Consolidated Financial Results for the Second Quarter Ended September 30, 2016
Asahi Holdings, Inc. [IFRS]October 28, 2016

Stock code:

5857

Shares listed:Tokyo Stock Exchange (First Section)

URL:
Representative:

http://www.asahiholdings.com
Mitsuharu Terayama, President & CEO
Koji Sasaya, Human Resources and General Administration

For further information please contact:

Department, Corporate Planning & Communications
Department General Manager

Filing date of Quarterly Report:(Phone) +81-3-6270-1833
November 11, 2016

Start of dividend payment:

November 25, 2016

Supplementary materials for the financial results:
Investor conference for the financial results:No
Yes (for institutional investors, analysts)(Rounded down to the nearest million yen)
1. Results of the six months ended September 30, 2016 (From April 1, 2016 to September 30, 2016)(1) Results of operations (cumulative)(Percentage: Changes relative to corresponding previous period)
OperatingincomeProfit before tax

ProfitProfitattributable toowners of parent

Total
comprehensive
incomeMillions of yen %Millions of yen %Millions of yen %Millions of yen %Millions of yen %Revenue
The six months ended
September 30, 2016
September 30, 2015

Millions of yen%

51,691 (17.7)
62,790 －5,696 0.1
5,690 －

5,499
5,605

(1.9)
－

4,034 6.5
3,787 －

Basic earning per share

Diluted earning per shareYen
122.13113.43Yen－－

The six months ended
September 30, 2016
September 30, 2015

3,981 7.0
3,720 －

1,416 (58.1)
3,384 －

(2) Financial Position

As of
September 30, 2016
March 31, 2016

Total assets

Total equity

Equity attributable toowners of parent

Equity attributable toowners of parent ratio

Millions of yen
93,801
101,599

Millions of yen
49,42648,988Millions of yen
48,98048,591

52.2
47.8

%

2. Dividend payments
Dividends per share

Year ended March 31, 2016
Year ending March 31, 2017
Year ending March 31, 2017
(Forecast)First quarter

Second quarter

Third quarter

Year-end

Annual

Yen

Yen
30.00
30.00

Yen
－

Yen
30.00

Yen
60.00

3030.00.00

－

30.00

60.00

－
－

(Note) Revisions in dividend forecast in the current quarter: No

3. Forecast (From April 1, 2016 to March 31, 2017)(Percentage: Changes relative to corresponding previous period)
Operating
Profit before Profit attributable to
Basic earning
owners of parent
per share
incometax

RevenueYear ending March 31, 2017

Millions of yen%

Millions of yen%

110,000－

10,000－%Millions of yen

10,000Millions of yen

%

Yen

6,600

－

202.46－(Note) Revisions in forecast in the current quarter: No* Notes(1) Changes in significant subsidiaries during the current quarter: No(2) Changes in accounting policies and accounting estimates(i) Changes in accounting policies required by IFRS: No(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 quarter end (including treasury shares)
As of September 30, 201636,254,344 shares

As of March 31, 201636,254,344 shares(ii) Number of treasury shares at the quarter end
As of September 30, 2016

3,654,787 shares

As of March 31, 2016

3,654,607 shares(iii) Averaged number of shares during the period (quarterly cumulative period)
Six months ended September 30, 2016

32,599,608 shares

Six months ended September 30, 2015

32,795,944 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; the procedures for reviewing quarterly financial statements pursuant to the
Financial Instruments and Exchange Act are in progress at the time of disclosure of these financial results.
*Statement regarding the proper use of financial forecasts and other special remarks(IFRS adoption)
The Group has adopted IFRS starting from the three months ended June 30, 2016. For details about thedifferences between IFRS and Japanese GAAP with respect to financial figures, please refer to “3. Condensed
Consolidated Financial Statements (7) Notes on Condensed Consolidated Financial Statements 7. First-time
Adoption” on page 15 of the appendix of the consolidated financial results.
(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, these might be cases in which actual resultsmaterially differ from forecasts of this report. Please refer to page 3 “1. Qualitative Information (3) Consolidated
Performance Forecasts” for the assumptions used and other notes.

【Appendix】

Table of contents of the appendix
1. Qualitative Information ................................................................................................................................ 2(1) Consolidated Business Performance ........................................................................................................ 2(2) Consolidated Financial Position and Cash Flows for the six months ended September 30, 2016 ....... 2(3) Consolidated Performance Forecasts ....................................................................................................... 3
2. Notes Regarding Summary Information ...................................................................................................... 3(1) Changes in important subsidiaries during the current quarter............................................................. 3(2) Changes in accounting policies, accounting estimates ........................................................................... 3
3. Condensed Consolidated Financial Statements........................................................................................... 4(1) Condensed Consolidated Statements of Financial Position ................................................................... 4(2) Condensed Consolidated Statements of Income for the six months ended September 30, 2016 ......... 6(3) Condensed Consolidated Statements of Comprehensive Income for the six months ended
September 30, 2016 .................................................................................................................................. 7(4) Condensed Consolidated Statements of Changes in Equity ................................................................... 8(5) Condensed Consolidated Statements of Cash Flows .............................................................................. 10(6) Notes on Assumptions for Going Concern ............................................................................................... 11(7) Notes on Condensed Consolidated Financial Statements ...................................................................... 11
1. Reporting entity ................................................................................................................................... 11
2. Basis of preparation ............................................................................................................................ 11
3. Significant accounting policies............................................................................................................ 12
4. Significant accounting estimates and associated judgements .......................................................... 12
5. Segment information ........................................................................................................................... 13
6. Subsequent events ............................................................................................................................... 14
7. First-time adoption .............................................................................................................................. 15

