Asahi Industries
Group Report
2016

1

1

The Earth is moving.

What we are working towards.

Asahi Industries is

The realization of a plentiful society that organicallycreating tomorrow,again today.

ties the past to the present and the present to the
future through resource recycling.
Our role in that society is to be a driver sitting at
the center of that cycle, using our technical expertiseto seek out, utilize and restore resources so that
Earth’ s wealth becomes the riches of tomorrow.
The steel and agriculture sectors that we work inare paving the way for a new future for society.
The Earth is moving, and a new tomorrow is coming.
We will continue to be a company that is always at
the forefront of creating new possibilities for resources.

22

INDEXManagement Principles
Being honest, fair, and loved by all, both now and forgenerations to comeContinuing to provide products and services of high quality

Principles

CSR Guidelines
Focusing on appreciating and contributing
to the community

CSR

Environmental Guidelines

Environmental

Guidelines

Guidelines

Contributing to the environment by decreasing

4

The Asahi Industries Story

6

Medium-term Management Plan

Management

and value while contributing to the global environment

TOP MESSAGE―Financial Results for FY2015

7

Medium-term Management Plan
(FY2016-2018)

8

Financial Results for FY2015

11

Business Summary

13

Steel Business

15

Crushed Stone and Material Recycling
Business (Jobu Co., Ltd.)

19

Agribusiness21

environmental impacts, preventing global

The Environment, Governance &warming and achieving zero emissions

Social Responsibility

Corporate Icon

27

Environment

28

Governance

33

CSR Activities

36

Financial Data, Corporate Information,
Investors Information

With the “A” of Asahi Industries at its center connecting circles that37

symbolize “Sun”, “Nature” and “Earth”, our corporate icon expresses

Financial Data38

our management vision of contributing to the global environment.

Corporate Information

41

Investors Information

42

3

T O P M E S S AG E
In the 80 years since it was founded, the Asahi Industries Group has endeavored to “contributeto the global environment and its communities”, honoring its commitment to being “a company
that is respected by everyone”.
Our goal as a Group is to help create a sustainable society through our operations, from recycling
steel scrap into solid steel reinforcing for buildings, bridges and expressways through to producing
safe, high-quality organic fertilizers* from livestock manure and waste products such as poultry
feathers, oil cake and the wastewater from food and beverage plants.
In the period from FY2010 to FY2013, Asahi Industries experienced unavoidable losses due tothe severe business downturn following the Great East Japan Earthquake including the fourmonth shutdown of our steelmaking plant due to snow damage in February 2014.
However, with the normalization of the market and thanks to the huge eﬀort put in by all our
employees, our results quickly recovered to take us back into positive territory in FY2014. This continued so well through into FY2015 that proﬁts signiﬁcantly exceeded
our initial forecasts and we were able to resume paying dividends for the ﬁrst time in three ﬁscal years. We owe a sincere debt of gratitude to all the shareholders,customers, business partners and other stakeholders who kept the faith and supported us throughout such exceptionally diﬃcult times.
In FY2015, at the same time as we were striving to fully restore our business performance, we were also working hard on formulating our medium-term business plan.
Following extensive discussions on the future shape of the Asahi Industries Group, on May 10, 2016 we released the “ASAHI 2018 Project” -- our strategies for FY2016-2018 built around the keyword of “Speciality (clear strengths)”.
In order to ensure that we continue to be proﬁtable and contribute to the community into the future, we fully commit ourselves to implementing the ASAHI 2018
Project as the way forward to 2020 and beyond.
We look forward to your continuing support.
July 2016
President
Masanori Murakami*Organic fertilizer in this report refers to fertilizer containing 20% or more organic materials.

44To create a truly sustainable society

The efforts that the Asahi Industries Group is making tobuild a sustainable society are actually already part andSteel BusinessDeformed bars (rebar)

Seed Business
Seeds

Fertilizer BusinessFertilizer for farmers

Steel Business
Structural steels

Hay Business
Hayparcel of everyone’ s daily lives.

Our activities now cover a broad spectrum through our
Steel Business, Agribusiness and Crushed Stone andMaterial Recycling Business.

In the future, our work recycling valuable resources will
inevitably become even more wide-ranging.

Steel BusinessThreaded deformed bars

5

Jobu Co., Ltd.
Crushed stone

Fertilizer BusinessFertilizer for home gardens

Jobu Co., Ltd.
Wood chips

The Asahi Industries Story
1935

Asahi Chemical
Fertilizer Co., Ltd.
established

Asahi Chemical Fertilizer Co., Ltd. is established.
Predecessor of the fertilizer business (Amagasaki-shi, Hyogo Prefecture)

1936

Japan Nickel Co., Ltd.
established

1935

1936

Japan Nickel Co., Ltd. is established.
Seibu Chemical
Industries Co., Ltd.

Predecessor of the steel business (Kodama-gun, Saitama Prefecture)

1960

1960

Asahi Chemical Fertilizer Co., Ltd. takes over the steel division of Japan Nickel
Co., Ltd. and the company name is changed to Seibu Chemical Industries Co., Ltd.
Gives rise to an integrated business model: “steel and fertilizer ”.

Asahi Industries Co., Ltd.

1991

Asahi Industries leaves the Saison Group1991

The current Asahi Industries Co., Ltd. is established.

1995

Johnson Asahi Pty. Ltd. is established as a joint venture.(Victoria, Australia)

2003

Listed on the JASDAQ Securities Exchange

2003

Asahi Industries leaves the Saison Group.

2005

The company is listed on the JASDAQ Securities Exchange.

2005(Currently JASDAQ on the Tokyo Stock Exchange, Inc.)2011

Laiyang Longda Asahi Agricultural Technology Co., Ltd. is established as a joint venture(Shandong Province, China)
6

MEDIUM-TERM
MANAGEMENT PLAN
FINANCIAL RESULTSFOR FY2015
Medium-term Management Plan ― Financial Results for FY2015

7

7

Medium-term Management Plan (FY2016-2018)
The Asahi Industries Group has drawn up “ASAHI 2018 Project” as its new management guidelines for the three years starting April 1, 2016.

The Steel Business is anticipating strong demand from proposals for the Tokyo Olympics slated for 2020 and metropolitan redevelopment proposals.

In the Agribusiness sector, we are anticipating ongoing stable demand for granular organic fertilizers, one of our leading products.

But we also anticipate signiﬁcant changes in the market environment for both steel and agribusiness after FY2019, so we have developed a business strategy,
a management fundamentals enhancement strategy and a ﬁnance strategy.

Key Strategies

Basic Policies

Business strategy

A company with “Specialities (clear strengths)”
as supporters of a sustainable society● Focus resources on manufacturing and selling products backed byt echnical and developmental exper tise and enhance our “ speciality
areas (areas where we are strong)”● Strive for real cost reductions t h r o u g h measures such as lowering
specific power consumption and improving productivity

Our goal is to be a leader in “ Speciality areas (areas of particulars t r e n g t h ) ”, c o m m i t t e d t o excellence a n d t o f u r t h e r e n h a n c i n g o u rtechnological and developmental capabilities.

