CORPORATE REPORT 2019

Corporate Group Overview

Asahi Holdings, Inc.

Totally Committed to Protecting the Natural Environment
and Preserving Resources

Asahi Pretec Corp.

Contents

Precious metals / rare metals recycling andindustrial waste treatment
Representative Director: Hiroyuki Nakanishi
Headquarters:
Nissay Sannomiya Building 16F 4-4-17 Kanocho, Chuo-ku, Kobe, Hyogo 650-0001 Japan
TEL: +81-78-333-5600 FAX: +81-78-333-5681
Sapia Tower 11F 1-7-12 Marunouchi,
Chiyoda-ku, Tokyo 100-0005 Japan
TEL: +81-3-6270-1820 FAX: +81-3-6270-1825
URL:
https://www.asahipretec.com/ (Japanese Only)

ESG Initiatives
G GOVERNANCE

About Asahi Holdings

Corporate Governance ·············································· 26

Message from the CEO ············································· 02

Risk Management ·························································· 28

The Asahi Way ··································································· 03

Officer Profiles ·································································· 29

The 8th Medium-Term Business PlanE ENVIRONMENT(2018–2020) ·········································································· 04

Environmental Initiatives

History of the Asahi Holdings Group ·········· 06

of the Asahi Holdings Group ······························· 30

Value Creation by the Asahi Holdings Group 08

Environmental Management ······························ 32

Asahi Holdings SDGs ·················································· 09

Climate Change Prevention Initiatives ····· 33

Domestic Business Locations

S SOCIETY

About the Groupʼs Logo

Three Business Segments of the

Health Management and Work-Life Balance 34

Asahi Holdings Group

Creating Safe Workplaces ···································· 34

Three Business Segments ···································· 10

Diversity and Inclusion ············································· 35

Introduction to Segments ······································ 12

Human Resource Development ······················ 35

Precious Metals Business ···································· 12

Communication with Stakeholders ·············· 36

The Group’s logo uses a spiral shape asa motif to signify the corporate stancein seeking “environmental preservation
through recycling,” a main feature of its
business; the logo also indicates continuity
and growth. The arrows pointing upwardand downward symbolize Asahi Holdings
as an advanced, cutting-edge company.
The three colors of blue, red and green
each respectively signify “cleanwater and sky,” “the energy of people
carrying out activities” and “beautiful
nature and forests.”

Environmental Preservation Business ····· 18Life & Health Business ············································ 22Group Company Structure ·································· 39
Non-Financial Highlights ····································· 40

This report provides an overview of theactivities and operations of Asahi Holdings,
Inc., with a focus on the company’s
measures to address social issues throughits business activities. It has been prepared
as a way for the Asahi Holdings Groupto communicate with a broad range ofstakeholders and explain the kind of value itis working to create. By presenting specificgroup activities and initiatives, the report
also serves as a company profile.

CO R PORATE RE PORT 2019

[Report Period]

April 1, 2018 to March 31, 2019

[Scope]In principle, this report covers the entire
Asahi Holdings Group, including Asahi
Holdings, Inc. and its consolidated
subsidiaries.

[Numbers and Graphs]

The figures shown here are rounded to
the nearest hundred million yen. Dueto this rounding, totals may not agreewith the constituent figures shown. The
Group adopted the International Financial
Reporting Standards (IFRS) in fiscal 2016,
and each reporting item name basicallyfollows the IFRS guidelines.

Research Laboratory: Technical Research Center (Kobe)
Plants:Saitama, Nagano, Amagasaki, Kobe, TechnicalResearch Center, Ehime, Kitakyushu,
Kitakyushu Hibiki, Fukuoka
Business offices:
Sapporo, Aomori, Sendai, Nigata, Kitakanto, Kanto,
Yokohama, Kofu, Nagano, Shizuoka, Nagoya,
Hokuriku, Hanshin, Kobe, Okayama, Hiroshima,
Shikoku, Kitakyusyu, Fukuoka, Kagoshima, Okinawa

ASAHI G&S SDN. BHD. (Malaysia)

In addition to past and current facts about
the Group, this report includes forecasts
based on strategies, outlooks, and businessplans. These forecasts were created basedon information available at the time ofwriting. Therefore, it is important to notethat actual performance and results may
differ greatly from any forecasts presented
here, and depend to a large extent on futurechanges in the business environment.

Business Lines:

Industrial waste treatment and otherenvironmental preservation businesses
Representative Director: Keiichi Okumura
Headquarters:
Sapia Tower 11F 1-7-12 Marunouchi,
Chiyoda-ku, Tokyo 100-0005, Japan
TEL: +81-3-6270-1828 FAX: +81-3-6270-1839
URL:
https://www.japanwaste.co.jp/ (Japanese Only)

Domestic Business Locations
Saitama, Yokohama, Shonan, Kobenishi

Subsidiaries
JW Chemitech Co., Ltd.
JW Glass Recycling Co., Ltd.
Fuji Rozai Co., Ltd.

Nihon Chemitech Logitem Co., Ltd.
Taiyo Chemical Co., Ltd.

Asahi Pretec Korea Co., Ltd.

Business Lines:[Note on Future Prospects]

Tokyo Head Office

Overseas Bases

Asahi Life & Health Corporation.

Financial Highlights/

Kobe Head Office

Japan Waste Corporation

Business Lines:

Corporate Group Overview ··································· 01[Editorial Policy]

Established:
July 1952
Incorporated:
April 2009
Capital:
7,790 million yen
Representative Director: Mitsuharu Terayama, (CEO)Tomoya Higashiura (President)
Head Office:Nissay Sannomiya Building 16F 4-4-17 Kano-cho,
Chuo-ku, Kobe, Hyogo 650-0001 Japan
TEL: +81-78-333-5633 FAX: +81-78-333-5681
Sapia Tower 11F 1-7-12 Marunouchi,
Chiyoda-ku, Tokyo 100-0005 Japan
TEL: +81-3-6270-1833 FAX: +81-3-6270-1859
Number of employees(consolidated):
2,042 (As of March 31, 2019)
URL:
https://www.asahiholdings.com/english/

Life and Healthcare equipment, manufacturing,sales and construction of equipment
Representative Director: Toshiyuki Otsuki
Headquarters:
Sapia Tower 11F 1-7-12 Marunouchi,
Chiyoda-ku, Tokyo 100-0005, Japan
TEL: +81-3-6895-1870 FAX: +81-3-6270-1839
URL:
https://www.asahilh.com/ (Japanese Only)

Business Line:
North America gold & silver refining business
Representative Director: Tomoya Higashiura
Headquarters:
Sapia Tower 11F 1-7-12 Marunouchi,
Chiyoda-ku, Tokyo 100-0005 Japan
TEL: +81-3-6895-1900 FAX: +81-3-6270-1859

Subsidiaries
Asahi Refining USA Inc.
Asahi Refining Florida Inc.

Subsidiaries
FUJI MEDICAL INSTRUMENTS MFG. CO., LTD.
KOEIKOGYO CO., LTD.

Asahi Americas Holdings, Inc.

Asahi Refining Canada Ltd.

INTER CENTRAL, INC.
Fujiiryoki, Inc.(US)(As of April 1, 2019)

AS AH I H O L D ING S

01

The Asahi Way“Totally Committed to Protecting the Natural Environment and Preserving Resources”
In fiscal 2018, the first year of our 8th Medium-Term Business Plan, we beat our consolidated
operating income target of 14 billion yen, turning in a record-breaking performance for the second
straight year.
In February 2019, we brought a new company into the Asahi Holdings Group. Located in the US
state of Florida, it is primarily engaged in gold and silver refining as well as coin minting, which
represents a new business area for our Precious Metals Business. In April 2018, we launched a newincinerator in Kagoshima Prefecture. Waste incineration is a core segment of our Environmental
Preservation Business. These developments reflect our basic policy under the Medium-TermBusiness Plan—building a new business foundation that will support the coming era.
The Medium-Term Business Plan calls for the augmentation of intangible capital. For years, theGroup has been implementing detailed, wide-ranging and diversified programs for investment in
human capital, which is a major element of intangible capital.
Specific examples include holidays for refreshment, mandatory rest intervals, flexible working
hours, shortened working hours or leave for childcare and nursing care, advanced health exams,
and small group activities in the workplace. The Group also provides a diverse range of training
programs including sending selected employees to schools outside the company to study.
Other measures in place include a self-report system, employee awareness surveys, multilateralevaluations, and a whistleblower hotline. In fiscal 2018, we worked to further enhance these
programs in an effort to achieve greater employee satisfaction and deliver a merit-based, fair andimpartial evaluation system.
In May 2018, approximately 1,400 employees from around the world participated in our
employee general meeting. At that time, we announced a new program, the Sustainable
Development Goals (SDG) Awards. The Group’s three business fields all directly contribute to theglobal challenge to build a sustainable planet. Our employees had also been carrying out volunteer
activities individually and in groups, in areas outside their work fields. The SDG Awards program
was established to further promote these activities.
The awards will be presented at the employee general meeting in May 2021. Leading examplesof SDG activities will be showcased, and outstanding achievements byindividuals and groups will be honored.
The outlook for fiscal 2019 indicates continued political and economic
uncertainty worldwide. As a result, our business environment could entera challenging phase. However, in the spirit of innovating and embracing
challenges, I am confident that the entire company will work together to
respond to changes in the business environment, while also contributing tobusiness growth and the achievement of the SDGs.
I look forward to your continued support of the Asahi HoldingsGroup.

Mitsuharu Terayama
Chairman & CEO

The Asahi Holdings Group has established the Asahi Way as a set of values for all employees.
The Asahi Way is made up of Our Credo, Our Corporate Values, Our Employee Principles, and the Group Code of Conduct.
The Asahi Way drives the Group’s sustainable growth and improves corporate value over the medium to long term,and directors and management executives take the lead by serving as role models who put it into practice.

Our Credo

Our Employee Principles

We conserve limited natural
resources, preserve the global
environment, and support
human health.

Innovate and embrace challenges
Put safety first
Maintain high quality
Promptly report (especially bad news)
Build trust and connection

Our Corporate Values

The Asahi Holdings Group Code of Conduct

Cooperation with stakeholders

We constantly seek to earn even greater trust from shareholders,customers, business partners, employees, and local communities
as we work to preserve the natural environment.

Corporate governance with a balanceof protective and proactive measures

We boldly promote growth strategies and business reform while
securing transparency in decision-making and properly
managing risk.

No growth without profit

We realize long-term improvement of shareholder value by
ensuring the entire group grows and is proﬁtable.

#1 We comply with all laws and regulations#2 We respect the dictates of social norms andour own conscience#3 We treat everyone equally, regardless ofage, gender, nationality, race, religion, orother characteristics#4 We refrain from conducting any political or
religious activities in the workplace

Trusted corporate brand#5 We treat customers with sincerity

Addressing diverse risks#6 We practice fair competition and optimal
decision-making when selecting business
partners

Highly motivated employees#7 We respect the conﬁdential information
obtained through our work and avoid
disclosing it externallyStrong sense of mission andhigh ethical standards#8 We refrain from providing or receiving
meals or gifts in pursuit of personal beneﬁt

We aim to be widely recognized as an exemplary corporate groupand to build a brand that will be trusted over many years.

We strive to minimize risks and avert disasters by taking daily
safety measures in workplaces and by constantly working toprevent accidents.

We promote work-life balance for employees and continuously
improve working environments and conditions.

