Consolidated Financial Results for the Fiscal Year Ended March 31, 2015
Asahi Holdings, Inc. [Japan GAAP]May 11, 2015
Stock code:

5857

Shares listed:Tokyo Stock Exchange (First Section)

U R L:

http://www.asahiholdings.com

Representative

Mitsuharu Terayama, Chairman, CEO

For further information please contact:

Katsuya Murashima, Corporate Planning & Communications
Department Manager(Phone) +81-3-6270-1833

The Ordinary General Meeting of Shareholders:June 16, 2015

Filing date of financial statement:

June 17, 2015

Start of dividend payment:
May 29, 2015
Supplementary materials for the financial results: No
Investor conference for the financial results:
Yes (for institutional investors, analysts)(Rounded down to the nearest million yen)
1. Results of the fiscal year ended March 31, 2015 (From April 1, 2014 to March 31, 2015)(1) Results of operations(Percentage: Changes relative to corresponding previous period)
Net sales

Operating income

The fiscal year ended
Millions of yen％
Millions of yen％
March 31, 2015
111,417 18.2
10,4808.8March 31, 2014
94,254 (2.2)
9,631－(Note) Comprehensive income:The fiscal year ended March 31, 2015
The fiscal year ended March 31, 2014

Ordinary income
Millions of yen％

Net income
Millions of yen

10,561
5.7
5,774
9,989
－
5,971
5,973 million yen : (7.0%)
6,420 million yen : －%

％

(3.3)
－

DilutedOrdinary
Operating
Return on
net income
income toincomeequityper share
total assets
to net sales
The fiscal year ended
Yen
Yen
％
％
％
March 31, 2015176.89
－
11.9
12.4
9.4
March 31, 2014
183.50
－
13.6
15.6
10.2
(Note) Retrospective restatement was carried out for the fiscal year ended March 31, 2014, in line with a changein accounting policy. Consequently, year-on-year changes are not provided.
Net income pershare(2) Financial Position
Shareholders’equity ratio
As ofMillions of yen
Millions of yen％
March 31, 2015
104,877
50,95848.2
March 31, 2014
66,112
46,491
70.1(Reference) Shareholders’ equity:
As of March 31, 2015
50,504 million yen
As of March 31, 2014
46,347 million yen
Total assets

Net assets

Net assets per shareYen
1.542.82
1,422.51(3) Cash flows

The fiscal year ended
March 31, 2015
March 31, 2014

Cash flows fromoperatingactivities
Millions of yen
9,419
14,058Cash flows frominvestingactivities
Millions of yen(29,633)(1,090)Cash flows fromfinancing activities
Millions of yen
21,442(8,021)

Cash and cash
equivalents at endof the fiscal year
Millions of yen
10,8419,470

2. Dividend payments
Dividends per share
1st
Quarter

2nd
Quarter

3rd
QuarterYear-end

AnnualThe fiscal Year ended

Yen

Yen

Yen

Yen

Yen

March 31, 2014
March 31, 2015
Year ending
March 31, 2016(Forecast)

－
－

30.00
30.00

－
－

30.00
30.00

60.00
60.00

－

30.00

－

30.00

60.00

3. Forecast (From April 1, 2015 to March 31, 2016)
Net sales
Millions of Yen ％Six months ending
September 30, 2015
Year ending March 31, 2016

Total
Dividend
Payment(Annual)Millionsof yen1,964
1,964

Payout
Ratio

Dividend
to Net Assets(Consolidated) (Consolidated)

%
32.7
33.9

%
4.4
4.0

30.2

(Percentage: Changes relative to corresponding previous period)
Net income

OperatingincomeOrdinary income

attributable toowners of the parent

Millions of Yen％

Millions of Yen％

Millions of Yen ％Net income
per shareYen

63,000

22.0

5,000

7.0

4,900

4.0

3,000

3.1

91.64

129,000

15.8

11,0005.0

10,800

2.3

6,500

12.6

198.56* Notes(1) Changes in significant subsidiaries during the current fiscal year: Yes
New company: one company (Asahi Refining Holdings UK Limited)(Note) For details, please refer to the statement under the heading of “5. Consolidated Financial Statements(5) Notes on Consolidated Financial Statements [Basis of Presenting Consolidated Financial Statements]” onpage 14.
(2) Changes in accounting policies, accounting estimates and restatement(i) Changes in accounting policies resulting from the revision of the accounting standards and otherregulations: Yes(ii) Changes other than (i) above: Yes(iii) Changes in accounting estimates: No(iv) Restatement: No(Note) For details, please refer to the statement under the heading of “5. Consolidated Financial Statements(5) Notes on Consolidated Financial Statements [Changes in accounting policies]” on page 17.
(3) Number of issued shares (common stock)(i) Number of issued shares at the end of year (including treasury shares)
As of March 31, 2015
36,254,344 shares
As of March 31, 201436,254,344 shares(ii) Number of treasury shares at the end of year
As of March 31, 2015
3,519,057 shares
As of March 31, 2014
3,672,457 shares(iii) Averaged number of shares during the period
Year ended March 31, 2015
32,646,918 sharesYear ended March 31, 2014
32,540,417 shares

(Reference) Summary of Nonconsolidated Results
1. Nonconsolidated Results of the Year ended March 31, 2015(From April 1, 2014 to March 31, 2015)(1) Results of operations(Percentage: Changes relative to corresponding previous period)
Net sales
The fiscal year ended
March 31, 2015
March 31, 2014

Millions of yen

6,690
8,189

％

Operating income

Ordinary income

Millions of yen

Millions of yen(18.3)
68.2

Net income per share

5,579
7,088

％

(21.3)
－

5,703
7,120

％

(19.9)－Net income
Millions of yen

5,674
7,009

％

(19.0)－

Diluted net income per share

The fiscal year ended
Yen
Yen
March 31, 2015
173.83－
March 31, 2014
215.41－(Note) Retrospective restatement was carried out for the fiscal year ended March 31, 2014, in line with a change inaccounting policy. Consequently, year-on-year changes are not provided.
(2) Financial Position

As ofMarch 31, 2015
March 31, 2014
(Reference)
Shareholders’ equity

Total assets

Net assets

Millions of yen
50,33546,510Millions of yen
44,726
40,795

As of March 31, 2015 : 44,648 million yen

Shareholders’equity ratio
％
88.7
87.5

Net assets per
share
Yen
1,363.92
1,249.70

As of March 31, 2014: 40,717 million yen*Indication regarding the situation of audit procedures
These financial results are not subject to the audit procedures pursuant to the Financial Instruments andExchange Act. As of the disclosure of the financial results, the procedures for auditing financial statements
pursuant to the Financial Instruments and Exchange Act are in progress.
*Statement regarding the proper use of financial forecasts and other special remarks
These forecast performance figures are based on the information currently available to the company’s
management and certain assumptions judged rational. Accordingly, these might be cases in which actual
results materially differ from forecasts of this report. Please refer to page 2 “1. Information Regarding
Consolidated Performance (1) Consolidated Operating Results for the Year ended March 31, 2015” for theassumptions used and other notes.

