Consolidated Financial Results for the First Quarter Ended June 30, 2021
Asahi Holdings, Inc. [IFRS]July 28, 2021

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

Filing date of Quarterly Report:(Phone) +81–3–6270–1833
August 6, 2021

Start of dividend payment:
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, 2021 (From April 1, 2021 to June 30, 2021)(1) Results of operations (cumulative)(Percentage: Changes relative to corresponding previous period)
OperatingprofitRevenue
The three months ended
June 30, 2021
June 30, 2020

Millions of yen

50,424
39,206%

Millions of yen

28.6 6,933
29.6 5,258

Profit before
tax%

Millions of yen

31.9 6,831
56.5 5,311% Millions of yen

28.6 4,842
63.1 3,632%

Millions of yen

33.3
78.4

Basic earnings per share

Diluted earnings per share

Yen
61.53
46.16

Yen
55.12
45.85

The three months ended
June 30, 2021
June 30, 2020

Profitattributable toowners of parent

Profit

4,842
3,632

%

33.3
78.4

Total
comprehensive
incomeMillions of yen

7,137
5,326

%

34.0
73.1

(Note) The Company conducted a stock split with a ratio of two-for-one on April 1, 2021. Basic earnings per share anddiluted earnings per share are calculated assuming the stock split had already been carried out at the start of theprevious fiscal year.
(2) Financial Position

As ofJune 30, 2021
March 31, 2021

Total assets

Total equity

Equity attributable toowners of parent

Equity attributable toowners of parent ratio

Millions of yen
261,740
244,803

Millions of yen
101,789
97,903

Millions of yen
101,789
97,903

38.9
40.0

%

2. Dividend payments
Dividends per share

Year ended March 31, 2021
Year ending March 31, 2022
Year ending March 31, 2022
(Forecast)First quarter

Second quarter

Third quarter

Year-end

Yen

Yen

Yen

Yen

Annual
Yen

–
–

80.00

–

90.00

170.00

45.00

–

45.00

90.00

(Note) Revisions in dividend forecast in the current quarter: No
The Company conducted a stock split with a ratio of two-for-one on April 1, 2021. The amounts of dividends per
share for the year ended March 31, 2021 are the actual amounts before the stock split. The forecast amount for
the year ending March 31, 2022 is the figure after the stock split.

3. Forecast (From April 1, 2021 to March 31, 2022)
Revenue
Millions of yen

Six months ending
94,400
September 30, 2021
Year ending March 31, 2022 190,000(Percentage: Changes relative to corresponding previous period)
ProfitOperating
Profit before
Basic earnings
attributable toprofittax
per shareowners of parent% Millions of yen% Millions of yen% Millions of yen

%

Yen

19.3

12,5005.7

12,500

5.3

8,700

5.7

110.5515.3

26,0003.5

26,000(0.5) 18,200(29.3)

231.27(Note) Revisions in forecast in the current quarter: No* Notes(1)
Changes in significant subsidiaries during the period: No(2)

Changes in accounting policies and accounting estimates(i) Changes in accounting policies required by IFRS: No(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 quarter end (including treasury stock)
As of June 30, 2021

79,708,688 shares

As of March 31, 2021

79,708,688 shares(ii) Number of treasury stock at the quarter end
As of June 30, 2021

1,011,774 shares

As of March 31, 2021

1,011,774 shares(iii) Averaged number of shares during the period (quarterly cumulative period)
Three months ended June 30, 2021

