Consolidated Financial Results for the Second Quarter Ended September 30, 2020
Asahi Holdings, Inc. [IFRS]October 28, 2020

Stock code:
Shares listed:

5857
Tokyo Stock Exchange (First Section)

URL:
Representative:

https://www.asahiholdings.com
Tomoya Higashiura, Representative Director, President & CEO

For further information please contact:

Kunihiko Chogo, General Manager, Corporate Planning &Communications Department

Filing date of Quarterly Report:(Phone) +81–3–6270–1833
November 13, 2020

Start of dividend payment:
Supplementary materials for the financial results:

November 20, 2020
Yes

Investor conference for the financial results:

Yes (for institutional investors, analysts)(Rounded down to the nearest million yen)
1. Results of the six months ended September 30, 2020 (From April 1, 2020 to September 30, 2020)(1) Results of operations (cumulative)(Percentage: Changes relative to corresponding previous period)
OperatingincomeRevenue
The six months ended
September 30, 2020
September 30, 2019

Millions of yen

79,12660,985%

Millions of yen

29.7 11,828–
6,937

Profit before
tax%

Millions of yen

70.5 11,876–
6,744% Millions of yen

76.1 8,233
–
4,506

%

Millions of yen

82.7 8,233(0.8) 4,506

Basic earnings per share

Diluted earnings per shareYen
209.24114.53

Yen
207.83114.14The six months ended
September 30, 2020
September 30, 2019

Profitattributable toowners of parent

Profit%Total
comprehensive
incomeMillions of yen

82.7 6,548(0.8) 3,557(Notes) 1. Since the Company transferred 60% of all shares in Fuji Medical Instruments MFG. Co., Ltd. in the fiscal
year ended March 31, 2020, this business was classified as discontinued operations with the amounts ofrevenue, operating income and profit before tax reclassified and presented as amounts for only thecontinuing operations excluding such business.
2. Due to the retrospective application of the changes in accounting policies, the figures shown for the six
months ended September 30, 2019 are the figures after retrospective application.
(2) Financial Position

As of
September 30, 2020
March 31, 2020

Total assets

Total equity

Equity attributable toowners of parent

Equity attributable toowners of parent ratio

Millions of yen
238,119
229,958

Millions of yen
73,071
69,174

Millions of yen
73,071
69,174

30.7
30.1

%

2. Dividend payments
Dividends per share

Year ended March 31, 2020
Year ending March 31, 2021
Year ending March 31, 2021
(Forecast)First quarter

Second quarter

Third quarter

Year–end

Annual

Yen

Yen

Yen

Yen

Yen

–

60.00
80.00

–

70.00

130.00–80.00

160.00–(Note) Revisions in dividend forecast in the current quarter: No%

84.1(15.6)

3. Forecast (From April 1, 2020 to March 31, 2021)

OperatingincomeRevenue
Millions of yen

Year ending March 31, 2021 165,000(Percentage: Changes relative to corresponding previous period)% Millions of yen

21.7 21,000

Profit beforetax% Millions of yen

16.6 20,800

Profitattributable toowners of parent% Millions of yen%

17.8 14,000

42.2

Basic earnings
per shareYen

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

Changes in accounting policies and accounting estimates(i) Changes in accounting policies required by IFRS: No(ii) Changes other than (i) above: Yes(iii) Changes in accounting estimates: No
For details, please refer to page 12 “2. Condensed Consolidated Financial Statements (7) Notes on Condensed
Consolidated Financial Statements (3. Changes in accounting policies).”(3)

Number of issued shares (common stock)(i)

Number of issued shares at the quarter end (including treasury stock)
As of September 30, 2020

39,854,344 shares

As of March 31, 2020

39,854,344 shares(ii) Number of treasury stock at the quarter end
As of September 30, 2020

505,837 shares

As of March 31, 2020

505,637 shares(iii) Averaged number of shares during the period (quarterly cumulative period)
Six months ended September 30, 2020

39,348,635 shares

Six months ended September 30, 201939,348,857 shares* The quarterly financial statements are not subject to quarterly reviews by accounting auditors.
* Statement regarding the proper use of financial forecasts and other special remarks(Notes on forward looking statements, etc.)
These forecast performance figures are based on the information currently available to the Company’s
management and certain assumptions judged rational. Accordingly, they are not meant to be a commitment by
the Company. There might be cases in which actual results materially differ from forecasts of this report. Pleaserefer to page 3 “1. Qualitative Information (3) Consolidated Performance Forecasts” for the assumptions used
and other notes.

