Securities Code5857

Interim Business Report for FY2010
From April 1,2010 to September 30,2010

1

To Our Shareholders
I would like to express my thanks for your continuing
support and patronage.＿＿＿＿＿＿＿＿＿＿＿＿＿The Japanese economy has gradually recovered during
the second interim term (April of 2010 throughSeptember of 2010). However, in the latter half ofthe period, an optimistic ongoing forecast cannot be
maintained due to the growing awareness of an
economic downturn in Europe and the United States,
the completion of the implementation of all domestic
and foreign economic stimulus measures, and the sharp
increase in the yen.＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
Under such economic conditions, in line with the 5thMedium-Term Management Plan (April of 2009 throughMarch of 2012), we improved our basis for businessgrowth by constructing new domestic and overseas
r e cy c ling plant s and through M&A related toenvironmental protection businesses as well as wesecured and expanded profits by marketing efforts andcost-reduction activities. As a result, on 29, September,the Company Group raised our earnings forecast for theinterim term and the full fiscal year.＿＿＿＿＿＿＿＿
Performance by segment is as follows:＿＿＿＿＿＿＿In the precious metal recycling business, the volume of
metal collection and the average unit sales prices of all
the metals we deal in surpassed those of the previous
year because of the recovery in overall economic
activities and high market prices for metals.＿＿＿＿＿In the environmental protection business, the trading
volume of sludge, waste oil, waste reagents, andmedical-related waste surpassed the volume of theprevious year because domestic production activities
have slowly recovered.＿＿＿＿＿＿＿＿＿＿＿＿＿Based on the performance results above, our operating
results in the interim term are; consolidated net sales- 52,486 million yen, operating income - 5,597 million
yen, ordinary income - 5,475 million yen, net income- 3,202 million yen. The company has decided to
distribute an interim dividend of 25 yen per share.＿＿We appreciate your continuing understanding
and support in the business activities of ourGroup companies. ＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿CEO2

TOPICS
New Amagasaki Plant has started operation
The Company Group has completed its new Amagasaki plant. ＿＿This plant will be a core facility of a new project aiming at full-scale
entry into “the metal collection business field from so-called urban
mine, including used PCs and cellular phones.” We are installing new
equipment and performing operational testing in preparation for
full-blown operation in January, 2011.＿＿＿＿＿＿＿＿＿＿＿＿
Based on our accumulated knowhow, we will introduce advanced
technology to expand collection items for the purpose of establishing
the new business field.＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿

Asahi Pretec Korea Co., Ltd local plant
has started operationAsahi Pretec Korea Co., Ltd (Head Quarters: Seoul) has almost
completed its recycling plant (in Chungju) designed to “expand theelectronics business” and to “develop the dental materials business”
which is our first foreign venture prior to full-scale operation in January,
2011. Chungju City is approximately southeast 100 km of Seoul Cityand is located in the center of Korea.＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿

Ecomax Incorporated
has been incorporated within the Group
Ecomax Incorporated (in Kanagawa Prefecture) that merged into
our Group in August, 2010 is one of the few companies in Japanthat solidify with concrete industrial waste including cinder, sootand dust produced by incinerators and the like. ＿＿＿＿＿
Since many of our Group companies handle items that areprocessed by Ecomax Incorporated, a business synergy effectwithin the Group companies is expected.＿＿＿＿＿＿＿＿＿

3

Consolidated Financial Highlights
Net Sales (Millions of yen)Interim

Full-term

Ordinary Income (Millions of yen)Interim

10,858

126,444

10,000117,460

120,000

7,922

8,000

90,00060,000Full-term

12,000150,000

82,60379,3896,000

54,392

5,475
5,040

4,000

52,486

2,6912,357
2,000

35,85630,0000-514-2,0000
2008/3

2009/3

2010/3

2008/3

2011/3Net Income (Millions of yen)Interim

Full-term

8,000

2009/3

2010/3Net Income per Share (Yen)

2011/3
Interim

Full-term

210

6,450

180.93

180

6,000
150

135.90

4,377
120

4,000

2,000

99.32

3,202

2,960

90

1,566

1,439

82.07

60

42.08

48.63

30

00-565-2,0002008/3

2009/3

2010/3-30

2011/3

Total Assets/Net Assets/Equity Ratio (Millions of yen, %)60,000Net Assets

50,13950,00040,000Total Assets

Equity Ratio

59.3%

30,00027,075

59.6%
29,8972010/3

2011/3

1,200

51,5371,000

45,63457.5%
32,000-16.91
2009/3

Net Assets per Share (Yen)
65%

55,618

2008/3998.30935.05927.97840.18

62.5%
60%

800

32,213600
55%

20,00010,000

400
200

50%

0
2008/3

2009/3

2010/3

2010/940
2008/3

2009/3

2010/3

2010/9

Consolidated Financial Statements（Millions of yen）

Balance Sheet
As of September 30,
2010

ASSETS
Current assets
Cash and deposits
Notes and accounts receivable-trade

Merchandise and finished goods
Work in process
Raw materials and supplies
OtherAllowance for doubtful accounts
Noncurrent assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Intangible assets
Goodwill
Other
Investments and other assets

Total assets

22,194
2,498
5,233
3,550
8,959
493
1,468
(10)
29,34326,067
8,691
12,559
4,817
2,702
2,186
515
573

51,537（Millions of yen）

As of March 31,
2010

22,354
2,263
4,037
4,250
8,327
616
2,867
(8)
27,78425,156
8,751
12,440
3,964
2,139
1,571
567
489

50,139As of September 30,2010

LIABILITIESCurrent liabilities
Notes and accounts payable-trade
Short-term loans payable

