Asahi Kasei Corporation
Head Office: 1-105 Kanda Jinbocho, Chiyoda-ku, Tokyo, Japan
Security code: 3407
Contact: Corporate Communications, Phone +81-3-3296-3008, Fax +81-3-3296-3162

August 3, 2017

Consolidated Results for 1st Quarter Fiscal 2017:
April 1, 2017 – June 30, 2017
(All figures in millions of yen, rounded to the nearest million, unless otherwise specified)

I. Summary of Consolidated Results
1. Operating results (percent change from previous year in brackets)
Net sales
Operating income
Ordinary income
Net income attributable to owners of the parent
Net income per share*Diluted net income per share*

Q1 2017448,736 [+5.4%]
37,858 [+26.7%]
41,203 [+45.7%]
30,064 [+24.8%]
21.53—

Q1 2016
425,825 [−7.9%]
29,879 [−15.9%]
28,281 [−22.5%]
24,093 [+16.4%]
17.25
—

* Yen
Note: Comprehensive income was ¥38,976 million during Q1 2017, and ¥(43,341) million during Q1 2016.

2. Financial position
At end ofTotal assets
Net assets
Net worth/total assets
Net worth per share*June 2017
2,256,589
1,187,184
51.9%
837.81March 2017
2,254,500
1,168,115
51.1%
824.36* YenNotes:
 Net worth consists of shareholders’ equity and accumulated other comprehensive income.
 Net worth as of June 30, 2017, was ¥1,170,114 million; as of March 31, 2017, ¥1,151,344 million.

II. Cash Dividends
Fiscal year
2016
2017
2017 (forecast)

Q1——

Cash dividends per share*Q2
Q3
Q4
10.00
—
14.00

Total annual
24.00

—

24.00

12.00

12.00

* Yen

Asahi Kasei
Consolidated Results

August 3, 2017
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III. Forecast for Fiscal 2017 (April 1, 2017 – March 31, 2018)
1. Latest forecasts (percent change from results in year-ago period in brackets)
Net sales
Operating income
Ordinary income
Net income attributable to owners of the parent
Net income per share*

For Q1–Q2
957,000 [+7.4%]
80,000 [+13.1%]
84,000 [+20.2%]
60,000 [+13.4%]
42.96

For the fiscal year
1,990,000 [+5.7%]
165,000 [+3.6%]
170,000 [+5.8%]
115,000 [+0.0%]
82.34

* Yen
Notes:
 Performance forecasts are based on the best information available at this time, but actual results may diverge
from these forecasts due to a variety of factors which cannot be foreseen.
 The forecast for fiscal 2017 announced on May 11, 2017, will be revised at the end of the 2nd quarter of fiscal
2017.

IV. Other Information
1. Changes in significant subsidiaries which affected scope of consolidation during the period: None

2. Special accounting methods for preparation of the consolidated financial statements
Income tax expenses: A reasonable estimate of the effective tax rate after applying tax-effectaccounting for the current fiscal year is made, and quarterly income before income taxes is multipliedby the corresponding effective tax rate.
3. Changes in accounting policies, changes in accounting estimates, and retroactive restatement: None
4. Number of shares outstanding

Number of shares outstanding at end of period
Number of shares of treasury stock at end of period
Average number of shares outstanding during period

Q1 2017
1,402,616,332
5,981,944
1,396,648,051

FY 2016
1,402,616,332
5,958,904
1,396,748,718** Q1 2016

Asahi Kasei
Consolidated Results

August 3, 2017
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V. Consolidated Financial Statements
1. Balance sheets

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable–trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Land
Lease assets
Accumulated depreciation
Lease assets, net
Construction in progress
Other
Accumulated depreciation
Other, net
Subtotal
Intangible assets
Goodwill
Other
Subtotal
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Subtotal
Total noncurrent assets
Total assets

