Consolidated Financial Results for the First Quarter Ended June 30, 2013
Asahi Holdings, Inc.
July 29,2013
Stock code:

5857

Shares listed:Tokyo Stock Exchange (First Section)

U R L:

http://www.asahiholdings.com

Representative

Mitsuharu Terayama, Chairman and CEO

F o r f u r t h e r i n f o r m a t i o n p l e a s e c o n t a c t : Keitaro Shigemasa, Director(Phone) +81-3-6270-1833
Filing date of Quarterly Report:

August 13, 2013

Scheduled date of start of dividend payment:－Supplementary materials for the financial results: NoInvestor conference for the financial results: No(Rounded down to the nearest million yen)
1. Results of the three months ended June 30, 2013 (From April 1, 2013 to June 30, 2013)(1) Results of operations (cumulative)(Percentage changes relative to previous corresponding period)
Net sales
The three months ended
June 30, 2013
June 30, 2012
(Note) Comprehensive income

Millions of yen％

Operating income

Ordinary income

Millions of yen

Millions of yen％

24,720 (6.4)
2,661 121.7
26,412 (24.6)
1,200 (62.9)
The three months ended June 30, 2013
The three months ended June 30, 2012
Net income per share

The three months ended
June 30, 2013
June 30, 2012
(2) Financial Position

Net income％Millions of yen％

2,784 107.0
1,771 192.1
1,345 (59.5)
606 (68.7)
3,168 million yen 156.4％
1,235 million yen (50.7％)

Diluted net income per share

Yen
54.49
18.71

Yen－－

Shareholders’ equity
ratio
As ofMillions of yen
Millions of yen％
June 30, 2013
60,16444,25073.3
March 31, 2013
62,26042,012
67.3(Reference) Shareholders’ equity
As of June 30, 2013
44,112million yen
As of March 31, 201341,875 million yen
Total assets

Net assets

2. Dividend payments

Year ended March 31, 2013
Year ending March 31, 2014
Year ending March 31, 2014
(Forecast)

Dividends per share
Second quarter
Third quarter
Yen
Yen
30.00
－

First quarter
Yen－－

30.00

－

Year-end
Yen
30.00

Annual
Yen
60.00

30.00

60.00

(Note) Revisions in dividend forecast in the current quarter : No
3. Forecast (From April 1, 2013 to March 31,2014)(Percentage changes relative to previous corresponding period)
Net income
Operating income
Ordinary income
Net income
per share

Net sales
Millions of Yen

1st half
Year ending March 31, 2014

49,00093,000％(0.7)(3.5)

Millions of Yen

4,800
9,000％

65.7
20.1

Millions of Yen

4,900
9,100％

65.8
16.7

Millions of Yen ％

3,000
5,400

92.9
19.5

(Note) Revisions in forecast in the current quarter : Yes
For details, please refer to “Notice of Revision of Financial Results Forecast” made public on July 29, 2013.

Yen

92.25
165.92

* Notes(1) Changes in important subsidiaries during the current quarter : No
(2) Application of special accounting methods for quarterly consolidated financial statements : No
(3) Changes in accounting policies, accounting estimates and restatement(i) Changes in accounting policies resulting from the revision of the accounting standards and otherregulations: No(ii) Changes other than (i) above: No(iii) Changes in accounting estimates: No(iv) Restatement: No(4) Number of issued shares (common stock)(i) Number of issued shares at the quarter end (including treasury shares)
36,254,344 shares
As of June 30, 2013
As of March 31, 2013
36,254,344 shares(ii) Number of treasury shares at the quarter end
3,731,622 shares
As of June 30, 2013
As of March 31, 2013
3,756,439 shares(iii) Averaged number of shares during the period (quarterly cumulative period)
32,507,497 shares
Three months ended June 30, 2013
Three months ended June 30, 2012
32,408,093 shares*Indication regarding the situation of quarterly review procedures
These financial results are not subject to the quarterly review procedures pursuant to the Financial
Instruments and Exchange Act. As of the disclosure of the financial results, the procedures for reviewing
quarterly financial statements pursuant to the Financial Instruments and Exchange Act are in progress.
*Statement regarding the proper use of financial forecasts and other special remarks
These forecast performance figures are based on the information currently available to the Company’s
management and certain assumptions judged rational. Accordingly, these might be cases in which actual
results materially differ from forecasts of this report. Please refer to page 2 “(3) Consolidated Performance
Forecasts”.

