Consolidated Financial Results for the Second Quarter Ended September 30, 2014
Asahi Holdings, Inc.
October 29, 2014
Stock code:

5857

Shares listed:Tokyo Stock Exchange (First Section)

U R L:

http://www.asahiholdings.com

Representative

Mitsuharu Terayama, President and CEO

For further information please contact:

Keitaro Shigemasa, Director(Phone) +81-3-6270-1833

Filing date of Quarterly Report:

November 13, 2014

Scheduled date of start of dividend payment:
November 26, 2014
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, 2014 (From April 1, 2014 to September 30, 2014)(1) Results of operations (cumulative)(Percentage changes relative to previous corresponding period)
Net sales
The six months ended
September 30, 2014
September 30, 2013
(Note) Comprehensive income

Millions of yen％

Operating income

Ordinary income

Millions of yen

Millions of yen％

51,632
7.8
4,674 (11.1)
47,884 (2.9)
5,260－The six months ended September 30, 2014
The six months ended September 30, 2013
Net income per share

Net income％

Millions of yen％

4,713 (12.6)
2,909 (11.2)
5,395
－
3,277
－
3,197 million yen (10.5％)
3,572 million yen －Diluted net income per share

The six months ended
Yen
Yen
September 30, 201489.25－
September 30, 2013100.79－(Note) Retrospective restatement was carried out for the fiscal year ended March 31, 2014, in line with a change inaccounting policy. Consequently, year-on-year changes are not provided.
(2) Financial Position
Shareholders’ equity
ratio
As of
Millions of yen
Millions of yen％
September 30, 2014
75,02749,006
64.8
March 31, 2014
66,112
46,491
70.1(Reference) Shareholders’ equity
As of September 30, 2014 48,592 million yen
As of March 31, 2014
46,347 million yen
Total assets

Net assets

2. Dividend payments

Year ended March 31, 2014
Year ending March 31, 2015
Year ending March 31, 2015
(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, 2014 to March 31, 2015)(Percentage changes relative to previous corresponding period)
Net income
Operating income
Ordinary income
Net income
per share

Net sales
Millions of Yen

Year ending March 31, 2015

111,000％

17.8

Millions of Yen

10,400(Note) Revisions in forecast in the current quarter : No％

Millions of Yen％

8.0

10,300

3.1

Millions of Yen ％

6,400

7.2

Yen

196.14

*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: No(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, 201436,254,344 shares
As of March 31, 201436,254,344 shares(ii) Number of treasury shares at the quarter end
3,631,657 shares
As of September 30, 2014
As of March 31, 2014
3,672,457 shares(iii) Averaged number of shares during the period (quarterly cumulative period)
32,603,351 shares
Six months ended September 30, 2014
Six months ended September 30, 2013
32,519,015 shares*Indication regarding the situation of quarterly review procedures
These financial results are not subject to the quarterly review procedures pursuant to the Financial
Instruments and Exchange Act. As of the disclosure of the financial results, the procedures for reviewing
quarterly financial statements pursuant to the Financial Instruments and Exchange Act are in progress.
*Statement regarding the proper use of financial forecasts and other special remarks
These forecast performance figures are based on the information currently available to the 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 2 “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 ...................................................................................................... 2
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 .... 5
Consolidated Statements of Income for the six months ended September 30, 2014 ........................................ 5
Consolidated Statements of Comprehensive Income for the six months ended September 30, 2014 .............. 5(3) Consolidated Statements of Cash Flows ........................................................................................... 6(4) Notes on Consolidated Financial Statements ................................................................................... 7(Notes on Assumptions for Going Concern) ........................................................................................................ 7(Notes in case of Significant Changes to Shareholders’ Equity) ........................................................................ 7(Segment Information, etc.) ................................................................................................................................. 7

