Consolidated Financial Results for the Third Quarter Ended December 31, 2013
Asahi Holdings, Inc.
February 3,2014
Stock code:

5857

Shares listed:Tokyo Stock Exchange (First Section)

U R L:

http://www.asahiholdings.com

Representative

Mitsuharu Terayama, Chairman, CEO

For further information please contact:

Keitaro Shigemasa, Director(Phone) +81-3-6270-1833

Filing date of Quarterly Report:

February 13, 2014

Scheduled date of start of dividend payment:－Supplementary materials for the quarterly financial results: NoInvestor conference for the quarterly financial results: No(Rounded down to the nearest million yen)
1. Results of the nine months ended December 31, 2013 (From April 1, 2013 to December 31, 2013)(1) Results of operations (cumulative)(Percentage changes relative to previous corresponding period)
Net sales
The nine months ended
December 31, 2013
December 31, 2012
(Note) Comprehensive income

Millions of yen％

Operating income

Ordinary income

Millions of yen

Millions of yen％

70,654 (2.1)
7,463
49.2
72,203 (36.2)
5,000 (39.9)
The nine months ended December 31, 2013
The nine months ended December 31, 2012
Net income per shareThe nine months ended
December 31, 2013
December 31, 2012
(2) Financial Position

Net income％Millions of yen％

7,693 51.2
4,677 63.9
5,087 (36.8)
2,854 (35.7)
5,048 million yen 89.2%
2,667 million yen (48.1%)

Diluted net income per shareYen
143.78
87.99

Yen－－

Shareholders’ equity
ratio
As of
Millions of yen
Millions of yen％
December 31, 2013
59,78945,225
75.4
March 31, 2013
62,26042,012
67.3(Reference) Shareholders’ equity
As of December 31, 2013
45,084 million yen
As of March 31, 2013
41,875 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
－30.00－First quarter
Yen－－

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

Year ending March 31, 2014

92,000％(4.5)

Millions of Yen

9,600％

28.1

Millions of Yen

9,900％

27.0

Millions of Yen ％6,00032.8(Note) Revisions in forecast in the current quarter : YesFor details, please refer to “Notification of Revision of Earnings Forecast” made public on February 3, 2014.

Yen

184.38

*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 December 31, 2013
As of March 31, 2013
36,254,344 shares(ii) Number of treasury shares at the quarter end
3,688,407 shares
As of December 31, 2013
As of March 31, 2013
3,756,439 shares(iii) Averaged number of shares during the period (quarterly cumulative period)
32,529,616 shares
Nine months ended December 31, 2013
Nine months ended December 31, 2012
32,435,410 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’smanagement and certain assumptions judged rational. Accordingly, these might be cases in which actual resultsmaterially differ from forecasts of this report. Please refer to page 2 “1.Qualitative Information (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 ........................................33. 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 nine months ended December 31, 2013....................................... 5Consolidated Statements of Comprehensive Income for the nine months ended December 31, 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 three quarters of the current fiscal year (April 1 through December 31, 2013), as the yen
weakened and share prices rose against the backdrop of the Government's economic policies and monetaryeasing, the Japanese economy showed some signs of recovery, including improved corporate profits andrecovery of consumer spending.
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 same term one
year earlier.
As a result of the above, as consolidated results for the nine-month period, we recorded net sales of 70,654
million yen, down 1,548 million yen (-2.1%) year-on-year; operating income of 7,463 million yen, up 2,462
million yen (+49.2%) year-on-year; ordinary income of 7,693 million yen, up 2,605 million yen (+51.2%)
year-on-year; and net income of 4,677 million yen, up 1,822 million yen (+63.9%) year-on-year.
Looked at by segment, sales in the precious metal recycling business were 58,483 million yen, down 1,858
million yen (-3.1%) year-on-year; and sales in the environmental preservation business were 12,170 million
yen, up 309 million yen (+2.6%) year-on-year.

(2) Consolidated Financial Position
As of December 31, 2013, total assets amounted to 59,789 million yen, down 2,471 million yen from theprevious fiscal year end. This was due mainly to decrease of 3,394 million yen in notes and accounts ofreceivable trade.
Total liabilities amounted to 14,563 million yen, down 5,684 million yen from the previous fiscal year end.
This was due mainly to decrease of 6,010 million yen in loans payable.
Net assets totaled 45,225 million yen up 3,212 million yen from the previous fiscal year end. This was due
mainly to the 4,677 million yen in net income.
As a result, the shareholders’ equity ratio changed to 75.4%, from 67.3% at the end of the previous fiscalyear.

