Securities Code5857

Interim Business Report for FY2012
From April 1, 2012 to September 30, 2012

To Our Shareholders
I would like to express my cordial appreciation for yourcontinuing support and loyal patronage.-----------------------------During the forth interim term (April to September 2012), theJapanese economy remained in a severe condition, against
a backdrop of decelerating global economy triggered by
European sovereign-debt crisis, in addition to the prolonged
Yen’s appreciation. -------------------------------------------------------Under such economic situations, in the precious metal
recycling business, the collection volume of gold, silver,
palladium, platinum and indium was lower than the previous
corresponding period greatly due to domestic production
shrinkage in the industry of electronics and Flat Panel Display.
Precious metal prices were higher for gold and lower for silver,
platinum, and palladium compared to the previous
corresponding period. In part of our transactions, net sales
amount declined compared to the previous period due toswitching contracts to the “fee-based processing ” model. ------ ------ ------ ------ ------ ---------------------------------------

Consequently, our operating results in the interim term were as
follows: consolidated net sales 49,324 million yen, operating
profit 2,896 million yen, ordinary income 2,955 million yen, andnet income 1,555 million yen.--------------------------------------------The company maintained an interim dividend of 30 yen pershare, along our stable dividend policy.-------------------------------We would appreciate your continued understanding andsupport for the business activities of our group companies.------In the environmental protection business, despite of theinfluence of the slow domestic production activities, thetrading volumes of waste oil, sludge and medical-related
wastes were higher than those of the previous corresponding
period. ------------------------------------------------------------------------CEO＆COO

We have actively pursued our strategic focus outlined in the
6th mid-term business plan; ”Business expansion in Asia”,“ B r o a d en i n g b us i n es s d o m a i n t hr o u gh M & A ” , an d“Streamlining of group-wide management”. --------------------TOPICS
Incorporation of INTER CENTRAL, INC. into ourGroup

Selected “ESG Theme Issues” by Tokyo Stock
Exchange (TSE) Group, Inc.
“ESG” stands for Environmental, Social, and Governance. It is
expected that appropriate evaluation for companies’ attitudes toward
ESG issues and its incorporation into investment decision will contributeto solving and improving environmental problems and social issues, aswell as developing a sound capital market. Companies, which giveconsideration to ESG issues, are regarded to hold promise ofsustainable growth, which shall lead to improved investment
performance. ----------------------------------------------------------------------------

Radiant air-conditioning system
In July 2012, INTER CENTRAL, INC. became a wholly owned
subsidiary of our company’s consolidated subsidiary, Japan Waste
Corporation. INTER CENTRAL engages in manufacturing and sellingof heating equipments and also designs and constructs radiant airconditioning systems. INTER CENTRAL provides a variety of energy
efficient products such as electric storage heating equipments usingnight power and radiant cooling/heating equipments, which have been
adopted by schools, hospitals, cultural institutions, commercial
facilities, and general homes. --------------------------------------------------The acquisition of INTER CENTRAL is part of our strategy to broaden
our business domain. We will continue to pursue synergistic effects
among the Asahi Holdings group companies, and enhance the growthpotential and profitability of the environmental preservation businesssegment. -----------------------------------------------------------------------------ESG issues selection was conducted as part of Japan Economy Support
Project, ”+YOU”, targeting over 1,600 listing companies at TSE 1st
section. Asahi Holdings, Inc. were evaluated and selected as one of 15
companies. -------------------------------------------------------------------------- ---- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Asahi Holdings will contribute to form a sustainable society throughgrowth of our business activities reflecting on our Credo, “To preserve
the environment and protect earth’s natural resources, entrusted to us
by future generations, by using unique technology and expertise”. -------Re ference: - - - - - - - - - - - - - - - - - - - -- - -------------------------------Tokyo Stock Exchange Group -----------------------------------------------”Looking at Companies Through an ESG Lens”--------------------------------http://www.tse.or.jp/english/news/31/b7gje60000013hep-att/ESG(E).pdf

