Business Report for FY2013
From April 1, 2013 to March 31, 2014

To Our Shareholders
I would like to express our cordial appreciation for yourcontinuous support and loyal patronage.----------------------During the 5th business term (April 2013 through March2014), the Japanese economy showed a tone of gentle
recovery as the yen fell and share prices rose against thebackdrop of the Government’s economic policies andmonetary easing by Bank of Japan, including improved
corporate profits and rebounding consumer spending..--------------------------------------------------------Under these economic conditions, in the precious metal
recycling business, factors such as increased collection
volume of electronic parts led to a greater volume ofcollection of gold compared to the previous year. However,
because the volume of collection of flat panel displays
decreased, the collection volume of silver, etc., was lower
than that of the same term the previous year. Although theaverage sales prices for gold, platinum, palladium, andothers were higher than they were during the corresponding
period a year earlier, the average sales price for silver waslower. In the environmental preservation business, thecollection volumes of medical-related waste, recycled glass,and so on surpassed those of the same term one year earlier.
------------------------------------------------＿
Our Group have focused on execution of our growthstrategies that we have outlined in the 6th mid-term business
plan; “Business expansion in the Asian markets”,“Broadening business domain through M&A”, and“Streamlining group management”. As part of the strategies,
in the precious metal recycling business, our Taiwan factorycommenced its operation in December 2013. In theenvironmental preservation business, KOEIKOGYO CO.,LTD. become a wholly owned subsidiary of our groupthrough M&A in March 2014.---------------------------Consequently, operating results for the current fiscal year
were as follows: consolidated net sales 94,254 million yen,operating profit 9,629 million yen ordinary profit 9,985 million
yen, and net income 5,969 million yen.---------------＿＿＿＿＿＿＿＿As for dividends during the coming fiscal year, we plan on aninterim dividend of 30 yen per share and a year-end dividendof 30 yen per share, for a total annual dividend of 60 yen pershare. ＿＿＿＿＿＿＿
We ask all our shareholders for their continuous
understanding and support of the activities of the Asahi
Holdings Group. ＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿CEOTOPICS
Launched Factory Operation in Taiwan

Incorporation of KOEIKOGYO into Our Group

Asahi Pretec Taiwan, which was established in February
2013, launched its factory operation in December 2013 atHsinchu Industrial District. The factory engages in both
“Precious Metal Recycling Business” and “Precision CleaningBusiness”. In the recycling business, we recover preciousmetals with efficiency. In the precision cleaning business, we
perform precious metal separation and cleaning technology
from parts of semiconductor/LED manufacturing equipment.
The precision cleaning business are conducted by a
subsidiary which was established as JV between a leading
local company of the precision cleaning business and Taiwan
Asahi Pretec Corp. ---------------------------------------------------------In March 2014, KOEIKOGYO CO., LTD. was incorporated
into our group, which engages in design and construction offacilities for disaster prevention, air-conditioning andsanitation to public facilities, hospitals, cultural andcommercial institutions, etc. By KOEIKOGYO becoming
one of our group companies, we will boost our growthpotential and improve our profitability
with expectation of complementary
relationship in the air-conditioning
facility business with INTER
CENTRAL, Inc., which became one ofour group companies in July 2012. ---－ － － － － － － － －Taiwan is the agglomerations of high-tech industries such as
electronics, semiconductor business, etc. Especially, Hsinchu
Science Park, where our factory is adjacent to, is congregatedwith world-class companies, factories and researchlaboratories. We will continuously expand our precious metal
recycling business in Taiwan.

Taiwan Asahi Pretec
Taiwan Factory (Hsinchu)

Selection as Composition Stock “JPN-Nikkei
Index-400”
In November 2013, out stock has been selected as one of theissues to compose a new index “JPX-Nikkei Index 400”
calculated by Nikkei Inc., Japan Exchange Group and Tokyo
Stock Exchange. The new index “JPX-Nikkei 400” will becomposed of companies with high appeal for investors, whichmeet requirements of global investment standards such as
efficient use of capital and investor-focused management
perspectives. Stocks are selected on the basis of scoring
quantitative indicators such as market liquidity, ROE,operating profit, market capitalization, etc. as well as
qualitative factors. We will contribute toward establishing asustainable society through development of our businessactivities. ---------------------------------------------------------------------－－－－－－－＿＿＿

Consolidated Financial Highlights
Net Sales (millions of yen)InteriumO r dinary Income (millions of yen)