(3) Consolidated Performance Forecasts
Plans were revised based on consolidated results, current trends in precious metal prices, and so on.
Consequently, the consolidated earnings forecast for the whole term was adjusted.
In the precious metal recycling business, collection volumes of precious metals are generally in accordancewith plans.
Revision of consolidated results forecast for the fiscal year ending March 2014
（April 1, 2013 to March 31, 2014）（Millions of Yen, ％）OperatingOrdinary
Net Income Net Income per
Net Sales
IncomeIncomeFY2013
Share FY2013
Previous Forecast (A)(Announced on July 29, 2013）

93,000

9,000

9,100

5,400

165.92

Revised Forecast (B)92,000

9,600

9,900

6,000

184.38Change (B－A）(1,000)

600

800

600

―

Change (%)

(1.1)

6.7

8.8

11.1

―

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

96,368

7,495

7,794

4,518

139.242

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
As ofDecember 31,
2013
Millions of yen

As ofDecember 31,
2013
Thousands of
U.S.dollars

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

7,811
9,144
3,922
8,917
1,087
990
(9)
31,864

74,12386,77337,21884,613
10,314
9,397(92)
302,346

9,281
13,031
2,647
24,9598,962
13,012
2,196
24,17185,037
123,473
20,838229,349

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

2,089
830
2,920
833
27,92459,78919,824
7,883
27,707
7,912
264,968
567,314

As ofMarch 31,2013
Millions of yen
ASSETS
Current assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance 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

LIABILITIESCurrent liabilities
Notes and accounts payable-trade
2,463
2,707
25,694
Short-term loans payable
10,245645
6,125
Current portion of long-term loans payable
1,500
20190
Income taxes payable
349
1,535
14,570
Provision for bonuses
597
290
2,757
Provision for directors’ bonuses－－8
Provision for repairs
113
60
569
Provision for product warranties
2116
154
Other
3,253
2,475
23,490Total current liabilities
18,553
7,751
73,549Noncurrent liabilities－Long-term loans payable
5,070
48,107
Provision for retirement benefits
107
119
1,129
Other
1,587
1,623
15,402
Total noncurrent liabilities
1,694
6,812
64,639Total liabilities
20,24814,563
138,188
NET ASSETS
Shareholders’ equity
Capital stock
4,480
4,480
42,517
Capital surplus
6,087
6,103
57,913Retained earnings
36,69739,423374,074
Treasury stock(5,507)(5,407)(51,311)
Total shareholders’ equity
41,75844,600423,193
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
1918
176
Deferred gains or losses on hedges(41)
13131Foreign currency translation adjustment
139452
4,291
Total accumulated other comprehensive income
116
484
4,599
Subscription rights to shares
7777739
Minority interests
5962
595
42,01245,225429,126
TOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS
62,26059,789567,314
U.S. dollar amounts represent translations using the approximate exchange rate on December 30, 2013 ofYen105.39=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 nine months ended December 31, 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(Minority interests in loss)
Net income

The nine months
ended December 31,
2012
Millions of yen

The nine months
ended December 31,
2013
Millions of yen

The nine months
ended December 31,
2013
Thousands ofU.S.dollars

72,203
63,258
8,945
3,944
5,000
123
37
5,087
6
362
4,731
1,340
537
1,877
2,854
－
2,854

70,654
59,221
11,433
3,969
7,463
266
36
7,693
43
119
7,617
2,774
165
2,940
4,676
(0)
4,677

670,412561,926
108,486
37,66670,8202,526
349
72,997415
1,137
72,27526,326
1,573
27,89844,377(2)
44,378

Consolidated Statements of Comprehensive Income for the nine months ended December 31, 2013
The nine months
ended December 31,2012
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 nine months
ended December 31,
2013
Millions of yen

The nine months
ended December 31,
2013
Thousands ofU.S.dollars

2,854

4,676

44,377(2)(210)27(0)
55
303

(4)
524
2,876(0)13127(186)
2,667

371
5,048

3,524
47,900

2,667
－

5,044
3

47,868
33

U.S. dollar amounts represent translations using the approximate exchange rate on December 30, 2013 ofYen105.39=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 nine months ended December 31, 2012(From April 1, 2012 to December 31, 2012)
1. Information on sales and income (loss) by reporting segment(Millions of Yen)
Precious metal
recycling business

Environmental
preservationbusiness

1) Customers
2) Intersegment60,342－

11,861－

72,203－

Total

60,342

11,861

72,203

3,464

1,535

5,000

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
Not applicable
Ⅱ For the nine months ended December 31, 2013(From April 1, 2013 to December 31, 2013)
1. Information on sales and income (loss) by reporting segment(Millions of Yen)
Precious metal
recycling business

Environmental
preservationbusiness

58,483

12,17070,654－－－58,483

12,17070,654

6,069

1,393

7,463

Total

Net sales
1) Customers
2) Intersegment
Total
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
Not applicable6