichi
President and CEO

Affiliate(Shinrinno Bokujo)• Codo Advisory, Inc. (joint venture)andAssist businesses in defining and refining
their low-carbon transition strategies

Shinrinno Bokujo [ranch in a forest] Co., Ltd., operates ranches in Nasu and Mashiko,Tochigi Prefecture.
The company has converted forests and abandoned farms into ranches to raise Jersey
cattle, and produces and sells dairy products.

SUZUKI Kaori
President and CEO

MCP Japan Holdings

Scan the code for details
about each Group company.

The AMITA Group partners with the ranch to pursue the shared vision of a sustainable
society as part of the Social Systems Design Business.

22

23

Nonfinancial Information: Sustainability Initiatives for FY 2023
As its articles of incorporation state, the primary purpose of the AMITA Group is to increase natural and relational capital.
Accordingly, we are focused on enhancing our social engagement capital, natural capital, and human capital in ourbusiness operations.

2023 January • Introduced a shorter 32-hour workweek for all full-time employees.
• Raised the pay scale for all employees, including temporary workers.
May• Reassessed every business process performed by Group employees to prioritize themand provide more flexible working arrangements.
July• Launched a project to use ChatGPT and other generative AI solutions
to help employees create greater value.
2024 April• Eliminated mid-level manager positions and updated talent management programs to encourage
each employee to exercise ownership and leadership at work.

Social Engagement Capital
The AMITA Group announced its commitment to pursuing stakeholder-centric business management inMarch 2022. It is a commitment to seeking the best interests of society as a whole in our business.
Our achievements are listed below in chronological order from January 2023 through May 2024.

Throughout FY 2023 Held management-employee sessions at all AMITA Group offices and plants.

• Held an earnings briefing session for FY 2022 for investors and analysts.
• Held a general shareholders meeting and a briefing session on
the Group’s medium-term corporate strategy.
June• Acquired a stake in Japan Evolution Fund.
July• Published Annual Report for FY 2022.
November • Published a new edition of newsletter for
AMITA HOLDINGS’ shareholders.
2024 February • Held an earnings briefing session for FY 2023 for investors and analysts
and unveiled the Group’s long-term management plan for FY 2024-2030.
March• Held a general shareholders meeting.

Employees2023 FebruaryMarch2023 April
May

Shareholders
and investors• Started a course on ecosystem industry at Meiji University.
• Installed a compact bioenergy generator MEGURU-BIO at an elementary school
in Nagakute, Aichi Prefecture.
June• Started a social study course Web3 Lab at Kyushu Institute of Technology.
November • Launched a public forum in which participants discuss the true meaningsof socially relevant concepts (pictured).
2024 February • Discontinued the preliminary screening of application
documents submitted by job-seeking college students;
the submission of resumes no longer required for the firstphase of job interviews. Applicants’ embracing of ourcorporate mission and values and their willingness to takeon challenging tasks are more important in our hiring
decisions than their nationalities, ages, or academic credentials.

2023 January
May• Entered into a strategic partnership with the BELL Group.
• Participated in a J-CEP-sponsored field test of the Digital Product Passport scheme.
• Signed an MOU for a joint feasibility study with PT Indocement Tunggal Prakarsa Tbk.,
a leading cement producer in Indonesia.
December • Chosen as a member of the associate consultant program operated by BSI Group Japan.
2024 April• Jointly established Circular LinX with the Sumitomo Mitsui Finance and Leasing Group.
May• Signed an MOU with the Ramky Group in India (pictured).
2023 September
2024 February
April

Students
2023 February• Donated part of proceeds from our overseas business to
Medecins Sans Frontieres.
May• SATO Hiroyuki, then AMITA HOLDINGS director, appointed asa professional adviser to Minamisanriku, Miyagi Prefecture.
2024 January and February • Ran a campaign to raise relief funds for the people andcommunities affected by the January 2024 Noto Peninsula Earthquake.
March• Donated part of proceeds from our overseas business to
Medecins Sans Frontieres.
• Organized the “Learn with Fun about Resource Circulation” eventfor children and their parents at a community center in Kobe,
Hyogo Prefecture.
Throughout FY 2023 Made it easy for employees to take leave to participate in volunteer
activities, such as serving as personal shoppers for the elderly.

• AMITA HOLDINGS Chairman and CVO KUMANO Eisuke coauthored“Transforming the World: A Road to Ecosystem-Driven Capitalism.”• Announced “AMITA’s Five Commitments to Earn and Retain Public Trust” in pursuitof a sustainable society that values the integrity of every life form.
• Relocated the Group’s Tokyo Office to the Ochanomizu district.
The new office features an entrance hall showcase
and an event space.

