Securities Code5857

Business Report for FY2011
From April 1,2011 to March 31,2012

To Our Shareholders
Thank you for your ongoing support. It has now been 60 years
since our founding as Asahi Chemical Laboratory. On thisoccasion, all the employees of the Asahi Holdings Group areunited in cooperation to pursue the further development of theGroup. ＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
During the 3rd business term (April 2011 through March 2012),
conditions remained harsh for the Japanese economy due tofactors such as the Great East Japan Earthquake, the European
debt crisis, and the high yen.＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
Even under these circumstances, the Asahi Holdings Group
proceeded with business expansion in Japan and abroad. At thesame time, it worked to secure profits through marketing efforts
and cost reductions. This enabled the Group to achieve record
sales, operating profit, and ordinary profit.＿＿＿＿＿＿＿＿＿＿In the precious metal recycling business, efforts to acquire newcustomers and to expand overseas, along with continued highmarket prices for the metals we handle, led to higher year-on-year
volumes of collection for gold, silver, and palladium.＿＿＿＿＿＿In April 2012, the Asahi Holdings Group launched its 6th MidTerm Business Plan. Reflecting the harshness of the current
business environment, projections for the next fiscal year are
sales of 105,000 million yen and operating profit of 9,000 million
yen. In the precious metal recycling business, because we willswitch a part of the sales transaction business to fee-based
processing business beginning in FY 2012, sales will decrease
compared to the existing sales transaction under which we havepurchased precious metal materials. During the final fiscal year(April 2014 through March 2015) the targets are sales of 130,000
million yen and operating profit of 11,500 million yen.＿＿＿＿＿
As for dividends during the coming fiscal year, in view of thestability of return, we plan on an interim dividend of 30 yen per
share and a year-end dividend of 30 yen per share, for a total
annual dividend of 60 yen per share.＿＿＿＿＿＿＿＿＿＿＿＿＿
We ask all our shareholders for their continued understanding andsupport of the activities of the Asahi Holdings Group.＿＿＿＿In the environmental preservation business, even with the impactof the slowdown in domestic production activities, the volume ofwaste oil, waste fluid, medical-related waste, and so on increased
compared to the previous year.＿＿＿＿＿＿＿＿＿＿＿＿
Consequently, operating results for the current fiscal year were as
follows: consolidated sales 151,094 million yen, operating profit
11,217 million yen, ordinary profit 11,130 million yen, and current
net income 5,926 million yen.＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
Based on the above operating results, the year-end dividend forthe term was 30 yen per share. Combined with the interim
dividend, the annual dividend per share was 60 yen.＿＿＿＿＿＿CEOThe 6th Mid-Term Business Plan (FY 2012–2014)

Slogan:ACTⅢ，with Asahi Way

The Asahi Holdings Group positions the period from its founding until its public stock offering as Act I of its history. Act II was the period
from the stock offering through the 5th Medium-Term Business Plan. Act III will be the 6th Mid-Term Business Plan, which will further
develop the Group’s international business. The spirit that has been passed down since our founding and must be preserved has been
expressed shortly and simply and translated into multiple languages as the “Asahi Way.”＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿With the Asahi Way as our anchor, ＿＿＿＿＿＿
we will open “Act III” with a spirit of “Innovation and Challenge”.
■ Management goals (FY 2014)
Consolidated sales

Consolidatedsales

130,000 million yen

Consolidated
operating profit

11,500 million yen

1,174（ Billion yen）

1,510

1,264

976
95

Consolidated operating profit

1,300

1,105
826

108

106

112

'10'1111578■Dividend policy
Targeting 30 - 35% of current net income'06'07△ 3'08'09

'12

'13

'14

In the precious metal recycling business, because we will switch a part of the sales transaction business to fee-based processing
business beginning in FY 2012, sales will decrease compared to the existing sales transaction under which we have purchased
precious metal materials.＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿

The 6th Mid-Term Business Plan (Strategic Focus: Three Acts)
In the period of the 6th Mid-Term Business Plan, we focus on the following three Actions:1) Expanding business in Asia
The Group will build partnerships with major local companies in South Korea, China, and other rapidly growing Asian markets.

2) Broadening business domains through M&A
The Group will aggressively pursue M&A with high potential returns.

3) Streamlining of the management of the GroupManagement functions of each company will be concentrated in the holding company, and management costs will be reduced
on a consolidated basis.
In addition, the Group will improve its internal information systems to achieve quick and efficient operations.

