CORPORATE REPORT 2018

Corporate Group Overview

Asahi Holdings, Inc.
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):
1,928 (As of March 31, 2018)
URL:
http://www.asahiholdings.com/english/

Totally Committed to Protecting the Natural Environment
and Preserving Resources

Asahi Pretec Corp.
Precious metals / rare metals recycling andindustrial waste treatment
Representative Director: Hiroyuki Nakanishi
Headquarters:
Nissay Sannomiya Building 16F 4-4-17 Kano-cho,
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:
http://www.asahipretec.com/ (Japanese Only)

Domestic Business Locations
Research Laboratory:
Plants:Corporate Group Overview ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ 01

ESG Initiatives

Business oﬃces:

G GOVERNANCE

About Asahi Holdings

Corporate Governance ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ 26

Message from the CEO ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ 02

Risk Management ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ 28

The Asahi Way ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ 03

Oﬃcer Proﬁles ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ 29

The Future of the Asahi Holdings GroupE ENVIRONMENT(8th Medium-Term Business Plan) ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ 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 G&S SDN. BHD. (Malaysia)
Asahi Pretec Korea Co., Ltd.

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:
http://www.japanwaste.co.jp/ (Japanese Only)

Subsidiaries
JW Chemitech Co., Ltd.
Taiyo Chemical Co., Ltd.
Fuji Rozai Co., Ltd.
Ecomax Co., Ltd.

JW Glass Recycling Co., Ltd.
Nihon Chemitech Logitem Co., Ltd.
Iyotec Co., Ltd.

Shanghai Asahi Pretec Co., Ltd.
Asahi Pretec Taiwan Co., Ltd.(Taiwan)

Asahi Life & Health Corporation.

Three Business Segments of the

S SOCIETY

About the Group’s Logo

Asahi Holdings Group

Health Management and Safe Workplaces ∙∙∙∙∙ 34

Three Business Segments ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ 10

Work-Life Balance ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ 34

Introduction to Segments ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ 12

Diversity and Inclusion ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ 35

Precious Metals Business ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ 12

Human Resource Development ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ 35

Environmental Preservation Business ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ 18

Communication with Stakeholders ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ 36

The Group’s logo uses a spiral shape
as a motif to signify the corporate
stance in seeking “environmental
preservation through recycling,” a mainfeature of its business; the logo also
indicates continuity and growth. The
arrows pointing upward and downward
symbolize Asahi Holdings as an advanced,
cutting-edge company. The three colorsof blue, red and green each respectively
signifies “clean water and sky,” “theenergy of people carrying out activities”
and “beautiful nature and forests.”

Group Company Structure ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ 39

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

Business Lines:

Oversesas Bases

Working to Address Climate Change ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ 33

Life & Health Business ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ 22

Tokyo Head Oﬃce

Japan Waste Corporation

Business Lines:

Contents

Kobe Head Oﬃce

Business Lines:

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:
http://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 Canada Ltd.

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

Asahi Americas Holdings, Inc.

INTER CRNTRAL, INC.
Fujiiryoki, Inc.(US)Financial Highlights /Non-Financial Highlights ∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙∙ 40
CORPORATE RE POR T 20 18

A SA HI HO LD ING S

01

The Asahi Way“Totally Committed to Protecting the Natural Environment and Preserving Resources”
In fiscal 2017, the final year of the 7th Medium-Term Business Plan, we upgraded ouroperating income forecast twice and achieved a record-breaking result of 13.8 billion yen. Allcompanies and business segments of the Asahi Holdings Group recorded a profit. As a result,
return on equity (ROE ), the Group’s indicator of management efficiency, was 17.3%. Overthe three-year period, we have taken steps to solidify our foundation for global management.
These steps include adopting the International Financial Reporting Standards ( IFRS) ,switching to a “Company with an Audit and Supervisory Committee” system, and otherwise
reinforcing our corporate governance structure.
The company slogan under the 8th Medium-Term Business Plan is “Building a global
company that pursues originality and growth.” The plan took effect in April 2018 and spans
three years, but was drafted taking into perspective the five-year period through 2022, which
will be our 70th year in business. The aim is to pursue the challenge of developing newtechnologies and systems utilizing IT, while creating new business models, by fiscal 2020.
Asahi Life & Health Corporation was established in April of this year to be the core company
in our Life & Health business. By fiscal 2022, we want to see this business, coupled with ourcore Precious Metals business, position our company as a global corporate brand in these twosegments, and we will likewise pursue raising our brand profile in Japan in the Environmental
Preservation Business. This is our vision as we embark on the three-year plan.
Our company’s business portfolio has changed considerably compared with a decade ago. In
response to changes in the business environment, we withdrew from more than 10 businesses,
while businesses that were newly launched or brought under the Group’s umbrella now
number over 20. Over the past two decades we have acquired more than 20 companies, and at
least 95% of them have achieved better results after acquisition. We believe this demonstrates
our ability to adapt to change and our management capabilities for business regeneration.
The Group’s management philosophy and employee code of conduct are summarized in
the Asahi Way. Our Credo shows that our business intrinsically contributes to the Sustainable
Development Goals (SDGs) adopted by the United Nations in 2015, and it articulates ourintention to help build a more sustainable world. Our Corporate Values
signal our emphasis on intangible assets and cooperation with various
stakeholders. Maintaining highly motivated employees and brand strengththat represents trust in the company are essential for stable growth overthe long term.
With a spirit driven to innovate and embrace challenge, we willcontinue to grow while overcoming changes in the business environment.
I look forward to your continued support of the Asahi Holdings Group.

Mitsuharu Terayama
Chairman and CEO
Asahi Holdings, Inc.

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

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

Our Corporate Values

Our Employee Principles

Message from the CEO / The Asahi Way▸ Message from the CEO

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

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

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

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

Strong sense of mission andhigh ethical standards#1 We comply with all laws and regulations#2 We respect the dictates of social norms
and our own conscience#3 We treat everyone equally, regardless ofage, gender, nationality, race, religion, orother characteristics#4 We refrain from conducting any politicalor religious activities in the workplace#5 We treat customers with sincerity#6 We practice fair competition and optimal
decision-making when selecting business
partners#7 We respect the confidential information
obtained through our work and avoid
disclosing it externally#8 We refrain from providing or receiving
meals or gifts in pursuit of personal
benefitWe 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.

May 2018
In light of the Group’s business expansion, the Asahi Way was recently updated.

02

CORPORATE RE POR T 20 18

A SA HI HO LD ING S

03

(8th Medium-Term Business Plan)
Basic Policy
Consolidated Targets
FY2018FY2019FY2020

Revenue

120.0

130.0

140.0

Operating Income

14.0

15.0

16.0

Operating Income
Ratio

11.7%

11.5%

11.4%

ROE

14.1%

13.8%

13.5%

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

Be a leader
in the environmental
business in JapanBe the world’s number one
brand in the healthrelated business

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

Environmental Preservation

Life & HealthCompany Slogan
Augmenting intangible capital

Building a global company that pursues originality and growthA c ti v e l y i n v e s ti n g i n h u m an c ap i tal

Launch of the 8th Medium - Term Business Plan
Under the 8th Medium-term Business Plan, the Asahi Holdings Group will keep its sights firmly set on its vision for each businesssegment in five years’ time, working to achieve medium to long-term growth while maintaining profitability. The following three key
phrases represent the particular emphases of the new Medium-Term Business Plan.
The first key phrase is “augmenting intangible capital.” Investment in human capital is especially important. The Group hasgrown by recruiting and developing diverse human resources from various fields. While utilizing our flexible platform, wemust continually respond to changes in the ever-changing business environment and develop more human resources who canoperate at a global level. Strengthening these kinds of systems will support sustained growth. Since the most important part ofthe management foundation is the ability to build a talented workforce, the Group will systematically strengthen recruitment,
training, and job rotation.
We will also focus on creating intellectual property within the organization. Specifically, we will establish a new technology
research team within the Group and ensure that it continues to pursue strong, proprietary Asahi technologies, as we have been
doing since the establishment of the Technical Research Center in 1998.
The second key phrase is “business automation.” The precious metal refining and industrial waste disposal businesses must
constantly adapt to different material types and quantities, making it challenging for many such sites to be automated. Nevertheless, byinvestigating and researching the latest information technology, we aim to create automated operations that will still be cutting edge in
10 years’ time, making for business innovation in the long run. In addition to production sites, we will also automate functions suchas sales, transportation and administration. In the preliminary stage of automation, we will start from scratch and review operations
to eliminate any waste and do away with any deviations from the basic operational objectives. We expect productivity to increase
dramatically as a result.
These efforts will be significant in light of social issues in Japan, such as population aging and decline, as well as for improving
employee work-life balance.
The third key phrase is “social impact orientation.” Globally, an increasing number of companies are working to solve
social issues through their business activities. The momentum was created when the United Nations adopted the Sustainable
Development Goals (SDGs), a set of goals that the international community has set to foster sustainable development. The Asahi
Holdings Group is committed to working even harder than ever to help solve social issues and intends to pursue its corporate
activities with reference to the SDG framework.