1

1. Qualitative Information(1) Consolidated Business Performance
During the first two quarters of the current fiscal year (April 1, 2014 through September 30, 2014),
although personal consumption fell after surging prior to the consumption tax increase, and corporate
production activity and capital investment showed some weakness, the Japanese economy as a wholecontinued its trend of gentle recovery.
Under these economic conditions, in the precious metal recycling business, the volume of collection in the
catalyst sector increased, so the volume of collection of platinum and palladium was higher than it was for thecorresponding period a year earlier. The average sales prices for platinum and palladium were higher thanthey were a year earlier. The volume of collection of gold fell, however, mainly due to a lower volume ofcollection in the jewelry sector, while a decrease in the volume of collection in the photographic sensitive
material sector led to a lower volume of collection of silver compared to the previous year. The average sales
prices for gold and silver were lower than they were during the corresponding period a year earlier.
In the environmental preservation business, the volumes of waste liquid, medical-related waste, recycled
glass, and so on collected surpassed those of the same term one year earlier.
The life and health business, newly structured with INTER CENTRAL, INC., KOEIKOGYO CO., LTD.,
which became a wholly owned subsidiary of our group in March 2014, and FUJI MEDICAL INSTRUMENTS
MFG. CO., LTD., which became a subsidiary in July 2014, posted satisfactory results.
As a result of the above, as consolidated results for the six-month period, we recorded net sales of 51,632
million yen, up 3,748 million yen (+7.8%) year-on-year; operating income of 4,674 million yen, down 585
million yen (-11.1%) year-on-year; ordinary income of 4,713 million yen, down 682 million yen (-12.6%)
year-on-year; and net income of 2,909 million yen, down 367 million yen (-11.2%) year-on-year.
Looked at by segment, sales in the precious metal recycling business were 37,150 million yen, down 2,999
million yen (-7.5%) year-on-year; sales in the environmental preservation business were 7,336 million yen, up
389 million yen (+5.6%) year-on-year; and sales in the life and health business were 7,145 million yen, up
6,359 million yen (+808.5%) year-on-year.

(2) Consolidated Financial Position
As of September 30, 2014, total assets amounted to 75,027 million yen, up 8,914 million yen from theprevious fiscal year end. This was due mainly to the increase of 6,569 million yen in goodwill and the increaseof 2,874 million yen in notes and accounts receivable-trade.
Total liabilities amounted to 26,021 million yen, up 6,400 million yen from the previous fiscal year end.
This was due mainly to the increase of 3,299 million yen in notes and accounts payable-trade and the increaseof 4,082 million yen in loans payable.
Net assets totaled 49,006 million yen, up 2,514 million yen from the previous fiscal year end. This was due
mainly to the increase in retained earnings resulting from the recording of 2,909 million yen in net income.
As a result, the shareholders’ equity ratio changed to 64.8%, from 70.1% at the end of the previous fiscal
year.
Net cash provided in operating activities amounted to 4,260 million yen due mainly to 4,701 million yen ofincome before income taxes and minority interests, 842 million yen of depreciation and amortization, 320
million yen of decrease in inventories, 592 million yen of increase in notes and accounts receivable-trade, and
4,039 million yen of income taxes paid.
Net cash used in investing activities amounted to 7,642 million yen due mainly to 7,163 million yen ofpurchases of stocks of subsidiaries and affiliates.
Net cash used in financial activities amounted to 601 million yen due mainly to 332 million yen of net
increase in loans payable and 982 million yen of cash dividends paid.
As a result, cash and cash equivalents as of September 30, 2014, decreased 3,991 million yen from March
31, 2014, to 5,478 million yen.

(3) Consolidated Performance Forecasts
Consolidated performance forecast for the fiscal year has not changed from the forecast announced on July29, 2014.

2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(Change in valuation method for inventories)
Our method for valuation of inventories has been mainly the weighted-average method (the method of
write-downs based on the decrease in profitability in order to calculate the inventory value on the balance
sheet). Beginning with the first quarter of the current fiscal year, we changed to mainly themoving-average method (the method of write-downs based on the decrease in profitability in order tocalculate the inventory value on the balance sheet).
The aims of this change are to respond to fluctuations in metals prices, carry out management of
inventories by item and by process precisely and on time, value inventories, and perform periodic
accounting of profit and loss more accurately. It accompanies the introduction of a new IT system.
Because we did not preserve the inventory receipts and payments records that would be needed in orderto calculate unit costs with the moving-average method for past fiscal years, it is impossible toretroactively apply this accounting policy to determine cumulative effects. Therefore, the book values ofinventories at the end of the previous fiscal year were carried over as initial balances for the current fiscal
year, with the moving-average method being used from the beginning of this term.
Compared to the past method, it increases operating income, ordinary income, and quarterly income
before income taxes and others for the second quarter of the current term by 74 million yen each, andquarterly net income by 48 million yen.
(Application of the "Practical Solution on Transactions of Delivering the Company’s Own Stock to
Employees etc. through Trusts")
We began applying the "Practical Solution on Transactions of Delivering the Company’s Own Stock to
Employees etc. through Trusts" (ASBJ PITF No. 30, December 25, 2013) during the first quarter of thecurrent fiscal year. When we deliver treasury stock to the trust, we recognize the disposal balance. Profit
or loss related to sales of shares by the trust to the employee stock ownership plan, dividends paid by us onshares held by the trust, and net charges related to the trust are included by us as liabilities. This changein accounting policy was applied retrospectively to past fiscal years, and the results are included in therelevant quarterly financial statement and full-year financial statement.
Consequently, compared with figures before this retroactive application, as of the end of the previous
fiscal year, other current liabilities increased by 124 million yen, and capital surplus decreased by 69
million yen, retained earnings decreased by 67 million yen, and treasury stock decreased by 4 million yen.
This retroactive application had only a slight impact on profit and loss during the second quarter of theprevious fiscal year.

