Consolidated Financial Results for the First Quarter Ended June 30, 2014
Asahi Holdings, Inc.
July 29,2014
Stock code:

5857

Shares listed:Tokyo Stock Exchange (First Section)

U R L:

http://www.asahiholdings.com

Representative

Mitsuharu Terayama, President and CEO

For further information please contact:

Keitaro Shigemasa, Director

Filing date of Quarterly Report:

August 13, 2014

(Phone) +81-3-6270-1833
Scheduled date of start of dividend payment:－
Supplementary materials for the financial results: No
Investor conference for the financial results: No(Rounded down to the nearest million yen)
1. Results of the three months ended June 30, 2014 (From April 1, 2014 to June 30, 2014)(1) Results of operations (cumulative)(Percentage changes relative to previous corresponding period)
Net sales
The three months ended
June 30, 2014
June 30, 2013
(Note) Comprehensive income

Operating income％

Millions of yen

Millions of yen％

Ordinary income
Millions of yen

23,215 (6.1)
2,178 (18.2)
24,720 (6.4)
2,662－
The three months ended June 30, 2014
The three months ended June 30, 2013
Net income per share

Net income％

Millions of yen％

2,179 (21.7)
1,387 (21.7)
2,785
－
1,771
－
1,211 million yen (61.8％)
3,169 million yen －Diluted net income per share

The three months ended
Yen
Yen
June 30, 2014
42.56－
June 30, 2013
54.50－
(Note) Retrospective restatement was carried out for the fiscal year ended March 31, 2014, in line with a change inaccounting policy. Consequently, year-on-year changes are not provided.
(2) Financial Position
Shareholders’ equity
ratio
As of
Millions of yen
Millions of yen％
June 30, 2014
67,21846,758
69.4
March 31, 2014
66,112
46,491
70.1(Reference) Shareholders’ equity
As of June 30, 2014
46,617million yen
As of March 31, 2014
46,347 million yen
Total assets

Net assets

2. Dividend payments

Year ended March 31, 2014
Year ending March 31, 2015
Year ending March 31, 2015
(Forecast)

Dividends per share
Second quarter
Third quarter
Yen
Yen
30.00
－

First quarter
Yen
－
－

30.00

－

Year-end
Yen
30.00

Annual
Yen
60.00

30.00

60.00

(Note) Revisions in dividend forecast in the current quarter : No
3. Forecast (From April 1, 2014 to March 31, 2015)(Percentage changes relative to previous corresponding period)
Net income
Operating income
Ordinary income
Net income
per share

Net sales
Millions of Yen

1st half
Year ending March 31, 2015

51,000111,000

％

6.5
17.8

Millions of Yen

4,600
10,400％(12.5)
8.0

Millions of Yen

4,600
10,300％(14.8)
3.1

Millions of Yen ％

2,850
6,400

(13.0)
7.2(Note) Revisions in forecast in the current quarter : Yes
For details, please refer to “Notice of Revision of Financial Results Forecast” made public on July 29, 2014.

Yen

87.41
196.14

* Notes(1) Changes in important subsidiaries during the current quarter : No
(2) Application of special accounting methods for quarterly consolidated financial statements : No
(3) Changes in accounting policies, accounting estimates and restatement(i) Changes in accounting policies resulting from the revision of the accounting standards and otherregulations: Yes(ii) Changes other than (i) above: Yes(iii) Changes in accounting estimates: No(iv) Restatement: No
For details, please refer to “(3) Changes in Accounting Policies, accounting estimates and restatement”
under “2. Notes Regarding Summary Information” on page 3.
(4) Number of issued shares (common stock)(i) Number of issued shares at the quarter end (including treasury shares)
As of June 30, 201436,254,344 shares
As of March 31, 201436,254,344 shares(ii) Number of treasury shares at the quarter end
As of June 30, 2014
3,646,807 shares
As of March 31, 2014
3,672,457 shares(iii) Averaged number of shares during the period (quarterly cumulative period)
Three months ended June 30, 2014
32,592,550 shares
Three months ended June 30, 2013
32,507,497 shares*Indication regarding the situation of quarterly review procedures
These financial results are not subject to the quarterly review procedures pursuant to the Financial
Instruments and Exchange Act. As of the disclosure of the financial results, the procedures for reviewing
quarterly financial statements pursuant to the Financial Instruments and Exchange Act are in progress.
*Statement regarding the proper use of financial forecasts and other special remarks
These forecast performance figures are based on the information currently available to the Company’s
management and certain assumptions judged rational. Accordingly, these might be cases in which actual
results materially differ from forecasts of this report. Please refer to page 2 “1. Qualitative Information (3)Consolidated Performance Forecasts”.

