Consolidated Financial Results for the Fiscal Year Ended March 31, 2023
Asahi Holdings, Inc. [IFRS]
April 27, 2023

Stock code:
Shares listed:

5857
Tokyo Stock Exchange - Prime Market

URL:
Representative:

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

For further information please contact:

Kunihiko Chogo, General Manager, Corporate Planning &Communications Department

The Ordinary General Meeting of Shareholders:(Phone) +81–3–6270–1833
June 20, 2023

Filing date of financial statements:
Start of dividend payment:

June 21, 2023
June 5, 2023

Supplementary materials for the financial results:
Investor conference for the financial results:

Yes
Yes (for institutional investors, analysts)(Rounded down to the nearest million yen)

1. Results of the fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)(1) Results of operations(Percentage: Changes relative to corresponding previous period)
OperatingprofitRevenue
The fiscal year ended
March 31, 2023
March 31, 2022

Millions of yen

292,449
192,442%Millions of yen

52.0 19,263
16.8 26,446

Basic earnings per
share

Profit before
tax%

Millions of yen(27.2) 16,052
5.3 26,372

Diluted earnings
per share

Total
Profitattributable to comprehensive
incomeowners of parent

Profit% Millions of yen(39.1) 10,929
0.9 18,735
Profit to equity
attributable toowners of parent

The fiscal year ended
Yen
Yen
%
March 31, 2023
141.19128.72
10.3
March 31, 2022
238.11214.13
18.5(Reference) Share of profit (loss) of investments accounted for using equity method:
Fiscal year ended March 31, 2023
(616) million yen;
Fiscal year ended March 31, 2022
207 million yen%

Millions of yen(41.7) 10,929(27.2) 18,735%

Millions of yen%(41.7) 12,761 (15.9)(27.2) 15,173 (54.6)

Profit before
tax to total
assetsOperatingprofit to revenue

%

%

5.5
9.7

6.6
13.7

(2) Financial Position

As ofMarch 31, 2023
March 31, 2022

Total assets

Total equity

Equity attributableto owners of parent

Equity attributableto owners of parent
ratio

Equity per share
attributable toowners of parent

Millions of yen
287,448
298,387

Millions of yen
106,957
105,137

Millions of yen
106,957
105,137

%
37.2
35.2

Yen
1,395.52
1,336.89(3) Cash flows

The fiscal year ended
March 31, 2023
March 31, 2022

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Millions of yen
36,754
11,103

Millions of yen(3,935)(7,820)Millions of yen(23,818)(6,044)

Cash and cash
equivalents at end of
the fiscal year
Millions of yen
17,9526,127

2. Dividend payments
Dividends per shareFirst
quarter

Secondquarter

Third
quarterYear-end

Annual

Yen

Yen

Yen

Yen

Yen

Total
dividend
payment(annual)Payoutratio(consolidated)

Millions of yen

Dividend
to equity
attributableto owners ofparent(consolidated)%%Year ended March 31, 2022
–
45.00
–
45.00
90.00
7,167
37.8
7.0
Year ended March 31, 2023
–
45.00
–
45.00
90.00
6,987
63.7
6.6
Year ending March 31, 2024
–
45.00
–
45.00
90.00
52.3
(Forecast)(Note)The year-end dividend for the fiscal year ended March 31, 2023 will be finalized at a meeting of the Boardof Directors to be held in May.
3. Forecast (From April 1, 2023 to March 31, 2024)
Revenue
Millions of yen

Six months ending
120,000
September 30, 2023
Year ending March 31, 2024 250,000(Percentage: Changes relative to corresponding previous period)
ProfitOperating
Profit before
Basic earnings
attributable toprofittax
per shareowners of parent% Millions of yen

(9.5)

8,000

(14.5) 19,000% Millions of yen(30.4)

7,800(1.4) 18,500% Millions of yen(23.8)

%

Yen

5,500

(24.6)

71.76

15.2 13,200

20.8

172.23

* Notes(1)
Changes in significant subsidiaries during the current fiscal year: No(2)

Changes in accounting policies and accounting estimates(i) Changes in accounting policies required by IFRS: No(ii) Changes other than (i) above: No(iii) Changes in accounting estimates: No(3)

Number of issued shares (common stock)(i) Number of issued shares at the end of year (including treasury stock)
As of March 31, 2023

79,708,688 shares

As of March 31, 2022

79,708,688 shares(ii) Number of treasury stock at the end of year
As of March 31, 2023

3,065,458 shares

As of March 31, 2022

1,065,437 shares(iii) Averaged number of shares during the period
Year ended March 31, 2023

77,410,371 sharesYear ended March 31, 2022

78,683,537 shares

(Reference) Summary of Nonconsolidated Results
1. Nonconsolidated results of the fiscal year ended March 31, 2023 (From April 1, 2022 to March 31, 2023)(1) Results of operations(Percentage: Changes relative to corresponding previous period)
Net sales

The fiscal year ended
March 31, 2023
March 31, 2022

The fiscal year ended
March 31, 2023
March 31, 2022

Millions of yen

6,181
16,229Operating profit%

Millions of yen(61.9)
15.9

5,285
14,694

Ordinary profit% Millions of yen(64.0)
12.3

5,649
14,972

Profit% Millions of yen(62.3)
20.4

Earnings per share

Diluted earnings per share

Yen
64.45
190.19Yen
64.24
188.95

4,988
14,964%(66.7)(26.2)(2) Financial Position

As ofMarch 31, 2023
March 31, 2022
(Reference)
Shareholders’ equity

Total assets

Net assets

Millions of yen

Millions of yen

105,827
122,730

76,14382,338

As of March 31, 2023: 74,996 million yen

Shareholders’ equity ratio
%

70.9
66.2

Net assets per share
Yen

978.52
1,032.41

As of March 31, 2022: 81,191 million yen* This report is not subject to audit procedures* 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, there might be cases in which actual resultsmaterially differ from forecasts of this report. Please refer to page 2 “1. Overview of Consolidated Operating
Results (1) Consolidated Business Performance for the Year ended March 31, 2023” for the assumptions used andother notes.

