Note: This document has been translated from the Japanese original only for reference purposes. In the event of any
discrepancy between this translation and the Japanese original, the original shall prevail. The Company assumes
no responsibility for this translation or for any direct, indirect or consequential damage arising from thistranslation.

Disclosure through the Internet regarding
Notice of the 13th Annual General Meeting of
Shareholders

Structure to ensure the appropriateness of business………………………………………

2

Status of operation of structure to ensure the appropriateness of business…………………

5

Notes to consolidated financial statements…………………………………………………

7

Notes to non-consolidated financial statements……………………………………………

24

The items above are provided to our shareholders by posting our website(https://www.asahiholdings.com/) in accordance with laws and regulations, and Article 14 of
the Articles of Incorporation of Asahi Holdings, Inc.

Asahi Holdings, Inc.

1
Cover

Structure to ensure the appropriateness of business
Decisions on a framework to ensure that the performance of duties by the Directors is consistent
with the laws and the Articles of Incorporation and a framework to secure the appropriateness ofthe businesses of the Company are as follows:
1) Framework to ensure that the performance of duties by the Directors, Corporate
Officers and employees of the Company and our subsidiaries is consistent with thelaws and the Articles of Incorporation(a) The Board of Directors will establish “Asahi Way” for the Directors and employees inorder for the Directors, Corporate Officers and employees to comply with the laws,
Articles of Incorporation and internal rules and to fulfill their duties.
(b) We will distribute “Asahi Way” to the Directors and employees so as to keep theminformed of legal compliance. The internal audit division will make improvements andgive guidance through the business audit.
(c) We will establish the “Internal Control Promotion Meeting” consisting of officers andresponsible persons of various divisions as an organization that controls the entire
compliance in order to promote the construction, maintenance and improvement of theinternal control system.
(d) To promote compliance, the actual situation of compliance will be audited.
(e) In order to respond appropriately to any legal violation or other doubtful act under laws
which may be discovered by a Director or an employee, we will develop and operate awhistle-blowing system.
(f) We will never have any relationship, including business relationships, with anti-social
forces which threaten the social order and sound corporate activities. In the event of anillegal request, we will take a firm attitude and respond to it organizationally inaccordance with the law and internal rules.
2) Framework for storage and management of information relating to business
operations by the Directors and a framework for report to the Company about thematters relating to the performance of duties by the Directors and employees of our
subsidiaries(a) We will appropriately control the manner of storing, disposing of and otherwise managing
the records and documents relating to the performance of duties and decision-making of
the Directors and will review the relevant rules from time to time when needed.
(b) The Directors, Audit and Supervisory Committee Members and Accounting Auditor will
always have access to these information and documents.
(c) We will manage our subsidiaries and they will report important matters to us.
3) Rules and other frameworks for management for risk of loss in the Company and our
subsidiaries(a) We will establish the risk management rules and build a risk management system inaccordance with such rules.
(b) In the event of an unexpected event, we will discuss and make decisions at the
management meeting, etc., and the responsible manager will inform such decisions toeach division and plant. Each division and plant will take prompt actions to prevent
damage from expanding and will arrange a system to minimize the damage.

2
Structure to ensure the appropriateness of business4) Framework to secure the efficient performance of duties by the Directors of theCompany and our subsidiaries(a) The Board of Directors will hold a meeting regularly no less than once every three months
and from time to time when needed in order to determine the management policies andother important matters relating to the business strategies and to supervise the situation ofbusiness operations by the Directors.
(b) In order to enhance the functions of the Board of Directors and improve management
efficiency, the Board of Directors will hold an extraordinary meeting from time to time
when needed in order to expeditiously make decisions on basic matters and importantmatters relating to the business operations.
(c) The Board of Directors will draft a mid-term business plan and a budget for each fiscal
year to set the business target and will supervise the progress.
(d) Regarding the business operations according to decisions made by the Board of Directors,
we will establish the responsibility of the Directors for performance of duties and theprocedures for performance so as to ensure the efficient performance of duties. Eachprovision will be reviewed from time to time when needed.
5) Framework to secure the appropriateness of business of the corporate groupconsisting of the Company and our subsidiaries(a) We will build a system to manage our subsidiaries and will develop a system to reporttheir business results, business activities and the like to our Board of Directors on aregular basis.
(b) A manager of the Company will serve as an officer of our subsidiary and will develop asystem to observe the appropriateness of such subsidiary’s business.
(c) The internal audit division of the Company will conduct the internal audit regularly or
when needed and will develop a system to report the result of audit to the Audit andSupervisory Committee and Executive Directors.
6) Framework to appoint an employee who assists the duties of the Audit andSupervisory Committee of the Company, and the matters relating to the independenceof such employee from the Directors (excluding Directors serving as the Audit andSupervisory Committee Members) and the matters relating to the assurance ofeffective instructions given by the Audit and Supervisory Committee to such employee(a) We will assign an employee who assists the duties of the Audit and Supervisory
Committee in the Audit and Supervisory Committee Secretariat.
(b) Appointment and relocation of the Audit and Supervisory Committee Secretariat staff
that assists such committee in performing its duties requires prior consent of suchcommittee.
(c) The Audit and Supervisory Committee shall have the right to direct and order the Audit
and Supervisory Committee Secretariat staff who assists the committee in performing its
duties to perform his/her duties.

