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

May 13, 2022

Consolidated Results for Fiscal 2021:
April 1, 2021 – March 31, 2022
(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*
Net income/shareholders’ equity
Ordinary income/total assets
Operating income/net sales

FY 20212,461,317 [+16.9%]
202,647 [+17.9%]
212,052 [+19.1%]
161,880 [+102.9%]
116.68
—
10.3%
6.8%
8.2%

FY 2020
2,106,051 [−2.1%]
171,808 [−3.1%]
178,036 [−3.2%]
79,768 [−23.2%]
57.49
—
5.6%
6.2%
8.2%
* Yen

Notes:• Comprehensive income was ¥261,502 million during fiscal 2021, and ¥157,941 million during fiscal 2020.
• Equity in earnings of affiliates was ¥8,878 million during fiscal 2021, and ¥3,451 million during fiscal 2020.

2. Financial position
At fiscal year end March
Total assets
Net assets
Net worth/total assets
Net worth per share*2022
3,349,075
1,718,815
50.4%
1,216.33

2021
2,918,941
1,494,535
50.3%
1,057.61* Yen

Notes:• Net worth consists of shareholders’ equity and accumulated other comprehensive income.
• Net worth was ¥1,687,410 million as of March 31, 2022, and ¥1,467,476 million as of March 31, 2021.

3. Cash flows

Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Cash and cash equivalents at end of period

Asahi Kasei
Consolidated Results

FY 2021
183,271(221,019)
42,321
242,948

FY 2020
253,676(157,751)(95,869)
216,235

May 13, 2022
1/21

II. Cash Dividends

Fiscal year
2020
2021
2022
(forecast)

Cash dividends per share*
Total
Q1
Q2
Q3
Q4
annual— 17.00 — 17.00 34.00— 17.00 — 17.00 34.00
—

18.00

—

18.00

Total annual
dividend
amount47,18747,187

Dividends/
consolidated
net income
59.1%
29.1%

36.00

Dividends/
consolidated
net worth
3.3%
3.0%

30.4%
* Yen

III. Forecast for Fiscal 2022 (April 1, 2022 – March 31, 2023)(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*

2,731,000 [+11.0%]
210,500 [+3.9%]
216,500 [+2.1%]
164,500 [+1.6%]
118.58* Yen
Note:
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.

IV. Other Information
1. Changes in significant subsidiaries which affected scope of consolidation during the period
Addition of three new subsidiaries:
McDonald Jones Homes Pty Ltd
Respicardia, Inc.
Itamar Medical Ltd.
Elimination of one subsidiary:
Zeus Merger Sub Ltd.
2. Changes in accounting policies, changes in accounting estimates, and retroactive restatement
i. Application of Accounting Standard for Revenue Recognition, etc.
Accounting Standards Board of Japan (ASBJ) Statement No. 29 “Accounting Standard for
Revenue Recognition” and other standards are applied from the beginning of the fiscal year ended
March 31, 2022, whereby revenue is recognized in the amount foreseeable to be received in exchange
for goods or services at the time control of promised goods or services is transferred to the customer.
Accordingly, the method of revenue recognition for contracted construction is changed, mainlyin the Homes segment. Whereas previously the construction completion standard was applied toworks whose outcome lacked certainty, this is changed to recognizing revenue over a certain period
when conditions of performance obligations are fulfilled over a certain period. Measurement ofprogress related to fulfilment of performance obligations is based on the proportion of the total
foreseen construction cost which is incurred by the closing date of each financial period.
In accordance with the proviso of Article 84 of the Accounting Standard for Revenue
Recognition, the cumulative effect of retroactive application is adjusted to retained earnings as of the
beginning of the fiscal year ended March 31, 2022. However, in accordance with Article 86 of the
Accounting Standard for Revenue Recognition, the new accounting standard is not applied
Asahi Kasei
Consolidated Results

