Consolidated Financial Results for the Fiscal Year Ended March 31, 2014
Asahi Holdings, Inc. [Japan GAAP]May 12, 2014
Stock code:

5857

Shares listed:Tokyo Stock Exchange (First Section)

U R L:

http://www.asahiholdings.com

Representative

Mitsuharu Terayama, Chairman, CEO

For further information please contact:

Keitaro Shigemasa, Director

The Ordinary General Meeting of Shareholders:June 17, 2014

Filing date of financial statement:

June 18, 2014

(Phone) +81-3-6270-1833Start of dividend payment:
May 30, 2014
Supplementary materials for the financial results: No
Investor conference for the financial results:
Yes (for institutional investors, analysts)(Rounded down to the nearest million yen)
1. Results of the fiscal year ended March 31, 2014 (From April 1, 2013 to March 31, 2014)(1) Results of operations(Percentage changes relative to previous corresponding period)
Net sales

Operating income

The fiscal year ended
Millions of yen％
Millions of yen％
March 31, 2014
94,254 (2.2)
9,629
28.5
March 31, 2013
96,368 (36.2)
7,495 (33.2)(Note) Comprehensive income:The fiscal year ended March 31, 2014
The fiscal year ended March 31, 2013

Ordinary income
Millions of yen％

Net income
Millions of yen％

9,985 28.1
5,969 32.1
7,794 (30.0)
4,518 (23.8)
6,418 million yen : 32.7%
4,836 million yen : (21.3)%

DilutedOrdinary
Operating
Return on
net income
income toincomeequityper share
total assets
to net sales
Yen
％
％
％
－
13.5
15.6
10.2
－
11.2
12.9
7.8
March 31, 2014 : －million yen
March 31, 2013 : － million yen

Net income per
share
The fiscal year ended
Yen
March 31, 2014
183.43
March 31, 2013139.24(Note) Equity in earnings of affiliates:(2) Financial Position

Shareholders’equity ratio
As ofMillions of yen
Millions of yen％
March 31, 2014
66,11946,623
70.3
March 31, 2013
62,26042,012
67.3(Reference) Shareholders’ equity:
As of March 31, 2014
46,479 million yen
As of March 31, 2013
41,875 million yen
Total assets

Net assets

Net assets per share
Yen
1,426.55
1,288.56(3) Cash flows

The fiscal year ended
March 31, 2014
March 31, 2013

Cash flows fromoperatingactivities
Millions of yen
14,045(419)

Cash flows frominvestingactivities
Millions of yen(1,090)(2,064)

Cash flows fromfinancing activities
Millions of yen(8,008)2,603

Cash and cash
equivalents at endof the fiscal year
Millions of yen
9,470
4,141

2. Dividend payments
Dividends per share
1st
Quarter

2nd
Quarter

3rd
QuarterYear-end

AnnualThe fiscal Year ended

Yen

Yen

Yen

Yen

Yen

March 31, 2013
March 31, 2014
Year ending
March 31, 2015 (Forecast)

－
－

30.00
30.00

－
－

30.00
30.00

60.00
60.00

－

30.00

－

30.00

60.00

Total
Dividend
Payment(Annual)Millionsof yen1,948
1,953

Payout
Ratio

Dividend
to Net Assets(Consolidated) (Consolidated)

%
43.1
32.7

%
4.8
4.4

31.1

3. Forecast (From April 1, 2014 to March 31, 2015)(Percentage changes relative to previous corresponding period)
Net income
Operating
Ordinary income
Net income
Net sales
per share
incomeMillions of Yen ％Six months ending
September 30, 2014
Year ending March 31, 2015

Millions of Yen％

Millions of Yen％

Millions of Yen ％Yen

46,000(3.9)

4,500 (14.4)

4,500 (16.6)

2,800 (14.5)

85.88

96,0001.9

10,00010,0006,300

193.11

3.8

0.1

5.5

* Notes(1) Changes in important subsidiaries during the current fiscal year : No
(2) Changes in accounting policies, accounting estimates and restatement(i) Changes in accounting policies resulting from the revision of the accounting standards and otherregulations: No(ii) Changes other than (i) above: No(iii) Changes in accounting estimates: No(iv) Restatement: No(3) Number of issued shares (common stock)(i) Number of issued shares at the end of year (including treasury shares)
36,254,344 shares
As of March 31, 2014
As of March 31, 2013
36,254,344 shares(ii) Number of treasury shares at the end of year
As of March 31, 2014
3,672,457 shares
As of March 31, 2013
3,756,439 shares(iii) Averaged number of shares during the period
32,540,417 sharesYear ended March 31, 2014
Year ended March 31, 2013
32,448,647 shares(Reference) Summary of Nonconsolidated Results
1. Nonconsolidated Results of the Year ended March 31, 2014(From April 1, 2013 to March 31, 2014)(1) Results of operations(Percentage changes relative to previous corresponding period)
Net sales
The fiscal year ended
March 31, 2014
March 31, 2013

The fiscal year ended
March 31, 2014
March 31, 2013

Millions of yen

8,189
4,868

％

Operating income

Ordinary income

Millions of yen

Millions of yen

68.2(19.6)

7,086
3,695

％

91.8
(26.2)