【Appendix】

Table of contents of the appendix

1. Overview of Consolidated Operating Results ................................................................................................................ 2(1) Consolidated Business Performance for the Year ended March 31, 2023 ................................................................ 2(2) Consolidated Financial Position and Cash Flows for the Year ended March 31, 2023 ........................................... 2(3) Dividends .................................................................................................................................................................... 3(4) Business and Other Risks .......................................................................................................................................... 3
2. Our Group ........................................................................................................................................................................ 7
3. Basic Concept Regarding Selection of Accounting Standards....................................................................................... 9
4. Consolidated Financial Statements ............................................................................................................................. 10(1) Consolidated Statements of Financial Position ...................................................................................................... 10(2) Consolidated Statements of Income ........................................................................................................................ 12(3) Consolidated Statements of Comprehensive Income .............................................................................................. 13(4) Consolidated Statements of Changes in Equity ...................................................................................................... 14(5) Consolidated Statements of Cash Flows ................................................................................................................. 16(6) Notes on Assumptions for Going Concern ............................................................................................................... 17(7) Notes on Consolidated Financial Statements ......................................................................................................... 17
1. Reporting entity ..................................................................................................................................................... 17
2. Basis of preparation ............................................................................................................................................... 17
3. Significant accounting policies .............................................................................................................................. 17
4. Significant accounting estimates and associated judgements ............................................................................. 17
5. Segment information ............................................................................................................................................. 17
6. Impairment loss ..................................................................................................................................................... 19
7. Per share information ............................................................................................................................................ 21
8. Subsequent events ................................................................................................................................................. 21
5. Others ............................................................................................................................................................................ 22(1) Amounts of sales ....................................................................................................................................................... 22-1-

1. Overview of Consolidated Operating Results(1) Consolidated Business Performance for the Year ended March 31, 2023
① Operating results
During the fiscal year under review, the Japanese economy showed signs of recovery in the overall economic
activity with the easing of restrictions related to the novel coronavirus disease (COVID-19). On the other hand,the prolongation of Russia’s invasion of Ukraine led to increases in prices for energy and raw materials. Under
these conditions, the Group’s results in each business segment were as follows.
Precious Metals businessIn the precious metals recycling business, the volume of gold collected grew in the jewelry sector, and theprecious metals refining business in North America recorded a rise in processing and sales of gold and silver
products, resulting in a year-on-year increase in revenue. Conversely, the price of rhodium used in catalytic
converters fell sharply throughout the fourth quarter, which resulted in price fluctuations that were difficult tohedge and that were the primary cause of the significant year-on-year decline in operating profit.
Environmental Preservation businessIn line with the recovery in industrial production activities, the volume of industrial waste handled by theGroup increased. Despite recording impairment losses on existing property, plant and equipment in association
with the construction of a new incinerator at the Yokohama Plant, operating profit increased year on year. On
the other hand, due to the impact of the transfer of entire shares of the Company’s consolidated subsidiary JW
Glass Recycling Co., Ltd., which was conducted in May 2022, resulted in a decrease in revenue from the same
period of the previous fiscal year.
In addition, the portion of damages borne by the Company in relation to patent infringement litigation
involving former equity method affiliate Fuji Medical Instruments Mfg. Co., Ltd., and the loss on transfer ofshares of said company were recorded in “Other non-operating expenses.”
As a result of the above, revenue during the fiscal year was 292,449 million yen, a year-on-year increase of
100,007 million yen (+52.0 percent). Operating profit was 19,263 million yen, a year-on-year decrease of 7,183
million yen (-27.2 percent). Profit before tax was 16,052 million yen, a year-on-year decrease of 10,319 million
yen (-39.1 percent). Profit was 10,929 million yen, a year-on-year decrease of 7,805 million yen (-41.7 percent).
Profit attributable to owners of parent was therefore 10,929 million yen, a decrease of 7,805 million yen (-41.7
percent) year-on-year. By segment, revenue in the Precious Metals business was 274,205 million yen, a yearon-year increase of 100,330 million yen (+57.7 percent). In the Environmental Preservation business, revenue
was 18,240 million yen, a year-on-year decrease of 326 million yen (-1.8 percent).
② Outlook
The Group will continue to strive to expand earnings and increase corporate value.
Business forecast for the next period is as follows: 250,000 million yen in revenue, 19,000 million yen in
operating profit, 18,500 million yen in profit before tax and 13,200 million yen in profit attributable to ownersof parent.

