FinancialResults
2019年3⽉期
for決算説明資料
Q1 FY2019(April 1, 2019 ~ June 30, 2019)(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 rational. Accordingly, these might be cases in which actual results materially differ from forecasts of this report.
Copyright © Asahi Holdings, Inc. All rights reserved.

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Consolidated Financial Results (Year on Year)（JPY in billion）

Q1 FY2018

Q1 FY2019

Copyright © Asahi Holdings, Inc. All rights reserved.

Consolidated Performance

OperatingIncome

 3.8 billion yen：YoY increase of 0.3 billion yen
By Segment（YoY）• Precious Metals: (0.0) billion yen• Environmental Preservation: +0.2 billion yen• Life & Health: +0.0 billion yen• Others: +0.1 billion yen

Profit Before Tax

 3.3 billion yen: YoY decrease of 0.0 billion yen- Because of an increase in finance costs in relation to advance
trading in North America, Profit before tax decreased.

Dividend Dividend policy: Approximately 50% or more of the Consolidated
Net Income• Annual Dividend: 120 yen per share• Payout Ratio: 50.2％

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Segment Results （Year on Year）（JPY in billion）

FY2018
Q1

PreciousMetals

Environmental
Preservation

Life& Health

Consolidated

FY2019
Q1

ChangeRevenue

22.9

24.6+1.6

Operating
Income3.5

3.4(0.0)

Revenue

4.1

4.2+0.2

Operating
Income0.7

0.8+0.2

Revenue

4.9

5.2+0.2

Operating
Income0.1

0.1+0.0

Revenue

31.9

34.0+2.1

Operating
Income3.5

3.8+0.3

Copyright © Asahi Holdings, Inc. All rights reserved.

Segment Results (Precious Metals)
 Revenue increased from the same period in the previous year as the precious metal recycling businessin Japan, South Korea and Malaysia and refining business in North America grew steadily, while
Operating Income declined due to the impact of fixed cost incurred in the newly acquired company inFlorida.

Actual

FY2018 Q1

FY2019 Q1[Revenue]

Revenue

22.9

24.6

Operating
Income3.5

3.4

Operating
Income Ratio

30.0（JPY in billion）
+1.64

25.0
20.0
15.0
10.0

15.2%

5.0

14.0%

0.0

FY2018 Q1

FY2019 Q1[Operating Income]Plan

FY20195.0Revenue

96.0

Operating Income

12.0

Operating Income
ratio

12.5%

(0.04)

4.0
3.0
2.0
1.0
0.0

FY2018 Q1

FY2019 Q1Copyright © Asahi Holdings, Inc. All rights reserved.

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Segment Results (Environmental Preservation)
 Both Revenue and Operating Income increased from the same period in the previous year thanks to theefforts to develop new customers based on collaboration among group companies, despite the lingeringrepercussions of the withdrawal from photosensitive material business that took place in the previousfiscal year.

Actual

FY2018 Q1

FY2019 Q1[Revenue]

Revenue

4.1

4.2

OperatingIncome

0.7

0.8

16.7%

19.8%

Operating
Income Ratio（JPY in billion）+ 0.18

5.0
4.0
3.0
2.0
1.00.0FY2018 Q1

FY2019 Q1[Operating Income]Plan

FY2019

1.0Revenue

17.5

Operating Income

3.3

Operating Income
ratio

18.9%

+0.16

0.8
0.6
0.4
0.2
0.0

FY2018 Q1

FY2019 Q1Copyright © Asahi Holdings, Inc. All rights reserved.

Segment Results (Life & Health) Revenue and Operating Income increased as air conditioning and health care equipment businessmarked a steady performance overall.
 Resolved to transfer all shares of KOEIKOGYO CO., LTD., which specializes in fire-fighting equipment
works, as of August 1st in view of the optimum future allocation of Group’s management.

Actual

FY2018 Q1

FY2019 Q1[Revenue]

Revenue

4.9

5.2

OperatingIncome

0.1

0.1

Operating
Income Ratio

2.5%

6.0

（JPY in billion）
+0.23

5.0
4.0
3.0
2.0
1.0

2.5%

0.0

FY2018 Q1

FY2019 Q1[Operating Income]Plan

FY20190.2

Revenue

26.5

Operating Income

1.8

Operating Income
ratio

6.8%

+0.01

0.2
0.1
0.1
0.0

FY2018 Q1

FY2019 Q1Copyright © Asahi Holdings, Inc. All rights reserved.

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

Gold
5,000

FY2018FY2017FY2019

4,800

4,600

4,400

4,2004,000
2017/07

Silver70

2017/10

2018/012018/04

2018/072018/10

2019/01

FY2018FY2017

2019/04

2019/07

FY201960

50
2017/072017/10

2018/012018/04

2018/072018/10

2019/01

2019/04

2019/07

Copyright © Asahi Holdings, Inc. All rights reserved.

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

Palladium
6,000

FY2018FY2017FY2019

5,000

4,000

3,000
2017/072017/10

2018/01

Platinum
3,800

2018/04

2018/072018/10

2019/01

FY2018FY20172019/04

2019/07

FY2019

3,600

3,400

3,200

3,000

2,800
2017/072017/10

2018/012018/04

2018/072018/10

2019/01

2019/04

2019/07

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Trend in Prices (Gold <USD/Toz>, EXC <USD/JPY>)
Gold USD/Toz
1,500

FY2018FY2017FY2019

1,400

1,300

1,200

1,100

1,000
2017/072017/10

2018/012018/04

Exchange Rate USD/JPY
120

2018/072018/10

2019/01

2019/04

FY2018FY2017

2019/07

FY2019115

1101051002017/072017/10

2018/012018/04

2018/072018/10

2019/01

2019/04

2019/07

Copyright © Asahi Holdings, Inc. All rights reserved.

Dividend / ROE Dividend forecast for FY2019: 120 yen per share Dividend policy: Approximately 50% or more of the consolidated net income（unit: JPY）

FY2016FY2017FY2018FY2019forecast

AnnualDividend

60

63

120120

Payout Ratio－23.3%

52.6%

50.2%

EPS(37.24)

270.77228.14238.89ROE(2.6%)

17.3%

13.6%

13.4%

※

※ Including the impact of the issuing of new shares and disposition of treasury stock during period

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<Ref.> Advance Trading in North America
Advance Trading : Some clients in North America desire prompt return of product, while it generally takes approx. oneweek from receipt of dore (raw material) to return the product. In order to meet such demands, we conduct the trade thatthe clients can promptly receive the product in exchange for interest payment in accordance with the term shortened (ref.
⑥ below). The risk of becoming bad debts is very limited as we basically return the product only after we receive dore.
Flow : ①②(AorB)③④⑤(AorB)⑥Financingfor Advance Trading (A or B)

Advance Trading②Loan from bank andpurchase of gold

①Receipt of dore

Client③Prompt return(Mining companies)④Fabrication

AsahiRefining⑥Interest payment(A) Japanese Banks⑤Sale of gold andrepayment⑤Return of GoldOr(B) Bullion Banks②Gold loan

We have two options to take, either (A) Bank loan from Japanese banks and purchase of gold, or (B) Gold loan from bullion
banks. Accounting treatment regarding bank interests differs as follows;
Accounting treatment

Impact on Operating Income(A)

Loan from Japanese banks andpurchase of gold

Financing

Finance costs

No(Impact on Profit Before Tax)

(B)

Gold loan from bullion banks

Operating expenses

Yes
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