Consolidated Financial Results for the First Quarter Ended June 30, 2024
ARE Holdings, Inc. [IFRS]July 31, 2024

Stock code:
Shares listed:

5857
Tokyo Stock Exchange - Prime Market

URL:
Representative:

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

For further information please contact:

Jiro Saito, General Manager, Corporate Planning &Communications Department

Start of dividend payment:(Phone) +81–3–6270–1833–

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

Yes
No(Rounded down to the nearest million yen)

1. Results of the three months ended June 30, 2024 (From April 1, 2024 to June 30, 2024)(1) Results of operations (cumulative)(Percentage: Changes relative to corresponding previous period)
OperatingprofitRevenue
The three months ended
June 30, 2024
June 30, 2023

Millions of yen

92,30062,582%Millions of yen

47.5 3,617–
2,461

Profit before
tax
%

47.0
–

Millions of yen

3,796
2,543

% Millions of yen

49.3
–

3,197
2,396

%

Millions of yen

33.4 3,197(43.9) 2,396

Basic earnings per share

Diluted earnings per share

Yen
41.83
31.26

Yen
37.99
28.56

The three months ended
June 30, 2024
June 30, 2023

Profitattributable toowners of parent

Profit%Total
comprehensive
incomeMillions of yen%

33.4 8,249 (22.8)(43.9) 10,688 19.1

(Note) During the fiscal year ended March 31, 2024, a share exchange was conducted between Japan Waste Corporation,
which was a consolidated subsidiary of the Company, and Renatus Co., Ltd., whereby Renatus Co., Ltd. became
the wholly owning parent company, and Japan Waste Corporation became the wholly owned subsidiary company,
resulting in the Japan Waste Corporation business being classified as discontinued operations. Consequently,
revenue, operating profit and profit before tax for the three months ended June 30, 2023, are presented in amounts
from continuing operations from which discontinued operations have been excluded.
(2) Financial Position

As ofJune 30, 2024
March 31, 2024

Total assets

Total equity

Equity attributable toowners of parent

Equity attributable toowners of parent ratio

Millions of yen
384,503
317,998

Millions of yen
130,397
126,476

Millions of yen
130,397
126,476

33.9
39.8

%

2. Dividend payments
Dividends per shareFirst quarter

Year ended March 31, 2024
Year ending March 31, 2025
Year ending March 31, 2025
(Forecast)Second quarter

Third quarter

Yen

Yen

Yen

Yen

Yen

–
–

45.00

–

45.00

90.00

40.00

–

40.00

80.00

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

Year-end

Annual3. Forecast (From April 1, 2024 to March 31, 2025)(Percentage: Changes relative to corresponding previous period)
OperatingprofitRevenue
Millions of yen

Six months ending
180,000
September 30, 2024
Year ending March 31, 2025 370,000% Millions of yen

Profitattributable toowners of parent

Profit beforetax% Millions of yen% Millions of yen%

Basic earnings
per share
Yen

24.8

8,500

49.1

8,300

40.7

6,304

19.9

82.66

14.8

18,00045.5

17,60041.6

13,148(46.3)

172.53(Note) Revisions in forecast in the current quarter: No* Notes(1)

Significant changes in the scope of consolidation during the period: No(2)

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

Number of issued shares (common stock)(i) Number of issued shares at the quarter end (including treasury stock)
As of June 30, 2024

79,708,688 shares

As of March 31, 2024

79,708,688 shares(ii) Number of treasury stock at the quarter end
As of June 30, 2024

3,563,054 shares

As of March 31, 2024

3,065,554 shares(iii) Averaged number of shares during the period (quarterly cumulative period)
Three months ended June 30, 2024

76,433,500 shares

Three months ended June 30, 2023

76,643,211 shares* Review of the Japanese-language originals of the attached quarterly consolidated financial statements by certified
public accountants or an audit firm: No* Statement regarding the proper use of financial forecasts and other special remarks(Notes on forward looking statements, etc.)
These forecast performance figures are based on the information currently available to the Company’s
management and certain assumptions judged rational. Accordingly, there might be cases in which actual resultsmaterially differ from forecasts of this report. Please refer to page 3 “1. Overview of Consolidated Operating
Results (3) Consolidated Performance Forecasts” for the assumptions used and other notes.

