Consolidated Financial Results for the Third Quarter Ended December 31, 2014
Asahi Holdings, Inc.
February 2, 2015
Stock code:

5857

Shares listed:Tokyo Stock Exchange (First Section)

U R L:

http://www.asahiholdings.com

Representative

Mitsuharu Terayama, President and CEO

For further information please contact:

Keitaro Shigemasa, Director(Phone) +81-3-6270-1833

Filing date of Quarterly Report:

February 13, 2015

Scheduled date of start of dividend payment:－
Supplementary materials for the financial results: No
Investor conference for the financial results: No(Rounded down to the nearest million yen)
1. Results of the nine months ended December 31, 2014 (From April 1, 2014 to December 31, 2014)(1) Results of operations (cumulative)(Percentage changes relative to previous corresponding period)
Net sales
The nine months ended
December 31, 2014
December 31, 2013
(Note) Comprehensive income

Millions of yen％

Operating income

Ordinary income

Millions of yen

Millions of yen％

80,224 13.5
7,413
(0.7)
70,654 (2.1)
7,465－
The nine months ended December 31, 2014
The nine months ended December 31, 2013
Net income per share

Net income％

Millions of yen

7,497 (2.6)
4,564
7,695
－
4,678
4,531 million yen (10.3％)
5,049 million yen －

％

(2.4)
－

Diluted net income per share

The nine months ended
Yen
Yen
December 31, 2014139.94－
December 31, 2013
143.83－(Note) Retrospective restatement was carried out for the fiscal year ended March 31, 2014, in line with a change inaccounting policy. Consequently, year-on-year changes are not provided.
(2) Financial Position
Shareholders’ equity
ratio
As of
Millions of yen
Millions of yen％
December 31, 2014
74,13949,51966.2
March 31, 2014
66,112
46,491
70.1(Reference) Shareholders’ equity
As of December 31, 2014
49,097 million yen
As of March 31, 2014
46,347 million yen
Total assets

Net assets

2. Dividend payments

Year ended March 31, 2014
Year ending March 31, 2015
Year ending March 31, 2015
(Forecast)

Dividends per share
Second quarter
Third quarter
Yen
Yen
30.00
－
30.00
－

First quarter
Yen－－

Year-end
Yen
30.00

Annual
Yen
60.00

30.00

60.00

(Note) Revisions in dividend forecast in the current quarter : No
3. Forecast (From April 1, 2014 to March 31, 2015)(Percentage changes relative to previous corresponding period)
Net income
Operating income
Ordinary income
Net income
per share

Net sales
Millions of Yen

Year ending March 31, 2015

111,000％

17.8

Millions of Yen

10,400(Note) Revisions in forecast in the current quarter : No％

Millions of Yen％

8.0

10,300

3.1

Millions of Yen ％

6,400

7.2

Yen

196.14

*Notes(1) Changes in important subsidiaries during the current quarter: No(2) Application of special accounting methods for quarterly consolidated financial statements: No(3) Changes in accounting policies, accounting estimates and restatement(i) Changes in accounting policies resulting from the revision of the accounting standards and otherregulations: Yes(ii) Changes other than (i) above: Yes(iii) Changes in accounting estimates: No(iv) Restatement: No
For details, please refer to “(3) Changes in Accounting Policies, accounting estimates and restatement”
under “2. Notes Regarding Summary Information” on page 3.
(4) Number of issued shares (common stock)(i) Number of issued shares at the quarter end (including treasury shares)
As of December 31, 201436,254,344 shares
As of March 31, 201436,254,344 shares(ii) Number of treasury shares at the quarter end
3,519,007 shares
As of December 31, 2014
As of March 31, 2014
3,672,457 shares(iii) Averaged number of shares during the period (quarterly cumulative period)
32,620,397 shares
Nine months ended December 31, 2014
Nine months ended December 31, 2013
32,529,616 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. As of the disclosure of the financial results, the procedures for reviewing
quarterly financial statements pursuant to the Financial Instruments and Exchange Act are in progress.
*Statement regarding the proper use of financial forecasts and other special remarks
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
results materially differ from forecasts of this report. Please refer to page 2 “1. Qualitative Information (3)Consolidated Performance Forecasts”.

