Securities Code5857

Interim Business Report for FY2011
From April 1, 2011 to September 30, 2011

To Our Shareholders
I would like to express my cordial appreciation for yourcontinuing support and loyal patronage.＿＿＿＿＿＿＿＿＿
During the third interim term (April to September 2011), theJapanese economy remained in a severe situation due tothe influence of the Great East Japan Earthquake, the global
economic stagnation and the Yen’s entrenched appreciation
which recorded a historical high. The outlook for theJapanese economy remains unpredictable.＿＿＿＿＿＿＿＿＿＿＿＿＿Under such economic situations, our group started newplant operations for recycling precious metals both inAmagasaki City, Hyogo Prefecture and Chungju City, Korea.
＿＿＿＿＿
We also reinforced and improved our business baseenjoying synergy effects by means of M&A activities such aswith Usuda Manufacturing Co., Ltd. ＿＿＿＿＿＿＿＿＿＿＿＿＿In the our precious metal recycling business, the collection
volume of gold, silver, palladium and platinum was higher
than the one in the previous corresponding period due toefforts to acquire new customers and the continuing highmarket prices of the metals. We flexibly offset the risk byhedging in response to price fluctuations on the metal
market to ensure our stable revenues.＿＿＿＿＿＿＿＿＿In the environmental protection business, though theinfluence of the earthquake disaster remained, the trading
volumes of waste oil, waste fluid and medical-related wastes
continued to grow steadily and surpassed those of theprevious corresponding period owing to the recovery ofdomestic production and demand for reconstruction except
for the volume of photo-related waste fluid which continues
to decrease due to digitization.＿＿＿＿＿＿＿＿＿＿＿＿＿
＿＿＿＿＿
＿
＿

Based on the performance described above, our operating
results in the interim term exceeded our initial projection, withconsolidated net sales of 72,748 million yen, operating income
5,974 million yen, ordinary income 6,034 million yen, and net
income 3,488 million yen. The company has decided to pay aninterim dividend of 30 yen per share, 5 yen higher than theprevious term.＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
We would appreciate your continued understanding andsupport for the business activities of our group companies.

CEO＆COOTOPICS
Usuda Manufacturing Co., Ltd. has been incorporated within our GroupIn June 2011, Usuda Manufacturing Co., Ltd. (TomiCity, Nagano Prefecture) became a wholly owned
subsidiary of our companyʼs consolidated subsidiary,Asahi Pretec Corp. Usuda Manufacturing engages in
the precious cleaning business of devices such as
internal jigs for sputtering, dry etchers and ion doping
chambers of semiconductors/FPD manufacturing
equipment components, and enjoys a high reputation in
the electronic semiconductor industry.＿＿＿＿＿＿＿Electronic semiconductors are one of Asahi Pretecʼsmain markets. Asahi Pretec and Usuda Manufacturing
plan to further expand our mutual operations bydeveloping business in an integrated manner andexerting synergistic effects.＿＿＿＿＿＿＿＿＿＿＿＿

Kyodo Chemical Co., Ltd. has been incorporated within our GroupIn August 2011, Kyodo Chemical Co., Ltd. (TomakomaiCity, Hokkaido) became a wholly owned subsidiary ofour companyʼs consolidated subsidiary, Japan Waste
Corporation. Kyodo Chemical is engaged in thephotosensitive materials business and the collection,transportation and intermediate treatment of industrial
waste. ＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿
We will collaborate with the Sapporo sales office ofA s a h i P r e t e c t o e n h a n c e o u r service s in t h eenvironmental protection business and thephotosensitive materials businesses in the Hokkaido
area and to raise the efficiency of our business
operations.＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿＿

Consolidated Financial Highlights
Net Sales (Millions of yen)Interim

Full-term

Ordinary Income (Millions of yen)Interim

Full-term

12,000150,000

10,50810,000126,444
120,000

110,504

7,922

8,000

6,034

90,000

5,475

6,000

82,60379,38972,7484,000

60,00052,486

2,691

2,357
2,000

35,85630,0000-514-2,0000
2009/3

2010/3

2011/3

2009/3

2011/9Net Income (Millions of yen)Interim

Full-term

2011/3Net Income per Share (Yen)

