1

2008年度決算説明会

November 10, 2011

* Forward-looking statements made in this document, such as business forecasts, are based on the information available at this time and on certain premises that the Company assumes to be reasonable. Actual performance may differ materially from such forecasts due to a variety of factors.

Dowa Holdings Co., Ltd.

2

Operating ResultsOperating Results

Fiscal 2011 First Half SettlementFiscal 2011 First Half Settlement

3

Production at smelters and other facilities in the Tohoku region was adversely affected by the Great East Japan Earthquake. Kosaka Smelting & Refining and Akita Zinc resumed operation in April, and Onahama Smelting & Refining resumed operation in July. However, ingot production was down from a year ago.

Because of the earthquake, orders and income from free metals declined, and equity method income or loss worsened in association with the shutdown of Onahama Smelting & Refining in the first half. As a result, ordinary income fell 3.1 billion yen. In addition, an extraordinary loss of 0.7 billion yen was posted. We estimate that the adverse impact of the earthquake is a fall of 3.8 billion yen in income before income taxes and minority interests.

Operating income and ordinary income decreased from a year ago, reflecting a temporary profit from sales of semi-finished products and other factors in the previous fiscal year.

The performance of automotive products, which declined in the first quarter, recovered in the second quarter to a level exceeding that of before the earthquake.

The electronic materials business appeared to be declining in the second half. The market environment is challenging. The yen is strong (77 yen against the dollar). Considering declining ingot prices, we forecast that ordinary income will be 22 billion yen, roughly on a par with the year-ago level, for the full year.

Overview of Operating ResultsOverview of Operating ResultsFY2010 Results FY2011 Forecasts Change

H1Results

Full YearResults

H1Results

Full YearForecasts H1 Full Year

Net Sales 181.0 379.8 188.9 390.0 7.9 4% 10.2 3%Operating Income 14.0 22.9 10.8 22.0 (3.2) (23%) (0.9) (4%)Ordinary Income 14.5 23.3 9.8 22.0 (4.7) (32%) (1.3) (6%)Net Income 7.5 8.5 4.7 11.0 (2.8) (37%) 2.5 29%

Billion yen

4

Major Products:Major Products:Production Volume/Sales Volume ResultsProduction Volume/Sales Volume Results

FY2010 Results FY2011 H1Results

Q1 Q2 Q3 Q4 Q1 Q2

EnvironmentalManagement &

Recycling

Waste processing volume 100 98 107 98 106 99Soil remediation volume at Hanaoka 100 87 174 139 99 90

Home electric appliance recycling volume 100 116 130 110 89 93

Nonferrous Metals

Copper production amount (Kosaka, Onahama) 100 95 88 79 9 67

Zinc production amount (Akita) 100 57 80 68 85 66

ElectronicMaterials

Compound semiconductor 100 103 98 80 76 95LED 100 101 106 102 121 120Silver powder 100 113 114 101 122 99

Metal Processing Copper strip products 100 94 93 97 80 97Heat Treatment Heat treatment 100 106 110 107 90 114

Indexes (100 for Q1 of FY2010)

5

Income StatementsIncome StatementsMillion yen

Q1 Q2 H1 Q1 Q2 H1 Q1 Q2 H194,603 86,446 181,049 93,270 95,637 188,907 △ 1,332 9,190 7,857 77,859 75,926 153,785 81,682 82,859 164,542 3,823 6,932 10,756 16,743 10,520 27,264 11,587 12,778 24,365 △ 5,156 2,257 △ 2,898 6,662 6,565 13,227 6,696 6,840 13,536 33 274 308

10,081 3,954 14,036 4,891 5,937 10,829 △ 5,190 1,983 △ 3,207 Other Income 1,646 1,153 2,799 911 700 1,611 (734) (453) (1,187)

Interest and dividend income 415 38 454 352 34 386 (63) (4) (67)Equity in earnings of affiliates 725 586 1,311 0 0 0 (725) (586) (1,311)Other income 505 528 1,033 559 665 1,225 54 137 191

Other Expenses 1,095 1,162 2,257 1,874 731 2,606 779 (431) 348Interest expenses paid 596 560 1,157 510 493 1,004 (85) (66) (152)Equity in losses of affiliates 0 0 0 911 (214) 696 911 (214) 696Other expenses 499 601 1,100 453 451 905 (45) (149) (195)

Ordinary Income 10,632 3,945 14,578 3,928 5,906 9,834 △ 6,704 1,960 △ 4,743 Extraordinary Profits 86 38 124 391 88 480 305 50 355

