Consolidated Financial Results for the Fiscal Year Ended March 31, 2020
Asahi Holdings, Inc. [IFRS]
April 30, 2020

Stock code:
Shares listed:

5857
Tokyo Stock Exchange (First Section)

URL:
Representative:

https://www.asahiholdings.com
Tomoya Higashiura, Representative Director and President

For further information please contact:

Kunihiko Chogo, General Manager, Corporate Planning &Communications Department

The Ordinary General Meeting of Shareholders:(Phone) +81-3-6270-1833
June 16, 2020

Filing date of financial statements:
Start of dividend payment:

June 17, 2020
May 27, 2020

Supplementary materials for the financial results:
Investor conference for the financial results:

Yes
No(Rounded down to the nearest million yen)

1. Results of the fiscal year ended March 31, 2020 (From April 1, 2019 to March 31, 2020)(1) Results of operations(Percentage: Changes relative to corresponding previous period)
OperatingincomeRevenue
The fiscal year ended
March 31, 2020
March 31, 2019

Millions of yen

135,563
110,412%

Millions of yen

22.8 20,119－ 13,442

Basic earnings per
share

Profit before
tax%

Millions of yen

49.7 17,650－ 12,351

Diluted earnings
per share

Profitattributable toowners of parent

Profit% Millions of yen

42.9 9,846－
9,000Profit to equity
attributable toowners of parent%

Millions of yen

9.4 9,846(4.8) 9,000

%

Total
comprehensive
incomeMillions of yen

9.4 5,690(4.4) 7,633

Profit before
tax to total
assets%(25.4)(20.3)

Operatingincome to revenue

The fiscal year ended
Yen
Yen
%
%
%
March 31, 2020
250.24248.53
14.4
9.0
14.8
March 31, 2019
228.14227.21
13.6
8.5
12.2
(Reference) Share of profit (loss) of investments accounted for using equity method: Fiscal year ended March 31,
2020 (45) million yen; Fiscal year ended March 31, 2019 – million yen(Note) The Company reclassified the business of Fuji Medical Instruments MFG. Co., Ltd., which was a consolidated
subsidiary of the Company, as discontinued operations. Consequently, revenue, operating income and profit before
tax for the year ended March 31, 2019 indicate the figures for continuing operations that do not include discontinued
operations.
(2) Financial Position

As ofMarch 31, 2020
March 31, 2019

Total assets

Total equity

Equity attributableto owners of parent

Millions of yen
229,958
160,272

Millions of yen
69,17467,804

Millions of yen
69,17467,804Equity attributableto owners of parent
ratio

%
30.1
42.3

Equity per share
attributable toowners of parent

Yen
1,758.00
1,723.16(3) Cash flows

The fiscal year ended
March 31, 2020
March 31, 2019

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Millions of yen(60,318)(20,648)

Millions of yen
1,927(5,629)Millions of yen
65,165
18,261

Cash and cash
equivalents at end of
the fiscal year
Millions of yen
22,90816,297

2. Dividend payments
Dividends per shareFirst
quarterYear ended March 31, 2019Year ended March 31, 2020
Year ending March 31, 2021
(Forecast)Total
dividend
payment(annual)Secondquarter

Third
quarter

Yen

Yen

Yen

Yen

Yen

Millions of yen

－
－

60.00
60.00

－
－

60.00
70.00

120.00130.00

4,778
5,176

－

70.00

－

70.00

140.003. Forecast (From April 1, 2020 to March 31, 2021)

Millions of yen

Operatingincome% Millions of yen

13.1

AnnualDividend
to equity
attributableto owners ofparent(consolidated)

%

52.6
52.0

%

7.2
7.5

52.0

(Percentage: Changes relative to corresponding previous period)

RevenueSix months ending
69,000
September 30, 2020
Year ending March 31, 2021 150,000

Year-end

Payoutratio(consolidated)

6,700

10.6 16,000

Profit beforetax% Millions of yen(16.5)

6,600(20.5) 15,800

Profitattributable toowners of parent% Millions of yen
%

(2.1)

Basic earnings
per share
Yen

4,400

(2.4)

111.82(10.5) 10,600

7.7

269.39(Note) One of the major revenue transactions for the precious metal refining business in North America is a financial
service transaction that produces revenue from advance provision of metal to counterparties, etc. Until the fiscal
year ended March 31, 2020, the revenue from this transaction was recorded as revenue, and the corresponding
interest payment was recorded as finance expenses. However, in order to present the operating income from thistransaction more appropriately, from the fiscal year ending March 31, 2021 the presentation method has beenchanged by recording the corresponding interest payment in cost of sales. As a result of this change in accounting
policy, compared with the previous method used until the fiscal year ended March 31, 2020, operating income isexpected to decrease by 2,100 million yen. There is no impact on profit before tax and profit attributable to owners ofparent.
* Notes(1)

Changes in significant subsidiaries during the current fiscal year: No(2)

Changes in accounting policies and accounting estimates(i) Changes in accounting policies required by IFRS: Yes(ii) Changes other than (i) above: No(iii) Changes in accounting estimates: No(3)

Number of issued shares (common stock)(i)

Number of issued shares at the end of year (including treasury shares)
As of March 31, 2020

39,854,344 shares

As of March 31, 201939,854,344 shares(ii) Number of treasury shares at the end of year
As of March 31, 2020

505,637 shares

As of March 31, 2019505,487 shares(iii) Averaged number of shares during the period
Year ended March 31, 2020

39,348,825 sharesYear ended March 31, 201939,453,473 shares

(Reference) Summary of Nonconsolidated Results
1. Nonconsolidated Results of the Year ended March 31, 2020 (From April 1, 2019 to March 31, 2020)(1) Results of operations(Percentage: Changes relative to corresponding previous period)
Net sales

The fiscal year ended
March 31, 2020
March 31, 2019

The fiscal year ended
March 31, 2020
March 31, 2019

Millions of yen

11,398
8,429

Operating income
%

35.2
6.7

Millions of yen

10,087
7,044

Ordinary income% Millions of yen

43.2
3.4

10,273
6,902

Net income% Millions of yen

48.8
(0.4)

Net income per share

Diluted net income per shareYen
257.25172.98Yen
255.48172.27

10,122
6,824

%

48.3
0.3

(2) Financial Position

As ofMarch 31, 2020
March 31, 2019
(Reference)
Shareholders’ equity

Total assets

Net assets

Millions of yen

Millions of yen

85,83875,394

60,12654,782As of March 31, 2020: 60,126 million yen

Shareholders’ equity ratio
%

70.0
72.7

Net assets per share
Yen

1,528.03
1,392.23

As of March 31, 2019: 54,782 million yen* This report is not subject to audit procedures* Statement regarding the proper use of financial forecasts and other special remarks(Notes on forward looking statements, etc.)
These forecast performance figures are based on the information currently available to the company’s
management and certain assumptions judged rational. Accordingly, there might be cases in which actual resultsmaterially differ from forecasts of this report. Please refer to page 2 “1. Overview of Consolidated Operating
Results (1) Consolidated Business Performance for the Year ended March 31, 2020” for the assumptions used
and other notes.