(2) Consolidated Financial Position and Cash Flows for the Year ended March 31, 2023
As of March 31, 2023, total assets amounted to 287,448 million yen, down 10,939 million yen from the previous
fiscal year end. This was mainly due to an increase of 11,824 million yen in cash and cash equivalents, while
inventories decreased by 22,543 million yen.
Total liabilities amounted to 180,491 million yen, down 12,759 million yen from the previous fiscal year end.
This was due mainly to decreases of 1,687 million yen in trade and other payables, 6,562 million yen in bonds
and loans payable, 1,457 million yen in other financial liabilities and 1,932 million yen in other current
liabilities.
Total equity amounted to 106,957 million yen, up 1,820 million yen from the previous fiscal year end. Thiswas due mainly to an increase of 12,761 million yen in comprehensive income, a decrease of 4,106 million yen-2-used for purchase of treasury stock and a decrease of 6,987 million yen used for dividends.
Net cash provided by operating activities amounted to 36,754 million yen after adding depreciation andamortization of 3,313 million yen to profit before tax of 16,052 million yen, as well as factoring in the decrease
in inventories, the increase in trade and other receivables, income taxes paid, and income taxes refunded.
Net cash used in investing activities amounted to 3,935 million yen due mainly to 2,491 million yen ofproceeds from sales of investments in associates, 4,416 million yen of purchase of property, plant and equipment
and 2,716 million yen of payments into time deposits.
Net cash used in financing activities amounted to 23,818 million yen, mainly due to a net decrease in shortterm loans payable of 19,290 million yen, proceeds from long-term loans payable of 2,000 million yen, proceedsfrom issuance of bonds of 4,924 million yen, purchase of treasury stock of 4,106 million yen, and cash dividends
paid of 6,992 million yen.
As a result, cash and cash equivalents as of March 31, 2023 increased 11,824 million yen from March 31, 2022,
to 17,952 million yen.

(3) Dividends
The Group strives to maintain a stable dividend payout ratio of 40%, without reducing the current level ofannual dividends, while enhancing internal reserves necessary for capital investment and M&A activities for
growth strategies.
Based on the above basic policy, the year-end dividend for the current fiscal year is planned to be 45 yen per
share, and the annual dividend for the current fiscal year combined with the interim dividend is planned to be
90 yen per share. For the next term, we plan to pay an interim dividend of 45 yen and a year-end dividend of
45 yen (annual dividend of 90 yen).

(4) Business and Other Risks
Major risks that could affect the Group’s operating results and financial condition include the following. We
believe these matters could have a significant impact on investor decisions, but the categories below are limited
to those that the Group is currently aware of; and not necessarily all risks are covered here.
① Precious metals prices and currency exchange rates
Precious metals and rare metals, which are the main products of the Group’s Precious Metals business, aretraded on international markets, and their prices fluctuate due to various factors worldwide, includinginternational or regional supply and demand, political, economic and social trends, exchange rates andmonetary policies, among others. The Group therefore hedges basically through forward transactions andprovides timely reports on the status of price fluctuations, etc. for the main previous metals to management, inorder to reduce risk, although the size of fluctuation in precious metals prices and currency exchange rates, theconditions of forward transactions and other factors could affect the Group’s operating results and financial
condition.
② Laws and regulations
In the countries and regions where the Group operates business, various laws and regulations apply regarding
matters such as permission to do business, rules for import/export/transport, commercial transactions, labor,
taxation, intellectual property rights, and environmental preservation. Taking the stance that compliance isimportant, the Group has built a system for centrally managing information about revisions to laws related to
all its business fields and ensuring that this knowledge is communicated without fail to the front lines, andcarefully follows laws, regulations, and social rules. However, in the unlikely event that a situation arises wherelaws, regulations, and social rules could not be followed, or if they change such that business is restricted, it
could affect the Group’s operating results and financial condition.
In the Environmental Preservation business in particular, the Group engages in the collection, transport andtreatment of various types of industrial waste as an enterprise under the Waste Management and Public
Cleansing Act. In addition to that law, the business is regulated by laws such as the Water Pollution Control
Act, the Air Pollution Control Act, and the Sewerage Act. Furthermore, the Group has a license for the collection
and transport of industrial waste in every prefecture and 9 ordinance-designated cities and core cities, for its
disposal in 9 prefectures and 5 ordinance-designated cities, and for the collection and transport of speciallycontrolled industrial waste in every prefecture and 9 ordinance-designated cities and core cities, and for its-3-

