Consolidated Financial Results for the Third Quarter Ended December 31, 2010
Asahi Holdings, Inc.
February 1, 2011
Stock code:

5857

Shares listed:Tokyo Stock Exchange (First Section)

U R L:

http://www.asahiholdings.com

Representative

Mitsuharu Terayama, CEO&COO

For further information please contact:

Yukio Tanabe, Director, Corporate Development & Administration Division(Phone) +81-3-6270-1833

Filing date of Quarterly Report:

February 10, 2011

Scheduled date of start of divided payment:−

Supplementary materials for the quarterly financial results: No
Investor conference for the quarterly financial results: No
１．Results of the nine months ended December 31, 2010 (From April 1, 2010 to December 31, 2010)（１）Results of operations (cumulative)(Rounded down to the nearest million yen)
(Percentage changes relative to previous corresponding period)
Net sales
The nine months ended
December 31, 2010
December 31, 2009

Millions of yen％

79,93856,70041.0−

Operating income

Ordinary income

Millions of yen％

Millions of yen

％

60.5
−

7,777
4,893

58.9
−

7,870
4,902

Net income per share
The nine months ended
December 31, 2010
December 31, 2009

Net income
Millions of yen

4,527
2,806

％

61.3
−

Diluted net income per shareYen
140.38
87.11

Yen
−
−

（２）Financial Position

As ofDecember 31, 2010
Mach 31, 2010
(Reference)
Shareholdersʼ equity

Total assets

Net assets

Millions of yen
55,87650,139Millions of yen
32,64729,897

As of December 31, 2010 : 32,628 million yen

Shareholdersʼ equity
ratio
％
58.4
59.6

Net assets per
share
Yen
1,010.53
927.97

As of March 31, 2010 : 29,897 million yen

２．Dividend payments

Year ended March 31, 2010
Year ending March 31, 2011
Year ending March 31, 2011
(Forecast)

Dividends per share
Second quarter Third quarter
Yen
Yen
25.00
−
25.00
−

First quarter
Yen−−

Year-end
Yen
25.00

Annual
Yen
50.00

25.00

50.00

(Note) Revisions to dividend forecast in the current period : No
３．Forecast (From April 1, 2010 to March 31,2011)(Percentage changes relative to previous corresponding period)
Net income
Operating
Ordinary income
Net income
per share
incomeNet sales
Millions of Yen

Year ending March 31, 2011

110,000％

33.2

Millions of Yen

10,400(Note) Revisions to forecast in the current period : Yes

％

31.8

Millions of Yen

10,400％31.3

Millions of Yen ％

6,000

37.1

Yen

186.00４．Other (For details, please see “Other information” on page 3 of “Appendix.”)（１）Changes in important subsidiaries during the current quarter : No
Newly included: −companies (Company name:−) , Removed: −companies (Company name:−)(Note) This refers to changes in designated subsidiaries resulting from changes in the scope of consolidation during thisquarter.
（２）Application of simplified accounting methods and specific accounting methods: Yes(Note) This refers to the application of simplified accounting and to special accounting used in the preparation ofquarterly consolidated financial statements.
（３）Changes in accounting policies, procedures, and presentation methods.
(i) Changes pursuant to revision of accounting policies: Yes(ii) Other changes: No(Note) This refers to changes in matters such as accounting principles, procedures and methods of representation related
to the preparation of quarterly consolidated financial statements, as shown under "Important Changes to Bases for
Preparing Quarterly Consolidated Financial Statements".
（４）Number of issued shares (common stock)(i) Number of issued shares at end of year (including treasury shares)
Nine months ended December 31, 2010:
36,254,344 sharesYear ended March 31, 2010:
36,254,344 shares(ii) Number of treasury shares at end of year
Nine months ended December 31, 2010:
3,965,839 sharesYear ended March 31, 2010:
4,036,267 shares(iii) Averaged number of shares during the period (quarterly cumulative period)
Nine months ended December 31, 2010:
32,249,572 shares
Nine months ended December 31, 2009:
32,215,482 shares*Indication regarding the situation of quarterly review procedures
These financial results are not subject to the quarterly review procedures pursuant to the Financial
Instruments and Exchange Act. As of the disclosure of the financial results, the procedures for reviewing
quarterly 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 Companyʼs
management and certain assumptions judged rational. Accordingly, these might be cases in which actual
results materially differ from forecasts of this report.