【Appendix】

Table of contents of the appendix

1. Qualitative Information ..........................................................................................................................2(1) Consolidated Business Performance.......................................................................................................2(2) Consolidated Financial Position .............................................................................................................2(3) Consolidated Performance Forecasts......................................................................................................22. Notes Regarding Summary Information ................................................................................................3(1) Changes in important subsidiaries during the current quarter......................................................3(2) Application of special accounting methods for quarterly consolidated financial statements........3(3) Changes in accounting policies, accounting estimates and restatement ........................................3
3. Consolidated Financial Statements........................................................................................................4(1) Consolidated Balance Sheets .............................................................................................................4(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income....5
Consolidated Statements of Income for the three months ended June 30, 2013 ............................................. 5
Consolidated Statements of Comprehensive Income for the three months ended June 30, 2013.................... 5(3) Notes on Consolidated Financial Statements...................................................................................6(Notes on Assumptions for Going Concern) ........................................................................................................ 6(Notes in case of Significant Changes to Shareholders’ Equity) ........................................................................ 6(Segment Information, etc.)................................................................................................................................. 61

1. Qualitative Information(1) Consolidated Business Performance
During the first quarter of the current fiscal year (April 1, 2013 through June 30, 2013), the Japanese
economy showed some signs of recovery, such as correction of the high yen and a favorable turn in shareprices due to confidence in the economic policies of the new Government. The impact on the real economy,
however, is still unclear. Moreover, there are still concerns about Europe and emerging economies, so thefuture remains opaque.
Under these economic conditions, in the precious metal recycling business, the collection volumes of gold,
palladium, and so on surpassed those of the corresponding term the year before. In addition, the averagesales prices of gold, silver, platinum, and palladium were higher than they were in the corresponding term
the year before.
In the environmental preservation business, even though domestic production activity was sluggish, thecollection volumes of medical-related waste, recycled glass, and so on surpassed those of the corresponding
term the year before. In part because of the contributions of INTER CENTRAL, INC., which became awholly-owned subsidiary in July 2012, first-quarter sales during the current fiscal year increased comparedto the corresponding term the year before.
As a result of the above, as consolidated results for the three-month period, we recorded net sales of 24,720
million yen, down 1,691 million yen (-6.4%) year-on-year; operating income of 2,661 million yen, up 1,461
million yen (+121.7%) year-on-year; ordinary income of 2,784 million yen, up 1,439 million yen (+107.0%)
year-on-year; and net income of 1,771 million yen, up 1,164 million yen (+192.1%) year-on-year.
Looked at by segment, sales in the precious metal recycling business were 21,009 million yen, down 2,024
million yen (-8.8%) year-on-year; and sales in the environmental preservation business were 3,711 million yen,up 332 million yen (+9.8%) year-on-year.

(2) Consolidated Financial Position
As of June 30, 2013, total assets amounted to 60,164 million yen, down 2,096 million yen from the previous
fiscal year end. This was due mainly to a decrease of 3,003 million yen in notes and accounts receivable-trade,an increase of 755 million yen in inventories.
Total liabilities amounted to 15,914 million yen, down 4,333 million yen from the previous fiscal year end.
This was due mainly to decrease of 3,750 million yen in loans payable.
Net assets totaled 44,250 million yen up 2,237 million yen from the previous fiscal year end. This was due
mainly to the increase in retained earnings resulting from the recording of 1,771 million yen in net income.
As a result, the shareholders’ equity ratio changed to 73.3%, from 67.3% at the end of the previous fiscalyear.

(3) Consolidated Performance Forecasts
As for the forecasts, during the first quarter, average unit sales prices of precious metals were higher thaninitial projections, while collection volume in the precious metal recycling business remained in line with theforecast overall. Consequently, the Company’s consolidated net sales, operating income, ordinary income aswell as net income for the first half of the consolidated fiscal year ending September 30, 2013 is expected toexceed those previously forecasted. Precious metal market prices have also fluctuated widely compared toinitial projections and the Company has revised full-year forecasts reflecting the current market price levels.

Revision of the first half period consolidated results forecast (April 1, 2013 to September 30, 2013)（Millions of YEN, ％）Net Income per
Net Income
Share 2Q
2Ｑ FY2013
FY2013

Net Sales

Operating
IncomeOrdinary
IncomePrevious Forecast (A)(Announced on May 10,2013））

44,000

4,000

4,000

2,400

74.02

Revised Forecast (B)49,000

4,800

4,900

3,000

92.25

Change (B－A）

5,000

800

900600―Change (%)

11.4

20.0

22.5

25.0―(Ref.) 2QFY2012 ended
September 30, 2012

49,324

2,896

2,955

1,55547.972

Revision of consolidated results forecast for the fiscal year ending March 2014
（April 1, 2013 to March 31, 2014）（Millions of YEN, ％）Net Income Net Income per
FY2013
Share FY2013

Net Sales

Operating
IncomeOrdinary
IncomePrevious Forecast (A)(Announced on May 10,2013）

90,000

8,500

8,500

5,000

154.09

Revised Forecast (B)93,000

9,000

9,100

5,400

165.92

Change (B－A）

3,000

500

600

400

―

Change (%)

3.3

5.9

7.1

8.0

―

96,368

7,495

7,794

4,518

139.24（Ref.）the fiscal year ended
March 31, 2013

2. Notes Regarding Summary Information(1) Changes in important subsidiaries during the current quarter
Not applicable(2) Application of special accounting methods for quarterly consolidated financial statements
Not applicable(3) Changes in accounting policies, accounting estimates and restatement
Not applicable33. Consolidated Financial Statements(1) Consolidated Balance Sheets