【Appendix】

Table of contents of the appendix

1. Information Regarding Consolidated Performance ...................................................................................... 2(1) Consolidated Operating Results for the Year ended March 31, 2015 ....................................................... 2(2) Consolidated Financial Position and Cash Flows for the Year ended March 31, 2015 .............................. 2(3) Dividends .............................................................................................................................................. 3(4) Business and other risks ........................................................................................................................ 3
2. Our Group .................................................................................................................................................. 5
3. Management Policy.................................................................................................................................. 7(1) Basic management policy ................................................................................................................... 7(2) Medium to long-term strategies ........................................................................................................ 7(3) Challenge to be addressed .................................................................................................................. 7(4) The state of internal control system .................................................................................................. 7
4. Basic Concept Regarding Selection of Accounting Standards .............................................................. 7
5. Consolidated Financial Statements ........................................................................................................ 8(1) Consolidated Balance Sheets ............................................................................................................. 8(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income .. 10
Consolidated Statements of Income for the fiscal year ended March 31, 2015 and 2014 .............................. 10
Consolidated Statements of Comprehensive Income for the fiscal year ended March 31, 2015 and 2014 .... 10(3) Consolidated Statements of Changes in Net Assets .............................................................................. 11(4) Consolidated Statements of Cash Flows ......................................................................................... 13(5) Notes on Consolidated Financial Statements ................................................................................. 14[Notes on Assumptions for Going Concern] ...................................................................................................... 14[Basis of Presenting Consolidated Financial Statements] ............................................................................... 14[Changes in accounting policies] ....................................................................................................................... 17[Segment Information]....................................................................................................................................... 18[Per Share Information]..................................................................................................................................... 20[Significant Subsequent Events] ....................................................................................................................... 20
6. Others ..................................................................................................................................................... 21(1)Amounts of Production, Orders Received, Sales.............................................................................. 21

1

1. Information Regarding Consolidated Performance(1) Consolidated Operating Results for the Year ended March 31, 2015
①In the Japanese economy during the consolidated fiscal year ended March 31, 2015, although falling
crude oil prices and the weakened yen had positive effects on corporate activities, sluggish export growth andother factors pressured inventory adjustment, forcing a slowdown. While some believe the worst is now
behind us, especially for manufacturing industries, with the exception of some industries, the recovery
remains moderate. As for personal consumption, the downturn after the consumption tax increase lasted
longer than expected.
Under these economic conditions, the Group's results in each business segment were as follows.
Precious metals recycling businessIn the electronics sector, the Japanese market continues to contract as customers shift operations overseas,
but because the Group worked to expand its E-scrap and precision cleaning businesses, the collection volumeof gold and silver increased from that of the same period a year earlier. In the dental sector, we worked tosecure collection volume even as the volume of precious metals used for domestic dental treatment materials
continued its gradual decline. In the jewelry sector, the sluggish market continued, and the collection volumeof gold and silver decreased compared with the same period a year before. However, the collection volume ofplatinum and palladium increased year-on-year. In the automotive catalyst sector, work on new customer
development led to an increased collection volume of palladium compared with the same period a year earlier.
The average sales price of gold and silver was lower than that of the same period a year before. The averagesales price of palladium was much higher than it was during the same period a year earlier. The averagesales price of platinum was virtually unchanged from that of the same period last year.
Environmental preservation businessAlthough there were some signs of recovery in corporate production activity, overall it cannot be consideredvigorous, and the emission amount of industrial waste are on the decline. Our corporate customers' risingawareness of "reduce, reuse, and recycle" requires diversity in processing and processing cost reductions.
Under these circumstances, Group companies have made sales efforts such as advancing one-stop processing
solutions and the development of new customers. Volume handled, especially effluent and sludge, grew
year-on-year.
Life & health businessIn the construction-related market, rising prices for construction materials and tight supply and demand of
construction-related workers led to delays in commencements and completions of construction works, andalso activities such as reductions in construction budgets. This affected the air conditioning design andinstallation sector and electric heaters sector. In the health equipment sector, the downturn after the
consumption tax increase lasted long and the recovery of personal consumption remained very moderate.
Moreover, the weakening yen since the beginning of the third quarter has raised the cost of procurementsfrom overseas. Group companies in these sectors worked on countermeasures against the increased
procurement cost.
As a result of the above, results for the consolidated fiscal year were as follows. Sales were 111,417 million
yen, a year-on-year increase of 17,162 million yen (18.2 percent). Operating income was 10,480 million yen,
an increase of 848 million yen (8.8 percent) year-on-year. Ordinary income was 10,561 million yen, up 572
million yen (5.7 percent) year-on-year. Net income for the term was 5,774 million yen, a year-on-year decreaseof 196 million yen (3.3 percent). By segment, sales in the precious metals recycling business were 77,080
million yen, a decrease of 131 million yen (0.2 percent) year-on-year. In the environmental preservation
business, sales were 15,415 million yen, a year-on-year increase of 651 million yen (4.4 percent). Sales in thelife & health business were 18,920 million yen, up 16,642 million yen (730.7 percent) year-on-year.
②Outlook
The outlook for the future of the domestic economy is expected to gradually become brighter as recovery inpersonal consumption led by improving real income, a growth in exports, and recovery in corporate capital
investments are expected. The pace is slow, however, so we recognize the need to be cautious regarding views
to the future. Under these conditions, the Group will steadily execute key initiatives outlined in the seventh
mid-term business plan covering the three years through FY 2017, working to expand profits and increase
corporate value.
The projected outlook for the next term is as follows. Projected sales are 129,000 million yen (up 15.8
percent year-on-year). Projected operating income is 11,000 million yen (up 5.0 percent year-on-year).
Projected ordinary income is 10,800 million yen (up 2.3 percent year-on-year). Projected net income
attributable to owners of the parent for the term is 6,500 million yen (up 12.6 percent year-on-year).

