I would like to express our sincere gratitude for your continued support.
On March 15, 2024, the bill for the Act concerning the Advancement of Recycling Businesses, etc. to Promote Resource Circulation was approved by the Cabinet. This bill recognizes that the recycling of valuable resources is effective not only in achieving decarbonization but also in addressing social issues such as economic security and regional revitalization. It calls for strengthening the competitiveness of businesses engaged in resource circulation. ARE Holdings is resolute in meeting these demands of our times and is committed to advancing with renewed determination.
In our precious metals recycling business, the amount of gold recycled has doubled over the past three years, reaching 30 tons in the previous fiscal year. If our Bando Plant, which produces recycled gold, were considered a gold mine, its production scale would far exceed that of Japan’s largest gold mine and rank fifth globally. While the efforts of our sales and factory teams have been essential, a key factor behind this achievement is that the price of the gold produced by our recycling has exceeded that of gold mined from traditional sources. It is indeed groundbreaking for the price of recycled products to surpass that of products made from natural resources. This is because recycling does not alter the natural state of resources, prevents resource depletion, and generates virtually no carbon dioxide emissions, thus achieving both a circular economy and carbon neutrality. It is no exaggeration to say that new, civilization-enhancing value has been found in recycled production. Such activities and achievements embody what we, as a company, aspire to achieve globally in all our business areas for the future.
In our environmental preservation business, in fiscal 2023, a share exchange was conducted involving Japan Waste Corporation, a consolidated subsidiary of the Company, and Renatus Co., Ltd. As a result, Renatus became the wholly owning parent company, and Japan Waste became the wholly owned subsidiary company. I anticipate that Japan Waste‘s nationwide network, which has been developed by the Company, will enhance Renatus’s competitiveness. From the fiscal 2024 onwards, Renatus will be accounted for as an equity-method affiliate, with its share of profit and loss from equity-method investments recorded as operating profit and loss.
For the fiscal 2023, we achieved revenue of 322.3 billion yen and operating profit of 12.4 billion yen. We have decided on a year-end dividend of 45 yen per share. To enhance shareholder value while addressing social issues, we unveiled our strategic scenarios for 2030 in the ARE Medium- to Long-Term Plan & Aspiration announced on April 26. We are committed to diligently pursuing this plan and its aspirations. We appreciate your continued support as we move forward.
June 2024
Tomoya Higashiura
Representative Director, President & CEO