Note: This document has been translated from the Japanese original only for reference purposes. In the event of any
discrepancy between this translation and the Japanese original, the original shall prevail. The Company assumes
no responsibility for this translation or for any direct, indirect or consequential damage arising from thistranslation.

Disclosure through the Internet regarding
Notice of the 11th Annual General Meeting of
Shareholders

Structure to ensure the appropriateness of business………………………………………

2

Status of operation of structure to ensure the appropriateness of business…………………

5

Notes to consolidated financial statements…………………………………………………

7

Notes to non-consolidated financial statements……………………………………………

22

The items above are provided to our shareholders by posting our website(https://www.asahiholdings.com/) in accordance with laws and regulations, and Article 14 of
the Articles of Incorporation of Asahi Holdings, Inc.

Asahi Holdings, Inc.

1
Cover

Structure to ensure the appropriateness of business
Decisions on a framework to ensure that the performance of duties by the directors is consistent
with the laws and the Articles of Incorporation and a framework to secure the appropriateness ofthe businesses of the Company are as follows:
1) Framework to ensure that the performance of duties by the directors, corporate
officers and employees of the Company and our subsidiaries is consistent with the laws
and the Articles of Incorporation(a) The Board of Directors will establish “Asahi Way” for the directors and employees inorder for the directors, corporate officers and employees to comply with the laws, Articles
of Incorporation and internal rules and to fulfill their duties.
(b) We will distribute “Asahi Way” to the directors and employees so as to keep theminformed of legal compliance. The internal audit division will make improvements andgive guidance through the business audit.
(c) We will establish the “internal control promotion meeting” consisting of officers andresponsible persons of various divisions as an organization that controls the entire
compliance in order to promote the construction, maintenance and improvement of theinternal control system.
(d) To promote compliance, the actual situation of compliance will be audited.
(e) In order to respond appropriately to any legal violation or other doubtful act under laws
which may be discovered by a director or an employee, we will develop and operate awhistle-blowing system.
(f) We will never have any relationship, including business relationships, with anti-social
forces which threaten the social order and sound corporate activities. In the event of anillegal request, we will take a firm attitude and respond to it organizationally inaccordance with the law and internal rules.
2) Framework for storage and management of information relating to business
operations by the directors and a framework for report to the Company about thematters relating to the performance of duties by the directors and employees of our
subsidiaries(a) We will appropriately control the manner of storing, disposing of and otherwise managing
the records and documents relating to the performance of duties and decision-making of
the directors and will review the relevant rules from time to time when needed.
(b) The directors, Audit and Supervisory Committee Members and Accounting Auditor will
always have access to these information and documents.
(c) We will manage our subsidiaries and they will report important matters to us.
3) Rules and other frameworks for management for risk of loss in the Company and our
subsidiaries(a) We will establish the risk management rules and build a risk management system inaccordance with such rules.
(b) In the event of an unexpected event, we will discuss and make decisions at the
management meeting, etc., and the responsible manager will inform such decisions toeach division and plant. Each division and plant will take prompt actions to prevent
damage from expanding and will arrange a system to minimize the damage.
4) Framework to secure the efficient performance of duties by the directors of the2
Structure to ensure the appropriateness of businessCompany and our subsidiaries(a) The Board of Directors will hold a meeting regularly no less than once every three months
and from time to time when needed in order to determine the management policies andother important matters relating to the business strategies and to supervise the situation ofbusiness operations by the directors.
(b) In order to enhance the functions of the Board of Directors and improve management
efficiency, the Board of Directors will hold an extraordinary meeting from time to time
when needed in order to expeditiously make decisions on basic matters and importantmatters relating to the business operations.
(c) The Board of Directors will draft a mid-term business plan and a budget for each fiscal
year to set the business target and will supervise the progress.
(d) Regarding the business operations according to decisions made by the Board of Directors,
we will establish the responsibility of the directors for performance of duties and theprocedures for performance so as to ensure the efficient performance of duties. Eachprovision will be reviewed from time to time when needed.
5) Framework to secure the appropriateness of business of the corporate groupconsisting of the Company and our subsidiaries(a) We will build a system to manage our subsidiaries and will develop a system to reporttheir business results, business activities and the like to our board of directors on a regularbasis.
(b) A manager of the Company will serve as an officer of our subsidiary and will develop asystem to observe the appropriateness of such subsidiary’s business.
(c) The internal audit division of the Company will conduct the internal audit regularly or
when needed and will develop a system to report the result of audit to the Audit andSupervisory Committee and Directors with authority over operations.
6) Framework to appoint an employee who assists the duties of the Audit andSupervisory Committee of the Company, and the matters relating to the independenceof such employee from the directors (except those who are Audit and Supervisory
Committee Members) and the matters relating to the assurance of effective
instructions given by the Audit and Supervisory Committee to such employee(a) We will assign an employee who assists the duties of the Audit and Supervisory
Committee in the Audit and Supervisory Committee Secretariat.
(b) Appointment and relocation of the Audit and Supervisory Committee Secretariat staff
that assists such committee in performing its duties requires prior consent of suchcommittee.
(c) The Audit and Supervisory Committee shall have the right to direct and order the Audit
and Supervisory Committee Secretariat staff who assists the committee in performing its
duties to perform his/her duties.