【Appendix】

Table of contents of the appendix

1. Qualitative Information Regarding Consolidated Performance for the Current Quarter....................................2(1) Qualitative Information on Consolidated Business Performance........................................................................2(2) Qualitative Information on Consolidated Financial Position ...............................................................................2(3) Qualitative Information on Consolidated Performance Forecasts.......................................................................2
2. Other Information ...............................................................................................................................................................3(1) Outline of changes in important subsidiaries during the current quarter.........................................................3(2) Outline of use of simplified accounting methods and specific accounting procedures .....................................3(3) Outline of changes in accounting policies, procedures, and presentation methods..........................................3
3. Consolidated Financial Statements.................................................................................................................................4(1) Consolidated Balance Sheets ......................................................................................................................................4(2) Consolidated Statements of Income....................................................................................................................... 5(3) Consolidated Statements of Cash Flows...................................................................................................................6(4) Notes on Assumptions for Going Concern ................................................................................................................7(5) Segment Information....................................................................................................................................................7(6) Notes in case significant changes were made to the amount of shareholders’ equity......................................81

1. Qualitative Information Regarding Consolidated Performance for the Current Quarter(1) Qualitative Information on Consolidated Business Performance
During the nine months of the fiscal year under review (nine months ended December 31, 2010), theJapanese economy made a moderate recovery in general. However, the employment and income
situation remained severe, and the business fixed investment was still in a cautious attitude. The
outlook of the economy has continued unpredictable, reflecting concerns about inflation in emerging
economies, etc., though the global economy was expected to return to a recovery path in the late of theperiod.
Under these circumstances, regarding precious metal recycling business of the Company, the volume
and average sales price of collected metals of all kinds were higher than those of the previous
corresponding period, due mainly to the market price of metals kept in high level and the Company’sefforts in acquiring new customers.
Regarding environmental protection business, the volume of sludge, waste oil, waste reagents,
medical-related wastes, etc. handled by the Company remained favorable. In addition, the volume ofrefractory disposal resulted in much higher than the previous corresponding period. The business of
Ecomax Inc., which became a consolidated subsidiary in August 2010, has been growing steadily.
As a result of the business results and management circumstances described above, consolidated net
sales for the period totaled ¥79,938 million. Looked at by segment, sales in the precious metal
recycling business were ¥69,523 million and sales in the environmental protection business were
¥10,415 million. Operating income amounted ¥7,870 million, ordinary income was ¥7,777 million, andnet income totaled ¥4,527 million.
Compared with the previous corresponding period, Net sales increased ¥23,237 million, operating
income increased ¥2,967 million, ordinary income increased¥2,883 million, and net income increased
1,720 million.

(2) Qualitative Information on Consolidated Financial Position
As of December 31, 2010, total assets mounted ¥55,876 million, up ¥5,737 million from the previous
fiscal year end. This was due mainly to an increase of ¥1,930 million in notes and accounts
receivable-trade, an increase of ¥2,172 million in inventories, and an increase of ¥1,525 million intangible fixed assets.
Net assets totaled ¥32,647 million, shareholders’ equity ratio is 58.4%.
(Cash flows status)
Net cash provided by operating activities amounted ¥4,201 million. This was due mainly to income
before income taxes and minority interests amounted ¥7,766 million, increases in notes and accounts
receivable-trade and inventories.
Net cash used in investing activities amounted ¥2,875 million, due mainly to expenditure of¥2,361 million for the acquisition of fixed assets, including expansion of Amagasaki Plant, relocationof Yokohama Office, and construction of a new plant of Asahipretec Korea Co., Ltd.
Net cash used in financing activities amounted ¥281 million, due mainly to a net increase in valueof ¥1,219 million in short and long-term borrowings, expenditure of ¥1,608 million for the payment
of dividends.
As a result of the above, the term-end balance of cash and cash equivalents was ¥2,724 million.