3
Structure to ensure the appropriateness of business7) Framework where the Directors (excluding Directors serving as the Audit andSupervisory Committee Members) and employees of the Company and the Directors,
Corporate Officers, employees and auditors of our subsidiaries or parties who receives
a reportfrom aforementioned persons report to the Audit and Supervisory Committee of theCompany, and other matters relating to reporting to the Audit and Supervisory
Committee(a) The Directors (excluding Directors serving as the Audit and Supervisory Committee
Members) and employees of the Company and the Directors, Corporate Officers,
employees and auditors of our subsidiaries or parties who receive a report from
aforementioned persons will promptly report the important matters relating to, without
limitation, the management, the accounting division and division in charge of complianceand awards and penalties to the Audit and Supervisory Committee of the Company, in
addition to the matters which conflict with the laws and Articles of Incorporation and thematters which may remarkably damage the Company and our subsidiaries.
(b) In order to grasp the important decision-making process and the situation of its business
operations, the Audit and Supervisory Committee Members may attend important
meetings in addition to the meeting of the Board of Directors, access important documents
relating to the business operations and request a Director or an employee to explain thesituation when needed.
8) Framework to ensure that no person who reported to the Audit and Supervisory
Committee of the Company is treated disadvantageously by reason of the report
We will not treat any officer or employee of the Company and our subsidiaries who reported
to the Audit and Supervisory Committee disadvantageously by reason of such report.
9) Matters relating to the policies for settlement of expenses or debts associated with theprocedures for prepayment or reimbursement of expenses incurred for the
performance of duties by the Audit and Supervisory Committee Members of theCompany (limited to the performance of duties of the Audit and Supervisory
Committee) and the performance of other duties
The Audit and Supervisory Committee Members may request the company to repay the
expenses required for the performance of their duties (limited to the performance of dutiesof the Audit and Supervisory Committee).
10) Other framework to ensure that the Audit and Supervisory Committee of theCompany conducts audits effectively
The Audit and Supervisory Committee, Accounting Auditor and Audit and Supervisory
Committee Secretariat will cooperate with each other in audit tasks and the Director andemployees will assist them in conducting audits efficiently.

4
Structure to ensure the appropriateness of businessStatus of operation of structure to ensure the appropriateness of business
As of June 16, 2015, the Company made a transition to the Board with Audit and Supervisory
Committee to promote efforts to ensure transparency and improve the efficiency of corporate
management by reinforcing the supervisory function of the Board of Directors and utilizing
Outside Directors. The Company’s Board of Directors discusses management risks and reviews
the Company’s internal organizations, operations and regulations accordingly to enhance theireffectiveness.
The status of operation of structure to ensure the appropriateness of business operations is asfollows.
1) Status of efforts to enhance the appropriateness and efficiency of business execution(a) The Board of Directors consists of two (2) Directors with executive authority over
operations and five (5) Directors serving as Audit and Supervisory Committee
Members (including four (4) Outside Directors) and has held active discussions.
(b) During the fiscal year under review, the Board of Directors held eight (8) meetings
where the status of business execution was supervised by deliberating proposals andreceiving reports on the status of important business execution.
(c) The Board of Directors entrusts the authority over some important business execution
to Directors to ensure efficient decision making and business execution.
(d) To secure the transparency in decisions on nomination and compensation for Directors
and Group companies, the Nominating Committee and the Compensation Committee,
each of which consists of one Representative Director and two (2) Outside Directors
serving as Audit and Supervisory Committee Members, were established as voluntarycommittees, and have provided advice and suggestions to the Board of Directors.
2) Status of efforts regarding compliance and risk management(a) Continuous efforts to ensure compliance with laws, regulations and the Articles ofIncorporation have been made by providing employees with compliance education
through in-house trainings and meetings and announcing the content of laws and theirrevisions on the internal portal site or with other means.
(b) To counter an act that violates laws, regulations and the Articles of Incorporation, thewhistle-blowing system has been reinforced to monitor such an act, thereby
strengthening legal compliance and risk management.
(c) The Internal Control Promotion Meeting engages in identification and control ofinternal risks, and improves the internal organizations, facilities and equipment,
information systems and internal regulations accordingly.
3) Status of execution of duties of the Audit and Supervisory Committee(a) Directors serving as Audit and Supervisory Committee Members join the discussion
and resolution of proposals and receive reports on the status of business execution at
the meetings of the Board of Directors and attend the Group Subsidiaries Management
Meeting and other meetings to enhance the effectiveness of audits.
(b) To ensure the effectiveness of audits by Directors serving as Audit and Supervisory
Committee Members, the Audit and Supervisory Committee Secretariat, which is
independent of orders from Executive Directors, is placed to support the Audit andSupervisory Committee Members.

5
Status of operation of structure to ensure the appropriateness of business4) Status of the internal audits system(a) An internal audit division for conducting audits on a Group-wide basis has been inplace for enhancement of the internal audits system.
(b) The internal audit division conducts audits on overall business operations and reports
to the Audit and Supervisory Committee. The division also cooperates with the Audit
and Supervisory Committee Members and the Accounting Auditor to enhance theeffectiveness of audits.

6
Status of operation of structure to ensure the appropriateness of businessNotes to consolidated financial statements(Basis of preparing consolidated financial statements)
1. Standards for preparing the consolidated financial statements
The consolidated financial statements are prepared in accordance with International Financial
Reporting Standards (hereinafter “IFRS”) under the provision of Article 120, Paragraph 1 of theRules of Corporate Accounting. Certain disclosures required by IFRS have been omitted from these
consolidated financial statements under the provision set forth in the second sentence of saidParagraph.
2. Scope of consolidation
Number of consolidated subsidiaries

Major consolidated subsidiaries

3. Equity method affiliate
Equity method affiliates
Major Equity method affiliates

13
Asahi Pretec Corp.
JW Chemitech Co., Ltd.
Fuji Rozai Co., Ltd.
JW Glass Recycling Co., Ltd.
Asahi G&S Sdn. Bhd.
Asahi Pretec Korea Co., Ltd.
Asahi Pretec Medical Support Co., Ltd.
DXE INC.
Asahi Refining USA Inc.
Asahi Refining Florida LLC
Asahi Refining Canada Ltd.
Asahi Depository LLC
Nihon Chemitech Logitem Co., Ltd.

1
FUJI MEDICAL INSTRUMENTS MFG. CO., LTD.

4. Change in scope of consolidation or scope of application of equity method
As DXE INC. and Asahi Depository LLC were newly established during the current consolidated
fiscal year, they are included in the scope of consolidation. As Japan Waste Corporation andTaiyo Chemical Co., Ltd. were merged into Asahi Pretec Corp., they are excluded from the scopeof consolidation.

