(C)2010 DOWA Holdings Co., Ltd.

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Greeting

DOWA CSR (Corporate Social Responsibility)

Future Article I Contribution to Improving Environments in Asian Countries through Eco-friendly Recycling Business

Future Article II DOWA Recycling Complex

CSR Management

• Relationship with Stakeholder
• CSR Guideline
• Basic Environment Policy
• Management System
• Environmental & Social Goals and their Present Status

CSR Initiatives through Business Activities

• DOWA Electronics Materials
• DOWA Metaltech
• DOWA Thermotech
• DOWA Eco-System

• Social Performance
  • Relationship with Society
  • Working together with Local Communities
  • Relationship with central and local governments and with industry
  • Relationship with Customers
  • Relationship with Employees
  • Feature Summer Environmental Event for Families
  • Developing Human Resources/Employment and Treatment of Employees
  • DOWA's Work/Life Balance
  • Health and Safety/Compliance
  • Comment from Junior Staff
• Environmental Performance
  • Environmental Management
  • Business Activity and Its Related Environmental Load
  • INPUT
  • OUTPUT
  • Our Efforts toward Preventing Global Warming
  • Our Efforts toward Biodiversity
• Economic and Business Management Performance
  • Economic Report & Environmental Accounting
  • External Economic Benefit Evaluation EEBE(R)
• Business Overview
  • Corporate History and Environmental Commitment
  • Questionnaire Results
  • Basic Requirements
  • Third Party's Opinion

GRI Guideline

Editorial Line

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.

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

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