Consolidated Financial Results for the Fiscal Year Ended March 31, 2016
Asahi Holdings, Inc. [Japan GAAP]May 10, 2016
Stock code:

5857

Shares listed:Tokyo Stock Exchange (First Section)

U R L:

http://www.asahiholdings.com

Representative

Mitsuharu Terayama, President&CEO

For further information please contact:

Katsuya Murashima, Corporate Planning & Communications
Department Manager(Phone) +81-3-6270-1833

The Ordinary General Meeting of Shareholders:June 14, 2016

Filing date of financial statement:

June 15, 2016

Start of dividend payment:
May 30, 2016
Supplementary materials for the financial results: No
Investor conference for the financial results:
Yes (for institutional investors, analysts)(Rounded down to the nearest million yen)
1. Results of the fiscal year ended March 31, 2016 (From April 1, 2015 to March 31, 2016)(1) Results of operations(Percentage: Changes relative to corresponding previous period)
Net sales

Operating income

The fiscal year ended
Millions of yen％
Millions of yen％
March 31, 2016
118,473
6.3
8,705 (16.9)
March 31, 2015
111,41718.2
10,4808.8(Note) Comprehensive income: The fiscal year ended March 31, 2016
The fiscal year ended March 31, 2015
Net income per
share
The fiscal year ended
March 31, 2016
March 31, 2015

Yen
153.54176.89Diluted
net income
per share
Yen－－

Profit attributable toOrdinary income
Millions of yen

owners of parent％

Millions of yen％

8,510 (19.4)
5,031 (12.9)
10,561
5.7
5,774
(3.3)
2,554 million yen : (57.2%)
5,973 million yen : (7.0%)
Ordinary
Operating
Return on
income toincomeequitytotal assets
to net sales
％
％
％
9.9
8.2
7.3
11.9
12.4
9.4

(2) Financial Position
Shareholders’equity ratio
As ofMillions of yen
Millions of yen％
March 31, 2016
103,589
51,30049.1
March 31, 2015
104,877
50,95848.2(Reference) Shareholders’ equity:
As of March 31, 2016
50,862 million yen
As of March 31, 2015
50,504 million yen
Total assets

Net assets

Net assets per share
Yen
1.560.21
1,542.82(3) Cash flows

The fiscal year ended
March 31, 2016
March 31, 2015

Cash flows fromoperatingactivities
Millions of yen
14,2899,419

Cash flows frominvestingactivities
Millions of yen(1,900)(29,633)

Cash flows fromfinancing activities
Millions of yen(6,473)
21,442

Cash and cash
equivalents at endof the fiscal year
Millions of yen
16,564
10,841

2. Dividend payments
Dividends per share
1st
Quarter

2nd
Quarter

3rd
QuarterYear-end

AnnualThe fiscal Year ended

Yen

Yen

Yen

Yen

Yen

March 31, 2015
March 31, 2016
Year ending
March 31, 2017(Forecast)

－
－

30.00
30.00

－
－

30.00
30.00

60.00
60.00

－

30.00

－

30.00

60.00

3. Forecast (From April 1, 2016 to March 31, 2017)
Revenue
Millions of Yen ％Total
Dividend
Payment(Annual)Millionsof yen1,964
1,969

Payout
Ratio

Dividend
to Net Assets(Consolidated) (Consolidated)

%
33.9
39.1

%
4.0
3.9

29.6

(Percentage: Changes relative to corresponding previous period)
Operating
Profit before
Profit attributable to
Basic earningincometax
owners of parent
per share

Millions of Yen％

Millions of Yen ％Millions of Yen ％Yen

Six months ending
53,000
－
4,500
－
4,500
－
2,900
－
88.96
September 30, 2016
Year ending March 31, 2017
110,000－
10,000－10,000－6,600－
202.46(Note) The above forecast is calculated under International Financial Reporting Standards(IFRS), as theCompany has decided to adopt IFRS since Fiscal 2017. Consequently, percentage changes compared with Fiscal
2016 under Japan GAAP are omitted.
* Notes(1) Changes in significant subsidiaries during the current fiscal year: No(2) Changes in accounting policies, accounting estimates and restatement(i) Changes in accounting policies resulting from the revision of the accounting standards and otherregulations: Yes(ii) Changes other than (i) above: Yes(iii) Changes in accounting estimates: Yes(iv) Restatement: No(Note) For details, please refer to the statement under the heading of “5. Consolidated Financial Statements(5) Notes on Consolidated Financial Statements [Changes in accounting policies]” on page 18.
(3) Number of issued shares (common stock)(i) Number of issued shares at the end of year (including treasury shares)
As of March 31, 201636,254,344 shares
As of March 31, 2015
36,254,344 shares(ii) Number of treasury shares at the end of year
As of March 31, 2016
3,654,607 shares
As of March 31, 2015
3,519,057 shares(iii) Averaged number of shares during the period
Year ended March 31, 2016
32,773,714 sharesYear ended March 31, 2015
32,646,918 shares

(Reference) Summary of Nonconsolidated Results
1. Nonconsolidated Results of the Year ended March 31, 2016(From April 1, 2015 to March 31, 2016)(1) Results of operations(Percentage: Changes relative to corresponding previous period)
Net sales
The fiscal year
ended
March 31, 2016
March 31, 2015

The fiscal year ended
March 31, 2016
March 31, 2015

Millions of yen

6,865
6,690

％

2.6
(18.3)

Operating income

Ordinary income

Millions of yen

Millions of yen

5,604
5,579

％

0.5
(21.3)

5,764
5,703

Net income％

1.1(19.9)Net income per share

Diluted net income per share

Yen
173.01173.83

Yen－－

Millions of yen

5,670
5,674

％

(0.1)
(19.0)(2) Financial Position

As ofMarch 31, 2016
March 31, 2015
(Reference)
Shareholders’ equity

Total assets

Net assets

Millions of yen
74,00950,335

Millions of yen
48,21444,726

As of March 31, 2016 : 48,214 million yen

Shareholders’equity ratio
％
65.1
88.7

Net assets per
share
Yen
1,478.98
1,363.92

As of March 31, 2015: 44,648 million yen*Indication regarding the situation of audit procedures
These financial results are not subject to the audit procedures pursuant to the Financial Instruments andExchange Act. As of the disclosure of the financial results, the procedures for auditing financial statements
pursuant to the Financial Instruments and Exchange Act are in progress.
*Statement regarding the proper use of financial forecasts and other special remarks
These forecast performance figures are based on the information currently available to the company’s
management and certain assumptions judged rational. Accordingly, these might be cases in which actual
results materially differ from forecasts of this report. Please refer to page 2 “1. Information Regarding
Consolidated Performance (1) Consolidated Operating Results for the Year ended March 31, 2016” for theassumptions used and other notes.

