Consolidated Financial Results for the Fiscal Year Ended March 31, 2013
Asahi Holdings, Inc. [Japan GAAP]May 10, 2013
Stock code:

5857

Shares listed:Tokyo Stock Exchange (First Section)

U R L:

http://www.asahiholdings.com

Representative

Mitsuharu Terayama, Chairman, CEO
Keitaro Shigemasa, Corporate Officer

For further information please contact:

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

The Ordinary General Meeting of Shareholders:June 18, 2013

Filing date of financial statement:

June 19, 2013

Start of dividend payment:
May 31, 2013
Supplementary materials for the financial results: No
Investor conference for the financial results:
Yes (for institutional investors, analysts)(Rounded down to the nearest million yen)
１．Results of the fiscal year ended March 31, 2013 (From April 1, 2012 to March 31, 2013)（１）Results of operations(Percentage changes relative to previous corresponding period)
Net sales

Operating income

The fiscal year ended
Millions of yen％
Millions of yen％
March 31, 2013
96,368 (36.2)
7,495 (33.2)
March 31, 2012
151,094 36.7
11,217
5.2(Note) Comprehensive income:The fiscal year ended March 31, 2013
The fiscal year ended March 31, 2012

Ordinary income
Millions of yen％

Net income
Millions of yen％

7,794 (30.0)
4,518 (23.8)
11,1305.9
5,926 (3.5)
4,836 million yen : (21.3)%
6,147 million yen : 4.4%

DilutedOrdinary
Operating
Return on
net income
income toincomeequityper share
total assets
to net sales
Yen
％
％
％
－
11.2
12.9
7.8
－
16.2
19.0
7.4
March 31, 2013 : －million yen
March 31, 2012 : － million yen

Net income per
share
The fiscal year ended
Yen
March 31, 2013139.24
March 31, 2012183.20(Note) Equity in earnings of affiliates:（２）Financial Position

Shareholders’equity ratio
As ofMillions of yen
Millions of yen％
March 31, 2013
62,26042,012
67.3
March 31, 2012
58,31538,902
66.6(Reference) Shareholders’ equity:
As of March 31, 2013
41,875 million yen
As of March 31, 2012
38,835 million yen
Total assets

Net assets

Net assets per share
Yen
1,288.56
1,198.77（３）Cash flows

The fiscal year ended
March 31, 2013
March 31, 2012

Cash flows fromoperatingactivities
Millions of yen(419)
11,297

Cash flows frominvestingactivities
Millions of yen(2,064)(2,278)Cash flows fromfinancing activities
Millions of yen
2,603(7,705)

Cash and cash
equivalents at endof the fiscal year
Millions of yen
4,141
3,527

２．Dividend payments
Total
Dividend
Payment(Annual)Millionsof yen1,942
1,948

Dividends per share
1st
Quarter

2nd
Quarter

3rd
QuarterYear-end

AnnualThe fiscal Year ended

Yen

Yen

Yen

Yen

Yen

March 31, 2012
March 31, 2013
Year ending
March 31, 2014 (Forecast)

－
－

30.00
30.00

－
－

30.00
30.00

60.00
60.00

－

30.00

－

30.00

60.00

Payout
Ratio

Dividend
to Net Assets(Consolidated) (Consolidated)

%
32.8
43.1

%
5.3
4.8

38.9

３．Forecast (From April 1, 2013 to March 31,2014)(Percentage changes relative to previous corresponding period)
Net income
Operating
Ordinary income
Net income
per share
incomeNet sales
Six months ending
September 30, 2013
Year ending March 31, 2014

Millions of Yen

44,000 (10.8)

4,000

38.1

4,000

35.3

2,400

54.3

74.02

90,000

8,500

13.4

8,500

9.0

5,000

10.7

154.09(6.6)％

Millions of Yen％

Millions of Yen ％YenMillions of Yen ％４．Notes（１）Changes in important subsidiaries during the current fiscal year : No
（２）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: No
Changes subject to Article 14-7 of the Ordinance on Terminology, Forms and Preparation Methods ofConsolidated Financial Statements. For details, please refer to “(7) Changes in Accounting Policies”
under “4. Accounting policies”on page 15.
（３）Number of issued shares (common stock)(i) Number of issued shares at the end of year (including treasury shares)
36,254,344 shares
As of March 31, 2013
As of March 31, 2012
36,254,344 shares(ii) Number of treasury shares at the end of year
3,756,439 shares
As of March 31, 2013
As of March 31, 2012
3,858,589 shares(iii) Averaged number of shares during the period
32,448,647 sharesYear ended March 31, 2013
Year ended March 31, 2012
32,349,224 shares(Reference) Summary of Nonconsolidated Results
1. Nonconsolidated Results of the Year ended March 31, 2013(From April 1, 2012 to March 31, 2013)（１）Results of operations(Percentage changes relative to previous corresponding period)
Net sales
The fiscal year ended
March 31, 2013
March 31, 2012

