Consolidated Financial Results for the Second Quarter Ended September 30, 2012
Asahi Holdings, Inc.
October 31, 2012
Stock code:

5857

Shares listed:Tokyo Stock Exchange (First Section)

U R L:

http://www.asahiholdings.com

Representative

Mitsuharu Terayama, Chairman,CEOFor further information please contact:

Tomoya Higashiura, Director

Filing date of Quarterly Report:

November 13, 2012

Scheduled date of start of dividend payment:

November 28, 2012

(Phone) +81-3-6270-1833

Supplementary materials for the quarterly financial results: No
Investor conference for the quarterly financial results: Yes(for institutional investors, analysts)(Rounded down to the nearest million yen)
１．Results of the six months ended September 30, 2012 (From April 1, 2012 to September 30, 2012)（１）Results of operations (cumulative)(Percentage changes relative to previous corresponding period)
Net sales
The six months ended
September 30, 2012
September 30, 2011
(Note) Comprehensive income

Millions of yen％

Operating income

Ordinary income

Millions of yen

Millions of yen

Net income per share
The six months ended
September 30, 2012
September 30, 2011
（２）Financial Position％

49,324 (32.2)
2,896 (51.5)
72,748 38.6
5,974
6.7
The six months ended September 30, 2012
The six months ended September 30, 2011％

Net income
Millions of yen％

2,955 (51.0)
1,555 (55.4)
6,034 10.2
3,488
9.0
1,328 million yen (73.8%)
5,059 million yen 66.3%

Diluted net income per shareYen
47.97
107.93

Yen－－

Shareholders’ equity
ratio
As of
Millions of yen
Millions of yen％
September 30, 2012
56,852
39,345
69.1
March 31, 2012
58,31538,902
66.6(Reference) Shareholders’ equity
As of September 30, 2012 39,267 million yen
As of March 31, 2012
38,835 million yen
Total assets

Net assets

２．Dividend payments

Year ended March 31, 2012
Year ending March 31, 2013
Year ending March 31, 2013
(Forecast)

Dividends per share
Second quarter
Third quarter
Yen
Yen
30.00
－30.00First quarter
Yen－－－

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, 2012 to March 31,2013)(Percentage changes relative to previous corresponding period)
Net income
Operating income
Ordinary income
Net incomeper shareNet sales
Millions of Yen

Year ending March 31, 2013％

96,000 (36.5)

Millions of Yen

5,100(Note) Revisions in forecast in the current quarter : No％(54.5)

Millions of Yen

5,100％(54.2)

Millions of Yen ％2,800(52.8)

Yen

86.30

４．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: No(iii) Changes in accounting estimates: Yes(iv) Restatement: NoChanges subject to Article 10(5) of the Ordinance on Terminology, Forms and Preparation Methods ofQuarterly Consolidated Financial Statements. For details, please refer to “(3) Changes in accounting policies,accounting estimates and restatement” under “2. Notes Regarding Summary Information” on page 2.
（４）Number of issued shares (common stock)(i) Number of issued shares at the quarter end (including treasury shares)36,254,344 shares
As of September 30, 2012
As of March 31, 2012
36,254,344 shares(ii) Number of treasury shares at the quarter end
3,806,039 shares
As of September 30, 2012
As of March 31, 2012
3,858,589 shares(iii) Averaged number of shares during the period (quarterly cumulative period)
32,422,126 shares
Six months ended September 30, 2012
Six months ended September 30, 2011
32,325,519 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 “(3) Qualitative Information on
Consolidated Performance Forecasts”.

【Appendix】

Table of contents of the appendix

1. Qualitative Information ..........................................................................................................................2(1) Qualitative Information on Consolidated Business Performance ...................................................2(2) Qualitative Information on Consolidated Financial Position..........................................................2(3) Qualitative Information on Consolidated Performance Forecasts ..................................................2
2. Notes Regarding Summary Information ................................................................................................2(1)Changes in important subsidiaries during the current quarter.......................................................2(2)Application of special accounting methods for quarterly consolidated financial statements.........2(3)Changes in accounting policies, accounting estimates and restatement .........................................2
3. Consolidated Financial Statements........................................................................................................3(1) Consolidated Balance Sheets .............................................................................................................3(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income....4
Consolidated Statements of Income for the six months ended September 30, 2012........................................ 4
Consolidated Statements of Comprehensive Income for the six months ended September 30, 2012 .............. 4(3) Consolidated Statements of Cash Flows ...........................................................................................5(4) Notes on Assumptions for Going Concern.........................................................................................6(5) Notes in case of Significant Changes to Shareholders’ Equity ........................................................6(6) Segment Information, etc...................................................................................................................61

