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Message for Stockholders and Investors

Basic Business Policy

On the basis of its slogan, "Create a Better Environment,"the Daiseki Group seeks to expand its business—the intermediate treatment of industrial waste, centered on recycling—while contributing to society. Environmental preservation is now a matter of global concern, focusing attention and expectations on the field of industrial waste disposal.
In 1995, Daiseki became the first waste management company in Japan to go public, and we are doing our best to earn the confidence of society and industry. We will press ahead to contribute to environmental preservation and to be a reliable partner both to industry and our shareholders.

Medium- to Long-Term Management Strategy

The Daiseki Group's business chiefly comprises the intermediate treatment of industrial waste, centered on recycling. In Japan, due to the strengthening of environmental regulations and heightening social concern over the environment, the industrial waste treatment business is moving away from an industry made up of tiny, small and medium-sized businesses to on that concentrates on consigning treatment to companies focused on appropriate recycling.
To meet the need for the appropriate treatment and recycling of increasingly diverse and complex industrial waste, the Daiseki Group is expanding the range of items it treats and recycles by improving its technical capabilities and introducing new equipment. In addition, we will strive to expand our area of operations and business capabilities, primarily in the large regional markets of Kanto and Kansai, through proactive capital investment and operational expansion. Going beyond the intermediate treatment of industrial waste, we will work closely with our subsidiaries, particularly Daiseki Eco. Solution Co., Ltd., to meet customer needs involving environmental risks and augment our Group capabilities as a total planner of corporate environmental activities, including the surveying and treatment of polluted soil, environmental analyses, zero emissions support and sales of treatment equipment. In addition, through our 2007 acquisition of Daiseki MCR Co., Ltd., we entered the business of metal recycling, specifically lead recycling. More recently, in 2010 we acquired System Kikou Co., Ltd., a major company in the treatment of oil sludge for large-scale tanks.
Looking ahead, we intend to actively develop M&A strategy in the areas of environmental preservation and recycling. Based on these measures, the Daiseki Group aims to make further progress as a business group that creates a better environment.

Hideki Hashira, President