Securities Code5857

Business Report for FY2012
From April 1, 2012 to March 31, 2013

To Our Shareholders
I would like to express our cordial appreciation for your continuing
support and loyal patronage.
During the 4th business term (April 2012 through March 2013),
conditions still remained harsh overall for the Japanese economy due tofactors such as weak domestic production activity against the back dropof slowdown in the global economy and the prolonged yen’s appreciation,although there seems to be economic recovery indication such ascorrection of strong yen and upturn in market value, anticipating for new
policies along with the new administration.
Under these severe economic conditions, in the precious metal recycling
business, domestic production shrinkage in the electronics and flat panel
display industry led to much lower year-over-year volumes of collection
for gold, silver, palladium, platinum and indium. Precious metal prices
were higher for gold and lower for silver, platinum, and palladiumcompared to the previous year. Net sales amount declined compared tothe previous year due to switching contracts in part of our transaction to
the “fee-based processing model”. In the environmental preservation
business, even with the impact of the downturn in domestic production
activities, the volume of waste oil, sludge and medical-related wastes,and etc. increased compared to the previous year.

Our Group have focused on execution of our strategic actions that wehave outlined in the 6th mid-term business plan; “Business expansion
in the Asian markets”, “Broadening business domain through M&A”,
and “Streamlining group management”. As part of the strategy, we
have established a wholly owned subsidiary in Taiwan and also a joint
venture with a local company. We have also set up a representative
office in Ho Chi Minh City, Vietnam. Operations of those overseas
offices has been started in April.
In the environmental preservation segment, we have added INTER
CENTRAL, INC to our portfolio of companies through M&A. We
continuously work toward better earnings growth by establishing astrong management infrastructure, and pursue to become an efficientand agile corporate group as a whole.
As for dividends during the coming fiscal year, we plan on an interim
dividend of 30 yen per share and a year-end dividend of 30 yen pershare, for a total annual dividend of 60 yen per share. ＿＿＿＿＿＿＿
We ask all our shareholders for their continuous understanding andsupport of the activities of the Asahi Holdings Group.＿＿

Consequently, operating results for the current fiscal year were as
follows: consolidated net sales 96,368 million yen, operating profit 7,495
million yen, ordinary profit 7,794 million yen, and net income 4,518
million yen.
As for the year-end dividend, in view of the stability of shareholders’return, we maintain 30 yen per share, for a total annual dividend of 60
yen per share including the interim dividend.

CEOTOPICS
Business Expansion in Asia
Asahi Pretec Korea Co., Ltd.
（Established in 2006，Korea）

Shanghai Asahi Pretec Co., Ltd.
（Established in 2003，China）

In February 2013, we have established “Asahi Pretec Taiwan Co.,Ltd.” as a wholly-owned subsidiary and a joint venture, “Asahi Shih
Her Technologies Co., Ltd.” with Shi Her Technologies Inc. which hasstrong expertise in precision cleaning business. The city of Hsinchu,
where our Taiwan offices are located, is the center of the electronics
and semiconductor industry. We will expand our precious metal
recycling business utilizing our strong technical expertise. --------------We have also established a representative office in Ho Chi Minh,
Vietnam to further develop and better service our customer base inAsia.------------------------------------------------------＿＿＿＿＿
With the new locations added to our existing office and facilities inKorea, China and Malaysia, we shall make a solid progress indeveloping business in Asia.
＿＿＿＿＿

Asahi G&S Sdn, Bhd.
（Established in 1994，Malaysia）

Asahi Pretec Taiwan Co., Ltd.
Establishment
Business
Operation started： February 2013（wholly-owned subsidiary）： Collecting and recycling precious metals in the field ofElectronics and Semiconductor industry： April 2013

Asahi Shih Her Technologies Co., Ltd.
Establishment
Business

Operation started： March 2013 （80% investment）： Collection and recovery of precious metals from tools andjigs of electronics, semiconductor/LED manufacturing
equipments. Precision cleaning.
： April 2013

The Representative Office of Asahi Pretec Corp. in Ho Chi MinhOperation started： April 2013

TOPICS
M&A Acceleration:
Incorporation of INTER CENTRAL, INC. into our GroupIn July 2012, INTER CENTRAL, INC. became a wholly owned
subsidiary of our company Group. INTER CENTRAL
manufactures and sells a variety of electric heater equipments
and designs and constructs radiant air-conditioning systems.
INTER CENTRAL provides a variety of products for energy
conservation, which have been adopted by hospitals, schools,
cultural institutions, commercial facilities, and residential homes.
We will make further enhancement in the growth potential andprofitability by broadening our business domain and pursuingsynergistic effects among the Asahi Holdings group companies.