May 13, 2022
2/21

retroactively to contracts for which nearly all revenue was recognized by the previous method prior to
the beginning of the fiscal year ended March 31, 2022.
As a result, net sales, cost of sales, and selling, general and administrative expenses eachdecreased, by ¥48,666 million, ¥49,860 million, and ¥34 million, respectively, and operating income,ordinary income, and income before income taxes each increased by ¥1,227 million during the fiscal
year ended March 31, 2022. Retained earnings at the beginning of the period increased by ¥9,212
million.
Due to the application of the Accounting Standard for Revenue Recognition, “notes and accounts
receivable–trade” from the previous fiscal year under current assets in the consolidated balance sheets
are included in “notes, accounts receivable–trade, and contract assets” beginning with the fiscal year
ended March 31, 2022, while “decrease in notes and accounts receivable–trade” from the previous
fiscal year under cash flows from operating activities in the consolidated statements of cash flows is
included in “increase in notes, accounts receivable–trade, and contract assets” beginning with thefiscal year ended March 31, 2022. In accordance with Article 89-2 of the Accounting Standard for
Revenue Recognition regarding transitional treatment, results for the previous fiscal year are notrecalculated by the new method.
ii. Application of Accounting Standard for Accounting Standard for Fair Value Measurement, etc.
ASBJ Statement No. 30 “Accounting Standard for Fair Value Measurement” and other standards
are applied from the beginning of the fiscal year ended March 31, 2022. In accordance with Article
19 of the Accounting Standard for Fair Value Measurement and Article 44-2 of ASBJ Statement No.
10 “Accounting Standard for Financial Instruments” regarding transitional treatment, the new
accounting policy is to be applied in the future. Whereas certain investment securities and certain
long-term loans receivable, which were deemed to be financial instruments whose fair value wasextremely difficult to ascertain, had been reflected on the consolidated balance sheets at theiracquisition price, they are now reflected on the consolidated balance sheets at their fair value
calculated using significant unobservable inputs based on the best information available, even whenobservable inputs are unavailable. The effect on the consolidated financial statements is immaterial.
iii. Changes in presentation
Consolidated statements of income:Insurance income, which was reported separately under non-operating income for the year ended
March 31, 2021, is included in other from the year ended March 31, 2022, due to diminishedmateriality. Consolidated statements of income for the year ended March 31, 2021, are restated toreflect this change. As a result, ¥2,618 million, previously reported as insurance income, is included
in other under non-operating income.

3. 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

Asahi Kasei
Consolidated Results

FY 2021
1,393,932,032
6,640,935
1,387,432,219

FY 2020
1,393,932,032
6,396,867
1,387,525,767

May 13, 2022
3/21

V. Summary of Non-Consolidated Results
1. Results for fiscal 2021 (April 1, 2021 – March 31, 2022)(1) Operating results (percent change from previous year in brackets)
FY 2021652,631 [+19.1%]
35,059 [+450.0%]
81,940 [+26.9%]
52,484 [−22.5%]
37.83—

Net sales
Operating income
Ordinary income
Net income
Net income per share*
Diluted net income per share*

FY 2020
548,149 [−8.6%]
6,374 [−69.1%]
64,546 [−15.9%]
67,717 [+17.0%]
48.80
—
* Yen

(2) Financial position
At fiscal year end, March
Total assets
Net assets
Net worth/total assets
Net worth per share*2022
2,149,337
771,80935.9%
556.342021
2,289,241
790,31234.5%
569.58* Yen

VI. Overview of Consolidated Results
1. Consolidated group results
Net sales increased substantially in the Material and Homes sectors which had major impacts fromthe COVID-19 pandemic in the previous fiscal year. While the previous year’s sales in the HealthCare sector were bolstered by businesses contributing to treatment of COVID-19, net sales
increased slightly with other businesses performing well. Total consolidated net sales increasedby ¥355.3 billion from a year ago to ¥2,461.3 billion, operating income increased by ¥30.8 billion
to ¥202.6 billion, and ordinary income increased by ¥34.0 billion to ¥212.1 billion. Net income
attributable to owners of the parent increased considerably by ¥82.1 billion to ¥161.9 billion as
expenses related to a semiconductor plant fire in the previous fiscal year decreased, and income tax
expenses decreased in relation to reconfiguration of Veloxis Pharmaceuticals, Inc.
2. Results by operating segment
The Asahi Kasei Group’s operations are described by major business classification: three reportablesegments of Material, Homes, and Health Care, together with an “Others” category.
MATERIAL
Sales increased by ¥207.0 billion from a year ago to ¥1,198.2 billion, and operating income
increased by ¥43.8 billion from a year ago to ¥110.3 billion.
Operating income increased considerably with higher shipments of engineering plastics asautomotive markets recovered, product price increases as feedstock prices rose, higher shipmentsof digital solution products as semiconductor markets were brisk, and sharply higher petrochemicalmarket prices as demand recovered.
HOMES
Sales increased by ¥140.7 billion from a year ago to ¥833.4 billion, and operating income increasedby ¥9.6 billion from a year ago to ¥73.2 billion.
Operating income increased with a considerable rise in income from North American
operations as lumber prices rose, and larger deliveries and higher added-value in domestic orderbuilt homes operations although the order backlog was impacted by the previous year’s COVID-19
Asahi Kasei
Consolidated Results