Asahi Kasei
Consolidated Results

At end ofMarch 2017

At end ofJune 2017

145,289
302,751
159,395
116,481
70,806
20,27981,816(2,272)894,545

153,284
284,789
157,010
131,962
70,196
20,62979,327(2,290)894,907508,713(278,122)
230,590
1,376,029(1,176,686)
199,343
62,391
12,367(11,381)986
45,958150,073(132,460)
17,613556,881514,001(279,807)
234,194
1,381,400(1,180,859)
200,541
62,097
12,391(11,416)975
42,807150,899(132,922)
17,978558,592

285,622
177,149
462,772

280,514173,349
453,863

284,137
18,9189,309
28,154(215)
340,3021,359,955
2,254,500

288,149
27,501
7,101
26,698(222)
349,227
1,361,682
2,256,589

August 3, 2017
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Liabilities
Current liabilities
Notes and accounts payable–trade
Short-term loans payable
Commercial paper
Current portion of bonds payable
Lease obligations
Accrued expenses
Income taxes payable
Advances receivedProvision for periodic repairs
Provision for product warranties
Provision for removal cost of property, plant andequipment
Asset retirement obligations
Other
Total current liabilities
Noncurrent liabilities
Bonds payable
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for periodic repairs
Provision for removal cost of property, plant andequipment
Provision for loss on litigation
Net defined benefit liability
Asset retirement obligations
Long-term guarantee deposits
Other
Total noncurrent liabilities
Total liabilities
Net assetsShareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Net unrealized gain on other securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

Asahi Kasei
Consolidated Results

At end ofMarch 2017

At end ofJune 2017

147,543
113,475
56,00020,000305
100,419
16,202
72,8825,003
2,461

126,671
112,767
69,00020,000234
82,07918,52984,264
4,363
2,643

1,800

1,095

572
58,217594,880

560
62,383
584,588

20,000
192,584467
59,759165

20,000189,819458
58,083
264

4,390

3,635

2,162
178,368
3,436
20,4799,695
491,506
1,086,385

2,158
177,264
3,605
20,434
9,098
484,817
1,069,405

103,389
79,443
850,532(3,242)
1,030,122

103,389
79,440861,327(3,268)1,040,887

113,475
55
40,831(33,140)
121,222
16,771
1,168,115
2,254,500

115,452(11)
44,811(31,025)
129,227
17,0701,187,184
2,256,589

August 3, 2017
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2. Statements of income and statements of comprehensive income
1) Statements of income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Equity in earnings of affiliates
Other
Total non-operating income
Non-operating expenses
Interest expense
Equity in losses of affiliates
Foreign exchange loss
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Gain on sales of noncurrent assets
Total extraordinary income
Extraordinary loss
Loss on valuation of investment securities
Loss on disposal of noncurrent assets
Impairment losses
Business structure improvement expenses
Business integration expense
Total extraordinary loss
Income before income taxes
Total income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of the parent

Asahi Kasei
Consolidated Results

Q1 2016
425,825
291,274
134,551
104,671
29,879Q1 2017448,736
302,131
146,604
108,746
37,858

308
1,993
—
1,012
3,312

419
2,023
2,596
950
5,987

1,013
146
2,498
1,253
4,911
28,281

1,103
—
535
1,003
2,642
41,203

3,869
12
3,881

5,541
407
5,948

—
682
10
517
599
1,807
30,355
5,904
24,450357
24,093

8
672
513
385
—
1,578
45,574
14,99930,575511
30,064

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2) Statements of comprehensive income

Net income
Other comprehensive income
Net increase (decrease) in unrealized gain on othersecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income of affiliates
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of the parent
Non-controlling interests

Asahi Kasei
Consolidated Results

Q1 2016
24,450Q1 201730,575(12,560)

2,061

(178)
(55,771)
2,529

(66)
4,256
2,135

(1,811)15(67,791)(43,341)

8,401
38,976(43,083)(257)

