Consolidated Financial Results for the Third Quarter Ended December 31, 2016
Asahi Holdings, Inc. [IFRS]
February 1, 2017

Stock code:
Shares listed:

5857
Tokyo Stock Exchange (First Section)

URL:
Representative:

http://www.asahiholdings.com
Mitsuharu Terayama, President & CEO

For further information please contact:

Koji Sasaya, Human Resources and General Administration
Department, Corporate Planning & Communications
Department General Manager(Phone) +81-3-6270-1833

Filing date of Quarterly Report:
Start of dividend payment:

February 13, 2017–

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

No
No(Rounded down to the nearest million yen)

1. Results of the nine months ended December 31, 2016 (From April 1, 2016 to December 31, 2016)(1) Results of operations (cumulative)(Percentage: Changes relative to corresponding previous period)
OperatingincomeProfit before
tax

ProfitProfitattributable toowners of parent

Total
comprehensive
incomeMillions of yen %Millions of yen %Millions of yen %Millions of yen %Millions of yen %Revenue
The nine months ended
December 31, 2016
December 31, 2015

Millions of yen%

78,453 (14.5)
91,809 −8,079 (0.9)
8,155 −

7,874
8,085

(2.6)
−

5,680 4.4
5,439 −

Basic earning per share

Diluted earning per share

Yen
171.08162.73Yen−−

The nine months ended
December 31, 2016
December 31, 2015

5,577 4.5
5,338 −

4,650
4,669

(2) Financial Position

As ofDecember 31, 2016
March 31, 2016

Total assets

Total equity

Equity attributable toowners of parent

Equity attributable toowners of parent ratio

Millions of yen
96,013
101,599

Millions of yen
51,692
48,988Millions of yen
51,195
48,591

53.3
47.8

%

2. Dividend payments
Dividends per share

Year ended March 31, 2016
Year ending March 31, 2017
Year ending March 31, 2017
(Forecast)First quarter

Second quarter

Third quarter

Year-end

Annual

Yen

Yen
30.00
30.00

Yen
−
−

Yen
30.00

Yen
60.00

30.00

60.00

−
−

3030.00.00(Note) Revisions in dividend forecast in the current quarter: No

(0.4)
−

3. Forecast (From April 1, 2016 to March 31, 2017)(Percentage: Changes relative to corresponding previous period)
Operating
Profit before Profit attributable to
Basic earning
owners of parent
per share
incometax

RevenueYear ending March 31, 2017

Millions of yen%

Millions of yen%

110,000−

10,000−%Millions of yen

10,000Millions of yen

%

Yen

6,600

−

202.46−(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: 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 shares)
As of December 31, 201636,254,344 shares

As of March 31, 201636,254,344 shares(ii) Number of treasury shares at the quarter end
As of December 31, 2016

3,654,887 shares

As of March 31, 2016

3,654,607 shares(iii) Averaged number of shares during the period (quarterly cumulative period)
Nine months ended December 31, 2016

32,599,583 shares

Nine months ended December 31, 2015

32,803,707 shares*Indication regarding the situation of quarterly review procedures
These financial results are not subject to the quarterly review procedures pursuant to the Financial
Instruments and Exchange Act; the procedures for reviewing quarterly financial statements pursuant to the
Financial Instruments and Exchange Act are in progress at the time of disclosure of these financial results.
*Statement regarding the proper use of financial forecasts and other special remarks(IFRS adoption)
The Group has adopted IFRS starting from the three months ended June 30, 2016. For details about thedifferences between IFRS and Japanese GAAP with respect to financial figures, please refer to “3. Condensed
Consolidated Financial Statements (7) Notes on Condensed Consolidated Financial Statements 7. First-time
Adoption” on page 15 of the appendix of the consolidated financial results.
(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, these 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, 2016.......

3(3) Consolidated Performance Forecasts .......................................................................................................

3

2. Notes Regarding Summary Information ......................................................................................................

3(1) Changes in important subsidiaries during the current quarter............................................................. 3(2) Changes in accounting policies, accounting estimates ........................................................................... 3
3. 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, 2016 ......... 6(3) Condensed Consolidated Statements of Comprehensive Income for the nine months ended
December 31, 2016 ..................................................................................................................................... 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............................................................................................................ 12
4. Significant accounting estimates and associated judgements .......................................................... 12
5. Segment information ........................................................................................................................... 13
6. Subsequent events ............................................................................................................................... 14
7. First-time adoption .............................................................................................................................. 15−