【Appendix】

Table of contents of the appendix
1. Overview of Consolidated Operating Results...............................................................................................

2(1) Consolidated Business Performance for the Year ended March 31, 2020 ..............................................

2(2) Consolidated Financial Position and Cash Flows for the Year ended March 31, 2020 .........................

3(3) Dividends ...................................................................................................................................................

3(4) Business and other risks ..........................................................................................................................

3

2. Our Group ......................................................................................................................................................

8

3. Basic Concept Regarding Selection of Accounting Standards .....................................................................

10

4. Consolidated Financial Statements ..............................................................................................................

11(1) Consolidated Statements of Financial Position ......................................................................................

11(2) Consolidated Statements of Income .........................................................................................................

13(3) Consolidated Statements of Comprehensive Income ..............................................................................

14(4) Consolidated Statements of Changes in Equity ......................................................................................
(5) Consolidated Statements of Cash Flows..................................................................................................

1517(6) Notes on Assumptions for Going Concern ...............................................................................................

18(7) Notes on Consolidated Financial Statements .........................................................................................

18

1. Reporting entity ...................................................................................................................................

18

2. Basis of preparation ............................................................................................................................

18

3. Changes in accounting policies ...........................................................................................................

18

4. Significant accounting estimates and associated judgements ..........................................................

21

5. Segment information ...........................................................................................................................

22

6. Impairment loss ...................................................................................................................................

24

7. Discontinued operations ......................................................................................................................

25

8. Per share information .........................................................................................................................

26

9. Subsequent events ...............................................................................................................................

26

5. Others .............................................................................................................................................................

27(1) Amounts of Sales .......................................................................................................................................

27

－ 1 －

1. Overview of Consolidated Operating Results(1) Consolidated Business Performance for the Year ended March 31, 2020
① Operating results
During the consolidated accounting period under review, the outlook of the Japanese economy was opaque

as a result of decreased personal spending after the consumption tax hike and slowdowns in the global
economy triggered by the U.S.-China trade dispute, in addition to the spread of the novel coronavirus disease(COVID-19) in Japan and overseas, despite a trend of moderate recovery against the backdrop of
improvements in the employment and income environment. Under these conditions, the group’s results ineach business segment were as follows. During the third quarter consolidated accounting period, the Company
decided to transfer its equity interest in Fuji Medical Instruments MFG. Co., Ltd., a consolidated subsidiaryof the Company. Businesses of Fuji Medical Instruments and its subsidiary that were previously classified
under “Life & Health business” have consequently been reclassified as discontinued operations. In addition,
beginning in the third quarter consolidated accounting period, the Group reduced the number of reporting
segments from three: “Precious Metals business,” “Environmental Preservation business” and “Life & Healthbusiness” to two: “Precious Metals business” and “Environmental Preservation business.”
Precious metals business
Revenue and operating income in precious metal recycling business in Japan, South Korea and Malaysia
increased from the same period in the previous year, thanks to the growing volume of precious metalcollection and rise in precious metal prices. In North America, revenue and operating income in precious
metal refining business expanded from the same period a year before due to an increase in refining
transactions and financial transactions. Meanwhile, in order to further enhance the efficiency andprofitability of precious metal refining in North America, the Company decided to discard the gold and silver
refining facilities of Asahi Refining Florida Inc. and posted an impairment loss (1 billion yen) on its fixed
assets. However, revenue and operating income in Precious Metals business recorded a significant growthover the same period in the preceding year.
Environmental preservation business
Revenue and operating income in Environmental Preservation business posted a year-on-year increase as
the Company worked to develop new projects and strengthened mutual cooperation while capitalizing on thestrengths of the respective group companies.
As a result of the above, operating income, profit before tax, profit, and profit attributable to owners ofparent all achieved historic highs. In terms of the performance for this consolidated fiscal year, revenue was
135,563 million yen, a year-on-year increase of 25,150 million yen (+22.8 percent). Operating income was20,119 million yen, an increase of 6,676 million yen (+49.7 percent) year-on-year. Profit before tax was 17,650
million yen, a year-on-year increase of 5,298 million yen (+42.9 percent). Profit was 9,846 million yen, a yearon-year increase of 845 million yen (+9.4 percent). Profit attributable to owners of parent was 9,846 million
yen, a year-on-year increase of 845 million yen (+9.4 percent). By segment, revenue in the precious metals
business was 113,755 million yen, a year-on-year increase of 25,951 million yen (+29.6 percent). In theenvironmental preservation business, revenue was 20,716 million yen, an increase of 1,308 million yen (+6.7
percent) year-on-year.
② Outlook

The outlook is extremely opaque as it is currently difficult to properly estimate the impact on the Japanese
economy and the global economy as a result of the novel coronavirus disease (COVID-19). In the precious
metals business segment, the amount handled changes depending on the condition of customers’ businessactivities, etc., but the Company’s business areas are diverse and the Company demonstrates the superiorityof having a wide range of customers, which will link to stable performance. Furthermore, the Company
expects the price of precious metals to stay relatively firm. In the environmental preservation businesssegment, the Company expects the amount handled to decrease as its customers’ business activities scale
down.
Business forecast for the next period is as follows: 150,000 million yen in revenue, 16,000 million yen in
operating income, 15,800 million yen in profit before tax and 10,600 million yen in profit attributable to－ 2 －owners of the parent. Operating income will decrease (2.1 billion yen) in the next consolidated accounting
period as a result of “Changes in Accounting Procedure Rules Regarding North American Financial Service
Transactions.”
Due to being in this unprecedented difficult business environment as a result of the impact of COVID-19,
the Company will display the spirit of “Innovation & Challenge” set forth in “The Asahi Way,” the Company’sgroup philosophy, and will strive to further increase corporate value as one group. The above forecast was
decided based on information currently available, and there may be changes due to various factors such as theimpact of COVID-19 on industrial activities in Japan and overseas, financial trends and the change in theprice of precious metals.

(2) Consolidated Financial Position and Cash Flows for the Year ended March 31, 2020
As of this fiscal year ended March 31, 2020, total assets amounted to 229,958 million yen, up 69,685 million
yen from the previous fiscal year end. This was due mainly to an increase of 53,265 million yen in trade andother receivables, an increase of 12,556 million yen in inventories, and a decrease of 6,638 million yen in
goodwill.
Total liabilities amounted to 160,783 million yen, up 68,315 million yen from the previous fiscal year end.
This was due mainly to an increase of 63,004 million yen in bonds and loans payable.
Total equity amounted to 69,174 million yen, up 1,370 million yen from the previous fiscal year end.
Net cash used in operating activities amounted to 60,318 million yen due mainly to profit before tax of
17,650 million yen, depreciation and amortization of 2,827 million yen, increase in trade and otherreceivables, increase in inventories, and income taxes paid.
Net cash provided by investing activities amounted to 1,927 million yen due mainly to purchase of property,
plant and equipment of 3,960 million yen, and proceeds from sales of shares of subsidiaries of 6,259 million
yen.
Net cash provided by financial activities amounted to 65,165 million yen due mainly to net increase in
short-term loans payable of 65,419 million yen, proceeds from issuance of bonds of 4,928 million yen and cash
dividends paid of 4,714 million yen.
As a result, cash and cash equivalents as of March 31, 2020 increased 6,610 million yen from March 31,
2019, to 22,908 million yen.