We strive to be an organization where employees take pridein their own work and executives maintain a strong sense of
mission and high ethical standards.

#9 We act for the greater good, not for
personal or afﬁliated parties’ gain

Being a company of good people#10 We focus on the actual sites, actual things,
and actual facts

We value good employees over the long-term; our vision of a “goodemployee” is a person who is not self-centered and who contributes
to mutual prosperity and the development of the business.

Message from the CEO / The Asahi Way

Message from the CEO

Asahi Holdings Inc.

June, 201902

CO R PORATE RE PORT 2019

AS AH I H O L D ING S

03

Company Slogan

Basic Policy

Building a global company that pursues originality and growth

Be the number one
precious metal refining
company in the world

Be a leader
in the environmental
business in JapanBe the worldʼs number
one brand in the healthrelated business

FY2018 Results and Performance■■
Revenue
Operating Income■■(billion yen)

140.0

140
120

140.0

Precious Metals

128.7

130

14.0

Environmental Preservation

Life & Health

115.8

Augmenting intangible capital

16.0

16.0
15.0

1. Building a new business foundation that will support the coming era

The 8th Medium-Term Business Plan (2018-2020)

The 8th Medium-Term Business Plan (2018-2020)

13.8

14.5

14.5

Actively investing in human capital

2017

2018

2019

2020

ResultResultForecast

Forecast(FY)

Actively investing in new technology

The 8th Medium-Term Business Plan

Review of the first year of the 8th Medium-Term Business Plan
Here, we introduce recent success stories under the policies of the 8th Medium-Term Business Plan, from threeperspectives.
The ﬁrst is expansion of human capital. We are working to develop senior managers by sending selected
employees to schools outside the company to study and offering an employee MBA program utilizing external
educational institutions. We are also actively positioning personnel in international and new business areas, andwe are promoting the development of human resources that can succeed on a global stage.
The second is operational reform using RPA. We are gathering operational reform ideas from eachdepartment, and prioritizing the cost-effective ones. As a concrete result to be achieved during ﬁscal 2019, weplan to realize automation of data tabulation and online information gathering using robotic process automation(RPA).
The third perspective is active promotion of the SDGs. Asahi Holdings has selected six priority SDG-related
goals. The details are outlined on page 9.
We will do our utmost to achieve the goals of the 8th Medium-Term Business Plan. I look forward to yourcontinued support.

2. Improving productivity and work styles utilizing
information processing technology
AI

Improvingproductivity

Robotics
Thoroughreview ofoperations

×

Improvingwork-life balance

IoT
RPA
FintechTomoya Higashiura
President Asahi Holdings, Inc.
June, 2019

3. Sharing the Asahi Way with all employees group-wide
04

CO R PORATE RE PORT 2019

AS AH I H O L D ING S

05

Act 1

Foundation and Initial Decades:
1952 to 1998

Act 2

Public Company:
1999 to 2011Act 3

New Development:2012 to present

1952

Silver recycling business started using photographic
ﬁxing solutions
Compact electrolytic silver collection equipment“PLATA” developed
Precious metal recycling business launched in thedental ﬁeld
Precious metal recycling businesslaunched in the plating solution ﬁeld
Precious metal recycling businesslaunched in the electronics
components and jewelry ﬁelds
Compact electrolytic gold
collection equipment “ZIPANG”
developed
ASAHI G&S SDN. BHD.
(Malaysia) established
Manufacturing of dental alloy begins

2003
2006
2011

Automobile catalyst business launched
Asahi Pretec Korea Co., Ltd. establishedE-scrap business launched
Precision cleaning business launched2015

US and Canadian gold and silver reﬁning
subsidiaries acquired from Johnson Matthey (UK),and Asahi Reﬁning USA Inc. and Asahi Reﬁning
Canada Ltd. established
Asahi Reﬁning Florida Inc. established

1997
1998

1975

Precious Metals

1982
1984
1986

1994
1998
1972
1975
1978
1990

2000
2002
2009

2015

2016
2017
2018

2019

Group Strengths Built Across the Years

Ability to Adapt to ChangeManagement Capabilities for
Business Regeneration

2017

2004
2006
2007
2008

Equipment for detoxiﬁcation of photographic
efﬂuents installed at the Kobe Plant
Industrial waste disposal license acquired from
Kobe City (detoxiﬁcation of photographic efﬂuent
containing harmful substances)
Registered as an environmental measurement
certiﬁcation ofﬁce
Environmental preservation
business other thanphotographic efﬂuents entered

Nihon Chemitech Co., Ltd. acquired
Taiyo Chemical Co., Ltd. acquired
Kitakyushu Ofﬁce of Asahi Pretec Corp. opened
Japan Waste Corporation establishedFuji Rozai Co., Ltd. acquired
JW Glass Recycling Co., Ltd. acquired
Yokohama Ofﬁce of Japan Waste Corporation opened
Ecomax Co., Ltd. acquired

2009
2010

2012
2014

Life & Health

1978

Initial public stock offering made on over-thecounter market
Listed on the 2nd Section of the Tokyo
Stock Exchange
Promoted to the 1st Section of the Tokyo Stock
Exchange
Asahi Holdings, Inc. established

The Asahi Way established
Selected for inclusion in an ESG index by the Tokyo
Stock Exchange
Company with an Audit and Supervisory Committee
system adopted
Nominating andcompensation committees established
Performance-based stock-option system introduced
International Financial Reporting Standards (IFRS)
adoptedCapital increased through new share issue
The Asahi Way revised

1999

1964
1974

Environmental Preservation

2012

Asahi Chemical Laboratory founded in Joto-ku,
Osaka City
Became kabushiki gaisha (stock-based company)
Fukuoka sales ofﬁce opened
Sales ofﬁces start to be established across Japan
Head Ofﬁce building completed in Higashi-Nada-ku,
Kobe City
Name changed to Asahi Pretec Corp.
Headquarters operations transferred to Chuo-ku,
Kobe City
Technical Research Center opened in Nishi-ku,
Kobe City

1952

History of the Asahi Holdings Group

History of the Asahi Holdings Group2018

Nihon Chemitech Co.,
Ltd. and Ecomax Co., Ltd.
integrated into Japan Waste
Corporation

Industry-Leading Unique
Technologies

Regional sites
consolidatedwith those ofGroup(12 locations)

Trusted Asahi Brand

Inter Central, Inc. acquired
Koeikogyo Co., Ltd. acquired
Fuji Medical Instruments Mfg. Co., Ltd. acquiredLife & Health Business launched as a new segment
Asahi Life & Health Corporation establishedFujiiryoki, Inc. (a US subsidiary of Fuji Medical
Instruments Mfg. Co., Ltd.) established

Highly Motivated Employees
Globally Expanding Network
Good Relationships with
Stakeholders
Sound Financial Structure

Business Performance(billion yen)
160

Operating Income

14

120

12

100

10

80

8

60

6

40

4

20

2

0

06

Revenue

1964

1980

1981

CO R PORATE RE PORT 2019

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Operating Income

Revenue140(billion yen)
16

0
(FY)

AS AH I H O L D ING S

07

Three Business Segments
We conserve limited natural resources, preserve the global environment, and support human health.

Asahi Holdings SDGs
“Totally Committed to Protecting

the Natural Environment and Preserving Resources”
Asahi Holdings SDG Approach
In 2015, the United Nations adopted 17 Sustainable

Precious
MetalsEnvironmental
Preservation

Development Goals (SDGs) to focus the efforts of the global

Life and Healthcommunity, including large corporations, on addressing a
Business
GrowthAddressing
SocialIssueswide range of economic, social and environmental issues.
In response to the SDGs, the Asahi Holdings Group has
committed itself to achieving the following goals throughits business activities.

Asahi Holdings Process for Determining Priority SDG-Related Goals

Eight Factors That Support Value Creation
Group Strengths Built Across Years of Innovation and Embracing Challenges

Ability to Adapt to Change
Since its inception, the Asahi Holdings Group has continued
to take on challenges in new business ﬁelds, driven by ﬂexible
thinking and bold action, while keeping a close eye on changes
in the business environment.
By promptly withdrawing from business areas that arereaching the end of their life cycles and establishing original
business models in new ﬁelds, we consistently deliver growth.

Industry-Leading Unique Technologies

Over the past two decades, the Group has acquired more than
20 companies and improved their management. Almost all ofthese companies are enjoying stronger performance than before
they joined the Group.
We improve business performance at afﬁliated companies
in Japan and abroad by applying our management capabilities
ﬂexibly to match the business environment.

Trusted Asahi Brand

We are proud of the original technologies we have developed. These
include technologies for recovering precious metals with high efﬁciency
that leverage our advanced analytical capabilities, technologies for properly
processing various industrial waste materials, and technologies for productdevelopment based on accurate ascertainment of customer needs.
Through constant research and development, the Group continues
to enhance its unique technologies in each of its business ﬁelds.

The Group’s precious metal products, namely, gold, silver,
palladium, and platinum bars, meet LBMA Good Delivery
standards, and their quality is recognized worldwide.
We will continue to provide products and services of highquality in all business areas to maintain the market’s trust in
the Asahi brand.

Highly Motivated Employees

Globally Expanding Network

The Group’s growth has been driven by our employees, who share
the group-wide values of the Asahi Way, deeply value trust andconnections, and are motivated by a passion for innovation andembracing challenges.
In addition to recruiting diverse human resources, the Groupprioritizes employee health and safety, invests in supportive working
environments, and continues to develop highly motivated employees.

Since establishing a subsidiary in Malaysia in 1994, the Grouphas continued to expand in Asia by setting up sites in South
Korea, China, and Taiwan.
In 2015, we acquired refining businesses in North
America, expanding our clientele, not just in this region, but
in the rest of the world as well. In 2019, we set up a new site
in Florida.

Good Relationships with Stakeholders
The Asahi Holdings Group values communication withstakeholders. The Group actively dialogues with investors andlistens to customers and business partners, using their feedback
to strengthen its governance and develop products and services.
We value our relationships of trust not only with employees
but also with the local communities where we do business, andwe are working to further improve long-term corporate value.

08

Management Capabilities for
Business Regeneration

CO R PORATE RE PORT 2019

Sound Financial Structure
The Group has grown while ensuring ﬁnancial soundness so thatit can respond with agility to M&A opportunities and capital
investment needs.
After an initial public offering in 1999, the Group was listed on
the First Section of the Tokyo Stock Exchange in 2002, and made apublic offering of new shares in 2017. By increasing capital, we arebuilding a ﬁnancial structure to support future growth.

STEP 1 Started SDG promotion
STEP 2

Confirmed the relevanceof each SDG to the business

STEP 3

Investigated and drafted
the priority SDG-related
goals and KPIs

priority
STEP 4 Determined
SDG-related goals

Established an SDG Promotion Team organized with the various
departments to begin understanding and examining the SDGs
Comprehensively checked the relevance of each of the 17 SDGs
and 169 targets to the business areas of Asahi Holdings, andorganized them based on both opportunity and risk

Value Creation by the Asahi Holdings Group / Asahi Holdings SDGs

Value Creation by the Asahi Holdings Group

After holding discussions with the head of each department onhighly relevant items, the SDG Promotion Team created a
proposal concerning the priority SDG-related goals and KPIs to
be achieved by 2030.
The directors discussed the proposal, and adopted the priority
SDG-related goals for the Asahi Holdings Group to tackle.