Businesses

2023 February • Set up a fourth MEGURU STATION® in Tachiarai, Fukuoka Prefecture,completing the coverage of all its school districts.
March • Signed a collaboration with Kobe, Hyogo Prefecture.
May• Signed a collaboration with Kakegawa, Shizuoka Prefecture.
• Chosen to participate in an Urban Collaboration Project for Achieving a Low-Carbon Society,sponsored by the Ministry of the Environment.
July• Chosen to work in the third phase of the SIP program, sponsored by the Cabinet Office.
August • Signed a collaboration with the City of Buzen in Fukuoka Prefecture and the Instituteof Connected Community Development.
2024 April• Took the initiative in helping the launch of the Ecosystem Society Agency.
• MEGURU STATION® became operational in six locations in Tsukigase District in Nara (pictured).

Municipalities

Communities
24

25

Nonfinancial Information: Sustainability Initiatives for FY 2023
As its articles of incorporation state, the primary purpose of the AMITA Group is to increase natural and relational capital.
Accordingly, we are focused on enhancing our social engagement capital, natural capital, and human capital in ourbusiness operations.

2023 January • Introduced a shorter 32-hour workweek for all full-time employees.
• Raised the pay scale for all employees, including temporary workers.
May• Reassessed every business process performed by Group employees to prioritize themand provide more flexible working arrangements.
July• Launched a project to use ChatGPT and other generative AI solutions
to help employees create greater value.
2024 April• Eliminated mid-level manager positions and updated talent management programs to encourage
each employee to exercise ownership and leadership at work.

Social Engagement Capital
The AMITA Group announced its commitment to pursuing stakeholder-centric business management inMarch 2022. It is a commitment to seeking the best interests of society as a whole in our business.
Our achievements are listed below in chronological order from January 2023 through May 2024.

Throughout FY 2023 Held management-employee sessions at all AMITA Group offices and plants.

• Held an earnings briefing session for FY 2022 for investors and analysts.
• Held a general shareholders meeting and a briefing session on
the Group’s medium-term corporate strategy.
June• Acquired a stake in Japan Evolution Fund.
July• Published Annual Report for FY 2022.
November • Published a new edition of newsletter for
AMITA HOLDINGS’ shareholders.
2024 February • Held an earnings briefing session for FY 2023 for investors and analysts
and unveiled the Group’s long-term management plan for FY 2024-2030.
March• Held a general shareholders meeting.

Employees2023 FebruaryMarch2023 April
May

Shareholders
and investors• Started a course on ecosystem industry at Meiji University.
• Installed a compact bioenergy generator MEGURU-BIO at an elementary school
in Nagakute, Aichi Prefecture.
June• Started a social study course Web3 Lab at Kyushu Institute of Technology.
November • Launched a public forum in which participants discuss the true meaningsof socially relevant concepts (pictured).
2024 February • Discontinued the preliminary screening of application
documents submitted by job-seeking college students;
the submission of resumes no longer required for the firstphase of job interviews. Applicants’ embracing of ourcorporate mission and values and their willingness to takeon challenging tasks are more important in our hiring
decisions than their nationalities, ages, or academic credentials.

2023 January
May• Entered into a strategic partnership with the BELL Group.
• Participated in a J-CEP-sponsored field test of the Digital Product Passport scheme.
• Signed an MOU for a joint feasibility study with PT Indocement Tunggal Prakarsa Tbk.,
a leading cement producer in Indonesia.
December • Chosen as a member of the associate consultant program operated by BSI Group Japan.
2024 April• Jointly established Circular LinX with the Sumitomo Mitsui Finance and Leasing Group.
May• Signed an MOU with the Ramky Group in India (pictured).
2023 September
2024 February
April

Students
2023 February• Donated part of proceeds from our overseas business to
Medecins Sans Frontieres.
May• SATO Hiroyuki, then AMITA HOLDINGS director, appointed asa professional adviser to Minamisanriku, Miyagi Prefecture.
2024 January and February • Ran a campaign to raise relief funds for the people andcommunities affected by the January 2024 Noto Peninsula Earthquake.
March• Donated part of proceeds from our overseas business to
Medecins Sans Frontieres.
• Organized the “Learn with Fun about Resource Circulation” eventfor children and their parents at a community center in Kobe,
Hyogo Prefecture.
Throughout FY 2023 Made it easy for employees to take leave to participate in volunteer
activities, such as serving as personal shoppers for the elderly.