A c ti v e l y i n v e s ti n g i n n e w te c h n o l o g y

The Future of the Asahi Holdings Group (8th Medium - Term Business Plan)▸ The Future of the Asahi Holdings Group

2. Improving productivity and work styles
utilizing information processing technology

AI

Improvingproductivity

Robotics
Thoroughreview ofoperations

Improvingwork-life balance

IoT

RPA

FintechWe believe that our efforts to achieve the quantitative and qualitative targets of the 8th Medium-Term Business Plan will drive
the Group to long-term success and improve corporate value. This is why we are so determined to make a concerted, maximum
effort on the plan throughout the Group. We look forward to your continued support of the Asahi Holdings Group.

Tomoya Higashiura
President Asahi Holdings, Inc.
May 2018

04

CORPORATE RE POR T 20 18

3. Sharing the Asahi Way with all employees group-wide
A SA HI HO LD ING S

05

1964
1974
1978
1997
1998

Act 1

Foundation and Initial Decades:

Act 2

Public Company:
1999 to 2011Act 3

New Development:2012 to present

2003

Shanghai Asahi Pretec Co., Ltd. established
Automobile catalyst business launched
Asahi Pretec Korea Co., Ltd. establishedE-scrap business launched
Precision cleaning business launched2013

Asahi Pretec Taiwan Co., Ltd. Establied.

2015

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

2000
2002
2009

Precious Metals

1982
1984
1986

1986
1994

Environmental Preservation

1998

1972

2017

2006
2011

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)
Registered as an environmental measurement
certification officeEnvironmental preservation
business other than photographic
effluents entered

1975
1978
1990

2015

2016

Silver recycling business started using photographic
fixing solutions
Compact electrolytic silver collection equipment“PLATA” developed
Precious metal recycling businesslaunched in the dental 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

1975

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) adopted
Capital increased through new share issue

1999

1952 to 1998
1952

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 HigashiNada-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

2009
2010

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. acquiredLife & Health

1952

Group Strengths Built Across the Years

2017

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

2012
2014

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.) established2018

History of the Asahi Holdings Group▸ History of the Asahi Holdings Group

Relationships•Good
with Stakeholders•Trusted Asahi Brand•Globally Expanding Network•Ability to Adapt to Change
Capabilities for•Management
Business Regeneration

Regional sites
consolidated withthose of Group(10 locations)-Leading•Industry
Unique Technologies•Highly Motivated Employees•Sound Financial Structure

Business Performance(billion yen)(billion yen)

16

160
Operating Income

140

14

120

12

100

10

80

8

60

6

40

4

20

2
0

0
1964

06

Operating Income

Revenue

Revenue1980

CORPORATE RE POR T 20 18

1981

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

A SA HI HO LD ING S

07

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

Precious
MetalsEnvironmental
Preservation“ Totally Committed to Protecting
the Natural Environment and Preserving Resources”

Life & HealthBusiness
GrowthAddressing
Social Issues

Value Creation by the Asahi Holdings Group▸ Value Creation by the Asahi Holdings Group

Eight Factors That Support Value Creation
Group Strengths Built Across the 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 byflexible thinking and bold action, while keeping a close
eye on changes in the business environment. By promptly
withdrawing from business areas that are reaching the endof their life cycles and establishing original business models
in new fields, we consistently deliver growth.

Industry-Leading Unique Technologies
We are proud of the original technologies we havedeveloped. These include technologies for recovering
precious metals with high efficiency that leverage ouradvanced analytical capabilities, technologies for properly
processing various industrial waste materials, and technologies for product development based on accurate
ascertainment of customer needs. Through constantresearch and development, the Group continues to enhance
its unique technologies in each of its business fields.

08

Management Capabilities for
Business Regeneration
Over the past two decades, the Group has acquired
more than 20 companies and improved their
management. Almost all of these companies areenjoying stronger performance than before they joined
the Group. We improve business performance ataffiliated companies in Japan and abroad by applying
our management capabilities flexibly to match thebusiness environment.

Since our beginnings in 1952, we have been engaged in resource recycling
and environmental preservation to live up to our core mission:“Totally committed to protecting the natural environment
and preserving resources.”
The businesses we are passionate about have always been linked to supporting thesustainable development of society.
We will continue to help address social issues through our business activities.

Trusted Asahi Brand
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 toprovide products and services of high quality 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, whoshare the group-wide values of the Asahi Way, deeply value
trust and connections, and are motivated by a passion for
innovation and embracing challenges. In addition to recruiting
diverse human resources, the Group prioritizes employee
health and safety, invests in supportive working environments,
and continues to develop highly motivated employees.

Since establishing Asahi G&S in Malaysia in 1994, theGroup has kept expanding into Asia by setting up sites for
precious metal recycling in China, South Korea, and Taiwan.
In 2015, we acquired refining businesses in North America inorder to enter the business of refining mined ores. This movehas expanded our clientele, not just in North America, but inthe rest of the world as well.

Good Relationships with Stakeholders

Sound Financial Structure

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

The Group has grown while ensuring financial soundness
so that it 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 madea public offering of new shares in 2017. By increasing
capital, we are building a financial structure to support
future growth.

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For the Asahi Holdings Group,
value creation involves helping to solve social issues while pursuing business growth.

Un SDGs and Asahi’s Contribution
Adopted in 2015 at the United Nations, the Sustainable Development Goals (SDGs) seek to addressa wide range of issues related to the economy, society and the environment.
All members of the international community, including companies, are expected to participate.
Among the 17 SDGs, the Asahi Holdings Group is striving to contribute to the achievement of the following goals.

With the united efforts of all Group employees,
we will continue to address social issues and work to achieve these SDGs in everything we do.

A SA HI HO LD ING S

09

We conserve limited natural resources,
Value creation platform

Precious Metals
Business· Outstanding technologies for
precious metal reﬁning

Precious metal
Recycled
raw materials
Reﬁningraw materials

Waste reagents,
waste oil, sludge,
glass, scrap
wood, etc.

Jewelry makers· Global technology collaboration

Automobile
dismantling industry· Ability to oﬀer solutions basedon a group-wide network

P. 18~21· Product development capabilities to meet customer needs· Design technology that combines functionality and safety· Frontline capabilities to create comfortable living spaces

Life & HealthBusiness

10

CORPORATE RE POR T 20 18

P. 22~25

manufacturers· Production systems
with high eﬃciency· Advanced and extensive
waste treatment and disposal
technologies

Products / Services

Contributing to the SDGs

Electronic components
Dental clinics / dental· Licenses covering all of Japan

Environmental
Preservation
Business

Customers / partners· Technical development to create
innovative original technologies

P. 12~17

Industrial waste

preserve the global environment, and support human health.

laboratories
Catalyst manufacturers

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 oﬃce
Educational institutions
Medical institutions
Various manufacturers
Research centers

Individuals
Health related facilities
Oﬃce buildings
Construction industry
Design ﬁrms

Properprocessing and recyclingof industrial waste
By properly processing andrecycling a wide variety
of waste materials, we arehelping to realize a recyclingoriented society.

Various health devices,
air conditioning systems,
and ﬁre protection equipment
By providing devices andequipment to help maintaincomfortable lifestyles andhealth, we are meeting theneeds of society, including
greater health consciousness.

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11

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

E-scrap

Business Details

Strengths
Catalyst

Business
FieldsPlating
Treatment

Dentistry

Jewelry

12

Recycling precious metals from discarded
electronic substrate and processing scrap

Recycling precious metals and rare metals
found in vehicle catalytic converters

Gold / Silver / Palladium

Palladium / Platinum / Rhodium

E - scrap

Catalyst

The electronics and semiconductor
industries use precious and rare metals
in the manufacturing processes for theelectronic components and printed circuitboards used in personal computers andmobile phones. We use our world-classtechnologies to collect and recycle theprecious and rare metals remaining after
various processes.

The precious metals such as platinum,
palladium and rhodium used as catalysts
for automobile exhaust gas are regulated inaccordance with environmental regulations
concerning exhaust fumes such as Japan’s
Air Pollution Control Act, NOx/PM Act
and other laws. We are making efforts torecycle precious metals from automotive
catalysts, chemical catalysts, etc., utilizing
our unique technology.

Performing precious metals removal and precision
cleaning of semiconductor-equipped parts

Building a resource recycling cycle in thedental industry

Gold / Silver / Palladium / Platinum

Gold / Silver / Palladium / Platinum

Precision Cleaning

Dentistry

We are expanding our business inprecious metals recycling and precision
cleaning by temporarily storing ourcustomers’ vacuum deposition and sputter
deposition equipment, which are used in
the process of electronic components andsemiconductors.

The precious metals products used atdental clinics and dental laboratories
are mainly gold, silver, and palladiumalloys. The precious metals content varies
by type. We use our own system for
integrated management of collection, assay
and reporting to build a resource recycling
cycle in the dental industry.