Priority SDG-related Goals
１ Expand precious metal recycling
We will expand and promote precious metal
recycling globally in order to make more
effective use of limited global resources.

P30

2 Supply precious metals in ways that are friendly
to people, society, and the environment
We will help create a sustainable society by supplying
precious metal products while protecting theenvironment and human rights. We will use precious
metal-containing scrap
and raw materials freefrom conflict minerals.

P14

3 Expand waste recycling
We will strive to expand waste recycling asa waste disposal expert andwork to help realize a sustainable recycling society.

P31

4 Reduce CO 2 emissions
We will work to reduce CO2 emissions
group-wide by implementing energy saving
activities at each site, switching to
next-generation vehicles, and switching to low
CO2 emission power plans.

P31,P33

5 Enhance the system for human resources to succeed
We will strive to enhance job satisfaction by
improving the system to help diverse humanresources to succeed within the Group. This will bedone by reforming working styles, implementing
health management, and promoting diversity.

P34,P35

6 Encourage and support SDG-related activities
We will encourage and support employee
activities outside the Group's main businessareas that contribute to SDG achievement,
including individual and group volunteer
activities. This initiative is called “Asahi Holdings
SDG Activities.”P38

AS AH I H O L D ING S

09

We conserve limited natural resources,
Social Issues● Depletion of precious

Precious Metals
Businessmetal resources● Environmental

destruction during mining● Human rights and laborP. 12 −17

issues related to mining● Money laundering andterrorism financing risk

Strengths● Outstanding technologies

for recycling and refiningof precious metals● Highly transparent

procurement andmanagement systems thatmeet international
standards● Global businessdevelopment in Asia andNorth America● Contamination by

Environmental
Preservation
Business
P. 18−21

hazardous waste● Impact on land andocean ecosystems● Pollution of water

resources● Growing elderly

population in majorcountries● Increased risk ofLife & HealthBusiness

lifestyle-relateddiseases● Higher disaster risk due

to climate change● Advanced andwide-ranging treatment
technologies for various
waste products● Group network andlicenses covering all ofJapan● Product development

capabilities as a pioneer
in health-related
equipment manufacturing● Technological and onsite

capabilities to create
comfortableenvironments that offer
peace of mind

preserve the global environment, and support human health.
Customers/Partners

Electronic components
manufacturers
Dental clinics/
dental laboratories
Jewelry makers
Catalyst
manufacturers
Automobile
dismantling industry

Value provided by Asahi

Contributing to the SDGs

Three Business Segments

Three Business Segments

Precious
metal
products
By recycling the precious
metals indispensable formodern manufacturing, we arecontributing to the effective
utilization of resources and thedevelopment of industry.

Mining companies

Government andpublic offices
Educational
institutions
Medical institutions
Various
manufacturers
Research centers

Individuals
Health-related
facilities
Office buildings
Constructionindustry
Design firms

Properprocessing andrecycling ofindustrialwaste
By properly processing andrecycling a wide variety of wastematerials, we are helping torealize a recycling-oriented
society.

Varioushealth-related
equipment,
air conditioning
systems, andfire protection equipment
By providing devices and equipment
to help maintain comfortable
lifestyles and health, we are meetingthe needs of society, including
greater health consciousness.

P. 22 −25

10

CO R PORATE RE PORT 2019

AS AH I H O L D ING S

11

I n t r o d u c t i o n

E-scrap

The Group collects and recycles scrap containing

Precision
Cleaning

precious metals from various industries.

Palladium

PlatinumGold

SilverDentistry
Palladium

Platinum

Gold

Gold

SilverSince precious metal plating is an excellent
way to prevent corrosion and enhanceelectrical conductivity, it is used in various
applications from industrial to decorative
products. Utilizing a proprietary electrolytic
precious metal recovery system, we recoverand recycle the precious metals remaining
in plating solutions. We also return therecovered materials to customers in the formof the precious metal compound of
their request.

12

CO R PORATE RE PORT 2019

PalladiumGold-silver-palladium alloys are the mainmaterials in dental prostheses such as crowns
and inlays, and the percentage of precious
metal content varies by type. Customers
such as dental clinics and laboratories
provide us with waste containing these
metals and we recycle them. We offer highvalue recovery with our own system for
integrated management of collection, assay
and reporting.

Gold

2019

ResultForecast

2020

(FY)

Forecast

Social issues
relating to
the Precious
Metals Business● Depletion of precious metal resources● Environmental destruction during mining● Human rights and labor issues related to mining● Money laundering and terrorism financing risk

PlatinumJewelry
Palladium

2018

12.0

Contributing to the SDGs
SilverWe strive to ensure the quality ofequipment used by customers in theirelectronic component and semiconductor
manufacturing processes by regularly andprecisely cleaning them. Customers entrust
us with their equipment parts, and we
perform stripping and recovery of precious
metals adhering to them. The recoveredprecious metals are returned to the customers
upon request.

Plating Treatment

13.0
12.0

Solving social issues through business activities

Rhodium

Automobiles are equipped with catalytic
converters to detoxify harmful substancesin exhaust gas, and precious metals such as
palladium and platinum are used in thesedevices. We use our original technologies
to recycle precious metals from automotive,
chemical and other catalysts converters.

Electronic substrates used in personal
computers, smartphones and home
appliances contain gold, silver andpalladium. We collect manufacturing process
scrap and electronic substrates from usedproducts. We then put them through various
processes such as crushing and sorting torecover and recycle precious metals. Our
precise sampling and advanced analysis
techniques are just some of the strengths
we offer.

Precision Cleaning

12.0

Jewelry

Catalyst
Palladium

92.0

70.0

Dentistry

Plating
Treatment

96.0

87.8

80.0

13.0

and the development of industry.

Silver■■Revenue
Operating Income■■

Precious Metals Businessto the effective utilization of resourcesGold

The 8th Medium-Term Business Plan
90.0

Business
Fieldsto modern manufacturing, we are contributing

E-scrap

Catalyst

100.0

platinum and other precious metals indispensable

Se gme n t s

Be the number one precious metals refining company in the world(billion yen)

By recovering and providing gold, silver, palladium,t oIntroduction to Segments

Precious Metals Business

SilverPalladium

Platinum

We collect and recycle precious metals fromjewelry and ornaments that are no longer
needed as well as precious metal scrap
generated at each stage of the manufacturing
process from purchasers, manufacturers, andprocessors. In addition to accurate analysis,
we offer high-quality precious metal ingot
products, while also returning raw materials
to manufacturing and processing
company customers.

Leveraging precious metal
recycling to turn consumption into
production, transforming waste
into precious metal resources

Contributing to industrial sustainability by continually improving our highly efficient andhigh-quality precious metal
recycling technologies

Helping to preserve terrestrial
ecosystems, forests, and otherland-based resources by expanding precious metal recycling,
instead of mining

Promoting peaceful, inclusive
societies by practicing responsible precious metal management
and transparent procurement

Contributing to sustainable water use by practicing precious metal recycling without
contaminant discharge
Helping to protect human rights and prevent child labor in high-risk regions such as conflict zones
Helping to prevent climate change by supplying recycled resources with low CO2 emissions
Promoting high levels of sustainability by collaborating with other companies

AS AH I H O L D ING S

13

I n t r o d u c t i o nCollecting and Recycling Precious Metalst o

Se gme n t s

R&D System
Technical Research Center
pursues original R&D

Plating treatment(manufacturers)
Plating solutions

metals and rare metals” and “detoxification and recycling ofindustrial wastes.” We established the Technical Research Center

Assay report(precious metal content analysis)

Catalysts(dismantlers / brokers)
Unused and waste catalysts

ReturnDentistry

Removed crowns and processing waste

Jewelry(purchasers, manufacturers, and distributors)
Jewelry and processing waste

Customers(dental clinics / dental laboratories)

in Kobe High-Tech Park to serve as our R&D hub. We are looking

FinishingElectronics / semiconductor manufacturing
equipment parts, etc.

Assay(manufacturers)

Pre-treatment

Collection

Precision Cleaning(precious metal purchasers)

Customers (waste providers)

Discarded electronic substrates andprocessing scrap

Inspection(Manufacturers, dismantlers, and brokers)

technology improvement in the fields of “recycling of precious

Melting and molding

E-scrap

Separation and extraction

We conduct proprietary research and development and analyticalto take even greater strides forward as a company that contributes

Precious Metals BusinessWe have deployed manufacturing operations in Japan and elsewhere in Asia that enable the most efficient recovery of
precious metals and carry out optimal processing of recyclable materials depending on the different characteristics andadmixtures in the business fields where we collect materials. Furthermore, we accurately meet customer needs by fully
utilizing optimal methods and efficient refining facilities depending on the type of precious or rare metal.

Introduction to Segments

Precious Metals Businessto society by improving quality and technical innovation.

R&D
We anticipate the needs of our customers and strive to create new products and business byapplying our large body of elemental technologies and developing new technologies.
●Technology for separating and refining precious and rare metals●Environmental preservation and resource recycling technology●Precious metal molding and refining technology
Refining Technology

Precious metal
market Sale
Trading companies
Manufacturers, etc.

Sale

In addition to wet precious metal refining technology, which is particularly effective for recycled material
processing, the Group is developing dry precious metal refining technology effective for the primary raw
material processing it is performing in North America. By advancing and combining both wet and dry refining
technologies, we are creating effective precious metal refining techniques for handling all kinds of raw materials.

Release Technology

In order to collect precious metals adhered to the surfaces of parts and jigs, etc., used in the manufacture ofelectronic components and semiconductors, the Group is developing technology to chemically and physicallyexfoliate precious metals safely and reliably without damaging the parts and jigs.

Assay
Priority SDG-Related Goals

Supply precious metals in ways that are friendly to people,
society, and the environment
Precious metals are indispensable to many industries. Their use also raises concerns abouthuman rights and working environment issues in the countries where they are mined, as
well as the risk of adverse effects on the environment during mining. This is why businesses
that procure and supply precious metals are required to ensure that their activities do notcontribute to social problems like these. The gold and silver we supply are conflict free
precious metals that have been audited in accordance with LBMA*1 guidelines. This means
we do not handle precious metals connected with inhumane activity such as armed conflictand human trafficking, or crimes such as money laundering and terrorism. In addition,
recycled precious metals produced mainly from sources in Japan and Asia are valued
because they have a low impact on the environment. By supplying such precious metal
products, we are contributing to the development of sustainable societies.
Gold and silver with a purity of 99.99% or more produced by Asahi Pretec and Asahi Refining are certified as LBMA Good Delivery Bars, while platinum andpalladium with a purity of 99.95% or more produced by Asahi Pretec are certified as LPPM*2 Good Delivery Bars. These products have passed rigorous screening, andour brand has earned a good reputation worldwide.
*1 LBMA: London Bullion Market Association*2 LPPM: London Platinum & Palladium Market

14

CO R PORATE RE PORT 2019

The Asahi Holdings Groupʼs core assay function supports a diversity of corporate activities using
the latest assay equipment and high-level assay technology. In addition, we play an importantrole in maintaining and enhancing trust with the Groupʼs customers.
●Development of new assay technology●Technical guidance for assay groups at each plant and sales office●Purity assay of precious metal products and dental alloys●Environmental analysis of issues such as factory wastewater discharges●Environmental measurement certification
Assay Technology

The Group is developing assay techniques using X-ray and inductively coupled plasma (ICP) optical emission
spectrometry with the aim of conducting rapid and accurate transactions with customers. We are upgrading our
precious metal analysis at sites in and outside of Japan, including Asahi Refining.

