Consolidated Financial Results for the First Quarter Ended June 30, 2019
Asahi Holdings, Inc. [IFRS]July 25, 2019

Stock code:

5857

Shares listed:Tokyo Stock Exchange (First Section)

URL:
Representative

https://www.asahiholdings.com
Tomoya Higashiura, Representative Director and President
Kunihiko Chogo, General Manager, Corporate Planning &For further information please contact:

Communications Department(Phone) +81-3-6270-1833

Filing date of Quarterly Report:
Start of dividend payment:

August 9, 2019–

Supplementary materials for the financial results:

Yes

Investor conference for the financial results:

No(Rounded down to the nearest million yen)

1. Results of the three months ended June 30, 2019 (From April 1, 2019 to June 30, 2019)(1) Results of operations (cumulative)(Percentage: Changes relative to corresponding previous period)
OperatingincomeProfit before
tax

ProfitProfitattributable toowners of parent

Total
comprehensive
income%Millions of yen %Millions of yen %Millions of yen %Millions of yen %Millions of yen %33,969 6.4
31,914 (1.7)

3,817 7.8
3,542 1.5

3,267 (2.3)
3,345 (1.7)

Revenue
The three months ended
June 30, 2019
June 30, 2018

Millions of yen

2,035 (14.2)
2,373 (0.4)

Basic earnings per share

Diluted earnings per share

Yen
51.74
59.93

Yen
51.56
59.76

The three months ended
June 30, 2019
June 30, 2018

2,035 (14.2)
2,373 1.3

3,076 57.9
1,948 21.0

(2) Financial Position

As ofJune 30, 2019
March 31, 2019

Total assets

Total equity

Equity attributable toowners of parent

Equity attributable toowners of parent ratio

Millions of yen
160,315160,272

Millions of yen
68,53767,804

Millions of yen
68,53767,804

42.8
42.3

%

2. Dividend payments
Dividends per share

Year ended March 31, 2019Year ending March 31, 2020
Year ending March 31, 2020
(Forecast)First quarter

Second quarter

Third quarter

Year-end

Annual

Yen

Yen
60.00

Yen
－

Yen
60.00

Yen
120.00

60.00

－

60.00

120.00－－(Note) Revisions in dividend forecast in the current quarter: No

3. Forecast (From April 1, 2019 to March 31, 2020)

OperatingincomeRevenue
Millions of yen

1st half
Year ending March 31, 2020

70,000140,000(Percentage: Changes relative to corresponding previous period)

%

15.9
8.8

%

Millions of yen

6,800
14,500%

Profit attributable
Basic earnings
toper shareowners of parent
Millions of yen
%
Yen

3.3
6.7

4,400
9,400

Profit before
tax

(0.9)
0.1

Millions of yen

6,700
14,300(3.1)
4.4

111.82238.89(Note) Revisions in forecast in the current quarter: No* Notes(1) Changes in significant subsidiaries during the current quarter: No(2) Changes in accounting policies and accounting estimates(i)

Changes in accounting policies required by IFRS: Yes(ii) Changes other than (i) above: No(iii) Changes in accounting estimates: No
For details, please refer to page 12“2. Condensed Consolidated Financial Statements (7) Notes on Condensed
Consolidated Financial Statements (3.Changes in accounting policies)”.
(3) Number of issued shares (common stock)(i) Number of issued shares at the quarter end (including treasury shares)
As of June 30, 201939,854,344 shares

As of March 31, 201939,854,344 shares(ii) Number of treasury shares at the quarter end
As of June 30, 2019505,487 shares

As of March 31, 2019505,487 shares(iii) Averaged number of shares during the period (quarterly cumulative period)
Three months ended June 30, 201939,348,857 shares

Three months ended June 30, 2018

39,599,045 shares*The quarterly financial statements are not subject to quarterly reviews by accounting auditors.
(Notes on forward looking statements, etc.)
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 resultsmaterially differ from forecasts of this report. Please refer to page 3 “1. Qualitative Information (3) Consolidated
Performance Forecasts” for the assumptions used and other notes.

