Consolidated Financial Results for the Fiscal Year Ended March 31, 2021
Asahi Holdings, Inc. [IFRS]
April 27, 2021

Stock code:
Shares listed:

5857
Tokyo Stock Exchange (First Section)

URL:
Representative:

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

For further information please contact:

Kunihiko Chogo, General Manager, Corporate Planning &Communications Department

The Ordinary General Meeting of Shareholders:(Phone) +81–3–6270–1833
June 15, 2021

Filing date of financial statements:
Start of dividend payment:

June 16, 2021
May 26, 2021

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

Yes
Yes (for institutional investors, analysts)(Rounded down to the nearest million yen)

1. Results of the fiscal year ended March 31, 2021 (From April 1, 2020 to March 31, 2021)(1) Results of operations(Percentage: Changes relative to corresponding previous period)
OperatingprofitRevenue
The fiscal year ended
March 31, 2021
March 31, 2020

Millions of yen

164,776
135,563%

Millions of yen

21.5 25,126
22.8 18,010

Basic earnings per
share

Profit before
tax%

Millions of yen

39.5 26,136– 17,650

Diluted earnings
per share

Total
Profitattributable to comprehensive
incomeowners of parent

Profit% Millions of yen%

Millions of yen%

Millions of yen%

48.1 25,725 161.3 25,725 161.3 33,434 487.5
42.9 9,846
9.4 9,846
9.4 5,690 (25.4)
Profit to equity
attributable toowners of parent

Profit before
tax to total
assetsOperatingprofit to revenue

The fiscal year ended
Yen
Yen
%
%
%
March 31, 2021
326.90322.92
30.8
11.0
15.2
March 31, 2020
125.12124.26
14.4
9.0
13.3
(Reference) Share of profit (loss) of investments accounted for using equity method: Fiscal year ended March 31,
2021 285 million yen; Fiscal year ended March 31, 2020 (45) million yen(Notes) 1. Since the Company transferred 60% of all shares in Fuji Medical Instruments MFG. Co., Ltd. in the fiscal
year ended March 31, 2020, this business was classified as discontinued operations with the amounts ofrevenue, operating profit and profit before tax presented as amounts for the continuing operations excluding
the discontinued operations.
2. Due to the retrospective application of the changes in accounting policies, the figures shown for the fiscal
year ended March 31, 2020 are the figures after retrospective application and presentation of changes
relative to the corresponding previous period has been omitted for operating profit.
3. The Company conducted a stock split with a ratio of two-for-one on April 1, 2021. Basic earnings per shareand diluted earnings per share are calculated assuming the stock split had already been carried out at thestart of the previous fiscal year.
(2) Financial Position
Total assets

Total equity

Equity attributableto owners of parent

Equity attributableto owners of parent
ratio

Equity per share
attributable toowners of parent

As ofMillions of yen
Millions of yen
Millions of yen%
Yen
March 31, 2021
244,803
97,90397,90340.0
1,244.06
March 31, 2020
229,958
69,174
69,17430.1
879.00(Note)The Company conducted a stock split with a ratio of two-for-one on April 1, 2021. Equity per share
attributable to owners of parent is calculated assuming the stock split had already been carried out at thestart of the previous fiscal year.

(3) Cash flows

The fiscal year ended
March 31, 2021
March 31, 2020

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Millions of yen(33,353)
4,572

Millions of yen(2,800)
1,927

Millions of yen
24,422
273

Cash and cash
equivalents at end of
the fiscal year
Millions of yen
10,02322,908

2. Dividend payments
Dividends per shareFirst
quarter

Secondquarter

Third
quarterYear-end

Annual

Yen

Yen

Yen

Yen

Yen

Total
dividend
payment(annual)Payoutratio(consolidated)

Millions of yen

Dividend
to equity
attributableto owners ofparent(consolidated)%%Year ended March 31, 2020
–
60.00
–
70.00 130.00
5,176
52.0
7.5
Year ended March 31, 2021
–
80.00
–
90.00 170.00
6,769
26.0
8.0
Year ending March 31, 2022
–
45.00
–
45.00
90.00
38.9
(Forecast)(Note)The Company conducted a stock split with a ratio of two-for-one on April 1, 2021. The amounts of dividends
per share for the year ended March 31, 2020 and the year ended March 31, 2021 are the actual amounts
before the stock split. The forecast amount for the year ending March 31, 2022 is the figure after the stock
split.
3. Forecast (From April 1, 2021 to March 31, 2022)
Revenue
Millions of yen(Percentage: Changes relative to corresponding previous period)
ProfitBasic earnings
Operating
Profit before
attributable toprofittax
per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%

Yen

Six months ending
94,40019.3 12,500
5.7 12,500
5.3
8,700
5.7
110.55September 30, 2021
Year ending March 31, 2022 190,000
15.3 26,000
3.5 26,000(0.5) 18,200(29.3)
231.27(Note)The Company conducted a stock split with a ratio of two-for-one on April 1, 2021. The impact of the stock
split is factored into the amount of basic earnings per share in the forecast for the year ending March 31,2022.

* Notes(1)
Changes in significant subsidiaries during the current fiscal year: No(2)

Changes in accounting policies and accounting estimates(i) Changes in accounting policies required by IFRS: No(ii) Changes other than (i) above: Yes(iii) Changes in accounting estimates: No
For details, please refer to page 17 “4. Consolidated Financial Statements (7) Notes on Consolidated Financial
Statements (3. Changes in accounting policies).”(3)

Number of issued shares (common stock)(i)

Number of issued shares at the end of year (including treasury stock)
As of March 31, 2021

79,708,688 shares

As of March 31, 2020

79,708,688 shares(ii) Number of treasury stock at the end of year
As of March 31, 2021

1,011,774 shares

As of March 31, 2020

1,011,274 shares(iii) Averaged number of shares during the period
Year ended March 31, 2021

78,697,109 sharesYear ended March 31, 2020

78,697,650 shares(Note)The Company conducted a stock split with a ratio of two-for-one on April 1, 2021. Number of issued
shares at the end of year, number of treasury stock at the end of year, and averaged number ofshares during the period are calculated assuming the stock split had already been carried out at
the start of the previous fiscal year.

