To our shareholders

Business Report for FY2016
April 1, 2016

March 31, 2017

Figures stated in these financial results are presented on
the basis of IFRS. Figures for the six months ended
September 30, 2015 and the full-year figures for theprevious fiscal year have been presented on the basis of
IFRS through the reclassification of JGAAP-based figures
disclosed in the previous fiscal year.＿＿＿＿＿＿＿＿＿

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 supportand loyal patronage.＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿In the Japanese economy during the consolidated fiscal year ended March
31, 2017, moderate recovery continued, as exhibited by signs ofimprovement in corporate earnings and employment environment, on theback of the government’s economic policies and the Bank of Japan’s
monetary easing policies, despite lackluster personal consumption figures.
The political changes have had a significant impact on the currency
exchange and commodity market conditions.＿＿＿＿＿＿＿＿＿＿＿＿＿＿
Under these economic conditions, the group’s results in each businesssegment were as follows.＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
Precious metal business ＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
Volume of collection in the precious metals recycling business was asfollows. In the electronics sector, the volume of collection of gold was at thesame level as in the same period a year earlier despite the continued
contraction of the domestic market, thanks to the sustenance of current
customers and development of new customers in the E-scrap and precision
cleaning businesses. In the dental sector, amidst the amount of precious
metals used for dental materials declining, the volume of collection of goldand palladium remained at the same level as in the same period last year. In
the jewelry sector, the volume of collection of platinum was larger than in thesame period a year before, although the year-on-year volume of collection ofgold was lower due to continued drop in the volume of distribution in thepurchasing market. In the automotive catalyst sector, vigorous marketing
efforts led to a higher volume of collection of palladium and platinum than in
the same period a year earlier despite the continued decline in the number ofdomestic scrapped vehicles. Regarding the average price of precious metals,
the average price for silver was higher than in the same period a year before,
while the average prices for gold, palladium and platinum were lower than int h e s a me p e ri o d l a s t y e a r . ＿ ＿ ＿ ＿ ＿ ＿ ＿ ＿ ＿＿ ＿ ＿ ＿ ＿＿ ＿ ＿As for gold and silver refining business in North America, the unit price forcommissioned refining business remained at a low level due to continued
slowdown of related industries. This affected revenue of the business, andas a result of a careful review of the future recoverability of goodwill
generated on the acquisition of Asahi Refining, an impairment loss of 7,512
million yen was recorded. As a result of this, the outstanding balance of
goodwill for Asahi Refining decreased to zero.＿＿＿＿＿＿＿＿＿＿＿＿＿

Environmental preservation business＿＿＿＿＿＿＿＿＿＿＿＿＿＿
Although the volume of industrial waste discharged in Japan is on adownward trend in general, the overall volume handled by the groupremained stable as group companies focused on developing new customers
and obtaining contracts by capitalizing on their characteristics and intercompany collaboration. ＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
Life & health business ＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿In the health care equipment sectors, overall sales of large-size massage
chairs as the core item and other products remained sluggish amidst weakpersonal consumption and other factors despite efforts to expand the sales of
low-style massage chairs, small-sized massage devices, and electrolytichydrogen water ionizers, among others. As for fire-fighting equipment,
business remained strong thanks in part to an increase in building
construction projects in the metropolitan area.＿＿＿＿＿＿＿＿＿＿＿＿＿As a result of the above, in terms of the performance for this consolidated
fiscal year, revenue was 106,828 million yen. Operating income was 2,038
million yen. Loss attributable to owners of parent was 1,213 million yen.＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
Further, for the year ending March 31, 2018, we are planning to pay out 30
yen per share for both interim and year-end dividend, making the full year
amount 60 yen per share.____＿＿＿＿＿＿＿＿＿____________________ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _We ask all our shareholders for their continuous understanding and supportof the activities of the Asahi Holdings Group._＿＿＿＿＿＿＿________

President & CEO

Topics
Our Annual Activities (April 2016- May 2017)
2017

2016

Apr.

May


Jun.

Jul.

Financial results
for fiscal year (May. 10)

Aug.
Sep.

Financial resultsfor 1Q (Jul. 28)

Oct.

Nov.
Dec.

Jan.

Feb

Financial resultsfor 2Q (Oct. 28)

Mar.

Financial resultsfor 3Q (Feb. 1)

 Selected as a component issue for theTransition to IFRS (Apr.)
JPX-Nikkei Mid and Small Cap Index(Nov.)th Shareholders meeting (Jun.14)
8 Renovated Fukuoka Office (Sep.) Added special content
Asahi Pretec
to Asahi Holdings, Inc. website (Apr.)
Fukuoka Office outside shot

Group’s New Products

MyHeat Seraphy MHS-900A (Sep.)
Far infrared heater／Inter CentralMy relax MRL-1100 (Nov.)
Seat massager / Fujiiryoki

Auto core training FF-100


Low style massage chair H AS-LS1 (Dec.)
Massage chair / Fujiiryoki

Low style massage chair H AS-LS1

MyHeat Seraphy MHS-900A

Auto core training FF-100 (Dec.)
Fitness machine/ Fujiiryoki

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

Condensed Consolidated Statements of Financial Position
As ofMarch
31,2016(Millions of yen)