• AMITA HOLDINGS Chairman and CVO KUMANO Eisuke coauthored“Transforming the World: A Road to Ecosystem-Driven Capitalism.”• Announced “AMITA’s Five Commitments to Earn and Retain Public Trust” in pursuitof a sustainable society that values the integrity of every life form.
• Relocated the Group’s Tokyo Office to the Ochanomizu district.
The new office features an entrance hall showcase
and an event space.

Businesses

2023 February • Set up a fourth MEGURU STATION® in Tachiarai, Fukuoka Prefecture,completing the coverage of all its school districts.
March • Signed a collaboration with Kobe, Hyogo Prefecture.
May• Signed a collaboration with Kakegawa, Shizuoka Prefecture.
• Chosen to participate in an Urban Collaboration Project for Achieving a Low-Carbon Society,sponsored by the Ministry of the Environment.
July• Chosen to work in the third phase of the SIP program, sponsored by the Cabinet Office.
August • Signed a collaboration with the City of Buzen in Fukuoka Prefecture and the Instituteof Connected Community Development.
2024 April• Took the initiative in helping the launch of the Ecosystem Society Agency.
• MEGURU STATION® became operational in six locations in Tsukigase District in Nara (pictured).

Municipalities

Communities
24

25

Nonfinancial Information: Sustainability Initiatives for FY 2023

Natural Capital

Human Capital

We believe in preserving and increasing natural capital through business operations,which is an essential step to achieving a sustainable society.

The AMITA Group believes that a team of ordinary people can do something extraordinary, and that maintaining agood work-life-learning balance makes one excel at work. Accordingly, we are taking actions described below,
built around the following three key concepts about enhancing human capital and promoting diversity.

Cyano Project
Cyano Project helps business clients achieve greater
corporate sustainability, including nature positivity, andincrease their natural capital. We also assist them inassessing nature-related risks, reporting on performance
progress, taking corrective actions, and transforming theway of doing business to meet the increasingly influential
TNFD* reporting requirements. During FY 2023, 24
corporate clients signed up for Cyano Project.

We recycle industrial waste and byproducts intovalue-added circular materials as part of our efforts topreserve natural resources and reduce energy use.

*The Taskforce on Nature-related Financial Disclosures is a global
initiative to provide businesses and organizations withrecommendations and guidance for assessing and reporting the risks
and impacts of their operations on the environment and biodiversity.

Recycled cement fuels¹

Environmental Assessment and Certification Service
Our service helps prevent overharvesting of forests andthe overexploitation of marine products. (See page 12 for
FY 2023 achievements)

Helping preserve natural resources
Circular materials we produced in FY 2023

108,072 t equivalent to 401,363 t of mined coal
which is 3.7 times as much as
circular materials produced

Recycled materials, such as nickel, used to
produce special steel2

2,305 t equivalent to 10,557 t of mined nickel
which is 4.6 times as much as
circular materials produced

Recycled copper

Shinrinno Bokujo
Shinrinno Bokujo Co., Ltd., an AMITA HOLDINGS
affiliate, has converted forests and abandoned farms into
cattle ranches, tapping unused resources to raise cattle
and make value-added dairy products.

Three key concepts

Producing circular materials

329 t equivalent to 16,404 t of mined copper
which is 49.9 times as much as
circular materials produced

During FY 2023, we discharged zero cubic meters ofwastewater from our manufacturing operations andemitted 0.3 t-CO2 GHG per one million yen of net sales³,
which was one-twentieth of the industry average4.
1. Including SlurMix®
2. Applicable to alternative nickel materials
3. Data compiled from our plants in Himeji, Ibaraki, Kitakyushu, and Minamisanriku BIO
4. Based on data published by the National Institute for Environmental Studies

Developing talent capable ofcontinuing to create value
as a team

Fostering a workplace culture andenvironment that promote
employees’ well-being

Embracing greater diversity,
equity, and inclusionin the workplace

Training employees in critical,
deep thinking, based on aphilosophical approach and a theory
about the evolution of civilization

Mutually supportive AMITIME
Program

KAGUYA-Project to make
AMITA a great place to work for
women

In the following training sessions,employees have the opportunity tolearn AMITA’s corporate philosophy,
how we create value, and team-building
techniques. This is part of our efforts to
help them develop an innovative andcreative mindset.

Raison d’être
Training Program

Female employees discuss among
themselves ideas for workplace
improvements and have the opportunity
to bring them to the leadership’s
attention.

Examples of outcomesof the KAGUYA-Project• AMITIME Program• Open House event:
Employees’ children are invited to company
offices on a prearranged date.

This is an AMITA-designed training
program that gives new hires a
few-month assignment to define
equality, fairness, the individual,
individuality, rights, duties, freedom,
and independence, and how they all
relate to each other.

