DOWA : REPORT 2022 (A-3 size)

14-1, Sotokanda 4-chome,Chiyoda-ku, Tokyo 101-0021, Japan Website: https://www.dowa.co.jp/index_e.html

DOWA REPORT 2022

DOWA REPORT

202 2

Integrated Report

DOWA HOLDINGS CO., LTD.

For the year ended March 31, 2022

Printed in Japan

C ove r

S t o r y

Upholding Our Founding Spirit

Continuing to refine our technology to resolve social issues

Environmental

conservation

Technological

pursuits

Coexistence

with local

communities

Resolving social issues

DOWA was founded in 1884 as a mining and smelting company working with nonferrous metals. In 1898, the Company developed technology for refining kuroko, or black ore, a complex sulfide ore that was difficult to treat with the technology available at the time. This breakthrough set DOWA on a path toward the effective use of nonferrous metal resources, a path it still walks today. Over our more than 130-year history, we have remained committed to facing challenges head-on and continuing to refine our technology. During that time, we have also learned that the true key to resolving social issues is to be mindful of the environment and to coexist with society, in addition to the pursuit of profit.

01

C ove r

S t o r y

The winds of change are blowing as the world shifts toward a recycling-oriented, decarbonized society. To help achieve these goals, the DOWA Group of today is looking to its founding spirit to drive efforts to evolve its unique recycling-oriented business model and to keep offering new value to society. In doing so, we will help create a sustainable future.

Urban Mine

Circular Economy

The DOWA Group's Corporate Mission, Vision, Values, and Code of Conduct

	The reason for the existence of the DOWA Group
Mission	Contribute to creating an affluent, recycling-
oriented society through our business activities
	worldwide.
	The vision of the DOWA Group (our goal in 2030)
	Contribute continuously to building a sustain-

Carbon

Neutrality

Metallurgical

Technology

Sustainability

Vision	able future through our core businesses, the
	promotion of resource recycling, and the provi-
	sion of excellent materials and technologies.
	The values of the officers and employees of the DOWA Group
	1.	Properly understand social issues and address them
	2.	Act honestly and responsibly
Value	3.	Engage in fair competition
4.	Embrace change and turn it into an opportunity to
		challenge ourselves
	5.	Respect diversity and individuals
Code	The exemplary behavior and judgment for the officers and
employees of the DOWA Group

In October 2020, we fully revised our Corporate Mission, Vision, Values, and Code of Conduct. We made these revisions with reference to several guidelines, including the United Nations Global Compact (UNGC), the Sustainable Development Goals (SDGs), and the Charter of Corporate Behavior of Keidanren (Japan Business Federation). These revisions also reflect stakeholder expectations and take into consideration the corporate culture DOWA has cultivated over its long history.

The DOWA Group's Corporate Mission

https://www.dowa.co.jp/en/about_dowa/philosophy.html

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DOWA HOLDINGS CO., LTD.

DOWA REPORT 2022

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At a Glance (Fiscal 2021)

			Relevant Industries
Operating Companies and Main Products and Services	Net Sales Ratio*	Ordinary Income Ratio*	and Applications

Environmental Management &

¥135.0billion

Recycling Business

14.6%

Hazardous waste

DOWA ECO-SYSTEM CO., LTD.

18.6%

¥13.6billion

Waste Treatment

Soil Remediation

Recycling

Southeast Asia

Metal scrap

Nonferrous Metals Business

DOWA METALS & MINING

CO., LTD.

Electronic components

Precious Metals and Copper Smelting

Platinum Group Metals Smelting

Zinc Smelting

Resource Development and Raw Material Procurement

Automobiles

49.4%

¥455.6billion

Electronic Materials Business

DOWA ELECTRONICS

58.2%

¥42.7billion Telecommunication devices

MATERIALS CO., LTD.

Semiconductors Electronic Materials

Advanced Fine Materials

Solar panels

Metal Processing Business

DOWA METALTECH CO., LTD.

Automobiles

Copper Rolled Products

Electroplating

Metal-Ceramics Substrates

19.0%

¥175.3billion

Telecommunication devices

8.9%

¥6.5billion

Heat Treatment Business

DOWA THERMOTECH CO., LTD.

