FinancialResults
2019年3⽉期
for
決算説明資料1H FY2019(April 1, 2019 ~ September 30, 2019)(2018年4⽉〜2019年3⽉)

Asahi Holdings, Inc.
These forecast performance figures are based on the information currently available to the company’s management and certain
assumptions judged rational. Accordingly, these might be cases in which actual results materially differ from forecasts of this report.
Copyright © Asahi Holdings, Inc. All rights reserved.

1

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

FY20181H

FY20191H

Forecastfor FY2019

ChangeRevenue

60.4

70.2

+9.8135.0

Operating income

6.9

8.5+1.6

19.0

Operating income
ratio

11.4%

12.1%

-14.1%

Profit before tax

6.5

7.2+0.7

16.8

Profit attributable toowners of parent

4.5

4.5(0.0)

10.2

CAPEX

1.1

1.4

+0.4

4.8

Depreciation
expense

1.2

1.4

+0.3

2.4

Copyright © Asahi Holdings, Inc. All rights reserved.

Consolidated Performance

Operatingincome

Profit before tax

Dividend

 8.5 billion yen︓YoY increase of 1.6 billion yen
By segment（YoY）• Precious Metals: +0.7 billion yen• Environmental Preservation: +0.3 billion yen• Life & Health: +0.4 billion yen• Others: +0.2 billion yen
 Revised the Plan of FY2019
Operating income have been revised upward from 14.5 billion yen
to 19.0 billion yen. It will have reached a record high result for threeconsecutive fiscal years.

 7.2 billion yen- YoY increase of 0.7 billion yen

 Dividend policy: Approximately 50% or more of the Consolidated
Net Income- Annual dividend forecast: 120 yen per share
Copyright © Asahi Holdings, Inc. All rights reserved.

2Transfer of shares of Fuji Medical Instruments Mfg.
 Transfer 60% of all the shares of Fuji Medical Instruments Mfg. Co., Ltd. toJohnson Health Tech Co., Ltd.
 Accelerate brand recognition of Fuji in the global market by collaboration withJohnson Health Tech, which is one of the largest companies in fitness equipment,
and further enhance Fuji’s corporate value with the goal of initial public
offering in several years.
■Schedule
October 29th 2019:
Early December 2019:
Early February 2020:

Conclusion of a basic agreement
Conclusion of a share transfer agreement (scheduled)
Share transfer (scheduled)※Fuji will be classified as discontinued operations from the third quarter of FY2019, and is expected to be excluded fromthe list of consolidated subsidiaries from the fourth quarter of FY2019 due to loss of control.

Johnson Health Tech. Co., Ltd.


Established in 1975, manufacture and sales of fitness equipment, etc.
With 30 subsidiaries and over 300 directly managed stores around the world.
Headquartered in Taichung, Taiwan. Its stock is listed on the Taiwan Stock Exchange.

Copyright © Asahi Holdings, Inc. All rights reserved.

Segment Change Will change the segments from 2H of FY 2019, as Fuji will be classified as discontinuedoperations.
 Will discontinue Life & Health segment, mainly formed by Fuji, and consolidate threesegments into two.
 Concentrate management resources in the Precious Metals business and Environmental
Preservation business in order to further enhance corporate value.
Up to 1H of FY 2019

From 2H of FY 2019

Precious Metals

AH

Precious Metals

Environmental
Preservation

AH
Environmental
Preservation

Life & Health

INTER CENTRAL, INC., which comprises the Life & Health segment, will be transferred toEnvironmental Preservation as it contributes to the realization of a society conserving energy
through the development and installation of air-conditioning equipment.
Copyright © Asahi Holdings, Inc. All rights reserved.

3

Revision of Financial Forecast
 Revised FY2019 Forecast as prices and collection volume of precious metals in Precious
Metals segment are better than anticipated.
 Operating income, profit before tax and profit attributable to owners of parent are all
projected to be record high.

＜FY2019 Forecast＞(JPY in billion)

BeforerevisionAfterrevision

ChangeChange ratio

Ref.
Effect of Fuji
(Estimated）

Revenue

140.0

135.0

(5.0)

(3.6%)(20.0)

Operating income

14.5

19.0+4.5+31.0%(0.9)

Op. income ratio

10.4%

14.1%

+3.7%

--

Profit before tax

14.3

16.8+2.5+17.5%(0.9)

Profit attributable toowners of parent

9.4

10.2

+0.8

+8.5%

(1.4)

FY2019 Forecast after revision include the effect by excluding Fuji from the list ofconsolidated subsidiaries.
Copyright © Asahi Holdings, Inc. All rights reserved.

Revision of Financial Forecast
 Revenue will increase by 6.3 billion yen year-on-year, and operating income will increaseby 4.5 billion yen year-on-year.

＜FY2018 Actual vs FY2019 Forecast after revision＞
FY2018ActualFY2019
Forecast afterrevision(JPY in billion)

Ref.

