Financial
Results
2019年3月期
for
決算説明資料
FY2019(April 1, 2019 ~ March 31, 2020)(2018年4月～2019年3月)

Asahi Holdings, Inc.
These forecast performance figures are based on the information currently available to the company’s management and certain
assumptions judged rationally. Accordingly, there might be cases in which actual results materially differ from forecasts of this report.
Copyright © Asahi Holdings, Inc. All rights reserved.

0Business Performance1Key Points of FY2019 Financial Results and FY2020 Forecast
Business Performance
FY2019 financial results

Operating income: ¥20.1 billion (recording an all-time high for three consecutive FY)

FY2020 business forecast

Operating income: ¥16 billion (reference: ¥18.1 billion before change in accounting policy)*
Profits are projected to shrink due to a slowdown in economic activities accompanying the
spread of novel coronavirus infections.

(Following changes in accounting
policy)* Change in accounting policy (from FY2020 financial results)
Change in the classification for recording interest on borrowing for metal procurement in North
American business（Financial expenses→Cost of sales: Decrease in FY2020 operating income by ¥2.1 billion)* For details, please refer to “Changes in accounting policy (from FY2020)” in Slide 14.

Management Policies and Topics
Shareholder Returns* Aiming for a dividend payout
ratio of 50% or more
* Stable dividend payment underway

Selection and concentrationof business

FY2019: Annual divided of 130 yen (YoY increase of 10 yen/year)
FY2020: Forecast annual divided of 140 yen (increase of 10 yen/year scheduled)Transfer 60% of all the shares of Fuji Medical Instrument Mfg. Co., Ltd. to Johnson Health
Tech Co., Ltd. of Taiwan.
Discontinuation of Life & Health Business segment→Concentration of management resources on precious metals and environmental preservation
businesses

Optimization of production
system for refining
business in North America

Disposition of refining facility in Florida

Environmental management(SDGs)

Green Bond (¥5 billion) financing carried out

Concentration of refining business into two locations: Salt Lake City and Brampton→In pursuit of dramatic improvements in the production efficiency of refining facilities in North
America* Acquired the highest rating (GA1) by a third-party organization2

Copyright © Asahi Holdings, Inc. All rights reserved.

• The full-year operating income for FY2019 was ¥20.1 billion, posting an all-time highfor three consecutive years since FY2017.
• The operating income for FY2020 is projected to be 16 billion yen. Starting in FY 2020,
interest on borrowing for metal procurement in North American business will berecorded as cost of sales instead of financial expenses as has been done in the past.
Operating income that excludes the effect of this change in accounting policy is ¥18.1
billion. A drop in profit of ¥2 billion is projected due to a slowdown in economic
activities accompanying the spread of novel coronavirus infections.
• The annual dividend for FY2019 is 130 yen, up 10 yen from the previous year. The
annual dividend for FY2020 is projected at 140 yen, up 10 yen/year. The dividend
payout ratio is forecast at 52%.
• 60% of all the shares of Fuji Medical Instrument Mfg. Co., Ltd. were transferred toJohnson Health Tech Co., Ltd. of Taiwan. This is accompanied by the discontinuationof Life& Health Business to concentrate management resources in precious metals
and environmental preservation businesses.
• With the disposition of a refining facility in Florida, refining business in future will beconcentrated into two locations, one in Salt Lake City and the other in Brampton, withthe aim of achieving dramatic improvements in production efficiency.
• Green Bond financing was carried out. The highest rating GA1 was presented by athird-party concerning the eligibility of the Green Bond.

