Consolidated Financial Results for the Fiscal Year Ended March 31, 2019
Asahi Holdings, Inc. [IFRS]May 8, 2019

Stock code:
Shares listed:

5857
Tokyo Stock Exchange (First Section)

URL:
Representative:

https://www.asahiholdings.com
Tomoya Higashiura, Representative Director and President

For further information please contact:

Kunihiko Chogo, General Manager, Corporate Planning &Communications Department

The Ordinary General Meeting of Shareholders:(Phone) +81-3-6270-1833
June 18, 2019

Filing date of financial statement:
Start of dividend payment:

June 19, 2019
May 29, 2019

Supplementary materials for the financial results:
Investor conference for the financial results:

Yes
Yes (for institutional investors, analysts)(Rounded down to the nearest million yen)

1. Results of the fiscal year ended March 31, 2019 (From April 1, 2018 to March 31, 2019)(1) Results of operations(Percentage: Changes relative to corresponding previous period)
OperatingincomeProfit before
tax

ProfitProfitattributable toowners of parent

Total
comprehensive
incomeMillions of yen %Millions of yen %Millions of yen %Millions of yen %Millions of yen %Revenue
The fiscal year ended
March 31, 2019
March 31, 2018

Millions of yen%

128,669 11.1 14,478 5.0
115,797 8.4 13,791 576.6

13,405 (0.0)
13,410 665.6

Basic earning per Diluted earningshare
per share
The fiscal year ended
March 31, 2019
March 31, 2018

9,000 (4.8)
9,453 −

Profit to equity
attributable toowners of parent%

Yen
228.14270.77

Yen
227.21
269.90

13.6
17.3

Total assets

Total equity

Equity attributableto owners of parent

Millions of yen
160,272
131,484

Millions of yen
67,80464,435

Millions of yen
67,80464,4359,000 (4.4)
9,416 −

7,633 (20.3)
9,576 −

Profit before
tax to total
assets
%9.2
12.2

Operatingincome torevenue
%
11.3
11.9

Equity attributableto owners of parent
ratio

Equity per share
attributable toowners of parent(2) Financial Position

As ofMarch 31, 2019
March 31, 2018

%
42.3
49.0

Yen
1,723.16
1,627.20(3) Cash flows

The fiscal year ended
March 31, 2019
March 31, 2018

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Millions of yen(20,648)(13,397)

Millions of yen(5,629)(2,829)Millions of yen
18,261
29,776

Cash and cash
equivalents at end of
the fiscal year
Millions of yen
16,297
24,1402. Dividend payments
Dividends per share

Year ended March 31, 2018Year ended March 31, 2019Year ending March 31, 2020
(Forecast)Secondquarter

Third
quarterYearendAnnual

Yen
−

Yen
30.00
60.00

Yen
−
−

Yen
33.00
60.00

Millions of yen
Yen
2,298
63.00
4,778
120.00

23.3
52.6

−

60.00

−

60.00

120.0050.2−

Operatingincome
%

%

%
4.2
7.2

(Percentage: Changes relative to corresponding previous period)

Revenue
Millions of yen

Dividend
to equity
attributableto owners ofparent(consolidated)

Payoutratio(consolidated)First
quarter

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

Six months ending
September 30, 2019Year ending March 31, 2020

Total
dividend
payment(annual)%Millions of yen%

Profitattributable toowners of parent
Millions of yen%

Profit before
tax
Millions of yen

Basic earningper shareYen

70,000

15.9

6,800

(0.9)

6,700

3.3

4,400

(3.1)

111.82140,000

8.8

14,5000.1

14,300

6.7

9,400

4.4

238.89* Notes(1) Changes in significant subsidiaries during the current fiscal year: 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(3) Number of issued shares (common stock)(i)

Number of issued shares at the end of year (including treasury shares)
As of March 31, 201939,854,344 shares

As of March 31, 201839,854,344 shares(ii) Number of treasury shares at the end of year
As of March 31, 2019505,487 shares

As of March 31, 2018

255,287 shares(iii) Averaged number of shares during the period
Year ended March 31, 201939,453,473 sharesYear ended March 31, 2018

34,775,417 shares(Reference) Summary of Nonconsolidated Results
1. Nonconsolidated Results of the Year ended March 31, 2019 (From April 1, 2018 to March 31, 2019)(1) Results of operations(Percentage: Changes relative to corresponding previous period)
Net sales
The fiscal year ended
March 31, 2019
March 31, 2018

The fiscal year ended
March 31, 2019
March 31, 2018%

Millions of yen

8,429
7,903

Operating income%

Millions of yen

6.7
27.8

7,044
6,810

3.4
40.5

Ordinary income
Millions of yen

%

6,902
6,930

(0.4)
36.4

Net income per share

Diluted net income per shareYen
172.98
195.73Yen
172.27
195.10Net income%

Millions of yen

6,824
6,806

0.3
−

(2) Financial Position

As ofMarch 31, 2019
March 31, 2018
(Reference)
Shareholders’ equity

Total assets

Net assets

Shareholders’ equity ratio

Millions of yen
75,394
72,818Millions of yen
54,782
52,241

72.7
71.7

As of March 31, 2019: 54,782 million yen%

Net assets per shareYen
1,392.23
1,319.27

As of March 31, 2018: 52,241 million yen*This report is not subject to audit procedures*Statement regarding the proper use of financial forecasts and other special remarks(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, there might be cases in which actual resultsmaterially differ from forecasts of this report. Please refer to page 2 “1. Overview of Consolidated Operating
Results (1) Consolidated Business Performance for the Year ended March 31, 2019” for the assumptions used
and other notes.