May 13, 2022
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restrictions on sales activities and materials costs rose.
HEALTH CARE
Sales increased by ¥8.0 billion from a year ago to ¥415.9 billion, and operating income decreasedby ¥15.4 billion from a year ago to ¥52.2 billion.
Although shipments of ventilators decreased considerably with normalization of demand
from previous year’s surge due to COVID-19, mainstay products in critical care operations such asdefibrillators performed well and the decrease in operating income was curtailed. Mainstay
products in pharmaceutical and medical device operations performed well, but license fees for
future growth resulted in higher SG&A and decreased operating income.
OTHERS
Sales decreased by ¥0.4 billion from a year ago to ¥13.8 billion, and operating income decreasedby ¥0.6 billion from a year ago to ¥3.2 billion.

Asahi Kasei
Consolidated Results

May 13, 2022
5/21

VII. Consolidated Financial Statements
1. Balance sheets

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable–trade
Notes, accounts receivable–trade, and contract assets
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, 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
Long-term advance payments–trade
Net defined benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Subtotal
Total noncurrent assets
Total assets

Asahi Kasei
Consolidated Results

At end ofMarch 2021

At end ofMarch 2022

221,779
338,640—
203,159
166,494
111,798
97,131(2,225)
1,136,776

244,641—
434,595
252,521
146,120
141,608
117,195(2,471)
1,334,209

598,675(319,144)
279,531
1,535,326(1,286,057)
249,269
70,577
8,615(7,687)928
84,463
182,414(149,920)
32,495717,262

646,311(333,966)
312,344
1,569,782(1,288,462)
281,320
69,567
8,679(6,814)
1,865
102,284
159,312(121,477)
37,834805,215

351,921342,454694,374

431,335
405,508
836,843

286,517
1,241
29,390—21,11632,709(445)
370,529
1,782,165
2,918,941

246,701
6,227
30,432
1,193
54,276
34,404(426)
372,808
2,014,866
3,349,075

May 13, 2022
6/21

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 2021

At end ofMarch 2022

142,087
144,571
84,000880
126,705
21,26878,601
124
7,222
3,522

178,092
239,491
113,000
2,224
146,275
58,11562,476
208
4,738
4,007

5,651

4,445

88,533
703,163

110,778
923,850

110,000
320,404
3,921
58,669513
3,415

160,000
253,785
8,715
52,017490
5,396

12,652

12,298

158,832
21,93930,899721,243
1,424,406

152,081
22,49039,139706,410
1,630,260

103,389
79,641
1,158,792(5,932)
1,335,890

103,389
79,887
1,282,325(6,219)1,459,381

91,887(347)
50,462(10,416)
131,586
27,0581,494,535
2,918,941

66,287(341)
167,225(5,142)228,029
31,405
1,718,815
3,349,075

May 13, 2022
7/21

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
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Gain on sales of noncurrent assets
Insurance income
Gain on step acquisitions
Total extraordinary income
Extraordinary loss
Loss on valuation of investment securities
Loss on disposal of noncurrent assets
Impairment losses
Loss on fire at plant facilities
Loss on product compensation
Business structure improvement expenses
Total extraordinary loss
Income before income taxes
Income taxes–current
Income taxes–deferred
Total income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of the parent

Asahi Kasei
Consolidated Results

FY 2020
2,106,051
1,425,342
680,709508,901
171,808

FY 20212,461,317
1,691,549
769,769
567,122202,647

1,895
4,308
3,451
7,677
17,331

1,364
4,332
8,878
7,088
21,663

3,209
7,893
11,102
178,036

3,643
8,614
12,257
212,052

17,312353——
17,66526,545
912
3,777
1,700
32,93466
10,637
1,937
22,2872,118
7,750
44,795150,906
73,273(4,465)68,80882,0982,330
79,768

511
7,526
6,811
—
—
15,017
29,866215,12193,046(41,759)
51,287
163,834
1,954
161,880

