Interim Business Report for FY2014
From April 1, 2014 to September 30, 2014

To Our Shareholders
I would like to express my cordial appreciation for yourcontinuous support and loyal patronage..____________
During the first two quarters of the current fiscal year
(April 1, 2014 through September 30, 2014), althoughpersonal consumption fell after surging prior to theconsumption tax increase, and corporate production
activity and capital investment showed some weakness,
the Japanese economy as a whole continued its trend ofgentle recovery. Under these economic conditions, in theprecious metal recycling business, the volume of collectionin the catalyst sector increased, so the volume ofcollection of platinum and palladium was higher than it wasfor the corresponding period a year earlier. The averagesales prices for platinum and palladium were higher thanthey were a year earlier. The volume of collection of goldfell, however, mainly due to a lower volume of collection inthe jewelry sector, while a decrease in the volume ofcollection in the photographic sensitive material sector led
to a lower volume of collection of silver compared to theprevious year. The average sales prices for gold and silver
were lower than they were during the corresponding
period a year earlier. In the environmental preservation
business, the volumes of waste liquid, medical-related
waste, recycled glass, and so on collected surpassed
those of the same term one year earlier. _____________

As part of the strategies, FUJI MEDICAL INSTRUMENTS
MFG. CO.,LTD., became subsidiary of our group throughM&A in July 2014._______________________________
With the addition of FUJI MEDICAL INSTRUMENTS MFG.
CO.,LTD., to our group, we have started a new "life andhealth business" segment comprising that company andtwo others, INTER CENTRAL, INC. and KOEIKOGYOCO., LTD. This new field is also performing steadily. ____As a result of the above, the results of operations for the
first half of the current fiscal year recorded consolidated
net sales 51,632 million yen, operating income 4,674
million yen, ordinary income 4,713 million yen, and net
income 2,909 million yen.________________________
The company maintained an interim dividend of 30 yen pershare.________________________________________
We would appreciate your continued understanding andsupport for the business activities of our group companies.

Our Group have focused on execution of our growthstrategies that we have outlined in the 6th mid-termbusiness plan; “Business expansion in the Asian markets”,“Broadening business domain through M&A”, and“Streamlining group management structure”.___________
President & CEO

Topics
Fujiiryoki becomes a Group company

Launch of the Life and Health Business

In July 2014, FUJI MEDICAL INSTRUMENTS MFG.
CO., LTD. (Fujiiryoki) became a group company.
Fujiiryoki is engaged in the manufacture and sale ofmassagers, hearing aids, electric therapy apparatus forhousehold use, and other health equipment. In
massage chairs, they are Japan's biggest company andpossess excellent product development ability andbrand strength. Their hearing aids, electric therapy
apparatus for household use, and so on are highly
specialized products with outstanding quality. As "The
Health & Beauty Manufacturer," they provide various
products approved under the Pharmaceutical Affairs Act.
In addition, the company's Fuji Automatic Massage
Machine, which became the world’s first mass-produced
massage chair in 1954, was certified as a MechanicalEngineering Heritage in August 2014._______________"Broadening business domains through M&A" is one of themajor initiatives of the 6th mid-term business plan. As part ofthat, we have launched the new “Life and Health Business" inaddition to our existing Precious Metal Recycling Business andEnvironmental Preservation Business. It comprises threecompanies, INTER CENTRAL, INC. which pursues comfort
and energy savings through the design and installation ofradiant heating and air conditioning systems, KOEIKOGYO
CO., LTD. and FUJI MEDICAL INSTRUMENTS MFG. CO.,LTD.. With health-consciousness rising and society aging, highgrowth is expected in the Japanese healthcare market into thefuture.____________________________________________

BUSINESS DOMAIN
Asahi Holdings, Inc.

Precious Metal Recycling
Business
Recover precious and rare
metals such as gold, silver,
palladium, platinum andindium, from various formsof scrap yielded from avariety of industries.