33. Consolidated Financial Statements(1) Consolidated Balance Sheets

ASSETS
Current assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Total noncurrent assets
Total assets

As ofMarch 31,
2014

As of
September 30,
2014

Millions of yen

Millions of yen

As ofSeptember 30,
2014
Thousands of
U.S. dollars

9,640
11,319
4,094
8,596
1,107
2,879
ሺ120)
37,517

5,567
14,193
4,613
9,350
1,955
1,885
(127)
37,43850,871
129,678
42,14885,435
17,86917,226(1,168)342,059

8,979
13,122
2,304
24,407

9,716
14,512
2,470
26,69988,780132,590
22,569243,939

2,021
835
2,856
1,331
28,595
66,112

8,590
847
9,438
1,451
37,58975,02778,491
7,743
86,234
13,265
343,438
685,497

LIABILITIESCurrent liabilities
Notes and accounts payable - trade
3,643
6,942
63,432
Short-term loans payable
495
2,995
27,367
Current portion of long-term loans payable
143
324
2,965
Income taxes payable
2,635
1,736
15,863
Provision for bonuses
600
671
6,131
Provision for directors' bonuses
39－－
Provision for repairs
101
61
562
Provision for product warranties
16
69
633
Provision for sales rebates
618
5,647
－
Provision for sales returns
25
234
－
Other
4,668
3,911
35,734
Total current liabilities
12,342
17,355
158,568
Noncurrent liabilities
Long-term loans payable
5,419
6,820
62,318Net defined benefit liability
122
116
1,061
Other
1,736
1,728
15,796
Total noncurrent liabilities
7,278
8,665
79,176
Total liabilities
19,621
26,021
237,744
NET ASSETS
Shareholders' equity
Capital stock
4,480
4,480
40,939
Capital surplus
6,038
6,038
55,174Retained earnings
40,64842,576
389,004
Treasury stock(5,379)(5,321)(48,617)
Total shareholders' equity
45,78847,774
436,500
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
15
19
177
Deferred gains or losses on hedges
ሺ121)
174
1,592
Foreign currency translation adjustment
665
624
5,705
Total accumulated other comprehensive income
559
817
7,473
Subscription rights to shares
77
77
712
Minority interests
66
335
3,068
Total net assets
46,49149,006447,753
TOTAL LIABILITIES AND NET ASSETS
66,11275,027685,497
U.S. dollar amounts represent translations using the approximate exchange rate on September 30, 2014 of
Yen109.45=US$1, and are included solely for the convenience of readers.

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

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Non-operating expenses
Ordinary income
Extraordinary income
Extraordinary loss
Income before income taxes and minority interests

Income taxes-current
Income taxes-deferred
Total income taxes
Income before minority interests
Minority interests in income (loss)
Net income

The six months
ended September 30,
2013
Millions of yen

The six months
ended September 30,
2014
Millions of yen

The six months
ended September 30,
2014
Thousands of
U.S. dollars

47,88439,981
7,902
2,642
5,260
161
25
5,395
39
113
5,321
2,069
(24)
2,044
3,277
(0)
3,277

51,632
41,810
9,822
5,148
4,674
75
36
4,713
14
27
4,701
1,641
118
1,759
2,941
31
2,909

471,749
382,004
89,74547,03942,706693
333
43,066133
247
42,952
14,996
1,082
16,07826,874287
26,587

Consolidated Statements of Comprehensive Income for the six months ended September 30, 2014
The six months
ended September 30,
2013
Millions of yen

