Asahi : Consolidated Financial Results for the First Quarter Ended June 30, 2022

Consolidated Financial Results for the First Quarter Ended June 30, 2022

Asahi Holdings, Inc. [IFRS]

July 28, 2022

Stock code:

5857

Shares listed:

Tokyo Stock Exchange - Prime Market

URL:

https://www.asahiholdings.com

Representative:

Tomoya Higashiura, Representative Director, President & CEO

For further information please contact:

Kunihiko Chogo, General Manager, Corporate Planning &

Communications Department

(Phone) [phone]

Filing date of Quarterly Report:

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)

Revenue

Operating

Profit before

Profit

Profit

Total

profit

tax

attributable to

comprehensive

owners of parent

income

The three months ended

Millions of yen

%

Millions of yen %

Millions of yen %

Millions of yen %

Millions of yen %

Millions of yen %

June 30, 2022

59,749

18.5

5,691

(17.9)

6,108

(10.6)

4,268

(11.9)

4,268

(11.9)

8,977

25.8

June 30, 2021

50,424

28.6

6,933

31.9

6,831

28.6

4,842

33.3

4,842

33.3

7,137

34.0

Basic earnings per share

Diluted earnings per share

The three months ended

Yen

Yen

June 30, 2022

54.27

49.11

June 30, 2021

61.53

55.12

(2) Financial Position

Total assets

Total equity

Equity attributable to

Equity attributable to

owners of parent

owners of parent ratio

As of

Millions of yen

Millions of yen

Millions of yen

%

June 30, 2022

287,063

110,615

110,615

38.5

March 31, 2022

298,387

105,137

105,137

35.2

2. Dividend payments

Dividends per share

First quarter

Second quarter

Third quarter

Year-end

Annual

Yen

Yen

Yen

Yen

Yen

Year ended March 31, 2022

-

45.00

-

45.00

90.00

Year ending March 31, 2023

-

Year ending March 31, 2023

45.00

-

45.00

90.00

(Forecast)

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

3. Forecast (From April 1, 2022 to March 31, 2023)	(Percentage: Changes relative to corresponding previous period)
				Operating	Profit before	Profit		Basic earnings
	Revenue			attributable to
			profit		tax		per share
						owners of parent
Six months ending	Millions of yen	%	Millions of yen	%	Millions of yen %	Millions of yen	%	Yen
100,000	3.2	12,000	(12.4)	11,700	(14.2)	8,000	(17.1)	101.73
September 30, 2022
Year ending March 31, 2023	200,000	3.9	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
  3. 1. Changes in accounting policies required by IFRS: No
     2. Changes other than (i) above: No
     3. Changes in accounting estimates: No
  4. Number of issued shares (common stock)
  5. 1. 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 results materially 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 first quarter. On the other hand, there is increasing uncertainty about the future of corporate activities due to soaring prices of fuel and raw materials, together with sharp fluctuations in currency exchange rates from the impact 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 business

In 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 in increase 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 were strong against the backdrop of stable arrival of raw materials.

Environmental Preservation business

In 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 the same 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-on- year 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, a decrease 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 the previous 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. This was 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 the previous 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 and other 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 of purchase of property, plant and equipment and 1,371 million yen of proceeds from sales of shares of subsidiaries.

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 －