To our shareholders

Interim Business Report for FY2017
April 1, 2017

September 30, 2017

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 second quarter of the current fiscal
year (April 1, 2017 through September 30, 2017), corporate earnings andemployment situation began to improve on the back of the government’s
economic policies and the Bank of Japan’s monetary easing policies.
Although signs of recovery were observed in personal consumption, theoutlook remains opaque due to the insecure global situation and otherfactors. Under these economic conditions, the group’s results in eachbusiness segment were as follows.＿＿＿＿＿＿＿＿＿＿＿＿・＿＿＿
Precious metal business ＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
Volume of collection in the precious metals except silver Increased fromthe same period in the previous year. Regarding the average prices ofprecious metals, the average prices of gold and palladium rose from thesame period in the previous year, while those for silver and platinum fellduring the same period.¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥・¥¥¥＿＿
Environmental preservation business＿＿＿＿＿＿＿＿＿＿＿＿＿＿
With the volume of industrial waste discharged in Japan on a downward
trend in general, the volume of waste handled by the group registered adecrease from the same period in the previous year for some items. The
group launched an efforts to develop new customers and obtain
contracts by capitalizing on their characteristics. Consequently, therevenue and operating income exceeded the levels in the same period inthe preceding year.¥¥/////¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥///・/¥¥

We announced “Notice Regarding Revision of Consolidated Financial
Results Forecast and Year-End Dividend Forecast for Fiscal Year Ending
March 2018” on October 26, 2017. We have revised the consolidated
financial results forecast, owing to precious metal prices exceeding ourinitial estimates, and collection volume of precious metals is expected toexceed the initial plan. Please refer to the following table for details.////In March 2017, the Company celebrated the15th anniversary of its listingon the first section of the Tokyo Stock Exchange. To express thanks toshareholders for their constant support, the Company decided to pay acommemorative dividend of 3 yen per share in addition to an ordinary
dividend as its Year-End dividend for the FY2017. Therefore the total
annual dividends forecast is revised from 60 to 63 yen./////////////////////////
Cons ol i da ted fi na ci a l res ul ts foreca s t endi ng Ma rch 31,2018＿Previ ous＿Cha nge(%)

120.0

120.0

―Opera ti ng Income

11.5

12.5

+8.7%

Profi t before ta x

11.3

12.3

+8.8%

Profit attributable to owners ofparent

7.6

8.3

+9.2%

Revenue＿*The above forecasts have been prepared based on the information available at the time ofissuance of this announcement. Actual results may differ from the aforementioned forecasts.///

We would like to ask all our shareholders for their continuous
understanding and support of the activities of the Asahi Holdings Group.

Life & health business ＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿In the health care equipment sectors, sales revenue saw an increase
from the same period in the previous year, thanks to the launching of anew, large-size massage chair and stepped-up marketing to promote themail order sales of massage.＿＿¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥¥＿/＿As a result of the above, revenue during the second cumulative quarterof the current fiscal year was 57,489 million yen, a year-on-year increaseof 5,797 million yen (+11.2 percent). Operating income was 6,383 million
yen, an increase of 686 million yen (+12.1 percent) year-on-year. Profit
attributable to owners of parent for the period was therefore 4,283 million
yen, an increase of 301 million yen (+7.6 percent) year-on-year./////////

Revi s ed(billion yen)

President & CEO

Topics15th Anniversary Commemorative Dividend
In March 2017, Asahi Holdings, Inc. celebrated the15th anniversary of its listing on the first section of the Tokyo Stock
Exchange. To express thanks to shareholders for their constant support, the Company decided to pay
a commemorative dividend of 3 yen per share in addition to an ordinary dividend as its Year-End dividend for the fiscal year
ending March 31, 2018.///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////・・////////

FUJIIRYOKI and INTER CENTRAL Received Good Design Award 2017.

FUJIIRYOKI(FUJI MEDICAL INSTRUMENTS MFG. Co., Ltd.)“Cyber Relax AS-1100” and “Relax Solution SKS-6900” prized Good Design Award 2017, which were designed as a high-ends
model with luxury and beauty. In addition to higher quality and function, they were praised for their comfortable design
matching the mood and other furniture in the living room or bed room.////////////////////////////////////////////////
INTER CENTRAL, Inc.
Two models of My Heat Seraphy “MHS-900A” and “MHS-700” (new model) also prized Good Design Award 2017.
The concept of products is “coziness and simplicity fitting to any space” and ”regularly usable heater for a long time”. They
were highly evaluated the calm and simple design which make user not bored and is considered safety.////////////// / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / ////

Cyber Relax Massage Chair AS-1100

My Heat Seraphy MHS-700

Consolidated Financial Highlights (1/2)(Millions of yen)

Condensed Consolidated Statements of Financial Position
As ofMarch31,2017(Millions of yen)

Condensed Consolidated Statements of Income

As ofSeptember
30,2017

The six month
ended
September 30,
2016

The six month
ended
September 30,2017

Revenue

51,691

57,489

Cost of sales

39,105

44,117Gross profit

12,586

13,372

Selling, general andadministrative expenses

7,483

7,142

Other operating income

629

184

Other operating expenses

3530

5,696

6,383

Finance income

847

Finance cost

206

210

Profit before tax

5,499

6,220

Income tax expenses

1,464

1,899

Profit

4,034

4,321

Profit attributable to owners of parent

3,981

4,283

5237

4,034

4,321

ASSETS
Current assets46,056

52,216

Noncurrent assets

42,92043,830Property, plant and equipment

31,98732,723

Intangible assets

9,156

9,240

Other assets

1,776

1,866

88,976

96,047

Current liabilities

20,78725,706

Noncurrent liabilities

23,361

23,293

Total liabilities

44,14848,999Total assets
LIABILITIESOperating income

EQUITY
Capital stock

4,480

4,480

Capital surplus

6,126

5,810

Treasury stock(5,371)(5,372)Retained earnings

42,783

46,120

Other components of equity(3,716)(4,016)

