In October 2006, Dowa Mining Co., Ltd. spun off its five core business divisions, holding all shares of these newly separated companies, and commenced operations as Dowa Holdings Co., Ltd., a holding company.
   The operating companies were given increased autonomy and individuality, which makes for bold, speedy business operations, heightened competitiveness and a stronger business base. As a holding company, Dowa Holdings seeks to draw out the strategic capabilities of the entire Dowa Group to maximize the corporate value of the Group as a whole, endeavoring to meet the expectations of its investors.

   Reforms of the business structure commenced in fiscal 2000 addressed the profit structure, asset structure, financial structure, and management structure. This created a balanced business portfolio that yields stable revenues, where before the Company’s structure was easily affected by exchange rates, metals prices, and other factors in the external environment. However, Dowa must remain adaptable and boldly attack each new challenge to survive in an increasingly difficult business environment. The three-year plan currently in effect calls for ordinary income of ¥40.0 billion, ROA of 13%, and operating cash flows of ¥100.0 billion, all by fiscal 2008 (over the three-year period). In addition, capital investments are planned to increase substantially, rising to ¥80.0 billion (over the three-year period). Building on achievements to date, reform targets will be set higher, and we will “jump up to the new stage.”

   Accompanying its shift to a holding company system, Dowa is issuing share warrants that may be exercised on condition of remaining a shareholder for three years. During Business Structure Reform Plan III, the Dowa Group will exert itself to the utmost to increase corporate value, in the effort to meet the expectations of the stockholders who constantly support the Group. Dowa requests their support and encouragement in the future as well.

President and Representative Director