AMITAʼs corporate emblem “Colors” symbolizes
a human profile composed of nine tiles of various colors.
The emblem depicts the unlimited power of human capacity; the capacity of anindividual human being may be small, but, when people unite to work toward a
common goal, it will become a driving force that can create a promising future.

AMITA is committed to working with like-minded partners toachieve a sustainable society and design a great future thatwill enhance natural and relational capital.
Bringing the future the AMITA Group envisions to our stakeholders

Newsletter for Our Shareholders

Designing the Future
Annual Report 2018

Creating Value, The AMITA Way

Spring
2019
EditionHighlights of Business Results for FY 2018
Financial Results

Major Business Achievements in FY 2018

Turning business around after having posted a loss for three consecutive years
The AMITA Group posted consolidated sales of 4,704 million
yen, operating income of 136 million yen, ordinary income of
140 million yen, and net income of 24 million yen for the fiscal
year ended December 31, 2018. Sales were flat from the previous
year, driven primarily by zero-emission recycling services
conducted at Kitakyushu and other resource recycling plants inJapan as well as by environmental certification services.
Operating income was up primarily as a result of a reduction in

manufacturing cost in zero-emission recycling services.
Ordinary income was up slightly, reflecting an increase inoperating income and the posting of insurance income, whichmore than offset foreign exchange losses. The Group posted a net
income for the year, reflecting an increase in ordinary income,which more than offset a loss on retirement of non-current assets
and an increase in tax expenses.

Consolidated Financial Performance(In millions of yen)

Sales

5,000

4,803

4,729

4,557

4,360

In the Environmental Strategy Design Business, although we
conducted fewer zero-emission recycling operations in FY 2018
than in FY 2017, we managed to maintain the same level ofrevenue as a result of a reduction in manufacturing cost at our
resource recycling plants. The Kitakyushu Resource Recycling
Plant started to recycle silicon slurry waste, which added sales
and profit to this segment. As an addition to The Sustainable
Stage, which is an integrated services to assist corporate clients,
we launched the AMITA Smart Eco service, which helps
corporate clients achieve greater efficiency in environmental
management through the use of ICT solutions and outsourcing
services. We received more orders for the Smart Management

Key initiatives
Enterprise Support

4,704

4,000
3,000

Environmental
Strategy
DesignBusiness

2,000
1,000

2014

Operating,
Ordinary,andNet Income

2015

2016

2017

(In millions of yen)

150
100
50
0
-50
-100
-150
-200
-250
-300
-350

77

2
△84

△10

24

Business
OutsideJapan△26

Achievements

Terrestrial resources(Recycling, environmental
consulting)★
★

• Maintained the same level of revenue from resource recycling business in Japan, offsetting fewer recycling
operations.
• The Kitakyushu Resource Recycling Plant started to conduct zero-emission recycling of silicon slurry waste.
• Launched the AMITA Smart Eco service, which helps corporate clients achieve greater efficiency inenvironmental management.
• Saw a steady increase in orders for the Smart Management.

Environmental solutions(Environmental certification,
survey and research)★
★

• Saw an increase in orders for environmental certification services, primarily fishery certification.
• Conducted the worldʼs first ASC/MSC certification for algae.

Taiwan-We decided to shut down our operations in Taiwan on April 26, 2019, in the face of the challenge of sourcing
recycling materials locally. We have chosen to allocate available resources to expanding the recycling
business for silicon slurry waste in Japan.

Malaysia★
★

• Addition of dryer capacity boosted the production of alternative cement materials.
• Received a contract from the Ministry of the Environment of Japan for a project to commercialize theproduction of alternative cement fuel.

★
★

• Conducted a test run of a system in Minamisanriku, Miyagi Prefecture, with excellent results inpromoting the circulation of resources and community engagement.

★
★

• Signed a comprehensive business partnership with Daiei Kankyo Holdings and Major Venous Japan in a bid
to build a social infrastructure to bring greater sustainability to business activities and community activities.
• Signed a comprehensive business partnership with NEC Solution Innovators to promote business to achievea sustainable society.

