Consolidated Financial Results for the Fiscal Year Ended March 31, 2022
Asahi Holdings, Inc. [IFRS]
April 27, 2022

Stock code:
Shares listed:

5857
Tokyo Stock Exchange - Prime Market

URL:
Representative:

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

For further information please contact:

Kunihiko Chogo, General Manager, Corporate Planning &Communications Department

The Ordinary General Meeting of Shareholders:(Phone) +81–3–6270–1833
June 14, 2022

Filing date of financial statements:
Start of dividend payment:

June 15, 2022
May 30, 2022

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

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

1. Results of the fiscal year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)(1) Results of operations(Percentage: Changes relative to corresponding previous period)
OperatingprofitRevenue
The fiscal year ended
March 31, 2022
March 31, 2021

Millions of yen

192,442
164,776%

Millions of yen

16.8 26,446
21.5 25,126

Basic earnings per
share

Profit before
tax%

Millions of yen

5.3 26,372
39.5 26,136

Diluted earnings
per share

Total
Profitattributable to comprehensive
incomeowners of parent

Profit% Millions of yen%

Millions of yen%

Millions of yen%

0.9 18,735 (27.2) 18,735 (27.2) 15,173 (54.6)
48.1 25,725 161.3 25,725 161.3 33,434 487.5
Profit to equity
attributable toowners of parent

Profit before
tax to total
assetsOperatingprofit to revenue

The fiscal year ended
Yen
Yen
%
%
%
March 31, 2022
238.11214.13
18.5
9.7
13.7
March 31, 2021
326.90322.92
30.8
11.0
15.2
(Reference) Share of profit (loss) of investments accounted for using equity method:
Fiscal year ended March 31, 2022
207 million yen;
Fiscal year ended March 31, 2021
285 million yen(Note)The Company conducted a stock split with a ratio of two-for-one on April 1, 2021. Basic earnings per shareand diluted earnings per share are calculated assuming the stock split had already been carried out at thestart of the previous fiscal year.
(2) Financial Position
Total assets

Total equity

Equity attributableto owners of parent

Equity attributableto owners of parent
ratio

Equity per share
attributable toowners of parent

As ofMillions of yen
Millions of yen
Millions of yen%
Yen
March 31, 2022
298,387
105,137
105,13735.2
1,336.89
March 31, 2021
244,803
97,90397,90340.0
1,244.06(Note)The Company conducted a stock split with a ratio of two-for-one on April 1, 2021. Equity per share
attributable to owners of parent is calculated assuming the stock split had already been carried out at thestart of the previous fiscal year.
(3) Cash flows
Cash and cash
Cash flows from
Cash flows from
Cash flows fromequivalents at end ofoperating activities
investing activities
financing activities
the fiscal year
The fiscal year ended
Millions of yen
Millions of yen
Millions of yen
Millions of yen
March 31, 2022
11,103(7,820)(6,044)
6,127
March 31, 2021
(33,353)(2,800)24,422
10,023

2. Dividend payments
Dividends per shareFirst
quarterYear ended March 31, 2021
Year ended March 31, 2022
Year ending March 31, 2023
(Forecast)Total
dividend
payment(annual)Secondquarter

Third
quarter

Yen

Yen

Yen

Yen

Yen

Millions of yen

–
–

80.00
45.00

–
–

90.00
45.00

170.00
90.00

6,769
7,167

–

45.00

–

45.00

90.00

Year-end

AnnualPayoutratio(consolidated)

Dividend
to equity
attributableto owners ofparent(consolidated)

%

26.0
37.8

%

8.0
7.0

44.2

(Notes) 1. 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.
2. The year-end dividend for the fiscal year ended March 31, 2022 will be finalized at a meeting of the Board of
Directors to be held in May.
3. Forecast (From April 1, 2022 to March 31, 2023)
Revenue
Millions of yen

Six months ending
100,000
September 30, 2022
Year ending March 31, 2023 200,000(Percentage: Changes relative to corresponding previous period)
ProfitOperating
Profit before
Basic earnings
attributable toprofittax
per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%

Yen

3.2 12,000(12.4) 11,700(14.2)

8,000(17.1)

101.73

3.9 24,000(9.3) 23,500(10.9) 16,000(14.6)

203.45

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

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

Number of issued shares (common stock)(i) Number of issued shares at the end of year (including treasury stock)
As of March 31, 2022

79,708,688 shares

As of March 31, 2021

79,708,688 shares(ii) Number of treasury stock at the end of year
As of March 31, 2022

1,065,437 shares

As of March 31, 2021

1,011,774 shares(iii) Averaged number of shares during the period
Year ended March 31, 2022

78,683,537 sharesYear ended March 31, 2021

78,697,109 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.