(Reference) Summary of Nonconsolidated Results
1. Nonconsolidated Results of the Year ended March 31, 2021 (From April 1, 2020 to March 31, 2021)(1) Results of operations(Percentage: Changes relative to corresponding previous period)
Net sales

The fiscal year ended
March 31, 2021
March 31, 2020

The fiscal year ended
March 31, 2021
March 31, 2020
(Note)

Millions of yen

14,003
11,398Operating profit%

Millions of yen

22.9
35.2

13,08010,087

Ordinary profit% Millions of yen

29.7
43.2

12,435
10,273

Profit% Millions of yen

21.0
48.8

Earnings per share

Diluted earnings per shareYen
257.74128.62

Yen
256.01127.74

20,283
10,122

%

100.4
48.3

The Company conducted a stock split with a ratio of two-for-one on April 1, 2021. Earnings per share anddiluted earnings per share is calculated assuming the stock split had already been carried out at the startof the previous fiscal year.

(2) Financial Position
Total assets

Net assets

Shareholders’ equity ratio

Net assets per share

Millions of yen
Millions of yen
%
Yen
As of
March 31, 2021
111,02175,58267.0
945.86
March 31, 2020
85,83860,12670.0
764.02(Reference)
Shareholders’ equity
As of March 31, 2021: 74,435 million yen
As of March 31, 2020: 60,126 million yen(Note)The Company conducted a stock split with a ratio of two-for-one on April 1, 2021. Net assets per share is
calculated assuming the stock split had already been carried out at the start of the previous fiscal year.

* This report is not subject to audit procedures* Statement regarding the proper use of financial forecasts and other special remarks(Notes on forward looking statements, etc.)
These forecast performance figures are based on the information currently available to the company’s
management and certain assumptions judged rational. Accordingly, there might be cases in which actual resultsmaterially differ from forecasts of this report. Please refer to page 2 “1. Overview of Consolidated Operating
Results (1) Consolidated Business Performance for the Year ended March 31, 2021” for the assumptions used andother notes.

【Appendix】

Table of contents of the appendix

1. Overview of Consolidated Operating Results ................................................................................................................ 2(1) Consolidated Business Performance for the Year ended March 31, 2021 ................................................................ 2(2) Consolidated Financial Position and Cash Flows for the Year ended March 31, 2021 ........................................... 2(3) Dividends .................................................................................................................................................................... 3(4) Business and other risks ............................................................................................................................................ 3
2. Our Group ........................................................................................................................................................................ 7
3. Basic Concept Regarding Selection of Accounting Standards....................................................................................... 9
4. Consolidated Financial Statements ............................................................................................................................. 10(1) Consolidated Statements of Financial Position ...................................................................................................... 10(2) Consolidated Statements of Income ........................................................................................................................ 12(3) Consolidated Statements of Comprehensive Income .............................................................................................. 13(4) Consolidated Statements of Changes in Equity ...................................................................................................... 14(5) Consolidated Statements of Cash Flows ................................................................................................................. 16(6) Notes on Assumptions for Going Concern ............................................................................................................... 17(7) Notes on Consolidated Financial Statements ......................................................................................................... 17
1. Reporting entity ..................................................................................................................................................... 17
2. Basis of preparation ............................................................................................................................................... 17
3. Changes in accounting policies.............................................................................................................................. 17
4. Significant accounting estimates and associated judgements ............................................................................. 18
5. Segment information ............................................................................................................................................. 19
6. Impairment loss ..................................................................................................................................................... 22
7. Discontinued operations ........................................................................................................................................ 23
8. Per share information ............................................................................................................................................ 24
9. Subsequent events ................................................................................................................................................. 25
5. Others ............................................................................................................................................................................ 26(1) Amounts of sales ....................................................................................................................................................... 26− 1 −1. Overview of Consolidated Operating Results(1) Consolidated Business Performance for the Year ended March 31, 2021
①Operating results
The Japanese economy continued to be in an extremely difficult situation during the accounting period underreview due to the global spread of the novel coronavirus disease (COVID-19). Although the economy showedsome signs of recovery due to the phased resumption of economic activities and the effects of the government’s
economic measures, the future remains uncertain due to the situation of reemergence of infections and the lackof prospects for when the COVID-19 crisis will subside. Under these conditions, the Group’s results in eachbusiness segment were as follows.
Precious Metals business
Revenue and operating profit in precious metal recycling business in Japan, South Korea and Malaysia
increased from the same period in the previous year, thanks to the rise in precious metal prices as well as
market share gains in all our business areas. Also, revenue and operating profit in precious metal refining
business in North America expanded from the same period a year before thanks to significant expansion in
product processing and sales as well as financial transactions. As a result, revenue in this segment increasedby 27.3% from the same period of the previous year, and operating profit increased by 51.0% from the same
period of the previous year.
Environmental Preservation businessAlthough industrial production activities are recovering after the stagnation caused by COVID-19, revenue
in this segment decreased by 3.6% from the same period of the previous year due to a general decrease inindustrial waste. Operating profit remained at the same level as in the same period of the previous year due tomaintaining the utilization rate at the Company’s facilities, increasing the price of processing and other factors,
but it decreased by 12.0% compared to the same period of the previous year due to the recording of losses on
disposal and loss on sales associated with the disposal of unnecessary equipment.
As a result of the above, revenue during the fiscal year was 164,776 million yen, a year-on-year increase of
29,213 million yen (+21.5 percent). Operating profit was 25,126 million yen, a year-on-year increase of 7,115
million yen (+39.5 percent). Profit before tax was 26,136 million yen, a year-on-year increase of 8,486 million
yen (+48.1 percent). Profit was 25,725 million yen, a year-on-year increase of 15,879 million yen (+161.3 percent).
Profit attributable to owners of parent was therefore 25,725 million yen, an increase of 15,879 million yen(+161.3 percent) year-on-year, which are all record highs. By segment, revenue in the Precious Metals business
was 144,795 million yen, a year-on-year increase of 31,039 million yen (+27.3 percent). In the Environmental
Preservation business, revenue was 19,981 million yen, a year-on-year decrease of 735 million yen (-3.6 percent).

②Outlook
The Group will continue to strive to expand earnings and increase corporate value.
Business forecast for the next period is as follows: 190,000 million yen in revenue, 26,000 million yen in
operating profit, 26,000 million yen in profit before tax and 18,200 million yen in profit attributable to ownersof the parent.