(3) Qualitative Information on Consolidated Performance Forecasts
The Company’s consolidated net sales, operating income, ordinary income and net income for the
full-term of the fiscal year ending March 2011 are expected to exceed those previously forecasted,assisted by metals’ collection volumes of the Company’s turning on a recovery trend in the precious
metal recycling business, prospects that the average unit sales prices of all metals are estimated tocontinue to be higher than initial projections and progress of company-wide activities to reduce costs.
Consequently, the Company has revised the forecasts, as stated below.
There is no change in the forecast for dividend payment per share (term’s end dividend: ¥25 pershare).
Forecast (From April 1, 2010 to March 31,2011)
Net sales

OperatingincomeOrdinary
incomeNet income

Net income
per share

Million of yen

Million of yen

Million of yen

Million of yen

Yen

104,000

10,00010,0005,800

180.00

Revised Forecast (B)110,000

10,40010,4006,000

186.00Change (B-A)+6,000

+400

+400

+200

−

Change (%)

5.8%

4.0%

4.0%

3.4%

−

Previous Forecast (A)(Announced on September 29, 2010)2

2. Other Information(1) Outline of changes in important subsidiaries during the current quarter
Not applicable(2) Outline of use of simplified accounting methods and specific accounting procedures
1) Simplified accounting
Method for calculating income taxes, deferred tax assets and deferred tax liabilities
When computing the amount to be paid as income taxes, taxable addition and subtraction items
and/or tax credits to be included are limited to important items.
Forecasts of future business performance and tax planning used in the previous consolidated fiscal
year are used to assess the recoverability of deferred tax assets if no significant changes are deemed
to have occurred in business or related conditions, or in the occurrence state of temporary differences
since the end of the previous consolidated fiscal year.

(3) Outline of changes in accounting policies, procedures, and presentation methods
1) Application of Accounting Standard for Asset Retirement Obligations"Accounting Standard for Asset Retirement Obligations"(ASBJ Statement No.18, March 31, 2008)
and "Guidance on Accounting Standard for Asset Retirement Obligations"(ASBJ Guidance No.21,
March 31, 2008) have been applied from the first quarter of the year under review.
The influence on the operating income, ordinary income and income before income taxes andminority interests to this revision was negligible.
2) Application of "Accounting Standard for Equity Method of Accounting for Investments" and"Practical Solution of Unification of Accounting Policies Applied to Associates Accounted for Using theEquity Method""Accounting Standard for Equity Method of Accounting for Investments" (ASBJ Statement No.16,
March 10, 2008) and "Practical Solution of Unification of Accounting Policies Applied to Associates
Accounted for Using the Equity Method"(PITF No.24, March 10, 2008) have been applied from thefirst quarter of the year under review.
There was no effect on the income and loss due to this.
3) Application of Accounting Standard for Business Combinations, etc.
The following standards have been applied from the first quarter of the year under review:"Accounting Standard for Business Combinations"(ASBJ Statement No.21, December 26, 2008),"Accounting Standard for Consolidated Financial Statements"(ASBJ Statement No.22, December 26,2008), "Partial Amendments to Accounting Standard for R&D Expenses, etc."(ASBJ Statement No.23,
December 26, 2008), "Accounting Standard for Business Divestitures"(ASBJ Statement No.7,
December 26, 2008), "Accounting Standard for Application of Equity Method"(ASBJ Statement No.16,
announced December 26, 2008), and "Guidance on Accounting Standard for Business Combinations
and Accounting Standard for Business Divestitures"(ASBJ Guidance No.10, December 26, 2008).