－

1

－

1. Qualitative Information(1) Consolidated Business Performance
In the Japanese economy during the second quarter of the current fiscal year (April 1, 2016 throughSeptember 30, 2016), improvements in corporate earnings paused while personal consumption continued tolack 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 of emerging economies, among other factors.
Under these economic conditions, the group’s results in each business segment were as follows.
Precious metal business
Volume of collection in the precious metals recycling business was as follows. 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 the domestic 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 last year by taking various measures. In
the jewelry sector, the impact of continued 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, thevolume of collection of platinum increased from the same period a year earlier despite the continued decline in
the number of domestic scrapped vehicles.
The average price of precious metals for gold, palladium, and platinum was lower than that of the same
period a year before. The average price of silver was higher compared with the same period last year.
As for gold and silver refining business in North America, though both processing volume and unit price forcommissioned refining business remained at a low level, technological improvements aimed at raisingproduction efficiency gradually materialized into tangible results.
Environmental preservation businessAlthough 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 focused on
developing new customers and obtaining contracts by capitalizing on their characteristics and group networks.
Life & health businessIn the health care equipment sectors, due to slowdown in the sale of major massage chairs, sales declined
from the same period a year earlier despite of efforts to expand overseas sales and the sales of small-sizedmassage 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 second cumulative quarter 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 increase of 6 million yen (+0.1 percent) year-on-year. Profit before tax was 5,499 million yen, a yearon-year decrease of 105 million yen (-1.9 percent). Profit was 4,034 million yen, a year-on-year increase of 246
million yen (+6.5 percent). Profit attributable to owners of parent for the period was therefore 3,981 million
yen, an increase of 261 million yen (+7.0 percent) year-on-year. By segment, revenue in the precious metalbusiness was 32,647 million yen, a year-on-year decrease of 10,649 million yen (-24.6 percent). In theenvironmental preservation business, revenue was 7,807 million yen, and increase of 494 million yen (+6.8
percent) year-on-year. Revenue in the life & health business was 11,285 million yen, down 938 million yen (7.7 percent) year-on-year.
Figures stated in these financial results are presented on the basis of the International Financial ReportingStandards (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 of IFRS through the reclassification of the JGAAP-based
figures disclosed in the previous fiscal year.

(2) Consolidated Financial Position and Cash Flows for the six months ended September 30, 2016
As of September 30, 2016, total assets amounted to 93,801 million yen, down 7,797 million yen from theprevious fiscal year end. This was due mainly to the decrease of 6,622 million yen in cash and cash
equivalents.
－2－

Total liabilities amounted to 44,374 million yen, down 8,236 million yen from the previous fiscal year end.
This was due mainly to the decrease of 5,481 million yen in loans payable.
Total equity amounted to 49,426 million yen, up 438 million yen from the previous fiscal year end. This wasdue mainly to the recording of 1,416 million yen in comprehensive income.
As a result, the equity attributable to owners of parent ratio changed to 52.2%, from 47.8% at the end of theprevious fiscal year.
Net cash provided by operating activities amounted to 741 million yen due mainly to 5,499 million yen of
profit before tax , 1,146 million yen of depreciation and amortization, 2,023 million yen of increase ininventories, 1,325 million yen of decrease in trade and other payables, and 3,075 million yen of income taxes
paid .
Net cash used in investing activities amounted to 1,803 million yen due mainly to 1,769 million yen ofpurchase of property, plant and equipment.
Net cash used in financial activities amounted to 5,264 million yen due mainly to 5,135 million yen of
repayment of long-term loans payable, and 984 million yen of cash dividends paid.
As a result, cash and cash equivalents (hereinafter the “funds”) as of September 30, 2016 decreased 6,622
million yen from March 31, 2016, to 9,942 million yen.

(3) Consolidated Performance Forecasts
Consolidated performance forecast for the fiscal year have not changed from the forecast announced on May
10, 2016.

2. Notes Regarding Summary Information(1) Changes in important subsidiaries during the current quarter
Not applicable(2) Changes in accounting policies, accounting estimates
Not applicable

－

3

－

3. Condensed Consolidated Financial Statements(1) Condensed Consolidated Statements of Financial Position
As ofApril 1, 2015
(Date oftransition to
IFRS)Millions of
yen

As of
March 31,
2016

As of
September 30,
2016

Millions ofyenMillions ofyen

ASSETS
Current assets
Cash and cash equivalents

10,841

16,5649,942

Trade and other receivables
Inventories

15,851
15,817

14,64415,09015,667
17,077

Income tax receivables
Other financial assets

2,506
674

2,520
105

540
321

Other current assets

930

811

677

Total current assets

46,622

49,73744,22733,663
21,737
906
1,291
154

31,78816,922969
1,381－

31,611
15,264925
1,098－

Financial assets
Other non-current assets

807
13

771
27

652
21

Total non-current assets

58,57351,861

49,573

105,195

101,599

93,801

Non-current assets
Property, plant and equipment
Goodwill
Intangible assets
Deferred tax assets
Net defined benefit asset

Total assets

－

4

－

As ofApril 1, 2015
(Date oftransition to
IFRS)Millions of
yen

As of
March 31,
2016

As of
September 30,
2016

Millions ofyenMillions ofyen

LIABILITIES and EQUITY
Liabilities
Current liabilities
Trade and other payables

11,787

15,125

13,493Loans payable

26,441

7,115

2,920

Income tax payable
Other financial liabilities

2,111
46

2,012
187

1,533
36

Provisions

1,259

1,522

1,400

Other current liabilities

3,638

2,953

1,548

Total current liabilities

45,28628,917

20,931

6,550
2,061

20,503
1,582

19,217
1,483

Net defined benefit liability
Other financial liabilities
Other non-current liabilities

126
72
0

142
1,465
－

225
2,511
4

Total non-current liabilities

8,810

23,69323,443

Total liabilities

54,096

52,61044,374EquityCapital stock
Capital surplus
Treasury stock

4,480
6,116
(5,159)

4,480
6,112
(5,371)

4,480
6,119
(5,371)

44,999346

45,845(2,476)

48,813(5,062)50,783

48,591

48,980Non-current liabilities
Loans payable
Deferred tax liabilities

Retained earnings
Other components of equity
Total equity attributable to owners ofparentNon-controlling interests
Total equity
Total liabilities and equity

－

5

－

315

396

445

51,09848,98849,426105,195

101,599

93,801

(2) Condensed Consolidated Statements of Income for the six months ended September 30, 2016
The six months ended
September 30, 2015