7
Notes to consolidated financial statements

5. Accounting policies(1) Valuation standards and methods for major assets
1) Financial assets other than derivatives(i) Initial recognition and measurement
The Group recognizes financial assets when it becomes a party to the contract clauses offinancial instruments and classifies the financial assets into financial assets measured at fairvalue through profit or loss or other comprehensive income and financial assets measured atamortized cost.
All financial assets, unless they are classified into those measured at fair value through profit
or loss, are measured at fair value plus transaction costs.
Financial assets are classified as financial assets measured at amortized cost if both of thefollowing conditions are met:
The financial asset is held within a business model for which the objective is to holdfinancial assets in order to collect contractual cash flows; andThe contractual terms of the financial asset give rise on specified dates to cash flows thatare solely payments of principal and interest on the principal amount outstanding.
Financial assets other than those measured at amortized cost are classified as financial assets
measured at fair value.
For financial assets measured at fair value, except equity instruments that are held for trading
and must be measured at fair value through profit or loss, a designation is made of individual
equity instruments as those measured at fair value through profit or loss or those measured atfair value through other comprehensive income, and such designation is applied consistently.
(ii) Subsequent measurement
After initial recognition, financial assets are measured based on the classification as follows.
a) Financial assets measured at amortized cost
Financial assets measured at amortized cost are measured using the amortized cost basedon the effective interest method.
b) Financial assets measured at fair value
Changes in the fair value of financial assets measured at fair value are recognized in profit
or loss. However, for equity instruments designated as those measured at fair value throughother comprehensive income, changes in the fair value are recognized in othercomprehensive income. Said amounts recognized in other comprehensive income are notsubsequently reclassified into profit or loss. In cases where such financial assets are
derecognized or their fair value declines significantly, the other comprehensive income
previously recognized is directly transferred to retained earnings. Dividends relating tosuch financial assets are recognized as part of finance income and in profit or loss for the
fiscal year under review.
(iii) Impairment of financial assets
The Group recognizes impairment of financial assets based on whether the credit risk on thefinancial asset or financial asset group measured at amortized cost at each end of the reporting
periods has increased significantly since initial recognition. Specifically, if the credit risk has
not increased significantly since initial recognition, a loss allowance is recognized based on
12-month expected credit losses. On the other hand, if the credit risk has increased
significantly since initial recognition, a loss allowance is recognized based on expected credit

8Notes to consolidated financial statements

losses through the remaining life of the financial asset. Whether the credit risk has increased
significantly is determined based on changes in the risk of default. Whether there are changes
in the risk of default is determined by taking into account any significant changes in theexternal credit ratings of the financial asset, unfavorable changes in the status of business
operations or financial position, any events of overdue payments and other information. For
trade receivables, however, lifetime expected credit losses are recognized from when the
instruments are first recognized.
Expected credit losses are measured based on the discounted present value of differences
between contractual amounts to be received and amounts expected to be received.
(iv) Derecognition of financial assets
The Group derecognizes a financial asset when the contractual rights to the cash flows fromthe financial asset expire or when the Group transfers substantially all the risks and rewardsof ownership of the asset to another entity. If the Group retains control over the transferredfinancial asset, the Group recognizes the asset and related liability to the extent of its
continuing involvement.
2) Derivatives
The Group utilizes derivatives, including foreign exchange forward contracts, interest rate
swaps and commodity forward contracts, to hedge, respectively, foreign exchange, interest
rate and commodity price risks. These derivative instruments are initially measured at fairvalue when the contract is entered into and are subsequently remeasured at fair value.
3) Inventories
Inventories are measured at the lower of cost and net realizable value. The net realizable valueof inventories is the estimated selling price in the ordinary course of business less theestimated costs of completion and the estimated costs necessary to make the sale. The cost of
inventories is determined mainly by the moving-average method and includes the cost ofpurchase, cost of conversion and all other costs incurred in bringing the inventories to theirpresent location and condition.
(2) Depreciation and amortization for major assets
1) Property, plant and equipment: Assets other than land and construction inprogress are depreciated using the straight-line
method over their estimated useful lives asfollows.
Buildings and structures: 2–50 years
Machinery, equipment and vehicles: 2–20
years
Estimated useful lives, residual values anddepreciation methods are reviewed at each fiscal
year-end, and any changes are applied
prospectively as changes in accounting
estimates.

9
Notes to consolidated financial statements2) Intangible assets

3) Leases: Intangible assets, except those for which theuseful life is not determined, are amortizedusing the straight-line method over theirestimated useful lives as follows.
Software: 5 years
Estimated useful lives, residual values andamortization methods are reviewed at eachfiscal year-end, and any changes are applied
prospectively as changes in accounting
estimates.
: For lease transactions, when the ownership of
the underlying asset is transferred to the Groupprior to the termination of the lease period, orwhen the exercise of a purchase option isreflected in the acquisition price of the right-ofuse asset, the right-of-use asset is depreciatedusing the straight-line method based on its
useful life. In other cases, right-of-use assets are
depreciated using the straight-line method basedon either the useful life or at the termination of
the lease period, whichever is shorter. Lease
payments are apportioned between finance costs
and repayment of lease liabilities based on theinterest method, and financial costs arerecognized in the consolidated statement ofincome. Short-term leases with a lease term of
12 months or less and leases of low-value
underlying assets are recognized as expenses oneither a straight-line basis or another systematic
basis over the lease term for the total lease
payments.

(3) Recognition criteria for significant provisions
Provisions are recognized when the Group has present legal or constructive obligations as a resultof past events and it is probable that outflows of resources embodying economic benefits will be
required to settle the obligations and reliable estimates can be made of the amount of theobligations. When the effect of the time value of money is material, the amount of a provision ismeasured by discounting the estimated future cash flows at the discount rate, which is a pretax
rate that reflects the time value of money and the risks specific to the liability. The unwinding of
the discount due to the passage of time is recognized as finance cost.