(Reference) Summary of Nonconsolidated Results
1. Nonconsolidated Results of the Year ended March 31, 2022 (From April 1, 2021 to March 31, 2022)(1) Results of operations(Percentage: Changes relative to corresponding previous period)
Net sales

The fiscal year ended
March 31, 2022
March 31, 2021

The fiscal year ended
March 31, 2022
March 31, 2021
(Note)

Millions of yen

16,22914,003Operating profit%

Millions of yen

15.9
22.9

14,69413,080Ordinary profit% Millions of yen

12.3
29.7

14,972
12,435

Profit% Millions of yen

20.4
21.0

Earnings per share

Diluted earnings per share

Yen
190.19257.74

Yen
188.95256.01

14,964
20,283%(26.2)
100.4

The Company conducted a stock split with a ratio of two-for-one on April 1, 2021. Earnings per share anddiluted earnings per share is calculated assuming the stock split had already been carried out at the startof the previous fiscal year.

(2) Financial Position
Total assets

Net assets

Shareholders’ equity ratio

Net assets per share

Millions of yen
Millions of yen
%
Yen
As of
March 31, 2022
122,730
82,33866.2
1,032.41
March 31, 2021
111,02175,58267.0
945.86(Reference)
Shareholders’ equity
As of March 31, 2022: 81,191 million yen
As of March 31, 2021: 74,435 million yen(Note)The Company conducted a stock split with a ratio of two-for-one on April 1, 2021. Net assets per share is
calculated assuming the stock split had already been carried out at the start of the previous fiscal year.

* This report is not subject to audit procedures* Statement regarding the proper use of financial forecasts and other special remarks(Notes on forward looking statements, etc.)
These forecast performance figures are based on the information currently available to the company’s
management and certain assumptions judged rational. Accordingly, there might be cases in which actual resultsmaterially differ from forecasts of this report. Please refer to page 2 “1. Overview of Consolidated Operating
Results (1) Consolidated Business Performance for the Year ended March 31, 2022” for the assumptions used andother notes.

【Appendix】

Table of contents of the appendix

1. Overview of Consolidated Operating Results ................................................................................................................ 2(1) Consolidated Business Performance for the Year ended March 31, 2022 ................................................................ 2(2) Consolidated Financial Position and Cash Flows for the Year ended March 31, 2022 ........................................... 2(3) Dividends .................................................................................................................................................................... 3(4) Business and other risks ............................................................................................................................................ 3
2. Our Group ........................................................................................................................................................................ 7
3. Basic Concept Regarding Selection of Accounting Standards....................................................................................... 9
4. Consolidated Financial Statements ............................................................................................................................. 10(1) Consolidated Statements of Financial Position ...................................................................................................... 10(2) Consolidated Statements of Income ........................................................................................................................ 12(3) Consolidated Statements of Comprehensive Income .............................................................................................. 13(4) Consolidated Statements of Changes in Equity ...................................................................................................... 14(5) Consolidated Statements of Cash Flows ................................................................................................................. 16(6) Notes on Assumptions for Going Concern ............................................................................................................... 17(7) Notes on Consolidated Financial Statements ......................................................................................................... 17
1. Reporting entity ..................................................................................................................................................... 17
2. Basis of preparation ............................................................................................................................................... 17
3. Significant accounting policies .............................................................................................................................. 17
4. Significant accounting estimates and associated judgements ............................................................................. 17
5. Segment information ............................................................................................................................................. 17
6. Impairment loss ..................................................................................................................................................... 20
7. Per share information ............................................................................................................................................ 21
8. Subsequent events ................................................................................................................................................. 21
5. Others ............................................................................................................................................................................ 22(1) Amounts of sales ....................................................................................................................................................... 22− 1 −1. Overview of Consolidated Operating Results(1) Consolidated Business Performance for the Year ended March 31, 2022
①Operating results
During the fiscal year under review, the Japanese economy continued to face difficult conditions due to theimpact of the novel coronavirus disease (COVID-19). In addition, rising energy costs and other factors related
to the situation in Ukraine at the end of the fiscal year had an impact on business activities. Under these
conditions, the Group’s results in each business segment were as follows.
Precious Metals business
The precious metals recycling business posted increases from the same period of the previous year in bothrevenue and profit due to conducting profitability-oriented sales activities, boosted by rising precious metal
prices. In the precious metal refining business in North America, although there was a decrease intransactions in the trading business, which had a sharp increase in the previous fiscal year due to distribution
turmoil, transactions in the product business, which operates the processing and sale of products utilizing
metals, increased.
Environmental Preservation businessIn line with the recovery trend in industrial production activities, the volume of industrial waste handled by
the Group increased. However, we are continuing to ascertain and select core businesses, and as a result,since a business was excluded from the scope of consolidation in the second half of the previous fiscal year,
revenue and operating profit in this segment decreased from the same period of the previous year.
As a result of the above, revenue during the fiscal year was 192,442 million yen, a year-on-year increase of
27,665 million yen (+16.8 percent). Operating profit was 26,446 million yen, a year-on-year increase of 1,319
million yen (+5.3 percent). Profit before tax was 26,372 million yen, a year-on-year increase of 235 million yen(+0.9 percent). Profit was 18,735 million yen, a year-on-year decrease of 6,990 million yen (-27.2 percent).
Profit attributable to owners of parent was therefore 18,735 million yen, a decrease of 6,990 million yen (-27.2
percent) year-on-year. By segment, revenue in the Precious Metals business was 173,875 million yen, a yearon-year increase of 29,080 million yen (+20.1 percent). In the Environmental Preservation business, revenue
was 18,566 million yen, a year-on-year decrease of 1,414 million yen (-7.1 percent).