01

In Japan and other parts of Asia, we collect scrap containing precious metals from various industries and recycle
them in facilities with the necessary processing technologies. In North America, we obtain material from mining
companies worldwide, and then refine it into precious metals using the best process for each grade. With the wide
range of technical capabilities, the Group can handle all kinds of precious metals.

02

We have created an extensive sales network covering all of Japan and are collecting scrap material containing precious
metals. In addition, based on expertise accumulated over many years, employees familiar with particular industrial fields
carry out proposal-based service marketing on a daily basis by accurately ascertaining the needs of customers.

03

The Group’s precious metal ingot products are certified as Good Delivery bars by the London Bullion Market
Association (LBMA) and the London Platinum and Palladium Market (LPPM). They are also recognized as brandproducts for delivery supply by the Tokyo Commodity Exchange, and are widely distributed both in Japan and overseas.

Be the number one precious metals reﬁning company in the world
The 8th Medium-Term Business Plan(billion yen)

FY2018FY2019FY2020

Revenue

78.0

85.0

92.0

Operating Income

12.0

12.5

13.0

Operating Income
Ratio

15.4%

14.7%

14.1%

Revenue

100.0

80.0

Gold / Silver / PalladiumGold / Silver / Palladium / Platinum

10.0

Jewelry
Based on our advanced assay and precious
metal refining technologies, we recycle jewelry
products from traders in the distribution
process, as well as various materials from the
manufacturing processes. We are subcontracted
by jewelry manufacturing industry organizations
for “precious metal scrap collection and assay.”
Our many years of proven performance haveearned profound trust with all of our customers.

Operating Income

85.0
78.0

70.0

14.0

In the plating treatment field, we areengaged in the business of recycling
mainly the precious metals included inplating solutions and so on. In addition
to the recovery of precious metals suchas gold, silver, and palladium, we also
provide environment-friendly recovery
technologies for rare metals recycling andwater treatment / reuse.

▬

92.0

90.0

Receiving work from jewelry manufacturingorganizations

Plating Treatment▬(billion yen)

Consistently maintaining a high recovery ratewith our unique technology

CORPORATE RE POR T 20 18

S e g m e n t s

Pr ecious Metals Bus in e s s

The Group collects and recycles scrap containing precious metals
from various industries. By recovering and providing gold, silver,
palladium, platinum and other precious metals indispensable
to modern manufacturing, we are contributing to the effective
utilization of resources and the development of industry.

Precision
Cleaningt oIntroduction to Segments

Precious Metals Business

12.0

12.0

2018

12.5

2019

13.0

2020

Contributing
to the SDGs

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

RE SE ARCH & DEVELOPME NT(manufacturers)
Plating solutions

Assay report(precious metal content analysis)

Catalysts(dismantlers / brokers)
Unused and waste catalysts

ReturnConsignment processing transactions

Dentistry(dental clinics / dental laboratories)
Removed crowns and processing waste

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

Precious metal market
Trading companies
Manufacturers, etc.

Sale

Finishing

Melting and molding

Separation and extraction

Assay

Pre-treatment

Inspection

Plating treatment

Purchasing transactions

Customers(manufacturers)
Electronics / semiconductor manufacturing
equipment parts, etc.

Collection

E-scrap

Technical Research Center
pursues original R&D
We conduct proprietary research and development and analytical technology
improvement in the fields of “recycling of precious metals and rare metals”
and “detoxification and recycling of industrial wastes.” We established theTechnical Research Center in Kobe High-Tech Park to serve as our R&D
hub. We are looking to take even greater strides forward as a company that
contributes to society by improving quality and technical innovation.

Pr ecious Metals Bus in e s s

We 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 and admixtures in the business fields where we collect. Furthermore, we accurately meetcustomer needs by fully utilizing optimal methods and efficient refining facilities depending on the type ofprecious or rare metal.

Precision Cleaning

S e g m e n t s

R&D System

Collecting and Recycling Precious Metals(Manufacturers, dismantlers, and brokers)
Discarded electronic substrates
and processing scrap

t oIntroduction to Segments

Precious Metals Business

R&D
We anticipate the needs of our customers and strive
to create new products and business by applying
our large body of elemental technologies anddeveloping new technologies.

1 Technology for separating and reﬁning of precious andrare metals
2 Environmental preservation and resource recycling

technology
3 Precious metal molding and reﬁning technology

Assay
The Asahi Holdings Group’s 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 theGroup’s customers.

1 Development of new assay technology
2 Technical guidance for assay groups at each plant and sales office
3 Purity assay of precious metal products and dental alloys
4 Environmental analysis of issues such as factory

wastewater discharges
5 Environmental measurement certiﬁcation

Engineering
Using cutting-edge technology, experts from eachbusiness area design, produce, construct andprovide maintenance of facilities at subsidiaries
in and outside Japan, helping to support safe andstable operation of the facilities.

1 Design, production, construction and maintenance of facilities

and buildings
2 Maintenance control of existing facilities
3 Installation and maintenance of precious metals collection

facilities for our customers
4 Supporting installation of robotics and IoT for equipment

Product quality
Main Development Themes

14

Reliable quality, highly-regarded in Japan and around the world[Development of Refining Technology]

Asahi Pretec is a full-fledged member of the Japan Gold Metal
Association, and its gold, silver, platinum and palladium
metals are recognized as brand products for the delivery
supply of the Tokyo Commodity Exchange. Additionally,
those metals are highly regarded in the global market for theirreliable quality, with gold and silver being recognized by the
London Bullion Market Association (LBMA), and platinum
and palladium being certified by the London Platinum andPalladium Market (LPPM) as good delivery bars. Gold andsilver metals of Asahi Refining are also certified by LBMA as
good delivery bars.

In addition to wet precious metal refining technology, which is particularly effective for recycled material processing, theGroup is developing dry precious metal refining technology effective for the primary raw material processing it is performingin 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.

CORPORATE RE POR T 20 18[Development of Release Technology]
In order to collect precious metals adhered to the surfaces of parts and jigs, etc., used in the manufacture of electronic
components and semiconductors, the Group is developing technology to chemically and physically exfoliate precious metals
safely and reliably without damaging the parts and jigs.

[Development of 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,
especially at Asahi Refining in North America.
A SA HI HO LD ING S

15

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

S e g m e n t s

North American Refining Business

Since 1994, the Asahi Holdings Group has been expanding its Asian precious metal sites. In Asia, we haveestablished and expanded our precious metal recycling business targeting the electronics industry and otherindustrial fields, using technology cultivated in Japan and methods rooted in local markets.

Asahi Refining operates a gold and silver ore refining business in the United States and Canada, andboasts a top-level share of the global refining market.

(Mining companies, etc.)

Asahi Refining

Clients

Assay, refining, molding
and finishing of goldand silver bars

(Manufacturers using
precious metals, etc.)

Product returnAsahi Reﬁning USA

Asahi Pretec Korea Co., Ltd.
Shanghai Asahi Pretec Co., Ltd.

Asahi Pretec Corp.

Asahi Pretec Taiwan Co., Ltd.

Product shipment

Clients
Raw material receiving

In March 2015, North American refining sites (Asahi Refining) joined our group, which has resulted in the
inclusion of North America in our global expansion. We are developing our business in North America byleveraging the strengths of each site.

Pr ecious Metals Bus in e s s

Global Expansion

Introduction to Segments

Precious Metals BusinessAsahi Reﬁning Canada

Expansion of mutual technology exchange

ASAHI G&S

The Group is actively expanding technology transfers among its sites, in order to fully utilize well-honed technology
from Japan and technology developed in the North American gold and silver refining business. By maximizing technicalintegration and synergy throughout the Group, we aim to fully meet customer needs in terms of quality, cost and delivery.

Conﬂict Mineral Measures

History of Global Expansion

1994

ASAHI G&S

2003

Shanghai Asahi Pretec

2006
2013
2015
16

CORPORATE RE POR T 20 18

The term “conflict minerals” refers to tin, gold, tantalum, and tungsten originating from conflict zones inten countries in Africa, including the Republic of Congo. The purchase of such metals can provide funding
for inhumane activities such as armed conflict, human trafficking, and terrorist activities, as well as criminal
activities such as money laundering. To ensure that customers worldwide can purchase gold products fromthe Group with peace of mind, we have established supply chain management systems. The systems are basedon guidance from the Organisation for Economic Co-operation and Development (OECD) and the London
Bullion Market Association (LBMA) concerning the prevention of conflict mineral purchase or use. Asahi
Pretec and Asahi Refining have been audited and conflict-mineral certified by global third-party organizations.

Asahi Pretec Korea

Basic Policy on the Use of Conﬂict Minerals

Asahi Pretec Taiwan

http://www.asahipretec.com/conﬂictmetal/index.html

Asahi Refining
A SA HI HO LD ING S

17

Business Fields

Business Details

Waste reagents

S e g m e n t sStrengths

Government
andpublic oﬃces

Educational
institutions

Hospitals,
clinics, etc.

