Consolidated Financial Results for the Second Quarter Ended September 30, 2015
Asahi Holdings, Inc.
October 28, 2015
Stock code:

5857

Shares listed:Tokyo Stock Exchange (First Section)

U R L:

http://www.asahiholdings.com

Representative

Mitsuharu Terayama, President and CEO
Katsuya Murashima, Corporate Planning & Communications

For further information please contact:

Department Manager(Phone) +81-3-6270-1833

Filing date of Quarterly Report:

November 12, 2015

Scheduled date of start of dividend payment:
November 25, 2015
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 six months ended September 30, 2015 (From April 1, 2015 to September 30, 2015)(1) Results of operations (cumulative)(Percentage changes relative to previous corresponding period)
Net sales
The six months ended
September 30, 2015
September 30, 2014
(Note) Comprehensive income

Millions of yen％

Operating income

Ordinary income

Millions of yen

Millions of yen％

61,646 19.4
4,820
3.1
51,632
7.8
4,674 (11.1)
The six months ended September 30, 2015
The six months ended September 30, 2014
Net income per share

The six months ended
September 30, 2015
September 30, 2014

Profit attributable toowners of parent％

Millions of yen％

4,698 ( 0.3)
2,752 (5.4)
4,713 (12.6)
2,909 (11.2)
2,549 million yen (20.3％)
3,197 million yen (10.5%)

Diluted net income per share

Yen
83.93
89.25

Yen
－
－

(2) Financial Position
Shareholders’ equity
ratio
As of
Millions of yen
Millions of yen％
September 30, 2015
105,659
52,648
49.4
March 31, 2015
104,877
50,95848.2(Reference) Shareholders’ equity
As of September 30, 2015 52,233 million yen
As of March 31, 2015
50,504 million yen
Total assets

Net assets

2. Dividend payments

Year ended March 31, 2015
Year ending March 31, 2016
Year ending March 31, 2016
(Forecast)

Dividends per share
Second quarter
Third quarter
Yen
Yen
30.00
－
30.00

First quarter
Yen
－
－

－

Year-end
Yen
30.00

Annual
Yen
60.00

30.00

60.00

(Note) Revisions in dividend forecast in the current quarter : No
3. Forecast (From April 1, 2015 to March 31, 2016)(Percentage changes relative to previous corresponding period)
Profit attributable to
Net income
Operating income
Ordinary income
owners of parent
per share

Net sales
Millions of Yen

Year ending March 31, 2016

129,000％

15.8

Millions of Yen％

Millions of Yen％

11,0005.0

10,8002.3(Note) Revisions in forecast in the current quarter : No

Millions of Yen ％

6,500

12.6

Yen

198.56

*Notes(1) Changes in important subsidiaries during the current quarter: No(2) Application of special accounting methods for quarterly consolidated financial statements: No(3) Changes in accounting policies, accounting estimates and restatement(i) Changes in accounting policies resulting from the revision of the accounting standards and otherregulations: Yes(ii) Changes other than (i) above: Yes(iii) Changes in accounting estimates: Yes(iv) Restatement: No
For details, please refer to “(3) Changes in Accounting Policies, accounting estimates and restatement”
under “2. Notes Regarding Summary Information” on page 3.
(4) Number of issued shares (common stock)(i) Number of issued shares at the quarter end (including treasury shares)
As of September 30, 2015
36,254,344 shares
As of March 31, 2015
36,254,344 shares(ii) Number of treasury shares at the quarter end
As of September 30, 2015
3,432,457 shares
As of March 31, 2015
3,519,057 shares(iii) Averaged number of shares during the period (quarterly cumulative period)
Six months ended September 30, 2015
32,795,944 shares
Six months ended September 30, 2014
32,603,351 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(Remarks on the description on future forecast)
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 3 “1. Qualitative Information (3)Consolidated Performance Forecasts”.

