Consolidated Financial Results for the First Quarter Ended June 30, 2022
Asahi Holdings, Inc. [IFRS]July 28, 2022

Stock code:
Shares listed:

5857
Tokyo Stock Exchange - Prime Market

URL:
Representative:

https://www.asahiholdings.com
Tomoya Higashiura, Representative Director, President & CEO

For further information please contact:

Kunihiko Chogo, General Manager, Corporate Planning &Communications Department

Filing date of Quarterly Report:(Phone) +81–3–6270–1833
August 9, 2022

Start of dividend payment:
Supplementary materials for the financial results:–
Yes

Investor conference for the financial results:

No(Rounded down to the nearest million yen)
1. Results of the three months ended June 30, 2022 (From April 1, 2022 to June 30, 2022)(1) Results of operations (cumulative)(Percentage: Changes relative to corresponding previous period)
OperatingprofitRevenue
The three months ended
June 30, 2022
June 30, 2021

Millions of yen

59,74950,424%

Millions of yen

18.5 5,691
28.6 6,933

Profit before
tax%

Millions of yen(17.9) 6,108
31.9 6,831% Millions of yen(10.6) 4,268
28.6 4,842%

Millions of yen(11.9) 4,268
33.3 4,842

Basic earnings per share

Diluted earnings per share

Yen
54.27
61.53

Yen
49.11
55.12

The three months ended
June 30, 2022
June 30, 2021

Profitattributable toowners of parent

Profit%Total
comprehensive
incomeMillions of yen(11.9) 8,977
33.3 7,137(2) Financial Position

As ofJune 30, 2022
March 31, 2022

Total assets

Total equity

Equity attributable toowners of parent

Equity attributable toowners of parent ratio

Millions of yen
287,063
298,387

Millions of yen
110,615
105,137

Millions of yen
110,615
105,137

38.5
35.2

%

2. Dividend payments
Dividends per share

Year ended March 31, 2022
Year ending March 31, 2023
Year ending March 31, 2023
(Forecast)First quarter

Second quarter

Third quarter

Year-end

Annual

Yen

Yen

Yen

Yen

Yen

–
–

45.00

–

45.00

90.00

45.00

–

45.00

90.00

(Note) Revisions in dividend forecast in the current quarter: No

%

25.8
34.0

3. Forecast (From April 1, 2022 to March 31, 2023)
Revenue
Millions of yen

Six months ending
100,000
September 30, 2022
Year ending March 31, 2023 200,000(Percentage: Changes relative to corresponding previous period)
ProfitOperating
Profit before
Basic earnings
attributable toprofittax
per shareowners of parent% Millions of yen% Millions of yen% Millions of yen

%

Yen

3.2

12,000(12.4) 11,700(14.2)

8,000(17.1)

101.733.9

24,000(9.3) 23,500(10.9) 16,000(14.6)

203.45(Note) Revisions in forecast in the current quarter: No* Notes(1)
Changes in significant subsidiaries during the period: No(2)

Changes in accounting policies and accounting estimates(i) Changes in accounting policies required by IFRS: No(ii) Changes other than (i) above: No(iii) Changes in accounting estimates: No(3)

Number of issued shares (common stock)(i) Number of issued shares at the quarter end (including treasury stock)
As of June 30, 2022

79,708,688 shares

As of March 31, 2022

79,708,688 shares(ii) Number of treasury stock at the quarter end
As of June 30, 2022

1,065,437 shares

As of March 31, 2022

1,065,437 shares(iii) Averaged number of shares during the period (quarterly cumulative period)
Three months ended June 30, 2022

78,643,251 shares

Three months ended June 30, 2021

78,696,914 shares* The quarterly financial statements are not subject to quarterly reviews by accounting auditors.
* Statement regarding the proper use of financial forecasts and other special remarks(Notes on forward looking statements, etc.)
These forecast performance figures are based on the information currently available to the Company’s
management and certain assumptions judged rational. Accordingly, there might be cases in which actual resultsmaterially differ from forecasts of this report. Please refer to page 3 “1. Qualitative Information (3) Consolidated
Performance Forecasts” for the assumptions used and other notes.

