ＴＲＥホールディングス（9247） – 〔delayed〕Supplemental materials for the Fiscal Year ended March 31, 2022

TRE HOLDINGS CORPORATION(Code: 9247, Prime Market, Tokyo Stock Exchange)Supplemental materialsfor the Fiscal Year ended March 31, 2022© 2022 TREホールディングス㈱ All Rights Reserved.May 16, 2022Table of Contents• Summary of Consolidated Results • TRE HOLDINGS CORPORATION Establishment of TRE HOLDINGS CORPORATION Company Profile Resource Circulation Business Scheme (1), (2) Business Description• FY03/22 Results Market Environment Net Sales and Operating Profit by Segment Consolidated Cash Flow Trends Capital expenditures, Depreciation FY03/23 Earnings Forecast• Medium-term Business Plan Progress of Medium-term Business Plan Movement in Results and Plans (by Segment) Progress in Integration Synergies At End of First Year after Business Integration… P3… P4 … P9… P16… P23• Topics2022) Construction Progress at Monzen Clean Park Co., Ltd. Accelerating Studies of Building a Business Scheme based on The Plastic Resource Circulation Act (enacted April Circular Economy Initiatives Recent Status of Renewable Energy Power Stations and Repair Plans for FY2022 Activities Targeting Glass Recycling© 2022 TREホールディングス㈱ All Rights Reserved.2FY03/22 ResultsSummary of Consolidated Cumulative FY03/22 ResultsIn the waste treatment and recycling businesses, increased added value and commercialization of transported materials were successful, and in the Resource Recycling business, higher recovery volumes of valuable materials resulting from enhanced sorting and higher market prices for resources helped as well. These factors made substantial contributions to overall earnings, so operating profit reached JPY7.6bn.Full-yearResultsFY03/22Full-yearForecast(millions of yen)ProgressNet sales68,23467,400101.2%Operating profitOrdinary profitProfit attributable to ownersof parent7,6597,5474,7427,430103.1%7,220104.5%4,420107.3% Dividends Dividend per shareOrdinary dividendFY03/22JPY20.0JPY5.0CommemorativedividendTotalJPY25.0Payout ratio: Over 30%⃰ Calculating based on dividends of JPY25 per share for results from October 2021- March 2022, plus TAKEEI’s interim dividend of 15 yen for Q2 of the fiscal year. The payout ratio is more than 36.1%.FY03/22Earnings per shareJPY110.79⃰ TRE HOLDINGS CORPORATION was established as a joint holding company on October 1, 2021, and for accounting purposes, TAKEEI CORPORATION is the acquiring company and REVER HOLDINGS CORPORATION is the acquired company. As a result, the consolidated financial results for the current fiscal year (April 1, 2021 to March 31, 2022) reflects the consolidated financial results for April 1, 2021 to March 31, 2021 for TAKEEI CORPORATION and the consolidated financial results for October 1, 2021 to March 31, 2022 for REVER HOLDINGS CORPORATION.⃰ YoY comparisons are not provided as this is the first fiscal year since the establishment of the Company.⃰ Earnings forecast shows figures revised upward on February 14, 2022. © 2022 TREホールディングス㈱ All Rights Reserved.3Establishment of TRE HOLDINGS CORPORATIONChallenges in the macro environmentEarthGlobal warmingJapanPopulation declineResource depletionPlastic pollutionMarket contractionAging infrastructureIndustry Inefficient managementLow reliabilitySuccession issuesSocial needsOur responseRealization of a highly advanced and sound material-cycle societyRealization of a zero-carbon societyTwo companies sharing the same passion for the global environment decided to come together to jointly invest capital and boost efficiency.On October 1, 2021, TAKEEI CORPORATION and REVER HOLDINGS CORPORATION established a joint holding company with the aim of leveraging all economic resources to create synergies.ＴＲＥホールディングス株式会社TryTechnologyRecyclingRenewableEnergyEarth EcologyTryDeveloping new technologiesEnhancing the Recycling businessPromoting the Renewable Energy businessPreserving the Global Environment© 2022 TREホールディングス㈱ All Rights Reserved.4Company ProfileCorporate PhilosophyTo contribute to the preservation of the global environment.EstablishmentOctober 1, 2021HeadquartersChiyoda-ku, TokyoRepresentative DirectorsNaoto Matsuoka, Chairman and CEOMitsuo Abe, President and COOCapital stockJPY10.0 billionNumber of employees2,103 employees (on a consolidated basis)Group BusinessesWaste treatment and recycling, resource recycling, renewable energy, environmental engineering, environmental consultingSubsidiaries, etc.39 subsidiaries, 6 equity-method affiliatesNumber of locations60 locations in Tokyo metropolitan area as well as Tohoku, Hokuriku, Koshin and Kansai regions,1 overseas location in ThailandKey customersMajor construction companies, home builders, major steel companies, trading companies, etc.© 2022 TREホールディングス㈱ All Rights Reserved.As of End-December 2021 5Resource Circulation Business Scheme (1)Material manufacturersMetal, plastic, wood, paper, concrete, etc. Product ManufacturersConstruction SitesSell powerMaterial CyclePower companiesBiomass power plantEstablish thinning and afforestation businesses to preserve healthy forestsProduce PRF(Solid fuel)Use residual heat from heat generationTomatowood ear etcBiomass power generationSupply PRF fuel and sub-materialsThermal CycleWaste treatment and recycling businessResource recycling businessWe operate mainly in the Kanto area, which has a large amount of waste and strong demand for recycled products and renewable energy.With one of the largest processing capacities, numerous locations, and a large fleet of vehicles, we are able to meet the social needs of a circular economy.Group volumeAppx. 