1 −1. Qualitative Information(1) Consolidated Business Performance
The Japanese economy registered moderate recovery during the third quarter of the current fiscal year
(April 1, 2016 through December 31, 2016), backed by improvements in corporate earnings and employment
situation, although personal consumption lacked vigor. The slight upward trend is expected to continue in
future. However, a global sense of uncertainty – brought about by the impact of the Brexit issue on politics
and economy, measures to be adopted by U.S. President Trump after he assumes power, and deceleration of
emerging economies including China, among others – has cast a shadow on the prospects of Japanese
economy. Under these economic conditions, the group’s results in each business segment were as follows.
Precious metal business
Volume of collection in the precious metals recycling business was as follows. In the electronics sector,
sustenance of current customers and development of new customers in the E-scrap business and precision
cleaning businesses led to an increase in the volume of collection of gold from that of the same period a year
earlier despite the continued contraction of the domestic market. In the dental sector, amidst the amount ofprecious metals used for dental materials declining, the volume of collection of gold and palladium remainedat the same level as in the same period last year. In the jewelry sector, the impact of continued drop in thevolume of distribution in the purchasing market resulted in lower year-on-year volume of collection of goldand platinum. In the automotive catalyst sector, the volume of collection of platinum and palladium increased
from the same period a year earlier despite the continued decline in the number of domestic scrapped vehicles.
The average price of precious metals for gold, palladium and platinum was lower than that of the same perioda year before. The average price of silver was higher compared with the same period last year.
As for gold and silver refining business in North America, the unit price for commissioned refining businessremained at a low level due to continued slowdown of related industries.
Environmental preservation businessAlthough the volume of industrial waste discharged in Japan is on a downward trend, the overall volume
handled remained solid as group companies focused on developing new customers and obtaining contracts bycapitalizing on their characteristics and group networks.
Life & health businessIn the health care equipment sectors, overall sales of major massage chairs and other products remainedsluggish amidst weak personal consumption and other factors despite efforts to expand overseas sales and thesales of small-sized massage chairs, hearing aids, and electrolytic hydrogen water ionizers, among others. As
for fire-fighting equipment, business remained strong thanks in part to an increase in building construction
projects in the metropolitan area.
As a result of the above, revenue during the third cumulative quarter of the current fiscal year was 78,453
million yen, a year-on-year decrease of 13,356 million yen (-14.5 percent). Operating income was 8,079 million
yen, a decrease of 76 million yen (-0.9 percent) year-on-year. Profit before tax was 7,874 million yen, a year-onyear decrease of 211 million yen (-2.6 percent). Profit was 5,680 million yen, a year-on-year increase of 240
million yen (+4.4 percent). Profit attributable to owners of parent for the period was therefore 5,577 million
yen, an increase of 238 million yen (+4.5 percent) year-on-year. By segment, revenue in the precious metalbusiness was 48,973 million yen, a year-on-year decrease of 12,751 million yen (-20.7 percent). In theenvironmental preservation business, revenue was 11,827 million yen, and increase of 350 million yen (+3.1
percent) year-on-year. Revenue in the life & health business was 17,716 million yen, down 964 million yen(-5.2 percent) year-on-year.
Figures stated in these financial results are presented on the basis of the International Financial ReportingStandards (IFRS). Figures for the nine months ended December 31, 2015 and the full-year figures for theprevious fiscal year have been presented on the basis of IFRS through the reclassification of the JGAAP-based
figures disclosed in the previous fiscal year.

−

2 −(2) Consolidated Financial Position and Cash Flows for the nine months ended December 31, 2016
As of December 31, 2016, total assets amounted to 96,013 million yen, down 5,585 million yen from theprevious fiscal year end. This was due mainly to the decrease of 7,908 million yen in cash and cash
equivalents.
Total liabilities amounted to 44,320 million yen, down 8,290 million yen from the previous fiscal year end.
This was due mainly to the decrease of 4,355 million yen in trade and other payables.
Total equity amounted to 51,692 million yen, up 2,704 million yen from the previous fiscal year end. Thiswas due mainly to the recording of 4,650 million yen in comprehensive income.
As a result, the equity attributable to owners of parent ratio changed to 53.3%, from 47.8% at the end of theprevious fiscal year.
Net cash used in operating activities amounted to 2,770 million yen due mainly to 7,874 million yen of profit
before tax , 1,738 million yen of depreciation and amortization, 2,370 million yen of increase in inventories,
4,327 million yen of decrease in trade and other payables, and 4,874 million yen of income taxes paid .
Net cash used in investing activities amounted to 2,165 million yen due mainly to 2,093 million yen ofpurchase of property, plant and equipment.
Net cash used in financial activities amounted to 2,896 million yen due mainly to 918 million yen of net
decrease in loans payable, and 1,953 million yen of cash dividends paid.
As a result, cash and cash equivalents as of December 31, 2016 decreased 7,908 million yen from March
31, 2016, to 8,656 million yen.

(3) Consolidated Performance Forecasts
Consolidated performance forecast for the fiscal year have not changed from the forecast announced on May
10, 2016.

2. Notes Regarding Summary Information(1) Changes in important subsidiaries during the current quarter
Not applicable(2) Changes in accounting policies, accounting estimates
Not applicable−3 −3. Condensed Consolidated Financial Statements(1) Condensed Consolidated Statements of Financial Position
As ofApril 1, 2015
(Date oftransition to
IFRS)Millions of
yen

As of
March 31,
2016

As of
December 31,
2016

Millions ofyenMillions ofyen

ASSETS
Current assets
Cash and cash equivalents

10,841

16,5648,656

Trade and other receivables
Inventories

15,851
15,817

14,64415,09017,513
17,486

Income tax receivables
Other financial assets

2,506
674

2,520
105

826
275

Other current assets

930

811

690

46,622−

49,737−45,449109

46,622

49,73745,558Property, plant and equipment
Goodwill

33,663
21,737

31,78816,922

31,871
15,907

Intangible assets
Deferred tax assets

906
1,291

969
1,381
−

893
953

Subtotal
Non-current assets held for sale
Total current assets
Non-current assets

Net defined benefit asset
Financial assets

154
807

771

136
671

Other non-current assets

13

27

20

Total non-current assets

58,57351,86150,455

105,195

101,599

96,013

Total assets−

4 −As ofApril 1, 2015
(Date oftransition to
IFRS)Millions of
yen

As of
March 31,
2016

As of
December 31,
2016

Millions ofyenMillions ofyen

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

11,787
26,441

15,125
7,115

10,770
6,572

Income tax payable
Other financial liabilities

2,111
46

2,012
187

414
257

Provisions
Other current liabilities

1,259
3,638

1,522
2,953

1,234
1,782

Total current liabilities
Non-current liabilities

45,28628,917

21,031Loans payable
Deferred tax liabilities

6,550
2,061

20,503
1,582

20,622
1,643

126
72

140
874

Net defined benefit liability
Other financial liabilities
Other non-current liabilities

0

142
1,465
−

Total non-current liabilities

8,810

23,69323,28954,096

52,61044,320Total liabilities
EquityCapital stock

8

4,480

4,480

4,480

Capital surplus
Treasury stock

6,116(5,159)6,112(5,371)

6,123(5,371)Retained earnings
Other components of equity

44,999346

45,845(2,476)

49,607(3,644)50,783

48,591

51,195

Total equity attributable to owners ofparentNon-controlling interests
Total equity
Total liabilities and equity