Management fundamentals enhancement strategy

Slogan● Reform our corporate governance regime through measures such as
reorganizing, transitioning to a company with an audit and supervisorycommittee, and reviewing our committee structures● Broaden our “human resources” base through measures such as
introducing an executive officer system and reforming our humanresources systems

ASAHI 2018 Project
A mbition
Speciality
ActionH igh quality
I nnovation

With great ambition,
to be a leader in speciality areas,

Financial strategy

we take immediate action.

Pursuing high quality,● Reduce interest-bearing debt through stable profits

we put steady eﬀort into innovation.

88

Busi ness s tra te gy
Constant reviewing of our business portfolio

Crushed Stone and Material Recycling
Business (Jobu Co., Ltd.)

Steel Business

Key Business

Retain and hold our position in the leading group forlight bar production and sales volumes in the Kanto region

Maintain its position as the top crushed stone
manufacturer in Saitama prefecture

Shift to high-strength and/or large-diameter deformed
bars and threaded deformed bars

Expand market share by securing new mining sites

Per-segment net sales and income

Per-business(Millions of yen)

Crushed Stone andMaterial Recycling
Business

FY2015
results

FY2016
projected

FY2017
projected

FY2018projected

Net sales

2,010

2,100

2,200

89

100

150

Segment income

Key Businesssales ratio

Reduce specific power consumption

Improve productivity by reviewing our product portfolio
Per-segment net sales and income(Millions of yen)

SteelBusiness

FY2015
results

FY2016
projected

FY2017
projected

FY2018projected

2,200

Net sales

19,853

17,20020,00020,000150

Segment income

1,942

1,600

1,800

1,800

Agribusiness
Grow as a fertilizer manufacturer that specializes in seed and hay
Fertilizer Business
Key Business

Expand granular organic fertilizer
production and sales

Make production more efficient throughSeed Business
Rise-to-the-Challenge Business

Develop our own products and increase
domestic and overseas sales

Per-segment net sales and income

Hay BusinessProfitable Business

Perform integrated managementwith Johnson Asahi Pty. Ltd.

integrated management of 3 plants

99(Millions of yen)

Agribusiness

FY2015
results

FY2016
projected

FY2017
projected

FY2018projected

Net sales

13,821

13,50013,70014,600

737

900

900

1,100

Segment income* Projected ﬁgures for FY2016 onwards include Asahi Industries Australia proﬁts.

Management fundamentals enhancement strategy
Saitama OfficeEnvironmental Safety Management Dept

1. Transition to a company with an audit and supervisory committee

Finance & Accounting Dept

2. Abolish the business division system and set up supervisory divisions for
production and sales

Administration
and Planning
Division

General Affairs & Human Resources Dept
Cor porate Planning Dept

→ More efficient production through the integrated management of 3 fertilizer plants,
Synergistic effects by integrating all the sales divisions

International Dept
R&D Dept
Seed Dept

3. Enhance human resources management→ Introduction of a new human resources system and an executive officer system

4. Transfer the majority of management work to Asahi Business Support Co., Ltd.
→ Enabling of Administration and Planning Division to specialize in planning and policy development

Sales Dept 2
Sales Dept 3

Business Planning Dept

Special Sales Dept
Kanto Plant

Production
Planning
Group

Asahi Business Support Co., Ltd.
[Target business]

Sales Dept 1

Sales
Planning
Group

Agribusiness
Division

Chiba Plant
Kansai Plant

・Business operations support for steel, agriculture, etc.

Sales Dept

Sales
Planning
Group・Administrative operations support
Steel
Division

Purchase Dept

Saitama
Plant

Quality Assurance Dept

Business Planning DeptF i n anci als t r ategy
Rebuild our financial footing by
reducing interest-bearing debt
through stable profits(Millions of yen)Management Indices

FY2015 results

FY2016 projected

FY2017 projected

FY2018 projected

Net Sales

36,34833,00036,00037,000Operating income

1,915

1,500

1,900

2,100

Ordinary income

1,931

1,500

1,900

2,100

Ordinary income rate (%)

5.3

4.5

5.3

5.7

ROE (%)

36.4

16.8

18.1

17.2

Net interest-bearing debt*

7,300

8,200

8,700

8,000

* Net interest-bearing debt = Interest-bearing debt - cash and equivalents
10

10Financial Results for FY2015
Consolidated results(Millions of yen)

FY2014
Net Sales

Performance Summary

FY201535,49436,348Operating income

409

1,915

Ordinary income

348

1,931

Net income

549

2,503

Total assets

27,93825,828

Net assets

6,028

7,716

Ordinary income rate (%)

1.0

5.3

ROE (%)

9.8

36.4

11,000

7,300

0

40

Net interest-bearing debt *1
Dividend (yen)Due to the recovery in results from the Steel Business, profits significantly up on last year
Note regarding the assumption of going concern removed

Sale of owned securities and adjustment (-527 million yen) of corporate tax, etc. due tochanges in company partitioning in the accounting standards for tax effect accounting
Accumulated loss cleared

Major decrease in interest-bearing debt
Dividends restored for the first time in 3 fiscal years*1: Net interest-bearing debt = Interest-bearing debt - cash and equivalents

Performance by Segment

Segment
incomeNet sales■ Steel Business・Lower prices for steel scrap (the main raw material) led to increased metal spread*2 and a

SteelBusinesssignificant rise in profits

・ Lower profits due to a fall in sales of in-house products for ready-mixed concrete■ Agribusiness・ Despite increased net sales generated by higher sales volumes in the fertilizer business,increases in raw material costs led to a fall in profits

・ Johnson Asahi Pty. Ltd. (Hay Business) set a new all-time record for profits■ Environmental Solutions Business*3

・Revenues and expenditure remain more or less on par with the previous year

20,00018,000

11

11

1,800

13,018 13,821

12,000

1,200
800

8,000
4,000
0

*3: All of our issued shares in EAC Corporation were fully transferred in May 2016

19,860 19,853

Crushed Stone
and Material
Recycling Business
2,000

2014

2015

2014

2015

1,938

2,010

2014

2015

400
0
FY

Segment income <millions of yen>

Net sales <millions of yen>

*2: Difference between the steel scrap costs and product sales prices■ Crushed Stone and Material Recycling Business

AgribusinessFinancial Highlights ( Consolidated )Ratio of shareholders’equity to total assets (%)

Net sales

Millions of yen

50,000To t a l a s s e t sMillions of yen

50,00043,37540,00040,17543,59135,49436,348

Net assets
20,00042,67640,00041,34816,00030,00030,00020,00020,0008,000

10,00010,000

4,000

0

2011

2012

2013

Operating income

2014

Millions of yen

1,915

2,000
1,000
0

0

2011

2012

2013

Ordinary income

27,9382014

25,8282015 Year
end

Millions of yen

1,931

2,000

0

2012

2013

2014

2015 FY△2,00012,000

△641

5,160

0

2011

2012

12

2013

12

2014

2012

2013

Net income

2015 FY△12,000

21.6％
6,028

2014

7,716

2015 Year
end

Millions of yen

2,503

2,000

549
△18

△1,000△1,235

2011

29.9％

39.9％
18.9％

0

△1,000△1,17642.8％

16,482

1,000

348

216

△562

2011

27,292

1,000

409

194

△1,000△2,0002015 FY

18,268Millions of yen△1,4802011

2012△11,093201320142015 FYOUR
BUSINESSBusiness Summary

13

Saitama Office(Steel, Fertilizer)
and Research Station(Seed, Fertilizer)

Laiyang Longda Asahi Agricultural
Technology Co., Ltd.

