Business Report for FY2014
From April 1, 2014 to March 31, 2015

To Our Shareholders
I would like to express our cordial appreciation for your continuous
support and loyal patronage.___________________________________
During the 6th business term (April 2014 through March 2015), theJapanese economy has been in the modest recovery as a whole. Under
these economic conditions, the Group's results in each businesssegment were as follows.______________________________________
Precious metal recycling business______________________________In the electronics sector, the Japanese market continues to contract as
customers shift operations overseas, but because the Group worked toexpand its E-scrap and precision cleaning businesses, the collection
volume of gold and silver increased from that of the same period a year
earlier. In the dental sector, we worked to secure collection volume evenas the volume of precious metals used for domestic dental treatment
materials continued its gradual decline. In the jewelry sector, thecollection volume of gold and silver decreased compared with the same
period a year before. However, the collection volume of platinum andpalladium increased year-on-year. In the automotive catalyst sector,
work on new customer development led to an increased collection
volume of palladium compared with the same period a year earlier.
Asahi Refining (United States and Canada) which joined the Group in
March 2015, is a leading company in the world for its gold and silver
refining operations and is expected to drive the Group’s future growth.
Environmental preservation business____________________________
Although there were some signs of recovery in corporate production
activity, overall it cannot be considered vigorous, and the emission
amount of industrial waste are on the decline. Under thesecircumstances, Group companies have made sales efforts such asadvancing one-stop processing solutions and the development of newcustomers. Volume handled, especially effluent and sludge, grew yearon- year.
______________________________
Life & health business__________________________
FUJI MEDICAL INSTRUMENTS MFG. has been incorporated into theGroup in July 2014. _____________________________Taking it as an opportunity, the “Life & Health” business segment has been
newly established with other two companies included. One is INTER
CENTRAL which operates manufacturing and sales of heating equipment
and design and construction of radiant air-conditioning system. The other is
KOEIKOGYO running operations of design and construction of fireprevention facilities. This business segment had a limited contribution to theGroup’s performance during the 6th business term. However, we expect thatthe increase in the elderly and rising health conscious trend in the domestic
market will lead to its growth as the new business segment.
_____
_
_
_
_
Consequently, operating results for the current fiscal year were as follows:
consolidated net sales 111,417 million yen, operating profit 10,480 million
yen ordinary profit 10,561 million yen, and net income 5,774 million yen.__
As for dividends during the coming fiscal year, we plan on an interim
dividend of 30 yen per share and a year-end dividend of 30 yen per share,
for a total annual dividend of 60 yen per share._______________________
Furthermore, our ambitious initiatives have started to “pursue growth andefficiency” and we plan to expand overseas operation as well in the coming
three years of the 7th mid-term business plan starting in April 2015.
_____
__
__
_____
_
We ask all our shareholders for their continuous understanding and supportof the activities of the Asahi Holdings Group._________________________

President & CEO

Overview of the 7th Mid-term Business Plan(FY2015-17)

Pursuing growth and efficiency- Achieving 50% profit growth and minimum 13% ROE for FY 2017【Basic Policy】

1.Accelerate growth in new business areas
2.Enhance profitability of core business3.Promote global management【 Summary of key measures】
1. Operating profit in the final fiscal year (FY 2017) is to be grown by 50% compared to FY 2014.
2. "Minimum 13% ROE for FY 2017" is to be achieved through selection and concentration of management resources alongwith increased operating efficiency.______________________________________________________________________
3. Total investment of 15 billion yen (excluding M&A) during the three years funded by cash flow during the period.
4. During each fiscal year, 30–35% of current net profit shall be allotted for return to shareholders.
5. Starting June 2015, a transition to the company with a committee governance structure including at least three Outside
Directors shall be made, strengthening corporate governance.
6. Voluntary application of International Financial Reporting Standards (IFRS) shall begin in FY 2016.
7. The business continuity systems of every Group company shall be reexamined, and risk management shall bestrengthened.
8. Precious metal business segment: As it is the Group's core business, the competitiveness of each Japanese domestic
business shall be enhanced. Along with working to expand the business base in North America, we shall work on
expansion of new fields in Asian markets. Along with raising awareness of the “Asahi Refining” brand, we shall expand
processing volumes of recycling materials in the global market.
9. Environmental preservation business segment: As it is a stable growth business of the Group, profitability shall beemphasized, and active capital expenditure shall be performed. M&A of companies that can contribute to growth willcontinue.
10.Life and health business segment: Through new business development, the opening of new sales channels, and thebuilding of a unique business model, it shall be set on the path of business growth as the Group's third business pillar.＿Overview of the 7th Mid-term Business Plan(FY2015-17)
Consolidated
Net Sales