2011/9Interim

Full-term

210

8,000

190.46
180

6,144
6,000

150

4,377

99.32

3,488

3,202

107.93

90

1,566

1,439

135.90

120

4,000

2,000

2010/3

60

48.63

42.08

30
-16.9100-565-2,0002009/3

2010/3

2011/3

2011/9-30

2009/3

2010/3

Total Assets/Net Assets/Equity Ratio (Millions of yen, %)Net Assets per Share (Yen)80,0001,400

Net Assets

Total Assets

68,57770,000

59.3%

59.6%
40,00030,0001,062.30

27,0751,000

50,13945,63429,897927.97840.1860%
58.0%

2011/91,194.61

1,200

59,14360,00050,00065%

Equity Ratio

2011/3800
38,69134,341

600
56.3%

55%

400

20,000200

10,000050%
2009/3

2010/3

2011/3

2011/90
2009/3

2010/3

2011/3

2011/9

Consolidated Financial Statements（Millions of yen）

Balance Sheet
As of September 30,
2011

ASSETS
Current assets

As of March 31,
2011

38,5693,023

29,332
2,321

7,243

4,754

Merchandise and finished goods

6,912

5,914

Work in process
Raw materials and supplies

16,217
450
4,730
(8)
30,007
26,403
9,798
12,748
3,856
2,666
2,128
538
938

12,509530
3,312(10)29,811
26,557
9,349
12,563
4,644
2,556
2,036
519
697

Cash and deposits
Notes and accounts
receivable-trade

Other
Allowance for doubtful accounts
Noncurrent assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Intangible assets
Goodwill
Other
Investments and other assets（Millions of yen）

As of September 30,
2011

LIABILITIESCurrent liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans
payableIncome taxes payable
Provision for bonuses
Provision for repairs
Provision for loss on disaster
Other
Noncurrent liabilities
Long-term loans payable
Provision for retirement benefits
Other
Total liabilities
NET ASSETS
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Accumulated other comprehensive
incomeValuation difference on available-for-sale securities
Deferred gains or losses onhedges
Foreign currency translation
adjustment

Total assets

68,57759,143As of March 31,2011

26,081
4,131

20,475
3,405

15,348

9,448

1,000

1,000

2,531
669
37
20
2,342
3,804
2,000
59
1,744
29,886

2,512
741
100
59
3,208
4,325
2,500
205
1,620
24,80137,494
4,480
6,083
32,657(5,726)

34,7364,480
6,074
29,976(5,795)

1,148(422)2233

1,199(374)

(73)

(81)

Subscription rights to shares
Total net assets

4728

38,69134,341

Total liabilities and net assets

68,57759,143

Consolidated Financial Statements（Millions of yen）

Statements of Income

The six months
The six months
ended September 30, ended September 30,
2011
2010

Net sales

72,74852,486

Cost of sales

64,35644,633Gross profit

8,392

7,853

Selling, general andadministrative expenses

2,417

2,255

Operating income

5,974

5,597

Non-operating income

8535

Non-operating expenses

26156

6,034

5,475

Extraordinary income

159

1

Extraordinary loss

78

8

Income before income taxes andminority interests

6,115

5,468

Income taxes-current

2,484

752

Income taxes-deferred

142

1,513

Income before minority interests

3,488

3,202

Net income

3,488

3,202

Ordinary income（Millions of yen）

Statements of Cash FlowsThe six months
The six months
ended September 30, ended September 30,2011
2010

Net cash provided by (used in)operating activities(2,475)

5,984

Net cash provided by (used in)investing activities(1,374)(2,102)

Net cash provided by (used in)financing activities

4,522(3,341)

Effect of exchange rate change
on cash and cash equivalents

26(40)Net increase in cash andcash equivalents

698501

Cash and cash equivalents atbeginning of period

2,250

1,711

Cash and cash equivalents at
the end of period

2,948

2,212

Stock Information/Corporate Profile■ Total number of authorized shares 129,000,000 shares■ Total number of shares outstanding 36,254,344 shares
100 shares■ Number of shares per trading unit
9,483
■ Number of shareholders■ Principal shareholders

Name

Number of Percentage of_shares held
shares held_(thousands ofshares)(%)_

Japan Trustee Services Bank,
Ltd. (Trust account)

1,554

4.29

TERA ENTERPRISES Co., Ltd.