Maintaining and Enhancing Top-Level
Assay TechnologyAsahi Pretec achieved solid results in the analysis values at the
1st Proficiency Testing Scheme, performed by LBMA, London
Bullion Market Association, a world-class accreditedorganization.
＿＿＿
Our technical expertise to assay materials of precious metals
with accuracy, entrusted from our customers, is one of the mostcritical business infrastructures for our precious metal recyclingbusiness. W e shall continuously work towards further
enhancement of our sampling and assay expertise.---------------.

Since 2001, our Group have continuously worked towards
accelerating M&A. We will always pursue to become an
efficient and agile corporate group as a whole through M&A.
(History of M&A)
2001 Sansho Co., Ltd., Daimon Co., Ltd., and Eco-Material Co., Ltd.
2004 Nihon Chemitech Co., Ltd.
2005 Shioiri Kenzai Co., Ltd.
2006 Iyotec Co., Ltd.
2007 Nishiki Kosan Co., Ltd. and Taiyo Chemical Co., Ltd.
Transferred Environmental Business to Kita-Kyushu
2008 Fuji Rozai Co., Ltd.
2009 Transferred Glass Recycling Business to JW Glass Recycling Co., Ltd.
2010 Ecomax into our Group
2011 Usuda Manufacturing and Kyodo Chemical
2012 INTER CENTRAL, INC.

Handling of Conflict Metals
Conflict metals can be defined by any minerals derived fromcountries or regions, in which any inhuman acts such asconflicts, human trafficking, slavery, forced labor, child labor,
abuse, war crimes are performed. There is a world concern thatit can become a source of war chests.
.
Receiving a designated third-party audit, in compliance withEICC Gold Conflict-free Smelter Program, we acquired therelevant
EICC Gold Conflict-Free Smelter Program
Certification , which proves we are free from conflict metals.
Asahi Pretec Corp. will fulfill social responsibility commensuratewith a recycler of precious metals. ------------------------------------＿＿＿

Consolidated Financial Highlights
Net Sales (Millions of ｙen)InterimOrdinary Income (Millions of ｙen)

Full-term

151,094

160,000

Interim12,000Full-term

11,13010,50810,000110,504

120,000

6,034

82,603

5,475

6,000

72,74880,00052,48649,324

4,000
2,955

2,691

35,85640,000

7,794

7,922

8,000

96,3682,000
00

2010/3

2010/3

2011/3

2012/3

2011/3

2012/3

2013/3

2013/3Net Income (Millions of ｙen)Interim

Net Income per Share (Yen)

Full-term

8,000Interim

Full-term

210
190.46

5,926

6,000

139.24150

135.90

4,518

4,377
4,000

183.20

180

6,144

120

3,202

107.93

99.32

3,488
90

1,566

1,555

2,000

60

47.97

48.63

30

00

2010/3

2011/3

2012/3

2013/3

2010/370%
Net A sset sTot al Ass ets

70,00059,14360,000E quity Ratio

67.3%

66.6%

1,400
1,198.77
1,200

50,13959.6%

40,00029, 897

58.0%

1,000

42,01238,902

60%

34,341600

20,000400

10,000200
50%

02011/3

2012/3

2013/3

1,288.56

1,062.30
927.97800

30,0002010/3

2013/3

1,600

62,26058,31550,0002012/3

Net Assets per Share (Yen)

Net A s s e ts /T o ta l A s s e ts /E q u ity Ratio (Millions of yen, % )80,0002011/30
2010/3