【Appendix】

Table of contents of the appendix

1. Qualitative Information .......................................................................................................................... 2(1) Consolidated Business Performance....................................................................................................... 2(2) Consolidated Financial Position ............................................................................................................. 2(3) Consolidated Performance Forecasts...................................................................................................... 3
2. Notes Regarding Summary Information ................................................................................................ 3(1) Changes in important subsidiaries during the current quarter ...................................................... 3(2) Application of special accounting methods for quarterly consolidated financial statements ........ 3(3) Changes in accounting policies, accounting estimates and restatement ........................................ 3
3. Consolidated Financial Statements ........................................................................................................ 4(1) Consolidated Balance Sheets ............................................................................................................. 4(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income.... 6
Consolidated Statements of Income for the six months ended September 30, 2015 .......................................... 6
Consolidated Statements of Comprehensive Income for the six months ended September 30, 2015 ................ 6(3) Consolidated Statements of Cash Flows ........................................................................................... 7(4) Notes on Consolidated Financial Statements ................................................................................... 8(Notes on Assumptions for Going Concern) ........................................................................................................ 8(Notes in case of Significant Changes to Shareholders’ Equity) ........................................................................ 8(Segment Information, etc.) ................................................................................................................................. 8

11. Qualitative Information(1) Consolidated Business Performance
In the Japanese economy during the first half of the current fiscal year (April 1, 2015 through September
30, 2015), improvements in corporate income and the employment environment were seen, but recovery of
production activity and personal consumption still lacked vigor. With concern over downside risk in emerging
nations and other economies overseas and slow recovery of consumer confidence, the future remains opaque.
Under these economic conditions, the Group's results in each business segment were as follows.
Precious metal business
Volume of collection in the precious metal recycling business was as follows. In the electronics sector,
contraction of the Japanese market continues, but by expanding market share in the E-scrap and precision
cleaning businesses, the Group increased the volume of collection of gold from that of the same period a year
earlier. In the dental sector, with the volume of precious metals used declining, the volume of collection ofgold and palladium decreased compared to the same period last year. In the jewelry sector, increasingtransactions with customers in the jewelry purchasing business led to a higher year-on-year volume ofcollection of gold and platinum. In the automotive catalyst sector, even with a decrease in the number ofscrapped vehicles, work on new customer development led to a volume of collection of palladium about thesame as that of the same period a year earlier.
The average sale price of gold and palladium was higher than that of the same period a year before, and theaverage sale price of silver and platinum was lower compared with the same period last year.
In the gold and silver refining business in North America, amidst stagnant precious metals prices and aslowdown in natural resource businesses, both processing volume and unit price declined for commissioned
refining business. Under these circumstances, we are working towards the future by strengthening Asahi
Refining's business base through initiatives such as technology investment and knowledge exchange.
Environmental preservation business
Reflecting the state of production activity in domestic businesses, the volume of collection of industrial
waste continued declining. Under these circumstances, by working to develop new customers and new spot
contracts and securing government-related volume of collection, performance for the segment as a whole wassolid.
Life & health businessIn the healthcare equipment sector, personal consumption still lacks vigor. Recovery of sales of products
such as massage chairs has been slow, but we are working on upgrading our product lineup through theintroduction of smaller merchandise and on cost reduction.
In construction-related markets, although orders are solid, construction-related costs continued to risebecause of a skilled labor shortage and delays in construction completion. This situation impacted the Group's
air conditioning system installation and commercial heater sectors. The business environment remains
difficult, with construction postponements and decreased margins. Under these circumstances, we areworking on expanding sales of heaters including new products and on cost reduction for such as SG&A.
As a result of the above, sales during the second cumulative quarter of the current fiscal year were 61,646
million yen, a year-on-year increase of 10,013 million yen (19.4 percent). Operating income was 4,820 million
yen, an increase of 146 million yen (3.1 percent) year-on-year. Ordinary income was 4,698 million yen, a
year-on-year a decrease of 15 million yen (0.3 percent). Profit attributable to owners of parent for the period
was therefore 2,752 million yen, a decrease of 157 million yen (5.4 percent) year-on-year. By segment, sales in
the precious metal business were 43,124 million yen, a year-on-year increase of 5,974 million yen (16.1
percent). In the environmental preservation business, sales were 7,277 million yen, and decrease of 59 million
yen (0.8 percent) year-on-year. Sales in the life & health business were 11,244 million yen, up 4,099 million
yen (57.4 percent) year-on-year.