The six months ended
September 30, 2016

Millions of yen

Millions of yen

Revenue

62,79051,691

Cost of sales(49,121)(39,105)

Gross profit
Selling, general and administrative expenses

13,669(7,739)12,586(7,483)

Other operating income

33

629

Other operating expenses

(273)

(35)

Operating income

5,690

5,696

Finance income
Finance cost

18
(103)

8
(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
Non-controlling interests

3,720
67

3,981
52

3,787

4,034

113.43122.13

ProfitEarning per share
Basic earning per share (Yen)

－

6

－

(3) Condensed Consolidated Statements of Comprehensive Income for the six months ended
September 30, 2016
The six months ended
September 30, 2015

The six months ended
September 30, 2016

Millions of yen

Millions of yen

Profit

3,787

4,034

17

(11)

10

(48)

27

(60)

Cash flow hedges
Translation adjustments of foreign operations

(349)
(81)

228
(2,786)

Total items that will be reclassified to profit or
loss

(431)

(2,557)

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
Total items that will not be reclassified to profit
or loss
Items that will be reclassified to profit or loss

(403)

(2,617)

Comprehensive income

Other comprehensive income, net of tax

3,384

1,416

Comprehensive income attributable to:
Owners of parent
Non-controlling interests

3,314
69

1,366
49

Comprehensive income

3,384

1,416

－

7

－

(4) Condensed Consolidated Statements of Changes in Equity(Millions of yen)
Equity attributable to owners of parent

Capitalstock

Balance at April 1, 2015
ProfitOther comprehensive
incomeTotal comprehensive
incomePurchase of treasury stock
Disposal of treasury stock
Dividends
Lapse of subscription rights
to shares
Reclassified from othercomponents of equity toretained earnings
Total transactions withownersBalance at September 30,
2015

CapitalsurplusTreasurystock

Retainedearnings

Other components ofequityTranslation
adjustments Cash flowof foreign
hedgesoperations

4,480
－

6,116
－

(5,159)－44,999
3,720

－
－

313
－

－

－

－

－

(84)

(349)

－

－

－

3,720

(84)

(349)

－
－
－

－
40
－

(0)
127
－

－
－
(982)

－
－
－

－
－
－

－

(44)

－

44

－

－

－

－

－

11

－

－

－

(3)

126

(926)

－

－

4,480

6,112

(5,032)

47,792(84)(35)(Millions of yen)
Equity attributable to owners of parent
Other components of equity
FinancialassetsRemeasuremeasured atments offair value
definedthrough
benefitotherplanscomprehensive income
Balance at April 1, 2015
ProfitOther comprehensive
incomeTotal comprehensive
incomePurchase of treasury stock
Disposal of treasury stock
Dividends
Lapse of subscription rights
to shares
Reclassified from othercomponents of equity toretained earnings
Total transactions withownersBalance at September 30,
2015

Total

Noncontrollinginterests

Total

Total

33
－

－
－

346
－

50,783
3,720

315
67

51,098
3,787

17

10

(405)

(405)

2

(403)

17

10

(405)

3,314

69

3,384

－
－
－

－
－
－

－
－
－

(0)
167
(982)

－
－
－

(0)
167
(982)

－

－

－

－

－

－

(1)

(10)

(11)

－

－

－

(1)

(10)

(11)

(814)

－

(814)

49

－

(70)

53,283385

53,668－8－

(Millions of yen)
Equity attributable to owners of parent

Capitalstock

Balance at April 1, 2016
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 September 30,
2016

CapitalsurplusTreasurystock

Retainedearnings

Other components ofequityTranslation
adjustments Cash flowof foreign
hedgesoperations

4,480
－

6,112
－

(5,371)－45,845
3,981(2,125)
－

(380)
－

－

－

－

－

(2,783)

228

－

－

－

3,981

(2,783)

228

－
－
－

－
－
－

(0)
－
－

－
－
(984)

－
－
－

－
－
－

－

－

－

(28)

－

－

－

7

－

－

－

－

－

7

(0)

(1,013)

－

－

4,480

6,119

(5,371)

48,813(4,909)(151)(Millions of yen)
Equity attributable to owners of parent
Other components of equity
FinancialassetsRemeasuremeasured atments offair value
definedthrough
benefitotherplanscomprehensive income
Balance at April 1, 2016
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 September 30,
2016

Total

Total

Noncontrollinginterests

Total

29
－

－
－

(2,476)－

48,591
3,981

396
52

48,988
4,034

(11)

(48)

(2,614)(2,614)(3)(2,617)

(11)

(48)

(2,614)

1,366

49

1,416

－
－
－

－
－
－

－
－
－

(0)
－
(984)

－
－
－

(0)
－
(984)

(19)

48

28

－

－

－

－

－

－

7

－

7

(19)

48

28

(977)

－

(977)

(1)

－

(5,062)

48,980445

49,426－9－

(5) Condensed Consolidated Statements of Cash FlowsThe six
months ended
September 30,
2015

The six
months ended
September 30,
2016

Millions of yen

Millions of yen

Profit before tax

5,605

5,499

Depreciation and amortization
Impairment loss

1,200
244

1,146
1

Finance income and finance cost
Decrease (increase) in inventories

54
2,055

144
(2,023)

Decrease (increase) in trade and other receivables(1,597)(1,223)

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

(290)
(895)

(1,325)(339)

Subtotal

6,377

1,879

22
(80)

6
(96)

Income taxes paid
Income taxes refund(3,609)1,623(3,075)2,028

Net cash provided by (used in) operating activities

4,334

741

－

(176)
－

Net cash provided by (used in) operating activities

Interest and dividends income received
Interest expenses paid

Net cash provided by (used in) investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment

9
(662)

(1,769)

45
(167)
10

237
(167)
71

20

1

Net cash provided by (used in) investing activities(744)(1,803)

Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Purchase of treasury stock
Cash dividends paid
Other, net(20,204)
20,304
(135)
(0)
(981)
145

876
－
(5,135)
(0)
(984)
(20)

(871)
301

(5,264)(296)