3
Structure to ensure the appropriateness of business7) Framework where the directors (except those who are Audit and Supervisory
Committee Members) and employees of the Company and the directors, corporate
officers, employees and auditors of our subsidiaries or parties who receives a reportfrom aforementioned persons report to the Audit and Supervisory Committee of theCompany, and other matters relating to reporting to the Audit and Supervisory
Committee(a) The directors (except those who are Audit and Supervisory Committee Members) andemployees of the Company and the directors, corporate officers, employees and auditorsof our subsidiaries or parties who receive a report from aforementioned persons willpromptly report the important matters relating to, without limitation, the management, theaccounting division and division in charge of compliance and awards and penalties to the
Audit and Supervisory Committee of the Company, in addition to the matters whichconflict with the laws and Articles of Incorporation and the matters which may remarkably
damage the Company and our subsidiaries.
(b) In order to grasp the important decision-making process and the situation of its business
operations, the Audit and Supervisory Committee Members may attend important
meetings in addition to the meeting of the Board of Directors, access important documents
relating to the business operations and request a director or an employee to explain thesituation when needed.
8) Framework to ensure that no person who reported to the Audit and Supervisory
Committee of the Company is treated disadvantageously by reason of the report
We will not treat any officer or employee of the Company and our subsidiaries who reported
to the Audit and Supervisory Committee disadvantageously by reason of such report.
9) Matters relating to the policies for settlement of expenses or debts associated with theprocedures for prepayment or reimbursement of expenses incurred for the
performance of duties by the Audit and Supervisory Committee Members of theCompany (limited to the performance of duties of the Audit and Supervisory
Committee) and the performance of other duties
The Audit and Supervisory Committee Members may request the company to repay the
expenses required for the performance of their duties (limited to the performance of dutiesof the Audit and Supervisory Committee).
10) Other framework to ensure that the Audit and Supervisory Committee of theCompany conducts audits effectively
The Audit and Supervisory Committee, Accounting Auditor and Audit and Supervisory
Committee Secretariat will cooperate with each other in audit tasks and the director andemployees will assist them in conducting audits efficiently.

4
Structure to ensure the appropriateness of businessStatus of operation of structure to ensure the appropriateness of business
As of June 16, 2015, the Company made a transition to the Board with Audit and Supervisory
Committee to promote efforts to ensure transparency and improve the efficiency of corporate
management by reinforcing the supervisory function of the Board of Directors and utilizing
Outside Directors. The Company’s Board of Directors discusses management risks and reviews
the Company’s internal organizations, operations and regulations accordingly to enhance theireffectiveness.
The status of operation of structure to ensure the appropriateness of business operations is asfollows.
1) Status of efforts to enhance the appropriateness and efficiency of business execution(a) The Board of Directors consists of four (4) Directors with executive authority over
operations and four (4) Directors serving as Audit and Supervisory Committee
Members (including three (3) Outside Directors) and has held active discussions.
(b) During the fiscal year under review, the Board of Directors held ten (10) meetings
where the status of business execution was supervised by deliberating proposals andreceiving reports on the status of important business execution.
(c) The Board of Directors entrusts the authority over some important business execution
to Directors to ensure efficient decision making and business execution.
(d) To secure the transparency in decisions on nomination and compensation for Directors
and Group companies, the Nominating Committee and the Compensation Committee,
each of which consists of one Representative Director and two (2) Outside Directors
serving as Audit and Supervisory Committee Members, were established as voluntarycommittees, and have provided advice and suggestions to the Board of Directors.
2) Status of efforts regarding compliance and risk management(a) Continuous efforts to ensure compliance with laws, regulations and the Articles ofIncorporation have been made by providing employees with compliance education
through in-house trainings and meetings and announcing the content of laws and theirrevisions on the internal portal site or with other means.
(b) To counter an act that violates laws, regulations and the Articles of Incorporation, thewhistle-blowing system has been reinforced to monitor such an act, thereby
strengthening legal compliance and risk management.
(c) The internal control promotion meeting engages in identification and control ofinternal risks, and improves the internal organizations, facilities and equipment,
information systems and internal regulations accordingly.
3) Status of execution of duties of the Audit and Supervisory Committee(a) Directors serving as Audit and Supervisory Committee Members join the discussion
and resolution of proposals and receive reports on the status of business execution at
the meetings of the Board of Directors and attend the Group Subsidiaries Management
Meeting and other meetings to enhance the effectiveness of audits.
(b) To ensure the effectiveness of audits by Directors serving as Audit and Supervisory
Committee Members, the Audit and Supervisory Committee Secretariat, which is
independent of orders from Directors with authority over operations, is placed tosupport the Audit and Supervisory Committee Members.

5
Status of operation of structure to ensure the appropriateness of business4) Status of the internal audits system(a) An internal audit division for conducting audits on a Group-wide basis has been inplace for enhancement of the internal audits system.
(b) The internal audit division conducts audits on overall business operations and reports
to the Audit and Supervisory Committee. The division also cooperates with the Audit
and Supervisory Committee Members and the Accounting Auditor to enhance theeffectiveness of audits.

6
Status of operation of structure to ensure the appropriateness of businessNotes to consolidated financial statements(Basis of preparing consolidated financial statements)
1. Standards for preparing the consolidated financial statements
The consolidated financial statements are prepared in accordance with International Financial
Reporting Standards (hereinafter “IFRS”) under the provision of Article 120, Paragraph 1 of theRules of Corporate Accounting. Certain disclosures required by IFRS have been omitted from these
consolidated financial statements under the provision set forth in the second sentence of saidParagraph.
2. Scope of consolidation
Number of consolidated subsidiaries

Major consolidated subsidiaries

3. Equity method affiliate
Equity method affiliates
Major Equity method affiliates

17
Asahi Pretec Corp.
Japan Waste Corporation
JW Chemitech Co., Ltd.
Taiyo Chemical Co., Ltd.
Fuji Rozai Co., Ltd.
JW Glass Recycling Co., Ltd.
Asahi Life & Health Corporation
INTER CENTRAL, INC.
Asahi G&S Sdn. Bhd.
Shanghai Asahi Pretec Co., Ltd.
Asahi Pretec Korea Co., Ltd.
Asahi Pretec Medical Support Co., Ltd.
Asahi Americas Holdings, Inc.
Asahi Refining USA Inc.
Asahi Refining Florida LLC
Asahi Refining Canada Ltd.
and 1 other company