(2) Consolidated Financial Position
As of September 30, 2015, total assets amounted to 105,659 million yen, up 781 million yen from theprevious fiscal year end. This was due mainly to the increase of 3,010 million yen in cash and deposits.
Total liabilities amounted to 53,011 million yen, down 908 million yen from the previous fiscal year end.
This was due mainly to the decrease of 453 million yen in notes and accounts payable-trade.
Net assets totaled 52,648 million yen, up 1,690 million yen from the previous fiscal year end. This was due
mainly to the increase in retained earnings resulting from the recording of 2,752 million yen in profit
attributable to owners of parent.
As a result, the shareholders’ equity ratio changed to 49.4%, from 48.2% at the end of the previous fiscal
year.
Net cash provided in operating activities amounted to 4,514 million yen due mainly to 4,516 million yen ofincome before income taxes and minority interests, 1,012 million yen of depreciation and amortization, 1,415
million yen of decrease in inventories, 1,247 million yen of decrease in notes and accounts receivable-trade,and 3,647 million yen of income taxes paid.
Net cash used in investing activities amounted to 717 million yen due mainly to 650 million yen of purchaseof property, plant and equipment.
Net cash used in financial activities amounted to 871 million yen due mainly to 981 million yen of cash
dividends paid.
As a result, cash and cash equivalents as of September 30, 2015, increased 3,020 million yen from March 31,

2

2015, to 13,861 million yen.

(3) Consolidated Performance Forecasts
Consolidated performance forecast for the fiscal year have not changed from the forecast announced on May
11, 2015.

2. Notes Regarding Summary Information(1) Changes in important subsidiaries during the current quarter
Not applicable(2) Application of special accounting methods for quarterly consolidated financial statements
Not applicable(3) Changes in accounting policies, accounting estimates and restatement
Changes in accounting policies(Application of “Accounting Standard for Business Combinations,” etc.)
The Company has applied the “Accounting Standard for Business Combinations” (ASBJ Statement No.
21, September 13, 2013), “ Accounting Standard for Consolidated Financial Statements ” (ASBJ
Statement No. 22, September 13, 2013), “ Accounting Standard for Business Divestitures ” (ASBJ
Statement No. 7, September 13, 2013), etc. effective from the first quarter under review. As a result, themethod of recording the amount of difference caused by changes in the Company’s ownership interests in
subsidiaries in the case of subsidiaries under ongoing control of the Company was changed to one in which
it is recorded as capital surplus, and the method of recording acquisition-related costs was changed to one
in which they are recognized as expenses for the fiscal year in which they are incurred. Furthermore, forbusiness combinations carried out on or after the beginning of the first quarter under review, theaccounting method was changed to one in which the reviewed acquisition cost allocation resulting from thefinalization of the tentative accounting treatment is reflected in the quarterly consolidated financial
statements for the quarterly period in which the business combination occurs.
Additionally the presentation method of net income was amended and the reference to “Minority
interests” was changed to “Non-controlling interests”. To reflect these changes in presentation, thequarterly consolidated financial statements and consolidated financial statements in the previous fiscal
year have been reclassified.
Application of the Accounting Standard for Business Combinations, etc. is in line with the transitional
measures provided in Paragraph 58-2 (4) of the Accounting Standard for Business Combinations,Paragraph 44-5 (4) of the Accounting Standard for Consolidated Financial Statements and Paragraph 57-4
(4) of the Accounting Standard for Business Divestitures. Accordingly, these changes are effective from the
beginning of the first quarter under review.
Those changes had no impact on operating income, ordinary income and income before income taxes forthe second quarter under review. Also those changes had no impact on capital surplus for the end of thesecond quarter period.
(Change in the depreciation method of property, plant and equipment)
The Company and its domestic consolidated subsidiaries had formerly depreciated property, plant andequipment other than leased assets using the declining-balance method (with the exception of buildings
acquired on or after April 1, 1998, which are depreciated using the straight-line method). However,starting from the fiscal year ending March 31, 2016, the Company and its domestic consolidated
subsidiaries have changed the depreciation method to the straight-line method.
This change in the depreciation method is due to the determination that depreciation using thestraight-line method would better reflect the actual condition of usage of property, plant and equipment ina nod to the result of surveys on the actual status of the usage of property, plant and equipment and futurebusiness deployment which is planned in the “Seventh Medium-Term Management Plan”.
As a result, operating income, ordinary income and income before income taxes increased by 97 million
yen, respectively, as compared with the figures calculated using the previous method.