2 million tons per yearConsumersCorporations and individualsFeedback on product development to promote a recycling-oriented societyWasteCollection & transportationOver 500 vehicles ownedIntermediate processing and recycling facilities60 locationsResource recycling and industrial waste treatment and recyclingIntermediate processingIndustrial waste, general waste, home appliances, end-of-life vehicles, thinned woods, etc…Final disposalTRE final disposal sites(Other companies’ final disposal sites)Use former disposal site as a golf course or for solar power generationvehicles ownedAppx. 500 vehiclesNumber of large crushers6crushers in Kanto regionNote: Large crushers refer to crushers with a main body horsepower of at least 1,000 horsepower.© 2022 TREホールディングス㈱ All Rights Reserved.6Resource Circulation Business Scheme (2)Renewable Energy businessRPF: A solid fuel made mainly from waste paper and plastics. It is high in calories and emits less CO2 than fossil fuels.We operate four woody biomass power plants centered on eastern Japan, mainly in the Tohoku region using unused forest resources such as thinned wood and logged wood as fuel, and two plants in the Kanto region using scrap wood and some RPF as fuel.In addition, we are strengthening our efforts in forest management (planning, staged logging, and afforestation) and promoting the expansion of our renewable energy business where resource circulation is viable.Annual woody biomass volume:600,000 tonsRPF:50,000 tonsAnnual power generated:Appx. 661,320 MWhO2O2CO2CO2Second thinningMain loggingBalanced stateAfforestationSource: MAFF 7ThinningWeedingEnvironmental Engineering & Environmental Consulting businessesAs for other business segments, we operate an environmental engineering business that plans, manufactures, and sells environmental equipment, and an environmental consulting business that conducts measurement certification operations, environmental protection work and investigates, and analyzes hazardous waste. © 2022 TREホールディングス㈱ All Rights Reserved.Business DescriptionWaste treatment and recyclingCollection & TransportationCollection & TransportationWe collect and transport industrial waste from construction sites, and crush, sort, remove foreign matter, and compress it at recycling plants.In particular, we are strengthening our efforts to commercialize construction materials and gypsum board through intermediate processing, as well as to convert paper waste and waste plastic into solid fuel (RPF), and to manufacture steel sub materials (Eco-Foam) using dust.In addition, we carry out intermediate processing and recycling of liquid waste, scrap, ash, etc., and final landfill disposal of residues and other materials that cannot be recycled.Waste treatment (construction-related)RecyclingLandfill (final disposal)(Note 1)Sorting & CrushingMetal ScrapRecyclingSell products and valuable resourcesFinal disposalResource recyclingMetal recyclingWe purchase rebar and steel frames from demolition sites, scrap wood from production plants, and end-of-life vehicles, and shear, compress, and crush them. We also accept waste home appliances (air conditioners, TVs, refrigerators, washing machines), small home appliances, and used furniture and fixtures from home improvement stores and convenience stores for manual dismantling, crushing, and sorting.Automobile recyclingHome appliance recyclingWaste treatment (metal)Shearing & CompressionRPF (Note 2) raw materialCrushing(Large crusher)SortingRPF(Note 2)Sell valuable resourcesRenewable energyWe generate woody biomass power using unused wood from thinned forests and branches as fuel, and produce fuel for power generation.We are also strengthening our efforts in forest management (planning, staged logging, and afforestation).Forest ManagementWoody biomass power generation, etc.Power retailingThinned wood & branchesWood chip productionPower GenerationHeat utilizationSell powerOtherWe provide measurement certification services, environmental protection work, and investigation and analysis of hazardous waste. We also develop, manufacture, and sell environmental equipment, plants, and special-purpose vehicles.Environmental ConsultingEnvironmental EngineeringResearch & AnalysisEnvironmental protection workPlanning, manufacturing & sales© 2022 TREホールディングス㈱ All Rights Reserved.Note 1: Use former disposal site as a golf course or for solar power generationNote 2: RPF is a solid fuel made mainly from recycled paper and waste plastics. It is high in calories and emits less CO2 than fossil fuels.8FY03/22 ResultsMarket EnvironmentNet Sales and Operate Profit by SegmentConsolidated Cash Flow TrendsCapital expenditures, DepreciationFY03/23 Earnings Forecast© 2022 TREホールディングス㈱ All Rights Reserved.9Number of New housing startsConstruction orders (50 largest companies)FY03/22 ResultsMarket EnvironmentNumber of homes85,00080,00075,00070,00065,00060,00055,00050,000Apr. 2019－Mar. 2020Apr. 2020－Mar. 2021Apr. 2021－Mar. 2022Apr. 2019－Mar. 2020Apr. 2020－Mar. 2021Apr. 2021－Mar. 2022(billions of yen)4,0003,5003,0002,5002,0001,5001,0005000The market has continued recovering, each month saw YoY increases, aided by consumers’ high interest in the living environment resulting from the COVID-19 pandemic.Amid strong movement, but orders fell YoY from February onward, and dropped 21.2% YoY in March. There are concerns about the effects of rapidly increasing material prices and other factors. © 2022 TREホールディングス㈱ All Rights Reserved.