Research
institutions

Glass andsash
manufacturers

Chemicalmanufacturers

Research
institutions /laboratories

Plant
manufacturers

Other
manufacturers

Waste oil and sludge

t o

01

With the cooperation of its affiliates, the Asahi Holdings Group is able to process many different types ofindustrial waste. In particular, we offer optimal solutions for specially controlled industrial waste, which requires
expert handling.

02

The Group’s consultation services have been well received by customers due to the advanced expertise andinformation on industrial waste treatment and disposal, which helps them to mitigate the risks associated withindustrial waste disposal.

03

With an extensive nationwide network, the Group offers proper, high-quality waste treatment and disposal
across Japan. It has acquired the licenses required for collecting and transporting regular and specially controlledindustrial waste in all 47 of Japan’s prefectures and all 20 of its government ordinance cities.

E n vir on m en tal Pr es er va ti on Bu s i n e s s

Asahi Pretec, Japan Waste, and their affiliated groupcompanies meet the diverse needs of their customers byleveraging the unique technologies they have developed
over the decades in their respective fields to detoxify andproperly dispose of various waste materials. As experts in
waste disposal, these companies are helping to solve global
environmental problems by playing a key role in building
sustainable recycling-oriented societies.

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

Introduction to Segments

Environmental Preservation Business

Glass

Be a leader in the environmental business in JapanThe 8th Medium-Term Business Plan(billion yen)

The Group collects reagents and other chemicals
for disposal from educational and research
institutions such as universities. Reagents arepacked for collection one by one, confirming thatthey are stored in proper collection containers.
Chemical content analysis is performed for any
unidentified reagents to determine the appropriate
processing method before disposal. Even small
quantities of miscellaneous wastes that are
difficult to handle are also processed properly,
always in compliance with laws and regulations.

Based on analysis results, various wasteoils and liquids are mixed in an optimalcomposition, adjusting for their properties,
and are recycled as alternative fuels.
Meanwhile, sludge and burnt residues
are recycled as raw materials for cement
after adjusting content and moisture andthen kneading them. Thorough analysis isperformed at the time of acceptance andshipping to ensure and maintain the qualityof all recycled materials.

Plate glass is collected from glass andsash manufacturers, and glass bottles frommunicipalities. The collected plate glass
scrap and glass bottles are screened andcrushed at our own facility, before being
recycled and sold as high-quality glass
cullet. By recycling glass, the Group ispreventing depletion of mineral resources
and reducing environmental impact.

FY2018FY2019FY2020

Revenue

16.0

16.5

18.0

Operating Income

2.9

3.0

3.3

Operating Income
Ratio

18.1%

18.2%

18.3%

▬

Revenue

Wood waste

Fire-proof bricks(billion yen)

Organic liquid waste and sludge▬

Operating Income

25.0
20.0

18.0

16.5

16.0

15.0
10.0

3.0

2.9

3.0

3.3

2.0
1.0

Scrap wood obtained from building
demolition and other sites is shredded andrecycled as wood chips for fueling biomass
power generation plants and making
particleboard.

18

CORPORATE RE POR T 20 18

Waste fire-proof bricks generated by
the demolishing of glass manufacturing
furnaces or periodic repair work on refuse
incinerators are carefully sorted, and thenreused as fire-proof bricks or recycled aspaving materials.

We neutralize and dewater organic liquid
waste produced by food manufacturing
facilities and restaurant chains. The
filtered liquid is purified, using microbial
treatment, to a level that meets government
standards before being discharged into the
public sewer system. Sludge is composted
in a fermentation and aging facility and isthen recycled into organic fertilizer, which
can be effectively utilized by farmers.

0
2018

2019

2020

Contributing
to the SDGs

A SA HI HO LD ING S

19

Collection andtransportation

Intermediate
treatment▬▬Neutralization▬Condensation and precipitation▬Concentration▬Dewatering▬Cyanide decomposition▬Oil-water separating▬Incineration▬Neutralization, mixing▬Drying▬Sorting, compressing, crushing▬Kneading▬Concreting▬Specially controlledindustrial waste
17 articles of hazardous waste,such as waste acids, waste
alkalis, waste oil and sludge
which contain specified toxic
substances, and infectious waste

Asahi Pretec Kobe Plant••

Processing of liquid waste and sludge
Oil-water separation of waste water

Iyotecservice, staﬀ agency and•Staﬀ
contractor for various manufacturers

Japan Waste Saitama Oﬃce
JW Chemitech Kawaguchi Plant

Asahi Pretec
Kitakyushu Oﬃce

and dewatering process of•Neutralization
inorganic liquid wasteof various waste•Incineration
recycling•Sludge•Waste plastic crushing

JW Chemitech Ibaraki Plant
and composting of organic•Fermentation
sludge and animal/plant wastes

JW Glass Recyclingof glass plate•Recycling
and bottles

Japan Waste
Headquarters

Fuji Rozai
maintenance•Regularand demolition

Taiyo Chemical
Ijuin Plant / Taniyama Rinkai Plant

work for glass
manufacturing kilns andwaste incineratorsof various waste•Incineration•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
Japan Waste and group companies

JW Chemitech Totsuka Plant
and dewatering process•Neutralizationof organic liquid waste

Japan Waste YokohamaOﬃce / Ogimachi Center•Sorting, recycling of mixed waste
Japan Waste YokohamaOﬃce / Plant•Recycling of sludge, waste oil and wood chip

Licenses acquired by the Group (As of March 31, 2018)
Industrial waste collection transportation license

All prefectures and government ordinance cities

Industrial waste disposal license

13 prefectures and 9 government ordinance cities

Specially controlled industrial waste collection transportation license

All prefectures and government ordinance cities

Specially controlled industrial waste disposal license

11 prefectures and 8 government ordinance cities

Excellent industrial waste management company certiﬁcation*

Asahi Pretec : All prefectures and government ordinance cities
Japan Waste : 28 prefectures and 3 government ordinance cities*In April 2011, Japanese laws concerning industrial waste management were revised, creating a new recognition system for excellent industrial waste management companies. Prefectures andgovernment ordinance cities select companies which meet their strict standards in areas such as operational implementation capacity and experience. All Group companies are pursuing thiscertification, aiming to ensure that customers can feel totally confident about doing business with the Group.

20

CORPORATE RE POR T 20 18

Recycling

Processes of Industrial Waste Disposal and Recycling

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

Group Network

S e g m e n t s

E n vir on m en tal Pr es er va ti on Bu s i n e s s

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 oLandﬁll

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 BusinessSuperior Technologies Enable Various Types of Treatment
Treatment of speciﬁed hazardous waste acids, waste
alkalis and waste reagents
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 andstorage. We even analyze and provide appropriate treatment of
unidentifiable waste reagent that comes to us unlabeled.
Safe and hygienic incineration which can treat speciallycontrolled industrial wastes
Labor-saving operations are accomplished by centrally
controlling each piece of automated equipment. In addition,
medical wastes are treated in a safe and hygienic mannerusing a specialized automatic provision line to cast theminto the incinerator. We can treat various kinds of industrial
wastes, from solid to fluid, efficiently and precisely.

New plant
completed

High-speed microbial treatment of waste acids / alkalis
and sludge
After removing hazardous substances from waste liquids
from plants and offices, even if liquids contain nitrogen andphosphorus, we use original microbial treatment and othertechnologies to detoxify and purify them to levels below
environmental management standards governing water
discharge, before discharge. Energy consumption and CO2
emissions 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. Some sludge which cannot berecycled is sent for landfill disposal.
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 be eluted. Our original facilities andtechnologies prevent hazardous substances from eluting into
the natural environment even under strong acidic conditions.

The Taniyama Rinkai Plant of Taiyo Chemical
was completed in April 2018. The fully automated,environmentally friendly new incinerator raised
the plant’s presence in southern Kyushu.
A SA HI HO LD ING S

21

Business Details

MassagechairsFire prevention
systems

Business
FieldsEnergy-saving air
conditioning system

Other healthcare
equipment

FUJI MEDICAL INSTRUMENTS MFG. CO., LTD.

t o

S e g m e n t sStrengths

01
02
03

The Asahi Holding Group’s Life & Health business is supported by the Group’s product development capability
and ability to ascertain the varied detailed needs of customers and deliver the required quality. R&D is done ina manner that leverages the understanding and close cooperation of professionals across departments including
R&D, manufacturing, and sales.
While promoting people’s health and supporting higher levels of comfort, the Group delivers environmentallyfriendly, high value-added products and services. In this effort, we make the most of our network of trusting
relationships with external research institutions and business partners.

L ife & Health Bus in es s

The Group provides devices and equipment that help people
maintain their health and live comfortably through thethree companies under the umbrella of Asahi Life & HealthCorporation. In this business, we aim to raise health-consciousness
and meet the needs of aging societies.