TOPICS●Operations begin at precious metals recycling plantin Guangdong, China＿＿＿＿＿＿＿＿＿＿＿＿＿＿The joint venture corporation Jiangmen Asahi Pretec Kanfort Environmental
Management, established in March 2010 by Asahi Pretec‘s Chinese subsidiary
Shanghai Asahi and the major Chinese precious metals recycling company
Kanfort Industrial, has completed construction of a precious metals recycling
plant in Jiangmen, Guangdong. Final preparations are underway for thescheduled commencement of full operations in August.＿＿＿＿＿＿＿＿＿
Guangdong is a leading automobile manufacturing area in China. Demand for
precious metals recycling in the catalysts field is expected.＿＿＿＿＿＿＿＿

Consolidated Financial Highlights
Net Sales (Millions of yen)Interim

160,000

Full-term

151,094

Ordinary Income (Millions of yen)Interim12,000Full-term

11,13010,50810,000126,444
120,000

7,922

8,000

110,504

6,034
5,475

6,000

80,00082,60379,38972,748

4,000

2,691

2,357

52,4862,000

35,85640,0000-514-2,0000
2009/3

2010/3

2011/3

2009/3

2012/3Net Income (Millions of yen)Interim

Full-term

2011/3Net Income per Share (Yen)

2012/3

Interim

Full-term

210

8,000

190.46

5,926

6,000

150

4,377

99.32

3,488

3,202

107.93

90

1,566

1,439

135.90120

4,000

183.20

180

6,144

2,000

2010/3

60

48.63

42.08

30

0

0-565
-2,000-30

2009/3

2010/3

2011/3

2012/3-16.91
2009/3

2010/3

Total Assets/Net Assets/Equity Ratio (Millions of yen, %)Net Assets per Share (Yen)80,0001,400

Net Assets

Total Assets

70,00059,14360,00040,00030,00059.6%
59.3%
27,07529,897

2012/3

1,198.77

1,200

66.6%
58,315

1,062.30

1,000

50,13945,63450,00070%

Equity Ratio

2011/3927.97840.1858.0%

38,902

34,341

800
60%

600
400

20,00020010,000
050%
2009/3

2010/3

2011/3

2012/30
2009/3

2010/3

2011/3

2012/3

Consolidated Financial Statements（Millions of yen）

Balance Sheet
As of March 31,
2011

ASSETS
Current assets
Cash and deposits
Notes and accounts receivabletrade

As of March 31,
2012

29,332
2,321

29,301
3,527

4,754

9,480

Merchandise and finished goods

5,914

2,123

Work in process
Raw materials and supplies

12,509
530
3,312
(10)
29,811
26,557
9,349
12,563
4,644
2,556
2,036
519
697

10,727
618
2,833
(11)
29,01425,763
9,495
12,910
3,356
2,490
1,970
519
760

Other
Allowance for doubtful accounts
Noncurrent assets
Property, plant and equipment
Buildings and structures, netLand
Other, net
Intangible assets
Goodwill
Other
Investments and other assets（Millions of yen）

As of March 31,
2011

LIABILITIESCurrent liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans
payableIncome taxes payable
Provision for bonuses
Provision for repairs
Provision for loss on disaster
Other
Noncurrent liabilities
Long-term loans payable
Provision for retirement benefits
Other
Total liabilities
NET ASSETS
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Accumulated other comprehensive
incomeValuation difference on available-for-sale securities
Deferred gains or losses onhedgesForeign currency translation
adjustment

Total assets

59,14358,315

As of March 31,
2012

20,475
3,405

16,130
3,253

9,448

4,545

1,000

1,000

2,512
741
100
59
3,208
4,325
2,500
205
1,620
24,801

3,267
659
100
3,306
3,282
1,500
65
1,716
19,41334,7364,480
6,074
29,976(5,795)39,0364,480
6,08734,124(5,656)

(422)

(201)

33

18(374)

(111)

(81)

(108)