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

3,020
10,841(6,622)
16,564

Cash and cash equivalents at end of period

13,861

9,942

Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Proceeds from sales and redemption of investments
Other, net

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

－

10

－

(6) Notes on Assumptions for Going Concern
Not applicable(7) Notes on Condensed Consolidated Financial Statements
1. Reporting entity
Asahi Holdings, Inc. (hereinafter the “Company”) is a company located in Japan. The Company’s
condensed consolidated financial statements for the six months ended September 30, 2016 comprise thefinancial 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 IFRS and matters regarding the first-time adoption thereof
The condensed consolidated financial statements of the Group have been prepared based on IAS 34“Interim Financial Reporting.”
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 Quarterly Consolidated Financial Statements (Cabinet Office Ordinance No. 64 of 2007), theGroup adopts the provisions of Article 93 of the aforementioned rules.
The Group has adopted International Financial Reporting Standards (“IFRS”) from the fiscal year
ending March 31, 2017 (from April 1, 2016 to March 31, 2017). Thus, the annual consolidated financial
statements for the fiscal year ending March 31, 2017 are the first consolidated financial statements
prepared based on IFRS standards.
The date of transition to IFRS was April 1, 2015, and the impacts of the transition to IFRS on theGroup’s financial position, business performance and cash flows are described in Note 7. First-time
adoption.
(2) Basis of measurement
The condensed consolidated financial statements of the Group have been prepared based on costs ofacquisition, except for the specified financial instruments that have been measured at fair value as
mentioned in Note 3. Significant accounting policies.
(3) Functional currency and presentation currency
The condensed consolidated financial statements of the Group are presented in Japanese yen, which isthe functional currency of the Company, and figures less than one million yen are rounded down to thenearest million yen.
(4) Early adoption of new standards
The Group has implemented an early adoption of IFRS 9 “Financial Instruments” (published in
November 2009, and revised in July 2014), as from the date of transition to IFRS.

－

11

－

3. Significant accounting policies
Unless otherwise stated, significant accounting policies adopted in these quarterly consolidated financial
statements are the same as those adopted in all periods presented in those statements (including
consolidated statements of financial position at the IFRS transition date).
Please see the notes on quarterly consolidated financial statements for the first three months of the year
ending March 31, 2017 (April 1, 2016 through June 30, 2016), for significant accounting policies adopted by
the Group.

4. Significant accounting estimates and associated judgements
In preparing condensed consolidated financial statements, the management is required to make judgment,
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 as the accounting period in which such change occurs as well as theaccounting periods to be affected in the future.
Please see the notes on quarterly consolidated financial statements for the first three months of the year
ending March 31, 2017 (April 1, 2016 through June 30, 2016), for the management’s estimates andjudgements that have a significant influence on the amounts recognized in these condensed consolidated
financial statements.

－

12

－

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, and life & health business including manufacturing and selling of healthequipment.
Therefore, the Group is composed of product and service segments based on business sectors. The threereporting segments are the precious metal business, the environmental preservation business, and thelife & health business.
The precious metals business engages mainly in recycling and selling of precious and rare metals suchas gold, silver, palladium, platinum, and indium, as well as refining and processing of precious metals
such as gold and silver. The main work of environmental preservation business is the collection, transport
and intermediate processing of industrial waste. In the life & health business, the main work is the
manufacture and sales of massagers, hearing aids, and other health equipment, the manufacture andsales of electric heaters, the design and installation of radiant heating and air conditioning systems, andthe design and installation of disaster prevention equipment.

(2) Segment revenue and performance
Accounting policies of the reporting segments are the same as those of the Group stated in “Note 3.
Significant accounting policies.”
Revenue and other performance of each reportable segment of the Group are as follows.
For the six months ended September 30, 2015 (from April 1, 2015 to September 30, 2015)(Millions of yen)
Reporting segment
Precious metalbusiness

Environmental
preservation
business

Life & healthbusiness

43,297－7,269
44

12,223062,79044

Total

43,297

7,313

12,22462,835

Operating income by businesssegment

5,242

1,130

573

6,946

Revenue
External revenue
Intersegment revenue

Total

Adjustment

Consolidated－(44)

62,790－(44)

62,790(1,256)

5,690

Finance income
Finance costs

18
(103)

Profit before tax

5,605(Note) 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.

－

13

－

For the six months ended September 30, 2016 (from April 1, 2016 to September 30, 2016)(Millions of yen)
Reporting segment
Environmental
preservation
business

Life & healthbusiness

32,647－

7,759

11,28548

32,647
4,842

Precious metalbusiness

Total

Adjustment

Consolidated

51,691

－

0

48

(48)

51,691－

7,807

11,28551,740(48)

51,691

1,526

542

6,910

(1,214)

5,696

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

8

Finance costs(206)

Profit before tax

5,499(Note) 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.

6. Subsequent events
Not applicable

－

14

－

7. First-time adoption
The Group has started to disclose IFRS-based condensed consolidated financial statements from the firstquarter under review (from April 1, 2016 to June 30, 2016). The last Japan GAAP-based consolidated
financial statements were prepared for the fiscal year ended March 31, 2016, while transition to IFRS took
place on April 1, 2015.
(1) Exemption under IFRS 1
A company adopting IFRS for the first time (“first-time adopter”) is required to retrospectively apply
the standards required under IFRS, provided, however, that IFRS 1 ”First-time Adoption of International
Financial Reporting Standards” (“IFRS 1”) specifies certain standards subject to compulsory applicationof exemption (from the aforementioned retrospective application), along with others subject to voluntary
application of exemption. Impacts from the application of these exemptions are adjusted by retained
earnings, or other components of equity on the date of transition to IFRS. In the process of transition to
IFRS from Japan GAAP, the Group adopted the following exemptions.
- Business combinations
A first-time adopter is allowed to elect not to retrospectively apply IFRS 3 “Business Combinations” tothe business combinations that took place before the date of transition to IFRS. The Group elected, byapplying this exemption, not to retrospectively apply IFRS 3 to the business combinations that took place
before the date of transition. As a result, the amount of goodwill arising from the business combinations
before the date of transition is recognized at the book value as at the date of transition based on theJapan GAAP. Incidentally, goodwill is subject to impairment test on the date of transition, regardless ofwhether there is an indication of impairment loss.
- Foreign currency translation adjustments of foreign operations
Under IFRS 1, an option is allowed whereby cumulative translation differences of foreign operations as
at the date of transition to IFRS may be assumed to be nil. The Group elected to assume such cumulativetranslation differences to be nil as at the date of transition to IFRS.
(2) Compulsory exception under IFRS 1IFRS 1 prohibits retrospective application of IFRS with respect to “estimates,” “derecognition offinancial assets and financial liabilities,” “hedge accounting,” “non-controlling interest,” and“classification and measurement of financial assets.” Thus the Company applies IFRS to these items fromthe date of transition and onwards.
The reconciliation required to be disclosed at the first-time adoption of IFRS is as follows.