(2) Consolidated Financial Position and Cash Flows for the Year ended March 31, 2021
As of this fiscal year ended March 31, 2021, total assets amounted to 244,803 million yen, up 14,844 million
yen from the previous fiscal year end. This was due mainly to decreases of 12,885 million yen in cash and cash
equivalents and 18,979 million yen in trade and other receivables, and increases of 25,767 million yen in
inventories, 7,574 million yen in other current assets, and 7,259 million yen in deferred tax assets.
Total liabilities amounted to 146,899 million yen, down 13,884 million yen from the previous fiscal year end.
This was due mainly to a decrease of 21,963 million yen in bonds and loans payable.
Total equity amounted to 97,903 million yen, up 28,728 million yen from the previous fiscal year end.
Net cash used in operating activities amounted to 33,353 million yen due mainly to profit before tax of
26,136 million yen, depreciation and amortization of 2,538 million yen, increase in inventories, decrease intrade and other receivables, decrease in trade, loans and other payables, and income taxes paid.

− 2 −Net cash used in investing activities amounted to 2,800 million yen due mainly to purchase of property, plantand equipment of 5,141 million yen, and proceeds from sales of shares of subsidiaries of 2,908 million yen.
Net cash provided by financial activities amounted to 24,422 million yen due mainly to net increase in shortterm loans payable of 29,908 million yen, repayment of long-term loans payable of 20,304 million yen, proceedsfrom issuance of convertible bond-type bonds with share acquisition rights of 21,137 million yen, and cash
dividends paid of 5,902 million yen.
As a result, cash and cash equivalents as of March 31, 2021 decreased 12,885 million yen from March 31,
2020, to 10,023 million yen.

(3) Dividends
The Group will strive to consistently pay dividends without decreasing the annual dividend level from thecurrent level. Moreover, the Group aims to maintain a dividend payout ratio of 40%, while retaining sufficientinternal reserves for capital investment and M&A for future growth.
Based on the above basic policy, the year-end dividend for the current fiscal year will be 90 yen per share. The
annual dividend for the current fiscal year combined with the interim dividend will be 170 yen per share. For
the next term, we plan to pay an interim dividend of 45 yen and a year-end dividend of 45 yen (annual dividendof 90 yen).
The Company conducted a 2-for-1 stock split of common stock as of April 1, 2021, and the dividend for thecurrent fiscal year (ended March 31, 2021) is the actual dividend amount before the stock split. The dividend
for the next fiscal year (fiscal year ending March 31, 2022) is the amount after the stock split.

(4) Business and other risks
Major risks that could affect the Group’s operating results and financial condition include the following. We
believe these matters could have a significant impact on investor decisions, but the categories below are limited
to those that the Group is currently aware of; and not necessarily all risks are covered here.
① Precious metals prices and currency exchange rates
The precious metals and rare metals that are the main products of the Group’s precious metals business aretraded on international markets. Their prices fluctuate based on global elements such as political and economic
trends in supply countries and demand countries, currency exchange rates, and so on. The Group therefore
hedges through forward transactions and provides timely reports on the status of price fluctuations for the main
previous metals to management, etc., in order to reduce risk, although the size of fluctuation in precious metals
prices and currency exchange rates can affect the Group’s operating results and financial condition.
② Laws and regulations
In the countries and regions where the Group operates business, various laws and regulations apply regarding
matters such as permission to do business, rules for import/export/transport, commercial transactions, labor,
taxation, intellectual property rights, and environmental preservation. Taking the stance that compliance isimportant, the Group has built a system for centrally managing information about revisions to laws related to
all its business fields and ensuring that this knowledge is communicated without fail to the front lines, andcarefully follows laws, regulations, and social rules. However, in the unlikely event that a situation arises wherelaws, regulations, and social rules could not be followed, or if they change such that business is restricted, it
could affect the Group’s operating results and financial condition.
In the environmental preservation business in particular, the Group engages in the collection, transport andtreatment of various types of industrial waste as an enterprise under the Waste Management and Public
Cleansing Act. In addition to that law, the business is regulated by laws such as the Water Pollution Control
Act, the Air Pollution Control Act, and the Sewerage Act. Furthermore, the Group has a license for the collection
and transport of industrial waste in every prefecture and 9 ordinance-designated cities and core cities, for its
disposal in 13 prefectures and 8 ordinance-designated cities, and for the collection and transport of speciallycontrolled industrial waste in every prefecture and 9 ordinance-designated cities and core cities, and for its
disposal in 10 prefectures and 7 ordinance-designated cities. Obtaining such licenses is predicated on strict
compliance with regulations at the regional level, including each prefectural and municipal ordinance and rule.
With society’s interest in environmental issues rising, such legal regulations are tending to tighten. Not only
capital investments as countermeasures to those trends but also the construction, relocation, and renovation of− 3 −disposal facilities require construction permits and permission to change. Such occasions may also necessitate
obtaining the consent of nearby residents, which could be difficult to obtain in some cases. Therefore, such legal
regulations and social trends could affect the Group’s operating results and financial condition.
③ Economic fluctuation
Manufacturing industries are among the primary demand industries for the Group’s two business segments:
the precious metals business and the environmental preservation business. Demand trends in each sector
within these industries are affected by economic conditions in various countries and regions. When demand
from such industries declines due to recession and so on, it can affect the Group’s operating results and financial
condition. Moreover, in the previous metals recycling business, the Group recycles precious metals contained in
end products such as information equipment and automobiles, and is therefore affected by consumption trends.
A decrease in personal consumption caused by a decline in the general level of consumption could therefore
affect the Group’s operating results and financial condition.
④ Business environment
The Group’s two business segments, the precious metals business and the environmental preservation
business, face the possibility of major changes in customer needs due to changes in laws, regulations, andpermits that concern a sector or faster-than-expected shifts overseas by corporate customers. Furthermore,industry reorganization and other major changes in the business environment are possible. The results could
affect the Group’s operating results and financial condition.
⑤ Intensified competition
The Group’s two business segments, the precious metals business and the environmental preservation
business, face competition from various companies. The Group continues to make efforts to overcome thecompetition in each sector by accurately meeting customer needs through sales efforts and initiatives ontechnology, products, and cost responsiveness. Intensified competition from competitor companies, however, canforce the Group’s products and services into harsh price competition. The results could affect the Group’s
operating results and financial condition.
⑥ Overseas business deployment
Under the slogan, “Building a global company that pursues originality and growth,” one of the Group’s growthstrategies is expansion of its overseas business. In this regard, the Group carries out business in countries andregions in North America, Asia, etc. Political or economic phenomena unfavorable to business, labor disputes
due to differences in labor environment, uncertainty in finding suitable local personnel, conflicts, terrorism, andother social disturbances, and unfair intervention by authorities due to underdeveloped business infrastructure
in a country or region are inherent risks. If such situations occur, it could affect the Group’s operating results
and financial condition.
⑦ Corporate acquisition, etc.
The Group has worked to expand its lines of business and business scale through corporate acquisition and
expects to take a forward-looking approach projects that will contribute to further growth in the future. In orderto maximize the integration effect with target businesses and companies, the Group will attempt to integrate
and unify them with its business strategy and operations. However, if the integration of human resources andassets does not proceed as planned, it is possible that the expected integration and unification effects will not
be realized. The results could affect the Group’s operating results and financial condition.
⑧ Impairment of goodwill and fixed assets
When the Group acquired a company, it records goodwill arising from the acquisition, as well as various
property, plant and equipment and intangible assets for business use. At the acquisition examination stage, theGroup carries out sufficient surveys from the financial, legal, and human resource perspectives, among others,
but if the acquired company and business do not achieve business results as initially expected due to changes
in the market environment, etc., and the management results and profitability deteriorate markedly, theseassets may become impaired. If such situations occur, it could affect the Group’s operating results and financial
condition.