【Appendix】

Table of contents of the appendix

1. Information Regarding Consolidated Performance ...................................................................................... 2(1) Consolidated Operating Results for the Year ended March 31, 2016 ....................................................... 2(2) Consolidated Financial Position and Cash Flows for the Year ended March 31, 2016 .............................. 3(3) Dividends .............................................................................................................................................. 3(4) Business and other risks ........................................................................................................................ 3
2. Our Group .................................................................................................................................................. 6
3. Management Policy.................................................................................................................................. 8(1) Basic management policy ................................................................................................................... 8(2) Medium to long-term strategies ........................................................................................................ 8(3) Challenge to be addressed .................................................................................................................. 8(4) The state of internal control system .................................................................................................. 8
4. Basic Concept Regarding Selection of Accounting Standards .............................................................. 8
5. Consolidated Financial Statements ........................................................................................................ 9(1) Consolidated Balance Sheets ............................................................................................................. 9(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income.. 11
Consolidated Statements of Income for the fiscal year ended March 31, 2016 and 2015 .............................. 11
Consolidated Statements of Comprehensive Income for the fiscal year ended March 31, 2016 and 2015 .... 11(3) Consolidated Statements of Changes in Net Assets .............................................................................. 12(4) Consolidated Statements of Cash Flows ......................................................................................... 14(5) Notes on Consolidated Financial Statements ................................................................................. 15[Notes on Assumptions for Going Concern] ...................................................................................................... 15[Basis of Presenting Consolidated Financial Statements] ............................................................................... 15[Changes in accounting policies] ....................................................................................................................... 18[Segment Information]....................................................................................................................................... 19[Per Share Information]..................................................................................................................................... 21[Significant Subsequent Events] ....................................................................................................................... 21
6. Others ..................................................................................................................................................... 22(1) Amounts of Production, Orders Received, Sales ............................................................................. 22

1

1. Information Regarding Consolidated Performance(1) Consolidated Operating Results for the Year ended March 31, 2016
①In the Japanese economy during the consolidated fiscal year ended March 31, 2016, improvements moved
forward for the employment and income environment, including corporate earnings, due to such factors as thegovernment's economic policies and the Bank of Japan's monetary easing policy, and the first half of the year
had a trend toward gradual recovery. Afterward, the pace of the recovery slowed down, and a leveling-off
situation continued. In addition, there was a heightening of aspects such as the deceleration of the economiesof emerging nations including China, the impact of factors such as the reduction of the United States'monetary easing and crude oil price trends on exchange rates, and concerns regarding the actualization ofgeopolitical risks on a global level. In the context of these aspects, there was a deepened sense of uncertainty
concerning economic conditions. With regard to personal consumption, with the exception of inbound demand,the situation was lacking vigor throughout the period.
Under these economic conditions, the group’s results in each business segment were as follows.
Precious metal business
Volume of collection in the precious metals recycling business was as follows. In the electronics sector, thecontraction of the domestic market continues, but by expanding market share in the E-scrap business and theprecision cleaning businesses, the group increased the volume of collection of gold from corresponding figures
for the previous fiscal year. In the dental sector, with the amount of precious metals used for dental materials
declining, the volume of collection of gold and palladium decreased from the previous fiscal year. In thejewelry sector, increasing transactions with customers in jewelry purchasing business led to a higher
year-on-year volume of collection of gold and platinum. In the automotive catalyst sector, due to a continuing
trend toward a decreasing number of domestic scrapped vehicles, the year-on-year volume of collection of
palladium and platinum decreased.
The average sales price of gold was higher than the corresponding figures for the previous fiscal year., andthe prices of silver, palladium, and platinum were lower than the corresponding figures for the previous fiscal
year.
In the gold and silver refining business in North America, amidst stagnant precious metals prices and aslowdown in global mining activities, both processing volume and unit price continued to decline. Under suchcircumstances, while endeavoring toward company-wide cost reductions, Asahi Refining continues tostrengthen its business infrastructure through technical investments to enhance productivity and efficiency,
as well as initiatives to expand sales capabilities.
Environmental preservation business
Reflecting the state of production activity of domestic businesses, a decreasing trend continues for thevolume of industrial waste emissions. Under these circumstances, as the result of putting efforts into newcontract development by leveraging each group company's characteristics and expanding sales channels bycollaboration among group companies while working toward stable plant operations, the performance wassolid for the segment as a whole.
Life & health businessIn the healthcare equipment sector, amidst lacking recovery of personal consumption, the group is focusing
on measures to expand sales including the introduction of new products for women and a full model change ofthe massage chair lineup, on top of cost reduction, and performance was robust in terms of profits. The harshbusiness environment continues for the heater sales sector, but in addition to reducing fixed costs, the groupis working on promotion of replacement purchases by existing customers, launching new products such as
far-infrared heaters, and so on.
As a result of the above, in terms of the performance for this consolidated fiscal year, sales were 118,473
million yen, a year-on-year increase of 7,056 million yen (+6.3 percent). Operating income was 8,705 million
yen, a decrease of 1,774 million yen (-16.9 percent) year-on-year. Ordinary income was 8,510 million yen, a
year-on-year decrease of 2,051 million yen (-19.4 percent). Current profit attributable to owners of parentnet
were 5,031 million yen, a year-on-year decrease of 743 million yen (-12.9 percent). By segment, sales in the
precious metal business were 77,516 million yen, a year-on-year increase of 435 million yen (+0.6 percent). In
the environmental preservation business, sales were 15,735 million yen, an increase of 319 million yen (+2.1
percent) year-on-year. Sales in the life & health business were 25,221 million yen, an increase of 6,301 million
yen (+33.3 percent) year-on-year.
②Outlook
In terms of the Japanese economy from now, a sense of uncertainty continues for future outlooks, andfactors such as the strong yen and falling stock prices from the start of the year can be seen to exert adownward pressure on the attitudes of companies and consumers. In addition, there are also concerns about
the impacts on the industrial supply chains and so forth caused by a series of earthquakes that occurred in
the Kumamoto Prefecture area in April of 2016. Further, uncertainty also continues regarding the recovery of
global resource industries activities, and with some exceptions, precious metal prices, which exert a large
impact on our group's performance, are predicted to fall greatly below the estimates made at the time ofcreating the Seventh Medium-Term Management Plan. As a high risk of downturn continues in this way both
domestically and overseas, we recognize that it is necessary to maintain a careful watch over future outlooks
for the business environment for the group.
In terms of our forecast for performance in the next period, we predict sales revenue of 110,000 million yen,2