②Outlook
The Group will continue to strive to expand earnings and increase corporate value.
Business forecast for the next period is as follows: 200,000 million yen in revenue, 24,000 million yen in
operating profit, 23,500 million yen in profit before tax and 16,000 million yen in profit attributable to ownersof parent.

(2) Consolidated Financial Position and Cash Flows for the Year ended March 31, 2022
As of March 31, 2022, total assets amounted to 298,387 million yen, up 53,584 million yen from the previous
fiscal year end. This was mainly due to a decrease of 3,895 million yen in cash and cash equivalents, while
trade and other receivables increased by 50,661 million yen and property, plant and equipment increased by
5,843 million yen.
Total liabilities amounted to 193,250 million yen, up 46,351 million yen from the previous fiscal year end.
This was due mainly to an increase of 46,087 million yen in bonds and loans payable.
Total equity amounted to 105,137 million yen, up 7,233 million yen from the previous fiscal year end.
Net cash provided by operating activities amounted to 11,103 million yen after adding depreciation andamortization of 2,689 million yen to profit before tax of 26,372 million yen, as well as factoring in the increasein trade and other receivables, the increase in trade and other payables, and income taxes paid.
Net cash used in investing activities amounted to 7,820 million yen due mainly to 8,403 million yen ofpurchase of property, plant and equipment.
Net cash used in financing activities amounted to 6,044 million yen, mainly due to a net decrease in shortterm loans payable of 10,664 million yen, proceeds from long-term loans payable of 13,783 million yen,expenditures for purchase of treasury stock of 1,785 million yen, and cash dividends paid of 7,077 million yen.

− 2 −As a result, cash and cash equivalents as of March 31, 2022 decreased 3,895 million yen from March 31,
2021, to 6,127 million yen.