− 4 −⑨ Natural disasters and infectious disease
Natural disasters such as large earthquakes or typhoons or the outbreak of new infectious diseases could
cause serious damage to the Group’s production, distribution, sales, and information management facilities.
The Group has implemented countermeasures such as business continuity management (BCM), flood
countermeasures, disaster readiness drills, and building an employee safety confirmation system. However,these are not able to completely eliminate damage due to natural disasters or unknown infectious diseases, etc.
Therefore, if these should occur it could affect the Group’s operating results and financial condition.
In addition, the impact of the novel coronavirus (COVID-19) outbreak is expected to see adverse market
conditions continue, and at this point there is no outlook for controlling the outbreak. If the situation continues
even longer, it could have a further negative impact on economies and markets in Japan and overseas, the resultof which could affect the Group’s operating results and financial condition.
⑩ Health and safety
The Group works to strengthen its safety management system, and regularly carries out disaster/accident
prevention activities such as holding Safety Promotion Meetings that are also attended by management andtaking necessary measures in order to eliminate occupational and facilities accidents. However, there is no
guarantee that they can be completely prevented or mitigated. Therefore, if a serious occupational or facilities
accident should occur, it could affect the Group’s operating results and financial condition.
⑪ Human resources
Since the Group’s medium- to long-term growth depends on the abilities and experience of individual
employees, the Group is promoting human resource policies that are relevant to the times. In the 9th Mid-term
Business Plan, which ends in the fiscal year ending March 31, 2024, in addition to once again thoroughly
implementing the “ability-based and performance-based” approach, which will stimulate the entire organizationand create a driving force for the company’s growth, we are also promoting work style reforms such as observing“rest intervals” of at least 11 hours before an employee can return to work the next day, and encouraging
employees to take refreshment leave. However, if the Group is unable to secure high quality human resources
and prepare the necessary talent for taking on challenges at the right time due to increased speed of businessdevelopment, it could affect the Group’s operating results and financial condition.
⑫ Research and development
The Group conducts independent research and development and analysis technology development aimed at“precious metals recycling’ and “detoxifying and recycling of industrial waste.” However, research anddevelopment of new technologies is affected by various factors, such as changes in the market environment,competition, and the ability to commercialize development results. Therefore, it is highly uncertain whether the
expenses used in research and development can be recovered. For this reason, if the results of research anddevelopment are not obtained as initially anticipated, it could affect the Group’s operating results and financial
condition.
⑬ Key intellectual property rights
In order to protect intellectual property rights important to business deployment, the Group carries out
appropriate management. However, unforeseen leaks to outside parties can occur, and complete protection of
intellectual property rights may be impossible in certain regions. Therefore, it may not be possible to effectively
prevent third parties from using the Group’s intellectual property rights to manufacture and sell similar
products and services. Moreover, the Group could be embroiled in a dispute if the products and technologies
that it is developing for the future infringe unintentionally on the intellectual property rights of anothercompany, or regarding the handling of workplace inventions in its relationships with employees. The results
could affect the Group’s operating results and financial condition.
⑭ Product quality assurance and product liability
Led by its Quality Assurance Division, the Group has acquired ISO9001 to provide products offering
customers greater confidence and satisfaction, and makes continuous improvements to its quality management
systems and strives to maintain and improve quality. Through such measures, the Group makes every effort− 5 −with its product quality assurance system, but if a product produced by the Group causes damages, it could
affect the Group’s operating results and financial condition.
⑮ Environmental protection
Based on its Environmental Policies, the Group carries out various initiatives to protect the global
environment. For example, it has established the Company-wide Environmental Goals (Annual Plan) and an
Environmental Committee is set up at every business site. Through these and other efforts, the Group complies
with environmental laws and regulations, revises its plans, deliberates about environmental education and soforth, and reports to management. However, there is no guarantee that all pollution and other environmental
risk can be completely prevented or mitigated, so if the Group should cause serious pollution of the environment,
it could affect the Group’s operating results and financial condition.
⑯ Climate change
The adoption of the Paris Agreement at the 21st Session of the Conference of the Parties to the United Nations
Framework Convention on Climate Change (COP 21), which has been ratified by every country, has sparked aglobal wave of initiatives aimed at reducing greenhouse gases deemed to cause climate change and global
warming. Abnormal weather such as local destructive storms caused by climate change has the potential tocause serious flooding and landslides, which can significantly damage the Group’s infrastructure such as
facilities and logistics. If business activities are forced to halt for a long period until these can be restored, it
could affect the Group’s operating results and financial condition.
⑰ Information security
PCs and tablets used by the Group use the latest security countermeasures, and we take sufficient measures
to ensure that system faults and information theft or loss do not occur during their installation and operation.
We also implement regular employee training to enhance their IT literacy. However, there is a possibility that
unexpected events could occur such as destruction or tampering of important data or external leaks of
information as a result of infection by a computer virus, hacking damage, and system faults due to software
defects, or a larger than anticipated external attack. Such an event could affect the Group’s operating results
and financial condition.
⑱ Lawsuits and other legal procedures
As the Group carries out business in Japan and overseas, it could be subjected to lawsuits and other legal
procedures. The Group appropriately monitors major lawsuits that have already been instigated or have thepotential to be instigated, and takes countermeasures as needed. However, if the Group becomes a party to suchaction, it might have to pay large damages, etc. The results could affect the Group’s operating results andfinancial condition.