7,116
3,719

Net income per share

Diluted net income per shareYen
215.34107.96

Yen
－
－

％

91.3
(25.7)Net income
Millions of yen

7,007
3,503

％

100.0
(28.7)

(2) Financial Position

As ofMarch 31, 2014
March 31, 2013
(Reference)
Shareholders’ equity

Total assets

Net assets

Millions of yen
46,51747,473

Millions of yen
40,92735,727

As of March 31, 2014 : 40,849 million yen

Shareholders’equity ratio
％
87.8
75.1

Net assets per
share
Yen
1,253.74
1,096.97

As of March 31, 2013 : 35,649 million yen*Indication regarding the situation of audit procedures
These financial results are not subject to the audit procedures pursuant to the Financial Instruments andExchange Act. As of the disclosure of the financial results, the procedures for auditing financial statements
pursuant to the Financial Instruments and Exchange Act are in progress.
*Statement regarding the proper use of financial forecasts and other special remarks
These forecast performance figures are based on the information currently available to the company’s
management and certain assumptions judged rational. Accordingly, these might be cases in which actual
results materially differ from forecasts of this report. Please refer to page 2 “1. Information Regarding
Consolidated Performance (3) Forecast of Consolidated Performance for the Year ending March 31, 2015”forthe assumptions used and other notes.

【Appendix】

Table of contents of the appendix

1. Information Regarding Consolidated Performance ...................................................................................... 2(1) Consolidated Operating Results for the Year ended March 31, 2014 ....................................................... 2(2) Consolidated Financial Position and Cash Flows for the Year ended March 31, 2014 .............................. 2(3) Forecast of Consolidated Performance for the Year ending March 31, 2015 ............................................. 2(4) Dividends .............................................................................................................................................. 2(5) Business risks ........................................................................................................................................ 2
2. Our Group .................................................................................................................................................. 3(1) Precious metal recycling business .......................................................................................................... 3(2) Environmental preservation business .................................................................................................... 3
3. Management Policy.................................................................................................................................. 5(1) Basic management policy ................................................................................................................... 5(2) Medium to long-term strategies ........................................................................................................ 5(3) Challenge to be addressed .................................................................................................................. 5(4) The state of internal control system .................................................................................................. 5
4. Consolidated Financial Statements ........................................................................................................ 6(1) Consolidated Balance Sheets ............................................................................................................. 6(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income .... 8
Consolidated Statements of Income for the fiscal year ended March 31, 2014 and 2013 ................................ 8
Consolidated Statements of Comprehensive Income for the fiscal year ended March 31, 2014 and 2013 ...... 8(3) Consolidated Statements of Changes in Net Assets ................................................................................ 9(4) Consolidated Statements of Cash Flows ......................................................................................... 11(5) Notes on Consolidated Financial Statements ................................................................................. 12[Notes on Assumptions for Going Concern] ...................................................................................................... 12[Basis of Presenting Consolidated Financial Statements] ............................................................................... 12[Changes in Presentation] ................................................................................................................................. 14[Segment Information]....................................................................................................................................... 15[Per Share Information]..................................................................................................................................... 16[Significant Subsequent Events] ....................................................................................................................... 16
5. Others ..................................................................................................................................................... 17(1)Changes of Directors ......................................................................................................................... 17(2)Amounts of Production, Orders Received, Sales.............................................................................. 17

1

1. Information Regarding Consolidated Performance(1) Consolidated Operating Results for the Year ended March 31, 2014
During the consolidated fiscal year ended March 31, 2014, as the yen fell and share prices rose against the
backdrop of the Government's economic policies and monetary easing, the Japanese economy showed a toneof gentle recovery, including improved corporate profits and rebounding consumer spending.
Under these economic conditions, in the precious metal recycling business, factors such as an increased
collection volume of electronic parts led to a greater volume of collection of gold compared to the previous year.
However, because the collection volume of flat panel displays decreased, the collection volume of silver, etc.,
was lower than that of the same term last year. Although the average sales prices for gold, platinum,
palladium, and others were higher than they were during the corresponding period a year earlier, the averagesales price for silver was lower.
In the environmental preservation business, even though domestic production activity was sluggish, thecollection volumes of medical-related waste, recycled glass, and so on surpassed those of the same term one
year earlier. As of March 31, 2014, KOEIKOGYO CO., LTD. which designs and constructs disaster prevention
facilities and installs air conditioning and sanitation equipment, became a wholly owned subsidiary of ourgroup.
As a result of the above, as consolidated results for the fiscal year, we recorded net sales of 94,254 million
yen, down 2,114 million yen (-2.2%) year-on-year; operating income of 9,629 million yen, up 2,134 million yen(+28.5%) year-on-year; ordinary income of 9,985 million yen, up 2,191 million yen (+28.1%) year-on-year; andnet income of 5,969 million yen, up 1,450 million yen (+32.1%) year-on-year.
Looked at by segment, sales in the precious metal recycling business were 77,212 million yen, down 2,964
million yen (-3.7%) year-on-year; and sales in the environmental preservation business were 17,041 million
yen, up 850 million yen (+5.3%) year-on-year.