【Appendix】

Table of contents of the appendix

1. Qualitative Information .......................................................................................................................... 2(1) Consolidated Business Performance....................................................................................................... 2(2) Consolidated Financial Position ............................................................................................................. 2(3) Consolidated Performance Forecasts ...................................................................................................... 2
2. Notes Regarding Summary Information ................................................................................................ 3(1) Changes in important subsidiaries during the current quarter ...................................................... 3(2) Application of special accounting methods for quarterly consolidated financial statements ........ 3(3) Changes in accounting policies, accounting estimates and restatement ........................................ 3
3. Consolidated Financial Statements ........................................................................................................ 4(1) Consolidated Balance Sheets ............................................................................................................. 4(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income .... 5
Consolidated Statements of Income for the nine months ended December 31, 2014....................................... 5
Consolidated Statements of Comprehensive Income for the nine months ended December 31, 2014 ............. 5(3) Notes on Consolidated Financial Statements ................................................................................... 6(Notes on Assumptions for Going Concern) ........................................................................................................ 6(Notes in case of Significant Changes to Shareholders’ Equity) ........................................................................ 6(Segment Information, etc.) ................................................................................................................................. 6

1

1. Qualitative Information(1) Consolidated Business Performance
During the first three quarters of the current fiscal year (April 1 through December 31, 2014), the Japanese
economy showed some signs of recovery in terms of corporate capital investment and the employment
environment against the backdrop of the government's economic policies and monetary easing by the Bank ofJapan. As for exchange rates, the yen tended to fall. Although the effect of the falling yen on corporate
activities tended to vary greatly according to factors such as industry, scale, and degree of overseas
development, devaluation of the yen in response to the Bank of Japan's announcement of further easing wasextremely rapid. Furthermore, the continued fall in crude oil prices eased energy costs, contributing tocorporate profits, but the future direction of prices is opaque. In personal consumption, despite thepostponement of a second tax increase, the backlash following the demand surge before the April
consumption tax rise continued. The timing and scale of the effects of wage rises on household budgets willaffect consumption. In the construction market, rising prices for construction materials and tight supply anddemand of construction-related workers led to construction work delays.
Under these economic conditions, the company's results in each business were as follows.
Sales in the precious metals recycling business decreased by about 4 percent from the corresponding perioda year earlier. In the electronics sector, the domestic market is contracting due to customers shifting
operations overseas, but expansion of precision cleaning business and overseas business made up the
difference, resulting in an increased volume of collection of gold compared with the same period a year before.
In the jewelry sector, the sluggish market continued, and although marketing efforts increased market share,
the volume of collection of gold decreased versus the same period one year earlier. In the automotive catalyst
sector, efforts to develop new customers among automobile dismantling businesses nationwide led to a
year-on-year increase in the volume of collection of platinum and palladium. Additionally, because usage ofsilver in the photographic, printing, and electronics sectors is decreasing, the volume of collection of silver
was less than it was during the same period a year earlier.
Although dollar-denominated average sales prices for gold and silver fell sharply, this was offset by thedevaluation of the yen. Still, the prices were lower than they were a year earlier. Average sales price for
palladium was higher than a year before, mainly because of industrial demand such as increased use in theautomotive catalyst sector. Average sales price for platinum was about the same as it was the year before.
In the environmental preservation business, the volume of waste on the domestic market is decreasing,reflecting changes in domestic production activities. Amidst these circumstances, Group companies worked todevelop new clients and new contracts and managed to increase collection volumes of effluent, sludge, and soon.
In the life and health business that was newly added during the second quarter, the health equipment
sector was affected by a sharp increase in the price of imported materials during the third quarter due to therapid devaluation of the yen and by sluggish personal consumption following the consumption tax increase.
Additionally, design and installation of air-conditioning systems was affected by construction expense
reduction and construction work delays.
As a result of the above, as consolidated results for the nine-month period, we recorded net sales of 80,224
million yen, up 9,569 million yen (+13.5%) year-on-year; operating income of 7,413 million yen, down 51
million yen (-0.7%) year-on-year; ordinary income of 7,497 million yen, down 198 million yen (-2.6%)
year-on-year; and net income of 4,564 million yen, down 113 million yen (-2.4%) year-on-year.
Looked at by segment, sales in the precious metal recycling business were 56,179 million yen, down 2,304
million yen (-3.9%) year-on-year; sales in the environmental preservation business were 11,293 million yen,
up 531 million yen (+4.9%) year-on-year; and sales in the life and health business were 12,750 million yen, up
11,342 million yen (+805.2%) year-on-year.
The company resolved in its December 2014 Board Meeting that its consolidated subsidiary Asahi Americas
Holdings, Inc. will acquire shares of Johnson Matthey Gold and Silver Refining Holdings Limited and make ita subsidiary.
Turning the company into a subsidiary will expand our business regions and sectors and achieve synergies
through the integration of the companies' technologies and procurement and sales networks. The plan willlead to greater growth potential and profitability for our group.