【Appendix】

Table of contents of the appendix
1.Overview of Consolidated Operating Results................................................................................................

2(1) Consolidated Business Performance for the Year ended March 31, 2019 ..............................................

2(2) Consolidated Financial Position and Cash Flows for the Year ended March 31, 2019 .........................

2(3) Dividends ...................................................................................................................................................

3(4) Business and other risks ..........................................................................................................................

3

2. Our Group ......................................................................................................................................................

6

3. Basic Concept Regarding Selection of Accounting Standards .....................................................................

9

4. Consolidated Financial Statements ..............................................................................................................

10(1) Consolidated Statements of Financial Position ......................................................................................

10(2) Consolidated Statements of Income .........................................................................................................

12(3) Consolidated Statements of Comprehensive Income ..............................................................................

13(4) Consolidated Statements of Changes in Equity ......................................................................................
(5) Consolidated Statements of Cash Flows..................................................................................................

1416(6) Notes on Assumptions for Going Concern ...............................................................................................

17(7) Notes on Consolidated Financial Statements .........................................................................................

17

1. Reporting entity ...................................................................................................................................

17

2. Basis of preparation ............................................................................................................................

17

3. Changes in accounting policies ...........................................................................................................

17

4. Significant accounting estimates and associated judgements ..........................................................

18

5. Segment information ...........................................................................................................................

19

6. Per share information .........................................................................................................................

21

7. Subsequent events ...............................................................................................................................

21

5. Others .............................................................................................................................................................

22(1) Amounts of Sales .......................................................................................................................................

22

−

1 −

1. Overview of Consolidated Operating Results(1) Consolidated Business Performance for the Year ended March 31, 2019① Operating results
During the consolidated accounting period under review, the Japanese economy showed signs of recovery inpersonal spending with continued improvements in the employment and income environment. Meanwhile,prospects in the international and domestic markets remained opaque due to uncertainties in the global
economy triggered by a series of natural disasters, U.S.-China trade dispute, the Brexit and other issues.
Under these conditions, the group’s results in each business segment were as follows:
Precious metals business
Revenue from business in the precious metal recycling sector in Japan, South Korea and Malaysia
expanded from the same period in the previous year. Also, the revenue of precious metal refining business inNorth America improved over the same period a year before. As a result of these accomplishments, revenue
and operating income in this segment increased from the same period of the previous year.

Environmental preservation business
While the volume of industrial waste discharged in Japan is on a downward trend, revenue in this segment
increased from the same period of the previous year, thanks to efforts to develop new customers. Also,
operating income in this segment increased from the same period of the previous year despite the expenses
incurred due to the withdrawal from photosensitive material business during the fiscal year under review.
Life & health business
The construction demand remained high primarily in the Tokyo metropolitan area, which led to a steadyincrease in revenue from fire-fighting and air-conditioning equipment. However, revenue from health careequipment decreased from the same period of the previous year. Consequently, both revenue and operating
income in this segment were lower than those in the same period of the previous year.
As a result of the above, in terms of the performance for this consolidated fiscal year, revenue was 128,669
million yen, a year-on-year increase of 12,871 million yen (+11.1 percent). Operating income was 14,478
million yen, an increase of 687 million yen (+5.0 percent) year-on-year. Profit before tax was 13,405 million
yen, a year-on-year decrease of 5 million yen (-0.0 percent).Profit was 9,000 million yen, a year-on-year
decrease of 453 million yen (-4.8 percent). Profit attributable to owners of parent was 9,000 million yen, a
year-on-year decrease of 415 million yen (-4.4 percent). By segment, revenue in the precious metals business
was 87,804 million yen, a year-on-year increase of 13,211 million yen (+17.7 percent). In the environmental
preservation business, revenue was 17,197 million yen, an increase of 962 million yen (+5.9 percent) year-onyear. Revenue in the life & health business was 23,709 million yen, an decrease of 1,326 million yen (-5.3
percent) year-on-year.
② Outlook
The group will continue to launch dedicated efforts to expand revenue and enhance its corporate value.
Business forecast for the next period is as follows: 140,000 million yen in sales revenue, 14,500 million yen
in operating income, 14,300 million yen in income before taxes and 9,400 million yen in profit attributable toowners of the parent.

