Asahi Kasei Corporation
Head Office: 1-1-2 Yurakucho, Chiyoda-ku, Tokyo, Japan
Security code: 3407
Contact: Corporate Communications, Phone +81-3-6699-3008, Fax +81-3-6699-3187

November 6, 2020

Consolidated Results for 1st and 2nd Quarter Fiscal 2020:
April 1, 2020 – September 30, 2020
(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–Q2 2020
989,387 [−7.4%]
76,769 [−24.5%]
77,474 [−26.4%]
46,781 [−39.9%]
33.72—

Q1–Q2 2019
1,068,642 [+2.6%]
101,694 [−2.5%]
105,280 [−4.5%]
77,863 [−1.3%]
56.03
—

* Yen
Note:
Comprehensive income was ¥45,259 million during Q1–Q2 2020, and ¥47,099 million during Q1–Q2 2019.

2. Financial position
At end ofTotal assets
Net assets
Net worth/total assets
Net worth per share*

September 2020
2,822,816
1,404,602
48.9%
994.45

March 20202,822,277
1,383,460
48.2%
979.69* YenNotes:• Net worth consists of shareholders’ equity and accumulated other comprehensive income.
• Net worth as of September 30, 2020, was ¥1,379,836 million; as of March 31, 2020, ¥1,359,314 million.
• Calculation of total assets as of March 31, 2020, previously based on provisional accounting treatment related
to business combinations, has been finalized.

II. Cash Dividends
Fiscal year
2019
2020
2020 (forecast)

Cash dividends per share*Q2
Q3
Q4
18.00
—
16.00
17.00
—
17.00

Q1——Total annual
34.00
34.00
* Yen

Note:
The cash dividend forecast has been revised.

Asahi Kasei
Consolidated Results

November 6, 2020
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III. Forecast for Fiscal 2020 (April 1, 2020 – March 31, 2021)
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 the fiscal year
2,034,000 [−5.5%]
140,000 [−21.0%]
142,000 [−22.8%]
87,000 [−16.3%]
62.70

* 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 2020 announced on August 4, 2020, has been revised.

IV. Other Information
1. Changes in significant subsidiaries which affected scope of consolidation during the period
Addition of one new subsidiary: Sage Automotive Interiors Germany GmbH
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. Notable changes in shareholders’ equity: None
5. 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–Q2 2020
1,393,932,032
6,390,352
1,387,512,694

FY 2019
1,393,932,032
6,440,327
1,389,634,652** Q1–Q2 2019

Asahi Kasei
Consolidated Results

November 6, 2020
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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
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, netLand
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
Long-term advance payments–trade
Deferred tax assets
Other
Allowance for doubtful accounts
Subtotal
Total noncurrent assets
Total assets

Asahi Kasei
Consolidated Results

At end ofMarch 2020

At end of
September 2020

207,957
330,999
216,463
160,064
101,313
92,153(1,519)1,107,430

207,009305,501
219,184
165,112
106,827
92,103(1,844)
1,093,892

563,110(305,259)
257,851
1,466,958(1,243,780)
223,179
67,024
9,645(8,964)681
75,487
172,674(143,210)
29,464
653,686

580,623(311,347)
269,276
1,489,784(1,262,591)
227,193
68,7049,294(8,656)637
86,255
176,362(146,164)
30,198682,263

365,680
349,566
715,246

356,405
331,116
687,520

244,581
7,951
20,46744,46628,883(435)
345,914
1,714,846
2,822,277

257,345
7,845
24,607
40,216
29,602(474)
359,142
1,728,925
2,822,816

November 6, 2020
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Liabilities
Current liabilities
Notes and accounts payable–trade
Short-term loans payable
Commercial paper
Lease obligations
Accrued expenses
Income taxes payable
Advances received
Provision for grant of shares
Provision for periodic repairs
Provision for product warranties
Provision for removal cost of property, plant andequipment
Other
Total current liabilities
Noncurrent liabilities
Bonds payable
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for grant of shares
Provision for periodic repairs
Provision for removal cost of property, plant andequipment
Net defined benefit liability
Long-term guarantee deposits
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ 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 2020