【Appendix】

Table of contents of the appendix

1. Qualitative Information .......................................................................................................................... 2(1) Consolidated Business Performance....................................................................................................... 2(2) Consolidated Financial Position ............................................................................................................. 2(3) Consolidated Performance Forecasts ...................................................................................................... 2
2. Notes Regarding Summary Information ................................................................................................ 3(1) Changes in important subsidiaries during the current quarter ...................................................... 3(2) Application of special accounting methods for quarterly consolidated financial statements ........ 3(3) Changes in accounting policies, accounting estimates and restatement ........................................ 3
3. Consolidated Financial Statements ........................................................................................................ 4(1) Consolidated Balance Sheets ............................................................................................................. 4(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income .... 5
Consolidated Statements of Income for the three months ended June 30, 2014 ............................................. 5
Consolidated Statements of Comprehensive Income for the three months ended June 30, 2014 .................... 5(3) Notes on Consolidated Financial Statements ................................................................................... 6(Notes on Assumptions for Going Concern) ........................................................................................................ 6(Notes in case of Significant Changes to Shareholders’ Equity) ........................................................................ 6(Segment Information, etc.) ................................................................................................................................. 6(Sigunificant Subsequent Events) ....................................................................................................................... 6

1

1. Qualitative Information(1) Consolidated Business Performance
During the first quarter of the current fiscal year (April 1, 2014 through June 30, 2014), the Japanese
economy continued to show a tone of gentle recovery resulting from the Government's economic policies andmonetary easing, with corporate profits and capital investment rising, and consumer spending rebounding.
Under these economic conditions, in the precious metal recycling business, the volume of collection in the
catalyst sectors increased, so the volume of collection of platinum and palladium was higher than that of thesame term last year. The volume of collection in the jewelry sector fell, however, leading to a lower volume ofcollection of gold, while a decrease in the volume of collection in the flat panel display and photo sensitive
material sectors led to a lower volume of collection of silver compared to the previous year. Although theaverage sales prices for platinum and palladium were higher than they were during the corresponding perioda year earlier, the average sales prices for gold and silver were lower.
In the environmental protection business, against the backdrop of a recovery in industrial production in
Japan, the volumes of sludge, medical-related waste, recycled glass, and so on collected surpassed those of thesame term one year earlier. In addition, KOEIKOGYO Co., Ltd., which became a wholly owned subsidiary of
our group in March 2014, posted solid results.
As a result of the above, as consolidated results for the three-month period, we recorded net sales of 23,215
million yen, down 1,505 million yen (-6.1%) year-on-year; operating income of 2,178 million yen, down 483
million yen (-18.2%) year-on-year; ordinary income of 2,179 million yen, down 605 million yen (-21.7%)
year-on-year; and net income of 1,387 million yen, down 384 million yen (-21.7%) year-on-year.
Looked at by segment, sales in the precious metal recycling business were 18,741 million yen, down 2,267
million yen (-10.8%) year-on-year; and sales in the environmental preservation business were 4,473 million
yen, up 761 million yen (+20.5%) year-on-year.

(2) Consolidated Financial Position
As of June 30, 2014, total assets amounted to 67,218 million yen, up 1,105 million yen from the previous
fiscal year end. This was due mainly to an increase of 3,202 million yen in cash and deposits, a decrease of
780 million yen in inventories.
Total liabilities amounted to 20,460 million yen, up 839 million yen from the previous fiscal year end. Thiswas due mainly to increase of 5,120 million yen in loans payable, decrease of 2,102 million yen income taxes
payable.
Net assets totaled 46,758 million yen, up 266 million yen from the previous fiscal year end. This was due
mainly to the increase in retained earnings resulting from the recording of 1,387 million yen in net income.
As a result, the shareholders’ equity ratio changed to 69.4%, from 70.1% at the end of the previous fiscal
year.

(3) Consolidated Performance Forecasts
We have revised our six months and the full-year forecast reflecting its consolidated business results of thefirst quarter of the current fiscal year and the earnings of FUJI MEDICAL INSTRUMENTS MFG. CO., LTD.
which became one of our consolidated subsidiaries as of July 1, 2014.
Performance in both Precious Metal Recycling Business and Environmental Preservation Business are
generally in accordance with the initial plan.