The fiscal year ended
March 31, 2013
March 31, 2012

Millions of yen

4,868
6,057

％

Operating income

Ordinary income

Millions of yen

Millions of yen(19.6)
36.0

3,695
5,005

％

(26.2)
41.8

3,719
5,006

Net income per share

Diluted net income per share

Yen
107.96151.83Yen－－％(25.7)
42.3

Net income
Millions of yen

3,503
4,911

％

(28.7)
39.1

（２）Financial Position

As ofMarch 31, 2013
March 31, 2012
(Reference)
Shareholders’ equity

Total assets

Net assets

Millions of yen
47,473
41,173

Millions of yen
35,72734,009As of March 31, 2013 : 35,649 million yen

Shareholders’equity ratio
％
75.1
82.4

Net assets per
share
Yen
1,096.97
1,047.75

As of March 31, 2012 : 33,942 million yen*Indication regarding the situation of audit procedures
These financial results are not subject to the audit procedures pursuant to the Financial Instruments andExchange Act. As of the disclosure of the financial results, the procedures for auditing 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.

【Appendix】

Table of contents of the appendix

1. Information Regarding Consolidated Performance ......................................................................................2(1) Consolidated Operating Results for the Year ended March 31, 2013 .......................................................2(2) Consolidated Financial Position and Cash Flows for the Year ended March 31, 2013 ..............................2(3) Forecast of Consolidated Performance for the Year ending March 31, 2014.............................................2(4) Dividends ..............................................................................................................................................2(5) Business risks........................................................................................................................................2
2. Our Group ..................................................................................................................................................3(1) Precious metal recycling business ..........................................................................................................3(2) Environmental preservation business ....................................................................................................3
3. Management Policy..................................................................................................................................6(1) Basic management policy...................................................................................................................6(2) Medium to long-term strategies ........................................................................................................6(3) Challenge to be addressed..................................................................................................................6(4) The state of internal control system..................................................................................................6
4. Consolidated Financial Statements........................................................................................................7(1) Consolidated Balance Sheets .............................................................................................................7(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income....9
Consolidated Statements of Income for the fiscal year ended March 31, 2013 and 2012................................ 9
Consolidated Statements of Comprehensive Income for the fiscal year ended March 31, 2013 and 2012 ...... 9(3) Consolidated Statements of Changes in Net Assets ..............................................................................10(4) Consolidated Statements of Cash Flows .........................................................................................12(5) Notes on Assumptions for Going Concern.......................................................................................13(6) Basis of Presenting Consolidated Financial Statements ...............................................................13(7)Changes in Accounting Policies ........................................................................................................15(8) Others ................................................................................................................................................16[Segment Information]....................................................................................................................................... 16[Per Share Information]..................................................................................................................................... 17[Significant Subsequent Events] ....................................................................................................................... 17
５．Others ..................................................................................................................................................18(1)Changes of Directors .........................................................................................................................18(2)Amounts of Production, Orders Received, Sales..............................................................................18

1

1. Information Regarding Consolidated Performance(1) Consolidated Operating Results for the Year ended March 31, 2013
During the fiscal year ended March 31, 2013, the Japanese economy had signs of recovery such as
downward pressure on yen and increase in stock prices due to the expectation for the new policy associatedwith the regime change. Still, being on the back of the continued appreciation of Japanese yen anddeceleration of the global economy, domestic manufacturing activity remained slow and the economy
remained in a severe situation overall.
Under these circumstances, domestic manufacturing of products such as flat-panel television or otherelectronics had been stagnated, and regarding the 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 the environmental preservation business, the transaction volumes of waste oil, sludge, andmedical-related wastes were higher than the previous corresponding period. The performance of INTER
CENTRAL, INC. which became a wholly owned subsidiary on July 2012 continued strong through the period.
As a result of the above, as consolidated results for the fiscal year, we recorded net sales of 96,368 million
yen, down 54,725 million yen (-36.2%) year-on-year; operating income of 7,495 million yen, down 3,722
million yen (-33.2%) year-on-year; ordinary income of 7,794 million yen, down 3,335 million yen (-30.0%)
year-on-year; and net income of 4,518 million yen, down 1,408 million yen (-23.8%) year-on-year.
Looked at by segment, sales in the precious metal recycling business were 80,177 million yen, down 56,394
million yen (-41.3%) year-on-year; and sales in the environmental preservation business were 16,191 million
yen, up 1,668 million yen (+11.5%) year-on-year.

(2) Consolidated Financial Position and Cash Flows for the Year ended March 31, 2013
As of this fiscal year ended March 31, 2013, total assets amounted to 62,260 million yen, up 3,945 million
yen from the previous fiscal year end. This was due mainly to increase of 3,058 million yen in notes andaccounts receivable-trade, increase of 789 million yen in inventories.
Total liabilities amounted to 20,248 million yen, up 835 million yen from the previous fiscal year end. Thiswas due mainly to increase of 4,700 million yen in loans payable, decrease of 2,917 million yen in income
taxes payable, decrease of 789 million yen in notes and accounts payable-trade.
Net assets totaled 42,012 million yen up 3,110 million yen from the previous fiscal year end.
Net cash used in operating activities amounted to 419 million yen due mainly to 7,349 million yen ofincome before income taxes and minority interests, 6,597 million yen of income taxes paid, 2,780 million yen
of increase in notes and accounts payable-trade.
Net cash used in investing activities amounted to 2,064 million yen due mainly to 1,173 million yen in
payments for purchase of fixed assets.
Net cash provided in financial activities amounted to 2,603 million yen due mainly to 4,492 million yen
increase of loans payable, expenditure of 1,946 million yen for the payment of dividends.
As a result, Cash and cash equivalents as of March 31, 2013, increased 613 million yen from March 31,
2012, to 4,141 million yen.