Gain on sale of property, plant and equipment 3 7 10 6 11 17 3 4 7Gain on sale of investment securities 38 0 38 0 0 0 (38) 0 (38)Subsidy 0 14 14 342 0 342 342 (14) 328Other profits 44 16 60 42 77 119 (2) 60 58

Extraordinary Losses 235 1,440 1,676 1,084 538 1,623 849 (902) (53)Loss on disposal of property, plant andequipment 53 83 136 166 78 245 113 (4) 108Loss on valuation of investment securities 14 1,093 1,107 0 250 250 (14) (842) (857)Impairment loss 0 59 59 25 79 104 25 19 45Loss on disaster 0 0 0 607 4 611 607 4 611Other 168 204 372 285 125 410 117 (78) 38

10,483 2,543 13,026 3,235 5,456 8,691 (7,248) 2,913 (4,334)3,172 1,189 4,361 1,763 1,900 3,663 (1,409) 710 (698)

787 306 1,094 123 137 261 (664) (168) (832)6,522 1,047 7,570 1,347 3,418 4,766 (5,174) 2,371 (2,803)

Cost of Sales

FY2010 H1 FY2011 H1 Change

Net Income

Gross ProfitSelling, General, and Administrative Expenses,R&D ExpensesOperating Income

Income Before Income Taxes and MinorityInterestsIncome Taxes

Minority Interests in Income

Net Sales

6

Consolidated Results: Consolidated Results: YearYear--onon--Year Comparison (by Segment for Year Comparison (by Segment for 1st Half))

FY2010 H1 FY2011 H1 ChangeBreakdown of Sales, Operating IncomeNet Sales Operating

IncomeOrdinaryIncome Net Sales Operating

IncomeOrdinaryIncome Net Sales Operating

IncomeOrdinaryIncome

EnvironmentalManagement& Recycling

37.0 1.2 1.2 44.2 1.3 1.0 7.1 0.1 (0.1)

In the intermediate waste treatment business, sales rose 0.3 billion yen, and income increased 0.1 billion yen with increases in treatment volumes at Eco-System Sanyo and Eco-System Akita. Although the real estate market was sluggish, the business posted a sales rise of 0.3 billion yen and an income rise of 0.1 billion yen in soil remediation, focusing on onsite treatment. The recycling business recorded results on a par with the year-ago level with the recycling of home appliances continuing to perform well.

NonferrousMetals 90.4 5.2 6.4 76.6 2.7 2.4 (13.7) (2.4) (3.9)

ElectronicMaterials 33.8 3.9 4.0 48.0 2.9 3.2 14.2 (0.9) (0.7)

Demand for LD, LED, and other semiconductor products declined slightly, and sales of gallium and indium materials and compound semiconductors declined. As a result, sales and profit in the semiconductor business fell 0.6 billion yen and 0.2 billion yen, respectively. The electronic materials business saw sales rise sharply, climbing 14.8 billion yen, reflecting a hike in sales quantities of silver powder for solar cells and other appliances and rising silver quotations. However, income dropped because of increases in depreciation costs and research expenses. In functional materials, income remained roughly unchanged from a year ago despite the effect on users of disruptions in the supply chain caused by the earthquake.

MetalProcessing 37.3 2.6 2.6 39.0 2.2 2.3 1.7 (0.4) (0.2)

In metal processing, sales quantities of rolled copper products declined with a fall in automobile production and a decrease in demand for semiconductors in association with the earthquake. Sales rose 1.3 billion yen, reflecting rises in copper quotations, but income dropped 0.4 billion yen because of a decrease in sales quantities. The electroplating business achieved profit that was on a par with the year-ago level by expanding market share. The thermal device (metal-ceramic substrate) business enjoyed solid domestic and overseas demand for industrial machinery and electric railways, and steps to increase yields and productivity produced a 0.2 billion rise in sales and 0.05 billion yen increase in profit.

HeatTreatment 7.7 0.5 0.5 9.2 0.9 0.8 1.4 0.3 0.3

The heat treatment business saw a 0.3 billion yen fall in sales and a 0.3 billion yen decrease in profit, attributable to a decline in the volume of treatment associated with lower automobile production due to the earthquake. The industrial furnace business was solid, chiefly backed by foreign demand and certain projects that were brought forward. Sales climbed 1.7 billion yen, and income rose 0.6 billion yen.