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

As ofJune 30,
2013
Thousands of
U.S.dollars

As ofMarch 31,
2013
Millions of yen

As ofJune 30,
2013
Millions of yen

4,141
12,539
5,067
8,114
1,077
2,367
(9)
33,298

2,882
9,535
6,024
7,791
1,199
4,112
(8)
31,537

29,23796,72061,10879,032
12,162
41,712(82)
319,888

9,281
13,031
2,647
24,9599,20813,043
2,520
24,77393,402
132,302
25,570251,274

2,380
797
3,177
824
28,96262,260

2,283
759
3,042
811
28,62760,164

23,158
7,703
30,861
8,229
290,364
610,252

LIABILITIESCurrent liabilities
Notes and accounts payable-trade
2,463
2,366
23,999
Short-term loans payable
10,245
1,645
16,691
Current portion of long-term loans payable
1,500
1,270
12,882
Income taxes payable
349
822
8,343
Provision for bonuses
597
289
2,934
Provision for directors’ bonuses
8
Provision for repairs
113
50
515
Provision for product warranties
2116
168
Other
3,253
2,688
27,274
Total current liabilities
18,553
9,149
92,804
Noncurrent liabilities
Long-term loans payable
5,080
51,527
Provision for retirement benefits
107
112
1,145
Other
1,587
1,572
15,946
Total noncurrent liabilities
1,694
6,765
68,618
Total liabilities
20,24815,914
161,422
NET ASSETS
Shareholders’ equity
Capital stock
4,480
4,480
45,449
Capital surplus
6,087
6,094
61,819Retained earnings
36,69737,494
380,303
Treasury stock(5,507)(5,470)(55,492)
Total shareholders’ equity
41,75842,598432,079
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
1919
196
Deferred gains or losses on hedges
(41)
1,221
12,391
Foreign currency translation adjustment
139
272
2,767
Total accumulated other comprehensive income
116
1,513
15,354
Subscription rights to shares
77
77
790
Minority interests
5959
607
TOTAL NET ASSETS
42,012
44,250448,830
TOTAL LIABILITIES AND NET ASSETS
62,26060,164
610,252
U.S. dollar amounts represent translations using the approximate exchange rate on June 30, 2013 ofYen98.59=US$1, and are included solely for the convenience of readers.

4(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income for the three months ended June 30, 2013

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

Income taxes-current
Income taxes-deferred
Total income taxes
Income before minority interests
Net incomeThe three months
ended June 30, 2012
Millions of yen

The three months
ended June 30, 2013
Millions of yen

The three months
ended June 30, 2013
Thousands ofU.S.dollars

26,412
23,913
2,498
1,297
1,200
152
7
1,345
4
312
1,037
153
277
430
606
606

24,72020,724
3,996
1,334
2,661
132
9
2,784
1
5
2,781
862
147
1,009
1,771
1,771

250,745
210,21240,534
13,53526,9981,346
98
28,24520
56
28,2108,748
1,495
10,244
17,966
17,966

Consolidated Statements of Comprehensive Income for the three months ended June 30, 2013
The three months
ended June 30, 2012
Millions of yen

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

The three months
ended June 30, 2013
Millions of yen

The three monthsended June 30, 2013
Thousands ofU.S.dollars

606

1,771

17,966

(2)
524
103

0
1,263
125

3
12,811
1,278

4

882

629
1,235

1,397
3,168

14,17432,140

1,235
-

3,168
0

32,134
6U.S. dollar amounts represent translations using the approximate exchange rate on June 30, 2013 of
Yen98.59=US$1, and are included solely for the convenience of readers.

5(3) Notes on Consolidated Financial Statements(Notes on Assumptions for Going Concern)
Not applicable(Notes in case of Significant Changes to Shareholders’ Equity)
Not applicable(Segment Information, etc.)[Segment information]
Ⅰ For the three months ended June 30, 2012(From April 1, 2012 to June 30, 2012)
1. Information on sales and income (loss) by reporting segment(Millions of Yen)
Precious metal recycling
business

Environmental
preservationbusiness

1) Customers
2) Intersegment

23,033－

3,379－

26,412－

Total

23,033

3,379

26,412

854

345

1,200

Total

Net sales

Segment income(Note) Total segment income matches operating income recorded on the consolidated statements of income.
2. Impairment losses on noncurrent assets, goodwill, etc. by reporting segment(Material impairment loss on noncurrent assets)
Resulting from the decision of dismantling a part of building and structures, their book value wasreduced to a recoverable amount and the reduced amount with demolition cost were posted as impairment
loss under extraordinary losses. In consequence, impairment losses were recognized in the amount of 71
million yen in precious metal recycling segment and 148million yen in environmental preservation segment.
Ⅱ For the three months ended June 30, 2013(From April 1, 2013 to June 30, 2013)
1. Information on sales and income (loss) by reporting segment(Millions of Yen)
Precious metal recycling
business

Environmental
preservationbusiness

21,0093,711

24,720－－－21,0093,711

24,720

2,332

329

2,661

TotalNet sales
1) Customers
2) Intersegment
TotalSegment income(Note) Total segment income matches operating income recorded on the consolidated statements of income.
2. Impairment losses on noncurrent assets, goodwill, etc. by reporting segment
Not applicable6