Regional Support
Operating income (loss)

Equity capital ratio

Ordinary income (loss)

Operating income margin

18.8
1,000
900
800
700 703
600
500
400
300
200
100
0
2014

20
18
16
14
12
10
8
6
4
2
0

13.4
568

214
2016

2017

△337

Net income (loss)

Net assets

5.6

Regional
Systems
DesignBusiness

Operating Income and Operating Income Margin
（%）

2015

114

140

△99

△101

(In millions of yen)

603

53

136

8

Net Assets and Equity Capital Ratio

14.6

80

2018

system for waste management as well as environmental
certification services in FY 2018 than in FY 2017. Outside Japan,
the AKBK Sustainable Resource Management Centre in
Malaysia continued to operate smoothly by leveraging recycling
technology originally developed in Japan to add drying capacity
to its facility; winning a project contract from the Ministry of
the Environment of Japan; and providing reliable services toJapanese companies operating in Malaysia. In the Regional
Systems Design Business, we have been laying the groundworkfor the BIO System, which is an integrated service to assist
regional communities, in Minamisanriku, Miyagi Prefecture, tobe completed by the end of FY 2020.

7.3
267

2018

Operating income（%）(In millions of yen)

175

136

125

77 1.6

75

-125

0
-1.5

- 84
2015

2016

2017

2018

2

Key initiatives Planned for FY 2019
Environmental
Strategy
Design Business-2.5

As part of our efforts to regain financial soundness, we are
striving to improve our operating income margin. We will
focus on developing and promoting highly profitable
service offerings, including AMITA Smart Eco, launchedin 2018.

After a sharp decline in shareholders’ equity at the end of
FY 2017 as a result of posting an impairment loss at the
Taiwan Resource Recycling Plant, net assets increased to
267 million yen at the end of FY 2018, with the equity
capital ratio up to 7.3%. We will continue to give top
priority to taking action to regain financial soundness.

Forming stronger partnerships towardachieving a sustainable society

3.5

1.5

-1.9
2014

Business Alliances

2.5

80 1.7

8 0.2

0
-75

2.9

Establishing the
BIO System■ Accelerate expanding the client base for The Sustainable Stage service with a focus on

AMITA Smart Eco■ Enhance environmental certification services■ Enhance zero-emission recycling services of silicon slurry waste

Business
Outside Japan■ Start producing alternative cement fuel in Malaysia

Regional Systems
Design Business■ Work with partner companies to commercialize the MEGURU STATION project3

Environmental
Strategy
Design Business

AMITA Smart Eco Launched to Help Corporate
Clients Achieve Better and More Efficient
Environmental Management

TOPICS

Companies are under increasing pressure to
streamline their business operations in response toa declining working population in Japan andregulatory requirements to provide more flexible
working arrangements to their employees. In
addition, companies’ environmental management
departments must address a wider range of issues
such as reducing environmental costs, meeting
regulatory and SDGs (Sustainable Development
Goals) requirements, and contributing to
mitigating climate change. The new AMITA
Smart Eco service combines our proprietary
information and communication technology(ICT) and outsourcing services to assist corporate

Key UserBenefits

clients in achieving greater efficiency inenvironmental management while reducing costs
and risks associated with it. Moreover,environmental data accumulated by ICT can beused to transform a company’s environmental
management processes and develop environmental
management strategy from medium- andlong-term perspectives.
Sales target for FY 2019: Position the AMITA
Smart Eco service as the core of The Sustainable
Stage and sign up more than 100 corporate clientsfor the service.