10
Notes to consolidated financial statements

(4) Recognition criteria for revenue
The Group recognizes revenue based on the following five-step model.
Step 1: Identify the contract with a customer
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognize revenue when the entity satisfies a performance obligation
The Group is engaged in the sales of precious metals. Regarding these products, revenue isrecognized when the goods are transferred to the customer, a point at which the customer has
control of the goods, and the performance obligation is deemed to have been satisfied. As forrevenue pertaining to the collection, transport and intermediate treatment or other processing ofindustrial wastes, revenue is recognized when the treatment of the said industrial waste iscompleted, a point at which the customer has control and the performance obligation is deemed
to have been satisfied.
Also, revenue is measured at a value derived by deducting discounts, rebates, returns, etc., fromthe consideration undertaken in the contract with the customer.
The Group receives a consideration from customers in principle within one year from the point
at which a performance obligation is satisfied. Significant financing components are not included.
(5) Other important items for preparing consolidated financial statements
1) Hedge accounting:
At the inception of a hedge, the Group formally provides a hedge designation anddocumentation relating to the hedging relationship to which hedge accounting will be applied,
as well as the risk management objective and strategy in carrying out the hedge. Said
documentation includes specific hedging instruments, hedged items or transactions, the natureof hedged risks and the method for assessing the effectiveness of a hedging relationship. These
hedges are assessed on an ongoing basis to determine whether they were actually effective for
all financial reporting periods when they were designated as hedges. Specifically, a hedge isjudged as effective if all of the following requirements are fulfilled.
- There is an economic relationship that provides an offset between the hedged item andthe hedging instrument;- The effect of credit risk does not dominate the value changes that result from that
economic relationship; and- The hedge ratio of the hedging relationship is the same as that resulting from thequantity of hedged items and the quantity of hedging instruments that the Company
actually uses.
The Company uses the following hedge accounting method if the requirements for hedge
accounting are met.
Cash flow hedges
The effective portion of gains or losses on hedging instruments is recognized as othercomprehensive income, while the ineffective portion is recognized immediately in profit orloss in the consolidated statement of income.
Amounts relating to hedging instruments recognized as other comprehensive income arereclassified to profit or loss when hedged transactions affect profit or loss.

11
Notes to consolidated financial statements

If a hedging relationship ceases to meet the hedge effectiveness requirement relating to thehedge ratio, but the risk management objective for that designated hedging relationshipremains the same, the Group adjusts the hedge ratio of the hedging relationship so that it meetsthe qualifying criteria again (this is referred to as “rebalancing” hereinafter). After rebalancing,
if a hedge becomes no longer qualified for hedge accounting or a hedging instrument expires,or is sold, terminated or executed, hedge accounting is discontinued prospectively.
When hedge accounting is discontinued, the balance of cash flow hedges already recognizedin other comprehensive income remain in equity if the hedged future cash flows are still
expected to occur, whereas such balance is reclassified immediately to profit or loss if thehedged future cash flows are no longer expected to occur.
2) Foreign currency translation: A foreign currency transaction is translated into thefunctional currency of each Group company at the rateof exchange at the date of the transaction.
Foreign currency monetary assets and liabilities at theend of the reporting period are translated into thefunctional currency at the rate of exchange at the end of
the reporting period.
Foreign currency non-monetary assets and liabilities
measured at fair value are translated into the functional
currency at the rate of exchange at the date when said
fair value is determined.
Differences arising from translation or settlement arerecognized in profit or loss, except that differences
arising from financial assets measured at fair value
through other comprehensive income and cash flow
hedges are recognized in other comprehensive income.
The assets and liabilities of foreign operations aretranslated into Japanese yen at the rate of exchange atthe end of the reporting period, while the income andexpenses of foreign operations are translated into
Japanese yen at the average exchange rate for the period,
unless exchange rates fluctuate significantly during theperiod. Exchange differences arising from thetranslation of the financial statements of foreign
operations are recognized in other comprehensive
income. On the disposal of a foreign operation, theexchange differences relating to that foreign operation
are recognized in profit or loss during the period when
said disposal was made.
3) Treatment of goodwill: Goodwill is not amortized but is subject to an
impairment testing annually and whenever an indicationof impairment exists.
Impairment losses relating to goodwill are recognized in
the consolidated statement of income, and subsequent

12
Notes to consolidated financial statements

4) Employee benefits

5) Adoption of consolidated
taxation system
6) Presentation of amounts

reversals of the losses are not conducted.
: The Group adopts defined benefit pension plans anddefined contribution pension plans as post-employment
benefits for employees.
The Group determines the present value of defined
benefit obligations and related current service cost andpast service cost using the projected unit credit method.
The discount rate is determined by reference to market
yields on high-quality corporate bonds at the end of thereporting period corresponding to the discount period,
which is established to reflect the period until theestimated timing of benefit payments in each fiscal year
in the future.
Liabilities or assets pertaining to defined benefit pension
plans are calculated by deducting the fair value of plan
assets from the present value of defined benefit
obligations.
Remeasurements of defined benefit pension plans arecollectively recognized in other comprehensive income
for the period when they are incurred and are
immediately transferred from other components ofequity to retained earnings.
Past service cost is amortized as profit or loss for theperiod when it is incurred.
Cost relating to defined contribution pension plans is
recognized as an expense at the time of contribution.
: The Company and its domestic consolidated subsidiaries
have applied the consolidated taxation system from thecurrent consolidated fiscal year.
: Amounts less than one million yen are truncated.

13
Notes to consolidated financial statements

(Notes to the consolidated statement of financial position)
1. Allowance for doubtful accounts directly deducted from assets
Trade and other receivables
Financial assets (non-current)

2 million yen
0 million yen

2. Accumulated depreciation of property, plant and equipment
33,972 million yen(Notes to the consolidated statement of income)Impairment loss
The impairment loss of 287 million yen on property, plant and equipment recognized during the
fiscal year ended March 31, 2022 was mainly due to reducing the book value of land and buildings
belonging to Asahi Pretec Corp. in the Precious Metals Business to the recoverable value as its
production facilities were consolidated and relocated, and thereby some of them were idled, andrecording the write-down as a loss (269 million yen), as well as reducing the book value of land
belonging to JW Glass Recycling Co, Ltd. in the Environmental Preservation Business to therecoverable value as it was scheduled to be sold, and recording the write-down as a loss (16 million
yen).
Impairment losses are recorded in “Other operating expenses” in the Consolidated Statements ofIncome.