Other/Elimination (25.3) 0.3 (0.2) (28.3) 0.5 (0.2) (2.9) 0.1 0.0

Total 181.0 14.0 14.5 188.9 10.8 9.8 7.8 (3.2) (4.7)

Ratio of operating income to that of previous term Billion yen

Free metal revenue

Currency exchange

and conditions

Differences in market

andbook prices

Estimated marketprice

Resale ofunfinished products

Other Total

Copper 0.1 (0.2) 0.2 1.6 (1.4) 0.3 0.6 Rare metals (1.1) (0.1) (0.1) (1.2)

Zinc (0.5) (0.2) 0.3 (0.8) (0.2) (0.6) (1.9)Common 0.1 0.1 Operating

income (1.5) (0.4) 0.5 0.8 (1.6) (0.2) (2.4)

Billion yen

7

(Year(Year--onon--Year Comparison by Segment for 1st Half)Year Comparison by Segment for 1st Half)

Analysis of Factors in Growth and Decline Analysis of Factors in Growth and Decline in Ordinary Incomein Ordinary Income

Billion yen

Environmental Management& Recycling

NonferrousMetals

ElectronicMaterials

MetalProcessing

HeatTreatment Other Total

(0.4) (0.4)

0.8 0.2 1.0

0.4 0.4

0.8 0.2 1.0

(1.9) (1.9)

0.2 (0.4) (0.6) 0.3 (0.6)

0.2 (1.9) (0.4) (0.6) 0.3 (2.4)

0.2 0.1 (0.3) 0.1 0.2

(0.2) 0.1 (0.1) (0.2)

(1.7) 0.0 0.3 (1.3)

(0.3) (1.4) (0.1) (0.2) (2.0)

(0.3) (2.9) (0.4) 0.1 (3.3)

(0.2) (4.0) (0.8) (0.2) 0.3 (4.7)

Equity method income or loss

Total

Other (change in fixed costs)

Changes in depreciation

Others total

FY2011 H1 Results - FY2010 H1 Results

Other (resale of unfinished products, etc.)

Effects of changes in exchange rate, metal prices, andconcentrate purchasing termsA gain or loss on raw material payments (including a gain orloss on hedging instruments and on a lower cost basis)

Free metal income difference (price difference)

Total effects from fluctuations in exchange rate and metalmarket prices

Free metal income difference (volume difference)

Change in orders following change in demand, etc.

Total changes associated with changes in businessenvironment

8

Fiscal 2011 Consolidated Earnings ForecastsFiscal 2011 Consolidated Earnings Forecasts

FY2010Results

FY2011Forecasts Change

Net Sales 379.8 390.0 10.2

Operating Income 22.9 22.0 (0.9)

Ordinary Income 23.3 22.0 (1.3)

Net Income 8.5 11.0 2.5

Billion yen

Exchange rate and metal prices(Reference) Nearest

H1 average H2 average H1 average for H2 October average

Exchange rate: (\/$) 89.0 82.5 79.8 77.0 76.7Copper: ($/t) 7,135 9,144 9,072 7,000 7,348Zinc: ($/t) 2,020 2,355 2,240 1,900 1,859Indium: ($/kg) 547 545 732 650 620

FY2010 FY2011

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Second Half of Fiscal 2011Second Half of Fiscal 2011Assumptions and SensitivitiesAssumptions and Sensitivities

(Operating Income/Interim Period)(Operating Income/Interim Period)

* Sensitivity is based on assumptions that the Company assumes to be reasonable at the time of publication. Actual effects may differ materially due to a variety of factors.

Assumptions FluctuationSensitivity

(Volume differences andraw material conditions)

¥/$ ¥77.0 /$ ±¥1 /$ 170

Copper 7,000 $/t ±100 $/t 20

Zinc 1,900 $/t ±100 $/t 150

Indium 650 $/kg ±100 $/kg 200

Million yen/Interim Period

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Forecasts of Consolidated ResultsForecasts of Consolidated ResultsComparison with Previous Fiscal Year (by Segment)Comparison with Previous Fiscal Year (by Segment)

Billion yenFY2010 Results FY2011 Forecasts Change

Net Sales OperatingIncome

OrdinaryIncome Net Sales Operating

IncomeOrdinaryIncome Net Sales Operating

IncomeOrdinaryIncome

EnvironmentalManagement& Recycling

79.7 2.8 2.8 88.0 4.9 5.5 8.3 2.0 2.6

NonferrousMetals 188.8 5.1 6.2 165.0 3.4 3.8 (23.8) (1.7) (2.4)

ElectronicMaterials 70.5 7.1 7.4 93.0 6.0 6.3 22.4 (1.1) (1.1)

MetalProcessing 75.8 5.4 5.3 77.0 5.0 5.1 1.1 (0.4) (0.2)

HeatTreatment 16.9 1.4 1.3 19.3 1.9 1.8 2.3 0.4 0.4

Other/Elimination (51.9) 0.9 0.1 (52.3) 0.8 (0.5) (0.3) (0.1) (0.6)