(2) Consolidated Financial Position and Cash Flows for the Year ended March 31, 2019
As of this fiscal year ended March 31, 2019, total assets amounted to 160,272 million yen, up 28,788 million
yen from the previous fiscal year end. This was due mainly to the increase of 29,515 million yen in trade andother receivables, the increase of 3,212 million yen in property, plant and equipment, and the decrease of
7,842 million yen in cash and cash equivalents.
Total liabilities amounted to 92,468 million yen, up 25,419 million yen from the previous fiscal year end.
This was due mainly to the increase of 22,682 million yen in loans payable.
Total equity amounted to 67,804 million yen, up 3,368 million yen from the previous fiscal year end.
Net cash used in operating activities amounted to 20,648 million yen due mainly to 13,405 million yen of−

2 −profit before tax, 2,320 million yen of depreciation and amortization, increase in trade and other receivables,
increase in inventories, and income taxes paid.
Net cash used in investing activities amounted to 5,629 million yen due mainly to 5,552 million yen ofpurchase of property, plant and equipment.
Net cash provided by financial activities amounted to 18,261 million yen due mainly to 22,635 million yen of
net increase in loans payable and 3,666 million yen of cash dividends paid and 744 million yen of purchase oftreasury stock.
As a result, cash and cash equivalents as of March 31, 2019 decreased 7,842 million yen from March 31,
2018, to 16,297 million yen.

(3) Dividends
We consider it is of utmost importance to return profits to our shareholders. Accordingly, we have made it
our basic policy to pay dividends of 50 percent and above of our consolidated net profits. Based on the above
basic policy, the year-end dividend for the current fiscal year will be 60 yen per share. The annual dividend forthe current fiscal year combined with the interim dividend will be 120 yen per share.
And, for the next term, we plan to pay an interim dividend of 60 yen and a year-end dividend of 60 yen(annual dividend of 120 yen).

(4) Business and other risks
Major risks that could affect the Group's operating results and financial condition include the following. We
believe these matters could have a significant impact on investor decisions, but the categories below arelimited to those that the Group is currently aware of; and not necessarily all risks are covered here.
① Precious metals prices and currency exchange rates
The precious metals and rare metals that are the main products of the Group's precious metals business
are traded on international markets. Their prices fluctuate based on global elements such as political andeconomic trends in supply countries and demand countries, currency exchange rates, and so on. The Group
therefore hedges through forward transactions, etc., in order to reduce risk, although the size of fluctuationin precious metals prices and currency exchange rates can affect the Group's operating results and financial
condition.

② Laws and regulations
In the countries and regions where the Group operates business, various laws and regulations apply
regarding matters such as permission to do business, rules for import/export/transport, commercial
transactions, labor, taxation, intellectual property rights, and environmental preservation. Taking the
stance that compliance is important, the Group carefully follows laws, regulations, and social rules.
However, in the unlikely event that laws, regulations, and social rules could not be followed, or if theychange such that business is restricted, it could affect the Group's operating results and financial condition.
In the environmental preservation business in particular, the Group engages in the collection, transport
and treatment of various types of industrial waste as an enterprise under the Waste Management andPublic Cleansing Act. In addition to that law, the business is regulated by laws such as the Water Pollution
Control Act, the Air Pollution Control Act, and the Sewerage Act. Furthermore, the Group has a license forthe collection and transport of industrial waste in every prefecture and ordinance-designated city, for its
disposal in 12 prefectures and 8 ordinance-designated cities and core cities, and for the collection andtransport of specially-controlled industrial waste in every prefecture and ordinance-designated city, for its
disposal in 10 prefectures and 7 ordinance-designated cities and core cities. Obtaining such licenses ispredicated on strict compliance with regulations at the regional level, including each prefectural andmunicipal ordinance and rule.
With society's interest in environmental issues rising, such legal regulations are tending to tighten. Not
only capital investments as countermeasures to those trends but also the construction, relocation, andrenovation of disposal facilities require construction permits and permission to change. On such occasions,the consent of nearby residents may also be necessary, which could be difficult to obtain in some cases.
−

