ARE : Business Portfolio

Precious Metals

to
Introduction	Precious Metals Business
Segments

Market Conditions

As geopolitical risks, increased resource costs, and concerns about inflation continue to surface, the expectations with regard to precious metals recycling have only become higher. There is also increased interest in "supplying precious metals in ways that are friendly to people, society, and the environment." The nature of recycling means that it is impacted by production trends and other factors in the industries that provide the materials, but we have been seeing a rise in materials collected in the jewelry and electronics industries.

Introduction to Segments

■ Revenue	■ Operating Profit
■	■

(Billion yen)

300		274.2	232.0
250
200	173.9
150
25	26.6	19.8
	16.7
15
	2021	2022	2023	(FY)
	Result	Result	Forecast

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

E-Scrap			Catalysts
Gold	Silver	Palladium	Palladium	Platinum	Rhodium

Collecting and Recycling Precious Metals

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 materials. Furthermore, we accurately meet customer needs by fully utilizing optimal methods and efficient refining facilities depending on the type of precious or rare metal.

Introduction Precious Metals Business to Segments

Electronic substrates used in personal computers, smartphones, and home appliances contain gold, silver, and palladium. We collect manufacturing process scrap and electronic substrates from used products.

We then put them through various processes such as crushing and sorting to recover and recycle precious metals. Our precise sampling and advanced analysis techniques are just some of our strengths.

Automobiles are equipped with catalytic converters to detoxify harmful substances in exhaust gas, and precious metals such as palladium and platinum are used in these devices. We use our original technologies

to recycle precious metals from automotive, chemical, and other catalysts.

Customers (waste

E-scrap

(Manufacturers, dismantlers, and brokers) Discarded electronic substrates and processing scrap

Precision Cleaning

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

Plating Treatment

(manufacturers) Plating solutions

Catalysts

			Collection	Inspection	-Pretreatment	Assay	andSeparationextraction	andMeltingmolding	Finishing
			Assay report
			(precious metals content analysis)

Precision Cleaning			Dentistry
Gold	Silver	Platinum	Palladium	Gold	Silver	Platinum	Palladium

providers)

(dismantlers / brokers) Unused and waste catalysts

Return

We strive to ensure the quality of equipment used by customers in their electronic component and semiconductor manufacturing processes by regularly and precisely cleaning them. Customers entrust us with their equipment parts, and we perform stripping and recovery of precious metals adhering to them. The recovered precious metals are

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

Dentistry

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

Jewelry (purchasers, manufacturers, and distributors)

Jewelry and processing waste

		(precious	Precious metals		Sale
		metals	market
		Trading companies
		Customers
		purchasers)	Manufacturers, etc.

returned to the customers upon request.

assay, and reporting.

Main Profit Drivers for the Precious Metals Recycling Business

Plating Treatment

Jewelry

The main profit drivers are stable refining fees and income from yield differentials ("free metal").

Gold

Silver

Palladium

Gold

Silver

Platinum

Palladium

Category

Profit Drivers

Impact on Profit

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

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

to manufacturing and processing company customers.

Precious metals

recycling

	● Refining fee income increases along with the amount of material collected.
Refining fees	● The unit price for refining fees is higher for materials that require difficult
	pre-processing. This means the average unit price rises along with the
	proportion of items that require difficult processing.
Yield differential	● The volume of "free metal" expands when the actual yield climbs due to
(difference between actual
improvements in technical capabilities and processes.
yield and contracted yield =
● Income from "free metal" increases in line with rising market prices.
"free metal")

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Segments

Introduction to PreciousMetalsiousBusiness Metals

Global Expansion

We have been expanding our precious metals recycling operations in Asia since 1994, focusing on dentistry and electronics waste. We have done this by developing business models tailored to local market conditions while utilizing the technology we have developed in Japan. Furthermore, with the addition of the Asahi Refining businesses to the Group in March 2015, we have expanded our operations to North America.

Introduction to Segments

Refining Business in North America

In North America, we mainly refine gold and silver raw materials produced by mining companies, and we are proud of our refining volume, which is among the largest in the world. We also are striving to develop new services using our refining business as a platform, while responding to the diverse needs of our customers with financial services and high-value- added products.

