Consolidated Financial Results for the Third Quarter Ended December 31, 2021
Asahi Holdings, Inc. [IFRS]January 28, 2022

Stock code:
Shares listed:

5857
Tokyo Stock Exchange (First Section)

URL:
Representative:

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

For further information please contact:

Kunihiko Chogo, General Manager, Corporate Planning &Communications Department

Filing date of Quarterly Report:(Phone) +81–3–6270–1833
February 10, 2022

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

Investor conference for the financial results:

No(Rounded down to the nearest million yen)
1. Results of the nine months ended December 31, 2021 (From April 1, 2021 to December 31, 2021)(1) Results of operations (cumulative)(Percentage: Changes relative to corresponding previous period)
OperatingprofitRevenue
The nine months ended
December 31, 2021
December 31, 2020

Millions of yen

144,487
120,033%

Millions of yen

20.4 19,318
21.1 17,248

Profit before
tax%

Millions of yen

12.0 19,271
40.8 17,332% Millions of yen

11.2 13,567
43.6 11,961%

Millions of yen

13.4 13,567
86.8 11,961

Basic earnings per share

Diluted earnings per shareYen
172.40151.99Yen
155.31150.97

The nine months ended
December 31, 2021
December 31, 2020

Profitattributable toowners of parent

Profit%Total
comprehensive
incomeMillions of yen%

13.4 12,505 (13.1)
86.8 14,387 153.1(Note) The Company conducted a stock split with a ratio of two-for-one on April 1, 2021. Basic earnings per share anddiluted earnings per share are calculated assuming the stock split had already been carried out at the start of theprevious fiscal year.
(2) Financial Position

As ofDecember 31, 2021
March 31, 2021

Total assets

Total equity

Equity attributable toowners of parent

Equity attributable toowners of parent ratio

Millions of yen
297,037
244,803

Millions of yen
102,469
97,903

Millions of yen
102,469
97,903

34.5
40.0

%

2. Dividend payments
Dividends per share

Year ended March 31, 2021
Year ending March 31, 2022
Year ending March 31, 2022
(Forecast)First quarter

Second quarter

Third quarter

Year-end

Yen

Yen

Yen

Yen

Annual
Yen

–
–

80.00
45.00

–
–

90.00

170.00

45.00

90.00

(Note) Revisions in dividend forecast in the current quarter: No
The Company conducted a stock split with a ratio of two-for-one on April 1, 2021. The amounts of dividends per
share for the year ended March 31, 2021 are the actual amounts before the stock split. The amounts for theyear ending March 31, 2022 and the year ending March 31, 2022 (Forecast) are the figures after the stock split.

3. Forecast (From April 1, 2021 to March 31, 2022)
Revenue
Millions of yen

Year ending March 31, 2022 190,000(Percentage: Changes relative to corresponding previous period)
ProfitOperating
Profit before
Basic earnings
attributable toprofittax
per shareowners of parent% Millions of yen

15.3

26,000% Millions of yen

3.5

26,000% Millions of yen(0.5) 18,200%(29.3)

Yen

231.27(Note) Revisions in forecast in the current quarter: No* Notes(1)
Changes in significant subsidiaries during the period: 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 quarter end (including treasury stock)
As of December 31, 2021

79,708,688 shares

As of March 31, 2021

79,708,688 shares(ii) Number of treasury stock at the quarter end
As of December 31, 2021

1,065,405 shares

As of March 31, 2021

1,011,774 shares(iii) Averaged number of shares during the period (quarterly cumulative period)
Nine months ended December 31, 2021