【Appendix】

Table of contents of the appendix

1. Qualitative Information .................................................................................................................................................. 2(1) Consolidated Business Performance ......................................................................................................................... 2(2) Consolidated Financial Position and Cash Flows for the Three Months Ended June 30, 2022 ............................. 2(3) Consolidated Performance Forecasts......................................................................................................................... 3
2. Condensed Consolidated Financial Statements ............................................................................................................ 4(1) Condensed Consolidated Statements of Financial Position ..................................................................................... 4(2) Condensed Consolidated Statements of Income for the Three Months Ended June 30, 2022................................ 6(3) Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended June 30, 2022 ..... 7(4) Condensed Consolidated Statements of Changes in Equity..................................................................................... 8(5) Condensed Consolidated Statements of Cash Flows .............................................................................................. 10(6) Notes on Assumptions for Going Concern ............................................................................................................... 11(7) Notes on Condensed Consolidated Financial Statements ...................................................................................... 11
1. Reporting entity ..................................................................................................................................................... 11
2. Basis of preparation ............................................................................................................................................... 11
3. Significant accounting policies .............................................................................................................................. 11
4. Significant accounting estimates and associated judgements ............................................................................. 11
5. Segment information ............................................................................................................................................. 11
6. Subsequent events ................................................................................................................................................. 13－ 1 －1. Qualitative Information(1) Consolidated Business Performance
The Japanese economy generally showed signs of recovery during the current consolidated cumulative firstquarter. On the other hand, there is increasing uncertainty about the future of corporate activities due tosoaring prices of fuel and raw materials, together with sharp fluctuations in currency exchange rates from theimpact of the prolonged situation in Ukraine and suppressed economic activity in China. Under these
conditions, the Group’s results in each business segment were as follows.
Precious Metals businessIn the precious metals recycling business, although the volume of precious metals collected and sales
increased, a temporary cost incurred from the launch of a large-scale new factory in April this year resulted inincrease in revenue and decrease in profit from the same period of the previous fiscal year. In the precious
metals refining business in North America, processing and sales volume of products utilizing metals werestrong against the backdrop of stable arrival of raw materials.
Environmental Preservation businessIn line with the recovery in the domestic industrial production activities, the volume of industrial waste
handled by the Group increased. As a result, revenue and operating profit in this segment increased from thesame period of the previous fiscal year.
As a result of the above, revenue during the three months ended June 30, 2022 was 59,749 million yen, a
year-on-year increase of 9,324 million yen (+18.5 percent). Operating profit was 5,691 million yen, a year-onyear decrease of 1,241 million yen (-17.9 percent). Profit before tax was 6,108 million yen, a year-on-year
decrease of 722 million yen (-10.6 percent). Profit was 4,268 million yen, a year-on-year decrease of 574 million
yen (-11.9 percent). Profit attributable to owners of parent for the period was therefore 4,268 million yen, adecrease of 574 million yen (-11.9 percent) year-on-year. By segment, revenue in the Precious Metals business
was 55,304 million yen, a year-on-year increase of 9,031 million yen (+19.5 percent). In the Environmental
Preservation business, revenue was 4,444 million yen, a year-on-year increase of 293 million yen (+7.1
percent).