(Source: the Ministry of Land, Infrastructure, Transport and Tourism)10FY03/22 ResultsMarket EnvironmentSteel Scrap MarketUnit: yen/kgOctober 26, 2020:2050 Carbon Neutral declaration by (then) PM Yoshihide Suga706050403020100Steel scrap prices were at JPY47,000/ton (Tokyo Steel Utsunomiya Plant high grade price) at the beginning of October 2021, but skyrocketed to JPY56,000/ton by the end of the month due to a combination of sluggish steel scrap collection volume and higher demand from steelmakers. After that, prices fell gradually, adjusting the gap between domestic and export prices, but since February of 2022, in addition to increasing domestic prices driven by the rapid increase in export prices due to growing overseas demand, the conflict between Russia and Ukraine has led to increasing concerns about supply of iron and steel products from both countries. In the steel scrap market, prices are increasing rapidly, mainly in Europe, and at the end of March, domestic prices reached JPY64,500/ton. Prices remain high62.564.556.053.553.0 57.043.041.042.047.042.049.047.026.524.021.518.5 20.529.026.029.0Surge in October due to a supply-demand imbalanceRapid increase due to increased overseas demand and the growing concerns about steel scrap supply amid the Russia/Ukraine conflictIn the steelmaking industry, electric arc furnaces, which use steel scrap as raw material, emit less CO2 than blast furnaces, and prices are expected to remain high as demand for electric arc furnaces is expected to continue to rise amid the push to achieve carbon neutrality.ylraEidMetaLylraEidMetaLylraEidMetaLylraEidMetaLylraEidMetaLylraEidMetaLylraEidMetaLylraEidMetaLylraEidMetaLylraEidMetaLylraEidMetaLylraEidMetaLylraEidMetaLylraEidMetaLylraEidMetaLylraEidMetaLylraEidMetaLylraEidMetaLylraEidMetaLylraEidMetaLylraEidMetaLylraEidMetaLylraEidMetaLylraEidMetaLylraEidMetaLAprilMayJuneJulyAugust September October NovemberDecember January February MarchAprilMayJuneJulyAugust September October NovemberDecember January February MarchAprilYoYCurrent accounting period for the Resource Recycling business202020212022© 2022 TREホールディングス㈱ All Rights Reserved.Tokyo Steel Utsunomiya Plant Steel scrap (special grade) price11FY03/22 ResultsCumulative Net Sales and Operating Profit by SegmentFY03/22 Full-year resultsNet salesOperatingprofitOperatingprofit marginConsolidatedWaste treatment and recycling (Note 1)Resource recycling (Note 2, 3)Renewable energy (Note 4)Other businesses (Note 1, 5)Adjustments (Note 6)68,23425,14624,06812,6177,102(700)7,6595,1132,787(305)441(376)(millions of yen)Waste treatment and recycling• Profitability initiatives were successful; e.g., Enhanced sorting of valuable materials, and higher added value and commercialization of transported materials.In the gypsum board recycling business, transported volumes increased due to growth in new construction and demolition projects.•Resource recycling• Gains on sales of metals processed and sorted from waste increased due to continued high market prices and the growing spread (profit margin) amid rapidly increasing steel scrap market prices.11.2%20.3%11.6%－6.2%ーRenewable energyNote 1: The Accounting Standard for Revenue Recognition, etc. has been applied from the beginning of Q1 FY03/22.Note 2: For the resource recycling business, the consolidated results of REVER HOLDINGS CORPORATION, which is the acquired company foraccounting purposes in the business integration, reflect only the results for the six-month period from October 1, 2021 to March 31, 2022.Note 3: The resource recycling business includes JPY90 million of goodwill related to the business integration for the six months from October 1,2021 to March 31, 2022.Note 4: The renewable energy business includes JPY376 million of goodwill associated with the acquisition of Green Power Ichihara Co., Ltd.Note 5: Other businesses consist of the environmental consulting business and the environmental engineering business.Note 6: Adjustments to segment income and loss of -JPY376 million include -JPY383 million in companywide expenses that are not allocated to any reportable segment. Companywide expenses are general and administrative expenses that do not fall under any reportable segment.© 2022 TREホールディングス㈱ All Rights Reserved.• Despite a steady trend in stable operation systems, some operating rates declined due to temporary repair works and an earthquake in March.