DOWA Corporate Social Responsibility Report 2010

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Economic Report & Environmental Accounting

Financial Highlights

The global ecoFnomic recession of the previous fiscal year showed signs of recovery and the metal market hovered at a high level. We achieved the goal of cost reduction of labor expenses and other expenses, improvement of operations set in the beginning of the year, amounting to the total annual reduction of 10 billion yen. We also achieved the recurring profit of 13.8 billion yen.

Demands from IT related and automobile industries recovered faster than expected, resulting in profit increase in DOWA's electronic materials and metal processing departments.

< Total revenues and recurring profits on a consolidated basis > Graph

Environmental Accounting

We have started environmental accounting to clearly show our efforts and performance for environmental conservation quantitatively. We calculated the cost of our efforts towards environmental costs and the benefits gained through our environmental profits.

We limit the scope of environmental profits only to those benefits that can be confirmed with objective evidence conservatively to ensure transparency and only include profits gained through sale of valuable materials recovered from wastes in environmental profits such as recycled raw materials.

Environmental Costs

The environmental costs in FY 2009 are 12,416 million yen, almost double the environmental costs from the previous year. Majority of the environmental costs are those for capital investment in construction of a sulfuric acid plant in Akita Smelting and Refining. More specifically, the costs related to pollution prevention, recycling and disposal of DOWA's own wastes (resource-recycling costs) account for about 93% of all the costs.

While the costs within a workplace, for social activities and for correcting environmental damage increased, the costs related to the upper and lower streams of production, management and control and R&D decreased.

Item Sub-item FY 2005 FY 2006 FY 2007 FY 2008 FY 2009
1. Cost within a workplace area 1. Cost related to pollution prevention 2,670 2,707 2,810 3,399 10,215
2. Cost related to the global environment conservation 104 147 181 227 109
3. Cost related to resource-recycling 1,049 1,042 1,473 1,558 1.394
2. Cost related the upper and lower streams 700 48 204 24 21
3. Cost related to management activities 659 427 606 563 267
4. Cost related to R&D 412 321 404 234 74
5. Cost related to social activities. 148 11 9 16 117
6. Cost related to repairing the environmental damage 112 73 192 72 219
Grand Total 5,854 4,776 5,878 6,091 12,416

Environmental Profits

We gained 295 million yen for the sale of recycled raw materials, including metals, scrap and sediments from water treatment, an increase from last year. Data of our overseas operations have been added since last year, but it is very small compared to the data of operations in Japan.

  FY2005 FY2006 FY2007 FY2008 FY2009
Japan Quantity (1,000 t) 20.7 20.4 23.3 23.1 17.6
Amount (million yen) 199 178 596 212 295
Outside Japan Quantity (1,000 t) - - - 0.10 0.34
Amount (million yen) - - - 2 7
Total Quantity (1,000 t) 20.7 20.4 23.3 23.1 17.9
Amount (million yen) 199 178 596 212 303