(2) Consolidated Financial Position and Cash Flows for the Three Months Ended June 30, 2022
As of June 30, 2022, total assets amounted to 287,063 million yen, down 11,324 million yen from theprevious fiscal year end. This was mainly due to an increase of 3,440 million yen in cash and cash equivalents,
an increase of 7,378 million yen in inventories and an increase of 4,178 million yen in other current assets,
while trade and other receivables decreased by 26,058 million yen.
Total liabilities amounted to 176,447 million yen, down 16,802 million yen from the previous fiscal year end.
This was due mainly to a decrease of 3,625 million yen in trade and other payables, a decrease of 8,000 million
yen in bonds and loans payable and a decrease of 3,058 million yen in other current liabilities.
Total equity amounted to 110,615 million yen, up 5,477 million yen from the previous fiscal year end. Thiswas due mainly to an increase of 8,977 million yen in comprehensive income and a decrease of 3,538 million
yen used for dividends.
As a result, the equity attributable to owners of parent ratio changed to 38.5%, from 35.2% at the end of theprevious fiscal year.
Net cash used in operating activities amounted to 1,353 million yen due mainly to 6,108 million yen of profit
before tax, 801 million yen of depreciation and amortization, 7,419 million yen of increase in inventories,
36,232 million yen of decrease in trade and other receivables, 30,416 million yen of decrease in trade andother payables, 4,010 million yen of income taxes paid.
Net cash provided by investing activities amounted to 659 million yen due mainly to 1,598 million yen ofpurchase of property, plant and equipment and 1,371 million yen of proceeds from sales of shares ofsubsidiaries.
Net cash provided by financial activities amounted to 4,183 million yen due mainly to 7,793 million yen of
net increase in short-term loans payable and 3,527 million yen of cash dividends paid.
As a result, cash and cash equivalents as of June 30, 2022 increased 3,440 million yen from March 31, 2022,
to 9,568 million yen.

－ 2 －(3) Consolidated Performance Forecasts
No changes have been made to the forecasts going forward as they are in line with the financial forecast for
the fiscal year ending March 31, 2023 announced in the “Consolidated Financial Results for the Fiscal Year
Ended March 31, 2022” made public on April 27, 2022.

－ 3 －2. Condensed Consolidated Financial Statements(1) Condensed Consolidated Statements of Financial Position
As ofMarch 31,
2022

As of
June 30,
2022

Millions of yen

Millions of yen

ASSETS
Current assets
Cash and cash equivalents

6,127

9,568

Trade and other receivables
Inventories

151,437
63,398125,378
70,776

Income tax receivables
Other financial assets

3,958
129

3,342
2,295

Other current assets

16,727

20,905

Total current assets

241,778

232,266

43,74843,533

Goodwill
Intangible assets

1,040
712

1,003
796

Investments accounted for using equity method
Deferred tax assets

3,657
6,262

3,541
4,995

229
859

194
657

Non-current assets
Property, plant and equipment

Net defined benefit asset
Financial assets
Other non-current assets

98

74

Total non-current assets

56,60954,796298,387

287,063

Total assets－ 4 －As ofMarch 31,
2022

As of
June 30,
2022

Millions of yen

Millions of yen

LIABILITIES and EQUITY
Liabilities
Current liabilities
Trade and other payables
Loans payable

27,711
108,263

24,086
96,467

Income tax payable
Other financial liabilities

950
5,613

429
3,270

Provisions
Other current liabilities

1,608
4,479

996
1,421

Total current liabilities

148,626

126,671

Non-current liabilities
Bonds and loans payable

42,66346,458Deferred tax liabilities
Net defined benefit liability

576
93

1,417
102

Other financial liabilities
Other non-current liabilities

1,289
–

1,782
14

Total non-current liabilities

44,62349,776

Total liabilities
Equity193,250

176,447

Capital stock
Capital surplus

7,790
11,955

7,790
11,994

Treasury stock
Retained earnings(1,819)92,353(1,819)93,040

Other components of equity(5,142)(390)

Total equity attributable to owners of parent

105,137

110,615

Total equity

105,137

110,615

298,387

287,063

Total liabilities and equity－ 5 －(2) Condensed Consolidated Statements of Income for the Three Months Ended June 30, 2022
The three months
ended June 30, 2021

The three months
ended June 30, 2022

Millions of yen

Millions of yen

Revenue
Cost of sales

50,424(41,708)

59,749(52,385)