(3) Forecast of Consolidated Performance for the Year ending March 31, 2014
It is considered that difficult circumstances of domestic production activities will continue, though theJapanese economy is expected to recover by the various government policies. Under these circumstances, wewill make further efforts to enhance our profit base. Consequently, for the next fiscal year performance, we
forecast net sales of 90,000 million yen (-6.6%), operating income of 8,500 million yen (+13.4%), ordinary
income of 8,500 million yen (+9.0%) and net income of 5,000 million yen (+10.7%).

(4) Dividends
Our basic policy is to improve corporate value continuously by maintaining stable profitability andachieving further growth, and to meet shareholders’ expectations by continuous stable dividends. We also
consider it important to fulfill internal reserves for strategic investment to enhance existing business anddevelop new business.
Under this basic policy, the fiscal year’s end dividend will be 30 yen per share, consequently, the annual
dividend per share for the fiscal year ended March 31, 2013 will be totaled 60 yen including the interim
dividend of 30 yen per share.
Further, for the year ending March 31, 2014, we are planning to pay out 30 yen per share for both interim
and year end dividend, making the full year amount 60 yen per share.

(5) Business risks
Here are the main risk factors which could affect our financial condition and results of operations. Please
note that the following is not an exhaustive discussion of all risk factors that should be considered before
investing in the shares of the company.
① Influence of fluctuations in precious metal market prices and the exchange rate
Precious metals, our major products of precious metal recycling business, are traded at theinternational commodity markets, and the prices are affected by many factors around the world such associal and economic movement of supply and demand country or exchange rate etc.

2

Therefore, our group’s performance could be affected by precious metal market price changes. We aremaking efforts to reduce risks by hedging through forward exchange dealing.
② Legal restrictions
We are operating industrial waste related business under “Waste Disposal and Public Cleansing Act”.
Also we are subject to “Water Pollution Control Law”, “Air Pollution Control Law” and “Sewerage Law”
etc.
In addition we have local government approvals of collecting, transporting and disposing industrial
waste, and to obtain these approvals we have to observe regulations in local administration level.
From rising society's concern over environmental problem, these law restrictions are in the directionof being strengthened. To prepare for this situation, further capital investment could be required. At thetime of establishing, relocating or replacing processing facilities, we will have to acquire appropriate
permission. In such case, it could be needed to obtain neighbors’ consent which could be difficult.
In consequence, these legal restriction and social movement could affect our financial condition andresults of operations.

2. Our Group
Our Group comprises of the holdings company ”Asahi Holdings, Inc.”, ”Asahi Pretec Corp.”, ”Japan Waste
Corporation”, 17 other subsidiaries and 2 affiliates. Our main businesses are precious metal recycling
business and environmental preservation business. The details are as follows.

(1) Precious metal recycling business

As for precious metal recycling business, we sell rare metal products such as gold, silver, platinum,
palladium and indium by recycling scrap containing rare metals etc.
Asahi Pretec Corp.
・Collect, refine, recycle precious and rare metals used in a variety of areas such as electronics, flat panel
displays, catalysts, dentistry, jewelry, photography,etc.
ASAHI G&S Sdn. Bhd.
・Collect precious metals from electronic parts and local jewelry manufacturers and recycle them at the
local plant.
Shanghai Asahi Pretec Co., Ltd.
・Collect precious metals from mainly Japanese IT manufacturers established in China and recycle themat the local plant.
Asahi Pretec Korea Co., Ltd.
・Collect and recycle precious metals from a wide range of areas including the electronics industry anddentistry, etc.
Usuda Manufacturing Co., Ltd.
・Engaged in the precision cleaning and degreasing business of components and risen wafer cases fromsemiconductors/flat panel display manufacturing equipment, and precious metal collection/analysis.