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

Introduction to Segments

Life & Health Business

The Group continuously offers customers safety and security, not just through our products but also throughafter-sales service and maintenance.

Be the world’s number one brand in the health-related business

Joined the Group in July 2014
Headquarters: Osaka City, Osaka
Factory:
Minamikawachi, Osaka
Sales oﬃces: Hokkaido, Iwate, Miyagi, Tochigi, Gunma,
Saitama, Tokyo, Kanagawa, Nagano,Shizuoka, Aichi, Kyoto, Osaka, Okayama,
Hiroshima, Kagawa, Ehime, Fukuoka,
Kumamoto, Kagoshima, Okinawa
Business line: Manufacturing and sales of massage
chairs and other healthcare products
such as hearing aids

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

The world’s ﬁrst commercialized massage chair,
introduced in 1954, was authorized as a MechanicalEngineering Heritage in August 2014.

INTER CENTRAL, INC.

FY2018FY2019FY2020

Revenue

26.0

28.5

30.0

Operating Income

1.7

2.1

2.4

Operating Income
Ratio

6.5%

7.4%

8.0%

▬

KOEIKOGYO CO., LTD.

Joined the Group in July 2012

Joined the Group in March 2014

Headquarters: Takizawa-City, Iwate
Factory:
Takizawa-City, Iwate
Research lab: Takizawa-City, Iwate
Sales oﬃces: Hokkaido, Iwate, Akita, Miyagi,
Tokyo, Aichi, Osaka, Fukuoka
Business line: Manufacturing and sale ofheating equipment, design andconstruction of radiant airconditioning systems

Headquarters: Yokohama-City, Kanagawa
Oﬃce:
Chiyoda-ku, Tokyo
Business line: Design and construction offacilities for ﬁre prevention,
air-conditioning and sanitation

Revenue(billion yen)▬

Operating Income

35.0
30.0

30.0

28.5

26.0

25.0
20.0

3.0
2.0

1.7

2.1

2.4

1.0
0
2018

2019

2020

Contributing
to the SDGs

22

CORPORATE RE POR T 20 18

A SA HI HO LD ING S

23

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

S e g m e n t s

Leveraging decades of technology development experience to meet social needs
New Products
FUJI MEDICAL INSTRUMENTS MFG.
Strengths
Top-level share of the massage chair market
Various distribution channels covering all of Japan••

Global website launched
FUJI MEDICAL INSTRUMENTS MFG. established a global website
in June 2017 as part of its overseas sales enhancement strategy. The
goal is to expand worldwide distribution of its Japan-made massage chairs
and electrolytic hydrogen water generators. The new website provides
product, support, corporate profile, and global network information in four
languages: English, Chinese (traditional script), Korean, and Japanese.

Global website of FUJI MEDICAL INSTRUMENTS MFG.

INTER CENTRALStrengths
Ability to develop products that facilitate comfortable lifestyles
One of the few manufacturers that makes radiant air conditioners
and heaters for special applications

F AM-40 Air Massager: The second product in the “mashua” series
As the second product in the “mashua” series for women, theF AM -40 Air Massager is designed to massage the entire lower
legs and feet. In pursuit of comfort, the recently launchedmassager has new features including a Pulse Mode thatrhythmically massages the legs by repeatedly alternating air
pressure in small increments, and a Foot Comfort Heater that
gently warms the feet.

Good Design Awards••

Radiant cooling and heating system
Thanks to a thermal radiation effect, the perceived temperature is lower
in cooling mode and higher in heating mode than the actual temperature
setting. A comfortable room temperature can thus be obtained with a smaller
heat source, making the system friendly on people and the environment.

Radiant cooling and heating systems

KOEIKOGYO

FUJI MEDICAL INSTRUMENTS MFG.
Two products from FUJI MEDICAL INSTRUMENTS MFG.
were recognized with Good Design Awards: the AS - 1100
Cyber-Relax Massage Chair and the SKS - 6900 Relax Solution
Massage Chair, both designed in pursuit of the ultimate insophistication and beauty. In addition to their luxurious appeal
and high performance, the chairs were chosen for their lookand feel, which blends in with other furnishings in a livingroom or bedroom.
INTER CENTRALTwo products from INTER CENTRAL were also recognizedwith Good Design Awards: the MHS -900A My Heat Seraphy,
designed under the concept of a heater with comfortable
simplicity that fits into any living space, for long-term
enjoyment; and the newly released MHS - 700 My Heat Seraphy.
They were selected for a subdued design simplicity that will
never go out of style, and for their safety features.

Strengths
Advanced design technology and extensive onsite experience
Comprehensive engineering expertise
Ability to rapidly propose the best plan based on given priorities•••

Main examples of ﬁre prevention projects

Establishment of Asahi Life & Health Corporation
Asahi Life & Health Corporation was founded on April 2, 2018 tointegrate the Life & Health businesses of the Asahi Holdings Group,and to contribute to society by promoting long and healthy lives. All
shares of FUJI MEDICAL INSTRUMENTS MFG. CO., LTD., INTER
CENTRAL, INC., and KOEIKOGYO CO., LTD. were transferredfrom Japan Waste Corporation to Asahi Life & Health Corporation.
Suginami Incineration Plant

24

CORPORATE RE POR T 20 18

L ife & Health Bus in es s

FUJI MEDICAL INSTRUMENTS’ new top-of-line product for theoverseas market: The JP-1100 Cyber-Relax Massage Chair
This made-in-Japan massage chair features a premium lookto match sophisticated interior design schemes and boasts
advanced high-performance massage technology for relaxing
the entire body.

Introduction to Segments

Life & Health Business

Keio University Hospital New Hospital Wing (Building 1)

Asahi Life & Health Corporation
FUJI MEDICAL INSTRUMENTS MFG. CO., LTD.

INTER CENTRAL, INC.

KOEIKOGYO CO., LTD.

Park Court Akasaka Hinokicho
The Tower

A SA HI HO LD ING S

25

ESG Initiatives

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

Outside Directors
Independence Criteria for Independent Directors have been
established, and taking into consideration their backgrounds
and relationship with the Group, independent outside
directors with capacity to perform their duties independently
from the management of the Company have been appointed.
They attend Board of Directors meetings and fulfill their roles
and responsibilities as directors. Whenever possible, they also
attend the executive and management committee meetingsof group companies. As part of their wide-ranging activities,
the outside directors gather information and express theiropinions from an independent viewpoint.

General Shareholder’s Meeting
Appoint/
Dismiss

Appoint/
Dismiss

Board of Directors
9 Directors

Audit/Supervise(including 3 Outside Directors)

Appoint/
Dismiss

Audit and Supervisory
Committee 4 Directors(including 3 Outside Directors)

Representative
Director

The Nominating/Compensation Committee
3 Directors on Each

Collaborate

Collaborate(including 2 Outside Directors)
Audit report

AssistGroup Management
Strategy Meeting

Direct/ReportAudit Department

Internal Control
Promotion Meeting
Safety Management
Meeting

Internal Audit

Departments and Group Companies

26

CORPORATE RE POR T 20 18

Audit andSupervisory
Committee
Secretariat

Accounting Auditors

Appoint/
Dismiss/
Supervise
Inquire/
Reply

Board of Directors
The Board of Directors of Asahi Holdings, Inc. is comprisedof executive directors who are knowledgeable concerning
their respective business, technical or administrative
divisions, as well as outside directors with various typesof expertise essential to corporate management. To havean adequate number of directors for active, substantial andeffective discussions at meetings, the Board of Directors
consists of nine directors, including three independent outside
directors. All directors share their opinions actively andfreely on important subjects such as the Group’s management
strategies and business plans.

Evaluating the Effectiveness of the Board of Directors
As of the year ending March 31, 2016, Asahi Holdings has
begun evaluating the effectiveness of its Board of Directors
to ensure that the entire board is functioning properly. A
summary of the evaluation results is posted on our website.

Group Management Strategy Meeting
Important matters delegated to the executive directors aredeliberated and decided by the Group Management Strategy
Meeting. Other matters related to business execution aredeliberated and decided by the Group’s key company management
meeting and the business segment management meeting.

G O VE RNANCE

Organization Design

Corporate Governance

Adherence to Japan’s Corporate Governance CodeThe Asahi Holdings Group adheres to all the principles ofJapan’s Corporate Governance Code formulated by the Tokyo
Stock Exchange. The 73-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 to continuously enhance corporate
governance. These are also posted on our website.
http://www.asahiholdings.com/ir/library/governance/
Maintaining an Internal Control System
Aiming to reinforce internal controls, we have establishedan Audit and Supervisory Committee within the Board of
Directors. It includes three independent outside directors, andit 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 andmakes recommendations to each department, and promptly
reports to senior management. In addition, trained staff in eachdepartment conduct internal audits based on an annual plan andreport their findings to the Internal Control Promotion Meeting.