Full‐term

12,000

11,13010,508140,000

96,368100,000

94,2546, 00052,48649,324

7,794

8, 00072,74880,000

9,985

10,000110,504

120,000

60,000Interim Full-term

151,094

160,000

6,034

5,475

5,394

47,8844, 0002,955

40,0002, 00020,0000
2011/3

2012/3

2013/3

Interium

Net Income (millions of yen)0

2014/3

2011/3

6,144

4,000

Interim

Full-term

190.46183.43

180

6,000

160

139.24

4,518

5,000

2014/3

183.2

5,969

5,926

2013/3Net Income per Share (Y en)

Full-term

200

7,000

2012/3

140
120

3,488

3,202

3,276

107.9399.32

100.76

100

3,000

80

1,555

2,000

60

47.97

40

1,000

20

0
2011/32102/3

2013/30

2014/3

2011/3

Net Assets/Total Assets/Equity Ratio (millions of y en, %)80,000Net Asset

Total Asset

38,90240,00046,623

1,426.55
1,198.77

1,200.00
65%42,012

2014/3Full-term

1,600.00
1,400.00

67.3%
66.6%

50,00066,11970.3%

62,26058,31559,14360,0002013/3

Net Assets per Share (Yen)75%

Equity Ratio

70,0002102/3

1,288.56

1,062.30

1,000.00
800.0034,34158.0%

30,00055%

600.00400.0020,000200.0010,000045%
2011/32102/3

2013/3

2014/30.00
2011/32102/3

2013/3

2014/3

Consolidated Financial Statements(Millions of Yen)

Consolidated Balance Sheet
As of March 31,
2013

As of March 31,
201433,29837,524

Cash and deposits

4,141

9,640

Notes and accounts receivable-trade12,539

11,319Merchandise and finished goods

5,067

4,094

Current position of long-term loans payable

Work in process

8,114

8,596

Income taxes payable

ASSETSAs of March 31,2013

As of March 31,
2014

18,553

12,217

Notes and accounts payable-trade

2,463

3,643

Short-term loans payable

10,245

495

1,500

143

349

2,635

LIABILITIESCurrents Assets

Currenet Liabilities

3,435

3,872

28,962

28,595

Property, plant and equipment

24,95924,407Long-term loans payable

Buildings and structures

9,281

8,979

Land

13,031

13,122Other

OtherNoncurrentAssets

3,995

5,300

1,694

7,278

-

5,419

Others

1,694

1,858

Total Liabilities

20,24819,496

OthersNoncurrent Liabilities

2,647

2,304

NET ASSETS

Intangible Assets

3,177

2,856

Shareholders' equity

41,75845,920Goodwill

2,380

2,021

Capital Sstock

4,480

4,480

Other797

835

Capital surplas

6,087

6,108

824

1,311

Retained earnings

36,69740,715

Treasury stock

Investment and other assets

Total Assets
Notes: Amounts above are rounded dow n to unit of dislay

62,26066,119(5,507)(5,834)

Accumulated other comprehensive
income116

559

Subscription rights to share

77

77

Minority Interests

5966

Total Net Assets

42,012

46,623

Total Liabilities and Net Assets

62,26066,119

Consolidated Financial Statements
Con solidated State me nts of In come(Millions of yen)

Con solidated Stateme nt of Cash Flow

(Millions of Yen)

The Fiscal Year

The Fiscal Year

The Fiscal Year

The Fiscal Year

Ended March 31,
2013

Ended March 31,
2014

Ended March 31,
2013

Ended March 31,
2014

Net Sales

96,36894,254

Net cash provided by (used in)operating activities

ᇞ419

14,045

Cost of sales

83,55779,018Gross profit

12,811

15,235

ᇞ2,064

ᇞ1,090

Selling, general andadministrative expenses

Net cash provided by (used in)investing activities

5,316

5,606

Operating income

7,495

9,629

Net cash provided by (used in)financing activities

2,603

ᇞ8,008Non-operating income

363

392

Non-operating expenses

6436

Effect of exchange raate changon cash and cash equivalents

494

381

7,794

9,985

Extraordinar income

1446

Net incrase in cash andcash equivalents

613

5,328

Extraordinary loss

459

136

Income before income taxes andminority interests

7,349

9,896

3,527

4,141

Income tases-current

2,525

3,942

Income taxes-deferred305

ᇞ144,141

9,470

Income before minority
interests

4,518

5,969

Net income

4,518

5,969

Ordinary Income

Notes: Amounts above are rounded dow n to nit of display

Cash and cash equivalents at
beginning of period

Cash and cash equivalents at
the end of period

Notes: Amounts above are rounded dow n to nit of display

Stock Information/Corporate Profile■ Total number of authorized shares■ Total number of shares outstanding

129,000,000 shares
36,254,344 shares■ Number of shares per trading unit
■ Number of shareholders■ Principal shareholders

100 shares
9,713 persons

Number ofShares-Held(Thousand Shares)

Ratio of ShareHolding(%)

TERA ENTERPRISES Co., Ltd.