(2) Environmental preservation business
As for environmental preservation business, we collect, transport and perform intermediate treatment ofindustrial waste.
Asahi Pretec Corp.
・Waste treatment and other environmental preservation efforts.
Nihon Chemitech Co., Ltd.
・Detoxify industrial wastes from manufacturers of semiconductors, electronic components, etc. byneutralization and bio-treatment.
・Bio-treat, dewater and reduce volume of organic waste liquids and sludge from food discharged fromvarious food manufacturers and restaurants. In addition, produce compost from organic waste.
Sansho Co., Ltd. (As of April 1, 2013, Sansho Co., Ltd. has been renamed JW logistics Co., Ltd.)・Collect and transport industrial waste and industrial waste subject to special control.
Iyotec Co., Ltd.
・Dispatch personnel, introduce human resources to manufacturers and contracts for manufacturingbusiness.
Taiyo Chemical Co., Ltd.
・Processing of wastes from the electronic components industry and hospitals, etc.
・Photosensitive materials business.
Fuji Rozai Co., Ltd.
・ Incinerate and neutralize waste oil and liquids discharged from electronics components andphotography industries.
・Incinerate infectious medical wastes from hospitals.
JW Glass Recycling Co., Ltd.
・Recycle sheet glass and glass bottles.
Ecomax Co., Ltd.
・ Conduct concrete solidification treatment of combustion residue, dust and sludge, etc. produced byincineration treatment facilities, etc.
Kyodo Chemical Co., Ltd.
・Collect, transport, and neutralize (intermediate process) industrial wastes and specially-controlled3wastes.
・Recover and process liquid waste and films, etc. generated from printing plate companies and hospitals.
INTER CENTRAL, INC.
・Provide heating equipments, radiant cooling and heating equipments.

4Precious Metal Recycling BusinessA s a h i

Environmental Preservation BusinessH o l d i n g s ,Asahi Pretec Corp.

Overseas Bases（Malaysia）

I n c .

Japan Waste Corporation

Entrustment ofindustrial waste
treatment

ASAHI G&S
Sdn. Bhd.

Domestic Bases
Nihon ChemitechCo., Ltd.

Selling recycling scrap
containing rare metals

Sansho Co., Ltd.

※３

（China）
Shanghai Asahi
Pretec Co., Ltd.

Taiyo ChemicalCo., Ltd.

Iyotec Co., Ltd.

（Korea）
Asahi Pretec
Korea Co., Ltd.

Fuji Rozai Co., Ltd.

（Taiwan）
Asahi Pretec Taiwan
Co., Ltd.

JW Glass RecyclingCo., Ltd.

Asahi Shih Her
Technologies Co., Ltd.

Ecomax Co., Ltd.

※１ Other: 1 Company
Kyodo Chemical Co.,Ltd.

Domestic Bases
INTER CENTRAL, INC.

Usuda ManufacturingCo., Ltd.

Other: 2 Companies※２ Other: 1 Company（Note）１．capital relationship２．business relationshipNo mark
consolidated subsidiaries※１ Affiliated companies accounted for by equity method※２ Affiliated companies not accounted for by equity method※３ On April 1, 2013, Sansho Co., Ltd. changed its name to JW logistics Co., Ltd.

5

3. Management Policy(1) Basic management policy
We aim to pursue continuous growth by expanding precious metal recycling business and environmental
preservation business, and contribute to the material-cycle society. In the process above, we put emphasis on
the balance between stable profit and continuous growth. Our basic management policy is to heighten
corporate value through these activities and to respond to the expectations of all stakeholders, including
customers, shareholders and employees over a long period of time.

(2) Medium to long-term strategies
In line with the 6th Mid-Term Business Plan (April 2012 through March 2015), we aim to pursue theaction: “Expanding business in Asian markets”, “Broadening business domains through M&A”, and“Streamlining group management” utilizing the existing management resources. As part of these strategies
we established a subsidiary and a joint venture subsidiary with a strong local company in Taiwan.
Also, on the basis of change in business environment, we reviewed the consolidated performance goal in thelast fiscal year of the 6th Mid-Term Business Plan, as announced on May 10, 2013.
As for dividends, we are going to decide dividend amount per share putting emphasis on stable returning
profits to shareholders and taking medium to long-term dividend payout ratio into consideration.
The consolidated performance goal in the last fiscal year of the 6th Mid-Term Business Plan
Sales
¥ 100.0 billion
Operating Income¥
9.5 billion(3) Challenge to be addressed① Expanding business in Asian markets
In South Korea, we will further expand the business in the electronics and dental fields. In Taiwan Asahi
Pretec Taiwan Co., Ltd. and Asahi Shih Her Technologies Co., Ltd. are going to start business.
We aim to expand the amount of collected precious metal from foreign markets such as Asian markets
through developing new customers by building corporative relationship with local firms.
② Broadening business domains through M&A
We will continue to promote M&A with a high investment return, and not only expand the existing
business such as the environmental preservation business but also aim to enter new business fields.
③ Streamlining group management
We will reduce administrative costs on a consolidated basis by consolidating the group management
functions in the holding company. And on the other hand, we will strengthen the in-house information
system and achieve speedy and efficient operations.

(4) The state of internal control system① The state of fundamental opinion and policy about corporate governance
The relevant matter is stated at corporate governance information.
② Attempt to enhance internal control system through this fiscal year
We are continuously acting to strengthen internal control system, checking and evaluating the usages of
the rule for internal control by in-house organization “Internal controls promotion committee”.

