Consolidated Financial Results for the First Quarter Ended June 30, 2015
Asahi Holdings, Inc.
July 28, 2015
Stock code:

5857

Shares listed:Tokyo Stock Exchange (First Section)

U R L:

http://www.asahiholdings.com

Representative

Mitsuharu Terayama, President & CEO
Katsuya Murashima, Corporate Planning & Communications

For further information please contact:

Department Manager(Phone) +81-3-6270-1833

Filing date of Quarterly Report:

August 12, 2015

Scheduled date of start of dividend payment:－
Supplementary materials for the financial results: No
Investor conference for the financial results: No(Rounded down to the nearest million yen)
1. Results of the three months ended June 30, 2015 (From April 1, 2015 to June 30, 2015)(1) Results of operations (cumulative)(Percentage changes relative to previous corresponding period)
Net sales
The three months ended
June 30, 2015
June 30, 2014
(Note) Comprehensive income

Millions of yen％

Operating income

Ordinary income

Millions of yen

Millions of yen％

31,610 36.2
2,289
5.1
23,215 (6.1)
2,178 (18.2)
The three months ended June 30, 2015
The three months ended June 30, 2014

owners of parent％

Millions of yen

2,315
6.2
2,179 (21.7)
2,876 million yen
1,211 million yen

Net income per share

Diluted net income per share

Yen
43.88
42.56

Yen
43.85
－

The three months ended
June 30, 2015
June 30, 2014

Profit attributable to

％

1,438
3.7
1,387 (21.7)
137.3％(61.8％)(2) Financial Position
Shareholders’ equity
ratio
As of
Millions of yen
Millions of yen％
June 30, 2015
103,599
53,004
50.7
March 31, 2015
104,877
50,95848.2(Reference) Shareholders’ equity
As of June 30, 2015
52,559 million yen
As of March 31, 2015
50,504 million yen
Total assets

Net assets

2. Dividend payments

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

Dividends per share
Second quarter
Third quarter
Yen
Yen
30.00
－

First quarter
Yen
－
－

30.00

－

Year-end
Yen
30.00

Annual
Yen
60.00

30.00

60.00

(Note) Revisions in dividend forecast in the current quarter : No
3. Forecast (From April 1, 2015 to March 31, 2016)(Percentage changes relative to previous corresponding period)
Profit attributable to
Net income
Operating income
Ordinary income
owners of parent
per share

Net sales
Millions of Yen

1st half
Year ending March 31, 2016

63,000129,000

％

22.0
15.8

Millions of Yen％

Millions of Yen

％

5,000
11,000

7.0
5.0

4,900
10,8004.0
2.3(Note) Revisions in forecast in the current quarter : No

Millions of Yen ％

3,000
6,500

3.1
12.6

Yen

91.64
198.56

* Notes(1) Changes in important subsidiaries during the current quarter : No
(2) Application of special accounting methods for quarterly consolidated financial statements : No
(3) 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: Yes(iv) Restatement: No
For details, please refer to “(3) Changes in Accounting Policies, accounting estimates and restatement”
under “2. Notes Regarding Summary Information” on page 3.
(4) Number of issued shares (common stock)(i) Number of issued shares at the quarter end (including treasury shares)
As of June 30, 2015
36,254,344 shares
As of March 31, 2015
36,254,344 shares(ii) Number of treasury shares at the quarter end
As of June 30, 2015
3,439,507 shares
As of March 31, 2015
3,519,057 shares(iii) Averaged number of shares during the period (quarterly cumulative period)
Three months ended June 30, 2015
32,776,462 shares
Three months ended June 30, 2014
32,592,550 shares*Indication regarding the situation of quarterly review procedures
These financial results are not subject to the quarterly review procedures pursuant to the Financial
Instruments and Exchange Act. As of the disclosure of the financial results, the procedures for reviewing
quarterly 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. Qualitative Information (3)Consolidated Performance Forecasts”.