【Appendix】

Table of contents of the appendix
1. Qualitative Information ................................................................................................................................ 2(1) Consolidated Business Performance ........................................................................................................ 2(2) Consolidated Financial Position and Cash Flows for the three months ended June 30, 2019 ............. 2(3) Consolidated Performance Forecasts ....................................................................................................... 3
2. Condensed Consolidated Financial Statements........................................................................................... 4(1) Condensed Consolidated Statements of Financial Position ................................................................... 4(2) Condensed Consolidated Statements of Income for the three months ended June 30, 2019 ............... 6(3) Condensed Consolidated Statements of Comprehensive Income for the three months ended June30, 2019...................................................................................................................................................... 7(4) Condensed Consolidated Statements of Changes in Equity ................................................................... 8(5) Condensed Consolidated Statements of Cash Flows .............................................................................. 10(6) Notes on Assumptions for Going Concern ............................................................................................... 11(7) Notes on Condensed Consolidated Financial Statements ...................................................................... 11
1. Reporting entity ................................................................................................................................... 11
2. Basis of preparation ............................................................................................................................ 11
3. Changes in accounting policies ........................................................................................................... 12
4. Significant accounting estimates and associated judgments ............................................................ 13
5. Segment information ........................................................................................................................... 14
6. Subsequent events ............................................................................................................................... 15

－

1

－

1. Qualitative Information(1) Consolidated Business Performance
The Japanese economy registered moderate recovery during the current first quarterly consolidated
accounting period, backed by improvements in the employment and income environment. The prospects for the
global economy, on the other hand, continue to be opaque due to the impact of U.S.-China trade dispute andconcerns over the slowdown of Chinese economy. Under these conditions, the Group’s results in each businesssegment were as follows.
Precious Metals business
Revenue in precious metal recycling business in Japan, South Korea and Malaysia increased from the same
period in the previous year. Also, revenue in precious metal refining business in North America expanded fromthe same period a year before, but operating income declined during the same period due to the impact of fixed
cost incurred in the newly acquired company in Florida. As a result, revenue in Precious Metals business on thewhole increased while operating income decreased from the same period in the previous year.
Environmental Preservation businessIn spite of the lingering repercussions of the withdrawal from photosensitive material business that took
place in the previous fiscal year, revenue and operating income in Environmental Preservation businessexpanded from the same period a year earlier, thanks to the efforts to develop new customers based oncollaboration among group companies that capitalizes on the characteristics of the respective companies.
Life & Health business
Revenue in fire-fighting and air conditioning equipment remained solid as high construction demand
continued primarily in the Tokyo metropolitan area. Also, health care equipment business marked a steady
performance overall. As a result, revenue and operating income in Life & Health business increased from thesame period in the previous year.
As a result of the above, revenue during the first quarter of the current fiscal year was 33,969 million yen, a
year-on-year increase of 2,054 million yen (+6.4 percent). Operating income was 3,817 million yen, a year-onyear increase of 275 million yen (+7.8 percent). Profit before tax was 3,267 million yen, a year-on-year decreaseof 78 million yen (-2.3 percent). Profit was 2,035 million yen, a year-on-year decrease of 337 million yen (-14.2
percent). Profit attributable to owners of parent for the period was therefore 2,035 million yen, a decrease of
337 million yen (-14.2 percent) year-on-year. By segment, revenue in the Precious Metal Business was 24,572
million yen, a year-on-year increase of 1,636 million yen (+7.1 percent). Revenue in the Environmental
Preservation Business was 4,236 million yen, a year-on-year increase of 179 million yen (+4.4 percent). Revenue
in the Life & Health Business was 5,166 million yen, a year-on-year increase of 227 million yen (+4.6 percent).