disposal in 9 prefectures and 5 ordinance-designated cities. Obtaining such licenses is predicated on strict
compliance with regulations at the regional level, including each prefectural and municipal ordinance and rule.
With society’s interest in environmental issues rising, such legal regulations are tending to tighten. Not only
capital investments as countermeasures to those trends but also the construction, relocation, and renovation of
disposal facilities require construction permits and permission to change. Such occasions may also necessitate
obtaining the consent of nearby residents, which could be difficult to obtain in some cases. Therefore, such legal
regulations and social trends could affect the Group’s operating results and financial condition.
③ Economic fluctuation
Manufacturing industries are among the primary demand industries for the Group’s two business segments:
the Precious Metals business and the Environmental Preservation business. Demand trends in each sector
within these industries are affected by economic conditions in various countries and regions. When demand
from such industries declines due to recession and so on, it could affect the Group’s operating results andfinancial condition. Moreover, in the previous metals recycling business, the Group recycles precious metals
contained in end products such as electronics-related equipment and automobiles, and is therefore affected byconsumption trends. A decrease in personal consumption caused by a decline in the general level of consumption
could therefore affect the Group’s operating results and financial condition.
④ Business environment
The Group’s two business segments, the Precious Metals business and the Environmental Preservation
business, face the possibility of major changes in customer needs due to changes in laws, regulations, andpermits that concern a sector or faster-than-expected shifts overseas by corporate customers. Furthermore,industry reorganization and other major changes in the business environment are possible. The results could
affect the Group’s operating results and financial condition.
⑤ Intensified competition
The Group’s two business segments, the Precious Metals business and the Environmental Preservation
business, face competition from various companies. The Group continues to make efforts to secure competitive
advantages by accurately meeting customer needs through sales efforts and initiatives on technology, products,
and cost responsiveness. Intensified competition from competitor companies, however, can force the Group’s
products and services into harsh price competition. The results could affect the Group’s operating results andfinancial condition.
⑥ Overseas business deployment
Under the slogan, “Building a global company that pursues originality and growth,” one of the Group’s growthstrategies is expansion of its overseas business. In this regard, the Group carries out business in countries andregions in North America, Asia, etc. Political or economic phenomena unfavorable to business, labor disputes
due to differences in labor environment, uncertainty in finding suitable local personnel, conflicts, terrorism, andother social disturbances, and unfair intervention by authorities due to underdeveloped business infrastructure
in a country or region are inherent risks. In the precious metals refining business in North America, we are alsousing the refining business as a base from which to expand value-added services, including new businesses suchas trading and finance. As well as fully analyzing the risks associated with entering these new businesses, wehave put in place a robust control structure, such as by involving the Risk Management Department anddiscussing issues on the Board of Directors, but these risks could crystallize in the event of a deterioration in
the economic environment or in the credit status of our counterparties.
If such situations occur, it could affect the Group’s operating results and financial condition.
⑦ Corporate acquisition
The Group has worked to expand its lines of business and business scale through corporate acquisition and
expects to take a forward-looking approach projects that will contribute to further growth in the future. In orderto maximize the integration effect with target businesses and companies, the Group will attempt to integrate
and unify them with its business strategy and operations. However, if the integration of human resources andassets does not proceed as planned, it is possible that the expected integration and unification effects will not
be realized. The results could affect the Group’s operating results and financial condition.

-4-

⑧ Impairment of goodwill and fixed assets
When the Group acquired a company, it records goodwill arising from the acquisition, as well as various
property, plant and equipment and intangible assets for business use. At the acquisition examination stage, theGroup carries out sufficient surveys from the financial, legal, and human resource perspectives, among others,
but if the acquired company and business do not achieve business results as initially expected due to changes
in the market environment, etc., and the operating results and profitability deteriorate markedly, these assets
may become impaired. If such situations occur, it could affect the Group’s operating results and financial
condition.
⑨ Natural disasters and infectious diseases
Natural disasters such as large earthquakes or typhoons or the outbreak of new infectious diseases could
cause serious damage to the Group’s production, distribution, sales, and information management facilities.
The Group has implemented countermeasures such as business continuity management (BCM), flood
countermeasures, disaster readiness drills, and building an employee safety confirmation system. However,these are not able to completely eliminate damage due to natural disasters or unknown infectious diseases, etc.
Therefore, if these should occur it could affect the Group’s operating results and financial condition.
Also, while the restrictions related to the COVID-19 pandemic were relaxed, if the situation worsens again,
it could have a negative impact on the domestic and overseas economies and markets, which in turn could affect
the Group’s operating results and financial condition.
⑩ Health and safety
The Group works to strengthen its safety management system, and regularly carries out disaster/accident
prevention activities such as holding Safety Promotion Meetings that are also attended by management andtaking necessary measures in order to eliminate occupational and facilities accidents. However, there is no
guarantee that they can be completely prevented or mitigated. Therefore, if a serious occupational or facilities
accident should occur, it could affect the Group’s operating results and financial condition.
⑪ Human resources
Since the Group’s medium- to long-term growth depends on the abilities and experience of individual
employees, the Group is promoting human resource policies that are relevant to the times. In the 9th Mid-term
Business Plan, which ends in the fiscal year ending March 31, 2024, in addition to once again thoroughly
implementing the “ability-based and performance-based” approach, which will stimulate the entire organizationand create a driving force for the company’s growth, we are also promoting work style reforms such as observing“rest intervals” of at least 11 hours before an employee can return to work the next day, and introducing a
flextime system and an optional 4-day working week. However, if the Group is unable to secure high quality
human resources and prepare the necessary talent for taking on challenges at the right time due to increased
speed of business development, it could affect the Group’s operating results and financial condition.
⑫ Research and development
The Group conducts independent research and development and analysis technology development aimed at
effectively carrying out “precious metals recycling” and “detoxifying and recycling of industrial waste.” However,research and development of new technologies is affected by various factors, such as changes in the market
environment, competition, and the ability to commercialize development results. Therefore, it is highly
uncertain whether the expenses used in research and development can be recovered. For this reason, if theresults of research and development are not obtained as initially anticipated, it could affect the Group’s
operating results and financial condition.
⑬ Key intellectual property rights
In order to protect intellectual property rights important to business deployment, the Group carries out
appropriate management. However, unforeseen leaks to outside parties can occur, and complete protection of
intellectual property rights may be impossible in certain regions. Therefore, it may not be possible to effectively
prevent third parties from using the Group’s intellectual property rights to manufacture and sell similar
products and services. Moreover, the Group could be embroiled in a dispute if the products and technologies-5-that it is developing for the future infringe unintentionally on the intellectual property rights of anothercompany, or regarding the handling of workplace inventions in its relationships with employees. The results
could affect the Group’s operating results and financial condition.
⑭ Product quality assurance and product liability
Led by its Quality Assurance Division, the Group has acquired ISO9001 to provide products offering
customers greater confidence and satisfaction, and makes continuous improvements to its quality management
systems and strives to maintain and improve quality. Through such measures, the Group makes every effort
with its product quality assurance system, but if a product produced by the Group causes damages, it could
affect the Group’s operating results and financial condition.
⑮ Environmental protection
Based on its Environmental Policies, the Group carries out various initiatives to protect the global
environment. For example, it has established the Company-wide Environmental Goals (Annual Plan) and an
Environmental Committee is set up at every business site. Through these and other efforts, the Group complies
with environmental laws and regulations, revises its plans, deliberates about environmental education and soforth, and reports to management. However, there is no guarantee that all pollution and other environmental
risk can be completely prevented or mitigated, so if the Group should cause serious pollution of the environment,
it could affect the Group’s operating results and financial condition.
⑯ Climate change
The adoption of the Paris Agreement at the 21st Session of the Conference of the Parties to the United Nations
Framework Convention on Climate Change (COP 21), which has been ratified by every country, has sparked aglobal wave of initiatives aimed at reducing greenhouse gases deemed to cause climate change and global
warming. The Group has made climate change initiatives one of its business priorities, and has set a target for2030 of reducing CO2 emissions derived from energy by 50% from the 2015 level. Additionally, we declared ourgoal to become carbon neutral by 2050, endorsed the recommendations of the Task Force on Climate-Related
Financial Disclosures (TCFD), and have carried out actions in line with their recommendations. As a result, theGroup’s operating results and financial condition could be affected from future climate change impacts if acarbon pricing system that includes a carbon tax were introduced (a transition risk), or if natural disasters were
to become so severe due to extreme weather conditions that the Group’s facilities and other assets were severely
affected and business activities were suspended for a long period of time (a physical risk).
⑰ Information security
PCs and tablets used by the Group use the latest security countermeasures, and we take sufficient measures
to ensure that system faults and information theft or loss do not occur during their installation and operation.
We also implement regular employee training to enhance their IT literacy. However, there is a possibility that
unexpected events could occur such as destruction or tampering of important data or external leaks of
information as a result of infection by a computer virus, hacking damage, and system faults due to software
defects, or a larger than anticipated external attack. Such an event could affect the Group’s operating results
and financial condition.
⑱ Lawsuits and other legal procedures
As the Group carries out business in Japan and overseas, it could be subjected to lawsuits and other legal
procedures. The Group appropriately monitors major lawsuits that have already been instigated or have thepotential to be instigated, and takes countermeasures as needed. However, if the Group becomes a party to suchaction, it might have to pay large damages, etc. The results could affect the Group’s operating results andfinancial condition.