(3) Dividends
We consider it is of utmost importance to return profits to our shareholders. Accordingly, we have made it
our basic policy to pay dividends of 50 percent and above of our consolidated net profits. Based on the above
basic policy, the year-end dividend for the current fiscal year will be 70 yen per share. The annual dividend forthe current fiscal year combined with the interim dividend will be 130 yen per share.
For the next term, we plan to pay an interim dividend of 70 yen and a year-end dividend of 70 yen (annual
dividend of 140 yen).

(4) Business and other risks
Major risks that could affect the Group’s operating results and financial condition include the following. We
believe these matters could have a significant impact on investor decisions, but the categories below arelimited to those that the Group is currently aware of; and not necessarily all risks are covered here.
Precious metals prices and currency exchange rates
The precious metals and rare metals that are the main products of the Group’s precious metals business①

are traded on international markets. Their prices fluctuate based on global elements such as political andeconomic trends in supply countries and demand countries, currency exchange rates, and so on. The Group
therefore hedges through forward transactions and provides timely reports on the status of pricefluctuations for the main previous metals to management, etc., in order to reduce risk, although the size offluctuation in precious metals prices and currency exchange rates can affect the Group’s operating results
and financial condition.

－ 3 －Laws and regulations
In the countries and regions where the Group operates business, various laws and regulations apply②

regarding matters such as permission to do business, rules for import/export/transport, commercial
transactions, labor, taxation, intellectual property rights, and environmental preservation. Taking the
stance that compliance is important, the Group has built a system for centrally managing information about
revisions to laws related to all its business fields and ensuring that this knowledge is communicatedwithout fail to the front lines, and carefully follows laws, regulations, and social rules. However, in theunlikely event that a situation arises where laws, regulations, and social rules could not be followed, or ifthey change such that business is restricted, it could affect the Group’s operating results and financial
condition.
In the environmental preservation business in particular, the Group engages in the collection, transport
and treatment of various types of industrial waste as an enterprise under the Waste Management andPublic Cleansing Act. In addition to that law, the business is regulated by laws such as the Water Pollution
Control Act, the Air Pollution Control Act, and the Sewerage Act. Furthermore, the Group has a license forthe collection and transport of industrial waste in every prefecture and ordinance-designated city, for its
disposal in 12 prefectures and 8 ordinance-designated cities and core cities, and for the collection andtransport of specially-controlled industrial waste in every prefecture and ordinance-designated city, for its
disposal in 10 prefectures and 7 ordinance-designated cities and core cities. Obtaining such licenses ispredicated on strict compliance with regulations at the regional level, including each prefectural andmunicipal ordinance and rule.
With society’s interest in environmental issues rising, such legal regulations are tending to tighten. Not
only capital investments as countermeasures to those trends but also the construction, relocation, andrenovation of disposal facilities require construction permits and permission to change. Such occasions may
also necessitate obtaining the consent of nearby residents, which could be difficult to obtain in some cases.
Therefore, such legal regulations and social trends could affect the Group’s operating results and financial
condition.
Economic fluctuation
Manufacturing industries are among the primary demand industries for the Group’s two businesssegments: the precious metals business and the environmental preservation business. Demand trends ineach sector within these industries are affected by economic conditions in various countries and regions.
When demand from such industries declines due to recession and so on, it can affect the Group’s operating
results and financial condition. Moreover, in the previous metals recycling business, the Group recycles
precious metals contained in end products such as information equipment and automobiles, and is therefore
affected by consumption trends. A decrease in personal consumption caused by a decline in the general levelof consumption could therefore affect the Group’s operating results and financial condition.

③

Business environment
The Group’s two business segments, the precious metals business and the environmental preservation④

business, face the possibility of major changes in customer needs due to changes in laws, regulations, andpermits that concern a sector or faster-than-expected shifts overseas by corporate customers. Furthermore,industry reorganization and other major changes in the business environment are possible. The results
could affect the Group’s operating results and financial condition.
Intensified competition⑤

The Group’s two business segments, the precious metals business and the environmental preservation
business, face competition from various companies. The Group continues to make efforts to overcome thecompetition in each sector by accurately meeting customer needs through sales efforts and initiatives ontechnology, products, and cost responsiveness. Intensified competition from competitor companies, however,can force the Group’s products and services into harsh price competition. The results could affect theGroup’s operating results and financial condition.
Overseas business deployment⑥

Under the slogan, “Building a global company that pursues originality and growth,” one of the Group’s
growth strategies is expansion of its overseas business. In this regard, the Group carries out business incountries and regions in North America, Asia, etc. Political or economic phenomena unfavorable to business,－ 4 －labor disputes due to differences in labor environment, uncertainty in finding suitable local personnel,
conflicts, terrorism, and other social disturbances, and unfair intervention by authorities due tounderdeveloped business infrastructure in a country or region are inherent risks. If such situations occur, it
could affect the Group’s operating results and financial condition.
Corporate acquisition, etc.

⑦

The Group has worked to expand its lines of business and business scale through corporate acquisitionand expects to take a forward-looking approach projects that will contribute to further growth in the future.
In order to maximize the integration effect with target businesses and companies, the Group will attempt tointegrate and unify them with its business strategy and operations. However, if the integration of humanresources and assets does not proceed as planned, it is possible that the expected integration and unification
effects will not be realized. The results could affect the Group’s operating results and financial condition.
Impairment of goodwill and fixed assets⑧

When the Group acquired a company, it records goodwill arising from the acquisition, as well as various
property, plant and equipment and intangible assets for business use. At the acquisition examination stage,
the Group carries out sufficient surveys from the financial, legal, and human resource perspectives, among
others, but if the acquired company and business do not achieve business results as initially expected due tochanges in the market environment, etc., and the management results and profitability deteriorate
markedly, these assets may become impaired. If such situations occur, it could affect the Group’s operating
results and financial condition.
Natural disasters and infectious disease
Natural disasters such as large earthquakes or typhoons or the outbreak of new infectious diseases could⑨

cause serious damage to the Group’s production, distribution, sales, and information management facilities.
The Group has implemented countermeasures such as business continuity management (BCM), flood
countermeasures, disaster readiness drills, and building an employee safety confirmation system. However,these are not able to completely eliminate damage due to natural disasters or unknown infectious diseases,
etc. Therefore, if these should occur it could affect the Group’s operating results and financial condition.
In addition, the impact of the novel coronavirus (COVID-19) outbreak is expected to see adverse market
conditions continue, and at this point there is no outlook for controlling the outbreak. If the situation
continues even longer, it could have a further negative impact on economies and markets in Japan andoverseas, the result of which could affect the Group’s operating results and financial condition.
Health and safety
The Group works to strengthen its safety management system, and regularly carries out disaster/accident⑩

prevention activities such as holding Safety Promotion Meetings that are also attended by management andtaking necessary measures in order to eliminate occupational and facilities accidents. However, there is no
guarantee that they can be completely prevented or mitigated. Therefore, if a serious occupational or
facilities accident should occur, it could affect the Group’s operating results and financial condition.
Human resources⑪