1
FUJI MEDICAL INSTRUMENTS MFG. CO., LTD.

4. Change in scope of consolidation or scope of application of equity method
As Asahi Pretec Medical Support Co., Ltd. was newly established in the current consolidated fiscal
year, it is included in the scope of consolidation. As the Company sold part of shares of FUJI
MEDICAL INSTRUMENTS MFG. CO., LTD., it is excluded from the scope of consolidation andbecame an equity method affiliate. As the Company sold all shares of KOEIKOGYO CO., LTD., it
is excluded from the scope of consolidation. As Iyotec Co., Ltd. and ECOMAX INCORPORATED
were merged into Japan Waste Corporation, they are excluded from the scope of consolidation. As
Pretec Taiwan Co., Ltd. were liquidated, it is excluded from the scope of consolidation.

7
Notes to consolidated financial statements

5. Accounting policies(1) Valuation standards and methods for major assets
1) Financial assets other than derivatives(i) Initial recognition and measurement
The Group recognizes financial assets when it becomes a party to the contract clauses offinancial instruments and classifies the financial assets into financial assets measured at fairvalue through profit or loss or other comprehensive income and financial assets measured atamortized cost.
All financial assets, unless they are classified into those measured at fair value through profit
or loss, are measured at fair value plus transaction costs.
Financial assets are classified as financial assets measured at amortized cost if both of thefollowing conditions are met:
The financial asset is held within a business model for which the objective is to holdfinancial assets in order to collect contractual cash flows; andThe contractual terms of the financial asset give rise on specified dates to cash flows thatare solely payments of principal and interest on the principal amount outstanding.
Financial assets other than those measured at amortized cost are classified as financial assets
measured at fair value.
For financial assets measured at fair value, except equity instruments that are held for trading
and must be measured at fair value through profit or loss, a designation is made of individual
equity instruments as those measured at fair value through profit or loss or those measured atfair value through other comprehensive income, and such designation is applied consistently.
(ii) Subsequent measurement
After initial recognition, financial assets are measured based on the classification as follows.
a) Financial assets measured at amortized cost
Financial assets measured at amortized cost are measured using the amortized cost basedon the effective interest method.
b) Financial assets measured at fair value
Changes in the fair value of financial assets measured at fair value are recognized in profit
or loss. However, for equity instruments designated as those measured at fair value throughother comprehensive income, changes in the fair value are recognized in othercomprehensive income. Said amounts recognized in other comprehensive income are notsubsequently reclassified into profit or loss. In cases where such financial assets are
derecognized or their fair value declines significantly, the other comprehensive income
previously recognized is directly transferred to retained earnings. Dividends relating tosuch financial assets are recognized as part of finance income and in profit or loss for the
fiscal year under review.
(iii) Impairment of financial assets
The Group recognizes impairment of financial assets based on whether the credit risk on thefinancial asset or financial asset group measured at amortized cost at each end of the reporting
periods has increased significantly since initial recognition. Specifically, if the credit risk has
not increased significantly since initial recognition, a loss allowance is recognized based on
12-month expected credit losses. On the other hand, if the credit risk has increased
significantly since initial recognition, a loss allowance is recognized based on expected credit

8Notes to consolidated financial statements

losses through the remaining life of the financial asset. Whether the credit risk has increased
significantly is determined based on changes in the risk of default. Whether there are changes
in the risk of default is determined by taking into account any significant changes in theexternal credit ratings of the financial asset, unfavorable changes in the status of business
operations or financial position, any events of overdue payments and other information. For
trade receivables, however, lifetime expected credit losses are recognized from when the
instruments are first recognized.
Expected credit losses are measured based on the discounted present value of differences
between contractual amounts to be received and amounts expected to be received.
(iv) Derecognition of financial assets
The Group derecognizes a financial asset when the contractual rights to the cash flows fromthe financial asset expire or when the Group transfers substantially all the risks and rewardsof ownership of the asset to another entity. If the Group retains control over the transferredasset, the Group recognizes the asset and related liability to the extent of its continuing
involvement.
2) Derivatives
The Group utilizes derivatives, including foreign exchange forward contracts, interest rate
swaps and commodity forward contracts, to hedge, respectively, foreign exchange, interest
rate and commodity price risks. These derivative instruments are initially measured at fairvalue when the contract is entered into and are subsequently remeasured at fair value.
3) Inventories
Inventories are measured at the lower of cost and net realizable value. The net realizable valueof inventories is the estimated selling price in the ordinary course of business less theestimated costs of completion and the estimated costs necessary to make the sale. The cost of
inventories is determined mainly by the moving-average method and includes the cost ofpurchase, cost of conversion and all other costs incurred in bringing the inventories to theirpresent location and condition.
(2) Depreciation and amortization for major assets
1) Property, plant and equipment: Assets other than land and construction inprogress are depreciated using the straight-line
method over their estimated useful lives asfollows.
Buildings and structures: 2–50 years
Machinery, equipment and vehicles: 2–17
years
Estimated useful lives, residual values anddepreciation methods are reviewed at each fiscal
year-end, and any changes are applied
prospectively as changes in accounting
estimates.