FY2017

Consolidated
Operating IncomeFY2017

Billion yen

170 billion yen

17015012916 billion yen•*IFRS applied from FY2016

Dividend payout ratio :Maintain 30～35%

11FY2015

1614FY2016

FY2017
Net Sales

Operating IncomeTOPICS
Incorporation of “Asahi Refining” into the Group
Asahi Refining joined the Group in March 2015, which
operates its long-standing business of gold and silver
refining processing based on mine-derived materials inthe US and Canada. The business boasts its leading
position in the global market for its refinery volumes ofgold and silver. Furthermore, Asahi Refining’s
management resources include its accumulated coretechnology of refining processing, strong relationshipwith mine customers and cost competitiveness driven
by the scale._______________________________
We aim for growth in the global precious metalbusiness by achieving synergies through initiatives tobuild up optimal combination with precious metal
recycling technologies and capabilities which we havedeveloped.___________________________________

Asahi Refining is planned to become our growth engine in
the 7th mid-term business plan, along with the “Life &Health” business segment which is newly established inJuly 2014.__________________________________

Consolidated Financial Highlights■Net Sales (Millions of Yen)

■Operating Income (Millions of Yen)
Interim

Full-term

12,000Interim
10,480151,094

160,000

9,631

10,000111,417

120,000
96,36880,000Full-term

11,217

7,495

8,000

94,254

5,974
5,260

6,000

72,74849,324

51,63247,884

4,674

4,000

2,896

40,0002,000
02012/032013/03

2014/032012/03■Net Income per Share (Yen)■Net Income (Millions of Yen)

Interim

7,000

Full-term

5,971

5,926

200

2013/03

2015/03Interim
183.50183.20160

5,000

2014/03

Full-term
176.89

180

5,774

6,000

4,000

0

2015/03139.24

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

2015/0320.0%

100,000

ROE

Total Assets

104,877

11.2%
58,31538,902

1,542.82
1,422.51

1,400
1,200

66,112

11.9%

1,000

62,26042,012

46,491

1,288.56
1,198.77

13.6%

60,0002015/03

1,800
1,600

16.2%

80,0002014/03■Net Assets per Share (Yen)■Net Assets/Total Assets/ROE (Millions of Yen, %)120,000

Net Assets

2013/03

50,958800
600

40,000400
20,000200

00.0%
2012/032013/03

2014/03

2015/030
2012/032013/03

2014/03

2015/03

Consolidated Financial Statements
Consolidated Balance Sheet（Millions of yen）

As of March 31,
2014

As of March 31,
2015

ASSETS
Current assets

As of March 31,
2014

As of March 31,
201512,34245,603

3,643

6,161

495

26,171

LIABILITIES
37,51748,556

Cash and deposits

9,640

11,046

Notes and accounts payable-trade

Notes and accounts receivable - trade

11,31915,146

Short-term loans payable

Merchandise and finished goods

4,094

4,855

Current portion of long-term loans payable

143270Work in process

8,596

9,141

Accounts payable - other

1,517

3,473

Raw materials and supplies

1,107

1,633

Income taxes payable

2,635

2,111

Other

2,879

6,773

Other

3,908

7,415

Allowance for doubtful accounts

(120)

(40)