(2) Consolidated Financial Position and Cash Flows for the Year ended March 31, 2014
As of this fiscal year ended March 31, 2014, total assets amounted to 66,119 million yen, up 3,858 million
yen from the previous fiscal year end. This was due mainly to increase of 5,499 million yen in cash anddeposits, decrease of 1,220 million yen in notes and accounts receivable-trade.
Total liabilities amounted to 19,496 million yen, down 752 million yen from the previous fiscal year end.
This was due mainly to decrease of 5,687 million yen in loans payable, increase of 2,285 million yen in income
taxes payable, increase of 1,180 million yen in notes and accounts payable-trade.
Net assets totaled 46,623 million yen up 4,611 million yen from the previous fiscal year end.
Net cash provided in operating activities amounted to 14,045 million yen due mainly to 9,896 million yen ofincome before income taxes and minority interests, 1,842 million yen of depreciation and amortization,
decrease in inventories, decrease in notes and accounts receivable-trade, increase in notes and accounts
payable-trade, and income tax paid.
Net cash used in investing activities amounted to 1,090 million yen due mainly to 886 million yen in
payments for purchase of fixed assets.
Net cash used in financial activities amounted to 8,008 million yen due mainly to 6,160 million yen
decrease of loans payable, expenditure of 1,951 million yen for the payment of dividends.
As a result, Cash and cash equivalents as of March 31, 2014, increased 5,328 million yen from March 31,
2013, to 9,470 million yen.

(3) Forecast of Consolidated Performance for the Year ending March 31, 2015
The tone of economic recovery against the backdrop of the Government's economic policies and so on is
expected to continue, but because of matters of concern such as the faltering global economy and of theincrease in Japan's consumption tax, the future remains opaque. Under these conditions, our group willcontinue working to expand revenue and profit.
Consequently, for the next fiscal year performance, we forecast net sales of 96,000 million yen (+1.9%),
operating income of 10,000 million yen (+3.8%), ordinary income of 10,000 million yen (+0.1%) and net incomeof 6,300 million yen (+5.5%).

(4) Dividends
Our basic policy is to improve corporate value continuously by maintaining stable profitability andachieving further growth, and to meet shareholders’ expectations by continuous stable dividends. We also
consider it important to fulfill internal reserves for strategic investment to enhance existing business anddevelop new business.
Under this basic policy, the fiscal year’s end dividend will be 30 yen per share, consequently, the annual
dividend per share for the fiscal year ended March 31, 2014 will be totaled 60 yen including the interim
dividend of 30 yen per share.
Further, for the year ending March 31, 2015, we are planning to pay out 30 yen per share for both interim
and year end dividend, making the full year amount 60 yen per share.

(5) Business risks
Here are the main risk factors which could affect our financial condition and results of operations. Please
note that the following is not an exhaustive discussion of all risk factors that should be considered before
investing in the shares of the company.
① Influence of fluctuations in precious metal market prices and the exchange rate
Precious metals, our major products of precious metal recycling business, are traded at the2international commodity markets, and the prices are affected by many factors around the world such associal and economic movement of supply and demand country or exchange rate etc.
Therefore, our group’s performance could be affected by precious metal market price changes. We aremaking efforts to reduce risks by hedging through forward exchange dealing.
② Legal restrictions
We are operating industrial waste related business under “Waste Disposal and Public Cleansing Act”.
Also we are subject to “Water Pollution Control Law”, “Air Pollution Control Law” and “Sewerage Law”
etc.
In addition we have local government approvals of collecting, transporting and disposing industrial
waste, and to obtain these approvals we have to observe regulations in local administration level.
From rising society's concern over environmental problem, these law restrictions are in the directionof being strengthened. To prepare for this situation, further capital investment could be required. At thetime of establishing, relocating or replacing processing facilities, we will have to acquire appropriate
permission. In such case, it could be needed to obtain neighbors’ consent which could be difficult.
In consequence, these legal restriction and social movement could affect our financial condition andresults of operations.

2. Our Group
Our Group comprises of the holdings company ”Asahi Holdings, Inc.”, ”Asahi Pretec Corp.”, ”Japan Waste
Corporation”, 18 other subsidiaries and 2 affiliates. Our main businesses are precious metal recycling
business and environmental preservation business. The details are as follows.

(1) Precious metal recycling businessIn the precious metal recycling business, we sell precious/rare metal products such as gold, silver, platinum,
palladium, and indium by recycling scrap containing rare metals, etc.
In Japan, Asahi Pretec Corp. collects scraps containing precious/rare metals from the electronics, dentistry,jewelry manufacturing and distribution, and automotive catalyst sectors. At factories around the country, itcollects, separates and refines the scrap and sells high-purity metals to trading companies,
semiconductor/electronic component makers, film manufacturers, etc. Usuda Manufacturing Co., Ltd.
engages in precision cleaning and precious metal delamination of manufacturing equipment parts
semiconductor/electronic component makers.
Overseas, Asahi G&S Sdn. Bhd. in the Malaysia/Singapore region, Shanghai Asahi Pretec Co., Ltd. in
China, Asahi Pretec Korea Co., Ltd. in South Korea, and Asahi Pretec Taiwan Co., Ltd. in Taiwan are
engaged in the precious metal recycling business. Additionally, Asahi Shih Her Technologies Co., Ltd. isengaged in the precision cleaning business in Taiwan.