14
Notes to consolidated financial statements

(Notes to the consolidated statement of changes in equity)
1. Class and number of issued shares and treasury shares
Number of shares Number of shares Number of shares
Number of shares
increased during decreased during at the end of thisat the beginning of
this consolidated this consolidated consolidated
this consolidated
accounting
accounting
accounting
accounting period
periodperiodperiod(Thousands of(Thousands of(Thousands of(Thousands ofshares)shares)shares)shares)Issued shares
Common stock
39,85439,85479,708
Total
39,85439,85479,708Treasury shares
Common stock
505
1,332
772
1,065
Total
505
1,332
772
1,065
(Notes) 1. The Company conducted a stock split with a ratio of two-for-one on April 1, 2021.
2. The increase in issued shares of common stock was due to a stock split.
3. The increase of 1,332 thousand shares in treasury shares of common stock was due to theincrease of 505 thousand shares following a stock split, the increase of 0 thousand sharesfollowing the purchase of shares less than one unit, and the acquisition of 826 thousand
shares of the Company by the ESOP trust and the BIP trust.
4. The decrease of 772 thousand shares in treasury shares of common stock was due to thedelivery of shares of the Company held in trust.
5. The treasury shares include 916 thousand shares held by the ESOP trust and 81 thousand
shares held by the BIP trust.
2. Dividends(1) Dividends paid
Class of
Total
Dividends
Effective
Record datesharesdividends
per sharedate
May 11, 2021
Common3,583
March 31,
May 26,90.00 yen
Board of Directors’ Meetingstock
million yen
2021
2021
October 27, 2021
Common3,583
September November
45.00 yen
Board of Directors’ Meetingstock
million yen
30, 2021
19, 2021(Notes) 1. Total dividends according to the resolution at the Board of Directors’ meeting on May 11,2021 include dividends of 42 million yen relating to the Company’s shares held by the
ESOP trust and the BIP trust.
2. Total dividends according to the resolution at the Board of Directors’ meeting on October27, 2021 include dividends of 44 million yen relating to the Company’s shares held by
the ESOP trust and the BIP trust.
3. The Company conducted a stock split with a ratio of two-for-one on April 1, 2021. The
dividends whose record date is March 31, 2021 show the amount before the stock split.
The dividends whose record date is September 30, 2021 show the amount after the stock
split.
Resolution

15
Notes to consolidated financial statements

(2) Among dividends whose record date within this consolidated accounting period, those having
an effective date within the following consolidated accounting period (scheduled)Class of
Total
Source of Dividends
RecordEffective
Resolution
sharesdividends
dividends
per sharedate
date
May 20, 2022
Board ofCommon3,583 Retained
March 31,
May 30,45.00 yen
Directors’
stockmillion yen earnings
2022
2022
Meeting(Note) Total dividends according to the resolution at the Board of Directors’ meeting on May 20,
2022 include dividends of 44 million yen relating to the Company’s shares held by the
ESOP trust and the BIP trust.
3. Matters about share acquisition rights
The class and number of shares for the purpose of share acquisition rights (excluding those of which
the first day of the right exercise period has not arrived) at the end of the current consolidated fiscal
year
Common stock
9,315 thousand shares

16
Notes to consolidated financial statements

(Notes to recognition of revenue)
1. Breakdown of revenue
Relationship between a breakdown of revenue by main regional market and reporting segments is
as follows.
(Millions of yen)
Reporting segments
Environmental
Precious Metals
Total
Preservation
By regionJapan
161,849
18,566
180,416
North America
9,279
9,279
Asia
2,746
2,746
Total
173,875
18,566
192,442
The Precious Metals Business sells precious metals and other products to customers mainly
including trading firms and semiconductors, electronic parts, and other manufacturers.
The Environmental Preservation Business mainly offers services such as collection, transportation,and intermediate treatment of industrial waste for customers mainly including plants of various
industries, presses, and hospitals.
The contents of performance obligations based on contracts with customers in the main businessesof the Group and timing of revenue recognition for performance obligations are described in “(Basisof preparing consolidated financial statements), 5. Accounting policies, (4) Recognition criteria forrevenue.”
2. Contract balance
The breakdown of receivables, contract assets and contract liabilities arising from contracts withcustomers is as follows.
Receivables arising from contracts with customers
13,916 million yen
Contract assets- million yen
Contract liabilities
35 million yen
Among contract liabilities arising from contracts with customers, estimates of achievement rebates
expected to be paid to customers relating to sales before the end of the reporting periods, etc. andliabilities for returned goods are recognized as refund liabilities.
The advances received balance as of the start of the current consolidated fiscal year was recognized
as revenue for the current consolidated fiscal year. In addition, the amount of revenue recognizedfrom the performance obligations satisfied in the past period is insignificant for the current
consolidated fiscal year.
3. Transaction price allocated to the remaining performance obligations
The Group used the practical expedients and omitted description of information relating to theremaining performance obligations, because there are no transactions of which individual contract
period is expected to be over one year. In addition, in a consideration arising from contracts withcustomers, there are no significant amounts not included in transaction price.

17
Notes to consolidated financial statements

4. Assets recognized from costs for acquisition or performance of contracts with customers
The amount of assets recognized from costs for acquisition or performance of contracts withcustomers is insignificant for the current consolidated fiscal year. In addition, if a depreciation periodof assets to be recognized is within one year, the Group uses the practical expedients and recognizes
incremental costs for the acquisition of contracts as expenses on accrual basis.

18
Notes to consolidated financial statements

(Notes to accounting estimates)
1. Recoverability of deferred tax assets(1) Amount recognized in the consolidated financial statements for the current fiscal year
6,262 million yen
Deferred tax assets(2) Other information relating to accounting estimates which contributes to understanding by usersof the consolidated financial statements
1) Calculation method of the amount recognized in the consolidated financial statements for thecurrent consolidated fiscal year
Deferred tax assets are recognized based on future taxable income estimated from futurebusiness plans.
2) Main assumptions used for calculating the amount recognized in the consolidated financial
statements for the current consolidated fiscal year
Deferred tax assets are recognized to the extent that it is probable that taxable income will beavailable for which the deductible temporary differences, etc. can be utilized. In determinationof a possibility that taxable income will be available, the timing and amount of taxable income
are estimated based on business plans.
3) Impacts on the consolidated financial statements for the following consolidated fiscal year
The timing when taxable income arises and the amount thereof may be affected by results ofchanges in uncertain future economic conditions, etc. If there are differences between the actual
timing and amount and those estimated, this may have a material impact on the amount forrecognizing deferred tax assets in the consolidated financial statements for the following andsubsequent consolidated fiscal years. For this reason, although the main assumptions stated in2) are for gaining the best estimates, these may differ from subsequent results depending on the
future changes in economic conditions, etc.

