To our shareholders

Interim Business Report for FY2015
April 1, 2015

September 30, 2015

Asahi Holdings, Inc.
Stock Code ： 5857
Tokyo Stock Exchange (First Section)

To Our Shareholders
I would like to express our cordial appreciation for your continuous
support and loyal patronage.
In April 2015, we launched our three-year 7th Med-term Management
Plan "Pursuing Growth and Efficiency: achieving 50% profit growthand minimum 13% ROE for FY 2017." Consolidated performance goals
for the final fiscal year are sales: 170,000 million yen, operating profit:
16,000 million yen, and ROE of at least 13%. We are currently
undertaking various initiatives in each business segment in order toachieve those goals. In two segments particularly positioned as growthengines, the gold and silver refining business in North America (brought
into the Group in March 2015) and the life & health business (begun inJuly 2014), we have embarked on large-scale and diverse measures.
Those efforts are expected to come to fruition during the final fiscal year
(ending March 2018).
In June 2015, we shifted to a company with audit and supervisorycommittee, including one-third of our Directors being Outside Directors.
Moreover, we have been studying measures to further strengthen ourcorporate governance. We intend to announce the results during thecurrent fiscal year.
The Group's results during the first half of the current fiscal year (April 1,2015 through September 30, 2015) in each business segment were asfollows.
Precious metal businessIn the precious metals recycling business, prices fell during the second
quarter of the current fiscal year, but domestic volumes of collection weregenerally higher than in the same period a year earlier. In the electronics
sector, the overall market continues to contract, but we expanded market
share in the E-scrap and precision cleaning businesses. In the dental
sector, the decreased volume of precious metals used had an impact,
but there was an increase in the jewelry sector. In the automotive
catalyst sector, we worked aggressively to develop new customers
amidst the shrinking market.
In the gold and silver refining business in North America, amidst stagnant
market prices and a global economic slowdown, we were forced toreduce both processing volume and unit price for commissioned refining
business.
Meanwhile, along with beginning to upgrade facilities by sharing
Japanese technology, we began various initiatives for the building ofworldwide business.

Environmental preservation business
Reflecting the state of production activity in domestic businesses, thevolume of collection of industrial waste continued declining. Under thesecircumstances, by working to develop new customers and new spot
contracts, performance for the segment as a whole was solid.
Life & health businessIn the healthcare equipment sector, recovery of sales of our mainstay
product, massage chairs, has not been achieved, but the effects of cost
reduction and of upgrading our product lineup through the introduction ofsmaller merchandise are beginning to appear. In construction-related
markets, the effects of a shortage of skilled labor leading to delays inconstruction completion are being felt, but we are working to expand
sales of new heater products and to reduce costs.
Consequently, operating results for the first half of the current fiscal year
were as follows: consolidated net sales 61,646 million yen, operating
profit 4,820 million yen, ordinary profit 4,698 million yen, and profit
attributable to owners of parent 2,752 million yen.
The company maintained an interim dividend of 30 yen per share.
We would appreciate your continued understanding and support for thebusiness activities of our group companies.

President & CEO

Topics (1/2)
Advancement of corporate governance□ Establishment of the Nominating Committee and the Compensation Committee
In June 2015, we shifted to a company with audit and supervisory committee, including one-third of our Directors being Outside Directors. We
will continue seeking to achieve highly transparent corporate governance.
As part of this, effective October 1, we established the Nominating Committee and the Compensation Committee as advisory committees. Eachconsists of one Director and two Outside Directors.
“Nominating Committee”
This committee discusses nomination of prospective Directors and dismissal of Directors and offers suggestions to the Board of Directors. In
addition, Directors in charge of various business make proposals on personnel changes for key executives including officers at affiliatedcompanies, about which the committee deliberates and reports to the Board of Directors.
“Compensation Committee”
This committee discusses and decides the direction and design of the system of compensation for Directors. It discusses individual evaluationsof each Director and sets his or her compensation. When necessary, it also discusses key executives at affiliated companies.

Accelerated growth through new business sectors□ Expansion of our business base in North America
We are working to expand the business base of Asahi Refining (gold and silver refining business in North America), which was brought into theGroup in March 2015. Having inherited the long, proud history of that business, we have begun working to spread the "Asahi" brand globally.
Shipping of products with the "Asahi" brand has begun in earnest. We aim to strengthen our competitiveness on the global level throughinitiatives on technical aspects and necessary investment.

As part of our activities to increase global brand awareness, we participated in a
conference jointly hosted by the London Bullion Market Association (LBMA) and theShanghai Gold Exchange (SGE) on June 24–25, 2015 in Shanghai. In October, weparticipated in the LBMA Precious Metals Conference 2015 held in Vienna.
We were sponsors for both of those events, and such exposure of the "Asahi Refining”
name and logo had a significant effect on raising brand awareness.