Asahi Pretec Korea

Incorporated: 2006

Location: Chungju, South Korea

Number of employees: 32

Business line: Precious metals recycling from dental and electronics waste

Asahi Pretec

Established: 1952

Incorporated: 2023

Location: Chiyoda-ku, Tokyo

Number of employees: 452

ASAHI METALFINE

Established: 1952

Incorporated: 2023

Location: Chiyoda-ku, Tokyo

Number of employees: 69

Japan Waste

Established: 1952

Incorporated: 1964

Location: Chuo-ku, Tokyo

Number of employees: 426

Asahi Refining Canada

Incorporated: 2015

Location: Ontario, Canada

Number of employees: 111

Business line: Gold and silver refining

Customers (miningcompanies,		Receipt of raw
	materials Product
return
etc.)

Financial services

Refining business

Downstream	Minted
	items

Normally, it takes about a week from the arrival of raw materials to the return of the recycled product. Asahi Refining also offers "advance trading" to provide the recycled product in a shorter time frame. We are also meeting the various financing needs of our customers by leveraging our unique capacity to produce large, stable quantities of precious metals products at world-class refining facilities.

We are focusing on supplying high value-added products such as minted items including coins and small bars, as well as green gold produced from recycled metal.

Green

gold

Introduction Precious Metals Business to Segments

ASAHI G&S SDN.BHD.		Asahi Refining USA	Asahi Refining Florida
Incorporated: 1994		Incorporated: 2015	Incorporated: 2019
Location: Penang, Malaysia		Location: Utah, USA	Location: Florida, USA
Number of employees: 8		Number of employees: 131	Number of employees: 77
Business line: Precious metals		Business line: Gold and silver refining	Business line: Gold and silver product
recycling from electronic				processing
materials and jewelry
				(As of April 1, 2023)

Product return

Main Revenue Drivers for the Refining Business in North America

In addition to refining fees, which are a stable source of revenue, we are expanding related businesses by using refining as a platform, such as revenues from financial services and processed products.

Representative Examples of North

American Financial Services

Advance Trading

• Provides "advance trading" to shorten the time between receipt of raw materials and return of products
• Earn "interest based on the number of days of advance delivery" from the customer by accepting the return of products before the contracted delivery date
• No risk of bad debts since advance trading is made after receipt of raw materials

Customers

1. Raw materials

	Advance
(3)	(2) Loan
	delivery

(5) Repayment

Financial

institutions

Category	Profit Drivers		Impact on Profit
	Refining fees		● Refining fee income increases along with the volume of incoming raw materials (doré).
Refining		● The unit fee cost does not change over the short-term because contracts are long-term.
business	Yield differential (difference		● The volume of "free metal" expands when the actual yield climbs due to improvements
	between actual yield and		in technical capabilities and processes.
	contracted yield = "free metal")		● Income from "free metal" increases in line with rising market prices.
			● Income increases when interest rates rise in advance trading contracts with mining
	Financial revenue (advance		companies.
		● Income increases when the period of advance delivery is extended.
Related	trading, etc.)
	● Income increases when metal procurement costs fall, and the interest rate spread
businesses			expands.
	Value-added product revenue		● Income increases along with the market demand for value-added products.
	(minted products, etc.)		● Income increases along with the brand value of our value-added products.

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Segments

Introduction to PreciousMetalsiousBusiness Metals

R&D System

Introduction to Segments

Strengths and Reponses to Potential Risks

Technical Research

Center

Pursuing 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 waste. We established the Technical 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.

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 and developing new technologies.

