Asahi : Business Portfolio

to Introduction

Precious Metals BusinessPrecious MetalsIntroduction to Segments

Segments

The Group collects and recycles scrap containing precious metals from various sectors.

By recovering and providing gold, silver, platinum, palladium and other precious metals indispensable to modern manufacturing, we are contributing to the effective utilization of resources and the development of industry.

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 sectors.

■ Revenue	■ Operating Profit
■	■		181.0	to
(Billion yen)
	173.9		Introduction Segments
120
180
160	144.8
140
	24.0	26.6	24.0	BusinessMetalsPrecious
25
15
	2020	2021	2022	[FY]
	Result	Result	Forecast

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

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

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

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.

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.

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

E-Scrap

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

Precision Cleaning

(manufacturers)

Collection	Inspection	treatmentPre-	Assay	Separationand	Meltingand	Finishing

Precision Cleaning			Dentistry
Gold	Silver	Platinum	Palladium	Gold	Silver	Platinum	Palladium

Electronics / semiconductor manufacturing equipment parts, etc.

Plating Treatment

(manufacturers)

extraction

molding

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 returned to the customers upon request.

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, assay, and reporting.

Providers)(WasteCustomers

Plating solutions

Catalysts

(dismantlers / brokers) Unused and waste catalysts

Dentistry

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

Jewelry

	Assay report
	(precious metals content analysis)
	Return
Metals(Precious		Precious metals	Sale
	market
	Trading companies
Customers

Plating Treatment		Jewelry
Gold	Silver	Palladium	Gold	Silver	Platinum	Palladium

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

Purchasers)	Manufacturers, etc.

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.

Main Profit Drivers for the Precious Metals Recycling Business

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

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

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to
Introduction Segments	Precious Metals Business

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.

Asahi Pretec Korea Co., Ltd.

Asahi Pretec Corp.

Asahi Refining Canada Ltd.

Incorporated: 2006

Established: 1952

Incorporated: 2015

Location: Chungju, South Korea

Incorporated: 1964

Location: Ontario, Canada

Number of employees: 33

Location:Kobe City, Hyogo,

Number of employees: 111

Business line: Precious metals recycling

Japan

Business line: Gold and silver

from dental and electronics

Number of employees: 972

refining

waste

Introduction to Segments

North American Refining Business
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	to
Introduction Segments
business as a platform, while responding to the diverse needs of our customers with financial services and high-value-
added products.					Activated carbon is used as an adsorbent
						by mining companies to perform
						preliminary separation of gold from gold
				Carbon	ore. We collect the used carbon for proper	BusinessMetalsPrecious
				processing. While difficult to process,
				treatment	activated carbon is a valuable material, and
						it can be used to adsorb harmful elements
						such as mercury. We remove mercury
						from the used activated carbon and then
						recover the remaining precious metals.
Customers	rawReceiptof	Upstream			Financial
		services
etc companies,(mining					Normally, it takes about a week
				from the arrival of raw
	Refining Business			materials to the return of the
			recycled product. Asahi
			Holdings 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
materialsProductreturn				unique capacity to produce
			large, stable quantities of
			precious metals products at
			world-class refining facilities.
Downstream	Minted	Green

ASAHI G&S SDN. BHD.	AsahiRefining USA Inc.
Incorporated:1994	Incorporated: 2015
Location: Penang, Malaysia	Location: Utah, USA
Number of employees: 8	Number of employees: 120
Business line: Precious metals	Business line: Gold and silver
recycling from electronic	refining
materials and jewelry

Asahi Refining Florida LLC

Incorporated: 2019

Location: Florida, USA

Number of employees: 64

Business line: Gold and silver product processing

(As of March 31, 2022)

.	items	gold
)

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.

Product return

Main Revenue Drivers for the Refining Business in North America

Representative Examples of
North American Financial Services	Customers
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 trading" 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

1. Raw materials

(3)		Advance		(2) Loan
		delivery
				(5) Repayment

Financial

institutions

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.

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 between	● The volume of "free metal" expands when the actual yield climbs due to improvements in
	actual yield and contracted yield =	technical capabilities and processes.
	"free metal")	● Income from "free metal" increases in line with rising market prices.
	Financial revenue (advance trading,	● Income increases when interest rates rise in advance delivery contracts with mining companies.
	Income increases when the period of advance delivery is extended.
Related	etc.)
● Income increases when metal procurement costs fall, and the interest rate spread expands.
businesses
Value-added product revenue (minted	● Income increases along with the market demand for value-added products.
	products, etc.)	● Income increases along with the brand value of our value-added products.