9
Notes to consolidated financial statements2) Intangible assets

3) Leases: Intangible assets, except those for which theuseful life is not determined, are amortizedusing the straight-line method over theirestimated useful lives as follows.
Software: 5 years
Estimated useful lives, residual values andamortization methods are reviewed at eachfiscal year-end, and any changes are applied
prospectively as changes in accounting
estimates.
: For lease transactions, when the ownership of
the underlying asset is transferred to the Groupprior to the termination of the lease period, orwhen the exercise of a purchase option isreflected in the acquisition price of the right-ofuse asset, the right-of-use asset is depreciatedusing the straight-line method based on its
useful life. In other cases, right-of-use assets are
depreciated using the straight-line method basedon either the useful life or at the termination of
the lease period, whichever is shorter. Lease
payments are apportioned between finance costs
and repayment of lease obligations based on theinterest method, and financial costs arerecognized in the consolidated statement ofincome. Short-term leases with a lease term of
12 months or less and leases of low-value
underlying assets are recognized as expenses oneither a straight-line basis or another systematic
basis over the lease term for the total lease
payments.

(3) Recognition criteria for significant provisions
Provisions are recognized when the Group has present legal or constructive obligations as a resultof past events and it is probable that outflows of resources embodying economic benefits will be
required to settle the obligations and reliable estimates can be made of the amount of theobligations. When the effect of the time value of money is material, the amount of a provision ismeasured by discounting the estimated future cash flows at the discount rate, which is a pretax
rate that reflects the time value of money and the risks specific to the liability. The unwinding of
the discount due to the passage of time is recognized as finance cost.

10
Notes to consolidated financial statements

(4) Recognition criteria for revenue
The Group recognizes revenue based on the following five-step model.
Step 1: Identify the contract with a customer
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognize revenue when the entity satisfies a performance obligation(5) Other important items for preparing consolidated financial statements
1) Hedge accounting:
At the inception of a hedge, the Group formally provides a hedge designation anddocumentation relating to the hedging relationship to which hedge accounting will be applied,
as well as the risk management objective and strategy in carrying out the hedge. Said
documentation includes specific hedging instruments, hedged items or transactions, the natureof hedged risks and the method for assessing the effectiveness of a hedging relationship. These
hedges are assessed on an ongoing basis to determine whether they were actually effective for
all financial reporting periods when they were designated as hedges. Specifically, a hedge isjudged as effective if all of the following requirements are fulfilled.
- There is an economic relationship that provides an offset between the hedged item andthe hedging instrument;- The effect of credit risk does not dominate the value changes that result from that
economic relationship; and- The hedge ratio of the hedging relationship is the same as that resulting from thequantity of hedged items and the quantity of hedging instruments that the Company
actually uses.
The Company uses the following hedge accounting method if the requirements for hedge
accounting are met.
Cash flow hedges
The effective portion of gains or losses on hedging instruments is recognized as othercomprehensive income, while the ineffective portion is recognized immediately in profit orloss in the consolidated statement of income.
Amounts relating to hedging instruments recognized as other comprehensive income arereclassified to profit or loss when hedged transactions affect profit or loss.
If a hedging relationship ceases to meet the hedge effectiveness requirement relating to thehedge ratio, but the risk management objective for that designated hedging relationshipremains the same, the Group adjusts the hedge ratio of the hedging relationship so that it meetsthe qualifying criteria again (this is referred to as “rebalancing” hereinafter). After rebalancing,
if a hedge becomes no longer qualified for hedge accounting or a hedging instrument expires,or is sold, terminated or executed, hedge accounting is discontinued prospectively.
When hedge accounting is discontinued, the balance of cash flow hedges already recognizedin other comprehensive income remain in equity if the hedged future cash flows are still
expected to occur, whereas such balance is reclassified immediately to profit or loss if thehedged future cash flows are no longer expected to occur.
2) Accounting method for: Consumption taxes are accounted for using the net

11
Notes to consolidated financial statements

consumption taxes
3) Foreign currency translation

4) Treatment of goodwill5) Employee benefits

method of reporting.
: A foreign currency transaction is translated into thefunctional currency of each Group company at the rateof exchange at the date of the transaction.
Foreign currency monetary assets and liabilities at theend of the reporting period are translated into thefunctional currency at the rate of exchange at the end of
the reporting period.
Foreign currency non-monetary assets and liabilities
measured at fair value are translated into the functional
currency at the rate of exchange at the date when said
fair value is determined.
Differences arising from translation or settlement arerecognized in profit or loss, except that differences
arising from financial assets measured at fair value
through other comprehensive income and cash flow
hedges are recognized in other comprehensive income.
The assets and liabilities of foreign operations aretranslated into Japanese yen at the rate of exchange atthe end of the reporting period, while the income andexpenses of foreign operations are translated into
Japanese yen at the average exchange rate for the period,
unless exchange rates do not fluctuate significantly
during the period. Exchange differences arising from thetranslation of the financial statements of foreign
operations are recognized in other comprehensive
income. On the disposal of a foreign operation, theexchange differences relating to that foreign operation
are recognized in profit or loss during the period when
said disposal was made.
: Goodwill is not amortized but is subject to an
impairment testing annually and whenever an indicationof impairment exists.
Impairment losses relating to goodwill are recognized in
the consolidated statement of income, and subsequent
reversals of the losses are not conducted.
: The Group adopts defined benefit pension plans anddefined contribution pension plans as post-employment
benefits for employees.
The Group determines the present value of defined
benefit obligations and related current service cost andpast service cost using the projected unit credit method.
The discount rate is determined by reference to market
yields on high-quality corporate bonds at the end of the

12
Notes to consolidated financial statements

6) Presentation of amounts

reporting period corresponding to the discount period,
which is established to reflect the period until theestimated timing of benefit payments in each fiscal year
in the future.
Liabilities or assets pertaining to defined benefit pension
plans are calculated by deducting the fair value of plan
assets from the present value of defined benefit
obligations.
Remeasurements of defined benefit pension plans arecollectively recognized in other comprehensive income
for the period when they are incurred and are
immediately transferred from other components ofequity to retained earnings.
Past service cost is amortized as profit or loss for theperiod when it is incurred.
Cost relating to defined contribution pension plans is
recognized as an expense at the time of contribution.
: Amounts less than one million yen are truncated.