(2) Consolidated Financial Position and Cash Flows for the Year ended March 31, 2015
As of this fiscal year ended March 31, 2015, total assets amounted to 104,877 million yen, up 38,764 million
yen from the previous fiscal year end. This was due mainly to increase of 19,716 million yen in goodwill,
increase of 7,926 million yen in property, plant and equipment.
Total liabilities amounted to 53,919 million yen, up 34,298 million yen from the previous fiscal year end.
This was due mainly to increase of 26,933 million yen in loans payable.
Net assets totaled 50,958 million yen up 4,466 million yen from the previous fiscal year end.

2

Net cash provided by operating activities amounted to 9,419 million yen due mainly to 9,717 million yen ofincome before income taxes and minority interests, 1,785 million yen of depreciation and amortization, decrease
in inventories, decrease in notes and accounts receivable-trade, decrease in notes and accounts payable-trade,
and income tax paid.
Net cash used in investing activities amounted to 29,633 million yen due mainly to 28,775 million yen in
payments for purchase of stocks of subsidiaries and affiliates and 1,556 million yen in payments for purchaseof fixed assets.
Net cash provided by financial activities amounted to 21,442 million yen due mainly to 23,183 million yen
increase of loans payable, expenditure of 1,965 million yen for the payment of dividends.
As a result, Cash and cash equivalents as of March 31, 2015, increased 1,371 million yen from March 31,
2014, to 10,841 million yen.

(3) Dividends
Our basic policy is to improve corporate value continuously by maintaining stable profitability andachieving further growth, and to meet shareholders’ expectations by continuous stable dividends. We also
consider it important to fulfill internal reserves for strategic investment to enhance existing business anddevelop new business.
Under this basic policy, the fiscal year’s end dividend will be 30 yen per share, consequently, the annual
dividend per share for the fiscal year ended March 31, 2015 will be totaled 60 yen including the interim
dividend of 30 yen per share.
Further, for the year ending March 31, 2016, we are planning to pay out 30 yen per share for both interim
and year end dividend, making the full year amount 60 yen per share.

(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 arelimited 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 recycling
business are traded on international markets. Their prices fluctuate based on global elements such aspolitical and economic trends in supply countries and demand countries, currency exchange rates, and so on.
The Group therefore hedges through forward transactions, etc., in order to reduce risk, although the size offluctuation 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 stancethat compliance is important, the Group carefully follows laws, regulations, and social rules. However, in theunlikely event that laws, regulations, and social rules could not be followed, or if they change such thatbusiness 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
and treatment 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 thecollection and transport of industrial waste in every prefecture and ordinance-designated city, for its disposal
in 15 prefectures and 9 ordinance-designated cities and core cities, and for the collection and transport ofspecially-controlled industrial waste in every prefecture and ordinance-designated city, for its disposal in 12
prefectures and 8 ordinance-designated cities and core cities. Obtaining such licenses is predicated on strict
compliance with regulations at the regional level, including each prefectural and municipal ordinance andrule.
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, andrenovation of disposal facilities require construction permits and permission to change. On such occasions,the consent of nearby residents may also be necessary, 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 precious metals
recycling business and environmental preservation business. Demand trends in each sector within theseindustries are affected by economic conditions in various countries and regions. When demand from suchindustries declines due to recession and so on, it can affect the Group's operating results and financial
condition. Moreover, large reductions in construction-related demand or falls in personal consumption canaffect the life & health business, in turn affecting the Group's operating results and financial condition.
④ Business environment
All three of the Group's business segments, the precious metals recycling business, the environmental3

preservation business, and the life & health business, face the possibility of major changes in customer needs
due to changes in laws, regulations, and permits that concern a sector or faster-than-expected shifts overseas
by corporate customers. Furthermore, industry reorganization and other major changes in the businessenvironment are possible. The results could affect the Group's operating results and financial condition.
⑤ Intensified competition
All three of the Group's business segments, the precious metals recycling business, the environmental
preservation business, and the life & health business, face competition from various companies. The Group
continues to make efforts to overcome the competition in each sector by accurately meeting customer needs
through sales efforts and initiatives on technology, products, and cost responsiveness. Intensified competition
from competitor companies, however, can force 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
The Group carries out business in countries and regions in North America, Asia, etc. Political or economic
phenomena unfavorable to business, labor disputes due to differences in labor environment, uncertainty infinding suitable local personnel, conflicts, terrorism, and other social disturbances, and unfair intervention byauthorities due to underdeveloped business infrastructure in a country or region are inherent risks. If suchsituations 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 to attractive cases in the future. In order to maximize theintegration effect with target businesses and companies, the Group will attempt to integrate and unify themwith its business strategy and operations. However, it is possible that the expected integration andunification effects will not be realized. Furthermore, target businesses and companies not achieving thebusiness results initially expected and posting markedly worse operating results could lead to impairment of
goodwill. The results could affect the Group's operating results and financial condition.
⑧ Natural disasters, accidents, etc.
Natural disasters such as large earthquakes or typhoons could cause serious damage to the Group's
production, distribution, sales, and information management facilities. That could affect the Group's
operating results and financial condition. Moreover, although the Group works to strengthen its safety
management system and regularly carries out disaster/accident prevention activities in order to eliminate
occupational and facilities accidents, 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.
⑨ New product development
The Group's life & health business aims to provide devices and equipment that are "people-friendly, forbetter life and health." We develop attractive products by accurately assessing customer needs and optimally
applying the Company's technology. However, if we are unable to respond accurately to market and industry
needs and carry out timely product development, it could lessen future growth and profits, affecting theGroup's operating results and financial condition.
⑩ 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 toeffectively prevent third parties from using the Group's intellectual property rights to manufacture and sellsimilar products and services. The results could affect the Group's operating results and financial condition.
⑪ Product quality assurance and product liability
The Group makes every effort with its product quality assurance system, but if a product produced by theGroup causes damages, it could affect the Group's operating results and financial condition.
⑫ Environmental protection
Based on its Environmental Policies, the Group carries out various initiatives to protect the global
environment. However, there is no guarantee that all pollution and other environmental risk can becompletely 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.
⑬ 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. If the Group becomes a party to such action, it might have to pay large damages, etc. The results
could affect the Group's operating results and financial condition.

42. Our Group
Our Group comprises of the holdings company “Asahi Holdings, Inc.”, “Asahi Pretec Corp.”, “Japan Waste
Corporation”, “Asahi Americas Holdings, Inc.”, and 21 other subsidiaries. Our main businesses are precious
metals recycling business, environmental preservation business and life & health business. The details are as
follows.