(2) Environmental preservation business
The main line of our environmental preservation business is the collection, transport, and intermediate
treatment of industrial waste.
Asahi Pretec Corp. treats and detoxifies waste acid, waste alkali, waste oil, sludge, waste drugs, andmedical-related waste generated by sites in various industries, such as factories, photo labs, printing presses,
hospitals, schools, and research institutes. Additionally, a group of companies with Japan Waste Corporation
as their parent firm is engaged in the environmental preservation business as follows. Nihon Chemitech Co.,
Ltd. and JW Logistics, Co., Ltd. mainly perform the collection, transport, and intermediate treatment ofindustrial waste generated by factories. Iyotec Co., Ltd. engages in business such as dispatch of personnel tomanufacturers and collaborates on the treatment of waste from industrial sites. Taiyo Chemical Co., Ltd.
processes medical-related waste and industrial effluent from companies in the IT, electronics, andpetrochemical businesses. Fuji Rozai Co., Ltd. processes specially controlled industrial waste including dioxin
and heavy metals at local governments' incinerators. It engages in repair, demolition, and waste brickprocessing of smelting furnaces for glass manufacturing. It removes firebricks from smelting furnaces andperforms materials recycling and hazardous materials handling. JW Glass Recycling Co., Ltd. collects sheet
glass and glass bottles, separates them for crushing, and recycles them into high-quality glass cullet, which it
sells. Ecomax Co., Ltd. performs detoxification (concrete solidification) treatment of combustion residue,
sludge, soot, and dust produced by incineration facilities. Kyodo Chemical Co., Ltd. carries out collection,transport, and intermediate treatment of industrial waste and engages in the photographic materials
business. INTER CENTRAL, INC. manufactures and sells heating equipment and designs and installs
radiant heating and cooling equipment. KOEIKOGYO CO., LTD. designs and constructs disaster prevention
facilities and installs air conditioning and sanitation equipment.

3Precious Metal Recycling Business

Environmental Preservation BusinessAsahi Holdings, Inc.

Asahi Pretec Corp.

Japan Waste Corporation

Domestic Bases

Overseas Bases（Malaysia）
Asahi G＆S
Sdn．Bhd．

Entrustment ofindustrial waste
treatment

Selling recycling scrap
containing rare metals

Nihon ChemitechCo., Ltd.

JW Logistics, Co., Ltd.

（China）
Taiyo Chemical Co.,Ltd.

Shanghai Asahi
Pretec Co., Ltd.

Iyotec Co., Ltd.
（Korea）
Fuji Rozai Co., Ltd.

Asahi Pretec Korea
Co., Ltd.

（Taiwan）

JW Glass Recycling Co.,Ltd.

Asahi Pretec Taiwan
Co., Ltd.

Ecomax Co., Ltd.

Asahi Shih Her
Technologies Co., Ltd.

※1

Kyodo Chemical Co., Ltd.

Other: 1 Company
INTER CENTRAL, INC.

Domestic Bases
Usuda ManufacturingCo., Ltd.

※2

KOEIKOGYO CO., LTD

Other: 1 Company

Other: 2 Companies（Note）1. capital relationship2. business relationshipNo mark consolidated subsidiaries※1 Affiliated companies accounted for by equity method※2 Affiliated companies not accounted for by equity method

43. Management Policy(1) Basic management policy
We aim to pursue continuous growth by expanding precious metal recycling business and environmental
preservation business, and contribute to the material-cycle society. In the process above, we put emphasis on
the balance between stable profit and continuous growth. Our basic management policy is to heighten
corporate value through these activities and to respond to the expectations of all stakeholders, including
customers, shareholders and employees over a long period of time.

(2) Medium to long-term strategies
In accordance with the 6th Mid-Term Business Plan (April 2012 through March 2015), the Group aims topursue these actions: "Expanding business in Asian markets," "Broadening business domains through M&A,"
and "Streamlining group management" while utilizing existing management resources. As part of thesestrategies, we established a subsidiary and a joint venture subsidiary with a strong local company in Taiwan.
Through M&A action, we also turned KOEIKOGYO CO., LTD. into a wholly owned subsidiary.
Also, the consolidated performance goal in the last fiscal year of the 6th Mid-Term Business Plan is asfollows.
As for dividends, we are going to decide dividend amount per share putting emphasis on stable returning
profits to shareholders and taking medium to long-term dividend payout ratio into consideration.
The consolidated performance goal in the last fiscal year of the 6th Mid-Term Business Plan
Sales
¥ 96.0 billion
Operating Income¥ 10.0 billion(3) Challenge to be addressed① Expanding business in Asian markets
In South Korea, we will further expand business in the electronics and dental fields, and in Taiwan, we
will expand business in electronics. We aim to expand the amount of precious metal collected from Asianand other foreign markets by developing new customers through building cooperative relationships withlocal firms.
② Broadening business domains through M&A
We will continue to promote M&A with a high investment return, and not only expand the existing
business such as the environmental preservation business but also aim to enter new business fields.
③ Streamlining group management
We will reduce administrative costs on a consolidated basis by consolidating the group management
functions in the holding company. And on the other hand, we will strengthen the in-house information
system and achieve speedy and efficient operations.

(4) The state of internal control system① The state of fundamental opinion and policy about corporate governance
The relevant matter is stated at corporate governance information.
② Attempt to enhance internal control system through this fiscal year
We are continuously acting to strengthen internal control system, checking and evaluating the usages of
the rule for internal control by in-house organization “Internal controls promotion committee”.