1,350

3.72

The Master Trust Bank ofJapan, Ltd. (Trust account)

1,098

3.03

Mitsuharu Terayama

1,082

2.99

1,080

2.98

K&M Co., Ltd.

900

2.48

Masamichi Terayama

802

2.21

Asahi Employee Stock
Ownership Plan605

1.67

Terra Corporation., Ltd.

600

1.65

MS planning Co., Ltd.

570

1.57

State Street Bank and Trust
Company 505103(As of September 30, 2011)■ Corporate Profile
Corporate name
FoundedCapital
Number of employees
Business lines

Asahi Holdings, Inc.
April 2009（current Asahi Pretec Corp.
Established in 1952）¥4,480 million
1,280 (Consolidated)
Recycling and sales of precious & raremetals
Industrial waste treatmentSubsidiaries

Asahi Pretec Corp.
Japan Waste Corporation
Nihon Chemitec Co., Ltd.
Sansho Co., Ltd.
Shioiri Kenzai Co., Ltd.
Taiyo Chemical Co., Ltd.
Iyotec Co., Ltd.
Fuji Rozai Co., Ltd.
JW Glass Recycling Co., Ltd.
Ecomax Incorporated
Usuda Manufacturing Co., Ltd.
Kyodo Chemical Co., Ltd.

Foreign subsidiaries

ASAHI G&S SDN. BHD. (Malaysia)
Shanghai Asahi Pretec Co., Ltd. (China)
Asahi Pretec Korea Co., Ltd. (Korea)■ Board of Directors and Corporate Auditors
CEO&COO
Directors

Mitsuharu Terayama
Tsutomu Sakurai
Yoshikatsu Takeuchi
Tomoya Higashiura
Shoji Morii*
Standing Statutory Auditor Yukio Tanabe
Kazuhiko Tokumine*
Statutory Auditor
Junzo Kojima**Outside cooperate executives pursuant to Article 2 of the Companies Act.

Business Network■ Head Offices K O B E Nissei Sannomiya Bldg., 4-4-17 Kano-cho, Chuo-ku, Kobe, 650-0001, Japan
Tel. +81-78-333-5633 (Pilot number) Facsimile +81-78-333-5681

T O K Y O Sapia Tower, 1-7-12 Marunouchi, Chiyoda-ku, Tokyo, 100-0005, Japan
Tel. +81-3-6270-1833 (Pilot number) Facsimile +81-3-6270-1859
http://www.asahiholdings.com■ Research Laboratory■ Plant

Techno Center (Kobe)s Saitama, Amagasaki, Kobe, Ehime,Kitakyushu, Kitakyushu Hibiki, Fukuoka■ Recycling Centers Saitama,Chiba,Amagasaki■ Offices

Sapporo, Aomori, Sendai, Niigata,
Kita-kanto, Kanto, Yokohama,Kofu, Shizuoka, Nagoya, Hokuriku,
Kobe, Okayama, Hiroshima,Shikoku, Fukuoka, Kitakyushu,Kagoshima, Okinawa■ Bases with
ISO 14001

Head office (Kobe), Techno Center, Sendai,
Kitakanto, Nagoya,Hanshin, Kobe, Shikoku,Kitakyushu, Fukuoka■ Bases withISO 9001

Techno Center,Saitama, Ehime, Fukuoka■ Bases withISO 27001

Hanshin-Office Amagasaki Recycling Center,
Saitama Recycling CenterAll prefectures and■ Hauling
government ordinance cities
BusinessPermission■ Disposal
15 prefectures and
10 government ordinance cities
Business
Permission