Earnings Briefing
for the Fiscal Year Ended December 31, 2022 (FY 2022)
February 24, 2023

AMITA HOLDINGS CO., LTD.
(Stock code: 2195 on the Growth Market of the Tokyo Stock Exchange)©
© 20232023 AMITA
AMITA HOLDINGSHOLDINGS CO.,CO., LTD.
LTD. AllAll Rights
Rights Reserved.
Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

1

01

AMITA Group’s Business Overview and
Its Initiative and Commitment toCreating an Ecosystem Society by 2030
(AMITA Vision 2030)

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

02

Consolidated Financial Results for FY 2022
KARAKAMA Shinichi
Director
AMITA HOLDINGS CO., LTD.

03

Business Achievements in FY 2022 andMedium-Term Management Plan for FY 2023-2025
SATO Hiroyuki
President and COO
AMITA HOLDINGS CO., LTD.

© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

2

01

AMITA Group’s
Business Overview and
Its Initiative and Commitment toCreating an Ecosystem Society by 2030
(AMITA Vision 2030)

KUMANO Eisuke
Chairman and CEO

AMITA HOLDINGS CO., LTD.

© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

3

AMITA’s Mission

AMITA brings
a misguided modern
society back on track.

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

In a modern society, while people may have achieved
greater material prosperity than their ancestors, they areleft with an unfulfilled inner longing as a result of thedeteriorated natural and relational capital that comes witheconomic growth.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

4

About the AMITA Group
Stock code: 2195
on TSE Growth Market(As of January 31, 2023)

AMITA HOLDINGS CO., LTD.
Head office: Nakagyo-ku, Kyoto, Japan
Headed by KUMANO Eisuke, Chairman and CEO
SATO Hiroyuki, President and COO

Wholly owned subsidiary

Wholly owned subsidiary

Established: April 1, 1977
Capital: 483,560,300 JPY
Number of employees: 233 (consolidated)
Note: Corporate officers and temporary employees not included.

Wholly owned subsidiary

Joint venture

Joint venture established by
AMITA HOLDINGS andMCP Japan Holdings

Transition strategy business

Circular materials business

Ecosystem co-creation businessLow-carbon transition advisory

Assist businesses in achieving greater
corporate sustainability•Develop strategy•Define a vision•Create circular business •Provide
environmental
modelsassessment and•Provide ICT solutions•Provide business-process certification
outsourcing
Assist municipalities in achieving greatercommunity sustainability• Create a circular community design• Create a social business in a community
Operate social systems designingbusiness outside Japan• Operate resource-recycling business in
Malaysia

Provide end-to-end solutions for sustainableprocurement and resource utilization

Leverage Web3 technology to provide aplatform for creating an ecosystem society• Develop circular materials• Develop circular technologies• Convert waste into circular materials forindustrial use• Provide a circular platform• Establish a DAO structure to carry out solution
development projects• Build a network for co-creating value• Assist with proof-of-concept field tests• Assist in issuing tokens (cryptocurrency)

Assist businesses in defining and refining
their low-carbon transition strategy• Assist businesses in meeting globally acceptedsustainability requirements• Assist businesses in addressing concerns offoreign investors about corporate environmental
risks and greenwashing practices• Assist businesses in meeting national andregional environmental targets© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

Wholly owned subsidiary in Malaysia

Joint venture in Malaysia

AMITA ENVIRONMENTAL STRATEGICSUPPORT (MALAYSIA) SDN. BHD. (AESS)AMITA BERJAYA SDN. BHD.
Joint venture established by AESS andthe Malaysia-based BERJAYA Group5

AMITA Group’s Business Lines at a Glance
Assisting businesses in defining andrefining their low-carbon transition
strategy
Cross-industry corporate
alliance that drives a circular
economyAn independent consultancy specializing in
assisting businesses in defining their lowcarbon transition strategy, including
managing environmental risks andachieving greater competitive advantage

Developing and designing a token
economy to help create an
ecosystem society
Assist local communities and operators ofoffice and commercial complexes indeveloping a token economy to encourage
residents and customers to engage insocially responsible behaviors

Create a society in which
tangibles, information, andthoughtfulness to others are all
circulated

Circular materials business
Produce alternative resources; produce
circular materials that contribute to reduction
in supply-chain CO2 emissions andrestoration of ecosystem services

Overseas trading business

Assisting businesses in making
the transition to ecosystemdriven business management

Import and export industrial byproducts andwaste, serving as a middleman between
providers and businesses that convert theminto alternative materials and fuels

Assist clients in developing circularbusiness models to achieve greater
corporate and social sustainability

Resource-collection site that
promotes mutually supportive
engagement amongcommunity residents
Provide comprehensive solutions
to community, business, andsocial issues© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

Providing ICT solutions andoutsourcing services forenvironmental management
Assist businesses in managing
environmental practices in their factories
and distribution centers at significantly
lower cost and risk

Circular business in Malaysia
A joint venture with a local business,engaged in recycling industrial waste into
usable resources by using AMITA’s
proprietary technology

Environmental assessment
and certification services
Certify adherence to standards established byinternationally recognized ecolabels to ensuresustainable procurement of forest and marine
resources

6

AMITA Group by Numbers
Number of employees

Established

Operating profit
margin

1977
233

years
old

ROE

Note: Corporate officers and temporary
employees not included(As of January 31, 2023)

Number ofcorporate andmunicipal clients%2020 2021 2022
2022
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© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

%

Resource-recycling
plants and BIO

Partners’
recycling plants

10

4

4

3

1

in Malaysia,
South Korea,
and Taiwan

25(As of January 31, 2023)(In alphabetical order)

BELL Group
Fuyo General Lease
Kobe, Hyogo Prefecture
MCP Japan Holdings%

MUFG Bank*

Manufacturing60

in Malaysia

Business partnerships signed
in FY 2022 and early FY 2023

Percentage of ourclients among all listed
manufacturers

Number oflisted companies

19

Overseas(For the fiscal year ended
December 31, 2022)

Wholesaling
and retailing

Offices

%

Other

483

Japan

41.4
30.8

Type of clients’ business(included in
the number at left)

Number of
offices andfacilities%

Equity capital ratio

46

1,541

4.8
12.6

Net sales(consolidated)billionyen%(For FY 2022)
Note: Among listed companies as of January 31, 2023,
including parent companies of clients

NTT Communications

10
partnerships

Sanyu Plant Service
Sumitomo Mitsui Trust Bank
Tachiarai, Fukuoka Prefecture
Tokio Marine & Nichido Fire Insurance**Partnerships signed with Codo Advisory, 50% of which isowned by AMITA HOLDINGS

7

The global supply chain that sustained the Japanese economy
relies on the global procurement offinite natural resources.
has sustained the Japanese economy for decades.
Japan

Overseas
Importing materials
and finished products
Materials
procurement
Production

Global network of
production

Manufacturing and export were the key drivers of
the Japanese economy.
Japanese manufacturers procured vast quantities ofcheap materials from overseas.

2008 global financial crisis, 2011 Great East Japan Earthquake,
COVID-19 pandemic, Russia-Ukraine conflict

Risks of climate change and depleting natural
resources have become increasingly serious.
Surging and volatile materials costs
Japanese market becoming smaller and smaller
due to an aging and shrinking population
Population:

119.12 million¹

Prediction
for 2030
Percentage of people
aged 65 and older:

31%¹

88.08 million
projected for 2065

One in three isaged 65 or older

has lost its relevanceThe traditional industrial model

Stagnant Japanese economy
Its GDP and average annual income per capita²

have remained unchanged over the past 20 years .