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

(4) Business and other risks
Major risks that could affect the Group’s operating results and financial condition include the following. We
believe these matters could have a significant impact on investor decisions, but the categories below arelimited to those that the Group is currently aware of; and not necessarily all risks are covered here.
① Precious metals prices and currency exchange rates
Precious metals and rare metals, which are the main products of the Group’s precious metals business, aretraded on international markets, and their prices fluctuate due to various factors worldwide, includinginternational or regional supply and demand, political, economic and social trends, exchange rates andmonetary policies, among others. The Group therefore hedges through forward transactions and provides
timely reports on the status of price fluctuations, etc. for the main previous metals to management, in order toreduce risk, although the size of fluctuation in precious metals prices and currency exchange rates could affect
the Group’s operating results and financial condition.
② Laws and regulations
In the countries and regions where the Group operates business, various laws and regulations apply
regarding matters such as permission to do business, rules for import/export/transport, commercial
transactions, labor, taxation, intellectual property rights, and environmental preservation. Taking the stancethat compliance is important, the Group has built a system for centrally managing information about
revisions to laws related to all its business fields and ensuring that this knowledge is communicated without
fail to the front lines, and carefully follows laws, regulations, and social rules. However, in the unlikely eventthat a situation arises where laws, regulations, and social rules could not be followed, or if they change suchthat business is restricted, it could affect the Group’s operating results and financial condition.
In the environmental preservation business in particular, the Group engages in the collection, transport andtreatment of various types of industrial waste as an enterprise under the Waste Management and Public
Cleansing Act. In addition to that law, the business is regulated by laws such as the Water Pollution Control
Act, the Air Pollution Control Act, and the Sewerage Act. Furthermore, the Group has a license for thecollection and transport of industrial waste in every prefecture and 9 ordinance-designated cities and corecities, for its disposal in 13 prefectures and 6 ordinance-designated cities, and for the collection and transportof specially-controlled industrial waste in every prefecture and 9 ordinance-designated cities and core cities,
and for its disposal in 10 prefectures and 6 ordinance-designated cities. Obtaining such licenses is predicatedon strict compliance with regulations at the regional level, including each prefectural and municipal
ordinance and rule.
With society’s interest in environmental issues rising, such legal regulations are tending to tighten. Not
only capital investments as countermeasures to those trends but also the construction, relocation, andrenovation of disposal facilities require construction permits and permission to change. Such occasions may
also necessitate obtaining the consent of nearby residents, which could be difficult to obtain in some cases.
Therefore, such legal regulations and social trends could affect the Group’s operating results and financial
condition.
③ Economic fluctuation
Manufacturing industries are among the primary demand industries for the Group’s two business− 3 −segments: the precious metals business and the environmental preservation business. Demand trends in eachsector within these industries are affected by economic conditions in various countries and regions. Whendemand from such industries declines due to recession and so on, it could affect the Group’s operating results
and financial condition. Moreover, in the previous metals recycling business, the Group recycles precious
metals contained in end products such as information equipment and automobiles, and is therefore affected byconsumption trends. A decrease in personal consumption caused by a decline in the general level ofconsumption could therefore affect the Group’s operating results and financial condition.
④ Business environment
The Group’s two business segments, the precious metals business and the environmental preservation
business, face the possibility of major changes in customer needs due to changes in laws, regulations, andpermits that concern a sector or faster-than-expected shifts overseas by corporate customers. Furthermore,industry reorganization and other major changes in the business environment are possible. The results could
affect the Group’s operating results and financial condition.
⑤ Intensified competition
The Group’s two business segments, the precious metals business and the environmental preservation
business, face competition from various companies. The Group continues to make efforts to overcome thecompetition in each sector by accurately meeting customer needs through sales efforts and initiatives ontechnology, products, and cost responsiveness. Intensified competition from competitor companies, however, canforce the Group’s products and services into harsh price competition. The results could affect the Group’s
operating results and financial condition.
⑥ Overseas business deployment
Under the slogan, “Building a global company that pursues originality and growth,” one of the Group’s growthstrategies is expansion of its overseas business. In this regard, the Group carries out business in countries andregions in North America, Asia, etc. Political or economic phenomena unfavorable to business, labor disputes
due to differences in labor environment, uncertainty in finding suitable local personnel, conflicts, terrorism, andother social disturbances, and unfair intervention by authorities due to underdeveloped business infrastructure
in a country or region are inherent risks. If such situations occur, it could affect the Group’s operating results
and financial condition.
⑦ Corporate acquisition
The Group has worked to expand its lines of business and business scale through corporate acquisition and
expects to take a forward-looking approach projects that will contribute to further growth in the future. In orderto maximize the integration effect with target businesses and companies, the Group will attempt to integrate
and unify them with its business strategy and operations. However, if the integration of human resources andassets does not proceed as planned, it is possible that the expected integration and unification effects will not
be realized. The results could affect the Group’s operating results and financial condition.
⑧ Impairment of goodwill and fixed assets
When the Group acquired a company, it records goodwill arising from the acquisition, as well as various
property, plant and equipment and intangible assets for business use. At the acquisition examination stage, theGroup carries out sufficient surveys from the financial, legal, and human resource perspectives, among others,
but if the acquired company and business do not achieve business results as initially expected due to changes
in the market environment, etc., and the operating results and profitability deteriorate markedly, these assets
may become impaired. If such situations occur, it could affect the Group’s operating results and financial
condition.
⑨ Natural disasters and infectious diseases
Natural disasters such as large earthquakes or typhoons or the outbreak of new infectious diseases could
cause serious damage to the Group’s production, distribution, sales, and information management facilities.
The Group has implemented countermeasures such as business continuity management (BCM), flood
countermeasures, disaster readiness drills, and building an employee safety confirmation system. However,− 4 −these are not able to completely eliminate damage due to natural disasters or unknown infectious diseases,
etc. Therefore, if these should occur it could affect the Group’s operating results and financial condition.
Also, while it is difficult to predict when the COVID-19 pandemic will come under control, if the situation
worsens again, it could have a further negative impact on the domestic and overseas economies and markets,
which in turn could affect the Group’s operating results and financial condition.
⑩ Health and safety
The Group works to strengthen its safety management system, and regularly carries out disaster/accident
prevention activities such as holding Safety Promotion Meetings that are also attended by management andtaking necessary measures in order to eliminate occupational and facilities accidents. However, there is no
guarantee that they can be completely prevented or mitigated. Therefore, if a serious occupational or facilities
accident should occur, it could affect the Group’s operating results and financial condition.
⑪ Human resources
Since the Group’s medium- to long-term growth depends on the abilities and experience of individual
employees, the Group is promoting human resource policies that are relevant to the times. In the 9th Midterm Business Plan, which ends in the fiscal year ending March 31, 2024, in addition to once again thoroughly
implementing the “ability-based and performance-based” approach, which will stimulate the entire
organization and create a driving force for the company’s growth, we are also promoting work style reforms
such as observing “rest intervals” of at least 11 hours before an employee can return to work the next day, andencouraging employees to take refreshment leave. However, if the Group is unable to secure high quality
human resources and prepare the necessary talent for taking on challenges at the right time due to increased
speed of business development, it could affect the Group’s operating results and financial condition.
⑫ Research and development
The Group conducts independent research and development and analysis technology development aimed at“precious metals recycling’ and “detoxifying and recycling of industrial waste.” However, research anddevelopment of new technologies is affected by various factors, such as changes in the market environment,competition, and the ability to commercialize development results. Therefore, it is highly uncertain whether
the expenses used in research and development can be recovered. For this reason, if the results of researchand development are not obtained as initially anticipated, it could affect the Group’s operating results andfinancial condition.
⑬ Key intellectual property rights
In order to protect intellectual property rights important to business deployment, the Group carries out
appropriate management. However, unforeseen leaks to outside parties can occur, and complete protection of
intellectual property rights may be impossible in certain regions. Therefore, it may not be possible toeffectively prevent third parties from using the Group’s intellectual property rights to manufacture and sellsimilar products and services. Moreover, the Group could be embroiled in a dispute if the products andtechnologies that it is developing for the future infringe unintentionally on the intellectual property rights ofanother company, or regarding the handling of workplace inventions in its relationships with employees. The
results could affect the Group’s operating results and financial condition.
⑭ Product quality assurance and product liability
Led by its Quality Assurance Division, the Group has acquired ISO9001 to provide products offering
customers greater confidence and satisfaction, and makes continuous improvements to its quality
management systems and strives to maintain and improve quality. Through such measures, the Group makes
every effort with its product quality assurance system, but if a product produced by the Group causes
damages, it could affect the Group’s operating results and financial condition.
⑮ Environmental protection
Based on its Environmental Policies, the Group carries out various initiatives to protect the global
environment. For example, it has established the Company-wide Environmental Goals (Annual Plan) and an
Environmental Committee is set up at every business site. Through these and other efforts, the Group− 5 −complies with environmental laws and regulations, revises its plans, deliberates about environmental
education and so forth, and reports to management. However, there is no guarantee that all pollution andother environmental risk can be completely prevented or mitigated, so if the Group should cause serious
pollution of the environment, it could affect the Group’s operating results and financial condition.
⑯ Climate change
The adoption of the Paris Agreement at the 21st Session of the Conference of the Parties to the United
Nations Framework Convention on Climate Change (COP 21), which has been ratified by every country, has
sparked a global wave of initiatives aimed at reducing greenhouse gases deemed to cause climate change andglobal warming. As part of its efforts to address climate change, the Group revised up its target to reduceenergy-derived CO2 emissions by 2030 from 26% to 50% compared to the 2015. Subsequently, we declared ourgoal to become carbon neutral by 2050, endorsed the recommendations of the Task Force on Climate-Related
Financial Disclosures (TCFD), and proceeded to take actions in line with their recommendations. As a result,as a transition risk, if a carbon pricing system including a carbon tax is introduced, or as a physical risk, if
natural disasters become so severe due to extreme weather conditions and thereby our Group’s facilities andother assets are severely affected and business activities are suspended for a long period of time, the Group’s
operating results and financial condition may be affected.
⑰ Information security
PCs and tablets used by the Group use the latest security countermeasures, and we take sufficientmeasures to ensure that system faults and information theft or loss do not occur during their installation andoperation. We also implement regular employee training to enhance their IT literacy. However, there is apossibility that unexpected events could occur such as destruction or tampering of important data or externalleaks of information as a result of infection by a computer virus, hacking damage, and system faults due tosoftware defects, or a larger than anticipated external attack. Such an event could affect the Group’s
operating results and financial condition.
⑱ Lawsuits and other legal procedures
As the Group carries out business in Japan and overseas, it could be subjected to lawsuits and other legal
procedures. The Group appropriately monitors major lawsuits that have already been instigated or have thepotential to be instigated, and takes countermeasures as needed. However, if the Group becomes a party tosuch action, it might have to pay large damages, etc. The results could affect the Group’s operating results
and financial condition.