Total 379.8 22.9 23.3 390.0 22.0 22.0 10.1 (0.9) (1.3)

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Balance Sheets (Consolidated Results)Balance Sheets (Consolidated Results)Accounts March 31,

2011September

30, 2011 Change Accounts March 31,2011

September30, 2011 Change

Assets LiabilitiesCurrent Assets 167,453 166,841 (611) Current Liabilities 124,232 123,851 (381)

Cash and time deposits 17,231 5,990 (11,241) Notes and accounts payable 33,367 32,013 (1,354)Notes and accounts receivable 55,484 51,844 (3,640) Short-term borrowings 54,290 63,647 9,356 Inventories 79,791 89,094 9,302 Corporate bonds due within one year – – –Deferred tax assets 6,605 4,133 (2,472) Accrued income taxes, etc. 2,732 1,794 (937)Other current assets 8,755 15,877 7,121 Ingot leasing liabilities 11,986 8,988 (2,997)Allowance for doubtful accounts (416) (97) 318 Other current liabilities 21,855 17,408 (4,447)

Long-Term Liabilities 102,143 95,697 (6,446)Fixed Assets 172,708 170,270 (2,437) Corporate bonds 10,000 10,000 –

Tangible fixed assets 104,101 104,420 318 Long-term debt 73,829 66,860 (6,969)

Intangible fixed assets 8,099 8,200 101 Reserve for employees‘ retirement benefits 10,637 10,444 (192)

Investments in securities 52,315 49,497 (2,818) Deferred tax liabilities 1,888 2,015 126 Deferred tax assets 5,542 5,596 53 Other long-term liabilities 5,788 6,377 588 Other investments 2,852 2,681 (171) Total Liabilities 226,376 219,548 (6,827)Allowance for doubtful accounts (204) (126) 77 Net Assets

Shareholders’ Equity 105,188 106,927 1,739 Common stock 36,437 36,437 –Additional paid-in capital 26,362 26,362 –Retained earnings 48,152 49,893 1,740 Treasury stock, at cost (5,763) (5,765) (1)

Adjustments for Valuation Foreign Currency Translation and Others 1,654 3,133 1,478

Unrealized gains on available-for-sale securities 5,024 2,846 (2,178)

Net deferred hedge income (865) 2,708 3,574 Foreign currency translation adjustments (2,504) (2,421) 82

Minority Interests 6,942 7,502 559 Total Net Assets 113,785 117,563 3,778

Total Assets 340,161 337,111 (3,049) Total Liabilities and Net Assets 340,161 337,111 (3,049)Interests-bearing debt 138,119 140,507 2,387 Cash and time deposits 17,231 5,990 (11,241)Actual balance 120,888 134,517 13,628 Equity ratio 31.4% 32.6% 1.2%ROA 7.0% 5.8% (1.2%)

Million yen

12

Consolidated Statements of Cash FlowsConsolidated Statements of Cash FlowsMillion yen

FY2010H1

FY2011H1 Change

I. Cash Flows from Operating ActivitiesIncome before income taxes and minority interest 13,026 8,691 (4,334)

Adjustments (non-cash)Depreciation 8,796 8,703 (92)Equity in (earnings) losses of affiliates (1,311) 696 2,008 Change of business, impairment loss – – –(Gain) loss due to sale or disposal of securities, property, plant and equipment 194 335 141 Loss on valuation of investment securities 1,069 250 (818)Increase in allowance for doubtful accounts (1,632) (310) 1,321 Interest income and expenses and dividends 54 1,602 1,548 Income taxes paid (1,481) (2,777) (1,296)Other, net 436 (1,704) (2,140)

Total for profit/loss items 19,152 15,489 (3,662)Increase/decrease in assets/liabilities

Increase/decrease in trade receivable/payable 5,701 1,977 (3,724)Increase/decrease in inventories (6,243) (8,998) (2,754)Other, net (3,502) (8,602) (5,099)

Total for balance sheet items (4,045) (15,623) (11,578)Net cash provided by (used in) operating activities 15,107 (133) (15,240)

Free cash flow 7,712 (9,138) (16,851)

FY2010H1

FY2011H1 Change

II. Cash Flows from Investing ActivitiesAcquisition of property, plant and equipment (7,394) (9,004) (1,610)Sale and acquisition of securities (1,261) (2,671) (1,409)Change in loans 157 20 (137)Proceeds from disposal and sale of property, plant and equipment 44 43 –Other, net (58) 1,699 1,758 Net cash used in investing activities (8,512) (9,913) (1,400)