−

5 −

315

396

497

51,09848,98851,692

105,195

101,599

96,013

(2) Condensed Consolidated Statements of Income for the nine months ended December 31, 2016
The nine months
ended December 31,
2015

The nine months
ended December 31,
2016

Millions of yen

Millions of yen

Revenue
Cost of sales

91,809(71,814)78,453(59,473)

Gross profit
Selling, general and administrative expenses

19,994(11,573)

18,979(11,371)

Other operating income
Other operating expenses

96
(362)

662
(191)

Operating income

8,155

8,079

Finance income
Finance cost

27
(97)

10
(215)

Profit before tax
Income tax expenses

8,085(2,646)

7,874(2,194)

Profit

5,439

5,680

Profit attributable to:
Owners of parent

5,338

5,577

101

103

5,439

5,680

162.73171.08Non-controlling interests
ProfitEarning per share
Basic earning per share (Yen)−6 −(3) Condensed Consolidated Statements of Comprehensive Income for the nine months ended
December 31, 2016
The nine months
ended December 31,
2015

The nine months
ended December 31,
2016

Millions of yen

Millions of yen

Profit

5,439

5,680

Financial assets measured at fair value
through other comprehensive income

15

(5)

Remeasurements of defined benefit plans

(1)

121

Total items that will not be reclassified to profit
or loss

13

115

Cash flow hedges
Translation adjustments of foreign operations

(160)
(622)

61
(1,207)

Total items that will be reclassified to profit or
loss

(782)

(1,145)

Other comprehensive income
Items that will not be reclassified to profit or loss

Items that will be reclassified to profit or loss

Other comprehensive income, net of tax
Comprehensive income(769)(1,029)

4,669

4,650

4,575
94

4,549
100

4,669

4,650

Comprehensive income attributable to:
Owners of parent
Non-controlling interests
Comprehensive income−

7 −(4) Condensed Consolidated Statements of Changes in Equity(Millions of yen)
Equity attributable to owners of parent

Capitalstock

Balance at April 1, 2015
ProfitOther comprehensive
incomeTotal comprehensive
incomePurchase of treasury stock
Disposal of treasury stock
Changes in ownershipinterests in subsidiaries
that do not result in loss ofcontrol
Dividends
Lapse of subscription rights
to shares
Reclassified from othercomponents of equity toretained earnings
Total transactions withownersBalance at December 31, 2015

CapitalsurplusTreasurystock

Retainedearnings

Other components ofequityTranslation
adjustments Cash flowof foreign
hedgesoperations

4,480
−

6,116
−

(5,159)−44,999
5,338

−
−

313
−

−

−

−

−

(614)

(160)

−

−

−

5,338

(614)

(160)

−
−

−
40

(0)
127

−
−

−
−

−
−

−

−

−

−

−

−

−

−

−

(1,966)

−

−

−

(44)

−

44

−

−

−

−

−

(0)

−

−

−

(3)

126

(1,922)

−

−

4,480

6,112

(5,033)

48,414(614)

153(Millions of yen)
Equity attributable to owners of parent
Other components of equity
FinancialassetsRemeasuremeasured atments offair value
definedthrough
benefitotherplanscomprehensive income
Balance at April 1, 2015
ProfitOther comprehensive
incomeTotal comprehensive
incomePurchase of treasury stock
Disposal of treasury stock
Changes in ownershipinterests in subsidiaries
that do not result in loss ofcontrol
Dividends
Lapse of subscription rights
to shares
Reclassified from othercomponents of equity toretained earnings
Total transactions withownersBalance at December 31, 2015

Total

Noncontrollinginterests

Total

Total

33
−

−
−

346
−

50,783
5,338

315
101

51,098
5,439

14

(1)

(762)

(762)

(7)

(769)

14

(1)

(762)

4,575

94

4,669

−
−

−
−

−
−

(0)
167

−
−

(0)
167

−

−

−

−

(29)

(29)

−

−

−

(1,966)−(1,966)

−

−

−

−

−

−

(1)

1

0

−

−

−

(1)

1

0

(1,799)(29)(1,829)

46

−

(415)

53,559379

53,939−8 −(Millions of yen)
Equity attributable to owners of parent

Capitalstock

Balance at April 1, 2016
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, 2016

CapitalsurplusTreasurystock

Retainedearnings

Other components ofequityTranslation
adjustments Cash flowof foreign
hedgesoperations

4,480
−

6,112
−

(5,371)−45,845
5,577(2,125)
−

(380)
−

−

−

−

−

(1,204)

61

−

−

−

5,577

(1,204)

61

−
−
−

−
−
−

(0)
−
−

−
−
(1,955)

−
−
−

−
−
−

−

−

−

140

−

−

−

10

−

−

−

−

−

10

(0)

(1,815)

−

−

4,480

6,123

(5,371)49,607(3,330)(318)(Millions of yen)
Equity attributable to owners of parent
Other components of equity
FinancialassetsRemeasuremeasured atments offair value
definedthrough
benefitotherplanscomprehensive income
Balance at April 1, 2016
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, 2016

Total

Total

Noncontrollinginterests

Total

29
−

−
−

(2,476)−

48,591
5,577

396
103

48,988
5,680

(5)

121

(1,027)(1,027)(2)(1,029)(5)

121(1,027)

4,549

100

4,650

−
−
−

−
−
−

−
−
−

(0)
−
(1,955)

−
−
−

(0)
−
(1,955)

(19)

(121)

(140)

−

−

−

−

−

−

10

−

10

(19)

(121)

(140)

(1,945)−(1,945)

3−(3,644)

51,195497

51,692−9 −(5) Condensed Consolidated Statements of Cash FlowsThe ninemonths ended
December 31,
2015

The ninemonths ended
December 31,
2016

Millions of yen

Millions of yen

Profit before tax
Depreciation and amortization

8,085
1,792

7,874
1,738

Impairment loss
Finance income and finance cost

316
72

112
157

Decrease (increase) in inventories
Decrease (increase) in trade and other receivables

2,077
965

(2,370)(2,910)