(3) Reconciliation
The reconciliation required to be disclosed at the first-time adoption of IFRS is as follows.

－

15

－

Reconciliation of equity as of April 1, 2015 (date of transition to IFRS)Line item underJapan GAAP

Japan
GAAP

Reclassificationof line items

Difference inrecognition and

IFRS

Notes

measurement

Millions

Millions

Millions

Millionsof yenof yenof yenof yenLine item under
IFRS

AssetsAssetsCurrent assets

Current assets
Cash and cash

Cash and deposits

11,046－(205)

10,841(1)(2),(3)(4)

Notes and accounts
receivable-trade

15,146

1,973(1,267)

15,851Inventories

15,630

－

854
－
－

(854)
2,506

187
－

15,817
－

674

－
－

5,919

(4,988)

－

(40)

40

48,556

Deferred tax assets

Other
Allowance for doubtful
accounts
Total current assets
Non-current assets
Property, plant andequipment
Goodwill

Inventories

2,506

(6)
(2)

Income tax receivables

674(1),(3)

Other financial assets

930

(2)

Other current assets

－

－

(3)

(854)

(1,079)46,62232,334－

1,328

33,663(7)

21,737－－－－

21,737

(8)

906
168
368
154
－

Other
Allowance for doubtful

676

807
(662)

(24)

Total non-current
assetsTotal assets

Trade and otherreceivables(4)

Intangible assets
Investment securities
Deferred tax assets
Net defined benefit asset

accounts

equivalents

－

(168)
854
－

68
－
－

906
－
1,291
154

Total current assets
Non-current assets

Intangible assets
(5)
(6)

807
13

(3),(5)

－

24

－

－

(3)

56,321854

1,397

58,573

104,877－

317

105,195－

16－

Property, plant andequipment
Goodwill

Deferred tax assets
Net defined benefit asset
Financial assets
Other non-current assets

Total non-current
assetsTotal assets

Line item underJapan GAAP

Japan
GAAP
Millionsof yenReclassificationof line items

Difference inrecognition and

IFRS

Notes

measurement

Millionsof yenMillionsof yenLine item under
IFRS

Millionsof yenLiabilities and Equity

Liabilities
Current liabilities
Notes and accounts

Liabilities
Current liabilities
Trade and other

6,161

5,460

165

11,787(2)

26,171

270－

26,441(9)

Current portion of longterm loans payable

270

(270)

－

－

(9)

Accounts payable-other
Income taxes payable

3,473
2,111

(3,473)
－

－

－

(2)

－

2,111

－

46

－

46

－

Deferred tax liabilities

1,362
776

(776)

(102)
－

1,259
－

Other

5,276

(2,033)

396

3,638

45,603(776)

459

45,286

6,550
1,567

－

－

776

(282)

6,550
2,061

126

－

－

126

－

72

－

72

(5)

72

(72)

－

0

(5)

8,316

776

(282)

8,810

53,919－176

54,096

Capital stock
Capital surplus
Treasury stock
Subscription rights toshares4,480
6,038(5,159)

－
77
－

－
－
－

4,480
6,116
(5,159)

77

(77)

－

－

Retained earnings

44,459－539

44,999(12),(13)

Retained earnings

685

－

(338)

346

(12)

Other components ofequity50,582－200

50,783

375

－

(60)

315

Total net assets

50,958－140

51,098

Total equity

Total liabilities and net
assets104,877－

317

105,195

Total liabilities and equity

payable-trade
Short-term loans
payableProvisions

Total current
liabilities
Non-current liabilities
Long-term loans payable
Deferred tax liabilities
Net defined benefit
liability

Other
Total non-current
liabilities
Total liabilities
Net assets

Total accumulated othercomprehensive income

Non-controlling interests

－

17

－

payablesLoans payable

Income tax payable
(5)

(6)
(2),
(5),(11)

Other financial
liabilities
Provisions

Other current liabilities
Total current
liabilities(6)

Non-current liabilities
Loans payable
Deferred tax liabilities
Net defined benefit
liability
Other financial
liabilities
Other non-current
liabilities
Total non-current
liabilities
Total liabilities
EquityCapital stock
Capital surplus
Treasury stock

Total equity attributableto owners of parent
Non-controlling interests

Reconciliation of equity as of September 30, 2015
Line item underJapan GAAP

Japan
GAAP

Reclassificationof line items

Difference inrecognition and

IFRS

Notes

measurement

Millions

Millions

Millions

Millionsof yenof yenof yenof yenAssetsCurrent assets
Cash and deposits
Notes and accounts
receivable-trade
Inventories
Deferred tax assets

Other
Allowance for doubtful
accounts
Total current assets
Non-current assets
Property, plant andequipment
Goodwill
Intangible assets
Investment securities
Deferred tax assets
Net defined benefit asset
Other
Allowance for doubtful
accounts
Total non-current
assetsTotal assets

Line item under
IFRS

AssetsCurrent assets(1)

Cash and cash
equivalents(2),(3)

Trade and other

14,057(196)－

13,861

13,765

4,641(1,002)

17,404

14,223－

1,021－(1,021)(472)－

13,750
－

－

－

921
408

－

921
408

(2)
(1),(3)