1. Qualitative Information(1) Qualitative Information on Consolidated Business Performance
During the six months of the fiscal year under review (six months ending September 30, 2012), theJapanese economy had been in a severe situation due to the continued appreciation of Japanese yen anddeceleration of the global economy.
Under these circumstances, regarding precious metal recycling business, the volumes of collected gold,silver, platinum, palladium and others were lower than the previous corresponding period. Also, theaverage sales prices of silver, platinum palladium were lower than the previous period, though the averagesales price of gold was higher than the previous corresponding period. In part of our transactions, net sales
amount declined compared to the previous period due to switching contracts to the “fee-based processing”
model.
Regarding environmental protection business, the transaction volumes of waste oil, sludge, andmedical-related wastes were higher than the previous corresponding period. The performance ofIntercentral Co.,Ltd. which became a wholly owned subsidiary on July 2012 continued strong through theperiod.
As a result of the above, as consolidated results for the six-month period, we recorded net sales of 49,324
million yen, down 23,423 million yen (-32.2%) year-on-year; operating income of 2,896 million yen, down
3,078 million yen (-51.5%) year-on-year; ordinary income of 2,955 million yen, down 3,078 million yen(-51.0%) year-on-year; and net income of 1,555 million yen, down 1,933 million yen (-55.4%) year-on-year.
Looked at by segment, sales in the precious metal recycling business were 41,880 million yen, down
24,105 million yen (-36.5%) year-on-year; and sales in the environmental protection business were 7,444
million yen, up 682 million yen (+10.1%) year-on-year.

(2) Qualitative Information on Consolidated Financial Position
As of September 30, 2012, total assets amounted to 56,852 million yen, down 1,463 million yen from theprevious fiscal year end. This was due mainly to a decrease of 2,827 million yen in inventories.
Total liabilities amounted to 17,507 million yen, down 1,905 million yen from the previous fiscal year end.
This was due mainly to decrease of 2,305 million yen in income taxes payable.
Net assets totaled 39,345 million yen up 442 million yen from the previous fiscal year end. This was due
mainly to the increase in retained earnings resulting from the recording of 1,555 million yen in net income.
As a result, the shareholders’ equity ratio changed to 69.1%, from 66.6% at the end of the previous fiscalyear.
Net cash provided in operating activities amounted to 1,007 million yen due mainly to 2,621 million yen ofincome before income taxes, 1,022 million yen of depreciation and amortization, 3,221 million yen ofdecrease in inventories, 1,578 million yen of increase in notes and accounts receivable-trade, and 4,251
million yen of income taxes paid.
Net cash used in investing activities amounted to 1,551 million yen due mainly to 387 million yen inpayments for purchase of property, plant and equipment and 1,081 million yen for stock acquisition ofsubsidiaries and affiliates.
Net cash provided by financial activities amounted to 235 million yen due mainly to 1,252 million yen
increase of loans payable and 971 million yen in payments for cash dividends paid.
As a result, Cash and cash equivalents as of September 30, 2012, decreased 258 million yen from March
31, 2012, to 3,269 million yen.

(3) Qualitative Information on Consolidated Performance Forecasts
Consolidated performance forecast for the fiscal year has not changed from the forecast announced on
July 30, 2012.

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 the depreciation method)
In accordance with the amendment of the Corporation Tax Law, effective from the first quarter of fiscalyear ending March 31, 2013, the Company and its domestic consolidated subsidiaries have changed theirdepreciation method for those property and equipment acquired on or after April 1, 2012. The effect of thischange on operating income, ordinary income and income before income taxes and minority interests forthe current quarter is minimal.

23. Consolidated Financial Statements(1) Consolidated Balance Sheets
As of
September 30,
2012
Millions of yen

As ofSeptember 30,
2012
Thousands of
U.S.dollars

3,527
9,480
2,123
10,727
618
2,833
(11)
29,301

3,269
11,329
1,917
7,887
836
1,841(9)27,072

42,137
145,994
24,710101,645
10,78423,729(119)348,879

9,495
12,9103,356
25,763

9,429
12,9993,001
25,431

121,520
167,516
38,684
327,720

1,970
519
2,490
760
29,01458,315

2,573
751
3,325
1,022
29,77956,852

33,1709,686
42,856
13,183
383,759
732,637

As ofMarch 31,
2012
Millions of yen
ASSETS
Current assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assetsNoncurrent assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Total noncurrent assets
Total assets

LIABILITIESCurrent liabilities
Notes and accounts payable-trade
3,253
2,635
33,957
Short-term loans payable
4,545
6,495
83,700Current portion of long-term loans payable
1,000
1,011
13,028
Income taxes payable
3,267
962
12,399Provision for bonuses
659
622
8,019
Provision for directors’ bonuses
30
687
Provision for repairs
100
41533
422
Provision for product warranties
―
32
Other
3,275
2,931
37,778
Total current liabilities
189,922
16,13014,737
Noncurrent liabilities
Long-term loans payable
1,500
1,000
12,887
Provision for retirement benefits
65
99
1,278
252
Provision for directors’ retirement benefits
―
19
Other
1,716
1,650
21,272
Total noncurrent liabilities
35,6893,282
2,769
Total liabilities
225,611
19,413
17,507NET ASSETS
Shareholders’ equity
Capital stock
57,742
4,480
4,480
Capital surplus
78,4396,087
6,086
Retained earnings
447,274
34,12434,708Treasury stock(71,905)(5,656)(5,579)Total shareholders’ equity
511,550
39,036
39,696
Accumulated other comprehensive income
170
Valuation difference on available-for-sale securities
18
13
Deferred gains or losses on hedges(4,593)(111)(356)
Foreign currency translation adjustment(1,105)(108)(85)(5,528)
Total accumulated other comprehensive income
(201)
(428)
Subscription rights to shares
1,004
67
77
TOTAL NET ASSETS
507,026
38,902
39,345
732,637TOTAL LIABILITIES AND NET ASSETS
58,31556,852
U.S. dollar amounts represent translations using the approximate exchange rate on September 28, 2012 ofYen77.60=US$1, and are included solely for the convenience of readers.

