Amita Holdings ＜2195＞ is developing a “social design business” that provides integrated support for sustainable corporate management and regional management. The mission is to realize “a sustainable society = a society where natural capital and human capital increase as it develops,” and since its establishment in 1977, it has developed an ESG market that contributes to solving social issues, starting with environmental issues, with a circulation system.

The company promotes business utilizing each other's knowledge and networks through active collaboration and cooperation with companies, local governments, etc. In recent years, a joint venture codo advisory (headquarters: Fukuoka-shi) was established in 2022 with MCP Group, which is Asia's largest independent asset management company, to provide transition strategy support services for decarbonized management. Also, in 2024, a joint venture company Circular Links (headquarters: Chiyoda-ku, Tokyo) was launched with Sumitomo Mitsui Finance & Leasing Group to provide outsourcing ICT services for environmental management operations utilizing the know-how and networks of both companies. We have realized product development, technology development, sales force strengthening, etc. that would be difficult on our own, and are developing our business.

The number of companies and local governments with a track record of transactions reached 1,562 (2023 results). The specific business details are as follows.

<1>Integrated support for sustainable corporate management

The “Cyano Project (Cyano Project),” which supports the transition of companies to sustainable management, provides integrated support for sustainable procurement of raw materials and transition to a recycling-oriented business model (from things to function sales: service-sizing), etc. all at once, from consultation on strategy planning to execution/operation using operation menus. The characteristic is that it crosses the three areas of “circular economy,” “carbon neutrality,” and “nature positive,” which are the three important elements of sustainable management, and proposes business model changes/transitions from an overall optimal perspective.

■Operation menu (some excerpts)

・Double zero emissions service

A service provided by the subsidiary Amita Circular (Headquarters: Chiyoda-ku, Tokyo) that uses a unique “blending technology” to recycle approximately 1,600 types of waste per year into recycled resources to replace natural resources. Achieve zero waste and decarbonization for emission source companies, and sustainable procurement for recyclable resource user companies. We have 8 manufacturing bases for recycled resources in Japan and overseas.

・Sustainable BPO services

An outsourcing ICT service that supports corporate environmental management operations by the joint venture Circular Links. Risks and costs associated with complex environmental management operations are reduced by acting on behalf of specialized staff and providing ICT systems in response to governance risks, etc. due to lack of human resources in client companies or issues of knowledge succession.

<2>Environmental certification review service

A service that certifies and examines traceability to support the sustainable use of natural capital such as forests and oceans.

The subsidiary Amita (headquarters: Chiyoda-ku, Tokyo) is carrying out fair and impartial environmental certification examinations based on third party certification systems such as forest certification FSC and fishery certification MSC/ASC as a certification organization and inspection company.

<3>Overseas business

Subsidiary AMITA CIRCULAR DESIGN SDN. BHD. (Amita Circular Design) (Headquarters: Kuala Lumpur, Malaysia) is developing a 100% recycling business for industrial waste in Malaysia by applying technology cultivated through domestic business. We are also promoting the development of recycling-oriented markets in the Asia/Pacific region, such as Taiwan, South Korea, Indonesia, and Palau. In addition, it also handles import/export business of alternative raw materials and fuels, and investigations of environmental risks and business feasibility when developing business overseas.

<4>Support for sustainable community development

In response to the four major issues of local governments (population decline, declining birthrate and aging population, increase in social security expenses, employment reduction), local residents, local governments, and companies are working as a trinity to promote the development and development of a regional model “Co-Creation City (Co-Creation City),” which is solved by “amplifying relationships” and “promoting circulation.” Above all, we are focusing on the development and provision of mutual aid community-type resource collection stations “MEGURU STATION (Meguru Station),” and as of the end of 2024/10, it has been deployed at 13 locations in 4 regions, including Tachiarai Town in Fukuoka Prefecture, Kobe City in Hyogo Prefecture, the Tsukigase area in Nara City, and Nagakute City in Aichi Prefecture.

Business performance has been progressing smoothly. In the consolidated financial results for the 3rd quarter of the fiscal year ending 2024/12 (2024/1/9) announced on 2024/11/12, sales increased 7.7% from the same period last year to 3.491 billion yen, operating income increased 33.9% to 0.3 billion yen, ordinary profit increased 27.7% to 0.352 billion yen, and quarterly net profit attributable to parent company shareholders increased 91.5% to 0.277 billion yen.

On the sales side, in response to soaring resource prices and rising sustainable procurement needs, cement substitute raw fuel (a recycled resource made by blending accepted industrial waste according to the standards required by cement manufacturers). It is used as a fuel substitute for coal and heavy oil and as a substitute for raw materials such as clay in cement manufacturing processes.) Usage needs are high, and handling volume has increased at Gamagori Recycling S.C., which is an industrial waste recycling facility of Aichi Kaiun (Headquarters: Nagoya City), which is an industrial waste recycling facility at the Himeji Recycling Plant and Amita Ground Resources Manufacturing Companies. Also, an increase in handling volume in the “silicon recycling business,” which recycles silicon slurry waste liquid discharged from the semiconductor industry at the Kitakyushu Recycling Resource Plant, contributed. As for operating income, although there were investments in human resources, which are the source of value creation, and advance investments to build relationships and implement strategies, the gross profit margin improved 1.1 points to 46.6%, which had the effect of increasing sales. An increase in investment income due to the equity method involved in the Malaysian business contributed to ordinary income. The large rate of increase in quarterly net profit is due to the recording of a corporate tax adjustment amount (profit) of 0.087 billion yen due to an increase in deferred tax assets.

The consolidated earnings forecast for the fiscal year ending 2024/12 leaves the initial forecast unchanged, with sales up 6.0% from the previous fiscal year to 4.809 billion yen, operating profit up 14.6% to 0.54 billion yen, ordinary profit up 12.8% to 0.599 billion yen, and net income attributable to parent company shareholders up 20.4% to 0.371 billion yen.

Future measures include 1) restructuring product designs and strengthening marketing measures to expand orders for the Cyano Project. 2) Strengthening business operations for sustainable BPO and ICT services through the joint venture Circular Links. 3) Strengthening the system for providing recycled resources to further capture alternative resource needs. 4) Expansion of production volume in the silicon recycling business. 5) Overseas headquarters AMITA CIRCULAR DESIGN SDN. With a joint venture established by BHD in Indonesia, preparations for full-scale development of the 100% recycling business within the same country have been accelerated. 6) It cites promotion of sustainable urban development in the same city, including the introduction of MEGURU STATION, through projects commissioned by Buzen City in Fukuoka Prefecture.