III. Cash Flows from Financing Activities

Change in borrowings and corporate bonds (15,320) 2,458 17,778 Purchases of treasury stock and issuance of common stock 25 (1) (27)Cash dividends paid (3,149) (3,168) (19)Other, net (212) (234) (21)Net cash used in financing activities (18,656) (945) 17,710

Effect of Exchange Rate Changes on Cash and Cash Equivalents (55) (73) (18)Net Decrease in Cash and Cash Equivalents (12,117) (11,066) 1,050 Cash and Cash Equivalents of Newly Consolidated Subsidiaries 164 239 75 Cash and Cash Equivalents at Beginning of Term 27,115 16,741 (10,373)Cash and Cash Equivalents at End of Term 15,162 5,914 (9,247)

(For reference)Balance of interest-bearing debt 134,336 140,507 6,170

13

Changes in Investment and DepreciationChanges in Investment and DepreciationBillion yen

FY2009 (results) FY2010 (results) FY2011 H1 (results) FY2011 (forecasts)

Capital andstock

investment

R&Dinvestment Total

Capital andstock

investment

R&Dinvestment Total

Capital andstock

investment

R&Dinvestment Total

Capital andstock

investment

R&Dinvestment Total

Environmental Management & Recycling 3.7 0.3 4.1 6.8 0.3 7.1 3.5 0.2 3.7 6.1 0.6 6.7

Nonferrous Metals 7.6 0.8 8.4 5.1 0.8 5.9 1.4 0.3 1.7 3.0 0.7 3.8Electronic Materials 0.7 2.2 2.9 3.5 2.4 6.0 2.0 1.4 3.5 3.3 3.0 6.3Metal Processing 0.6 0.3 1.0 1.1 0.3 1.5 0.8 0.1 1.0 3.6 0.3 4.0Heat Treatment 0.5 0.2 0.8 2.2 0.2 2.4 3.0 0.1 3.1 3.8 0.2 4.1Companywide, Other 0.4 0.0 0.4 0.1 0.0 0.2 0.3 0.0 0.3 0.5 0.2 0.7

Total 13.9 4.0 18.0 19.1 4.2 23.4 11.3 2.3 13.6 20.5 5.2 25.8

Major capital and share investments during fiscal 2011

● Environmental Management & Recycling:

Construction of trace PCB treatment facilities at Eco-System Sanyo

● Nonferrous Metals: Construction of tin and antimony collection facilities

● Electronic Materials: Increased production of carrier powder

● Metal Processing: Construction of an acid cleaning line at DOWA METANIX

● Heat Treatment: Acquisition of a controlling interest of Hightemp of India

FY2009 FY2010FY2011

H1 results H2forecasts

Full yearforecasts

Environmental Management & Recycling 4.7 5.1 2.2 2.8 5.0

Nonferrous Metals 7.1 6.5 2.9 3.0 5.9Electronic Materials 2.1 2.0 1.2 1.5 2.7Metal Processing 3.2 2.6 1.1 1.4 2.5Heat Treatment 1.5 1.5 0.7 0.9 1.6Companywide, Other 0.5 0.4 0.2 0.2 0.4

Total 19.2 18.4 8.4 9.9 18.3

Depreciation Expenses Billion yen

14

Summary of Business ResultsSummary of Business Results

and Our Focus for the Futureand Our Focus for the Future

15

◆◆ Metal prices were higher than the Company had expected. However, prices declined toward the end of the first half, reflecting worries about debts in Europe, among other factors. The yen appreciated.

◆◆ The Company continued inventory hedges to mitigate the risk of market fluctuations in cases of plunges in prices.

Operating Income by Segment (Billion Yen)(FY2011 First Half)

■■ Metal Prices and Effects of Exchange RatesMetal Prices and Effects of Exchange Rates

Summary of Fiscal 2011 First HalfSummary of Fiscal 2011 First Half

■■ Situations of MarketsSituations of Markets◆◆ The recovery in demand for automotive products was more

robust than the Company had expected.◆ The electronic component and semiconductor-related sectors

entered an adjustment phase after the summer, with the exceptionof certain products, such as smartphone-related products.

◆◆ The waste market declined temporarily after the earthquake but was recovering.

Net sales: Net sales: 188.9 billion yen 188.9 billion yen (+ 28.9 billion yen)(+ 28.9 billion yen)Operating income:Operating income: 10.8 billion yen 10.8 billion yen (+ 5.1 billion yen)(+ 5.1 billion yen)Ordinary income: Ordinary income: 9.8 billion yen 9.8 billion yen (+ 4.8 billion yen)(+ 4.8 billion yen)

■■Business ResultsBusiness Results * Figures in parentheses represent comparisons with the initial plan.

◆ Sales and income exceeding the plan were attained in all business segments, reflecting an early recovery in operations after the earthquake and a market rebound.