【Appendix】

Table of contents of the appendix
1. Qualitative Information ................................................................................................................................

2(1) Consolidated Business Performance ........................................................................................................
(2) Consolidated Financial Position and Cash Flows for the Second Quarter of the Fiscal Year Ending
March 31, 2021.........................................................................................................................................
(3) Consolidated Performance Forecasts .......................................................................................................

22

2. Condensed Consolidated Financial Statements...........................................................................................

4(1) Condensed Consolidated Statements of Financial Position ...................................................................

4(2) Condensed Consolidated Statements of Income for the Six Months Ended September 30, 2020 ........
(3) Condensed Consolidated Statements of Comprehensive Income for the Six Months Ended
September 30, 2020 .................................................................................................................................
(4) Condensed Consolidated Statements of Changes in Equity ...................................................................

6

3

7

(5) Condensed Consolidated Statements of Cash Flows ..............................................................................

810(6) Notes on Assumptions for Going Concern ...............................................................................................

11(7) Notes on Condensed Consolidated Financial Statements ......................................................................

11

1. Reporting entity ...................................................................................................................................

11

2. Basis of preparation ............................................................................................................................

11

3. Changes in accounting policies ...........................................................................................................

12

4. Significant accounting estimates and associated judgements ..........................................................

12

5. Segment information ...........................................................................................................................

13

6. Discontinued operations ......................................................................................................................

15

7. Subsequent events ...............................................................................................................................

15

－ 1 －

1. Qualitative Information(1) Consolidated Business Performance
The Japanese economy was in an extremely difficult situation during the six months ended September 30,
2020 as a result of the impact of the global spread of the novel coronavirus disease (COVID–19), and thestagnation of socio-economic activity. Despite personal consumption and a portion of companies’ production
activities showing signs of recovery as a result of economic measures by the Japanese government after thelifting of the state of emergency, the outlook continues to remain opaque as there is no outlook for when theoutbreak will be under control. Under these conditions, the Group’s results in each business segment were as
follows.
Precious Metals business
Revenue and operating income in precious metal recycling business in Japan and other countries increased
from the same period in the previous year thanks to an increase in the volume of precious metal collection andthe rise in precious metal prices. Also, revenue and operating income in precious metal refining business inNorth America expanded from the same period a year before thanks to increases in product processing andsales as well as financial transactions. As a result, revenue and operating income in the Precious Metals
business increased from the same period in the previous year.
Environmental Preservation business
Because of a decrease in the volume of industrial waste disposed due to the stagnation of industrial
activities, such as in the automotive industry, revenue and operating income in the Environmental
Preservation business decreased from the same period in the previous year.
As a result of the above, revenue during the six months ended September 30, 2020 was 79,126 million yen, a
year-on-year increase of 18,140 million yen (+29.7 percent). Operating income was 11,828 million yen, a yearon-year increase of 4,891 million yen (+70.5 percent). Profit before tax was 11,876 million yen, a year-on-yearincrease of 5,131 million yen (+76.1 percent). Profit was 8,233 million yen, a year-on-year increase of 3,726
million yen (+82.7 percent). Profit attributable to owners of parent was therefore 8,233 million yen, an
increase of 3,726 million yen (+82.7 percent) year-on-year. By segment, revenue in the Precious Metals
business was 70,019 million yen, a year-on-year increase of 20,107 million yen (+40.3 percent). In theEnvironmental Preservation business, revenue was 9,106 million yen, a year-on-year decrease of 903 million
yen (-9.0 percent).