(Note to changes in the manner of presentation)
Profit and loss from businesses that have been reclassified as discontinued operations are presented asa separate component at the amount net of income tax expenses under profit from continuing
operations in the consolidated statement of income.
(Notes to the changes in accounting policies)
1. Basis for consolidation
Affiliated companies
Affiliated companies refer to companies over which the Group does not have control or joint control,
despite having significant influence over finance or operating policy. When the Group has between
20% and 50% of the voting rights of another company, the Group is assumed to have significant
influence over that company.
Affiliated companies are accounted for by the equity method from the day that the Group assumes asignificant influence until the day that it loses the significant influence. Investments in affiliates
include goodwill recognized upon acquisition (net of accumulated impairment losses). Where
affiliated companies have adopted different accounting policies to those adopted by the Group,
adjustments are made to the affiliated companies’ financial statements as needed.
2. Leases
The Group adopted IFRS 16 “Leases” (announced in January 2016, hereinafter referred to as “IFRS16”) in the current consolidated fiscal year.
IFRS 16, which replaces the former IAS 17 for lease transactions of the lessee, prescribes theelimination of the classification between operating leases and finance leases and introduction of asingle accounting model to record assets and liabilities in relation to all important lease transactions.
As of the lease commencement date, right-of-use assets are measured at acquisition cost, and lease

13
Notes to consolidated financial statements

liabilities are measured at the present value of remaining lease payments as of the leasecommencement date. When the ownership of the underlying asset is transferred to the Group prior to
the termination of the lease period, or when the exercise of a purchase option is reflected in theacquisition price of the right-of-use asset, the right-of-use asset is depreciated using the straight-line
method based on its useful life. In other cases, right-of-use assets are depreciated using the straightline method based on either the useful life or at the termination of the lease period, whichever is shorter.
Lease payments are apportioned between finance costs and repayment of lease obligations based on
the interest method, and financial costs are recognized in the consolidated statement of income.
The lease period is determined by adjusting the period subject to an option to extend or terminate thelease that can be exercised with reasonable certainty during the non-cancelable period as set forth in
the lease contract. The rate used in calculating the present value of the lease payments is the interest
rate implicit in the lease or the lessee’s incremental borrowing rate.
Short-term leases with a lease term of 12 months or less and leases of low-value underlying assets arerecognized as expenses on either a straight-line basis or another systematic basis over the lease term
for the total lease payments.
The method adopted in the application of IFRS 16 is to recognize the cumulative effect of applying
this standard at the date of initial application that is approved as an interim measure without
retrospectively adjusting the balance in the earlier reporting periods.
In transitioning to IFRS 16, the Company chose to adopt the practical expedient of succeeding theprevious assessment of which transactions constitute leases. IFRS 16 is applied only to contracts thatwere identified as leases under the previous IAS 17 and IFRIC 4 and a review on whether the contracts
correspond to leases is not performed on contracts not previously identified as leases.
Consequently, the identification of leases based on IFRS 16 is applied solely to contracts that weresigned or changed after the initial date of application.
For leases that were classified as operating leases under IAS 17, lease liabilities on transition are
initially measured at the present value of the total remaining leases as of the date of transition,
discounted at the incremental borrowing rate of the lessee. Right-of-use assets are recorded at the samevalue as lease liabilities. The weighted-average for incremental borrowing rate of the lessee applied tolease liabilities recognized in the consolidated financial statements as of the date of initial application
is 0.4%.
Also, the Company has used the practical expedients in the past as shown below prior to the applicationof IFRS 16 to leases classified as operating leases with the application of IAS 17:- Rely on an assessment of whether leases are onerous in accordance with IAS 37 “Provisions,Contingent Liabilities and Contingent Assets” immediately before the date of initial application as
an alternative to performing an impairment review.
- Apply a single discount rate to a portfolio of leases with reasonably similar characteristics- Account for leases for which the lease term ends within 12 months of the date of initial applicationin the same way as short-term leases- Exclude initial direct costs from the measurement of right-of-use assets at the date of initial
application- Use hindsight: e.g. in determining the lease term of the contract that contains options to extend or
terminate the lease.
The differential between the lease liabilities recognized on the day of initial application and total future
minimum lease payments on operating leases that cannot be terminated, disclosed by applying IAS 17,

14
Notes to consolidated financial statements

as of the end of the consolidated accounting year immediately before the date of initial application is1,652 million yen. A major reason behind this differential is a review of the lease period performed
upon the application of IFRS 16.
The carrying amount of right-of-use assets and lease liabilities as of April 1, 2019 for leases classified
as finance leases under IAS 17 is calculated at the carrying amount of lease assets and lease liabilities
according to IAS 17 as of the day immediately preceding the above date.
In transitioning to IFRS 16, the Company recorded 2,138 million yen, 507 million yen and 1,631
million yen as Property, plant and equipment, other financial liabilities (current) and other financial
liabilities (noncurrent), respectively, at the beginning of the period.
The impact of the transition on the profits and cash flow during the current fiscal year remains minimal.
3. Discontinued operations
The Group recognizes any component of a company that has already been disposed of or has beenclassified as held for sale and that falls under either one of the following categories as a discontinued
operation:- It represents a major independent business area or operating territory.
- It is a component of a consolidated plan to dispose of a major independent business area or
operating territory.
- It is a subsidiary that has been acquired solely for the purpose of resale.
The after-tax gain or loss on discontinued operations and the after-tax gain or loss recognized after the
disposal of the disposal group that constitutes the discontinued operations are reported separately fromcontinued operations as profit from discontinued operations in the consolidated income statement.
(Notes to the consolidated statement of financial position)
1. Assets pledged as collateral and obligations related to collateral(1) Assets pledged as collateral
Property, plant and equipment
Buildings and structures
Land
Total
(2) Obligations related to collateral
Loans payable (current)
Total
2. Allowance for doubtful accounts directly deducted from assets
Trade and other receivables
Financial assets (non-current)