19
Notes to consolidated financial statements

(Notes to financial instruments)
1. Status of financial instruments
In the course of business activities, the Group is exposed to financial risks, such as credit risks,liquidity risks, currency risks, interest rate risks and market price fluctuation risks, and performs
risk management activities to reduce said financial risks.
The Group also uses derivative financial instruments, such as foreign exchange forward contracts
and interest rate swaps, to hedge against market risks and makes it a policy not to enter into
derivative transactions for speculative purposes.
1) Credit risk
A credit risk refers to a risk of customers going into default on contractual debts, causing
financial losses to the Group.
The Group manages the credit risk in accordance with its credit control regulations, using thecredit limits set for its business partners.
The Group’s receivables consist of receivables from many customers operating in a wide
range of industries and regions, and are not subject to risks excessively concentrated on asingle customer or the group to which said customer belongs.
The carrying amount of financial assets, net of accumulated impairment loss, presented in the
consolidated statement of financial position represents the maximum exposure of the Group’s
financial assets to credit risks without taking into account the value of the collateral obtained.
Regarding the exposure to these credit risks, there are no properties held as collateral andother credit enhancements.
2) Liquidity risk
A liquidity risk refers to a risk of the Group becoming not able to repay the financial liability
for debts on the due date.
The Group manages liquidity risk by preparing adequate amount of funds for repayment,
while securing from financial institutions a line of credit to which it is accessible as needed
and monitoring the plans and results of cash flows on a continuous basis.
3) Currency risk
The Group operates globally and is exposed to currency risks related to foreign currencytransactions. For certain foreign currency transactions for which the amounts are significant
and that are individually identifiable, the Group uses hedging instruments to hedge against
currency risks relating to the hedged items within a certain range in accordance with its
internal regulations.
Accordingly, the exposure to currency risks is insignificant and is judged as immaterial to theGroup.
4) Interest rate risk
An interest rate risk is defined as a risk of the fair value of financial instruments or the future
cash flows from financial instruments fluctuating due to fluctuations in market interest rates.
The Group’s exposure to interest rate risks mainly relates to payables, such as loans payable,
and receivables, such as interest-bearing deposits. Because the amount of interest is subject
to fluctuations in market interest rates, the Group is exposed to interest rate risks that cause
fluctuations in future cash flows of interest.
The Group uses interest rate swaps to mitigate the risk of fluctuations in interest payable
relating to loans payable, thereby stabilizing cash flows.

20
Notes to consolidated financial statements

Accordingly, the impact of fluctuations in the amount of interest payments due to interest-ratefluctuations on the Group is insignificant, and interest rate risks are judged as immaterial to
the Group.
5) Market price fluctuation risk
Precious metals and rare metals, the core products of the Group’s precious metal business, aretraded in international markets, and the prices thereof are exposed to commodity price risks
due to the political and economic trends of supplier and consumer countries, as well as foreignexchange rates.
To mitigate commodity price risks, the Group uses derivative instruments such as commodity
forward contracts, as hedging instruments against commodity price risks mainly due to market
price fluctuations.
Accordingly, the Group’s exposure to commodity price fluctuation risks is insignificant andmarket price fluctuation risks are judged as immaterial to the Group.
2. Fair value, etc., of financial instruments
The carrying amounts reported in the consolidated statement of financial position on March 31,
2022 (consolidated fiscal closing date for the fiscal year under review), and the fair value offinancial instruments are as follows:(Millions of yen)
Carrying amount inconsolidated statement
Fair value (*)
of financial position (*)
Financial assets
Financial assets measured at amortized cost
Cash and cash equivalents
6,127
6,127
Trade and other receivables
151,437
151,437
Other
980
980
Financial assets measured at fair value
through other comprehensive income
Other financial assets
8
8
Financial liabilities
Financial liabilities measured at amortized
cost
Trade and other payables
27,711
27,711
Bonds payables
28,02429,402Loans payable
122,901
123,140
Other
2
2
Financial liabilities measured at fair value
through profit or loss
Derivative instruments
773
773
Financial liabilities designated as hedging
instruments
Derivative instruments
5,352
5,352
(*)
The methods used for determining the fair value of financial instruments are as follows.

21
Notes to consolidated financial statements

Financial assets measured at amortized cost:
These mainly consist of cash and cash equivalents, trade and other receivables. These
are settled in a short term, and the carrying amount thereof is a reasonable approximation
to the fair value thereof.
Financial assets measured at fair value through other comprehensive income:
These mainly consist of listed shares. The fair value of listed shares is determined basedon the market prices at the end of the reporting period.
Financial liabilities measured at amortized cost:
These mainly consist of trade and other payables and bonds and borrowings. Trade
payables are settled in a short term, and the carrying amount thereof is a reasonableapproximation to the fair value thereof. The fair value of bonds and borrowings isdetermined based on the present value, which is obtained by discounting future cash
flows at an interest rate assumed to be applied if similar contracts were newly executed.
Financial liabilities measured at fair value through profit or loss:
These mainly consist of derivative instruments. The fair value of derivative instruments
is determined mainly by reference to prices quoted by financial institutions.
Financial liabilities designated as hedging instruments:
These mainly consist of derivative instruments. The fair value of derivative instruments
is determined mainly by reference to prices quoted by financial institutions.
3. Breakdown of fair value, etc., of financial instruments by classification
For financial instruments measured at fair value, the amounts measured at fair value are classified
from level 1 to level 3 according to the observability and importance of the inputs used formeasurement.
Level 1: Market prices (unadjusted) in active markets for identical assets or liabilities
Level 2: Fair value measured using observable prices other than categorized in Level 1 directly or
indirectly
Level 3: Fair value determined by using valuation techniques that incorporate unobservable inputs(Millions of yen)
Level 1
Level 2
Level 3
Total
Financial assets:
Financial assets measured at fair value
through other comprehensive income
Listed shares
8
–
–
8
Total
8
–
–
8
Financial liabilities:
Financial liabilities measured at fair value
through profit or loss
Derivative instruments
–
773
–
773
Financial liabilities designated as hedging
instruments
Derivative instruments
–
5,352
–
5,352
Total
–
6,125
–
6,125
(*)
No transfers between Level 1 and Level 2 were made in the fiscal year under review.