【Appendix】

Table of contents of the appendix

1. Overview of Consolidated Operating Results ................................................................................................................ 2(1) Overview of Consolidated Operating Results for the Three Months Ended June 30, 2024 .................................... 2(2) Overview of Consolidated Financial Position and Cash Flows for the Three Months Ended June 30, 2024 ........ 2(3) Consolidated Performance Forecasts......................................................................................................................... 3
2. Condensed Consolidated Financial Statements ............................................................................................................ 4(1) Condensed Consolidated Statements of Financial Position ..................................................................................... 4(2) Condensed Consolidated Statements of Income for the Three Months Ended June 30, 2024................................ 6(3) Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended June 30, 2024 ..... 7(4) Condensed Consolidated Statements of Changes in Equity..................................................................................... 8(5) Condensed Consolidated Statements of Cash Flows .............................................................................................. 10(6) Notes on Condensed Consolidated Financial Statements ...................................................................................... 11
Segment information.................................................................................................................................................. 11
Notes on assumptions for going concern ................................................................................................................... 12
Significant subsequent events ................................................................................................................................... 12－ 1 －1. Overview of Consolidated Operating Results(1) Overview of Consolidated Operating Results for the Three Months Ended June 30, 2024
The financial results for the three months ended June 30, 2024 were as follows.
Revenue

92,300 million yen(a year-on-year increase of 29,717 million yen,

Operating profit

3,617 million yen

or +47.5 percent)(a year-on-year increase of 1,156 million yen,

Profit before tax

3,796 million yen

or +47.0 percent)(a year-on-year increase of 1,253 million yen,

Profit attributable to owners of parent 3,197 million yen

or +49.3 percent)(a year-on-year increase of 801 million yen, or+33.4 percent)

As for the precious metal recycling business, the volume of gold collected grew on the back of rising gold
prices. The volumes of palladium, platinum, and rhodium collected were flat or slightly higher than in thesame period of the previous fiscal year for each precious metal. Although a loss due to a decline in rhodium
prices was incurred in the same period of the previous fiscal year, no loss due to a decline in rhodium prices
was incurred in the quarter under review. As for the precious metals refining business in North America,
although the sales volume of processed products was extremely low compared to the level in the same periodof the previous fiscal year, the precious metals refining business and trading business delivered strong
performance. As a result, revenue and operating profit in Precious Metals business segment increased fromthe same period of the previous fiscal year.
In the Environmental Preservation business, while the revenue and operating profit of Japan Waste
Corporation, which was classified as discontinued operations, are not included in the financial results for thethree months ended June 30, 2023, the share of profit (loss) of investments accounted for using equity methodof Renatus Co., Ltd. is included in operating profit in the financial results for the three months ended June 30,2024.

(2) Overview of Consolidated Financial Position and Cash Flows for the Three Months Ended June30, 2024
As of June 30, 2024, total assets amounted to 384,503 million yen, up 66,504 million yen from the previous
fiscal year end. This was mainly due to increases of 38,728 million yen in trade and other receivables and23,372 million yen in inventories.
Total liabilities amounted to 254,105 million yen, up 62,583 million yen from the previous fiscal year end.
This was due mainly to an increase of 61,212 million yen in bonds and loans payable.
Total equity amounted to 130,397 million yen, up 3,921 million yen from the previous fiscal year end. Thiswas due mainly to an increase of 8,249 million yen in comprehensive income and a decrease of 3,448 million
yen used for dividends.
As a result, the equity attributable to owners of parent ratio changed to 33.9%, from 39.8% at the end of theprevious fiscal year.
Net cash provided by operating activities amounted to 499 million yen due mainly to 3,796 million yen of
profit before tax, 692 million yen of depreciation and amortization, 23,354 million yen of increase ininventories, 48,312 million yen of increase in trade and other receivables, 42,451 million yen of increase intrade, loans and other payables, 17,204 million yen of interest and dividend income received and 2,161 million
yen of income taxes paid.
Net cash provided by investing activities amounted to 1,259 million yen due mainly to 5,364 million yen ofcollection of loans receivable, despite 833 million yen of purchase of property, plant and equipment, and 3,164
million yen of payments for loans receivable.
Net cash provided by financing activities amounted to 6,654 million yen due mainly to 11,118 million yen of
net increase in short-term loans payable, 999 million yen of purchase of treasury stock and 3,426 million yen
of cash dividends paid.