Gross profit

8,715

7,363

Selling, general and administrative expenses
Other operating income(1,809)21(1,707)
39

(18)

(31)

22

27

Operating profit

6,933

5,691

Finance income
Finance costs

77
(274)

636
(644)

94

425

Profit before tax
Income tax expenses

6,831(1,988)6,108(1,840)

Profit

4,842

4,268

Profit attributable to:
Owners of parent

4,842

4,268

Other operating expenses
Share of profit (loss) of investments accounted forusing equity method

Other non-operating income

Non-controlling interests
Profit

–

–

4,842

4,268

61.53
55.12

54.27
49.11

Earnings per share
Basic earnings per share (Yen)
Diluted earnings per share (Yen)－ 6 －(3) Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended
June 30, 2022
The three months
ended June 30, 2021

The three months
ended June 30, 2022

Millions of yen

Millions of yen

Profit

4,842

4,268

(0)

(0)

31

(41)

(2)

0

28

(42)

2,126

3,224

139

1,526

2,266

4,751

2,295

4,709

Comprehensive income

7,137

8,977

Comprehensive income attributable to:
Owners of parent

7,137

8,977

Other comprehensive income
Items that will not be reclassified to profit or loss
Financial assets measured at fair value
through other comprehensive income
Remeasurements of defined benefit plans
Share of other comprehensive income ofinvestments accounted for using equity method
Total items that will not be reclassified to profit
or loss
Items that may be reclassified to profit or loss
Cash flow hedges
Translation adjustments of foreign operations
Total items that may be reclassified to profit orloss
Other comprehensive income, net of tax

Non-controlling interests
Comprehensive income

－ 7 －

–

–

7,137

8,977

(4) Condensed Consolidated Statements of Changes in Equity(Millions of yen)
Equity attributable to owners of parent
Other components ofequityCapitalTreasury
Retained
Translation
surplusstockearnings
adjustments
Cash flowof foreign
hedgesCapitalstock

operations

Balance at April 1, 2021
ProfitOther comprehensive
incomeTotal comprehensive
incomeDividends
Reclassified from othercomponents of equity toretained earnings
Share-based paymenttransactions
Total transactions withownersBalance at June 30, 2021

7,790
–

11,952–(957)–

80,604
4,842(2,944)
–

1,454
–

–

–

–

–

139

2,126

–

–

–

4,842

139

2,126

–

–

–

(3,541)

–

–

–

–

–

31

–

–

–

–

–

–

289

–

–

289

–

(3,509)

–

–

7,790

12,241(957)

81,936(2,804)

3,580(Millions of yen)
Equity attributable to owners of parent
Other components of equity
Financial
Remeasureassets
measured atments offair value
definedthrough otherbenefitcomprehenplans
sive income

Balance at April 1, 2021
ProfitOther comprehensive
incomeTotal comprehensive
incomeDividends
Reclassified from othercomponents of equity toretained earnings
Share-based paymenttransactions
Total transactions withownersBalance at June 30, 2021

Total

Total

Total equity

3
–

–
–

(1,486)–

97,903
4,842

97,903
4,842

(2)

31

2,295

2,295

2,295

(2)

31

2,295

7,137

7,137

–

–

–

(3,541)(3,541)

–

(31)

(31)

–

–

–

–

–

289

289

–

(31)

(31)

(3,252)(3,252)

0–776

101,789

101,789－ 8 －(Millions of yen)
Equity attributable to owners of parent
Other components ofequityCapitalTreasury
Retained
Translation
surplusstockearnings
adjustments
Cash flowof foreign
hedgesCapitalstock

operations

Balance at April 1, 2022
ProfitOther comprehensive
incomeTotal comprehensive
incomeDividends
Changes due to loss ofcontrol of subsidiaries
Reclassified from othercomponents of equity toretained earnings
Share-based paymenttransactions
Total transactions withownersBalance at June 30, 2022