The massage chair first unit

New BusinessEnvironmental Preservation
Business

Life and Health BusinessAppropriate disposal andProvide devices andequipment for better
life and healthrecycling of various
industrial wastes

Consolidated Financial Highlights■Net Sales (Millions of Yen)

■Ordinary Income (Millions of Yen)
Interim

Full-term

12,000Interim

151,094

160,000

Full-term

11,130
9,989

10,000120,000

80,000

7,794

8,000
96,36894,254

6,034
5,395

6,000

72,74849,324

51,63247,884

4,713

4,000

2,955

40,0002,000
02012/032013/03

2014/03

02014/09

2012/03■Net Income per Share (Yen)■Net Income (Millions of Yen)

Interim

7,000

Full-term

200

6,0004,000

2014/09

Interim183.50183.20160

5,000

2014/03

180

5,971

5,926

2013/03139.24

140

4,518

120
3,488

3,277

107.93100.79
89.25

100

2,909
3,000

80

2,000

47.97

60

1,555

40
1,000

20
00
2012/032013/03

2014/032012/03

2014/0975,02775.0%

Equity Ratio

Total Assets

1,600
1,422.51
1,400

66,11258,31538,902

66.6%

67.3%

46,49140,0001,489.54

1,288.56

1,200

70.1%
42,012

2014/09

1,198.77

62,26060,0002014/03■Net Assets per Share (Yen)■Net Assets/Total Assets/Equity Ratio (Millions of Yen, %)80,000Net Assets

2013/03

49,006

1,000

64.8%

65.0%

800
600
400

20,000200
055.0%
2012/032013/03

2014/03

2014/090
2012/032013/03

2014/03

2014/09

Full-termConsolidated Financial Statements
Consolidated Balance Sheet（ Millions of yen）

As of March 31,
2014

As of September 30,
2014

As of September 30,
2014

LIABILITIESASSETS
Current assets

As of March 31,
2014

37,51732,674

Cash and deposits

9,640

5,567

Current liabilities
Notes and accounts payable-trade

12,342

17,355

3,643

6,942

Notes and accounts receivable - trade

11,31914,193

Short-term loans payable

495

2,995

Merchandise and finished goods

4,094

4,613

Current portion of long-term loans payable

143324Work in process

8,596

9,350

Raw materials and supplies

1,107

1,955

Income taxes payable

2,632

1,736

Other

5,425

5,355

Total noncurrent assets

28,59537,589Total noncurrent liabilities

7,278

8,665

Property, plant and equipment

24,407

26,699Long-term loans payable

5,419

6,820

Buildings and structures, net

8,979

9,716

Other

1,858

1,844

Land

13,122

14,512

Total liabilities

19,621

26,021

Other

2,304

2,470

NET ASSETS

2,856

9,438

Shareholders' equity

45,78847,774

Goodwill

2,021

8,590

Capital stock

4,480

4,480

Other835

847

Capital surplus

6,038

6,038

1,331

1,451

Retained earnings

40,64842,576(5,379)(5,321)

559

817

7777

66

335

Total net assets

46,49149,006

Total liabilities and net assets

66,11275,027

Intangible assets

Investments and other assets

Treasury stock
Total accumulated othercomprehensive income
Subscription rights to shares
Minority Interests

Total assets
Notes: Amounts above are rounded dow n to unit of display.

66,11275,027

Consolidated Financial Statements
Consolidated Statements of Income（ Millions of yen）

Consolidated Statements of Cash FlowsThe six months
The six months
ended September 30, ended September 30,
2013
2014

Net sales

47,884

51,632

Cost of sales

39,981

41,810Gross profit（ Millions of yen）

The six months
The six months
ended September 30, ended September 30,
2013
2014

Net cash provided by (used in)operating activities

9,997

4,260

Net cash provided by (used in)investing activities(477)(7,642)

Net cash provided by (used in)financing activities(6,134)(601)

Effect of exchange rate change
on cash and cash equivalents

174

(8)

Net increase(decrease) in cash andcash equivalents

3,560(3,991)

7,902

9,822

Selling, general andadministrative expenses

2,642

5,148

Operating income

5,260

4,674

Non-operating income

161

75

Non-operating expenses

25

36

5,395

4,713

Extraordinary income

3914

Extraordinary loss

113

27

Income before income taxes andminority interests

5,321

4,701

Cash and cash equivalents at
beginning of period

4,141

9,470

Income taxes-current

2,069

1,641

Cash and cash equivalents atend of period

7,701

5,478

Income taxes-deferred(24)118

Income before minority interests

3,277

2,941

Net income

3,277

2,909

Ordinary income

Notes: Amounts above are rounded dow n to unit of display.