Increase (decrease) in trade and other payables
Other, net(1,431)(890)(4,327)(57)

SubtotalInterest and dividends income received

10,98830

216
7Interest expenses paid
Income taxes paid

(93)
(5,288)(155)(4,874)

Income taxes refund

1,636

2,036

Net cash provided by (used in) operating activities

7,273(2,770)

−

(183)
−

Net cash provided by (used in) operating activities

Net cash provided by (used in) investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment

90(1,089)(2,093)

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

64
(297)

278
(182)

Proceeds from sales and redemption of investments
Other, net

10
7

71
(56)

Net cash provided by (used in) investing activities(1,214)(2,165)

Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable(20,471)

4,351−

Proceeds from long-term loans payable
Repayment of long-term loans payable

20,304(270)(5,270)Purchase of treasury stock
Cash dividends paid

(0)
(1,964)(0)(1,953)102(23)(2,300)(2,896)

128(75)

Net increase (decrease) in cash and cash equivalents

3,887(7,908)Cash and cash equivalents at beginning of period

10,841

16,564

Cash and cash equivalents at end of period

14,729

8,656

Other, net
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 nine months ended December 31, 2016 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 IFRS and matters regarding the first-time adoption thereof
The 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.
The Group has adopted International Financial Reporting Standards (“IFRS”) from the fiscal year ending
March 31, 2017 (from April 1, 2016 to March 31, 2017). Thus, the annual consolidated financial statements
for the fiscal year ending March 31, 2017 are the first consolidated financial statements prepared based on
IFRS standards.
The date of transition to IFRS was April 1, 2015, and the impacts of the transition to IFRS on the Group’s
financial position, business performance and cash flows are described in Note 7. First-time adoption.
(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 as
mentioned in Note 3. Significant accounting policies.
(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.
(4) Early adoption of new standards
The Group has implemented an early adoption of IFRS 9 “Financial Instruments” (published in
November 2009, and revised in July 2014), as from the date of transition to IFRS.

−

11 −

3. Significant accounting policies
Unless otherwise stated, significant accounting policies adopted in these quarterly consolidated financial
statements are the same as those adopted in all periods presented in those statements (including consolidated
statements of financial position at the IFRS transition date).
Please see the notes on quarterly consolidated financial statements for the first three months of the year
ending March 31, 2017 (April 1, 2016 through June 30, 2016), for significant accounting policies adopted by
the Group.

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 theaccounting periods to be affected in the future.
Please see the notes on quarterly consolidated financial statements for the first three months of the year
ending March 31, 2017 (April 1, 2016 through June 30, 2016), for the management’s estimates andjudgements that have a significant influence on the amounts recognized in these condensed consolidated
financial statements.

−

12 −

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 and therefining and processing business, industrial waste management and other environmental preservation
business, and life & health business including manufacturing and selling of health equipment.
Therefore, the Group is composed of product and service segments based on business sectors. The threereporting segments are the precious metal business, the environmental preservation business, and the life
& health business.
The precious metals business engages mainly in recycling and selling of precious and rare metals suchas gold, silver, palladium, platinum, and indium, as well as refining and processing of precious metals suchas gold and silver. The main work of environmental preservation business is the collection, transport andintermediate processing of industrial waste. In the life & health business, the main work is the manufactureand sales of massagers, hearing aids, and other health equipment, the manufacture and sales of electricheaters, the design and installation of radiant heating and air conditioning systems, and the design andinstallation of disaster prevention equipment.

(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 reportable segment of the Group are as follows.
For the nine months ended December 31, 2015 (from April 1, 2015 to December 31, 2015)(Millions of yen)
Reporting segment
Precious metalbusiness

Environmental
preservation
business

Life & healthbusiness

61,725−

11,40471

18,6791

91,80973

61,725

11,476

18,681

7,151

1,947

887

Total

Adjustment

Consolidated−(73)

91,809−91,882(73)

91,8099,986(1,831)

8,155

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

27
(97)

Profit before tax

8,085(Note) 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.

−

13 −

For the nine months ended December 31, 2016 (from April 1, 2016 to December 31, 2016)(Millions of yen)
Reporting segment
Precious metalbusiness

Environmental
preservation
business

Life & healthbusiness

48,973−

11,76363

17,716
078,453
63

48,973

11,827

17,716

6,535

2,365

1,014

Total

Adjustment

Consolidated−(63)

78,453−78,517(63)

78,453

9,914(1,835)

8,079

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

10
(215)

Profit before tax

7,874(Note) 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.

6. Subsequent events
Not applicable

−

14 −

7. First-time adoption
The Group has started to disclose IFRS-based condensed consolidated financial statements from the firstquarter under review (from April 1, 2016 to June 30, 2016). The last Japan GAAP-based consolidated financial
statements were prepared for the fiscal year ended March 31, 2016, while transition to IFRS took place on
April 1, 2015.
(1) Exemption under IFRS 1
A company adopting IFRS for the first time (“first-time adopter”) is required to retrospectively apply thestandards required under IFRS, provided, however, that IFRS 1 ”First-time Adoption of International
Financial Reporting Standards” (“IFRS 1”) specifies certain standards subject to compulsory application ofexemption (from the aforementioned retrospective application), along with others subject to voluntary
application of exemption. Impacts from the application of these exemptions are adjusted by retained
earnings, or other components of equity on the date of transition to IFRS. In the process of transition to
IFRS from Japan GAAP, the Group adopted the following exemptions.
- Business combinations
A first-time adopter is allowed to elect not to retrospectively apply IFRS 3 “Business Combinations” tothe business combinations that took place before the date of transition to IFRS. The Group elected, byapplying this exemption, not to retrospectively apply IFRS 3 to the business combinations that took place
before the date of transition. As a result, the amount of goodwill arising from the business combinations
before the date of transition is recognized at the book value as at the date of transition based on the Japan
GAAP. Incidentally, goodwill is subject to impairment test on the date of transition, regardless of whether
there is an indication of impairment loss.
- Foreign currency translation adjustments of foreign operations
Under IFRS 1, an option is allowed whereby cumulative translation differences of foreign operations as
at the date of transition to IFRS may be assumed to be nil. The Group elected to assume such cumulativetranslation differences to be nil as at the date of transition to IFRS.
(2) Compulsory exception under IFRS 1IFRS 1 prohibits retrospective application of IFRS with respect to “estimates,” “derecognition of financial
assets and financial liabilities,” “hedge accounting,” “non-controlling interest,” and “classification andmeasurement of financial assets.” Thus the Company applies IFRS to these items from the date of transitionand onwards.
The reconciliation required to be disclosed at the first-time adoption of IFRS is as follows.