− 6 −2. Our Group
Our Group comprises of the holdings company “Asahi Holdings, Inc.,” “Asahi Pretec Corp.,” and 13 otherconsolidated subsidiaries and affiliated companies. Our main businesses are precious metals business andenvironmental preservation business. The details are as follows:(1) Precious metals businessIn the precious metals business, we sell precious/rare metal products such as gold, silver, platinum, andpalladium by recycling scrap containing rare metals, etc.
In Japan, Asahi Pretec Corp. collects scraps containing precious/rare metals from the electronics, dentistry,jewelry manufacturing and distribution, and automotive catalyst sectors. At factories around the country, itcollects, separates and refines the scrap and sells high-purity metals to trading companies,
semiconductor/electronic component makers, etc. It also engages in precision cleaning and precious metaldelamination of manufacturing equipment parts from semiconductor/electronic component makers, etc.
Overseas, Asahi G&S Sdn. Bhd. in the Malaysia/Singapore region and Asahi Pretec Korea Co., Ltd. in South
Korea are engaged in the precious metals recycling business. Additionally, Asahi Refining USA Inc. and Asahi
Refining Florida LLC in the United States, and Asahi Refining Canada Ltd. in Canada carry out the refining
and processing of gold, silver, and other precious metals.

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

− 7 −[Group Business Organization Chart]
The aforementioned items are shown in the following group business organization chart.

Domestic Bases

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

North America

ASAHI G&S SDN.BHD.

Asahi Refining
USA Inc.

Asahi Pretec
Korea Co., Ltd.

Asahi Refining
Florida LLC
Asahi Refining
Canada Ltd.

Domestic Bases

Asahi Pretec
Medical Support Co., Ltd.

Environmental Preservation Business

A sahi Holding s, Inc.

Precious Metals Business

Asia

Asahi Depository LLC

Domestic Bases

Asahi Pretec Corp.
Entrustment of industrial waste
treatment

Domestic Bases

Fuji Rozai Co., Ltd.

JW Chemitech Co., Ltd.

JW Glass Recycling Co., Ltd.

Other 1 company

Other*Other 2 companies(including 1 consolidated
subsidiary)(Note) Unmarked : Consolidated subsidiary* : Equity method affiliate− 8 −3. Basic Concept Regarding Selection of Accounting Standards
We have applied International Financial Reporting Standards (IFRS) from the first quarter of fiscal year ended
March 31, 2017, with the objectives of enhancing our management base for global business development andenabling easier international comparison of financial information in capital markets.

