Asahi : Presentations of Financial Results for Third Quater FY2023.3

Asahi Holdings, Inc.

Financial Results for Q3 FY2023.3

January 31, 2023

These forecast performance figures are based on information currently available to the company's management and certain assumptions judged rationally. Accordingly, there might be cases in which actual results materially differ from forecasts of this report.

Copyright © Asahi Holdings, Inc. All rights reserved.

1. Financial Results for Q3 FY2023.3

(April 1, 2022 ~ December 31, 2022)

1. Appendix

Copyright © Asahi Holdings, Inc. All rights reserved.

1

01 Consolidated Results

Q3

FY2022.3

Q3

FY2023.3

Unit：billion yen

FY2023.3

		Results
		144.5
Revenue
Operating profit	19.3
Ratio	13.4%
Profit before tax	19.3
Profit※1	13.6

Results

205.8

17.5

8.5%

14.4

10.2

YoY

Change

61.3

(1.8)

(4.9%)

(4.9)

(3.4)

Forecast

270.0

24.0

8.9%

22.6

15.6

YoY

Change

77.6

(2.4)

(4.9%)

(3.8)

(3.1)

Capex	4.5
Depreciation	2.0

※1※Profit attributable to owners of parent

3.4 (1.2)

2.5	0.5

6.5

3.0

(1.8)

0.3

Copyright © Asahi Holdings, Inc. All rights reserved.

2

02 Business Environment of Q3 in Each Segment

Precious Metals Business

• The volume of precious metal collected in the precious metals recycling business increased YoY but decreased from second quarter. The main reasons include decrease in the volume collected -- from a major customer in the jewelry sector, in the catalyst sector due to the sluggish automobile industry and a weaker yen, and in the electronics sector due to a fall in demand for some products in the electronic components.
• In the North American refining business, product processing and sales operations remain as strong.

Business Field

Dentistry

Jewelry

Catalyst

Electronics

North American refining

Business Environment

The downward trend in collection volume continues due to extended limitations on the number of patients as part of ongoing infection control measures in addition to the spread of substitute products.

The volume collected from a major customer is decreasing for purchases while the volume remains flat for manufacturing.

The volume collected in Japan is decreasing due to a weaker yen and falling market prices. The volume collected from Korean catalyst manufacturers is increasing.

EV-related and industrial application items remain strong, but the volume collected is decreasing due to a large drop in smartphone/ICT-related products.

Trades in areas such as product processing and sales remain strong.

Environmental Preservation Business

• The volume collected from educational and medical institutions is trending upward, but those from construction is trending downward. Collection volume for automobile-related items remains sluggish.

	Industry		Business Environment
	Educational/Research		The volume collected from educational institutions is trending upward compared to the same period last year.
	institution
	Construction		The number of housing starts is on the decline due in part to soaring material prices. The volume of related waste
		generation is also falling.
	Automobile		The number of plants in operation continues to drop due to a sustained shortage of semiconductors and components.
		The volume of waste collection from related component plants remains low.
	Electronics		Inventory adjustment moves by electronics manufacture affected production of components suppliers. Related waste
		generation is on a downward trend.
	Medical		The number of recuperation accommodation facilities is growing due to number of COVID-19 patients is increasing,
		expanding the volume of related medical waste once again.
	Chemical		Production indexes in the chemical industry are slightly increasing compared to last year
			*Mainly described the environment in third quarter compared with that in second quarter
Copyright © Asahi Holdings, Inc. All rights reserved.	3

03 Precious Metals Business

Precious Metals Recycling Business (Japan and Asia)

Q3 FY2023.3 Results

Revenue significantly increased thanks to the increase in sales volume in line with increased in collection volume mainly from jewelry sector.

The composition ratio of dental and catalyst sector, which have relatively high profit margins, decreased. Expenses increased due to depreciation associated with Bando plant, rising fuel prices and other factors.

➡Increaseinrevenueanddecreaseinprofit

Refining Business in North America

Q3 FY2023.3 Results

The various value-added business transactions that serve as the base of the refining business were strong. Due to the impact of the COVID19, "Stock-Take", which in the previous year contributed to profits equivalent to two years' worth when combined with the previous two years, has normalized in the current year.

➡Increaseinrevenueanddecreaseinprofit

Precious			Q3 FY2022.3
Metals			Results
Revenue			131.0
Operating Profit			19.4
Ratio			14.8%

Q3 FY2023.3			FY2023.3
Results
		YoY Change			Forecast		YoY Change
192.4			61.5			251.0		77.1
17.4			(2.0)			24.2		(2.4)
9.0%			(5.8%)			9.6%		(5.7%)

Copyright © Asahi Holdings, Inc. All rights reserved.

4