− 6 −2. Our Group
Our Group comprises of the holdings company “Asahi Holdings, Inc.,” “Asahi Pretec Corp.,” and 13 otherconsolidated subsidiaries and affiliated companies. Our main businesses are precious metals business andenvironmental preservation business. The details are as follows:(1) Precious metals businessIn the precious metals business, we sell precious/rare metal products such as gold, silver, platinum, andpalladium by recycling scrap containing rare metals, etc.
In Japan, Asahi Pretec Corp. collects scraps containing precious/rare metals from the electronics, dentistry,jewelry manufacturing and distribution, and automotive catalyst sectors. At factories around the country, itcollects, separates and refines the scrap and sells high-purity metals to trading companies,
semiconductor/electronic component makers, etc. also engages in precision cleaning and precious metaldelamination of manufacturing equipment parts from semiconductor/electronic component makers.
Overseas, Asahi G&S Sdn. Bhd. in the Malaysia/Singapore region and Asahi Pretec Korea Co., Ltd. in South
Korea are engaged in the precious metals recycling business. Additionally, Asahi Refining USA Inc., Asahi
Refining Florida LLC and Asahi Refining Canada Ltd. carry out the refining and processing of gold, silver, andother precious metals in the United States and Canada respectively.

(2) Environmental preservation business
The main line of our environmental preservation business is the collection, transport, and intermediate
treatment of industrial waste.
Asahi Pretec Corp. treats and detoxifies waste acid, waste alkali, waste oil, sludge, waste drugs, and medicalrelated waste generated by sites in various industries, such as factories, printing presses, hospitals, schools,
and research institutes. Additionally, Japan Waste Corporation is engaged in the collection, transportation,intermediate processing and recycling of various industrial wastes. JW Chemitech Co., Ltd. mainly performs
the collection, transport, and intermediate treatment of industrial waste generated by factories. Taiyo ChemicalCo., Ltd. processes medical-related waste and industrial effluent from companies in the IT, electronics, andpetrochemical businesses. Fuji Rozai Co., Ltd. processes specially controlled industrial waste including dioxin
and heavy metals at local governments’ incinerators. It engages in repair, demolition, and waste brickprocessing of smelting furnaces for glass manufacturing. It removes firebricks from smelting furnaces andperforms materials recycling and hazardous materials handling. JW Glass Recycling Co., Ltd. collects sheet
glass and glass bottles, separates them for crushing, and recycles them into high-quality glass cullet, which it
sells.

− 7 −Domestic Bases

Asahi Pretec Corp.
Selling recycling scrap containing
precious / rare metals

Precious Metals Business

Asia

North America

ASAHI G&S SDN.BHD.

Asahi Refining
USA Inc.

Asahi Pretec
Korea Co., Ltd.

Asahi Refining
Florida LLC
Asahi Refining
Canada Ltd.

Asahi Pretec
Medical Support Co., Ltd.

Domestic Bases

Environmental Preservation Business

A sahi Holding s, I nc.

Domestic Bases

Asahi Pretec Corp.
Entrustment of industrial waste
treatment

Domestic BasesJapan Waste Corporation

Fuji Rozai Co., Ltd.

JW Chemitech Co., Ltd.

JW Glass Recycling Co., Ltd.

Taiyo Chemical Co., Ltd.

Other 1 company

Other*Other 1 company(Notes) Unmarked: Consolidated subsidiary* Equity method affiliate− 8 −3. Basic Concept Regarding Selection of Accounting Standards
We have applied International Financial Reporting Standards (IFRS) with the objectives of enhancing ourmanagement base for global business development and enabling easier international comparison of financial
information in capital markets from the first quarter of fiscal year ended March 31, 2017.

− 9 −4. Consolidated Financial Statements(1) Consolidated Statements of Financial Position
As ofMarch 31,
2020

As of
March 31,
2021

Millions ofyenMillions ofyen

ASSETS
Current assets
Cash and cash equivalents

22,90810,023

Trade and other receivables
Inventories

119,754
37,748100,775
63,515

Income tax receivables
Other financial assets

2,029
93

2,833
2,169

Other current assets

5,069

12,644

Total current assets

187,604

191,961

34,95337,904

Goodwill
Intangible assets

1,604
529

1,040
697

Investments accounted for using equity method
Deferred tax assets

3,254
1,132

3,544
8,392

155
683

165
1,051

Non–current assets
Property, plant and equipment

Net defined benefit asset
Financial assets
Other non–current assets

42

44

Total non–current assets

42,354

52,841

229,958

244,803

Total assets− 10 −

As ofMarch 31,
2020

As of
March 31,
2021

Millions ofyenMillions ofyen

LIABILITIES and EQUITY
Liabilities
Current liabilities
Trade and other payables
Loans payable

13,710121,873

26,46579,337

Income tax payable
Other financial liabilities

4,624
6,991

5,914
1,247

Provisions
Other current liabilities

1,293
4,643

1,601
5,002

Total current liabilities
Non–current liabilities

153,137

119,568

Bonds and loans payable
Deferred tax liabilities

4,928
1,453

25,501968

Net defined benefit liability
Other financial liabilities

172
1,066

106
754

Other non–current liabilities

24–

Total non–current liabilities

7,645

27,331

160,783

146,899

7,790

7,790

Capital surplus
Treasury stock

10,755(956)

11,952(957)

Retained earnings
Other components of equity

60,797(9,212)80,604(1,486)

Total liabilities
EquityCapital stock

Total equity attributable to owners of parent

69,174

97,903

Total equity

69,174

97,903229,958

244,803

Total liabilities and equity− 11 −

(2) Consolidated Statements of Income
The fiscal year ended
March 31, 2020

The fiscal year ended
March 31, 2021

Millions of yen

Millions of yen

Continuing operations
Revenue

135,563

164,776

Cost of sales(109,372)(131,962)

Gross profit
Selling, general and administrative expenses

26,190(7,174)32,814(7,263)

Other operating income
Other operating expenses

195(1,154)

96
(806)

(45)

285

18,01024

25,126
136

(331)
87

(84)
962

Share of profit (loss) of investments accounted forusing equity method
Operating profit
Finance income
Finance costs
Other non–operating income
Other non–operating expenses

(140)

(3)

Profit before tax
Income tax expenses

17,650(6,230)26,136(411)

Profit from continuing operations
Discontinued operations

11,41925,725

Profit (loss) from discontinued operations(1,573)–

Profit9,846

25,725

Owners of parent
Non–controlling interests

9,846
–

25,725–

Profit9,846

25,725

Continuing operations
Discontinued operations

145.11(19.99)326.90–Total

125.12326.90

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

144.12322.92

Discontinued operations(19.85)–

Total

124.26322.92

Profit attributable to:Earnings per share
Basic earnings (loss) per share (Yen)− 12 −