− 9 −4. Consolidated Financial Statements(1) Consolidated Statements of Financial Position
As ofMarch 31,
2021

As of
March 31,
2022

Millions of yen

Millions of yen

ASSETS
Current assets
Cash and cash equivalents

10,0236,127

Trade and other receivables
Inventories

100,775
63,515

151,437
63,398

Income tax receivables
Other financial assets

2,833
2,169

3,958
129

Other current assets

12,644

16,727

Total current assets

191,961

241,778

37,90443,748Goodwill
Intangible assets

1,040
697

1,040
712

Investments accounted for using equity method
Deferred tax assets

3,544
8,392

3,657
6,262

Net defined benefit asset
Financial assets

165
1,051

229
859

Non-current assets
Property, plant and equipment

Other non-current assets

44

98

Total non-current assets

52,84156,609244,803

298,387

Total assets− 10 −

As ofMarch 31,
2021

As of
March 31,
2022

Millions of yen

Millions of yen

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

26,46579,337

27,711
108,263

Income tax payable
Other financial liabilities

5,914
1,247

950
5,613

Provisions
Other current liabilities

1,601
5,002

1,608
4,479

Total current liabilities
Non-current liabilities

119,568

148,626

Bonds and loans payable
Deferred tax liabilities

25,501
968

42,663576

Net defined benefit liability
Other financial liabilities

106
754

93
1,289

27,331

44,623

Total liabilities
EquityTotal non-current liabilities

146,899

193,250

Capital stock
Capital surplus

7,790
11,952

7,790
11,955

Treasury stock
Retained earnings(957)
80,604(1,819)92,353

Other components of equity(1,486)(5,142)

Total equity attributable to owners of parent

97,903

105,137

Total equity
Total liabilities and equity− 11 −

97,903

105,137

244,803

298,387

(2) Consolidated Statements of Income
The fiscal year ended
March 31, 2021

The fiscal year ended
March 31, 2022

Millions of yen

Millions of yen

Revenue
Cost of sales

164,776(131,962)

192,442(157,783)

Gross profit

32,81434,658Selling, general and administrative expenses
Other operating income(7,263)96(7,701)
75

(806)

(794)

285

207

Operating profit

25,12626,446

Finance income
Finance costs

136
(84)

619
(890)

Other non-operating income
Other non-operating expenses

962
(3)

196
–

26,136

26,372(411)(7,636)25,72518,735

Owners of parent
Non-controlling interests

25,725–18,735–

Profit25,72518,735

Earnings per share
Basic earnings per share (Yen)

326.90238.11

Diluted earnings per share (Yen)322.92214.13

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

Profit before tax
Income tax expenses
ProfitProfit attributable to:− 12 −

(3) Consolidated Statements of Comprehensive Income
The fiscal year ended
March 31, 2021

The fiscal year ended
March 31, 2022

Millions of yen

Millions of yen

Profit25,72518,735

5

(1)

(17)

93

4

(5)

(7)

87

Other comprehensive income
Items that will not be reclassified to profit or loss
Financial assets measured at fair value
through other comprehensive income
Remeasurements of defined benefit plans
Share of other comprehensive income ofinvestments accounted for using equity method
Total items that will not be reclassified to profit
or loss
Items that may be reclassified to profit or loss
Cash flow hedges

6,462(5,202)

Translation adjustments of foreign operations

1,254

1,553

Total items that may be reclassified to profit or
loss

7,716

(3,649)7,709(3,562)Comprehensive income

Other comprehensive income, net of tax

33,434

15,173Comprehensive income attributable to:
Owners of parent

33,434

15,173––33,434

15,173

Non-controlling interests
Comprehensive income− 13 −

(4) Consolidated Statements of Changes in Equity(Millions of yen)
Equity attributable to owners of parent
Other components ofequityCapitalTreasury
Retained
Translation
surplusstockearnings
adjustments
Cash flowof foreign
hedgesCapitalstock

operations

Balance at April 1, 2020
ProfitOther comprehensive
incomeTotal comprehensive
incomePurchase of treasury stock
Dividends
Issuance of convertiblebond-type bonds with shareacquisition rights
Reclassified from othercomponents of equity toretained earnings
Share-based paymenttransactions
Total transactions withownersBalance at March 31, 2021

7,790
–

10,755–(956)–

60,79725,725(4,198)–(5,008)
–

–

–

–

–

1,254

6,462

–

–

–

25,725

1,254

6,462

–
–

–
–

(0)
–

–
(5,902)

–
–

–
–

–

996

–

–

–

–

–

–

–

(16)

–

–

–

200

–

–

–

–

–

1,197

(0)

(5,919)

–

–

7,790

11,952(957)

80,604(2,944)

1,454(Millions of yen)
Equity attributable to owners of parent
Other components of equity
FinancialassetsRemeasuremeasured atments offair value
definedthrough otherbenefit planscomprehensive income

Balance at April 1, 2020
ProfitOther comprehensive
incomeTotal comprehensive
incomePurchase of treasury stock
Dividends
Issuance of convertiblebond-type bonds with shareacquisition rights
Reclassified from othercomponents of equity toretained earnings
Share-based paymenttransactions
Total transactions withownersBalance at March 31, 2021