• Diaper-changing table installed in
the first-aid office

Critical Thinking
Training Program
In this all-hands training session,
employees discuss among themselvesproblems with no clear-cut answers,
such as “How does employee
well-being drive a company’s profits?”and “How can a company turn its
aesthetic sense into a tangible asset?”and share their findings at the end of
the session.

Achieving the Group’s climate-positive targets

26

The program allows employees todonate their unused annual paid
holidays to the company so that others
can use them to provide nursing carefor their children and other family
members. It promotes a mutually
supportive, less stressful workplaceenvironment.

We announced AMITA Climate-Positive Targets in 2022
and have since taken a series of actions to meet them.

Replaced individual employee
performance appraisal with teamperformance appraisal

During FY 2023, we assessed our risks and opportunities
and formulated a transition policy and an action plan
based on the Assessing low-Carbon Transition (ACT)international initiative. In FY 2024 and beyond, we plan toswitch to low-emission machinery in our production lines
and implement an internal carbon pricing system to placea value on the amount of our carbon emissions. AMITAHOLDINGS has become a member of the GX League, across-industry consortium to drive green transformationto achieve a carbon-neutral industry and society in Japan.

When each of a hundred people makes
a leap forward, it makes a bigger
difference than when a single person
takes 100 steps forward. In this belief,
we discontinued individual employee
performance appraisal and switched toteam performance appraisal to trackand manage a team’s performanceagainst established team objectives
and individual roles.

32-hour workweek, teleworking,and flextime arrangements

Hiring based on personality andcultural fit

In January 2023, we adopted a shorter
32-hour workweek for all full-time
employees to give them more off-worktime. This gives employees more
opportunity to interact and engage withpeople outside the company and withsociety in general, which they can use
to create greater value at work. In
addition, we have made teleworking
and flextime an integral part of flexible
working arrangements available toemployees.

Our hiring criteria are based on
applicants’ readiness to embrace thecompany’s mission and values, workwith other team members, and take onchallenging tasks–not on theiracademic and professional backgrounddescribed in their resumes. Applicants’nationalities, gender, or academic andprofessional background are no longer
part of our hiring criteria. Starting in FY
2023, job-seeking students are notrequired to submit application
documents for preliminary screening orresumes for initial job interviews.

27

Nonfinancial Information: Sustainability Initiatives for FY 2023

Natural Capital

Human Capital

We believe in preserving and increasing natural capital through business operations,which is an essential step to achieving a sustainable society.

The AMITA Group believes that a team of ordinary people can do something extraordinary, and that maintaining agood work-life-learning balance makes one excel at work. Accordingly, we are taking actions described below,
built around the following three key concepts about enhancing human capital and promoting diversity.

Cyano Project
Cyano Project helps business clients achieve greater
corporate sustainability, including nature positivity, andincrease their natural capital. We also assist them inassessing nature-related risks, reporting on performance
progress, taking corrective actions, and transforming theway of doing business to meet the increasingly influential
TNFD* reporting requirements. During FY 2023, 24
corporate clients signed up for Cyano Project.

We recycle industrial waste and byproducts intovalue-added circular materials as part of our efforts topreserve natural resources and reduce energy use.

*The Taskforce on Nature-related Financial Disclosures is a global
initiative to provide businesses and organizations withrecommendations and guidance for assessing and reporting the risks
and impacts of their operations on the environment and biodiversity.

Recycled cement fuels¹

Environmental Assessment and Certification Service
Our service helps prevent overharvesting of forests andthe overexploitation of marine products. (See page 12 for
FY 2023 achievements)

Helping preserve natural resources
Circular materials we produced in FY 2023

108,072 t equivalent to 401,363 t of mined coal
which is 3.7 times as much as
circular materials produced

Recycled materials, such as nickel, used to
produce special steel2

2,305 t equivalent to 10,557 t of mined nickel
which is 4.6 times as much as
circular materials produced

Recycled copper

Shinrinno Bokujo
Shinrinno Bokujo Co., Ltd., an AMITA HOLDINGS
affiliate, has converted forests and abandoned farms into
cattle ranches, tapping unused resources to raise cattle
and make value-added dairy products.