Audit and Supervisory Committee
Under Japan’s Companies Act, Asahi Holdings Inc. haselected to be a company with an Audit and Supervisory
Committee. By having three independent outside directors,
we have strengthened business execution oversight,
the advisory function, and the supervisory function forconflicts of interest.
Nominating and Compensation Committees
A Nominating Committee, consisting of one regular director
and two outside directors, as well as a Compensation
Committee, have been established as advisory bodies to theBoard of Directors. The aim is to further enhance corporate
governance by ensuring transparency, fairness, and objectivity
for the appointment and dismissal of directors and key
management team members, as well as for the determinationof director remuneration.
A SA HI HO LD ING S

27

ESG Initiatives

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

Internal Reporting System (Whistle-Blowing System)
To quickly identify and resolve problems such as unlawful
and unjust behavior, we have set up the Asahi Hotline.
Employees can directly report to both an internal desk andexternal law firm anonymously. We take corrective actions
to address disclosed matters after investigating without
revealing the identity of the disclosing or disclosed parties.

Business Continuity Management (BCM)
Various factors such as large scale disasters entail the riskof impairing the functions needed for business continuity.
As an action plan to achieve quick restoration of missioncritical functions even after a disaster, we created a business
continuity plan ( BCP ) . In addition to the BCP, we areconducting the activity of business continuity management
which is a system for improving BCP and business continuity
actions continuously.

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

G O VE RNANCE

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 and President of
Asahi Pretec Corp.
Apr 2009: Appointed Representative Director and President 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 and President of
Asahi Pretec Corp.
Apr 2017: Appointed Representative Director and President of
Asahi Americas Holdings, Inc. (to present)
Apr 2018: Appointed Director of Asahi Pretec Corp. (to present)
Apr 2018: Appointed Representative Director and President of
Asahi Holdings, Inc. (to present)

Yoshikatsu Takeuchi

Amane Kojima

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 President ofJapan Waste Corporation
Apr 2009: Appointed Director of Asahi Holdings, Inc. (to present)
Apr 2018: Appointed Director and Chairman of Japan Waste
Corporation (to present)
Apr 2018: Appointed Director and Chairman of Asahi Life &Health Corporation (to present)

Mar 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)

Hiroyuki Nakanishi
ProfileMar 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 President ofFuji Medical Instruments Mfg. Co., Ltd.
Apr 2018: Appointed Representative Director and President of
Asahi Pretec Corp. (to present)
Jun 2018: Appointed Director of Asahi Holdings, Inc. (to present)

Audit and Supervisory Committee Members

28

CORPORATE RE POR T 20 18

Shoji Morii

Yukio Tanabe

ProfileProfileMar 1972: Bachelor of Commerce, Waseda University
Apr 1972: Joined Sumitomo Trust and Banking Co., Ltd.
Jun 2003: Appointed Representative Director and President ofKobe Airport Terminal Co., Ltd.
Jun 2006: Appointed Representative Director and President of
Kaijo Access Co., Ltd.
Jun 2009: Appointed Outside Director of Asahi Pretec Corp.
Jun 2010: Appointed Outside Director of Asahi Holdings, Inc.
Jun 2015: Appointed Outside Director (serving as Audit andSupervisory Committee Member) of Asahi Holdings, Inc.
(to present)

Mar 1981: Bachelor of Commerce, Yokohama City University
Apr 1981: Joined Victor Company of Japan, Limited
Jan 1988: Joined Sony Corporation
Sep 2004: Joined Asahi Pretec Corp.
Jun 2008: Appointed Director of Asahi Pretec Corp.
Apr 2009: Appointed Director of Asahi Holdings, Inc.
Jun 2011: Appointed Corporate Auditor of Asahi Holdings, Inc.
Apr 2018: Appointed CEO of Asahi Holdings, Inc. (to present)
Jun 2015: Appointed Director (serving as Audit and Supervisory
Committee Member) of Asahi Holdings, Inc. (to present)

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 ofTokyo Oﬃce, Global Environment Centre Foundation(to present)
Jun 2017: Appointed Outside Director (serving as Audit andSupervisory 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 andSupervisory Committee Member) of Asahi Holdings, Inc.
(to present)

A SA HI HO LD ING S

29

ESG Initiatives

98,467t / year 15,527t / year
Scrap metals(plastic waste, sludge)

3,268 t / year

4,443 t / year

Non-ferrous metals
materials

Refractory brick andpaving materials▬(construction metal scrap)

Precious Metal bullion

Raw materials for recycling

Industrial Waste

Recycling
Products

Asahi
Gr

Glass cullet, fermented
compost, scrap metals, fuels
for cement, non-ferrous
metals materials, refractory brickand paving materials, clay waste,emulsion fuels

Recycling

Holdings
oupResources(liquid waste containing metals)(Furnace waste material)

6,805 t / year

3,893 t / year

Clay waste▬

Dental alloys

Fuels / raw materials
for cement▬

OUTPUT(food wastes, organic sludge)

▬

INPUT

Fermented compost▬▬

Glass cullet(bottles, waste glass sheets)▬

Raw Materials For Recycling

Recycling

Emulsion fuels▬

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

Recycling (recycling rate: 79.5%)

ENVIRONMENT

Environmental Initiatives of the Asahi Holdings Group(inorganic sludge, scrap wood)(waste oil, waste alkali)

35,113 t / year

4,253 t / year

Industrial waste

Saving Natural Resources
Energy Sources

21.47million kWh / year 1,101kL / year▬

455kL / year

3,630kL / year

Energy▬6,269m / year

Recycling precious metals and othermaterials helps reduce demand formineral resources.

Chemicals▬

14,485 t
All figures are for FY2017

Fossil fuels

20,621t / year 8,792 t / year

3

Water

CO 2

329, 448 m

3

CO R PORATE RE PORT 2018

Timber222,108 m

3

LPG

30

Precious metal ores

1.98million t / year
Effluent

1,669kL / year
12t / year

Business sites,
research lab, etc.

Urban gas▬

Gasoline

PlantsLight oil▬

Kerosene

19,183 t

Heavy oil▬▬Electricity

Waste

The Asahi Holdings Group helps to protect the global environment
by reclaiming materials from used products and various kindsof waste and recycling them. This reduces the extraction ofnatural resources such as precious metals, nonferrous metalores, agalmatolite, silica, timber, and fossil fuels.

80,125 t

Wood chips made from construction
lumber waste are used as a carbon
offset fuel.

Incinerators recover the heat energy
in waste, helping to reduce use offossil fuels.

AS AH I H O L D ING S

31

ESG Initiatives

Environmental management structure

Employee Environmental
Conservation Activities

Management

ISO 14001 Certification
Asahi Pretec has acquired ISO 14001 Certificate at 20
locations. In addition, the Group has acquired ISO 14001
certification at 6 companies with 30 locations in Japan.
We will continue to maintain and improve our ISO 14001
system, furthering the integration of our operations with the
ISO 14001 scheme.

Group employees actively participate in environmental cleanup activities
in various parts of Japan.

General Internal
Auditors

E NVI RO NME NT

Environmental Management

Chief Environment
Control Manager
General Environment
Committee

ISO Oﬃce

Supervisors

Supervisors

Supervisors

Hanshin Coastal Cleanup
Every year since 1988, the Group has participated in this activity for removing rubbish from anearby coastline. Sponsored by the Hyogo Prefecture Industrial Waste Association, this volunteer
activity is supported by local residents, businesses, schools, and government agencies. Many
employees bring their family members along, and everyone enjoys helping out with the cleanup.

Internal Auditors

Environment Preservation
Administrator

Koga City Regional
Cleanup Activity

Environment
Committee

Department
ISO 14001 certificate

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
as compliance 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.

Working to Address Climate Change
Solar Power Generation System
Greenhouse Gas Emissions ▬Asahi Pretec’s Hanshin Office, Kobe Office, and Technical▬
100

Research Center are all generating electricity with solar powersystems. Total solar power generation in fiscal 2017 was
148,000 kWh, equivalent to reducing 62 tons of CO2 emissions.

80
60
40
20
0

2013

Environmental Policy
We contribute to preservation of the global environment and help to build a sound material-cycle society
through the company’s businesses in recycling of precious and rare metals and industrial waste treatment.

(1) In all business activities we strive to conserve
resources and energy and reduce, reuse, and recycle
waste to minimize environmental impact.
(2) We promote the recycling of resources of precious
and rare metals to achieve more effective use of thelimited resources of the earth.
(3) We adequately and safely perform our operations
for the collection, transportation, and treatment ofindustrial waste to prevent environmental pollution.

(4) We prioritize harmonious coexistence with natureand local communities. We strictly follow therelevant environmental laws and regulations andother requirements which we recognize.
(5) We establish environmental objectives and targets
and periodically review them to continue improving
our activities.