The six months
ended September 30,
2014
Millions of yen

The six months
ended September 30,
2014
Thousands of
U.S. dollars

3,277

2,941

26,874

0
70
210

4
295
(29)

40
2,700
(266)

13

(14)

(131)

295
3,572

256
3,197

2,344
29,217

3,569
3

3,168
29

28,948269

Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Share of other comprehensive income of associates
accounted for using equity method
Total other comprehensive income
Comprehensive income(Comprehensive income attributable to)Comprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests

U.S. dollar amounts represent translations using the approximate exchange rate on September 30, 2014 of
Yen109.45=US$1, and are included solely for the convenience of readers.

5(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 provision of retirement benefits
Increase (decrease) in net defined benefit liability
Interest and dividends income
Interest expenses
Loss (gain) on sales and retirement of noncurrent assets
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accounts payable-other
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Proceeds from collection of guarantee deposits
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchases of intangible assets
Purchases 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
Repayments of long-term loans payable
Repayments of finance lease obligations
Purchases of treasury stock
Proceeds from sales of treasury stock
Cash dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

The six
months ended
September 30,
2013
Millions of yen

The six
months ended
September 30,
2014
Millions of yen

The six
months ended
September 30,
2014
Thousands of
U.S. dollars

5,321
880
102
193
5
－
(14)
12
9
3,324
(399)
663
(244)
506
10,36121(12)(1,118)
746
9,997

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

42,952
7,694
115
2,569
－
(56)
(149)
236
92
(5,416)
2,929
5,001
3,502
3,271
62,739179(238)(36,905)
13,15638,931

－
－
5
(285)
25
(170)
－
(52)
(477)

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

(5)
753
851
(8,101)
332(357)(65,448)
2,153(69,823)(9,800)
5,100
(500)
(24)
(0)
72
(981)
(6,134)
174
3,560
4,141
7,701

2,500
－
(2,167)
(21)
(0)
70
(982)
(601)
(8)
(3,991)
9,470
5,478

22,841－(19,806)
(197)
(3)
644
(8,977)(5,496)(81)(36,469)
86,52450,055

U.S. dollar amounts represent translations using the approximate exchange rate on September 30, 2014 of
Yen109.45=US$1, and are included solely for the convenience of readers.

6(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, 2013(From April 1, 2013 to September 30, 2013)
1. Information on sales and income (loss) by reporting segment
Life and healthbusiness(Millions of Yen)

Precious metal recycling
business

Environmental
preservationbusiness

1) Customers
2) Intersegment

40,150
－

6,947
－

786
－

47,884－

Total

40,1506,947

786

47,884

4,496

750

12

5,260

Total

Net sales

Segment income(Note) Total segment income matches operating income recorded on the consolidated statements of income.
2. Impairment losses on noncurrent assets, goodwill, etc. by reporting segment(Significant impairment loss related to noncurrent assets)
Accompanying the relocation of a subsidiary's business premises, the book value of certain real estateand buildings 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 30 million yen in the precious metal
recycling segment and 68 million yen in the environmental preservation segment.
Ⅱ 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
Life and healthbusiness(Millions of Yen)

Precious metal recycling
business

Environmental
preservationbusiness

37,150

7,336

7,145

51,632－－－－37,150

7,336

7,145

51,632

3,609

801

262

4,674

Total

Net sales
1) Customers
2) Intersegment
Total
Segment income(Note) Total segment income matches operating income recorded on the consolidated statements of income.
2. Changes in reporting segments
In accordance with the acquisition of shares of FUJI MEDICAL INSTRUMENTS MFG. CO., LTD.,aiming to contribute to the appropriate disclosure of management information, the previous segment of“Environmental preservation business” has been divided into two segments of “Environmental preservation
business” and “Life and health business”.
Accordingly, our reporting segments are following three: “Precious metal recycling business”,“Environmental preservation business” and “Life and health business”.
The main line of “Environmental preservation business” is collection, transportation of industrial wastes
and intermediate treatments.
The main line of “Life and health business” is manufacturing and selling of health-related products suchas massaging tools, hearing aids, manufacturing and selling of electric heating equipments, design andconstruction of radiant air-conditioning systems, design and construction of facilities for disasterprevention.
An retroactively adjusted version of ”Segment information” presented in the earnings report for thesecond quarter of the previous fiscal year has been published to reflect the change in reporting segments.

7