Consolidated Financial Highlights
Net Sales (Millions of Yen)

Interim

160,000

Full-term

Ordinary Income (Millions of Yen)

Interim12,000151,094

Full-term

11,13010,50810,000120,000

110,504

7,922

8,000

82,60352,48640,000

5,475

6,000

72,74880,00049,324

6,034

4,000

2,955

35,856

2,691
2,000
00
2010/3

2011/3

2012/3Net Income (Millions of Yen)

2010/3

2012/9Interim

Full-term

7,000

2011/3Net Income per Share (Yen)
210

6,144

5,926

6,000
5,000

190.46

180
150

4,377

4,000
3,202
3,000

2012/9Interim

Full-term

183.20135.90120

3,488

2012/399.32

107.93

90

2,000

1,566

60

1,555

1,000

47.97

48.63

30

0
2010/3

2011/3

2012/30

2012/92010/3

Total Assets/Net Assets/Equity Ratio (Millions of Yen, %)Net Assets

Total Assets

60,00059,14340,0001,200

56,852

1,000

30,00059.6%
29,89738,902

39,34560%

2012/3

2012/91,062.30
927.97800
600

20,000400

10,000200

50%

02010/3

1,210.15

1,400

50,00058.0%
34,341

1,198.77

70%

66.6%
58,315

2012/9

1,600

69.1%
50,1392012/3

Net Assets per Share (Yen)

Equity Ratio

80,00070,0002011/3

2011/3

2012/3

2012/90
2010/3

2011/3

Consolidated Financial Statements
Balance Sheet(Millions of Yen)

As of March 31,
2012

ASSETS
Current assets

As of September 30,
2012

29,301
3,527

27,072
3,269

9,480

11,329Merchandise and finished goods

2,123

1,917

Work in process
Raw materials and supplies

10,727
618

7,887
836

Other
Allowance for doubtful accounts
Noncurrent assets
Property, plant and equipment
Buildings and structures, net
Land

2,833
(11)
29,01425,763
9,495
12,9101,841(9)29,77925,431
9,429
12,999Cash and deposits
Notes and accounts receivabletrade

Other, net
Intangible assets
Goodwill
Other
Investments and other assets

Total assets
Notes: Amounts above are rounded down to unit of display.

3,356
2,490
1,907
519
760

58,315(Millions of Yen)

3,001
3,325
2,573
751
1,022

As of March 31,
2012

LIABILITIESCurrent liabilities
Notes and accounts payable-trade

As of September 30,
2012

16,1303,253

14,737
2,635

4,545

6,495

1,000

1,011

3,267
659
30
100
3,306
3,282
1,500
65

962
622
6
41
32
2,931
2,769
1,000
99-

19

1,716
19,413

1,650
17,507

Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Accumulated other comprehensive
incomeValuation difference on availablefor-sale securities
Deferred gains or losses onhedgesForeign currency translation
adjustment
Subscription rights to shares
Total net assets

39,0364,480
6,087
34,124(5,656)

39,6964,480
6,086
34,708(5,579)

(201)

(428)

18

13(111)

(356)

(108)

(85)

67

77

38,902

Total liabilities and net assets

58,31539,34556,852

Short-term loans payable
Current portion of long-term loanspayable
Income taxes payable
Provision for bonuses
Provison for director's bonuses
Provision for repairs
Provision for product warranties
Other
Noncurrent liabilities
Long-term loans payable
Provision for retirement benefits
Provision for directors' retirement
benefits
Other
Total liabilities
NET ASSETS

Notes: Amounts above are rounded down to unit of display.