28

67

Subscription rights to shares
Total net assets

34,341

38,902

Total liabilities and net assets

59,14358,315

Consolidated Financial Statements（Millions of yen）

Statements of Income
The twelve months
ended March 31,
2011

The twelve months
ended March 31,
2012

Net sales

110,504

151,094

Cost of sales

95,079135,003

Gross profit

15,42516,091

Selling, general andadministrative expenses

4,763

4,873

Operating income

10,661

11,217

Non-operating income

63117

Non-operating expenses

216204

10,508

11,130Extraordinary income

154

170

Extraordinary loss

122

489

Income before income taxes andminority interests

10,53910,810

Income taxes-current

3,080

4,706

Income taxes-deferred

1,315

178

Income before minority interests

6,144

5,926

Net income

6,144

5,926

Ordinary income（Millions of yen）

Statements of Cash FlowsThe twelve months
ended March 31,
2011

The twelve months
ended March 31,
2012

Net cash provided by (used in)operating activities

5,457

11,297

Net cash provided by (used in)investing activities(3,743)(2,278)Net cash provided by (used in)financing activities(1,129)(7,705)

Effect of exchange rate change
on cash and cash equivalents

(46)

(36)

Net increase in cash andcash equivalents

539

1,277

Cash and cash equivalents at
beginning of period

1,711

2,250

Cash and cash equivalents at
the end of period

2,250

3,527

Stock Information/Corporate Profile■ Total number of authorized shares 129,000,000 shares■ Total number of shares outstanding 36,254,344 shares
100 shares■ Number of shares per trading unit
9,621
■ Number of shareholders■ Principal shareholders

Name

Number of Percentage of_shares held
shares held_(thousands ofshares)(%)_

Japan Trustee Services Bank,Ltd. (Trust account)

1,525

4.21

The Master Trust Bank ofJapan, Ltd. (Trust account)

1,485

4.10

TERA ENTERPRISES Co., Ltd.

1,350

3.72

Mitsuharu Terayama

1,082

2.99

988

2.73

K&M Co., Ltd.

900

2.48

Masamichi Terayama

802

2.21

Asahi Employee Stock
Ownership Plan

640

1.77

Terra Corporation., Ltd.

600

1.65

RBC Dexia Investor Service
Bank Account Luxembourg
Non Resident Domestic Rate

571

1.58

State Street Bank and TrustCompany 505103(As of March 31, 2012)■ Corporate ProfileCorporate name
FoundedCapital
Number of employees
Business lines

Asahi Holdings, Inc.
April 2009（current Asahi Pretec Corp.
Established in 1952）¥4,480 million
1,277 (Consolidated)
Recycling and sales of precious & rare
metalsIndustrial waste treatment

Subsidiaries

Asahi Pretec Corp.
Japan Waste Corporation
Nihon Chemitec Co., Ltd.
Sansho Co., Ltd.
Shioiri Kenzai 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.

Foreign subsidiaries

ASAHI G&S SDN. BHD. (Malaysia)
Shanghai Asahi Pretec Co., Ltd. (China)
Asahi Pretec Korea Co., Ltd. (Korea)■ Board of Directors and Corporate Auditors(As of March 31, 2012)

CEODirectors

Mitsuharu Terayama
Tsutomu Sakurai
Yoshikatsu Takeuchi
Tomoya Higashiura
Shoji Morii*
Standing Statutory Auditor Yukio Tanabe
Kazuhiko Tokumine*
Statutory Auditor
Junzo Kojima**Outside cooperate executives pursuant to Article 2 of the Companies Act.

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 Techno Center (Kobe)■ Plants■ Recycling Centers■ Offices

Saitama, Amagasaki, Kobe, Ehime,
Kitakyushu, Kitakyushu Hibiki, Fukuoka[Asahi Pretec Corp.]
Yokohama, Ougimachi (Kawasaki),
Aikawa (Kanagawa)[Japan Waste Corporation]
Saitama, Chiba, Amagasaki
Sapporo, Aomori, Sendai, Niigata,
Kitakanto, Kanto, Yokohama,Kofu, Shizuoka, Nagoya, Hokuriku,Kobe, Okayama, Hiroshima,Shikoku, Fukuoka, Kitakyushu,Kagoshima, Okinawa■ Bases with
ISO 14001

Head office (Kobe), Techno Center, Sendai,Kitakanto, Yokohama, Nagoya,Hanshin, Kobe,Shikoku, Kitakyushu, Fukuoka■ Bases with
ISO 9001

Techno Center,Saitama, Ehime, Fukuoka■ Bases withISO 27001

Hanshin-Office Amagasaki Recycling Center,
Saitama Recycling Center■ License for

All prefectures andgovernment ordinance cities

Collection andTransportation■ License for
Disposal

15 prefectures and10 government ordinance cities