To our shareholders

Interim Business Report for FY2016
April 1, 2016

September 30, 2016

Figures stated in these financial results are presented on
the basis of IFRS. Figures for the six months ended
September 30, 2015 and the full-year figures for theprevious fiscal year have been presented on the basis ofIFRS through the reclassification of JGAAP-based figures
disclosed in the previous fiscal year.＿＿＿＿＿＿＿＿＿

Asahi Holdings, Inc.
Stock Code ： 5857
Tokyo Stock Exchange (First Section)

To Our Shareholders
I would like to express our cordial appreciation for your continuoussupport and loyal patronage.＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿In the Japanese economy during the first half (April 1, 2016 throughSeptember 30, 2016), improvements in corporate earnings paused while
personal consumption continued to lack vigor. The future remains
opaque due to the impact of the Brexit issue on the global economic
environment, slowdown of the Chinese economy, and deceleration ofemerging economies, among other factors.＿＿＿＿＿＿＿＿＿＿＿＿＿
Under these economic conditions, the group’s results in each businesssegment were as follows.＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
Precious metal business ＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
Volume of collection in the precious metals recycling business was asfollows. In the electronics sector, market share expansion in the E-scrap
business led to an increase in the volume of collection of gold from thatof the same period a year earlier despite the continued contraction of thedomestic market. In the dental sector, amidst the amount of precious
metals used for dental materials declining, the volume of collection ofgold and palladium remained at the same level as in the same period lastyear by taking various measures. In the jewelry sector, the impact ofcontinued drop in the volume of distribution in the purchasing market
resulted in lower year-on-year volume of collection of gold and platinum.
In the automotive catalyst sector, the volume of collection of platinum
increased from the same period a year earlier despite the continued
decline in the number of domestic scrapped vehicles.＿＿＿＿＿＿＿＿
As for gold and silver refining business in North America, though bothprocessing volume and unit price for commissioned refining businessremained at a low level, technological improvements aimed at raisingproduction efficiency gradually materialized into tangible results.＿＿
Environmental preservation business＿＿＿＿＿＿＿＿＿＿＿＿＿＿
Although the volume of industrial waste discharged in Japan declined,business performance of the entire segment remained solid, exceeding
the level during the same period last year, as group companies focusedon developing new customers and obtaining contracts by capitalizing on
their characteristics and group networks. ＿＿＿＿＿＿＿＿＿＿＿＿＿＿

Life & health business ＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿In the health care equipment sectors, due to slowdown in the sale ofmajor massage chairs, sales declined from the same period a year
earlier despite of efforts to expand overseas sales and the sales of smallsized massage chairs, hearing aids, and electrolytic hydrogen water
ionizers, among others. As for fire-fighting equipment, business remained
strong thanks to orders received for large-scale contracts.＿＿＿＿＿＿As a result of the above, revenue during the first half of the current fiscal
year was 51,691 million yen, a year-on-year decrease of 11,098 million
yen (-17.7 percent). Operating income was 5,696 million yen, an increaseof 6 million yen (+0.1 percent) year-on-year. Profit attributable to ownersof parent for the period was therefore 3,981 million yen, an increase of261 million yen (+7.0 percent) year-on-year.＿＿＿＿＿＿＿＿＿＿＿＿
The company maintained an interim dividend of 30 yen per share.＿＿＿We would like to ask all our shareholders for their continuous
understanding and support of the activities of the Asahi Holdings Group.

President & CEO

Topics
Renewal of the business office －Asahi Pretec Fukuoka office －Asahi Pretec, one of our group companies had renewal of Fukuoka
office as the key center of precious metals recycling and environmental
preservation business in Kyusyu area.＿＿＿＿＿＿＿＿＿＿＿＿＿＿
Internal layout was designed to realize safety and work efficiency, also
free address system has been newly implemented in the office area.