Consolidated Financial Statements
Statements of Income(Mililons of Yen)

Statements of Cash FlowsThe six months
The six months
ended September 30, ended September 30,
2011
2012

Net sales
Cost of sales
Gross profit

72,74849,32464,35643,818

8,392

5,506

Selling, general andadministrative expenses

2,417

2,610

Operating income

5,974

2,896

Non-operating income

85

84

Non-operating expenses

2624

6,034

2,955

Extraordinary income

159

4

Extraordinary loss

78

338

6,115

2,621

2,484

799

142

266

Income before minority interests

3,488

1,555

Net income

3,488

1,555

Ordinary income

Income before income taxes andminority interests
Income taxes-current
Income taxes-deferred

Notes: Amounts above are rounded down to unit of display.

(Mililons of Yen)

The six months
The six months
ended September 30, ended September 30,
2011
2012

Net cash provided by (used in)operating activities(2,457)

1,007

Net cash provided by (used in)investing activities(1,374)(1,551)

Net cash provided by (used in)financing activities

4,522

235

Effect of exchange rate change
on cash and cash equivalents

2649

Net increase in cash andcash equivalents

698

(258)

Cash and cash equivalents at
beginning of period

2,250

3,527

Cash and cash equivalents at
the end of period

2,948

3,269

Notes: Amounts above are rounded down to unit of display.

Stock Information/Corporate Profile■ Total number of authorized shares 129,000,000 shares■ Total number of shares outstanding 36,254,344 shares
100 shares■ Number of shares per trading unit
9,925
■ Number of shareholders■ Principal shareholders
Name ofShareholder

Number ofShares Held(thousands ofshares)

Ratio ofShareHolding(%)

The Master Trust Bank of Japan,Ltd. (Trust account)

1,670

4.61TERA ENTERPRISES Co., Ltd.

1,350

3.72

Japan Trustee Services Bank, Ltd.
(Trust account)

1,228

3.39

1,143

3.15

1,082

2.99

K&M Co., Ltd.

900

2.48

Masamichi Terayama

802

2.21

Asahi Employee Stock Ownership
Plan658

1.82

Terra Corporation., Ltd.

600

1.65

MS Planning Co., Ltd.

570

1.57

State Street Bank and Trust
Company 505103
Mitsuharu Terayama※Total Number of Treasury Shares (3.517million shares) is excluding from the above.

As of September 30, 2012

■ Corporate Profile
Corporate NameFoundedCapital
Number of EmployeesBusiness Lines

Asahi Holdings, Inc.
April 2009（current : Asahi Pretec Corp. establishedin 1952）¥4,480 million
1,333 (consolidated)
Recycling and sales of precious & rare
metalsIndustrial waste treatment

Subsidiaries

Asahi Pretec Corp.
Japan Waste Corporation
Nihon Chemitec Co., Ltd.
Sansho Co., Ltd.
Taiyo Chemical Co., Ltd.
Iyotec Co., Ltd.
Fuji Rozai Co., Ltd.
JW Glass Recycling Co., Ltd.
Ecomax Incorporated
Usuda Manufacturing Co., Ltd.
Kyodo Chemical Co., Ltd.
INTER CENTRAL, INC.

Foreign Subsidiaries

ASAHI G&S SDN. BHD. (Malaysia)
Shanghai Asahi Pretec Co., Ltd. (China)
Asahi Pretec Korea Co., Ltd. (Korea)■ Board of Directors and Corporate Auditors
Mitsuharu Terayama
CEOTsutomu Sakurai
President
Yoshikatsu Takeuchi
Director
Tomoya Higashiura
Director
Masaki Hirano
Director
Director
Shoji Morii *Standing Statutory Auditor Yukio Tanabe
Statutory Auditor
Kazuhiko Tokumine *Junzo Kojima *Statutory Auditor*Outside cooperate executives pursuant to Article 2 of the Companies Act.

Head Offices■ Head Offices

KOBE

Nissei Sannomiya Bldg., 4-4-17 Kano-cho, Chuo-ku, Kobe, 650-0001, Japan
Tel. +81-78-333-5633 (Pilot number) Facsimile +81-78-333-5681

TOKYO

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