(1) Precious metals recycling businessIn the precious metals recycling business, we sell precious/rare metal products such as gold, silver,
platinum, palladium, and indium 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, film manufacturers, etc. also engages in precision cleaning andprecious metal delamination of manufacturing equipment parts from semiconductor/electronic component
makers.
Overseas, Asahi G&S Sdn. Bhd. in the Malaysia/Singapore region, Shanghai Asahi Pretec Co., Ltd. in
China, Asahi Pretec Korea Co., Ltd. in South Korea, and Asahi Pretec Taiwan Co., Ltd. in Taiwan are
engaged in the precious metals recycling business. Additionally, Asahi Pretec Taiwan Co., Ltd. is engaged in
the precious metal recycling and the precision cleaning business and Asahi Shih Her Technologies Co., Ltd.
collects scraps containing precious metals in Taiwan. Furthermore, Asahi Refining USA Inc. and Asahi
Refining Canada Ltd. carry out the refining and processing of gold, silver, and other 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, andmedical-related waste generated by sites in various industries, such as factories, photo labs, printing presses,
hospitals, schools, and research institutes. Additionally, a group of companies with Japan Waste Corporation
as their parent firm is engaged in the environmental preservation business as follows. Nihon Chemitech Co.,
Ltd. and JW Logistics, Co., Ltd. mainly perform the collection, transport, and intermediate treatment ofindustrial waste generated by factories. Iyotec Co., Ltd. engages in business such as dispatch of personnel tomanufacturers and collaborates on the treatment of waste from industrial sites. Taiyo Chemical Co., 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. Ecomax Co., Ltd. performs detoxification (concrete solidification) treatment of combustion residue,
sludge, soot, and dust produced by incineration facilities. Kyodo Chemical Co., Ltd. carries out collection,transport, and intermediate treatment of industrial waste and engages in the photographic materials
business.

(3) Life & health businessIn the life & health business, the main operation is the manufacture and sale of massagers, hearing aids,
and other health equipment, the manufacture and sale of electric heaters, the design and installation ofradiant heating and air conditioning systems, and the design and installation of disaster prevention
equipment.
As "The Health and Beauty Manufacturer," FUJI MEDICAL INSTRUMENTS MFG. CO., LTD. provides
various products approved under the Pharmaceutical Affairs Act, such as massage chairs, hearing aids, andelectric therapy apparatus for household use, to electronics store, JA (Japan Agricultural Cooperatives)channel, regional consumer electronics dealers, mail-order companies, and so on. INTER CENTRAL, INC.,
manufactures and sells electric heaters and designs and installs radiant heating and air conditioning systems.
They offer products such as electric heaters that provide warmth efficiently and flexibly and radiant heating
and air conditioning equipment that achieves comfortable, clean, and quiet environments. Their products areused in offices, schools, hospitals, cultural facilities, commercial facilities, and ordinary homes. KOEIKOGYO
CO., LTD., designs and installs disaster prevention, air conditioning, and sanitation equipment. They havesuccessfully installed equipment in many public facilities, hospitals, cultural facilities, and commercial
facilities.

5Precious Metal Recycling Business

Environmental Preservation BusinessLife and Health BusinessAsahi Holdings, Inc.
Asahi Americas Holdings，Inc.

Asahi Pretec Corp.

Japan Waste Corporation①

Overs eas Ba s es

Overs ea s Ba s es

（UK）

（Malaysia）
Asahi G&S
Sdn. Bhd.

Asahi Refining
運転によるHoldings UK
Limited（USA）
Asahi Refining
USA Inc.

②

Domes tic Ba s es

Nihon ChemitechCo., Ltd.

JW Logistics,
Co., Ltd.
（China）
Shanghai Asahi
Pretec Co., Ltd.

Taiyo ChemicalCo., Ltd.

（Canada）
Asahi Refining
Canada Ltd.
Iyotec Co., Ltd.
（Korea）
Asahi Pretec
Korea Co., Ltd.

Fuji Rozai Co., Ltd.

JW Glass RecyclingCo., Ltd.
（Taiwan）
Asahi Pretec
TaiwanCo., Ltd.

Ecomax Co., Ltd.

Asahi Shih Her
Technologies
Co., Ltd.

Kyodo ChemicalCo., Ltd.
Other 2 Companies（Notes）capital relationship①②business relationship

Selling recycling scrap containing precious / rare metals
Entrustment of industrial waste treatment* All companies except for parent company (Asahi Holdings, Inc.) are consolidated subsidiaries

6

Domes ti c Ba s es

INTER CENTRAL, INC.

KOEIKOGYO
CO., LTD.

FUJI MEDICALINSTRUMENTS MFG.
CO., LTD.

3. Management Policy(1) Basic management policy
We aim to pursue continuous growth by expanding precious metals recycling business, environmental
preservation business and life & health business, and also contribute to the material-cycle society. In theprocess above, we put emphasis on the balance between stable profit and continuous growth. Our basic
management policy is to heighten corporate value through these activities and to respond to the expectationsof all stakeholders, including customers, shareholders and employees over a long period of time.

(2) Medium to long-term strategies
In accordance with the 7th Mid-Term Business Plan (April 2015 through March 2018), the Group aims topursue these actions: “Accelerated growth via new business areas”, “Enhancement of the profitability of corebusiness” and “Promotion of global management”. Also, the consolidated performance goal in the last fiscal
year of the 7th Mid-Term Business Plan is as follows.
As for dividends, during each fiscal year, 30 - 35% of current net profit shall be allotted for return toshareholders.
Net sales¥ 170 billion
Operating income¥ 16 billion
Statements regarding future performance targets in this document are based on information held by ourgroup at this time and on certain assumptions judged reasonable. Due to various factors, actual performance
may differ from what is found in this document.

(3) Challenge to be addressed
Precious metals recycling business segment: As it is the Group's core business, the competitiveness of each
Japanese domestic business shall be enhanced. Along with working to expand the business base in North
America, we shall work on expansion of new fields in Asian markets. Along with raising awareness of the“Asahi Refining” brand, we shall expand processing volumes of recycling raw materials in the global market.
Environmental preservation business segment: As it is a stable growth business of the Group, profitability
shall be emphasized, and active capital expenditure shall be performed. M&A of companies that cancontribute to growth will continue.
Life and health business segment: Through new business development, the opening of new sales channels,
and the building of a unique business model, it shall be set on the path of business growth as the Group's
third business pillar.

(4) The state of internal control system① The state of fundamental opinion and policy about corporate governance
The relevant matter is stated at corporate governance information.
② Attempt to enhance internal control system through this fiscal year
We are continuously acting to strengthen internal control system, checking and evaluating the usages of
the rule for internal control by in-house organization “Internal controls promotion committee”.