6.8

Automotive

12.1%

¥111.9billion

9.2%

Heat Treatment Processing

¥

billion

Industrial Furnaces

¥3.0billion

28.9

4.1%

3.1%

¥

billion

Automotive components

* Excluding adjustments

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DOWA HOLDINGS CO., LTD.

C O N T E N T S

78

Business Strategy

78

Results by Segment

Integrated Report 2022

80

Environmental Management &

DOWA HOLDINGS CO., LTD.

Recycling Business

82 Nonferrous Metals Business

1

84 Electronic Materials Business

Cover Story

86

Metal Processing Business

4

88 Heat Treatment Business

At a Glance

90

The DOWA Group-

6

Message from the President

A Year in Review

14

90

Business Topics

DOWA's Value Creation

92

Sustainability Topics

14

DOWA's History

94

16

DOWA's Strengths

Financial /

20

Highlights

Corporate Information

22 Value Creation Process

94

Financial Review

98

Consolidated Performance

24

Midterm Plan 2024

Trends

28

Initiatives to Support Value Creation

100

Subsidiaries and Affiliates

101

Company Data and

28

Materiality

Stock Information

30 Creating a Resource-Recycling Society

34 Enhancing Products and Services That Reduce Social and

	Environmental Risks	Scope of Coverage
		Companies included in the PDF "Subsidiaries and Affiliates" located
	38 A Discussion at the	in the IR Library section of the corporate website:
	https://ir.dowa.co.jp/en/ir/library/annual.html
	DOWA x Tohoku University
	Period of Reporting
	Co-creation Research Center
	From April 1, 2021 to March 31, 2022, herein referred to as "fiscal
42	Responding to Climate Change	2021." Parts of this report may refer to initiatives and activities
outside this period.
48	Protecting the Environment	Cautionary Note regarding Figures
The figures in this report have been rounded down.
52	Ensuring Occupational Safety	Cautionary Note regarding Forward-Looking Statements
	and Health	Forward-looking statements in this report, such as performance
	forecasts, are based on the information available to the Company's
54	Increasing Organizational Power	management team at the time of publication and on certain
premises that it believes to be reasonable. Accordingly, actual
60	Promoting Risk Management	performance may differ materially from such forecasts due to
a variety of factors.
66	Strengthening Corporate Governance	Guidelines Referenced
• The Integrated Reporting Framework of the International Financial
	72 Board of Directors and Officers	Reporting Standard (IFRS) Foundation
	• Guidance for Collaborative Value Creation of Ministry of Economy,
		Trade and Industry
	75 Messages from Outside Directors	Use of Abbreviations
76	Driving Digital Transformation	This report uses the following abbreviations.
HD: DOWA Holdings Co., Ltd.; ES: Environmental Management &
	(Data Utilization)	Recycling Business; MM: Nonferrous Metals Business;
	EL: Electronic Materials Business; MT: Metal Processing Business;
		TH: Heat Treatment Business; GL: Overseas locations
	DOWA REPORT 2022	05

Message  from the President

Continuing the March toward

Realizing Our Vision, Driven by

Our Founding Spirit and Strengths

SEKIGUCHI Akira

President and Representative Director

The Resolution of Social Issues as the Key to Sustainable Growth

Today, we find ourselves fraught with a variety of social issues. On top of the prolonged impact of the COVID-19 pandemic, we face rising geopolitical risks, including the conflict between Ukraine and Russia and the political status of Taiwan, and the increasing frequency of abnormal weather events stemming from climate change, among other problems. Companies must mount a response to these issues to have any hope of realizing sustainable growth. As a corporate group that engages in mining and smelting as its primary business, the DOWA Group has long worked to address social issues such as environmental conservation and coexistence with local commu- nities. Furthermore, current conditions have

reaffirmed the importance of remaining mindful of how our activities ensure the sustainability of society and sound business. This mindfulness is essential to the future growth of the Group.

Our unique recycling-oriented business model plays an important role in our efforts to resolve social issues. This model combines environmental management, recycling, and smelting-fields directly tied to resource recycling-with electronic materials, metal processing, and heat treatment- fields that can help build a recycling-oriented society. I truly believe that this model is a massive strength that can help us meet the demands placed on companies in the modern day to increase corporate value and build a sustainable society.

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DOWA HOLDINGS CO., LTD.

DOWA REPORT 2022

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