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2. Our Group
Our Group comprises of the holdings company “Asahi Holdings, Inc.,” “Asahi Pretec Corp.,” and 12 otherconsolidated subsidiaries. Our main businesses are Precious Metals business and Environmental Preservation
business. The details are as follows:(1) Precious Metals businessIn the Precious Metals business, we sell precious/rare metal products such as gold, silver, platinum, andpalladium by recycling scrap containing precious metals, etc.
In Japan, Asahi Pretec Corp. collects scraps containing precious/rare metals from the electronics, dentistry,jewelry manufacturing and distribution, and automotive catalyst sectors. At factories around the country, itcollects, separates and refines the scrap and sells high-purity metals to trading companies,
semiconductor/electronic component makers, etc. It also engages in precision cleaning and precious metaldelamination of manufacturing equipment parts from semiconductor/electronic component makers, etc.
Overseas, ASAHI G&S SDN. BHD. in the Malaysia/Singapore region and Asahi Pretec Korea Co., Ltd. inSouth Korea are engaged in the precious metals recycling business. Additionally, Asahi Refining USA Inc. andAsahi Refining Florida LLC in the United States, and Asahi Refining Canada Ltd. in Canada carry out therefining and processing of gold, silver, and other precious metals.

(2) Environmental Preservation business
The main line of our Environmental Preservation business is the collection, transport, and intermediate
treatment of industrial waste.
Asahi Pretec Corp. collects, transports, treats, detoxifies, and recycles waste acid, waste alkali, waste oil,waste liquid, sludge, waste chemicals, and medical hazardous waste from factories, printing plants, hospitals,
schools, and research institutions in various industries. JW Chemitech Co., Ltd. mainly performs the collection,transport, and intermediate treatment of waste liquid generated by factories. Fuji Rozai Co., Ltd. processes
specially controlled industrial waste including dioxin and heavy metals at local governments’ incinerators. It
engages in repair, demolition, and waste brick processing of smelting furnaces for glass manufacturing. It
removes firebricks from smelting furnaces and performs materials recycling and hazardous materials handling.

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[Group Business Organization Chart]
The aforementioned items are shown in the following group business organization chart.

Domestic Bases

North America

Environmental Preservation Business

A sahi Holding s, I nc.

Precious Metals BusinessAsahi Refining
USA Inc.

Asahi Pretec Corp.
Selling recycling scrap containing
precious / rare metals

Asahi Refining
Florida LLC

Asia

ASAHI G&S SDN.BHD.

Asahi Refining
Canada Ltd.

Asahi Pretec
Korea Co., Ltd.

Asahi Depository LLC

Domestic Bases

Asahi Pretec Corp.
Entrustment of industrial waste
treatment

Domestic Bases

Fuji Rozai Co., Ltd.

JW Chemitech Co., Ltd.

