To our shareholders

Business Report for FY2015
April 1, 2015

March 31, 2016

Asahi Holdings, Inc.
Stock Code ： 5857
Tokyo Stock Exchange (First Section)

To Our Shareholders
I would like to express our cordial appreciation for your continuous
support and loyal patronage.
In the Japanese economy during the consolidated fiscal year ended
March 2016, while the domestic economy had a trend toward moderate
recovery, the business environment for our company was harsh due toinfluence from slumping precious metals prices and slowdown in global
resource-related industries starting in the fall. Under such circumstances,
the group’s results in each segment were as follows.
Precious metal businessIn the electronics sector, the contraction of the domestic market
continues, but by expanding market share in the E-scrap business andthe precision cleaning businesses, the group increased the volume ofcollection of gold from corresponding figures for the previous fiscal year.
In the dental sector, with the amount of precious metals used for dental
materials declining, the volume of collection of gold and palladiumdecreased from the previous fiscal year. In the jewelry sector, increasingtransactions with customers in jewelry purchasing business led to ahigher year-on-year volume of collection of gold and platinum. In theautomotive catalyst sector, due to a continuing trend toward a decreasing
number of domestic scrapped vehicles, the year-on-year volume ofcollection of palladium and platinum decreased.
In the gold and silver refining business in North America, amidst stagnant
precious metals prices and a slowdown in global mining activities, bothprocessing volume and unit price continued to decline. Under suchcircumstances, while endeavoring toward company-wide cost reductionsby integrating technology of Asahi Refining and Asahi Pretec,
Asahi Refining continues to work on vigorous marketing activities toenhance awareness of “Asahi” brand.
Environmental preservation business
Reflecting the state of production activities of domestic businesses, adecreasing trend continues for the volume of industrial waste emissions.
Under these circumstances, as the result of putting efforts into newcontract development by leveraging each group company‘scharacteristics and expanding sales channels by collaboration amonggroup companies while working toward stable plant operations, theperformance was solid as a whole.

Life & health business
Amidst lacking recovery of personal consumption, Fujiiryoki is focusing
on measures to expand sales including the introduction of new products
for women and a full model change of the massage chair lineup, on top of
cost reduction. As a result, performance was robust in terms of profits.
The harsh business environment continues for Inter Central, the main
products of which are heaters, but in addition to reducing fixed costs, it isworking on promotion of replacement purchases by existing customers,
launching new products such as far-infrared heaters, and so on.
As a result of the above, in terms of the performance for this consolidated
fiscal year, sales were 118,473 million yen. Operating income was 8,705
million yen. Ordinary income was 8,510 million yen. Current profit
attributable to owners of parent net were 5,031 million yen.
Further, for the year ending March 31, 2017, we are planning to pay out
30 yen per share for both interim and year-end dividend, making the fullyear amount 60 yen per share.
We ask all our shareholders for their continuous understanding andsupport of the activities of the Asahi Holdings Group.

President & CEO

Topics (1/2)
Advancement of corporate governance□ Establishment of “Asahi Holdings Corporate
Governance Policies”
From the point of sustainable growth and mid-to long-term enhancementof Corporate value, we have established “Asahi Holdings Corporate
Governance Policies” at Board of Directors meeting held November 17.
Based on this policies, we will endeavor to enhance corporate governanceby implementing the policies.
[Chapter of Corporate Governance Policies]
Chapter-Ⅰ General Provisions
Chapter-Ⅱ Relation with Shareholders and others
Chapter-Ⅲ Proper DisclosureChapter-Ⅳ Stakeholder relationships
Chapter-Ⅴ Corporate Governance Structure
We have disclosed this policies on our website
Both in English and Japanese.
English http://www.asahiholdings.com/english/ir/library/governance/
Japanese http://www.asahiholdings.com/ir/library/governance/□ Disclosure of Evaluation Results Concerning
Effectiveness of the Entire Board of Directors
As one of the efforts to enhance corporate governance, we have started
evaluation from FY2015 and disclosed the results through our website.
The evaluation was conducted from the 6 points below.
*For details of the results, please refer to our website.

【Evaluation categories in questionnaire】(a)Discussion of corporate strategies and other broad directions(b)Environmental development supporting appropriate risk-taking(c)Fulfillment of highly effective supervision(d)Appropriate communication with shareholders, etc.
(e)Composition of the Board of Directors(f)Operation of the Board of Directors meetings

Topics (2/2)
Our Annual Activities(March 2015-March 2016)
2015

2016

Apr.