4. Basic Concept Regarding Selection of Accounting Standards
We are planning to apply International Financial Reporting Standards (IFRS) with the objectives of enhancing ourmanagement base for global business development and enabling easier international comparison of financial information incapital markets from the first quarter of fiscal year ending March 31, 2017.

7

5. Consolidated Financial Statements(1) Consolidated Balance Sheets

ASSETS
Current assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Net defined benefit asset
Other
Allowance for doubt for accounts
Investment and other assets
Total noncurrent assets
Total assets

As of March 31,
2014Millions of yen

As of March 31,
2015
Millions of yen

As of March 31,
2015
Thousands of
U.S. dollars

9,640
11,319
4,094
8,596
1,107
688
2,191
(120)
37,517

11,04615,146
4,855
9,141
1,633
854
5,919
(40)
48,55691,925126,041
40,40576,071
13,592
7,108
49,259(335)
404,065

18,219(9,239)8,979
13,305(11,493)
1,811
13,122226
2,486(2,220)266
24,40724,360(12,062)
12,29819,917(14,903)
5,013
14,56838
3,529(3,113)415
32,334

202,719(100,379)
102,339
165,747(124,024)
41,724
121,230318
29,371(25,912)3,459
269,070

2,021
835
2,856

21,737906
22,643

180,890
7,540
188,430

171
123
－
1,042
(5)
1,331
28,595
66,112

168
368
154
676
(24)
1,343
56,321
104,877

1,406
3,070
1,283
5,626
(204)
11,181
468,681872,746

U.S. dollar amounts represent translations using the approximate exchange rate on March 31, 2015 ofYen120.17=US$1, and are included solely for the convenience of readers.

8LIABILITIESCurrent liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Accounts payable-other
Income taxes payable
Provision for bonuses
Provision for directors’ bonuses
Provision for repairs
Provision for product warranties
Provision for sales rebates
Provision for sales returns
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Deferred tax liabilities
Net defined benefit liability
Other
Total noncurrent liabilities
Total liabilities
NET ASSETS
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total accumulated other comprehensive income
Subscription rights to shares
Minority interests
Total net assets
TOTAL LIABILITIES AND NET ASSETS

As of March 31,
2014Millions of yen

As of March 31,
2015
Millions of yen

As of March 31,
2015
Thousands of
U.S. dollars

3,643
495
143
1,517
2,635
600
39
101
16
－
－
3,151
12,342

6,161
26,171
270
3,473
2,111
747
36
106
85
371
13
6,053
45,603

51,275
217,789
2,247
28,903
17,572
6,224
305
888
713
3,095
110
50,371
379,490

5,419
1,697
122
38
7,278
19,621

6,550
1,567
126
72
8,316
53,91954,506
13,045
1,053
603
69,207
448,697

4,480
6,038
40,648(5,379)45,7884,480
6,038
44,459(5,159)49,81937,28750,252369,971(42,936)
414,574

15
(121)
665
559
77
66
46,491
66,112

33
313
338
685
77
375
50,958104,877

276
2,608
2,819
5,703
648
3,124
424,049
872,746

U.S. dollar amounts represent translations using the approximate exchange rate on March 31, 2015 ofYen120.17=US$1, and are included solely for the convenience of readers.

9(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income for the fiscal year ended March 31, 2015 and 2014

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

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

The fiscal year
ended March 31,
2014Millions of yen

The fiscal year
ended March 31,
2015
Millions of yen

The fiscal year
ended March 31,
2015
Thousands of
U.S. dollars

94,25479,01815,235
5,604
9,631
393
35
9,989
46
136
9,899
3,942
(13)
3,928
5,970
(0)
5,971

111,417
88,34023,076
12,595
10,480183
102
10,561
19
863
9,717
3,916
(40)
3,875
5,842
67
5,774

927,162
735,132
192,031
104,818
87,213
1,524
849
87,888162
7,186
80,86432,588(339)
32,24948,615559
48,056

Consolidated Statements of Comprehensive Income for the fiscal year ended March 31, 2015 and 2014
The fiscal year
ended March 31,
2014Millions of yen

The fiscal year
ended March 31,
2015
Millions of yen

The fiscal year
ended March 31,
2015
Thousands of
U.S. dollars

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

5,970

5,842

48,615

(3)
(79)
511

18
434
(298)

150
3,618
(2,480)

21

(23)

(194)

449
6,420

131
5,973

1,094
49,709Comprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests

6,413
6

5,900
72

49,104
605

U.S. dollar amounts represent translations using the approximate exchange rate on March 31, 2015 ofYen120.17=US$1, and are included solely for the convenience of readers.

10(3) Consolidated Statements of Changes in Net Assets
For the year ended March 31, 2014
(Millions of yen)
Shareholders’ equity
Capital stock Capital surplus
Balance at April 1, 2013

4,480

Cumulative effects of changes inaccounting policies

Restated balance at April 1,
2013

4,480

Retainedearnings

Treasury stock

Total
shareholders’equity6,087

36,697(5,507)41,758

(48)

(56)

7

(97)

6,038

36,641(5,499)41,661

Changes of items during
the period
Dividends from surplus(1,964)(1,964)

Net income

5,971

5,971

Purchase of treasury stock

(1)

(1)

Disposal of treasury stock
Net changes of items otherthan shareholders’ equity
Total Changes of items
during the period
Balance at March 31, 2014

121

121

－

－

4,006

120

4,127

4,480

6,038

40,648(5,379)45,788(Millions of yen)
Accumulated other comprehensive income

Balance at April 1, 2013

Valuationdifference on
available-forsale
securities

Deferred
gains orlosses onhedges

Total
Subscription
Foreignaccumulated rights to Minority Total net
currencyinterests assets
othersharestranslation comprehensive
adjustment
income

19

(41)

139

116

77

59

Cumulative effects of changes inaccounting policies

Restated balance at April 1,
2013

42,012
(97)

19

(41)

139

116

77

59

41,915

Changes of items during
the period
Dividends from surplus(1,964)

Net income

5,971

Purchase of treasury stock(1)

Disposal of treasury stock
Net changes of items otherthan shareholders’ equity
Total Changes of items
during the period
Balance at March 31, 2014

121
(3)

(79)

526

442

－

6

449

(3)

(79)

526

442

－

6

4,576

15

(121)

665

559

77

66

46,491

11

For the year ended March 31, 2015
(Millions of yen)
Shareholders’ equity
Capital stock Capital surplus
Balance at April 1, 2014

4,480

Retainedearnings

6,038

Treasury stock

Total
shareholders’equity(5,379)45,78840,648Cumulative effects of changes inaccounting policies