6

4. Consolidated Financial Statements(1) Consolidated Balance Sheets

ASSETS
Current assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubt for accounts
Investment and other assets
Total noncurrent assets
Total assets

As of March 31,
2012
Millions of yen

As of March 31,
2013
Millions of yen

As of March 31,
2013
Thousands of
U.S.dollars

3,527
9,480
2,123
10,727
618
676
2,157
(11)
29,301

4,141
12,539
5,067
8,114
1,077
493
1,873
(9)
33,29844,035
133,327
53,882
86,277
11,4605,246
19,922(98)
354,051

16,909(7,413)
9,495
13,091(10,370)
2,721
12,910263
2,272(1,900)372
25,763

17,918(8,637)
9,281
13,443(11,246)
2,197
13,031140
2,462(2,153)309
24,959190,521(91,837)
98,684142,944(119,580)
23,364
138,556
1,497
26,182(22,893)
3,290
265,390

1,970
519
2,490

2,380
797
3,177

25,307
8,483
33,790

113
181
475
(9)
760
29,01458,315

110
162
558
(6)
824
28,96262,260

1,175
1,730
5,935
(74)
8,766
307,947
661,998

U.S. dollar amounts represent translations using the approximate exchange rate on March 31, 2013 ofYen94.05=US$1, and are included solely for the convenience of readers.

7LIABILITIESCurrent liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Accounts payable-other
Income taxes payable
Provision for bonuses
Provision for directors’ bonuses
Provision for repairs
Provision for product warranties
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Deferred tax liabilities
Provision for retirement benefits
Other
Total noncurrent liabilities
Total liabilities
NET ASSETS
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total accumulated other comprehensive income
Subscription rights to shares
Minority interests
TOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS

As of March 31,
2012
Millions of yen

As of March 31,
2013
Millions of yen

As of March 31,
2013
Thousands of
U.S.dollars

3,253
4,545
1,000
1,412
3,267
659
30
100
－
1,862
16,1302,463
10,245
1,500
1,388
349
597
8
113
21
1,864
18,553

26,190108,937
15,94914,768
3,718
6,350
95
1,206
233
19,829197,276

1,500
1,646
65
70
3,282
19,413

－
1,541
107
45
1,694
20,248－16,3891,141
486
18,016215,292

4,480
6,087
34,124(5,656)39,0364,480
6,087
36,697(5,507)41,75847,64364,723
390,194(58,555)444,004

18
(111)
(108)
(201)
67
－
38,90258,315

19
(41)
139
116
77
59
42,01262,260

202
(441)
1,482
1,243
828
630
446,706
661,998

U.S. dollar amounts represent translations using the approximate exchange rate on March 31, 2013 ofYen94.05=US$1, and are included solely for the convenience of readers.

8(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income for the fiscal year ended March 31, 2013 and 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 fiscal year
ended March 31,
2012
Millions of yen

The fiscal year
ended March 31,
2013
Millions of yen

The fiscal year
ended March 31,
2013
Thousands of
U.S.dollars

151,094
135,003
16,091
4,873
11,217117
204
11,130170
489
10,810
4,706
178
4,884
5,926
5,926

96,36883,557
12,811
5,316
7,495
363
64
7,794
14
459
7,349
2,525
305
2,831
4,518
4,518

1,024,657
888,435
136,222
56,526
79,696
3,867
685
82,877
152
4,884
78,146
26,854
3,252
30,10648,03948,039Consolidated Statements of Comprehensive Income for the fiscal year ended March 31, 2013 and 2012
The fiscal year
ended March 31,
2012
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 to)Comprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests

The fiscal year
ended March 31,
2013
Millions of yen

The fiscal year
ended March 31,
2013
Thousands of
U.S.dollars

5,926

4,518

48,039

(15)
262
(20)

0
70
239

3
749
2,548

(6)

8

87

220
6,147

318
4,836

3,387
51,427

6,147
－

4,836
－

51,427－

U.S. dollar amounts represent translations using the approximate exchange rate on March 31, 2013 ofYen94.05=US$1, and are included solely for the convenience of readers.

9(3) Consolidated Statements of Changes in Net Assets
For the year ended March 31, 2012
(Millions of yen)
Shareholders’ equity
Capital stock Capital surplus
Balance at April 1,2011
Changes of items during
the period
Dividends from surplus

4,480

Retainedearnings

6,074

29,976

Net income

Treasury stock

Total
shareholders’equity(5,795)34,736(1,777)(1,777)

5,926

5,926

Purchase of treasury stock
Disposal of treasury stock
Net changes of items otherthan shareholders’ equity
Total Changes of items
during the period
Balance at March 31, 2012

13

(0)

(0)

139

152

－

13

4,148

138

4,300

4,480

6,087

34,124(5,656)39,036(Millions of yen)

Accumulated other comprehensive income

Balance at April 1,2011
Changes of items during
the period
Dividends from surplus

Valuationdifference on
available-forsale
securities

Deferred
gains orlosses onhedges

33

(374)

Total
Subscription
Foreign
Total netaccumulated rights to Minority
currencyinterest
assetsothersharestranslation comprehensive
adjustment
income

(81)

(422)

28

－

34,341(1,777)