May.

Jun.


Jul.

Aug.

Sep.

Oct.

Dec.

Jan.

Feb.

Mar.

Financial results for 2Q(Oct. 28)
 Financial results for 3Q(Feb.1)
 Financial results for 1Q (Jul. 28)

Financial results for fiscal year(May 11)

Announcement of 7th mid-term business plan (Mar. 25)  Establishment of Nominating committee,


6th Shareholders meeting (Jun. 16)
Transition to a company with
Audit and Supervisory committee



Nov.

Compensation committee (Oct. 1)Establishment ofcorporate governance policies (Nov. 17)

Acquisition of Asahi Refining(Mar.)

Renewal of website(Nov.)

Group’s new products


mashua (Apr.)

AS-1000 (Nov.)
Fujiiryoki
Massage chair

Fujiiryoki
Foot air massagerMy relax (Dec.)
Fujiiryoki
Seat massager

Seraphy (Nov.)
Inter central
Far- infrared heaterConsolidated Financial Highlights (1/2)(Millions of yen)

Consolidated Balance Sheet(Millions of yen)

Consolidated Statements of Income
As ofMarch31,2015

As ofMarch31,2016

The Fiscal
Year ended
March 31, 2015

The Fiscal
Year Ended
March 31, 2016

Net sales

111,417

118,473

Cost of sales

88,34092,719ASSETS
Current assets

48,556

51,570Noncurrent assets

56,32152,019Property, plant and equipment

32,33430,791Intangible assets

22,643

20,105Gross profit

23,07625,753Investments and other assets

1,343

1,121

17,048103,589

Selling, general andadministrative expenses

12,595

104,877

Operating income

10,4808,705

Non-operating income

183

89

Non-operating expenses

102

284

10,561

8,510

Extraordinary income

19109

Extraordinary loss

863

512

Total assets
LIABILITIESCurrent liabilities

45,60328,442

Noncurrent liabilities

8,316

23,806

Total liabilities

53,91952,28849,81952,747

Capital stock

4,480

4,480

Capital surplus

6,038

6,112

Retained earnings

44,45947,524

Treasury stock(5,159)(5,371)

Income before income taxes

9,717

8,106

Total accumulated other comprehensive
income685(1,884)

Income taxes-current

3,916

3,153

Subscription rights to shares

77-

Income taxes-deferred

(40)

(179)

Non-controlling interests

375

438

Total net assets

50,95851,300

Profit attributable tonon-controlling

67

100

Total liabilities and net assets

104,877

103,589

Profit attributable toowners of parent

5,774

5,031

NET ASSETS
Ordinary income
Shareholders' equity

Notes: Amounts above are rounded down to unit of display

Notes: Amounts above are rounded down to unit of displayConsolidated Financial Highlights (2/2)(Millions of yen)

Consolidated Statements of Comprehensive Income■Net(Millions of Yen)
■売上 高Sales（単位：百万円）

Interim

160,000

The Fiscal
Year ended
March 31, 2015

The Fiscal
Year Ended
March 31, 2016

5,842

5,132

118,473

111,417

120,000

96,36894,25480,000

ProfitFull-term

49,324

61,646

51,63247,88440,000Total other comprehensive income

131(2,577)
0
2013/03

Comprehensive income

5,973

2,554

2014/03(Millions of yen)

Consolidated Statements of Cash Flows

8,705
7,495

8,000

5,260

6,000

The Fiscal
Year EndedMarch 31, 2016

9,419

14,289

4,820

4,674

2,896

4,000

The Fiscal
Year ended
March 31, 2015

Full-term

10,480

9,631

10,0002016/03

Interim12,000Notes: Amounts above are rounded down to unit of display

Net cash provided by (used in)operating activities

2015/03■Operating Income (Millions of Yen)
■営 業 利 益（単位：百万円）

2,00002013/03

2014/03

2015/03■１株あたり親会社株主に帰属する当期（中間期）■Net
Income per Share (Yen)Interim183.50200

2016/03

Full-term

176.89153.54

Net cash provided by (used in)investing activities

139.24150(29,633)(1,900)100.7989.25

100

Net cash provided by (used in)financing activities

21,442(6,473)