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

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

to
Introduction Segments	Precious Metals Business

R&D System

Introduction to Segments

Strengths and Responses to Potential Risks

Technical Research Center

Pursuing Original R&D

Precious Metal Recycling Business

Refining Business in North America

Introduction Segments to

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

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. Production processing and distribution management that has obtained RJC certification and product quality that has obtained LBMA and LPPM certification

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

Strengths

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

BusinessMetalsPrecious

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.

● 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 Asahi 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, 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

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.

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

Solving Social Issues through Business Activities

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

Contributing to the SDGs

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 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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to Introduction

Environmental PreservationEnvironmental PreservationIntroduction to Segments Business

Segments

The companies of the Asahi Holdings Group meet the diverse needs of their customers by leveraging the unique technologies they have developed over the decades in their respective sectors 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.

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 towards carbon neutrality and digital transformation continues to spread.

■	■
■ Revenue	■ Operating Profit

(Billion yen)

25	20.0	18.6	19.0
20
15
10
5	3.8	3.7
4	3.5
3
	2020	2021	2022	[FY]
	Result	Result	Forecast

Environmental Introduction Segments to

Waste Reagents

Waste Oil and Sludge

Medical Waste

Business Models for the Environmental Preservation Business

Asahi 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

BusinessPreservation

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 final disposal site.

Providing a wide range of solutions that meet customer needs,

from waste collection to transport and disposal

Wood Waste	Waste Fire-Proof Bricks	Waste Acids, Alkalis, and Sludge
		(Inorganic/Organic)

Collection, transport, and

proper processing

Consulting

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

Fire-proof bricks are used as refractories to line glass furnaces, kilns, and incinerators. Waste fire-proof bricks generated by the demolishing of such facilities and periodic repair work are collected and carefully sorted. Recyclable items are reused as paving materials and fire-proof bricks.

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.

Effluent, waste oil, sludge, waste reagents,

medical waste, waste fire-proof bricks, waste

wood, etc.

Proposals for best transportation and disposal methods for proper disposal

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Introduction Segments to

Environmental PreservationEnvironmentalBusinessPreservationIntroduction to Segments

Providing a One-Stop Solution

The Asahi 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.

O n e - s t o p

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.

Collection and	Disposal
transportation

W a s t e	Consultation	G r o u p s a l e s
g e n e r a t o r		r e p r e s e n t a t i v e

Group plant

Arrangements

Industrial waste	Group plant
P a r t n e r

Partner plant

Industrial Waste Disposal and Recycling Processes

Kobe Plant

●Detoxification of liquid waste and sludge

●Oil-water separation of waste oil

Kitakyushu Plant/

Hibiki Plant

●Incineration of various types of waste

●Sludge recycling

●Waste plastic crushing

Ijuin Plant

Taniyama Rinkai Plant

●Incineration of various types of waste

●Detoxification of liquid waste

Samukawa Plant

Kawaguchi Plant

●Neutralization and dewatering process of inorganic liquid waste

Ibaraki Plant

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

Fuji Rozai

●Regular maintenance and demolition work for glass manufacturing kilns and waste incinerators

BusinessPreservationEnvironmental Introduction Segments to

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

Recycling

Landfill

●Concreting processing for burnt residues, dust, and sludge generated by incinerators, etc.

Totsuka Plant

●Neutralization and dewatering processing of organic liquid waste

Yokohama Plant

●Recycling of sludge, waste oil, and wood chips

●Sorting, recycling of other waste

■ Specially controlled industrial waste

■ Dewatering

■ Cyanide decomposition ■ Oil-water separation

(As of June 1, 2022)

Licenses Acquired by the Group (as of June 1, 2022)

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

■ Neutralization, mixing ■ Kneading ■ Concreting ■ Fermentation and

composting ■ Grading

Waste oil recycling facility, Asahi Pretec Yokohama 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

All prefectures, 9 government ordinance cities and core cities

10 prefectures, 6 government ordinance cities and core cities

All prefectures, 9 government ordinance cities and core cities

10 prefectures, 6 government ordinance cities and core cities

Incineration facility, Asahi Pretec Kitakyushu Plant

General waste

Kitakyushu City/Kagoshima City

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