【Appendix】

Table of contents of the appendix

1. Qualitative Information .......................................................................................................................... 2(1) Consolidated Business Performance....................................................................................................... 2(2) Consolidated Financial Position ............................................................................................................. 2(3) Consolidated Performance Forecasts...................................................................................................... 2
2. Notes Regarding Summary Information ................................................................................................ 3(1) Changes in important subsidiaries during the current quarter ...................................................... 3(2) Application of special accounting methods for quarterly consolidated financial statements ........ 3(3) Changes in accounting policies, accounting estimates and restatement ........................................ 3
3. Consolidated Financial Statements ........................................................................................................ 4(1) Consolidated Balance Sheets ............................................................................................................. 4(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income.... 6
Consolidated Statements of Income for the three months ended June 30, 2015 ............................................. 6
Consolidated Statements of Comprehensive Income for the three months ended June 30, 2015 .................... 6(3) Notes on Consolidated Financial Statements ................................................................................... 7(Notes on Assumptions for Going Concern) ........................................................................................................ 7(Notes in case of Significant Changes to Shareholders’ Equity) ........................................................................ 7(Segment Information, etc.) ................................................................................................................................. 7

1

1. Qualitative Information(1) Consolidated Business Performance
In the Japanese economy during the first quarter of the current fiscal year (April 1, 2015 through June 30,2015), corporate income and the employment/income environment continued improving against the backdropof factors such as the weakened yen and high stock prices. As for corporate activity, however, recovery inproduction paused due to pressure to adjust existing inventories and signs of decline were seen in theincreasing trend of exports, leading to a temporary standstill. Personal consumption continued to lack vigor
because of rising prices due to the weakened yen and continuing budget-consciousness, but some areas also
saw a move to increased consumption due to rising inbound demand and the wealth effect of high stock prices.
It is also necessary to beware of downside risk such as those from economic trends overseas, so the economic
prospect remains unclear.
Under these economic conditions, the Group's results in each business segment were as follows.
Precious metal businessIn the electronics sector, contraction of the Japanese market continues, but by expanding market share in
the E-scrap and precision cleaning businesses, the Group increased the volume of collection of gold from thatof the same period a year earlier. In the dental sector, with the volume of precious metals used for dental
materials declining, the volume of collection of gold and palladium decreased. In the jewelry sector, increasing
the number of customers in the jewelry purchasing business led to a higher year-on-year volume of collectionof gold, silver, and platinum. In the automotive catalyst sector, new automotive catalyst customer
development led to an increased volume of collection of palladium compared with the same period a year
earlier.
The average sale price of gold and palladium was higher than that of the same period a year before. The
average sale price of silver and platinum was lower compared with the same period last year.
As for gold and silver refining business in North America, in the wake of Group entry in March 2015, weare engaged in technology exchange and working to maximize synergies with our business base.
Environmental preservation business
Production activity in domestic businesses is less than vigorous, so the overall volume of discharge ofindustrial waste is declining. Under these circumstances, Group companies secured volume of waste handled
by obtaining spot contracts and developing new customers. Consequently, the volume of sludge and medical
waste was higher compared with the same period last year.
Life & health businessIn the healthcare equipment sectors, personal consumption still has not recovered. Recovery of sales of
products such as massage chairs has been slow. Under these circumstances, we have been taking measures
such as introducing smaller merchandise in accordance with customer needs. In construction-related markets,
although there are many projects, the pressures of material price increases and labor supply-and-demand, as
they did the year before, continued to cause delays in constructions commencements and completion and led
to reductions in construction budgets. This situation impacted the Group's air conditioning system design andinstallation sector and its electric heaters sector.
As a result of the above, sales during the first quarter of the current term were 31,610 million yen, a
year-on-year increase of 8,395 million yen (36.2 percent). Operating income was 2,289 million yen, an
increase of 110 million yen (5.1 percent) year-on-year. Ordinary income was 2,315 million yen, a year-on-yearincrease of 135 million yen (6.2 percent). Profit attributable to owners of parent for the quarter was therefore
1,438 million yen, an increase of 50 million yen (3.7 percent) year-on-year. By segment, sales in the precious
metal business were 22,487 million yen, a year-on-year increase of 3,745 million yen (20.0 percent). In theenvironmental preservation business, sales were 3,585 million yen, and increase of 47 million yen (1.4
percent) year-on-year. Sales in the life & health business were 5,538 million yen, up 4,601 million yen (491.3
percent) year-on-year.