Condensed Consolidated Statements of Income

As ofMarch
31,2017

The Fiscal
Year ended
March 31, 2016

The Fiscal
Year ended
March 31, 2017

Revenue

119,352

106,828

Cost of sales

93,39482,520Gross profit

25,95824,307

Selling, general andadministrative expenses

15,69915,215

Other operating income

109729Other operating expenses

4,310

7,784

Operating income

6,057

2,038

Finance income

39

17

Finance cost

227

304

Profit before tax

5,868

1,751

Income tax expenses

2,883

2,837

Profit2,985(4,034)

Profit attributable to owners of parent

2,867(1,213)

118

127

2,985

(1,086)ASSETS
Current assets

49,73746.056

Noncurrent assets

51,861

42,920Property, plant and equipment

31,78831,987

Intangible assets

17,892

9,156

Other assets

2,180

1,776

101,599

88,976

Total assetsLIABILITIESCurrent liabilities

28,917

20,787

Noncurrent liabilities

23,69323,361

Total liabilities

52,61044,148EQUITY

Capital stock

4,480

4,480

Capital surplus

6,112

6,126

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

45,84542,783

Other components of equity(2,476)(3,716)

48,59144,303396

524

Total equity

48,98844,827

Profit attributable to non-controllinginterests

Total liabilities and equity

101,599

88,976

ProfitTotal equity attributable to owners of
ParentNon-controlling interests

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)

Condensed Consolidated Statements of Comprehensive Income
The Fiscal
Year ended
March 31, 2016

The Fiscal
Year ended
March 31, 2017

Profit2,985(1,086)

Other comprehensive income,net of tax(2,929)(2,617)56(2,217)■Revenue (Millions of Yen)JGAAP ← →IFRS■売 上 高（単位：百万円）

Interim
中間

Full-term
通期160,000

80,000106,828

62,79061,646

51,632

119,352

118,473

111,417

120,000

51,69140,00002015/03

2016/3

2016/3■営業 利 益（単位：百万円）■Operating
Income (Millions of Yen)

Comprehensive income

2017/3

Interim
中間Full-term
通期15,000
10,480Notes: Amounts above are rounded down to unit of display(Millions of yen)

Condensed Consolidated Statements of Cash Flows

8,705

10,000

5,690

4,820

4,674

6,057

5,696

5,000
2,038

The Fiscal
Year ended
March 31, 2016
Net cash provided by (used in)operating activities

14,321The Fiscal
Year ended
March 31, 2017
3,319

0
2015/03

2016/3

2016/3■Basic Earning per Share(Yen)■１株あたり当期（四半期）利益（単位：円）Interim中間

153.54122.13113.43(1,936)(2,442)100

Net cash provided by (used in)financing activities(6,473)(6,630)0Effect of exchange rate change on
cash and cash equivalents

(187)

(13)

Net increase (decrease) in cash
and cash equivalents

5,723(5,766)Full-term
通期176.89200

Net cash provided by (used in)investing activities

2017/3

89.25

87.48

83.93

2015/3

2016/3

2016/32017/3-37.24-100■ROE（単位：百万円、％）
■ROE
(%)
15%

11.9%
9.9%

10%

Cash and cash equivalents at
beginning of period

10,841

16,564Cash and cash equivalents at theend of period

16,564

10,7985.8%

5%0%
2015/3

2016/3

2016/3-5%Notes: Amounts above are rounded down to unit of display*Figures from March 2016 are presented on the basis of IFRS.

2017/3-2.6%

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, 2017)

129,000,000 Shares
36,254,344 Shares
100 Shares
9,062 Person■ Principal shareholders
Number ofShares-Held(ThousandShares)

Ratio ofShareHolding(%)

Japan Trustee Services Bank, Ltd.
(Trust account)

2,195

6.06

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

1,406

3.88

Name of Shareholders

TERA ENTERPRISES Co., Ltd.

Mitsuharu Terayama

Masamichi Terayama

1,150

3.17

882

2.43

802

2.21

Asahi Employee Stock Ownership Plan

714

1.97

K&M Co., Ltd.

700

1.93

CBNY-GOVERNMENT OF NORWAY647

1.79

Japan Trustee Services Bank, Ltd.
(Trust account 5)
STATE STREET BANK AND TRUSTCOMPANY 505025

579

1.60567

1.56※Total Number of Treasury Shares (3,432,787 shares) are excluding from the above.

■ Corporate Profile
Corporate name
Establishment
Foundation
Capital
Number of employees
Business lines(As of March 31, 2017)

Asahi Holdings, Inc.
April 2009
July 1952¥4,480 million
1,961(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.
Nihon Chemitec Co., Ltd.
Fuji Rozai Co., Ltd.
Ecomax IncorporatedJW Glass Recycling Co., Ltd.
Taiyo Chemical Co., Ltd.
Kyodo Chemical Co., Ltd.
Iyotec Co., Ltd.
FUJI MEDICAL INSTRUMENTS MFG. Co., Ltd.

INTER CENTRAL, INC.
KOEIKOGYO CO., LTD.

*Nihon Chemitech Co., Ltd., was renamed JW Chemitech Co., Ltd., as of April 1, 2017.
*Kyodo Chemical Co., Ltd., was absorbed into Asahi Pretec Corp. as of April 1, 2017.

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
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*Director Keitaro Shigemasa resigned as Director of the Company as of April 30, 2017.
*1 Audit and Supervisory Committee member*2 Outside officers pursuant to Article 2, paragraph (3) item (v) of Ordinance forEnforcement 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, Japan
Tel. +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 PaidSeptember 30● Shareholder Registry Administrator

Mitsubishi UFJ Trust and Banking Corporation● Transfer Agent

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/March 31