78,696,914 shares

Three months ended June 30, 2020
78,697,329 shares(Note) The Company conducted a stock split with a ratio of two-for-one on April 1, 2021. Number of issued
shares at the end of year, number of treasury stock at the end of year, and averaged number ofshares during the period are calculated assuming the stock split had already been carried out at
the start of the previous fiscal year.
* The quarterly financial statements are not subject to quarterly reviews by accounting auditors.
* 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 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, 2021 ............................... 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, 2021................................ 6(3) Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended June 30, 2021 ..... 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. Significant accounting policies .............................................................................................................................. 11
4. Significant accounting estimates and associated judgements ............................................................................. 11
5. Segment information ............................................................................................................................................. 12
6. Subsequent events ................................................................................................................................................. 13− 1 −1. Qualitative Information(1) Consolidated Business Performance
The Japanese economy was in a difficult situation during the current consolidated cumulative first quarteras a result of the impact of the novel coronavirus disease (COVID-19) with intermittent declarations of statesof emergency and important measures to prevent infection leading to restrictions being placed on socio-economic
activities. Although there are signs for optimism, such as a continuing movement toward economic recovery,
with no set forecasts for when the COVID-19 crisis will subside, the situation continues to be uncertain. Under
these conditions, the Group’s results in each business segment were as follows.
Precious Metals business
Revenue and operating profit in precious metal recycling business in Japan, South Korea and Malaysia
increased from the same period in the previous year thanks to the rise in precious metal prices and ensuring
the volume of precious metal collection. However, revenue and operating profit in precious metal refining
business in North America declined from the same period a year before owing to a decrease in financialtransactions such as arbitrage transactions despite increases in product processing and sales. As a result,revenue in this segment increased by 32.4% from the same period of the previous year, and operating profit
increased by 35.6% from the same period of the previous year.
Environmental Preservation business
Revenue and operating profit in the Environmental Preservation business were at almost the same levelcompared with the same period in the previous year due to recovery in industrial production activities andincreases in the price of processing and other factors. However, owing to the removal of INTER CENTRAL, INC.
from the scope of consolidation at the end of the previous fiscal year, and the increase in fixed costs associatedwith the commencement of operations of a new incinerator, revenue in this segment dropped 2.2% from thesame period of the previous year, and operating profit dropped 3.3% from the same period of the previous year.
As a result of the above, revenue during the first quarter of the current fiscal year was 50,424 million yen, a
year-on-year increase of 11,218 million yen (+28.6 percent). Operating profit was 6,933 million yen, a year-onyear increase of 1,674 million yen (+31.9 percent). Profit before tax was 6,831 million yen, a year-on-yearincrease of 1,519 million yen (+28.6 percent). Profit was 4,842 million yen, a year-on-year increase of 1,209
million yen (+33.3 percent). Profit attributable to owners of parent for the period was therefore 4,842 million
yen, an increase of 1,209 million yen (+33.3 percent) year-on-year. By segment, revenue in the Precious Metals
business was 46,273 million yen, a year-on-year increase of 11,312 million yen (+32.4 percent). In theEnvironmental Preservation business, revenue was 4,151 million yen, a year-on-year decrease of 94 million yen(-2.2 percent).

(2) Consolidated Financial Position and Cash Flows for the three months ended June 30, 2021
As of June 30, 2021, total assets amounted to 261,740 million yen, up 16,937 million yen from the previous
fiscal year end. This was due mainly to a decrease of 2,636 million yen in income tax receivables, a decrease of
3,753 million yen in other current assets and an increase of 20,005 million yen in trade and other receivables.
Total liabilities amounted to 159,951 million yen, up 13,051 million yen from the previous fiscal year end.
This was due mainly to a decrease of 3,552 million yen in income tax payable, a decrease of 2,991 million yen
in other current liabilities, an increase of 2,835 million yen in trade and other payables and an increase of
18,410 million yen in bonds and loans payable.
Total equity amounted to 101,789 million yen, up 3,885 million yen from the previous fiscal year end. Thiswas due mainly to an increase of 7,137 million yen in comprehensive income and a decrease of 3,541 million yen
used for dividends.
As a result, the equity attributable to owners of parent ratio changed to 38.9%, from 40.0% at the end of theprevious fiscal year.
Net cash used in operating activities amounted to 3,212 million yen due mainly to 6,831 million yen of profit
before tax, 654 million yen of depreciation and amortization, 847 million yen of increase in inventories, 19,154
million yen of increase in trade and other receivables, 10,425 million yen of increase in trade, loans and otherpayables, 7,255 million yen of income taxes paid and 2,693 million yen of income taxes refunded.