Revision of the first half period consolidated results forecast (April 1, 2014 to September 30, 2014)（Millions of YEN, ％）Net Income per
Net Income
Share 2Q
2Ｑ FY2014
FY2014

Net Sales

Operating
IncomeOrdinary
IncomePrevious Forecast (A)(Announced on May 12, 2014)

46,000

4,500

4,500

2,800

85.88

Revised Forecast (B)51,000

4,600

4,600

2,850

87.41

Change (B－A）

5,000

100

100

50

―

Change (%)

10.9

2.2

2.2

1.8

―

(Ref.) 2QFY2013 ended
September 30, 2013

47,884

5,260

5,395

3,277

100.792

Revision of consolidated results forecast for the fiscal year ending March 2015
（April 1, 2014 to March 31, 2015）（Millions of YEN, ％）Net Income Net Income per
FY2014
Share FY2014

Net Sales

Operating
IncomeOrdinary
IncomePrevious Forecast (A)(Announced on May 12, 2014)

96,00010,00010,0006,300

193.11

Revised Forecast (B)111,000

10,40010,3006,400

196.14

Change (B－A）

15,000

400

300

100

―

Change (%)

15.6

4.0

3.0

1.6

―

（Ref.）the fiscal year ended
94,254
9,631
9,989
5,971
183.50March 31, 2014
(Note) From the current fiscal year, the Company adopted the “Practical Solution on Transactions ofDelivering the Company’s Own Stock to Employees etc. through Trusts” (ASBJ PITF No. 30). The results for theprevious fiscal years are those after retrospective application.

2. Notes Regarding Summary Information(1) Changes in important subsidiaries during the current quarter
Not applicable(2) Application of special accounting methods for quarterly consolidated financial statements
Not applicable(3) Changes in accounting policies, accounting estimates and restatement
Changes in accounting policies(Change in valuation method for inventories)
Our method for valuation of inventories has been mainly the weighted-average method (the method of
write-downs based on the decrease in profitability in order to calculate the inventory value on the balance
sheet). Beginning with the first quarter of the current fiscal year, we changed to mainly themoving-average method (the method of write-downs based on the decrease in profitability in order tocalculate the inventory value on the balance sheet).
The aims of this change are to respond to fluctuations in metals prices, carry out management of
inventories by item and by process precisely and on time, value inventories, and perform periodic
accounting of profit and loss more accurately. It accompanies the introduction of a new IT system.
Because we did not preserve the inventory receipts and payments records that would be needed in orderto calculate unit costs with the moving-average method for past fiscal years, it is impossible toretroactively apply this accounting policy to determine cumulative effects. Therefore, the book values ofinventories at the end of the previous fiscal year were carried over as initial balances for the current fiscal
year, with the moving-average method being used from the beginning of this term.
Compared to the past method, it increases operating income, ordinary income, and quarterly income
before income taxes and others for the first quarter of the current term by 85 million yen each, andquarterly net income by 54 million yen.
(Application of the "Practical Solution on Transactions of Delivering the Company’s Own Stock to
Employees etc. through Trusts")
We began applying the "Practical Solution on Transactions of Delivering the Company’s Own Stock to
Employees etc. through Trusts" (ASBJ PITF No. 30, December 25, 2013) during the first quarter of thecurrent fiscal year. When we deliver treasury stock to the trust, we recognize the disposal balance. Profit
or loss related to sales of shares by the trust to the employee stock ownership plan, dividends paid by us onshares held by the trust, and net charges related to the trust are included by us as liabilities. This changein accounting policy was applied retrospectively to past fiscal years, and the results are included in therelevant quarterly financial statement and full-year financial statement.
Consequently, compared with figures before this retroactive application, as of the end of the previous
fiscal year, other current liabilities increased by 124 million yen, and capital surplus decreased by 69
million yen, retained earnings decreased by 67 million yen, and treasury stock decreased by 4 million yen.
This retroactive application had only a slight impact on profit and loss during the first quarter of theprevious fiscal year.

33. Consolidated Financial Statements(1) Consolidated Balance Sheets

ASSETS
Current assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Total noncurrent assets
Total assets