(2) Consolidated Financial Position and Cash Flows for the Second Quarter of the Fiscal YearEnding March 31, 2021
As of September 30, 2020, total assets amounted to 238,119 million yen, up 8,160 million yen from theprevious fiscal year end. This was due mainly to a decrease of 18,615 million yen in cash and cash
equivalents, an increase of 13,373 million yen in trade and other receivables and an increase of 9,740 million
yen in inventories.
Total liabilities amounted to 165,048 million yen, up 4,264 million yen from the previous fiscal year end.
This was due mainly to a decrease of 8,179 million yen in bonds and loans payable, a decrease of 2,133 million
yen in other current liabilities and an increase of 15,144 million yen in trade and other payables.
Total equity amounted to 73,071 million yen, up 3,896 million yen from the previous fiscal year end. Thiswas due mainly to an increase of 6,548 million yen in comprehensive income and a decrease of 2,754 million
yen used for dividends.
As a result, the equity attributable to owners of parent ratio changed to 30.7%, from 30.1% at the end of theprevious fiscal year.
Net cash used in operating activities amounted to 3,607 million yen due mainly to 11,876 million yen of
profit before tax, 1,221 million yen of depreciation and amortization, 9,748 million yen of increase ininventories, 9,950 million yen of increase in trade and other receivables, 10,593 million yen of increase intrade, loans and other payables and 6,513 million yen of income taxes paid.
Net cash used in investing activities amounted to 1,356 million yen due mainly to 1,280 million yen ofpurchase of property, plant and equipment.
Net cash used in financial activities amounted to 13,427 million yen due mainly to 10,451 million yen of net－ 2 －decrease in long–and short–term loans payable and 2,754 million yen of cash dividends paid.
As a result, cash and cash equivalents as of September 30, 2020 decreased 18,615 million yen from March
31, 2020, to 4,292 million yen.

(3) Consolidated Performance Forecasts
No changes have been made to the forecasts going forward as they are in line with the financial forecast for
the fiscal year ending March 31, 2021 announced in the “Consolidated Financial Results for the First Quarter
Ended June 30, 2020” made public on July 29, 2020.

－ 3 －2. Condensed Consolidated Financial Statements(1) Condensed Consolidated Statements of Financial Position
As ofMarch 31,
2020

As of
September 30,
2020

Millions ofyenMillions ofyen

ASSETS
Current assets
Cash and cash equivalents

22,9084,292

Trade and other receivables
Inventories

119,754
37,748133,128
47,488

Income tax receivables
Other financial assets

2,029
93

162
89

Other current assets

5,069

8,272

Total current assets

187,604

193,434

34,95337,003

Goodwill
Intangible assets

1,604
529

1,604
550

Investments accounted for using equity method
Deferred tax assets

3,254
1,132

3,373
1,327

155
683

–
778

Non–current assets
Property, plant and equipment

Net defined benefit asset
Financial assets
Other non–current assets

42

46

Total non–current assets

42,354

44,685229,958

238,119

Total assets－ 4 －As ofMarch 31,
2020

As of
September 30,
2020

Millions ofyenMillions ofyen

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

13,710121,873

28,854
113,687

Income tax payable
Other financial liabilities

4,624
6,991

3,706
7,523

Provisions
Other current liabilities

1,293
4,643

1,149
2,510

Total current liabilities
Non–current liabilities

153,137

157,432

Bonds and loans payable
Deferred tax liabilities

4,928
1,453

4,935
1,497

Net defined benefit liability
Other financial liabilities

172
1,066

187
901

Other non–current liabilities

24

93

Total non–current liabilities

7,645

7,615

160,783

165,048

7,790

7,790

Capital surplus
Treasury stock

10,755(956)

10,858(956)

Retained earnings
Other components of equity

60,797(9,212)

66,149(10,770)

Total equity attributable to owners of parent

69,17473,071

Total equity

69,17473,071

229,958

238,119

Total liabilities
EquityCapital stock

Total liabilities and equity－ 5 －(2) Condensed Consolidated Statements of Income for the Six Months Ended September 30, 2020
The six months
ended September 30,
2019

The six months
ended September 30,
2020

Millions of yen

Millions of yen

Continuing operations
Revenue

60,985

79,126

Cost of sales(50,781)(64,104)

Gross profit
Selling, general and administrative expenses

10,203(3,279)15,021(3,271)

87
(73)

57
(95)

–

116

Operating income
Finance income

6,937
7

11,82898

Finance cost
Other non–operating income

(136)
77

(46)
–

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

Other non–operating expenses

(140)