operating income of 10,000 million yen, profit before tax of 10,000 million yen, and profit attributable toowners of parent of 6,600 million yen.
Our company has the policy of voluntarily applying International Financial Reporting Standards (IFRS)
from the period of March, 2017, and the above consolidated financial results forecast has been created basedon IFRS.

(2) Consolidated Financial Position and Cash Flows for the Year ended March 31, 2016
As of this fiscal year ended March 31, 2016, total assets amounted to 103,589 million yen, down 1,288
million yen from the previous fiscal year end. This was due mainly to increase of 5,622 million yen in cash
and deposits, decrease of 3,587 million yen in notes and accounts receivable-trade, decrease of 2,601 million
yen in goodwill.
Total liabilities amounted to 52,288 million yen, down 1,631 million yen from the previous fiscal year end.
This was due mainly to increase of 2,714 million yen in notes and accounts payable-trade, decrease of 4,291
million yen in loans payable.
Net assets totaled 51,300 million yen up 342 million yen from the previous fiscal year end.
Net cash provided by operating activities amounted to 14,289 million yen due mainly to 8,106 million yen ofincome before income taxes, 2,044 million yen of depreciation and amortization, decrease in notes andaccounts receivable-trade, increase in notes and accounts payable-trade, and income tax paid.
Net cash used in investing activities amounted to 1,900 million yen due mainly to 1,842 million yen in
payments for purchase of fixed assets.
Net cash used in financial activities amounted to 6,473 million yen due mainly to 4,265 million yen
decrease of loans payable, expenditure of 1,967 million yen for the payment of dividends.
As a result, Cash and cash equivalents as of March 31, 2016, increased 5,723 million yen from March 31,
2015, to 16,564 million yen.

(3) Dividends
Our basic policy is to improve corporate value continuously by maintaining stable profitability andachieving further growth, and to meet shareholders’ expectations by continuous stable dividends. We also
consider it important to fulfill internal reserves for strategic investment to enhance existing business anddevelop new business.
Under this basic policy, the fiscal year’s end dividend will be 30 yen per share, consequently, the annual
dividend per share for the fiscal year ended March 31, 2016 will be totaled 60 yen including the interim
dividend of 30 yen per share.
Further, for the year ending March 31, 2017, we are planning to pay out 30 yen per share for both interim
and year end dividend, making the full year amount 60 yen per share.

(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 metal business aretraded 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 fluctuation inprecious 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 stancethat compliance is important, the Group carefully follows laws, regulations, and social rules. However, in theunlikely event that laws, regulations, and social rules could not be followed, or if they change such thatbusiness 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 and Public
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 for thecollection and transport of industrial waste in every prefecture and ordinance-designated city, for its disposal
in 14 prefectures and 9 ordinance-designated cities and core cities, and for the collection and transport ofspecially-controlled industrial waste in every prefecture and ordinance-designated city, for its disposal in 12
prefectures and 8 ordinance-designated cities and core cities. Obtaining such licenses is predicated on strict
compliance with regulations at the regional level, including each prefectural and municipal ordinance andrule.
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 metalbusiness and environmental preservation business. Demand trends in each sector within these industries areaffected 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 the life & healthbusiness, in turn affecting the Group's operating results and financial condition.
④ Business environment
All three of the Group's business segments, the precious metal 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 metal 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 through sales
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 byauthorities due to underdeveloped business infrastructure in a country or region are inherent risks. If suchsituations 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 acquisition and
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 impairment of
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 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 theGroup'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 protection of
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.

4

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.”, and 21 other subsidiaries. Our main businesses are precious
metal business, environmental preservation business and life & health business. The details are as follows.

(1) Precious metal businessIn the precious metals recycling business, we sell precious/rare metal products such as gold, silver,
platinum, palladium, and indium 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, film manufacturers, etc. also engages in precision cleaning andprecious metal delamination of manufacturing equipment parts from semiconductor/electronic component
makers.
Overseas, Asahi G&S Sdn. Bhd. in the Malaysia/Singapore region, Shanghai Asahi Pretec Co., Ltd. in
China, Asahi Pretec Korea Co., Ltd. in South Korea, and Asahi Pretec Taiwan Co., Ltd. in Taiwan are
engaged in the precious metals recycling business. Additionally, Asahi Pretec Taiwan Co., Ltd. is engaged in
the precious metal recycling and the precision cleaning business and Asahi Shih Her Technologies Co., Ltd.
collects scraps containing precious metals in Taiwan. Furthermore, Asahi Refining USA Inc. and Asahi
Refining Canada Ltd. carry out the refining and processing of gold, silver, and other 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, photo labs, printing presses,
hospitals, schools, and research institutes. Additionally, a group of companies with Japan Waste Corporation
as their parent firm is engaged in the environmental preservation business as follows. Nihon Chemitech Co.,
Ltd. and JW Logistics, Co., Ltd. mainly perform the collection, transport, and intermediate treatment ofindustrial waste generated by factories. Iyotec Co., Ltd. engages in business such as dispatch of personnel tomanufacturers and collaborates on the treatment of waste from industrial sites. Taiyo Chemical Co., Ltd.
processes medical-related waste and industrial effluent from companies in the IT, electronics, andpetrochemical 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 brickprocessing of smelting furnaces for glass manufacturing. It removes firebricks from smelting furnaces andperforms materials recycling and hazardous materials handling. JW Glass Recycling Co., Ltd. collects sheet
glass and glass bottles, separates them for crushing, and recycles them into high-quality glass cullet, which it
sells. Ecomax Co., Ltd. performs detoxification (concrete solidification) treatment of combustion residue,
sludge, soot, and dust produced by incineration facilities. Kyodo Chemical Co., Ltd. carries out collection,transport, and intermediate treatment of industrial waste and engages in the photographic materials
business.