Net income

5,926

Purchase of treasury stock(0)

Disposal of treasury stock
Net changes of items otherthan shareholders’ equity
Total Changes of items
during the period
Balance at March 31, 2012

152
(15)

262

(26)

220

38

－

259

(15)

262

(26)

220

38

－

4,560

18

(111)

(108)

(201)

67

－

38,902

10

For the year ended March 31, 2013

(Millions of yen)
Shareholders’ equity

Capital stock Capital surplus
Balance at April 1,2012
Changes of items during
the period
Dividends from surplus

4,480

Retainedearnings

6,087

34,124

Net income

Treasury stock

Total
shareholders’equity(5,656)39,036(1,945)(1,945)

4,518

4,518

Purchase of treasury stock
Disposal of treasury stock
Net changes of items otherthan shareholders’ equity
Total Changes of items
during the period
Balance at March 31, 2013

(0)

(0)

(0)

149

149

－

(0)

2,572

149

2,721

4,480

6,087

36,697(5,507)41,758(Millions of yen)

Accumulated other comprehensive income

Balance at April 1,2012
Changes of items during
the period
Dividends from surplus

Valuationdifference on
available-forsale
securities

Deferred
gains orlosses onhedges

18

(111)

Total
Subscription
Foreign
Total netaccumulated rights to Minority
currencyinterest
assetsothersharestranslation comprehensive
adjustment
income

(108)

(201)

67

－

38,902(1,945)

Net income

4,518

Purchase of treasury stock(0)

Disposal of treasury stock
Net changes of items otherthan shareholders’ equity
Total Changes of items
during the period
Balance at March 31, 2013

149
0

70

247

318

10

59

388

0

70

247

318

10

59

3,110

19

(41)

139

116

77

59

42,01211

(4) Consolidated Statements of Cash Flows
For the year ended March 31, 2013 and 2012

Net 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 for retirement benefits
Interest and dividends income
Interest expenses
Loss (gain) on valuation of investment securities
Loss (gain) on sales and retirement of noncurrent assets
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
Proceeds from stock issuance to minority shareholders
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 period

The fiscal
year ended
March 31, 2012

The fiscal
year ended
March 31, 2013

The fiscal
year ended
March 31,2013
Thousandsof
U.S.dollars

Millions of yen

Millions of yen

10,810
2,345
171
306
(151)
(20)
37
251
64
(4,574)
5,503
(202)
(37)
131
14,63521(37)(4,097)776
11,297

7,349
2,100
327
368
13
(23)
26
20
97
(2,780)(384)(1,110)
(195)
(799)
5,009
22
(27)
(6,597)
1,172
(419)

78,14622,337
3,481
3,916
138
(250)
284
218
1,033
(29,565)(4,085)(11,811)(2,080)(8,496)53,266242(293)(70,148)
12,469(4,465)90
31(1,504)
4
(169)
(471)
(259)
(2,278)

－
19
(804)
130
(368)
(1,081)39(2,064)－211(8,554)
1,386(3,921)(11,496)425(21,949)(4,949)(1,076)
(53)
(0)
152
－
(1,777)－(7,705)
(36)
1,277
2,250
3,527

5,527
(1,035)
(60)
(0)
149
59
(1,946)
(90)
2,603
494
613
3,527
4,141

58,771(11,009)
(647)
(1)
1,584
630
(20,692)(957)
27,6805,258
6,525
37,51044,035

U.S. dollar amounts represent translations using the approximate exchange rate on March 31, 2013 ofYen94.05=US$1, and are included solely for the convenience of readers.