3 −Therefore, such legal regulations and social trends could affect the Group's operating results and financial
condition.
③ Economic fluctuation
Manufacturing industries are among the primary demand industries for the Group's precious metals
business and environmental preservation business. Demand trends in each sector within these industries
are affected by economic conditions in various countries and regions. When demand from such industries
declines due to recession and so on, it can affect the Group's operating results and financial condition.
Moreover, large reductions in construction-related demand or falls in personal consumption can affect thelife & health business, in turn affecting the Group's operating results and financial condition.
④ Business environment
All three of the Group's business segments, the precious metals business, the environmental preservation
business, and the life & health business, face the possibility of major changes in customer needs due tochanges in laws, regulations, and permits that concern a sector or faster-than-expected shifts overseas bycorporate customers. Furthermore, industry reorganization and other major changes in the businessenvironment are possible. The results could affect the Group's operating results and financial condition.
⑤ Intensified competition
All three of the Group's business segments, the precious metals business, the environmental preservation
business, and the life & health business, face competition from various companies. The Group continues tomake efforts to overcome the competition in each sector by accurately meeting customer needs throughsales efforts and initiatives on technology, products, and cost responsiveness. Intensified competition fromcompetitor companies, however, can force the Group's products and services into harsh price competition.
The results could affect the Group's operating results and financial condition.
⑥ Overseas business deployment
The Group carries out business in countries and regions in North America, Asia, etc. Political or economic
phenomena unfavorable to business, labor disputes due to differences in labor environment, uncertainty infinding suitable local personnel, conflicts, terrorism, and other social disturbances, and unfair intervention
by authorities due to underdeveloped business infrastructure in a country or region are inherent risks. If
such situations occur, it could affect the Group's operating results and financial condition.
⑦ Corporate acquisition, etc.
The Group has worked to expand its lines of business and business scale through corporate acquisitionand expects to take a forward-looking approach to attractive cases in the future. In order to maximize theintegration effect with target businesses and companies, the Group will attempt to integrate and unify themwith its business strategy and operations. However, it is possible that the expected integration andunification effects will not be realized. Furthermore, target businesses and companies not achieving thebusiness results initially expected and posting markedly worse operating results could lead to impairmentof goodwill. The results could affect the Group's operating results and financial condition.
⑧ Natural disasters, accidents, etc.
Natural disasters such as large earthquakes or typhoons could cause serious damage to the Group's
production, distribution, sales, and information management facilities. That could affect the Group's
operating results and financial condition. Moreover, although the Group works to strengthen its safety
management system and regularly carries out disaster/accident prevention activities in order to eliminate
occupational and facilities accidents, there is no guarantee that they can be completely prevented or
mitigated. Therefore, if a serious occupational or facilities accident should occur it could affect the Group's
operating results and financial condition.
⑨ New product development
The Group's life & health business aims to provide devices and equipment that are "people-friendly, forbetter life and health." We develop attractive products by accurately assessing customer needs and−4 −optimally applying the Company's technology. However, if we are unable to respond accurately to market
and industry needs and carry out timely product development, it could lessen future growth and profits,affecting the Group's operating results and financial condition.
⑩ Key intellectual property rights
In order to protect intellectual property rights important to business deployment, the Group carries out
appropriate management. However, unforeseen leaks to outside parties can occur, and complete protectionof intellectual property rights may be impossible in certain regions. Therefore, it may not be possible toeffectively prevent third parties from using the Group's intellectual property rights to manufacture and sellsimilar products and services. The results could affect the Group's operating results and financial condition.
⑪ Product quality assurance and product liability
The Group makes every effort with its product quality assurance system, but if a product produced by theGroup causes damages, it could affect the Group's operating results and financial condition.
⑫ Environmental protection
Based on its Environmental Policies, the Group carries out various initiatives to protect the global
environment. However, there is no guarantee that all pollution and other environmental risk can becompletely prevented or mitigated, so if the Group should cause serious pollution of the environment, it
could affect the Group's operating results and financial condition.
⑬ Lawsuits and other legal procedures
As the Group carries out business in Japan and overseas, it could be subjected to lawsuits and other legal
procedures. If the Group becomes a party to such action, it might have to pay large damages, etc. The
results could affect the Group's operating results and financial condition.

−

5 −2. Our Group
Our Group comprises of the holdings company “Asahi Holdings, Inc.”, “Asahi Pretec Corp.”, “Japan Waste
Corporation”, “Asahi Americas Holdings, Inc.”, “Asahi Life & Health Corporation” and 19 other subsidiaries. Our
main businesses are precious metals business, environmental preservation business and life & health business.
The details are as follows:(1) Precious metals businessIn the precious metals business, we sell precious/rare metal products such as gold, silver, platinum, andpalladium by recycling scrap containing rare metals, etc.
In Japan, Asahi Pretec Corp. collects scraps containing precious/rare metals from the electronics, dentistry,jewelry manufacturing and distribution, and automotive catalyst sectors. At factories around the country, itcollects, separates and refines the scrap and sells high-purity metals to trading companies,
semiconductor/electronic component makers, etc. also engages in precision cleaning and precious metaldelamination of manufacturing equipment parts from semiconductor/electronic component makers.
Overseas, Asahi G&S Sdn. Bhd. in the Malaysia/Singapore region, Asahi Pretec Korea Co., Ltd. in South
Korea are engaged in the precious metals recycling business. Additionally, Asahi Refining USA Inc., Asahi
Refining Florida Inc.and Asahi Refining Canada Ltd. carry out the refining and processing of gold, silver, andother precious metals in the United States and Canada respectively.

