Envipro : Financial Results Briefing Materials for the Fiscal Year Ended June 2021

Financial Results Briefing Materials

for the Fiscal Year Ended June 30, 2021

Envipro Holdings Inc.

August 11, 2021

Table of Contents

1. Financial Overview for the Fiscal Year Ended June 30, 2021
2. Forecast for the Fiscal Year Ending June 30, 2022
3. Dividend Policy
4. Reference Data

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１. Financial Overview for the Fiscal Year Ended June 30, 2021

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Changes in the classification of business segment

• Strengthened the synergies between the Global Resource Circulation Business and the Used-cars- related Business, which engage in overseas business by integrating these business.
• Lithium-ionBatteries Recycling Business as a strategic business of the group has been spun off from the Resource Circulation Business in view of the business content, scale, and alliance of hydrometallurgy, etc. which are planned in the future.

Business Segment	Description	Company
	◇Recycling (Resource recovery)
	To shred the metal scrap and waste, and to sort and	ECONECOL Inc.
	recycle these materials by difference of material properties.	Kuroda Recycle Co., Ltd.
	◇Remanufacturing	SYNECO Inc.
Resource Circulation	To take recycling technology one step further and to	Toyo Rubber Chip Co., Ltd.
re-manufacture the recycled raw materials and products
	from waste, scrap, etc.	Equity method affiliates
	◇Reuse	Arbiz Corporation
	To supply the used products and parts to the market	Fuji Eco Cycle Co., Ltd.
	while maintaining their functions and values of them.
	To handle various resources such as metal, plastic scrap,
Global Trading	biomass fuel and various reuse products such as high-quality	NEWSCON Inc.
used car, heavy machinery, and trucks.
3WM Co., Ltd.
	To supply "where they are needed more" with products which
	generated world wide.
Lithium-ion Batteries	To discharge and shred rechargeable batteries such as
lithium-ion battery, and collect minor metal(nickel and	VOLTA Inc.
Recycling	cobalt,etc.) by sorting these materials based on using the
	difference of material properties.
	To provide employment support for people with disabilities.
Others	To provide consulting services specialized in environmental	ASTOCO Inc.
management, such as support for corporate environmental	Bright Innovation Co., Ltd.
	strategy planning and CO2 reduction planning.		4

Highlights for the Fiscal Year Ended June 30, 2021

Consolidated Financial Results

Net sales

Operating profit

Ordinary profit

Profit before income taxes

Profit※

Main Topics

¥40,933 million ¥2,130 million ¥2,508 million ¥2,101 million ¥1,491 million

（Up 20.8%	YoY）
（Up 169.6%	YoY）
（Up 168.3%	YoY）
（Up 128.8%	YoY）
（Up 147.8%	YoY）

• The ferrous scrap price (Tokyo Steel (Tahara) Tokkyu Grade Seaborne Price) increased from ¥24,500 at the end of the previous fiscal year to ¥51,500 at the end of the fiscal year, and the average price during the fiscal year was ¥36,054, up from ¥22,943 in the previous fiscal year. Furthermore, The average market prices of gold, silver, copper, aluminum, nickel and cobalt increased above those of the previous fiscal year.
• Extraordinary loss of ¥ 834 million was recorded in the Lithium-ion Batteries Recycling Business due to impairment loss and in the Global Trading Business due to provision of allowance for doubtful accounts and loss on business restructuring. Extraordinary profit of ¥ 427 million was recorded due to the sale of cross-shareholdings.
• In the Lithium-ion Batteries Recycling business, transactions with leading battery manufacturers started, and progress was made in the development of collection, production, analysis, and sales systems, however, ordinary loss of ¥80 million was incurred.
• Tight supply-demand balance of cargo ships and soaring ocean freight rates due to worldwide shortage of shipping containers.
• ¥600 million in Capital Investment (Inspection basis).

※Profit：Profit attributable to owners of parent
（Amounts and quantities are rounded down. The percentages are rounded off.）	5