• Five electric power retailers were affected by high prices of LNG and other resources as well as increased purchase prices during the cold winter, but worked to mitigate the decline in profits in part by sales of electricity from power sources not subject to the Feed-in Tariff scheme.12FY03/22 ResultsConsolidated Cash Flow TrendsCash flows from operating activitiesCash flows from investing activitiesCash flows from financing activitiesNet increase (decrease) in cash andcash equivalentsCash and cash equivalents atbeginning of periodIncrease in cash and cashequivalents resulting from stocktransferCash and cash equivalents at end ofperiod(millions of yen) Main BreakdownFY03/22Cash flows from operating activitiesFY03/2211,017(2,149)(3,700)5,16710,2828,56424,014Profit before income taxesDepreciationAmortization of goodwillIncome taxes paidCash flows from investing activitiesIncome from national subsidiesPurchase of property, plant and equipmentCash flows from financing activitiesIncrease (decrease) in short-term borrowingsProceeds from issuance of bondsRedemption of convertible bondsProceeds from long-term borrowingsRepayments of long-term borrowingsDividends paid7,6625,016476(2,657)FY03/221,459(4,395)FY03/22(3,866)6,963(596)38(5,208)(839)© 2022 TREホールディングス㈱ All Rights Reserved.13FY03/22 ResultsCapital expenditures and Depreciation(millions of yen)FY03/23Full-year ForecastFY03/22Full-year results(Note 1)Capital expendituresDepreciation4,3955,01612,5476,189Note 1: Consolidated results of REVER HOLDINGS CORPORATION, which is the acquired company for accounting purposes in the business integration, reflect only the results for the six-month period from October 1, 2021 to March 31, 2022.TRE Group Basic Policies on New Investments• We will actively promote capital investment on facility improvements to implement advanced sorting and recycling technologies at each Group company, as well as to secure new locations, which will contribute to the realization of a circular economy. We will build a recycling business scheme targeting scrap plastic recycling and scrap solar panel recycling in particular.• We will promote capital investment to increase the amount of renewable energy generation from non-fossil fuels, as well as research and development to build a recycling scheme that takes CCUS (Note 2) into consideration, in order to contribute more directly to a carbon-free society.• We will promote DX to increase visibility of CO2 emissions in business activities, and strengthen proposal capabilities that tie into customers’ contributions to a carbon-free society. Main capital expenditures Main capital expenditures (plan)TAKEEI CORPORATIONMonzen Clean Park Co., Ltd.REVER CORPORATIONRenewal of equipment and vehicles,expansion of disposal sites, etc.Disposal site development workNewly installed dedicated line forelectronic waste.Full-yearPlan\1.17 billion2.1 billion\390 million1.4 billionMonzen Clean Park Co., Ltd.Disposal site construction etc.TAKEEI CORPORATIONFacility/vehicle upgrades, disposal site \250 million 250 millionShinshu Takeei CorporationFacility/vehicle upgradesEQUAL ZERO Inc.Renewal of equipment and vehicles\180 million 300 millionSorting line enhancements, etc.REVER CORPORATIONTakeei Green Recycling Co., Ltd.Hanamaki Biomass Chip Co., Ltd.Renewal of equipment and vehiclesInstallation of intermediateprocessing facilities, etc.\110 million 300 millionGreen Power Ichihara Co., Ltd.Machinery parts replacement, etc.\190 million 300 millionFuji Car Manufacturing Co., Ltd.Facilities/software upgradesPlan3.68 billion 3.5 billion490 million410 million310 million300 million© 2022 TREホールディングス㈱ All Rights Reserved.Note 2: CCUS is a generic term forcarbon capture and storage(CCS), a technologythat separates and capturesCO2 to be injected andstored in underground,and carbon captureUtilization (CCU), atechnology that reuses thecaptured CO2 for fuel production and chemicalproducts.14FY03/23 Earnings ForecastFY03/23 Earnings ForecastFY03/22(Note 1)(Full-year results)vs. salesYoY(Forecast)(Forecast)(Full-yearForecast)Net sales68,23494,200－ +38.1%45,50048,700(millions of yen)FY03/231H2HNote 1: The consolidated financial results reflect the consolidated financial results for April 1, 2021 to March 31, 2021 for TAKEEI CORPORATION and the consolidated financial results for October 1, 2021 to March 31, 2022 (Q2 and Q3) for REVER HOLDINGS CORPORATION.Operating profit7,6599,3009.9% +21.4%3,8005,500Ordinary profit7,5479,3009.9% +23.2%3,8005,500Profit attributable to ownersof parent4,7425,9006.3% +24.4%2,4003,500Waste treatment and recyclingResource recyclingRenewable energy• Expect continued impact from profitability improvement initiatives; e.g., enhanced sorting of valuable materials, etc.• Expect cost-reduction impact from capital investments in added value and commercialization of waste materials© 2022 TREホールディングス㈱ All Rights Reserved.• Expect a decline in resources received due to sluggish automotive production amid the semiconductor shortage, and a decline in waste home appliances because demand for replacement appliances has been moved up as more people stay at home.