Global supply chain was working.
1. Source: "White Paper on Land, Infrastructure, Transport and Tourism in Japan, 2019",
published by the Ministry of Land, Infrastructure, Transport and Tourism of Japan
2. Sources: For GDP, "Annual Report on National Accounts", published by the Cabinet Officeof Japan; for average income per capita, OECD. Stat, published December 2021
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
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8

Switching to creating domestic demand with a circular economy

77

Potential domestic demand fulfilled
by materials procured at hometrillion yen

Pioneering
method

01 Establish a circular platformthat enables sustainable resource procurement at home

Having a hardware and software
platform is essential to circulating
resources at home.

Total added value of domestic consumption
created by materials produced at home** AMITA’s estimate based on final consumption expendituresof households, the import penetration ratio, the gross profit
margin in the Japanese manufacturing sector

46

trillion yen

Total value of imported materials that
could be switched to domestic materials
Imports and Exports by
Principal Commodity for 2021

Pioneering
methodExports
Imports

Foodstuff
Raw materials
Mineral fuels
Chemicals
Manufactured goods
Machinery
Electrical machineryTransport equipment
Other

31

trillion yen

Total
imports in thethree categories
with a higher
degree ofdependence on
importSource: "Foreign Trade 2022," published by Japan Foreign Trade Council

02 Expand circular business models
that would create more value than investing

Today Market driven by a

traditional produce-andsell business model

Tomorrow Market driven by acircular business model…
A shrinking population means ashrinking market.

…

Servicising andsharing models

Corporate ESG procurement practices and consumers’ ethical buying practices
are the key drivers for a circular economy.

AMITA intends to be at the forefront in creating sustainable domestic
demand by providing a circular platform to key industry players.
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9

Sustainability Markets AMITA Pursues
Estimated market size of
SDGs-related business

The Japanese
government aspires
to boost the nation’s
circular economy byMarket size of circular
economy business

Market size of
global warming
mitigation business

National budget for
caring for people feelingisolated and lonely

30 trillion yen
Global3,000
trillion plus yen
in 2017
Basis of calculation: 1 USD = 120 JPY

Source: "Final Report on SDGs Business Potential
and Rules Development," published by Deloitte
Tohmatsu Consulting in 2018

GlobalJapan

Projected to reach

540 53.7

trillion yen by

2030

trillion yen
in 2019

in 10 years.

80
trillion plus yen
in 2030

Source: "Second Review of the Fourth Fundamental Plan for Establishing a Sound Material-Cycle Society andthe Development of a Road Map for the Circular Economy," published by the Ministry of the Environment

Japan

Japan

53

62.8

trillion yen
in 2050(projected)

billion yen
for FY 2022

Source: "Report on the Market Size and
Employment in the Environmental
Industry," published by the Ministry of
the Environment in June 2022

Source: "Overview of Proposed
Budget for FY 2022," published by the
Ministry of Health, Labour and Welfare

AMITA aims to achieve net sales of 8.4 billion yen in FY 2025
by providing a broader range of solutions and services primarily for driving acircular economy and, secondarily, for mitigating global warming and caring
for people feeling isolated and lonely.

© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

10

AMITA’s Two Key Competitive Advantages Hard to Emulate
Advantage

01

Proprietary technology to convert waste of unpredictable
quantity, quality, and availability into usable resources andsupply them consistently

Professional expertise incontrolling the unpredictable

Waste of unpredictable quantity,
quality, and availability

Advantage02

An organization in which ordinary people can dosomething extraordinary

Ability to use collective wisdom tocreate greater value

Consistent supply ofrecycled resources

Proprietaryknow-how toanalyze andprocess
incoming
waste

AMITA’s corecompetency

Turning the unpredictable
into the predictable

Applies to consulting, environmental assessment and certification, andcommunity designing services.

AMITA’s
corporate
cultureDeeper engagement among teammembers creates greater value

Pursue not a better "work-life balance" but one’s "life’s work" with like-minded
team members

January 2023
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© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

Offered employees a shorter, 32-hour workweek
and a pay raise.

11

AMITA’s Business Models
Uniqueness

01

Making advance investments in providing

the right commercial solutions tounmet social needs

Uniqueness

02

Emulating a natural ecosystem in business andcommunity management

Provide solutions forecosystem-driven managementof businesses and communities
It is a model that pursues a circular design, the bestinterests of the whole system, and a dynamic balance—a radical departure from traditional industrial models.

Fulfilling identified
market needs ishighly competitive.

Metabolic functions consisting of anabolism
and catabolism turn the unpredictable into thepredictable.

Red ocean market

Essence of an ecosystem

AMITA identifies unmet
social needs and makes
advance investments inproviding the rightcommercial solutions tothem before anybody
else does.

© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

Fulfilling unmet
social needs is
co-creating value.

EssenceEssenceEssence

01

02

03

A circular designthat produces no waste

The best interests of
the whole system
outweighing those of its
parts

Dynamic balancethat maintains stability
while constantly
changing

AMITA’s approach

Pursue a blue ocean
strategy and market

12

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

Socialissue

Increasing public demand for anti-pollution measures;
soaring procurement costs of materials in a financial slump
Socialneeds

1990Socialissue

Fast-paced deterioration of the natural environment;
widespread depletion of natural resources
Socialneeds

2000

Greater environmental performance

More rigorous enforcement of regulations andSocialinternational standards on environmental management
issue

Social
needs

2010
2020

Alternative resources in place of natural resources

Balancing environmental risks and costs

Social Pervasive anxiety and loneliness among people
issue

Socialneeds

Socially driven circular economy

AMITA’scommercial
solutions

AMITA’scommercial
solutions

Uniqueness of AMITA’s business models 01

Turning a volatile supply of waste into a stable supplyof usable resources

Closed-loop resource-recycling services
Assessing and certifying the traceability in materials
procurement

Environmental assessment andcertification services
Balancing the risk control and the allocation of
corporate resources

AMITA’scommercial
solutions

Cloud-based services for environmental
management
End-to-end environmental solutions
Designing a virtuous cycle of tangibles, information,and people’s thoughtfulness to others

AMITA’scommercial
solutions

MEGURU STATION®
J-CEP
Program for developing circularbusiness models

2022
2023

Socialissue

Increasingly stringent environmental restrictions;deepening global divide
Socialneeds

Achieving low-carbon business managementthat meets globally accepted standards
Visualizing and deepening engagement withstakeholders© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

AMITA’scommercial
solutionsLow-carbon transition advisory
Token services driven by Web3 technology

13Uniqueness of AMITA’s business models 02

Uncovering and networking implicit value
is key to achieving ecosystem-driven business management
BackgroundImpact of climate change becoming increasingly serious; financial market becoming responsive to environmental risks

Emerging need to uncover and network previously implicit value
GlobalFrom 2022
to 2024The Japanese
government andindustry are likely tofollow suit.

The European Commission has been implementing new regulations on sustainable products.

Digital Product Passports (DPPs) have been progressively introduced
to key industries in the EU.
All regulated products must have DPPs to be traded.
DPPs enable access to products’ traceability information, such as materials used, manufacturing processes,
and supply-chain CO2 emissions.

DPPs verify products’ sustainability and help reduce environmental risks.
The likely implementation of DPPs in Japan will help achievea society in which businesses’ ecological procurement practices
that deepen engagement with their stakeholders will become the norm.