Jobu Co., Ltd. (Crushed stone
and material recycling)
Chiba Plant(Fertilizer)

Saitama Office

Head OfficeKansai Plant(Fertilizer)
Osaka Office

Jobu Co., Ltd.

Chiba Plant
Johnson Asahi Pty.Ltd.

Kansai Plant (Shiga prefecture)

14

14

15

15

Working towards a sustainable society with a prosperous future that is
supported by “steel”

Steel BusinessAsahi Industries recycles steel scrap into steel products such as reinforcing bars.The high-quality steel products madein our plants are being used more and more in the large-scale infrastructure projects that underpin our everyday lives.

One of the few

Threaded deformed

manufacturers using

Micro-level quality

bars using mechanicalan electric arc

control technology

couplers and fasteners

furnace in an integrated

guaranteeingthat allow for more

in-house process toflawless quality anddiverse construction

manufacture high-rapid user feedback

methods

strength rebar

Results and Projections

Net sales

Segment
income2,500

16,0002,000

12,000

1,500

8,000

1,000

4,000

500

0

2014

2015
results

16

16

2016

2017
projected

2018

0

FY

Segment income <millions of yen>

Net sales <millions of yen>

20,000Manufacturing Process

Continuous casting facility (CC)

Ladle furnace (LF)

Electric-arc furnace (EAF)

Melted steel following the LF process
poured into molds to manufacturebillets -- an intermediate product

Impurities in the melted steel
removed and the composition
adjusted to suit the productSteel scrap melted in the arc
furnace

Scrapyard

Steel scrap sorted and matched tothe products being manufactured

Steel scrap Collection

Dismantling

Heating furnace

Billets heated to the righttemperature for rolling

Deformed bars (rebar)

Threaded deformed bars

Rolling

Heated billets formed into products
using No.0 to No.18 stands

Cooling bed

To machining plants

Rolled products graduallycooledStructural steels

Quality Control
Highly accurate electron microscopes are used in extremely precise quality

control processes to ensure t h a t our product assurance system is flawless. We
also provide rapid responses to users and implement information feedback toearn their trust.

17

17

To construction andengineering industries

Products“Neji-A-Con” threaded deformed bars
Threaded deformed bars are rebars formed with a screw threadso that they can be joined together using mechanical couplers. The
benefits of using these bars include shorter working times and thefact that they can be assembled in any sort of weather. With a few
simple instructions, they can be assembled by anyone, and demand
for this product is growing.
The USD590A, USD590B, USD685A, USD685B and USD980 NejiA-Con products have been granted Ministry certification.
The screw plate method is a mechanicalfastening method that has been certified
by the Building Center of Japan (BCJ).
It is a method for fastening rebar
in place that offers an alternative tofastening rebar by bending theends over.

The Asahi Industries mechanicalcoupling method is a process thatuses steel couplers to join threaded
deformed bars together. We provide
6 different coupler types to suit awide range of applications.

Deformed bars (rebar)

Structural steels

Deformed bars are very widely used in construction projects
such as apartment blocks and office buildings, as well as
expressways and Shinkansen bridge piers. Asahi Industries
is one of the few manufacturers who produce and selldeformed bars in a wide range of diameters. Our products
have been used in projects such as Tokyo Station and Tokyo
metropolitan expressways.

Structural steel is processed into a variety of secondary products ranging from mechanical components
through to materials for construction and engineering. Its applications underpin our everyday lives,
ranging from reinforcing material for the runways at Haneda airport to the foundations for major shopping
centers.

18

18

Crushed Stone andMaterial Recycling Business(Jobu Co., Ltd.)

Helping provide infrastructure
and recycling waste materials
for a sustainable society

19Crushed Stone Business
Jobu Co., Ltd. owns a mining claim of 950,000m 2 in Minano-machi in Saitama prefecture, andMain products

the crushed stone and sand from the mine is used as a raw material for buildings, bridges,
roads and other construction projects. With the future in mind, the company is looking tosecure new mining claims.

■ Crushed stone for concrete

No.1 sharein Saitama
prefecture

・ Material for ready-mixed concrete

Stable supply
of a wide
range ofproducts

・ Material for secondary concrete products■ Crushed sand・ Material for ready-mixed concrete・ Material for secondary concrete products・ Material for asphalt mixture■ Crushed stone for roads

・ Material for asphalt mixture
・ Gardening material

Material Recycling BusinessResults and Projections

By recycling the concrete debris from building demolitions into roadbed material and turning
waste timber from house demolitions and logging into wood chips, we are helping to build a■ Wood chips

・ Civil engineering・ Material for fuel■ roadbed material・ and construction

・ Material for pulp

・ material

2,500

200

2,000

160

1,500

120

1,000

80

500

40

0

2014

2015
results

20

Segment
income2016

2017
projected

02018 FY

Segment income <millions of yen>

■ Recycled

Net sales <millions of yen>sustainable society.

Net sales2121

A fertilizer manufacturer that specializes in seed and hay

AgribusinessAsahi Industries is Japan’s only company operating a seed business and a hay business inaddition to manufacturing and selling fertilizer, focusing particularly on granular organicf e r t i l i z e r . W e w i l l c l e a r l y d e f i n e t h e p o s i t i o n e a c h o f o u r businesses and grow as a fertilizer
manufacturer that specializes in seed and hay.

Fertilizer Business

Seed Business

Hay BusinessResults and Projections

Net sales

Segment
income2,000

16,0001,600

12,000

1,200

8,000

800

4,000

400

0

2014

2015
results

2016

2017
projected* Projected figures for FY2016 onwards include Asahi Industries Australia profits.

38
22

2018

0

年度

Segment income <millions of yen>

Net sales <millions of yen>

20,000Fertilizer Business
Amid growing safety awareness of food and a need for differentiation in agricultural products, demand for organic

Environmentally Friendly Manufacturing

Its skills in developing organic raw materials and its advanced granulation techniques enable Asahi Industries to

Asahi Industries manufactures high-quality granular organic fertilizers while

fertilizers is strong.

efficiently manufacture high-quality, easy-to-use granular organic fertilizers. Its skills and experience as aalso caring for the environment.

manufacturer of granular organic fertilizers are also being used in its joint venture company in China.

Experience indeveloping raw
materials for organic
fertilizers
Granulation
techniques

An extensive rangeof products cateringto the needs of both
farmers andgardeners

Approach tosustainableagriculture through theutilization of unused
resources suchas livestock
manureOdors・Electrostatic precipitators, exhaust gas scrubbers, soil deodorizing equipment, regenerative thermal deodorizers
・ Sealed plant buildings

Waste-water・Factory wastewater recycled inside the plant using closed systems(Chiba and Kansai plants)

Exhaustgases

・ Exhaust gas scrubbers, electrostatic precipitators

Laiyang Longda Asahi Agricultural Technology Co., Ltd.
Soil deodorizers

・ Established in 2011 as a joint venture with
Toyota Tsusho Corporation and Longda
Foodstuffs Group Co., Ltd.
・ Located in Shandong Province, China’ slargest agricultural production region, thecompany uses environmentally friendly
facilities such as exhaust gas scrubbing andindustrial wastewater recycling equipment
to manufacture high-quality granular organic
fertilizers with technical guidance from Asahi
Industrie・ Its sales network extends into regions beyond
Shandong Province

Fertilizer for farmers

23

23

Regenerative thermal deodorizers

Materials Development and Manufacturing Techniques for Organic Fertilizers
Asahi Industries fertilizers are made using our own specially developed organic materials as well as regular organic materials, and are formed into superbly round, firm granules suited tomechanical application.