● Reduce the cost of environmental management by up to half (AMITAʼs estimate)● Provide ITC solutions and outsourcing services to achieve greater environmental compliance● Make it easy to compile and use environmental data
● Enable the reallocation of human resources to value-added core business processes

On-site Patrol

Remote Inspection Contract Preparation

Share on-siteenvironmental information
real-time via app

Remotely monitor the
performance of awaste-management service
provider via videoconferencing

Data

Make it easy to prepare acontract for
waste-management service

Data

Data

Environmental data
accumulated by ICT can beused to transform
environmental management
processes and develop
environmental management
strategy

Data

Environmental
Strategy
Design Business

Key Products andServices Provided in
FY 2018

Major Business Achievements in FY 2018
Kitakyushu Plant Starts Recycling Silicon Slurry Waste
Demand for chips has been surging and so has theneed to recycle silicon slurry waste generated in thechip manufacturing process. The Kitakyushu
Resource Recycling Plant started in November 2018
the zero-emission recycling of silicon slurry waste
received from chip manufacturers into alternative
metal materials.
We will expand this business based on our Himeji
and Kitakyushu Plants.

Number of Clients for The Sustainable StageFY 2017

FY 2017

Recycling equipment installed in the Kitakyushu Plant

Check the amount of waste

Share informationinternally

Communicate with aservice provider

Report toregulatory
authorities

Analyze and use data

Management

Use sensors to automate
the measuring of theamount of stored waste

Cloud-based service to centrally
manage waste-management data

Our highly experienced staffers conduct awide range of specialized environmental
management tasks on behalf of a client.

Data
Data

4

39

(Businesses)

first company in the world to attaincertification of its microalgae products
under the new ASC-MSC Seaweed (Algae)
Standard, following an audit conducted by
AMITA in 2018. Perch, red snapper, andmulloway were added to the types of fish
subject to ASC Aquaculture Certification,
and we started to conduct certificationassessment for them in March 2019. To
meet growing needs for sustainableprocurement, we will expand the scope ofenvironmental certification assessments
and increase the number of assessors.

2,500

Businesses

Facilities

330

337

295

2,000

(Facilities)

350

2,121

1,795

300
250

1,474

1,500

200
150

1,000

100
500

50

0

2016

2017

0

2018

Cement Materials and Fuel Materials Produced
from Zero-Emission Recycling Process*Results at our own recycling plants inside and outside Japanand those at partnersʼ plants combined（t）180,00020162017 2018■Fishery certification (cases)

20162017 2018

FSC ® Forest Management Certification

23
244
11

23
314
15

24
354
22

MSC Chain of Custody Certification

54
20
1

63
23
2

ASC Chain of Custody Certification
ASC Aquaculture Certification

93
49
4

174,959
167,868

170,000
160,000
150,000

150,646

154,948

140,000
130,000

Zero-Emission Recycling Business on Track in Malaysia

Outsourcing

FY 2018

Number of Clients on Smart Management

Improve management

Data

Sensing

Number of Clients for Consulting andResearching Services
46*Including annual audits of existing clients *Numbers of cases of FSC® Project Certification and ASC Aquaculture Certification are cumulative

On-site inspection

22

FY 2017■Forestry certification (cases)

FSC® Project Certification

FY 2018

21

Number of Environmental Certification Assessments Conducted

FSC® Chain of Custody Certification

9

Number of Clients for Outsourcing Services

High-Demand Environmental Certification Services Driving
Sustainable Resource Procurement
A third-party environmental certification
label on a product certifies that the productwas produced and processed in a sustainable
manner. This is part of industry-wide efforts
to counter illegal lumbering in forests andindiscriminate fishing. As Japanesecompanies are accelerating their efforts tofollow sustainable procurement practices
with an eye on the Tokyo 2020 Olympic
Games and SDGs requirements, they arerequesting, at an increasing pace, that theirproducts be environmentally certified. In
January 2019, euglena Co., Ltd. became the

FY 2018

6

AKBK Sustainable Resource Management Centre in
Malaysia conducts zero-emission recycling of waste
received from local businesses into alternative cement
materials. When a dryer facility became operational
in July 2018, the amount of waste received nearly
doubled*, and now includes waste with a high watercontent. The center signed a project contract with the
Ministry of the Environment of Japan andintends to start producing alternative cement fuel by
the end of FY 2019.