AMITA intends to establish the MEGURU PLATFORM
as a basis for a circular society.
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14

MEGURU PLATFORM
brings us closer to an ecosystem society
MEGURU PLATFORM
Changes in people’sHome
attitudes andbehaviors
livingCircularpurchasing
practices

Changes in value
Circular products and services

Greater community
engagement

Residents

Changes in business practices

Changes inpeople’s attitudes
and behaviors

Circular business

Ecosystem thatdrives resource
circulation

Circularlifestyle© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

Business
operators

Traceability

CO2 emissions

Changes in value
Circular materials

MEGURU FACTORY

MEGURU STATION®

DX solutions tovisualize previously
obscured value

Enhanced value

Optimized circulation

Bringing in household waste

Businesses

Changes inbusinesspractices
Circularprocurement
practices

Social engagement
capitalDemand prediction

Resources stocked
in distribution
channels15

Circular
lifestyle

MEGURU PLATFORM transforms
industry and people’s everyday lives
Information about residents’ resource usage andbehaviors enables business operators to:

Business
operators

Product information about ingredients,
manufacturing processes, supply-chain CO2emissions, method of collecting packages andcontainers after use, recycling method

Predict consumer demand for products
and the procurement need for materials

Makingto meet the demand.

accessible for each producttraceability information
Socially

Transformation

Transformation

Transformation

01

02

03

Use demand-prediction data

Locally procure circular materials

Enable consumers

to more precisely control
production volume

to reduce supply-chain CO2emissions and ensurestable supply of materials

to make socially motivatedbuying decisions© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

I’m looking for motivatedeco-friendly
consumerproducts.
I want to buy
from socially
responsible
brands.

16Road Map from 2021 through 2030
Diffusion of Innovation Theory

Coast-to-coast
coverage

16% Rule: When the adoption rate of a new product or service
reaches 16% among innovators and early adopters, the productor service starts enjoying a broader acceptance among
consumers.
Number of users

Innovators

Early
adopters

2.5% 13.5%
16.0%

Early
majorityLatemajority

34.0 %

34.0 %

50,000Laggards

16.0%

Time

locations

Adoption rate
Source: “Diffusion of Innovation Theory for Beginners,”
published by UTokyo Innovation Platform Co., Ltd.

MEGURUFACTORY in

16%

20
prefectures

MEGURU STATION®
Number of regions served
Number of installations

2 regions 3 regions 5 regions
2 locations 5 locations 50 locations
2021 2022 2023

Total number of users per year

Percentage of population covered© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

0.6 million

10,000From 2030 onward,
MEGURU STATION®
will be widely installed all overthe country and provide a solid
infrastructure for the social
impact business.

locations

2026

2030

240 million

1.2

4%

20

2033

%

2036

billion

45

%

70

%

17

AMITA’s Corporate Strategy:
Deepen Engagement with Stakeholders

PikaiaCorporate organization
with an exoskeletal
structure

Anomalocaris
Life forms with an exoskeletal structure
emerged to survive in the struggle forexistence during the Cambrian Period.

It is a rigid organization enclosed in a hard silo.
It may be solid and self-sufficient but is vulnerable to externalchanges.

Corporate organization
with an endoskeletal
structure

In the aftermath of the Cambrian
Explosion, life forms with an endoskeletal
structure, from which human ancestors
were descended, came into being. They
were able to exercise efficiently and get
physically bigger as they matured.

It is a more flexible organization in which an endoskeletal
structure protects its core competences inside, and which isseparated from its external environment by a thin layer.

AMITA has chosen to have an endoskeletal corporate structure,
to be able to engage and work with external stakeholders
and better adapt to fast-changing business environments.
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© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

18

How deeper engagement with our stakeholders
increases our operating capital
Natural and relational capitalis continuously enhanced ina virtuous spiral.

Create even morerobust operating
capitalShare even greater
value with customers
and stakeholders＝ Deeper engagementwith our stakeholders
When your corporate vision
resonates with stakeholders,
you can foster engagementwith them at a low transaction
cost.

Win buy-in from evenbroader stakeholders
People Tangibles
Information

Createrobust operating
capitalShare value
with customers andstakeholders

Funds

Residents

Win buy-in frombroad
stakeholders’s management styleBusinesses
Municipalities

AMITA’s corporate vision© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

Universities andresearch institutions

Reinvest profit indeepening engagementwith stakeholders toincrease
operating capital
19

Organizational Realignment and Change in Leadership Team
Split an existing operating
subsidiary into two entities

Established a new leadership team at
Effective March 2023 AMITA HOLDINGS

Purpose To achieve greater operational agility and excellence

Purpose To make the Company’s operating foundation more robust
and increase the Group’s enterprise value

January 2023

KUMANO Eisuke

Simplified incorporation-typecompany split(effective January 5, 2023)

Chairman and Chief Visionary Officer

Develops corporate strategies, business initiatives, and investment plans from a
broader perspective to maximize the Group’s enterprise value; leads the Group’s longterm business development efforts; and nurtures and develops relationships withstakeholders

SUETSUGU Takahide

President and Chief Integrated Operations Officer

Plays the role of COO and CFO; oversees the Group’s day-to-day business
operations; develop the Group’s quantitative growth strategy; and engages withinvestors, analysts, and financial institutions

SATO Hiroyuki
Transition strategy business

Assist businesses andmunicipalities in achieving
greater corporate andcommunity sustainability
Operate business outside
Japan
Operate resource-recycling
business outside Japan© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

Circular materials business

Provide end-to-end solutions
for sustainable procurement
and resource utilization

Vice Chairman and Chief Engagement and Partnerships Officer

Cultivates a can-do culture throughout the organization; maintains engagement withexternal stakeholders; and leads the Group’s efforts to continually increase its
operating capital

KARAKAMA Shinichi

Director and Chief Growth Officer

Develop and implement comprehensive business growth strategy based on soundcapital policy

OKADA Kenichi

Director and Chief Strategy Officer

Devise corporate management strategy and develop new business to fulfill unmet social
needs

20

In March 2022, the AMITA Group announced
its commitment to pursuing
stakeholder-centric business management.
It is a commitment to pursuing the best interests ofsociety in our business.

© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

21

02

Consolidated Financial Resultsfor FY 2022
KARAKAMA Shinichi
Director

AMITA HOLDINGS CO., LTD.

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© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

22

While the Group missed its initial guidance for FY 2022 as corporate clientsrescheduled the implementation of their ESG initiatives due to fast-changing
business environments, we achieved a year-on-year increase in net sales, operating
profit, and ordinary profit.

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

FY 2021
results

Net sales

5,157

Initialguidance for
FY 2022

5,248

FY 2022
results

YoY change(YoY percentage change)

4,824

－²

Based on previous
accounting standard¹ 5,330+172

Diff from initial
guidance(Percentage diff)

-423
-8.1%

+3.3%

Operating profit

560

803

609

+49

-193

+8.9%

-24.1%

Ordinary profit

629

892

715

+86

-176

+13.7%-19.8%

Profit attributable toowners of parent

632

604

531

-101

-72

-16.1%-12.1%Net sales

Net sales reported for FY 2022 based on the newly adopted Accounting Standard for Revenue Recognition were 4,824 million yen; they would have been up by
172 million yen YoY if reported on the basis of the previous standard. Revenue increase came from the Cyano Project and environmental assessment andcertification services, as well as from sales of recycled silicon.

OperatingOperating profit for FY 2022 increased to 609 million yen from the previous year, reflecting an increase in net sales before factoring in the impact of the applicationof the Accounting Standard for Revenue Recognition.

profitOrdinary profit
ProfitOrdinary profit for FY 2022 increased to 715 million yen, reflecting increases in operating profit and in the share of profit of entities accounted for by using equity
method from Malaysian operations (especially from a tax credit for green investment).
Profit for FY 2022 decreased to 531 million yen, as a reduction in tax expenses associated with the absorption-type merger of subsidiaries that had taken place inthe previous year was smaller, which more than offset an increase in ordinary profit.
1. Assuming that the same accounting standard applied to reporting net sales for FY 2021 and FY 2022
2. Effective at the beginning of FY 2022, the Company has adopted the Accounting Standard for Revenue Recognition. YoY change in net sales between FY 2021 and FY 2022 is not provided in the table, as different accounting standards applied to
FY 2021 and FY 2022 and thus it would not be an apples-to-apples comparison.

© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

23

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

As ofDecember 31, 2021
2,346
2,080

As of
December 31, 2022
2,769
2,054

4,427

4,824

+396

1,312
1,660

1,269
1,554

-43
-106

2,972

2,823

-149

474
244
728
(0)

480
250
1,225
(0)

+5
+5
+496

1,448

1,955

+507

Accumulated other comprehensive
income6

39+32

Share acquisition rights

-

6

+6

Total net assets

1,455

2,001

+546

Total liabilities and net assets

4,427

4,824

+396

AssetsCurrent assets
Non-current assets

Total assets
Current liabilities
Liabilities

Non-current liabilities
Total liabilities
Share capital
Capital surplus
Retained earnings
Treasury shares

Net assets

Total shareholders’ equity© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

YoY change
+423
-26

-

24

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

FY 2021

FY 2022

YoY change

Net cash provided by operating activities

873

585

-288

Net cash provided by (used in) investing
activities

(73)

(69)

+4

Net cash provided by (used in) financing
activities

(649)

(142)

+507

Net increase in cash and cash equivalents

154

389

+234

Ending balance of cash and cash equivalents

1,390

1,779

+389

© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

25

Key Financial Metrics
Operating profit
margin (%)

Note: Effective at the beginning of FY 2022, the Company adopted the
Accounting Standard for Revenue Recognition.
Operating profit margin for FY 2022 would have been 11.4%, based on theprevious standard.

10.9

2.9
2018

FY
2022

5.0

12.6

7.3
2019

2020

2021

2022

47.0

2018

FY
2022

63.0

55.9

2019

18.8

2020

2021

2022

Equity capital (net assets) increased.
• The posting of profit for the year bolstered retained earnings.
• Raised funds through the issuance of share acquisition rights.

14.3

30.8

10.1

9.0
0.7

2019

11.1

41.4

Return on asset (ROA) (%)

Return on equity (ROE) (%)

FY
2022

32.9

6.3

The application of the Accounting Standard for Revenue Recognition
affected the operating profit margin.
Gross profit margin was up on revenue from closed-loop recycling,
environmental assessment and certification, consulting, and ICT solutions
services.
Revenue grew from high-margin environmental assessment andcertification services, and from consulting services.

2018

Equity capital ratio (%)

2020

2021

2022

2018

11.0

4.2
2019

2020

2021

2022

The posting of profit for the year bolstered retained earnings, which in turn increased equity capital.
ROE and ROA for FY 2023 and FY 2024 are projected to decrease as we plan to raise funds through the issuance of share acquisition rights, which will bolster the equity
capital level (net assets).

© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

26

Year-End Dividend Policy
Over the next several years, we will invest aggressively in developing and providing integrated new services to meet the growing needs of businesses and municipalities toachieve greater sustainability. During this period, we will return up to 10% of annual profit to shareholders as year-end dividends.
The year-end dividend rate for FY 2022 has been set atyen, with a dividend payout ratio of 9.9%, pending a resolution at the general meeting ofshareholders scheduled for March 23, 2023.

3.00

FY 2021

FY 2022

Record date

December 31, 2021

December 31, 2022

Dividend rate

30.00 yen (dividend payout ratio: 5.5%)

Total amount of dividends

35,075,190 yen

52,642,410 yen

Effective date

March 18, 2022

March 24, 2023

Source of dividend payment

Retained earnings carried forward

Retained earnings carried forward

3.00 yen (dividend payout ratio: 9.9%)
Note: Would be 45.00 yen without a stock split.

Our Policy on Shareholder Return and Dividend
The AMITA Group’s purpose is to achieve a sustainable society in which natural and relational capital will be enhanced in a virtuous circle as society grows. To put this purpose into practice, theGroup implements stakeholder-centric business management practices that pursue the collective best interests of shareholders, clients, business partners, employees, and communities. The
AMITA Group intends to invest aggressively in developing new business and markets to become more resilient against future risks in an increasingly volatile business environment. This attempt
will enable the Group to become more competitive and increase its enterprise value, which will in turn ensure the Group’s sustainability for the collective best interests of stakeholders. This
attempt will also enable the Group to return profit to stakeholders in the medium and long term. Over the next several years, we will invest aggressively in developing and providing integrated
new services to meet the growing needs of businesses and municipalities to achieve greater sustainability. During this period, we will return up to 10% of annual profit to shareholders as yearend dividends. The Group intends to make its financial position well-balanced and make its business foundation more robust, so that the Group will be able to achieve its long-term goal of
returning up to 30% of its annual profit to shareholders.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

27

AMITA Group’s Financial and Business Achievements
in FY 2022
Nov. 10

Resolved to change the trade name of aconsolidated subsidiary and establish a new
subsidiary through a company split.

Mar. 17

Announced a commitment to pursuing
stakeholder-centric business
management.

2021

Financial
topicsJan 2022

Feb

Jan. 1
Enacted 5-for-1
stock split.

Mar

Apr

Feb. 14
Announced resumption ofdividend payment.

Note: 5-for-1 stock split announced
on November 26, 2021.

May

Jun

Nov. 24
Announced AMITA Vision 2030.

Jul

Aug

Aug. 26
Announced 3-for-1
stock split anddividend increase.

See Topic 01

Oct

Nov

Oct. 1
Enacted 3-for-1
stock split.

See Topic 01
Mar. 28
Codo Advisory, an AMITA Group company, established.

Feb. 21
Entered into strategic partnershipwith MCP Japan Holdings.

Business
topics

Sep

Dec

2023

Dec. 2
Announced issuance ofshare acquisition rights.

See Topic 02

Oct. 13Signed MOU with NTT Communications.

Nov. 15
Codo Advisory entered into cooperative
business agreement with MUFG Bank andTokio Marine & Nichido Fire Insurance.
Aug. 29
Mar. 8Jun. 1The second MEGURU STATION®
Entered into cooperative
Entered into businessNov. 18
became operational in Kobe.
business agreement withpartnership agreement with the
Signed MOU with
Sanyu Plant Service.
city of Kobe, Hyogo Prefecture.
Sumitomo Mitsui Trust Bank.
Jan. 7
Sep. 17
The first MEGURU STATION® became operational in
The second MEGURU
Nov. 22Jun.
10
Tachiarai, Fukuoka Prefecture, under a comprehensive
STATION® became
Signed MOU withAMITA and Chiba University
partnership between AMITA and the town.
operational in Tachiarai.
Fuyo General Lease.
verified MEGURU STATION®’s
Initiative to redesign industry
benefits to peoples’ well-being.
Initiative to redesign community
Corporate initiative© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

Jul. Started offering a shorter 32-hour workweek
to employees on a trial basis.

28

FY 2022
Financial

Enacted a stock split twice during the year

Topic 01

to attract more shareholders who support our corporate mission.
We have been attracting more and moreshareholders who support our corporate
mission.

To make it easier to invest in AMITA

Number of Shareholders

11.6x

Increase the stock’s liquidity
Bring the minimum amount of investment down

2,890
5-for-1 split
January 2022
before stock split
Total
number ofissuedsharesTotalnumber of
authorizedshares© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

3-for-1 split

January 2022
after first stock
split

October 2022
after second stock
split

1,455

1,169,424

5,847,120

17,541,360
250

2,400,000

12,000,000

589

36,000,000
Jun. 30, 2021

Dec. 31,2021

Jun. 30, 2022

Dec. 31,2022

29

FY 2022
Financial

Topic 02-1

Issued share acquisition rights
to fund AMITA’s Initiative and Commitment to Creating an Ecosystem Society by 2030.