(2) Environmental preservation business
The main line of our environmental preservation business is the collection, transport, and intermediate
treatment of industrial waste.
Asahi Pretec Corp. treats and detoxifies waste acid, waste alkali, waste oil, sludge, waste drugs, andmedical-related waste generated by sites in various industries, such as factories, printing presses, hospitals,
schools, and research institutes. Additionally, Japan Waste Corporation is engaged in the collection,transportation, intermediate processing and recycling of various industrial wastes. JW Chemitech Co., Ltd.
mainly perform the collection, transport, and intermediate treatment of industrial waste generated byfactories. Iyotec Co., Ltd. engages in business such as dispatch of personnel to manufacturers and collaborates
on the treatment of waste from industrial sites. Taiyo Chemical Co., Ltd. processes medical-related waste andindustrial effluent from companies in the IT, electronics, and petrochemical businesses. Fuji Rozai Co., Ltd.
processes specially controlled industrial waste including dioxin and heavy metals at local governments'
incinerators. It engages in repair, demolition, and waste brick processing of smelting furnaces for glass
manufacturing. It removes firebricks from smelting furnaces and performs materials recycling and hazardous
materials handling. JW Glass Recycling Co., Ltd. collects sheet glass and glass bottles, separates them forcrushing, and recycles them into high-quality glass cullet, which it sells. Ecomax Co., Ltd. is engaged inbusinesses commissioned by the Environment Conservation Center, Tohoku University.

(3) Life & health businessIn the life & health business, the main operation is the manufacture and sale of massagers, hearing aids,
and other health equipment, the manufacture and sale of electric heaters, the design and installation ofradiant heating and air conditioning systems, and the design and installation of disaster prevention
equipment.
As "The Health and Beauty Manufacturer," FUJI MEDICAL INSTRUMENTS MFG. CO., LTD. provides
various products approved under the Pharmaceutical Affairs Act, such as massage chairs, hearing aids, andelectric therapy apparatus for household use, to electronics store, JA (Japan Agricultural Cooperatives)channel, regional consumer electronics dealers, mail-order companies, and so on. INTER CENTRAL, INC.,
manufactures and sells electric heaters and designs and installs radiant heating and air conditioning systems.
They offer products such as electric heaters that provide warmth efficiently and flexibly and radiant heating
and air conditioning equipment that achieves comfortable, clean, and quiet environments. Their products areused in offices, schools, hospitals, cultural facilities, commercial facilities, and ordinary homes. KOEIKOGYO
CO., LTD., designs and installs disaster prevention, air conditioning, and sanitation equipment. They have−

6 −

successfully installed equipment in many public facilities, hospitals, cultural facilities, and commercial
facilities.

−

7 −Precious Metals Business

Environmental Preservation BusinessLife & Health BusinessAsahi Holdings, Inc.
Asahi Americas Holdings，Inc.

Asahi Pretec Corp.

Japan Waste Corporation①

Overseas Bases（USA）
Asahi Refining
USA Inc.

②

Overseas Bases

Domestic Bases（Malaysia）
Asahi G&S
Sdn. Bhd.

JW ChemitechCo., Ltd.

Asahi Refining
Florida Inc.

Domestic Bases

INTER CENTRAL, INC.

KOEIKOGYO
CO., LTD.

Taiyo ChemicalCo., Ltd.

（Canada）
Asahi Refining
Canada Ltd.

Asahi Life & Health Corporation（China）
Shanghai Asahi
Pretec Co., Ltd.

Iyotec Co., Ltd.

FUJI MEDICALINSTRUMENTS MFG.
CO., LTD.

Fuji Rozai Co., Ltd.
（Korea）
JW Glass RecyclingCo., Ltd.

Asahi Pretec
Korea Co., Ltd.

Ecomax Co., Ltd.
Other 2 Companies（Taiwan）
Asahi Pretec
TaiwanCo., Ltd.

（Notes）capital relationshipbusiness relationship① Selling recycling scrap containing precious / rare metals② Entrustment of industrial waste treatment* All companies except for parent company (Asahi Holdings, Inc.) are consolidated subsidiaries−

8 −Overseas Bases（USA）
FujiiryokiInc.

3. Basic Concept Regarding Selection of Accounting Standards
We have applied International Financial Reporting Standards (IFRS) with the objectives of enhancing ourmanagement base for global business development and enabling easier international comparison of financial
information in capital markets from the first quarter of fiscal year ended March 31, 2017.

−9 −4. Consolidated Financial Statements(1) Consolidated Statements of Financial Position
As ofMarch 31,
2018

As of
March 31,2019

Millions ofyenMillions ofyen

ASSETS
Current assets
Cash and cash equivalents

24,140

16,297

Trade and other receivables
Inventories

36,973
22,466

66,48925,191

Income tax receivables
Other financial assets

1,474
660

1,515
389

Other current assets

2,380

3,906

Total current assets

88,096

113,790

32,87036,083

8,243
740

8,243
697

Deferred tax assets
Net defined benefit asset

853
124

873
47

Financial assets
Other non-current assets

537
18

498
39

Total non-current assets

43,38846,482

131,484

160,272

Non-current assets
Property, plant and equipment
Goodwill
Intangible assets

Total assets

−

10 −

As ofMarch 31,
2018

As of
March 31,2019

Millions ofyenMillions ofyen

LIABILITIES and EQUITY
Liabilities
Current liabilities
Trade and other payables

14,17917,169Loans payable
Income tax payable

22,515
3,012

44,712
2,405

Other financial liabilities
Provisions

506
1,484

1,537
1,207

Other current liabilities

3,400

3,540

Total current liabilities
Non-current liabilities

45,09970,573Loans payable
Deferred tax liabilities

18,6001,440

19,085
1,360

Net defined benefit liability
Other financial liabilities

153
1,754

157
1,291

Total non-current liabilities

21,94921,895

Total liabilities
Equity67,04992,468

Capital stock
Capital surplus

7,790
10,381

7,790
10,353

Treasury stock
Retained earnings(386)
50,282(955)
55,547

Other components of equity(3,632)(4,931)