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

6Precious Metal Business

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

Asahi Pretec Corp.

Japan Waste Corporation①

Overs ea s Ba s es

Overs ea s Ba s es

（UK）

（Malaysia）
Asahi G&S
Sdn. Bhd.

Asahi Refining
運転によるHoldings UK
Limited（USA）
Asahi Refining
USA Inc.

②

Domes ti c Ba s es

Nihon ChemitechCo., Ltd.

JW Logistics,
Co., Ltd.
（China）
Shanghai Asahi
Pretec Co., Ltd.

Taiyo ChemicalCo., Ltd.

（Canada）
Asahi Refining
Canada Ltd.

Iyotec Co., Ltd.
（Korea）
Asahi Pretec
Korea Co., Ltd.

Fuji Rozai Co., Ltd.

JW Glass RecyclingCo., Ltd.
（Taiwan）

Asahi Pretec
TaiwanCo., Ltd.

Ecomax Co., Ltd.

Asahi Shih Her
Technologies
Co., Ltd.

Kyodo ChemicalCo., Ltd.
Other 2 Companies（Notes）capital relationship①②business relationship

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

7

Domes ti c Ba s es

INTER CENTRAL, INC.

KOEIKOGYO
CO., LTD.

FUJI MEDICALINSTRUMENTS MFG.
CO., LTD.

3. Management Policy(1) Basic management policy
We aim to pursue continuous growth by expanding precious metal business, environmental preservation
business and life & health business, and also contribute to the material-cycle society. In the process above, we
put emphasis on the balance between stable profit and continuous growth. Our basic management policy is toheighten corporate value through these activities and to respond to the expectations of all stakeholders,
including customers, shareholders and employees over a long period of time.

(2) Medium to long-term strategies
Along with promoting a growth strategy aimed at domestic and overseas business expansion with the basic
directions of "accelerated growth via new business areas," "enhancement of the profitability of corebusinesses," and "promotion of global management" in the Seventh Medium-Term Management Plan, ourgroup has been improving efficiency for the group as a whole, and working toward the expansion of earnings.
However, in addition to precious metal prices falling far below our initial estimates, a high risk of downturn
continues for domestic and overseas economic outlooks, and it seems that optimistic views regarding future
trends will continue to be difficult. Based on such changes in the management environment, our group willfurther strengthen its efforts toward the improvement of earnings, but we have revised the performance goals
for the final fiscal year as indicated below.
As for dividends, We are going to decide dividend amount per share putting emphasis on stable returning
profits to shareholders and talking medium to long-term dividend payout ratio into consideration.
Net sales¥ 120 billion
Operating income¥ 11.5 billion
Statements regarding future performance targets in this document are based on information held by ourgroup at this time and on certain assumptions judged reasonable. Due to various factors, actual performance
may differ from what is found in this document.

(3) Challenge to be addressed
Precious metal business segment: As it is the Group's core business, the competitiveness of each Japanese
domestic business shall be enhanced. Along with working to expand the business base in North America, weshall work on expansion of new fields in Asian markets. Along with raising awareness of the “Asahi Refining”
brand, we shall expand processing volumes of recycling raw materials in the global market.
Environmental preservation business segment: As it is a stable growth business of the Group, profitability
shall be emphasized, and active capital expenditure shall be performed. M&A of companies that cancontribute to growth will continue.
Life and health business segment: Through new business development, the opening of new sales channels,
and the building of a unique business model, it shall be set on the path of business growth as the Group's
third business pillar.

(4) The state of internal control system① The state of fundamental opinion and policy about corporate governance
The relevant matter is stated at corporate governance information.
② Attempt to enhance internal control system through this fiscal year
We are continuously acting to strengthen internal control system, checking and evaluating the usages of
the rule for internal control by in-house organization “Internal controls promotion committee”.

4. Basic Concept Regarding Selection of Accounting Standards
We are planning to apply International Financial Reporting Standards (IFRS) with the objectives ofenhancing our management base for global business development and enabling easier international
comparison of financial information in capital markets from the first quarter of fiscal year ending March 31,
2017.

8

5. 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
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Net defined benefit asset
Other
Allowance for doubt for accounts
Investment and other assets
Total noncurrent assets
Total assets

As of March 31,
2015
Millions of yen

As of March 31,
2016
Millions of yen

As of March 31,
2016
Thousands of
U.S. dollars

11,04615,146
4,855
9,141
1,633
854
5,919
(40)
48,556

16,668
11,558
5,606
8,365
1,272
937
7,192
(31)
51,570147,931102,577
49,757
74,238
11,294
8,323
63,832(281)
457,671

24,360(12,062)
12,29819,917(14,903)
5,013
14,56838
3,529(3,113)415
32,334

23,467(12,065)
11,401
19,498(14,993)
4,504
14,190256
3,449(3,011)438
30,791

208,268(107,080)
101,188
173,045(133,065)
39,980125,937
2,275
30,612(26,723)
3,889
273,269

21,737906
22,643

19,136969
20,105

169,828
8,603
178,432

168
368
154
676
(24)
1,343
56,321
104,877

155
322
－
664
(21)
1,121
52,019103,589

1,383
2,860
－
5,896
(187)
9,952
461,652
919,324

U.S. dollar amounts represent translations using the approximate exchange rate on March 31, 2016 of
Yen112.68=US$1, and are included solely for the convenience of readers.