5

4. Consolidated Financial Statements(1) Consolidated Balance Sheets

ASSETS
Current assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubt for accounts
Investment and other assets
Total noncurrent assets
Total assets

As of March 31,
2013
Millions of yen

As of March 31,
2014Millions of yen

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

4,141
12,539
5,067
8,114
1,077
493
1,873
(9)
33,2989,640
11,319
4,094
8,596
1,107
695
2,191
(120)
37,524

93,673109,981
39,78583,525
10,756
6,754
21,292(1,172)364,594

17,918(8,637)
9,281
13,443(11,246)
2,197
13,031140
2,462(2,153)309
24,95918,219(9,239)8,979
13,305(11,493)
1,811
13,122226
2,486(2,220)266
24,407177,027(89,776)
87,252
129,279(111,676)
17,602
127,506
2,201
24,160(21,571)
2,588
237,150

2,380
797
3,177

2,021
835
2,856

19,6408,115
27,755

110
162
558
(6)
824
28,96262,260

171
123
1,042
(5)
1,331
28,595
66,1191,664
1,202
10,130(55)
12,940277,845
642,439

U.S. dollar amounts represent translations using the approximate exchange rate on March 31, 2014 of
Yen102.92=US$1, and are included solely for the convenience of readers.

6LIABILITIESCurrent liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Accounts payable-other
Income taxes payable
Provision for bonuses
Provision for directors’ bonuses
Provision for repairs
Provision for product warranties
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Deferred tax liabilities
Provision for retirement benefits
Net defined benefit liability
Other
Total noncurrent liabilities
Total liabilities
NET ASSETS
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total accumulated other comprehensive income
Subscription rights to shares
Minority interests
TOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS

As of March 31,
2013
Millions of yen

As of March 31,
2014Millions of yen

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

2,463
10,245
1,500
1,388
349
597
8
113
21
1,864
18,553

3,643
495
143
1,516
2,635
600
39
101
16
3,026
12,21735,402
4,813
1,390
14,73925,603
5,835
379
986
156
29,408
118,712

－
1,541
107
－
45
1,694
20,248

5,419
1,697
－
122
38
7,278
19,496

52,661
16,497－
1,187
372
70,717
189,429

4,480
6,087
36,697(5,507)41,7584,480
6,108
40,715(5,384)45,92043,53759,349395,605(52,315)446,175

19
(41)
139
116
77
59
42,01262,260

15
(121)
665
559
77
66
46,623
66,119148(1,179)
6,467
5,435
757
642
453,010642,439

U.S. dollar amounts represent translations using the approximate exchange rate on March 31, 2014 of
Yen102.92=US$1, and are included solely for the convenience of readers.

7(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income for the fiscal year ended March 31, 2014 and 2013

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

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

The fiscal year
ended March 31,
2013
Millions of yen

The fiscal year
ended March 31,
2014Millions of yen

The fiscal year
ended March 31,
2014
Thousands of
U.S. dollars

96,36883,557
12,811
5,316
7,495
363
64
7,794
14
459
7,349
2,525
305
2,831
4,518
－

94,25479,01815,235
5,606
9,629
392
36
9,985
46
136
9,896
3,942
(14)
3,927
5,968
(0)
5,969

915,803
767,768
148,035
54,47393,562
3,818
356
97,025454
1,326
96,15338,306(144)
38,162
57,991(6)
57,997

4,518

Consolidated Statements of Comprehensive Income for the fiscal year ended March 31, 2014 and 2013
The fiscal year
ended March 31,
2013
Millions of yen

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

The fiscal year
ended March 31,
2014Millions of yen

The fiscal year
ended March 31,
2014
Thousands of
U.S. dollars

4,518

5,968

57,991

0
70
239

(3)
(79)
511

(37)
(776)
4,974

8

21

211

318
4,836

449
6,418

4,372
62,363

4,836
－

6,411
6

62,296
66

U.S. dollar amounts represent translations using the approximate exchange rate on March 31, 2014 of
Yen102.92=US$1, and are included solely for the convenience of readers.

8(3) Consolidated Statements of Changes in Net Assets
For the year ended March 31, 2013
(Millions of yen)
Shareholders’ equity
Capital stock Capital surplus
Balance at April 1,2012
Changes of items during
the period
Dividends from surplus

4,480

Retainedearnings

6,087

34,124

Net income

Treasury stock

Total
shareholders’equity(5,656)39,036(1,945)(1,945)

4,518

4,518

Purchase of treasury stock
Disposal of treasury stock
Net changes of items otherthan shareholders’ equity
Total Changes of items
during the period
Balance at March 31, 2013

(0)

(0)

(0)

149

149

－

(0)

2,572

149

2,721

4,480

6,087

36,697(5,507)41,758(Millions of yen)

Accumulated other comprehensive income

Balance at April 1,2012
Changes of items during
the period
Dividends from surplus

Valuationdifference on
available-forsale
securities

Deferred
gains orlosses onhedges

18

(111)

Total
Subscription
Foreignaccumulated rights to Minority Total net
currencyinterest
assetsothersharestranslation comprehensive
adjustment
income

(108)

(201)

67

－

38,902(1,945)

Net income

4,518

Purchase of treasury stock(0)