(3) Reconciliation
The reconciliation required to be disclosed at the first-time adoption of IFRS is as follows.

−

15 −

Reconciliation of equity as of April 1, 2015 (date of transition to IFRS)Line item underJapan GAAP

Japan
GAAP

Reclassificationof line items

Difference inrecognition and

IFRS

Notes

measurement

Millions

Millions

Millions

Millionsof yenof yenof yenof yenLine item under
IFRS

AssetsAssetsCurrent assets

Current assets
Cash and cash

Cash and deposits
Notes and accounts
receivable-trade
Inventories

11,046(205)−

10,841

15,146

1,973(1,267)

15,851

15,630

−

854
−

(854)
2,506

187
−
−

15,817
−

−
5,919

674
(4,988)(40)(1)(2),(3)equivalents
Trade and other

(4)
(4)

receivables
Inventories

2,506

(6)
(2)

Income tax receivables

−
−

674
930

(1),(3)(2)

Other financial assets
Other current assets

40

−

−

(3)

48,556(854)(1,079)46,622

Property, plant andequipment

32,334−

1,328

33,663(7)

Goodwill
Intangible assets

21,737
906

−
−

−
−

(8)

Investment securities
Deferred tax assets

168
368

Net defined benefit asset

154
−

(168)
854
−

21,737906−

Other
Allowance for doubtful

676

Deferred tax assets

Other
Allowance for doubtful
accounts
Total current assets
Non-current assets

accounts
Total non-current
assetsTotal assets

−

1,291

807

68
−
−

(662)

−

13

(24)

24

−

−

56,321854

1,397

58,573

104,877−

317

105,195

−

16 −

154
807

Total current assets
Non-current assets(5)(6)(3),(5)

Property, plant andequipment
Goodwill
Intangible assets
Deferred tax assets
Net defined benefit asset
Financial assets
Other non-current assets(3)
Total non-current
assetsTotal assets

Line item underJapan GAAP

Japan
GAAP

Reclassificationof line items

Difference inrecognition and

IFRS

Notes

measurement

Millions

Millions

Millions

Millionsof yenof yenof yenof yenLine item under
IFRS

Liabilities and Equity
Liabilities
Current liabilities

Liabilities
Current liabilities

Notes and accounts
payable-trade

6,161

5,460

165

11,787(2)

Trade and otherpayablesShort-term loans
payable26,171

270−

26,441(9)Loans payable

Current portion of longterm loans payable

270

(270)

−

−

(9)

Accounts payable-other
Income taxes payable

3,473
2,111

(3,473)
−

−
−

−

(2)

2,111

−

46

−

46

1,362
776

−

(102)
−

1,259
−

Provisions
Deferred tax liabilities
Other
Total current
liabilities
Non-current liabilities
Long-term loans payable
Deferred tax liabilities
Net defined benefit
liability

Other
Total non-current
liabilities
Total liabilities
Net assets(776)

Income tax payable(5)

Other financial
liabilities
Provisions

(6)
(2),
(5),(11)5,276(2,033)

396

3,638

Other current liabilities

45,603(776)

459

45,286

6,550

−

−

6,550

1,567

776

(282)

2,061

126

−

−

126

−

72

−

72

(5)

72

(72)

−

0

(5)

8,316

776

(282)

8,810

53,919−176

54,096

−

−
−

4,480
6,116

Capital stock
Capital surplus−(5,159)Treasury stock

Total current
liabilities
Non-current liabilities
Loans payable(6)

Deferred tax liabilities
Net defined benefit
liability
Other financial
liabilities
Other non-current
liabilities
Total non-current
liabilities
Total liabilities
EquityCapital stock
Capital surplus

4,480
6,038

Treasury stock
Subscription rights to(5,159)

77
−

77

(77)

−

−

44,459−539

44,999

685

−

(338)

346

50,582−200

50,783

Total equity attributableto owners of parent

375

−

(60)

315

Non-controlling interests

50,958−140

51,098

Total equity

104,877−

317

105,195

Total liabilities and equity

sharesRetained earnings
Total accumulated othercomprehensive income

Non-controlling interests
Total net assets
Total liabilities and net
assets

−

17 −

(12),
(13)
(12)

Retained earnings
Other components ofequityReconciliation of equity as of December 31, 2015
Line item underJapan GAAP

Japan
GAAP
Millionsof yenReclassificationof line items

Difference inrecognition and

IFRS

Notes

measurement

Millionsof yenMillionsof yenLine item under
IFRS

Millionsof yenAssetsCurrent assets

AssetsCurrent assets

Cash and deposits

14,830(101)−

14,729(1)

Cash and cash
equivalents

Notes and accounts
receivable-trade

12,944

2,237

(324)

14,858(2),(3)(4)

Trade and otherreceivables

13,997
705
−
−

−
(705)

(286)
−

13,710
−

(4)
(6)

1,061
578

−
−

1,061
578

(2)
(1),(3)

Income tax receivables
Other financial assets

5,552(3,803)

(41)

1,707

(2)

Other current assets

(26)

26

−

−

(3)

48,003

(705)

(652)

46,645Inventories
Deferred tax assets

Other
Allowance for doubtful
accounts
Total current assets
Non-current assets
Property, plant andequipment
Goodwill−

1,058

32,157

(7)

1,226
−
−

21,791

(8)

976
−

(5)

97
(19)
−
−

1,010
122

(6)