Effect of exchange rate change on
cash and cash equivalents

143(191)

Net increase (decrease) in cash
and cash equivalents

1,371

Cash and cash equivalents at
beginning of period

9,470

10,841

Cash and cash equivalents at theend of period

10,841

16,564

Notes: Amounts above are rounded down to unit of display

47.97
500
2013/03

5,723

83.93

2014/03

2015/03

2016/03■ROE (%)■ROE（単位：％）

ＲＯＥ

15%

10%

13.6%
11.9%

11.2%

9.9%

5%

0%
2013/03

2014/03

2015/032016/03

Stock Information / Corporate Profile■ Stock Information
Total number of authorized shares
Total number of shares outstanding
Number of shares per trading unit
Number of shareholders(As of March 31, 2016)

129,000,000 Shares
36,254,344 Shares
100 Shares
11,129 Person■ Principal shareholders
Number ofShares-Held(ThousandShares)

Ratio ofShareHolding(%)

Japan Trustee Services Bank, Ltd.
(Trust account)

2,007

5.54

TERA ENTERPRISES Co., Ltd.

1,350

3.72

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

923

2.55

Mitsuharu Terayama

882

2.43

Name of Shareholders■ Corporate Profile
Corporate name
Establishment
Foundation
Capital
Number of employees
Business lines(As of March 31, 2016)

Asahi Holdings, Inc.
April 2009
July 1952¥4,480 million
2,005 (Consolidated)
Recycling, refining and sales of precious metals
Industrial waste treatment(Industrial waste treatment and other environmental
preservation business)

Manufacturing and sales, construction of life andhealthcare related equipment

Subsidiaries
JW Glass Recycling Co., Ltd.
Asahi Pretec Corp.
Taiyo Chemical Co., Ltd.
Japan Waste Corporation
Asahi Americas Holdings,Inc Kyodo Chemical Co., Ltd.
Iyotec Co., Ltd.
JW Logistics Co., Ltd.
FUJI MEDICAL INSTRUMENTS MFG. Co., Ltd.
Nihon Chemitec Co., Ltd.
Fuji Rozai Co., Ltd.
INTER CENTRAL, INC.
Ecomax Incorporated
KOEIKOGYO CO., LTD.
Overseas subsidiaries

Masamichi Terayama

802

2.21

K&M Co., Ltd.

700

1.93

Asahi Employee Stock Ownership Plan

698

1.93

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)
Asahi Refining USA Inc. (USA)Asahi Refining Canada Ltd. (Canada)■ Board of Directors

Japan Trustee Services Bank, Ltd.
(Trust account 9)531

CBNY-GOVERNMENT OF NORWAY

529

1.46

STATE STREET BANK AND TRUSTCOMPANY 505025

519

1.43

1.47

※Total Number of Treasury Shares (3,432,607 shares) are excluding from the above.

President & CEO: Mitsuharu Terayama
Directors:
Yoshikatsu Takeuchi

Tomoya Higashiura
Keitaro Shigemasa
Kazuo Kawabata

Directors: Shoji Morii *1 *2

Yukio Tanabe *1
Kazuhiko Tokumine *1 *2
Hiroharu Okubo *1 *2*1 Audit and Supervisory Committee member*2 Outside officers pursuant to Article 2, paragraph (3) item (v) of Ordinance for

Enforcement of the Companies Act.

Head Offices
Asahi Holdings Group operates the business in three segments: the precious metal business, the environmental preservation business, and the life& health business under Asahi Holdings, Inc. which is the pure holding company.

■ 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, JapanTel. +81-3-6270-1833 (Pilot number) Facsimile +81-3-6270-1859

General Information● Business Term
● Record Date
● Fixed Date of Dividend PaidApril 1 - March 31
March 31

● Fixed date of Interim Dividend Paid

September 30● Shareholder Registry Administrator● Transfer Agent

Mitsubishi UFJ Trust and Banking Corporation

March 31

Mitsubishi UFJ Trust and Banking Corporation● Contact of the Agent

3-6-3 Fushimi-cho, Chuo-ku, Osaka City, Osaka 541-8502 JAPANMitsubishi UFJ Trust and Banking Corporation Osaka Stock Transfer Agent Dept.

● Public NoticeElectronic public notice http://www.asahiholdings.com/