Full view of Fukuoka office

New contents released to Asahi Holdings website
We have newly added special contents:“Innovation & Challenge”“Where you can meet Asahi” to our website.
Our business is introduced with illustrations and movies inthe contents.
*URL
Innovation & Challenge：
http://www.asahiholdings.com/english/special/
Where you can meet Asahi：
http://www.asahiholdings.com/english/scene/Consolidated Financial Highlights (1/2)(Millions of yen)

Condensed Consolidated Statements of Financial Position
As ofMarch
31,2016(Millions of yen)

Condensed Consolidated Statements of Income

As of
September
30,2016

The six month
ended
September 30,
2015

The six month
ended
September 30,
2016

Revenue

62,79051,691

Cost of sales

49,121

39,105Gross profit

13,66912,586

Selling, general andadministrative expenses

7,739

7,483Other operating income

33629

Other operating expenses

273

35

Operating income

5,690

5,696

Finance income

188

Finance cost

103

206

Profit before tax

5,605

5,499

Income tax expenses

1,817

1,464

Profit

3,787

4,034

Profit attributable to owners of parent

3,720

3,981

67

52

3,787

4,034

ASSETS
Current assets

49,73744,227

Noncurrent assets

51,861

49,573

Property, plant and equipment

31,78831,611Intangible assets

17,892

16,189Other assets

2,180

1,772

101,599

93,801

Total assets
LIABILITIESCurrent liabilities

28,917

20,931

Noncurrent liabilities

23,69323,443

Total liabilities

52,61044,374

EQUITY
Capital stock

4,480

4,480

Capital surplus

6,112

6,119

Treasury stock(5,371)(5,371)Retained earnings

45,845

48,813

Other components of equity(2,476)(5,062)

48,591

48,980396

445

Total equity

48,98849,426

Profit attributable to non-controllinginterests

Total liabilities and equity

101,599

93,801

ProfitTotal equity attributable to owners of
ParentNon-controlling interests

Notes: Amounts above are rounded down to unit of display

Notes: Amounts above are rounded down to unit of display

Consolidated Financial Highlights (2/2)(Millions of yen)

■Net Sales (Millions of Yen)

Interim

JGAAP←

Condensed Consolidated Statements of Comprehensive Income

Full-term→IFRS

160,000

The six month
ended
September 30,
2015

The six month
ended
September 30,
2016

94,25480,000

3,787

4,034

40,000

Other comprehensive income,net of tax(403)(2,617)0Comprehensive income

3,384

1,416

62,79051,63247,884

Profit119,352

111,417

120,000

2014/03

2015/03

51,691

2016/03■Operating Income (Millions of Yen)

2017/03

Interim

Full-term

15,000Notes: Amounts above are rounded down to unit of display(Millions of yen)

Condensed Consolidated Statements of Cash Flows

5,260

Net cash provided by (used in)operating activities

4,334

The six month
ended
September 30,
2016
741

(744)

(1,803)

Net cash provided by (used in)financing activities(871)(5,264)

Effect of exchange rate change on
cash and cash equivalents

301(296)5,696

0
2014/03

2015/03

2016/03■Net Income per Share (Yen)
183.50

200

89.25

100

Full-term

176.89122.13113.43100.792017/03

Interim

150

Net cash provided by (used in)investing activities

87.48

500

Net increase (decrease) in cash
and cash equivalents

3,020

Cash and cash equivalents at
beginning of period

10,841

16,564

Cash and cash equivalents at theend of period

13,861

9,942

Notes: Amounts above are rounded down to unit of display

6,057

5,690

4,674

5,000

The six month
ended
September 30,2015

10,480

9,631

10,000(6,622)

2014/03

2015/03

2016/032017/03■ROE (%)

ＲＯＥ

15%

13.6%

13.5%
11.9%

10%

5.8%

5%

0%
2014/03

2015/03

2016/03*Figures from March 2016 are presented on the basis of IFRS.