− 2 −Net cash used in investing activities amounted to 1,916 million yen due mainly to 1,754 million yen ofpurchase of property, plant and equipment.
Net cash provided by financial activities amounted to 6,308 million yen due mainly to 9,910 million yen of net
increase in long- and short-term loans payable and 3,522 million yen of cash dividends paid.
As a result, cash and cash equivalents as of June 30, 2021 increased 941 million yen from March 31, 2021, to
10,964 million yen.

(3) Consolidated Performance Forecasts
No changes have been made to the forecasts going forward as they are in line with the financial forecast for
the fiscal year ending March 31, 2022 announced in the “Consolidated Financial Results for the Fiscal Year
Ended March 31, 2021” made public on April 27, 2021.

− 3 −2. Condensed Consolidated Financial Statements(1) Condensed Consolidated Statements of Financial Position
As ofMarch 31,
2021

As of
June 30,
2021

Millions of yen

Millions of yen

ASSETS
Current assets
Cash and cash equivalents

10,023

10,964

Trade and other receivables
Inventories

100,775
63,515

120,780
64,371

Income tax receivables
Other financial assets

2,833
2,169

197
3,774

Other current assets

12,644

8,890

Total current assets

191,961

208,978

37,90439,285

Goodwill
Intangible assets

1,040
697

1,040
698

Investments accounted for using equity method
Deferred tax assets

3,544
8,392

3,475
6,626

Net defined benefit asset
Financial assets

165
1,051

210
1,355

Non-current assets
Property, plant and equipment

Other non-current assets

44

69

Total non-current assets

52,841

52,761

244,803261,740

Total assets− 4 −As ofMarch 31,
2021

As of
June 30,
2021

Millions of yen

Millions of yen

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

26,46579,33729,301
84,880

Income tax payable
Other financial liabilities

5,914
1,247

2,361
364

Provisions
Other current liabilities

1,601
5,002

1,189
2,010

Total current liabilities
Non-current liabilities

119,568

120,108

Bonds and loans payable
Deferred tax liabilities

25,501
968

38,368451

Net defined benefit liability
Other financial liabilities

106
754

111
910

27,331

39,842

Total liabilities
EquityTotal non-current liabilities

146,899

159,951

Capital stock
Capital surplus

7,790
11,952

7,790
12,241

Treasury stock
Retained earnings(957)
80,604(957)
81,936

Other components of equity(1,486)776

Total equity attributable to owners of parent

97,903

101,789

Total equity
Total liabilities and equity− 5 −97,903

101,789244,803261,740

(2) Condensed Consolidated Statements of Income for the Three Months Ended June 30, 2021
The three months
ended June 30, 2020

The three months
ended June 30, 2021

Millions of yen

Millions of yen

Revenue
Cost of sales

39,206(32,246)

50,424(41,708)

Gross profit

6,959

8,715

Selling, general and administrative expenses
Other operating income(1,662)15(1,809)
21

(46)

(18)

(7)

22

Operating profit

5,258

6,933

Finance income
Finance costs

71
(22)

77
(274)

3

94

Profit before tax
Income tax expenses

5,311(1,678)

6,831(1,988)

Profit

3,632

4,842

Profit attributable to:
Owners of parent

3,632

4,842

Other operating expenses
Share of profit (loss) of investments accounted forusing equity method

Other non-operating income

Non-controlling interests
Profit

–

–

3,632

4,842

46.16
45.85

61.53
55.12

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, 2021
The three months
ended June 30, 2020

The three months
ended June 30, 2021

Millions of yen

Millions of yen

Profit

3,632

4,842

1

(0)