Income tax receivables
Other financial assets

7,529(5,810)

(82)

1,636

(2)

Other current assets

(35)

35

－

－

(3)

50,562(1,021)(1,557)47,98331,730－1,140

32,870(7)

21,199
934

－
－
(186)
1,021
－

22,024
934
－

(8)

186
274
145
－

825
－
－

1,330
147
791

653

(632)

33
1
－
－

(27)

27

－

－

55,096

1,021

2,001

58,119105,659－443

106,103

791

－

18

－

(4)
(4)

receivables
Inventories

(6)

(5)
(6)
(3),(5)20

Total current assets
Non-current assets
Property, plant andequipment
Goodwill
Intangible assets
Deferred tax assets
Net defined benefit asset
Financial assets
Other non-current assets(3)
Total non-current
assetsTotal assets

Line item underJapan GAAP

Japan
GAAP

Reclassificationof line items

Difference inrecognition and

IFRS

Notes

measurement

Millions

Millions

Millions

Millionsof yenof yenof yenof yenLine item under
IFRS

Liabilities

Liabilities and Equity
Liabilities

Current liabilities

Current liabilities

Notes and accounts
payable-trade
Short-term loans
payableCurrent portion of longterm loans payable
Accounts payable-other
Income taxes payable

Provisions

5,707

6,430

13

12,151(2)

Trade and otherpayables

5,968

5,270

－

11,238(9)Loans payable

5,270(5,270)

－

－

(9)

1,748
1,907

(1,748)
－

－

－

(2)

－

1,907

－

39

－

39

1,539

－

(191)

1,348

Income tax payable(5)

Other financial
liabilities
Provisions(2),(5),(11)

6,663(4,721)

(330)

1,611

28,806－(508)

28,29821,719
2,266

－
－

(357)
(267)

21,361
1,999

137

－

－

137

－

80

557

637

(5) ,(10)

80

(80)

－

－

(5)

24,204－(68)

24,13653,011－(576)

52,434

Capital stock
Capital surplus
Treasury stock

4,480
6,112
(5,032)

－
－
－

－
－
－

4,480
6,112
(5,032)Retained earnings

46,229－1,562

47,792(12),(13)

Retained earnings

442

－

(512)

(70)

(12)

Other components ofequity52,233－

1,049

53,283

414

－

(29)

385

Total net assets

52,648－1,020

53,668

Total equity

Total liabilities and net
assets105,659－443

106,103

Total liabilities and equity

Other
Total current
liabilities
Non-current liabilities
Long-term loans payable
Deferred tax liabilities
Net defined benefit
liability

Other
Total non-current
liabilities
Total liabilities
Net assets

Total accumulated othercomprehensive income

Non-controlling interests

－

19

－

Other current liabilities
Total current

(10)
(6)

liabilities
Non-current liabilities
Loans payable
Deferred tax liabilities
Net defined benefit
liability
Other financial
liabilities
Other non-current
liabilities
Total non-current
liabilities
Total liabilities
EquityCapital stock
Capital surplus
Treasury stock

Total equity attributableto owners of parent
Non-controlling interests

Reconciliation of equity as of March 31, 2016
Line item underJapan GAAP

Japan
GAAP

Reclassificationof line items

Difference inrecognition and

IFRS

Notes

measurement

Millions

Millions

Millions

Millionsof yenof yenof yenof yenAssetsCurrent assets
Cash and deposits
Notes and accounts
receivable-trade
Inventories
Deferred tax assets

AssetsCurrent assets(1)

Cash and cash
equivalents(2),(3)

Trade and other

16,668(103)－

16,564

11,558

3,827

(741)

14,644

15,244－(153)－

15,090
－

－

2,520
105

(2)
(1),(3)

Income tax receivables
Other financial assets

811

(2)

Other current assets

(3)

937
－

(937)

(4)
(4)

－
7,192

(6,380)

－
－

(31)

31

－

－

51,570

(937)

(895)

49,73730,791－997

31,788(7)

19,136
969

－
－

155
322
－

Other

664

(155)
937
771
(637)

16,922969－(8)Investment securities
Deferred tax assets(2,213)
－
－
121
－
－

1,381
771
27

Allowance for doubtful
accounts

(21)

21

－

－

52,019937(1,095)51,861

103,589－(1,990)101,599

Other

Total current assets
Non-current assets
Property, plant andequipment
Goodwill
Intangible assets

Total non-current
assetsTotal assets

－

20

－

receivables
Inventories

(6)

2,520
105

Allowance for doubtful
accounts

Line item under
IFRS

(5)
(6)
(3),(5)

Total current assets
Non-current assets
Property, plant andequipment
Goodwill
Intangible assets
Deferred tax assets
Financial assets
Other non-current assets(3)
Total non-current
assetsTotal assets

Line item underJapan GAAP

Japan
GAAP

Reclassificationof line items

Difference inrecognition and

IFRS

Notes

measurement

Millions

Millions

Millions

Millionsof yenof yenof yenof yenLine item under
IFRS

Liabilities

Liabilities and Equity
Liabilities

Current liabilities

Current liabilities

Notes and accounts
payable-trade
Short-term loans
payableCurrent portion of longterm loans payable
Accounts payable-other
Income taxes payable

Provisions

8,875

6,063

186

15,125(2)

Trade and otherpayables

1,845

5,270

－

7,115

(9)

Loans payable

5,270(5,270)

－

－

(9)

1,891
2,012

(1,891)
－

－

－

(2)

－

2,012

－

187

－

187

1,534

－

(11)

1,522

Income tax payable(5)

Other financial
liabilities
Provisions(2),(5),(11)

7,012(4,359)

300

2,953

28,442－475

28,917

21,584
1,937－－(1,080)(355)

20,503
1,582

142

－

－

142

119

－

(119)

－

－

62

1,403

1,465

62

(62)

－

－

23,846－(153)

23,693

Total liabilities

52,288－322

52,610Total liabilities

Net assets
Capital stock
Capital surplus
Treasury stock

4,480
6,112
(5,371)