Since the Group’s medium- to long-term growth depends on the abilities and experience of individual
employees, the Group systematically secures and develops high quality human resources. “Actively
investing in human capital” is also an important strategy of the 8th Mid-term Business Plan, which ends inthe fiscal year ending March 31, 2021. In addition to human resource development through sending
employees to leader training and business schools, we are also promoting work style reforms such as
observing “rest intervals” of at least 11 hours before an employee can return to work the next day, andencouraging employees to take refreshment leave. However, if the Group is unable to secure high quality
human resources and prepare the necessary talent for taking on challenges at the right time due toincreased speed of business development, it could affect the Group’s operating results and financial
condition.

－ 5 －Research and development
The Group conducts independent research and development and analysis technology development aimed⑫

at “precious metals recycling’ and “detoxifying and recycling of industrial waste.” However, research anddevelopment of new technologies is affected by various factors, such as changes in the market environment,competition, and the ability to commercialize development results. Therefore, it is highly uncertain whether
the expenses used in research and development can be recovered. For this reason, if the results of researchand development are not obtained as initially anticipated, it could affect the Group’s operating results andfinancial condition.
Key intellectual property rights⑬

In order to protect intellectual property rights important to business deployment, the Group carries out
appropriate management. However, unforeseen leaks to outside parties can occur, and complete protectionof intellectual property rights may be impossible in certain regions. Therefore, it may not be possible toeffectively prevent third parties from using the Group’s intellectual property rights to manufacture and sellsimilar products and services. Moreover, the Group could be embroiled in a dispute if the products andtechnologies that it is developing for the future infringe unintentionally on the intellectual property rights
of another company, or regarding the handling of workplace inventions in its relationships with employees.
The results could affect the Group’s operating results and financial condition.
Product quality assurance and product liability⑭

Led by its Quality Assurance Division, the Group has acquired ISO9001 to provide products offering
customers greater confidence and satisfaction, and makes continuous improvements to its quality
management systems and strives to maintain and improve quality. Through such measures, the Groupmakes every effort with its product quality assurance system, but if a product produced by the Group causes
damages, it could affect the Group’s operating results and financial condition.
Environmental protection
Based on its Environmental Policies, the Group carries out various initiatives to protect the global⑮

environment. For example, it has established the Company-wide Environmental Goals (Annual Plan) andan Environmental Committee is set up at every business site. Through these and other efforts, the Group
complies with environmental laws and regulations, revises its plans, deliberates about environmental
education and so forth, and reports to management. However, there is no guarantee that all pollution andother environmental risk can be completely prevented or mitigated, so if the Group should cause serious
pollution of the environment, it could affect the Group’s operating results and financial condition.
Climate change⑯

The adoption of the Paris Agreement at the 21st Session of the Conference of the Parties to the United
Nations Framework Convention on Climate Change (COP 21), which has been ratified by every country, has
sparked a global wave of initiatives aimed at reducing greenhouse gases deemed to cause climate change
and global warming. Abnormal weather such as local destructive storms caused by climate change has thepotential to cause serious flooding and landslides, which can significantly damage the Group’s
infrastructure such as facilities and logistics. If business activities are forced to halt for a long period until
these can be restored, it could affect the Group’s operating results and financial condition.
Information security
PCs and tablets used by the Group use the latest security countermeasures, and we take sufficient⑰

measures to ensure that system faults and information theft or loss do not occur during their installationand operation. We also implement regular employee training to enhance their IT literacy. However, there isa possibility that unexpected events could occur such as destruction or tampering of important data or
external leaks of information as a result of infection by a computer virus, hacking damage, and systemfaults due to software defects, or a larger than anticipated external attack. Such an event could affect theGroup’s operating results and financial condition.

－ 6 －Lawsuits and other legal procedures
As the Group carries out business in Japan and overseas, it could be subjected to lawsuits and other legal⑱

procedures. The Group appropriately monitors major lawsuits that have already been instigated or have thepotential to be instigated, and takes countermeasures as needed. However, if the Group becomes a party tosuch action, it might have to pay large damages, etc. The results could affect the Group’s operating results
and financial condition.

－ 7 －2. Our Group
Our Group comprises of the holdings company “Asahi Holdings, Inc.,” “Asahi Pretec Corp.,” “Asahi Americas
Holdings, Inc.” and 16 other consolidated subsidiaries and affiliated companies. Our main businesses are precious
metals business and environmental preservation business. The details are as follows:(1) Precious metals businessIn the precious metals business, we sell precious/rare metal products such as gold, silver, platinum, andpalladium 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, etc. also engages in precision cleaning and precious metaldelamination of manufacturing equipment parts from semiconductor/electronic component makers. In
addition, the Group established Asahi Pretec Medical Support Co., Ltd. as a paid human resource introduction
business operating a recruitment website specializing in dental hygienists.
Overseas, Asahi G&S Sdn. Bhd. in the Malaysia/Singapore region and Asahi Pretec Korea Co., Ltd. in South
Korea are engaged in the precious metals recycling business. Additionally, Asahi Refining USA Inc., Asahi
Refining Florida LLC and Asahi Refining Canada Ltd. carry out the refining and processing of gold, silver,
and other precious metals in the United States and Canada respectively.

(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, printing presses, hospitals,
schools, and research institutes. Additionally, Japan Waste Corporation is engaged in the collection,transportation, intermediate processing and recycling of various industrial wastes. JW Chemitech Co., Ltd.
mainly performs the collection, transport, and intermediate treatment of industrial waste generated byfactories. Taiyo Chemical Co., Ltd. processes medical-related waste and industrial effluent from companies in
the IT, electronics, and petrochemical 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 brick processing of smelting furnaces for glass manufacturing. It removes firebricks from smelting
furnaces and performs 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. INTER CENTRAL, INC., manufactures and sells electric heaters and designs andinstalls radiant heating and air conditioning systems.

－ 8 －Domestic Bases

Domestic Bases

Asahi Pretec Corp.

Asahi Americas Holdings，Inc.

Selling recycling scrap containing
precious / rare metals

Precious Metals Business

Asia

North America

ASAHI G&S SDN.BHD.

Asahi Refining
USA Inc.

Shanghai Asahi
Pretec Co., Ltd.