・ The primary organic materials developed by Asahi Industries include powdered bone made from the pork bones used by major ramen noodle chains to make their soup stock, compost made using
bacteria from the wastewater produced by foodstuff companies, and livestock manure.

・ By increasing the ratio of our own materials used in our fertilizers, we are making even more superior products (fertilizers) in terms of both quality and cost.

Bones used for ramen stock

Pig manure

Poultry feathers

Manufacturing process for granular organic fertilizer
Plant-basedorganic fertilizer
Animal-basedorganic fertilizer

Raw materials

Exhaust gas scrubber

Product shipment

Granulation fluid

Inorganic fertilizer

Mixer

Soil deodorizer

Dryer

ReturnGranulator

Bunker scale

Regenerative thermal
deodorizers

Product hoppers

All Organic 666

Scale

CrusherVibrating screens
CoolerHeat sealing

Weighing/
packaging unit

Loading robot

Fertilizer for home gardens

Also available from our Vege Garden website

24

24

Seed Business
We use our own in-house developments coupled with techniques developed jointly with a leading Dutch seed

company to produce deliciously flavorsome, high-yielding vegetable varieties that are disease resistant. And by
introducing unique vegetable strains from all over Japan and around the world, we can offer a wide selection ofseed varieties.

Comprehensive

cultivation guidance

Joint development

including application

with a Dutch seed company

diagnosis offered in

Joint marketing with

instructions and disease
cooperation with fertilizer

Kamikawa Research Stationa Chinese seed company

sales teams

Climbing cultivationof pumpkins

Products
Asahi pumpkin

A fluffy, sweet, andhigh-yielding variety(First released in 2015)

Asahi tomato

A well-balanced flavor
variety that is highly
resistant to 8 majordiseases, including
yellow leaf curl virus(First released in 2016)

Asahi cucumber

An easy-to-grow, highyielding variety that is
highly resistant toCorynespora leaf spot
(First released in 2015)

Asahi rootstock

Tomato and melon rootstock that is resistant tosoil diseases (Launchedjoint marketing with aChinese seed company
in 2016)

25

25

Tomato cultivation■ Field Day
The Kamikawa Research
Station holds Field Days twicea year in Spring and Fall. The
Field Days offer an opportunity
to show our varieties to growers,
the JA Group (Japan Agricultural
Cooperatives), vegetable distributors and others. The Field
Days were attended by 1,600
people in FY2015.

Hay BusinessAsahi Industries’ Australian affiliate produces hay under strict quality controls, providing a stablesupply of hay to dairy and cattle farmers in Japan. As of last year, we started marketing TMF (Total
Mixed Fermented) hay as a strategic product to cultivate new markets.

Growing demandfor hay in China
and other Asian
countries

Joint venture
partner J.T.
Johnson & Sons
Pty. Ltd., a leading
Australian
hay producer

Hay
Products
Oaten hay

TMF (Total Mixed Fermented) hay

Our main product and a highly palatable

A fermented cattle feed made from a mixture

variety due to its high sugar content

Johnson Asahi Pty. Ltd.

of hay and squeezed fruit pulp from juicing,
TMF is a low-cost product with excellent

・ Established in 1995 as a joint venture with J.T.

palatability

Johnson & Sons Pty. Ltd. (Australian hay company)

・ Owns a plant in Victoria for the production andsale of hay to Japan, China, Korea and Taiwan

・ With the increased consumption of dairy and beef

products in Asia, we are planning for future businessexpansion

26

26

ENVIRONMENTSOCIAL
GOVERNANCE
The Environment,
Governance & Social Responsibility

27

27

Environmental Management

Fourth Medium-term
Environmental Action Plan

The Asahi Industries Group endeavors above all to “contribute to the global environment and

The Asahi Industries Group has formulated the “Fourth Medium-term Environmental Action

communities around the world”, honoring its commitment to being “a company that is respected

Plan” and has been undertaking activities based on that plan as of FY2015.

by everyone”.

Asahi Industries Group Environmental Guidelines
Contributing to the environment by decreasing environmental impacts, preventing global

Countermeasures
for global warming

warming and achieving zero emissions.

Environmental Management System

Promotion ofenergy savings

Working to build an environmental management system that encompasses the entire Asahi

Promotion of environmental
impact reductions, etc.

Industries Group and forcefully promoting ongoing environmental activities.

Environmental impact
reduction

Environmental Management System Framework
Biodiversity conservation
President

Management meetings
Executive Office(Environmental Safety
Management Dept)

Environment, Safety &Health Committee

Communication enhancement
Development ofenvironmental management

Environmental Project Leaders
Assistant Environmental Project Leaders

Environmental education

Energy Savings
Promotion Committee
Helping to build
sustainable communities
Affiliated Companies

Steel Division

Administration and
Planning Division

Agribusiness Division

28

28

Integrating the environment
into our businessFourth Medium-term Environmental Action Plan ―Results for FY2015
Promotion of environmental impact reductions, etc.

Countermeasures against global warming

Promotion of energy savings

・ Effectively reduced CO 2 emissions by switching to natural gas as the fuel for our main facilities

・ Continued energy-saving measures in the Steel and Fertilizer divisions

・ Failed to meet the target of a 1% reduction in specific energy consumption on a 5-year averageas of FY2009

・ Reduced fuel consumption in the Steel Division by implementing continuous production that

due to the impact of small-lot production in the Fertilizer Division

・ Examined the merits of introduction of renewable and new power companies (PPS), and intro-

keeps billets at high temperatures between the steelmaking and rolling processes

・ Reduced power consumption by optimizing management of the electric-arc furnace

duced a PPS in some welfare facilities where the use of new power companies yielded benefits・ Achieved our CO 2 emissions reduction targets through energy-saving measures in offices andby switching to hybrid vehicles in the Sales Dept

・ Sold CO 2 emission reductions (emission offsets) under the Saitama Prefecture’ s emissions
trading scheme for the first time (Saitama Office)Targets

5% reduction on FY2005 levels

Results

・ 1% reduction in specific energy consumption on

・ 0.5% increase in yearly average froma 5-year average

Results

・ CO2 emissions 25% reduction on FY1990 levels

Targets

・ Investigation into renewable energy andAssessment

・ 45% reduction on FY1990 levels

available energy◎

・ 19% reduction on FY2005 levels

FY2011 to FY2015

・ Investigation conducted by committee, PPS introduced

Assessment△◎

Assessment ◎: 100％ achieved ○: 70％ achieved △: Less than 70％ achieved, improvement required■ Changes in energy consumption■ Changes in CO 2 emissions● On FY1990 levels● On FY2005 levels(kt-CO 2)

300

250

125

140
CO 2 emissions

CO 2 emissions

150

200

153

100
50
0

2013
1990
Benchmark year

2014

2015 FY* Results for each year calculated using the energy coefficient for FY1990

206

191

150

150

168

100
50
0

（%）

2005
2013
Benchmark year

2014

2015 FY* Results calculated using the energy coefficient for each year
29

105

98.3

19% reduction

Energy consumption

200

Year-on-year change in specificenergy consumption

6000

300

45% reduction

252

（TJ）

29

4000

3,684

98.6
2,983

100.4
3,346

100
95
90

2000

85
0

2013

2014

2015 FY

Specific energy consumption

250(kt-CO 2)80

Saitama Office “green curtain”

Environmental impact reduction

Biodiversity conservation

In terms of environmental and biodiversity conservation, we are setting and administering our own

Each of the Asahi Industries Group plants is set in a location with abundant natural beauty. With

voluntary management targets for exhaust gas and wastewater emissions from plants that are

biodiversity in mind, we formulated the Green Space Management Guidelines under which we maintainstricter than those required by legislation.

and manage green spaces in our facilities.