Three key concepts

Producing circular materials

329 t equivalent to 16,404 t of mined copper
which is 49.9 times as much as
circular materials produced

During FY 2023, we discharged zero cubic meters ofwastewater from our manufacturing operations andemitted 0.3 t-CO2 GHG per one million yen of net sales³,
which was one-twentieth of the industry average4.
1. Including SlurMix®
2. Applicable to alternative nickel materials
3. Data compiled from our plants in Himeji, Ibaraki, Kitakyushu, and Minamisanriku BIO
4. Based on data published by the National Institute for Environmental Studies

Developing talent capable ofcontinuing to create value
as a team

Fostering a workplace culture andenvironment that promote
employees’ well-being

Embracing greater diversity,
equity, and inclusionin the workplace

Training employees in critical,
deep thinking, based on aphilosophical approach and a theory
about the evolution of civilization

Mutually supportive AMITIME
Program

KAGUYA-Project to make
AMITA a great place to work for
women

In the following training sessions,employees have the opportunity tolearn AMITA’s corporate philosophy,
how we create value, and team-building
techniques. This is part of our efforts to
help them develop an innovative andcreative mindset.

Raison d’être
Training Program

Female employees discuss among
themselves ideas for workplace
improvements and have the opportunity
to bring them to the leadership’s
attention.

Examples of outcomesof the KAGUYA-Project• AMITIME Program• Open House event:
Employees’ children are invited to company
offices on a prearranged date.

This is an AMITA-designed training
program that gives new hires a
few-month assignment to define
equality, fairness, the individual,
individuality, rights, duties, freedom,
and independence, and how they all
relate to each other.

• Diaper-changing table installed in
the first-aid office

Critical Thinking
Training Program
In this all-hands training session,
employees discuss among themselvesproblems with no clear-cut answers,
such as “How does employee
well-being drive a company’s profits?”and “How can a company turn its
aesthetic sense into a tangible asset?”and share their findings at the end of
the session.

Achieving the Group’s climate-positive targets

26

The program allows employees todonate their unused annual paid
holidays to the company so that others
can use them to provide nursing carefor their children and other family
members. It promotes a mutually
supportive, less stressful workplaceenvironment.

We announced AMITA Climate-Positive Targets in 2022
and have since taken a series of actions to meet them.

Replaced individual employee
performance appraisal with teamperformance appraisal

During FY 2023, we assessed our risks and opportunities
and formulated a transition policy and an action plan
based on the Assessing low-Carbon Transition (ACT)international initiative. In FY 2024 and beyond, we plan toswitch to low-emission machinery in our production lines
and implement an internal carbon pricing system to placea value on the amount of our carbon emissions. AMITAHOLDINGS has become a member of the GX League, across-industry consortium to drive green transformationto achieve a carbon-neutral industry and society in Japan.

When each of a hundred people makes
a leap forward, it makes a bigger
difference than when a single person
takes 100 steps forward. In this belief,
we discontinued individual employee
performance appraisal and switched toteam performance appraisal to trackand manage a team’s performanceagainst established team objectives
and individual roles.

32-hour workweek, teleworking,and flextime arrangements

Hiring based on personality andcultural fit

In January 2023, we adopted a shorter
32-hour workweek for all full-time
employees to give them more off-worktime. This gives employees more
opportunity to interact and engage withpeople outside the company and withsociety in general, which they can use
to create greater value at work. In
addition, we have made teleworking
and flextime an integral part of flexible
working arrangements available toemployees.

Our hiring criteria are based on
applicants’ readiness to embrace thecompany’s mission and values, workwith other team members, and take onchallenging tasks–not on theiracademic and professional backgrounddescribed in their resumes. Applicants’nationalities, gender, or academic andprofessional background are no longer
part of our hiring criteria. Starting in FY
2023, job-seeking students are notrequired to submit application
documents for preliminary screening orresumes for initial job interviews.

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Our Mission II
Wisdom and Life are Inﬁnite.
Through changes in our surroundings and the evolution of sympathy,
the formation of external and internal relationships creates us.
There are no stable phenomena; the universe is in ﬂux.

Because we are who we are, we need to have a good relationship with inﬁnite life.
Our hearts hold everything that humanity seeks.
What humanity seeks is to protect the dignity of our future children.
We have the passion to give this goal a form and oﬀer it.

We declare:
To attest that life is capital to create value,
To give priority to building cyclical relationships for realizing a sustainable society,To conduct only business that contributes to increasing natural capital and relational capital,
and To protect the dignity of living systems.

AMITA HOLDINGS Co., Ltd.
535 Akinono-cho, Oshikoji-agaru-Karasuma-dori, Nakagyo-ku, Kyoto 604-0847, Japan
TEL: +85-75-277-0378 (main switchboard number) E-MAIL: press@amita-net.co.jp
Listed on TSE Growth Market (stock code: 2195)
https://en.www.amita-hd.co.jp

Published by AMITA HOLDINGS CO., LTD.
Editorial responsibility acknowledgedby the editorial team of AMITA HOLDINGS CO., LTD.
© 2024 AMITA HOLDINGS CO., LTD. All Rights Reserved.