• Expect a decline in sales and profit due to limited operations in building reconstruction at REVER CORPORATION Fujisawa Office. • Planned selling unit price is JPY55,000/ton.Expect a temporary increase due to Russia/Ukraine conflict. • Expect a decline in operating days due to statutory inspections at Green Power Ichihara Co., Ltd., Hanamaki Biomass Power Generation Co., Ltd., Daisen Biomass Power Generation Co., Ltd., and Tamura Biomass Power Generation Co., Ltd.• At Takeei Green Recycling Co., Ltd., expect an increase in electricity sales unit prices due to increase in biomass ratio.15Medium-term Business PlanProgress of Medium-term Business Plan (Review of 2nd and 3rd year numerical targets )Progress of Financial TargetsMovement in Results and Plans (by Segment) Progress in Integration SynergiesAt End of First Year after Business Integration© 2022 TREホールディングス㈱ All Rights Reserved.16Medium-term Business PlanProgress of Medium-term Business Plan (Review of 2nd and 3rd year numerical targets )ResultsPlanFY03/21First year of Medium-term plan (FY03/22)Second year of Medium-term plan (FY03/23) Third year of Medium-term plan (FY03/24)Full-yearresults(Note 1)Full-yearresults(Note 1, 2)YoYFirst year ofMedium-term plan(Note 4)Second year ofMedium-term planProgressChangeThird year ofMedium-term planThird year afterreviewChangeSecond yearafter reviewEarningforecast(Note 2)Net sales73,47090,584+23.3%89,700101.0%90,00094,200+4.7%92,00098,000+6.5%Operating profit6,72710,326+53.5%10,100102.2%8,4009,300+10.7%9,00010,150+12.8%9.2%11.4% +24.5%11.3% 101.25%9.3%9.9% +5.8%9.8%10.4% +5.9%Profit attributable toowners of parent4,0847,248+77.5%6,930104.6%5,4605,900+8.1%5,8906,440+9.3%Operating profitmarginEarnings per share(Note 3)ー¥141.1ー¥131.7107.1%¥106.3¥114.8+8.0%¥114.6¥125.3+9.3%As we presented earnings that far exceeded the medium-term plan announced in October 2021, we made an upward adjustment in the plan’s first year forecast in February 2022, but we deferred reviews of the second and third year forecasts, because it was only the first year since the integration, and because of uncertainties around the pandemic.Here, we have reviewed numerical targets for the second and third years, taking into account the current conditions, including rapidly increasing material market prices.© 2022 TREホールディングス㈱ All Rights Reserved.Note 1: Results for the merged companies, TAKEEI CORPORATION and REVER HOLDINGS CORPORATION, for the period from April to March of the following year, have been combined to make YoY comparisons. Note 2: Forecasts for operating profit include impact from goodwill related to the business integration (JPY90 million for FY03/22, and JPY180 million for FY03/23 onward). Note 3: Earnings per share is calculated based on 51,362,030 shares, which is the number of issued shares at the end of FY03/22 minus the number of treasury shares at the end of the same year, to facilitate understanding of the actual progress of the medium-term business plan.Note 4: Forecasts for the first year of the medium-term management plan have also been adjusted upward based on the full-year consolidated earnings forecast disclosed on February 14, 2022.17Medium-term Business PlanProgress of Financial TargetsFinancial targetsROE8% or moreCapital-to-Asset ratio40% or moreRatingBBB or higher1st yearof PlanRPM9.2% or higherFY03/22 ResultsEnd-March 2022FY03/22Results11.6%*248.3%TRE’s expectedrating11.2%11.4%*1*2Calculated for the 1st yearof the Medium-term Business Plan*1. Calculated for the period of FY03/22. (April 1, 2021 to March 31, 2022 for TAKEEI CORPORATION; October 1, 2021 to March 31, 2022 for REVER HOLDINGS CORPORATION)*2. Calculated for the 1st year of the Medium-term Business Plan. (April 1, 2021 to March 31, 2022 for both TAKEEI CORPORATION and REVER HOLDINGS CORPORATION)© 2022 TREホールディングス㈱ All Rights Reserved.18Medium-term Business PlanMovement in Results and Plans (by Segment) ConsolidatedWaste treatment andrecyclingResource recycling(Note 1, 2)FY03/21FY03/22(Actual) (Note 1)(Actual) (Note 1,3)FY03/23(Forecast)FY03/24Third year of Medium-term planApr. 2020-Mar. 2021 Apr. 2021-Mar. 2022YoYApr. 2022-Mar. 2023YoYApr. 2023-Mar. 2024YoY73,4706,72790,584+23.3%94,200+4.0%10,326+53.5%9,300 ー9.9%98,00010,150+4.0%+9.1%9.2%11.4% +24.5%9.9% ー13.4%10.4% +4.9%24,73825,146+1.6%25,829+2.7%5,113+47.4%4,786 ー6.4%27,0284,836+4.6%+1.0%20.3% +45.0%18.5% ー8.9%17.9% ー3.4%46,418+47.8%47,100+1.5%5,454 +105.0%4,361 ー20.0%49,5004,791+5.1%+9.9%8.5%11.7% +38.7%9.3% ー21.2%9.7% +4.5%(305)ーーー3882.8%ーー865 +122.9%5.7% +107.3%441+26.4%6.2% +21.5%420 ー4.8%5.3% ー14.3%753+79.3%8.5% +60.1%(700)(376)(710)(655)(2,520)(1,095)Net salesOperating profitOperating profitmarginNet salesOperating profitOperating profitmarginNet salesOperating profitOperating profitmarginNet salesOperating profitOperating profitmarginNet salesOperating profitOperating profitmarginNet salesOperating profit3,46814.0%31,4082,6603252.8%3495.1%(962)(76)Renewable energy11,45712,617+10.1%14,088+11.7%15,151+7.5%Other businesses6,8287,102+4.0%7,893+11.1%8,841+12.0%Adjustments© 2022 TREホールディングス㈱ All Rights Reserved.Note 1: Results of REVER HOLDINGS COPORRATION for the period from April to March of the following year are included in the resource recycling business, using the same method as the medium-term business plan targets, to facilitate understanding of the actual progress of the medium-term business plan and YoY comparisons.Note 