12(5) Notes on Assumptions for Going Concern
Not applicable(6) Basis of Presenting Consolidated Financial Statements
１．Scope of consolidation(1)Number of consolidated subsidiaries: 19
Major consolidated subsidiaries
Asahi Pretec Corp.
Japan Waste Corporation
Sansho Co., Ltd.
Nihon Chemitech Co., Ltd.
Taiyo Chemical Co., Ltd.
Iyotec Co., Ltd.
Fuji Rozai Co., Ltd.
JW Glass Recycling Co., Ltd.
Ecomax Co., Ltd.
Usuda Manufacturing Co., Ltd.
Kyodo Chemical Co., Ltd.
INTER CENTRAL, INC.
ASAHI G&S Sdn. Bhd.
Shanghai Asahi Pretec Co., Ltd.
Asahi Pretec Korea Co., Ltd.
Asahi Pretec Taiwan Co., Ltd.
Asahi Shih Her Technologies Co., Ltd.
and 2 other companies
INTER CENTRAL, INC. has become consolidated subsidiary on July 2012 by stock acquisition.
Asahi Pretec Taiwan Co., Ltd and Asahi Shih Her Technologies Co., Ltd. have become
consolidated subsidiaries on this accounting period of consolidation due to new establishment.
Sansho Co., Ltd. has changed its corporate name on April 1, 2013 to JW logistics Co., Ltd.
(2) Major unconsolidated subsidiaries
None
2. Equity method affiliate(1)Number of equity method affiliate: 1
Major equity method affiliate
Jiangmen Asahi Pretec Kanfort Environmental Managemant Co., Ltd.
(2)Non equity method affiliate (Asahi・Broadlink,INC.) is not included within the scope of the equity
method because it is insignificant and its net income and retained earning (the amounts equivalent tothe company’s interest in the companies) does not significantly affect consolidated financial statement.
3. Fiscal year of consolidated subsidiaries
Among consolidated subsidiaries, the fiscal year end of ASAHI G&S Sdn. Bhd., Shanghai Asahi Pretec
Co., Ltd., Asahi Pretec Korea Co., Ltd., Asahi Pretec Taiwan Co.,Ltd and Asahi Shih Her Technologies
Co.,Ltd. is December 31 of each year. For the preparation of consolidated financial statements, thecompany uses financial statements as of December 31 and makes adjustments as necessary forconsolidation in relation to significant transactions during their year-end date and the consolidated
year-end date.
4. Accounting policies(1) Valuation standards and methods for major assetsa) Securities
Other securities
1): Other securities for which market quotations are available are stated at fair value prevailingat the balance sheet date with unrealized gains and losses, directly included in net assets. The costof securities sold is determined by the moving-average method.
2): Other securities for which market quotations are not available are valued at cost mainly
determined by the moving-average method.
b) Derivative
Market price methodc) Inventories
Merchandise and finished goods, work in process, raw materials and supplies
Stated at cost. Cost is determined by the weighted-average method (the method of write-downs
based on the decrease in profitability is applied in order to calculate the inventory value on thebalance sheet).
Note: A part of merchandise and finished goods is determined by individual cost method based on
the actual cost method.
(2) Depreciation and amortization for major assets

13a) Property, plant and equipments other than leased assets
The company and domestic consolidated subsidiaries: declining-balance method
Note: Buildings acquired on or after April 1, 1998 other than equipments: straight-line method
Foreign consolidated subsidiaries: straight-line method based of accounting standards of local
country
Useful life of principle assets is as follows:
Property plant and equipments
2 to 50 years
Machinery
2 to 17 yearsb) Intangible assets other than leased assets
The company and domestic consolidated subsidiaries: straight line method
Foreign consolidated subsidiaries: straight-line method based on accounting standards of local
country.
Software for internal use is amortized under the straight-line method over the expected useful
lives.
c) Leased assets
Leased assets related to financial leases that do not transfer ownership rights to the lessees areamortized under the straight-line method based on the lease term as the useful life and residual
value of zero.
(3) Significant allowancesa) Allowances for doubtful accountTo prepare for uncollectible credits and loans, general allowance of the company and domestic
consolidated subsidiaries is recorded based on the actual bad debt ratio, and specific allowance isrecorded based on the amount deemed to the uncollectible considering the collectibility.
As for foreign consolidated subsidiaries, specific credits are based on estimated uncollectableamount.
b) Provision for bonuses
To allow for the payment of bonuses to employees, the company and domestic consolidated
subsidiaries records the standard for estimated amounts of bonuses to be paid.
c) Provision for director’s bonuses
To allow for the payment of bonuses to directors, the company and domestic consolidated
subsidiaries records the standard for estimated amounts of bonuses to be paid.
d) Provision for repairs
To allow our payment of periodic maintenance of production equipments, the company records
the amount of estimated cost to be paid during this fiscal year.
e) Provision for product warranties
To allow for cost of after-sales service, the company records the actual cost of the past to be paid.
(4) Foreign currency transactions
All monetary assets and liabilities denominated in foreign currencies are translated into Japanese yenat the exchange rates prevailing at the balance sheet date. Resulting gains and losses are included in
net profit or loss for the period. All assets and liabilities of foreign subsidiaries and affiliates aretranslated into Japanese yen at the exchange rates prevailing at the balance sheet date. Revenues andexpenses for the year are translated into Japanese yen at the average exchange rate during the year andtranslation adjustments are included in “Foreign currency translation adjustments of “Net assets.”(5) Main hedge accounting methodsa) Hedge accounting methods
The company accounts for hedging activities under deferral hedge accounting. Furiate-shori(accounting method in which the current and forward rate difference is allocated by period length
for the calculation at the accounting period) is applied to forward foreign exchange contracts which
conform to the requirements of such hedge accounting.
b) Hedging instruments and targets
1. Hedging instruments
Derivative transaction
Hedged targets
Precious metal products
2. Hedging instruments
Exchange contract
Hedged targets
Monetary assets and liabilities denominated in foreign currencies
3. Hedging instruments
Currency swap
Interest rate swap
Hedged targets
Foreign currency long-term loanc) Hedge policy
To reduce the precious metal market price risk and to improve income and expenditure balance,
the company hedges price fluctuation risk and exchange rate risk based on internal rules.

14(6) Amortization of goodwill
By judging respective case, goodwill is amortized under the straight-line method within a period of 20
years.
(7) Cash and cash equivalents in the consolidated cash flow statements
Cash and cash equivalents are composed of cash on hand, bank deposits able to be withdrawn on
demand and short-term highly liquid investments with a maturity of three months or less at the time ofpurchase and which bear lower risks from fluctuations in value.
(8) Accounting method for consumption taxes
Consumption taxes are accounted for using the net method of reporting.