(2) Consolidated Financial Position and Cash Flows for the three months ended June 30, 2019
As of June 30, 2019, total assets amounted to 160,315 million yen, up 43 million yen from the previous fiscal
year end. This was due mainly to the decrease of 2,033 million yen in cash and cash equivalents, the decreaseof 2,986 million yen in trade and other receivables, the increase of 2,949 million yen in inventories and theincrease of 2,095 million yen in property, plant and equipment.
Total liabilities amounted to 91,778 million yen, down 690 million yen from the previous fiscal year end.
This was due mainly to the increase of 2,133 million yen in other financial liabilities, the decrease of 1,368
million yen in loans payable, the decrease of 1,320 million yen in income tax payable and the decrease of 1,012
million yen in trade and other payables.
Total equity amounted to 68,537 million yen, up 733 million yen from the previous fiscal year end. This wasdue mainly to comprehensive income of 3,076 million yen and the dividends of 2,360 million yen.
As a result, the equity attributable to owners of parent ratio changed to 42.8%, from 42.3% at the end of theprevious fiscal year.
Net cash provided by operating activities amounted to 2,605 million yen due mainly to 3,267 million yen of
profit before tax, 728 million yen of depreciation and amortization, 2,949 million yen of increase in inventory,
2,983 million yen of decrease in trade and other receivables, 3,694 million yen of income taxes paid.
Net cash used in investing activities amounted to 1,124 million yen due mainly to 993 million yen of－2－

purchase of property, plant and equipment.
Net cash used in financial activities amounted to 3,370 million yen due mainly to 2,336 million yen of cash
dividends paid.
As a result, cash and cash equivalents as of June 30, 2019 decreased 2,033 million yen from March 31, 2019,
to 14,263 million yen.

(3) Consolidated Performance Forecasts
Consolidated performance forecast for the fiscal year and the first half period have not changed from theforecast announced on May 8, 2019.

－

3

－

2. Condensed Consolidated Financial Statements(1) Condensed Consolidated Statements of Financial Position
As ofMarch 31,
2019

As of
June 30,
2019

Millions ofyenMillions ofyen

ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables

16,297
66,48914,26363,502Inventories
Income tax receivables

25,191
1,515

28,141
1,553

Other financial assets

389

964

Other current assets

3,906

3,066

Total current assets

113,790

111,491

36,0838,243

38,1788,243

Intangible assets
Deferred tax assets

697
873

Net defined benefit asset
Financial assets
Other non-current assets

47
498
39

657
1,213
－

Total non-current assets

46,482

48,824160,272

160,315

Non-current assets
Property, plant and equipment
Goodwill

Total assets

－

4

－

497
34

As ofMarch 31,
2019

As of
June 30,
2019

Millions ofyenMillions ofyen

LIABILITIES and EQUITY
Liabilities
Current liabilities
Trade and other payables
Loans payable

17,16944,712

16,156
43,661

Income tax payable

2,405

1,085

Other financial liabilities
Provision

1,537
1,207

1,901
702

Other current liabilities

3,540

4,837

Total current liabilities

70,573

68,34419,08518,767

Deferred tax liabilities

1,360

1,412

Net defined benefit liability
Other financial liabilities
Other non-current liabilities

157
1,291
－

184
3,062
6

Total non-current liabilities

21,89523,434

92,46891,778

Capital stock
Capital surplus
Treasury stock
Retained earnings

7,790
10,353(955)
55,547

7,790
10,371(955)
55,172Other components of equity(4,931)(3,841)

Total equity attributable to owners of parent

67,80468,537

Total equity

67,80468,537160,272

160,315

Non-current liabilities
Loans payable

Total liabilities
EquityTotal liabilities and equity

－

5

－

(2) Condensed Consolidated Statements of Income for the three months ended June 30, 2019
The three months
ended June 30, 2018

The three months
ended June 30, 2019

Millions of yen

Millions of yen

Revenue

31,91433,969

Cost of sales(24,832)(26,592)

Gross profit
Selling, general and administrative expenses

7,081(3,546)

7,376(3,555)

104
(97)

22
(25)