2: Figures for the Resource Recycling business include impact from goodwill related to the business integration (JPY90 million for FY03/22, and JPY180 million for FY03/23 onward). Note 3: The renewable energy business includes JPY376 million in goodwill associated with the acquisition of Green Power Ichihara Co., Ltd.19Medium-term Business PlanMovement in Results and Plans (by Segment) *FY03/21 and FY03/22: “Results”; FY03/23 and FY03/24: “Plan” Net sales(millions of yen) Operating profit(millions of yen)Other businesses Resource recycling Renewable energy ConsolidatedWaste treatment and recycling Waste treatment and recycling• FY03/23: Expect decline in profits due to the end of disaster waste treatment support business in Fukushima and Nagano. TAKEEI CORPORATION to continue enhancing RPF and other manufacturing structures at recycling plants.• FY03/24: Expect start of Monzen Clean Park Co., Ltd. to contribute to results. © 2022 TREホールディングス㈱ All Rights Reserved.Resource recycling• Planned selling unit price is JPY55,000/ton.• FY03/23: Expect slowdown in automobile production, decline in waste home appliances, limitations on operations at REVER CORPORATION Fujisawa Office, and increased depreciation from capital investments.• FY03/24: Regular operations at REVER CORPORATION Fujisawa Office. Renewable energy• FY03/23: Expect establishment of stable operation systems at six biomass power plants. • Expect change in biomass ratio at Takeei Green Recycling Co., Ltd..• FY03/24: Expect improved profitability through review of maintenance systems at electric power retailers and power plants.20Medium-term Business PlanProgress in Integration SynergiesReviewed figures in Plan, but continued to promote basic strategies.• Promote creation of solar panel and automotive glass recycling business, where • Promote facilities improvements, and implement concepts for advanced sorting • Add value to and commercialize unused resources (RPF, steelmaking sub-Collaboration with RE100 companiesPromote waste power generationExpand recycling businessrecycling needs are growing.facilities.materials, etc.)Promote energy businessTRE GroupRecycle unused resourcesTechnology developmentRare metal collectionSolar panel recyclingCross-sellingNew businessBoost RPF productionEstablishment of new controlled waste disposal facilitiesContribute to achieving the SDGs• Strengthen efforts to create forest management business that is open and useful to surrounding communities. Promote use of residual heat in agriculture. • Expand supply of renewable power, including from our own power sources• Promote plans for thermal waste utilization facilities in the Tokyo metropolitan area.Develop technologies (establish business models)• Establish a waste plastic recycling business scheme• Explore new recycling business plans centered on technological developmentSustainability Management• Promote transparency of CO2 emissions from business activities and risk response scenario analysis.• All directors work together in contributing to achieving SDGs. Incineration (externally processedPre-mergerBiomass power generationWaste disposalRecyclingMetal recyclingFinal disposal sites© 2022 TREホールディングス㈱ All Rights Reserved.Medium-term Business PlanAt End of First Year after Business IntegrationFormed a project team for disclosure of the integrated reportThe TRE Group formed a cross-functional project team for the disclosure of the integrated report, in keeping with a proposal from the Task Force on Climate-related Financial Disclosures (TCFD). We have identified “materialities” for contributing to ESG management and to achieving SDG targets, identified medium and long-term risks and opportunities, and identified items for key sustainability activities. At the same time, we are preparing various types of data for disclosure.Activities of the TAKEEI Foundation for SDGs Promotion and change of name to “TRE HOLDINGS Foundation for SDGs Promotion“Through the TAKEEI Foundation for SDGs Promotion, in FY03/22, we participated in the “Minato Ward Cleanup Campaign” hosted by Minato Ward, Tokyo, and also contributed to the Humanitarian Crisis Relief Fund for Ukraine via the Japan Red Cross Society. The name of this Foundation will be changed to the “TRE Foundation for SDGs Promotion,” so that the TRE Group can carry on and expand these activities. We will continue to contribute to achieving SDG targets, and conduct activities that will tie into increased awareness of the environment and human rights among all TRE Group employees.The TRE Group’s disaster supportThe TRE Group was involved in business supporting the treatment of waste and refuse arising from Typhoon No.19, which struck in October 2019, mainly through EQUAL ZERO Inc. During FY03/23, we will continue to contribute to the Great East Japan Earthquake Fukushima Recovery Project, and to leverage the experience that we have accumulated in various regions.Membership in Japan Disaster Treatment Systems (http://jdts.or.jp/) will be switched from TAKEEI to TRE HOLDINGS, as the TRE Group actively undertakes disaster support activities.