Topics (2/2)□ Expansion of the life & health businessWe aim to expand the life & health business, which we launched as the growth engine of the 7th Med-term Management Plan in the second
quarter of FY 2014. This includes Fujiiryoki working to upgrade its product lineup by renovating the massage chairs that are its mainstay productand introducing products from fresh perspectives.

Fujiiryoki has created a new beauty and healthcare series to fulfill
women's self-care

The new brand,“mashua”

The first product in the series is a full-fledged foot massager that soothes
swollen feet. Since going on sale in March 2015, it has been covered invarious media and received much acclaim.
Please see the Fujiiryoki website for details.
*website: http://www.fujiiryoki.co.jp/“mashua” series
foot massager

High-end massage chair" AS-1000 ”*launched in November 2015

Asahi Holdings website update
We updated our website in November 2015. We added a page introducing the life & healthbusiness in order to make the Group's business lines easier to understand.
We also constructed the site to be easily viewed on tablets as well as computers.
Our English content is now more complete than ever as well.
We thank you for your continued patronage.
* website:

http://www.asahiholdings.com/english/ (English)
http://www.asahiholdings.com/ (Japanese)Consolidated Financial Highlights (1/2)(Millions of yen)

Consolidated Balance Sheet

Consolidated Statements of Income
As ofMarch
31,2015

As of
September
30,2015The six months
ended
September 30,
2014

The sixmonths ended
September 30,
2015

Net sales

51,632

61,646

Cost of sales41,810

48,346ASSETS
Current assets

48,55650,562

Noncurrent assets

56,32155,096

Property, plant and equipment

32,33431,730Intangible assets

22,643

22,133Gross profit

9,822

13,299Investments and other assets

1,343

1,232

8,479

105,659

Selling, general andadministrative expenses

5,148

104,877

Operating income

4,674

4,820

Non-operating income

7540

Non-operating expenses

36163

4,713

4,698

Extraordinary income

1457

Extraordinary loss

27239

Income before income taxes

4,701

4,516

Income taxes-current

1,641

1,774

Income taxes-deferred118(47)

Profit attributable tonon-controlling

3136

Profit attributable toowners of parent

2,909

2,752

Total assets
LIABILITIESCurrent liabilities

45,60328,806

Noncurrent liabilities

8,316

24,204

Total liabilities

53,91953,01149,81951,790Capital stock

4,480

4,480

Capital surplus

6,038

6,112

Retained earnings

44,45946,229Treasury stock(5,159)(5,032)

Total accumulated other comprehensive
income685

442

Subscription rights to shares

77-Non-controlling interests

375

414

Total net assets

50,95852,648

Total liabilities and net assets

104,877

105,659

NET ASSETS
Ordinary income
Shareholders' equity

Notes: Amounts above are rounded down to unit of display

Notes: Amounts above are rounded down to unit of display

Consolidated Financial Highlights (2/2)(Millions of yen)

Consolidated Statements of Comprehensive Income
The six months
ended
September 30,
2014
ProfitTotal other comprehensive income■Net(Millions of Yen)
■売上 高Sales（単位：百万円）

The six
months ended
September 30,
2015

96,36849,3242,789

40,000256(240)

02,54994,25480,0002,941

3,1972014/03

2015/03

Interim

7,495
5,260

6,000

4,260

4,514

2,00002013/03(7,642)

Net cash provided by (used in)financing activities

(601)

(871)

(8)

94(3,991)

3,020

Effect of exchange rate change on
cash and cash equivalents
Net increase (decrease) in cash
and cash equivalents

2015/03

2016/09

Interim183.50200

Full-term

176.89139.24(717)

100.79

89.25

100

83.93

47.97
500
2013/03

2014/03

2015/03

2016/09■ROE (%)■ROE（単位：％）

ＲＯＥ

15%

13.6%

Cash and cash equivalents at
beginning of period

9,470

10,841

Cash and cash equivalents at theend of period

5,478

13,861

Notes: Amounts above are rounded down to unit of display

2014/03■１株あたり親会社株主に帰属する当期（中間期）■Net
Income per Share (Yen)150

Net cash provided by (used in)investing activities

4,820

4,674

2,896

4,000

Net cash provided by (used in)operating activities

Full-term

10,480

9,631

8,000

The six
months ended
September 30,
2015

2015/09■Operating
Income (Millions of Yen)■営
業 利 益（単位：百万円）
10,000Consolidated Statements of Cash Flows