Precious metals

recycling

North American

Refining

Strengths

1. Ability to analyze the precious metal content of recycled materials
2. A sales force of about 200 people all over the country who are customer-focused and well-versed in IT
3. Sourcing of raw materials with attention to human rights and environmental factors, along with traceability management during processing and distribution

1. The largest refinery in North America as our refining platform
2. Location close to client mining companies
3. Our Group's credit worthiness and financing capacity

Responses to Risks

1. Allocating resources to growing markets and new sectors
2. Growing market share by utilizing proprietary systems in sectors with shrinking markets
3. Strengthening competitiveness through enhanced production efficiency
4. Improved green gold sales

1. Expansion of value-added services based on our refining platform
2. Avoiding dependence on global supply chains

Introduction Precious Metals Business to Segments

• Technology for separating and refining precious and rare metals ● Environmental preservation and resource recycling technology ● Precious metals molding and refining technology

Refining Technology

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

Release Technology

In order to collect precious metals adhered to the surfaces of parts and jigs, etc., used in the manufacture 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.

Assay

The ARE Holdings Group's core assay function supports a diverse range of corporate activities using the latest assay equipment and high-level assay technology. In addition,

Solving Social Issues through Business Activities

• Depletion of precious

Social issues relating	metal resources
● Environmental
to the Precious Metals
destruction during mining
Business	● Human rights and labor issues related to mining

• Money laundering and terrorism financing risk

Contributing to the SDGs

we play an important role in maintaining and enhancing trust with the Group's customers.

• Development of new assay technology ● Technical guidance for assay groups at each plant and sales office ● Purity assay of precious metals products ● Environmental analysis of issues such as plant wastewater discharges ● Environmental measurement certification business

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 metals analysis at sites in and outside of Japan, including Asahi Refining.

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

Helping to preserve terrestrial ecosystems, forests, and other land-based resources by expanding precious metals recycling, instead of mining

Contributing to industrial sustainability by continually improving our highly efficient and high-quality precious metals recycling technologies

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

Engineering

Using cutting-edge technology, experts from each sector design, produce, construct, and provide maintenance of facilities at subsidiaries in and outside Japan, helping to support safe and stable operation of the facilities.

• Design, production, construction, and maintenance of facilities and buildings
• Maintenance control of existing facilities ● Installation and maintenance of precious metals collection facilities for our customers ● Support for installation of robotics and IoT for equipment

Contributing to sustainable water use by practicing precious metals recycling without contaminant discharge

Helping to protect human rights and prevent child labor in high-risk regions such as conflict zones

Helping to prevent climate change by supplying recycled resources with low CO2 emissions

Promoting high levels of sustainability by collaborating with other companies

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Environmental Preservation

Introduction to Segments

to	Environmental Preservation
Introduction
Segments	Business
	The companies of the ARE Holdings Group meet the diverse needs of their customers
	by leveraging the unique technologies they have developed over the decades in their

Market Conditions

Emissions from industrial waste have generally remained at a steady level in recent years. The market is said to be worth as much as five trillion yen, but even major players in the industry have not secured a large share of the market, which underscores how many companies there are in the market. Businesses are expected to evolve as society as a whole transitions toward carbon neutrality and digital transformation continues to spread.

■ Revenue	■ Operating Profit
■	■

(Billion yen)

25	18.6
20	18.2	18.0
15
10
5
4	3.7	3.8
3			2.3
	2021	2022	2023	(FY)
	Result	Result	Forecast

respective fields to detoxify and properly dispose of various waste materials. As experts in
waste disposal, we are helping to solve global environmental problems and playing a key
role in building sustainable societies.
Waste reagents	Waste oil and sludge	Medical waste

Business Models for the Environmental Preservation Business

ARE Holdings offers proper processing of waste from various industries, including detoxification and recycling of difficult- to-handle materials. In addition, we are developing consulting sales across Japan based on our multiple business models.

Business partners

(plants, laboratories, hospitals, government offices,

universities, high schools, etc.)

Customer consultation

Introduction Environmental Preservation Business to Segments

The Group collects reagents for disposal from educational and research institutions. They are packed one by one for collection after confirming that they are stored in proper collection containers. Chemical content analysis is performed for any unidentified (poorly labeled) reagents to determine

the appropriate processing method before disposal. Even small quantities of miscellaneous waste that are difficult to handle are also processed properly.

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

We collect infectious waste and other waste materials generated by medical institutions. The collected medical waste is incinerated at our plant, and the waste residue is finally disposed of at a controlled landfill site.