・Participated actively in regional cleaning volunteer programs aimed at preserving water sources<Prevention of Air Pollution>
・ Met targets for FY2015 continuously through equipment maintenance and testing and optimized
operation management
・ Strengthened measures to prevent environmental accidents by conducting monitoring of odors
and dust and smoke in addition to exhaust gas measurement< P r e ve n t io n o f Wa t e r Pollution >・ Failed to meet targets in FY2014 as quantities of suspended solids temporarily increased
due to the restart of the steel plant
・ Achieved targets in FY2015 owing to optimized management
Targets

Results(lakes, marshes, rivers and streams) as well as long-term in-house 5S workplace programs andclean-up activities around our plants

・ Maintained the Asahi Flower Garden at the Saitama Office to provide a place where local people
can enjoy the flowering plants of each season

・ Engaged in development of disease resistant vegetable cultivars that allow low-chemical cultivation
Targets

・ Conservation activities at offices
and plants

Assessment

・ Exhaust gases One half or less of legal environmental standard

・Fully achieved◎

・ Wastewater One tenth or less of legal environmental standard

・Fully achieved◎・ Participation in programs aimed at

Results

・ Carried out workplace 5S programs andregular patrols of the surroundings

・ Drafted the Green Space Guidelines and mana・ Continued to undertake volunteer activities

・ Promotion of the development and adoption ・ Developed disease resistant tomato
and cucumber varieties<Zero Waste Product Emissions>■ Changes in total waste products emitted

・ Reduced waste product emissions significantly from FY2014 levels

Total emissions

・ Recycled all soot and smoke emissions

Recycling and effective use ratefrom steelmaking processes within Asahi（t）

Industries

2500

・ Failed to meet our target as recycling and・ Due to regular maintenance of our environmental facilities, there was a buildup

in replacement of consumables that are

difficult to recycle, so the amount for final

disposal increased* Recycling and effective use rate: Calculated from ratioof final disposal relative to standard emissions(7,223 tons in FY2003)

2000

Total waste products emitted

emissions were reduced in FY2015

Targets

・ Zero waste product emissions

Recycling and effective use rate of 99.5% or better

99.6

100

99.1

1,775

99
98

1500

812

1000

683

97
96

500
0

Target 99.5%

2013

2014

Results

・Recycling and effective use
rate: 99.1%

2015 FY

95

Recycling and effective use rate

effective use rates were at 99.1% while

（％）

99.6

Volunteer activity

TopicsSaitama Prefecture Highway Care Awards
Recipient of the “Saitama Prefecture Roads Association
Chairman’s Award”
The Saitama Office is located next to a prefectural highway. Having
registered in the Saitama prefectural road support system, we havebeen conducting a road cleaning and beautification program since
FY2005. We received the Saitama Prefecture Roads Association
Chairman’s Award in recognition for our continued contributions overmany years. And we will continue to ensure that this 700-meter stretchof road remains beautiful into the future.

Assessment○

30

Biodiversity conservation green space30◎

ged green spaces so as to conserve biodiversity

preserving water sources and planting trees ・ Maintained the Asahi Flower Gardenof disease resistant seed

Assessment◎◎

D e v e l o p me n t o f Env i r onm e nt a l M a n a ge me nt

Environmental communication enhancement andenvironmental education

Topics・ “Environmental Communication” seminars held for regional residents

These seminars provide an opportunity both to disseminate environmental information and to foster

Ministry of the Environment
Recipient of the “Incentive Award” main prize for building environmental
leadership

understanding of Asahi Industries’ business operations through open discussions and factory tours

・ Active environmental education programs for employees
Targets

Results

・ Dissemination of environmental information ・ Held regional communication seminars

・ Expanded the Asahi Kamikawa Gallery

and participation in regional discourse

・Held environmental seminars tailored towork content (environmentally friendly
・ Hosting of in-house environmental seminars
driving, the Saitama prefecture environment, etc.)
・Attained total of 54 certifications,
including Eco certification and internal
ecological certification

・ Encouraging the acquisition ofcertifications

Asahi Industries was nominated for the main prize for building
environmental leadership* awarded by the Ministry of theEnvironment and received the Incentive Award.
The award was given in recognition of our contribution to thedevelopment of environmental leaders through our educational
programs and our efforts for the environment.

Assessment◎◎* A commendation awarded to enterprises that promote the development ofenvironmental leaders who will drive environmental conservation and thegreening of society and the economy.

◎

Material Balance
INPUT

Steel productionRawmaterials

Fertilizers
Crushed stone
Material recycling

EnergyOUTPUT387 kt153 ktProcurement

1,140 kt

Electricity

227 MkWhNatural gas

18 Mm N

Heavy oil

3,000 kl

Other fuels

4,000 kl

Water

CO 2

168 kt

NO X

48 t

SO X

10 t

Total amount generated

55 kt

Amount recycled

54 kt

38 kt

Production

3

Production
volumes

Water

Atmosphericexhaust1,819,000 m 3

Steel production

342 ktFertilizers

135 ktCrushed stone

1,160 kt

Material recycling

65 kt* Raw materials for crushed stone production consist of the raw stone used. Raw materials for material recycling consist of the industrial waste received

31

Waste and byproducts

31

WastewaterWithin the Group

8 kt

On consignment

46 kt

Amount treated on consignment

0.7 ktAmount for final disposal

0.07 kt

Water

1,670,000 m 3

Environmental Accounting
Environmental conservation costs
Group total

Cumulative
total

FY2013

FY2014FY2015(FY2005-2015)

1. Pollution
prevention costs

729

530

560

6,140

50.4

2. Global environmental
conservation costs

198

84

87

959

3. Recycling costs

361

330

318

4. Management costs

49

38

5. R&D costs

52

6. Social activity costs

21

Category

7. Environmental
damage remediation
costs, etc.

Economic Benefits(Millions of yen)

(Millions of yen)Group total

Cumulative
total

FY2013

FY2014FY2015(FY2005-2015)

1. In-house recycling
benefit*

403

381

540

3,785

53.7

7.9

2. Waste disposal
benefit

76

57

63

1,245

17.7

3,892

31.9

3. Product cost
reduction benefit

59

51

51

690

9.8

30

430

3.5

4. Received industrial
waste treatment
benefit

117

102

96

1,324

18.8

50

50

427

3.5

Economic benefit(total)

655

591

750

25

24

190

1.6

Economic benefit(cumulative total)

5,703

6,294

7,044

7,044

100.0

5

5

5

Environmental
conservation costs(total)

1,415

1,062

1,074

Environmental
conservation costs(cumulative total)

10,051

11,113

12,187

149

Ratio

Category

(%)

Ratio
(%)

* The increase in in-house recycling benefit was primarily due to the effects of unit prices for outside sales and increased recycling volumes resulting
from increased steel production.

