1 dowa HOLDINGS CO., LTD. 14-1, Sotokanda 4-chome, Chiyoda-ku, Tokyo 101-0021, Japan URL: Cover photo (from the top): Silver powder compound semiconductor wafer dowa HOLDINGS CO., LTD. Magnetic powder Annual Report 2017. Printed in Japan For the year ended March 31, 2017. Through its business operations on the CONTENTS. 2 Corporate History 12 Business Review 30 Subsidiaries and Affiliates world stage, dowa seeks to contribute 4 Our Five Core Business 22 CSR Policy and Planning 32 Financial Section Segments 24 Corporate Governance 69 Corporate Data 6 Message from Management 27 Board of Directors and Officers to the creation of prosperous 10 Financial Highlights 28 Global Network communities and the emergence of a resource recycling society.
2 Silver powder Heat treatment furnaces compound semiconductor wafer Metals recycling Copper powder Precious Zinc metal-electroplating processing Metal-ceramics Waste treatment substrates Platinum group metals recycling High-performance copper alloys Cautionary note regarding forward-looking statements Within this report, present plans, forecasts, strategies, beliefs, and other statements relating to the Company and the Group that are not historical facts are forward-looking statements about future performance. These forward-looking statements are based on assessments by the Company's management using information available at the time of writing, and many assumptions and opinions that form the basis for these statements derive from information that carries significant risk and uncertainty.
3 Due to a variety of factors, actual performance may differ materially from the performance expressed or implied in these statements. Actual performance may be influenced by such factors as economic conditions, particularly changes in consumer trends and exchange rates, changes in legal and administrative systems, pressure due to competitors' price and product strategies, a reduction in the salability of the Company's existing and new products, interruption of production, infringement of the Company's intellectual property rights, rapid technological innovation, and damaging court rulings in major lawsuits. However, factors that may influence performance are not only limited to those listed here.
4 In this report, fiscal 2016 represents the year ended March 31, 2017. LEDs ANNUAL REPORT 2017 1. Corporate History 1880 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010. Fujita Gumi (1881 ) dowa MINING CO., LTD. (1945 ) dowa HOLDINGS CO., LTD. (2006 ). Expands to Southeast Asia (acquires Modern Asia 2009 Environmental HOLDINGS , Inc.) Environmental Management Since its founding as a nonferrous metal mining and smelting company following the purchase of the Kosaka mine in Akita & Recycling Business Prefecture, the dowa Group has worked from the field of basic materials to support economic development, in line with the 1996 Soil remediation business commences modernization of Japan.
5 Later, as the Company was a witness to a turning point in Japan's domestic mining industry, it took steps toward business diversification, with the environmental conservation technologies and infrastructure accumulated in the 1989 Starts precious metals recycling business Nonferrous Metals business becoming a cornerstone of the Environmental Management & Recycling business. Together with the utilization of recovered metals and initiatives taken to raise the added value of metals, these efforts have become the 2000 Acquires Chiba-based waste treatment company source of the Electronic Materials business, the Metal Processing business, and the Heat Treatment business.
6 At present, the Company has positioned these five business divisions as core business segments, and is working toward 1986 Develops waste treatment business in Hanaoka area enhancing competitiveness and global development. 1977 Starts waste treatment business in Yanahara area 1915 / 1916 Acquires Hanaoka mine, Yanahara mine Mine closings 1991 / 1994 Nonferrous Metals Business 1994 Operations start at Tizapa zinc min, Mexico 1884 Purchases Kosaka mine Mine closings 1990. Full operations of a smelting facility for combined 1898 Pyrometallurgy operations for black ore commence in Kosaka New flash furnace commence operations 1967 2008 recycling commence Founding (September 18, 1884) AKITA ZINC CO.
7 , LTD. is established to operate a seaside zinc smelter 1971. Established as a nonferrous metal mining and smelting company through the pur- chase from the Meiji government of the 1991 Platinum group metals recycling business commences Kosaka mine in Akita Prefecture, which was Japan's leading silver mine at the time. Okayama Works is established Just over a decade later, the Company fell Manufacturing of sulfuric acid 1953 Sulfuric acid manufacturing is suspended 2003 Electronic Materials into financial crisis due to the depletion of silver ore reserves. Nonetheless, it suc- Business ceeded in developing a technology for High-quality iron oxide manufacturing begins 1968 Business is suspended 2000.
8 Refining a complex sulfide ore, known as black ore, which helped revive the Okayama Works Company as a copper mine. (currently dowa ELECTRONICS 1983 Production of magnetic powder for tapes begins MATERIALS OKAYAMA CO., LTD.). 1965 Production of reduced iron powder begins The end of World War II and rising demand for basic materials When the war ended, the Company sought a fresh start, changing its corporate name to dowa 1982 compound semiconductor wafer manufacturing begins in Akita area MINING CO., LTD. Then, responding to the boom in agricultural products, the Company boosted production at its Yanahara mine in Okayama Prefecture by expanding its output of iron sulfide ore, which is the raw material for sulfuric acid in fertilizers.
9 In addition, in the high-growth 1973 Metal compound and chemical production begins in Honjyo area period of the Japanese economy, when the demand for basic materials increased due to rapid industrialization, dowa steadily grew its mining operations and Nonferrous Metals business. 1973 Plating process business begins in Honjyo area Metal Processing Overall view of the Kosaka mine Business smelting site (1907). Toyosaki Plant Co.,Ltd. is made into a subsidiary, copper rolled product manufacturing begins 1957. An evolving business environment leads to business diversification 2002 Processing base for copper rolled products is established in China The impact of yen appreciation, a result of the shift to the floating exchange rate system, caused domestic metal prices to decline precipitously, severely buffeting the domestic mining business.
10 This was a turning point in this business, which until then Copper rolled product manufacturing for electronic had been the Company's mainstay business. Faced with this situation, the Company 2007 parts begins bolstered its competitiveness in the smelting and processing businesses, and also took measures to develop its businesses further to downstream sectors, sought new businesses, and commenced manufacturing overseas in its efforts to advance its 1993 Metal-ceramics substrates manufacturing begins diversification in its business operations. Copper rolled products plant in 1958. Hamamatsu Tokyo Heat Treatment Co., Ltd. becomes a subsid- Heat Treatment Business (currently dowa METAL CO.)