78,696,714 shares

Nine months ended December 31, 2020
78,697,158 shares(Note) The Company conducted a stock split with a ratio of two-for-one on April 1, 2021. Number of issued
shares at the end of year, number of treasury stock at the end of year, and averaged number ofshares during the period are calculated assuming the stock split had already been carried out at
the start of the previous fiscal year.
* 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, there might be cases in which actual resultsmaterially differ from forecasts of this report. Please refer 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(2) Consolidated Financial Position and Cash Flows for the Nine Months Ended December 31, 2021 ........................ 2(3) Consolidated Performance Forecasts........................................................................................................................... 3
2. Condensed Consolidated Financial Statements .............................................................................................................. 4(1) Condensed Consolidated Statements of Financial Position ....................................................................................... 4(2) Condensed Consolidated Statements of Income for the Nine Months Ended December 31, 2021 ........................... 6(3) Condensed Consolidated Statements of Comprehensive Income for the Nine Months Ended December 31, 2021 7(4) Condensed Consolidated Statements of Changes in Equity....................................................................................... 8(5) Condensed Consolidated Statements of Cash Flows ................................................................................................ 10(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. Significant accounting policies ................................................................................................................................ 11
4. Significant accounting estimates and associated judgements ............................................................................... 11
5. Segment information ............................................................................................................................................... 12
6. Subsequent events ................................................................................................................................................... 13− 1 −1. Qualitative Information(1) Consolidated Business Performance
The Japanese economy during the nine months ended December 31, 2021, saw signs of improvement,
primarily in the non-manufacturing sector, due to factors such as the easing of the impact of the novel
coronavirus disease (COVID-19). However, the situation continues to be uncertain as a result of the resurgenceof COVID-19 through the end of 2021, in addition to slow economic recovery due to rising crude oil and raw
material prices. Under these conditions, the Group’s results in each business segment were as follows.
Precious Metals businessIn the precious metals recycling business in Japan, South Korea, and Malaysia, revenue and operating profit
increased from the same period of the previous fiscal year thanks to the rise in precious metal prices andincreased sales volume of precious metals. Also, in the precious metals refining business in North America,
revenue declined, and operating profit rose from the same period of the previous fiscal year due to increases inprocessing and sales volumes for products utilizing metals despite a decrease in the volume of metallic raw
materials received. As a result, revenue and operating profit in this segment increased from the same period of
the previous fiscal year.
Environmental Preservation businessTransactions for semiconductor/electronic component-related waste liquid and medical-related waste
continued to be brisk. In addition, in line with the recovery of economic activity in Japan, disposal volume foralmost all industrial waste fields increased from the same period of the previous fiscal year. However, owing to
the removal of INTER CENTRAL, INC. from the scope of consolidation at the end of the previous fiscal year
and other factors, revenue and operating profit in this segment decreased from the same period of the previous
fiscal year.
As a result of the above, revenue during the nine months ended December 31, 2021 was 144,487 million yen,a year-on-year increase of 24,454 million yen (+20.4 percent). Operating profit was 19,318 million yen, a yearon-year increase of 2,069 million yen (+12.0 percent). Profit before tax was 19,271 million yen, a year-on-yearincrease of 1,938 million yen (+11.2 percent). Profit was 13,567 million yen, a year-on-year increase of 1,606
million yen (+13.4 percent). Profit attributable to owners of parent for the period was therefore 13,567 million
yen, an increase of 1,606 million yen (+13.4 percent) year-on-year. By segment, revenue in the Precious Metals
business was 130,974 million yen, a year-on-year increase of 25,393 million yen (+24.1 percent). In theEnvironmental Preservation business, revenue was 13,513 million yen, a year-on-year decrease of 939 million
yen (-6.5 percent).

(2) Consolidated Financial Position and Cash Flows for the Nine Months Ended December 31, 2021
As of December 31, 2021, total assets amounted to 297,037 million yen, up 52,233 million yen from theprevious fiscal year end. This was due mainly to a decrease of 3,025 million yen in cash and cash equivalents, adecrease of 11,589 million yen in inventories, a decrease of 3,125 million yen in deferred tax assets, an increaseof 65,648 million yen in trade and other receivables, an increase of 3,931 million yen in other current assets
and an increase of 2,424 million yen in property, plant and equipment.
Total liabilities amounted to 194,567 million yen, up 47,668 million yen from the previous fiscal year end.
This was due mainly to a decrease of 5,363 million yen in income tax payable, a decrease of 3,637 million yen inother current liabilities and an increase of 57,113 million yen in bonds and loans payable.
Total equity amounted to 102,469 million yen, up 4,565 million yen from the previous fiscal year end. Thiswas due mainly to an increase of 12,505 million yen in comprehensive income and a decrease of 7,080 million
yen used for dividends.
As a result, the equity attributable to owners of parent ratio changed to 34.5%, from 40.0% at the end of theprevious fiscal year.
Net cash provided by operating activities amounted to 14,930 million yen due mainly to 19,271 million yen of
profit before tax, 1,990 million yen of depreciation and amortization, 11,397 million yen of decrease ininventories, 61,825 million yen of increase in trade and other receivables, 59,068 million yen of increase intrade, loans and other payables, 12,854 million yen of income taxes paid and 2,693 million yen of income taxes− 2 −refunded.
Net cash used in investing activities amounted to 4,109 million yen due mainly to 4,563 million yen ofpurchase of property, plant and equipment.
Net cash used in financial activities amounted to 13,889 million yen due mainly to 4,816 million yen of net
decrease in long- and short-term loans payable, 1,785 million yen of purchase of treasury stock and 7,070
million yen of cash dividends paid.
As a result, cash and cash equivalents as of December 31, 2021 decreased 3,025 million yen from March 31,
2021, to 6,997 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, 2022 announced in the “Consolidated Financial Results for the Fiscal Year
Ended March 31, 2021” made public on April 27, 2021.