(2) Consolidated Financial Position
As of June 30, 2015, total assets amounted to 103,599 million yen, down 1,278 million yen from theprevious fiscal year end. This was due mainly to the decrease of 2,290 million yen in cash and deposits.
Total liabilities amounted to 50,594 million yen, down 3,325 million yen from the previous fiscal year end.
This was due mainly to the decrease of 1,429 million yen in income taxes payable.
Net assets totaled 53,004 million yen, up 2,046 million yen from the previous fiscal year end. This was due
mainly to the increase in retained earnings resulting from the recording of 1,438 million yen in profit
attributable to owners of parent.
As a result, the shareholders’ equity ratio changed to 50.7%, from 48.2% at the end of the previous fiscal
year.

(3) Consolidated Performance Forecasts
Consolidated performance forecast for the fiscal year and the first half period have not changed from theforecast announced on May 11, 2015.

2

2. Notes Regarding Summary Information(1) Changes in important subsidiaries during the current quarter
Not applicable(2) Application of special accounting methods for quarterly consolidated financial statements
Not applicable(3) Changes in accounting policies, accounting estimates and restatement
Changes in accounting policies(Application of “Accounting Standard for Business Combinations,” etc.)
The Company has applied the “Accounting Standard for Business Combinations” (ASBJ Statement No.
21, September 13, 2013), “ Accounting Standard for Consolidated Financial Statements ” (ASBJ
Statement No. 22, September 13, 2013), “ Accounting Standard for Business Divestitures ” (ASBJ
Statement No. 7, September 13, 2013), etc. effective from the first quarter under review. As a result, themethod of recording the amount of difference caused by changes in the Company’s ownership interests in
subsidiaries in the case of subsidiaries under ongoing control of the Company was changed to one in which
it is recorded as capital surplus, and the method of recording acquisition-related costs was changed to one
in which they are recognized as expenses for the fiscal year in which they are incurred. Furthermore, forbusiness combinations carried out on or after the beginning of the first quarter under review, theaccounting method was changed to one in which the reviewed acquisition cost allocation resulting from thefinalization of the tentative accounting treatment is reflected in the quarterly consolidated financial
statements for the quarterly period in which the business combination occurs.
Additionally the presentation method of net income was amended and the reference to “Minority
interests” was changed to “Non-controlling interests”. To reflect these changes in presentation, thequarterly consolidated financial statements and consolidated financial statements in the previous fiscal
year have been reclassified.
Application of the Accounting Standard for Business Combinations, etc. is in line with the transitional
measures provided in Paragraph 58-2 (4) of the Accounting Standard for Business Combinations,Paragraph 44-5 (4) of the Accounting Standard for Consolidated Financial Statements and Paragraph 57-4
(4) of the Accounting Standard for Business Divestitures. Accordingly, these changes are effective from the
beginning of the first quarter under review.
Those changes had no impact on operating income, ordinary income and income before income taxes forthe first quarter under review.
(Change in the depreciation method of property, plant and equipment)
The Company and its domestic consolidated subsidiaries had formerly depreciated property, plant andequipment other than leased assets using the declining-balance method (with the exception of buildings
acquired on or after April 1, 1998, which are depreciated using the straight-line method). However,starting from the fiscal year ending March 31, 2016, the Company and its domestic consolidated
subsidiaries have changed the depreciation method to the straight-line method.
This change in the depreciation method is due to the determination that depreciation using thestraight-line method would better reflect the actual condition of usage of property, plant and equipment ina nod to the result of surveys on the actual status of the usage of property, plant and equipment and futurebusiness deployment which is planned in the “Seventh Medium-Term Management Plan”.
As a result, operating income, ordinary income and income before income taxes increased by 48 million
yen, respectively, as compared with the figures calculated using the previous method.