3(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income for the six months ended September 30, 2012

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
Net income

The six months
ended September 30,
2011
Millions of yen

The six months
ended September 30,
2012
Millions of yen

The six months
ended September 30,
2012
Thousands ofU.S.dollars

72,74864,356
8,392
2,417
5,974
85
26
6,034
159
78
6,115
2,484
142
2,626
3,488
3,488

49,324
43,818
5,506
2,610
2,896
84
24
2,955
4
338
2,621
799
266
1,066
1,555
1,555

635,631564,67270,959
33,63637,323
1,087
320
38,09064
4,366
33,78810,3093,435
13,74420,04320,043

Consolidated Statements of Comprehensive Income for the six months ended September 30, 2012
The six months
ended September 30,2011
Millions of yen

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
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests

The six months
ended September 30,
2012
Millions of yen

The six months
ended September 30,
2012
Thousands of
U.S.dollars

3,488

1,555

20,043

(11)
1,574
13(5)
(244)
21(71)(3,151)
276

(5)

1

17

1,570
5,059

(227)
1,328

(2,929)17,114

5,059
－

1,328
－

17,114－

U.S. dollar amounts represent translations using the approximate exchange rate on September 28, 2012 ofYen77.60=US$1, and are included solely for the convenience of readers.

4(3) Consolidated Statements of Cash FlowsNet 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 provision of retirement benefits
Interest and dividends income
Interest expenses
Loss (gain) on sales and retirement of noncurrent assets
Loss (gain) on valuation of investment securities
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
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
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
Repayment of long-term loans payable
Repayments of finance lease obligations
Purchase of treasury stock
Proceeds from sales of treasury stock
Cash dividends paid
Other,net
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 periodThe six
months ended
September 30,
2011
Millions of yen

The six
months ended
September 30,
2012
Millions of yen

The six
months ended
September 30,
2012
Thousands ofU.S.dollars

6,115
1,129－
148
(157)
(10)
20
39
38
(2,331)(4,606)673(400)(1,405)(747)
8(21)(2,493)776(2,475)

2,621
1,022
231
174
5(10)
1275
27(1,578)
3,221
(937)
(280)
(454)
4,130
10(13)(4,251)
1,131
1,007

33,78813,171
2,981
2,248
68(133)
164
972
348(20,345)
41,512(12,084)(3,611)(5,855)53,225
133(172)(54,787)
14,586
12,985

23
13(671)
0
(100)
(471)
(167)
(1,374)－10(387)120(119)(1,081)(94)(1,551)－
141(4,988)1,551(1,539)(13,933)(1,222)(19,989)

5,853
(576)
(24)
(0)
78(807)
－
4,522
26
698
2,250
2,948

1,777
(524)
(30)
(0)
75(971)(90)235
49(258)
3,527
3,269

22,899(6,758)
(396)
(1)
979
(12,525)(1,160)3,039
640(3,325)45,462
42,137

U.S. dollar amounts represent translations using the approximate exchange rate on September 28, 2012 ofYen77.60=US$1, and are included solely for the convenience of readers.

5(4) Notes on Assumptions for Going Concern
Not applicable(5) Notes in case of Significant Changes to Shareholders’ Equity
Not applicable(6) Segment Information, etc.
[Segment information]
I For the six months ended September 30, 2011(From April 1, 2011 to September 30, 2011)
1. Information on sales and income (loss) by reporting segment(Millions of Yen)
Precious metal
recycling business

Environmental
protectionbusiness

1) Customers
2) Intersegment

65,985－

6,762－

72,748－

Total

65,985

6,762

72,748

5,221

753

5,974

Total

Net sales

Segment income(Note) Total segment income matches operating income recorded on the consolidated statements of income.
2. Impairment losses on noncurrent assets, goodwill, etc. by reporting segment
Not applicable
Ⅱ For the six months ended September 30, 2012(From April 1, 2012 to September 30, 2012)
1. Information on sales and income (loss) by reporting segment(Millions of Yen)
Precious metal
recycling business

Environmental
protectionbusiness

41,8807,444

49,324－－－41,880

7,444

49,324

2,013

882

2,896

Total

Net sales
1) Customers
2) Intersegment
Total
Segment income(Note) Total segment income matches operating income recorded on the consolidated statements of income.
2. Impairment losses on noncurrent assets, goodwill, etc. by reporting segment
Goodwill of the environmental protection segment increased 777million yen due to the stock acquisition ofIntercentral Co.,Ltd, which became consolidated subsidiary during the period.

6