Total equity attributable to ownersof Parent

44,30347,023

Non-controlling interests

524

24

Total equity

44,82747,048

Profit attributable to non-controllinginterests

Total liabilities and equity

88,976

96,047

ProfitNotes: 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)

Condensed Consolidated Statements of Comprehensive Income
The six month
ended
September 30,
2016

The six month
ended
September 30,
2017

Profit

4,034

4,321

Other comprehensive income,net of tax(2,617)(269)

Comprehensive income

1,416

4,052

■Revenue (Millions of Yen)

Interim

Full-term

160,000
119,352

120,000
80,00062,790106,828

57,48951,69140,0000Notes: Amounts above are rounded down to unit of display

2016/3Condensed Consolidated Statements of Cash FlowsThe six month
ended
September 30,
2016

The six month
ended
September 30,
2017

741

4,366

Net cash provided by (used in)investing activities(1,803)(1,573)

Net cash provided by (used in)financing activities(5,264)(2,194)

6,057

5,690

Full-term

6,383

5,696

4,000
2,038
2,00002016/3

2017/3

2018/3■Net Income per Share (Yen)Interim113.43Full-term

131.39122.1387.48

100
500(50)(37.24)2017/3

2016/3

Effect of exchange rate change on
cash and cash equivalents(296)

Net increase (decrease) in cash
and cash equivalents(6,622)

489

Cash and cash equivalents at
beginning of period

16,564

10,798Cash and cash equivalents at theend of period

9,942

11,287

Notes: Amounts above are rounded down to unit of display

Interim

8,000

150

Net cash provided by (used in)operating activities

2018/3■Operating Income (Millions of Yen)
6,000(Millions of yen)

2017/3(109)

2018/3■ROE (%)
20%

17.8%

15%
10%
5%

5.8%

0%

-2.6%

-5%
2016/32017/3

2018/3

forecast

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 September 30, 2017)

129,000,000 Shares
36,254,344 Shares
100 Shares
8,192 Person■ Principal shareholders

Name of Shareholders

Number ofShares-Held(ThousandShares)

Ratio ofShareHolding(%)

Japan Trustee Services Bank, Ltd.
(Trust account)

2,158

5.95The Master Trust Bank of Japan, Ltd.
(Trust account)

1,479

4.08

TERA ENTERPRISES Co., Ltd.

■ Corporate Profile
Corporate name
Establishment
Foundation
Capital
Number of employees
Business lines

1,150

3.17

Mitsuharu Terayama

882

2.43

BNY GCM CLIENT ACCOUNT JPRD AC
ISG (FE-AC)

869

2.40

GOVERNMENT OF NORWAY

837

2.31

Masamichi Terayama

802

2.21

Asahi Employee Stock Ownership Plan

706

1.95

(As of September 30, 2017)

Asahi Holdings, Inc.
April 2009
July 1952¥4,480 million
1,928 (Consolidated)
Recycling, refining and sales of precious metals
Environmental preservation(Industrial waste treatment and other environmental
preservation business)

Manufacturing and sales, construction of life andhealthcare related equipment

Subsidiaries
Asahi Pretec Corp.
Japan Waste Corporation
Asahi Americas Holdings, Inc
JW Logistics Co., Ltd.
JW Chemitech Co., Ltd.
Fuji Rozai Co., Ltd.
Ecomax Incorporated

JW Glass Recycling Co., Ltd.
Taiyo Chemical Co., Ltd.
Iyotec Co., Ltd.
FUJI MEDICAL INSTRUMENTS MFG. Co., Ltd.

INTER CENTRAL, INC.
KOEIKOGYO CO., LTD.

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

K&M Co., Ltd.

700

1.93

REFUND 107-CLIENT AC

600

1.65

President & CEO:
Directors:

Mitsuharu Terayama
Yoshikatsu Takeuchi
Tomoya Higashiura
Kazuo Kawabata
Amane Kojima

Directors: Shoji Morii *1 *2

Yukio Tanabe *1
Yuji Kimura *1 *2
Kyoko Kanazawa *1 *2*1 Audit and Supervisory Committee member*2 Outside officers pursuant to Article 2, paragraph (3) item (v) of Ordinance for※Total Number of Treasury Shares (3,433,137 shares) are excluding from the above.

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, JapanTel. +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

General Information● Business Term
● Record Date
● Fixed Date of Dividend Paid
● Fixed date of Interim Dividend Paid
● Shareholder Registry Administrator● Transfer Agent● Contact of the Agent● Public Notice

April 1 - March 31
March 31
March 31
September 30
Mitsubishi UFJ Trust and Banking Corporation
Mitsubishi UFJ Trust and Banking Corporation
3-6-3 Fushimi-cho, Chuo-ku, Osaka City, Osaka 541-8502 JAPANMitsubishi UFJ Trust and Banking Corporation Osaka Stock Transfer Agent Dept.
Electronic public notice http://www.asahiholdings.com/