38,068907

August 3, 20176/8

3. Statements of cash flows

Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Impairment lossAmortization of goodwill
Amortization of negative goodwill
Decrease in provision for periodic repairs
Increase in provision for product warranties
Decrease in provision for removal cost of property, plant andequipment
Decrease in net defined benefit liability
Interest and dividend income
Interest expense
Equity in losses (gain) of affiliates
Gain on sales of investment securities
Loss on valuation of investment securities
Gain on sale of property, plant and equipment
Loss on disposal of noncurrent assets
Decrease in notes and accounts receivable–trade
Increase in inventories
Increase (decrease) in notes and accounts payable–trade
Decrease in accrued expenses
Increase in advances received
Other, net
SubtotalInterest and dividend income, received
Interest expense paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Payments of loans receivableCollection of loans receivable
Other, net
Net cash used in investing activities

Asahi Kasei
Consolidated Results

Q1 2016

Q1 201730,35521,444
10
4,416
(40)
(1,865)40

45,574
22,460
513
4,532
(40)
(541)
183

(1,364)(1,461)(1,573)(2,300)1,013
146(3,869)—(12)
682
11,228(10,437)
2,017(16,908)
4,616
6,524
44,121
3,484(547)(13,596)
33,462(1,219)(2,441)
1,103(2,596)(5,541)8(407)
672
18,978(11,884)(21,992)(19,209)
11,401
7,849
45,9423,755(650)(12,079)
36,968(1,210)1,509(18,926)
2,136(2,381)(5,927)4,275(2,357)165
71(22,646)(486)
486(19,413)908(2,731)(773)
5,953(35,179)
26,496(176)(24,915)

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Cash flows from financing activities
Net decrease in short-term loans payable
Increase in commercial paper
Proceeds from long-term loans payable
Repayment of long-term loans payable
Repayments of lease obligations
Purchase of treasury stock
Proceeds from disposal of treasury stock
Cash dividends paid
Cash dividends paid to non-controlling interests
Other, net
Net cash used in financing activities
Effect of exchange rate change on cash and cash equivalents
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from changes inscope of consolidation
Cash and cash equivalents at end of period

Q1 2016

Q1 2017(177,948)
56,000125,885
(99)
(292)
(8)
0(13,968)(556)
194(10,791)(9,941)(9,916)145,307(2,308)13,000—(273)(129)(26)
0(19,553)(915)
259(9,944)
5,603
7,712
144,077281

272

135,672

152,061

4. Notes to consolidated financial statements
Consolidated balance sheets
Contingent liabilities
In October 2015 Asahi Kasei Corp. disclosed that Asahi Kasei Construction Materials Corp., aconsolidated subsidiary of Asahi Kasei Corp., which performed pile installation work as secondary
subcontractor for the construction of a condominium complex in Yokohama, Kanagawa, Japan,
submitted incorrect data in the pile installation report for the precast concrete piles installed for thisproject. There was manipulation of ammeter data and flowmeter data for the installation of piles.
Asahi Kasei Corp. established a task force and an internal fact-finding committee as well as anindependent commission to advance investigation, and on October 22, 2015, Asahi Kasei
Construction Materials Corp. reported its record of similar pile installation work over the past 10years to Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT).
On November 24, 2015, Asahi Kasei Construction Materials Corp. completed all possible
investigation of whether or not there was manipulation of data regarding the installation of precast
concrete piles, and reported the results to the MLIT. Out of the 3,052 projects subject toinvestigation, manipulation of data was found for 360 projects.
Regarding projects where manipulation of data was found, Asahi Kasei Construction Materials is
cooperating with the prime contractors and the owners of the buildings in efforts to confirm safety
based on instructions from the MLIT. Regarding projects where a Specific Administrative Agency
has confirmed safety, the Specific Administrative Agency has issued a report to the MLIT. (At ameeting of the House of Councillors Committee on Land and Transport held on April 5, 2016, it wasreported that the safety of 357 of the 360 projects had been confirmed.)
Although there is a possibility that an effect on the consolidated results of Asahi Kasei Corp. may
emerge such as the recording of an additional reserve, etc., no such effect is reflected in theconsolidated financial statements due to the difficulty of making a rational estimate of the amount offinancial impact from this matter as of the time of preparation of the consolidated financial statements.

Asahi Kasei
Consolidated Results

August 3, 20178/8