2011/3

2012/3

2013/3

Consolidated Financial Statements（Millions of yen）

Consolidated B alance Sheet
As of March 31,2012

ASSETSCur rent assets
Cash and deposits（Millions of yen）

As of March 31,
2013

29,301
3,527

33,2984,141

Notes and accounts receivable-trade

9,480

12,539Merchandise and finished goods

2,123Work in process
Other

10,7273,440

As of March 31,
2012

LIABILITIESCurrent liabilities
Notes and accounts payable-trade

As of March 31,
2013

16,1303,253

18,553
2,463

Short-term loans payable

4,545

10,245

5,067

Current portion of long-term loans payable

1,000

1,500

8,114
3,434

Account payables-other
Income taxes payable

1,412
3,267

1,388
349

29,01428,962Other2,651

2,603

25,763
9,495

24,9599,281

Noncurr ent liabilities
Long-term loans payable

3,282
1,500

1,694
-Land

2,721
12,9102,197
13,031

Deferred tax liabilities
Other

1,646
135

1,541
135

Other

635

449

Total liabilities

19,413

20,248

2,490
1,970

3,177
2,380

NET ASSETS
39,036

41,758

519

797

760
760

824
824

Shareholders' equity
Capital stock
Capital surplus

4,480
6,087

4,480
6,087

Retained earnings
Treasury stock
Accumulated other comprehensive
incomeSubscription rights to shares
Minority Interests
Total net assets
Total liabilities and net assets

34,124(5,656)

36,697(5,507)

(201)

116

67

77
59
42,01262,260Noncurrent assets
Property, plant and equipment
Buildings and structures
Machinery, equipment and vehicles

Intangible assets
Goodwill
Other
Investments and other assets
Other

Total assets
Notes: Amounts above are rounded down to unit of display.

58,31562,26038,90258,315

Consolidated Financial Statements（Millions of yen）

Consolidated Statements of Income
The twelve months
ended March 31,2012

The Fiscal Year
Ended March 31,2013

Net sales

151,094

96,368

Cost of sales

135,003

83,557Gross profit

16,091

12,811

Selling, general andadministrative expen ses

4,873

5,316

Operating inco me

11,217

7,495

Non -operating inco me

117

363

Non -operating expenses

204

64

11,1307,794

Extraordinary inco me

170

14

Extraordinary loss

489

459

Income before income taxes andminority in terests

10,810

Income taxes-cu rrent
Income taxes-deferred（Millions of yen）

Consolidated Statements of Cash FlowsThe twelve months
ended March 31,
2012

The Fiscal Year
Ended March 31,
2013

Net cash provided by (used in)o peratin g activities

11,297(419)

Net cash provided by (used in)investin g activities(2,278)(2,064)

Net cash provided by (used in)financing activities(7,705)2,603

Effect of exchan ge r ate chang eo n cash and cash equivalen ts

(36)

494

Net increase in cash andcash equ ivalents

1,277

613

7,349

Cash an d cash equ ivalen ts at
beginning of period

2,250

3,527

4,706

2,525

3,527

4,141

178

305

Cash an d cash equ ivalen ts at
the end of period

Income before min ority interests

5,926

4,518

Net inco me

5,926

4,518

Ordinary income

Notes: Amounts above are rounded down to unit of display.

Stock Information/Corporate Profile■ Total number of authorized shares

129,000,000 shares■ Total number of shares outstanding

36,254,344 shares■ Number of shares per trading unit

100 shares■ Number of shareholders■ Principal shareholders

Name of Shareholders

8,962 persons

Number ofShares-held(thousand ofshares)

Percentageof sharesheld(%)

The Master Trust Bank of Japan Ltd.
(Trust account)

1,569

4.33

TERA ENTERPRISES Co., Ltd.

1,350

3.72

State Street Bank and TrustCompany 505103

1,174

3.24

Japan Trustee Services Bank, Ltd.
(trust account)

1,134

3.13

Mitsuharu Terayama

1,082

2.99

K&M Co., Ltd.

900

2.48

Masamichi Terayama

802

2.21

Asahi Employee Stock Ownership Plan

635

1.75

TERA ENTERPRISE Co., Ltd.

600

1.65

MS planning Co., Ltd.

570

1.57

※Total Number of Treasury Shares (3.517,739 shares) are excluding from the above.