2

Consolidated Results
FY2019:Operating income registered an all-time high for three consecutive fiscal years
FY2020:Profit is projected to shrink due to a slowdown in economic activities accompanying the spreadof novel coronavirus infections.
The achievement of the target operating income of ¥16 billion in the Eighth Medium-term Plan
is projected.
[Unit: 100 millions of yen]
FY2018FY2019FY2020
Before change inaccounting policy*1

Results

Results

ChangeForecast

AfterchangeChangeForecast

Revenue

1,104

1,356

252

1,500

144

1,500

Operatingincome

134

201

67

181

△20

160

Operatingincome ratio

12.2%

14.8%

2.6%

12.1%

△2.7%

10.7%

Profit before tax

124

177

53

158

△19

158

Current profit *2

90

98

8

106

8

106

Capitalinvestment

57

42

△16

80

38

80

Depreciation

23

28

5

24

△4

24

*1 Starting with the FY2020 financial results, the classification for recording interest on borrowing for metal procurement in North
American business will be changed from financial expenses to cost of sales, which decreases operating income for FY2020 by ¥2.1
billion. The figures before the accounting policy change are shown here for reference to improve comparability with the FY2019
financial results..
3*2 Current profit attributable to parent companies.

Copyright © Asahi Holdings, Inc. All rights reserved.

• Revenue and profit in FY2019 increased significantly from the previous fiscal year.
• Operating income for FY2019 increased by ¥6.7 billion year on year to ¥20.1 billion,
recording an all-time high for three consecutive years.
• Operating income for FY2020 is expected to reach ¥18.1 billion in figures before theaccounting policy change (after the accounting policy change: ¥16 billion). A
slowdown in economic activities accompanying the spread of novel coronavirus
infections is the main reason for the lower profits.
• Operating income is expected to decline in FY2020, but the achievement of theoperating income target of ¥16 billion for the final year of the 8th Medium-Term
Management Plan is projected.

3

Consolidated Results (by Business Segment)
FY2019: Increase in revenue and profit for both Precious Metals and Environmental Preservation
businesses
FY2020: A decline in profit is forecast for both business segments due to a slowdown in economic
activities accompanying the spread of novel coronavirus infections.
[Unit: 100 millions of yen]

FY2018FY2019FY2020
Before change in accounting
policy *Results

Precious
MetalsEnvironmental
Preservation

Consolidated

Results

ChangeForecast

ChangeAfterchangeForecast

Revenue

878

1,138

260

1,300

162

1,300

Operatingincome

120

180

60

178

△2

157

Income ratio

13.7%

15.8%

2.1%

13.7%

△2.1%

12.1%

Revenue

194

207

13

200

△7

200

Operatingincome

39

44

5

33

△11

33

Income ratio

19.8%

21.0%

1.2%

16.5%

△4.5%

16.5%

Revenue

1,104

1,356

252

1,500

144

1,500

Operatingincome

134

201

67

181

△20

160

Income ratio

12.1%

14.8%

2.6%

12.1%

△2.7%

10.7%

* Starting with the FY2020 financial results, the classification for recording interest on borrowing for metal procurement in North American businesswill be changed from financial expenses to cost of sales. The figures before the accounting policy change are shown here for reference to improve
4
comparability with the FY2019 financial results.
Copyright © Asahi Holdings, Inc. All rights reserved.

• Looking at the performance in FY2019 by business segment, revenue and profit
increased for both Precious Metals and Environmental Preservation businesses.
• In particular, Precious Metals Business registered a significant increase in revenue
and profit, pushing up the consolidated performance of the Group. Environmental
Preservation Business steadily accumulated revenue and operating income.
• Regarding FY2020, both business segments are expected to post lower profits due toa slowdown in economic activities accompanying the spread of novel coronavirus
infections.

4Precious Metals Business
Precious Metals Recycling Business (Japan and Asia):◼ FY2019: Revenue and profit increased significantly due to a rise in precious metal prices and expansion of theamount collected.
◼ FY 2020: Profits are projected to decline due to a slowdown in economic activities accompanying the spread ofnovel coronavirus infections.
Refining Business in North America:◼ FY 2019: Impairment losses resulting from the closure of refining facilities in Miami were offset by an increase inrefining fees and expansion of financial transactions, resulting in higher revenue and profit.
◼ FY 2020: The volume of incoming raw materials for refining is expected to decline due to a slowdown in economic
activities accompanying the spread of novel coronavirus infections. However, revenue and profit are
projected to increase due to the cost reduction effect backed by production efficiency improvements andexpectations for continued firmness in financial transactions.
[Unit: 100 millions of yen]

FY2018FY2019FY2020
Before change inaccounting policy *Results

ResultsAfterchangeChangeForecast

ChangeForecast

Revenue

878

1,138

260

1,300

162

1,300

Operatingincome

120

180

60

178

△2

157

Operatingincome ratio

13.7%

15.8%

2.1%

13.7%

△2.1%

12.1%

* Starting with the FY2020 financial results, the classification for recording interest on borrowing for metal procurement in North
American business will be changed from financial expenses to cost of sales. The figures before the accounting policy change areshown here for reference to improve comparability with the FY2019 financial results.
5

Copyright © Asahi Holdings, Inc. All rights reserved.