Disposal of treasury stock
Net changes of items otherthan shareholders’ equity
Total Changes of items
during the period
Balance at March 31, 2013

149
0

70

247

318

10

59

388

0

70

247

318

10

59

3,110

19

(41)

139

116

77

59

42,0129

For the year ended March 31, 2014

(Millions of yen)
Shareholders’ equity

Capital stock Capital surplus
Balance at April 1,2013
Changes of items during
the period
Dividends from surplus

4,480

Retainedearnings

6,087

36,697

Net income

Treasury stock

Total
shareholders’equity(5,507)41,758(1,951)(1,951)

5,969

5,969

Purchase of treasury stock
Disposal of treasury stock
Net changes of items otherthan shareholders’ equity
Total Changes of items
during the period
Balance at March 31, 2014

21

(1)

(1)

124

145

－

21

4,017

122

4,161

4,480

6,108

40,715(5,384)45,920(Millions of yen)

Accumulated other comprehensive income

Balance at April 1,2013
Changes of items during
the period
Dividends from surplus

Valuationdifference on
available-forsale
securities

Deferred
gains orlosses onhedges

19

(41)

Total
Subscription
Foreignaccumulated rights to Minority Total net
currencyinterest
assetsothersharestranslation comprehensive
adjustment
income

139

116

77

59

42,012(1,951)

Net income

5,969

Purchase of treasury stock(1)

Disposal of treasury stock
Net changes of items otherthan shareholders’ equity
Total Changes of items
during the period
Balance at March 31, 2014

145
(3)

(79)

526

442

－

6

449

(3)

(79)

526

442

－

6

4,611

15

(121)

665

559

77

66

46,62310

(4) Consolidated Statements of Cash Flows
For the year ended March 31, 2014 and 2013

Net cash provided by (used in) operating activities
Income before income taxes and minority interests
Depreciation and amortization
Impairment loss
Amortization of goodwill
Increase (decrease) in provision for retirement benefits
Increase (decrease) in net defined benefit liability
Interest and dividends income
Interest expenses
Loss (gain) on valuation of investment securities
Loss (gain) on sales and retirement of noncurrent assets
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accounts payable-other
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Payments into time deposits
Proceeds from collection of guarantee deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of stocks of subsidiaries and affiliates
Other, net
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Repayments of finance lease obligations
Purchase of treasury stock
Proceeds from sales of treasury stock
Proceeds from stock issuance to minority shareholders
Cash dividends paid
Other, net
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
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

The fiscal
year ended
March 31,2013
Millions of yen

The fiscal
year ended
March 31,
2014
Millions of yen

The fiscal
year ended
March 31,2014
Thousands of
U.S. dollars

7,349
2,100
327
368
13
－
(23)
26
20
97
(2,780)(384)(1,110)
(195)
(799)
5,009
22
(27)
(6,597)
1,172
(419)

9,896
1,842
102
387
－
12
(31)
22
－
24
1,636
1,152
724
(74)
29
15,72631(23)(2,436)
747
14,045

96,153
17,907
997
3,768
－
125
(305)
222
－
240
15,899
11,203
7,037
(728)
283
152,801
308(224)(23,678)
7,264
136,472

－
19
(804)
130
(368)
(1,081)39(2,064)

(79)
34
(679)
62
(207)
(156)
(63)
(1,090)(774)
333(6,601)603(2,013)(1,522)(618)(10,592)

5,527－(1,035)
(60)
(0)
149
59
(1,946)
(90)
2,603
494
613
3,527
4,141

(9,750)5,100(1,510)
(40)
(1)
145
－
(1,951)－(8,008)
381
5,328
4,141
9,470

(94,736)
49,553(14,672)
(398)
(15)
1,412
－
(18,957)－(77,812)3,706
51,77440,24092,014

U.S. dollar amounts represent translations using the approximate exchange rate on March 31, 2014 of
Yen102.92=US$1, and are included solely for the convenience of readers.