CORPORATE RE POR T 20 18

2014

2015

2016

2017

Fiscal 2017 CO2 emissions from group companies in Japan
were 80,000 tons, unchanged from the previous fiscal year.
As part of our efforts to reduce CO2 emissions from energy
sources, lighting at various group sites was switched to
LED technology during fiscal 2017. Nevertheless, emissions
remained at the same level year-on-year, due to higher CO2
emissions coefficients used by electric utilities. CO 2 emissions
from non-energy sources also remained unchanged from theprevious fiscal year, due to a stable level of industrial waste
incineration across the entire Group.
Greenhouse gas emissions calculated based on Japan’s Law Concerning thePromotion of Measures to Cope with Global Warming.

Explaining power generation status using a monitor

Switchover to LED Lighting
Asahi Pretec encourages its sites to practice eco-friendly
procurement. This includes switching to LED lighting inorder to reduce environmental impact.

(6) We educate all our employees and increase theirenvironmental awareness as members of thebroader society, promote their understanding ofenvironmental preservation activities, and foster
their participation in such activities.

This environmental policy shall be conveyed to all of our employees and all those working
for the company and announced to the public as our commitment.

32

CO2 emissions from non-energy sources
CO2 emissions from energy sources(1,000 tons of CO 2)

Relevant SDGs

A SA HI HO LD ING S

33

ESG Initiatives

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 is working hard in various ways to create workplaces that foster
employee health, safety, and peace of mind.

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

Health Initiatives (Promoting Health Management)

Safety Measures

Health Exam Program Exceeds Legal Requirements
Starting at age 35, a gastroscopic examination is recommended
for employees, and brain MRI / MRA exams as well as PET
scans are provided periodically starting at age 40. If further
examination is necessary, assistance is provided to cover the
expenses. Our 100% employee examination rate far exceeds thelegally required level, and all employees and the company are
working together to promote health, prevent disease, and enable
early detection.

OSHMS Initiatives
In order to reduce occupational accidents, it is vital to identify the
many potential safety risks in every workplace, to minimize theserisks, and to nip potential accidents in the bud. The company employs
an occupational safety and health management system (OSHMS) to
improve workplace health and safety levels by reducing risks.

Work-Life Balance Support
The Group has implemented the following measures in order tohelp employees balance their work and personal lives, and tocreate workplace environments that are even more supportive.
· Provision of information sessions for employees planning to takechildcare leave and their supervisors, in order to explain thechildcare leave system and enhance follow-up by the supervisor· Holding roundtable discussions for female employees to discuss
beneficial work styles and ways to raise awareness of their issues· Extension of the shortened working hours period after an
employee returns from childcare leave — eligibility cutoff
was extended until the child finishes grade six (instead of
grade three)· Provision of shortened working hours for home care reasons

CORPORATE RE POR T 20 18

Language learning support

Qualiﬁcation acquisition support

Selflearning support

Online education (e-learning)

DIPS training(Dental division training)

Promotion candidate training

Administrator training

New manager training

ASG activities(small group activities)

Departmentspeciﬁc training

Rank-based education

Selective leader training

Childcare and Nursing Care Leave Systems
We provide support to employees expecting a child or those withchild-rearing and family care responsibilities, so that they cancontinue their employment. The company offers work styles that
better match employee needs, by providing childcare and nursing
care leave systems or shortened working hours for the same reasons.

Education
for new hires

New graduate reportpresentations

Flexible Working Hours System
Under the flexible working hours system, employees can adjust
their fixed working hours according to fluctuations in business.
The Group is promoting flexible work styles to ensure that
employees can meet personal responsibilities such as childcare,home care, and participation in family events. We are also
optimizing the productivity of hours worked by introducing IT
and reducing unnecessary work.

Education Systems

Step-up training

Employees who balance rewarding work with a fulfilling personal life are more likely to reach their full potential. The
company values employees who work to their full potential, so it actively facilitates work-life balance. Every employee
has a different idea about what a fulfilling personal life is, but it often includes priorities such as family, health, sports,and hobbies. We support employees in balancing their professional and personal lives.

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 impartiallyevaluate each employee’s contribution to business performance.

Training for new hires

Work - Life Balance

Human Resource Development

Upper-level
positions

Emergency Response
As a safety measure, the company identifies the risks associated withits business activities and appoints safety promotion chiefs at each site.
Building on its preventive measures, the company has also establishedsystems to ensure a rapid response in the event of an emergency.

Employment of People with Disabilities
We are working to help realize an inclusive society where
people with disabilities can live mainstream lives as part of thewider community. The Group’s employment rate for people
with disabilities exceeds the statutory requirement, andmaximum efforts are made to ensure their work is satisfying.

Mid-level
positions

Safety Activity Award System
Every year at the employee general meeting, business sites andemployees who have made significant contributions to safety
management receive recognition. These awards help to raisesafety awareness.

Basic-level
positions

Rest Intervals and No Late-Night WorkTo 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. Also, late-night work
is prohibited during the hours of 10 p.m. to 5 a.m.

Environmental Safety Education
The Group implements environmental safety education as part of
the human resource development program. This instills the proper
workplace safety habits and provides basic knowledge ofhazardous materials.

Professional and specialist
positions

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

34

Diversity and Inclusion

S OC I E TY

Health Management and Safe Workplaces

A SA HI HO LD ING S

35

ESG Initiatives

Partnering with Shareholders and Investors
In order to meet the expectations of our shareholders and investors, we present our vision, management policy, and mediumterm management plan in accessible ways, 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 andhigher corporate value.

Basic Policy on Shareholder Returns
The Group’s basic policy is to improve corporate value by maintaining stable profitability and sustainable growth, and to meetthe expectations of shareholders through ongoing stable dividends and other measures. In addition, we believe it is important toenhance retained earnings in order to enable investment in growth fields and the development of new businesses. Based on thispolicy, we intend to provide stable dividends by maintaining a consolidated dividend payout ratio of 30% and above. This will
be carried out while taking into consideration the Group’s management strategy, annual performance, and the need to further
strengthen financial structure.

▬

Dividend Per Share
IR Activities
Group executives hold financial performance briefings twice ayear, following the second quarter and fiscal year-end results
announcements. Opportunities are also created each quarter topresent management information directly to Japanese andforeign investors. The relevant materials are posted on thecompany’s website on the day each such event is held. In addition,individual interviews are given to promote communication
with institutional investors and securities analysts. In direct
visits or telephone interviews, we describe our management
policy and governance measures to foster constructive
dialogue with institutional investors outside Japan.
Corporate reports are released in Japanese and English inorder to share the Group’s management policy and businesssituation. The Group strives to disclose appropriate
information in a highly transparent manner.

IR Information Online
IR information is provided on the Asahi Holdings website tohelp shareholders and investors understand the Group’s businesssituation and strategy. In addition to result announcements andfinancial reports, materials such as corporate reports are alsoavailable. We will continue to work to disclose information in amanner that is easy to understand and timely.
General Shareholder’s Meeting
Every June, the company’s annual General Shareholders’Meeting takes place at Kobe Portopia Hotel. It is held about
seven business days before June 29, the busy day when mostJapanese companies hold their annual meetings. The meetingis also an opportunity for communication with shareholders.
By interacting directly with shareholders, the top executives
can clearly explain the Group’s management and receive
shareholder feedback for management improvement.

Serving our Customers

Quality Assurance System
At Asahi Pretec, quality assurance is positioned as the coredepartment, and it holds joint quality assurance meetings withthe sales, technology development, and product manufacturing
departments. At these meetings, employees share customer
feedback and market trends and work together to improvecustomer satisfaction. In addition, the Asahi Holdings Group
maintains ISO 9001 certification to ensure that its products
deliver satisfaction and peace of mind for customers. We are
36

CORPORATE RE POR T 20 18▬

Year-End Dividend▬

Mid-term dividend

Dividend payout ratio

68.6%

(%)

70
60

44.2%

43.1%
31.5%

50

32.7%

32.8%

40

23.3%

33.9%
30
30

30
30

30
30

30
30

30
30

30
30

30
30

30
30

2009

2010

2011

2012

2013

2014

2015

2016

2017

▬

Stock Prices

Trading volume (shares)

(JPY)

▬

3

10
0

Closing price(1,000 shares)

3,000

15,0002,500

12,5002,000

10,000

1,500

7,500

1,000

5,000

500

2,500
0

April 1, 2012

striving to continually improve the quality management
system to maintain and improve quality. In March 2010, ISO
9001 certification activities for four sites were integrated, anda company-wide quality
management system
was established. The
company also follows
green procurement
guidelines and European
chemical control
requirements such as the
RoHS Directive and the
REACH regulation. We
are striving to reduce ourenvironmental impact
and prevent the releaseof harmful substances.

30
20

30
30

0

Our motto is “the customer comes first,” and we mean it. We do all that we can to provide finely-tuned responses to thewide-ranging needs of each of our customers.
Fair Trade Measures
As part of the Asahi Way, the Code of Conduct of the
Asahi Holdings Group prohibit any behavior that impedes
fair competition, violates the confidentiality of supplierinformation and technology, or results in improper benefits.
These rules are strictly enforced to ensure compliance withfair business practices and corporate ethics.