7,790
–

11,955–(1,819)–92,353
4,268(1,390)–(3,748)
–

–

–

–

–

1,526

3,224

–

–

–

4,268

1,526

3,224

–

–

–

(3,538)

–

–

–

–

–

–

–

–

–

–

–

(41)

–

–

–

38

–

–

–

–

–

38

–

(3,580)

–

–

7,790

11,994(1,819)93,040136(523)(Millions of yen)
Equity attributable to owners of parent
Other components of equity
Financial
Remeasureassets
measured atments offair value
definedthrough otherbenefitcomprehenplans
sive income

Balance at April 1, 2022
ProfitOther comprehensive
incomeTotal comprehensive
incomeDividends
Changes due to loss ofcontrol of subsidiaries
Reclassified from othercomponents of equity toretained earnings
Share-based paymenttransactions
Total transactions withownersBalance at June 30, 2022

Total

Total

Total equity

(3)
–

–
–

(5,142)–

105,137
4,268

105,137
4,268

(0)

(41)

4,709

4,709

4,709

(0)

(41)

4,709

8,977

8,977

–

–

–

(3,538)(3,538)

0

–

0

0

0

–

41

41

–

–

–

–

–

38

38

0

41

42

(3,499)(3,499)

(3)

–

(390)

110,615

110,615－ 9 －(5) Condensed Consolidated Statements of Cash FlowsThe three months
ended June 30,
2021

The three months
ended June 30,
2022

Millions of yen

Millions of yen

Profit before tax
Depreciation and amortization

6,831
654

6,108
801

Impairment loss
Finance income and finance cost

–
293

0
1,595

Other non-operating income and expenses
Share of loss (profit) of investments accounted for using equity

(94)

(425)

(22)

(27)

(847)

(7,419)(19,154)
10,42536,232(30,416)

Other, net

3,205(4,104)

Subtotal

1,291

2,344

90
(32)

163
(37)

Income taxes paid
Income taxes refunded(7,255)
2,693(4,010)186

Net cash provided by (used in) operating activities

Cash provided by (used in) operating activities

methodDecrease (increase) in inventories
Decrease (increase) in trade and other receivables
Increase (decrease) in trade, loans and other payables

Interest and dividend income received
Interest expenses paid

(3,212)(1,353)

Cash provided by (used in) investing activities
Payments into time deposits

(95)

(98)

Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment

95(1,754)49(1,598)Proceeds from sales of property, plant and equipment
Purchase of intangible assets

4
(124)

11
(185)

Proceeds from sales of shares of subsidiaries
Other, net

–
(42)

1,371
1,109

Net cash provided by (used in) investing activities
Cash provided by (used in) financing activities(1,916)659

Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable(2,872)
12,783

7,793–

Cash dividends paid
Other, net(3,522)(79)(3,527)
(82)

6,308
(238)

4,183
(48)

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

941

3,440

Cash and cash equivalents at beginning of period

10,023

6,127

Cash and cash equivalents at end of period

10,964

9,568－ 10 －

(6) Notes on Assumptions for Going Concern
Not applicable(7) Notes on Condensed Consolidated Financial Statements
1. Reporting entity
Asahi Holdings, Inc. (hereinafter the “Company”) is a company located in Japan. The Company’s condensed
consolidated financial statements for the three months ended June 30, 2022 comprise the Company and its
subsidiaries (hereinafter the “Group”) as well as the interests in its affiliated companies.
For the main activities of the Group, please refer to Note “5. Segment information.”

2. Basis of preparation(1) Statement of compliance with IFRSThe condensed consolidated financial statements of the Group have been prepared based on IAS 34“Interim Financial Reporting.”
Having met the requirements for a Specified Company Complying with Designated International
Accounting Standards, as prescribed in Article 1-2 of the Regulation on the Terminology, Forms, andPreparation Methods of Quarterly Consolidated Financial Statements (Cabinet Office Order No. 64 of
2007), the Group adopts the provisions of Article 93 of the aforementioned rules.
(2) Basis of measurement
The condensed consolidated financial statements of the Group have been prepared based on costs ofacquisition, except for the specified financial instruments that have been measured at fair value.
(3) Functional currency and presentation currency
The condensed consolidated financial statements of the Group are presented in Japanese yen, which isthe functional currency of the Company, and figures less than one million yen are rounded down to thenearest million yen.