(2) Consolidated Financial Position
As of December 31, 2014, total assets amounted to 74,139 million yen, up 8,026 million yen from theprevious fiscal year end. This was due mainly to the increase of 6,385 million yen in goodwill and the increaseof 1,398 million yen in notes and accounts receivable-trade.
Total liabilities amounted to 24,620 million yen, up 4,998 million yen from the previous fiscal year end.
This was due mainly to the increase of 3,101 million yen in notes and accounts payable-trade and the increaseof 3,388 million yen in loans payable.
Net assets totaled 49,519 million yen, up 3,027 million yen from the previous fiscal year end. This was due
mainly to the increase in retained earnings resulting from the recording of 4,564 million yen in net income.
As a result, the shareholders’ equity ratio changed to 66.2%, from 70.1% at the end of the previous fiscal
year.

(3) Consolidated Performance Forecasts
Consolidated performance forecast for the fiscal year has not changed from the forecast announced on July29, 2014.

22. Notes Regarding Summary Information(1) Changes in important subsidiaries during the current quarter
Not applicable(2) Application of special accounting methods for quarterly consolidated financial statements
Not applicable(3) Changes in accounting policies, accounting estimates and restatement
Changes in accounting policies(Change in valuation method for inventories)
Our method for valuation of inventories has been mainly the weighted-average method (the method of
write-downs based on the decrease in profitability in order to calculate the inventory value on the balance
sheet). Beginning with the first quarter of the current fiscal year, we changed to mainly themoving-average method (the method of write-downs based on the decrease in profitability in order tocalculate the inventory value on the balance sheet).
The aims of this change are to respond to fluctuations in metals prices, carry out management of
inventories by item and by process precisely and on time, value inventories, and perform periodic
accounting of profit and loss more accurately. It accompanies the introduction of a new IT system.
Because we did not preserve the inventory receipts and payments records that would be needed in orderto calculate unit costs with the moving-average method for past fiscal years, it is impossible toretroactively apply this accounting policy to determine cumulative effects. Therefore, the book values ofinventories at the end of the previous fiscal year were carried over as initial balances for the current fiscal
year, with the moving-average method being used from the beginning of this term.
Compared to the past method, it decreases operating income, ordinary income, and quarterly income
before income taxes and others for the third quarter of the current term by 38 million yen each, andquarterly net income by 24 million yen.
(Application of the "Practical Solution on Transactions of Delivering the Company’s Own Stock to
Employees etc. through Trusts")
We began applying the "Practical Solution on Transactions of Delivering the Company’s Own Stock to
Employees etc. through Trusts" (ASBJ PITF No. 30, December 25, 2013) during the first quarter of thecurrent fiscal year. When we deliver treasury stock to the trust, we recognize the disposal balance. Profit
or loss related to sales of shares by the trust to the employee stock ownership plan, dividends paid by us onshares held by the trust, and net charges related to the trust are included by us as liabilities. This changein accounting policy was applied retrospectively to past fiscal years, and the results are included in therelevant quarterly financial statement and full-year financial statement.
Consequently, compared with figures before this retroactive application, as of the end of the previous
fiscal year, other current liabilities increased by 124 million yen, and capital surplus decreased by 69
million yen, retained earnings decreased by 67 million yen, and treasury stock decreased by 4 million yen.
This retroactive application had only a slight impact on profit and loss during the third quarter of theprevious fiscal year.