Asahi Refining
Florida LLC

Asahi Pretec
Korea Co., Ltd.

Asahi Refining
Canada Ltd.

Asahi Pretec
Medical Support Co., Ltd.

Domestic Bases

Environmental Preservation Business

A sahi Holding s, I nc.

Domestic Bases

Asahi Pretec Corp.
Entrustment of industrial waste
treatment

Domestic BasesJapan Waste Corporation

JW Glass RecyclingCo., Ltd.

JW ChemitechCo., Ltd.

INTER CENTRAL, INC.

Taiyo ChemicalCo., Ltd.

Other 1 company

Fuji Rozai Co., Ltd.

Other

*Other 2 companies(including consolidated
subsidiary)(Notes) Unmarked: Consolidated subsidiary* Equity method affiliate－ 9 －3. Basic Concept Regarding Selection of Accounting Standards
We have applied International Financial Reporting Standards (IFRS) with the objectives of enhancing ourmanagement base for global business development and enabling easier international comparison of financial
information in capital markets from the first quarter of fiscal year ended March 31, 2017.

－ 10 －

4. Consolidated Financial Statements(1) Consolidated Statements of Financial Position
As ofMarch 31,
2019

As of
March 31,
2020

Millions ofyenMillions ofyen

ASSETS
Current assets
Cash and cash equivalents

16,29722,908Trade and other receivables
Inventories

66,48925,191

119,754
37,748

Income tax receivables
Other financial assets

1,515
389

2,029
93

Other current assets

3,906

5,069

Total current assets

113,790

187,604

36,083

34,953

8,243
697
－

1,604
529

Non-current assets
Property, plant and equipment
Goodwill
Intangible assets
Investments accounted for using equity method
Deferred tax assets
Net defined benefit asset
Financial assets

873

3,254
1,132

47
498

155
683

Other non-current assets

39

42

Total non-current assets

46,48242,354160,272

229,958

Total assets－ 11 －

As ofMarch 31,
2019

As of
March 31,
2020

Millions ofyenMillions ofyen

LIABILITIES and EQUITY
Liabilities
Current liabilities
Trade and other payables

17,16913,710Loans payable
Income tax payable

44,712
2,405

121,873
4,624

Other financial liabilities
Provisions

1,537
1,207

6,991
1,293

Other current liabilities

3,540

4,643

Total current liabilities
Non-current liabilities

70,573

153,137

Bonds and loans payable
Deferred tax liabilities

19,085
1,360

4,928
1,453

Net defined benefit liability
Other financial liabilities

172
1,066

Other non-current liabilities

157
1,291
－

Total non-current liabilities

21,895

7,645

92,468160,783

Total liabilities
EquityCapital stock

24

7,790

7,790

Capital surplus
Treasury stock

10,353(955)

10,755(956)

Retained earnings
Other components of equity

55,547(4,931)60,797(9,212)

Total equity attributable to owners of parent

67,804

69,174

Total equity

67,804

69,174160,272

229,958

Total liabilities and equity－ 12 －

(2) Consolidated Statements of Income
The fiscal year ended
March 31, 2019

The fiscal year ended
March 31, 2020

Millions of yen

Millions of yen

Continuing operations
Revenue

110,412

135,563

Cost of sales(89,691)(107,264)

Gross profit
Selling, general and administrative expenses

20,720(7,237)28,298(7,174)

115
(155)

195
(1,154)－(45)

Operating income
Finance income

13,442
32

20,11924

Finance cost
Other non-operating income(1,123)－(2,440)87

Other operating income
Other operating expenses
Share of profit (loss) of investments accounted forusing equity method

Other non-operating expenses

－

(140)

Profit before tax
Income tax expenses

12,351(4,078)17,650(6,230)

Profit from continuing operations
Discontinued operations

8,273

11,419727(1,573)

9,000

9,846

Owners of parent
Non-controlling interests

9,000
－

9,846
－

Profit (loss)

9,000

9,846

Continuing operations
Discontinued operations

209.7018.44

290.22(39.98)Total

228.14250.24

Diluted earnings (loss) per share (Yen)Continuing operations

208.84288.24

Discontinued operations

18.37(39.71)

Total

227.21248.53

Profit (loss) from discontinued operations
ProfitProfit attributable to:Earnings (loss) per share
Basic earnings (loss) per share (Yen)－ 13 －

(3) Consolidated Statements of Comprehensive Income
The fiscal year ended
March 31, 2019

The fiscal year ended
March 31, 2020

Millions of yen

Millions of yen

Profit (loss)

9,000

9,846

(17)

(12)

(69)

125

－

(2)

(86)

110

Other comprehensive income
Items that will not be reclassified to profit or loss
Financial assets measured at fair value
through other comprehensive income
Remeasurements of defined benefit plans
Share of other comprehensive income ofinvestments accounted for using equity method
Total items that will not be reclassified to profit
or loss
Items that will be reclassified to profit or loss
Cash flow hedges(1,168)(3,805)

Translation adjustments of foreign operations

(112)

(461)

Total items that will be reclassified to profit orloss(1,280)(4,266)(1,367)(4,155)

7,633

5,690

7,633
－

5,690
－

7,633

5,690

Other comprehensive income, net of tax
Comprehensive income
Comprehensive income attributable to:
Owners of parent
Non-controlling interests
Comprehensive income－ 14 －

(4) Consolidated Statements of Changes in Equity(Millions of yen)
Equity attributable to owners of parent
Other components ofequityCapitalTreasury
Retained
Translation
surplusstockearnings
adjustments
Cash flowof foreign
hedgesCapitalstock

operations

Balance at April 1, 2018
ProfitOther comprehensive
incomeTotal comprehensive
incomePurchase of treasury stock
Disposal of treasury stock
Dividends
Reclassified from othercomponents of equity toretained earnings
Share-based paymenttransactions
Total transactions withownersBalance at March 31, 2019

7,790
－

10,381－(386)－

50,2829,000(3,624)
－

(34)
－

－

－

－

－

(112)

(1,168)

－

－

－

9,000

(112)

(1,168)

－
－
－

－
24
－

(744)
70
－

－
－
(3,667)

－
－
－

－
－
－

－

－

－

(68)

－

－

－

(52)

104

－

－

－

－

(27)

(568)

(3,736)

－

－

7,790

10,353(955)

55,547(3,737)(1,203)(Millions of yen)
Equity attributable to owners of parent
Other components of equity
Financial
Remeasureassets
measured atments offair value
definedthrough otherbenefitcomprehenplans
sive income

Balance at April 1, 2018
ProfitOther comprehensive
incomeTotal comprehensive
incomePurchase of treasury stock
Disposal of treasury stock
Dividends
Reclassified from othercomponents of equity toretained earnings
Share-based paymenttransactions
Total transactions withownersBalance at March 31, 2019

Total

Total

Total equity

27
－

－
－

(3,632)－64,4359,000

64,435
9,000

(17)

(69)

(1,367)(1,367)(1,367)