33. Consolidated Financial Statements(1) Consolidated Balance Sheets
As ofMarch 31,
2015

As of
September 30,
2015

Millions of yen

Millions of yen

As ofSeptember 30,
2015
Thousands of
U.S. dollars

ASSETS
Current assets
Cash and deposits

11,046

14,057

117,185

Notes and accounts receivable - trade

15,146

13,765

114,755

Merchandise and finished goods

4,855

3,740

31,179Work in process

9,141

8,949

74,601

Raw materials and supplies

1,633

1,533

12,784

Other

6,773

8,551

71,287

(40)

(35)

(293)

48,55650,562

421,498

Buildings and structures, net

12,298

11,851

98,795

Land

14,56814,504

120,911

Other, net

5,467

5,374

44,802

Total property, plant and equipment

32,33431,730264,508

Goodwill

21,737

21,199176,718

Other

906

934

7,791

Total intangible assets

22,643

22,133

184,510Investments and other assets

1,343

1,232

10,271

Total non-current assets

56,32155,096459,289

Total assets

104,877

105,659

880,788

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

Intangible assets

U.S. dollar amounts represent translations using the approximate exchange rate on September 30, 2015 ofYen119.96=US$1, and are included solely for the convenience of readers.

4As ofMarch 31,
2015

As of
September 30,
2015

Millions of yen

Millions of yen

As ofSeptember 30,
2015
Thousands of
U.S. dollars

LIABILITIESCurrent liabilities
Notes and accounts payable - trade

6,161

5,707

47,581

Short-term loans payable

26,171

5,968

49,756270

5,270

43,931

Income taxes payable

2,111

1,907

15,903

Provision for bonuses

747

700

5,836

Provision for directors' bonuses

36

－

－

Provision for repairs

106

93

780

Current portion of long-term loans payable

Provision for product warranties

85

87

730

Provision for sales rebates

371

643

5,368

Provision for sales returns

13

14

123

Other

9,526

8,412

70,125

Total current liabilities

45,60328,806240,134

Long-term loans payable

6,550

21,719181,057

Net defined benefit liability

126

137

1,148

Other

1,639

2,347

19,567

Total non-current liabilities

8,316

24,204

201,772

Total liabilities

53,91953,011

441,906

Capital stock

4,480

4,480

37,353

Capital surplus

6,038

6,112

50,958Retained earnings

44,45946,229385,378

Treasury stock(5,159)(5,032)(41,954)

Total shareholders' equity

49,81951,790431,735

Valuation difference on available-for-sale securities

33

49

415

Deferred gains or losses on hedges

313

141

1,181

Foreign currency translation adjustment

338

251

2,094

Total accumulated other comprehensive income

685

442

3,690

Subscription rights to shares

77

－

－

Non-controlling interests

375

414

3,457

50,95852,648438,882

104,877

105,659

880,788

Non-current liabilities

NET ASSETS
Shareholders' equity

Accumulated other comprehensive income

Total net assets

TOTAL LIABILITIES AND NET ASSETS

U.S. dollar amounts represent translations using the approximate exchange rate on September 30, 2015 ofYen119.96=US$1, and are included solely for the convenience of readers.

5(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income for the six months ended September 30, 2015
The six months
ended September 30,
2014

The six months
ended September 30,
2015

The six months
ended September 30,
2015
Thousands of
U.S. dollars

Millions of yen

Millions of yen

Net sales

51,632

61,646

513,893

Cost of sales

41,81048,346

403,025

Gross profit

9,822

13,299110,868

Selling, general and administrative expenses

5,148

8,479

70,682

Operating income

4,674

4,820

40,186

Non-operating income

75

40

339

Non-operating expenses

36

163

1,360

Ordinary income

4,713

4,698

Extraordinary income

14

57

39,165482

Extraordinary loss

27

239

1,999

Income before income taxes

4,701

4,516

37,647

Income taxes-current

1,641

1,774

14,792

Income taxes-deferred

118

(47)

(398)

Total income taxes

1,759

1,726

14,394

Profit

2,941

2,789

23,254

31

36

308

2,909

2,752

22,946

Profit attributable to non-controlling
Profit attributable to owners of parent

Consolidated Statements of Comprehensive Income for the six months ended September 30, 2015
The six months
ended September 30,
2014

The six months
ended September 30,
2015

Millions of yen

Millions of yen

ProfitThe six months
ended September 30,
2015
Thousands of
U.S. dollars

2,941

2,789

23,2544

16

139

Deferred gains or losses on hedges

295

(171)

(1,432)Foreign currency translation adjustment

(29)

(85)

(710)

Share of other comprehensive income of associates
accounted for using equity method

(14)

－

－

Total other comprehensive income

256

(240)

(2,003)

3,197

2,549

21,251

Comprehensive income attributable to owners of parent

3,168

2,509

20,923Comprehensive income attributable to non-controlling interests

29

39

327

Other comprehensive income
Valuation difference on available-for-sale securities

Comprehensive income

U.S. dollar amounts represent translations using the approximate exchange rate on September 30, 2015 ofYen119.96=US$1, and are included solely for the convenience of readers.