33. Consolidated Financial Statements(1) Consolidated Balance Sheets
As ofMarch 31,
2015

As of
June 30,
2015

Millions of yen

Millions of yen

As ofJune 30,
2015
Thousands of
U.S. dollars

ASSETS
Current assets
Cash and deposits

11,046

8,756

71,509Notes and accounts receivable - trade

15,146

13,670111,639

Merchandise and finished goods

4,855

4,206

34,353Work in process

9,141

9,403

76,793

Raw materials and supplies

1,633

1,778

14,524

Other

6,773

8,746

71,430

(40)

(35)

(286)

48,556

46,526379,962

Buildings and structures, net

12,29812,268100,192

Land

14,568

14,571

119,001

Other, net

5,467

5,579

45,564

Total property, plant and equipment

32,33432,419264,757

Goodwill

21,73722,421

183,108

Other

906

916

7,486

Total intangible assets

22,64323,338

190,594

Investments and other assets

1,343

1,315

10,740Total non-current assets

56,321

57,072

466,091

Total assets

104,877

103,599

846,053

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

Intangible assets

U.S. dollar amounts represent translations using the approximate exchange rate on June 30, 2015 ofYen122.45=US$1, and are included solely for the convenience of readers.

4As ofMarch 31,
2015

As of
June 30,
2015

Millions of yen

Millions of yen

As ofJune 30,
2015
Thousands of
U.S. dollars

LIABILITIESCurrent liabilities
Notes and accounts payable - trade

6,161

6,924

Short-term loans payable

26,17125,87156,546211,283

270

5,270

43,038

Income taxes payable

2,111

681

5,568

Provision for bonuses

747

381

3,112

Provision for directors' bonuses

36

－

－

Provision for repairs

106

73

601

Current portion of long-term loans payable

Provision for product warranties

85

86

705

Provision for sales rebates

371

411

3,361

Provision for sales returns

13

15

125

Other

9,526

6,943

56,703

Total current liabilities

45,60346,658381,042

Long-term loans payable

6,550

1,415

11,556

Net defined benefit liability

126

133

1,091

Other

1,639

2,387

19,499Total non-current liabilities

8,316

3,936

32,146

Total liabilities

53,91950,594413,188

Capital stock

4,480

4,480

36,593

Capital surplus

6,038

6,106

49,872Retained earnings

44,45944,915366,807

Treasury stock(5,159)(5,043)(41,185)

Total shareholders' equity

49,81950,460412,088

Valuation difference on available-for-sale securities

33

38

313

Deferred gains or losses on hedges

313

364

2,976

Foreign currency translation adjustment

338

1,696

13,853

Total accumulated other comprehensive income

685

2,098

17,141

Subscription rights to shares

77

45

371

Non-controlling interests

375

399

3,266

50,95853,004432,865

104,877

103,599

846,053

Non-current liabilities

NET ASSETS
Shareholders' equity

Accumulated other comprehensive income

Total net assets

TOTAL LIABILITIES AND NET ASSETS

U.S. dollar amounts represent translations using the approximate exchange rate on June 30, 2015 ofYen122.45=US$1, and are included solely for the convenience of readers.

5(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income for the three months ended June 30, 2015
The three months
ended June 30, 2014

The three months
ended June 30, 2015

Millions of yen

Millions of yen

Net sales

23,21531,610258,154

Cost of sales

19,591

25,037

204,472

Gross profit

3,624

6,573

53,682

Selling, general and administrative expenses

1,445

4,284

34,986

Operating income

2,178

2,289

Non-operating income

28

83

18,696679

Non-operating expenses

26

57

467

2,179

2,315

Extraordinary income

108

18,90872

Extraordinary loss

24

2

19

2,165

2,321

18,961

Income taxes-current

520

625

5,104

Income taxes-deferred

257

234

1,918

Total income taxes

778

859

7,022

1,386

1,461

11,939

(0)