(17)

(69)

(1,367)

7,633

7,633

－
－
－

－
－
－

－
－
－

(744)
95
(3,667)(744)
95(3,667)

(0)

69

68

－

－

－

－

－

52

52

(0)

69

68

(4,264)(4,264)8－(4,931)67,80467,804－ 15 －

(Millions of yen)
Equity attributable to owners of parent
Other components ofequityCapitalTreasury
Retained
Translation
surplusstockearnings
adjustments
Cash flowof foreign
hedgesCapitalstock

operations

Balance at April 1, 2019
ProfitOther comprehensive
incomeTotal comprehensive
incomePurchase of treasury stock
Dividends
Changes due to loss ofcontrol of subsidiaries
Reclassified from othercomponents of equity toretained earnings
Share-based paymenttransactions
Total transactions withownersBalance at March 31, 2020

7,790
－

10,353－(955)－

55,547
9,846(3,737)－(1,203)
－

－

－

－

－

(461)

(3,805)

－

－

－

9,846

(461)

(3,805)

－
－

－
－

(0)
－

－
(4,721)

－
－

－
－

－

337

－

－

－

－

－

－

－

125

－

－

－

64

－

－

－

－

－

401

(0)

(4,596)

－

－

7,790

10,755(956)

60,797(4,198)(5,008)(Millions of yen)
Equity attributable to owners of parent
Other components of equity
Financial
Remeasureassets
measured atments offair value
definedthrough otherbenefitcomprehenplans
sive income

Balance at April 1, 2019
ProfitOther comprehensive
incomeTotal comprehensive
incomePurchase of treasury stock
Dividends
Changes due to loss ofcontrol of subsidiaries
Reclassified from othercomponents of equity toretained earnings
Share-based paymenttransactions
Total transactions withownersBalance at March 31, 2020

Total

Total

Total equity

8
－

－
－

(4,931)－67,804
9,846

67,804
9,846

(15)

125

(4,155)(4,155)(4,155)(15)

125(4,155)

5,690

5,690

－
－

－
－

－
－

(0)
(4,721)(0)(4,721)

－

－

－

337

337

0

(125)

(125)

－

－

－

－

－

64

64

0

(125)

(125)

(4,320)(4,320)(5)－(9,212)

69,174

69,174－ 16 －

(5) Consolidated Statements of Cash FlowsThe fiscal year
ended March 31,
2019

The fiscal year
ended March 31,
2020

Millions of yen

Millions of yen

Profit before tax
Profit (loss) before tax from discontinued operations

12,351
1,053

17,650(1,074)

Depreciation and amortization
Impairment loss

2,320
15

2,827
2,605

Finance income and finance cost
Other non-operating income and expenses

1,055
－

2,239
52

－

45

Decrease (increase) in inventories
Decrease (increase) in trade and other receivables(2,720)(29,497)(15,209)(64,029)

Increase (decrease) in trade and other payables
Other, net

2,829(2,051)

790
396

SubtotalInterest and dividends income received(14,645)33(53,704)
25

Interest expenses paid
Income taxes paid

(1,114)(6,287)(2,093)(5,940)Net cash provided by (used in) operating activities

Share of loss (profit) of investments accounted for using equity
methodIncome taxes refund

1,365

1,394

(20,648)(60,318)

(100)
100

(93)
－

(5,552)236(3,960)122

Purchase of intangible assets
Proceeds from sales of shares of subsidiaries

(249)
－

(174)
6,259

Proceeds from sales and redemption of investments
Other, net

15
(79)

6
(231)

Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities(5,629)1,927

Net increase (decrease) in short-term loans payable
Repayment of long-term loans payable

23,645(1,010)－65,419－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
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment

Proceeds from issuance of bonds
Proceeds from sales of treasury stock

95

4,928
－

(744)
(3,666)(0)(4,714)

(59)

(466)

18,261

65,165174(163)

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period(7,842)
24,1406,610
16,297

Cash and cash equivalents at end of period

16,29722,908Purchase of treasury stock
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents－ 17 －

(6) Notes on Assumptions for Going Concern
Not applicable(7) Notes on Consolidated Financial Statements
1. Reporting entity
Asahi Holdings, Inc. (hereinafter the “Company”) is a company located in Japan. The addresses of theCompany’s registered head office and principal offices are available on its website(https://www.asahiholdings.com). The Company’s consolidated financial statements have a fiscal year-end
date of March 31, 2020 and comprise the financial statements of the Company as well as its subsidiaries(the “Group”).
For the main activities of the Group, please refer to Note 5. Segment information.

2. Basis of preparation(1) Statement of compliance with IFRSThe consolidated financial statements of the Group have been prepared based on IFRS issued by theInternational Accounting Standards Board.
Having met the requirements for a Specified Company under the Designated International AccountingStandards, as prescribed in Article 1-2 of the Ordinance on the Terminology, Forms, and Preparation
Methods of Consolidated Financial Statements (Ordinance of the Ministry of Finance No. 28 of 1976; the“Ordinance on Consolidated Financial Statements”), the Group adopts the provisions of Article 93 of theaforementioned rules.
(2) Basis of measurement
The consolidated financial statements of the Group have been prepared based on costs of acquisition,
except for the specified financial instruments that have been measured at fair value.
(3) Functional currency and presentation currency
The consolidated financial statements of the Group are presented in Japanese yen, which is thefunctional currency of the Company, and figures less than one million yen are rounded down to thenearest million yen.

3. Changes in accounting policies
The significant accounting policies adopted for the consolidated financial statements are the same as thosefor the consolidated financial statements for the fiscal year ended March 31, 2019, with the exception of theitems described below.
(1) Basis for consolidation
Affiliated companies
Affiliated companies refer to companies over which the Group does not have control or joint control,
despite having significant influence over finance or operating policy. When the Group has between 20%
and 50% of the voting rights of another company, the Group is assumed to have significant influence overthat company.
Affiliated companies are accounted for by the equity method from the day that the Group assumes asignificant influence until the day that it loses the significant influence. Investments in affiliates include
goodwill recognized upon acquisition (net of accumulated impairment losses).
Where affiliated companies have adopted different accounting policies to those adopted by the Group,
adjustments are made to the affiliated companies’ financial statements as needed.
(2) Leases
The Group adopted the standards shown below in the first quarterly consolidated accounting period.
IFRS
IFRS 16