1.2● Reporting of environmental activities
12,187

Our environmental activities are also described on the “Environmental Activities” page on the Asahi

100.0

Industries website.

https://www.asahi-kg.co.jp/en/csr/environment.html

3232

Corporate Governance
Based on our management principle of “Being at all times honest, fair and trusted by everyone”, we will strive to maintain high ethical standards,
improve transparency and accountability, and conduct efficient management that reflects rational decision-making processes.
Corporate Governance Framework

Basic Principles

General Meeting of Shareholders

・Establish a flexible corporate structure capable of responding quickly
to changes in the business environment

Appointment/

Appointment/

・ Ensure management transparency through fair, timely and appropriate
information dissemination to shareholders and the public at large

Appointment/

dismissal

dismissal

・ Pursue efficient management based on rational decisions

dismissal

Auditing, etc./reports

・ Discharge our management duties fairly and soundly in full compliance

Board ofwith applicable laws and corporate ethics

Directors

Audit and Supervisory Committee

Cooperation

Accounts

Asahi Industries complies with the basic principles of the code of corporate

Auditorgovernance.

Selection/(https://www.asahi-kg.co.jp/en/corporate/company/governance.html)

supervision

To decide on importantbusiness conduct

Reports

Directions(auditing

Auditing
Accounts
auditing

Establishment of an Audit and Supervisory
Committee

Management
meetings

Discussions

As of 23 June 2016, Asahi Industries has transitioned from a company with aInquiries

board of corporate auditors to one with an audit and supervisory committee.
・Stronger and more far-reaching supervisory functions

・Faster decision-making by entrusting decisions on business conduct fromthe board of directors broadly to directors

・Configuration with five directors, including three independent directors
・Audit and supervisory committee to meet monthly and as required

President

Directions
Reports

Internal Control
Dept

Responses● Compliance Committee● Risk Management Committee● Human Resources & Planning

Commands/
instructions

Committee● Environment, Safety & HealthCommittee

Divisions/Departments & Affiliates

33

Internal auditing

Cooperationcompany)Compliance

Compliance Framework

The Compliance committee discusses issues

Board of Directors

related to compliance promotion and instructional
activities, internal whistleblowing and complianceviolations, and formulates proposals to be presented

President

The Asahi Industries Group promotes employees' understanding
and awareness understanding and awareness of compliancethrough day-to-day activities.

Management meetings■ Workplace Compliance Promotion Activities

Compliance Committee

to the management meetings. It also reports to the(Chief compliance officer)

board of directors on any important matters such ascompliance violations and internal whistleblowing.

Improvements/instructions

・ Activities to further improve understanding and awareness of compliance・ Planning and implementation of annual compliance activities

・ Internal compliance training based on an annual theme (e.g. Workplaceenvironment improvement in FY2015)■ Compliance Checking
・ Compliance checks for all employees

Executive Office(General Affairs &Human Resources Dept)

Cooperation■ Awareness Raising & Instructional Activities
・ Issuing of Compliance News monthly (with mini-tests on compliance)

Reports

Auditing

Internal Audit
Section,Compliance Managers(Division/dept heads, office managers,
plant managers & affiliate dept heads)

Reports

Internal Control

Communication
Reports

Guidance

Consultation/inquiries

Compliance Supervisors

Dept

Auditing(Section heads)

Consultation■ Internal Whistleblower System

Education

Employees

・ Establishment of whistleblower hotlines in the compliance section, in

collaboration with labor unions, and in consultation with a retained law firm

Risk Management
Each year, the Asahi Industries Group identifies and assesses potential risks and formulates
appropriate countermeasures to improve its preparedness.
In 2015, the Group mainly reviewed complaints handling and risks relating to chemical pollution
occurring during large-scale disasters and accidents and adopted new countermeasures.

Risk Management Committee Framework

President

The risk management committee discusses topics
such as important guidelines for risk management
items, promotional plans and other importantmatters, and formulates proposals to be presented
to the management committees. It also reports to■ Business Continuity Plan (BCP)

Management meetings

・ Formulation of a business continuity plan to prepare for large-scale earthquakes

the management committees on the progress ofpromotional plans.

・ Introduction of a safety confirmation and damage verification system
・ Ongoing renewal of our business continuity plan through training

Risk Management
committee

34

Executive Office(General Affairs &Human Resources Dept)Human Resources Management
The environment in which businesses operate is changing significantly as globalization leads togreater competition and the population and labor force shrink, and this demands constant innovation.
In this sort of environment, developing and retaining human resources has emerged as a key issue.

Introduction of an Executive Officer System (23 June 2016)

Self Study

Asahi Industries has put in place an executive officer system. By appointing staff who are highly

We also support employees who study of their own volition to improve themselves andskilled in conducting business to executive officer positions, we can run more sophisticated businessprogress their knowledge and skills.

operations and at the same time boost motivation among employees by setting more ambitious● Correspondence courses

future targets.

We offer an extensive selection of correspondence courses tailored to a wide range of employees

And delegating the authority to conduct business to executive officers clarifies the areas of res-from new recruits through to managers. Courses cover areas such as sales, technology, finance,

ponsibility and gives directors stronger supervisory powers.

accounting, computing, stress management, health management and gaining qualifications.

● Leaning languages

Human Resources System Reform (scheduled for October 2016)

Language classes in English and Chinese are provided with the aim of improving the level ofcommunication with our affiliates and other overseas companies.

We will reform our human resources system with the focus on human resource development andthe diversification of work patterns so that we can fully appreciate staff who work hard to

Employee Careachieve results and promote greater diversity in our work force.

We will introduce a Stress Check system that is designed to identify employee stress levels andEnhanced Training System

help employees be aware of their own stress levels, as well as promoting the creation of workplaces
that are easier to work in and leading to improvements in workplace environments.

At present, the training conducted by Asahi Industries consists of standard employee training
and specialist skills training.

● Standard employee training

Inductee training, 5-year training, management candidate training, executive training

Topics● Specialist skills training

Participation in training conducted by research facilities, such as instruction in DNA markers andCertification as a Company Providing Diverse
Work Patterns

blight certification

New programs, such as production “maester” training, are also planned

By offering diverse work options, such as shortened work hours and flextime, Asahi Industries has been certified by Saitama Prefecture as a“Company that facilitates working while raising children”.

3535CSR Activities
The Asahi Industries Group undertakes a range of activities aimed at supporting children and regional communities.

The Group’s contributions to regional communities include regularly volunteering to help clean up river banks, parks and roads, maintaining parks and holding festivals on summer evenings. Throughthese activities, we are involved in actively beautifying the natural environment and improving our local neighborhood surroundings.

The Group also runs a range of educational programs in the hope of enriching the lives of children by supporting their education. These programs include classes in growing vegetables, factory and farmtours and art classes (Asahi Kamikawa Gallery).