Precious Metals Recycling Business (Japan and Asia):• In reference to the performance of precious metals recycling business in Japan andAsia in FY2019, revenue and profit expanded significantly due to a rise in precious
metal prices and an increase in the amount collected.
• On the other hand, profits are projected to decline in FY2020 due to a slowdown ineconomic activities accompanying the spread of novel coronavirus infections.
Refining Business in North America:• In reference to FY2019 performance for refining business in North America,
impairment losses resulting from the closure of refining facilities in Florida were offset
by an increase in refining fees and expansion of financial transactions, resulting inhigher revenue and profit overall.
• As for FY2020, the volume of incoming raw materials for refining is expected to
decline due to a slowdown in economic activities accompanying the spread of novel
coronavirus infections. However, revenue and profit are projected to increase overall,
thanks to the cost reduction effect backed by production efficiency improvements andexpectations for continued firmness in financial transactions.

5Reference: Changes in the Volume of Precious Metals Collected and Precious Metal Prices[Unit: kg][Amounted Collected for Precious Metals Recycling]
FY2018FY2019ResultsGold

Results

14,236FY2020Change17,262

Forecast

3,026

16,345

Change△917

Palladium

7,095

7,253

158

6,143

△1,110Silver82,151

71,890△10,261

60,521△11,369

Platinum

3,335

4,155

820

3,553

△602

[Precious Metal Prices (per gram) ]FY2018[Unit: Yen]FY2019Reference: April 30, 2020

Mid-term average
price

Mid-term
average price

Gold

4,528

5,137

609

5,902

765

Palladium

4,075

6,213

2,138

6,740

527

56

59

3

54

△5

3,097

3,185

88

2,760

△425

SilverPlatinum

ChangeActual price

Change6

Copyright © Asahi Holdings, Inc. All rights reserved.

• The table shows changes in the price of precious metals and amount of precious
metals collected by precious metals recycling business.
• The amount collected in FY2019 increased for all precious metals except silver. The
amount is projected to drop in FY2020 for all precious metals.
• Prices of all precious metals rose in FY2019, with a significant increase for palladium.
The price of precious metals became unstable at the beginning of 2020 due touncertainties over the spread of novel coronavirus infections, but it has remained
stable since April 2020.

6

Environmental Preservation Business
FY2019:◼ The financial results of group companies remained solid with the raising of the unit processing priceand increase in the volume processed.
◼ Revenue from consultation services based on the provision of proprietary one-stop solution
remained solid.
FY 2020:◼ A decrease in revenue and profit is projected with the expected drop in the volume processed due
to a slowdown in economic activities accompanying the spread of novel coronavirus infections.
[Unit: 100 millions of yen]

FY2018Results

FY2019Results

FY2020ChangeBefore changein accounting policy*

AfterchangeForecast

ChangeForecast

Revenue

194

207

13

200

△7

200

Operatingincome

39

44

5

33

△11

33

19.8%

21.0%

1.2%

16.5%

△4.5%

16.5%

Operatingincome ratio* Starting with the FY2020 financial results, the classification for recording interest on borrowing for metal procurement in North
American business will be changed from financial expenses to cost of sales. The figures before the accounting policy change areshown here for reference to improve comparability with the FY2019 financial results.
(The Environmental Preservation Business will not be impacted by change in the accounting policy).
7

Copyright © Asahi Holdings, Inc. All rights reserved.

• In reference to FY2019 performance of Environmental Preservation Business,revenue and profit increased, thanks to the raising of the unit processing price andincrease in the volume processed in addition to consultation services based on theprovision of proprietary one-stop solution.
• Regarding FY2020, lower revenue and profit are projected due to a slowdown ineconomic activities accompanying the spread of novel coronavirus infections.