6(3) Consolidated Statements of Cash FlowsNet 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 net defined benefit liability
Interest and dividend income
Interest expenses
Loss (gain) on sales and retirement of non-current 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
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 exercise of stock options
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

The six
months ended
September 30,
2014
Millions of yen

The six
months ended
September 30,
2015
Millions of yen

The six
months ended
September 30,
2015
Thousands of
U.S. dollars

4,701
842
12
281
(6)
(16)
25
10
(592)
320
547
383
358
6,866
19
(26)
(4,039)
1,439
4,260

4,516
1,012
230
825
11
(18)
72
(2)
1,247
1,415
(441)
(1,729)
(545)
6,594
22
(77)
(3,647)
1,623
4,514

37,647
8,441
1,924
6,883
92
(156)
605
(22)
10,40011,799(3,678)(14,419)(4,547)54,969189(649)(30,409)13,537
37,637

(0)
82
93
(886)
36
(39)
(7,163)235(7,642)

－
9
50
(650)
45
(167)
－
(5)
(717)

－
82
422
(5,420)376(1,398)－(42)(5,980)2,500－(2,167)
(21)
(0)
70
－
(982)
(601)
(8)
(3,991)
9,470
5,478

(20,204)
20,304
(135)
(22)
(0)
－
167
(981)
(871)
94
3,020
10,841
13,861(168,428)
169,261(1,125)
(187)
(4)
－
1,400
(8,186)(7,268)787
25,17590,373
115,549

U.S. dollar amounts represent translations using the approximate exchange rate on September 30, 2015
Yen119.96=US$1, and are included solely for the convenience of readers.

7(4) Notes on Consolidated Financial Statements(Notes on Assumptions for Going Concern)
Not applicable(Notes in case of Significant Changes to Shareholders’ Equity)
Not applicable(Segment Information, etc.)[Segment information]
Ⅰ For the six months ended September 30, 2014(From April 1, 2014 to September 30, 2014)
1. Information on sales and income (loss) by reporting segment(Millions of Yen)
Preciousmetalbusiness

Environmental
preservation businessLife & healthbusiness

Total

Net sales
2) Intersegment

1) Customers

37,150
－

7,336
－

7,145
－

51,632－

Total

37,150

7,336

7,145

51,632

3,609

801

262

4,674

Segment income(Note) Total segment income matches operating income recorded on the consolidated statements of income.
Ⅱ For the six months ended September 30, 2015(From April 1, 2015 to September 30, 2015)
1. Information on sales and income (loss) by reporting segment(Millions of Yen)
Preciousmetalbusiness

Environmental
preservation businessLife & healthbusiness

Total

Net sales
1) Customers
2) Intersegment
Total
Segment income

43,124

7,277

11,244

61,646－－－－

43,124

7,277

11,244

61,646

3,859

847

112

4,820

(Note) Total segment income matches operating income recorded on the consolidated statements of income.
2. Changes in reporting segments(Changes in name of reporting segment)
The segment which was previously stated as “Precious metal recycling business” has been changed to“Precious metal business” from April 1, 2015 for more accurate business description. This change in thesegment name does not affect the segment information.
An retroactively adjusted version of ”Segment information” presented in the earnings report for theprevious fiscal year has been published to reflect the change in reporting segments.
3. Impairment losses on non-current assets, goodwill, etc. by reporting segment(Material impairment loss on non-current assets)
Accompanying the restructuring of subsidiarys’ business premises, the book value of certain land andbuildings were reduced to the recoverable value. This loss and demolition costs were posted as impairment
losses under extraordinary losses.
Consequently, impairment losses were recorded in the amounts of 50 million yen in the precious metalbusiness, 95 million yen in the environmental preservation business and 84 million yen in the life andhealth business.

8