－
－
－

－
－
－

4,480
6,112
(5,371)EquityCapital stock
Capital surplus
Treasury stock

Retained earnings

47,524－(1,678)45,845(12),(13)

Retained earnings

Total accumulated othercomprehensive income(1,884)－(591)(2,476)(12)

Other components ofequity50,862－(2,270)48,591

Other
Total current
liabilities
Non-current liabilities
Long-term loans payable
Deferred tax liabilities
Net defined benefit
liability
Provisions

Other
Total non-current
liabilities

Other current liabilities
Total current
liabilities

(10)
(6)

Non-current liabilities
Loans payable
Deferred tax liabilities
Net defined benefit
liability(5),(10)

Other financial
liabilities(5)
Total non-current
liabilities

Total equity attributableto owners of parent
Non-controlling interests

438

－

(42)

396

Total net assets

51,300－(2,312)

48,988

Total equity

Total liabilities and net
assets103,589－(1,990)101,599

Total liabilities and equity

Non-controlling interests

－

21

－

Notes on reconciliation of equity(1) Reclassification of cash and deposits
Time deposits with deposit terms of over three months, which were included in “cash and deposits” underJapan GAAP, are reclassified into “other financial assets (current)” under IFRS.
(2) Reclassification of other current assets and current liabilities
Accounts receivable – other, which were included in “other” of current assets under Japan GAAP, have been
reclassified as “trade and other receivables” and “Income tax receivables” under IFRS, while accounts payable –other, which was presented as a separate item of current liabilities, and accrued expenses, which were included
in “other” under Japan GAAP, have been reclassified as “trade and other payables” under IFRS.
(3) Reclassification of allowance for doubtful accounts“Allowance for doubtful accounts (current),” which was separately presented under Japan GAAP, has been
reclassified under IFRS to be directly deducted from “trade and other receivables” as well as “other financial
assets (current)” to present their net amounts, while “allowance for doubtful accounts (non-current)” has also
been reclassified under IFRS to be directly deducted from “financial assets (non-current)” to present the net
amount.
(4) Adjustment to operating receivables and inventories due to changes in timing of revenue recognition
Timing of revenue recognition for some of the transactions of sales of goods which were recognized on
shipment basis under Japan GAAP has been changed to customer delivery basis under IFRS, whereby operatingreceivables and inventories are subject to adjustments accordingly.
(5) Reclassification of other financial assets and financial liabilities“Investment securities,” which were presented separately under Japan GAAP, have been reclassified as“financial assets (non-current)” under IFRS. Lease obligations, which were included in “other” of current
liabilities and “other” of non-current liabilities under Japan GAAP, have been reclassified as “other financial
liabilities (current)” and “other financial liabilities (non-current),” respectively, under IFRS.
(6) Reclassification of deferred tax assets and deferred tax liabilities, review of recoverability of deferred tax assets
Since IFRS requires all deferred tax assets and liabilities to be classified as non-current items without making
a distinction between current and non-current items, deferred tax assets and liabilities which were previously
recorded as current items have been reclassified as non-current items. Meanwhile, as a result of the adoption of
IFRS, the recoverability of all deferred tax assets is currently under review and consideration.
(7) Adjustment to the recorded amount of property, plant and equipment
Under the Japan GAAP, the Group was mainly using the declining-balance method for the purpose ofdepreciating property, plant and equipment (excluding lease assets); under the IFRS, the Group has adopted thestraight-line method.
Fixed asset acquisition tax, which was treated as expenses under Japan GAAP, is capitalized under IFRS.
(8) Adjustment to the recorded amount of goodwill
Goodwill was amortized over a certain period of time under Japan GAAP, whereas it is not subject toamortization under IFRS. In addition, goodwill was subject to reviews for decisions on impairment only when
there was an indication of impairment under Japan GAAP, while impairment tests are conducted every
reporting period under IFRS.
Based on the difference between Japan GAAP and IFRS, the precious metal business segment recognized
3,776 million yen impairment loss in the fiscal year ended March 31, 2016. Recoverable amount is measured atvalue in use, and calculated by discounting future cash flows using 11.84% discount rate.
(9) Reclassification of loans payable“Current portion of long-term loans payable,” which was presented as a separate item of current liabilities,
has been reclassified as “loans payable (current)” under IFRS.
－

22

－

(10) Adjustment to loans payable and other financial liabilities
With respect to derivative transactions for the purpose of avoiding risks associated with fluctuations ofinterest rate of long-term borrowings as well as those of exchange rate, exceptional accounting (tokurei-shori)and designated hedge accounting (furiate-shori) were adopted for the basis of hedge accounting under Japan
GAAP, whereas under IFRS, they are measured at fair value.
(11) Adjustment to other current liabilities
Allowance for unused compensated absences, which was not accounted for under Japan GAAP, is recorded as“other current liabilities” under IFRS.
(12) Reclassification of accumulated translation adjustments for overseas subsidiaries
Exemption under IFRS 1 was elected at the first-time adoption, whereby the accumulated translation
adjustments as at the date of transition to IFRS have been wholly reclassified as retained earnings.
(13) Reconciliation of retained earnings
Date of transition to
IFRS(April 1, 2015)

As of September 30,
2015

As of March 31, 2016

Millions of yen

Millions of yen

Millions of yen

Adjustment to trade receivables andinventories
Adjustment to recorded amount ofproperty, plant and equipment

(359)

(3)

(156)

1,328

1,140

997

－

825

(2,213)

(874)

(810)

(895)

338

338

338

Other

(305)

(176)

(162)

Subtotal
Tax effect reconciliation
Reconciliation for non-controllinginterests

128
351

1,313
219

(2,092)
371

60

29

42

539

1,562

(1,678)Adjustment to recorded amount of
goodwill
Reconciliation of compensatedabsences payable
Reclassification of accumulatedtranslation adjustments for overseas
subsidiaries

Total

－

23

－

Reconciliation of profit or loss and comprehensive income for the six months ended September 30, 2015
(from April 1, 2015 to September 30, 2015)
Line item underJapan GAAP