◆ The Company responded to power shortages in the summer by changing its production system.

Initial Plan(announced on

May 17)

Results

16

Forecasts for 2nd Half of Fiscal 2011Forecasts for 2nd Half of Fiscal 2011■■Outlook for marketsOutlook for markets◆◆ Automotive-related market: Automobile production will be at high levels for a time.

Electronic components and semiconductor markets: Demand for TVs and PCs will be weak. The solar cell-related segment will be in an adjustment phase.

◆◆ The outlook for the economy is uncertain given concerns over debts in Europe, a slowdown in the US economy, monetary tightening in China, and the effect of flooding in Thailand, among other factors.

◆ Metal prices are in an adjustment phase. The yen will continue to appreciate.

◆ Assumptions for metal prices and exchange rates have been revised in consideration of current markets and exchange rates.

◆ The automobile sector will remain solid for some time to come, but demand for semiconductors will be sluggish.

◆ The Company will steadily pursue initiatives, such as starting a trace PCB waste treatment business.

■■Outlook for the second halfOutlook for the second half

Operating income is forecast to be 11.0 billion yen in the second half and 22.0 billion yen in the full year in light of price declines, a stronger yen, and worsening business confidence. FY10 H2

ResultsFY11 H1Results

FY11 H2 Initial Plan

FY11 H2Revised Plan

Operating Incom

e (billion yen)

(Assumptions for markets)Initial plan Results in first half Revision

(announced on May 17) (Average) (Assumption for second half)

Exchange rate: (¥/$) 80.0 79.8 77.0Copper: ($/t) 8,500 9,072 7,000Zinc: ($/t) 2,100 2,240 1,900Indium: ($/kg) 650 732 650

17

Summary of Business ResultsSummary of Business Results

and Focus for the Futureand Focus for the Future

18

Environmental Management & RecyclingEnvironmental Management & Recycling

Future actionsFuture actions■■ Waste treatmentWaste treatment - Trace PCB waste treatment

Started at Eco-System Sanyo in OctoberObtained minister’s approval at Eco-System Akita in November

- Boost profits by enhancing operations, increasing the capacity to treat difficult-to-treat materials, and finding new customers.

■■ Soil remediationSoil remediation - Enhance sales activities in China and Southeast Asia (Indonesia and Thailand).■■ RecyclingRecycling - Improve operations in bases in China (Suzhou, Tianjin) and start new bases

(Jiangxi, Hangzhou).-Bolster sales activities overseas to source materials for recycling at Kosaka.

Situation in FY2011Situation in FY2011 億円 億円

- The amount of waste declined temporarily after the earthquake, but is recovering.

- Precious metal recycling is solid, backed by a recovery in operations in the domestic manufacturing industries.

- The home electric appliance recycling business performed well in the first half despite the end of the eco-point program, but will decline from the second half.

DOWA Eco-System Co., Ltd.

Net Sales (bar graph)

Ordinary Incom

e (line plot)Billion yen Billion yen

19

Launching Trace PCB Waste TreatmentLaunching Trace PCB Waste TreatmentA trace PCB waste treatment furnace at Eco-System Sanyo commenced operation in October 2011.- The facility started without any problem. Operating time in October was 100% of the planned

operating time.- We expect that the volume of materials to be treated will be 20% more than the plan in the third

quarter and will be as planned in the fourth quarter.- Contingent operations, including removing oil from equipment and dismantling, will start.

Gas treatmentTrace PCB waste treatment facility

Of six companies that have permission, only DOWA group can process boxes of materials on a large scale, using a continuous-type furnace.

Entrance to the furnace[Thermal processing]

Contaminated materials

Continuous-type furnace

Entrance

Exit

Heat processing using burners

20

Expansion of Business in AsiaExpansion of Business in Asia

■■ Soil remediationSoil remediation- China

Conduct a joint study of onsite remediation in China. Step up approaches to the government and the private sector.

- IndonesiaMajor oil companies are actively developing oil and natural gas.

Needs for onsite treatment of polluted mud including oil from drilling are expanding.

Sales of US$8 million, twice as much as planned, are expected in FY2011.

■■ Home electric appliance recyclingHome electric appliance recyclingOperations are planed to start at Jiangxi plant in November 2011, following operation in Suzhou and Tianjin. Preparations for construction are underway in Hangzhou.