Other comprehensive income
Items that will not be reclassified to profit or loss
Financial assets measured at fair value
through other comprehensive income
Remeasurements of defined benefit plans

(115)

31

Share of other comprehensive income ofinvestments accounted for using equity method

0(2)

Total items that will not be reclassified to profit
or loss

(113)

28

1,673
134

2,126
139

1,808

2,266

1,694

2,295

5,326

7,137

Owners of parent
Non-controlling interests

5,326
–

7,137
–

Comprehensive income

5,326

7,137

Items that may be reclassified to profit or loss
Cash flow hedges
Translation adjustments of foreign operations
Total items that may be reclassified to profit orloss
Other comprehensive income, net of tax
Comprehensive income
Comprehensive income attributable to:− 7 −(4) Condensed 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
hedgesCapitalstock

operations

Balance at April 1, 2020
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, 2020

7,790
–

10,755–(956)–

60,797
3,632(4,198)–(5,008)
–

–

–

–

–

134

1,673

–

–

–

3,632

134

1,673

–
–

–
–

(0)
–

–
(2,754)

–
–

–
–

–

–

–

(115)

–

–

–

51

–

–

–

–

–

51

(0)

(2,870)

–

–

7,790

10,806(956)

61,559(4,063)(3,334)(Millions of yen)
Equity attributable to owners of parent
Other components of equity
Financial
Remeasureassets
measured atments offair value
definedthrough otherbenefitcomprehenplans
sive income

Balance at April 1, 2020
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, 2020

Total

Total

Total equity

(5)
–

–
–

(9,212)–

69,174
3,632

69,174
3,632

1

(115)

1,694

1,694

1,694

1

(115)

1,694

5,326

5,326

–
–

–
–

–
–

(0)
(2,754)(0)(2,754)

–

115

115

–

–

–

–

–

51

51

–

115

115

(2,703)(2,703)(4)–(7,402)

71,79871,798− 8 −(Millions of yen)
Equity attributable to owners of parent
Other components ofequityCapitalTreasury
Retained
Translation
surplusstockearnings
adjustments
Cash flowof foreign
hedgesCapitalstock

operations

Balance at April 1, 2021
ProfitOther comprehensive
incomeTotal comprehensive
incomeDividends
Reclassified from othercomponents of equity toretained earnings
Share-based paymenttransactions
Total transactions withownersBalance at June 30, 2021

7,790
–

11,952–(957)–

80,604
4,842(2,944)
–

1,454
–

–

–

–

–

139

2,126

–

–

–

4,842

139

2,126

–

–

–

(3,541)

–

–

–

–

–

31

–

–

–

289

–

–

–

–

–

289

–

(3,509)

–

–

7,790

12,241(957)

81,936(2,804)

3,580(Millions of yen)
Equity attributable to owners of parent
Other components of equity
FinancialassetsRemeasuremeasured atments offair value
definedthrough otherbenefitcomprehenplans
sive income

Balance at April 1, 2021
ProfitOther comprehensive
incomeTotal comprehensive
incomeDividends
Reclassified from othercomponents of equity toretained earnings
Share-based paymenttransactions
Total transactions withownersBalance at June 30, 2021

Total

Total

Total equity

3
–

–
–

(1,486)–

97,903
4,842

97,903
4,842

(2)

31

2,295

2,295

2,295

(2)

31

2,295

7,137

7,137

–

–

–

(3,541)(3,541)

–

(31)

(31)

–

–

–

–

–

289

289

–

(31)

(31)

(3,252)(3,252)

0–776

101,789

101,789− 9 −(5) Condensed Consolidated Statements of Cash FlowsThe three months
ended June 30,
2020

The three months
ended June 30,
2021

Millions of yen

Millions of yen

Profit before tax
Depreciation and amortization

5,311
608

6,831
654

Impairment loss
Finance income and finance cost

39
20

–
293

Other non-operating income and expenses
Share of loss (profit) of investments accounted for using equity