33. Consolidated Financial Statements(1) Consolidated Balance Sheets

ASSETS
Current assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Total noncurrent assets
Total assets

As ofMarch 31,
2014

As of
December 31,
2014

Millions of yen

Millions of yen

As ofDecember 31,
2014
Thousands of
U.S. dollars

9,640
11,319
4,094
8,596
1,107
2,879
(120)
37,517

5,971
12,717
4,471
10,024
1,704
2,123
(128)
36,88449,534105,496
37,092
83,15814,141
17,615(1,068)305,967

8,979
13,122
2,304
24,4079,804
14,492
2,314
26,611

81,331
120,222
19,201
220,754

2,021
835
2,856
1,331
28,595
66,112

8,407
872
9,279
1,363
37,255
74,13969,741
7,239
76,98011,311
309,045
615,012LIABILITIESCurrent liabilities
Notes and accounts payable - trade
3,643
6,744
55,949
Short-term loans payable
495
2,450
20,324Current portion of long-term loans payable
143
324
2,692
Income taxes payable
2,635
653
5,422
Provision for bonuses
600
303
2,514
Provision for directors' bonuses
39－－
Provision for repairs
101
81
676
Provision for product warranties
16
83
690
Provision for sales rebates
345
2,863
－
Provision for sales returns
11
93
－
Other
4,668
5,060
41,976
Total current liabilities
12,342
16,057133,199
Noncurrent liabilities
Long-term loans payable
5,419
6,672
55,347
Net defined benefit liability
122
121
1,005
Other
1,736
1,769
14,679Total noncurrent liabilities
7,278
8,562
71,032
Total liabilities
19,621
24,620204,231
NET ASSETS
Shareholders' equity
Capital stock
4,480
4,480
37,170Capital surplus
6,038
6,038
50,093Retained earnings
40,64843,249358,767
Treasury stock(5,379)(5,159)(42,800)
Total shareholders' equity
45,78848,609403,231
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
15
21
177
Deferred gains or losses on hedges
(121)
(303)
(2,517)
Foreign currency translation adjustment
665
769
6,386
Total accumulated other comprehensive income
559
487
4,046
Subscription rights to shares
77
77
646
Minority interests
66
344
2,857
Total net assets
46,49149,519410,781TOTAL LIABILITIES AND NET ASSETS
66,112
74,139615,012
U.S. dollar amounts represent translations using the approximate exchange rate on December 30, 2014 of
Yen120.55=US$1, and are included solely for the convenience of readers.