33. Consolidated Financial Statements(1) Consolidated Balance Sheets
At December 31,
2010
Millions of yen%

At March 31,
2010
Millions of yen%

At December 31,
2010
Thousands of
U.S.dollars

2,798
5,968
3,637
11,168
560
1,876
(11)
25,998

46.5

2,263
4,037
4,250
8,327
616
2,867
(8)
22,35444.6

34,34073,23844,640137,056
6,875
23,028(136)
319,043

47.7

8,751
12,4403,964
25,15650.2

106,728
154,447
66,261
327,435

4.7
1.1
53.5
100.0

1,571
567
2,139
489
27,78450,139

4.2
1.0
55.4
100.0

25,9086,036
31,944
7,268
366,647
685,690

33.5

2,161
12,449
−
2,304
721
15
124
2,048
19,825

39.6

37,312
123,327
12,271
12,007
4,865
138
905
38,924
229,750

2,750
179
1,577
4,507
23,229

8.1
41.6

−
179
237
416
20,241

0.8
40.4

33,7462,202
19,36355,311
285,060

4,480
6,071
28,359(5,814)33,097

8.0
10.9
50.7
(10.4)
59.2

4,480
6,054
25,444(5,917)30,061

8.9
12.1
50.7
(11.8)
59.9

54,98674,501
348,011(71,347)
406,151

19
(422)
(65)
(468)
18
32,64755,876

0.0
(0.7)
(0.1)
(0.8)
0.0
58.4
100.0

14
(152)
(26)
(164)
−
29,89750,139

0.0
(0.3)
(0.0)
(0.3)
−
59.6
100.0

238
(5,182)(807)(5,751)
230
400,630
685,690ASSETS
Current assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Total noncurrent assets
Total assets

8,697
12,585
5,399
26,682
2,111
491
2,603
592
29,87855,876

LIABILITIESCurrent liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Provision for bonuses
Provision for directors’ bonuses
Provision for repairs
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Provision for retirement benefits
Other
Total noncurrent liabilities
Total liabilities
NET ASSETS
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total valuation and translation adjustments
Subscription rights to shares
TOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS

3,040
10,049
1,000
978
396
11
73
3,171
18,722

U.S. dollar amounts represent translations using the approximate exchange rate on December 31, 2010 of
yen81.49=US$1, and are included solely for the convenience of readers.

4(2) Consolidated Statements of Income
For the nine months ended December 31, 2010 and 20092010
Millions of yen%

2009
Millions of yen%

79,93868,668
11,269
3,399
7,870
51
143
7,777
14
25
7,766
1,542
1,696
3,239
4,527
4,527

100.0
85.9
14.1
4.3
9.8
0.1
0.2
9.7
0.0
0.0
9.7
1.9
2.1
4.0
5.7
5.7

56,70048,657
8,042
3,139
4,902
98
107
4,893
5
67
4,832
902
1,123
2,026
−
2,806

100.0
85.8
14.2
5.6
8.6
0.2
0.2
8.6
0.0
0.1
8.5
1.6
2.0
3.6
−
4.9

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
Net income

2010
Thousands of
U.S.dollars
980,958
842,662
138,296
41,717
96,579627
1,766
95,441
178
313
95,30618,92920,82139,75055,55655,556

U.S. dollar amounts represent translations using the approximate exchange rate on December 31, 2010 of
yen81.49=US$1, and are included solely for the convenience of readers.

5(3) Consolidated Statements of Cash Flows
For the nine months ended December 31, 2010 and 20092010
Millions of yen

2009
Millions of yen

2010
Thousands of
U.S.dollars

7,766
1,477
−
201
−
(0)
(17)
27
10
(1,873)(2,171)953
269(1,203)
5,442
19
(24)
(2,858)
1,621
4,201

4,832
1,597
7
165
(3)
2
(5)
42
53
669
(4,327)
715
(476)
151
3,425
5
(39)
(698)
463
3,156

95,30618,128
−
2,478
−
(0)
(210)
340
135
(22,994)(26,647)
11,707
3,304(14,763)
66,784243(302)(35,075)
19,90251,553

