TRANSLATION FOR REFERENCE PURPOSE ONLYThis notice has been translated from the original Japanese text of the timely disclose statement and is forreference purpose only. In the event of any discrepancy between the original Japanese and this translation,
the Japanese text shall prevail.

October 29, 2019
To whom it may concern:
Company Name: Asahi Holdings, Inc.
Representative: Tomoya Higashiura, President(Code: 5857, First Section of the Tokyo Stock Exchange)
Contact:

Kunihiko Chogo, General Manager,
Corporate Planning & Communications Department(Phone: +81-3-6270-1833)

Notice on the Revision of Financial Forecasts and Changes in the Reporting Segment
This is to notify that Asahi Holdings, Inc. (hereinafter “Company”) has revised, at its meeting of theBoard of Directors held today, its Consolidated Financial Forecasts for the year ending March 2020
(April 1, 2019 to March 31, 2020), which were announced on May 8, 2019, in view of the recent trends
in its business performance as shown in the section below. Please also note that the reporting
segments will be changed as follows:
Details1.

Revision of the Consolidated Financial Forecasts for the fiscal year ending March 31, 2020
(April 1, 2019 to March 31, 2020)

Revenue

Operating

Profitincomebefore tax(Millions of yen, %)ProfitBasic
attributableearnings perto owners ofshareparent(yen)Previous Forecast (A)140,000

14,50014,3009,400

238.89

Revised Forecast (B)135,000

19,00016,800

10,200259.22

Change (B－A)△5,000

4,500

2,500

800

－

Change (%)

△3.6

31.0

17.5

8.5－

128,669

14,47813,4059,000

228.14

155,000

19,90017,70011,600292.26(Announced on May 8, 2019)(Ref.-1) Results for theprevious FY (FY ended
March 31, 2019)(Ref.-2) In case Fuji isconsolidated (FY ending
March 31, 2020)(Note): As disclosed separately today, in case the share transfer of Fuji Medical Instruments Mfg.
Co., Ltd. (hereinafter “Fuji”) is not realized, the projected figures are as shown in (Ref.-2). The details
are described below in “2. Reasons for the Revision of Financial Forecasts”.

2.

Reasons for the Revision of Financial Forecasts
The financial forecasts for the fiscal year were revised in view of the fact that precious metal

prices are hovering above the assumptions at the beginning of the fiscal year and the volume of
precious metals collected for recycling is expected to exceed the level planned at the beginning of thefiscal year, among other reasons. In this revised forecast, operating income, profit before tax andprofit attributable to owners of parent are all projected to be record high.
Today, the Company signed a basic agreement on the share transfer of Fuji, its consolidatedsubsidiary. Fuji will be classified as discontinued operations by the third quarter of the year ending
March 2020 and scheduled to be excluded from the list of consolidated subsidiaries by the fourthquarter of the year ending March 2020. The details are shown in the “Notice on the Conclusion of
Basic Agreement on Share Transfer (Change regarding Subsidiary)”, which was announced
separately today.
In case the share transfer of Fuji is not realized, approx. 20 billion yen will be added to revenue,approx. 0.9 billion yen to operating income, approx. 0.9 billion yen to profit before tax and approx.
1.4 billion yen to profit attributable to owners of parent respectively. The projected figures are asshown in (Ref.-2) above.
3.

Changes in the Reporting Segments
The Company’s business had earlier been composed of three reporting segments: “PreciousMetals Business,” “Environmental Preservation Business” and “Life & Health Business.” When thetransfer of Fuji to an equity method affiliate goes ahead as scheduled, the Company will change its
reporting segment composition to comprise two segments of “Precious Metals Business” and“Environmental Preservation Business” beginning in the third quarter of the fiscal year ending
March 31, 2020. As announced earlier, the Company sold KOEIKOGYO CO., LTD., on August 1,2019.
INTER CENTRAL, INC., which comprises the “Life & Health Business” segment, will betransferred to “Environmental Preservation Business” segment as it contributes to the realizationof a society conserving energy through the development and installation of air-conditioning
equipment.