ChangeChange ratio Impact amount ofFuji (Estimated）

Revenue

128.7

135.0

+6.3+4.9%(20.0)

Operating income

14.5

19.0+4.5+31.2%(0.9)

Op. income ratio

11.3%

14.1%

+2.8%

--

Profit before tax

13.4

16.8

+3.4

+25.3%(0.9)

Profit attributable toowners of parent

9.0

10.2

+1.2

+13.3%(1.4)

Copyright © Asahi Holdings, Inc. All rights reserved.

4

Segment Results （1H Actual Year on Year）（JPY in billion）

FY2018 1H
ActualPreciousMetals

Environmental
Preservation

Life& Health

FY2019 1H
ActualChangeRevenue

42.4

49.9+7.5

Operating income

6.5

7.2+0.7

Revenue

8.0

9.0+1.1

Operating income

1.4

1.7+0.3

Revenue

10.0

11.2+1.2

Operating income

0.3

0.7+0.4

Revenue

60.4

70.2+9.8

Operating income

6.9

8.5+1.6

Consolidated

Copyright © Asahi Holdings, Inc. All rights reserved.

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

FY2018ActualPreciousMetals

Environmental
Preservation

Life& Health

FY2019ForecastChange

Revenue

87.8

113.0

+25.2

Operating income

12.0

17.2+5.2

Revenue

17.2※ 21.0+3.8

Operating income

3.5※ 4.0+0.5

Revenue

23.7-(23.7)

Operating income

1.5-(1.5)

Revenue

128.7

135.0

6.3

Operating income

14.5

19.0+4.5

Consolidated※Including the effect of business transferred from Life & Health business.
Copyright © Asahi Holdings, Inc. All rights reserved.

5

Segment Results (Precious Metals)
 1H: Revenue and operating income increased year-on-year as the both precious metal recycling
business in Japan, South Korea and Malaysia and refining business in North America grew steadily.
 Full year: Revenue and operating income will significantly increase backed by collection volume
exceeding the forecast at the beginning of the period and rising prices of precious metals.

Actual

FY2018 1H

FY2019 1H

Revenue

42.4

49.9

6.5

7.2

Operatingincome
Operatingincome ratio[Revenue](JPY in billion)
+7.5

50.0
40.0
30.0
20.0
10.0

15.3%

14.5%

0.0

FY2018 1H

FY2019 1H[Operating income]Plan

FY2018 Actual

FY2019 Forecast

Revenue

87.8

113.0

Operating income

12.0

17.2

Operating incomeratio

13.7%

15.2%

+0.7

8.0
7.0
6.0
5.0
4.0
3.0
2.0
1.00.0FY2018 1H

FY2019 1H

Copyright © Asahi Holdings, Inc. All rights reserved.

Segment Results (Environmental Preservation)
 1H: Revenue and operating income increased from the same period in the previous year thanks to theefforts to develop new customers based on collaboration among group companies.
 Full year: Revenue and operating income will increase even after excluding the effect of business
transferred from Life & Health segment.

ActualRevenue
OperatingincomeOperatingincome ratio

FY2018 1H

FY2019 1H

8.0

9.0

1.41.7[Revenue](JPY in billion)
+ 1.1

10.0
8.0
6.0
4.0
2.0

18.1%

19.0%

0.0

FY2018 1H

FY2019 1H[Operating income]
2.0

Plan

FY2018 Actual

FY2019 ForecastRevenue17.2

※

21.0

Operating income

3.5

※

4.0

Operating income
ratio

20.5%

19.0%

※Including the effect of business transferred from Life & Health business.
6+0.3

1.5
1.0
0.5
0.0

FY2018 1H

FY2019 1H

Copyright © Asahi Holdings, Inc. All rights reserved.

Segment Results (Life & Health) 1H: Revenue and operating income increased as air conditioning and health care equipment businessmarked a steady performance overall.
 Full year: Will discontinue this segment in the fourth quarter of FY2019.

Actual

FY2018 1H

FY2019 1H

10.0Revenue[Revenue]

11.2(JPY in billion)
+1.2

12.0
10.0
8.0

Operatingincome
Operatingincome ratio

0.3

0.7

2.5%

6.2%

6.0
4.0
2.0
0.0

FY2018 1H

FY2019 1H[Operating income]
0.8Plan

FY2018 Actual

FY2019 Forecast

Revenue

23.7-

Operating income

1.5-

6.4%

-

Operating income
ratio

+0.4

0.60.40.20.0FY2018 1H

FY2019 1H

Copyright © Asahi Holdings, Inc. All rights reserved.

<Ref.> Statement of Financial Position
 Increased current assets and current liabilities due to expansion of the financial services inNorth America.
(JPY in billion)

Ended
March 31,2019

Ended
September
30, 2019

ChangeTotal assets

160.3

210.0

+49.7

Current
assets

113.8

161.2

+47.5

Non-current
assets

46.5

48.7

+2.2

Total liabilities

92.5

140.9

+48.5

Current
liabilities

89.7

136.4

＋46.7

Non-current
liabilities

2.8

4.6

+1.8

Total equity

67.8

69.0

+1.2

Category

Main reasons of the changeTrade and otherreceivables +46.4

Impact of the financial
services in NA, and changeof financing instrument

Short-term loans
payable ＋46.9

Impact of the financial
services in NA, and changeof financing instrument※Long-term loans payable included in non-current liabilities as of the end of March 2019 is transferred to current liabilities for a comparison purpose.