(3)

Profit before tax
Income tax expenses

6,744(2,556)

11,876(3,643)

Profit from continuing operations
Discontinued operations

4,187

8,233

318

–

4,506

8,233

Owners of parent
Non–controlling interests

4,506
–

8,233
–

Profit

4,506

8,233

Continuing operations
Discontinued operations

106.438.11

209.24–

Total

114.53209.24

Diluted earnings per share (Yen)Continuing operations

106.06207.838.08–

114.14207.83

Profit from discontinued operations
ProfitProfit attributable to:Earnings per share
Basic earnings per share (Yen)

Discontinued operations
Total

－ 6 －

(3) Condensed Consolidated Statements of Comprehensive Income for the Six Months Ended
September 30, 2020

ProfitThe six months
ended September 30,
2019

The six months
ended September 30,
2020

Millions of yen

Millions of yen

4,506

8,233

(3)

1

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

(34)

(126)

Share of other comprehensive income ofinvestments accounted for using equity method–2

Total items that will not be reclassified to profit
or loss

(38)

(122)

(754)
(156)

(1,694)132(910)(1,562)(948)(1,684)

3,557

6,548

Owners of parent
Non–controlling interests

3,557
–

6,548
–

Comprehensive income

3,557

6,548

Items that will be reclassified to profit or loss
Cash flow hedges
Translation adjustments of foreign operations
Total items that will be reclassified to profit orloss
Other comprehensive income, net of tax
Comprehensive income
Comprehensive income attributable to:－ 7 －(4) Condensed Consolidated Statements of Changes in Equity(Millions of yen)
Equity attributable to owners of parent
Other components ofequityCapitalTreasury
Retained
Translation
surplusstockearnings
adjustments
Cash flowof foreign
hedgesCapitalstock

operations

Balance at April 1, 2019
ProfitOther comprehensive
incomeTotal comprehensive
incomeDividends
Reclassified from othercomponents of equity toretained earnings
Share–based paymenttransactions
Total transactions withownersBalance at September 30,
2019

7,790
–

10,353–(955)–

55,547
4,506(3,737)–(1,203)
–

–

–

–

–

(156)

(754)

–

–

–

4,506

(156)

(754)

–

–

–

(2,360)

–

–

–

–

–

(30)

–

–

–

35

–

–

–

–

–

35

–

(2,391)

–

–

7,790

10,388(955)

57,662(3,893)(1,957)(Millions of yen)
Equity attributable to owners of parent
Other components of equity
Financial
Remeasureassets
measured atments offair value
definedthrough otherbenefitcomprehenplans
sive income

Balance at April 1, 2019
ProfitOther comprehensive
incomeTotal comprehensive
incomeDividends
Reclassified from othercomponents of equity toretained earnings
Share–based paymenttransactions
Total transactions withownersBalance at September 30,
2019

Total

Total

Total equity

8
–

–
–

(4,931)–67,804
4,506

67,804
4,506

(3)

(34)

(948)

(948)

(948)

(3)

(34)

(948)

3,557

3,557

–

–

–

(2,360)(2,360)

(3)

34

30

–

–

–

–

–

35

35

(3)

34

30

(2,325)(2,325)1–(5,849)69,03669,036－ 8 －(Millions of yen)
Equity attributable to owners of parent
Other components ofequityCapitalTreasury
Retained
Translation
surplusstockearnings
adjustments
Cash flowof foreign
hedgesCapitalstock

operations

Balance at April 1, 2020
ProfitOther comprehensive
incomeTotal comprehensive
incomePurchase of treasury stock
Dividends
Reclassified from othercomponents of equity toretained earnings
Share–based paymenttransactions
Total transactions withownersBalance at September 30,
2020

7,790
–

10,755–(956)–

60,797
8,233(4,198)–(5,008)
–

–

–

–

–

132

(1,694)

–

–

–

8,233

132

(1,694)

–
–

–
–

(0)
–

–
(2,754)

–
–

–
–

–

–

–

(126)

–

–

–

103

–

–

–

–

–

103

(0)

(2,880)

–

–

7,790

10,858(956)