Total equity attributable to owners of parent

64,43567,804

Total equity

64,43567,804131,484

160,272

Total liabilities and equity

−

11 −

(2) Consolidated Statements of Income
The fiscal year ended
March 31, 2018

The fiscal year ended
March 31, 2019

Millions of yen

Millions of yen

Revenue
Cost of sales

115,797(87,500)

128,669(99,159)

Gross profit

28,296

29,509Selling, general and administrative expenses
Other operating income(14,403)244(14,959)
219

Other operating expenses

(346)

(290)

Operating income

13,791

14,478Finance income
Finance cost

16
(397)

33
(1,106)

Profit before tax

13,41013,405

Income tax expenses(3,956)(4,404)

Profit (loss)

9,453

9,000

Owners of parent
Non-controlling interests

9,416
37

9,000
−

Profit (loss)

9,453

9,000

270.77228.14269.90227.21

Profit attributable to:Earning (loss) per share
Basic earning per share (Yen)
Diluted earning per share (Yen)

−

12 −

(3) Consolidated Statements of Comprehensive Income
The fiscal year ended
March 31, 2018

The fiscal year ended
March 31, 2019

Millions of yen

Millions of yen

Profit (loss)

9,453

9,000

Financial assets measured at fair value
through other comprehensive income

19

(17)

Remeasurements of defined benefit plans

38

(69)

57

(86)

69

(1,168)Translation adjustments of foreign operations

(4)

(112)

Total items that will be reclassified to profit or
loss

65

(1,280)122(1,367)

Comprehensive income

9,576

7,633

Comprehensive income attributable to:
Owners of parent

9,535
41

7,633
−

9,576

7,633

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

Total items that will not be reclassified to profit
or loss
Items that will be reclassified to profit or loss
Cash flow hedges

Other comprehensive income, net of tax

Non-controlling interests
Comprehensive income

−

13 −

(4) Consolidated Statements of Changes in Equity(Millions of yen)
Equity attributable to owners of parent
Other components ofequityCapitalTreasury
Retained
Translation
surplusstockearnings
adjustments Cash flowof foreign
hedgesoperations

Capitalstock

Balance at April 1, 2017
ProfitOther comprehensive
incomeTotal comprehensive
incomeIssuance of new shares
Purchase of treasury stock
Disposal of treasury stock
Dividends
Changes in ownershipinterests in subsidiaries
that do not result in loss ofcontrol
Disposal of subsidiaries
Reclassified from othercomponents of equity toretained earnings
Share-based paymenttransactions
Total transactions withownersBalance at March 31, 2018

4,480
−

6,126
−

(5,371)−42,7839,416(3,618)
−

(104)
−

−

−

−

−

(5)

69

−

−

−

9,416

(5)

69

3,309
−
−
−

3,282
−
1,266
−

−
(0)
4,985
−

−
−
−
(1,955)

−
−
−
−

−
−
−
−

−

(337)

−

−

−

−

−

−

−

−

−

−

−

−

−

38

−

−

−

42

−

−

−

−

3,309

4,254

4,984

(1,917)

−

−

7,790

10,381(386)

50,282(3,624)(34)(Millions of yen)
Equity attributable to owners of parent
Other components of equity
FinancialassetsRemeasuremeasured atments offair value
definedthrough
benefitotherplanscomprehensive income
Balance at April 1, 2017
ProfitOther comprehensive
incomeTotal comprehensive
incomeIssuance of new shares
Purchase of treasury stock
Disposal of treasury stock
Dividends
Changes in ownershipinterests in subsidiaries
that do not result in loss ofcontrol
Disposal of subsidiaries
Reclassified from othercomponents of equity toretained earnings
Share-based paymenttransactions
Total transactions withownersBalance at March 31, 2018

Total

Total

Noncontrollinginterests

Total equity

7
−

−
−

(3,716)−44,303
9,416

524
37

44,827
9,453

17

38

119

119

3

122

17

38

119

9,535

41

9,576

−
−
−
−

−
−
−
−

−
−
−
−

6,592
(0)
6,252
(1,955)

−
−
−
−

6,592
(0)
6,252
(1,955)

3

−

3

(333)

(540)

(874)

−

−

−

−

(24)

(24)

0

(38)

(38)

−

−

−

−

−

−

42

−

42

3

(38)

(35)

10,596(565)

10,03027−(3,632)64,435−64,435−14 −(Millions of yen)
Equity attributable to owners of parent
Other components ofequityCapitalTreasury
Retained
Translation
surplusstockearnings
Cash flow
adjustments
hedgesof foreign