Total

Total

Total equity

(5)
–

–
–

(9,212)–

69,17425,72569,17425,725

10

(17)

7,709

7,709

7,709

10

(17)

7,709

33,43433,434

–
–

–
–

–
–

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

–

–

–

996

996

(0)

17

16

–

–

–

–

–

200

200

(0)

17

16

(4,705)(4,705)

3–(1,486)

97,90397,903− 14 −

(Millions of yen)
Equity attributable to owners of parent
Other components ofequityCapitalTreasury
Retained
Translation
surplusstockearnings
adjustments
Cash flowof foreign
hedgesCapitalstock

operations

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

7,790
–

11,952–(957)–

80,604
18,735(2,944)
–

1,454
–

–

–

–

–

1,553

(5,202)–––

18,735

1,553(5,202)

–
–
–

–
258
–

(1,785)214–––(7,080)

–
–
–

–
–
–

–

–

–

93

–

–

–

(255)

708

–

–

–

–

2

(862)

(6,986)

–

–

7,790

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

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

Total

Total

Total equity

3
–

–
–

(1,486)–

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

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

93(3,562)

15,173

15,173

–
–
–

–
–
–

–
–
–

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

–

(93)

(93)

–

–

–

–

–

452

452

–

(93)

(93)

(7,940)(7,940)(3)–(5,142)

105,137

105,137− 15 −

(5) Consolidated Statements of Cash FlowsThe fiscal year
ended March 31,
2021

The fiscal year
ended March 31,
2022

Millions of yen

Millions of yen

26,136
2,538

26,372
2,689

58
48

287
1,722

(958)

(196)

Cash provided by (used in) operating activities
Profit before tax
Depreciation and amortization
Impairment loss
Finance income and finance cost
Other non-operating income and expenses
Share of loss (profit) of investments accounted for using equity
methodDecrease (increase) in inventories

(285)

(207)

(26,196)(65)

Decrease (increase) in trade and other receivables
Increase (decrease) in trade, loans and other payables

29,998(50,501)(37,647)
32,705

Other, net(6,652)(4,320)Subtotal(25,813)

21,337

5
(71)

111
(87)

Income taxes paid
Income taxes refunded(9,422)
1,948(12,934)
2,675

Net cash provided by (used in) operating activities(33,353)

11,103

Interest and dividend income received
Interest expenses paid

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

(90)

(96)

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

90(5,141)

144(8,403)

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

46
(279)

16
(354)

Proceeds from sales of shares of subsidiaries
Proceeds from sales and redemption of investments

2,908
19

–
–

Other, net

(353)

873

Net cash provided by (used in) investing activities(2,800)(7,820)Cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable

29,908(10,664)

Proceeds from long-term loans payable
Repayment of long-term loans payable–(20,304)

13,783–

Proceeds from issuance of convertible bond-type bonds withshare acquisition rights

21,137

–

–
(0)

172
(1,785)(5,902)(416)(7,077)(473)

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

24,422(1,154)(6,044)(1,134)

Net increase (decrease) in cash and cash equivalents(12,885)(3,895)

Cash and cash equivalents at beginning of period

22,90810,023

Cash and cash equivalents at end of period

10,023

6,127

Proceeds from sales of treasury stock
Purchase of treasury stock
Cash dividends paid
Other, net− 16 −

(6) Notes on Assumptions for Going Concern
Not applicable(7) Notes on Consolidated Financial Statements
1. Reporting entity
Asahi Holdings, Inc. (hereinafter the “Company”) is a company located in Japan. The addresses of theCompany’s registered head office and principal offices are available on its website(https://www.asahiholdings.com). The Company’s consolidated financial statements have a fiscal year-end
date of March 31, 2022 and comprise the financial statements of the Company as well as its subsidiaries(the “Group”).
For the main activities of the Group, please refer to Note “5. Segment information.”

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

3. Significant accounting policies
The significant accounting policies adopted for the consolidated financial statements are the same as
those for the consolidated financial statements for the fiscal year ended March 31, 2021.

4. Significant accounting estimates and associated judgements
In preparing consolidated financial statements, the management is required to make judgement,
estimates and assumptions that affect the adoption of accounting policies and the amounts of assets,
liabilities, revenues and expenses. Actual results may differ from such estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. The effect of a change inaccounting estimates is recognized in the accounting period in which such change occurs as well as theaccounting periods to be affected in the future.
The estimates and judgements made by the management that may have material impacts on the figuresin the consolidated financial statements are the same as those for the consolidated financial statements
for the fiscal year ended March 31, 2021.