9LIABILITIESCurrent liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Accounts payable-other
Income taxes payable
Provision for bonuses
Provision for directors’ bonuses
Provision for repairs
Provision for product warranties
Provision for sales rebates
Provision for sales returns
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Deferred tax liabilities
Provision for management board incentive plan trust
Provision for stocks payment
Net defined benefit liability
Other
Total noncurrent liabilities
Total liabilities
NET ASSETS
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests
Total net assets
TOTAL LIABILITIES AND NET ASSETS

As of March 31,
2015
Millions of yen

As of March 31,
2016
Millions of yen

As of March 31,
2016
Thousands of
U.S. dollars

6,161
26,171
270
3,473
2,111
747
36
106
85
371
13
6,053
45,603

8,875
1,845
5,270
1,891
2,012
827
31
107
82
468
17
7,012
28,44278,77016,376
46,77016,786
17,861
7,344
276
952
730
4,160
155
62,234
252,415

6,550
1,567
－
－
126
72
8,316
53,91921,584
1,937
31
87
142
62
23,84652,288

191,557
17,197
281
781
1,265
550
211,631464,046

4,480
6,038
44,459(5,159)49,8194,480
6,112
47,524(5,371)
52,74739,76654,250421,766(47,667)
468,116

33
313
338
685
77
375
50,958104,877

29(111)(1,802)(1,884)－438
51,300103,589261(991)(15,998)(16,728)－3,890
455,278
919,324

U.S. dollar amounts represent translations using the approximate exchange rate on March 31, 2016 of
Yen112.68=US$1, and are included solely for the convenience of readers.

10(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income for the fiscal year ended March 31, 2016 and 2015

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
Income taxes-current
Income taxes-deferred
Total income taxes
ProfitProfit attributable to non-controlling
Profit attributable to owners of parent

The fiscal year
ended March 31,
2015
Millions of yen

The fiscal year
ended March 31,
2016
Millions of yen

The fiscal year
ended March 31,
2016
Thousands of
U.S. dollars

111,417
88,34023,076
12,595
10,480183
102
10,561
19
863
9,717
3,916
(40)
3,875
5,842
67
5,774

118,473
92,71925,753
17,048
8,705
89
284
8,510
109
512
8,106
3,153
(179)
2,974
5,132
100
5,031

1,051,413
822,857
228,555
151,298
77,258790
2,521
75,527970
4,550
71,94727,991(1,591)
26,40045,547890
44,657

Consolidated Statements of Comprehensive Income for the fiscal year ended March 31, 2016 and 2015
The fiscal year
ended March 31,
2015
Millions of yen

The fiscal year
ended March 31,
2016
Millions of yen

The fiscal year
ended March 31,
2016
Thousands of
U.S. dollars

ProfitOther 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

5,842

5,132

45,547

18
434
(298)

(4)
(425)
(2,148)(36)(3,773)(19,070)

(23)

－

－

131
5,973

(2,577)
2,554(22,878)
22,668Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests

5,900
72

2,461
92

21,847
821

U.S. dollar amounts represent translations using the approximate exchange rate on March 31, 2016 of
Yen112.68=US$1, and are included solely for the convenience of readers.

11(3) Consolidated Statements of Changes in Net Assets
For the year ended March 31, 2015
(Millions of yen)
Shareholders’ equity
Capital stock Capital surplus
Balance at April 1, 2014
Changes of items during
the period
Dividends from surplus
Profit attributable toowners of parent
Purchase of treasury stock
Disposal of treasury stock
Net changes of items otherthan shareholders’ equity
Total Changes of items
during the period
Balance at March 31, 2015

4,480

Retainedearnings

6,038

Treasury stock

Total
shareholders’equity(5,379)45,78840,648(1,964)(1,964)

5,774

5,774
(0)

(0)

221

221

－

－

3,810

220

4,030

4,480

6,038

44,459(5,159)49,819(Millions of yen)
Accumulated other comprehensive income

Balance at April 1, 2014
Changes of items during
the period
Dividends from surplus
Profit attributable toowners of parent
Purchase of treasury stock
Disposal of treasury stock
Net changes of items otherthan shareholders’ equity
Total Changes of items
during the period
Balance at March 31, 2015

Valuationdifference on
available-forsale
securities

Deferred
gains orlosses onhedges

Total
Subscription Non-contForeign
Total netaccumulated rights torolling
currency
othersharesinterests assets
translation comprehensive
adjustment
income

15

(121)

665

559

77

66

46,491(1,964)
5,774
(0)
221
17

434

(326)

125

－

309

435

17

434

(326)

125

－

309

4,466

33

313

338

685

77

375

50,95812

For the year ended March 31, 2016
(Millions of yen)
Shareholders’ equity
Capital stock Capital surplus
Balance at April 1, 2015
Changes of items during
the period
Dividends from surplus
Profit attributable toowners of parent
Purchase of treasury stock
Disposal of treasury stock
Net changes of items otherthan shareholders’ equity
Total Changes of items
during the period
Balance at March 31, 2016

4,480

Retainedearnings

6,038

Treasury stock

Total
shareholders’equity(5,159)49,81944,459(1,966)(1,966)

5,031

5,031

74

(338)

(338)

127

201

－

74

3,065

(211)

2,927

4,480

6,112

47,524(5,371)

52,747(Millions of yen)
Accumulated other comprehensive income

Balance at April 1, 2015
Changes of items during
the period
Dividends from surplus
Profit attributable toowners of parent
Purchase of treasury stock
Disposal of treasury stock
Net changes of items otherthan shareholders’ equity
Total Changes of items
during the period
Balance at March 31, 2016

Valuationdifference on
available-forsale
securities

Deferred
gains orlosses onhedges

Total
Subscription
Foreignaccumulated rights to Non-cont Total net
currency
rolling
assetsothersharestranslation comprehensive
interests
adjustment
income