Providing a wide range of solutions that meet customer needs,

Waste acids, alkalis and sludge

from waste collection to transport and disposal

Paint film debris

Waste fire-proof bricks

During bridge repair projects, repainting	Fire-proof bricks are used as refractories
is often performed. The old paint film that	to line glass furnaces, kilns, and
gets removed during the repainting process	incinerators. Waste fire-proof bricks
may contain lead, which serves as an anti-	generated by the demolishing of such
rust agent. We collect this old paint film	facilities and periodic repair work are
and treat it for safe and proper disposal via	collected and carefully sorted. Recyclable
concrete solidification.	items are reused as paving materials and
	fire-proof bricks.

(inorganic/organic)

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

Collection, transport, and proper processing

Effluent, waste oil, sludge, waste reagents, medical waste, fire-proof brick waste, etc.

Consulting

Proposals for best transportation and

disposal methods for proper disposal

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EnvironmentalPreservation Business Preservation

Providing a One-Stop Solution

The ARE Holdings Group provides one-stop support for all inquiries regarding industrial waste disposal. We provide a wide range of solutions from collection and transportation to disposal through an experienced sales team that extends across our group network. We hold relevant licenses from authorities across Japan and can handle a wide variety of materials.

Introduction to Segments

Group Network

We have a system for swift and proper waste disposal based on the necessary licenses for collection, transportation, and intermediate treatment of most types of industrial waste and specially controlled industrial waste. In addition, our outstanding technology for detoxifying various waste materials offers optimal solutions for environmental preservation.

One-stop

Waste generator	Consultation	Group sales
	representative

Arrangements

Industrial waste

Partner

Collection and

transportation

Disposal

Group plant

Group plant

Kobe Plant

● Detoxification of liquid waste and sludge

• Oil-waterseparation of waste oil

Shinmoji Plant/Hibiki Plant

• Incineration of various types of waste

● Sludge recycling

• Waste plastic crushing

Kawaguchi Plant

• Neutralization and dewatering process of inorganic liquid waste

Ibaraki Plant

• Fermentation and composting of organic sludge and animal/ plant waste

Introduction Environmental Preservation Business to Segments

Partner plant

Industrial Waste Disposal and Recycling Processes

Ijuin Plant Taniyama Rinkai Plant

• Incineration of various types of

waste

• Detoxification of liquid waste

Samukawa Plant

• Concreting processing for burnt

Fuji Rozai

• Regular

maintenance and demolition work for glass manufacturing kilns and waste incinerators

Collection and transportation

• Industrial waste

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

Intermediate treatment

■ Neutralization

■ Incineration

■ Condensation and

precipitation

■ Dewatering

Recycling

Landfill

residues, dust, and sludge generated by incinerators, etc.

Totsuka Plant

● Neutralization and dewatering processing of organic liquid waste

Yokohama Plant

• Waste oil recycling

(As of August 1, 2023)

• Specially controlled

industrial waste

■ Cyanide decomposition

Licenses Acquired by the Group (As of April 1, 2023)

17 articles of hazardous waste, such as waste acids, waste alkalis, waste oil and sludge, which contain specified toxic substances, and infectious waste

■ Oil-water separation

■ Neutralization, mixing

■ Kneading

■ Concreting

■ Fermentation and

composting

■ Grading

■ Cutting

■ Compression

Waste oil recycling facility, Japan Waste Yokohama Plant

Incineration facility, Japan Waste Shinmoji Plant

Industrial waste collection and transportation license

Industrial waste disposal license

Specially controlled industrial waste collection and transportation license

Specially controlled industrial waste disposal license

General waste

All prefectures, 9 government ordinance cities and core cities

9 prefectures, 5 government ordinance cities and core cities

All prefectures, 9 government ordinance cities and core cities

8 prefectures, 5 government ordinance cities and core cities

Kitakyushu City/Kagoshima City

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EnvironmentalPreservation Business Preservation

Generating Power from Waste

Waste-to-energy is a power generation method that uses the heat generated from waste incineration. It produces high temperatures and high-pressure steam to rotate turbines. By taking advantage of the energy released during waste incineration to produce electricity rather than simply incinerating the waste, the Group can reduce the amount of fuel used,