4(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income for the nine months ended December 31, 2014

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Non-operating expenses
Ordinary income
Extraordinary income
Extraordinary loss
Income before income taxes and minority interests

Income taxes-current
Income taxes-deferred
Total income taxes
Income before minority interests
Minority interests in income (loss)
Net income

The nine months
ended December 31,
2013
Millions of yen

The nine months
ended December 31,
2014
Millions of yen

The nine months
ended December 31,
2014
Thousands of
U.S. dollars

70,654
59,221
11,433
3,968
7,465
266
35
7,695
43
119
7,619
2,774
166
2,941
4,678
(0)
4,678

80,224
63,985
16,238
8,825
7,413
139
55
7,497
18
91
7,424
2,425
398
2,823
4,601
36
4,564

665,484
530,777
134,707
73,20961,4981,157
464
62,192157
760
61,59020,1173,305
23,422
38,168300
37,867

Consolidated Statements of Comprehensive Income for the nine months ended December 31, 2014
The nine months
ended December 31,
2013
Millions of yen

The nine months
ended December 31,
2014
Millions of yen

The nine months
ended December 31,
2014
Thousands of
U.S. dollars

4,678

4,601

38,168

(0)
55
303

6
(182)
129

54
(1,510)
1,072

13

(23)

(194)

371
5,049

(69)
4,531

(579)
37,589

5,046
3

4,493
38

37,273315

Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Share of other comprehensive income of associates
accounted for using equity method
Total other comprehensive income
Comprehensive income(Comprehensive income attributable to)Comprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests

U.S. dollar amounts represent translations using the approximate exchange rate on December 30, 2014 of
Yen120.55=US$1, and are included solely for the convenience of readers.

5(3) Notes on Consolidated Financial Statements(Notes on Assumptions for Going Concern)
Not applicable(Notes in case of Significant Changes to Shareholders’ Equity)
Not applicable(Segment Information, etc.)[Segment information]
Ⅰ For the nine months ended December 31, 2013(From April 1, 2013 to December 31, 2013)
1. Information on sales and income (loss) by reporting segment
Life and healthbusiness(Millions of Yen)

Precious metal recycling
business

Environmental
preservationbusiness

1) Customers
2) Intersegment

58,483－

10,762－

1,408－

70,654－

Total

58,483

10,762

1,408

70,654

6,070

1,287

106

7,465

Total

Net sales

Segment income(Note) Total segment income matches operating income recorded on the consolidated statements of income.
2. Impairment losses on noncurrent assets, goodwill, etc. by reporting segment
Not applicable
Ⅱ For the nine months ended December 31, 2014(From April 1, 2014 to December 31, 2014)
1. Information on sales and income (loss) by reporting segment
Life and healthbusiness(Millions of Yen)

Precious metal recycling
business

Environmental
preservationbusiness

56,17911,29312,75080,224－－－－56,17911,29312,75080,224

5,733

1,367

313

7,413

Total

Net sales
1) Customers
2) Intersegment
Total
Segment income(Note) Total segment income matches operating income recorded on the consolidated statements of income.
2. Changes in reporting segments
In accordance with the acquisition of shares of FUJI MEDICAL INSTRUMENTS MFG. CO., LTD.,aiming to contribute to the appropriate disclosure of management information, the previous segment of“Environmental preservation business” has been divided into two segments of “Environmental preservation
business” and “Life and health business”.
Accordingly, our reporting segments are following three: “Precious metal recycling business”,“Environmental preservation business” and “Life and health business”.
The main line of “Environmental preservation business” is collection, transportation of industrial wastes
and intermediate treatments.
The main line of “Life and health business” is manufacturing and selling of health-related products suchas massaging tools, hearing aids, manufacturing and selling of electric heating equipments, design andconstruction of radiant air-conditioning systems, design and construction of facilities for disasterprevention.
An retroactively adjusted version of ”Segment information” presented in the earnings report for the third
quarter of the previous fiscal year has been published to reflect the change in reporting segments.
3. Impairment losses on noncurrent assets, goodwill, etc. by reporting segment(Material impairment loss on noncurrent assets)
Resulting from the plan to sale a part of land and buildings, their book value was reduced to therecoverable amount, and the reduced amount was posted as impairment losses under extraordinary losses.
Consequently, impairment losses were recorded in the amount of 34 million yen in the precious metal
recycling segment.

6