Intended use of raised funds

To develop and provide the MEGURU PLATFORM to nurture two new key growth drivers—a circular supply chain and a locally networked economy

Use To accelerate expanding the network of MEGURU STATION®,

01 which is the centerpiece of MEGURU PLATFORM
Use

To develop a blockchain-based system

02 that supports the MEGURU PLATFORM
Use

To expand the silicon-recycling capacity

03 at the Kitakyushu Sustainable Resource Management Center© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

Amount to be raised(in millions of yen)

1,534
300
450
30

FY 2022
Financial

Topic 02-2

Issued share acquisition rights
to fund AMITA’s Initiative and Commitment to Creating an Ecosystem Society by 2030.
The first issuance of share acquisition rights with the clauses allowing the Company to revise exercise
prices and to set a non-exercisable period

Overview

Allotted party
Amount of funds to be raised
Number of share acquisition rights
Number of potentially dilutive
shares and dilution ratio
Exercisable period
Initial exercise
price
Maximum
Exercise
price

Minimum
Revising exercise
priceMizuho Securities Co., Ltd.
2,284 million yen at initial exercise price
20,000
Number of potentially dilutive shares: 2,000,000 (corresponding to 20,000 voting rights); dilution ratio: 11.41%,
obtained by dividing the 20,000 voting rights by a total of 175,335 voting rights as of June 30, 2022, with the stock split of
October 1, 2022, taken into consideration
Two years from December 20, 2022, through December 19, 2024
1,149 yen per share, which is equal to 92% of the closing quote of 1,249 yen on December 1, 2022, which was the last
trading day before the date of resolution on issuanceNone

1,149 yen per share, which is equal to 92% of the closing quote of 1,249 yen of the Company’s common stock on
December 1, 2022, which was the last trading day before the date of resolution on issuance
The Company may revise the exercise price to the amount equal to 92% of the closing quote of the Company’s common
stock on the last trading day before each date of exercise request. However, if the revised value falls below the minimum
exercise price shown above, the minimum exercise price shall be the exercise price.

Non-exercisable period

The Company may set a non-exercisable period for the allotted party between December 21, 2022, and June 19, 2024.

Option to purchase rights

The Company may purchase remaining share acquisition rights at the issuance price, with an advance notice of two
weeks or longer.

© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

31

Market Capitalization of AMITA HOLDINGS(In billions of yen; amounts rounded down to the nearest billion yen)

Up

106
107
Up

%

億円増
YoY

Up

20.5

Up

186%
億円増
YoY

9.9
3.6

3.5

3.4

2018

2019

2020

2021

6x
2022

Note: Based on the closing quote of the Company’s stock as of the last trading day of December each year.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

32

We intend to raise funds to makethe Group’s financial foundation more solid andincrease the Group’s enterprise value.
This is part of laying the groundwork for the Business
Expansion Phase, scheduled to start in FY 2024.

© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

33

Business Achievements in FY 2022
and Medium-Term Management Plan

03

for FY 2023-2025

SATO Hiroyuki
President and COO

AMITA HOLDINGS CO., LTD.

© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

34

FY 2022
The Second Year of Phase 1: Business Development

2030
AMITA Group toestablish theSocial Systems
Design Business2027

Key strategic initiatives for FY 2022-2024 (announced February 2022)

AMITA Groupto celebrate its

2030

50

1. Establish business to assist businesses in developing andimplementing a transition strategy for greater corporate sustainabilitythanniversary

2029
2028

2. Develop business to assist municipalities in developing andimplementing a strategy for greater community sustainability

2027

Phase 3: Accelerated
Business Growth
Create novel value to achieve
greater social sustainability

2026

3. Expand business and invest sensibly in growth
categories

4. Make the Group’s operating foundation morerobust as a basis for implementing Key Initiatives
1, 2, and 3

2021
AMITA Groupannounced its
commitment tobecoming the
Future-design
Company.

2024

Phase 2: Business Expansion
Assist more businesses and municipalities in adopting
AMITA-designed industrial and community platforms

2023
2022

Phase 1: Business Development2021© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

2025

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

35

Business
Achievements Developed and provided a broader range of service products andin FY 2022
solutions and aggressively pursued strategic partnerships
Redesigning industry: Assisting businesses in achieving greater corporate sustainability
Social Systems Design Business

Consulting on corporate sustainability

Revenue from assisting businesses in developing circular business models jumped 78% YoY.

Closed-loop resource-recycling services in Japan

Revenue remained flat from a slightly reduced volume; profit margin was up as a result of streamlining
business processes.

Silicon recycling services

Revenue was bolstered by industry’s surging demand for semiconductors; ramped up recycling capacityof our plant.

Closed-loop resource-recycling services in Malaysia

An increase in product shipments and recycling volume of nickels bolstered the bottom line.

Environmental assessment and certification services

The number of corporate clients increased by 23% YoY, mainly for FSC® CoC certification services.

Redesigning communities: Assisting municipalities in achieving greater community sustainability
Operated MEGURU STATION®—a resource-collection site that promotes mutually supportive engagement among community residents—in five locations in three municipalities;
AMITA and Chiba University verified its benefits to people’s well-being.

Partnerships: Platforms to promote greater resource circulation and relationship-building
Corporate membership of J-CEP*, which drives a circular economy in Japan, increased from 32 at the end of 2021 to 44 a year later; some J-CEP members participated in
MEGURU STATION® project in Kobe.
Entered into strategic partnerships with eight companies and two municipalities to jointly pursue new business opportunities.
Established Codo Advisory, an AMITA Group company tasked with assisting businesses with their low-carbon transition strategy*J-CEP: Japan Circular Economy Partnership© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

36

Redesigning
Industry

Revenue was up from assisting clients in fulfilling theirgrowing need to achieve greater corporate sustainability

Consulting(1)
Background

Data

01

There has been a growing need among businesses to switch to circular businessmodels in an underlying trend toward a circular economy and carbon neutrality.

We won Cyano Project contracts from more corporateclients in FY 2022 than in FY 2021.

Data

02

Offering more-relevant value bolstered consulting
revenue.

Project
examplesAssisting corporate clients in developing circular business models,designing their prototypes, conducting proof-of-concept field tests,
and developing business plans

Won

38

project contracts during FY 2022,
compared with 24 in FY 2021.

Assisted a leading paint manufacturer in developing paint from recycled resources.
Submitted five proposed circular business models to a leading heavy industry company.
Assisted a leading printing company in collecting and circulating packaging materials.
Consulting revenue

Up

78%

Key driver

Providing end-to-end assistance and upgradedsolutions drove the average per-project revenue up.
Keyinitiativefor
FY 2023

2021

2022

Integrate the Cyano Project into other AMITA services and continue to upgrade our solutions(See the next page for details)

Offer the Cyano Project to a wider range of businesses© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

37

Redesigning
Industry

Consulting

Growing corporate needs for end-to-end assistance—ranging fromstrategy and framework development through to implementationand operation—continue to drive our consulting business(2)

DriverFour

01

key drivers fora new wave of
businesses

CirculareconomyDriver02
Carbonneutrality

DriverDriverAll-embracing&
End-to-end
assistance

03

04
SX and DX

NaturalcapitalCyano ProjectConsulting services
Proactive business management
and value creation

Reactive environmental
and risk management

ICT and BPO solutions for environmental management
Quantitative measurement ofoutcome to drive SX

ICT solutions for ongoing monitoring

Strategydevelopment

Low-carbon transition

Framework
development

Resource circulation

Assisting businesses in defining and refining their
low-carbon transition strategy

Sustainable resource procurement and use to reduce
supply-chain CO2 emissions

Environmental assessment and certification Implementation Circular platform
Professional expertise in assessing
corporate clients’ sustainable procurement
practicesand operation

AMITA’s collaborative network to help corporate clients
reduce their operating costs

Facilitating a transition to a circular business model© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

38

Redesigning
Industry

Closed-loop
resourcerecycling in Japan(1)

Corporate source
Corporate source

AMITA accepts
more thanCorporate user

1,700

Corporate user

types ofwaste a year.