Introduction to Segments

Strengths and Reponses to Potential Risks

Strengths

Responses to Risks

thereby reducing CO2 emissions. The Group constructed a waste-to-energy power plant in the city of Kitakyushu. A portion of the construction funds were covered by the issuance of green bonds, which can only be used for projects that benefit the environment. The eligibility of these green bonds has undergone third-party evaluation by Rating and Investment Information, Inc. (R&I), which resulted in the highest R&I Green Bond Assessment rating of "GA1" being conferred. We will continue our efforts to properly dispose of waste and reduce CO2 emissions as we transition to a decarbonized society.

(1)	Nationwide network (possession of licenses for collection
	and transportation of industrial waste in all 47 prefectures
	in Japan)
(2)	Nationwide deployment of approximately 150 sales
	representatives experienced in various types of waste
	disposal
(3)	A one-stop solution for industrial waste that utilizes our

(1)	Further expansion of company processing facilities,
	including large processing facilities in the Kanto
	region, where demand is concentrated
(2)	Expanding consulting sales by leveraging our wealth
	of expertise, experience, and network

Garbage crane	Boiler

Turbine	Power
generation

Power

generator

own facilities and those of our partners

(4) The technical capability to handle waste that is highly

difficult to process, such as chemicals with unknown

contents

(3) Proactive adaptation to society's shift towards

decarbonization, with further expansion of our DX

business in the waste disposal sector

Introduction to Segments

Garbage pit	Waste

Exhaust gas	Smokestack
treatment equipment

Incineration ash

Solving Social Issues through Business Activities

Social issues relating	● Contamination by
hazardous waste
to the Environmental	● Impact on land and ocean ecosystems

Environmental Preservation

Digital Transformation in the Environmental Preservation Business

The Group will leverage its industry-leading experience to provide a digital platform for solving issues in the industrial waste industry. Digital technology streamlines operations for businesses, from generation to treatment of industrial waste, allowing for waste-free business collaboration based on the electronic manifest. Through our digital platform, we will contribute to the creation of a sustainable society by streamlining operations and business collaboration, as well as making proper waste management easier.

Preservation Business

● Pollution of water resources

Business

Overview of the DXE Platform

Contributing to the SDGs

	CO2 Emissions Calculation Service*	*The CO2 emissions calculation
			is currently under review.
Waste generator	Collection and transport provider		Collection provider
Collection and disposal provider
	One-stop Workflow
Collection management	Order management		Carry-in management
● Collection request	● Order entry ● Pickup request	● Carry-in registration
● Manifest management	● Carry-in notification	● Carry-in approval
	● JWNET collaboration (Proxy issuing slips/	● JWNET collaboration (Waste
	Transport report/Section 2 transport report)	disposal report/Secondary manifest
	● Manifest management	issuing slips)
		● Manifest management
	Sales invoice management function

JWNET

JWNET is a nickname for the electronic manifest system operated by the Japan Industrial Waste Information Center. Manifest data is digitized, and the system allows for

Realizing a sustainable society by recycling and detoxifying waste

Preventing marine pollution by properly treating liquid and plastic waste

Advancing technological innovation from the standpoint of further improving efficiency in utilizing resources for various waste products, and promoting global sustainability

Ensuring the sustainability of water resources by detoxifying discharge such as waste acids and alkalis

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

Achieving sustainable cities and other communities by properly managing waste

	Dispatch planning, driver coordination function
Optional services	Electronic contracts

Primary/secondary manifest issuing slips

online registration and reporting, which replaces paper manifests.

Helping to prevent climate change by reducing CO2 emissions from waste-to-energy power generation

Promoting high levels of sustainability by collaborating with other companies

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ARE Holdings Materiality

Our Approach to Sustainability

With "Totally Committed to Protecting the Natural Environment and Preserving Resources" as our Group's common shared purpose, we are committed to making effective use of resources and engaging in a wide range of environmental preservation activities. Based on the conviction that our business activities contribute to sustainability itself and that our business growth will directly help us to address social issues, we have established priority issues, themes, and targets, and are working hard to achieve them.