22
Notes to consolidated financial statements

No significant changes in Level 3 financial instruments occurred in the fiscal year under review.
(Notes to information per share)
Equity per share attributable to owners of
1,336.89 yen
parentBasic profit per share
238.11 yen
Diluted profit per share
214.13 yen(Notes to significant subsequent events)
Not applicable23
Notes to consolidated financial statements

Notes to non-consolidated financial statements(Notes to significant accounting policies)
1. Valuation standards and valuation methods for assets
Securities
Shares of affiliated companies: Cost mainly determined by the moving-averagemethod.
2. Depreciation methods for non-current assets
Property, plant and equipment: Straight-line method
Assets with acquisition amount of 100 thousand
yen or more to less than 200 thousand yen are
equally depreciated for three years.
Intangible assets: Straight-line method
Software for internal use is amortized under thestraight-line method based on the period forwhich the Company can use such software (fiveyears or less).
3. Accounting standards for provisions
Provision for bonuses: To allow for the payment of bonuses to
employees, the standard for estimated amounts ofbonuses to be paid is recorded.
Provision for director’s bonuses: To allow for the payment of bonuses to Directors,
the standard for estimated amounts of bonuses tobe paid is recorded.
Provision for stocks payment: To allow for the granting of the Company sharesto the Group employees in accordance with theRegulations Concerning Stock Issuance, anamount of stock grant obligations estimated at
the end of the fiscal year under review isrecorded.
Provision for management board incentive: To allow for the granting of the Company sharesplan trust
to the Company’s Directors in accordance with
the Regulations Concerning Stock Issuance, anamount of stock grant obligations estimated at
the end of the fiscal year under review isrecorded.

4. Accounting standards for revenue and expenses
The Company’s revenue consists of commissions from subsidiaries and associates, real estatelease revenue, and dividends from subsidiaries and associates. Commissions from subsidiaries
and associates relate to management guidance services provided to affiliated companies, andrevenue and expenses are recognized when management guidance services are provided, a24
Notes to non-consolidated financial statements

point at which the performance obligation of the Company is satisfied. Revenue and expenses
related to real estate lease revenue are recognized over the rental period. Revenue related todividend income is recognized on the effective date of dividends.

25
Notes to non-consolidated financial statements

5. Other important items for preparing non-consolidated financial statements
1) Treatment of deferred assets: Bond issuance cost is recognized as an expense
when expended.
2) Standards for the translation of assets : Receivables and payables denominated inforeign currencies are translated into yen at theor liabilities denominated in foreignforeign exchange spot rate on the date of thecurrencies
balance sheet, and differences arising from thetranslation are calculated as gains or losses.
3) Adoption of consolidated taxation: The Company adopts the consolidated taxation
systemsystem, in which it is a consolidated parent
corporation.
4) Adoption of tax effect accounting for: With regards to the transition to the group tax
the transition from the consolidated
sharing system, which was instituted by the Act
taxation system to the group tax sharing for Partial Amendment of the Income Tax Act,systemetc. (Act No. 8 of 2020), and the items for which
the non-consolidated taxation system has beenreviewed in line with the transition to the grouptax sharing system, in accordance with
Paragraph 3 of Practical Solution on theTreatment of Tax Effect Accounting for theTransition from the Consolidated Taxation
System to the Group Tax Sharing System(Practical Issues Task Force (PITF) No.39,
March 31, 2020), the Company has applied theprovisions of the pre-amendment tax law todeferred tax assets and liabilities, instead of theprovisions of Paragraph 44 of Implementation
Guidance on Tax Effect Accounting (ASBJ
Guidance No.28, February 16, 2018).
(Note to the changes in accounting policies)(Adoption of Accounting Standard for Revenue Recognition, etc.)
The Company adopted the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29,
March 31, 2020), etc., from the beginning of the current fiscal year. Revenue is recognized whencontrol of a promised good or service is transferred to a customer in an amount that reflects theconsideration to which the Company expects to be entitled in exchange for those goods and services.
This does not affect the non-consolidated financial statements for the current fiscal year.
(Adoption of Accounting Standard for Fair Value Measurement, etc.)
The Company adopted the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30,
July 4, 2019; hereinafter the “Fair Value Measurement Standard”), etc., from the beginning of thecurrent fiscal year and will prospectively apply the new accounting policies stipulated by the Fair
Value Measurement Standard, etc., in accordance with the transitional treatment stipulated in
Paragraph 19 of the Fair Value Measurement Standard and Paragraph 44-2 of the Accounting Standard

26
Notes to non-consolidated financial statements

for Financial Instruments (ASBJ Statement No. 10, July 4, 2019).
This does not affect the non-consolidated financial statements for the current fiscal year.
(Note to changes in the manner of presentation)(Balance sheets)“Accounts receivable - other” was presented within “Other current assets” in current assets up to theprevious fiscal year, but has been presented separately from the current fiscal year due to an increase
in its financial materiality.
“Accounts receivable - other” in the previous fiscal year was 15 million yen.

27
Notes to non-consolidated financial statements

(Notes to balance sheet)
1. Accumulated depreciation of property, plant and equipment

2,363 million yen

2. Guarantee liabilities
Guarantees are provided for the bank loans and bonds of the following companies.
Asahi Refining Canada Ltd.
88,763 million yen
Asahi Refining USA Inc.
23,067 million yen
Total
111,830 million yen
3. Monetary claims and monetary obligations related to affiliated companies
Short-term monetary claims
58,037 million yen
Short-term monetary obligations
16 million yen
Long-term monetary claims
14,319 million yen(Notes to statement of income)Amount of transactions with affiliated companies
Amount of operating transactions with affiliated companies
Operating revenue
Amount of other operating transactions
Amount of transactions other than operating transactions

16,229 million yen
23 million yen
543 million yen(Notes to statement of changes in net assets)
Class and number of treasury stocks
Number of shares Number of shares Number of shares Number of sharesat the beginning
increased during
decreased during at the end of thisClass of shares of this fiscal year this fiscal year
this fiscal year
fiscal year
(Thousands of(Thousands of(Thousands of(Thousands ofshares)shares)shares)shares)Common stocks
505
1,332
772
1,065
Total
505
1,332
772
1,065
(Notes) 1. The Company conducted a stock split with a ratio of two-for-one on April 1, 2021.
2. The increase of 1,332 thousand shares in treasury shares of common stock was due to theincrease of 505 thousand shares following a stock split, the increase of 0 thousand sharesfollowing the purchase of shares less than one unit, and the acquisition of 826 thousand
shares of the Company by the ESOP trust and the BIP trust.
3. The decrease of 772 thousand shares in treasury shares of common stock was due to thedelivery of shares of the Company held in trust.
4. The treasury shares include 916 thousand shares held by the ESOP trust and 81 thousand
shares held by the BIP trust.