At end of
September 2020

131,207275,671
139,000
1,006
121,520
18,14573,623
78
4,043
3,738

119,391
124,859
136,000
1,008
110,928
13,48077,966
—
5,764
3,673

2,640

4,348

71,863
842,531

72,167
669,585

60,000229,172
3,506
70,600412
4,560

110,000
336,804
3,221
67,932
422
2,933

5,771

5,849

174,365
21,613
26,287596,286
1,438,817

172,542
21,53327,395
748,630
1,418,215

103,389
79,641
1,125,738(5,990)1,302,777

103,389
79,6601,149,399(5,925)
1,326,523

67,027(241)
13,027(23,275)
56,53824,145
1,383,460
2,822,277

77,770(205)(3,282)(20,969)
53,31324,765
1,404,602
2,822,816

November 6, 2020
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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
OtherTotal non-operating income
Non-operating expensesInterest expense
Foreign exchange loss
OtherTotal 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 loss
Business structure improvement expenses
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–Q2 20191,068,642
722,643
346,000
244,305
101,694

Q1–Q2 2020
989,387
666,732
322,656
245,887
76,769

1,340
3,340
4,624
1,768
11,072

908
2,313
153
2,484
5,858

2,136
1,914
3,435
7,486
105,280

1,713
144
3,296
5,153
77,474

9,021
414
9,435

1,704
272
1,976

412
3,082
141
263
3,899
110,816
32,04078,776913
77,863

38
3,875
16
4,093
8,022
71,42923,14348,286
1,505
46,781

November 6, 2020
5/8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–Q2 201978,776

Q1–Q2 2020
48,286(6,733)

10,679(73)(26,590)2,665

36(16,599)
2,294

(946)

563

(31,677)
47,099(3,027)45,25946,367732

43,556
1,702

November 6, 2020
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3. Statements of cash flows

Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Impairment loss
Amortization of goodwill
Amortization of negative goodwill
Decrease in provision for grant of shares(Decrease) increase in provision for periodic repairs
Increase (decrease) in provision for product warranties(Decrease) increase in provision for removal cost of property,
plant and equipment
Decrease in net defined benefit liability
Interest and dividend income
Interest expense
Equity in earnings 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
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
Purchase of shares in subsidiaries resulting in change in scopeof consolidation
Payments for transfer of business
Payments of loans receivableCollection of loans receivable
Other, net
Net cash used in investing activities

Asahi Kasei
Consolidated Results

Q1–Q2 2019

Q1–Q2 2020

110,816
45,900141
10,753(79)(22)(2,469)533

71,42952,576
1612,500—(68)
94(47)

(255)

1,787

(1,881)(4,680)2,136(4,624)(9,021)
412
(414)
3,082
22,994(25,446)(28,939)(2,307)
4,313(10,809)110,136
6,003(2,110)(36,226)
77,803(1,786)(3,221)
1,713(153)(1,704)
38
(272)
3,875
30,615(9,805)(16,110)(12,993)
4,652(1,580)131,555
4,635(1,622)(29,965)
104,603(1,053)
12,312(64,688)
1,731(6,659)(2,656)18,025(1,211)
3,228(57,571)348(6,108)(3,145)974(31,307)(4,832)(1,964)(3,791)
5,469
803(73,778)(17,778)(2,651)
2,986(144)(85,905)

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Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Decrease in commercial paper
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of bonds 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
Purchase of shares in subsidiaries not resulting in change inscope of consolidation
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) 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

Asahi Kasei
Consolidated Results

Q1–Q2 2019

Q1–Q2 2020

11,806(1,000)847(11,665)
40,000(595)(10,010)83(23,742)(826)(163,470)(3,000)128,460(6,607)50,000(642)(3)
69(22,206)
(582)

—

(307)

(121)
4,778
(3,925)
4,878
180,520(218)(18,505)
(899)
(705)
204,771

86

1,769

185,484

205,835

November 6, 2020
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