Engineering
Using cutting-edge technology, experts from each business area design, produce, construct andprovide maintenance of facilities at subsidiaries in and outside Japan, helping to support safe
and stable operation of the facilities.
●Design, production, construction and maintenance of facilities and buildings●Maintenance control of existing facilities●Installation and maintenance of precious metals collection facilities for our customers●Support for installation of robotics and IoT for equipment

AS AH I H O L D ING S

15

I n t r o d u c t i o nt o

Se gme n t s

North American Refining Business

Since 1994, the Asahi Holdings Group has been expanding its Precious Metals Business into Asian markets. We haveestablished and expanded our precious metal recycling business mainly targeting the digital and electronics industries,
using technology cultivated in Japan and methods rooted in local markets. In March 2015, North American refining sites(operated by Asahi Refining) joined the Group, bringing North America into our global network.

Asahi Refining USA, Canada, and Florida are subsidiaries of Asahi Americas Holdings. They are engaged inrefining gold and silver from mines in the United States and Canada, and they boast a top-level share of the global
refining market. Gold and silver raw materials received from mining companies differ greatly from the raw materials
handled in Japan and in Asia in terms of the precious metal content, the makeup of impurities, and the volume
received. In North America, dry refining technologies are principally used to handle the raw materials, which aremelted at high temperatures to separate out the precious metals. In Japan and Asia, wet refining technologies areused. The raw materials are dissolved in an aqueous solution in order to extract the precious metals.

Asahi Refining

Asahi Pretec Korea Co., Ltd.

Asahi Refining Canada Ltd.

Incorporated: 2006
Location: Chungju, South Korea
Number of employees: 34
Business line: Precious metal
recycling from dental andelectronic waste

Incorporated: 2015
Location: Brampton, Ontario,
CanadaNumber of employees: 159
Business line: Gold and silver
refining

Asahi Pretec Corp.
Established: 1952
Incorporated: 1997
Location: Kobe City, Hyogo, Japan
Number of employees: 764

Dry/wet refining
technologies

Product return

Molding

Establishment of Asahi Refining Florida Inc.

ASAHI G&S SDN. BHD.

Asahi Refining USA Inc.

Asahi Refining Florida Inc.

Incorporated: 1994
Location: Penang, Malaysia
Number of employees: 6
Business line: Precious metals
recycling from electronicmaterials and jewelry

Incorporated: 2015
Location: Salt Lake City, Utah, USA
Number of employees: 122
Business line: Gold and silver
refining

Incorporated: 2019
Location: Miami, Florida, USA
Number of employees: 107
Business line: Gold and silver
refining and product processing

Clients(Manufacturers using
precious metals, etc.)

Established on January 14, 2019, Asahi Refining Florida
acquired the assets of Republic Metals Corporation and its
subsidiary, Republic Carbon Company, whose main businesses
were gold and silver refining and product processing. With thisacquisition, the Group's North American refining business now
has three sites, with a top-level share of the global refining
market. The new company will serve as a foothold for the mint
business (manufacturing exquisitely designed coins and bars)
and will promote further development.

Product shipment(Mining companies, etc.)

Raw material receiving

Clients

Precious Metals Business

Global Expansion

Introduction to Segments

Precious Metals BusinessAsahi Americas Holdings, Inc.
Asahi Refining USA Inc.
Asahi Refining Canada Ltd.
Asahi Refining Florida Inc.

(As of March 31, 2019)16

CO R PORATE RE PORT 2019

AS AH I H O L D ING S

17

The companies of the Asahi Holdings Group meet the diverse

needs of their customers by leveraging the unique technologies
to detoxify and properly dispose of various waste materials.
As experts in waste disposal, we are helping to solve

global environmental problems and playing a key rolein building sustainable recycling-oriented societies.

Waste reagents

Waste oil and sludge

Glass

Business Fields
Government
and public
offices

Educational
institutions

Research
institutions

Glass
and sashmanufacturers

Hospitals,
clinics, etc.

Chemicalmanufacturers

Based on analysis results, waste oils fromfactories are mixed and adjusted to achieve
the optimal composition, before being
recycled as alternative fuels. Meanwhile,sludge is recycled as raw materials for cement
after adjusting content and moisture and thenkneading them. The aim is to ensure andmaintain the quality of all recycled materials.

Wood waste

Fire-proof bricks

Large amounts of scrap wood are generated
by the demolition of buildings and other sites.
We collect and shred this material into woodchips, which is used for fueling biomass
power generation plants or for making
particleboard.

18

CO R PORATE RE PORT 2019

Fire-proof bricks are used as refractories toline glass furnaces, kilns and incinerators.
Waste bricks generated by the demolishingof such facilities and periodic repair work arecollected and carefully sorted. Recyclable
items are reused as paving materials and fireproof bricks.

Plate glass is collected from glass andsash manufacturers, and glass bottles
from municipalities. The collected glass isscreened and pulverized at our own facility,
and recycled as high-quality glass cullet.
This is sold to manufacturers and reused tomake window glass, glass bottles, or homeinsulation.

Waste acids, alkalis
and sludge (inorganic/organic)

Waste acids, alkalis, and sludge are generated bya wide range of industries, and their properties arediverse, including inorganic and organic. Liquid
waste is collected by a vacuum truck, subjected toneutralization and dewatering processes, then treatedwith microbes, before being discharged into the
public sewer system. The residual sludge is recycled
as a raw material for refining or composting, etc.

■■
Revenue
Operating Income
■
■

10.0

3.5
Other
manufacturers

18.0

17.5

17.2

15.0

3.0

3.3

3.3

2.0
1.0
0

2018

2019

2020

ResultForecast

Forecast(FY)

Solving social issues through business activities
Social issues
relating to
the Environmental
Preservation
Business

The Group collects reagents for disposal fromeducational and research institutions. They are
packed one by one for collection, confirmingthat they are stored in proper collection
containers. Chemical content analysis isperformed for any unidentified (poorly
labeled) reagents to determine the appropriate
processing method before disposal. Even small
quantities of miscellaneous wastes that are
difficult to handle are also processed properly.

The 8th Medium-Term Business Plan(billion yen)

25.0

Plant
manufacturers

Se gme n t s

Be a leader in the environmental business in Japan

20.0

Research
institutions /laboratoriest oEnvironmental Preservation Businessthey have developed over the decades in their respective fields

I n t r o d u c t i o n

Introduction to Segments

Environmental Preservation Business● Contamination by hazardous waste● Impact on land and ocean ecosystems● Pollution of water resources

Contributing to the SDGs

Realizing a sustainable society byrecycling and detoxifying waste

Securing the sustainability ofwater resources by detoxifying
discharge such as waste acids
and alkalis

Preventing marine pollution byproperly treating liquid andplastic waste

Preventing pollution of land
environments by detoxifying
waste, and extending the lifespanof final disposal sites by promoting recycling

Advancing technological innovationfrom the standpoint of further
improving resource utilization
efficiency for various waste products,
and promoting global sustainability

Achieving sustainable cities andother communities by properly
managing waste

Helping to prevent climate change by reducing CO2 emissions from waste-to-energy power
generation
Promoting high levels of sustainability by collaborating with other companies

AS AH I H O L D ING S

19

Processes of Industrial Waste Disposal and Recycling
Collection andtransportation

Intermediate
treatment■ Industrial waste■ Neutralization

18 articles including waste
acids, waste alkalis, waste oil,sludge, waste plastics, etc.

Group Network

Se gme n t s■ Incineration■ Condensation andprecipitation■ Dewatering■ Cyanide

Asahi Pretec Kobe Plant

industrial waste● Detoxification of liquid waste and sludge● Oil-water separation of waste water

Japan Waste Saitama Office
JW Chemitech Kawaguchi Plant

Asahi Pretec
Kitakyushu Office/Plant● Neutralization and dewatering processof inorganic liquid waste● Incineration of various waste

17 articles of hazardous
waste, such as waste acids,
waste alkalis, waste oiland sludge, which containspecified toxic substances,and infectious waste

decomposition■ Oil-water

separating
mixing■ Sorting,compressing,crushing■ Kneading■ Concreting■ Roasting■ Fermentation andcomposting■ Grading
Incineration facility, Kitakyushu Plant, Asahi Pretec

JW Chemitech Ibaraki Plant● Sludge recycling

Waste oil recycling facility, Yokohama Plant, Japan Waste■ Neutralization,

Landfill■ Specially controlled

Environmental Preservation Business

The Group has acquired licenses for the collection, transportation, and intermediate treatment of most types of industrial waste
and specially controlled industrial waste, and it has created systems that enable the proper and prompt disposal of such waste.
Moreover, our superior technology for detoxification of industrial waste allows us to provide optimal environmental solutions.

t oRecycling

Leveraging field-specific disposal technologies to provide prompt, high-value-added
services that meet the diverse, sophisticated needs of customers across industries

I n t r o d u c t i o n

Introduction to Segments

Environmental Preservation Business● Fermentation and composting of organic● Waste plastic crushingsludge and animal/plant wastes

JW Glass
Recycling● Recycling ofglass plate andbottles

Japan Waste Headquarters

Fuji Rozai
Taiyo Chemical
Ijuin Plant/Taniyama Rinkai Plant● Regular maintenanceand demolition workfor glass manufacturingkilns and waste incinerators● Incineration of various waste● Detoxification of liquid waste

Japan Waste
Shonan Office/Samukawa Plant● Concreting process for burnt residues,

dust and sludge generated by incinerators, etc.

Asahi Pretec sales offices and plants

JW Chemitech Totsuka Plant

Japan Waste and group companies● Neutralization and dewatering

process of organic liquid waste

Japan Waste
Yokohama Office/Ogimachi Center● Sorting, recycling of mixedwasteJapan Waste
Yokohama Office/Plant● Recycling of sludge, waste oil

and wood chip

Licenses acquired by the Group (As of March 31, 2019)(As of April 1, 2019)

Industrial waste collection transportation license

All prefectures and government ordinance cities

Industrial waste disposal license

12 prefectures and 8 government ordinance cities

Specially controlled industrial waste collection transportation license

All prefectures and government ordinance cities

Specially controlled industrial waste disposal license

10 prefectures and 7 government ordinance cities

Excellent industrial waste management company certification*

Asahi Pretec: All prefectures and government ordinance cities
Japan Waste: 22 prefectures and 4 government ordinance cities

Superior Technologies Enable Various Types of Treatment
Treatment of specified hazardous waste acids,
waste alkalis and waste reagents

High-speed microbial treatment of waste acids /alkalis and sludge

It is necessary to appropriately treat waste acids and waste alkalis
discharged from plants and offices and waste reagents which
are unnecessary at laboratories and institutes of universities andprivate companies. These various kinds of waste are treated fordetoxification in the dedicated facilities at each plant utilizing
technology which has been cultivated over many years by theGroup under thorough safety management procedures. Waste isseparately stored in containers in accordance with the Group’s
classification standards and measures are taken to prevent abnormal
reactions during collection, transportation and storage. We evenanalyze and provide appropriate treatment of unidentifiable waste
reagent that comes to us unlabeled.

After removing hazardous substances from waste liquids fromplants and offices, even if liquids contain nitrogen and phosphorus,
we use original microbial treatment and other technologies
to detoxify and purify them to levels below environmental
management standards governing water discharge, before
discharge. Energy consumption and CO2 emissions, especially,
are lower than other treatment methods. Sludge remaining after
neutralization and dewatering of liquid waste is reused as raw
materials for the production of nonferrous metals and steel. Somesludge which cannot be recycled is sent for landfill disposal.