7,278

8,316

Noncurrent assets

28,59556,321Long-term loans payable

5,419

6,550

Property, plant and equipment

24,40732,334

Other

1,858

1,766

Buildings and structures, net

8,979

12,298

Total liabilities

19,621

53,919Land13,122

14,568NET ASSETS

Other

2,304

5,467

Shareholders' equity

45,78849,8192,856

22,643

Capital stock

4,480

4,480

Goodwill

2,021

21,737

Capital surplus

6,038

6,038

Other

835

906

Retained earnings

40,64844,459

1,331

1,343

Intangible assets

Investments and other assets

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

66,112

104,877

Current liabilities

Noncurrent liabilities

Treasury stock(5,379)(5,159)Total accumulated othercomprehensive income

559

685

Subscription rights to shares

7777

Minority Interests66

375

Total net assets

46,491

50,958

Total liabilities and net assets

66,112

104,877

Consolidated Financial Statements（Millions of yen）

Consolidated Statements of Income（Millions of yen）

Consolidated Statements of Cash Flows

The Fiscal Year

The Fiscal Year

The Fiscal Year

The Fiscal Year

Ended March 31,

Ended March 31,

Ended March 31,

Ended March 31,

2014

2015

2014

2015

Net sales

94,254111,417

Cost of sales

79,01888,340Gross profit

15,23523,076

Selling, general andadministrative expenses

5,604

12,595

Operating income

9,631

10,480Non-operating income

393

183

Non-operating expenses

35102

9,989

10,561

Extraordinary income

46

19

Extraordinary loss

136

863

Income before income taxes andminority interests

9,899

9,717

Income taxes-current

3,942

3,916

Income taxes-deferred

(13)

(40)

Income before minority interests

5,970

5,842

Net income

5,971

5,774

Ordinary income

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

Net cash provided by (used in)operating activities

14,058

9,419

Net cash provided by (used in)investing activities(1,090)(29,633)

Net cash provided by (used in)financing activities(8,021)

21,442

Effect of exchange rate change
on cash and cash equivalents

381

143

Net increase in cash andcash equivalents

5,328

1,371

Cash and cash equivalents at
beginning of period

4,141

9,470

Cash and cash equivalents at
the end of period

9,470

10,841

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

Stock Information/Corporate Profile■ Stock Information(As of March 31, 2015)

Total number of authorized shares
Total number of shares outstanding
Number of shares per trading unit
Number of shareholders

129,000,000 shares
36,254,344 shares100 shares
9,321 persons■ Principal shareholders
Name of Shareholders

Number ofShares-Held(Thousand Shares)

Ratio ofShareHolding(%)

Japan Trustee Services Bank, Ltd.
(Trust account)

1,739

4.80

TERA ENTERPRISES Co., Ltd.

1,350

3.72

Mitsuharu Terayama

882

2.43

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

865

2.39

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

802

2.21

K&M Co., Ltd.

700

1.93

Asahi Employee Stock Ownership Plan

681

1.88

Asahi Holdings, Inc.
April 2009
July 1952 (as Asahi Pretec Corp.)¥4,480 million
2,080 (Consolidated)
Recycling of precious & rare metals
Industrial waste treatment(Industrial waste treatment and otherenvironmental preservation business)

Manufacturing and sales, construction of lifeand healthcare related equipment

Subsidiaries
Asahi Pretec Corp.
Japan Waste Corporation
Asahi Americas Holdings,Inc

Taiyo Chemical Co., Ltd.
Kyodo Chemical Co., Ltd.
Iyotec Co., Ltd.

FUJI MEDICAL INSTRUMENTS MFG. Co., Ltd.
JW Logistics Co., Ltd.
INTER CENTRAL, INC.
Nihon Chemitec Co., Ltd.
KOEIKOGYO CO., LTD.
Fuji Rozai Co., Ltd.
Ecomax Incorporated
JW Glass Recycling Co., Ltd.

Overseas subsidiaries
Masamichi Terayama(As of March 31, 2015)

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)
Asahi Refining USA (USA)Asahi Refining Canada(Canada)■ Board of Directors
Formally resolved at the 6th Annual General Meeting of Shareholders held on June 16, 2015

STATE STREET BANK AND TRUSTCOMPANY 505025

535

1.48

President & CEO: Mitsuharu Terayama
Directors:
Yoshikatsu TakeuchiTomoya Higashiura
Keitaro Shigemasa
Kazuo Kawabata

CHASE MANHATTAN BANK GTS
CLIENTS ACCOUNT ESCROW

527

1.46

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

450

1.24

※Total Number of Treasury Shares (3,519,057 shares) are excluding from the above.

Directors: Shoji Morii *1 *2

Yukio Tanabe *1
Kazuhiko Tokumine *1 *2
Hiroharu Okubo *1 *2*1 Audit Committee member*2 Outside officers pursuant to Article 2, paragraph (3) item (v) of Ordinance forEnforcement of the Companies Act.

Head Offices
Asahi Holdings Group operates the business in three segments: the precious metal recycling business, the environmental preservation business,and the life & health business under Asahi Holdings, Inc. which is the pure holding company.

■ 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 DateApril 1 - March 31March 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