As of March 31,2010

15,560
3,388
6,982
1000
800
731
54
2,603
3,764
234
3,529
19,324

19,8252,161
12,449
2,304
721
124
2,063
416
179
237
20,241

32,5284,480
6,063
27,840(5,856)30,061
4,480
6,054
25,444(5,917)

Valuation and translation adjustments
Valuation difference on available-forsale securities

(323)

(164)

15

14

Deferred gains or losses on hedges

(275)

(152)

Foreign currency translation adjustment(63)
832,21351,537(26)
29,89750,139Current portion of long-term loans payableIncome taxes payable
Provision for bonuses
Provision for repairs
OtherNoncurrent liabilities
Provision for retirement benefits
Other
Total liabilities
NET ASSETS
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock

Subscription rights to shares
Total net assets
Total liabilities and net assets

5Consolidated Financial Statements（Millions of yen）

Statements of Income
The six months
ended September
30, 2010

The six months
ended September
30, 2009

Net sales

52,48635,856

Cost of sales

44,63331,087Gross profit

7,853

4,768

Selling, general and administrative
expenses

2,255

2,045

Operating income

5,597

2,722

Non-operating income

3553

Non-operating expenses

156

85

5,475

2,691

Extraordinary income

10

Extraordinary loss

823

5,468

2,668

Income taxes-current

752

140

Income taxes-deferred

1,513

961

Income before minority interests

3,202

-

Net income

3,202

1,566

Ordinary income

Income before income taxes andminority interests（Millions of yen）

Statements of Cash FlowsThe six months
ended September
30, 2010

The six months
ended September
30, 2009

Net cash provided by (used in)operating activities

5,984

4,300

Net cash provided by (used in)investing activities(2,102)(1,219)Net cash provided by (used in)financing activities(3,341)(2,415)

Effect of exchange rate change
on cash and cash equivalents

(40)

27

Net increase in cash andcash equivalents

501

691

1,711

1,824

2,212

2,516

Cash and cash equivalents at
beginning of period
Cash and cash equivalents at
the end of period

6Stock Information/Corporate Profile■ Total number of authorized shares 129,000,000 shares■ Total number of shares outstanding 36,254,344 shares
100 shares■ Number of shares per trading unit
9,932
■ Number of shareholders■ Principal shareholders

Name

ASAHI HOLDINGS,INC.

Number ofshares held(thousands ofshares)

Percentageof shares
held (%)

3,517

9.70

Mitsuharu Terayama

1,452

4.01

Masamichi Terayama

1,402

3.87

TERA ENTERPRISES Co., Ltd.

1,350

3.72

(treasury stock)

Japan Trustee Services Bank,Ltd. (Trust account)

1,228

3.39

K&M Co., Ltd.

900

2.48

The Bank of New York 132561

875

2.41

The Master Trust Bank ofJapan, Ltd. (Trust account)

870

2.40

Sachiko Hanai

645

1.78

Junichi Mitsuzono

638

1.76

(As of September 30, 2010)■ Corporate Profile
Corporate name
FoundedCapital
Number of employees
Business lines

ASAHI HOLDINGS, INC.
April 2009（current ASAHI PRETEC.CORP
Established in 1952）¥4,480 million
1,204 (Consolidated)
Recycling and sales of precious & rare
metalsIndustrial waste treatment

Subsidiaries

Asahi Pretec Corp.
Japan Waste Corporation
Nihon Chemitech Co., Ltd.
JW Glass Recycling Co., Ltd.
Fuji Rozai Co., Ltd.
Ecomax Incorporated
Sansho Co., Ltd.
Shioiri Kenzai Co., Ltd.
Iyotec Co., Ltd.
Taiyo Chemical Co., Ltd.

Foreign subsidiariesAsahi G&S Sdn. Bhd. (Malaysia)
Shanghai Asahi Pretec Co., Ltd. (China)
Asahi Pretec Korea Co., Ltd. (Korea)■ Board of Directors and Corporate Auditors
CEODirectors

Standing Statutory Auditor
Statutory Auditor

Mitsuharu Terayama
Yoshikatsu Takeuchi
Tomoya Higashiura
Tsutomu Sakurai
Yukio Tanabe
Shoji Morii*
Sumiaki Ariumi*
Teigo Kobayashi*
Kazuhiko Tokumine**Outside cooperate executives pursuant to Article 2 of the Companies Act.

7

Business Network■ Head Offices K O B E Nissei Sannomiya Bldg., 4-4-17 Kano-cho, Chuo-ku, Kobe, 650-0001, Japan
Tel. +81-78-333-5633 (Pilot number) Facsimile +81-78-333-5681

T O K Y O Sapia Tower, 1-7-12 Marunouchi, Chiyoda-ku, Tokyo, 100-0005, Japan
Tel. +81-3-6270-1833 (Pilot number) Facsimile +81-3-6270-1859
http://www.asahiholdings.com■ Research Laboratory
■ P

lant

Techno Center (Kobe)s Saitama, Amagasaki, Kobe, Ehime,Kitakyushu, Kitakyushu Hibiki, Fukuoka■ Recycling Centers Saitama, Chiba, Amagasaki■ Offices

Sapporo, Aomori, Sendai, Niigata, Kitakanto, Kanto, Yokohama, Kofu, Shizuoka,Nagoya, Hokuriku, Kobe, Okayama,Hiroshima, Shikoku, Fukuoka, Kitakyushu,Kagoshima, Okinawa■ Bases with
ISO 14001

Head office (Kobe), Techno Center, Sendai,Kitakanto, Nagoya,Hanshin, Kobe, Shikoku,Kitakyushu, Fukuoka■ Bases with
ISO 9001

Techno Center, Saitama, Ehime, Fukuoka■ Hauling
47 prefectures and 62 government ordinance cities
BusinessPermission■ Disposal
15 prefectures and 10 government ordinance cities
BusinessPermission

8