© 2022 TREホールディングス㈱ All Rights Reserved.22TopicsConstruction Progress at Monzen Clean Park Co., Ltd.Accelerating Studies of Building a Business Scheme based on The Plastic Resource Circulation Act (enacted April 2022)Circular Economy InitiativesActivities Targeting Glass RecyclingRecent Status of Renewable Energy Power Stations and Repair Plans for FY2022© 2022 TREホールディングス㈱ All Rights Reserved.23TopicsPhoto taken January 2022Construction Progress at Monzen Clean Park Co., Ltd.Landfill areaPhase 15.16haPhase 28.46haPhase 35.75haTotal17.26haLandfill capacity836,000 m31,731,000 m3864,000 m33,431,000 m3Landfill period11 years, 7 months24 years, 6 months11 years, 9 months47 years, 10 months(Note) The sum of the landfill areas for phase 1 through phase 3 do not match as some areas overlap.Future development Construction is expected to last approximately four years. Current operations mainly consist of the construction of leachate treatment facilities and development of landfill areas.2019Construction plan10～1210～12 1～31～3 4～610～1210～1220212020201820227～91～34～64～67～91～37～94～67～9 10～12PreparationLoggingTurbidity control workLandscape constructionDisaster prevention pond constructionDrainage, pipe construction constructionImpermeable constructionLeachate treatment facility constructionFinal cleanup, etc.© 2022 TREホールディングス㈱ All Rights Reserved.Note: The construction plan is tentative and subject to change according to the progress of construction.We will continue to carry out construction safely with the environment in mind. Phase 1 construction is scheduled to be completed in November 2022.24TopicsAccelerating Studies of Building a Business Scheme based on The Plastic Resource Circulation Act (enacted April 2022)The TRE Group uses large-scale facilities and various types of sorting equipment to respond to a wide range of recycling needs in the waste plastic recycling field. Especially, we are promoting the development of technology to improve sorting functions (materialization of the Sorting Center concept), and high-efficiency power generation, while building a new cooperative scheme with a view toward collaborations involving industry, academia, and government.Acceleration of sorting technology andprocess development• We are working to materialize the concept of a facility that aims to strengthen the sorting process function through extensive demonstration opportunities, cooperation between engineering departments at arterial industry and the TRE Group (e.g., Fuji Car Manufacturing Co., Ltd.), and technological development through industry academia collaboration. Optimizing exit strategies• With a view to collaborating with arterial industry, we are looking into providing products that match the needs of consumers in order to implement new recycling technologies (discussions are underway with several trading companies and manufacturers under a non-disclosure agreement).Establishing a business scheme for recycling plastic resources• We will establish recycling bases with a view toward accepting general waste and applying optimal recycling methods according to quality (currently exchanging opinions with universities, local governments, major companies.)Studies of tie-up with Sumitomo ChemicalWe are investigating and analyzing waste plastics processed at the TRE Group’s crushing and sorting plants, targeting the reuse of waste plastics from end-of-use vehicles. We also calculated environmental impact evaluations for recycled plastic products from manufacturing to recycling and compared them existing products made from virgin materials, and found that figures for recycled plastic products using waste plastics were superior from the perspective of CO2 reductions in LCA*1). Moving forward, we will refine data and enhance selection using resin sorting lines at NNY Corp., and promote waste plastic material recycling to reduce environmental impact.*1 LCA: Life Cycle Assessment. A process for clarifying the environmental impact of products from material procurement to manufacturing and disposal. 2525© 2022 TREホールディングス㈱ All Rights Reserved.TopicsCircular Economy InitiativesNewly installed E-waste line at the Higashimatsuyama, REVER COORPORATIONSolar panels have been installed, and 26% of the electricity used to operate the facility will be provided by renewable energy sourcesNewly installed a dedicated E-waste (crusher) line in response to the global increase in E-waste.We will collaborate with the manual dismantling line for ATMs and other electronic devices containing confidential information operating at the KumagayaPlant of Nakadaya Corp., and strengthen our efforts to add value by crushing and removing foreign substances from the circuit boards after dismantling. By crushing electronic scrap, we sort out iron and aluminum, then ship the gold, silver, and copper to major refining companies in Japan.Expected treatment volume: 700t/mon. *Electronic scrap / circuit boardsNewly installed resin sorting line at Nasu Plant, NNY Corp.Newly installed a dedicated sorting line to strengthen resin sorting in an effort to promote plastic recycling.At the Nasu Plant of NNY Corp., we are currently sorting 600 tons of resin and other materials per year from the dust (residue) that remains after sorting mixed metals (Note 1) for recycling. By introducing a new resin sorting line, we will boost our material recycling volume to 1,800 tons per year and contribute even more to recycling. In addition, we expect to be able to sort 420 tons of dust for use as alternative fuels such as RPF (Note 2).Valuable resources (resins)600tScheduled to start operation in July 2022Conversion of waste plastics into alternative fuelsValuable resources (resins)+420t1,800t26Note 1. Mixed metals: A mixture of non-ferrous metals such as aluminum, copper, stainless steel, etc., and plastics.Note 2. RPF: A solid fuel made mainly from waste paper and plastics. It is high in calories and emits less CO2 than fossil fuels.