3,542
9

3,817
6

Other operating income
Other operating expenses
Operating income
Finance income
Finance cost

(205)

(556)

Profit before tax
Income tax expenses

3,345
(972)

3,267
(1,231)

Profit

2,373

2,035

Non-controlling interests

2,373
－

2,035
－

Profit

2,373

2,035

59.93

51.74

59.76

51.56

Profit attributable to:
Owners of parent

Earnings per share
Basic earnings per share (Yen)
Diluted earnings per share (Yen)

－

6

－

(3) Condensed Consolidated Statements of Comprehensive Income for the three months ended
June 30, 2019

Profit

The three months
ended June 30, 2018

The three months
ended June 30, 2019

Millions of yen

Millions of yen

2,373

2,035

Financial assets measured at fair value through othercomprehensive income

(3)

(5)

Remeasurements of defined benefit plans

21

(49)

Total items that will not be reclassified to profit or loss

18

(55)

Cash flow hedges
Translation adjustments of foreign operations

(470)
26

1,099
(4)

Total items that will be reclassified to profit or loss

(443)

1,095

Other comprehensive income
Items that will not be reclassified to profit or loss

Items that will be reclassified to profit or loss

Other comprehensive income, net of tax

(424)

1,040

1,948

3,076

Owners of parent
Non-controlling interests

1,948
－

3,076
－

Comprehensive income

1,948

3,076

Comprehensive income
Comprehensive income attributable to:

－

7

－

(4) Condensed Consolidated Statements of Changes in Equity(Millions of yen)
Equity attributable to owners of parent

Capitalstock

Balance at April 1, 2018
ProfitOther comprehensive
incomeTotal comprehensive
incomePurchase of treasury stock
Dividends
Reclassified from othercomponents of equity toretained earnings
Share-based paymenttransactions
Total transactions withownersBalance at June 30, 2018

CapitalsurplusTreasurystock

Retainedearnings

Other components ofequityTranslation
adjustments Cash flowof foreign
hedgesoperations

7,790
－

10,381－(386)－

50,282
2,373(3,624)
－

(34)
－

－

－

－

－

26

(470)

－

－

－

2,373

26

(470)

－
－

－
－

(0)
－

－
(1,306)

－
－

－
－

－

－

－

26

－

－

－

41

－

－

－

－

－

41

(0)

(1,280)

－

－

7,790

10,422(387)

51,375(3,597)(505)(Millions of yen)
Equity attributable to owners of parent
Other components of equity
FinancialassetsRemeasuremeasured atments offair value
definedthrough
benefitotherplanscomprehensive income
Balance at April 1, 2018
ProfitOther comprehensive
incomeTotal comprehensive
incomePurchase of treasury stock
Dividends
Reclassified from othercomponents of equity toretained earnings
Share-based paymenttransactions
Total transactions withownersBalance at June 30, 2018

Total

Total

Total equity

27
－

－
－

(3,632)－64,4352,373

64,435
2,373

(3)

21

(424)

(424)

(424)

(3)

21

(424)

1,948

1,948

－
－

－
－

－
－

(0)
(1,306)(0)(1,306)

(4)

(21)

(26)

－

－

－

－

－

41

41

(4)

(21)

(26)

(1,265)(1,265)19－(4,083)

65,11865,118－8－

(Millions of yen)
Equity attributable to owners of parent

CapitalsurplusCapitalstock

Balance at April 1, 2019
ProfitOther comprehensive
incomeTotal comprehensive
incomeDividends
Reclassified from othercomponents of equity toretained earnings
Share-based paymenttransactions
Total transactions withownersBalance at June 30, 2019

Treasurystock

Retainedearnings

Other components ofequityTranslation
adjustments Cash flowof foreign
hedgesoperations

7,790
－

10,353－(955)－

55,547
2,035(3,737)－(1,203)
－

－

－

－

－

(4)

1,099

－

－

－

2,035

(4)

1,099

－

－

－

(2,360)

－

－

－

－

－

(49)