66,149(4,066)(6,702)(Millions of yen)
Equity attributable to owners of parent
Other components of equity
FinancialassetsRemeasuremeasured atments offair value
definedthrough otherbenefitcomprehenplans
sive income

Balance at April 1, 2020
ProfitOther comprehensive
incomeTotal comprehensive
incomePurchase of treasury stock
Dividends
Reclassified from othercomponents of equity toretained earnings
Share–based paymenttransactions
Total transactions withownersBalance at September 30,
2020

Total

Total

Total equity

(5)
–

–
–

(9,212)–

69,174
8,233

69,174
8,233

3

(126)

(1,684)(1,684)(1,684)3(126)(1,684)

6,548

6,548

–
–

–
–

–
–

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

–

126

126

–

–

–

–

–

103

103

–

126

126

(2,651)(2,651)(1)–(10,770)

73,07173,071－ 9 －(5) Condensed Consolidated Statements of Cash FlowsThe six months
ended September
30, 2019

The six months
ended September
30, 2020

Millions of yen

Millions of yen

Profit before tax
Profit (loss) before tax from discontinued operations

6,744
480

11,876–

Depreciation and amortization
Impairment loss

1,448
0

1,221
64

116
63

42
3

–

(116)

Decrease (increase) in inventories
Decrease (increase) in trade and other receivables(5,889)(47,704)(9,748)(9,950)

Increase (decrease) in trade, loans and other payables
Other, net

48,818(1,498)

10,593(2,992)

SubtotalInterest and dividends income received

2,579
8

995
4

Interest expenses paid
Income taxes paid

(22)
(3,780)(41)(6,513)

Income taxes refund

1,394

1,948

179

(3,607)

(95)
–

(88)
88

(1,352)95(1,280)15

Purchase of intangible assets
Proceeds from sales of shares of subsidiaries

(107)
–

Proceeds from sales and redemption of investments
Other, net

216
110

(130)
162
–
(122)

Net cash provided by (used in) investing activities
Cash provided by (used in) financing activities(1,134)(1,356)

202
–

9,853
(20,304)–(2,354)(0)(2,754)

Cash provided by (used in) operating activities

Finance income and finance cost
Other non–operating income and expenses
Share of loss (profit) of investments accounted for using equity
methodNet cash provided by (used in) operating activities
Cash provided by (used in) investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment

Net increase (decrease) in short–term loans payable
Repayment of long-term loans payable
Purchase of treasury stock
Cash dividends paid
Other, net

(254)

(220)

(2,406)(13,427)

(163)

(225)

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period(3,525)
16,297(18,615)
22,908Cash and cash equivalents at end of period

12,772

4,292

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents－ 10 －

(6) Notes on Assumptions for Going Concern
Not applicable(7) Notes on Condensed Consolidated Financial Statements
1. Reporting entity
Asahi Holdings, Inc. (hereinafter the “Company”) is a company located in Japan. The Company’s condensed
consolidated financial statements for the six months ended September 30, 2020 comprise the Company andits subsidiaries (hereinafter the “Group”) as well as the interests in its affiliated companies.
For the main activities of the Group, please refer to Note “5. Segment information.”

2. Basis of preparation(1) Statement of compliance with IFRSThe condensed consolidated financial statements of the Group have been prepared based on IAS 34“Interim Financial Reporting.”
Having met the requirements for a Specified Company under the Designated International AccountingStandards, as prescribed in Article 1-2 of the Ordinance on the Terminology, Forms, and Preparation
Methods of Quarterly Consolidated Financial Statements (Cabinet Office Ordinance No. 64 of 2007), theGroup adopts the provisions of Article 93 of the aforementioned rules.
(2) Basis of measurement
The condensed consolidated financial statements of the Group have been prepared based on costs ofacquisition, except for the specified financial instruments that have been measured at fair value.
(3) Functional currency and presentation currency
The condensed consolidated financial statements of the Group are presented in Japanese yen, which isthe functional currency of the Company, and figures less than one million yen are rounded down to thenearest million yen.