Other 1 company

Other*Other 3 companies(Note) * : Consolidated subsidiary-8-3. Basic Concept Regarding Selection of Accounting Standards
We have applied International Financial Reporting Standards (IFRS) from the first quarter of fiscal year ended
March 31, 2017, with the objectives of enhancing our management base for global business development andenabling easier international comparison of financial information in capital markets.

-9-4. Consolidated Financial Statements(1) Consolidated Statements of Financial Position
As ofMarch 31,
2022

As of
March 31,
2023

Millions of yen

Millions of yen

ASSETS
Current assets
Cash and cash equivalents

6,127

17,952

Trade and other receivables
Inventories

151,437
63,398154,046
40,854

Income tax receivables
Other financial assets

3,958
129

1,345
3,609

Other current assets

16,727

20,567

Total current assets

241,778

238,374

43,74842,553

Goodwill
Intangible assets

1,040
712

1,003
1,255

Investments accounted for using equity method
Deferred tax assets

3,657
6,262

–
3,498

229
859

263
429

Non-current assets
Property, plant and equipment

Net defined benefit asset
Financial assets
Other non-current assets

98

69

Total non-current assets

56,60949,073298,387

287,448

Total assets- 10 -

As ofMarch 31,
2022

As of
March 31,
2023

Millions of yen

Millions of yen

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

27,711
108,263

26,02491,494

Income tax payable
Other financial liabilities

950
5,613

210
3,740

Provisions
Other current liabilities

1,608
4,479

1,462
2,547

Total current liabilities
Non-current liabilities

148,626

125,480

Bonds and loans payable
Deferred tax liabilities

42,663576

52,868275

Net defined benefit liability
Other financial liabilities

93
1,289

107
1,704

Other non-current liabilities–

53

Total non-current liabilities

44,62355,010193,250

180,491

7,790

7,790

Capital surplus
Treasury stock

11,955(1,819)12,103(5,925)Retained earnings
Other components of equity

92,353(5,142)

96,319(3,330)Total equity attributable to owners of parent

105,137

106,957

Total equity

105,137

106,957

298,387

287,448

Total liabilities
EquityCapital stock

Total liabilities and equity- 11 -

(2) Consolidated Statements of Income
The fiscal year ended
March 31, 2022

The fiscal year ended
March 31, 2023

Millions of yen

Millions of yen

Revenue
Cost of sales

192,442(157,783)

292,449(262,993)

Gross profit

34,65829,456

Selling, general and administrative expenses
Other operating income(7,701)75(8,138)173(794)(1,611)

207

(616)

Operating profit

26,446

19,263Finance income
Finance costs

619
(890)

466
(797)

Other non-operating income
Other non-operating expenses

196
–

425
(3,304)

Profit before tax

26,372

16,052

Income tax expenses(7,636)(5,123)

Profit18,735

10,929Owners of parent
Non-controlling interests

18,735–

10,929–Profit18,735

10,929238.11141.19214.13128.72Other operating expenses
Share of profit (loss) of investments accounted forusing equity method

Profit attributable to:Earnings per share
Basic earnings per share (Yen)
Diluted earnings per share (Yen)- 12 -

(3) Consolidated Statements of Comprehensive Income

Profit

The fiscal year ended
March 31, 2022

The fiscal year ended
March 31, 2023

Millions of yen

Millions of yen

18,735

10,929

(1)

(0)

93

23

(5)

(0)

87

23

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
Share of other comprehensive income ofinvestments accounted for using equity method
Total items that will not be reclassified to profit
or loss
Items that may be reclassified to profit or loss
Cash flow hedges(5,202)

1,304

Translation adjustments of foreign operations

1,553

503

Total items that may be reclassified to profit orloss(3,649)1,808(3,562)

1,831

Comprehensive income

Other comprehensive income, net of tax

15,173

12,761

Comprehensive income attributable to:
Owners of parent

15,173

12,761––

15,173

12,761

Non-controlling interests
Comprehensive income- 13 -

(4) 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, 2021
ProfitOther comprehensive
incomeTotal comprehensive
incomePurchase of treasury stock
Disposal of treasury stock
Dividends
Reclassified from othercomponents of equity toretained earnings
Share-based paymenttransactions
Total transactions withownersBalance at March 31, 2022

7,790
–

11,952–(957)–

80,604
18,735(2,944)
–

1,454
–

–

–

–

–

1,553

(5,202)–––

18,735

1,553(5,202)

–
–
–

–
258
–

(1,785)214–––(7,080)

–
–
–

–
–
–

–

–

–

93

–

–

–

(255)

708

–

–

–

–

2

(862)

(6,986)

–

–

7,790

11,955(1,819)92,353(1,390)(3,748)(Millions of yen)
Equity attributable to owners of parent
Other components of equity
FinancialassetsRemeasuremeasured atments offair value
definedthrough otherbenefit planscomprehensive income

Balance at April 1, 2021
ProfitOther comprehensive
incomeTotal comprehensive
incomePurchase of treasury stock
Disposal of treasury stock
Dividends
Reclassified from othercomponents of equity toretained earnings
Share-based paymenttransactions
Total transactions withownersBalance at March 31, 2022

Total

Total

Total equity

3
–

–
–

(1,486)–

97,903
18,73597,903
18,735(6)

93(3,562)(3,562)(3,562)(6)

93(3,562)

15,173

15,173

–
–
–

–
–
–

–
–
–

(1,785)472(7,080)(1,785)472(7,080)

–

(93)

(93)

–

–

–

–

–

452

452

–

(93)

(93)

(7,940)(7,940)(3)–(5,142)