(7)Changes in Accounting Policies(Changes in the depreciation method)
In accordance with the amendment of the Corporation Tax Law, effective from the first quarter of fiscal
year 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 for the
fiscal year is minimal.

15

(8) Others[Segment Information]
Information on sales and income (loss), identifiable assets, and other items by reporting segment
For the fiscal year ended March 31, 2012(From April 1, 2011 to March 31, 2012)(Millions of Yen)
Precious metal
recycling business

Environmental
preservationbusiness

136,571

14,522

151,094－－－

136,571

14,522

151,094

Operating income by business segment

9,364

1,852

11,217

Identifiable asset by business segment

38,833

19,48258,315Total

Net sales
1) Customers
2) Intersegment
Total

Other items
Depreciation and amortization

1,397

948

2,345

Amortization of goodwill

11

294

306

Investment to equity-method affiliates

73

－

73

Increase of property, plant andequipment and intangible assets

778

842

1,620

(Note) 1. Total segment income matches operating income recorded on the consolidated statements of income.
2. Increase in depreciation, property and equipment, and intangible assets includes long-term prepaid
expenses and amortization of that related to these expenses.
For the fiscal year ended March 31, 2013(From April 1, 2012 to March 31, 2013)(Millions of Yen)
Precious metal
recycling business

Environmental
preservationbusiness

80,177

16,191Total

Net sales
1) Customers
2) Intersegment

96,368－－－80,177

16,191

96,368Operating income by business segment

5,368

2,127

7,495

Identifiable asset by business segment

41,632

20,62862,260

Total

Other items
Depreciation and amortization

1,230

870

2,100

Amortization of goodwill

15

352

368

Investment to equity-method affiliates

82

－

82

Increase in property, plant andequipment and intangible assets

770

488

1,258

(Note) 1. Total segment income matches operating income recorded on the consolidated statements of income.
2. Increase in depreciation, property and equipment, and intangible assets includes long-term prepaid
expenses and amortization of that related to these expenses.

16[Per Share Information]
Year ended March 31, 2012

Year ended March 31,2013

Net assets per share (Yen)

1,198.77

1,288.56

Net income per share (Yen)

183.20139.24Not given as the company has Not given as the company has
Diluted net income per share (Yen)nopotential

stockswith nodilution effectpotential

stockswithdilution effectNote: The following shows the basis of calculating net income per share

Year ended March 31, 2012

Year ended March 31,2013

Net income per share
Net income for the fiscal year (Millions of yen)
Monetary value not related to common
stockholders (Millions of yen)
Net income related to common stock(Millions of yen)

5,926

4,518

－

－

5,926

4,518

32,34932,448

Number of weighted average common shares
outstanding during the fiscal year
(Thousands of shares)
Overview of potential stock not included in
calculation of diluted net income

2010 Stock Option（common 2010 Stock Option（common
stock 202,000 shares）
stock 202,000 shares）

per share because the stock have no dilution
effectWe regard the stock, owned by “Asahi employee stock ownership trustee” (340,900 shares for the previous fiscal
year end and 238,700 shares for this fiscal year end) as treasury stock. Therefore, we deduct the number of thestock in order to calculate “Number of weighted average common shares” of this and previous fiscal year.

[Significant Subsequent Events]
Not applicable17

５．Others(1)Changes of Directors①Change of the representative
Not applicable②Other changes of directors
Candidate for new directors: Keitaro Shigemasa (Current position: Corporate Officer General Manager,
Corporate Planning & Communications, Information System)③Date of inauguration
June 18, 2013

(2)Amounts of Production, Orders Received, Sales（Amount: millions of yen）

①Production
Year ended
March 31,2012
AmountYear ended
March 31,2013

Year-on-Year

AmountYear-on-YearGold

58,196148.2%

46,94080.7%

Silver17,988157.5%

14,77482.1%

Palladium

9,470

108.6%

8,909

94.1%

Platinum

10,648104.9%

6,611

62.1%

Indium

9,865

86.6%

3,899

39.5%

Industrial waste treatment

15,902103.2%

18,073113.6%

Total

122,073

126.7%

99,20881.3%(Notes) Amount is provided on the basis of their sales prices.
②Orders received
As we do production according to the amount of the collection, there is no applicable information.
(Amount: millions of yen）

③SalesYear ended
March 31,2012
AmountYear ended
March 31,2013

Year-on-Year

AmountYear-on-YearGold

63,167163.8%

34,854

55.2%

Silver

18,582194.4%

14,41877.6%

Palladium

13,382134.0%

10,112

75.6%

Platinum

16,945105.2%

7,614

44.9%

Indium

9,045

86.8%

309

3.4%

Industrial waste treatment

15,902103.2%

18,073113.6%

Other

14,069134.5%

10,986

78.1%

Total

151,094136.7%

96,36863.8%

18