Overview of new and revised items
Leases

Revision of accounting procedures on leases－ 18 －

The Group adopted IFRS 16 “Leases” (announced in January 2016, hereinafter referred to as “IFRS16”) in the first quarterly consolidated period.
IFRS 16, which replaces the former IAS 17 for lease transactions of the lessee, prescribes theelimination of the classification between operating leases and finance leases and introduction of a single
accounting model to record assets and liabilities in relation to all important lease transactions.
As of the lease commencement date, right-of-use assets are measured at acquisition cost, and leaseliabilities are measured at the present value of remaining lease payments as of the lease commencement
date. When the ownership of the underlying asset is transferred to the Group prior to the termination of
the lease period, or when the exercise of a purchase option is reflected in the acquisition price of the rightof-use asset, the right-of-use asset is depreciated using the straight-line method based on its useful life. In
other cases, right-of-use assets are depreciated using the straight-line method based on either the usefullife or at the termination of the lease period, whichever is shorter. Lease payments are apportioned
between finance costs and repayment of lease obligations based on the interest method, and financial
costs are recognized in the consolidated statements of income.
The lease period is determined by adjusting the period subject to an option to extend or terminate thelease that can be exercised with reasonable certainty during the non-cancelable period as set forth in thelease contract. The rate used in calculating the present value of the lease payments is the interest rate
implicit in the lease or the lessee’s incremental borrowing rate.
Short-term leases with a lease term of 12 months or less and leases of low-value underlying assets arerecognized as expenses on either a straight-line basis or another systematic basis over the lease term forthe total lease payments.
The method adopted in the application of IFRS 16 is to recognize the cumulative effect of applying thisstandard at the date of initial application that is approved as an interim measure without retrospectively
adjusting the balance in the earlier reporting periods.
In transitioning to IFRS 16, the Company chose to adopt the practical expedient of succeeding theprevious assessment of which transactions constitute leases. IFRS 16 is applied only to contracts thatwere identified as leases under the previous IAS 17 and IFRIC 4 and a review on whether the contracts
correspond to leases is not performed on contracts not previously identified as leases.
Consequently, the identification of leases based on IFRS 16 is applied solely to contracts that weresigned or changed after the initial date of application.
For leases that were classified as operating leases under IAS 17, lease liabilities on transition are
initially measured at the present value of the total remaining leases as of the date of transition,
discounted at the incremental borrowing rate of the lessee. Right-of-use assets are recorded at the samevalue as lease liabilities. The weighted-average for incremental borrowing rate of the lessee applied tolease liabilities recognized in the consolidated financial statements as of the date of initial application is
0.4%.
Also, the Company has used the practical expedients in the past as shown below prior to the applicationof IFRS 16 to leases classified as operating leases with the application of IAS 17:* Rely on an assessment of whether leases are onerous in accordance with IAS 37 “Provisions,Contingent Liabilities and Contingent Assets” immediately before the date of initial application as analternative to performing an impairment review.
* Apply a single discount rate to a portfolio of leases with reasonably similar characteristics* Account for leases for which the lease term ends within 12 months of the date of initial application in
the same way as short-term leases* Exclude initial direct costs from the measurement of right-of-use assets at the date of initial
application* Use hindsight: e.g. in determining the lease term of the contract that contains options to extend or
terminate the lease.
The differential between the lease liabilities recognized on the day of initial application and total future
minimum lease payments on operating leases that cannot be terminated, disclosed by applying IAS 17, asof the end of the consolidated accounting year immediately before the date of initial application is 1,652
million yen. A major reason behind this differential is a review of the lease period performed upon theapplication of IFRS 16.
－ 19 －

The carrying amount of right-of-use assets and lease liabilities as of April 1, 2019 for leases classified as
finance leases under IAS 17 is calculated at the carrying amount of lease assets and lease liabilities
according to IAS 17 as of the day immediately preceding the above date.
In transitioning to IFRS 16, the Company recorded 2,138 million yen, 507 million yen and 1,631 million
yen as Property, plant and equipment, other financial liabilities (current) and other financial liabilities(noncurrent), respectively, at the beginning of the period.
The impact of the transition on the profits and cash flow during the current fiscal year remains
minimal.
(3) Discontinued operations
The Group recognizes any component of a company that has already been disposed of or has beenclassified as held for sale and that falls under either one of the following categories as a discontinued
operation:• It represents a major independent business area or operating territory.
• It is a component of a consolidated plan to dispose of a major independent business area or operating
territory.
• It is a subsidiary that has been acquired solely for the purpose of resale.
The after-tax gain or loss on discontinued operations and the after-tax gain or loss recognized after the
disposal of the disposal group that constitutes the discontinued operations are reported separately fromcontinued operations as profit from discontinued operations in the consolidated income statement. The
disclosed data on prior periods have also been restated accordingly.
Note 7 discloses additional information related to discontinued operations while notes to all otherconsolidated financial statements show the amounts relating to continuing operations, unless otherwise
specified.

－ 20 －

4. Significant accounting estimates and associated judgements
In preparing consolidated financial statements, the management is required to make judgement,
estimates and assumptions that affect the adoption of accounting policies and the amounts of assets,
liabilities, revenues and expenses. Actual results may differ from such estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. The effect of a change inaccounting estimates is recognized in the accounting period in which such change occurs as well as theaccounting periods to be affected in the future.
The estimates and judgements made by the management that may have material impacts on the figures in
the consolidated financial statements are the same as those for the consolidated financial statements for the
fiscal year ended March 31, 2019.

－ 21 －

5. Segment information(1) Overview of reporting segments
The Group’s reporting segments are those Group constituent units for which separate financial
information is obtainable, and which the Board of Directors subjects to regular examination in order todecide the allocation of management resources and evaluate business results.
As a pure holding company, the Company is in charge of overall strategic function for the Group,
whereas operating companies of the Group engage in the precious and rare metals recycling business andthe refining and processing business, industrial waste management and other environmental
preservation business.
Therefore, the Group is composed of product and service segments based on business sectors. The tworeporting segments are the precious metals business and the environmental preservation business.
Meanwhile, these reporting segments are not be aggregated.
The precious metals business engages mainly in recycling and selling of precious and rare metals suchas gold, silver, palladium, and platinum, as well as refining and processing of precious metals such as goldand silver. The main work of environmental preservation business is the collection, transport andintermediate processing of industrial waste, and the manufacture and sale of electric heaters.
In the current consolidated fiscal year, the Company transferred 60% of all shares of Fuji Medical
Instruments MFG. Co., Ltd. to Johnson Health Tech Co., Ltd., a company listed on the Taiwan Stock
Exchange. Consequently, the Company classified the business of Fuji under discontinuing operations, andthe amounts presented for segment information are amounts from continuing operations from which
discontinuing operations have been excluded. Please refer to Note “7. Discontinued Operations” for details
on discontinued operations.
Also, starting in the current consolidated fiscal year, the number of reporting segments was reduced
from 3 (three) in the past: “Precious Metals business,” “Environmental Preservation business” and “Life &Health business” to 2 (two): “Precious Metals business” and “Environmental Preservation business.” This
step was taken in response to partial changes in the Group’s business management structure following
the classification of Fuji, which constituted a core section of the “Life & Health business,” into
discontinued operations. In line with this change, the Company transferred the business of INTER
CENTRAL, INC. from “Life & Health business” to “Environmental Preservation business” category in theprevious consolidated fiscal year. Also, the business of KOEIKOGYO CO., LTD., transferred from “Life &Health business” to “Other” because it sold all shares and was excluded from consolidation.

