We are working to reduce waste materials at all of our factories, and also promoting effective reutilization of the waste that is produced. In fiscal 2010, Tokuyama generated 313 thousand metric tons of waste. The Company actively recycled them internally and externally, mainly reusing them as raw materials and fuel for cement production at the Tokuyama Factory. Packing materials, pallets and other wood waste were crushed into woodchips so that they could be effectively used as fuel at power plants. As we worked diligently to recycle waste into raw materials for cement, we maintained our effective waste utilization rate at almost 94%. We stepped up our activities for reusing and reducing waste and, accordingly, maintained our high landfi ll zero-emission rate at 99.9%.

* Effective utilization rate (%) = [Recycled Volume (inside & outside)/ Total Waste Generated] x 100
* Zero emission rate (%)= [1 − Disposal to Landfill (inside & outside)/ Total Waste Generated] x 100