61,646

51,63247,88412,000Notes: Amounts above are rounded down to unit of display

The six months
ended
September 30,2014

Full-term

111,417

120,000

2013/03

Comprehensive income

Interim

160,000

10%

11.9%

11.2%

13.0%

5%0%
2013/03

2014/03

2015/03

2016/03

PlanStock Information / Corporate Profile■ Stock Information
Total number of authorized shares
Total number of shares outstanding
Number of shares per trading unit
Number of shareholders(As of September 30, 2015)

129,000,000 Shares
36,254,344 Shares
100 Shares
10,024 Person■ Principal shareholders
Number ofShares-Held(ThousandShares)

Ratio ofShareHolding(%)

Japan Trustee Services Bank, Ltd.
(Trust account)

1,869

5.16

TERA ENTERPRISES Co., Ltd.

1,350

3.72

Name of Shareholders

The Master Trust Bank of Japan, Ltd.
(Trust account)

1,044

2.88

Mitsuharu Terayama

882

2.43

Masamichi Terayama

802

2.21

K&M Co., Ltd.

700

1.93

Asahi Employee Stock Ownership Plan

683

1.89

STATE STREET BANK AND TRUSTCOMPANY 505025

510

1.41

CBNY-GOVERNMENT OF NORWAY

498

1.37

Japan Trustee Services Bank, Ltd.
(Trust account 9)

481

1.33

■ Corporate Profile
Corporate name
Establishment
Foundation
Capital
Number of employees
Business lines(As of September 30, 2015)

Asahi Holdings, Inc.
April 2009
July 1952¥4,480 million
2,034 (Consolidated)
Recycling of precious & rare metals
Industrial waste treatment(Industrial waste treatment and other environmentalpreservation business)

Manufacturing and sales, construction of life andhealthcare related equipment

Subsidiaries
Asahi Pretec Corp.
Japan Waste Corporation
Asahi Americas Holdings,Inc

Taiyo Chemical Co., Ltd.
Kyodo Chemical Co., Ltd.
Iyotec Co., Ltd.

FUJI MEDICAL INSTRUMENTS MFG. Co., Ltd.
JW Logistics Co., Ltd.
INTER CENTRAL, INC.
Nihon Chemitec Co., Ltd.
KOEIKOGYO CO., LTD.
Fuji Rozai Co., Ltd.
Ecomax Incorporated
JW Glass Recycling Co., Ltd.

Overseas subsidiaries

Asahi G&S SDN. BHD. (Malaysia)
Shanghai Asahi Pretec Co., Ltd. (China)
Asahi Pretec Korea Co., Ltd. (Korea)
Asahi Pretec Taiwan Co., Ltd. (Taiwan)
Asahi Shih Her Technologies Co., Ltd.(Taiwan)
Asahi Refining USA (USA)Asahi Refining Canada(Canada)■ Board of Directors
President & CEO: Mitsuharu Terayama
Directors:
Yoshikatsu Takeuchi※Total Number of Treasury Shares (3,432,457 shares) are excluding from the above.

Tomoya Higashiura
Keitaro Shigemasa
Kazuo Kawabata

Directors: Shoji Morii *1 *2

Yukio Tanabe *1
Kazuhiko Tokumine *1 *2
Hiroharu Okubo *1 *2*1 Audit and Supervisory Committee member*2 Outside officers pursuant to Article 2, paragraph (3) item (v) of Ordinance for

Enforcement of the Companies Act.

Head Offices
Asahi Holdings Group operates the business in three segments: the precious metal business, the environmental preservation business, and the life
& health business under Asahi Holdings, Inc. which is the pure holding company.

■ Head OfficesKOBE

Nissei Sannomiya Bldg., 4-4-17 Kano-cho, Chuo-ku, Kobe, 650-0001, Japan
Tel. +81-78-333-5633 (Pilot number) Facsimile +81-78-333-5681

TOKYO

Sapia Tower, 1-7-12 Marunouchi, Chiyoda-ku, Tokyo, 100-0005, Japan
Tel. +81-3-6270-1833 (Pilot number) Facsimile +81-3-6270-1859

General Information● Business Term
● Record Date
● Fixed Date of Dividend Paid

April 1 - March 31
March 31

● Fixed date of Interim Dividend Paid

September 30● Shareholder Registry Administrator

Mitsubishi UFJ Trust and Banking Corporation● Transfer Agent

Mitsubishi UFJ Trust and Banking Corporation● Contact of the Agent

3-6-3 Fushimi-cho, Chuo-ku, Osaka City, Osaka 541-8502 JAPANMitsubishi UFJ Trust and Banking Corporation Osaka Stock Transfer Agent Dept.

● Public NoticeElectronic public notice http://www.asahiholdings.com/March 31