Safe and hygienic incineration which can treat
specially controlled industrial wastes
Labor-saving operations are accomplished by centrally controllingeach piece of automated equipment. In addition, medical wastes aretreated in a safe and hygienic manner using a specialized automatic
provision line to cast them into the incinerator. We can treat
various kinds of industrial wastes, from solid to fluid, efficiently
and precisely.

Concreting of hazardous substances
Some wastes from incinerators such as burnt residues, dust, sludge
and other waste that contain hazardous substances (heavy metals
such as arsenic, lead, chrome, selenium, etc., or dioxin) may not
be suited for recycling. We concrete such waste into a solidified,insoluble form to ensure that hazardous substances will not beeluted. Our original facilities and technologies prevent hazardous
substances from eluting into the natural environment even understrong acidic conditions.

*In April 2011, Japanese laws concerning industrial waste management were revised, creating a new recognition system for excellent industrial waste management companies.
Prefectures and government ordinance cities select companies which meet their strict standards in areas such as operational implementation capacity and experience. All Group
companies are pursuing this certification, aiming to ensure that customers can feel totally confident about doing business with the Group.

20

CO R PORATE RE PORT 2019

AS AH I H O L D ING S

21

I n t r o d u c t i o n

MassagechairsHealth and medical
equipmentt o

Se gme n t s

Be the worldʼs number one brand in the health-related business

The 8th Medium-Term Business Plan

The Group provides devices and equipment■■
Revenue
Operating Income■■(billion yen)

30.0

and live comfortably through the three companies

Business
Fieldsunder the umbrella of Asahi Life & Health Corporation.

25.0

30.0

26.5

23.7

Life & Health Businessthat help people maintain their health

35.0

20.0

In this business, we aim to raise health-consciousness

3.0
2.0

and meet the needs of aging societies.

1.8

1.5

2.4

1.0

Energy-saving air
conditioning system

FUJI MEDICAL INSTRUMENTS MFG. CO., LTD.

Fire prevention
systems

0

2018

2019

2020

ResultForecast

Forecast

Introduction to Segments

Life & Health Business(FY)

Solving social issues through business activities

Joined the Group in July 2014
Established: 1954
Incorporated: April 1965

Social issues
relating to
the Life &Health Business

Capital: 300 million yen
Business line: Manufacture, sales, import and export ofhealth and beauty equipment
Head office location: Oe Bldg. 14F, 1-1-22 Noninbashi,
Chuo-ku, Osaka 540-0011 Japan● Growing elderly population in major countries● Increased risk of lifestyle-related diseases● Higher disaster risk due to climate change

Cyber Relax AS-2000

INTER CENTRAL, INC.
Joined the Group in July 2012
Established: 1974
Incorporated: October 1974

Contributing to the SDGs

Capital: 153.75 million yen
Business line: Manufacturing and sale of heating equipment,
design and construction of radiant air conditioning systems
Head office location: 417-1 Tokusagawa, Takizawa, Iwate
020-0616 Japan

Project example: "Minna no Mori" Gifu Media Cosmos
photo by Kai Nakamura

KOEIKOGYO CO., LTD.
Joined the Group in March 2014
Established: June 1978
Incorporated: August 1988
Capital: 30 million yen

Contributing to disease prevention and health promotion by
developing, manufacturing andmarketing health-related
products

Promoting technological development and improvement throughinvestment in R&D related to energy
saving and disaster prevention, andrealizing resilient infrastructure

Helping to develop districts thatcan withstand fire by designingand installing fire prevention
systems

Improving resilience to disasters
caused by climate change, by
designing and installing fire
prevention and energy-saving
equipment

Helping to reduce emissions of chemical substances and waste throughout the product life
cycle using innovative product planning and design

Business line: Design and construction of facilities for fire
prevention, air-conditioning and sanitation

Promoting high levels of sustainability by collaborating with other companies

Head office location: 191-2 Kashio-cho, Totsuka-ku,
Yokohama, Kanagawa 244-0812 Japan

Project example: Keio University Hospital New Hospital Wing (Building 1)(As of April 1, 2019)22

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AS AH I H O L D ING S

23

I n t r o d u c t i o n

Leveraging decades of technology development experience to meeta broad range of social needs
Building on the Mechanical Engineering Heritage recognition it
won for creating the world's first mass-produced massage chair,
Fuji Medical Instruments Manufacturing has continued to bea world leader in massage chair development. Professionals invarious departments, including R&D, manufacturing, and sales,
conduct daily research and gather information, which is used for
new product development.
The company will continue to meet expectations with asystem that quickly identifies customer needs and uses theinformation for product planning.

Se gme n t s

Inter Central
Inter Central, Inc. provides comfortable environments by manufacturing and selling various electric heaters and designing andinstalling air conditioning systems. Today's heightened awareness of health and safety means that products need to offer comfort
and be user-friendly, while also being clean, energy-saving, and environmentally friendly. By pursuing the possibilities of air
conditioning, Inter Central will continue to take on the challenge of creating comfortable spaces.

Electric heaters
As a company responsible for efficient and energy-saving air conditioning equipment, Inter Central provides a wide variety of heating
equipment to various buildings, including public facilities and commercial facilities.

Life & Health Business

FUJI MEDICAL INSTRUMENTS MFG.

t oIntroduction to Segments

Life & Health Business

The worldʼs first commercializedmassage chair, introduced in 1954,
was authorized as a MechanicalEngineering Heritage in August 2014.

"Sunheat"radiating far infrared heater

Main Product Lines"Panel Heater"(natural convention type)"Lucciola"
far infrared heater"MyHeat Seraphy"
far infrared heater

Radiant air conditioning systems

Massage chairs

Small massagers

Alkaline water ionizers

As the product that launched the business,massage chair development has always
been a priority for the company. A wide
variety of massage chairs are available,from the high-performance Royal Chair tocompact and cost-effective models.

Easy-to-use seat-type massagers havebeen developed for use on chairs andsofas. Multi-functional foot massagers aredesigned to perform careful massage fromthe soles up to the thighs, in order to carefor easily fatigued feet and legs.

Whether it is drinking, cooking, orcleaning, water is essential to everyone's
life. An alkaline water ionizer canenhance daily comfort and health.

Ceiling radiant air conditioning systems

Floor radiant air conditioning systems

Ceiling and floor radiant air conditioning systems use hot
and cold water as well as forced air in combination. By
cooling or heating the entire ceiling or floor and causing
those surfaces to radiate cold or heat in the room, theair conditioning system creates a pleasant space with
comfortable temperatures and no noise.
Ceiling radiant air conditioning systems are widelyused in medical settings and offices, while floor radiant air
conditioning systems are widely used in entrance lobbies
such as those in government buildings and commercial
facilities, as well as in libraries, art galleries and museums.

Koeikogyo
Hearing aids

Home-use treatment equipment

Fitness equipment

We offer a wide range of hearing
aids. They can be worn with ease andcomfort thanks to advanced digital-audio
processing technology and outstanding design.

Many people suffer from nerve pain, stiffshoulders, and muscle fatigue. To meetthese needs, we offer a diverse lineupof home-use therapeutic equipment suchas ultrashort wave and electric potential
treatment devices.

We offer fitness equipment for those whowant to enjoy training and conditioningat home.

Since it was founded 40 years ago, Koeikogyo Co. Ltd. has established a proven track record in the design and construction ofdisaster prevention systems and building equipment. With the advantage of advanced design technology, ample onsite experience,and extensive engineering know-how, the company can promptly devise the best plan for the customer’s needs, and will continue topromote safe cities and peace of mind.

Fire protection equipment inspection

Sprinkler installation

Fire protection equipment installation

The Fire Service Act requires the inspection of fire safety
equipment in buildings and the reporting of inspection
results. The company's dedicated staff take responsibility
for handling customer obligations under this law.

Koeikogyo installs sprinklers in new construction
as well as existing buildings, including welfare
facilities and hospitals, as required by the revised
Fire Service Act.

The company also provides prompt installation of fire
safety equipment for customers who are renovating
an existing building, or who need to repair fire safety
equipment after an inspection.

2019 New Product Information
Utilizing a Wealth of Expertise: AI Massage Chairs

Cyber Relax Massage Chair AS-2000
By combining expertise developed over 65 years with newly
developed artificial intelligence (AI) technology, this massage chair
is designed to exceed customer expectations. It offers a wide variety
of massage functions that could only be realized by a specialized
manufacturer who completely understands massage. The AS-2000
provides total care for the unique fatigue felt by each individual.

24

CO R PORATE RE PORT 2019

AS AH I H O L D ING S

25

Board of Directors

Basic Corporate Governance Approach
Practicing effective corporate governance is a key part of corporate social responsibility. Good governance enhances management
efﬁciency and transparency, and it helps keep corporate value growing.
The Asahi Holdings Group’s practice of corporate governance seeks to earn the conﬁdence of shareholders, business partners,
employees, local communities, and other important stakeholders. In addition to fulﬁlling the social mission and responsibilities ofa publicly listed company, we aim to keep growing corporate value by maintaining a corporate governance system that can quickly
respond to changes in the business environment while always securing compliance.

Corporate Governance Structure

The Board of Directors of Asahi Holdings, Inc. is comprisedof executive directors who are knowledgeable concerning theirrespective business, technical or administrative divisions, as wellas outside directors with various types of expertise essential tocorporate management. To have an adequate number of directors
for active, substantial and effective discussions at meetings, theBoard of Directors consists of eight directors, including three
independent outside directors. All directors share their opinions
actively and freely on important subjects such as the Group’s
management strategies and business plans.

Outside Directors

Audit and Supervisory
Committee: 4 Directors

Independence Criteria have been established, and independent
outside directors with capacity to perform their duties
independently from the management of the Company have been
appointed, taking into consideration their individual backgrounds
and relationships with the Group. They attend Board of Directors
meetings and fulfill their roles and responsibilities as directors.
Whenever possible, they also attend the executive and management
committee meetings of Group companies. As part of their wideranging activities, the outside directors share their opinions froman independent point of view.

(including 3 Independent
Outside Directors)

Evaluating the Effectiveness of the Board of Directors

General Shareholder ʼ s Meeting

Appoint/
Dismiss

Appoint/
Dismiss

Appoint/
Dismiss

Board of Directors:

8 Directors

Executive
Directors: 4

Audit/Supervise

Collaborate

Representative
Director

Group Executive
Committee

Inquire/Reply

The Nominating/Compensation Committee:
3 Directors on Each

Collaborate
Audit report
Assist(including 2 Independent
Outside Directors)

Direct/Report

Audit andSupervisory
Committee
Secretariat

Audit
Department

Internal Control
Promotion Meeting
Safety Management
Meeting

Internal audit

Departments and Group Companies

26

CO R PORATE RE PORT 2019

Accounting Auditors

Appoint/
Dismiss/
Supervise

Adherence to Japan ʼs Corporate Governance CodeThe Asahi Holdings Group adheres to all the principles of Japan’s
Corporate Governance Code formulated by the Tokyo Stock
Exchange. The 78-point code compliance reports submitted by
Asahi Holdings to the Tokyo Stock Exchange are available on
our website. In addition, we have formulated the Asahi Holdings
Corporate Governance Policies and are implementing each one tocontinuously enhance corporate governance.