7Financial Position[Unit: 100 millions of yen]

Current Assets

March 31,2019

March 31,2020

ChangeRemarks

1,138

1,876

738

Trade
receivables

665

1,198

533

Among the increase, ¥56.8 billion is receivables that
constitute borrowings to match metal procurement inNorth American business. For details, see the remarks
column in “Borrowings.”

Inventories

252

377

126

Most of the inventories are collected raw materials that
contain precious materials, works-in-progress andfinished products in the precious metal recycling
business. Risks associated with price fluctuations andquality degradation remain minimal because theprecious metal content is analyzed before making apurchase and the precious metal prices are hedged on
the futures market at the time of purchase.

Others

221

301

80

Non-current assets

465

424

△41

1,603

2,300

697

925

1,608

702

Bonds and
loans

638

1,268

630

Others

287

340

53

678

692

14

1,603

2,300

697

Total Assets
Liabilities

Capital
Total Equity

Among the increase, loans for metal procurement inNorth American business constitute ¥58.7 billion. Risks
associated with price fluctuations and bad debts remainminimal because, in principle, loans are taken out within
the scope of the precious metal content analysis
conducted on incoming raw materials and precious
metal prices are hedged on the futures market at thetime of loan.

8

Copyright © Asahi Holdings, Inc. All rights reserved.

•

Total assets as of March 31, 2020 increased ¥69.7 billion from the end of the previous fiscal
year to ¥230 billion. Among assets, trade receivables and inventories increased, and among
liabilities, loans increased.

•

Of the ¥63.0 billion increase in loans, ¥58.7 billion is attributed to an increase in loans formetal procurement in North American refining business. The increase in trade receivables
stems from a matching increase in loans.

•

Aggressive efforts are being made to promote financial transactions, which constitute one ofthe pillars of earnings for North American business. A typical example of financial transactions
is the "advanced delivery transaction," shown in slide number 15 of the reference material.
While it generally takes about a week for raw materials for refining received from mining
customers are finished in the product form, some clients prefer to have the products returnedin the product form before they are finished. In such cases, precious metal is purchased withloans from a bank and the return is made in exchange for interest payment based on the termof advanced delivery shortened.

•

The precious metal content of raw materials received is analyzed before making an advanced
delivery so that deliveries would not exceed the content. This means that the transactions aresubstantially free from bad-debt risks. They are also free from risks associated with pricefluctuations because precious metal prices are hedged on the futures market at the time of theborrowing.

•

Most of the Group’s inventory is raw materials, works-in-progress, and products in the
precious metal recycling business. The precious metal content of these items are analyzed at
the time of collection. Regarding fluctuations in precious metal prices, hedging in the futures
market is employed to eliminate risks. In addition, since the inventory assets are precious
metals or materials that contain precious metal, they are free from the risk of quality
degradation, and they can be cashed in the market once they are converted into products.

•

The increase in borrowings, matching claims and inventories has inflated the balance sheet
but that has not necessarily compromised the integrity of finance.

8

Cash Flow
[Unit: 100 millions of yen]
FY2019Operating CF

Remarks

△603

△152

All changes are attributable to changes in the collected raw materials that
contain precious materials, works-in-progress and finished products inprecious metal recycling business. Risks associated with price fluctuations
and quality degradation remain minimal because the precious metal content isanalyzed before making a purchase and the precious metal prices are hedgedon the futures market at the time of purchase.

△640

Of the changes, ¥56.8 billion are matching claims for loans for metal
procurement in North American business. Regarding loans, risks associatedwith price fluctuations and bad debts remain minimal because, in principle,
loans are taken out within the scope of the analysis of precious metal content
conducted on incoming raw materials and precious metal prices are hedgedon the futures market at the time of loan.

Change ininventories

Change intrade
receivables, etc.

Others189

Investment CF

19

Financing CF

652

Changes inshort-term
loans

654

Dividends△47

Others45

Changes in cash
deposits

66

Of the changes, loans for metal procurement in North American businessconstitute ¥58.7 billion. Risks associated with price fluctuations and bad debts
remain minimal.

