DOWA CSR REPORT 2016

CSR Management
About DOWA group

At DOWA group, we are developing a global recycling business comprising of 5 core businesses.
In “Smelting Business”, we extract useful metals from various recycled materials in addition to natural resources. The metal that is extracted is processed in several ways by "Electronic Materials Business", "Metal Processing Business", "Heat Treatment Business", made highly functional and incorporated into final products such as automobiles and electronic devices. Furthermore, in the “Environment & Recycling Business”, we render the waste harmless, separate metals from used products and collect them. The recovered metal is used again as a refining raw material.
Through the development of such a recycling business, we are providing high-quality products and services and are working on solving social issues such as environmental conservation and resource problems.

Corporate Profile

Name DOWA Holdings, Co., Ltd.
Incorporated March 11, 1937
Head Office 22nd Floor, Akihabara UDX Bldg, 4-14-1
Sotokanda, Chiyoda-ku, Tokyo 101-0021 JAPAN
President and Representative Director Masao Yamada
Common Stock 36,437 million yen
Employees Approximately 8,900 persons (As of March 31, 2016)

FY 2015 Financial Highlights

We have been implementing measures in accordance with the basic policy of the medium-term plan that began in fiscal 2015 by expanding the overseas business further and developing the growth markets and peripheral areas thereby expanding business and continuously strengthening business competitiveness. Consolidated sales in FY2015 decreased by 12% to 406.5 billion yen, consolidated operating profit decreased by 10% to 35 billion yen, consolidated ordinary profit decreased by 17% to 35 billion yen, Consolidated net income attributable to parent company shareholders decreased by 18% to 21.8 billion yen.

売上高グラフ
営業利益グラフ
経常利益グラフ

(Hundred million Yen))

Business Results 2011 2012 2013 2014 2015
Sales 3,924 4,193 4,439 4,642 4,065
Operating profit 220 245 317 390 350
Recurring profit 209 272 350 420 350

Each mentioned year represents the fiscal period from April 1 to March 31 of the next year.

Business-wise Status

The business environment of the Group in fiscal 2015 saw a decline in automobile production in Japan and Asia as a result of partial demand for automobile related products, and was affected by the inventory adjustments by customers for smartphones. On the other hand, energy-related products continued to remain steady.
Business-wise business overview and the business situation of 2015 are as follows.

グラフ

Net sales of each division include 67.8 billion yen eliminated by consolidation adjustment.

Environment and Recycling Business DOWA ECO-SYSTEM CO., LTD.

Sales constituent ratio

21.2%

Operating profit constituent ratio

18.6%

Waste treatment business
Integrated services from collection and transportation to intermediate and final processing of municipal and industrial waste
Soil remediation business
Total support from survey to remediation and monitoring of soil contamination
Recycling business
Collection of valuable metal from used products such as scrap generated from factories and production processes, electrical appliances and automobiles

Smelting business DOWA METALS & MINING CO., LTD.

Sales constituent ratio

46.4%

Operating profit constituent ratio

39.3%

Precious metals and copper business
World's leading recycling and smelting that can collect a variety of metals such as gold, silver, and copper
Rare metals business
Recovery of platinum group metals such as platinum from used automobile exhaust gas catalysts
Zinc business
Recovery of platinum group metals such as platinum from used automobile exhaust gas catalysts

Electronic materials business DOWA ELECTRONICS MATERIALS CO., LTD.

Sales constituent ratio

10.4%

Operating profit constituent ratio

23.7%

Semiconductor business
Leading manufacturer of high-purity gallium indium semiconductor materials, compound semiconductor wafers, and high luminance and high output LED
Electronic materials business
Manufactures silver powder used in new energy applications, copper powder used in electronic components, zinc powder and silver oxide used in batteries etc.
Functional materials business
Manufacturer boasting of world's dominant market share of ferrite powder used in metal powder for high-capacity recording tapes, carrier powder for copiers, printers etc.

Metal processing business DOWA METALTECH CO., LTD.

Sales constituent ratio

16.7%

Operating profit constituent ratio

14.5%

Metal processing business
Manufacturer of copper, brass, and copper alloys used in terminals and connectors for automobile and semiconductor, and brass bars and forgings
Plating business
Precious metal plating processing of components such as connectors and switches of automobiles
Circuit board business
Manufacturer of metal ceramic substrates used in power control equipment such as industrial machinery, high-speed rail, wind-power generation, and solar power

Heat treatment business DOWA THERMOTECH CO., LTD.

Sales constituent ratio

5.2%

Operating profit constituent ratio

4.0%

Industrial furnace business
Provides total service from design and erection of furnaces to maintenance, leveraging the know-how of heat treatment processing
Heat treatment processing business
Application specific surface treatment that aims at the improvement of abrasion resistance, fatigue resistance and heat resistance in metal gearbox and engine of automobiles, etc.

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