(883)
1,324
27
(2,325)
23
(36)
(933)
−
−
(73)
(2,875)(382)−
27(1,005)
10
(455)
(45)
(1,363)(9)(80)(3,303)(10,838)
16,257341(28,534)290(443)(11,460)−−(897)(35,282)(2,530)
4,000
(250)
(12)
(0)
120
(1,608)
(281)
(30)
1,013
1,711
2,724

2,000
−
(10)
(8)
(0)
−
(1,603)
376
12
241
1,824
2,065

(31,053)
49,086(3,074)
(151)
(8)
1,482
(19,738)(3,457)(373)
12,441
20,99733,437

Net cash provided by (used in) operating activities
Income before income taxes and minority interests

Depreciation and amortization
Impairment loss
Amortization of goodwill
Amortization of negative goodwill
Increase (decrease) in provision for retirement benefits
Interest and dividends income
Interest expenses
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 withdrawal of 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
Payments for transfer of business
Purchase of investments in subsidiaries
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
Cash dividends paid
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

U.S. dollar amounts represent translations using the approximate exchange rate on December 31, 2010 of
yen81.49=US$1, and are included solely for the convenience of readers.

6(4) Notes on Assumptions for Going Concern
Not applicable(5) Segment Information[Business segment information]
For the nine months ended December 31, 2009(From April 1, 2009 to December 31, 2009) (Millions ofYen)
Precious metal
Environmental
Elimination and
Total
Consolidated
recycling businessprotectionbusinessCorporate
Net sales
1) Customers
2) Intersegment

47,695−

9,004−

56,700−−−56,700−Total

47,695

9,004

56,700−56,700

5,770

1,218

6,989

(2,086)

4,902

Operating income(loss)(Note) Business segment has been classified in term of products and services. Main products and services are
as follows;(1) Precious Metal Recycling Business: Collection and recycling scraps containing precious and rare metals, etc.
(2) Environmental Protection Business: Detoxification of various types of industrial waste, etc.
[Geographical segment information]
For the nine months ended December 31, 2009(From April 1, 2009 to December 31, 2009)
It is omitted to mention geographical segment information, because the ratio of net sales in Japanin total net sales are more than 90%.
[Overseas sales]
For the nine months ended December 31, 2009(From April 1, 2009 to December 31, 2009)
It is omitted to mention overseas sales under review, because the ratio of it in consolidated net
sales are less than 10%.
[Segment information]
1. Overview of reporting segment
The Company's reporting segments are composed of those individual business units for which
separate information is available, about which the Board of Directors makes decisions regarding
the allocation of management resources and for which operating performance can be evaluated,allowing them to be evaluated quantitatively.
The Company formulates comprehensive strategies to expand business as a holding company, andaffiliated companies advance their business such as recycling precious and rare metals, appropriate
disposal of various types of industrial waste, and other environmental protection business.
The Company thus comprises product and service segments built around operating divisions, andthe following two are the reporting segments; Precious Metal Recycling Business andEnvironmental Protection Business.
Precious Metal Recycling Business is to collect and recycle scraps containing precious and rare
metals such as gold, silver, palladium, platinum, indium, etc.
Environmental Protection Business is to collect and transport industrial waste, and to perform theintermediate treatment of it.
2. Net sales and income or loss per reporting segment
For the nine months ended December 31, 2010(From April 1, 2010 to December 31, 2010)(Millions of Yen)
Precious metal
Environmental
Total
recycling businessprotectionbusiness(Note)Net sales
1) Customers

69,523

10,41579,938

−

−

−

Total

69,523

10,41579,938Segment income

6,539

1,330

7,870

2) Intersegment(Note) Total segment income matches operating income recorded on the consolidated statements of income.
3. Impairment losses on fixed assets, goodwill, etc. by reporting segment
Not applicable(Additional information)"Accounting Standard for Disclosure of Segment Information"(ASBJ Statement No.17, March27,
2009) and "Guidance on Accounting Standard for Disclosures of Segment Information "(ASBJ
Guidance No.20, March 21, 2008) have been applied from the first quarter of the year.

7(6) Notes in case significant changes were made to the amount of shareholders’ equity
Not applicable8