56 million yen
160 million yen
216 million yen

50 million yen
50 million yen

10 million yen
0 million yen

3. Accumulated depreciation of property, plant and equipment
31,430 million yen

15
Notes to consolidated financial statements

(Notes to the consolidated statement of income)
1. Impairment loss
The impairment loss of 998 million yen on property, plant and equipment recognized during the
fiscal year under review was due to the decision of disposal of gold and silver refining facilities(buildings and machinery) in Asahi Refining Florida LLC belonging to the segment of Precious
Metal Business to further enhance the efficiency and profitability of business in North America.
And the book value of the property, plant and equipment has been reduced to the recoverable amount.
The recoverable value is measured based on the fair value less costs of disposal, and that is evaluatedusing the estimated disposal value, etc. of the asset. The fair value hierarchy level is 3. Impairment
losses are recorded in “Other operating expenses” in the consolidated statement of income.
2. Discontinued operations(1) Outline of discontinued operations
On December 20, 2019, the Company signed an agreement to transfer of 60% of all the sharesof FUJI MEDICAL INSTRUMENTS MFG. CO., LTD., which was a consolidated subsidiary of
the Company, to Johnson Health Tech. Co., Ltd., a listed company on the Taiwan Stock
Exchange. For this reason, profit and loss relating to operations of FUJI MEDICALINSTRUMENTS MFG. CO., LTD. in the fiscal year under review are classified as discontinued
operations, with the discontinued operations concerned displayed in a separate category. The
transfer was completed on March 13, 2020.
(2) Discontinued operations performance(Millions of yen)
The fiscal year ended March 31, 2020
(April 1, 2019 to March 31, 2020)
Revenue and expense of discontinued
operations
Revenue
13,698
Expense (note)(14,772)
Loss before tax from discontinued(1,074)operations
Income tax expenses (note)(499)
Loss from discontinued operations(1,573)(Note) This includes losses worth 1,607 million yen, which were recognized by the measurementin the current consolidated fiscal year of the disposal group that constitutes discontinued
operations at fair value less selling cost. Income tax expenses pertaining to this change
totaled 332 million yen.

16
Notes to consolidated financial statements

(Notes to the consolidated statement of changes in equity)
1. Class and number of issued shares and treasury shares
Number of shares Number of shares Number of shares
Number of shares
increased during decreased during at the end of thisat the beginning of
this consolidated this consolidated consolidated
this consolidated
accounting
accounting
accounting
accounting period
periodperiodperiod(Thousands of(Thousands of(Thousands of(Thousands ofshares)shares)shares)shares)Issued shares
Common stock
39,85439,854
Total
39,85439,854
Treasury shares
Common stock
505
0
505
Total
505
0
505
(Notes) 1. The increase of 0 thousand shares in treasury shares of common stock was due to thepurchase of shares less than one unit.
2. The treasury shares include 376 thousand shares held by the ESOP trust and 95 thousand
shares held by the BIP trust.
2. Dividends(1) Dividends paid
Class of
Total
Dividends
Effective
Resolution
Record datesharesdividends
per sharedate
May 8, 2019
Common2,389
March 31,
May 29,60.00 yen
Board of Directors’ Meetingstock
million yen
2019
2019
October 29, 2019
Common2,389
September November
60.00 yen
Board of Directors’ Meetingstock
million yen
30, 2019
22, 2019(Notes) 1. Total dividends according to the resolution at the Board of Directors’ meeting on May 8,
2019 include dividends of 28 million yen relating to the Company’s shares held by the
ESOP trust and the BIP trust.
2. Total dividends according to the resolution at the Board of Directors’ meeting on October
29, 2019 include dividends of 28 million yen relating to the Company’s shares held by
the ESOP trust and the BIP trust.
(2) Among dividends whose record date within this consolidated accounting period, those having
an effective date within the following consolidated accounting period (scheduled)Class of
Total
Source of Dividends
RecordEffective
Resolution
sharesdividends
dividends
per sharedate
date
May 12, 2020
Board ofCommon2,787 Retained
March 31,
May 27,70.00 yen
Directors’
stockmillion yen earnings
2020
2020
Meeting(Note) Total dividends according to the resolution at the Board of Directors’ meeting on May 12, 2020
include dividends of 33 million yen relating to the Company’s shares held by the ESOP trust
and the BIP trust.