－

－

－

18

－

－

－

－

－

18

－

(2,410)

－

－

7,790

10,371(955)

55,172(3,741)(103)(Millions of yen)
Equity attributable to owners of parent
Other components of equity
FinancialassetsRemeasuremeasured atments offair value
definedthrough
benefitotherplanscomprehensive income
Balance at April 1, 2019
ProfitOther comprehensive
incomeTotal comprehensive
incomeDividends
Reclassified from othercomponents of equity toretained earnings
Share-based paymenttransactions
Total transactions withownersBalance at June 30, 2019

Total

Total

Total equity

8
－

－
－

(4,931)－67,804
2,035

67,804
2,035

(5)

(49)

1,040

1,040

1,040

(5)

(49)

1,040

3,076

3,076

－

－

－

(2,360)(2,360)

－

49

49

－

－

－

－

－

18

18

－

49

49

(2,342)(2,342)

3－(3,841)

68,537

68,537－9－

(5) Condensed Consolidated Statements of Cash FlowsThe three months
ended June 30, 2018

The three months
ended June 30, 2019

Millions of yen

Millions of yen

Net cash provided by (used in) operating activities
Profit before tax
Depreciation and amortization
Impairment loss
Finance income and finance cost

3,345

3,267

580
14

728
0

169

556

Decrease (increase) in inventories
Decrease (increase) in trade and other receivables

1,385
180

(2,949)2,983

Increase (decrease) in trade and other payables
Other, net(3,338)
473

(923)
3,083

Subtotal

2,810

6,745

9

6

(193)
(4,073)(454)(3,694)50

3(1,396)

2,605

－

(98)
(993)

Interest and dividends income received
Interest expenses paid
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Payments into time deposits
Purchase of property, plant and equipment(719)

Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Proceeds from sales and redemption of investments
Other, net

163
(19)
12
(11)

2
(26)
－

Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities(575)(1,124)

Net increase (decrease) in short-term loans payable
Repayment of long-term loans payable
Purchase of treasury stock
Cash dividends paid
Other, net

405
(135)
(0)
(1,294)
(19)

(882)
－
－
(2,336)(151)

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents(1,043)106(3,370)(144)

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period(2,909)24,140(2,033)
16,297

Cash and cash equivalents at end of period

21,23014,263

－

10

－

(9)

(6) Notes on Assumptions for Going Concern
Not applicable(7) Notes on Condensed Consolidated Financial Statements
1. Reporting entity
Asahi Holdings, Inc. (hereinafter the “Company”) is a company located in Japan. The Company’s condensed
consolidated financial statements for the three months ended June 30, 2019 comprise the financial statementsof the Company as well as its subsidiaries (hereinafter the “Group”).
For the main activities of the Group, please refer to Note 5. “Segment information.”

2. Basis of preparation(1) Statement of compliance with IFRSThe condensed consolidated financial statements of the Group have been prepared based on IAS 34“Interim Financial Reporting.”
Having met the requirements for a Specified Company under the Designated International AccountingStandards, as prescribed in Article 1-2 of the Ordinance on the Terminology, Forms, and Preparation
Methods of Quarterly Consolidated Financial Statements (Cabinet Office Ordinance No. 64 of 2007), theGroup adopts the provisions of Article 93 of the aforementioned rules.
(2) Basis of measurement
The condensed consolidated financial statements of the Group have been prepared based on costs ofacquisition, except for the specified financial instruments that have been measured at fair value.
(3) Functional currency and presentation currency
The condensed consolidated financial statements of the Group are presented in Japanese yen, which isthe functional currency of the Company, and figures less than one million yen are rounded down to thenearest million yen.

