Are Holdings, Inc.TSE: 5857

Presentations of Financial Results for First Half FY2025.3

Oct 30, 2024 at 6:48 AM UTC · Issued by Are Holdings, Inc.

ARE Holdings, Inc.

Financial Results for Q2 for fiscal year ending March, 2025

(FY2024)

October 30, 2024

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.

Financial Results for Q2 FY2025.3

(April 1, 2024 ～ September 30, 2024)

Appendix

3 Business Highlights of Q2 FY2025.3


Revenue	YoY	Q2 Plan Achievement Rate*
240.4 billion yen	+96.1 billion yen	133.5 %


Operating Profit	YoY	Q2 Plan Achievement Rate*
8.3 billion yen	+2.6 billion yen	97.9 %

* Progress rate against the six-month plan ending September 30, 2024

Reasons for an Increase in Revenue

The continuing rise in gold prices led to the increase in gold collection especially in the jewelry sector.

Reasons for an Increase in Profit

There was a loss in the same period last year due to the decrease in rhodium prices, but no loss this fiscal year as prices were stable.
Rising gold prices as well as an increase in collection volume.
Equity method investment gain from RENATUS Co., Ltd is accounted starting this fiscal year.

4 Consolidated Results

Revenue

Operating Profit

Profit

FY2024.3

Results

144.2

5.7

5.3

FY2025.3
Results	YoY
Change

240.4	+ 96.1
8.3	+ 2.6
6.6	+ 1.3

Unit： billion yen

FY2025.3

Revised

Forecast

480.0

18.0

13.1

* "Profit" is Profit attributable to owners of parent

Revenue and operating profit for the second quarter of FY2024.3 show the amounts excluding discontinued operations (Japan Waste Co., Ltd.).

5 Reasons for Change in Operating Profit

Unit：billion yen

										* Amounts may not add up due to rounding.
								Unit：Yen		Remarks


Precious		Q2(Apr. to Sep.)	Q2(Apr. to Sep.)
	FY2024.3			FY2025.3		•	The collection volume of gold increased, mainly
Metal Prices
	Average price for			Average price			Change		in the jewelry sector.
(per gram)		the period		for the period
				•	In the North American refining business, while


Gold	8,869		11,813			2,945		the trading sector experienced growth, the
										product sector remained sluggish, leading to a

Palladium	6,175		4,876			△ 1,299		decrease in overall profits.
									•	The results of Japan Waste, which became a
Platinum	4,508		4,858			349
				discontinued operation, were not included in the

										previous fiscal year, but the equity method
Rhodium	23,022	22,519		△503
		investment profit and loss of Renatus is included

										in the current fiscal year.

【Reference】

Gold…Quote from mining company, Palladium …Nikkei low price, Platinum …retail price(exclude tax), Rhodium …Metals Week NY Dealer Price

6 Businesses

Precious Metals Business

Revenue	240.3 billion yen
	（YoY +96.1 billion yen）
Operating Profit	7.5 billion yen
	（YoY +1.6 billion yen）

Environmental Preservation Business

Revenue	－ billion yen
	（YoY － billion yen）
Operating Profit	1.0 billion yen
	（YoY+1.0 billion yen）
Profit	1.0 billion yen
	（YoY+1.0 billion yen）

Equity method investment gain from Renatus Co., Ltd is included starting this fiscal year (1.0 billion yen).
Japan Waste's results are excluded from the year-ago period.

"Other" includes sales of Rh and revenue from the North American refining business.	Revenues, operating profit and profit for the same period of the previous
	fiscal year exclude discontinued operations (Japan Waste Co., Ltd.).

7 Precious Metals Business｜ Collection Breakdown(YoY)

	Composition ratio by element	Amount of
					Business environment
	Au	Pd	Pt	Rh	Au collected


						Although the recycling market continues to
					YoY	shrink due to material shifts and
Dentistry				－	technological innovation, we secured new
			97％	customers through improved sales efficiency
	30～50％	50～70％	Less		and the implementation of new measures. As
	than10％			a result, we maintained the same collection

						volume as the previous year.
						Although the soaring gold price has subsided,
					YoY	increased awareness of recycling has led to a
Jewelry				－	large amount of gold being circulated into

	Less		167％	the recycling market, and the collection
	Over 70%	10～30％		volume has increased compared to the same
	than10％
					period last year.


						Due to the slump in demand for BEVs, the
					YoY	amount of collections from related companies
Electronics				－	has decreased, but demand for AI
			103％
	Less	Less	semiconductor-related products has
	Over 70%		recovered significantly and the situation is on
	than10％	than10％
				the way to recovery.


						The amount of environmental catalysts
					YoY	generated decreased due to process
Catalyst	－				97％	improvements by major catalyst
			manufacturers, and production adjustments
			Less
		50～70％	30～50％		for chemical catalysts also contributed to the
		than10％
					large decrease.


		The symbols in the table indicate the percentage of each category in the total recovery volume (exc. Ag and Cu).
		Comments for each area are compared with the same period last year.

8 Precious Metals Business｜Impact of Gold Collection

Q2 FY2024.3	Q2 FY2025.3
Breakdown of Revenue	Breakdown of Revenue

Changes in the amount of Au collected

9 Precious Metals Business｜Volume of Precious Metals Collected

Unit：kg

Unit：kg	Unit：kg

10Precious Metals Business｜Trend in Precious Metals Prices


Q2 FY2024.3	Q2 FY2025.3

（¥/g）

Reference：Quote from mining company

Q2 FY2024.3	Q2 FY2025.3

（¥/g）

Reference：Nikkei low price

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