Contributing to local communities

Asahi Flower Garden

Supporting education

Clean-up volunteers

Factory tour

Supporting a primaryschool judo tournament

Seed sowing classat a local kindergarten

Asahi Kamikawa Gallery
Every year since March 2008, the walls surrounding the Saitama Office have been used to exhibit

artworks by children from local elementary and junior-high schools. In March 2016, 48 new artworks

Summer river festival
for local residents

were added, bringing the total number exhibited so far to around 350. This display of youthful energy

Clean-up volunteers

puts a smile on everyone’s face.

36

36

COMPANYINFORMATION
Financial Data,
Corporate Information,
Investors Information

37

37

Consolidated Balance Sheets(Millions of yen)

End FY2011

End FY2012

End FY2013(Millions of yen)

End FY2014 End FY2015

AssetsEnd FY2011

End FY2012

End FY2013

End FY2014 End FY2015

Liabilities

Current assets

19,52918,14014,162

14,84913,845Current liabilities

19,423

20,27916,848

16,63813,348Cash and deposits

2,327

2,561

2,640

1,501

2,640

Trade notes and accounts
payable

8,405

7,714

5,947

5,626

3,831

Trade notes andaccounts receivable

7,869

7,792

5,952

5,671

4,727

Short-term loans payable

5,115

5,915

5,915

7,245

4,950

Merchandise inventory andfinished goods

6,999

5,477

3,221

5,830

4,754

Current portion of bonds

60

120

120

120

60

Raw materials and supplies

1,766

1,908

2,060

1,527

1,397

Current portion of long-termloans payable

1,330

1,690

1,790

1,434

1,649

Other

573

410

293

321

328

Income taxes payable

55

84

62

77

231

Allowance for doubtful accounts

△7

△10

△5

△3

△1

Allowance for bonuses

337

261

146

135

271

Other

4,120

4,493

2,866

2,000

2,354

Noncurrent assets

23,147

23,20813,12913,088

11,982

Noncurrent liabilities

4,984

4,586

5,284

5,271

4,762

Property, plant and equipment

20,253

20,112

10,652

10,620

10,116Long-term loans payable

2,455

2,395

3,105

3,623

3,234

Buildings and structures, net

3,958

3,785

3,139

3,344

3,134

Net defined benefit liability*

1,052

1,083

1,050

722

1,097

Machinery, equipment andvehicles, net

12,57912,540

4,053

3,817

3,509

Other

1,476

1,107

1,128

925

430

Land

2,625

2,665

2,678

2,678

2,678

Total liabilities

24,40824,865

22,132

21,90918,111

Other

1,090

1,120

780

779

792

Net assets

771

659

196

193

182

Shareholders’ equity

18,073

16,102

4,729

5,361

7,864

2,122

2,436

2,280

2,274

1,683

Other comprehensive
income, accumulated

195

379

430

667

△ 148

Total net assets

18,26816,482

5,160

6,028

7,716

Total liabilities and net assets

42,676

41,34827,292

27,93825,828Intangible assets

Investments and other assets

Total assets

42,676

41,34827,292

27,93825,828*Figures for end FY2011 and end FY2012 show the provision for retirement benefits3838Consolidated Statements ofComprehensive Income

Consolidated Statements of Income(Millions of yen)

FY2011FY2012FY2013

FY2014

Sales

43,37540,17543,59135,49436,348

Cost of sales

36,14534,34037,317

29,17428,064Gross profit

7,230

5,835

6,274

6,320

8,284

(Millions of yen)

FY2015FY2011FY2012FY2013

FY2014FY2015△18△1,480△11,093

549

2,503

Net unrealized gains onavailable-for-sale securities

9

133

56

3

△327

Foreign currency translation
adjustments

△13

50

18

28

△67

204

△420

Net income (loss)
Other comprehensive income

Selling, general andadministrative expenses

7,035

7,011

6,836

5,911

6,369

Operating income (loss)

194△1,176

△562

409

1,915

Non-operating income

258

178

174

197

280

Non-operating expenses

235

238

253

258

264

Ordinary income (loss)

216△1,235

△641

348

1,931

Extraordinary gains

-

-

3

545

410

Extraordinary losses

145

233

9,337

263

118

71

△1,468△9,975

630

2,223

60

75

104

114

246

Income (loss) before
income taxes

Income taxes - current

Remeasurements of defined
benefit plans
Total other comprehensive
income

△3

184

74

236

△815

Comprehensive income△21△1,295△11,018

785

1,688

△21

△1,295△11,018

785

1,688

-

-

-

-

-

Comprehensive income
attributed to parent company
shareholders
Comprehensive income
attributes to minority
shareholders

Consolidated Statements ofCash Flow(Millions of yen)

FY2011FY2012FY2013

FY2014FY2015

Operating activities

1,398

1,299

2,116

△1,164

3,852

Investment activities△2,829△1,592△2,115△1,044△61

Financing activities

1,601

519

73

1,065

△２,639

△0

7

3

4

△12

169

234

78

△1,139

1,139

2,158

2,327

2,561

2,640

1,501

2,327

2,561

2,640

1,501

2,640

Effect of exchange rate changes
on cash and cash equivalents
Income taxes - deferred

28

△64

1,013

△33

△527

Net increase (decrease) incash and cash equivalents
Net income (loss)△18△1,480△11,093

549

2,503

Cash and cash equivalents atthe beginning of current period
Current net income (loss)
returned to parent company
shareholders△18△1,480△11,093

549

Cash and cash equivalents at

2,503

the end of current period

3939Consolidated Statements of Changes in Net Assets
April 1, 2015 through March 31, 2016

(Millions of yen)

Shareholders’ equity

Balance at the beginning of current period

Other comprehensive income, accumulated

Common stock

Capital surplus

Retained earnings

Treasury stock

Total shareholders’equity

2,190

1,802

1,662

△293

5,361

Net unrealized
Foreign
gains on available- currency translation
for-sale securities
adjustments
354

Remeasurementsof defined
benefit plans

131

Total otherTotal netcomprehensive
assetsincome, accumulated

181

6,028

667

Changes in items during the period
Current net income (loss) returned to parent

2,503

company shareholders
shareholders' equity

△327

△67

△420

△815

△815

-

-

2,503

-

2,503

△327

△67

△420

△815

1,688

2,190

1,802

4,166

△293

7,864

26

64

△239

△148

7,716

Total changes in items during the period
Balance at the end of current period

2,503

2,503

Net changes in items other than

Performance by Segment
FY2011FY2012(Millions of yen)

FY2013

FY2014(Millions of yen)

FY2015Net Sales

FY2011FY2012FY2013

FY2014FY2015

Segment income

Steel Business

28,55024,961

26,242

19,86019,853

Steel Business

375△1,045△1,21065

1,942

Agribusiness

12,323

12,72914,62813,01813,821

Agribusiness

865

881

1,532

980

737

810

695

723

642

620

Environmental Solutions Business

71

1

19

36

36

1,822

1,800

1,994

1,938

2,010

Crushed Stone and Material Recycling Business

67

77

146

151

89

437

374

223

151

150

Other *1

3

4

△30

△20

△6

Adjustments *2

△568

△385

△221

△116

△108

Adjustments *2△1,189△1,095△1,018

△804

△884

Total

43,37540,17543,59135,49436,348

Total

194△1,176

△562

409

1,915

Environmental Solutions Business

Crushed Stone and Material Recycling Business

Other *1

*1: Other: Contracting business operations not categorized in the reporting segments*2: Adjustments: Primarily general and administrative expenses in departments outside the reporting segments

40

40

Corporate Information

As of June 23, 2016

Corporate Information

OfficesCompany name

Asahi Industries Co., Ltd.