33

313

338

685

77

375

50,958(1,966)
5,031
(338)
201
(3)

(425)

(2,141)(2,570)(77)

62(2,585)

(3)

(425)

(2,141)(2,570)

(77)

62

342

29

(111)

(1,802)(1,884)－438

51,30013

(4) Consolidated Statements of Cash Flows
For the year ended March 31, 2016 and 2015
The fiscal
year ended
March 31,
2015
Millions of yen

The fiscal
year ended
March 31,
2016
Millions of yen

9,717
1,785
57
649
2
(39)
54
59
943
903
(646)
767
(342)
13,91144(54)(5,922)
1,439
9,419

8,106
2,044
483
1,563
17
(39)
118
10
3,364
357
2,748
(1,360)1,821
19,23642(122)(6,505)
1,637
14,289Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Impairment loss
Amortization of goodwill
Increase (decrease) in net defined benefit liability
Interest and dividends income
Interest expenses
Loss (gain) on sales and retirement of noncurrent assets
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accounts payable-other
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Proceeds from collection of guarantee deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of stocks of subsidiaries and affiliates

(109)
82
130
(1,345)
127(210)(28,775)
116
15
335(29,633)

Proceeds from sales of shares of subsidiaries and affiliates
Proceeds from liquidation of subsidiaries and associates

Other, net
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Repayments of finance lease obligations
Purchase of treasury stock
Proceeds from sales of treasury stock
Repayments to non-controlling interests
Proceeds from exercise of stock options
Cash dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

Thousands of
U.S. dollars

－

－

92
88
(1,502)
129
(339)

825
789
(13,338)
1,148(3,012)

－
－

－
－

－

－

(3,282)(16,869)

25,676－(2,492)
(45)
(0)
270

(24,300)
20,304
(270)
(40)
(338)

(215,655)
180,197(2,396)(356)(3,006)

－

－

－
－

(29)
167
(1,967)(6,473)(191)
5,723
10,841
16,564(263)
1,491(17,462)(57,451)(1,696)50,797
96,212147,009

U.S. dollar amounts represent translations using the approximate exchange rate on March 31, 2016 of
Yen112.68=US$1, and are included solely for the convenience of readers.

14

71,947
18,1474,290
13,872
152
(347)
1,051
93
29,862
3,175
24,393(12,078)
16,165
170,722380(1,083)(57,734)
14,528
126,813(369)(1,900)(1,965)21,442
143
1,371
9,470
10,841

Effect of exchange rate change on cash and cash equivalents

The fiscal
year ended
March 31, 2016

(5) Notes on Consolidated Financial Statements[Notes on Assumptions for Going Concern]
Not applicable[Basis of Presenting Consolidated Financial Statements]
1. Scope of consolidation(1)Number of consolidated subsidiaries: 24
Major consolidated subsidiaries
Asahi Pretec Corp.
Japan Waste Corporation
Nihon Chemitech Co., Ltd.
JW Logistics, Co., Ltd.
Taiyo Chemical Co., Ltd.
Iyotec Co., Ltd.
Fuji Rozai Co., Ltd.
JW Glass Recycling Co., Ltd.
Ecomax Co., Ltd.
Kyodo Chemical Co., Ltd.
INTER CENTRAL, INC.
KOEIKOGYO CO., LTD.
FUJI MEDICAL INSTRUMENTS MFG. CO., LTD.
Asahi G&S Sdn. Bhd.
Shanghai Asahi Pretec Co., Ltd.
Asahi Pretec Korea Co., Ltd.
Asahi Pretec Taiwan Co., Ltd.
Asahi Shih Her Technologies Co., Ltd.
Asahi Americas Holdings, Inc.
Asahi Refining Holdings UK Limited
Asahi Refining USA Inc.
Asahi Refining Canada Ltd.
and 2 other companies(2) Major unconsolidated subsidiaries
None
2. Equity method affiliate
None
3. Fiscal year of consolidated subsidiaries
Among consolidated subsidiaries, the fiscal year end of Asahi G&S Sdn. Bhd., Shanghai Asahi Pretec
Co., Ltd., Asahi Pretec Korea Co., Ltd., Asahi Pretec Taiwan Co.,Ltd and Asahi Shih Her Technologies
Co.,Ltd. is December 31 of each year. For the preparation of consolidated financial statements, thecompany uses financial statements as of December 31 and makes adjustments as necessary forconsolidation in relation to significant transactions during their year-end date and the consolidated
year-end date.
4. Accounting policies(1) Valuation standards and methods for major assetsa) Securities
Other securities
1): Other securities for which market quotations are available are stated at fair value prevailingat the balance sheet date with unrealized gains and losses, directly included in net assets. The costof securities sold is determined by the moving-average method.
2): Other securities for which market quotations are not available are valued at cost mainly
determined by the moving-average method.
b) Derivative
Market price methodc) Inventories
Merchandise and finished goods, work in process, raw materials and supplies
Stated at cost. Cost is determined mainly by the moving-average method (the method of
write-downs based on the decrease in profitability is applied in order to calculate the inventory
value on the balance sheet).
Note: A part of merchandise and finished goods is determined by individual cost method based on
the actual cost method.
(2) Depreciation and amortization for major assetsa) Property, plant and equipments other than leased assets
The company and domestic consolidated subsidiaries: straight line method