105,137

105,137- 14 -

(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, 2022
ProfitOther comprehensive
incomeTotal comprehensive
incomePurchase of treasury stock
Dividends
Changes due to loss ofcontrol of subsidiaries
Increase (decrease) due todiscontinued application ofequity method for equitymethod affiliate
Reclassified from othercomponents of equity toretained earnings
Share-based paymenttransactions
Total transactions withownersBalance at March 31, 2023

7,790
–

11,955–(1,819)–92,353
10,929(1,390)–(3,748)
–

–

–

–

–

503

1,304

–

–

–

10,929

503

1,304

–
–

–
–

(4,106)––(6,987)

–
–

–
–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

23

–

–

–

148

–

–

–

–

–

148

(4,106)(6,964)

–

–

7,790

12,103(5,925)96,319(886)(2,443)(Millions of yen)
Equity attributable to owners of parent
Other components of equity
FinancialassetsRemeasuremeasured atments offair value
definedthrough otherbenefit planscomprehensive income

Balance at April 1, 2022
ProfitOther comprehensive
incomeTotal comprehensive
incomePurchase of treasury stock
Dividends
Changes due to loss ofcontrol of subsidiaries
Increase (decrease) due todiscontinued application ofequity method for equitymethod affiliate
Reclassified from othercomponents of equity toretained earnings
Share-based paymenttransactions
Total transactions withownersBalance at March 31, 2023

Total

Total

Total equity

(3)
–

–
–

(5,142)–

105,137
10,929105,137
10,929

(0)

23

1,831

1,831

1,831

(0)

23

1,831

12,761

12,761

–
–

–
–

–
–

(4,106)(6,987)(4,106)(6,987)

0

–

0

0

0

3

–

3

3

3

–

(23)

(23)

–

–

–

–

–

148

148

3

(23)

(19)

(10,941)(10,941)––(3,330)106,957

106,957- 15 -

(5) Consolidated Statements of Cash FlowsThe fiscal year
ended March 31,
2022

The fiscal year
ended March 31,
2023

Millions of yen

Millions of yen

Profit before tax
Depreciation and amortization

26,372
2,689

16,052
3,313

Impairment loss
Finance income and finance cost

287
1,722

1,338
1,624

Other non-operating income and expenses
Share of loss (profit) of investments accounted for using equity

(196)

1,354

(207)

616

(65)

22,511(37,647)
32,705(1,863)(849)

Cash provided by (used in) operating activities

methodDecrease (increase) in inventories
Decrease (increase) in trade and other receivables
Increase (decrease) in trade, loans and other payables
Other, net(4,320)(4,096)

Subtotal

21,33740,004

111
(87)

269
(134)

Income taxes paid
Income taxes refunded(12,934)
2,675(7,514)
4,129

Net cash provided by (used in) operating activities

Interest and dividend income received
Interest expenses paid

11,10336,754

Cash provided by (used in) investing activities
Payments into time deposits(96)(2,716)

Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment

144(8,403)50(4,416)

Proceeds from sales of property, plant and equipment
Purchase of intangible assets

16
(354)

74
(714)

Proceeds from sales of investments in associates
Other, net

–
873

2,491
1,295

Net cash provided by (used in) investing activities
Cash provided by (used in) financing activities(7,820)(3,935)

Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable(10,664)
13,783(19,290)
2,000

–
172

4,924
–

(1,785)(7,077)(4,106)(6,992)

Proceeds from issuance of bonds
Proceeds from sales of treasury stock
Purchase of treasury stock
Cash dividends paid
Other, net

(473)

(354)

(6,044)(23,818)

Effect of exchange rate change on cash and cash equivalents(1,134)

2,824

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period(3,895)
10,023

11,824
6,127

Cash and cash equivalents at end of period

6,127

17,952

Net cash provided by (used in) financing activities- 16 -

(6) Notes on Assumptions for Going Concern
Not applicable(7) Notes on Consolidated Financial Statements
1. Reporting entity
Asahi Holdings, Inc. (hereinafter the “Company”) is a company located in Japan. The addresses of theCompany’s registered head office and principal offices are available on its website(https://www.asahiholdings.com). The Company’s consolidated financial statements have a fiscal year-end
date of March 31, 2023 and comprise the financial statements of the Company as well as its subsidiaries(the “Group”).
For the main activities of the Group, please refer to Note “5. Segment information.”

2. Basis of preparation(1) Statement of compliance with IFRSThe consolidated financial statements of the Group have been prepared based on IFRS issued by theInternational Accounting Standards Board.
Having met the requirements for a Specified Company under the Designated International
Accounting Standards, as prescribed in Article 1-2 of the Ordinance on the Terminology, Forms, andPreparation Methods of Consolidated Financial Statements (Ordinance of the Ministry of Finance No.
28 of 1976), the Group adopts the provisions of Article 93 of the aforementioned rules.
(2) Basis of measurement
The consolidated financial statements of the Group have been prepared based on costs of acquisition,
except for the specified financial instruments that have been measured at fair value.
(3) Functional currency and presentation currency
The consolidated financial statements of the Group are presented in Japanese yen, which is thefunctional currency of the Company, and figures less than one million yen are rounded down to the nearest
million yen.

3. Significant accounting policies
The significant accounting policies adopted for the consolidated financial statements are the same as thosefor the consolidated financial statements for the fiscal year ended March 31, 2022.

4. Significant accounting estimates and associated judgements
In preparing consolidated financial statements, the management is required to make judgement,
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 in the accounting period in which such change occurs as well as theaccounting periods to be affected in the future.
The judgements, estimates and assumptions made by the management that may have material impacts
on the figures in the consolidated financial statements are the same as those for the consolidated financial
statements for the fiscal year ended March 31, 2022.