Restated balance at April 1,
2014

－
4,480

6,038

40,648(5,379)45,788Changes of items during
the period
Dividends from surplus(1,964)(1,964)

Net income

5,774

5,774

Purchase of treasury stock

(0)

(0)

Disposal of treasury stock
Net changes of items otherthan shareholders’ equity
Total Changes of items
during the period
Balance at March 31, 2015

221

221

－

－

3,810

220

4,030

4,480

6,038

44,459(5,159)49,819(Millions of yen)
Accumulated other comprehensive income

Balance at April 1, 2014

Valuationdifference on
available-forsale
securities

Deferred
gains orlosses onhedges

Total
Subscription
Foreignaccumulated rights to Minority Total net
currency
Interests assets
othersharestranslation comprehensive
adjustment
income

15

(121)

665

559

77

66

Cumulative effects of changes inaccounting policies

Restated balance at April 1,
2014

46,491
－

15

(121)

665

559

77

66

46,491

Changes of items during
the period
Dividends from surplus(1,964)

Net income

5,774

Purchase of treasury stock(0)

Disposal of treasury stock
Net changes of items otherthan shareholders’ equity
Total Changes of items
during the period
Balance at March 31, 2015

221
17

434

(326)

125

－

309

435

17

434

(326)

125

－

309

4,466

33

313

338

685

77

375

50,95812

(4) Consolidated Statements of Cash Flows
For the year ended March 31, 2015 and 2014

Net cash provided by (used in) operating activities
Income before income taxes and minority interests
Depreciation and amortization
Impairment loss
Amortization of goodwill
Increase (decrease) in net defined benefit liability
Interest and dividends income
Interest expenses
Loss (gain) on sales and retirement of noncurrent assets
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accounts payable-other
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Proceeds from collection of guarantee deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of stocks of subsidiaries and affiliates
Proceeds from sales of shares of subsidiaries and affiliates

Proceeds from liquidation of subsidiaries and associates

Other, net
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Repayments of finance lease obligations
Purchase of treasury stock
Proceeds from sales of treasury stock
Cash dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

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

The fiscal
year ended
March 31,
2014
Millions of yen

The fiscal
year ended
March 31,
2015
Millions of yen

The fiscal
year ended
March 31,2015
Thousands of
U.S. dollars

9,899
1,842
102
387
12
(31)
21
24
1,636
1,152
724
(74)
26
15,72644(23)(2,436)
747
14,058

9,717
1,785
57
649
2
(39)
54
59
943
903
(646)
767
(342)
13,91144(54)(5,922)
1,439
9,419

80,864
14,859
478
5,401
24
(332)
449
499
7,852
7,516
(5,383)
6,385(2,849)115,763373(452)(49,282)
11,97978,381

(79)
－
34
(679)
62
(207)
(156)
－
－
(63)
(1,090)

(109)
82
130
(1,345)
127(210)(28,775)
116
15
335(29,633)

(914)
686
1,090
(11,199)
1,065(1,755)(239,459)
972
125
2,791
(246,600)(9,750)5,100(1,510)
(40)
(1)
145
(1,964)(8,021)
381
5,328
4,141
9,470

25,676－(2,492)
(45)
(0)
270
(1,965)21,442
143
1,371
9,470
10,841

213,667－(20,745)
(376)
(7)
2,253
(16,355)(178,437)
1,191
11,40978,806
90,215

U.S. dollar amounts represent translations using the approximate exchange rate on March 31, 2015 ofYen120.17=US$1, and are included solely for the convenience of readers.

13(5) Notes on Consolidated Financial Statements[Notes on Assumptions for Going Concern]
Not applicable[Basis of Presenting Consolidated Financial Statements]
1. Scope of consolidation(1)Number of consolidated subsidiaries: 24
Major consolidated subsidiaries
Asahi Pretec Corp.
Japan Waste Corporation
Nihon Chemitech Co., Ltd.
JW Logistics, Co., Ltd.
Taiyo Chemical Co., Ltd.
Iyotec Co., Ltd.
Fuji Rozai Co., Ltd.
JW Glass Recycling Co., Ltd.
Ecomax Co., Ltd.
Kyodo Chemical Co., Ltd.
INTER CENTRAL, INC.
KOEIKOGYO CO., LTD.
FUJI MEDICAL INSTRUMENTS MFG. CO., LTD.
Asahi G&S Sdn. Bhd.
Shanghai Asahi Pretec Co., Ltd.
Asahi Pretec Korea Co., Ltd.
Asahi Pretec Taiwan Co., Ltd.
Asahi Shih Her Technologies Co., Ltd.
Asahi Americas Holdings, Inc.
Asahi Refining Holdings UK Limited
Asahi Refining USA Inc.
Asahi Refining Canada Ltd.
and 2 other companies
FUJI MEDICAL INSTRUMENTS MFG. CO., LTD. has become consolidated subsidiary on July
2014 due to stock acquisition.
Asahi Americas Holdings, Inc. has become consolidated subsidiary on December, 2014 due to
newly establishment.
Asahi Refining Holdings UK Limited and its two subsidiaries (Asahi Refining USA Inc., Asahi
Refining Canada Ltd.) have become consolidated subsidiary on March, 2015 due to stockacquisition.
Additionally, Usuda Manufacturing Co., Ltd. has been excluded from scope of consolidation due
to merger with Asahi Pretec Corp on October, 2014.
(2) Major unconsolidated subsidiaries
None
2. Equity method affiliate
None
Jiangmen Asahi Pretec Kanfort Environmental Managemant Co., Ltd. has been excluded from equity
method affiliate due to stock sales.
3. Fiscal year of consolidated subsidiaries
Among consolidated subsidiaries, the fiscal year end of Asahi G&S Sdn. Bhd., Shanghai Asahi Pretec
Co., Ltd., Asahi Pretec Korea Co., Ltd., Asahi Pretec Taiwan Co.,Ltd and Asahi Shih Her Technologies
Co.,Ltd. is December 31 of each year. For the preparation of consolidated financial statements, thecompany uses financial statements as of December 31 and makes adjustments as necessary forconsolidation in relation to significant transactions during their year-end date and the consolidated
year-end date.
4. Accounting policies(1) Valuation standards and methods for major assetsa) Securities
Other securities
1): Other securities for which market quotations are available are stated at fair value prevailingat the balance sheet date with unrealized gains and losses, directly included in net assets. The costof securities sold is determined by the moving-average method.
2): Other securities for which market quotations are not available are valued at cost mainly
determined by the moving-average method.
b) Derivative
Market price methodc) Inventories