Corporate user

Industrial
waste

Analyze
Analyze waste
at the element level…

Corporate source

AMITA’s proprietary blending technology turns the unpredictable
into the predictable by recompiling information to add new value

Blend

…

Use recycled materials
as alternative fuels,
cement raw materials
and fuels, and raw
metal materials

Choose the right mix andblend to meet corporate
users’ requirements

AMITA converts industrial waste of unpredictable availability, volume,and properties into usable alternative resources and supplies them tocorporate users consistently.
Analyze© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

Analyze

Blend

Recycled materials

This process does
not require water orflame.

Low
environmental
load

39

Redesigning
Industry

Closed-loop
resourcerecycling in Japan(2)

Streamlined business processes drove the profit
margin up, even from a slightly reduced volume

Background

Japanese manufacturers cut back their production volume amid the destabilizedinternational situation and surging materials costs.

Procurement risks for materials became more evident to businesses.

Data

01

Revenue remained flat and the gross profit margin was
up YoY, even though the processed volume was slightly
down in our plants.
Key driver

Operating Profit Margin (%)

28

30

2018

2019

34

35

36

2020

2021

2022

Streamlined business processes

Data

02

Industrial demand for recycled resources and theircircular use has been growing.

Number of inquiries frompotential corporate customers

1.5 to 2x.
© 2023 AMITA HOLDINGS CO., LTD. All Rights© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
©Reserved.
2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

40

Redesigning
Industry

Closed-loop
resourcerecycling in Japan(3)

An organizational realignment and corporate partnerships drive
the evolution of the resource-recycling business into the circularmaterials business
January 2023
Overview

AMITA CIRCULAR CORPORATION
was spun off from AMITA CORPORATION toachieve greater operational agility and excellence.

What we
will donext

01. Develop new circular resources and technologies
Develop circular materials
Their wider use is expected to reduce supply-chain CO2 emissions and help restore ecosystem services.
Project example Produce and provide alternative coals that generate less CO2 per unit of released energy

Integrate the service with the Cyano Project to assist corporate clients in designing a circular process fortheir products

02. Pursue business alliance opportunities with more corporate partners© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

41

Redesigning
Industry

Silicon recycling

Higher revenue driven by industry’s surging demand
for semiconductors
Note: 1 USD = 131 JPY

Global Market for Silicon Wafers(in billions of yen)

Background800

Global semiconductor giants havebeen ramping up their chipproduction.

2016

1,510

Projected tonearlydouble2027 (projected)

Sources: https://semi-journal.jp/business/market/wafer2.html
https://www.gii.co.jp/report/ksi1071484-silicon-wafers-market-forecasts-from.html

Data

01

Industrial needs for recycled silicon have been growing.
We processed
The volume of silicon slurry generated in the
manufacturing of silicon wafers has been growing.

Keyinitiatives
for
FY 2023

Expand sales channels for recycled silicon globally
Increase capital expenditures for
ramping up production capacity

FY 2024 and beyond

Production capacity to increase by5% more silicon slurry

in FY 2022 than in FY 2021.

50

AMITA’s silicon-recycling facility%

with the expansion of the silicon-recycling facility
scheduled for FY 2023 at Kitakyushu Sustainable
Resource Management Center

Keep the production running smoothly and develop value-added products
from industrial waste sourced from chip makers© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

42

Redesigning
Industry

Closed-loop
resourcerecycling outsideJapan

Our resource-recycling business Growing in Malaysia
with profit bolstered by increased shipment volume
AMITA BERJAYA SDN. BHD.

Data

01

Joint venture established by AMITA’s subsidiary in
Malaysia and the Malaysia-based BERJAYA GroupAMITA BERJAYA’s Shipment ofRecycled Materials

AMITA BERJAYA’s shipment of recycledmaterials rose sharply from FY 2021 to FY
2022, partly due to an economic rebound fromthe COVID-19 pandemic in Malaysia.
The company received a preferential tax
credit for green investment sanctioned by the
Malaysian government.

Data

02

AMITA BERJAYA’s export of recycled nickel
materials to Japan surged.

(in thousands of metric tons)

Increasing supply of source materials in
Malaysia and soaring demand in Japan

27

2018

2019

2020

2021

AMITA BERJAYA’s Handlingof Recycled Nickel Materials(in metric tons)

Key driverKey
initiativefor
FY 2023

29
18

12

39

2022

247
Surged12
FY 2021

FY 2022

Expand the corporate customer base for recycled materials in Malaysia; develop new recycled products

Devise a business plan for a closed-loop resource-recycling service in Indonesia

Keep the existing business on a solid growth path andextend the social systems design business more widely into the global market© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

43

Redesigning
Industry

Environmental
assessment andcertification

Due to growing corporate sustainability needs, we assessed morebusinesses for FSC® CoC certification in FY 2022 than in FY 2021
Number of businesses AMITA assessed

Fisherycertification

Topic
Key
initiatives
for FY 2023
and beyond

01

FY 2022

23

23

70%

FSC® CoC certification

502

615

31%

FSC® project certification

42

47

MSC/ASC CoC certification

156

166

82%
50%

ASC aquaculture certification

12

13

100%

1

1

50%

FSC® FM
Forestcertification

FY 2021

AMITA’s share of
the JapanesemarketASC-MSC seaweedcertification

Number of Businesses

AMITA Assessed for
FSC® CoC Certification(estimated)

615
502

402

431

2019 2020 2021 2022

MSC was recognized as a global indicator for action on biodiversity loss by
the UN Biodiversity Conference (COP-15) in December 2022.
Acknowledged as an effective and dependable scheme for preserving biodiversity

Continually improve the effectiveness ofthe quality management system

Consider starting to provide Global G.A.P. certification
services for farm management practices

In a move toward achieving a nature-positive world by 2030, industrial needs forthe sustainable management of forest and marine resources are expected to remain strong.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

44

Redesigning Industry

Group-widebusiness processtransformation

Applied DX solutions to streamlining and transforming
business processes throughout the organization
Overview

We carried out the
the Group.

Amitech project to streamline and transform business processes acrossE-billing system forcreating and sending invoices to customers electronicallyMajorachievements

Operating costs reduced

Automated journal entries foraccounts receivable and payable
E-workflow forKey
initiativefor年
FY 2023

1,454 work hours saved

1,310 work hours saved

5,304
work hours saved
a year2,540 work hours saved

approving, filing, and managing the receipt and placement Greater use of teleworkingof orders
Achieve even greater efficiency and productivity, mainly in sales administration
Make greater use of DX solutions to streamline other business processes, such as operations of ourresource-management centers and client services for environmental assessment and certification

Build a workplace environment in which employees can create greater value for greater profit,
while maintaining a 32-hour workweek© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

45

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

Redesigning
Communities

MEGURUSTATION®
(1)

MEGURU STATION®
01 Promote a mutually supportive community
Municipalities

Assist in caring for andwatching over children

Businesses

Reduce costs of social security
and welfare programs
Use information about
consumer trends and resource
consumption

02 Promote resource circulation
Municipalities

Reduce procurement costs andrisks

MEGURU STATION®’s benefits
to residents’ well-being

Residents

Residents

verified by joint research by AMITA andthe Center for Preventive Medical Sciences at Chiba University

Finding: Nursing care costs of

9.2

million yen over six years

would be saved on 120 residents who regularly visit MEGURU STATION®.
Regular users were found to have significantly lower nursing-care risks after 12 months
of usage than non-users.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

Collecting sorted
household waste

Businesses

Make residents feel more secure
Assisting in watching over theelderly; promotingintergenerational engagement

Reduce environmental
management costs

Achieve a cleaner living
environment and raise ecoconsciousness

Flea markets for used items,
everything-is-free stores

Proposed monetization models
Businesses
Assistance in digital signage advertising
Assistance in collecting used products and containers for recycling
Municipalities
Subsidies or contingency fees in proportion to the extent of resultant
reductions in the environmental management and administrative costsin the community

46

Redesigning
Communities

MEGURUSTATION®
(2)

MEGURU STATION® operated in five locationsin three municipalities in 2022

Case
Tachiarai,
Fukuoka Prefecture

Case
Kobe,
Hyogo Prefecture

Two

Two
locations in
town

November 2021

locations in
town

MEGURU STATION® became operational in
Nagata-ku.
Many NPOs and businesses assisted
in its operation.