Priority Issues to be Addressed by ARE Holdings (Key SDG Goals)

１ Expand Precious Metals Recycling

We will expand our precious metals
recycling globally to promote more	P38,
effective use of limited resources.
Goals Total amount of recycled precious metals: 410 tons in FY2030 (1.5 times FY2015)	P40

Sustainability Promotion System

Our Group's sustainability initiatives are driven by the Sustainability Committee, which convenes on a quarterly basis. The Sustainability Committee consists of the Representative Director, President & CEO; the presidents

of our operating companies; and the Heads of the Technology Development Department and Management Department, with the CEO serving as the chairperson. The Sustainability Committee deliberates on sustainability-related strategies, plans, measures, risk management, and monitoring. In addition to reporting matters discussed by the Sustainability Committee to the Board of Directors every quarter, effective governance is ensured by having the Board of Directors pass resolutions on matters of import.

Board of Directors

Report/Submit Supervise/Direct

Sustainability Committee

Chairman: CEO

Group Risk Management

Department

Reporting	Secretariat of Sustainability Committee
	(Corporate Planning & Communications Department)
	Diversity & Inclusion	Climate Change
	Working Group	Working Group

Effective reduction of CO2: 1.465 million tons in FY2030 (1.5 times FY2015)

2 Supply Precious Metals in Ways That Are Friendly to People, Society, and the Environment

		We will contribute to responsible management of	P38,
		precious metals by expanding the supply of
Business		precious metal products while protecting the environment and human rights.	P50-51
	We will use precious metal-containing scrap and raw materials free from
		conflict minerals.
Materiality
	of waste as a waste disposal expert and
	3	Expand Proper Industrial Waste Disposal
		We will strive to ensure proper treatment
		work to help build a circular society.	P39
		Goals Amount of proper industrial waste disposal:
		500,000 tons in FY2030 (1.6 times FY2015)

4 Reduce CO2 Emissions

ARE Holdings Materiality

Consolidated	Business Units	Consolidated
subsidiaries in Japan	subsidiaries outside Japan

Materiality Identification Process

STEP 1 Begin investigating SDGs We formed a cross-functional SDGs Promotion Team (at the time) and began to look into and gain an understanding of SDGs

We will work to reduce CO2 emissions group-wide by implementing energy

saving activities at each site, switching toP39-43 next-generation vehicles, and switching to

low CO2 emission power plans.

Goals Energy-derived CO2 emissions: -50 % in FY2030 (compared to FY2015)

5 Enhance Work-Life Balance and Employee Diversity

We will strive to enhance job satisfaction

by improving the system to help diverse

Confirm the relevance

STEP 2 of the SDGs to our business

Based on the idea that our business activities themselves help to achieve a sustainable society (sustainability) through the effective use of resources and reduction of the environmental impact of our Precious Metals Business and Environmental Preservation Business, we have identified the relationships between our businesses and the 17 goals and 169 themes of the SDGs exhaustively, as well as organized them in terms of both risks and opportunities.

and	human resources to succeed within the	P48-49
Group. This will be done by reforming working styles, implementing
Human	health and productivity management, and promoting diversity.
resource	Goals Achievement rate for rest intervals of at least 11 hours: 100 % every year
Percentage of women in managerial positions to all female employees: Equal to men by the end of FY2030
Percentage of employees with disabilities: By the end of FY2030
Meet or exceed the legally mandated employment rate
contributionto	Annual paid leave utilization rate: 70 % by FY2030
	Percentage of men taking childcare leave: 50 %

STEP 3	Consider priority goals	We held discussions with corporate officers of business units on matters
of high importance and formulated priority themes and KPI proposals for
and KPIs
	the period through 2030.
STEP 4	Decide priority	All directors discussed the key goals and KPIs and determined the issues
SDG-related goals	to be addressed by the Group.

the SDGs
6 Encourage and Support SDG-Related Activities
development

We will encourage and support employee activities outside the Group's main	P52
business areas that contribute to SDGs achievement, including individual and
group volunteer activities. This initiative is called "ARE Holdings SDGs Activities."

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