17
Notes to consolidated financial statements

(Notes to financial instruments)
1. Status of financial instruments
In the course of business activities, the Group is exposed to financial risks, such as credit risks,liquidity risks, currency risks, interest rate risks and market price fluctuation risks, and performs
risk management activities to reduce said financial risks.
The Group also uses derivative financial instruments, such as foreign exchange forward contracts
and interest rate swaps, to hedge against market risks and makes it a policy not to enter into
derivative transactions for speculative purposes.
1) Credit risk
A credit risk refers to a risk of customers going into default on contractual debts, causing
financial losses to the Group.
The Group manages the credit risk in accordance with its credit control regulations, using thecredit limits set for its business partners.
The Group’s receivables consist of receivables from many customers operating in a wide
range of industries and regions, and are not subject to risks excessively concentrated on asingle customer or the group to which said customer belongs.
The carrying amount of financial assets, net of accumulated impairment loss, presented in the
consolidated statement of financial position represents the maximum exposure of the Group’s
financial assets to credit risks without taking into account the value of the collateral obtained.
Regarding the exposure to these credit risks, there are no properties held as collateral andother credit enhancements.
2) Liquidity risk
A liquidity risk refers to a risk of the Group becoming not able to repay the financial liability
for debts on the due date.
The Group manages liquidity risk by preparing adequate amount of funds for repayment,
while securing from financial institutions a line of credit to which it is accessible as needed
and monitoring the plans and results of cash flows on a continuous basis.
3) Currency risk
The Group operates globally and is exposed to currency risks related to foreign currencytransactions. For certain foreign currency transactions for which the amounts are significant
and that are individually identifiable, the Group uses hedging instruments to hedge against
currency risks relating to the hedged items within a certain range in accordance with its
internal regulations.
Accordingly, the exposure to currency risks is insignificant and is judged as immaterial to theGroup.
4) Interest rate risk
An interest rate risk is defined as a risk of the fair value of financial instruments or the future
cash flows from financial instruments fluctuating due to fluctuations in market interest rates.
The Group’s exposure to interest rate risks mainly relates to payables, such as loans payable,
and receivables, such as interest-bearing deposits. Because the amount of interest is subject
to fluctuations in market interest rates, the Group is exposed to interest rate risks that cause
fluctuations in future cash flows of interest.
The Group uses interest rate swaps to mitigate the risk of fluctuations in interest payable
relating to loans payable, thereby stabilizing cash flows.

18
Notes to consolidated financial statements

Accordingly, the impact of fluctuations in the amount of interest payments due to interest-ratefluctuations on the Group is insignificant, and interest rate risks are judged as immaterial to
the Group.
5) Market price fluctuation risk
Precious metals and rare metals, the core products of the Group’s precious metal business, aretraded in international markets, and the prices thereof are exposed to commodity price risks
due to the political and economic trends of supplier and consumer countries, as well as foreignexchange rates.
To mitigate commodity price risks, the Group uses derivative instruments such as commodity
forward contracts, as hedging instruments against commodity price risks mainly due to market
price fluctuations.
Accordingly, the Group’s exposure to commodity price fluctuation risks is insignificant andmarket price fluctuation risks are judged as immaterial to the Group.
2. Fair value, etc., of financial instruments
The carrying amounts reported in the consolidated statement of financial position on March 31,
2020 (consolidated fiscal closing date for the fiscal year under review), and the fair value offinancial instruments are as follows:(Millions of yen)
Carrying amount inconsolidated statement
Fair value (*)
of financial position (*)
Financial assets
Financial assets measured at amortized cost
Cash and cash equivalents
22,90822,908Trade and other receivables
119,754
119,754
Other
755
755
Financial assets measured at fair value
through other comprehensive income
Other financial assets
21
21
Financial assets designated as hedging
instruments
Derivative instruments––
Financial liabilities
Financial liabilities measured at amortized
cost
Trade and other payables
13,71013,710Bonds payables
4,928
4,928
Loans payable
121,873
121,893
Other
4
4
Financial liabilities designated as hedging
instruments
Derivative instruments
6,561
6,561
(*)
The methods used for determining the fair value of financial instruments are as follows.

19
Notes to consolidated financial statements

Financial assets measured at amortized cost:
These mainly consist of cash and cash equivalents, and trade receivables. These aresettled in a short term, and the carrying amount thereof is a reasonable approximation to
the fair value thereof.
Financial assets measured at fair value through other comprehensive income:
These mainly consist of listed shares. The fair value of listed shares is determined basedon the market prices at the end of the reporting period.
Financial assets designated as hedging instruments and Financial liabilities designated as
hedging instruments:
These mainly consist of derivative instruments. The fair value of derivative instruments
is determined mainly by reference to prices quoted by financial institutions.
Financial liabilities measured at amortized cost:
These mainly consist of trade payables, bonds payable and loans payable. Trade payables
are settled in a short term, and the carrying amount thereof is a reasonable approximation
to the fair value thereof. The fair value of bonds payable and loans payable is determinedbased on the present value, which is obtained by discounting future cash flows at aninterest rate assumed to be applied if similar contracts were newly executed.
(Notes to information per share)
Equity attributable to owners of parent per
share

1,758.00 yen

Continuing operations
Discontinued operations
Basic profit per share290.22 yen(39.98) yen
250.24 yen

Continuing operations
Discontinued operations
Diluted profit per share

288.24 yen(39.71) yen
248.53 yen(Notes to significant subsequent events)
Not applicable(Other notes)
Impact of the novel coronavirus disease
In making accounting estimates, we have considered the impact of the spread of the coronavirus
infection on our future outlook. As a result, we do not expect any changes that would cause asignificant effect on our estimates due to the nature of the Group’s businesses.
(Notes to recognition of revenue)
The Group is engaged in the sales of precious metals, heating equipment, and other items. Regardingthese products, revenue is recognized when the goods are transferred to the customer, a point at which
the customer has control of the goods, and the performance obligation is deemed to have been satisfied.
As for revenue pertaining to the collection, transport and intermediate treatment or other processing

20
Notes to consolidated financial statements

of industrial wastes, revenue is recognized when the treatment of the said industrial waste is completed,a point at which the customer has control and the performance obligation is deemed to have beensatisfied.

