Shinagawa Kaihatsu Co. Ltd.

 Greetings

Towards the creation of a true recycling society Against the backdrop of the environmental problems of global warming, representative of modern and current environmental destruction, environmental protection and recycling is becoming more important each day with much greater expectations for the further advancement of a recycling society. Shinagawa Kaihatsu Co. Ltd., as a group company of the Sinanen Co., Ltd. (listed in the first section of the Tokyo Stock Exchange) has been providing society with energy and comfort for over 80 years, has an important role in the environmental protection field, and promotes waste recycling centering around waste wood recycling. We have many years of experience purchasing and selling wood chips, and following the completion of the Chiba Recycle Center in 2004, we established an in-house wood waste recycling and chip supply system. We have stably supplied eco-friendly products, such as fuel for industrial boilers, fuel for biomass power generation, and architectural/ paper making raw materials. With the goal of further business expansion, the metal scrap recycling business, which had been handled by the main body of the Sinanen Group, was transferred to us in 2012. Additionally, we have broadened the range of proposals for customers by offering support for the installation of vending machines with less packing materials and a decreased environmental load. Toward the creation of a true recycling society, we will keep on striving.

1

2

Metal scrap recycling business

Wasterecycled fuel/raw material supply business

3

Total support for waste disposal and recycling

4

Other supports for customers

 Introduction to our business operations

1

Waste-recycled fuel/raw material supply business

For many years, we have stably supplied wood chips recycled from wood waste, which was disposed of as general and industrial waste. In place of fossil fuel, whose future depletion is a major concern, wood chips serve as fuel for industrial boilers and for biomass power generation. In addition, high-quality wood chips are the raw materials for architectural materials and papermaking and then recycled into products again. The Chiba Recycle Center, built in 2004, added an in-house production capability to our conventional supply business to establish an integrated system from processing and recycling of wood waste to the supply of chips. In addition to wood chips, RPF (refuse paper and plastic fuel) is produced by recycling used paper and waste plastics. We promise stable quality and a stable supply of high-calorie fuel as a substitute for coal and coke.

Our Chiba Recycle Center / cooperative chip supplying company

Cooperative RPF supplying company

End user

Chip for thermal use

Chip for material use

2

Raw fuel for manufacturing cement

RPF

Metal scrap recycling business

For resource-scarce Japan, metal scraps from ferrous and non-ferrous metals are a very important resource that will never change in the future. In collaboration with companies nationwide that specialize in metal recycling, we purchase and sell metal scraps produced in factories and from the dismantlement of buildings and then turn the waste into steel raw materials and other metal products. Regarding building dismantlement, we introduce you highly reliable dismantling operators and coordinate the whole process from dismantlement to waste disposal.

Metal scraps

Processing by cooperative metal recycling company Compression process

Turned into steel products by electric furnace and blast furnace

Cutting process

Crushing process

Turned into non-ferrous metal products

 Introduction to our business operations

3

Total support for waste disposal and recycling

The ultimate responsibility for the disposal of waste is borne by the customer discharging wastes. Therefore, the most important factor is to find a reliable outsourcing disposal contractor. Based on our extensive knowledge and experience in waste disposal and recycling, we answer to customers’ every need related to waste while collaborating with business tie-up partners and clients. We will interview the customer about waste discharge conditions and, taking advantage of our

Customer discharging wastes

Shinagawa Kaihatsu Co. Ltd. Request

(with support by our network)

Disposal arrangement

Introduction of outsourcing disposal contractor capable of appropriate disposal

Proposal of waste separation and storage methods Proposal of waste collection and transport methods Reduction of total cost of disposal Support for disposal consignment contract and manifest management

Report on disposal

4

Aggregation of quantitative data on each waste and its report

Report on disposal

Disposal/recycling company

own network, propose an appropriate disposal method of wood waste and metal scrap as well as other waste.

Other supports for customers

In order to meet the varying needs of customers, we handle other merchandise. For example, packing materials, such as flexible containers, are frequently used at worksites handling waste and in other factories. In addition, we also support the installation of vending machines for the drinks that are essential in factories and offices. We propose optimum vending machines following your request.

 Functions of Chiba Recycle Center

Our goal is production of high value-added products as well as appropriate disposal of wood waste. The Chiba Recycle Center crushes delivered waste wood, classifies the produced wood chips in accordance with the use, and then transports the chips. The Chiba Recycle Center, conducting all the processes including waste reception inside the plant building, takes appropriate measures against noise and dust and has full-fledged accident prevention equipment, providing a complete production system. It is also situated in a convenient location, making it possible to receive wastes from a wide range of areas.

Overview of Chiba Recycle Center ・Approved process item: waste wood ・Processing capability: 300 tons/day (7,500 tons/month) ・Operation days: 300 days/year ・Area

Plant: 2,300 m2 Office: 80 m2 Total site: 5,740 m2

Woody chip sales composition

6% 17 % 77 %

Chips for thermal recycling Chips for material recycling

(Fiscal 2013 statistics)

Chips for raw fuel for manufacturing cement

 Features of Chiba Recycle Center [Waste wood recycling flow]

Construction waste/ industrial waste

Wood pallets

Waste wood

Reception at truck scale

Reception yard inside plant

Crusher

Finely crushes waste wood.

Metal detection

Conducts further metal detection among chips for material use to remove non-ferrous metal.

Selection by size

Sorts the chips by size

Chips for material use

Chips for thermal use

Raw materials for architectural material and papermaking

Boiler fuel

Waste wood of relatively good quality such as pillar materials and waste pallets are recycled into architectural raw materials, such as particleboard and insulation board or papermaking raw materials, such as paperboard.

A large percentage of waste wood is recycled into chips for thermal use. Biomass, typified by trees, absorbs the carbon dioxide that causes global warming and can be perpetually produced, so it serves as eco-friendly energy source.

Magnetic separation

Removes ferrous metal mixed in waste wood.

Chips for raw fuel for manufacturing cement The products in the smallest sizes after crushing are used as fuel for manufacturing cement, and ashes produced after combustion are recycled into the raw material for cement.

● Certification of superior industrial waste disposal operator

● Eco-Action 21

● Electronic manifest

Certification of superior industrial waste disposal operator is a system where the prefectural government or the government-ordinancedesignated city examines and certifies the industrial waste disposal operators that have passed a stricter standard than the normal licensing standard. In order to earn credibility for our waste disposal process, we acquired certification in February 2013.

Eco-Action 21 certification/ registration system was developed by the Ministry of the Environment as one of environment management systems. We acquired certification in January 2007 and have been working up to now toward the environmental contribution goal.

The Ministry of the Environment is promoting digitization of manifests. We joined the electronic manifest system JWNET and introduced e-reverse. com to further improve efficiency. By using the electronic manifest, we can follow the waste disposal situation in real time and provide customers with various benefits.

Shinagawa Kaihatsu Co. Ltd. [Headquarters] 1-4-22, Kaigan, Minato-ku, Tokyo 105-8525 [Chiba Recycle Center] 223-9, Shinminato, Mihama-ku, Chiba-shi, Chiba 261-0002 http://shinagawa-kaihatsu.co.jp/