Capitalstock

operations

Balance at April 1, 2018
ProfitOther comprehensive
incomeTotal comprehensive
incomePurchase of treasury stock

7,790
−

10,381−(386)−

50,2829,000(3,624)
−

(34)
−

−

−

−

−

(112)

(1,168)

−

−

−

9,000

(112)

(1,168)

−

−

(744)

−

−

−

Disposal of treasury stock
Dividends
Reclassified from othercomponents of equity toretained earnings
Share-based paymenttransactions
Total transactions withownersBalance at March 31, 2019

−
−

24
−

70
−

−
(3,667)

−
−

−
−

−

−

−

(68)

−

−

−

(52)

104

−

−

−

−

(27)

(568)

(3,736)

−

−

7,790

10,353(955)

55,547(3,737)(1,203)(Millions of yen)
Equity attributable to owners of parent
Other components of equity
FinancialassetsRemeasuremeasured atments offair value
definedbenefitthrough othercomprehenplans
sive income

Balance at April 1, 2018
ProfitOther comprehensive
incomeTotal comprehensive
incomePurchase of treasury stock
Disposal of treasury stock
Dividends
Reclassified from othercomponents of equity toretained earnings
Share-based paymenttransactions
Total transactions withownersBalance at March 31, 2019

Total

Total

Total equity

27
−

−
−

(3,632)−64,4359,000

64,435
9,000

(17)

(69)

(1,367)(1,367)(1,367)

(17)

(69)

(1,367)

7,633

7,633

−
−
−

−
−
−

−
−
−

(744)
95
(3,667)(744)
95(3,667)

(0)

69

68

−

−

−

−

−

52

52

(0)

69

68

(4,264)(4,264)8−(4,931)67,80467,804−15 −(5) Consolidated Statements of Cash FlowsThe fiscal year
ended March 31,
2018

The fiscal year
ended March 31,
2019Millions of yen

Millions of yen

Profit before tax
Depreciation and amortization

13,4102,267

13,4052,320

Impairment loss
Finance income and finance cost

120
368

15
1,055

Decrease (increase) in inventories
Decrease (increase) in trade and other receivables(5,112)(21,421)(2,720)(29,497)

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

1,317(2,110)2,829(2,051)

SubtotalInterest and dividends income received(11,161)17(14,645)
33

Interest expenses paid
Income taxes paid

(366)
(3,243)(1,114)(6,287)

Income taxes refund

1,355

1,365

(13,397)(20,648)

−
11

(100)
100

Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment(2,762)
181(5,552)236

Purchase of intangible assets
Proceeds from sales and redemption of investments

(185)
5

Cash disposed on loss of control of subsidiary
Other, net

(23)
(55)

(249)
15
−

Net cash provided by (used in) operating activities

Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits(79)

Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities(2,829)(5,629)Net increase (decrease) in short-term loans payable
Repayment of long-term loans payable

20,092(270)

Proceeds from issuance of common stock
Proceeds from sales of treasury stock

6,619
6,252

23,645(1,010)−Purchase of treasury stock
Payment to acquire interests in subsidiaries from non-controllinginterests
Cash dividends paid
Other, net

95

(0)

(744)

(874)

−

(1,956)(3,666)

(86)

(59)

29,776

18,261(208)

174

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period

13,341
10,798(7,842)
24,140Cash and cash equivalents at end of period

24,140

16,297

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

−

16 −

(6) Notes on Assumptions for Going Concern
Not applicable(7) Notes on Consolidated Financial Statements
1. Reporting entity
Asahi Holdings, Inc. (hereinafter the “Company”) is a company located in Japan. The addresses of theCompany’s registered head office and principal offices are available on its website(https://www.asahiholdings.com). The Company’s consolidated financial statements have a fiscal year-end
date of March 31, 2019 and comprise the financial statements of the Company as well as its subsidiaries(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 consolidated financial statements of the Group have been prepared based on IFRS issued by theInternational Accounting Standards Board.
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 Consolidated Financial Statements (Ordinance of the Ministry of Finance No. 28 of 1976; the“Ordinance on Consolidated Financial Statements”), the Group adopts the provisions of Article 93 of theaforementioned rules.
(2) Basis of measurement
The consolidated financial statements of the Group have been prepared based on costs of acquisition,
except for the specified financial instruments that have been measured at fair value as mentioned in Note
3. Significant accounting policies.
(3) Functional currency and presentation currency
The consolidated financial statements of the Group are presented in Japanese yen, which is thefunctional currency of the Company, and figures less than one million yen are rounded down to thenearest million yen.