0

2015

2016

2017

2018

Metal Materials Produced from Zero-Emission
Recycling Process*Results at our own plants inside and outside Japan

Nickel and other materials for specialty steels
Copper(t)

5,000 4,305
4,000
Drying facility designed to direct sunlight to thedrying area

3,000

1,000

*Results from August through December 2018 compared with thesame period the previous year

0

5

1,957

2,000

2,470

3,055

717

673

568

634

2015

2016

2017

2018

Regional Systems
Design Business

Natural Capital and
Relational Capital

MEGURU STATION Tested Successfully for
Effectiveness in Resolving Community Issues

TOPICSMEGURU STATION, a community trash
dumpster and a recycling system built around it,
developed and installed by AMITA in collaboration with five other companies to promoteresource circulation and community engagement
among residents, underwent a test run in Mina-

Turning the daily practice oftaking trash out to the dumpster
into resource circulation andcommunity engagement

Natural Capitalmisanriku, Miyagi Prefecture, in 2018. The test
proved the station’s effectiveness in terms of bothresource circulation and community engagement.
Pleased with the positive results of the test,
AMITA intends to commercialize the project by
the end of FY 2019.

MEGURU STATION is a hub that provides community residents with
opportunities to take recyclable trash out to participate in resource
circulation and community engagement. AMITA intends to incorporate into
the station additional functions to support residentsʼ healthcare,nursing care, and welfare and commercialize the project to provide an
infrastructure that helps resolve community issues. We believe that the
project will stimulate the circular flow of economic activities in a community.

Our business activities to reduce environmental loads and preserve the natural environmentand biodiversity are intended to sustain natural capital.

Accelerating Switching to
Cleaner Renewable Energy

We strive to reduce environmental loads associated with our business activities and encourage
employees to preserve the environment and lead a socially responsible life. This is part of our efforts tobuild buy-in to the company ʼs mission among employees as well as help achieve a sustainable society.

Subsidy to employees for switching to
renewable energy

Switching to cleaner energy for use atcompany facilities
We partially switched to renewable energy to power our plants and offices inJapan, which helped reduce CO2 emissions by 35% annually.

An AMITA employee receives a subsidy from the company for switching theirhome electricity provider to one that relies more heavily on renewable energy
sources. AMITA is the first company in Japan to offer such an incentive to its
employees. Currently, six employees are in the incentive program.

Reducing the Use of
Natural Resources

Alternative resources produced with zero-emission recycling processes have a higher quality than theirnatural equivalent and substantially reduce the use of natural resources.

Reduction in the use of natural resources

Resource Circulation

Results of a test run

Recycling ofhousehold trash
Residents separate burnable garbage
and recyclable trash at home and takethem out to the station to play an activerole in resource circulation.

An opportunity for
greater community
engagement motivates
residents to participate
in the collection of
separated garbage.

Taking trash out to thestation provides anopportunity for
greater community
engagement.

MEGURUSTATIONAt the end of the two-month test period,
word of mouth about the station spread toencourage 400 families to participate in the
program, which was four times as many as
when the test started. At the conclusion of
the test, 74% of the participating residents
said they had managed to reduce burnable
household garbage by half, and 51% said
they had more opportunities to communicate
with their neighbors through participation in
the program. This result indicated that thestation fulfilled its twin objectives ofpromoting resource circulation andcommunity engagement.