− 3 −2. Condensed Consolidated Financial Statements(1) Condensed Consolidated Statements of Financial Position
As ofMarch 31,
2021

As of
December 31,
2021

Millions of yen

Millions of yen

ASSETS
Current assets
Cash and cash equivalents

10,0236,997

Trade and other receivables
Inventories

100,775
63,515

166,423
51,926

Income tax receivables
Other financial assets

2,833
2,169

1,593
534

Other current assets

12,644

16,576

Total current assets

191,961

244,051

37,90440,328Goodwill
Intangible assets

1,040
697

1,040
680

Investments accounted for using equity method
Deferred tax assets

3,544
8,392

3,636
5,266

Net defined benefit asset
Financial assets

165
1,051

294
1,075

Non-current assets
Property, plant and equipment

Other non-current assets

44

662

Total non-current assets

52,841

52,985244,803

297,037

Total assets− 4 −As ofMarch 31,
2021

As of
December 31,
2021

Millions of yen

Millions of yen

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

26,46579,337

27,386
121,276

Income tax payable
Other financial liabilities

5,914
1,247

550
806

Provisions
Other current liabilities

1,601
5,002

967
1,364

Total current liabilities
Non-current liabilities

119,568

152,352

Bonds and loans payable
Deferred tax liabilities

25,501
968

40,675471

Net defined benefit liability
Other financial liabilities

106
754

90
977

27,331

42,214

Total liabilities
EquityTotal non-current liabilities

146,899

194,567

Capital stock
Capital surplus

7,790
11,952

7,790
11,955

Treasury stock
Retained earnings(957)
80,604(1,819)87,185

Other components of equity(1,486)(2,642)

Total equity attributable to owners of parent

97,903

102,469

Total equity
Total liabilities and equity− 5 −97,903

102,469

244,803

297,037

(2) Condensed Consolidated Statements of Income for the Nine Months Ended December 31, 2021
The nine months
ended December 31,
2020

The nine months
ended December 31,
2021

Millions of yen

Millions of yen

Revenue
Cost of sales

120,033(97,474)

144,487(119,478)

Gross profit

22,55925,009Selling, general and administrative expenses
Other operating income(5,221)81(5,719)
61

(372)

(219)

202

186

Operating profit

17,24819,318Finance income
Finance costs

155
(67)

283
(525)

–
(3)

195
–

Profit before tax

17,332

19,271

Income tax expenses(5,371)(5,703)

Profit11,961

13,567

Owners of parent
Non-controlling interests

11,961–

13,567–

Profit11,961

13,567151.99172.40150.97155.31Other operating expenses
Share of profit (loss) of investments accounted forusing equity method

Other non-operating income
Other non-operating expenses

Profit attributable to:Earnings per share
Basic earnings per share (Yen)
Diluted earnings per share (Yen)− 6 −(3) Condensed Consolidated Statements of Comprehensive Income for the Nine Months Ended
December 31, 2021
The nine months
ended December 31,
2020

The nine months
ended December 31,
2021

Millions of yen

Millions of yen

Profit11,961

13,567

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

(77)

94

Share of other comprehensive income ofinvestments accounted for using equity method

2(4)Total items that will not be reclassified to profit
or loss

(71)

88

2,219
278

(1,546)396

2,498(1,150)2,426(1,061)

14,387

12,505

Owners of parent
Non-controlling interests

14,387–

12,505–Comprehensive income

14,387

12,505

Items that may be reclassified to profit or loss
Cash flow hedges
Translation adjustments of foreign operations
Total items that may 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, 2020
ProfitOther comprehensive
incomeTotal comprehensive
incomePurchase of treasury stock
Dividends
Reclassified from othercomponents of equity toretained earnings
Share-based paymenttransactions
Total transactions withownersBalance at December 31,
2020

7,790
–

10,755–(956)–

60,797
11,961(4,198)–(5,008)
–

–

–

–

–

278

2,219

–

–

–

11,961

278

2,219

–
–

–
–

(0)
–

–
(5,902)

–
–

–
–

–

–

–

(77)

–

–

–

–

–

–

154

–

–

154

(0)

(5,979)

–

–

7,790

10,909(956)

66,779(3,919)(2,788)(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 December 31,
2020

Total

Total

Total equity

(5)
–

–
–

(9,212)–

69,174
11,961

69,174
11,961

5

(77)

2,426

2,426

2,426

5

(77)

2,426

14,387

14,387

–
–

–
–

–
–

(0)
(5,902)(0)(5,902)