11(5) Notes on Consolidated Financial Statements[Notes on Assumptions for Going Concern]
Not applicable[Basis of Presenting Consolidated Financial Statements]
１．Scope of consolidation(1)Number of consolidated subsidiaries: 20
Major consolidated subsidiaries
Asahi Pretec Corp.
Japan Waste Corporation
Nihon Chemitech Co., Ltd.
JW Logistics, Co., Ltd.
Taiyo Chemical Co., Ltd.
Iyotec Co., Ltd.
Fuji Rozai Co., Ltd.
JW Glass Recycling Co., Ltd.
Ecomax Co., Ltd.
Usuda Manufacturing Co., Ltd.
Kyodo Chemical Co., Ltd.
INTER CENTRAL, INC.
KOEIKOGYO CO., LTD.
Asahi G&S Sdn. Bhd.
Shanghai Asahi Pretec Co., Ltd.
Asahi Pretec Korea Co., Ltd.
Asahi Pretec Taiwan Co., Ltd.
Asahi Shih Her Technologies Co., Ltd.
and 2 other companies
KOEIKOGYO CO., LTD. has become consolidated subsidiary on March 2014 by stock acquisition.
(2) Major unconsolidated subsidiaries
None
2. Equity method affiliate(1)Number of equity method affiliate: 1
Major equity method affiliate
Jiangmen Asahi Pretec Kanfort Environmental Managemant Co., Ltd.
(2)Non equity method affiliate (Asahi・Broadlink,INC.) is not included within the scope of the equity
method because it is insignificant and its net income and retained earning (the amounts equivalent tothe company’s interest in the companies) does not significantly affect consolidated financial statement.
3. Fiscal year of consolidated subsidiaries
Among consolidated subsidiaries, the fiscal year end of Asahi G&S Sdn. Bhd., Shanghai Asahi Pretec
Co., Ltd., Asahi Pretec Korea Co., Ltd., Asahi Pretec Taiwan Co.,Ltd and Asahi Shih Her Technologies
Co.,Ltd. is December 31 of each year. For the preparation of consolidated financial statements, thecompany uses financial statements as of December 31 and makes adjustments as necessary forconsolidation in relation to significant transactions during their year-end date and the consolidated
year-end date.
4. Accounting policies(1) Valuation standards and methods for major assetsa) Securities
Other securities
1): Other securities for which market quotations are available are stated at fair value prevailingat the balance sheet date with unrealized gains and losses, directly included in net assets. The costof securities sold is determined by the moving-average method.
2): Other securities for which market quotations are not available are valued at cost mainly
determined by the moving-average method.
b) Derivative
Market price methodc) Inventories
Merchandise and finished goods, work in process, raw materials and supplies
Stated at cost. Cost is determined by the weighted-average method (the method of write-downs
based on the decrease in profitability is applied in order to calculate the inventory value on thebalance sheet).
Note: A part of merchandise and finished goods is determined by individual cost method based on
the actual cost method.
(2) Depreciation and amortization for major assets

12a) Property, plant and equipments other than leased assets
The company and domestic consolidated subsidiaries: declining-balance method
Note: Buildings acquired on or after April 1, 1998 other than equipments: straight-line method
Foreign consolidated subsidiaries: straight-line method based of accounting standards of local
country
Useful life of principle assets is as follows:
Property plant and equipments
2 to 50 years
Machinery
2 to 17 yearsb) Intangible assets other than leased assets
The company and domestic consolidated subsidiaries: straight line method
Foreign consolidated subsidiaries: straight-line method based on accounting standards of local
country.
Software for internal use is amortized under the straight-line method over the expected useful
lives.
c) Leased assets
Leased assets related to financial leases that do not transfer ownership rights to the lessees areamortized under the straight-line method based on the lease term as the useful life and residual
value of zero.
(3) Significant allowancesa) Allowances for doubtful accountTo prepare for uncollectible credits and loans, general allowance of the company and domestic
consolidated subsidiaries is recorded based on the actual bad debt ratio, and specific allowance isrecorded based on the amount deemed to the uncollectible considering the collectibility.
As for foreign consolidated subsidiaries, specific credits are based on estimated uncollectableamount.
b) Provision for bonuses
To allow for the payment of bonuses to employees, the company and domestic consolidated
subsidiaries records the standard for estimated amounts of bonuses to be paid.
c) Provision for director’s bonuses
To allow for the payment of bonuses to directors, the company and domestic consolidated
subsidiaries records the standard for estimated amounts of bonuses to be paid.
d) Provision for repairs
To allow our payment of periodic maintenance of production equipments, the company records
the amount of estimated cost to be paid during this fiscal year.
e) Provision for product warranties
To allow for cost of after-sales service, the company records the actual cost of the past to be paid.
(4) Foreign currency transactions
All monetary assets and liabilities denominated in foreign currencies are translated into Japanese yenat the exchange rates prevailing at the balance sheet date. Resulting gains and losses are included in
net profit or loss for the period. All assets and liabilities of foreign subsidiaries and affiliates aretranslated into Japanese yen at the exchange rates prevailing at the balance sheet date. Revenues andexpenses for the year are translated into Japanese yen at the average exchange rate during the year andtranslation adjustments are included in “Foreign currency translation adjustments of “Net assets.”(5) Main hedge accounting methodsa) Hedge accounting methods
The company accounts for hedging activities under deferral hedge accounting. Furiate-shori(accounting method in which the current and forward rate difference is allocated by period length
for the calculation at the accounting period) is applied to forward foreign exchange contracts which
conform to the requirements of such hedge accounting.
b) Hedging instruments and targets
1. Hedging instruments
Derivative transaction
Hedged targets
Precious metal products
2. Hedging instruments
Exchange contract
Hedged targets
Monetary assets and liabilities denominated in foreign currencies
3. Hedging instruments
Currency swap
Interest rate swap
Hedged targets
Foreign currency long-term loanc) Hedge policy
To reduce the precious metal market price risk and to improve income and expenditure balance,
the company hedges price fluctuation risk and exchange rate risk based on internal rules.

13(6) Amortization of goodwill
By judging respective case, goodwill is amortized under the straight-line method within a period of 20
years.
(7) Cash and cash equivalents in the consolidated cash flow statements
Cash and cash equivalents are composed of cash on hand, bank deposits able to be withdrawn on
demand and short-term highly liquid investments with a maturity of three months or less at the time ofpurchase and which bear lower risks from fluctuations in value.
(8) Accounting method for consumption taxes
Consumption taxes are accounted for using the net method of reporting.