－

11

－

3. Changes in accounting policies
The significant accounting policies adopted for the condensed consolidated financial statements are thesame as those for the consolidated financial statements for the fiscal year ended March 31, 2019, with the
exception of the items described below.
The income tax for the three months ended June 30, 2019 was calculated based on the estimated averageannual effective tax rate.
The Group adopted the standards shown below in the current first quarterly consolidated accounting period.
IFRS
IFRS 16

Overview of new and revised items
Leases

Revision of accounting procedures on leases

The Group adopted IFRS 16 “Leases” (announced in January 2016, hereinafter referred to as “IFRS 16”)
in the current first quarterly consolidated period.
IFRS 16, which replaces the former IAS 17 for lease transactions of the lessee, prescribes the eliminationof the classification between operating leases and finance leases and introduction of a single accounting
model to record assets and liabilities in relation to all important lease transactions.
As of the lease commencement date, right-of-use assets are measured at acquisition cost, and leaseliabilities are measured at the present value of remaining lease payments as of the lease commencement
date. When the ownership of the underlying asset is transferred to the Group prior to the termination of thelease period, or when the exercise of a purchase option is reflected in the acquisition price of the right-of-use
asset, the right-of-use asset is depreciated using the straight-line method based on its useful life. In othercases, right-of-use assets are depreciated using the straight-line method based on either the useful life or at
the termination of the lease period, whichever is shorter. Lease payments are apportioned between financecosts and repayment of lease obligations based on the interest method, and financial costs are recognized in
the consolidated statement of profit and loss.
The lease period is determined by adjusting the period subject to an option to extend or terminate the leasethat can be exercised with reasonable certainty during the non-cancelable period as set forth in the lease
contract. The rate used in calculating the present value of the lease payments is the interest rate implicit in
the lease or the lessee’s incremental borrowing rate.
Short-term leases with a lease term of 12 months or less and leases of low-value underlying assets arerecognized as expenses on either a straight-line basis or another systematic basis over the lease term for the
total lease payments.
The method adopted in the application of IFRS 16 is to recognize the cumulative effect of applying thisstandard at the date of initial application that is approved as an interim measure without retrospectively
adjusting the balance in the earlier reporting periods.
In transitioning to IFRS 16, the Company chose to adopt the practical expedient of succeeding the previous
assessment of which transactions constitute leases. IFRS 16 is applied only to contracts that were identified
as leases under the previous IAS 17 and IFRIC 4 and a review on whether the contracts correspond to leases
is not performed on contracts not previously identified as leases.
Consequently, the identification of leases based on IFRS 16 is applied solely to contracts that were signed
or changed after the initial date of application.
For leases that were classified as operating leases under IAS 17, lease liabilities on transition are initiallymeasured at the present value of the total remaining leases as of the date of transition, discounted at theincremental borrowing rate of the lessee. Right-of-use assets are recorded at the same value as leaseliabilities. The weighted-average for incremental borrowing rate of the lessee applied to lease liabilities
recognized in the summary quarterly consolidated financial statements as of the date of initial application
is 0.4%.
Also, the Company has used the practical expedients in the past as shown below prior to the applicationof IFRS 16 to leases classified as operating leases with the application of IAS 17:* Rely on an assessment of whether leases are onerous in accordance with IAS 37 “Provisions, Contingent
Liabilities and Contingent Assets” immediately before the date of initial application as an alternative toperforming an impairment review.
－

12

－

* Apply a single discount rate to a portfolio of leases with reasonably similar characteristics* Account for leases for which the lease term ends within 12 months of the date of initial application in thesame way as short-term leases* Exclude initial direct costs from the measurement of right-of-use assets at the date of initial application* Use hindsight: e.g. in determining the lease term of the contract that contains options to extend or
terminate the lease.
The differential between the lease liabilities recognized on the day of initial application and total future
minimum lease payments on operating leases that cannot be terminated, disclosed by applying IAS 17, as ofthe end of the consolidated accounting year immediately before the date of initial application is 1,652 million
yen. A major reason behind this differential is a review of the lease period performed upon the application of
IFRS 16.
The carrying amount of right-of-use assets and lease liabilities as of April 1, 2019 for leases classified as
finance leases under IAS 17 is calculated at the carrying amount of lease assets and lease liabilities according
to IAS 17 as of the day immediately preceding the above date.
In transitioning to IFRS 16, the Company recorded 2,138 million yen, 507 million yen and 1,631 million
yen as Property, plant and equipment, other financial liabilities (current) and other financial liabilities (noncurrent), respectively, at the beginning of the period.
The impact of the transition on the quarterly profits and cash flow during the current first quarter
consolidated cumulative period remains minimal.