9

Copyright © Asahi Holdings, Inc. All rights reserved.

• The operating cash flow ended in the deficit of ¥60.3 billion. This is primarily attributed
to an increase in inventories and trade receivables.
• Most of the inventories are collected raw materials that contain precious materials,
works-in-progress and finished products from precious metal recycling business andare free from risks associated with price fluctuations and quality degradation. Raw
materials and works-in-progress can be cashed in the market once they are finished.
In this sense, these items are something akin to cash.
• Trade receivables are mainly composed of claims that match the borrowing for metal
procurement in North American business and are extremely low-risk assets free fromthe risks associated with bad-debts or price fluctuations.
• The operating cash flow excluding the increase in safe assets is in the positive.

9

Main Financial Indicators◼ The main financial indicators for FY2019 are shown as below.
◼ Provisional calculations are made to arrive at financial indicators, obtained by excluding borrowings
for North American business and matching loans and further excluding inventories in the precious
metal recycling business.
◼ While financial indicators appear to be deteriorating, the conditions show that the soundness of thefinancial base is secured.
FY2019[Reference] *1
Whenborrowings/claims forNorth America are
excludedSoundness
Profitability

Shareholder
return[Reference] *2
When precious metal
inventories are also
excluded

Debt ratio (times)

1.50

0.02

△0.52

Equity ratio (%)

30.1

56.3

80.5

ROE（%）

14.4

ROIC（%）

6.0

10.9

16.2

Equity Spread (%) *3

9.0

Dividend Payout Ratio (%)

52.0*1 Loans for North American business are made, in principle, within the scope of precious metal content analysis conducted after the raw materials are received
and precious metal prices are hedged on the futures market at the time of the loan, so risks involving price fluctuations and bad debts remain minimal. In
addition, matching claims are recorded at the same time as the loan, which means that the risks associated with price fluctuations and bad debts remainminimal.
*2 Inventories for precious metal recycling business are purchased after analyzing the precious metal content at the time of collection and precious metal prices
are hedged on the futures market at the time of purchase, which means that the risks associated with price fluctuations and bad debts remain minimal.
*3 Provisional calculations are made on the assumption that the company's capital cost is 5.4%. (risk free rate: 0.31%, beta value: 0.84%, and risk premium: 6.0%)
10

Copyright © Asahi Holdings, Inc. All rights reserved.

• The above table shows the main financial indicators for FY2019. The table also shows,as reference values, the financial indicators that exclude loans for metal procurementin North American business, and that further exclude raw materials, works-in-process,and finished products in precious metal recycling business.
• The debt ratio is 1.50. The ratio falls to 0.02 when loans for metal procurement inNorth American business are excluded. Also, the ratio is minus 0.52 when raw
materials, works-in-progress, and finished products in the precious metal recycling
business are deducted as assets that can be cashed easily (effectively debt-free).
• The equity ratio is 30.1%. The ratio exceeds 50% when the impact of North American
operations and inventory assets are excluded.
• The equity spread, an indicator that shows the relationship between the cost of capitaland returns, is 9.0%. This is considered to be a relatively high value supported by thecompany's comparatively high ROE.

10

Dividend
Basic policy: Approximately 50% or more of the consolidated net income
FY2019: Annual dividend 130 yen (increase of 10 yen annually YoY)
FY2020: Projected annual dividend 140 yen (scheduled annual increase of 10 yen)
FY2015FY2016FY2017FY2018FY2019FY2020(Forecast)
87.48△37.24270.77228.14250.24269.39Annual Dividend（yen）

60

60

63

120

130

140

Dividend Payout Ratio (%)

68.6

-

23.3

52.6

52.0

52.0

Earnings Per Share（yen）

270.77269.39250.24228.14

130

120

140

87.48
60

63

FY2016FY201760

FY2015-37.24

一株あたり利益（円）Earnings Per Share (yen)FY2018FY2019年間配当（円）Annual Divided (yen)FY2020(FORECAST)

11

Copyright © Asahi Holdings, Inc. All rights reserved.