Deferred tax assets
Net defined benefit asset

773
28(3),(5)

Financial assets
Other non-current assets(3)

20,564

Intangible assets
Investment securities

976
182

−

Deferred tax assets
Net defined benefit asset

207
141
−

(182)
705
−

Other

654

773
(626)

Allowance for doubtful
accounts

(35)

35

−

−

53,791705

2,364

56,861

101,795−

1,711

103,506

assetsTotal assets

Total current assets
Non-current assets
Property, plant and

31,099−Total non-current

Inventories

−

18 −

equipment
Goodwill
Intangible assets

Total non-current
assetsTotal assets

Line item underJapan GAAP

Japan
GAAP

Reclassificationof line items

Difference inrecognition and

IFRS

Notes

measurement

Millions

Millions

Millions

Millionsof yenof yenof yenof yenLine item under
IFRS

Liabilities and Equity
Liabilities
Current liabilities

Liabilities
Current liabilities

Notes and accounts
payable-trade

6,678

4,045

32

10,756(2)

Trade and otherpayablesShort-term loans
payable

5,649

5,270

−

10,919(9)Loans payable

Current portion of longterm loans payable

5,270(5,270)−−(9)

Accounts payable-other
Income taxes payable

2,078
861

(2,078)
−

−
−

−

(2)

861

−

38

−

38

(5)

Provisions
Deferred tax liabilities

1,020
1

−
(1)

135
−

1,156
−

(6)

Other

3,552

(2,004)

330

1,878

25,112(1)

499

25,61021,584
2,248

−
1

(290)
(249)

21,294
1,999

138

−

−

138

−

68

455

524

(5) ,(10)

68

(68)

−

−

(5)

24,0401(84)

23,957

Total liabilities

49,153−414

49,567

Total liabilities

Net assets
Capital stock

4,480

−

−

4,480

EquityCapital stock

Capital surplus
Treasury stock

6,112(5,033)

−
−

−
−

6,112
(5,033)Retained earnings

46,607−

1,806

48,414(12),(13)

Retained earnings

73

−

(489)

(415)

(12)

Other components ofequity52,242−

1,317

53,559Total equity attributableto owners of parent

399

−

(19)

379

Non-controlling interests

52,642−

1,297

53,939Total equity

101,795−

1,711

103,506

Total liabilities and equity

Total current
liabilities
Non-current liabilities
Long-term loans payable
Deferred tax liabilities
Net defined benefit
liability

Other
Total non-current
liabilities

Total accumulated othercomprehensive income

Non-controlling interests
Total net assets
Total liabilities and net
assets−19 −Income tax payable
Other financial
liabilities
Provisions(2),(5),(11)

Other current liabilities
Total current
liabilities
Non-current liabilities

(10)
(6)

Loans payable
Deferred tax liabilities
Net defined benefit
liability
Other financial
liabilities
Other non-current
liabilities
Total non-current
liabilities

Capital surplus
Treasury stockReconciliation of equity as of March 31, 2016
Line item underJapan GAAP

Japan
GAAP
Millionsof yenReclassificationof line items

Difference inrecognition and

IFRS

Notes

measurement

Millionsof yenMillionsof yenLine item under
IFRS

Millionsof yenAssetsCurrent assets

AssetsCurrent assets

Cash and deposits

16,668(103)−

16,564(1)

Cash and cash
equivalents

Notes and accounts
receivable-trade

11,558

3,827

(741)

14,644(2),(3)(4)

Trade and otherreceivables

15,244
937
−
−

−
(937)

(153)
−

15,090
−

(4)
(6)

2,520
105

−
−

2,520
105

(2)
(1),(3)

Income tax receivables
Other financial assets

7,192(6,380)

−

811

(2)

Other current assets

(31)

31

−

−

(3)

51,570

(937)

(895)

49,737

Inventories
Deferred tax assets

Other
Allowance for doubtful
accounts
Total current assets
Non-current assets
Property, plant andequipment
Goodwill−

997

31,788(7)

16,922

(8)

969
−

(5)
(6)
(3),(5)

19,136

Intangible assets
Investment securities

969
155

−
(155)

(2,213)−−

Deferred tax assets

322
−

937
771

121
−

1,381
771

Other
Allowance for doubtful

664

(637)

−

27

(21)

21

−

−

52,019937(1,095)51,861

103,589−(1,990)101,599

accounts
Total non-current
assetsTotal assets

Total current assets

30,791−−20 −Inventories

Non-current assets
Property, plant andequipment
Goodwill
Intangible assets
Deferred tax assets
Financial assets
Other non-current assets(3)
Total non-current
assetsTotal assets

Line item underJapan GAAP

Japan
GAAP

Reclassificationof line items

Difference inrecognition and

IFRS

Notes

measurement

Millions

Millions

Millions

Millionsof yenof yenof yenof yenLine item under
IFRS

Liabilities and Equity
Liabilities
Current liabilities

Liabilities
Current liabilities

Notes and accounts
payable-trade

8,875

6,063

186

15,125(2)

Trade and otherpayablesShort-term loans
payable

1,845

5,270

−

7,115

(9)

Loans payable

Current portion of longterm loans payable

5,270(5,270)−−(9)

Accounts payable-other
Income taxes payable

1,891
2,012

(1,891)
−

−
−

−

(2)

2,012

−

187

−

187

1,534

−

(11)

1,522

Provisions
Other

Income tax payable(5)

Provisions
(2),

7,012

(4,359)

300

2,953

28,442−475

28,917

21,584−(1,080)20,503

(10)

1,937

−

(355)

1,582

(6)

142

−

−

142

119

−

(119)

−

−

62

1,403

1,465

62

(62)

−

−

23,846−(153)

23,69352,288−322

52,610Capital stock
Capital surplus

4,480
6,112

−
−

−
−

4,480
6,112

Treasury stock(5,371)−−(5,371)

Total current
liabilities
Non-current liabilities
Long-term loans payable
Deferred tax liabilities
Net defined benefit
liability
Provisions