3. Changes in accounting policies
The significant accounting policies adopted for the consolidated financial statements are the same as thosefor the consolidated financial statements for the fiscal year ended March 31, 2018, with the exception of theitems described below.
(Adoption of IFRS 15 “Revenue from Contracts with Customers”)
The Group has adopted IFRS 15 “Revenue from Contracts with Customers”(published in May 2014) and“Clarifications to IFRS 15” (published in April 2016)(hereinafter, collectively referred to as ”IFRS 15”) fromthe first quarter ended June 30, 2018. When applying IFRS 15, as a transition measure the Group applies
this standard retrospectively with the cumulative effects of initially applying this standard recognized at thedate of initial application.
In accordance with IFRS 15, except for interests and dividend income stipulated by IFRS 9 “ Financial
instruments”, revenue is recognizes based on the following five-step model.
Step 1: Identify the contract with a customer
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognize revenue when the entity satisfies a performance obligation
Our group is engaged in the sales of precious metals, massage chairs, electrolytic hydrogen water generator,
hearing aids, heating equipment and other items. Regarding these products, revenue is recognized when the
goods are transferred to the customer, a point at which the customer has control of the goods and performanceobligation is deemed to have been satisfied. As for revenue pertaining to intermediate treatment or other−17 −processing of industrial wastes, revenue is recognized when the treatment of the said industrial waste iscompleted, a point at which the customer has control and performance obligation is deemed to have beensatisfied.
Regarding revenues pertaining to the design, construction and other works on fire-fighting, air conditioning
and sanitary equipment, revenue is recognized in accordance with the progress of performance obligation.
Progress is measured according to input method based on the costs incurred and other means.
Also, revenue is measured at a value derived by deducting discounts, rebates, returns, etc. from theconsideration undertaken in the contract with the customer.
The application of IFRS 15 does not have a significant impact on the performance or financial conditions ofour group.

4. Significant accounting estimates and associated judgements
In preparing consolidated financial statements, the management is required to make judgement,
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 in the accounting period in which such change occurs as well as theaccounting periods to be affected in the future.
The estimates and judgements made by the management that may have material impacts on the figures in
the consolidated financial statements are the same as those for the consolidated financial statements for the
fiscal year ended March 31, 2018.

−

18 −

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 andthe refining and processing business, industrial waste management and other environmental
preservation business, and life & health business including manufacturing and selling of healthequipment.
Therefore, the Group is composed of product and service segments based on business sectors. The threereporting segments are the precious metals 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 andsales of electric heaters, the design and installation of radiant heating and air conditioning systems, andthe design 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 fiscal year ended March 31, 2018 (from April 1, 2017 to March 31, 2018)(Millions of yen)
Reporting segment
Precious metals
business

Environmental
preservation
business

Life & healthbusiness

74,593−

16,16866

25,035
0

115,79766

74,593

16,23525,036

115,864

11,137

3,504

1,588

16,230Total

Adjustment

Consolidated−(66)

115,797−(66)

115,797(2,439)13,791

Revenue
External revenue
Intersegment revenue
Total
Operating income by businesssegment
Finance income
Finance costs

16
(397)

Profit before tax

13,410

Others:Depreciation and amortization
Impairment loss

1,020

479

194

1,694

572

2,267

33

33

52

119

0

120

(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.

−

19 −

For the fiscal year ended March 31, 2019 (from April 1, 2018 to March 31, 2019)(Millions of yen)
Reporting segment
Precious metals
business

Environmental
preservation
business

Life & healthbusiness

87,804−

17,15641

23,708
0

128,66942

87,804

17,197

23,70911,992

3,530

1,512

Total

Adjustment

Consolidated−(42)

128,669−

128,711(42)

128,669

17,034(2,556)

14,478

Revenue
External revenue
Intersegment revenue
Total
Operating income by businesssegment
Finance income
Finance costs

33(1,106)

Profit before tax

13,405

Others:Depreciation and amortization
Impairment loss

986

639

207

1,833

487

2,320

0

14

−

15

−

15

(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.

−

20 −

6. Per share information
The basis for calculating basic and diluted earning per share (attributable to ordinary shareholders) is asfollows.
Year ended March 31,
2018Year ended March 31,
2019Profit for the year attributable to ordinary
shareholders of parent
Profit attributable to owners of parent (Millions of yen)

9,416

9,000

−

−

9,416

9,000

34,775,417

39,453,473

112,800

161,261

34,888,217

39,614,734

Basic

270.77228.14

Diluted269.90227.21

Profit not attributable to ordinary shareholders ofparent (Millions of yen)
Profit used for calculation of the basic earning pershare (Millions of yen)
Weighted average number of shares during the year
(shares)
Dilutive effect(shares)
Weighted average number of diluted shares during theyear (shares)

Earning per share (Yen)

7. Subsequent events
Not applicable

−

21 −

5. Others(1) Amounts of SalesYear ended March 31, 2018
Amount(Millions of yen)

Year ended March 31, 2019Year-on-Year(%)

Amount(Millions of yen)

Year-on-Year
(%)

Gold

31,64996.6

41,742131.9

SilverPalladium

4,816
18,346

108.1
144.5

4,414
22,06991.7
120.3

Platinum
Industrial waste treatment

6,417
18,242

121.7
101.2

5,051
19,272

78.7
105.6

Other

36,325108.0

36,118

99.4

Total

115,797

108.4

128,669

111.1

−

22 −