About the DOWA Group

About the DOWA Group

　The DOWA Group has developed a global recycling business consisting of five core businesses. In the smelting”Nonferrous metals business”, we extract useful metals from various recyclable raw materials in addition to natural resources. The extracted metals go through various processes and are given enhanced functionality in “the eElectronics materials business”, “the mMetal processing business” and “the hHeat treatment business”, after which they are included in final products such as automobiles and electronic devices. “The eEnvironmental management and recycling business “detoxifies waste and separates and recovers metals from used products. The recovered metal is used again as raw material for smelting. Through the development of such a recycling business, in addition to providing high-quality products and services, we are working to resolve social issues such as environmental conservation and resource problems.
　Our business situation in FY 2017 was as follows.

FY 2017 Financial Highlights

　In the FY 2017 financial results, while sales increased due to higher metal prices, operating profit declined due to an increase in depreciation costs, a deterioration in purchasing conditions for smelting raw materials, and a decrease in waste disposal treatment volume. Consolidated sales rose 11% year on year to 454.7 billion yen, consolidated operating profit fell 9% to 30.9 billion yen, ordinary profit was unchanged at 36.3 billion yen, and consolidated current net profit attributable to parent company shareholders fell 6% to 24.6 billion yen.
　With regards to the business environment for the corporate group, demand for automobile-related products remained comparatively steady both in Japan and overseas, while demand for electronic components and new energy-related products grew mainly in East Asia. With regards to the market environment, metal prices rose for such things as precious metals and zinc.

（100 million yen）

Operating results	2013	2014	2015	2016	2017
Sales	4,439	4,642	4,065	4,105	4,547
Operating profit	317	390	350	339	309
Ordinary profit	350	420	350	365	363
Attributable to parent company shareholders Current net profit	233	265	218	261	246

Each year listed shows the fiscal period from April 1st to March 31st.

Situation in FY 2017

FY 2017 Business Topics

Promoting low carbonization of waste treatment

　Technochem Environmental Complex (hereinafter referred to as TEC), which provides waste management services in Singapore, has earned the trust of local companies as a processing factory which has processing licenses for almost all items of hazardous waste. Currently, as a major chemical industry hub in Asia with government support, Singapore is seeing an expansion in factories and research facilities for chemical and pharmaceutical manufacturers. In the future, hazardous waste discharged by this bio industry will increase, and it is expected that the need for waste disposal treatment where high safety and reliability are required will rise.

Initiatives to create a low-carbon society

　In November 2017, Tec started operating a new incinerator that mainly treats solid hazardous waste. The new vertical type stoker furnace uses combustion improver only from the ignition point to the temperature rising point, and then the combustion proceeds using the amount of heat of the waste itself, therefore　no additional fuel is necessary during operation, meaning that this waste treatment faicility is low-carbon type . From our estimate, upon treatment of the same amount of waste in a conventional furnace, over 1,000 tons of fuel is needed annually, so a significant reduction of CO₂ emission is expected.
　The incineration capacity of the new furnace is 36 tons per day, and together with the existing one, about twice as much treatment is possible as before. By expanding the acceptance of solid hazardous waste, such as the refractory waste related to pharmaceuticals and chemicals, we will be able to quickly handle the appropriate processing of increasing hazardous waste. Taking advantage of the experience that the DOWA Group has acquired in Japan and overseas, we will contribute to the safe treatment of hazardous waste and the reduction of CO₂ , and we will work for responsible waste treatment.