4. Significant accounting estimates and associated judgments
In preparing condensed consolidated financial statements, the management is required to make judgment,
estimates and assumptions that affect the adoption of accounting policies and the amounts of assets, liabilities,
revenues and expenses. Actual results may differ from such estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. The effect of a change inaccounting estimates is recognized as the accounting period in which such change occurs as well as theaccounting periods to be affected in the future.
The estimates and judgments made by the management that may have material impacts on the figures in
the condensed consolidated financial statements are the same as those for the consolidated financial
statements for the fiscal year ended March 31, 2019.

－

13

－

5. Segment information(1) Overview of reporting segments
The Group’s reporting segments are those Group constituent units for which separate financial
information is obtainable, and which the Board of Directors subjects to regular examination in order todecide the allocation of management resources and evaluate business results.
As a pure holding company, the Company is in charge of overall strategic function for the Group, whereas
operating companies of the Group engage in the precious and rare metals recycling business and therefining and processing business, industrial waste management and other environmental preservation
business, and life & health business including manufacturing and selling of health equipment.
Therefore, the Group is composed of product and service segments based on business sectors. The threereporting segments are the Precious Metal Business, the Environmental Preservation Business, and theLife & Health Business. Meanwhile, these reporting segments are not be aggregated.
The Precious Metals Business engages mainly in recycling and selling of precious and rare metals suchas gold, silver, palladium, and platinum, as well as refining and processing of precious metals such as goldand silver. The main work of Environmental Preservation Business is the collection, transport andintermediate processing of industrial waste. In the Life & Health Business, the main work is the
manufacture and sales of massagers, hearing aids, and other health equipment, the manufacture and salesof electric heaters, the design and installation of radiant heating and air conditioning systems, and thedesign and installation of disaster prevention equipment.
(2) Segment revenue and performance
Accounting policies of the reporting segments are the same as those of the Group stated in “Note 3.
Changes in accounting policies.”
Revenue and other performance of each reportable segment of the Group are as follows.
For the three months ended June 30, 2018 (from April 1, 2018 to June 30, 2018)(Millions of yen)
Reporting segment
Environmental
Preservation
Business

Life & HealthBusiness

22,936
－

4,039

4,938

17

0

Total

22,936

4,057

Operating income by businesssegment

3,483

679

Precious Metals
Business

Revenue
External revenue
Intersegment revenue

Total

Adjustment

Consolidated

31,914

－

17

(17)

31,914－

4,938

31,932(17)

31,914

121

4,283

(741)

3,542

Finance income
Finance costs

9
(205)

Profit before tax

3,345(Note) 1. Intersegment transactions are based on prevailing market prices.
2. Adjustments of operating income by business segment are mainly corporate expenses that are notallocated to each reporting segment.

－

14

－

For the three months ended June 30, 2019 (from April 1, 2019 to June 30, 2019)(Millions of yen)
Reporting segment
Precious Metals
Business

Environmental
Preservation
Business

Life & HealthBusiness

Total

Adjustment

Consolidated

Revenue
External revenue
Intersegment revenue
Total
Operating income by businesssegment

33,969

－

5

5,166
－

5

(5)

33,969－24,572

4,236

5,166

33,974(5)

33,969

3,438

837

130

4,406

(588)

3,817

24,572－

4,230

Finance income

6

Finance costs(556)

Profit before tax

3,267(Note) 1. Intersegment transactions are based on prevailing market prices.
2. Adjustments of operating income by business segment are mainly corporate expenses that are notallocated to each reporting segment.

6. Subsequent events
Not applicable－15－