－ 11 －

3. Changes in accounting policies
The significant accounting policies adopted for the condensed consolidated financial statements are thesame as those for the consolidated financial statements for the fiscal year ended March 31, 2020, with the
exception of the change described below.
The income tax for the six months ended September 30, 2020 was calculated based on the estimated averageannual effective tax rate.
(Change in the classification for recording interest expenses corresponding to Advanced Trading for
precious metal products)
Each Asahi Refining company, consolidated subsidiaries of the Company, undertakes Advanced Tradingof precious metal products as an added value service incidental to the precious metal refining business.
Commission income obtained from customers in accordance with the forward period is recorded as revenue.
The interest expenses corresponding to such Advanced Trading of precious metal products werepreviously recorded as finance cost, but the method was changed from the first quarter of the fiscal year
ending March 31, 2021 to be recorded as cost of sales.
Furthermore, due to these changes, the “increase (decrease) in trade and other payables” has beenchanged to “increase (decrease) in trade, loans and other payables” in the Condensed Consolidated
Statements of Cash Flows. Furthermore, the change in loans payable procured for such Advanced Tradingis included in “increase (decrease) in trade, loans and other payables” in the Condensed Consolidated
Statements of Cash Flows.
This change is attributed to the change in the funds management system due to the aim to expand
Advanced Trading of precious metal products as a measure to increase income at each Asahi Refining
company and in consideration of the increase in the financial importance of interest expenses corresponding
to this income and the forecast for future increases.
Accordingly, compared to the previous method, cost of sales rose 470 million yen and operating income
fell 470 million yen, but there was no impact on profit before tax, profit, and profit attributable to ownersof parent.
The Condensed Consolidated Statements of Cash Flows during the six months ended September 30, 2020
show an increase of 2,241 million yen in net increase (decrease) in short–term loans payable and respective
declines of 2,287 million yen in increase (decrease) in trade, loans and other payables, 470 million yen infinance income and finance cost, and 516 million yen in interest expenses paid.
There is no impact on basic earnings per share and diluted earnings per share during the six months
ended September 30, 2020.
Such changes in accounting policies are applied retrospectively, and the Consolidated Financial
Statements restate the figures for the quarters in the previous fiscal year and for the previous fiscal year
following retrospective application.
As a result, compared to before the retrospective application, the Condensed Consolidated Statements ofIncome for the six months ended September 30, 2019, show an increase of 1,090 million yen in cost of sales
and a decline of 1,090 million yen in operating income, but there is no impact on profit before tax, profit,and profit attributable to owners of parent.
The Condensed Consolidated Statements of Cash Flows for the six months ended September 30, 2019show an increase of 47,848 million yen in increase (decrease) in trade, loans and other payables andrespective declines of 47,803 million yen in net increase (decrease) in short–term loans payable, 1,090
million yen in finance income and finance cost and 1,045 million yen in interest expenses paid.
There is no impact on basic earnings per share and diluted earnings per share for the six months ended
September 30, 2019.

4. Significant accounting estimates and associated judgements
In preparing condensed consolidated financial statements, the management is required to make judgment,
estimates and assumptions that affect the adoption of accounting policies and the amounts of assets, liabilities,
revenues and expenses. Actual results may differ from such estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. The effect of a change inaccounting estimates is recognized as the accounting period in which such change occurs as well as the－ 12 －

accounting periods to be affected in the future.
The estimates and judgments made by the management that may have material impacts on the figures in
the condensed consolidated financial statements are the same as those for the consolidated financial
statements for the fiscal year ended March 31, 2020.