1,350

3.72

Japan Trustee Services Bank, Ltd.
(trust account)

1,076

2.96

Mitsuharu Terayama

882

2.43

The Master Trust Bank of Japan Ltd.
(trust acount)

806

2.22

Masamichi Terayama

802

2.21

K&M Co., Ltd.

700

1.93

Asahi Employee Stock Ownership Plan

645

1.77

The Bank of New York,Treaty JASDEC Account

557

1.53

Junichi Mitsuzono

488

1.34

Credit Suisse (Luxembourg) S.A.
on behalf of clients

475

1.31

Name of Shareholders(As of March 31, 2014)■ Corporate Profile
Corporate nameEstablishment
Foundation
Capital
Number of employees
Business lines

Asahi Pretec Corp.

Asahi Holdings, Inc.
April 2009
July 1952 (as Asahi Pretec Corp.)¥4,480 million
1,360 (Consolidated)
Recycling of precious & rare metals
Industrial waste treatment(Industrial waste treatment and otherenvironmental preservation business)
Japan Waste Corporation■ Board of Directors and Corporate Auditors (as of June 17, 2014)※Total Number of Treasury Shares (3.518,557 shares) are excluding from the above.

President& CEO:
Mitsuharu Terayama
Directors: Yoshikatsu Takeuchi
Tomoya Higashiura
Masayuki Hirano
Masaki Hirano
Keitaro Shigemasa
Kazuo Kawabata
Shoji Morii*

Standing
Statutory Auditor: Yukio Tanabe
Statutory Auditors: Kazuhiko Tokumine*
Junzo Kojima**Outside officers pursuant to Article 2, paragraph (3) item (v) of Ordinancefor Enforcement of the Companies Act.

Business Network■ Head Offices

KOBE

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

TOKYO

Sapia Tower, 1-7-12 Marunouchi, Chiyoda-ku, Tokyo, 100-0005, Japan
Tel. +81-3-6270-1833 (Pilot number) Facsimile +81-3-6270-1859
http://www.asahiholdings.com■ Research Laboratory-------Technical Research Center (Kobe)■ Plants■ Bases with
ISO 14001

Asahi Pretec(7 locations)

Saitama, Amagasaki, Kobe, Ehime,
Kitakyushu, Kitakyushu Hibiki, Fukuoka

Japan Waste(3 locations)

Yokohama, Ohgicho (Kawasaki),Aikawa (Kanagawa)■ Bases with
ISO 9001■ Recycling Centers■ Offices

Saitama, Chiba, Amagasaki
Sapporo, Aomori, Sendai, Niigata,
Kitakanto, Kanto, Yokohama,Kofu, Shizuoka, Nagoya, Hokuriku,Hanshin, Kobe, Okayama, Hiroshima,Shikoku, Kitakyushu, Fukuoka,Kagoshima, Okinawa (20 locations)■ Bases withISO 27001■ License forCollection andTransportation■ License for
Disposal

Head office (Kobe), Technical Research Center,Sapporo, Aomori, Sendai, Kitakanto,Chiba Recycling Center, Saitama Recycling Center,Yokohama, Kofu, Shizuoka, Nagoya, Hokuriku,Hanshin, Kobe, Okayama, Hiroshima, Shikoku,
Kitakyushu, Fukuoka, Okinawa
Technical Research Center, Saitama,Ehime, Fukuoka
Hanshin Office, Amagasaki Recycling Center,Saitama Recycling CenterAll prefectures andgovernment ordinance cities
15 prefectures and9 government ordinance cities

General Information● Business Term
● Record DateApril 1 - March 31
March 31

● Fixed Date of Dividend PaidMarch 31● Fixed date of Interim Dividend Paid

September 30● Shareholder Registry Administrator

Mitsubishi UFJ Trust and Banking Corporation● Transfer Agent

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.
TEL (0120) 094 -777
Electronic public notice http://www.asahiholdings.com/● Public Notice