(3) Consolidated Statements of Comprehensive Income
The fiscal year ended
March 31, 2020

The fiscal year ended
March 31, 2021

Millions of yen

Millions of yen

Profit9,846

25,725

(12)

5

125

(17)

(2)

4

110

(7)

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

6,462

Translation adjustments of foreign operations

(461)

1,254

Total items that may be reclassified to profit orloss(4,266)

7,716(4,155)

7,709

Comprehensive income

Other comprehensive income, net of tax

5,690

33,434Comprehensive income attributable to:
Owners of parent

5,690

33,434

–

–

5,690

33,434

Non–controlling interests
Comprehensive income− 13 −

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

operations

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

7,790
–

10,353–(955)–

55,547
9,846(3,737)–(1,203)
–

–

–

–

–

(461)

(3,805)

–

–

–

9,846

(461)

(3,805)

–
–

–
–

(0)
–

–
(4,721)

–
–

–
–

–

337

–

–

–

–

–

–

–

125

–

–

–

64

–

–

–

–

–

401

(0)

(4,596)

–

–

7,790

10,755(956)

60,797(4,198)(5,008)(Millions of yen)
Equity attributable to owners of parent
Other components of equity
FinancialassetsRemeasuremeasured atments offair value
definedthrough otherbenefit planscomprehensive income

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

Total

Total

Total equity

8
–

–
–

(4,931)–67,804
9,846

67,804
9,846

(15)

125

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

125(4,155)

5,690

5,690

–
–

–
–

–
–

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

–

–

–

337

337

0

(125)

(125)

–

–

–

–

–

64

64

0

(125)

(125)

(4,320)(4,320)(5)–(9,212)

69,174

69,174− 14 −

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

operations

Balance at April 1, 2020
ProfitOther comprehensive
incomeTotal comprehensive
incomePurchase of treasury stock
Dividends
Issuance of convertiblebond-type bonds with shareacquisition rights
Reclassified from othercomponents of equity toretained earnings
Share–based paymenttransactions
Total transactions withownersBalance at March 31, 2021

7,790
–

10,755–(956)–

60,79725,725(4,198)–(5,008)
–

–

–

–

–

1,254

6,462

–

–

–

25,725

1,254

6,462

–
–

–
–

(0)
–

–
(5,902)

–
–

–
–

–

996

–

–

–

–

–

–

–

(16)

–

–

–

200

–

–

–

–

–

1,197

(0)

(5,919)

–

–

7,790

11,952(957)

80,604(2,944)

1,454(Millions of yen)
Equity attributable to owners of parent
Other components of equity
FinancialassetsRemeasuremeasured atments offair value
definedthrough otherbenefit planscomprehensive income

Balance at April 1, 2020
ProfitOther comprehensive
incomeTotal comprehensive
incomePurchase of treasury stock
Dividends
Issuance of convertiblebond-type bonds with shareacquisition rights
Reclassified from othercomponents of equity toretained earnings
Share–based paymenttransactions
Total transactions withownersBalance at March 31, 2021

Total

Total

Total equity

(5)
–

–
–

(9,212)–

69,17425,72569,17425,725

10

(17)

7,709

7,709

7,709

10

(17)

7,709

33,43433,434

–
–

–
–

–
–

(0)
(5,902)(0)(5,902)

–

–

–

996

996

(0)

17

16

–

–

–

–

–

200

200

(0)

17

16

(4,705)(4,705)

3–(1,486)

97,90397,903− 15 −

(5) Consolidated Statements of Cash FlowsThe fiscal year
ended March 31,
2020

The fiscal year
ended March 31,
2021

Millions of yen

Millions of yen

Cash provided by (used in) operating activities
Profit before tax
Profit (loss) before tax from discontinued operations

17,650(1,074)

26,136–

Depreciation and amortization
Impairment loss

2,827
2,605

2,538
58

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

131
52

48
(958)

Share of loss (profit) of investments accounted for using equity
method45(285)

Decrease (increase) in inventories
Decrease (increase) in trade and other receivables(15,209)(64,029)(26,196)
29,998

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

65,747396(50,501)(6,652)

SubtotalInterest and dividend income received

9,143
25

(25,813)
5

Interest expenses paid
Income taxes paid

(50)
(5,940)(71)(9,422)

Income taxes refunded

1,394

1,948

4,572

(33,353)

(93)
–

(90)
90

Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment(3,960)122(5,141)
46

Purchase of intangible assets
Proceeds from sales of shares of subsidiaries

(174)
6,259

(279)
2,908

Proceeds from sales and redemption of investments
Other, net

6
(231)

19
(353)

Net cash provided by (used in) investing activities
Cash provided by (used in) financing activities

1,927(2,800)527–

29,908(20,304)

4,928

–

–

21,137

Net cash provided by (used in) operating activities
Cash provided by (used in) investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits

Net increase (decrease) in short–term loans payable
Repayment of long-term loans payable
Proceeds from issuance of bonds
Proceeds from issuance of convertible bond-type bonds withshare acquisition rights
Purchase of treasury stock

(0)

(0)

(4,714)(466)(5,902)
(416)

273
(163)

24,422(1,154)

Net increase (decrease) in cash and cash equivalents

6,610(12,885)

Cash and cash equivalents at beginning of period

16,29722,908Cash and cash equivalents at end of period

22,90810,023

Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents− 16 −

(6) Notes on Assumptions for Going Concern
Not applicable(7) Notes on Consolidated Financial Statements
1. Reporting entity
Asahi Holdings, Inc. (hereinafter the “Company”) is a company located in Japan. The addresses of theCompany’s registered head office and principal offices are available on its website(https://www.asahiholdings.com). The Company’s consolidated financial statements have a fiscal year-end
date of March 31, 2021 and comprise the financial statements of the Company as well as its subsidiaries(the “Group”).
For the main activities of the Group, please refer to Note “5. Segment information.”