Copyright © Asahi Holdings, Inc. All rights reserved.

7

<Ref.> Statements of Cash Flows Net cash provided by (used in) operating activities is negative due to expansion of thefinancial services in North America.
(JPY in billion)

Category

Statement of cash flows

Operatingactivities(cf.)
FY2018 1H

7.2

6.5

Depreciation andamortization

1.4

1.2

(47.7)

Impact of the financial services in NA andchange of financing instrument

(2.4)

(8.6)

(0.2)

(47.6)

5.0

(1.4)

(1.2)

Other, net

0.2

0.1

Subtotal

(1.1)

(1.1)

Net increase (decrease) inshort-term loans payable

48.0

Other, net

(2.6)

(2.1)

Subtotal

45.4

(2.1)

12.8

26.1

Other, net
subtotal

Purchase of property,
plant and equipmentfinancing
activities

Main reasons of the change

Profit before tax

Decrease (increase) in tradeand other receivables

Investment
activities

FY20191H

Cash and cash
equivalents

Impact of the financial services in NA andchange of financing instrument0

Copyright © Asahi Holdings, Inc. All rights reserved.

<Ref.> Advance Trading in North America
Advance Trading: Some clients of refining business in North America (mainly mining companies) desire prompt
return of gold, while it generally takes approx. one week to return after receipt of dore (raw material). In order tomeet such demands, we conduct the trade that the clients can promptly receive the gold in exchange for interest
payment based on the term shortened. The risk of becoming bad debts is very limited as we basically return thegold only after receiving dore.
■Flow diagram: Receipt of dore〜Prompt return〜Repayment

Clients

AsahiBanks①Receipt of dore

③Prompt return②Loan from bankor gold loan

④Fabrication⑤Repayment orreturn of gold

① Receipt of dore
Receive dore (raw material) from clients(mining companies).
②・③ Loan・Prompt return
Procure gold by loan from banks andreturn the gold promptly.
④・⑤ Fabrication・Repayment
Fabricate gold from dore and repay theloan to the banks.

In order to conduct prompt return to clients before fabrication, procuring gold from outside is needed.
There are two financing instruments as described below and we choose either one of them based on thefinancial market situation at the time of financing.

Financing instruments

Accounting
treatment

Impact on operating income

Loan from Japanese banks andprocurement of gold

Finance costs

No(Impact on profit before tax)

Gold loan from bullion banks

Operating expenses

Yes
Copyright © Asahi Holdings, Inc. All rights reserved.

8<Ref.> Revenue Expansion in North America
While main business of Asahi Refining in North America (“AR”) is the refining of gold and silver on aconsignment basis from mining companies, AR seeks to diversify revenue sources by positioning therefining business as a platform.
As a result of an attempt to develop and utilize a low-risk scheme, financial services such as advance
trading have become one of the main revenue sources and are expected to expand further.

Downstream
Kilo bar, coins,small bars
Green gold
(Reinforcement of traceability)

Finance

Upstream

Refining platform

Advance tradingConsignment sales

Carbon process

Jewelry separation

Copyright © Asahi Holdings, Inc. All rights reserved.

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

Gold
5,500

FY2018FY2017FY2019

5,000

4,500

4,000
2017/10

2018/012018/04

2018/072018/10

2019/01

2019/04

2019/07

2019/10

Silver70

FY2018FY2017FY20196050
2017/10

2018/012018/04

2018/072018/10

2019/01

2019/04

2019/07

2019/10

Copyright © Asahi Holdings, Inc. All rights reserved.

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

Palladium
6,000

FY2018FY2017FY2019

5,500
5,000
4,500
4,000
3,500
3,000
2017/10

2018/012018/04

2018/072018/10

2019/01

2019/04

2019/07

2019/10

Platinum
3,800

FY2018FY2017FY2019

3,600

3,400

3,200

3,000

2,800
2017/10

2018/012018/04

2018/072018/10

2019/01

2019/04

2019/07

2019/10

Copyright © Asahi Holdings, Inc. All rights reserved.

Trend in Prices (Gold <USD/Toz>, EXC <USD/JPY>)
Gold USD/Toz
1,600

FY2018FY2017FY2019

1,500

1,400

1,300

1,200

1,100
2017/10

2018/012018/04

2018/072018/10

2019/012019/04

2019/07

2019/10

Exchange Rate USD/JPY115

FY2018FY2017FY2019110105100
2017/10

2018/012018/04

2018/072018/10

2019/01

2019/04

2019/07

2019/10

Copyright © Asahi Holdings, Inc. All rights reserved.

10