Production amount of recycled resources
used as fuel incement production in FY 2018

102,736 t

Equivalent to368,735 t of mined coal

3.6 times as much as the amountof recycled resources produced

3,055 tEquivalent to
19,892 t of mined nickel

6.5 times as much as the amountof recycled resources produced

634 t

Equivalent to
31,173 t of mined copper

49.2 times as much as the amountof recycled resources produced

Production amount of recycled resources, such as
nickel, usedas materials for specialty steels in FY 2018

Production amount of recycled copper in FY 2018

Relational Capital
Relational capital is an intangible asset accumulated by acompany based on its relationships with stakeholders. To build
relational capital internally, we consider employees not as cost but
as capital, and we provide talent development programs andResults of Employee Survey for FY 2018
Respondents: 119 of 150 AMITA Group full-time employees

Greater interaction
among residents
Stimulate engagement among residents
by providing a place and means for eachof them to play their role, with a goal of
fostering a greater sense of neighborhood community“Thank You”

pointsResidents chopping wood for a shared fireplace

Community Engagement
Functions
to be added

Promotehealth...

Promote local
production for local
consumption

Supportchildcare

Expand and tailor functions to meet the needs
specific to a community
6

Residents can earn “ Thank You”
points based on their level ofparticipation in resource circulationand can redeem points for drinks ina neighboring cafe or local farm
produce, or as donations to neighborhood public institutions. This
scheme proved effective in fostering
better communication amongresidents and encouraging greater
participation in resource circulation.
Thanks App developed by NEC Solution Innovators

Q: Does your manager recognize your strengths
and weaknesses and help you build up yourstrengths and overcome your weaknesses?

74%
2016

59%
2017

71%
2018

AMITA Group Employeesʼ Demographics and Their Use of Employee
Welfare Programs
Data from January 1 through December 31 of each year for full-time employees.
The average number of days taken off by employees and the numbers of employees who took childcare leave andcaregiverʼs leave are counted from January 11 through January 10 the following year.

Category

Employeedemographics

Percentage of employees who responded positively to the question

Promoting younger employees to managerial positions, which waspart of a company-wide organizational transformation, did not go
as well as intended in FY 2017; their lack of experience createdfriction in communications with their staffers. The increase in thepercentage of positive responses from FY 2017 to FY 2018suggests that the manager-staffer relationships improved. We
will continue to pursue organizational excellence by providing
employees with programs to develop their human skills andcreating a comfortable workplace so that we can lead the effort
to achieve a sustainable society.

create a comfortable workplace so that employees can continually
improve their human and professional skills and achieve theirfull potential.

Description

2016

2017

2018

Number of employees

156

161

158

Male-female ratio

70：30

71：29

73：27

Percentage of female managers (%)

14

15

13

Average age

37.43

36.26

39.3

6

8

12

Average number of days taken off

13.07

13.13

13.4

Sick-child leave
Number of employees
Employeesʼ
who took childcare leave Working shorter hours
use of welfare
Childcare leave
programs
Number of employees who took caregiver ʼs leave

13

16

20

6

9

9

4

6

4

1

1

3

6

8

9

Turnover rate (%)

Number of employees who applied for the
AMITIME program**Allows an employee who has used all her or his annual paid holidays to use someone elseʼs unused paid holidays to takechildcare or caregiverʼs leave7

Our Mission II
Wisdom and Life are infinite.
Thorough changes in our surroundings and the evolution of sympathy,
The formation of external and internal relationships create 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, andTo protect the dignity of living systems.

Designing the Future

Company Profile (As of April 26, 2019)
Company nameAMITA HOLDINGS Co., Ltd.

Head office

535 Akinono-cho, Oshikoji-agaru, Karasuma-dori Nakagyoku, Kyoto, 604-0847 Japan

Stock listed in

JASDAQ

Stock code

2195

Capital474,920,000 yen

Number of employees

164

Corporate website:http://en.amita-hd.co.jp© 2019 AMITA HOLDINGS Co., Ltd. All rights reserved

Spring 2019 Edition
Information provided in this newsletter current as of April 26, 2019.

Contact: IR Section, AMITA HOLDINGS Co., Ltd.
535 Akinono-cho, Oshikoji-agaru, Karasuma-dori Nakagyoku,
Kyoto, 604-0847 Japan
TEL: +81-75-277-0378 FAX: +81-75-255-4527
E-mail: ir@amita-net.co.jp