23

194

1,387

1,438

11,745

Ordinary income

Income before income taxes

ProfitProfit (loss) attributable to non-controlling
Profit attributable to owners of parent

The three months
ended June 30, 2015
Thousands of
U.S. dollars

Consolidated Statements of Comprehensive Income for the three months ended June 30, 2015
The three months
ended June 30, 2014

The three months
ended June 30, 2015

Millions of yen

Millions of yen

The three months
ended June 30, 2015
Thousands of
U.S. dollars

1,386

1,461

11,9396

5

43

Deferred gains or losses on hedges

(82)

50

416

Foreign currency translation adjustment

(95)

1,358

11,092

Share of other comprehensive income of associates
accounted for using equity method

(3)

－

－

Total other comprehensive income

(175)

1,414

11,550Comprehensive income

1,211

2,876

23,489Comprehensive income attributable to owners of parent

1,214

2,851

23,289Comprehensive income attributable to non-controlling interests

(2)

24

200

ProfitOther comprehensive income
Valuation difference on available-for-sale securities

U.S. dollar amounts represent translations using the approximate exchange rate on June 30, 2015 ofYen122.45=US$1, and are included solely for the convenience of readers.

6(3) Notes on Consolidated Financial Statements(Notes on Assumptions for Going Concern)
Not applicable(Notes in case of Significant Changes to Shareholders’ Equity)
Not applicable(Segment Information, etc.)[Segment information]
Ⅰ For the three months ended June 30, 2014(From April 1, 2014 to June 30, 2014)
1. Information on sales and income (loss) by reporting segment(Millions of Yen)
Preciousmetalbusiness

Environmental
preservation businessLife & healthbusiness

Total

Net sales
2) Intersegment

1) Customers

18,741
－

3,537
－

936
－

23,215－

Total

18,741

3,537

936

23,215

1,846

323

9

2,178

Segment income(Note) Total segment income matches operating income recorded on the consolidated statements of income.
2. Impairment losses on non-current assets, goodwill, etc. by reporting segment(Material impairment loss on non-current assets)
Resulting from the plan to sale the land held by a subsidiary, their book value was reduced to arecoverable amount, and the reduced amount was posted as impairment loss under extraordinary losses. In
consequence, impairment losses were recognized in the amount of 8 million yen in the precious metal
segment and 3 million yen in the environmental preservation segment.
Ⅱ For the three months ended June 30, 2015(From April 1, 2015 to June 30, 2015)
1. Information on sales and income (loss) by reporting segment(Millions of Yen)
Preciousmetalbusiness

Environmental
preservation businessLife & healthbusiness

Total

Net sales
1) Customers
2) Intersegment
Total
Segment income

22,487

3,585

5,538

31,610－－－－22,487

3,585

5,538

31,610

1,876

390

22

2,289

(Note) Total segment income matches operating income recorded on the consolidated statements of income.
2. Changes in reporting segments(Changes in reporting segments classification)
In accordance with the acquisition of shares of FUJI MEDICAL INSTRUMENTS MFG. CO., LTD. on July
2014, aiming to contribute to the appropriate disclosure of management information, the previous
segment of “Environmental preservation business” had been divided into two segments of “Environmental
preservation business” and “Life & health business” from the second quarter of the previous fiscal year.
Accordingly, our reporting segments are following three: “Precious metal business”, “Environmental
preservation business” and “Life & health business”.
An retroactively adjusted version of ”Segment information” presented in the earnings report for the firstquarter of the previous fiscal year has been published to reflect the change in reporting segments.
(Changes in name of reporting segment)
The segment which was previously stated as “Precious metal recycling business” has been changed to“Precious metal business” from April 1, 2015 for more accurate business description. This change in thesegment name does not affect the segment information.
An retroactively adjusted version of ”Segment information” presented in the earnings report for the firstquarter of the previous fiscal year has been published to reflect the change in reporting segments.
3. Impairment losses on non-current assets, goodwill, etc. by reporting segment(Material impairment loss on non-current assets)
Not applicable7