FY2010 FY2011

H1 H2 H1 H2

Suzhou

Tianjin

Jiangxi

Hangzhou

To be completed in November

Reception and treatment Operation of a plant solely for recycling started in November 2010

Progress of the home electric appliance recycling business in China

Full-scale operation in April

Founding and preparations for construction

Founding and plant construction

Founding and plant construction

Oil drilling

Polluted mud from drilling

Oil and water

Crude oil

Polluted mud

Separation

Reuse Final treatment

Treatment of polluted mud from oil drilling

■■ Metal recyclingMetal recyclingBusiness development at each base of MAEH is being

considered.

Expanding the scope of business from the current final treatment

21

Nonferrous MetalsNonferrous Metals

Situation in FY2011Situation in FY2011

Future actionsFuture actions■■ Precious metals and copperPrecious metals and copper - Boost rare metals recovery at Kosaka Smelting & Refining (nickel, tin,

antimony, gallium).■■ ZincZinc - Begin full operation at a plant for the treatment of materials for zinc

recycling.- Maintain stable operation and increase current efficiency at Akita

Zinc to enhance cost competitiveness.■■ PGMPGM - Increase raw materials collection using overseas facilities (in the

Czech Republic and North America).

- Metal prices have been in an adjustment phase since summer, while the yen is continuing to strengthen.

- Domestic demand for copper and zinc is recovering for automotive applications but remains weak for construction applications.

- Onahama Smelting & Refining is recovering ahead of expectations and has been in full operation since September.

- Platinum group metals (PGM) raw materials collection is weak in Japan, while collection from overseas, especially Europe, is rising.

Net Sales (bar graph)

Ordinary Incom

e (line plot)

Billion yen Billion yen

DOWA Metals & Mining Co., Ltd.

22

■■ Expansion of Lineup of Metals RecoveredExpansion of Lineup of Metals Recovered

- Launch of zinc recycling businessDecember 2010: Test operations startedApril 2011: Commercial operations started Operations developed steadily to full capacity

- Expansion of Tizapa zinc mine.July 2011: Expansion plants started operation Full production from October

Strengthening Smelting BusinessStrengthening Smelting Business

■■ Enhancement of the Foundation of Zinc BusinessEnhancement of the Foundation of Zinc Business

- Increase profitability in copper smelting by boosting the collection of rare metals- Diversify the raw materials treatment by building a system to handle a number of elements Promoting the smelting of recycled materials ahead of schedule

Akita Zinc Recycling Co., Ltd.

Major use Initiative at DOWANickel Plating, stainless Production started in July 2011. (Initial plan: September)Tin Solder, plating Production is planned to start in December 2011. (Initial plan: February 2012)Antimony Steel, fire retarding materials Facilities are being upgraded and are planned to start operation in FY2012.Gallium Semiconductor materials Facilities for recovery from zinc concentrates are upgraded.

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Electronic MaterialsElectronic Materials

Future actionsFuture actions■■ SemiconductorsSemiconductors - LED: Expand sales in the

proximity sensor and medical sensor markets, growth fields

- HEMT: Expand sales to meet volume demand from users■■ Electronic materialsElectronic materials- Silver powder: Increase market share by acquiring new users and expand the

scope of production items (including flake powder)■■ Magnetic materialsMagnetic materials - Metal powder: Enhance the features of next-generation magnetic recording

materials and build a mass production system- Carrier powder: Build an increased production system and acquire new users

■■ New developmentNew development - Nano silver powder: Promote applications for solar cell electrodes by lowering resistance

- Nano ink: Develop products for antennas for IC tags and expand sampling work

Situation in FY2011Situation in FY2011 億円 億円

- Market conditions related to semiconductors and electronic components, especially for TVs and PCs, are weak and slow to recover.Demand for smartphones remains strong.

- Demand for solar cells declined, partly reflecting solar panel inventory adjustments.

- The market of magnetic materials for data tapes and photocopiers is solid.

Net Sales (bar graph)

Ordinary Incom

e (line plot)Billion yen Billion yen

DOWA Electronics Materials Co., Ltd.

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Actions to Address Growing and New MarketsActions to Address Growing and New Markets■■ Boosting carrier powder productionBoosting carrier powder productionCopier market growing at an annual rate of 3% to 5%-Demand growth in China and emerging countries-Increases in demand not only for office copiers but also for professional-quality printing equipmentEnhanced facilities will be completed in November, increasing the production capacity by 50%-Production capacity 250 t/month 380 t/month-Share (forecast) 25% in 2011 35% to 40% in 2014

Forecasts of sales quantities of carrier powder100 for sales quantity for FY2009

■■ New developmentNew development- Deep ultraviolet LEDs :Replace mercury lamps and form a new market for low costs and low

environmental loads- Nano silver powder Lower resistance and use low temperature sintering for solar cell electrodes

and semiconductor junctions- Nano ink Lower user’s costs by changing printing methods; develop inks for a wider

scope of print targets, including paper- Exhaust catalysts Develop low-cost catalysts for vehicle emission gas purification, reducing the

amount of precious metals used- Fuel cells Develop electrode materials for domestic-use fuel cells, or solid oxide fuel

cells (SOFCs) Enhance research and development for growth markets

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Metal ProcessingMetal Processing