5. Segment information(1) Overview of reporting segments
The Group’s reporting segments are those Group constituent units for which separate financial
information is obtainable, and which the Board of Directors subjects to regular examination in order todecide the allocation of management resources and evaluate business results.
As a pure holding company, the Company is in charge of overall strategic function for the Group,
whereas operating companies of the Group engage in the precious and rare metals recycling business andthe refining and processing business, industrial waste management and other environmental
preservation business.
Therefore, the Group is composed of product and service segments based on business sectors. The tworeporting segments are the Precious Metals business and the Environmental Preservation business.
Meanwhile, these reporting segments are not aggregated.
The Precious Metals business engages mainly in recycling and selling of precious and rare metals suchas gold, silver, palladium, and platinum, as well as refining and processing of precious metals such as goldand silver.
The main work of the Environmental Preservation business is the collection, transport andintermediate processing of industrial waste, and the manufacture and sale of electric heaters.
The interest expenses corresponding to the Advanced Trading of precious metal products at each Asahi
Refining company, consolidated subsidiaries of the Company, were previously recorded as finance cost, but
the method was changed from the first quarter of the fiscal year ending March 31, 2021 to be recorded ascost of sales.
In addition, the segment information for the six months ended September 30, 2019 also reflects suchchange.
As a result, compared to the figures prior to such change, the operating income by business segment for
the Precious Metals business decreased by 1,090 million yen for the six months ended September 30, 2019,and decreased by 470 million yen for the six months ended September 30, 2020.
In the previous consolidated fiscal year, the Company transferred 60% of all shares of Fuji Medical
Instruments MFG. Co., Ltd. (hereinafter “Fuji Medical Instruments”) to Johnson Health Tech Co., Ltd., acompany listed on the Taiwan Stock Exchange. Consequently, the Company classified the business of Fuji
Medical Instruments under discontinuing operations, and the amounts presented for segment
information for the six months ended September 30, 2019 are amounts from continuing operations fromwhich discontinuing operations have been excluded. Please refer to Note “6. Discontinued Operations” fordetails on discontinued operations.

－ 13 －

(2) Segment revenue and performance
Accounting policies of the reporting segments are the same as those of the Group stated in Note “3.
Changes in accounting policies.”
Revenue and other performance of each reportable segment of the Group are as follows.
For the six months ended September 30, 2019 (from April 1, 2019 to September 30, 2019)
Reporting segment(Millions of yen)

Precious
Metals Business

Environmental
Preservation
Business

49,912

10,002

59,914

1,071

–

7

7

49,912

10,009

6,150

1,824

Adjustment

Consolidated

60,985–60,985

–

7

(7)

–

59,921

1,071

60,993(7)

60,985

7,975

110

8,085

(1,148)

6,937

Total

Other

Subtotal

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

7

Finance costs(136)

Other non–operating income

77

Other non–operating(140)

expensesProfit before tax

6,744(Notes) 1. Intersegment transactions are based on prevailing market prices.
2. Adjustments of operating income by business segment are mainly corporate expenses that are notallocated to each reporting segment.

For the six months ended September 30, 2020 (from April 1, 2020 to September 30, 2020)
Reporting segment(Millions of yen)

Precious
Metals Business

Environmental
Preservation
Business

70,0199,106

79,126––––70,0199,106

11,357

1,702

Total

Adjustment

Consolidated

79,126–

79,126––––

79,126–

79,126–

79,126

13,059116

13,176(1,347)

11,828

Other

Subtotal

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

98

Finance costs
Other non–

(46)
(3)

operating income
Profit before tax

11,876－ 14 －

(Note)Adjustments of operating income by business segment are mainly corporate expenses that are notallocated to each reporting segment.

6. Discontinued operations(1) Outline of discontinued operations
The Company transferred 60% of all shares of Fuji Medical Instruments, which was a consolidated
subsidiary of the Company, to Johnson Health Tech Co., Ltd., a company listed on the Taiwan Stock
Exchange, in the previous fiscal year which was then excluded from the scope of consolidation. Consequently,
profit and loss as well as cash flows relating to Fuji Medical Instruments and its subsidiaries werereclassified as discontinued operations with the discontinued operations concerned displayed in a separate
category.
(2) Discontinued operations performance(Millions of yen)
The six months ended
September 30, 2019

The six months ended
September 30, 2020

Profit or loss of discontinued operations
Revenue
Expense9,173(8,692)––

Profit before tax from discontinued operations
Corporate income tax expense

480
(161)

–
–

Profit from discontinued operations

318–(3) Cash flow from discontinued operations(Millions of yen)
The six months ended

The six months ended

September 30, 2019

September 30, 2020

Cash flow from discontinued operations
Net cash provided by (used in) operating
activities

503–

Net cash provided by (used in) investing
activities(2)–

Net cash provided by (used in) financing
activities

(791)

–

(290)

–

Total

7. Subsequent events
Not applicable－ 15 －