January 2022
MEGURU STATION® became operationalin the Hongo school district undera comprehensive partnership
between AMITA and the town hall.

June 2022
AMITA signed a contract with the Kobe City Hall.

September 2022

August 2022

The second station was set up in the Ozeki
school district.

The second resource-collection station was set up
in Chuo-ku.

Case

Ikoma,
Nara Prefecture

Just like the one in Nagata-ku,
the station received fact-finding visitors fromother municipalities and businesses.

From 2019 to 2020
Proof-of-concept field test
Hongo school district

Ozeki school district

Expanded locations into
all of the four school districts of
Tachiarai by February 2023.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

December 2020
MEGURU STATION® became fully operational.

Has since been managed by residents.

Nagata-ku

Chuo-ku

Expanding locations into
other parts of the city47Redesigning
Communities

MEGURUSTATION®
(3)

Accelerate expanding the stations’ geographical coverageKeyKeyinitiatives
initiatives
for
for
FY
FY 20232023

Develop, implement, and validate a geographical expansion model andan associated business model
Expand MEGURU STATION® into 50 locations in 5 communities
Topic

01

February 2023

01. Provide greater value
by working closely withstrategic corporate partners

MEGURU STATION® became operational in all four school districts in Tachiarai, Fukuoka Prefecture,accessible to all Tachiarai residents.

From November
2022 onward

AMITA and Sumitomo Mitsui Trust Bank

Jointly assess the social, environmental, and economic impact of MEGURU STATION ®.
Objectively and quantitatively verify the benefits of the station
Use the findings to drive partnerships with municipalities and businesses

From January2023 onward

AMITA and BELL Group

Make MEGURU STATION® work with a cloud-based system for inventorying andsharing an emergency stock of food, water, and other necessities.

Approaches

Create a social system for bringing greater safety and security to communities

02. Select a municipality in which to implement and validate a proposed expansion model and business model
Define requirements for an expansion model and implement it in a selected municipality
Validate the effectiveness of the proposed business model and information network© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

48

Partnerships
Platform for resource
circulation andrelationship-building

Cross-industry Alliance Drives a Circular Economy

J-CEP (1)

PurposeMember companies bring information, resources, and value to establish
an optimum scheme for resource circulation and create sustainablebusiness models

Find an optimum solution to a conflict between
economic development and environmental
protection

◆
◆
◆
◆
◆
◆
◆
◆
◆
◆
◆
◆

◆ Asahi Kasei Corporation◆ Kai Corporation◆ Kao Corporation◆ Kawakami Sangyo Co., Ltd.
◆ Kracie Holdings, Ltd.
◆ S.T. CORPORATION

Jumpedto28

44

Established in October 2021

◆ DIC Corporation◆ Sunstar Inc.
◆ Shabondama Soap Co., Ltd.
◆ ThreeHigh Co., Ltd.
◆ Toppan Inc.

corporate members and6 observer members

corporate members

As of February 15, 2023

◆ Lion Corporation◆ Mandom Corporation◆ Nestle Japan Ltd.
◆ Pola Orbis Holdings Inc.
◆ UCC HOLDINGS CO., LTD.
◆ Unicharm Corporation

Fujimori Kogyo Co., Ltd.
Marubeni Corporation
Marubeni Forest LinX Co., Ltd.
Consumer products
Mitsubishi Chemical Corporation
Mitsubishi Corporation Plastics Ltd.
Resource-circulation and
Mitsui Chemicals, Inc.
Materials and trading
sustainability
Nagase Plastics Co., Ltd.
Nihon Yamamura Glass Co., Ltd.
Nissha Co., Ltd.
SAKATA INX CORPORATION
Financial
ICT solutions
Sekisui Chemical Co., Ltd.
TOYOTA TSUSHO CORPORATION◆ Sumitomo Mitsui Trust Bank, Ltd.
◆ digglue Inc.
◆ NEC Solution Innovators Ltd.
◆ NTT Communications Corporation ◆ Fujitsu Japan◆ Limited◆ SoftBank Corp.
NEC Corporation© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

Photo taken at the first J-CEP anniversary gathering

Observer members
Hokkaido University,
Kobe City, Ministry of
Economy, Trade and Industry,
University of Kitakyushu,
University of Tokyo◆ ABeam Consulting Ltd.
◆ AMITA HOLDINGS Co., Ltd.
◆ EGS Co., Ltd.
◆ Fuyo General Lease Co., Ltd.
◆ Harita Metal Co., Ltd.
◆ Kowa Seiko Co., Ltd.
◆ Pantech Corporation◆ Sanyu Kankyo Sogo Kenkyujo Co., Ltd.

(In alphabetical order)
Steering committee members in colors

49

Partnerships
Platform for resource
circulation andrelationship building

J-CEP’s Joint PoC Projects Built around
MEGURU STATION®

J-CEP (2)
Overview

Carried out joint PoC projects to design a resource circulation scheme andcreate a community engagement space

Project

Collect sorted household plastic waste

Project

Use ICT solutions to encourage more residents to use the station

01

Project members: AMITA, Kawakami Sangyo, Mitsui Chemicals, Pantech

03

Project members: AMITA, NEC Solution Innovators
Used QR codes to collect data on the number ofresidents who used the station and to offer them an
incentive program.

Made benches from collected plastic caps andbottles to support Kobe’s circular recycling
initiative.

Project

Promote a mutually supportive community

Project

Conduct a research and development project forhorizontal recycling of plastic packages

02

Project members: AMITA, Nestle Japan

04

Project members: AMITA, Lion, Mitsui Chemicals, Sunstar

Offered complementary soft drinks and snack
food to visitors to make it a community
engagement space.
Keyinitiatives
for FY 2023
and beyond

Carry out two 01.
PoC projects:

Recycled used toothbrushes into rulers
as a PoC trial for sustainable productdesigning.

Operate a prototype BYOB shop to encourage the reuse of bottles and containers

02. Standardize bottles and containers for daily necessities and verify their recyclability from collection to reuse
J-CEP is promoting a cross-industry circular economy.

© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

50

Expanded the scope and scale of strategic corporate partnerships
as part of joint efforts to create an ecosystem society by 2030

Partnerships

Cross-industry
collaborations

Started accelerating the pace of strategic partnerships in 2022.

Communications
and information
serviceFinancialservice

Leasing
service

Emergency-readinessservice

with

with

with

with

NTT Communications Corporation

Sumitomo Mitsui Trust Bank, Limited

Fuyo General Lease Co., Ltd.

Announced October 13, 2022

Announced November 18, 2022

Announced November 22, 2022

Announced January 30, 2023

Use digital technology to visualize
environmental-load data gathered from
the MEGURU STATION® network

Jointly assess the social, environmental,
and economic impact of MEGURUSTATION®

Use a leasing scheme to assist wastemanagement and recycling service
providers in switching to circular businessmodelsMake the BELL Group’s emergency stock
management platform and optimization
service work with the MEGURU STATION®
network

Establish a circular platform for driving
resource circulation and encourage
behavior change among residents

Objectively and quantitatively verify the
positive benefits of the station to drive
partnerships with municipalities andbusinesses

Establish a network of businesses topromote a circular economy

Consider creating a business model thatbrings greater safety and security tocommunities

FY 2023
andbeyondBELL Group
BELL Holdings, Inc. and BELL DATA, Inc.

AMITA intends to partner with an even broader range of businesses across industry.

© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

51

Partnerships

Highly specialized
joint venture

Integration of environmental and financial solutions

AMITA and MCP Japan jointly established Codo Advisory to assist
corporate clients in achieving low-carbon business management

Overview

Achievement

March 2022

Codo Advisory, Inc. established to assist businesses
in defining and refining their low-carbon transition strategy.

Codo Advisory became the first Japanese entity to leverage
the ACT (Assessing low-Carbon Transition) international initiative
Jointly developed by the French Environment and Energy Management Agency(ADEME) and CDP (Carbon Disclosure Project)

ACT
The Climate Fresk workshop toraise public awareness of climate change

Codo Advisory has signed up with

& CDP

Partnership

November 202210

corporate clients to date.

Codo Advisory entered into a cooperative business agreement with MUFG Bank andTokio Marine & Nichido Fire Insurance.
Intended to jointly assist corporate clients with low-carbon business practices

Key
initiativefor FY 2023
and beyond

Work with corporate partners and Fukuoka City to expand its service offerings© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

52

Partnerships

Highly specialized
subsidiary

AMIDAO, a wholly owned subsidiary of AMITA HOLDINGS,
established to leverage block chain technology and other Web3
solutionsJanuary 2023
Overview

AMIDAO CORPORATION established to design and develop
token economy models using Web3 solutions.

Uncover implicit social relationships and value in office and commercial complexes
Help build a community and an infrastructure to resolve social issues
Advantages

Has adopted a DAO (decentralized autonomous organizational) structure.

It is a mechanism that attracts skilled talent and robust operating capital to createcollective value.

Key
initiativefor FY 2023
and beyond

Target

Win two contracts to develop token economy models

Revenue: 60 million yen

As a step toward creating an ecosystem society by 2030, leverage technology to enhancesocial relationships, and work with corporate clients to bring a social innovation to life
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

53

Medium-Term
Management Plan

Key initiatives for
FY 2023-2025

Complete the business development phase in FY 2023 andenter the business expansion phase in FY 2024
From FY 2023 through FY 2025
The third year of Phase 1 and the first andsecond years of Phase 2

2022

2021
AMITA Groupannounced its
commitment tobecoming the Futuredesign Company.

2030

Announced
AMITA Vision
2030

Society

2027
AMITA Groupto celebrate
its 50th
anniversary

Recognize that circular solutions have the best chance ofachieving sustainable corporate and community
management under constrained conditions

2023

2024

Phase 1: Business Development

2025

AMITA Group toestablish the Social
Systems Design
Business

2026

Phase 2: Business Expansion

2028

2029

Phase 3: Accelerated Business Growth

Key strategic initiatives for FY 2023-2025① Build the MEGURU PLATFORM as a basis
for achieving AMITA Vision 2030
1) Accelerate the geographical expansion of MEGURUSTATION® and establish a business model around it2) Use digital technology to develop, implement, andmonetize an information platform
3) Work with businesses, municipalities, and universities toestablish a circular industrial ecosystem, including
MEGURU FACTORIES© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

② Provide Circular Design solutions tomaximize the Group’s profitability
1) Accelerate assisting businesses with their transition
strategy to meet circular social needs, including naturepositive goals, carbon neutrality, and circular economy
2) Expand silicon-recycling capacity at AMITA’s Kitakyushu
Sustainable Resource Management Center to promote a
circular approach in the chip industry
3) Achieve greater profitability by capturing a greater shareof customer wallet and increase the average customer
spend4) Expand AMITA’s business in Malaysia; develop newmarkets in other fast-growing Asian countries③ Establish forward-looking and industry-leading

ecosystem-driven business management

before celebrating the Group’s 50th anniversary in20271) Split existing subsidiaries and establish new ones to achieve
greater agility in corporate decision-making and develop nextgeneral leadership
2) Switch to a shorter 32-hour workweek to provide employeeswith a greater opportunity to assist others and create morevalue3) Increase robust operating capital, including human, financial,
and relational capital, necessary to achieve AMITA Vision
2030, by partnering with a broader range of businesses,
municipalities, and universities

54

Medium-Term
Management Plan

Financial targets
for FY 2023-2025

Meet aggressive but attainable targets to live up
to the expectations of society, as well as those of the business and financial
communities
MTMP updated for FY 2023-2025(In millions of yen; amounts rounded down to the nearest million yen)

FY 2022 (results)

FY 2023 target

FY 2024 target

FY 2025 target

Net sales

4,824

5,283

6,010

8,400

Operating profit

609

774

1,040

2,100

Ordinary profit

715

887

1,230

2,300

Profit

531

620

860

1,600

Operating profit margin

12.6%

14.7%

17.3%

25.0%

There has been a growing corporate need to switch to circular business models amid surging materials and energy costs.
FY 2023

Increase operating profit by 20% YoY to 774 million yen with an operating profit margin of 14.7% by leveraging the Cyano Project to assist businesses
with their transition strategy and meet their needs for circular design
Make advance investment in accelerating the geographical expansion of MEGURU STATION ® and establishing a business model around it

FY 2024

Achieve an operating profit of 1.0 plus billion yen and an even higher operating profit margin by expanding the legacy business and achieving greater
profitability in new business ventures

FY 2025

Establish the MEGURU PLATFORM to promote partnership-driven business,
which will enable us to expand the scope and scale of business and achieve a much higher level of revenue and profit than the previous year

© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

55

Corporate initiative

Drive valuecreation efforts

To foster a corporate culture that places a higher priority on employees’ relationship-building efforts,

We offer employees a shorter 32-hour workweek
and an across-the-board pay raise

Launched company-wide inJanuary 2023

Shorterand moreproductive
workweek

Shorter but moreproductive workweek

PurposeFrom January 2023 onward

40-hour

Encourage employees to have quality off time andproduce greater collective value at work

Pay raise

An average raise ofworkweek

Acrossthe-board
pay raise

6.5%(for full-time employees)

32-hour
workweek

Approach

01. Use DX solutions to streamline business processes,
add more value to work, and achieve greater productivity
Pay scale based on
employment type and job grade

02. Lead to a cohesive team with greater collective output
Achievement

PurposeThe combination with other programs to improve employees’ well-being has
produced even greater results.
FY 2020
Number of applications for subsidies for
self-learning and cultural enlightenment¹
Number of applications for paid leave forcommunity programs²

9

Increased
applications

FY 2021

FY 2022 (on a trial basis)

83

174

Approach30

55

Update the pay scale for all employees, including
temporary employees

1. The Company provides subsidies to employees who take training courses, study to acquire public qualifications, visit museums, and buy books.
2. Employees can take paid leave to participate in volunteer activities and other community programs.

Employees have been found to take advantage of the new company policy that
promotes a better work-life balance.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

Encourage employees to come to work without any
concern about their everyday lives amid soaring pricesof consumer goods and services

An average raise of 6.5% for full-time employees; an averageraise of 7.8% for temporary employees

56

In FY 2022, the AMITA Group took a bold first step
toward implementing ecosystem-driven business
management practices.
As a next step, we intend to have
deeper engagement with an even wider rangeof stakeholders in FY 2023 as part of our efforts
to achieve AMITA Vision 2030.

© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

57

Join us in this challenging but exciting endeavor
to create an ecosystem society.

For inquiries, send emails to
the Investor Relations Section of AMITA HOLDINGS CO., LTD. at

ir@amita-net.co.jp
Disclaimer: This document is for informational purposes only and is not intended to solicit investment in the Company’s publicly
traded stock. Opinions and forecasts expressed in this document are based on information, estimation, and assessment available
at the time of writing (February 24, 2023). AMITA HOLDINGS CO., LTD. does not guarantee their accuracy or completeness andreserves the right to update the content at any time without notice.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.
© 2023 AMITA HOLDINGS CO., LTD. All Rights Reserved.

58