Commemorative dividend

S OC I E TY

Communication with Stakeholders

April 1, 2013

April 1, 2014

April 1, 2015

April 1, 2016

April 1, 2017

Stock Ownership, by Types of Shareholders
Securities Firms

Treasury Stocks

1,014,274 shares

33,287 shares

2.5%

0.1%

Other Companies
2,869,352 shares

7.2%
Individuals and Others
Financial Institutions
9,964,500 shares

25.0%

Foreign Investors

15,473,783 shares

38.8%

Capital Increase by Issuing New Shares
In December 2017, we carried out a capital increaseby issuing new shares. It was our first equity financing
since before Asahi Holdings, Inc. was established,when the company issued Swiss-franc denominatedconvertible bonds with stock options in 2004. The recent
share issue has strengthened capital and will enable
investment in new IT and other technology under the 8th
Medium-Term Business Plan. It will also fund various
capital investments for productivity improvement, andnew business development.

10,499,148 shares

as of March 31, 201826.3%

A SA HI HO LD ING S

37

Asahi Holdings, Inc.

Working with Communities
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 as a corporate
citizen and actively contribute to the development of an even healthier society.
Contributing to Local Communities via Business Activities
The company has provided cooperation for the social project,“TOOTH FAIRY,” which is run by the cooperation of
Nippon Foundation and Japan Dental Association. Some ofthe profits obtained from sales of recycled precious metals
are made available as funds to assist the activities of theseorganizations. We also support the nonprofit organizations
Médecins du Monde Japon and Japan Cleft and Plate
Foundation, which provide medical support activities.

Precious metals business(Precious metals recycling business)

Asahi Pretec Corp.

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

ASAHI G&S SDN. BHD.
Shanghai Asahi Pretec Co., Ltd.
Asahi Pretec Korea Co., Ltd.
Asahi Pretec Taiwan Co., Ltd.

Japan Waste Corporation

Environmental preservation business

JW Chemitech Co., Ltd.

Partnering with Employees
Employee General Meeting
The company holds annual general meetings for employees.
At these meetings, top management leaders deliver speeches,and presentations are given on the results of the previous year
and important issues for the current fiscal year. Discussions
also take place between the management team and employees.
Dynamic Workplace Improvement
through Small Group Activities
Asahi Small Group ( ASG) activities are carried out based on
the voluntary and independent participation of employees inthe same workplace. Innovative solutions are sought through
ASG activities to solve problems in the workplace. Each year,
the ASG with the most outstanding initiatives is recognized at
the employee general meeting.

Nihon Chemitech Logitem Co., Ltd.
Self-Report System
Once a year, employees are asked to complete a questionnaireon points such as how well they are able to demonstrate
their abilities, the suitability of their work, job satisfaction,
their sense of achievement, interpersonal relations, and theatmosphere of the workplace. They are also are invited tooutline their desired career path. The completed questionnaires
are returned directly to the HR department. Working with
relevant officers and superiors, the department uses
the results to optimize personnel assignments, improve
workplace atmosphere, and enhance individual employee
job satisfaction.

JW Glass Recycling Co., Ltd.
Taiyo Chemical Co., Ltd.
Fuji Rozai Co., Ltd.
Iyotec Co., Ltd.
Ecomax Co., Ltd.

Asahi Life & Health Corporation

Life & Health Business

FUJI MEDICAL INSTRUMENTS MFG. CO., LTD.
Fujiiryoki, Inc.

Relevant SDGs

INTER CENTRAL, INC.
KOEIKOGYO., LTD.

Asahi Americas Holdings, Inc.

Precious metals business(North American reﬁning business)

Asahi Reﬁning USA Inc.
Asahi Reﬁning Canada Ltd.

38

CORPORATE RE POR T 20 18

A SA HI HO LD ING S

39

115.8 billion yen

Revenue(billion yen)

150.0Japanese Standard

IFRS

111.4
96.4

100.0

13.8 billion yen

Operating Income(+8.4% over the previous fiscal year)

Number of Employees

Percentage who are women(%)(+576.6% over the previous fiscal year)(billion yen)

(Persons)

15.0

2,000

13.8

2.080

Percentage outside Japan(%)

2.005

115.8
106.8

1,750

10.5

94.3

9.6

10.0

1,151

1,206

1,180

1,000

6.1
50.0

1,277

1,328

1.360

10.4

10.5

12.0

7.5

1,928 20

20.2
18.4

119.4

(%)

1.961

16.7

11.8

11.5

0
2012

2013

2014

2015

Earnings per share (EPS)2016

270.77 JPY(%)

300.0020

270.77

183.5

2014

2015

2016

2017

11.9

87.48
5.8

5
0.00
0

(37.24)

(2.6)
-5

2012

2013

2014

2015

2016

0
2010

2011

2012

2012

2017

2013

2014

2015

2016

2017

Financial Data
Unit

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Revenuebillion yen

126.4

82.6

110.5

151.1

96.4

94.3

111.4

119.4

106.8

115.8

Operatingincomebillion yen

(4.0)

7.9

10.7

11.2

7.5

9.6

10.5

6.1

2.0

13.8

Proﬁt ratio

%

(0.3)

9.5

9.6

7.4

7.8

10.2

9.4

5.1

1.9

11.9

Operatingincome ratio*

billion yen

(0.6)

4.4

6.1

5.9

4.5

6.0

5.8

2.9

(1.2)

9.4

EPS

JPY

(16.91)135.90190.46183.20139.24183.50176.8987.48(37.24)270.77

ROE

%

(1.9)

15.4

19.1

16.2

11.2

13.6

11.9

5.8

(2.6)

17.3

Total assets

billion yen

45.6

50.1

59.1

58.3

62.3

66.1

104.9

101.6

89.0

131.5

Capital equity
ratio

%

59.3

59.6

58.0

66.6

67.3

70.1

48.2

47.8

49.8

49.0

13.6
11.2

-100.00

2009

4.0

3.2

17.3 %

10

100.00

2008

1.9

17.3

176.89139.24

1.4

10 Years of Results

15
200.002013

Return on Equity (ROE)

(JPY)

1.2

2.8

0
2012

2017

10

5

500

2.0
0

15

9.4

9.0

8.4

7.8

5.0

11.7

17.5

Financial Highlights / Non - Financial Highlights

Financial Highlights / Non-Financial
Highlights

2013

2014

2015

2016

2017

*From ﬁscal 2015 onward: “Current proﬁt attributable to the owners of the parent company”

131.5 billion yen

Total Assets(billion yen)

(%)

150.0

80

131.5
104.9

67.3

70.1

60

101.6

100.0

49.0 %

Capital Equity Ratio

49.8

89.0
62.3

48.2

40

66.1

49.0

20

0
2012

40

2013

CORPORATE RE POR T 20 18

2014

2015

2016

2017

2012

2013

2014

Unit

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Number of
employees

Persons

1,151

1,180

1,206

1,277

1,328

1,360

2,080

2,005

1,961

1,928

Percentage
who are women

%

7.8

8.4

9.0

9.4

10.4

10.5

12.0

11.7

11.8

11.5

Percentage
outside Japan

%

1.2

1.4

1.9

2.8

3.2

4.0

20.2

18.4

17.5

16.7

47.8

50.0

0

Non-Financial Data

2015

2016

2017

Editorial Policy
This report provides an overview of
the approaches and operations of Asahi
Holdings, Inc., with a focus on thecompany’s measures to address social issues
through its business activities. It has been
prepared as a way for the Asahi HoldingsGroup to 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.

Report Period
April 2017 to March 2018
Scope
In principle, this report covers the entire
Asahi Holdings Group, including Asahi
Holdings, Inc. and its consolidated
subsidiaries. Some non-financial data andinformation relating to environmental
activities pertains to just the holding
company and its major group companies.

Numbers and Graphs
The figures shouwn here are rounded to
the nearest hundred millon yen. Due to thisrounding, totals may not agree with theconstituent figures shown.
The Group adopted the International
Financial Reporting Standards ( IFRS ) in
fiscal 2016, and each reporting item namebasically follows the IFRS.

Note on Future Prospects
In addition to past and current facts about
the Group, this report includes predictions
based on strategies, outlooks, andbusiness plans.
These predictions were created based on
information available at the time of writing.
Therefore, it is important to note that actual
performance and activity results may differ
greatly from any predictions presented here,
depending on future changes in the businessenvironment.

A SA HI HO LD ING S

41

Asahi Holdings, Inc.

Environmental Consideration in Printing
Paper: This report uses paper certiﬁed by Forest Stewardship Council® (FSC) that includes ﬁber from responsibly
Ink:
This report was printed with ink which does not contain volatile organic comxpounds (VOC).
Printing: This report has adopted a waterless printing method requiring no dampening water containing alkaline developers or isopropyl alcohol.