GOVERNANCE

Organization Design

Corporate Governance

ESG Initiatives

GOVERNANCE

Maintaining an Internal Control System
Aiming to reinforce internal controls, we have established an
Audit and Supervisory Committee within the Board of Directors.
It includes three independent outside directors, and it cooperates
with our audit and internal control departments.
The Audit Department assesses the appropriateness andeffectiveness of operations, while also auditing compliancewith laws, regulations, and company rules. It advises and makes
recommendations to each department, and promptly reports tosenior management. In addition, trained staff in each department
conduct internal audits based on an annual plan and report theirfindings to the Internal Control Promotion Meeting.

As of the year ended March 31, 2016, Asahi Holdings has
evaluated the effectiveness of its Board of Directors every year toensure that the entire board is functioning properly. The evaluation
results are available on our website.

Audit and Supervisory Committee
Under Japan’s Companies Act, Asahi Holdings has elected to be acompany with an Audit and Supervisory Committee, and has three
independent outside directors. This structure has strengthened thesupervisory function of the Board of Directors. It also delegates
important executive decisions to the executive directors for quicker
decision-making and improved management efficiency.

Nominating and Compensation Committees
Collaborate

A Nominating Committee, consisting of one regular director andtwo independent outside directors, as well as a Compensation
Committee, have been established as advisory bodies to the Boardof Directors. The aim is to further enhance corporate governanceby ensuring transparency, fairness, and objectivity for theappointment and dismissal of directors and key management teammembers, as well as for the determination of director remuneration.

Group Executive Committee
Important matters delegated to the executive directors aredeliberated and decided by the Group Executive Committee.
Other matters related to business execution are deliberated anddecided by the Group’s key company management meeting and thebusiness segment management meeting.
AS AH I H O L D ING S

27

ESG Initiatives

GOVERNANCE
To properly manage apparent and potential risks in business activities, we study risks from a comprehensive standpoint,
against which assessment is performed and actions taken. We are working hard to prevent risks from arising and to minimize
losses when risks develop into a crisis by carrying out risk management.
ComplianceInternal Reporting System (Whistle-Blowing System)

We consider compliance a priority issue in delivering fair businessactivities and ensuring legal compliance and high ethical standards.
Particularly, operations related to appropriate processing ofwastes are based on environmental laws and regulations as well as
governmental licenses, and each and every employee is required
always to act with a highly compliant mindset. We are conducting
activities to raise the legal compliance awareness of each andevery employee through education and mutual communication,
along with rules and manuals related to compliance.

To quickly identify and resolve problems such as unlawful andunjust behavior, we have set up the Asahi Hotline. All employees
in and outside of Japan can directly report to either an internal
desk or an external law firm anonymously. We take corrective
actions to address the reported matters after investigation, without
revealing the identity of the disclosing or disclosed parties.

Business Continuity Management (BCM)

Information Security

Various factors such as large-scale disasters entail the risk of
impairing the functions needed for business continuity. Asan action plan to achieve quick restoration of mission-critical
functions even after a disaster, we created a business continuity
plan (BCP). In addition to the BCP, we are conducting systematic
business continuity management activities to constantly improve
the BCP and business continuity endeavors.

The laptops and tablets used by the Group’s sales force are
equipped with the latest security measures. Even if a device is lostor stolen, the possibility of information leakage is virtually zero
thanks to technology such as remote data wiping.

GOVERNANCE

Risk Management
Officer Profiles
Mitsuharu Terayama

Tomoya Higashiura

ProfileProfileMar 1964: Bachelor of Economics, University of Tokyo
Apr 1964: Joined Kuraray Co., Ltd.
Jul 1973: Joined Asahi Pretec Corp.
May 1981: Appointed Representative Director andPresident of Asahi Pretec Corp.
Apr 2009: Appointed Representative Director andPresident of Asahi Holdings, Inc.
Apr 2011: Appointed Chairman and Director of Asahi Pretec Corp.
Jun 2014: Appointed President & CEO of Asahi Holdings, Inc.
Apr 2018: Appointed Representative Director and CEO of
Asahi Holdings, Inc. (to present)

Mar 1984: Bachelor of Human Science, Osaka University
Apr 1984: Joined NEC Corporation
Feb 2001: Joined Asahi Pretec Corp.
Jun 2006: Appointed Director of Asahi Pretec Corp.
Apr 2011: Appointed Director of Asahi Holdings, Inc.
Jun 2014: Appointed Representative Director andPresident of Asahi Pretec Corp.
Apr 2017: Appointed Representative Director andPresident of Asahi Americas Holdings, Inc. (to present)
Apr 2018: Appointed Director of Asahi Pretec Corp. (to present)
Apr 2018: Appointed Representative Director andPresident of Asahi Holdings, Inc. (to present)

Amane Kojima

Hiroyuki Nakanishi

ProfileProfileMar 1992: Bachelor of Business and Commerce, Keio
University
Apr 1992: Joined Nissho Iwai Corporation
Jun 2009: Received MBA from University of WalesMar 2011: Joined Asahi Pretec Corp.
Apr 2012: Appointed General Manager of Accounting
Division of Asahi Holdings, Inc. (to present)
Jan 2013: Registered as a USCPA (Washington)
Jun 2017: Appointed Director of Asahi Holdings, Inc. (to present)
Apr 2018: Appointed Director of Asahi Americas Holdings, Inc.
(to present)

Mar 1986: Bachelor of Commerce, Hannan University
Apr 1986: Joined Asahi Pretec Corp.
Jun 2009: Appointed Executive Officer of Asahi Pretec Corp.
Apr 2013: Appointed Director of Japan Waste Corporation
Jun 2016: Appointed Representative Director and Presidentof Fuji Medical Instruments Mfg. Co., Ltd.
Apr 2018: Appointed Representative Director and Presidentof Asahi Pretec Corp. (to present)
Jun 2018: Appointed Director of Asahi Holdings, Inc. (to present)

Audit and Supervisory Committee Members
Yuji Kimura

Kyoko Kanazawa

ProfileProfileMar 1978: Bachelor of Science, University of Tokyo
Apr 1979: Joined the Environment Agency
Jul 2006: Appointed General Manager of Industrial Waste
Management Division, Waste Management andRecycling Department of the Ministry of the Environment
Aug 2010: Appointed Director-General of Kyoto Mechanism
Business Promotion Department of New Energy andIndustrial Technology Development Organization
Jul 2012: Appointed Director-General of Hakodate
Customs, Ministry of Finance JapanOct 2014: Appointed Executive Director and General
Manager of Tokyo Office, Global Environment
Centre Foundation (to present)
Jun 2017: Appointed Outside Director (serving as Audit
and Supervisory Committee Member) of Asahi
Holdings, Inc. (to present)

Sep 1988: Master of Social Sciences, University of Kent
Mar 1989: Bachelor of Law, Gakushuin University
Apr 1989: Joined Fuji Research Institute Corporation
Apr 2000: Registered as attorney / Joined Hata & Co. Law
Offices (to present)
Jun 2017: Appointed Outside Director (serving as Audit
and Supervisory Committee Member) of Asahi
Holdings, Inc. (to present)

Yoshikatsu Takeuchi

Yoshinori Hara

ProfileProfileMar 1978: Bachelor of Law, Kobe University
Apr 1978: Joined Hyogo Sogo Bank
Apr 1999: Joined Asahi Pretec Corp.
Jun 2001: Appointed Director of Asahi Pretec Corp.
May 2008: Appointed Representative Director and Presidentof Japan Waste Corporation
Apr 2009: Appointed Director of Asahi Holdings, Inc.
Apr 2018: Appointed Director and Chairman of Japan
Waste Corporation
Apr 2018: Appointed Director and Chairman of Asahi Life &Health Corporation
Jun 2019: Appointed Director (serving as Audit andSupervisory Committee Member) of Asahi
Holdings, Inc. (to present)

Mar 1983: Master of Engineering, University of Tokyo
Apr 1983: Joined NEC Corporation
Aug 1990: Became a Visiting Researcher, Stanford University
Jul 2004: Supervised NECʼs Kansai Research Laboratories
Apr 2006: Professor of Graduate School of Management,
Kyoto University (to present)
Apr 2018: Dean of Graduate School of Management, Kyoto
University (to present)
Jun 2019: Appointed Outside Director (serving as Audit
and Supervisory Committee Member) of Asahi
Holdings, Inc. (to present)(As of June 18, 2019)28

CO R PORATE RE PORT 2019

AS AH I H O L D ING S

29

ESG Initiatives

ENVIRONMENTThe Asahi Holdings Group strives to ensure that its business activities contribute to healthy
cyclical use of materials to protect the global environment.

Priority SDG-Related Goal

Recycling

INPUT

Expand precious metal recycling
We will use the amount of precious
metal ore saved due to precious metal
recycling as an important indicator,
while expanding and promoting thiseffort globally.

OUTCOME

Saving Precious Metal Ore
The Asahi Holdings Group helps to protect the global environment
by recycling raw materials and various types of waste, which helps toreduce additional mining and logging of natural resources (precious andnonferrous metal ores, agalmatolite, silica, timber, fossil fuels, etc.).

Raw materials for recycling

Recycling
Products

millionAsahi
Grtons/year

We will recycle raw materials
including precious metals andsave mineral resources such as
precious metal ores.
* Data relates to Japan

Holdings
oup

Priority SDG-Related Goal
Expand waste recycling
We will use the waste recycling rate
as an important indicator and work
to expand waste recycling.

Recycling Rate: 76.2 ％Precious Metal bullion

Precious metal ore

1.63

Glass cullet, fermented
compost, metal raw
materials, fuels and raw
materials for cement,
refractory brick and paving
materials, and wood chips◆Glass cullet◆ Fermented compost(bottles, waste glass sheets)(food wastes, organic sludge)

89,679 t / year 12,451 t / year
◆Metal raw materials(Construction metal scrap,
liquid waste containing metals)

Recycling

8,457 t / year

Resources

Industrial waste◆Refractory brick andpaving materials(Furnace waste material)

1.63 million tons is equivalent
to roughly the amount of landfill
waste produced in Tokyo overthree years.

4,002 t / year

◆ Heavy oil

44.5 kWh / year

878 kL / year

◆Kerosene◆ Light oil

458 kL / year

3,583 kL / year

◆Gasoline◆ Urban gas

1,630 kL / year

3.26 mmillion/ yearmillion◆LPG

21t / year
30

CO R PORATE RE PORT 20193

Up compared to the previous year
Down compared to the previous year

All figures are for FY2018

PlantsBusiness sites,
research lab, etc.

Energy◆Fuels / raw materials

for cement(plastic waste, sludge)

49,171t / year
◆ Wood chips(Construction metal scrap)

23,785 t / year

* Target for Asahi Holdings and group companies in Japan

Waste

Energy Sources◆Electricity

ENVIRONMENT

Environmental Initiatives of the Asahi Holdings Group

21,920ｔ

Priority SDG-Related Goal
Reduce CO 2 emissions
The aim is to reduce CO 2 emissions
by 26% (compared to fiscal 2015) byfiscal 2030 for the entire Group.

Effluent

249,786m

Chemicals

15,992ｔ

CO 2

Water

411, 381m

390,162ｔ3

CO 2 Emissions
Compared to FY2015

11％ reduction

AS AH I H O L D ING S

31

Priority SDG-Related Goal
Environmental management structureManagement

ISO 14001 Certification

In August 2018, we integrated the ISO 14001 certiﬁcation for ourbusiness sites in Japan, including afﬁliated companies, acquiringcertiﬁcation for 32 locations at six companies. Going forward, we
will continue to work to maintain and improve performance with
an emphasis on integration with our business.

