Expansion and one-stop integration of the environmental recycling business

「In the Environmental Recycling business, the situation remains challenging, with price competition with rivals in medical waste treatment continuing and the volume of waste entrusted to us itself trending lower due to changes in waste generators' recycling awareness. In this environment, we are pursuing efforts to expand projects involving difficult-to-process waste in which we specialise, including the treatment of chlorofluorocarbons, for which intake volumes have increased in recent years, and the collection and treatment of metal waste contaminated with hazardous substances such as lead, conducted in cooperation with major general contractors.」

「医療廃棄物処理分野において厳しい競合環境が続く中、下期は産業廃棄物処理分野における大型の個別案件の寄与により業績が改善しましたが、処理量の減少に伴うコスト増などの影響により、売上高は前期対比298百万円（4.8％）減収の5,945百万円、営業利益は同127百万円（18.9％）減益の546百万円となりました。」

「In this business segment, revenue was affected by the continued challenging competitive environment in medical waste treatment and higher costs associated with lower treatment volumes. Revenue declined by ¥432 million, or 13.6%, year on year to ¥2,750 million, while operating profit fell by ¥283 million, or 79.3%, to ¥74 million.」

「In this business segment, intensifying price competition with rivals in medical waste treatment and higher costs due to problems with treatment equipment resulted in lower profit despite higher revenue. Revenue increased by ¥8 million, or 0.3%, year on year to ¥3,183 million, while operating profit declined by ¥19 million, or 4.9%, to ¥357 million.」

「In this business segment, revenue was affected by a temporary suspension of incoming shipments associated with major scheduled maintenance at the Yamaguchi facility, the Group's largest treatment site, as well as a decline in medical waste treatment projects as COVID-19 subsided. Revenue declined by ¥883 million, or 15.5%, year on year to ¥4,802 million, while operating profit fell by ¥685 million, or 54.1%, to ¥580 million.」

「In this business segment, demand for waste treatment remained firm, but revenue and operating profit were affected by a temporary suspension of incoming shipments associated with major scheduled maintenance at the Yamaguchi facility, the Group's largest treatment site, as well as a decline in medical waste treatment projects as COVID-19 subsided. Revenue declined by ¥666 million, or 17.3%, year on year to ¥3,174 million, while operating profit fell by ¥490 million, or 56.6%, to ¥375 million.」

「In this business segment, demand for waste treatment remained firm, but the volume of orders declined as COVID-19-related medical waste treatment projects subsided. Revenue declined by ¥263 million, or 13.9%, year on year to ¥1,635 million, while operating profit fell by ¥207 million, or 44.0%, to ¥263 million.」

「In this business segment, we continued to secure COVID-19-related medical waste treatment projects, but revenue was affected by higher fuel and other prices. Revenue increased by ¥357 million, or 4.9%, from the previous fiscal year to ¥7,645 million, while operating profit declined by ¥406 million, or 19.9%, to ¥1,638 million.」

「In this business segment, COVID-19-related medical waste treatment projects continued to increase, but revenue was affected by higher fuel and other prices. Revenue increased by ¥495 million, or 9.5%, year on year to ¥5,686 million, while operating profit declined by ¥39 million, or 3.0%, to ¥1,266 million.」

「In this business segment, COVID-19-related medical waste treatment projects increased due to the impact of the seventh wave, but revenue was also affected by higher fuel and other prices and a decline in the volume of high-priced spot projects awarded. Revenue increased by ¥306 million, or 8.6%, year on year to ¥3,840 million, while operating profit declined by ¥75 million, or 8.0%, to ¥865 million.」

「In this business segment, business remained strong, supported by the continued securing of medical waste treatment projects related to COVID-19. As a result, revenue increased by ¥161 million, or 9.2%, year on year to ¥1,898 million, while operating profit rose by ¥24 million, or 5.3%, to ¥470 million.」

「In this business segment, orders for difficult-to-process waste projects increased steadily, and we also secured medical waste treatment projects related to COVID-19. Business therefore remained strong. As a result, revenue increased by ¥584 million, or 8.7%, from the previous fiscal year to ¥7,288 million, while operating profit rose by ¥688 million, or 50.8%, to ¥2,044 million.」

「In this business segment, revenue increased by ¥378 million, or 7.9%, year on year to ¥5,191 million as a result of securing COVID-19-related and spot projects, while operating profit rose by ¥517 million, or 65.6%, to ¥1,305 million.」

「In this business segment, the volume of industrial waste generated increased compared with the same period of the previous year, and we secured COVID-19-related treatment projects. As a result, revenue increased by ¥479 million, or 15.7%, year on year to ¥3,534 million, while operating profit rose by ¥513 million, or 120.0%, to ¥940 million.」

「In this business segment, the volume of industrial waste generated increased compared with the same period of the previous year, and we continued to secure COVID-19-related waste treatment projects. As a result, revenue increased by ¥233 million, or 15.5%, year on year to ¥1,738 million, while operating profit rose by ¥231 million, or 107.3%, to ¥447 million.」