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

3. Changes in accounting policies
The significant accounting policies adopted for the consolidated financial statements are the same as thosefor the consolidated financial statements for the fiscal year ended March 31, 2020, with the exception of theitems described below.
(Change in the classification for recording interest expenses corresponding to Advanced Trading for
precious metal products)
Each Asahi Refining company, consolidated subsidiaries of the Company, undertakes Advanced Tradingof precious metal products as an added value service incidental to the precious metal refining business.
Commission income obtained from customers in accordance with the forward period is recorded as revenue.
The interest expenses corresponding to such Advanced Trading of precious metal products werepreviously recorded as finance cost, but the method was changed from the current fiscal year to berecorded as cost of sales.
Furthermore, due to these changes, the “increase (decrease) in trade and other payables” has beenchanged to “increase (decrease) in trade, loans and other payables” in the Consolidated Statements ofCash Flows. Furthermore, the change in loans payable procured for such Advanced Trading is included
in “increase (decrease) in trade, loans and other payables” in the Consolidated Statements of Cash Flows.
This change is attributed to the change in the funds management system due to the aim to expand
Advanced Trading of precious metal products as a measure to increase income at each Asahi Refining
company and in consideration of the increase in the financial importance of interest expenses
corresponding to this income and the forecast for future increases.
Accordingly, compared to the previous method, cost of sales rose 862 million yen and operating profit
fell 862 million yen, but there was no impact on profit before tax, profit, and profit attributable to ownersof parent.

− 17 −

The Consolidated Statements of Cash Flows during the current fiscal year show an increase of 62,275
million yen in net increase (decrease) in short–term loans payable and respective declines of 62,333
million yen in increase (decrease) in trade, loans and other payables, 862 million yen in finance income
and finance cost, and 920 million yen in interest expenses paid.
There is no impact on basic earnings per share and diluted earnings per share for the current fiscal
year.
Such changes in accounting policies are applied retrospectively, and the consolidated financial
statements restate the figures for the previous fiscal year following retrospective application.
As a result, compared to before the retrospective application, the Consolidated Statements of Income
for the previous fiscal year, shows an increase of 2,108 million yen in cost of sales and a decline of 2,108
million yen in operating profit, but there is no impact on profit before tax, profit, and profit attributableto owners of parent.
The Consolidated Statements of Cash Flows for the previous fiscal year shows an increase of 64,957
million yen in increase (decrease) in trade, loans and other payables and respective declines of 64,891
million yen in net increase (decrease) in short–term loans payable, 2,108 million yen in finance income
and finance cost and 2,043 million yen in interest expenses paid.
There is no impact on basic earnings per share and diluted earnings per share for the previous fiscal
year.

4. Significant accounting estimates and associated judgements
In preparing consolidated financial statements, the management is required to make judgement,
estimates and assumptions that affect the adoption of accounting policies and the amounts of assets,
liabilities, revenues and expenses. Actual results may differ from such estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. The effect of a change inaccounting estimates is recognized in the accounting period in which such change occurs as well as theaccounting periods to be affected in the future.
The estimates and judgements made by the management that may have material impacts on the figuresin the consolidated financial statements are the same as those for the consolidated financial statements forthe fiscal year ended March 31, 2020.

− 18 −

5. Segment information(1) Overview of reporting segments
The Group’s reporting segments are those Group constituent units for which separate financial
information is obtainable, and which the Board of Directors subjects to regular examination in order todecide the allocation of management resources and evaluate business results.
As a pure holding company, the Company is in charge of overall strategic function for the Group,
whereas operating companies of the Group engage in the precious and rare metals recycling business andthe refining and processing business, industrial waste management and other environmental
preservation business.
Therefore, the Group is composed of product and service segments based on business sectors. The tworeporting segments are the Precious Metals business and the Environmental Preservation business.
Meanwhile, these reporting segments are not aggregated.
The Precious Metals business engages mainly in recycling and selling of precious and rare metals suchas gold, silver, palladium, and platinum, as well as refining and processing of precious metals such as goldand silver.
The main work of the Environmental Preservation business is the collection, transport andintermediate processing of industrial waste, and the manufacture and sale of electric heaters.
The interest expenses corresponding to the Advanced Trading of precious metal products at each Asahi
Refining company, consolidated subsidiaries of the Company, were previously recorded as finance cost,
but the method was changed from the current fiscal year to be recorded as cost of sales.
In addition, the segment information for the previous fiscal year also reflects such change.
As a result, compared to the figures prior to such change, the operating profit by business segment for
the Precious Metals business decreased by 2,108 million yen for the previous fiscal year, and decreased
by 862 million yen for the current fiscal year.
In the previous fiscal year, the Company transferred 60% of all shares of Fuji Medical Instruments
MFG. Co., Ltd., (hereinafter “Fuji Medical Instruments”) to Johnson Health Tech Co., Ltd., a company
listed on the Taiwan Stock Exchange. Consequently, the Company classified the business of Fuji Medical
Instruments under discontinued operations, and the amounts presented for segment information for theprevious fiscal year are amounts from continuing operations from which discontinued operations havebeen excluded. Please refer to Note “7. Discontinued operations” for details on discontinued operations.

− 19 −

(2) Segment revenue and performance
Accounting policies of the reporting segments are the same as those of the Group stated in Note “3.
Changes in accounting policies.”
Revenue and other performance of each reportable segment of the Group are as follows.
For the fiscal year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)
Reporting segment(Millions of yen)

Precious
Metals Business

Environmental
Preservation
Business

113,755

20,713

134,468

1,094

–

3

3

113,755

20,716

15,914

4,355

Adjustment

Consolidated

135,563–

135,563

–

3

(3)

–

134,472

1,094

135,566(3)

135,563

20,2693

20,272(2,261)18,010

Total

Other

Subtotal

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

24

Finance costs
Other non–

(331)
87

operating profit
Other non–operatingexpenses(140)

Profit before tax
Others:Depreciation andamortization
Impairment loss

17,650

1,347

792

2,139

3

2,142

501

2,644

998

–

998

–

998

–

998

–

–

–

(45)

(45)

–

(45)

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

− 20 −

For the fiscal year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)
Reporting segment(Millions of yen)

Precious
Metals Business

Environmental
Preservation
Business

144,795

19,981

164,776

–

–

–

–

Total

144,795

19,981

Operating profit
by business

24,037

3,833

Revenue
External
revenue
Intersegment
revenue

Adjustment

Consolidated

164,776–

164,776

–

–

–

–

164,776–

164,776–

164,776

27,870285

28,156(3,029)25,126

Total

Other

Subtotalsegment
Finance income
Finance costs

136
(84)

Other non–operating profit

962

Other non–operating(3)

expensesProfit before tax

26,136

Others:Depreciation andamortization

1,178

881

2,059

–

2,059

478

2,538

Impairment loss

25

32

58

–

58

–

58

–

–

–

285

285

–

285

Share of loss
(profit) ofinvestments
accounted forusing equity
method(Note)

Adjustments of operating profit by business segment are mainly corporate expenses that are not allocatedto each reporting segment.