(As of March 31, 2013)■ Corporate Profile
Corporate name
Establishment
Establishment
Capital
Number of employees
Business lines

Asahi Holdings, Inc.
April 2009
July 1952 (as Asahi Pretec Corp.)¥4,480 million
1,328 (Consolidated)
Recycling of precious & rare metals
Industrial waste treatment(Industrial waste treatment and otherenvironmental preservation business)

Subsidiaries

Asahi Pretec Corp.
Japan Waste Corporation
JW Logistics Co., Ltd.
Nihon Chemitec Co., Ltd.
Taiyo Chemical Co., Ltd.
Iyotec Co., Ltd.
Fuji Rozai Co., Ltd.
JW Glass Recycling Co., Ltd.
Ecomax Incorporated
Usuda Manufacturing Co., Ltd.
Kyodo Chemical Co., Ltd.
INTER CENTRAL, INC.

Overseas subsidiaries

Asahi G&S SDN. BHD. (Malaysia)
Shanghai Asahi Pretec Co., Ltd. (China)
Asahi Pretec Korea Co., Ltd. (Korea)
Asahi Pretec Taiwan Co., Ltd. (Taiwan)
Asahi Shih Her Technologies Co., Ltd.
(Taiwan)■ Board of Directors and Corporate Auditors
Mitsuharu Terayama
CEO:President: Tsutomu Sakurai
Directors: Yoshikatsu Takeuchi
Tomoya Higashiura
Masayuki Hirano
Keitaro Shigemasa
Shoji Morii*

Standing
Statutory Auditor: Yukio Tanabe
Statutory Auditor: Kazuhiko Tokumine*
Junzo Kojima**Outside officers pursuant to Article 2, paragraph (3) item (v) of Ordinancefor Enforcement of the Companies Act.
The above will be officially selected at General Shareholders’ Meeting on June 18, 2013.

Business Network■ Head Offices

KOBE

Nissei Sannomiya Bldg., 4-4-17 Kano-cho, Chuo-ku, Kobe, 650-0001, Japan
Tel. +81-78-333-5633 (Pilot number) Facsimile +81-78-333-5681

TOKYO

Sapia Tower, 1-7-12 Marunouchi, Chiyoda-ku, Tokyo, 100-0005, Japan
Tel. +81-3-6270-1833 (Pilot number) Facsimile +81-3-6270-1859
http://www.asahiholdings.com■ Research Laboratory-------Technical Research Center (Kobe)■ Plants■ Bases with
ISO 14001

Saitama, Amagasaki, Kobe, Ehime,Kitakyushu, Kitakyushu Hibiki, Fukuoka(7 locations at Asahi Pretec Corp.)
Yokohama, Ohgicho (Kawasaki),Aikawa (Kanagawa)(3 locations at Japan Waste Corporation)■ Bases withISO 9001

■ Recycling Centers

Saitama, Chiba, Amagasaki■ Bases with

■ Offices

Sapporo, Aomori, Sendai, Niigata,
Kitakanto, Kanto, Yokohama,Kofu, Shizuoka, Nagoya, Hokuriku,
Hanshin, Kobe, Okayama, Hiroshima,Shikoku, Kitakyushu, Fukuoka,
Kagoshima, Okinawa (Total: 20 locations)■ License for

ISO 27001
Collection andTransportation■ License for
Disposal

Head office (Kobe), Technical Research Center,Sapporo, Aomori, Sendai, Kitakanto,
Chiba Recycling Center, Yokohama, Kofu, Shizuoka,Nagoya, Hokuriku, Hanshin, Kobe, Okayama,Hiroshima, Shikoku, Kitakyushu, Fukuoka, Okinawa
Technical Research Center, Saitama,Ehime, Fukuoka
Hanshin Office, Amagasaki Recycling Center,
Saitama Recycling CenterAll prefectures andgovernment ordinance cities
15 prefectures and9 government ordinance cities

General Information● Business Term
● Record Date
● Fixed Date of Dividend Paid
● Fixed date of Interim Dividend PaidApril 1 – March 31
March 31
March 31

● Shareholder Registry Administrator● Transfer Agent● Contact of the Agent

Mitsubishi UFJ Trust and Banking Corporation
Mitsubishi UFJ Trust and Banking Corporation● Public Notice

September 30

3-6-3 Fushimi-cho, Chuo-ku, Osaka City, Osaka 541-8502 JAPANMitsubishi UFJ Trust and Banking Corporation Osaka Stock Transfer Agent Dept.
TEL (0120) 094 -777
Electronic public notice http://www.asahiholdings.com/