－ 22 －

(2) Segment revenue and performance
For the fiscal year ended March 31, 2019 (from April 1, 2018 to March 31, 2019)(Millions of yen)
Reporting segment
Precious
Metals Business

Environmental
Preservation
Business

87,804

19,366

107,171

3,241

－

41

41

87,804

19,408

11,992

3,850

Total

Adjustment

Consolidated

110,412－110,412

0

42

(42)

－

107,2123,241

110,454(42)

110,412

15,842

156

15,998(2,556)

13,442

Subtotal

Other

Revenue
External
revenue
Intersegment
revenue
Total
Operating income
by businesssegment
Finance income

32

Finance costs(1,123)

Profit before tax

12,351Others:Depreciation andamortization

986

687

1,673

13

1,686

487

－
－
Impairment loss
0
14
15
15
(Notes) 1. Intersegment transactions are based on prevailing market prices.
2. Adjustments of operating income by business segment are mainly corporate expenses that are notallocated to each reporting segment.

－ 23 －

2,174
15

For the fiscal year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)(Millions of yen)
Reporting segment
Precious
MetalsBusiness

Environment
alPreservation
Business

Subtotal

113,755

20,713

134,468

1,094

－

3

3

Total

113,755

20,716

Operating income
by business

18,022

4,355

Revenue
External
revenue
Intersegment
revenue

Other

Total

Adjustment

Consolidated

135,563－

135,563

－

3

(3)

－

134,472

1,094

135,566(3)

135,563

22,3783

22,381(2,261)

20,119segment
Finance income
Finance costs

24(2,440)

Other nonoperating income

87

Other nonoperating(140)

expensesProfit before tax

17,650

Others:Depreciation andamortization
Impairment loss
Share of loss
(profit) ofinvestments
accounted forusing equity

1,347

792

2,139

3

2,142

501

2,644

998

－

998

－

998

－

998

－

－

－

(45)

(45)

－

(45)

method(Notes) 1. Intersegment transactions are based on prevailing market prices.
2. Adjustments of operating income by business segment are mainly corporate expenses that are notallocated to each reporting segment.
3. Please refer to Note 6. Impairment loss for details on impairment loss.

6. Impairment loss
The impairment loss of 998 million yen on property, plant and equipment recognized during the fiscal
year under review was due to the decision of disposal of gold and silver refining facilities (buildings andmachinery) in Asahi Refining Florida LLC belonging to the segment of Precious Metals Business to further
enhance the efficiency and profitability of business in North America. And the book value of the property,
plant and equipment has been reduced to the recoverable amount. The recoverable value is measured basedon the fair value less costs of disposal, and that is evaluated using the estimated disposal value, etc. of theasset. The fair value hierarchy level is 3. Impairment losses are recorded in “Other operating expenses” inthe consolidated statements of income.

－ 24 －

7. Discontinued operations(1) Outline of discontinued operations
On December 20, 2019, the Company signed an agreement to transfer of 60% of all the shares of Fuji
Medical Instruments Mfg. Co., Ltd, which was a consolidated subsidiary of the Company, to Johnson
Health Tech. Co., Ltd., a listed company on the Taiwan Stock Exchange. For this reason, profit and loss aswell as cash flows relating to operations of Fuji Medical Instruments Mfg. Co., Ltd in the fiscal year
under review are classified as discontinued operations, while those for the previous fiscal year are
restated with the discontinued operations concerned displayed in a separate category. The transfer wascompleted on March 13, 2020.
(2) Discontinued operations performance(Millions of yen)
The fiscal year ended
March 31, 2019

The fiscal year ended
March 31, 2020

Revenue and expense of discontinued operations
Revenue
Expense (note)

18,378(17,325)

13,698(14,772)

Profit (loss) before tax from discontinued
operations

1,053(1,074)

Corporate income tax expense (note)

(325)

(499)

Profit (loss) from discontinued operations

727(1,573)(Note)

This includes losses worth 1,607 million yen, which were recognized by the measurement in the current
consolidated fiscal year of the disposal group that constitutes discontinued operations at fair value lessselling cost. Corporation income tax expenses pertaining to this change totaled 332 million yen.

(3) Cash flow from discontinued operations(Millions of yen)
The fiscal year ended

The fiscal year ended

March 31, 2019

March 31, 2020

Cash flow from discontinued operations
Net cash provided by (used in) operating
activities

119

1,388

Net cash provided by (used in) investing
activities

(42)

(80)

Net cash provided by (used in) financing
activities

42(1,493)

119

(184)

Total

－ 25 －

8. Per share information(1) Basic and diluted earnings per share(Yen)
Year ended March 31,

Year ended March 31,

2019

2020

Continuing operations
Discontinued operations
Total basic earnings (loss) per share

209.7018.44

290.22(39.98)228.14250.24

Continuing operations

208.84288.24

Discontinued operations
Total diluted earnings per share

18.37
227.21(39.71)248.53(2) The basis for calculating basic earnings per share(Millions of yen)
Year ended March 31,
2019Profit attributable to owners of parent
Profit (loss) from discontinued operations attributableto owners of parent
Profit from continuing operations attributable toowners of parent used for calculation of the basic

Year ended March 31,
2020

9,000

9,846

727

(1,573)

8,273

11,419earnings per share(3) The basis for calculating diluted earnings per share(Millions of yen)
Year ended March 31,

Year ended March 31,

2019

2020

Profit from continuing operations used for calculationof the basic earnings per share

8,273

11,419

－

－

8,273

11,419727(1,573)

9,000

9,846

Adjustments of profit for the year
Profit from continuing operations used for calculationof the diluted earnings per share
Profit (loss) from discontinued operations used for
calculation of the diluted earnings per share
Profit used for calculation of the diluted earnings per
share(4) Weighted average number of common stock(Shares)Year ended March 31,

Year ended March 31,

2019

2020

Weighted average number of common stock

39,453,473

39,348,825

161,261

271,51239,614,734

39,620,337

Increase in number of common stock
Share acquisition rights
Weighted average number of diluted common stock

9. Subsequent events
Not applicable－ 26 －

5. Others(1) Amounts of SalesYear ended March 31, 2019
Amount(Millions of yen)

Year ended March 31, 2020

Year-on-Year(%)

Amount(Millions of yen)

Year-on-Year
(%)

Gold

41,742131.9

52,898

126.7

SilverPalladium

4,414
22,069

91.7
120.3

4,125
29,90893.4
135.5

Platinum
Industrial waste treatment

5,051
19,272

6,576
20,622

130.2
107.0

21,431120.0

135,563122.8(Note)

Other

17,861

78.7
105.6
－

Total

110,412－The Company classified the business of Fuji Medical Instruments MFG. Co., Ltd., which was a consolidated
subsidiary of the Company, under discontinuing operations. Consequently, the Company restated “Amountsof Sales” from the previous consolidated fiscal year to amounts from continuing operations.

－ 27 －