15

Foreign consolidated subsidiaries: straight-line method based on accounting standards of local
country.
Useful life of principle assets is as follows:
Buildings and structures
2 to 50 years
Machinery, equipment and vehicles
2 to 17 yearsb) Intangible assets other than leased assets
The company and domestic consolidated subsidiaries: straight line method
Foreign consolidated subsidiaries: straight-line method based on accounting standards of local
country.
Software for internal use is amortized under the straight-line method over the expected useful
lives.
c) Leased assets
Leased assets related to financial leases that do not transfer ownership rights to the lessees areamortized under the straight-line method based on the lease term as the useful life and residual
value of zero.
(3) Significant allowancesa) Allowances for doubtful accountTo prepare for uncollectible credits and loans, general allowance of the company and domestic
consolidated subsidiaries is recorded based on the actual bad debt ratio, and specific allowance isrecorded based on the amount deemed to the uncollectible considering the collectibility.
As for foreign consolidated subsidiaries, specific credits are based on estimated uncollectableamount.
b) Provision for bonuses
To allow for the payment of bonuses to employees, the company records the standard for
estimated amounts of bonuses to be paid.
c) Provision for director’s bonuses
To allow for the payment of bonuses to directors, the company records the standard for estimatedamounts of bonuses to be paid.
d) Provision for repairs
To allow our payment of periodic maintenance of production equipments, the company records
the amount of estimated cost to be paid during this fiscal year.
e) Provision for product warranties
To allow for cost of after-sales service, the company records the actual cost of the past to be paid.
f) Provision for sales rebates
To allow for sales rebates, the company records the cost of this fiscal year’s portion of theestimated sales rebate.
g) Provision for sales returns
To allow for sales returns, the company records the estimated sales returns losses at the year end of this fiscal year.
h) Provision for management board incentive plan trust
To allow for management board incentive plan trust to directors, the company records based on
the amount of estimated stock award debt at the year - end of this fiscal year.
i) Provision for stocks payment
To allow for stocks payment to Group employees, the company records based on the amount of
estimated stock award debt at the year - end of this fiscal year.

(4) Retirement benefitsa) Method of attributing expected benefit to periods
When calculating retirement benefit obligations, benefit formula is used for attributing expected
retirement benefits to periods through March 31, 2016.
b) Amortization of actual gain or loss, prior service cost and others
Prior service costs are expensed in a lump sum in the fiscal year in which they arise.
Actuarial differences are expensed in a lump sum in the fiscal year in which they arise.
c) Simplified method for small companies
Some domestic consolidated subsidiaries use the simplified method to calculate defined benefit
liabilities and related costs.
(5) Foreign currency transactions
All monetary assets and liabilities denominated in foreign currencies are translated into Japanese yenat the exchange rates prevailing at the balance sheet date. Resulting gains and losses are included in
net profit or loss for the period. All assets and liabilities of foreign subsidiaries and affiliates aretranslated into Japanese yen at the exchange rates prevailing at the balance sheet date. Revenues and16expenses for the year are translated into Japanese yen at the average exchange rate during the year andtranslation adjustments are included in “Foreign currency translation adjustments of “Net assets.”(6) Main hedge accounting methodsa) Hedge accounting methods
The company accounts for hedging activities under deferral hedge accounting. Furiate-shori(accounting method in which the current and forward rate difference is allocated by period length
for the calculation at the accounting period) is applied to forward foreign exchange contracts which
conform to the requirements of such hedge accounting.
b) Hedging instruments and targets
1. Hedging instruments
Derivative transaction
Hedged targets
Precious metal products
2. Hedging instruments
Exchange contract
Hedged targets
Monetary assets and liabilities denominated in foreign currencies
3. Hedging instruments
Currency swap
Interest rate swap
Hedged targets
Foreign currency long-term loanc) Hedge policy
To reduce the precious metal market price risk and to improve income and expenditure balance,
the company hedges price fluctuation risk and exchange rate risk based on internal rules.
(7) Amortization of goodwill
By judging respective case, goodwill is amortized under the straight-line method within a period of 20
years.
(8) Cash and cash equivalents in the consolidated cash flow statements
Cash and cash equivalents are composed of cash on hand, bank deposits able to be withdrawn on
demand and short-term highly liquid investments with a maturity of three months or less at the time ofpurchase and which bear lower risks from fluctuations in value.
(9) Accounting method for consumption taxes
Consumption taxes are accounted for using the net method of reporting.

17

[Changes in accounting policies](Application of “Accounting Standard for Business Combinations,” etc.)
The Company has applied the “Accounting Standard for Business Combinations” (ASBJ Statement No.
21, September 13, 2013), “ Accounting Standard for Consolidated Financial Statements ” (ASBJ
Statement No. 22, September 13, 2013), “ Accounting Standard for Business Divestitures ” (ASBJ
Statement No. 7, September 13, 2013), etc. effective from the current fiscal year. As a result, the method ofrecording the amount of difference caused by changes in the Company’s ownership interests in subsidiaries
in the case of subsidiaries under ongoing control of the Company was changed to one in which it isrecorded as capital surplus, and the method of recording acquisition-related costs was changed to one inwhich they are recognized as expenses for the fiscal year in which they are incurred. Furthermore, forbusiness combinations carried out on or after the beginning of the current fiscal year, the accounting
method was changed to one in which the current fiscal year acquisition cost allocation resulting from thefinalization of the tentative accounting treatment is reflected in the consolidated financial statements forthe current period in which the business combination occurs.
Additionally the presentation method of net income was amended and the reference to “Minority
interests” was changed to “Non-controlling interests”. To reflect these changes in presentation, theconsolidated financial statements in the previous fiscal year have been reclassified.
Application of the Accounting Standard for Business Combinations, etc. is in line with the transitional
measures provided in Paragraph 58-2 (4) of the Accounting Standard for Business Combinations,Paragraph 44-5 (4) of the Accounting Standard for Consolidated Financial Statements and Paragraph 57-4
(4) of the Accounting Standard for Business Divestitures. Accordingly, these changes are effective fromthe beginning of the current fiscal year.
Those changes had no impact on the consolidated financial statements.
(Change in the depreciation method of property, plant and equipment)
The Company and its domestic consolidated subsidiaries had formerly depreciated property, plant andequipment other than leased assets using the declining-balance method (with the exception of buildings
acquired on or after April 1, 1998, which are depreciated using the straight-line method). However,starting from the fiscal year ending March 31, 2016, the Company and its domestic consolidated
subsidiaries have changed the depreciation method to the straight-line method.
This change in the depreciation method is due to the determination that depreciation using thestraight-line method would better reflect the actual condition of usage of property, plant and equipment ina nod to the result of surveys on the actual status of the usage of property, plant and equipment and futurebusiness deployment which is planned in the “Seventh Medium-Term Management Plan”.
As a result, operating income, ordinary income and income before income taxes increased by 211 million
yen, respectively, as compared with the figures calculated using the previous method.