28
Notes to non-consolidated financial statements

(Notes to accounting estimates)
1. Valuation of shares of affiliated companies(1) Amount recognized in the non-consolidated financial statements for the current fiscal year
Shares of affiliated companies
36,087 million yen(2) Other information relating to accounting estimates which contributes to understanding by usersof the non-consolidated financial statements
1) Calculation method of the amount recognized in the non-consolidated financial statements
for the current fiscal year
Shares of affiliated companies are recognized at cost mainly determined by the movingaverage method.
2) Main assumptions used for calculating the amount recognized in the non-consolidated
financial statements for the current fiscal year
As all shares of affiliated companies do not have market value, the necessity of reductions invalue is determined by comparing and considering the real value and book value of therespective shares of affiliated companies. The real value of shares of affiliated companies isevaluated at the net asset amount of each affiliated company or the net asset amount in which
excess earnings power is reflected and the excess earnings power is evaluated based on futurebusiness plans.
3) Impacts on the non-consolidated financial statements for the following fiscal year
If, as a result of changes in uncertain future economic conditions and other factors, financial
conditions of the affiliated companies worsen or excess earnings power is impaired, the nonconsolidated financial statements for the following fiscal year may be significantly affected.
For this reason, although the main assumptions stated in 2) are for gaining the best estimates,
these may differ from subsequent results depending on changes in the future economic
conditions and other factors.
2. Recoverability of deferred tax assets(1) Amount recognized in the non-consolidated financial statements for the current fiscal year
5,495 million yen
Deferred tax assets(2) Other information relating to accounting estimates which contributes to understanding by usersof the non-consolidated financial statements
1) Calculation method of the amount recognized in the non-consolidated financial statements
for the current fiscal year
Deferred tax assets are recognized based on future taxable income estimated from futurebusiness plans.
2) Main assumptions used for calculating the amount recognized in the non-consolidated
financial statements for the current fiscal year
Deferred tax assets are recognized to the extent that it is probable that taxable income will beavailable for which the deductible temporary differences can be utilized. In determination ofa possibility that taxable income will be available, the timing and amount of taxable income
are estimated based on business plans.

29
Notes to non-consolidated financial statements3) Impacts on the non-consolidated financial statements for the following fiscal year
The timing when taxable income arises and the amount thereof may be affected by results ofchanges in uncertain future economic conditions, etc. If there are differences between theactual timing and amounts and those estimated, this may have a material impact on theamount for recognizing deferred tax assets in the non-consolidated financial statements forthe following and subsequent fiscal years. For this reason, although the main assumptions
stated in 2) are for gaining the best estimates, these may differ from subsequent results
depending on the future changes in economic conditions, etc.

30
Notes to non-consolidated financial statements

(Notes to tax effect accounting)Breakdowns of main items causing deferred tax assets and deferred tax liabilities
Deferred tax assets
Loss
7,166 million yen
Impairment losses
68 million yen
Provision for directors’ bonuses
16 million yen
Provision for stocks payment
10 million yen
Business tax
12 million yen
Other
12 million yen
Subtotal
7,287 million yen
Valuation allowance(1,791) million yen
Total deferred tax assets
5,495 million yen
Net deferred tax assets
5,495 million yen(Notes to transactions with related parties)
Subsidiaries and affiliated companies, etc.
Category

Subsidiary

Subsidiary

Name ofcompanies

Asahi Pretec
Corp.

Asahi Refining
Canada Ltd.

Voting rights

Owned
Direct 100%

Relationshipwith relatedparties

Details oftransaction

Collection ofloaned funds
Loan of funds
Support of funds(Note 1)
Receipt ofinterest(Note 1)
Receipt of debt
guarantee on the
Receipt of debt
Company’s bankguarantee
loan(Note 2)
Management
Management
guidance
guidance(Note 3)
Individually
attributable
Consolidated
amounts due totaxation
consolidated
taxation
Receipt ofReceipt ofdividends
dividends
Debt guarantee(Note 4)
Debt guarantee
Receipt ofguarantee fee(Note 3)

Owned
Direct 100%

Loan of funds(Note 1)

Amount oftransaction(Millions ofyen)
53,04752,741

Asahi Refining
Subsidiary
USA Inc.

Owned
Direct 100%

Debt guarantee

31
Notes to non-consolidated financial statements

Short-termloans toaffiliatedcompanies

52,741

171

–

–

7,000

–

–

576

–

–

5,113

Accounts
receivable other

5,113

15,100––88,763

–

–

83

–

–

14,319Long-termloans toaffiliatedcompanies

14,319137––

23,067

–

–

130

–

–

Support of funds
Receipt ofinterest(Note 1)
Debt guarantee(Note 4)
Receipt ofguarantee fee(Note 3)

Account

Term-endbalance(Millions ofyen)Transaction terms and conditions and policy, etc., to determine terms and conditions fortransactions(Note 1) As for loans of funds, we reasonably determine interest rates taking into consideration
market interest rates.
(Note 2) The Company has received a debt guarantee on its bank loan from Asahi Pretec Corp., asubsidiary of the Company. The Company does not pay guarantee fees.
(Note 3) We determine prices and other terms and conditions for transactions by reference toprevailing market interest rates, etc.
(Note 4) A debt guarantee was provided for corporate bonds and borrowings and a guarantee fee
is received with an annual rate of 0.3%.
(Notes to recognition of revenue)
Information forming the basis for understanding revenue is as described in “Accounting standards
for revenue and expenses” of “Notes to significant accounting policies.”(Notes to information per share)
Net assets per share
Net profit per share
Diluted net profit per share

1,032.41 yen
190.19 yen
188.95 yen(Notes to significant subsequent events)
Not applicable

32
Notes to non-consolidated financial statements