Future actionsFuture actions■■ Copper strip productsCopper strip products - Expand sales of copper alloys for vehicles and environmentally friendly

products (alternatives for beryllium copper)- Attain higher yields to cut costs and improve productivity

■■ Electroplating Electroplating - Expand sales to new fields, including lithium battery electrode terminal applications

- Expand overseas bases (set up new bases and enhance existing bases in China and Thailand)

■■ MetalMetal--ceramic substrates ceramic substrates - Expand sales to European market and wind power generation applications- Cut costs and attain higher yields to bolster cost competitiveness

Situation in FY2011Situation in FY2011 億円 億円

- Copper strip products: The recovery in products for automotive applications exceeded expectations, but demand for products for semiconductor applications was weak.

- Electroplating: The electroplating market recovered, especially for automobile components. New fields, such as electroplating for lithium batteries, emerged.

- Metal-ceramic substrates: Performance recovered from the post-earthquake slump, but demand for machine tools in China was in an adjustment phase.

DOWA Metaltech Co., Ltd.

Net Sales (bar graph)

Ordinary Incom

e (line plot)Billion yen Billion yen

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■■ Expansion of sales of copper alloys for vehicle applicationsExpansion of sales of copper alloys for vehicle applications

Sales Expansion in Growing MarketsSales Expansion in Growing Markets

■■ Expansion of sales of electroplating for lithium batteriesExpansion of sales of electroplating for lithium batteries

FY2010 FY2011

- Given the decline in domestic auto production after the earthquake, Company expected 70-80% operation in the first half initially.

- However, market bottomed out in May and recovered strongly. The sales volume exceeded the pre-earthquake level at the end of the first half. Will expand sales in the global markets by

responding to market trends and accelerating development of overseas operations through the establishment of new overseas sales bases.

Full-scale emergence of the EV/HEV lithium battery market

- Start electroplating for electrode terminals in large volumes inresponse to accelerated increases in production by customers.

- Correspond to customer’s overseas transfer and production expansion and meet new demand, including demand for lithium batteries for household use.

Changes in sales quantities of DOWA metal products(First half of FY2010 = 100)

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Heat TreatmentHeat Treatment

Future actionsFuture actions■■ Domestic operations Domestic operations - Improve production efficiency by consolidating production among heat

treatment plants- Enhance cost competitiveness by sourcing more parts from overseas

and promoting equipment maintenance■■ Overseas operationsOverseas operations - Expand operations in the Indian market through Hightemp

- Launch industrial furnaces operations in Kunshan, China■■ Research and developmentResearch and development - Develop low-cost furnaces and a new surface treatment technology

Situation in FY2011Situation in FY2011 億円 億円

- Heat treatment: In the auto market, despite the impact of the earthquake, the pace of recovery was faster than initially expected.

- Industrial furnaces: Demand was solid, and sales for overseas markets was particularly strong.

- Common: The construction machinery market appears to have slowed in China.

DOWA Thermotech Co., Ltd.

Net Sales (bar graph)

Ordinary Incom

e (line plot)Billion yen Billion yen

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■■ Strengthening existing basesStrengthening existing bases

- Entering into the Indian marketSeptember 2011:Acquired a majority share in Hightemp, the largest heat treatment company in India.

Establishing an operating base in an expanding market- Setting up new base in China

November 2011:Launches the industrial furnace business

Developing operations in the Chinese market in earnest- Developing operations in Southeast Asia

2010:Established a maintenance base in Indonesia.

Expanding operations in response to demand

■■ Entering new marketsEntering new markets

- Expanding the existing base in ThailandAdding carburizing furnaces in 2009 and 2011

Meeting demand not only for automotive applications but also for agricultural equipment applications

Chinese base

Thai base

Indonesian base

Indian bases

Industrial furnaces manufacturing plant in China

Expanding Overseas Expanding Overseas BusinessBusiness

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ConclusionConclusion

Jump up to the New StageJump up to the New Stage

◆◆ Continue active investment in growth areas, Continue active investment in growth areas, including energy and the environmental including energy and the environmental businessbusiness

◆◆ Accelerate business development in Asia and Accelerate business development in Asia and emerging countries.emerging countries.

◆◆ Boost productivity and steadily grow sales in Boost productivity and steadily grow sales in response to changes in markets and business response to changes in markets and business environment.environment.