As ofMarch 31,
2014

As of
June 30,
2014

As of
June 30,
2014
Thousands of
U.S.dollars

Millions of yen

Millions of yen

9,640
11,319
4,094
8,596
1,107
2,879
(120)
37,517

12,843
10,939
3,303
8,337
1,377
2,490
(114)
39,176

126,707
107,930
32,59282,256
13,587
24,573(1,131)
386,513

8,979
13,122
2,304
24,407

8,872
13,087
2,277
24,23787,539129,11422,473
239,126

2,021
835
2,856
1,331
28,595
66,112

1,897
810
2,708
1,095
28,041
67,21818,7207,999
26,71910,811
276,657
663,170

LIABILITIESCurrent liabilities
32,489Notes and accounts payable - trade
3,643
3,293
58,162
Short-term loans payable
495
5,895
735
Current portion of long-term loans payable
143
74
5,252
Income taxes payable
2,635
532
3,116
Provision for bonuses
600
315
Provision for directors' bonuses
39
－
－
410
Provision for repairs
101
41
98
Provision for product warranties
16
9
32,134
Other
4,668
3,257
Total current liabilities
12,342
13,419132,396Noncurrent liabilities
51,395Long-term loans payable
5,419
5,209
1,235
Net defined benefit liability
122
125
16,834
Other
1,736
1,706
Total noncurrent liabilities
7,278
7,040
69,463
Total liabilities
19,621
20,460201,859
NET ASSETS
Shareholders' equity
44,207
Capital stock
4,480
4,480
59,577
Capital surplus
6,038
6,038
405,029
Retained earnings
40,64841,053(52,712)
Treasury stock(5,379)(5,342)
Total shareholders' equity
45,78846,230456,101
Accumulated other comprehensive income
213
Valuation difference on available-for-sale securities
15
21(2,012)(121)
Deferred gains or losses on hedges
(203)
5,617
Foreign currency translation adjustment
665
569
Total accumulated other comprehensive income
559
386
3,818
Subscription rights to shares
77
77
769
623
Minority interests
66
63
Total net assets
46,49146,758461,311TOTAL LIABILITIES AND NET ASSETS
66,112
67,218663,170
U.S. dollar amounts represent translations using the approximate exchange rate on June 30, 2014 of
Yen101.36=US$1, and are included solely for the convenience of readers.

4(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income for the three months ended June 30, 2014

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Non-operating expenses
Ordinary income
Extraordinary income
Extraordinary loss
Income before income taxes and minority interests

Income taxes-current
Income taxes-deferred
Total income taxes
Income before minority interests(Minority interests in loss)
Net income

The three months
ended June 30, 2013
Millions of yen

The three months
ended June 30, 2014
Millions of yen

The three months
ended June 30, 2014
Thousands of
U.S.dollars

24,72020,724
3,996
1,333
2,662
132
9
2,785
1
5
2,782
862
147
1,010
1,771
―
1,771

23,215
19,591
3,624
1,445
2,178
28
26
2,179
10
24
2,165
520
257
778
1,386
(0)
1,387

229,042
193,285
35,757
14,265
21,492278
264
21,505104244
21,365
5,137
2,545
7,682
13,683(3)
13,686

Consolidated Statements of Comprehensive Income for the three months ended June 30, 2014
The three months
ended June 30, 2013
Millions of yen

Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Share of other comprehensive income of associates
accounted for using equity method
Total other comprehensive income
Comprehensive income(Comprehensive income attributable to)Comprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests

The three months
ended June 30, 2014
Millions of yen

The three months
ended June 30, 2014
Thousands of
U.S.dollars

1,771

1,386

13,683

0
1,263
125

6
(82)
(95)

63
(815)
(939)

8

(3)

(37)

1,397
3,169

(175)
1,211

(1,727)
11,956

3,168
0

1,214
(2)

11,985(29)

U.S. dollar amounts represent translations using the approximate exchange rate on June 30, 2014 of
Yen101.36=US$1, and are included solely for the convenience of readers.

5(3) Notes on Consolidated Financial Statements(Notes on Assumptions for Going Concern)
Not applicable(Notes in case of Significant Changes to Shareholders’ Equity)
Not applicable(Segment Information, etc.)[Segment information]
Ⅰ For the three months ended June 30, 2013(From April 1, 2013 to June 30, 2013)
1. Information on sales and income (loss) by reporting segment(Millions of Yen)
Preciousmetalrecycling
business

Environmental
preservationbusiness2) Intersegment

21,009－3,711－

24,720－Total

21,0093,711

24,720

2,332

329

2,662

Total

Net sales
1) Customers

Segment income(Note) Total segment income matches operating income recorded on the consolidated statements of income.
2. Impairment losses on noncurrent assets, goodwill, etc. by reporting segment
Not applicable
Ⅱ For the three months ended June 30, 2014(From April 1, 2014 to June 30, 2014)
1. Information on sales and income (loss) by reporting segment(Millions of Yen)
Preciousmetalrecycling
business

Environmental
preservationbusiness

18,741

4,473

23,215－－－18,741

4,473

23,215

1,846

332

2,178

Total

Net sales
1) Customers
2) Intersegment
Total
Segment income(Note) Total segment income matches operating income recorded on the consolidated statements of income.
2. Impairment losses on noncurrent assets, goodwill, etc. by reporting segment(Material impairment loss on noncurrent assets)
Resulting from the plan to sale the land held by a subsidiary, their book value was reduced to arecoverable amount, and the reduced amount was posted as impairment loss under extraordinary losses. In
consequence, impairment losses were recognized in the amount of 8 million yen in precious metal recycling
segment and 3 million yen in environmental preservation segment.
(Sigunificant Subsequent Events)
A consolidated subsidiary, Japan Waste Corporation has completed the transfer of shares of FUJI MEDICALINSTRUMENTS MFG. CO., LTD. as of July 1, 2014, pursuant to the stock purchase agreement on May 19,
2014.
[Schedule]
Board Resolution Date
Date of Execution
Share Transfer Date

May 19, 2014
May 19, 2014
July 1, 20146