Stock Information/Corporate Profile■ Total number of authorized shares■ Total number of shares outstanding

129,000,000 shares
36,254,344 shares■ Number of shares per trading unit
■ Number of shareholders■ Principal shareholders

Name of Shareholders(As of September 30, 2014)

100 shares
9,954 personsNumber ofShares-Held(Thousand Shares)

Ratio ofShareHolding(%)

TERA ENTERPRISES Co., Ltd.

1,350

3.72

Japan Trustee Services Bank, Ltd.
(trust account)

1,241

3.42

The Master Trust Bank of Japan Ltd.
(trust account)

909

2.51

Mitsuharu Terayama

882

2.43

Masamichi Terayama

802

2.21

K&M Co., Ltd.

700

1.93

Asahi Employee Stock Ownership Plan

665

1.83

State Street Bank and Trust Company
505025469

Mellon Bank, N.A as Agent for its Client
Mellon Omnibus US Pension

453

1.25

The Bank of Tokyo-Mitsubishi UFJ, Ltd450

1.24

1.30

※Total Number of Treasury Shares (3,518,757 shares) are excluding from the above.

■ Corporate Profile
Corporate name
Establishment
Foundation
Capital
Number of employees
Business lines

Subsidiaries
Asahi Pretec Corp.
Japan Waste Corporation
JW Logistics Co., Ltd.
Nihon Chemitec Co., Ltd.
Fuji Rozai Co., Ltd.
Ecomax Incorporated
JW Glass Recycling Co., Ltd.

Overseas subsidiaries

Asahi Holdings, Inc.
April 2009
July 1952 (as Asahi Pretec Corp.)¥4,480 million
1,726 (Consolidated)
Recycling of precious & rare metals
Industrial waste treatment(Industrial waste treatment and otherenvironmental preservation business)
Manufacturing and sales, construction oflife and healthcare related equipment

Taiyo Chemical Co., Ltd.
Kyodo Chemical Co., Ltd.
Iyotec Co., Ltd.
FUJI MEDICAL INSTRUMENTS MFG. Co., Ltd.

INTER CENTRAL, INC.
KOEIKOGYO CO., LTD.
Usuda Manufacturing Co., Ltd.

Asahi G&S SDN. BHD. (Malaysia)
Shanghai Asahi Pretec Co., Ltd. (China)
Asahi Pretec Korea Co., Ltd. (Korea)
Asahi Pretec Taiwan Co., Ltd. (Taiwan)
Asahi Shih Her Technologies Co., Ltd.
(Taiwan)■ Board of Directors and Corporate Auditors
President & CEO: Mitsuharu Terayama
Directors:Yoshikatsu Takeuchi

Tomoya Higashiura
Masayuki Hirano
Keitaro Shigemasa
Kazuo Kawabata
Shoji Morii*

Yukio TanabeStanding
Statutory Auditor Kazuhiko Tokumine*
Junzo Kojima**Outside officers pursuant to Article 2, paragraph (3) item (v) of Ordinancefor Enforcement of the Companies Act.

Head Offices■ Head Offices

KOBE

Nissei Sannomiya Bldg., 4-4-17 Kano-cho, Chuo-ku, Kobe, 650-0001, Japan
Tel. +81-78-333-5633 (Pilot number) Facsimile +81-78-333-5681

TOKYO

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

General Information● Business Term
● Record Date

April 1 - March 31
March 31

● Fixed Date of Dividend PaidMarch 31● Fixed date of Interim Dividend Paid

September 30● Shareholder Registry Administrator

Mitsubishi UFJ Trust and Banking Corporation● Transfer Agent

Mitsubishi UFJ Trust and Banking Corporation● Contact of the Agent

3-6-3 Fushimi-cho, Chuo-ku, Osaka City, Osaka 541-8502 JAPANMitsubishi UFJ Trust and Banking Corporation Osaka Stock Transfer Agent Dept.
TEL (0120) 094 -777
Electronic public notice http://www.asahiholdings.com/● Public Notice