(3)

(94)

Cash provided by (used in) operating activities

methodDecrease (increase) in inventories

7

(22)

(1,762)(847)

Decrease (increase) in trade and other receivables
Increase (decrease) in trade, loans and other payables(8,821)
8,406(19,154)
10,425

Other, net

16

3,205

Subtotal

3,821

1,291

2
(10)

90
(32)

Income taxes paid
Income taxes refunded(6,280)7(7,255)
2,693

Net cash provided by (used in) operating activities

Interest and dividend income received
Interest expenses paid

(2,458)(3,212)

Cash provided by (used in) investing activities
Payments into time deposits

(89)

(95)

Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment

89(1,031)95(1,754)

Proceeds from sales of property, plant and equipment
Purchase of intangible assets

3
(65)

4
(124)

Proceeds from sales of shares of subsidiaries
Other, net

20
145

–
(42)

Net cash provided by (used in) investing activities
Cash provided by (used in) financing activities(928)(1,916)

Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable

(658)
–

(2,872)
12,783(0)(2,743)–(3,522)

Purchase of treasury stock
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

(111)

(79)

(3,512)

6,308

(158)

(238)

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period(7,059)22,908941
10,023

Cash and cash equivalents at end of period

15,84910,964− 10 −

(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, 2021 comprise the Company and its
subsidiaries (hereinafter the “Group”) as well as the interests in its affiliated companies.
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.

3. Significant 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, 2021.
The income tax for the three months ended June 30, 2021 was calculated based on the estimated averageannual effective tax rate.

4. Significant accounting estimates and associated judgements
In preparing condensed 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 judgement, estimates and assumptions 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, 2021.

− 11 −

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.
Therefore, the Group is composed of product and service segments based on business sectors. The tworeporting segments are the Precious Metals business and the Environmental Preservation business.
Meanwhile, these reporting segments are not aggregated.
The Precious Metals business engages mainly in recycling and selling of precious and rare metals suchas gold, silver, palladium, and platinum from scrap containing precious metals, as well as refining andprocessing of precious metals such as gold and silver.
The main work of the Environmental Preservation business is the collection, transport and intermediate
processing of industrial waste.
(2) Segment revenue and performance
Accounting policies of the reporting segments are the same as those of the Group stated in Note “3.
Significant accounting policies.”
Revenue and other performance of each reportable segment of the Group are as follows.
For the three months ended June 30, 2020 (from April 1, 2020 to June 30, 2020)
Reporting segment(Millions of yen)

Precious Metals
Business

Environmental
Preservation
Business

Subtotal

34,961

4,245

39,206––––34,961

4,245

5,287

685

Other

Total

Adjustment

Consolidated

39,206–

39,206––––

39,206–

39,206–

39,206

5,972

(7)

5,964

(706)

5,258

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

71

Finance costs
Other non-(22)
3

operating income
Profit before tax(Note)

5,311

Adjustments of operating profit by business segment are mainly corporate expenses that are not allocatedto each reporting segment.

− 12 −

For the three months ended June 30, 2021 (from April 1, 2021 to June 30, 2021)
Reporting segment(Millions of yen)

Precious Metals
Business

Environmental
Preservation
Business

Subtotal

46,273

4,151

50,424

–

–

–

–

Total

46,273

4,151

Operating profit
by business

7,166

662

Revenue
External
revenue
Intersegment
revenue

Other

Total

Adjustment

Consolidated

50,424–50,424––––50,424–50,424–50,424

7,829

22

7,852

(919)

6,933

segment
Finance income
Finance costs

77
(274)

Other nonoperating income

94

Profit before tax

6,831(Note)

Adjustments of operating profit by business segment are mainly corporate expenses that are not allocatedto each reporting segment.

6. Subsequent events
Not applicable− 13 −