5. Segment information(1) Overview of reporting segments
The Group’s business 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- 17 -

and the 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 precious and rare metals suchas gold, silver, palladium, and platinum from scrap containing precious metals, as well as refining andprocessing of precious metals centered on gold and silver. The main work of the Environmental
Preservation business is the collection, transport and intermediate processing of industrial waste.
(2) Segment revenue and performance
Accounting policies of the reporting segments are the same as those of the Group stated in Note “3.
Significant accounting policies.”
Revenue and other performance of each reporting segment of the Group are as follows.
For the fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)
Reporting segment(Millions of yen)

Precious Metals
Business

Environmental
Preservation
Business

173,875

18,566

192,442

–

–

–

–

173,875

18,566

26,596

3,738

Other

Adjustments

Consolidated

192,442–

192,442

–

–

–

–

192,442–

192,442–

192,442

30,334179

30,514(4,068)26,446

Subtotal

Total

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

619

Finance costs
Other non-

(890)
196

operating income
Profit before tax

26,372Others:Depreciation andamortization

1,240

977

2,218

–

2,218

471

2,689

Impairment loss

269

17

287

–

287

–

287

–

–

–

207

207

–

207

Share of loss
(profit) ofinvestments
accounted forusing equity
method(Note)

Adjustments of operating profit by business segment are mainly corporate expenses that are notallocated to each reporting segment.

- 18 -

For the fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)
Reporting segment(Millions of yen)

Precious Metals
Business

Environmental
Preservation
Business274,205

18,240292,446

3

–

–

–

Total

274,205

18,240Operating profit
by business

19,797

3,841

Revenue
External
revenue
Intersegment
revenue

Other

Adjustments

Consolidated

292,449–

292,449

–

–

–

–

292,4463

292,449–

292,449

23,638(786)

22,852(3,588)19,263

Subtotal

Total

segment
Finance income
Finance costs

466
(797)

Other nonoperating income

425

Other nonoperating(3,304)

expensesProfit before tax

16,052Others:Depreciation andamortization

1,966

907

2,874

–

2,874

438

3,313

Impairment loss

525

812

1,338

–

1,338

–

1,338

–

–

–

(616)

(616)

–

(616)

Share of loss
(profit) ofinvestments
accounted forusing equity
method(Note)

Adjustments of operating profit by business segment are mainly corporate expenses that are not allocatedto each reporting segment.

6. Impairment loss
For the fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)
The impairment loss of 287 million yen on property, plant and equipment recognized during the fiscal
year ended March 31, 2022 mainly consists of a loss (269 million yen) for the reduction of the book value ofland and buildings of Asahi Pretec Corp. in the Precious Metals Business segment to the recoverable value
because its production facilities were consolidated and relocated, and thereby some of them were idled, anda loss (16 million yen) for the reduction of the book value of land of JW Glass Recycling Co., Ltd. in theEnvironmental Preservation Business segment to the recoverable value because the land was scheduled tobe sold.
For the fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)
The impairment loss of 1,338 million yen on property, plant and equipment recognized during the fiscal
year ended March 31, 2023 mainly consists of a loss (804 million yen) for the reduction of the book value ofbuildings, machinery and equipment of Asahi Pretec Corp. in the Environmental Preservation Businesssegment to the recoverable value due to their scheduled retirement for the reconstruction of waste
treatment facilities, and a loss (403 million yen) for the reduction of the book value of buildings, machinery- 19 -

and equipment of Asahi Refining Florida LLC in the Precious Metals Business segment to the recoverable
value due to their scheduled retirement as a result of withdrawing from the carbon treatment business.
Impairment losses are recorded in “Other operating expenses” in the Consolidated Statements of Income.

- 20 -

7. Per share information(1) The basis for calculating basic earnings per share(Millions of yen)
Year ended March 31, 2022

Year ended March 31, 2023

18,735

10,929––Profit used for calculation of the basic earnings per
share

18,735

10,929Weighted average number of common stock (Shares)

78,683,537

77,410,371

238.11141.19Profit attributable to owners of parent
Profit not attributable to ordinary shareholders ofparentBasic earnings per share (Yen)(2) The basis for calculating diluted earnings per share(Millions of yen)
Year ended March 31, 2022

Year ended March 31, 2023

18,735

10,929217

265

Profit used for calculation of the diluted earnings per
share

18,953

11,195Weighted average number of common stock (Shares)

78,683,537

77,410,371

9,831,728

9,565,091

88,515,265

86,975,462

214.13128.72

Profit used for calculation of the basic earnings per
share
Adjustments of profit for the year

Increase in number of common stock
Share acquisition rights (Shares)
Weighted average number of diluted common stock(Shares)
Diluted earnings per share (Yen)

8. Subsequent events
Not applicable- 21 -

5. Others(1) Amounts of sales
Year ended March 31, 2022

Year ended March 31, 2023

Amount(Millions of yen)

Year-on-Year(%)

Amount(Millions of yen)

Year-on-Year
(%)

Gold

76,584109.0

169,436

221.2

Silver

5,481

127.9

6,008

109.6

Palladium

46,880127.8

48,750

104.0

Platinum

10,672

145.5

15,623

146.4

Industrial waste treatment

18,566

83.9

18,240

98.2

Other

34,257142.1

34,390

100.4

Total

192,442116.8

292,449

152.0- 22 -