Japan
GAAP

Reclassificationof line items

Difference inrecognition and

IFRS

Notes

measurement

Line item under
IFRS

Millions

Millions

Millions

Millions

Net salesof yen61,646of yen1,144

of yen62,790(1)

Revenue

Cost of sales(48,346)of yen－－(774)(49,121)(1)

Cost of sales

Gross profit

13,299－369

13,669(8,479)(38)

778(7,739)

(2)

－
－

78

(44)

33

(3)

administrative expenses
Other operating income

(259)

(14)

(273)

(4)

Other operating expenses

4,820

(220)

1,089
－

5,690
－

－

－

－
－

－
－

Selling, general andadministrative expenses

Operating income

Gross profit
Selling, general andOperating income

Non-operating income

40

(40)

Non-operating expenses
Extraordinary income

(163)
57

163
(57)

(3),(5)Extraordinary loss

(239)
－
－

239
20

(1)

18

(4)
(5)

Finance income

(143)

40

(103)

(5)

Finance cost(4),(5)(3)

Income before income
taxes
Income taxes-current
Income taxes-deferred

4,516

(38)

1,127

5,605

Profit before tax(1,774)
47

86
(47)

(129)
－

(1,817)－

Income tax expenses

Profit

2,789

－

998

3,787

ProfitOther comprehensive
incomeOther comprehensive
incomeItems that will not bereclassified to profit or loss
Financial assets measured

Valuation difference on
available-for-salesecurities

16

－

1

17

－

－

10

10

16

－

11

27

at fair value through othercomprehensive income
Remeasurements ofdefined benefit plans
Total of items that will not
be reclassified to profit orloss
Items that will bereclassified to profit or loss

Deferred gains or losses
on hedges
Foreign currencytranslation adjustment

Total othercomprehensive income
Comprehensive income

(171)

－

(177)

(349)

Cash flow hedges

(85)

－

3

(81)

Translation adjustments offoreign operations

(256)

－

(174)

(431)

Total of items that will bereclassified to profit or loss

(240)

－

(162)

(403)

Other comprehensive
income, net of tax

2,549

－

835

3,384

Comprehensive income

－

24

－

Reconciliation of profit or loss and comprehensive income for the fiscal year ended March 31, 2016 (from
April 1, 2015 to March 31, 2016)
Line item underJapan GAAP

Japan
GAAP

Reclassificationof line items

Difference inrecognition and

IFRS

Notes

measurement

Line item under
IFRS

Millions

Millions

Millions

Millions

Net salesof yen118,473of yen879

of yen119,352(1)

Revenue

Cost of sales(92,719)of yen－－(675)(93,394)(1)

Cost of sales

Gross profit

25,753－204

25,958(17,048)

(72)

1,421

(15,699)

(2)

－
－

157

(48)

109

(3)

administrative expenses
Other operating income(545)(3,765)(4,310)(4)

Other operating expenses

8,705

(460)

(2,187)
－

6,057
－

－

－

－
－

－
－

Selling, general andadministrative expenses

Operating income

Gross profit
Selling, general andOperating income

Non-operating income

89

(89)

Non-operating expenses
Extraordinary income

(284)
109

284
(109)

(3),(5)Extraordinary loss

(512)
－
－

512
40

(1)

39

(4)
(5)

Finance income

(251)

24

(227)

(5)

Finance cost(4),(5)(3)

Income before income
taxes
Income taxes-current
Income taxes-deferred

8,106

(72)

(2,165)

5,868

Profit before tax(3,153)
179

251
(179)

18
－

(2,883)－

Income tax expenses

Profit5,132－(2,146)

2,985

ProfitOther comprehensive
incomeOther comprehensive
incomeItems that will not bereclassified to profit or loss
Financial assets measured

Valuation difference on
available-for-salesecurities

(4)

－

－

(4)

－

－

(99)

(99)

(4)

－

(99)

(103)

at fair value through othercomprehensive income
Remeasurements ofdefined benefit plans
Total of items that will not
be reclassified to profit orloss
Items that will bereclassified to profit or loss

Deferred gains or losses
on hedges
Foreign currencytranslation adjustment

Total othercomprehensive income
Comprehensive income

(425)

－

(268)

(693)

(2,148)－15(2,133)

Translation adjustments offoreign operations(2,573)－(252)(2,826)

Total of items that will bereclassified to profit or loss

(2,577)－(352)(2,930)

Other comprehensive
income, net of tax

2,554

－

(2,499)

55

－

25

－

Cash flow hedges

Comprehensive income

Notes on reconciliation of profit or loss and comprehensive income(1) Revenue and cost of sales
Timing of revenue recognition for some of the transactions of sales of goods which were recognized on
shipment basis under Japan GAAP has been changed to customer delivery basis, whereby revenue and cost of
sales are subject to adjustments accordingly under IFRS.
(2) Selling, general and administrative expenses
Goodwill was subject to amortization under Japan GAAP, whereas it is not under IFRS, and therefore, theamount of amortization of goodwill under Japan GAAP has been reversed.
(3) Other operating income
Gain on sales of non-current assets and others, which were presented as extraordinary income under Japan
GAAP, are presented as other operating income under IFRS.
(4) Other operating expenses
Loss on sale and disposal of non-current assets and others, which were presented as extraordinary loss underJapan GAAP, are presented as other operating expense under IFRS. Based on the difference between JapanGAAP and IFRS, the precious metal business segment recognized 3,776 million yen impairment loss for the
fiscal year ended March 31, 2016.
(5) Finance income and costs
Interest income, dividend income, and foreign exchange gain, which were presented as non-operating income
under Japan GAAP, as well as interest expenses and foreign exchange losses, which were presented as nonoperating expenses under Japan GAAP, are presented as finance income and finance costs, respectively, under
IFRS.

Reconciliation of cash flows for the six months ended September 30, 2015 (from April 1, 2015 to
September 30, 2015) and the fiscal year ended March 31, 2016 (from April 1, 2015 to March 31,
2016)
There is no significant difference between the consolidated statements of cash flows disclosed based on JapanGAAP and those disclosed based on IFRS.

－

26－