–

77

77

–

–

–

–

–

154

154

–

77

77

(5,748)(5,748)0–(6,708)77,81477,814− 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, 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 December 31,
2021

7,790
–

11,952–(957)–

80,604
13,567(2,944)
–

1,454
–

–

–

–

–

396

(1,546)–––

13,567396(1,546)

–
–
–

–
258
–

(1,785)214–––(7,080)

–
–
–

–
–
–

–

–

–

94

–

–

–

(255)

708

–

–

–

–

2

(862)

(6,985)

–

–

7,790

11,955(1,819)87,185(2,547)(92)(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, 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 December 31,
2021

Total

Total

Total equity

3
–

–
–

(1,486)–

97,903
13,567

97,903
13,567(6)

94(1,061)(1,061)(1,061)(6)

94(1,061)

12,505

12,505

–
–
–

–
–
–

–
–
–

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

–

(94)

(94)

–

–

–

–

–

452

452

–

(94)

(94)

(7,939)(7,939)(2)–(2,642)

102,469

102,469− 9 −(5) Condensed Consolidated Statements of Cash FlowsThe nine months
ended December
31, 2020

The nine months
ended December
31, 2021

Millions of yen

Millions of yen

17,332
1,870

19,271
1,990

Impairment loss
Finance income and finance cost

58
63

18
845

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

3

(195)

Cash provided by (used in) operating activities
Profit before tax
Depreciation and amortization

methodDecrease (increase) in inventories

(202)

(186)

(17,417)

11,397

Decrease (increase) in trade and other receivables
Increase (decrease) in trade, loans and other payables(18,544)
21,570(61,825)
59,068Other, net(8,103)(5,294)

Subtotal(3,369)25,090

4
(58)

108
(107)

Income taxes paid
Income taxes refunded(9,338)
1,948(12,854)
2,693

Net cash provided by (used in) operating activities(10,812)

14,930Interest and dividend income received
Interest expenses paid

Cash provided by (used in) investing activities
Payments into time deposits

(88)

(96)

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

88(4,013)144(4,563)

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

43
(178)

16
(258)

Proceeds from sales of shares of subsidiaries
Other, net

162
(509)

–
648

Net cash provided by (used in) investing activities
Cash provided by (used in) financing activities(4,495)(4,109)Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable

27,049–(18,600)
13,783

Repayment of long-term loans payable
Proceeds from sales of treasury stock(20,304)––
172

Purchase of treasury stock
Cash dividends paid

(0)(5,896)(1,785)(7,070)

Other, net

(330)

(390)

Net cash provided by (used in) financing activities

516(13,889)

(402)

43

(15,193)
22,908(3,025)
10,023

7,714

6,997

Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period− 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 nine months ended December 31, 2021 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 Complying with Designated International
Accounting Standards, as prescribed in Article 1-2 of the Regulation on the Terminology, Forms, andPreparation Methods of Quarterly Consolidated Financial Statements (Cabinet Office Order No. 64 of
2007), the Group 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.

3. Significant 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, 2021.
The income tax for the nine months ended December 31, 2021 was calculated based on the estimatedaverage annual effective tax rate.

4. Significant accounting estimates and associated judgements
In preparing condensed 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 judgement, estimates and assumptions 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, 2021.

− 11 −

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 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 precious and rare metals such as
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 andintermediate 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 nine months ended December 31, 2020 (from April 1, 2020 to December 31, 2020)
Reporting segment(Millions of yen)

Precious
MetalsBusiness

Environmental
Preservation
Business

Subtotal

105,581

14,452120,033

–

–

–

–

Total

105,581

14,452

Operating profit
by business

16,214

2,837

Revenue
External
revenue
Intersegment
revenue

Other

Total

Adjustment

Consolidated

120,033–

120,033

–

–

–

–

120,033–

120,033–

120,033

19,051

202

19,253(2,005)

17,248segment
Finance income
Finance costs

155
(67)

Other nonoperating(3)

expensesProfit before tax(Note)

17,332Adjustments of operating profit by business segment are mainly corporate expenses that are notallocated to each reporting segment.

− 12 −

For the nine months ended December 31, 2021 (from April 1, 2021 to December 31, 2021)
Reporting segment(Millions of yen)

Precious
MetalsBusiness

Environmental
Preservation
Business

Subtotal

130,974

13,513

144,487

–

–

–

–

130,974

13,513

19,383

2,713

Other

Total

Adjustment

Consolidated

144,487–

144,487

–

–

–

–

144,487–

144,487–

144,487

22,097

186

22,283(2,964)

19,318

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

283

Finance costs
Other non-

(525)
195

operating income
Profit before tax(Note)

19,271

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

6. Subsequent events
Not applicable− 13 −