「In the Environmental Recycling business, expanding waste treatment capacity has long been an issue because melting treatment using electric furnaces is constrained by steel production volumes. We will expand capacity by constructing environmentally responsible treatment facilities and through M&A. At the same time, leveraging the strength of our highly reliable electric-furnace melting treatment, we will strengthen the treatment of difficult-to-process waste, including automotive lithium-ion batteries and carbon fibre, for which demand is expected to increase, as well as asbestos, which has become a social issue, while continuing to provide high-quality services.」

「In this business segment, the volume of industrial waste generated increased as production activity in sectors such as automotive recovered, while volumes of medical waste handled also increased and spot projects were secured. Revenue nevertheless declined by ¥2 million, or 0.0%, year on year to ¥4,812 million, while operating profit increased by ¥95 million, or 13.7%, to ¥788 million.」

「In this business segment, volumes of both medical and industrial waste generated declined due to the impact of COVID-19, while we worked to secure spot projects. As a result, revenue declined by ¥148 million, or 4.6%, year on year to ¥3,055 million, while operating profit fell by ¥14 million, or 3.2%, to ¥427 million.」

「In this business segment, some production activity in the manufacturing sector was suspended due to the impact of COVID-19, resulting in a decline in the volume of industrial waste treated. Revenue declined by ¥167 million, or 10.0%, year on year to ¥1,504 million, while operating profit fell by ¥71 million, or 24.9%, to ¥215 million.」

「In this business segment, revenue was affected by lower iron scrap prices, higher processing costs and a decline in spot projects. Revenue declined by ¥160 million, or 3.2%, year on year to ¥4,814 million, while operating profit fell by ¥121 million, or 14.9%, to ¥693 million.」

「In this business segment, revenue was affected by lower iron scrap prices, higher processing costs and a decline in spot projects. Revenue declined by ¥60 million, or 1.8%, year on year to ¥3,203 million, while operating profit fell by ¥91 million, or 17.0%, to ¥442 million.」

「In this business segment, we continued to actively pursue high-value-added processing projects. Revenue declined by ¥11 million, or 0.7%, year on year to ¥1,671 million, while operating profit increased by ¥18 million, or 6.9%, to ¥287 million.」

「In this business segment, progress was made in securing high-priced projects involving difficult-to-process materials, along with some spot projects. Revenue increased by ¥376 million, or 8.2%, year on year to ¥4,975 million, while operating profit rose by ¥255 million, or 45.5%, to ¥814 million.」

「In this business segment, the volume of waste plastics and other materials handled increased as China tightened its waste import regulations, while revenue also benefited from securing spot projects. Revenue increased by ¥275 million, or 9.2%, year on year to ¥3,263 million, while operating profit rose by ¥253 million, or 90.3%, to ¥532 million.」

「In this business segment, in addition to actively pursuing high-value-added processing projects, the volume of waste plastics and other materials handled increased as China tightened its waste import regulations. As a result, revenue increased by ¥137 million, or 8.9%, year on year to ¥1,683 million, while operating profit rose by ¥124 million, or 86.0%, to ¥268 million.」

「While deepening and expanding the application of harmless melting treatment using electric furnaces, we will strengthen collaboration with other companies to diversify the materials and methods treated, with the aim of providing one-stop solutions for industrial waste treatment.」

「③ Environmental Recycling Business In this business segment, progress was made in securing high-priced projects involving difficult-to-process materials from October onward. However, revenue declined by ¥274 million, or 5.6%, year on year to ¥4,599 million, while operating profit fell by ¥159 million, or 22.2%, to ¥560 million.」

「In this business segment, we pursued high-priced projects involving difficult-to-process materials, but the competitive environment became increasingly challenging. Revenue declined by ¥282 million, or 8.6%, year on year to ¥2,988 million, while operating profit fell by ¥228 million, or 44.9%, to ¥280 million.」

「In this business segment, we actively pursued high-value-added processing projects, but the competitive environment became increasingly challenging. Revenue declined by ¥239 million, or 13.4%, year on year to ¥1,546 million, while operating profit fell by ¥218 million, or 60.2%, to ¥144 million.」

「Date of business combination: 1 October 2016　Legal form of business combination: Business transfer, with 共英産業株式会社 as the transferor and the Company as the transferee」

「The business segment actively pursued high-value-added processing projects, but competition intensified. Revenue decreased by ¥58 million, or 3.1%, year on year to ¥1,785 million, while operating profit decreased by ¥12 million, or 3.2%, to ¥363 million.」

「We aim to further expand the environmental recycling business, one of the pillars supporting our group. By drawing on our expertise in non-hazardous melting treatment using electric furnaces and the network developed through many years of accumulated business experience, we will meet the growing need for the safe and reliable treatment of increasingly diverse waste.」