[Changes in Presentation]“Provision for retirement benefits” under Noncurrent liabilities listed in the fiscal year ended March 31,
2013 has been included in “Net defined benefit liability” in accordance with the application of the“AccountingStandard for Retirement Benefits” (ASBJ Statement No. 26, May 17, 2012) and the “Implementation
Guidance for the Accounting Standard for Retirement Benefits” (ASBJ Guidance No. 25, May 17, 2012).
With regard to the application of the Accounting Standard for Retirement Benefits, in accordance with theprovisions on transitional implementation indicated in Paragraph 37 of the Accounting Standard for
Retirement Benefits, the consolidated financial statements have not been reclassified to reflect these changes
in presentation.

14

[Segment Information]
Information on sales and income (loss), identifiable assets, and other items by reporting segment
For the fiscal year ended March 31, 2013(From April 1, 2012 to March 31, 2013)(Millions of Yen)
Precious metal
recycling business

Environmental
preservationbusiness

80,177

16,191

96,368－－－80,177

16,191

96,368Operating income by business segment

5,368

2,127

7,495

Identifiable asset by business segment

41,632

20,62862,260

1,230

870

2,100

Amortization of goodwill

15

352

368

Investment to equity-method affiliates

82

－

82

Increase of property, plant andequipment and intangible assets

770

488

1,258

Total

Net sales
1) Customers
2) Intersegment
Total

Other items
Depreciation and amortization(Note) 1. Total segment income matches operating income recorded on the consolidated statements of income.
2. Increase in depreciation, property and equipment, and intangible assets includes long-term prepaid
expenses and amortization of that related to these expenses.
For the fiscal year ended March 31, 2014(From April 1, 2013 to March 31, 2014)(Millions of Yen)
Precious metal
recycling business

Environmental
preservationbusiness

77,212

17,041

94,254－－－

77,212

17,041

94,254

Operating income by business segment

7,436

2,193

9,629

Identifiable asset by business segment

41,86824,251

66,119

1,063

779

1,842

Amortization of goodwill

15

371

387

Investment to equity-method affiliates

103

－

103

Increase in property, plant andequipment and intangible assets

493

614

1,108

Total

Net sales
1) Customers
2) Intersegment
Total

Other items
Depreciation and amortization(Note) 1. Total segment income matches operating income recorded on the consolidated statements of income.
2. Increase in depreciation, property and equipment, and intangible assets includes long-term prepaid
expenses and amortization of that related to these expenses.

15[Per Share Information]
Year ended March 31, 2013

Year ended March 31,2014

Net assets per share (Yen)

1,288.56

1,426.55

Net income per share (Yen)139.24

183.43Not given as the company has Not given as the company has
Diluted net income per share (Yen)nopotential

stockswith nodilution effectpotential

stockswithdilution effectNote: The following shows the basis of calculating net income per share

Year ended March 31, 2013

Year ended March 31,2014

Net income per share
Net income for the fiscal year (Millions of yen)
Monetary value not related to common
stockholders (Millions of yen)
Net income related to common stock(Millions of yen)

4,518

5,969

－

－

4,518

5,969

32,44832,540

Number of weighted average common shares
outstanding during the fiscal year
(Thousands of shares)
Overview of potential stock not included in
calculation of diluted net income

2010 Stock Option（common 2010 Stock Option（common
stock 202,000 shares）
stock 202,000 shares）

per share because the stock have no dilution
effectWe regard the stock, owned by “Asahi employee stock ownership trustee” (238,700 shares for the previous fiscal
year end and 153,900 shares for this fiscal year end) as treasury stock. Therefore, we deduct the number of thestock in order to calculate “Number of weighted average common shares” of this and previous fiscal year.

[Significant Subsequent Events]
Not applicable165. Others(1)Changes of Directors①Change of the representative
Planned retirement of directors: Tsutomu Sakurai②Other changes of directors
Candidate for new directors: Kazuo Kawabata③Date of inauguration and retirement
June 17, 2013
* For details, please refer to “Notification of Changes in Representative Directors and Executive Appointment”
made public on May 12, 2014.

(2)Amounts of Production, Orders Received, Sales（Amount: millions of yen）

①Production
Year ended
March 31,2013
AmountYear ended
March 31,2014

Year-on-Year

AmountYear-on-YearGold

46,94080.7%

46,697

99.5%

Silver

14,774

82.1%

5,661

38.3%

Palladium

8,909

94.1%

10,747120.6%

Platinum

6,611

62.1%

7,007

106.0%

Indium

3,899

39.5%

6,720

172.4%

Industrial waste treatment

18,073113.6%

19,369107.2%

Total

99,20881.3%

96,20397.0%(Notes) Amount is provided on the basis of their sales prices.
②Orders received
As we do production according to the amount of the collection, there is no applicable information.
(Amount: millions of yen）

③SalesYear ended
March 31,2013
AmountYear ended
March 31,2014

Year-on-Year

AmountYear-on-YearGold

34,85455.2%

37,480107.5%

Silver14,418

77.6%

6,935

48.1%

Palladium

10,112

75.6%

12,567124.3%

Platinum

7,614

44.9%

8,108

106.5%

Indium

309

3.4%

771

248.8%

Industrial waste treatment

18,073113.6%

19,369107.2%

Other

10,986

78.1%

9,021

82.1%

Total

96,36863.8%

94,25497.8%

17