Other
Total non-current
liabilities
Total liabilities
Net assets

Retained earnings
Total accumulated othercomprehensive income

Non-controlling interests
Total net assets
Total liabilities and net
assets47,524−(1,678)45,845(1,884)−(591)(2,476)50,862−(2,270)48,591Other financial
liabilities(5),(11)

Other current liabilities
Total current
liabilities
Non-current liabilities
Loans payable
Deferred tax liabilities
Net defined benefit
liability(5),(10)

Other financial
liabilities(5)
Total non-current
liabilities
Total liabilities
EquityCapital stock
Capital surplus
Treasury stock
(12),
(13)
(12)

Retained earnings
Other components ofequityTotal equity attributableto owners of parent

438

−

(42)

396

51,300−(2,312)

48,988

Total equity

103,589−(1,990)101,599

Total liabilities and equity

−

21 −

Non-controlling interests

Notes on reconciliation of equity(1) Reclassification of cash and deposits
Time deposits with deposit terms of over three months, which were included in “cash and deposits” under Japan
GAAP, are reclassified into “other financial assets (current)” under IFRS.
(2) Reclassification of other current assets and current liabilities
Accounts receivable – other, which were included in “other” of current assets under Japan GAAP, have been
reclassified as “trade and other receivables” and “Income tax receivables” under IFRS, while accounts payable –other, which was presented as a separate item of current liabilities, and accrued expenses, which were included
in “other” under Japan GAAP, have been reclassified as “trade and other payables” under IFRS.
(3) Reclassification of allowance for doubtful accounts“Allowance for doubtful accounts (current),” which was separately presented under Japan GAAP, has been
reclassified under IFRS to be directly deducted from “trade and other receivables” as well as “other financial assets(current)” to present their net amounts, while “allowance for doubtful accounts (non-current)” has also been
reclassified under IFRS to be directly deducted from “financial assets (non-current)” to present the net amount.
(4) Adjustment to operating receivables and inventories due to changes in timing of revenue recognition
Timing of revenue recognition for some of the transactions of sales of goods which were recognized on shipment
basis under Japan GAAP has been changed to customer delivery basis under IFRS, whereby operating receivables
and inventories are subject to adjustments accordingly.
(5) Reclassification of other financial assets and financial liabilities“Investment securities,” which were presented separately under Japan GAAP, have been reclassified as“financial assets (non-current)” under IFRS. Lease obligations, which were included in “other” of current liabilities
and “other” of non-current liabilities under Japan GAAP, have been reclassified as “other financial liabilities(current)” and “other financial liabilities (non-current),” respectively, under IFRS.
(6) Reclassification of deferred tax assets and deferred tax liabilities, review of recoverability of deferred tax assets
Since IFRS requires all deferred tax assets and liabilities to be classified as non-current items without making
a distinction between current and non-current items, deferred tax assets and liabilities which were previously
recorded as current items have been reclassified as non-current items. Meanwhile, as a result of the adoption of
IFRS, the recoverability of all deferred tax assets is currently under review and consideration.
(7) Adjustment to the recorded amount of property, plant and equipment
Under the Japan GAAP, the Group was mainly using the declining-balance method for the purpose ofdepreciating property, plant and equipment (excluding lease assets); under the IFRS, the Group has adopted thestraight-line method.
Fixed asset acquisition tax, which was treated as expenses under Japan GAAP, is capitalized under IFRS.
(8) Adjustment to the recorded amount of goodwill
Goodwill was amortized over a certain period of time under Japan GAAP, whereas it is not subject toamortization under IFRS. In addition, goodwill was subject to reviews for decisions on impairment only when
there was an indication of impairment under Japan GAAP, while impairment tests are conducted every reporting
period under IFRS.
Based on the difference between Japan GAAP and IFRS, the precious metal business segment recognized 3,776
million yen impairment loss in the fiscal year ended March 31, 2016. Recoverable amount is measured at value
in use, and calculated by discounting future cash flows using 11.84% discount rate.
(9) Reclassification of loans payable“Current portion of long-term loans payable,” which was presented as a separate item of current liabilities, hasbeen reclassified as “loans payable (current)” under IFRS.
−

22 −(10) Adjustment to loans payable and other financial liabilities
With respect to derivative transactions for the purpose of avoiding risks associated with fluctuations of interest
rate of long-term borrowings as well as those of exchange rate, exceptional accounting (tokurei-shori) anddesignated hedge accounting (furiate-shori) were adopted for the basis of hedge accounting under Japan GAAP,
whereas under IFRS, they are measured at fair value.
(11) Adjustment to other current liabilities
Allowance for unused compensated absences, which was not accounted for under Japan GAAP, is recorded as“other current liabilities” under IFRS.
(12) Reclassification of accumulated translation adjustments for overseas subsidiaries
Exemption under IFRS 1 was elected at the first-time adoption, whereby the accumulated translation
adjustments as at the date of transition to IFRS have been wholly reclassified as retained earnings.
(13) Reconciliation of retained earnings
Date of transition to
IFRS(April 1, 2015)

As of December 31,
2015

As of March 31, 2016

Millions of yen

Millions of yen

Millions of yen

Adjustment to trade receivables andinventories

(359)

(41)

(156)

Adjustment to recorded amount ofproperty, plant and equipment

1,328

1,058

997

Adjustment to recorded amount of
goodwill−

1,226(2,213)

(874)

(861)

(895)

Reclassification of accumulatedtranslation adjustments for overseas

338

338

338

subsidiaries
Other

(305)

(201)

(162)

128

1,519

(2,092)

351

267

371

60

19

42

539

1,806

(1,678)Reconciliation of compensatedabsences payable

Subtotal
Tax effect reconciliation
Reconciliation for non-controllinginterests
Total

−

23 −

Reconciliation of profit or loss and comprehensive income for the nine months ended December 31, 2015
(from April 1, 2015 to December 31, 2015)
Line item underJapan GAAP