21
Notes to consolidated financial statements

Notes to non-consolidated financial statements(Notes to significant accounting policies)
1. Valuation standards and valuation methods for assets
Securities
Shares of subsidiaries: Cost mainly determined by the moving-averagemethod.
2. Depreciation methods for non-current assets
Property, plant and equipment: Straight-line method
Assets with acquisition amount of 100 thousand
yen or more to less than 200 thousand yen are
equally depreciated for three years.
Intangible assets: Straight-line method
Software for internal use is amortized under thestraight-line method based on the period forwhich the Company can use such software (fiveyears or less).
3. Accounting standards for provisions
Allowance for doubtful accounts: To provide for possible losses due to theuncollectibility of claims, an allowance for
doubtful accounts is provided for specific claims
with a higher probability of default at an
uncollectible amount estimated by considering
the collectability of individual claims.
Provision for bonuses: To allow for the payment of bonuses to
employees, the standard for estimated amounts ofbonuses to be paid is recorded.
Provision for director’s bonuses: To allow for the payment of bonuses to directors,
the standard for estimated amounts of bonuses tobe paid is recorded.
Provision for management board incentive: To allow for the granting of the Company sharesplan trust
to the Company’s Directors in accordance with
the Regulations Concerning Stock Issuance, anamount of stock grant obligations estimated at
the end of the fiscal year under review isrecorded.
Provision for stocks payment: To allow for the granting of the Company sharesto the Group employees in accordance with theRegulations Concerning Stock Issuance, anamount of stock grant obligations estimated at
the end of the fiscal year under review is recorded.
4. Other important items for preparing financial statements

22
Notes to non-consolidated financial statements

1) Treatment of deferred assets
2) Hedge accounting
Hedge accounting methods

Bond issuance cost is recognized as an expense
when expended.
: The Company accounts for hedging activities
under deferral hedge accounting. Furiate-shori(accounting method in which the current andforward rate difference is allocated by period
length for the calculation at the accounting
period) is applied to foreign exchange forward
contracts which conform to the requirements ofsuch hedge accounting. Tokurei-shori (anaccounting method in which the net interest
swap amount is treated by adjusting the intereston hedged items) is applied to interest rate swap
contracts that conform to the requirement ofsuch hedge accounting.

Hedging instruments and hedged items
Hedging instruments: Currency swaps and interest rate swaps
Hedged items: Payment of principal and interest of long-termloans payable
Hedging policy: In accordance with internal regulations, theCompany hedges risks associated withfluctuations in foreign currency exchange rates
and interest rates.
Methods for assessing the effectiveness : During the inception of hedging to the judgmentof hedging
of effectiveness, accumulated rate fluctuationsin hedged items and hedging instruments arecompared and then assessment is made on thebasis of the amount of these fluctuations. For
currency swaps subject to furiate-shori andinterest rate swaps subject to tokurei-shori, theassessment of effectiveness is omitted.
3) Accounting method for consumption: Consumption taxes are accounted for using thetaxes
net method of reporting.

23
Notes to non-consolidated financial statements

(Notes to balance sheet)
1. Accumulated depreciation of property, plant and equipment

2,058 million yen

2. Guarantee liabilities
Guarantees are provided for the bank loans of the following company.
Asahi Refining Canada Ltd.
102,844 million yen
Total
102,844 million yen
3. Monetary claims and monetary obligations related to affiliated companies
Short-term monetary claims
54,777 million yen
Short-term monetary obligations
2 million yen(Notes to statement of income)Amount of transactions with affiliated companies
Amount of operating transactions with affiliated companies
Operating revenue
Amount of other operating transactions
Amount of transactions other than operating transactions

11,398 million yen
90 million yen
483 million yen(Notes to statement of changes in net assets)
Class and number of treasury stocks
Number of shares Number of shares Number of shares Number of sharesat the beginning
increased during
decreased during at the end of thisClass of shares of this fiscal year this fiscal year
this fiscal year
fiscal year
(Thousands of(Thousands of(Thousands of(Thousands ofshares)shares)shares)shares)Common stocks
505
0
–
505
Total
505
0
–
505
(Notes) 1. The increase of 0 thousand shares in treasury shares of common stock was due to thepurchase of shares less than one unit.
2. The treasury shares include 376 thousand shares held by the ESOP trust and 95 thousand
shares held by the BIP trust.

24
Notes to non-consolidated financial statements

(Notes to tax effect accounting)Breakdowns of main items causing deferred tax assets and deferred tax liabilities
Deferred tax assets
Allowance for doubtful accounts
5,311 million yen
Business tax
18 million yen
Provision for directors’ bonuses
16 million yen
Provision for management board incentive
15 million yen
plan trust
Provision for stocks payment
8 million yen
Provision for bonuses
6 million yen
Loss on valuation of shares of affiliated
3 million yen
companies
Other
4 million yen
Subtotal
5,383 million yen
Valuation allowance(5,314) million yen
Total deferred tax assets
69 million yen
Net deferred tax assets
69 million yen(Notes to transactions with related parties)
Subsidiaries and affiliated companies, etc.
Category

Subsidiary

Name ofcompanies

Asahi Pretec
Corp.

Voting rights

Details oftransaction

Amount oftransaction(Millions ofyen)Collection ofloaned funds

48,061

Support of funds

Loan of funds(Note 1)

54,747

Management
guidance

Receipt of interest(Note 1)
Management
guidance(Note 2)
Receipt ofdividends

Relationshipwith relatedparties

Owned
Direct 100%

Receipt ofdividends

Account

Term-endbalance(Millions ofyen)

Short-termloans toaffiliatedcompanies(Note 3)54,747

186

–

–

831

–

–

10,000––Transaction terms and conditions and policy, etc., to determine terms and conditions fortransactions(Note 1) As for loans of funds, we reasonably determine interest rates taking into consideration
market interest rates.
(Note 2) We determine prices and other terms and conditions for transactions by reference toprevailing market interest rates, etc.
(Note 3) Allowance for doubtful accounts of 17,347 million yen is recognized to provide for claims
with a higher probability of default.
In addition, provision of allowance for doubtful accounts of 204 million yen is recognized
for the fiscal year under review.

25
Notes to non-consolidated financial statements

(Notes to information per share)
Net assets per share
Net profit per share
Diluted net profit per share

1,528.03 yen
257.25 yen
255.48 yen(Notes to significant subsequent events)
Not applicable26
Notes to non-consolidated financial statements