Saitama Office (Steel Business, Agribusiness)

Head officeDaiwa Higashi-Ikebukuro Building, 23-5 Higashi-Ikebukuro
3-chome, Toshima-ku, Tokyo 170-0013, Japan

222 Wataruse, Kamikawa-machi, Kodama-gun, Saitama 367-0394, Japan

TEL:

03-3987-2161

Osaka Office (Agribusiness)

URL:

http://www.asahi-kg.co.jp/

Osaka JA Building, 2-5 Nishitenma 1-chome, Kita-ku, Osaka-shi, Osaka 530-0047, JapanFoundedAugust 16, 1935

TEL: 06-6311-6215

Established

October 29, 1991

[Steel Plant]

Common stock

2,190 million yen

No. of employees

412 (consolidated base: 465)

TEL: 0274-52-2711[Fertilizer Plant]

Saitama Plant

222 Wataruse, Kamikawa-machi, Kodama-gun,
Saitama 367-0394, Japan TEL: 0274-52-2713

Kanto Plant

222 Wataruse, Kamikawa-machi, Kodama-gun,
Saitama 367-0394, Japan TEL: 0274-52-2712

Corporate Officers

Chiba Plant

13, Sakuradai 1-chome, Asahi-shi, Chiba
289-0506, Japan

President

Kansai Plant

Masanori Murakami[Farm]

Managing Directors

Noriyuki Nakamura, Makoto Yaguchi, Kiyoshi Hirose

Directors

6776 Minakuchi, Minakuchi-cho, Koka-shi,
Shiga 528-0005, Japan

Kamikawa
Research Station

TEL: 0479-68-1600
TEL: 0748-62-8171

863-2 Higashikitahara, Niisato, Kamikawamachi, Kodama-gun, Saitama 367-0232, Japan

Affiliated Companies

Susumu Inaba, Masaru Kusama

Jobu Co., Ltd. (crushed stone production and sales, material recycling)

Directors and audit and supervisory committee members
Ichiro Tajima, Kou Sato3085-1 Kanezawa, Minano-machi, Chichibu-gun, Saitama 369-1601, Japan
TEL: 0494-62-1321

Directors and audit and supervisory committee members (independent)
Ryoji Aragaki, Shinichi Tajima, Hideki Hanaeda

President: Atsushi Terai

Asahi Business Support Co., Ltd. (contracting, temporary staffing)
222 Wataruse, Kamikawa-machi, Kodama-gun, Saitama 367-0301, Japan

Executive officers

TEL: 0274-52-6411

Toshio Sakamoto, Satoru Tanaka,Yoshiro Yamada, Masaru Sekine

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President: Makoto Sato

Investors Information
Stock Information

Dividends

As of March 31, 2016

Our basic policy is to return profits to shareholders, fully taking into consideration our consolidated

Stock listing

Tokyo Stock Exchange, JASDAQ

Securities identification code

5456

StocksTotal shares authorized:

24,000,000

Total shares issued:

7,200,000

No. of shareholders

6,872

financial results and the company’s financial status and financial requirements, ensuring that stableprofit distribution is continued.

Shareholder Benefit Program

Long-term Asahi Industries shareholders are eligible for additional benefits over and above thebenefits awarded to normal shareholders.

Benefits■Major Shareholders
Name of shareholder

As of March 31, 2016

No. of shares held

No. of shares held

Shareholding
percentage (%)

Hanwa Co., Ltd.

600,000

8.6

Mitsui & Co., Ltd.

600,000

8.6

Asagami Corporation

522,000

7.5

Katakura ＆ Co-op Agri Corporation

300,000

4.3

The Norinchukin Bank

210,000

3.0

Tokyo Tekko Co., Ltd.

200,000

2.9

Nihon Matai Co., Ltd.

181,000

2.6

Marubeni Itochu Sumisho Techno Steel Inc.

180,000

2.6

Kanehira Steel Co., Ltd.

180,000

2.6

Credit Saison Co., Ltd.

134,700

1.9

Security companies 0.1％

■of Shareholders

Overseas corporate shareholders 0.5％

Long-term shareholders(shareholders who have owned
shares for one year or more)*

100 -199

Rice coupons (4)500 yen Quo card (gift card)

200 -299

Rice coupons (8)1,000 yen Quo card (gift card)

300 -499

Rice coupons (12)1,500 yen Quo card (gift card)

500 or more

Rice coupons (16)2,000 yen Quo card (gift card)* Holdings where the shareholder number has changed are not regarded as continuous holdings (as in the following situations):① Change in securities company (stockbroker)② Repurchase after selling all shares held
③ Use of stock lending transactions④ Change to registered owner due to inheritance, etc.

TopicsFacility Tours(Note) Shareholding percentage (%) is calculated exclusive of treasury stock (200,000 shares).
Percentages are shown rounded off to the first decimal place.

■Composition

Normal shareholder
benefits

As of FY2016, we have been conducting tours of our various
facilities to provide all our shareholders with an opportunity
to gain a deeper understanding of the work we do at Asahi
Industries. The first of these tours, held in May 2016, took
visitors to our Kamikawa Research Station, which serves asa research farm for the development of vegetable varieties
and as a testing ground for our fertilizers. The facility tours
are an opportunity for us to send information about Asahi
Industries out into the community, but also a chance to hearcandid feedback from shareholders, and we plan to hold thetours on a regular basis in years to come.

Treasury stock 2.8％
Financial institutions 4.0％
Individuals and others 34.8％
Japanese corporate shareholders 57.8％

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Compilation policy
This report was compiled so as to provide everyone with clear and straightforward account of the business activities and financial details of the Asahi Industries Group (Asahi Industries Co., Ltd. and its affiliated companies), together with
its environmental and CSR activities in FY2015.
Companies covered

Period covered

Reference guidelines

Asahi Industries Co., Ltd.

April 1, 2015 through March 31, 2016

・ GRI (Global Reporting Initiative)“Sustainability Reporting Guidelines 4.0”
・ Ministry of the Environment, Japan,“Environmental Reporting Guidelines” (Fiscal Year 2012 Version)

Jobu Co., Ltd.

Asahi Business Support Co., Ltd.
Johnson Asahi Pty. Ltd.

Laiyang Longda Asahi Agricultural
Technology Co., Ltd.

(*Periods other than FY2015 are also partially covered.)

Publication date:Previously published:

September 2016

November 2015

Planned next publication: September 2017

Available on our website at:
http://www.asahi-kg.co.jp/en/

Contact information
Public Relations Section,Corporate Planning Department,

Administration and Planning Division Asahi Industries Co., Ltd.
Daiwa Higashi-Ikebukuro Building, 23-5 Higashi-Ikebukuro
3-chome, Toshima-ku, Tokyo 170-0013, Japan
TEL: 03-3987-0283

Email: ir@asahi-kg.co.jp