Japan
GAAP

Reclassificationof line items

Difference inrecognition and

IFRS

Notes

measurement

Line item under
IFRS

Millions

Millions

Millions

Millions

Net salesof yen90,830of yen−of yen
978of yen91,809(1)

Revenue

Cost of sales(71,078)−(735)(71,814)(1)

Cost of sales

Gross profit

19,751−

243

19,994

Selling, general andadministrative expenses(12,646)

(55)

1,128

(11,573)(2)

Selling, general andadministrative expenses

−
−

144
(344)

(48)
(17)

96
(362)

(3)
(4)

Other operating income
Other operating expenses

Operating income

7,105

(255)

Non-operating income
Non-operating expenses

75
(171)

(75)
171

1,305
−
−

8,155
−
−

Extraordinary income
Extraordinary loss

107
(316)
−
−

(107)
316

−
−

−
−

(3)
(4)

37
(143)

(10)
45

27
(97)

(5)
(5)

Income before income
taxes

6,799

(55)

1,341

8,085

Profit before tax

Income taxes-current
Income taxes-deferred(2,384)
(239)

(183)
239

(77)
−

(2,646)−

Income tax expenses

Profit

4,176

−

1,263

5,439

ProfitOther comprehensive
incomeGross profit

Operating income(3),(5)(4),(5)

Finance income
Finance cost

Other comprehensive
incomeItems that will not bereclassified to profit or loss

Valuation difference on
available-for-sale

13

1

−

15

securities
−

−

(1)

(1)

13

−

(0)

13

Financial assets measured
at fair value through othercomprehensive income
Remeasurements ofdefined benefit plans
Total of items that will not
be reclassified to profit orloss
Items that will bereclassified to profit or loss

Deferred gains or losses
on hedges
Foreign currencytranslation adjustment

Total othercomprehensive income
Comprehensive income

5

−

(165)

(160)

(637)

−

15

(622)

(632)

−

(150)

(782)

(618)

−

(151)

(769)

Other comprehensive
income, net of tax

3,557

−

1,112

4,669

Comprehensive income

−

24 −

Cash flow hedges
Translation adjustments offoreign operations
Total of items that will bereclassified to profit or loss

Reconciliation of profit or loss and comprehensive income for the fiscal year ended March 31, 2016 (from
April 1, 2015 to March 31, 2016)
Line item underJapan GAAP

Japan
GAAP

Reclassificationof line items

Difference inrecognition and

IFRS

Notes

measurement

Line item under
IFRS

Millions

Millions

Millions

Millions

Net salesof yen118,473of yen−of yen879

of yen119,352(1)

Revenue

Cost of sales(92,719)−(675)(93,394)(1)

Cost of sales

Gross profit

25,753−204

25,958Selling, general andadministrative expenses(17,048)

(72)

1,421

(15,699)(2)

Selling, general andadministrative expenses

−
−

157
(545)

(48)
(3,765)109(4,310)(3)(4)

Other operating income
Other operating expenses

Operating income

8,705

(460)

Non-operating income
Non-operating expenses

89
(284)

(89)
284

(2,187)
−
−

6,057
−
−

Extraordinary income
Extraordinary loss

109
(512)
−
−

(109)
512

−
−

−
−

(3)
(4)

40
(251)

(1)
24

39
(227)

(5)
(5)

Income before income
taxes

8,106

(72)

(2,165)

5,868

Profit before tax

Income taxes-current
Income taxes-deferred(3,153)
179

251
(179)

18
−

(2,883)−

Income tax expenses

Profit5,132−(2,146)

2,985

ProfitOther comprehensive
incomeGross profit

Operating income(3),(5)(4),(5)

Finance income
Finance cost

Other comprehensive
incomeItems that will not bereclassified to profit or loss

Valuation difference on
available-for-sale

(4)

−

−

(4)

securities
−

−

(99)

(99)

(4)

−

(99)

(103)

Financial assets measured
at fair value through othercomprehensive income
Remeasurements ofdefined benefit plans
Total of items that will not
be reclassified to profit orloss
Items that will bereclassified to profit or loss

Deferred gains or losses
on hedges
Foreign currencytranslation adjustment

Total othercomprehensive income
Comprehensive income

(425)

−

(268)

(693)

(2,148)−15(2,133)(2,573)−(252)(2,826)(2,577)−(352)(2,930)2,554−(2,499)

55

−

25 −

Cash flow hedges
Translation adjustments offoreign operations
Total of items that will bereclassified to profit or loss
Other comprehensive
income, net of tax
Comprehensive income

Notes on reconciliation of profit or loss and comprehensive income(1) Revenue and cost of sales
Timing of revenue recognition for some of the transactions of sales of goods which were recognized on shipment
basis under Japan GAAP has been changed to customer delivery basis, whereby revenue and cost of sales are
subject to adjustments accordingly under IFRS.
(2) Selling, general and administrative expenses
Goodwill was subject to amortization under Japan GAAP, whereas it is not under IFRS, and therefore, theamount of amortization of goodwill under Japan GAAP has been reversed.
(3) Other operating income
Gain on sales of non-current assets and others, which were presented as extraordinary income under Japan
GAAP, are presented as other operating income under IFRS.
(4) Other operating expenses
Loss on sale and disposal of non-current assets and others, which were presented as extraordinary loss underJapan GAAP, are presented as other operating expense under IFRS. Based on the difference between Japan GAAP
and IFRS, the precious metal business segment recognized 3,776 million yen impairment loss for the fiscal year
ended March 31, 2016.
(5) Finance income and costs
Interest income, dividend income, and foreign exchange gain, which were presented as non-operating income
under Japan GAAP, as well as interest expenses and foreign exchange losses, which were presented as nonoperating expenses under Japan GAAP, are presented as finance income and finance costs, respectively, under
IFRS.

Reconciliation of cash flows for the fiscal year ended March 31, 2016 (from April 1, 2015 to March
31, 2016)
There is no significant difference between the consolidated statements of cash flows disclosed based on JapanGAAP and those disclosed based on IFRS.

−

26 −