－ 2 －As a result, cash and cash equivalents as of June 30, 2024 increased by 7,638 million yen from March 31,
2024, to 14,520 million yen.

(3) Consolidated Performance Forecasts
No changes have been made to the forecasts going forward as they are in line with the financial forecast for
the fiscal year ending March 31, 2025 announced in the “Consolidated Financial Results for the Fiscal Year
Ended March 31, 2024” made public on April 25, 2024.

－ 3 －2. Condensed Consolidated Financial Statements(1) Condensed Consolidated Statements of Financial Position
As ofMarch 31,
2024

As of
June 30,
2024

Millions of yen

Millions of yen

ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables

6,881
155,268

14,520193,997

Inventories
Income tax receivables

33,87977

57,252
210

Other financial assets
Other current assets

17,76339,903

16,61235,199Total current assets

253,773

317,792

Non-current assets
Property, plant and equipment

33,19235,818Goodwill
Intangible assets

19
1,580

19
1,519

Investments accounted for using equity method
Deferred tax assets

27,665
528,139275

Net defined benefit asset
Financial assets

186
1,506

232
604

Other non-current assets

68

101

Total non-current assets

64,224

66,711

317,998

384,503

Total assets－ 4 －As ofMarch 31,
2024

As of
June 30,
2024

Millions of yen

Millions of yen

LIABILITIES and EQUITY
Liabilities
Current liabilities
Trade and other payables
Bonds and loans payable

27,18069,97030,548
131,577

Income tax payable
Other financial liabilities

2,387
6,465

318
1,848

Provisions
Other current liabilities

1,302
5,694

922
8,664

Total current liabilities

113,001

173,879

Non-current liabilities
Bonds and loans payable

71,19070,796

Deferred tax liabilities
Net defined benefit liability

4,432
99

6,211
108

Other financial liabilities

2,798

3,108

Total non-current liabilities

78,52180,225191,522254,105

7,790

7,790

Capital surplus
Treasury stock

12,245(5,925)

12,366(6,925)Retained earnings
Other components of equity

113,837(1,471)

113,606
3,559

Total equity attributable to owners of parent

126,476

130,397

Total equity

126,476

130,397

317,998

384,503

Total liabilities
EquityCapital stock

Total liabilities and equity－ 5 －(2) Condensed Consolidated Statements of Income for the Three Months Ended June 30, 2024

Continuing operations
Revenue

The three months
ended June 30,
2023

The three months
ended June 30,
2024

Millions of yen

Millions of yen

62,582

92,300

Cost of sales(58,169)(87,107)

Gross profit
Selling, general and administrative expenses

4,413(1,989)5,192(2,092)Other operating income
Other operating expenses

46
(9)

48
(3)

Share of profit (loss) of investments accounted forusing equity method–

473

Operating profit
Finance income

2,461
565

3,617
551

Finance costs

(483)

(372)

Profit before tax
Income tax expenses

2,543
(515)

3,796
(598)

2,027

3,197

368

–

2,396

3,197

Owners of parent
Non-controlling interests

2,396
–

3,197
–

Profit

2,396

3,197

Continuing operations
Discontinued operations

26.46
4.81

41.83
–

Total

31.26

41.83

Profit from continuing operations
Discontinued operations
Profit from discontinued operations
ProfitProfit attributable to:Earnings per share
Basic earnings per share (Yen)