3. Significant accounting policies
The significant accounting policies adopted for the condensed consolidated financial statements for thethree months ended June 30, 2022 are the same as those for the consolidated financial statements for the
fiscal year ended March 31, 2022.
The income tax for the three months ended June 30, 2022 was calculated based on the estimated averageannual effective tax rate.

4. Significant accounting estimates and associated judgements
In preparing condensed consolidated financial statements, the management is required to make judgement,
estimates and assumptions that affect the adoption of accounting policies and the amounts of assets, liabilities,
revenues and expenses. Actual results may differ from such estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. The effect of a change inaccounting estimates is recognized in the accounting period in which such change occurs as well as theaccounting periods to be affected in the future.
The judgement, estimates and assumptions made by the management that may have material impacts on
the figures in the condensed consolidated financial statements are the same as those for the consolidated
financial statements for the fiscal year ended March 31, 2022.

5. Segment information(1) Overview of reporting segments
The Group’s business segments are those Group constituent units for which separate financial
information is obtainable, and which the Board of Directors subjects to regular examination in order todecide the allocation of management resources and evaluate business results.
As a pure holding company, the Company is in charge of overall strategic function for the Group,
whereas operating companies of the Group engage in the precious and rare metals recycling business andthe refining and processing business, industrial waste management and other environmental－ 11 －

preservation business.
Therefore, the Group is composed of product and service segments based on business sectors. The tworeporting segments are the Precious Metals business and the Environmental Preservation business.
Meanwhile, these reporting segments are not aggregated.
The Precious Metals business engages mainly in recycling and selling precious and rare metals such as
gold, silver, palladium, and platinum from scrap containing precious metals, as well as refining andprocessing of precious metals centered on gold and silver.
The main work of the Environmental Preservation business is the collection, transport andintermediate processing of industrial waste.
(2) Segment revenue and performance
Accounting policies of the reporting segments are the same as those of the Group stated in Note “3.
Significant accounting policies.”
Revenue and other performance of each reporting segment of the Group are as follows.
For the three months ended June 30, 2021 (from April 1, 2021 to June 30, 2021)
Reporting segment(Millions of yen)

Precious
MetalsBusiness

Environmental
Preservation
Business

Subtotal

46,273

4,151

50,424

–

–

–

–

Total

46,273

4,151

Operating profit
by business

7,166

662

Revenue
External
revenue
Intersegment
revenue

Other

Total

Adjustments

Consolidated

50,424–50,424––––50,424–50,424–50,424

7,829

22

7,852

(919)

6,933

segment
Finance income
Finance costs

77
(274)

Other nonoperating income

94

Profit before tax

6,831(Note)

Adjustments of operating profit by business segment are mainly corporate expenses that are notallocated to each reporting segment.

－ 12 －

For the three months ended June 30, 2022 (from April 1, 2022 to June 30, 2022)
Reporting segment(Millions of yen)

Precious
MetalsBusiness

Environmental
Preservation
Business

Subtotal

55,3044,444

59,749––––55,304

4,444

5,551

934

Other

Total

Adjustments

Consolidated

59,749–59,749––––59,749–59,749–59,749

6,485

(2)

6,483

(791)

5,691

Revenue
External
revenue
Intersegment
revenue
Total
Operating profit
by businesssegment
Finance income

636

Finance costs
Other non-

(644)
425

operating income
Profit before tax(Note)

6,108

Adjustments of operating profit by business segment are mainly corporate expenses that are notallocated to each reporting segment.

6. Subsequent events
Not applicable－ 13 －