5. Segment information(1) Overview of reporting segments
The Group’s business segments are those Group constituent units for which separate financial
information is obtainable, and which the Board of Directors subjects to regular examination in order todecide the allocation of management resources and evaluate business results.
As a pure holding company, the Company is in charge of overall strategic function for the Group,
whereas operating companies of the Group engage in the precious and rare metals recycling business− 17 −

and the refining and processing business, industrial waste management and other environmental
preservation business.
Therefore, the Group is composed of product and service segments based on business sectors. The tworeporting segments are the Precious Metals business and the Environmental Preservation business.
Meanwhile, these reporting segments are not aggregated.
The Precious Metals business engages mainly in recycling and selling precious and rare metals suchas gold, silver, palladium, and platinum from scrap containing precious metals, as well as refining andprocessing of precious metals centered on gold and silver.
The main work of the Environmental Preservation business is the collection, transport 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 fiscal year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)
Reporting segment(Millions of yen)

Precious Metals
Business

Environmental
Preservation
Business

144,795

19,981

164,776

–

–

–

–

Total

144,795

19,981

Operating profit
by business

24,037

3,833

Revenue
External
revenue
Intersegment
revenue

Other

Adjustments

Consolidated

164,776–

164,776

–

–

–

–

164,776–

164,776–

164,776

27,870285

28,156(3,029)25,126

Subtotal

Total

segment
Finance income
Finance costs

136
(84)

Other nonoperating income

962

Other nonoperating(3)

expensesProfit before tax

26,136

Others:Depreciation andamortization

1,178

881

2,059

–

2,059

478

2,538

Impairment loss

25

32

58

–

58

–

58

–

–

–

285

285

–

285

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

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

− 18 −

For the fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)
Reporting segment(Millions of yen)

Precious Metals
Business

Environmental
Preservation
Business

173,875

18,566

192,442

–

–

–

–

Total

173,875

18,566

Operating profit
by business

26,596

3,738

Revenue
External
revenue
Intersegment
revenue

Other

Adjustments

Consolidated

192,442–

192,442

–

–

–

–

192,442–

192,442–

192,442

30,334179

30,514(4,068)26,446

Subtotal

Total

segment
Finance income
Finance costs

619
(890)

Other nonoperating income

196

Profit before tax

26,372Others:Depreciation andamortization
Impairment loss

1,240

977

2,218

–

2,218

471

2,689

269

17

287

–

287

–

287

–

–

–

207

207

–

207

Share of loss
(profit) ofinvestments
accounted forusing equity
method(Note) Adjustments of operating profit by business segment are mainly corporate expenses that are not allocatedto each reporting segment.

− 19 −

6. Impairment loss
For the fiscal year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)
The impairment loss of 58 million yen on property, plant and equipment recognized during the fiscal
year ended March 31, 2021 consists of a loss (32 million yen) for the reduction of the book value of land of
JW Glass Recycling Co, Ltd. in the Environmental Preservation Business segment to the recoverable
value of zero as the land was scheduled to be sold, and a loss (25 million yen) for the reduction of the bookvalue of facilities of Asahi Refining Canada Ltd. in the Precious Metals Business segment to therecoverable value of zero, since future cash flows became unlikely as a result of the cancelation of projects
due to business plans.
For the fiscal year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)
The impairment loss of 287 million yen on property, plant and equipment recognized during the fiscal
year under review mainly consists of a loss (269 million yen) for the reduction of the book value of landand buildings of Asahi Pretec Corp. in the Precious Metals Business segment to the recoverable value
because its production facilities were consolidated and relocated, and thereby some of them were idled,
and a loss (16 million yen) for the reduction of the book value of land of JW Glass Recycling Co., Ltd. in
the Environmental Preservation Business segment to the recoverable value because the land wasscheduled to be sold.
Impairment losses are recorded in “Other operating expenses” in the Consolidated Statements ofIncome.

− 20 −

7. Per share information(1) The basis for calculating basic earnings per share(Millions of yen)
Year ended March 31, 2021

Year ended March 31, 2022

25,72518,735––

Profit used for calculation of the basic earnings per
share

25,72518,735Weighted average number of common stock (Shares)

78,697,109

78,683,537

326.90238.11

Profit attributable to owners of parent
Profit not attributable to ordinary shareholders ofparentBasic earnings per share (Yen)(2) The basis for calculating diluted earnings per share(Millions of yen)
Year ended March 31, 2021

Year ended March 31, 2022

25,72518,735–

217

Profit used for calculation of the diluted earnings per
share

25,725

18,953Weighted average number of common stock (Shares)

78,697,109

78,683,537

968,379

9,831,728

79,665,488

88,515,265

322.92214.13

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

Increase in number of common stock
Share acquisition rights (Shares)
Weighted average number of diluted common stock(Shares)
Diluted earnings per share (Yen)(Note) The Company conducted a share split with a ratio of two-for-one on April 1, 2021. The figures for basic
earnings per share and diluted earnings per share were calculated on the assumption that the share split
was conducted at the beginning of the fiscal year ended March 31, 2021.

8. Subsequent events
Not applicable− 21 −

5. Others(1) Amounts of sales
Year ended March 31, 2021

Year ended March 31, 2022

Amount(Millions of yen)

Year-on-Year(%)

Amount(Millions of yen)

Year-on-Year
(%)

Gold

70,231132.8

76,584

109.0

Silver

4,287

103.9

5,481

127.9

Palladium

36,694122.7

46,880127.8

Platinum

7,334

111.5

10,672145.5

Industrial waste treatment

22,124

107.3

18,566

83.9

Other

24,105112.5

34,257

142.1

Total

164,776

121.5

192,442116.8− 22 −