Diluted earnings per share (Yen)Continuing operations

24.29

37.99

Discontinued operations

4.27

–

Total

28.56

37.99

－ 6 －

(3) Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended
June 30, 2024

Profit

The three months
ended June 30,
2023

The three months
ended June 30,
2024

Millions of yen

Millions of yen

2,396

3,197

(45)

20

(45)

20

5,891
2,447

3,399
1,631

8,338

5,031

Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plans
Total items that will not be reclassified to profit
or loss
Items that may be reclassified to profit or loss
Cash flow hedges
Translation adjustments of foreign operations
Total items that may be reclassified to profit orloss
Other comprehensive income, net of tax

8,292

5,051

10,6888,249

Owners of parent
Non-controlling interests

10,688–8,249–

Comprehensive income

10,6888,249

Comprehensive income
Comprehensive income attributable to:－ 7 －(4) Condensed Consolidated Statements of Changes in Equity(Millions of yen)
Equity attributable to owners of parent
Other components ofequityCapitalTreasury
Retained
Translation
surplusstockearnings
adjustments
Cash flowof foreign
hedgesCapitalstock

operations

Balance at April 1, 2023
ProfitOther comprehensive
incomeTotal comprehensive
incomePurchase of treasury stock
Dividends
Reclassified from othercomponents of equity toretained earnings
Share-based paymenttransactions
Total transactions withownersBalance at June 30, 2023

7,790
–

12,103–(5,925)–96,319
2,396

(886)
–

(2,443)
–

–

–

–

–

2,447

5,891

–

–

–

2,396

2,447

5,891

–
–

–
–

(0)
–

–
(3,448)

–
–

–
–

–

–

–

(45)

–

–

–

58

–

–

–

–

–

58

(0)

(3,494)

–

–

7,790

12,162(5,925)

95,220

1,560

3,447

(Millions of yen)
Equity attributable to owners of parent
Other components ofequityRemeasurements ofdefinedbenefit plans
Balance at April 1, 2023
ProfitOther comprehensive
incomeTotal comprehensive
incomePurchase of treasury stock
Dividends
Reclassified from othercomponents of equity toretained earnings
Share-based paymenttransactions
Total transactions withownersBalance at June 30, 2023

Total

Total

Total equity––(3,330)–106,957
2,396

106,957
2,396

(45)

8,292

8,292

8,292

(45)

8,292

10,688

10,688

–
–

–
–

(0)
(3,448)(0)(3,448)

45

45

–

–

–

–

58

58

45

45

(3,390)(3,390)–

5,007

114,255

114,255－ 8 －(Millions of yen)
Equity attributable to owners of parent
Other components ofequityCapitalTreasury
Retained
Translation
surplusstockearnings
adjustments
Cash flowof foreign
hedgesCapitalstock

operations

Balance at April 1, 2024
ProfitOther comprehensive
incomeTotal comprehensive
incomePurchase of treasury stock
Dividends
Reclassified from othercomponents of equity toretained earnings
Share-based paymenttransactions
Total transactions withownersBalance at June 30, 2024

7,790
–

12,245–(5,925)–

113,837
3,197

2,341
–

(3,813)
–

–

–

–

–

1,631

3,399

–

–

–

3,197

1,631

3,399

–
–

–
–

(999)
–

–
(3,448)

–
–

–
–

–

–

–

20

–

–

–

120

–

–

–

–

–

120

(999)

(3,428)

–

–

7,790

12,366(6,925)

113,606

3,973

(414)

(Millions of yen)
Equity attributable to owners of parent
Other components ofequityRemeasurements ofdefinedbenefit plans
Balance at April 1, 2024
ProfitOther comprehensive
incomeTotal comprehensive
incomePurchase of treasury stock
Dividends
Reclassified from othercomponents of equity toretained earnings
Share-based paymenttransactions
Total transactions withownersBalance at June 30, 2024

Total

Total

Total equity––(1,471)–

126,476
3,197

126,476
3,197

20

5,051

5,051

5,051

20

5,051

8,249

8,249

–
–

–
–

(999)
(3,448)(999)(3,448)