© 2022 TREホールディングス㈱ All Rights Reserved.Recent Status of Renewable Energy Power Stations and Repair Plans for FY2022TopicsRecent status (at end of FY2021)Green Power Ichihara Co., Ltd.Takeei Green Recycling Co., Ltd.Tamura Biomass Power Generation Co., Ltd.Five electric power retailers: Stable operations continue despite the impact of facility repairs and additional construction work in Q1.: Stable operations gradually being established, as the outlook for changes in the biomass ratio becomes clear.: Undertook in-house operation and maintenance of power generation facilities, and established a stableoperation system.: The business environment was impacted by rapidly increasing market prices during the cold winter whenelectricity demand to come under pressure, so purchase prices increased temporarily. Nevertheless, theseretailers are working to alleviate the decline in profits, for example through market sales of electric powergenerated using solid RPF (not subject to FIT) at Green Power Ichihara Co., Ltd.Regular repairs planned for FY2022Company nameQ1Q2Q3Q4Description of repairs(E.g., regular repairs., facility enhancements)Tsugaru Biomass Power Generation Co., Ltd.Parts replacement, etc.Hanamaki Biomass Power Generation Co., Ltd.BoilersDaisen Biomass Power Generation Co., Ltd.Boilers, turbinesTakeei Green Recycling Co., Ltd.Parts replacement, etc.〇Green Power Ichihara Co., Ltd.Boilers, turbinesTamura Biomass Power Generation Co., Ltd.Boilers〇〇◎◎〇◎〇〇◎〇〇◎： Statutory inspections, regular repairs (boilers: every 2 yrs.; turbines: every 4 yrs.) 〇： Regular inspections, regular repairs© 2022 TREホールディングス㈱ All Rights Reserved.27TopicsActivities Targeting Glass RecyclingJW Glass Recycling Co., Ltd. joins TRE GroupIn the recycling business, JW Glass Co., Ltd. collects sheet and bottle glass and sorts, removes foreign materials, and crushes the glass, and then sells this “cullet” to sheet and bottle glass manufacturers and glass wool manufacturers as raw materials. FY03/19FY03/20FY03/21Representative DirectorHidekazu YukimoriNet salesOperating profit1,1741491,236210CapitalJPY30 millionMain areas of businessCollection, recycling, and sales of glass waste(millions of yen)1,194178Company nameJW Glass Recycling Co., Ltd.Establishment5 October, 2004HeadquartersShinKiba, Koto-ku, Tokyo*JW Glass Recycling Co., Ltd. earnings are not included in FY03/23 earnings forecast.What glass recycling means to TREOperates 4 plantsShinKiba PlantTokyoNamporo PlantHokkaidoTatebayashiPlantGunmaOigawa PlantShizuokaBased on the corporate philosophy of “contributing to the preservation of the global environment,” the TRE Group strives to be a Comprehensive Environment Enterprise that contributes to a highly advanced and sound material-cycle society and a carbon-free society, by expanding and diversifying its business fields.Going forward, we will take on the challenge of recycling waste glass, including glass from buildings and end-of-use vehicles, as well as solar panels, where demand for disposal is expected to grow in the future. By recycling waste glass, we will reduce the consumption of natural resources, and contribute to reducing CO2 emissions at manufacturing plants, as well as reducing final landfill disposals of residues. TRE GroupSolar panelsBuilding glassAutomotive glassJW Glass Recycling Co., Ltd.CulletSortRemove foreign matterCrush© 2022 TREホールディングス㈱ All Rights Reserved.Glass & glass wool manufacturersSheet glassBottlesGlass wool28Disclaimers• The information contained in this document, with the exception of those relating to past and present facts, arebased on judgments made by the Company based on certain assumptions and currently available information.These judgments and assumptions contain uncertainties and may be affected by future changes in theeconomic environment and other factors. As a result, future results of the Company and the Group may differfrom projections.• The forward-looking statements in this document are made as of the date of this document (or as otherwisespecified therein), and the Company has no obligation or policy to update such information.•In addition, the information contained in this document regarding companies other than the Company and theGroup is quoted from publicly available information, and the Company has not verified or guaranteed theaccuracy or appropriateness of such information. The Company assumes no responsibility for any damagesresulting from the use of this document.© 2022 TREホールディングス㈱ All Rights Reserved.29© 2022 TREホールディングス㈱ All Rights Reserved.