2017/03

forecast

Stock Information / Corporate Profile■ Stock Information
Total number of authorized shares
Total number of shares outstanding
Number of shares per trading unit
Number of shareholders(As of September 30, 2016)

129,000,000 Shares
36,254,344 Shares
100 Shares
10,229 Person■ Principal shareholders
Number ofShares-Held(ThousandShares)

Ratio ofShareHolding(%)

Japan Trustee Services Bank, Ltd.
(Trust account)

1,930

5.32

TERA ENTERPRISES Co., Ltd.

1,350

3.72

Mitsuharu Terayama

882

2.43

The Master Trust Bank of Japan, Ltd.
(Trust account)8612.38

Name of Shareholders■ Corporate Profile
Corporate name
Establishment
Foundation
Capital
Number of employees
Business lines(As of September 30, 2016)

Asahi Holdings, Inc.
April 2009
July 1952¥4,480 million
1,972(Consolidated)
Recycling, refining and sales of precious metals
Environmental preservation(Industrial waste treatment and other environmental
preservation business)

Manufacturing and sales, construction of life andhealthcare related equipment

Subsidiaries
JW Glass Recycling Co., Ltd.
Asahi Pretec Corp.
Taiyo Chemical Co., Ltd.
Japan Waste Corporation
Asahi Americas Holdings,Inc Kyodo Chemical Co., Ltd.
Iyotec Co., Ltd.
JW Logistics Co., Ltd.
FUJI MEDICAL INSTRUMENTS MFG. Co., Ltd.
Nihon Chemitec Co., Ltd.
Fuji Rozai Co., Ltd.
INTER CENTRAL, INC.
Ecomax Incorporated
KOEIKOGYO CO., LTD.
Overseas subsidiaries

Masamichi Terayama

802

2.21

Asahi Employee Stock Ownership Plan

717

1.98

K&M Co., Ltd.

700

1.93

Asahi G&S SDN. BHD. (Malaysia)
Shanghai Asahi Pretec Co., Ltd. (China)
Asahi Pretec Korea Co., Ltd. (Korea)
Asahi Pretec Taiwan Co., Ltd. (Taiwan)
Asahi Shih Her Technologies Co., Ltd.(Taiwan)
Asahi Refining USA Inc. (USA)Asahi Refining Canada Ltd. (Canada)■ Board of Directors
CBNY-GOVERNMENT OF NORWAY
Japan Trustee Services Bank, Ltd.
(Trust account 9)
STATE STREET BANK AND TRUSTCOMPANY 505025

684

1.89

538

1.49519

1.43※Total Number of Treasury Shares (3,432,787 shares) are excluding from the above.

President & CEO: Mitsuharu Terayama
Directors:
Yoshikatsu Takeuchi

Tomoya Higashiura
Keitaro Shigemasa
Kazuo Kawabata

Directors: Shoji Morii *1 *2

Yukio Tanabe *1
Kazuhiko Tokumine *1 *2
Hiroharu Okubo *1 *2*1 Audit and Supervisory Committee member*2 Outside officers pursuant to Article 2, paragraph (3) item (v) of Ordinance for

Enforcement of the Companies Act.

Head Offices
Asahi Holdings Group operates the business in three segments: the precious metal business, the environmental preservation business, and the life& health business under Asahi Holdings, Inc. which is the pure holding company.

■ Head Offices

KOBE

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

TOKYO

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

General Information● Business Term
● Record Date
● Fixed Date of Dividend PaidApril 1 - March 31
March 31

● Fixed date of Interim Dividend Paid

September 30● Shareholder Registry Administrator● Transfer Agent

Mitsubishi UFJ Trust and Banking Corporation

March 31

Mitsubishi UFJ Trust and Banking Corporation● Contact of the Agent

3-6-3 Fushimi-cho, Chuo-ku, Osaka City, Osaka 541-8502 JAPANMitsubishi UFJ Trust and Banking Corporation Osaka Stock Transfer Agent Dept.

● Public NoticeElectronic public notice http://www.asahiholdings.com/