(1,000 tons CO 2)

40

General Environment
Committee■Energy-derived CO2 emissions (outside Japan)

44.4

42.4

43.3

41.7

14.7

14.1

14.9

15.3

57.1

ISO Office

20
Supervisors

0

Environment
Preservation
Administrator
Environment
Committee
Department

Environmental Management Promotion System

Every year we develop Company-wide Environmental Goals based on our Environmental Policy, which sets out ourenvironmental preservation philosophy. According to the above-established purposes and goals, each ISO 14001 certified
site in Japan develops its own Annual Environmental Goals and implements environmental preservation activities closely
related to their business tasks. In addition, the Environment Committee of each site deliberates on such matters ascompliance with environmental laws and regulations, revisions of plans and environmental education, and provides reports
to management. While the ISO Office controls the environmental management system (EMS), an environmental preservation
administrator is also assigned for each site in order to ensure thorough implementation of environmental initiatives.

29.7

FY2015(Base year)

Internal Auditors

ISO 14001 certificate■Energy-derived CO2 emissions (in Japan)■Non-energy-derived CO2 emissions

60

Chief Environment
Control Manager

Supervisors

Reduce CO2
emissions

CO2 emission trends

General Internal
Auditors

Supervisors

Climate Change Prevention Initiatives

ENVIRONMENT

Environmental Management

ESG Initiatives

ENVIRONMENT

52.1
28.4

FY2016

51.8

48.4

28.3

26.4

FY2017FY2018(FY)

The Group's total CO2 emissions in ﬁscal 2018 were down by 11% compared to ﬁscal 2015. Although energy-derived CO2
emissions outside Japan increased slightly over ﬁscal 2015, as a result of efforts to save energy at sites in Japan and a decrease in
the CO2 conversion coefﬁcient used by supplier power companies, the Group's overall energy-derived CO2 emissions were down
by 6%. In addition, emissions generated from industrial waste incineration decreased by 15% due to lower incineration volume
and other factors.
As one of its priority SDG-related goals, the Group is working toward a 26% reduction in CO2 emissions by ﬁscal 2030,
compared to ﬁscal 2015. The Group's energy-derived CO2 emissions in Japan mainly stem from power consumption in ofﬁces, power
and fuel consumption in factories, and fuel consumption by sales and other vehicles. Overseas, these emissions originate from power
and fuel consumption in factories and ofﬁces. Non-energy-derived CO2 emissions arise from the incineration of industrial waste.
We focus on energy-derived CO2 emissions in particular, and aim to achieve our target by implementing various measures. These
include generating power from waste, reducing energy use for air conditioning, lighting and vehicles, and changing electric power providers.
Scope of data

Asahi Holdings, group companies inside and outside Japan (period: April to March)

Calculation method
Energy-derived emissions: Calculated based on the amounts of electricity and fuel consumed at each site (emissions in Japan calculated based on the Act on
Promotion of Global Warming Countermeasures, and the Act on the Rational Use of Energy)
Non-energy-derived emissions: Calculated based on the amount of industrial waste incineration

Generating power from waste
Environmental preservation activities by employees
We actively participate in cleaning activities in each region.

Waste-to-energy is a power generation method that uses the heatgenerated from waste incineration. It produces high temperaturesand high-pressure steam that turns a turbine and generates power.
By taking advantage of the energy released during waste incineration
to produce electricity, the Group can reduce the amount of fuel used,
thereby reducing CO2 emissions accordingly.
The Group is constructing a waste-to-energy power plant in the cityof Kitakyushu. By achieving advanced and highly efficient heat recovery,
we are helping to prevent global warming and build a low-carbon society.

Garbage crane

Garbage pit

Okinawa: Beach cleanup

32

CO R PORATE RE PORT 2019

Fukuoka: Roadside cleanup Sendai: Roadside cleanup

Boiler

TurbineGenerator

Powergeneration

Exhaust gas
treatment
equipment

Smokestack

Waste

Incineration ash

AS AH I H O L D ING S

33

Diversity and Inclusion

The Asahi Holdings Group’s approach to health management starts with treating the physical and mental health of all employees
as a key management issue. The Group believes it is important for individuals to live rewarding lives by making the most of theirabilities, while balancing their work and family responsibilities. Therefore, it is promoting various initiatives to create workplaces
that foster employee health and peace of mind.

The Asahi Holdings Group seeks to create workplaces where diverse human resources can work dynamically regardless of genderor nationality. We provide various forms of support so that employees can fully realize their professional strengths and make theirwork as rewarding as possible.

The Asahi Holdings Group recognizes that every employeeʼs mental and physical health are assets to the company and is working
to enhance corporate value by building healthy, productive workplaces.

Mitsuharu Terayama, Chairman & CEO● Running a robust health exam program that exceeds legal requirements and practicing thorough mental

and physical health management● Encouraging employees to understand the importance of their own health, and supporting them to maintainand promote their own health● Promoting work-style reforms with the aim of improving work-life balance

Robust Health Exam Program that Exceeds Legal Requirements

Priority SDG-Related Goal

Starting at age 35, a gastroscopic examination is recommended for
employees, and brain MRI / MRA exams as well as PET scans areprovided periodically starting at age 40. If further examination isnecessary, assistance is provided to cover the expenses.
We maintain a 100% employee examination rate, and a new
system has been implemented that can track diagnosis results overtime. Employees and the company are working together to promotehealth, prevent disease, and enable early detection.

To ensure the health of employees, we have introduced a work
system that requires a rest interval of at least 11 hours before
an employee can return to work the next day. The level ofachievement is also checked using the system, and the goal is toreach 100% compliance. In addition, with the exception of shift
workers, employees are prevented from working during the latenight hours of 10 p.m. to 5 a.m.

We are working to create a supportive environment for employees
who need time off work for family reasons, such as those expecting
a baby, raising young children, or caring for a family member.
Employees can receive shortened work hours after maternity leave
and up until the child graduates from elementary school, whichgoes beyond legal requirements. Our system also makes it easy for
employees to take other legally mandated leave and allows them toadjust their work to their personal situation.

We aim to be a company where female employees can succeed in
the workplace and demonstrate their full potential. Round-tablediscussions are held for female executives and employees. Throughthese discussions, we are working to raise awareness of career
opportunities and to make workplaces more supportive for women.

Priority SDG-Related Goal

Employment of People with Disabilities

Priority SDG-Related Goal

Holidays for Refreshment

Since good mental health is essential for improving employee
productivity and vitality, employees are given individual consultations
and preventative seminars by industrial physicians specialized inmental health. In addition, stress checks are given to all employees at
all sites including workplaces with fewer than 50 people.

In order for employees to feel refreshed mentally and physically andto be more dynamic at work, a Holidays for Refreshment system has
been established in the employment regulations. It allows employees
to take ﬁve consecutive holidays. The aim is for all Group employees
to utilize this program.

Flextime System

Women in the Workplace

Priority SDG-Related Goal
Enhance the system forhuman resources to succeed
We will strive to enhance job satisfaction by improving thesystem to help diverse human resources to succeed within
the Group. This will be done by reforming working styles,
implementing health management, and promoting diversity.

We will strive to create rewarding work opportunities for people
with disabilities that will allow them to utilize their abilities andexperience to participate in the workforce.

Rest Intervals and No Late-Night Work

Mental Health

Targets for Priority SDG-Related Goals
The following targets have been set for our priority SDG-related goals, and we are working to achieve them.
SDG-Related Goal

TargetThorough implementation of the rest interval system (at least 11 hours rest)

100% of legally mandated rate by fiscal 2020

Raising the usage rate of Holidays for Refreshment (at least 3 days off)

100% of legally mandated rate by fiscal 2020

Increasing the percentage of women in managerial positions

Equal to male employees by fiscal 2030 (currently at 20%)

Promoting the employment of people with disabilities

Legally required employment rate or higher*Target for Group companies in Japan

Human Resource Development
With the aim of developing professional human resources who can operate at a global level, regardless of rank or occupation type, we have
implemented our own qualiﬁcation systems and internal education curriculums. In addition, we are striving to develop human resources
who enjoy taking on challenges, using systems that fairly and impartially evaluate each employee’s contribution to business performance.

Language learning support

Qualification acquisition support

Online education (e-learning)

MBA program utilizing external
educational institutions

Self-learning
Program for sending
selected employees to study
outside the company(business school)

Promotion candidate training

Managerial position training

Selective leader training

Rank-based education

New graduate
reportpresentations

Step-up training

In order to reduce occupational accidents, it is necessary to minimize
countless potential risks in the workplace. By using an Occupational
Safety and Health Management System (OSHMS) to perform risk
management, we have established a series of safety management
processes for ongoing health and safety management. The aim is toimprove workplace health and safety levels.

Training for new hires

Occupational Safety and Health Management System (OSHMS)

Company sales vehicles are equipped with drive recorders, which
record video and display warnings when dangerous driving (sudden
braking, acceleration, or steering action) is detected. The obtained
data is also used for driving evaluations of sales employees. We areworking to reduce car accidents by raising driving safety awarenessamong employees.

Mid-level
positions

Safety Management Using Vehicle Drive Recorders

Basic-level
positions

Creating Safe Workplaces

Upper-level
positions

Education
for new hires

New manager training

We have implemented a variable working hours system that allows
employees to adjust their prescribed work hours and better utilize
the slow hours of the business day. The aim is to make the working
hours structure more ﬂexible and enable employees to create a
fulﬁlling life. These include visiting the doctor and other activities tomaintain their health, caring for their children or elderly parents, andparticipating in family events. In addition, we are working to further
optimize work hours by using IT and streamlining operations.

CO R PORATE RE PORT 2019

Priority SDG-Related Goal

Professional and specialist
positionsMain
measures

Work-Life Balance Support

SOCIETY

Health Management and Work-Life Balance

Asahi Holdings Health Declaration

34

ESG Initiatives

SOCIETY

AS AH I H O L D ING S

35

ESG Initiatives

SOCIETY
Partnering with Shareholders and InvestorsServing our Customers

In order to meet the expectations of our shareholders and investors, we present our vision, management policy, and medium-term businessplan in accessible way, and disclose corporate information in a timely and appropriate manner. In addition, the Group is actively engaged
in constructive dialogue with shareholders and investors, while aiming for sustainable growth and higher corporate value.

Our motto is “the customer comes ﬁrst,” and we mean it. We do all that we can to provide ﬁnely tuned responses to the wideranging needs of each of our customers.
Fair Trade Measures

IR Activities

General Shareholder ʼ s Meeting

Management brieﬁngs are held twice a year after the announcement of thesecond quarter ﬁnancial results and the annual ﬁnancial results. In addition,
we give individual interviews as an opportunity to directly explain ﬁnancial
information to institutional investors and securities analysts on a quarterly
basis. We also disclose information fairly and broadly to all stakeholders inJapanese and English, using IR tools such as our website.

The regular general meeting of shareholders is held every June in Kobe
and provides an opportunity to communicate with shareholders. Senior
management responds directly to the questions and concerns of attendees,
uses the feedback for management of the Group, and aims to make themeetings useful for shareholders.