− 21 −

6. Impairment loss
For the fiscal year ended March 31, 2020 (from April 1, 2019 to March 31, 2020)
The impairment loss of 998 million yen on property, plant and equipment recognized during the fiscal
year ended March 31, 2020 was due to the decision of disposal of gold and silver refining facilities (buildings
and machinery) in Asahi Refining Florida LLC belonging to the segment of Precious Metals Business tofurther enhance the efficiency and profitability of business in North America. And the book value of theproperty, plant and equipment has been reduced to the recoverable amount. The recoverable value ismeasured based on the fair value less costs of disposal, and that is evaluated using the estimated disposal
value, etc. of the asset. The fair value hierarchy level is 3.
For the fiscal year ended March 31, 2021 (from April 1, 2020 to March 31, 2021)
The impairment loss of 58 million yen on property, plant and equipment recognized during the fiscal
year ended March 31, 2021 was due to reducing the book value of land belonging to JW Glass Recycling Co,
Ltd. in the Environmental Preservation Business to the recoverable value of zero as it was scheduled to be
sold, and recording the write-down as a loss (32 million yen), as well as writing down the book value offacilities of Asahi Refining Canada Ltd. in the Precious Metals Business to the recoverable value of zero,
since future cash flows became unlikely as a result of the cancelation of projects due to business plans, andrecording the write-down as a loss (25 million yen).
Impairment losses are recorded in “Other operating expenses” in the Consolidated Statements of Income.

− 22 −

7. Discontinued operations(1) Outline of discontinued operations
The Company transferred 60% of all shares of Fuji Medical Instruments, which was a consolidated
subsidiary of the Company, to Johnson Health Tech Co., Ltd., a company listed on the Taiwan Stock
Exchange, in the previous fiscal year which was then excluded from the scope of consolidation.
Consequently, profit and loss as well as cash flows relating to Fuji Medical Instruments and its
subsidiaries were reclassified as discontinued operations with the discontinued operations concerned
displayed in a separate category.
(2) Discontinued operations performance(Millions of yen)
The fiscal year ended
March 31, 2020

The fiscal year ended
March 31, 2021

Revenue

13,698–

Expense (Note)(14,772)–

Profit (loss) before tax from discontinued
operations(1,074)

–

(499)

–

(1,573)–

Revenue and expense of discontinued operations

Income tax expense (note)
Profit (loss) from discontinued operations(Note)

This includes losses worth 1,607 million yen, which were recognized by the measurement in the fiscal
year ended March 31, 2020 of the disposal group that constitutes discontinued operations at fair valueless selling cost. Income tax expenses pertaining to this change totaled 332 million yen.
(3) Cash flow from discontinued operations(Millions of yen)
The fiscal year ended
March 31, 2020

The fiscal year ended
March 31, 2021

1,388

–

(80)

–

(1,493)

–

(184)

–

Cash flow from discontinued operations
Net cash provided by (used in) operating
activities
Net cash provided by (used in) investing
activities
Net cash provided by (used in) financing
activities
Total− 23 −

8. Per share information(1) Basic and diluted earnings per share(Yen)
Year ended March 31, 2020

Year ended March 31, 2021

Continuing operations

145.11326.90Discontinued operations(19.99)–125.12326.90Continuing operations

144.12322.92

Discontinued operations(19.85)–124.26322.92

Total basic earnings (loss) per share

Total diluted earnings per share(2) The basis for calculating basic earnings per share(Millions of yen)
Year ended March 31, 2020

Year ended March 31, 2021

9,846

25,725(1,573)–

11,41925,725

Profit attributable to owners of parent
Profit (loss) from discontinued operations attributableto owners of parent
Profit from continuing operations attributable toowners of parent used for calculation of the basic
earnings per share(3) The basis for calculating diluted earnings per share(Millions of yen)
Year ended March 31, 2020

Year ended March 31, 2021

11,41925,725––

11,41925,725(1,573)–

9,846

25,725

Profit from continuing operations used for calculationof the basic earnings per share
Adjustments of profit for the year
Profit from continuing operations used for calculationof the diluted earnings per share
Profit (loss) from discontinued operations used for
calculation of the diluted earnings per share
Profit used for calculation of the diluted earnings per
share(4) Weighted average number of common stock(Shares)Year ended March 31, 2020

Year ended March 31, 2021

78,697,650

78,697,109

543,024

968,379

79,240,674

79,665,488

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

On April 1, 2021, the Company conducted a 2-for-1 share split of its common stock based on a resolution at themeeting of the Board of Directors held on January 29, 2021. The figures for basic earnings (loss) per share anddiluted earnings (loss) per share were calculated on the assumption that the share split was conducted at the
beginning of the fiscal year ended March 31, 2020.

− 24 −

9. Subsequent events(Stock split)
On April 1, 2021, the Company conducted a share split based on a resolution at the meeting of the Boardof Directors held on January 29, 2021.
(1) Purpose of stock split
The purpose of the stock split is to create a more investment-friendly environment for investors bylowering the unit investment amount, thereby increasing the liquidity of the Company’s stock andbroadening the shareholder base.
(2) Overview of stock split(i) Method of split
The Company will implement a 2-for-1 share split of common shares owned by shareholders listed orrecorded in the closing register of shareholders with a record date of March 31, 2021.
(ii) Number of shares to be increased by split
Total number of issued shares before stock split:

39,854,344 shares

Number of shares to be increased by stock split:

39,854,344 shares

Total number of issued shares after stock split:

79,708,688 shares

Total number of shares authorized to be issued after stock split:

258,000,000 shares(iii) Schedule of split
Public notice of record date:

March 16, 2021

Record date:

March 31, 2021

Effective date:

April 1, 2021(iv) Effect on per-share information
The effect on per-share information is stated in the applicable section of this document.

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5. Others(1) Amounts of sales
Year ended March 31, 2020

Year ended March 31, 2021

Amount(Millions of yen)

Year-on-Year(%)

Amount(Millions of yen)

Year-on-Year
(%)

Gold

52,898126.7

70,231

132.8

Silver

4,125

93.4

4,287

103.9

Palladium

29,908135.5

36,694

122.7

Platinum

6,576

130.2

7,334

111.5

Industrial waste treatment

20,622

107.0

22,124

107.3

Other

21,431120.0

24,105

112.5

Total

135,563122.8

164,776

121.5(Note)In the previous fiscal year, the Company classified the business of Fuji Medical Instruments, which was aconsolidated subsidiary of the Company, under discontinued operations, and the “Amounts of sales” presented
for the previous fiscal year are amounts from continuing operations from which discontinued operations havebeen excluded.

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