• The annual dividend for FY2019 is 130 yen, an increase of 10 yen from the previous
year. The payout ratio is 52.0%.
• The annual dividend of 140 yen is forecast for FY2020 in another 10-yen increase
from FY2019. The projected dividend payout ratio is 52.0%.
• The company seeks to realize a stable dividend payment as shareholder returns
based on its basic policy of "paying a stable dividend with the target payout ratio of
50% or higher."11Reference
Materials

12

Main Revenue Elements of Precious Metals Business
Precious Metals Recycling Business:◼ Income from yield differential is added to refining fees, which is a stable source of fixed income.
Refining Business in North America:◼ Refining fees are a stable source of income. In financial revenue, earning opportunities increase inline with the growth in incoming raw materials.
Business
Segment

Category

Impact on Revenue

Precious
MetalsRecycling

Refining fees◼
◼

Refining fees increase in line with the expansion of the amount collected.
The unit price for refining fees is higher for those that require difficult preprocessing, which means the average unit price rises when the
proportion of items that require difficult processing is higher.

Yield differential (differential
between actual yield andcontracted yield = free metal)◼

The volume of free metal expands when the actual yield climbs on
account of improvements in technical capabilities and processes.
Income from free metal increases in line with a hike in prices.

Refining fees◼

Refining inNorth America◼

◼
Yield differential (differential
between actual yield andcontracted yield = free metal)◼

Financial revenue

◼

◼

◼
◼
◼

The amount of fees expands when the volume of incoming raw materials(dore) increases.
The unit fee cost does not change over short term because contracts are
long-term.
The volume of free metal expands when the actual yield climbs on
account of improvements in technical capabilities and processes.
Income from free metal increases in line with a hike in prices.
Income opportunities for financial transactions increase when a larger
amount of raw materials is received.
Income increases when the interest rate for advanced delivery is
improved in contracts with mines.
Income increases when the period of advanced delivery is extended.
Financial revenue increases when metal procurement costs fall, and theinterest rate spread expands.
13

Copyright © Asahi Holdings, Inc. All rights reserved.

13

Changes in Accounting Policy (From FY2020 Financial Statements)◼ The accounting policy on interest on borrowing for metal procurement in financial transactions inNorth America will be changed from FY2020 financial statements. Starting with the financial
statements for FY2020, interest on borrowing for metal procurement in North American business will
be recorded as “cost of sales” instead of “financial expenses” as has been done until FY2019.
◼ As a result, expenses for income from financial transactions in North America will be appropriately
processed so that the operating profit will be more reflective of the actual conditions.
FY2020Change in accounting policy
Financial Expenses→Cost of Sales

Before change
Revenue
Cost of sales

1,500△1,246After change

1,500
△21

△1,267Gross operating profit

254

233

Selling, general andadministrative expenses

△73

△73

Operating income

181

160

Financial income

00

Financial expenses△23

Profit before tax

158

158

Corporate income tax

△52

△52

Current profit

106

+21

△2

106
14
Copyright © Asahi Holdings, Inc. All rights reserved.

14

Advanced Trading in North America
Advanced Trading: Some clients of refining business in North America (mainly mining companies) desire early
return of gold, while it generally takes approx. one week to return after arrival of dore (raw material). In order tomeet such demands, we conduct trade that clients can promptly receive the gold in exchange for interest
payment based on the shortened term. The risk of becoming bad debts is very limited as we basically return thegold after receiving raw materials.
■Flow diagram: Receipt of raw materials～Advanced delivery～Repayment

Asahi

Clients(MiningCompanies) (1) Arrival of raw(1): Arrival of raw materials“(1) Arrival of raw materials" for metals from ourclients (mining companies)

Financial
Institutions

materials②Loan from banks
or gold loan

③Advanced
delivery④Finishing⑤Repayment or
return of gold

(2)/(3): Loan/Advanced delivery
We get “(2) loans" from financial institutions,then make “(3) advanced delivery" to our clients(mining companies)(4)/(5): Finishing/Repayment
Apply the metal that we “(4) finished" to “(5)repay" the “(2) loan" from the financial
institutions

In order to conduct advanced delivery to clients before finishing, procuring gold from outside is needed.
There are two financing instruments as described below and we choose either one of them based on thefinancial market situation at the time of financing.