18

[Segment Information]
1. Overview of reporting segments
The Company's reporting segments are those Company 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, theoperating companies engage in the precious and rare metals recycling business and the refining andprocessing business, industrial waste management and other environmental preservation business, andlife & health business manufacturing and selling health equipment and other.
Therefore, the Company is composed of product and service segments based on business sectors. The
three reporting segments are the precious metals business, the environmental preservation business, andthe life & health business.
The precious metals business engages mainly in recycling, selling, refining and processing precious andrare metals such as gold, silver, palladium, platinum, and indium. The main work of the environmental
preservation business is the collection, transport and intermediate processing of industrial waste. In thelife & health business, the main work is the manufacture and sale of massagers, hearing aids, and other
health equipment, the manufacture and sale of electric heaters, the design and installation of radiantheating and air conditioning systems, and the design and installation of disaster prevention equipment.
The segment which was previously stated as “Precious metal recycling business” has been changed to“Precious metal business” from April 1, 2015.
This change in the segment name does not affect the segment information.
2. Accounting method to calculate segment information on sales and income (loss), identifiable assets, andother items
The accounting method to calculate segment information is same as the method noted in [Basis of
Presenting Consolidated Financial Statements].
(Change in the depreciation method of property, plant and equipment)
The Company and its domestic consolidated subsidiaries had formerly depreciated property, plant andequipment other than leased assets using the declining-balance method (with the exception of buildings
acquired on or after April 1, 1998, which are depreciated using the straight-line method). However,starting from the fiscal year ending March 31, 2016, the Company and its domestic consolidated
subsidiaries have changed the depreciation method to the straight-line method.
Compared to the past method, it increases operating income by precious metals business segment for thecurrent term by 91 million yen, environmental preservation business segment for the current term by 87
million yen and life & health business segment for the current term by 32 million yen.

19

3. Information on sales and income (loss), identifiable assets, and other items by reporting segment
For the fiscal year ended March 31, 2015(From April 1, 2014 to March 31, 2015)(Millions of Yen)
Preciousmetalbusiness

Environmental
preservation businessLife & healthbusiness

Total

Net sales
1) Customers

77,08015,41518,920111,417

－

－

－

－

77,08015,41518,920111,417

Operating income by business segment

7,825

2,134

520

10,480Identifiable asset by business segment

66,25018,977

19,649104,877

Depreciation and amortization

942

680

162

1,785

Amortization of goodwill

15

293

339

649

Increase of property, plant andequipment and intangible assets

595

677

248

1,521

2) Intersegment
Total

Other items(Note) 1. Total segment income matches operating income recorded on the consolidated statements of income.
2. Increase in depreciation, property and equipment, and intangible assets includes long-term prepaid
expenses and amortization of that related to these expenses.
For the fiscal year ended March 31, 2016(From April 1, 2015 to March 31, 2016)(Millions of Yen)
Preciousmetalbusiness

Environmental
preservation businessLife & healthbusiness

Total

Net sales
1) Customers
2) Intersegment

77,516

15,73525,221

118,473

－

－

－

－

77,516

15,73525,221

118,473

Operating income by business segment

5,557

2,363

784

8,705

Identifiable asset by business segment

63,875

19,938

19,774

103,589

Total

Other items
Depreciation and amortization

1,304

602

137

2,044

Amortization of goodwill

846

293

422

1,563

Increase in property, plant andequipment and intangible assets

915

552

198

1,666

(Note) 1. Total segment income matches operating income recorded on the consolidated statements of income.
2. Increase in depreciation, property and equipment, and intangible assets includes long-term prepaid
expenses and amortization of that related to these expenses.

20[Per Share Information]

Year ended March 31, 2015

Year ended March 31,2016

Net assets per share (Yen)

1,542.82

1,560.21

Net income per share (Yen)

176.89153.54(Note) 1. Not given as the company has no potential stocks with dilution effect.
2. The following shows the basis of calculating net income per share
Year ended March 31, 2015
Profit attributable to owners of parent(Millions of yen)
Monetary value not related to common
stockholders (Millions of yen)

Year ended March 31,2016

5,774

5,031

－

－

5,774

5,031

32,64632,773

Profit attributable to owners of parent
related to common stock(Millions of yen)
Number of weighted average common shares
outstanding during the fiscal year
(Thousands of shares)
Overview of potential stock not included in
calculation of diluted net income

2010 Stock Option（common
stock 202,000 shares）

per share because the stock have no dilution
effect[Significant Subsequent Events]
Not applicable21－

6. Others(1)Amounts of Production, Orders Received, Sales（Amount: millions of yen）

①Production
Year ended
March 31,2015
AmountYear ended
March 31,2016

Year-on-Year

AmountYear-on-YearGold

44,55595.4%

45,447102.0%

Silver

3,995

70.6%

3,152

78.9%

Palladium

14,196132.1%

10,605

74.7%

Platinum

8,603

122.8%

7,360

85.5%

Indium

9,667

143.8%

5,607

58.0%

Industrial waste treatment

17,706103.6%

18,004101.7%

Other

18,919830.3%

30,815162.9%

Total

117,644122.3%

120,994102.8%(Note) Amount is provided on the basis of their sales prices.
②Orders received
As we do production according to the amount of the collection, there is no applicable information in thePrecious metals business and Environmental preservation business.
We do production along with the production plan based mainly on the sales plan in the Life & healthbusiness.
(Amount: millions of yen）

③SalesYear ended
March 31,2015
AmountYear ended
March 31,2016

Year-on-Year

AmountYear-on-YearGold

38,867103.7%

38,931

100.2%

Silver

4,941

71.3%

4,318

87.4%

Palladium

17,517139.4%

14,401

82.2%

Platinum

8,701

107.3%

7,615

87.5%

Indium

131

17.0%

11

8.9%

Industrial waste treatment

17,706103.6%

18,004101.7%

Other

23,550208.4%

35,190149.4%

Total

111,417118.2%

118,473

106.3%

22