(20)

(20)

–

–

–

–

120

120

(20)

(20)

(4,327)(4,327)–3,559

130,397

130,397－ 9 －(5) Condensed Consolidated Statements of Cash FlowsThe three months
ended June 30,
2023

The three months
ended June 30,
2024

Millions of yen

Millions of yen

Profit before tax
Profit before tax from discontinued operations

2,543
593

3,796
–

Depreciation and amortization
Finance income and finance cost

879
1,211

692
1,981

–

(473)

Decrease (increase) in inventories
Decrease (increase) in trade and other receivables(3,185)(32,585)(23,354)(48,312)

Increase (decrease) in trade, loans and other payables
Other, net

34,892
207

42,451
8,717

SubtotalInterest and dividend income received

4,557
92

(14,502)
17,204

Interest expenses paid
Income taxes paid

(86)
(1,555)(40)(2,161)

Net cash provided by (used in) operating activities

3,007

499

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

(103)

(223)

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

2,735
(975)

111
(833)

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

3
(372)

3
(67)

(13,264)
21(3,164)
5,364

Cash provided by (used in) operating activities

Share of loss (profit) of investments accounted for using equity
methodPayments for loans receivableCollection of loans receivable
Other, net
Net cash provided by (used in) investing activities
Cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable

(138)

68

(12,095)

1,259

(24)

11,118Proceeds from long-term loans payable
Purchase of treasury stock

13,737
(0)

–
(999)

Cash dividends paid
Other, net(3,428)(84)(3,426)(37)

10,199(1,964)

6,654
(774)

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

(852)

7,638

Cash and cash equivalents at beginning of period

17,952

6,881

Cash and cash equivalents at end of period

17,09914,520－ 10 －

(6) Notes on Condensed Consolidated Financial Statements
Segment information(1) Overview of reporting segments
The Group’s business segments are those Group constituent units for which separate financial
information is obtainable, and which the Board of Directors subjects to regular examination in order todecide the allocation of management resources and evaluate business results.
As a pure holding company, the Company is in charge of overall strategic function for the Group,
whereas operating companies of the Group engage in the precious and rare metals recycling business andthe refining and processing business, industrial waste management and other environmental preservation
business.
Therefore, the Group is composed of product and service segments based on business sectors. The tworeporting segments are the Precious Metals business and the Environmental Preservation business.
Meanwhile, these reporting segments are not aggregated.
The Precious Metals business engages mainly in recycling and selling precious and rare metals such as
gold, silver, palladium, platinum, and rhodium from scrap containing precious metals, as well as refining
and processing of precious metals centered on gold and silver. The main work of the Environmental
Preservation business is the collection, transport and intermediate processing of industrial waste.
(2) Segment revenue and performance
Revenue and other performance of each reporting segment of the Group are as follows.
For the three months ended June 30, 2023 (from April 1, 2023 to June 30, 2023)
Reporting segment(Millions of yen)

Precious
MetalsBusiness

Environmental
Preservation
Business

Subtotal

62,576–

62,576

5

62,582–62,582

–

–

–

–

–

–

–

Total

62,576–

62,576

5

62,582–62,582

Operating profit
by business

2,523

–

2,523

(62)

2,461

–

2,461

Revenue
External
revenue
Intersegment
revenue

Other

Total

Adjustments

Consolidated

segment
Finance income
Finance costs

565
(483)

Profit before tax

2,543－ 11 －

For the three months ended June 30, 2024 (from April 1, 2024 to June 30, 2024)
Reporting segment(Millions of yen)

Precious
MetalsBusiness

Environmental
Preservation
Business

Subtotal

92,285–92,28514

92,300–92,300

–

–

–

–

–

–

–

92,285–92,28514

92,300–92,300

3,225

472

3,697

(79)

3,617

–

3,617

Other

Total

Adjustments

Consolidated

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

551

Finance costs(372)

Profit before tax

3,796

Notes on assumptions for going concern
Not applicable

Significant subsequent events
Not applicable－ 12 －