14

Merchandise and finished goods, work in process, raw materials and supplies
Stated at cost. Cost is determined mainly by the moving-average method (the method of
write-downs based on the decrease in profitability is applied in order to calculate the inventory
value on the balance sheet).
Note: A part of merchandise and finished goods is determined by individual cost method based on
the actual cost method.
(2) Depreciation and amortization for major assetsa) Property, plant and equipments other than leased assets
The company and domestic consolidated subsidiaries: declining-balance method
Note: Buildings acquired on or after April 1, 1998 other than equipments: straight-line method
Foreign consolidated subsidiaries: straight-line method based of accounting standards of local
country
Useful life of principle assets is as follows:
Buildings and structures
2 to 50 years
Machinery, equipment and vehicles
2 to 17 yearsb) Intangible assets other than leased assets
The company and domestic consolidated subsidiaries: straight line method
Foreign consolidated subsidiaries: straight-line method based on accounting standards of local
country.
Software for internal use is amortized under the straight-line method over the expected useful
lives.
c) Leased assets
Leased assets related to financial leases that do not transfer ownership rights to the lessees areamortized under the straight-line method based on the lease term as the useful life and residual
value of zero.
(3) Significant allowancesa) Allowances for doubtful accountTo prepare for uncollectible credits and loans, general allowance of the company and domestic
consolidated subsidiaries is recorded based on the actual bad debt ratio, and specific allowance isrecorded based on the amount deemed to the uncollectible considering the collectibility.
As for foreign consolidated subsidiaries, specific credits are based on estimated uncollectableamount.
b) Provision for bonuses
To allow for the payment of bonuses to employees, the company records the standard for
estimated amounts of bonuses to be paid.
c) Provision for director’s bonuses
To allow for the payment of bonuses to directors, the company records the standard for estimatedamounts of bonuses to be paid.
d) Provision for repairs
To allow our payment of periodic maintenance of production equipments, the company records
the amount of estimated cost to be paid during this fiscal year.
e) Provision for product warranties
To allow for cost of after-sales service, the company records the actual cost of the past to be paid.
f) Provision for sales rebates
To allow for sales rebates, the company records the cost of this fiscal year’s portion of theestimated sales rebate.
g) Provision for sales returns
To allow for sales returns, the company records the estimated sales returns losses at the year end of this fiscal year.
(4) Retirement benefitsa) Method of attributing expected benefit to periods
When calculating retirement benefit obligations, benefit formula is used for attributing expected
retirement benefits to periods through March 31, 2015.
b) Amortization of actual gain or loss, prior service cost and others
Prior service costs are expensed in a lump sum in the fiscal year in which they arise.
Actuarial differences are expensed in a lump sum in the fiscal year in which they arise.
c) Simplified method for small companies
Some domestic consolidated subsidiaries use the simplified method to calculate defined benefit
liabilities and related costs.
(5) Foreign currency transactions
All monetary assets and liabilities denominated in foreign currencies are translated into Japanese yenat the exchange rates prevailing at the balance sheet date. Resulting gains and losses are included in
net profit or loss for the period. All assets and liabilities of foreign subsidiaries and affiliates are15

translated into Japanese yen at the exchange rates prevailing at the balance sheet date. Revenues andexpenses for the year are translated into Japanese yen at the average exchange rate during the year andtranslation adjustments are included in “Foreign currency translation adjustments of “Net assets.”(6) Main hedge accounting methodsa) Hedge accounting methods
The company accounts for hedging activities under deferral hedge accounting. Furiate-shori(accounting method in which the current and forward rate difference is allocated by period length
for the calculation at the accounting period) is applied to forward foreign exchange contracts which
conform to the requirements of such hedge accounting.
b) Hedging instruments and targets
1. Hedging instruments
Derivative transaction
Hedged targets
Precious metal products
2. Hedging instruments
Exchange contract
Hedged targets
Monetary assets and liabilities denominated in foreign currenciesc) Hedge policy
To reduce the precious metal market price risk and to improve income and expenditure balance,
the company hedges price fluctuation risk and exchange rate risk based on internal rules.

(7) Amortization of goodwill
By judging respective case, goodwill is amortized under the straight-line method within a period of 20
years.
(8) Cash and cash equivalents in the consolidated cash flow statements
Cash and cash equivalents are composed of cash on hand, bank deposits able to be withdrawn on
demand and short-term highly liquid investments with a maturity of three months or less at the time ofpurchase and which bear lower risks from fluctuations in value.
(9) Accounting method for consumption taxes
Consumption taxes are accounted for using the net method of reporting.

16

[Changes in accounting policies](Change in valuation method for inventories)
Our method for valuation of inventories has been mainly the weighted-average method (the method of
write-downs based on the decrease in profitability in order to calculate the inventory value on the balance
sheet). Beginning with the current fiscal year, we changed to mainly the moving-average method (themethod of write-downs based on the decrease in profitability in order to calculate the inventory value on
the balance sheet).
The aims of this change are to respond to fluctuations in metals prices, carry out management of
inventories by item and by process precisely and on time, value inventories, and perform periodic
accounting of profit and loss more accurately. It accompanies the introduction of a new IT system.
Because we did not preserve the inventory receipts and payments records that would be needed in orderto calculate unit costs with the moving-average method for past fiscal years, it is impossible toretroactively apply this accounting policy to determine cumulative effects. Therefore, the book values ofinventories at the end of the previous fiscal year were carried over as initial balances for the current fiscal
year, with the moving-average method being used from the beginning of this term.
Compared to the past method, it decreases operating income, ordinary income, and income before income
taxes and minority interests by 122 million yen each, and net income by 79 million yen for the fiscal year.
(Application of the "Practical Solution on Transactions of Delivering the Company’s Own Stock to
Employees etc. through Trusts")
We began applying the "Practical Solution on Transactions of Delivering the Company’s Own Stock to
Employees etc. through Trusts" (ASBJ PITF No. 30, March 26, 2015) during the current fiscal year. When
we deliver treasury stock to the trust, we recognize the disposal balance. Profit or loss related to sales ofshares by the trust to the employee stock ownership plan, dividends paid by us on shares held by the trust,and net charges related to the trust are included by us as liabilities. This change in accounting policy wasapplied retrospectively to past fiscal years, and the results are included in the relevant financial
statement.
Consequently, compared with figures before this retroactive application, as of the end of the previous
fiscal year, other current liabilities increased by 124 million yen, and capital surplus decreased by 69
million yen, retained earnings decreased by 67 million yen, and treasury stock decreased by 4 million yen.