Financing instruments

Accounting
treatment

Impact on operating income

Loan from Japanese banks andprocurement of gold

Finance costs

No(Impact on profit before tax)

Gold loan from bullion banks

Operating expenses

Yes
Copyright © Asahi Holdings, Inc. All rights reserved.

15

Transfer of shares of Fuji Medical Instruments Mfg.
◼ Transfer 60% of all shares of Fuji Medical Instruments Mfg. Co., Ltd. toJohnson Health Tech Co., Ltd. in March 2020.
◼ Accelerate brand recognition of Fuji in the global market by collaboration withJohnson Health Tech, which is one of the largest companies in fitness
equipment, and further enhance Fuji’s corporate value with the goal of an
initial public offering in several years time.

Johnson Health Tech. Co., Ltd.
✓✓✓

Established in 1975, manufacture and sales of fitness equipment, etc.
With 30 subsidiaries and over 300 directly managed stores worldwide.
Headquartered in Taichung, Taiwan. Its stock is listed on the Taiwan Stock Exchange.
Copyright © Asahi Holdings, Inc. All rights reserved.

喬山健康科技16

Segment Change◼ Discontinue “Life & Health” segment and consolidate three segments into two
due to the transfer of 60% of all Fuji shares to Johnson.
◼ Concentrate management resources in the Precious Metals business andEnvironmental Preservation business in order to further enhance corporate
value.
Up to FY2019 Q2

From FY2019 Q3

Precious Metals
Precious Metals

Asahi

Environmental
Preservation

Asahi
Environmental
Preservation

Life & Health

INTER CENTRAL, INC., which comprises the Life & Health segment, is transferred toEnvironmental Preservation as it contributes to the realization of a society conserving energy
through the development and installation of air-conditioning equipment.

Copyright © Asahi Holdings, Inc. All rights reserved.

17

Issuance of Green Bonds◼ Issuance of green bonds is scheduled in March 2020 for capital investment(green project) effective for improving environment◼ A third-party evaluation is executed by a rating agency for green bondqualification and it has received the highest rating of "GA 1"
Issued amount

JPY 5 billion

Period of term

5 years

Redemption method

Lump-sum repayment atmaturity

Interest rate of bonds

Annual rate of 0.110%

Rating classification

GA1 (Preliminary evaluation)

Accepting bank

MUFG Bank, Ltd.

Use of funds

Capital investment for industrial waste incinerator at Kitakyushu/Hibiki
Plants of Asahi Pretec and Taniyama Rinkai Plant of Taiyo Chemical(includes refinancing)18

Copyright © Asahi Holdings, Inc. All rights reserved.

18

Trend in Metal Prices (Au, Ag)(Unit: JPY per gram)

Gold
6,000

FY2018FY2019

5,500

5,000

4,500

4,000
2018/04

2018/072018/10

2019/01

2019/04

2019/07

2019/102020/01

2020/04

2019/102020/01

2020/04

Silver70

FY2018FY201960

50

40
2018/04

2018/072018/10

2019/01

2019/04

2019/07

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19

Trend in Metal Prices (Pd, Pt)(Unit: JPY per gram)

Palladium10,000FY2018FY2019

9,000
8,000

7,000
6,000
5,000
4,000
3,000
2018/04

2018/072018/10

2019/01

2019/04

2019/07

2019/102020/01

2020/04

2019/102020/01

2020/04

Platinum
4,000

FY2018FY2019

3,500

3,000

2,500

2,000
2018/04

2018/072018/10

2019/01

2019/04

2019/07

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20

Trend in Prices (Gold <USD/Toz>, EXC <USD/JPY>)
Gold USD/Toz
1,700

FY2018FY2019

1,600
1,500
1,400
1,300
1,200
1,100
2018/04

2018/072018/10

2019/01

2019/04

Exchange Rate USD/JPY115

FY2018

2019/07

2019/102020/01

2020/04

2019/07

2019/102020/01

2020/04

FY2019

110

105

100
2018/04

2018/072018/10

2019/01

2019/04

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21