The basic policy of Asahi Holdings is to improve corporate value by maintaining profitability and delivering sustainable growth, andto meet the expectations of shareholders by providing sustainable, stable dividends. We also believe that it is important to enhanceinternal reserves to prepare for investment in growth areas and new business development. Based on this policy, we aim for a
consolidated dividend payout ratio of 50% or higher. The ratio is decided after taking into consideration the business results of eachfiscal year, the need for enhancing the financial position, and the management strategy of the Group.

Commemorative

Dividend Per Share ■ dividend

Dividend payout ratio (Japanese standard)(Unit: %)Mid-term■ dividend

Year-End■ Dividend

Dividend payout ratio (IFRS)Stock Ownership, by Types of Shareholders(Unit: JPY)
(Unit: %)Securities Firms
1,017,757shares

68.6

70
60

Other Companies
2,784,863shares

52.6

ForeignInvestors
8,564,171shares

39.1

32.8

30

21.5％

33.9
(Unit: JPY)

23.3

20

Treasury Stocks
33,387shares

2.6％

0.1％

120

Individuals
and Others
15,384,466shares

Number ofshareholders

38.6％

30

30

30

30

30

30

30

30

30

30

2013

2014

2015

2016

2017

Stock Prices■ Trading volume (shares)

60

3

2018

0

30.3

％
(As of March 31, 2019)■Closing price(JPY)(1,000 shares)

Asahi Pretec has implemented a CSR Procurement Policy. It pertains to the
procurement of secondary materials such as chemicals and consumables
used in precious metal recycling and the environmental preservation
business.

2,500

12,5002,000

10,000

1,500

7,500

1,000

5,000

500

2,500

As an enterprise with business activities across Japan, the Group realizes that the understanding and support of local
residents is indispensable. In order to maintain good relations with our neighbors, we are promoting various types of social
contribution activities to benefit communities and the natural environment. We will continue to fulfill our responsibilities asa corporate citizen and actively contribute to the development of an even healthier society.

15,0003,000

0Transactions are promoted based on relationships of trustwith our business partners. The aim is to improve corporate
value for both our company and our business partners.

Working with Communities

Financial
Institutions
12,069,700shares60

1. Environmental preservation
2. Quality control
3. Fair trade
4. Information security
5. Crisis management
6. Social responsibility
7. Human rights protection and occupationalsafety and health

15,48360

10

At Asahi Pretec, quality assurance is positioned as the core department,
and it works closely with the sales, technology development, and productmanufacturing departments. It shares customer feedback and market trends withthese departments and cooperates with them to improve customer satisfaction. In
addition, the Asahi Holdings Group maintains ISO 9001 certiﬁcation to ensurethat its products deliver satisfaction and peace of mind to customers. We strive tocontinuously improve our quality management system and maintain the highest
quality possible.
As companies making health-related and electrical equipment, Fuji Medical
Instruments Mfg. and Inter Central have acquired certiﬁcation under Japan’s
Pharmaceutical and Medical Devices Act and from the Japan Electrical Safety& Environmental Technology Laboratories (JET). While also manufacturing forthe overseas market, these companies are working to continually improve thequality necessary for each business area. This includes compliance with the EU’s
Restriction of Hazardous Substances Directive (RoHS) and other regulations.

CSR Procurement Policy
Procurement is carried out based on the following seven points:

Procurement Initiatives

7.0％

50
40

As part of the Asahi Way, the Code of Conduct of the Asahi HoldingsGroup prohibits any behavior that impedes fair competition, violates the
conﬁdentiality of supplier information and technology, or results in improper
beneﬁts. These rules are strictly enforced to ensure compliance with fairbusiness practices and corporate ethics.

Quality Assurance System(Basic Policy on Shareholder Returns)

36

SOCIETY

Communication with Stakeholders

April 2013

CO R PORATE RE PORT 2019

April 2014

April 2015

April 2016

April 2017

April 2018

0Participating in Social Contribution Activities
The company has provided cooperation for the social project“TOOTH FAIRY,” which is run with the cooperation of Nippon
Foundation and Japan Dental Association. Some of the profits
obtained from sales of recycled precious metals are madeavailable as funds to assist the activities of these organizations.
We also support the nonprofit organizations Médecins duMonde Japon and Japan Cleft and Plate Foundation, which
provide medical support activities.
AS AH I H O L D ING S

37

Group Company Structure
Asahi Holdings, Inc.

Partnering with Employees
The Group actively supports social contribution activities undertaken by employees. It aims to create an environment thatencourages all employees to take a broad interest in various social issues and contribute to society voluntarily. In addition,
we are working to improve productivity by leveraging small group activities and building workplaces that satisfy employees.

Precious metals business(Precious metals recycling business)

Asahi Pretec Corp.

* Asahi Pretec also engages in the environmental preservation businessGroup Company Structure

SOCIETY

ASAHI G&S SDN. BHD.
Asahi Holdings SDG Activities

Asahi Small Group (ASG) Activities

Asahi Holdings SDG Activities are those that employees perform
independently, aside from their regular work, as members ofsociety to contribute to the SDGs.
The Sustainable Development Goals (SDG) Awards were
established to honor individuals and groups who have performed
outstanding SDG-related activities during the three years from2018 to 2020. As a company, we encourage and support all
employees in their efforts to understand and help achieve theglobal agenda set out in the SDGs.

Small group activities are carried out based on the voluntary andactive participation of employees in the same workplace. These
groups work to solve problems in the workplace through ingenuity.
The groups that have made the most outstanding efforts arerecognized at the Employee General Meeting.

Asahi Pretec Korea Co., Ltd.

Japan Waste Corporation

Environmental preservation business

JW Chemitech Co., Ltd.
Nihon Chemitech Logitem Co., Ltd.

Priority SDG-Related Goal

JW Glass Recycling Co., Ltd.

Encourage and support SDG activities

Taiyo Chemical Co., Ltd.

Employees, as upstanding citizens, are encouraged to help
achieve the SDGs as in various ways, including support forindividual and group volunteer activities.

Fuji Rozai Co., Ltd.

Asahi Life & Health Corporation

Life & Health Business

FUJI MEDICAL INSTRUMENTS MFG. CO., LTD.

FY2018 SDG Activities

Fujiiryoki, Inc.
INTER CENTRAL, INC.
KOEIKOGYO CO., LTD.

Asahi Americas Holdings, Inc.

Precious metals business(North American refining business)

Asahi Refining USA Inc.
Asahi Refining Canada Ltd.
Disaster volunteers

In 2018, there were many natural disasters acrossJapan. Employees worked with family and friends
as volunteers to support recovery after torrential
rains in places such as Hiroshima and Okayama.

38

CO R PORATE RE PORT 2019

Hanshin region: Beach park cleanup

Every year since 1988, employees have participated in beach park
cleanup activities. Many take part with their whole families. In fiscal
2018, a record number of employees and family members (49) took
part, including those from Group companies.

Asahi Refining Florida Inc.

(As of April 1, 2019)

AS AH I H O L D ING S

39

128.7 billion yen

Revenue(billion yen)Japanese Standard

150.0

Operating Income 14.5 billion yen(+11.1% over the previous fiscal year)

111.4(billion yen)

IFRS

15.0

Percentage who are women(%)

2,080(Persons)

14.5

106.8

10.0

1,961

1,928

21.2

(%)

20

20.2

10.5

9.6

Percentage outside Japan(%)

2,042

2,005

2,000

115.8

94.3

100.0

13.8

128.7

119.4

Number of Employees(+5.0% over the previous fiscal year)

Financial Highlights / Non-Financial Highlights

Financial Highlights / Non-Financial Highlights

18.4
17.5

6.1
50.0

16.7

1,500

5.0

0

2013

2014

2015

Earnings per Share (EPS)

2016

2017

0

2018

(FY)

228.14 yen

12.0
2013

2014

2015

2016

2017

2018

(FY)

1,000

13.6 %

Return on Equity (ROE)

(JPY)

11.5

11.6

10.5

10.4

10

9.4

9.0

8.4

11.8

11.7

（%）

300.0020

270.77

500

17.3

5

228.14200.00

1,328

1,277

1,206

1,180

2.0

15

1,360

183.5015176.89

2.8

13.6

13.6

11.9

4.0

1.9

1.4

3.2

10

87.48

100.00

0.00

0

5.8

5

2010

2011

2012

2013

2014

2015

2016

2017

2018

(FY)

0

-37.24-100.00

0
2009

2013

2014

Total Assets

2015

2016

-2.6
2017

-5

2018

(FY)

160.3 billion yen

2014

2015

2016

2017

2018

（%）

150.0

80

70.1

131.5
104.9
100.0

60

101.6

49.8

89.0
48.2

40

66.1

49.0

Unit

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Number of employees

Persons

1,180

1,206

1,277

1,328

1,360

2,080

2,005

1,961

1,928

2,042

Percentage who are women

％

8.4

9.0

9.4

10.4

10.5

12.0

11.7

11.8

11.5

11.6

Percentage outside Japan

％

1.4

1.9

2.8

3.2

4.0

20.2

18.4

17.5

16.7

21.2

Environmental data

Unit

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Energy consumption*2

ThousandkWh

21,67424,097

23,816

22,66922,96323,29247,522

46,35445,54244,509t73,12475,322

71,30277,75583,93991,494

101,540

94,54095,034

90,162CO2 emissions*2*3

42.3

47.8

Employment data
(FY)

42.3 %

Capital Equity Ratio

160.3(billion yen)

2013

50.0
20

Sites in Japan
0

2013

2014

2015

2016

2017

2018

Unit

2009

2010

2011

0
(FY)

2013

2014

Japanese Standard ←

40

2012

2013

2015

2016

2017

2018

69sites

10 sites

R&D Expenses

0.45 billion yen

CapitalInvestment

5.71billion yen→ IFRS

2014

2015

2016

2017

2018

Revenuebillion yen

82.6

110.5

151.1

96.4

94.3

111.4

119.4

106.8

115.8

128.7

Operating Income

billion yen

7.9

10.7

11.2

7.5

9.6

10.5

6.1

2.0

13.8

14.5

Profit ratio

%

9.6

9.7

7.4

7.8

10.2

9.4

5.1

1.9

11.9

11.3

Income ratio*1

billion yen

4.4

6.1

5.9

4.5

6.0

5.8

2.9

-1.2

9.4

9.0

EPS

JPY

135.90190.46183.20139.24183.50176.8987.48-37.24270.77228.14

ROE

%

15.4

19.1

16.2

11.2

13.6

11.9

5.8

-2.6

17.3

13.6

Total assets

billion yen

50.1

59.1

58.3

62.3

66.1

104.9

101.6

89.0

131.5

160.3

Capital Equity Ratio

%

59.6

58.0

66.6

67.3

70.1

48.2

47.8

49.8

49.0

42.3

CO R PORATE RE PORT 2019

(FY)

Sites outside Japan

Usage rate of Holidays
for Refreshment *4

88.2 ％(FY2018)*1. Since fiscal 2015, “profit for the current year attributable to the shareholders of the parent company”*2. The scope of data collection since fiscal 2015 covers all Group companies including overseas subsidiaries*3. The policy and standards for data tabulation are based on Japanʼs Act on the Rational Use of Energy and Act on Promotion of Global Warming Countermeasures.
Emission coefficients for each waste emitter were used. For sites outside Japan, the emission coefficients specified by each country were used.
*4. Data collection covered major Group companies in Japan (Asahi Holdings, Asahi Pretec, and Japan Waste)

AS AH I H O L D ING S

41

Asahi Holdings, Inc.

Environmental Consideration in Printing
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