17

[Segment Information]
1. Overview of reporting segments
The Company's reporting segments are those Company 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, theoperating companies engage in the precious and rare metals recycling business, industrial waste
management and other environmental preservation business, and life & health business manufacturing
and selling health equipment and other.
Therefore, the Company is composed of product and service segments based on business sectors. The
three reporting segments are the precious metals recycling business, the environmental preservation
business, and the life & health business.
During the consolidated fiscal year, we established the life & health business in order to carry out
appropriate information disclosure of the Group's corporate activities after FUJI MEDICALINSTRUMENTS MFG. CO., LTD. became a Group subsidiary.
The precious metals recycling business engages mainly in recycling and selling precious and rare metals
such as gold, silver, palladium, platinum, and indium from scrap and others containing such metals. The
main work of the 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 sale ofmassagers, hearing aids, and other health equipment, the manufacture and sale of electric heaters, thedesign and installation of radiant heating and air conditioning systems, and the design and installation ofdisaster prevention equipment.
The previous consolidated fiscal year's segment information has been created with the reporting
segments divided as they are after the change.
2. Accounting method to calculate segment information on sales and income (loss), identifiable assets, andother items
The accounting method to calculate segment information is same as the method noted in [Basis of
Presenting Consolidated Financial Statements].
(Change in valuation method for inventories)
Our method for valuation of inventories has been mainly the weighted-average method (the method of
write-downs based on the decrease in profitability in order to calculate the inventory value on the balance
sheet). Beginning with the current fiscal year, we changed to mainly the moving-average method (themethod of write-downs based on the decrease in profitability in order to calculate the inventory value on
the balance sheet).
Compared to the past method, it decreases operating income by precious metals recycling businesssegment for the current term by 122 million yen.
(Application of the "Practical Solution on Transactions of Delivering the Company’s Own Stock to
Employees etc. through Trusts")
As mentioned in [Changes in accounting policies], we applied the "Practical Solution on Transactions ofDelivering the Company’s Own Stock to Employees etc. through Trusts" (ASBJ PITF No. 30, March 26,2015) during the current fiscal year.

18

3. Information on sales and income (loss), identifiable assets, and other items by reporting segment
For the fiscal year ended March 31, 2014(From April 1, 2013 to March 31, 2014)(Millions of Yen)
Life & healthbusiness

Preciousmetal
recycling business

Environmental
preservationbusiness

77,212

14,764

2,277

94,254－－－－

77,212

14,764

2,277

94,254

Operating income by business segment

7,437

1,913

280

9,631

Identifiable asset by business segment

42,225

19,428

4,458

66,112

1,063

746

33

1,842

Amortization of goodwill

15

294

77

387

Investment to equity-method affiliates

103

－

－

103

Increase of property, plant andequipment and intangible assets

493

579

35

1,108

Total

Net sales
1) Customers
2) Intersegment
Total

Other items
Depreciation and amortization(Note) 1. Total segment income matches operating income recorded on the consolidated statements of income.
2. Increase in depreciation, property and equipment, and intangible assets includes long-term prepaid
expenses and amortization of that related to these expenses.
For the fiscal year ended March 31, 2015(From April 1, 2014 to March 31, 2015)(Millions of Yen)
Life & healthbusiness

Preciousmetal
recycling business

Environmental
preservationbusiness

77,08015,41518,920111,417

－

－

－

－

77,08015,41518,920111,417

Operating income by business segment

7,825

2,134

520

10,480Identifiable asset by business segment

66,25018,977

19,649104,877

Depreciation and amortization

942

680

162

1,785

Amortization of goodwill

15

293

339

649

Investment to equity-method affiliates

－

－

－

－

Increase in property, plant andequipment and intangible assets

595

677

248

1,521

Total

Net sales
1) Customers
2) Intersegment
Total

Other items(Note) 1. Total segment income matches operating income recorded on the consolidated statements of income.
2. Increase in depreciation, property and equipment, and intangible assets includes long-term prepaid
expenses and amortization of that related to these expenses.

19[Per Share Information]

Year ended March 31, 2014

Year ended March 31,2015

Net assets per share (Yen)

1,422.51

1,542.82

Net income per share (Yen)

183.50176.89(Note) 1. Not given as the company has no potential stocks with dilution effect.
2. The following shows the basis of calculating net income per share
Year ended March 31, 2014
Net income for the fiscal year (Millions of yen)
Monetary value not related to common
stockholders (Millions of yen)
Net income related to common stock(Millions of yen)

Year ended March 31,2015

5,971

5,774

－

－

5,971

5,774

32,54032,646

Number of weighted average common shares
outstanding during the fiscal year
(Thousands of shares)
Overview of potential stock not included in2010 Stock Option（common stock 202,000 shares）

calculation of diluted net income
per share because the stock have no dilution
effect[Significant Subsequent Events]
Not applicable206. Others(1)Amounts of Production, Orders Received, Sales（Amount: millions of yen）

①Production
Year ended
March 31,2014
AmountYear ended
March 31,2015

Year-on-Year

AmountYear-on-YearGold

46,69799.5%

44,555

95.4%

Silver

5,661

38.3%

3,995

70.6%

Palladium

10,747120.6%

14,196132.1%

Platinum

7,007

106.0%

8,603

122.8%

Indium6,720

172.4%

9,667

143.8%

Industrial waste treatment

17,091－%

17,706103.6%

Other

2,278

－%

18,919830.3%

Total

96,203

97.0%

117,644122.3%(Note)1. Amount is provided on the basis of their sales prices.
2. Reporting segments have been changed from this fiscal year, and the figures for the year-ago period
have been recalculated in accordance with the new segment configuration for comparison purposes.
②Orders received
As we do production according to the amount of the collection, there is no applicable information in thePrecious metals recycling business and Environmental preservation business.
We do production along with the production plan based mainly on the sales plan in the Life & healthbusiness.
(Amount: millions of yen）

③SalesYear ended
March 31,2014
AmountYear ended
March 31,2015

Year-on-Year

AmountYear-on-YearGold

37,480107.5%

38,867103.7%

Silver

6,935

48.1%

4,941

71.3%

Palladium

12,567124.3%

17,517139.4%

Platinum

8,108

106.5%

8,701

107.3%

Indium771

248.8%

131

17.0%

Industrial waste treatment

17,091－%

17,706103.6%

Other

11,300－%23,550208.4%

Total

94,25497.8%

111,417118.2%(Note)Reporting segments have been changed from this fiscal year, and the figures for the year-ago period havebeen recalculated in accordance with the new segment configuration for comparison purposes.

21