May 13, 2022
8/21

(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

FY 2020
82,098FY 2021
163,834

24,806(25,746)(106)
35,491
12,631

5
114,406
5,403

3,020

3,599

75,842
157,941

97,668
261,502

154,817
3,124

258,3223,180

May 13, 2022
9/21

3. Statements of changes in net assets
FY 2020

FY 2021

Shareholders’ equity
Capital stock
Balance at beginning of fiscal year

103,389

103,389

Balance at end of fiscal year

103,389

103,389

79,64179,641

(0)
0
0

0
—
245

0
79,641

245
79,887

1,125,738——

1,158,792
9,212
1,168,004(45,800)
79,768(0)(914)(47,187)
161,880—(371)

33,054
1,158,792

114,321
1,282,325(5,990)(5,932)(10)69
59(5,932)

(412)
125
(287)
(6,219)1,302,777——

1,335,890
9,212
1,345,102(45,800)
79,768
(10)
69
(914)
0
33,113
1,335,890(47,187)
161,880
(412)
125
(371)
245
114,279
1,459,381

Capital surplus
Balance at beginning of fiscal year
Changes during the fiscal year
Disposal of treasury stock
Transfer from retained earnings to capital surplus
Capital increase of consolidated subsidiaries
Total changes of items during the period
Balance at end of fiscal year
Retained earnings
Balance at beginning of fiscal year
Cumulative effect of changes in accounting policies
Restated balance
Changes during the fiscal year
Dividends from surplus
Net income attributable to owners of the parent
Transfer from retained earnings to capital surplus
Change of scope of consolidation
Total changes of items during the period
Balance at end of fiscal year
Treasury stock
Balance at beginning of fiscal year
Changes during the fiscal year
Purchase of treasury stock
Disposal of treasury stock
Total changes of items during the period
Balance at end of fiscal year
Total shareholders’ equity
Balance at beginning of fiscal year
Cumulative effect of changes in accounting policies
Restated balance
Changes during the fiscal year
Dividends from surplus
Net income attributable to owners of the parent
Purchase of treasury stock
Disposal of treasury stock
Change of scope of consolidation
Capital increase of consolidated subsidiaries
Total changes of items during the period
Balance at end of fiscal year

Asahi Kasei
Consolidated Results

May 13, 2022
10/21

Accumulated other comprehensive income
Net unrealized gain on other securities
Balance at beginning of fiscal year
Changes during the fiscal year
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at end of fiscal year
Deferred gains or losses on hedges
Balance at beginning of fiscal year
Changes during the fiscal year
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at end of fiscal year
Foreign currency translation adjustment
Balance at beginning of fiscal year
Changes during the fiscal year
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at end of fiscal year
Remeasurements of defined benefit plans
Balance at beginning of fiscal year
Changes during the fiscal year
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at end of fiscal year
Total accumulated other comprehensive income
Balance at beginning of fiscal year
Changes during the fiscal year
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at end of fiscal year
Non-controlling interests
Balance at beginning of fiscal year
Changes during the fiscal year
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at end of fiscal year
Total net assets
Balance at beginning of fiscal year
Cumulative effect of changes in accounting policies
Restated balance
Changes during the fiscal year
Dividends from surplus
Net income attributable to owners of the parent
Purchase of treasury stock
Disposal of treasury stock
Change of scope of consolidation
Capital increase of consolidated subsidiaries
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at end of fiscal year

Asahi Kasei
Consolidated Results

FY 2020

FY 202167,02791,887

24,86024,86091,887(25,600)(25,600)
66,287

(241)

(347)

(106)
(106)
(347)

5
5
(341)

13,02750,46237,43437,43450,462

116,763
116,763
167,225(23,275)(10,416)

12,85912,859(10,416)

5,274
5,274
(5,142)56,538

131,586

75,04975,049131,586

96,44396,443228,029

24,14527,0582,913
2,913
27,0584,347
4,347
31,405

1,383,460——

1,494,535
9,212
1,503,747(45,800)
79,768
(10)
69
(914)
0
77,962
111,075
1,494,535(47,187)
161,880
(412)
125
(371)
245
100,789
215,069
1,718,815

May 13, 2022
11/21

4. Statements of cash flows

Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Impairment loss
Amortization of goodwill
Increase in provision for grant of shares
Increase (decrease) in provision for periodic repairs(Decrease) increase in provision for product warranties
Increase (decrease) 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 notes, accounts receivable–trade, and contract
assetsDecrease (increase) in inventories
Increase in notes and accounts payable–trade
Increase 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

FY 2020

FY 2021150,906
108,369
1,937
24,903
148
2,033
(221)

215,121
119,738
6,811
28,391
60
(502)
233

9,891

(1,562)(4,303)(6,202)
3,209(3,451)(17,312)66(353)
10,6375,214(2,939)(5,696)
3,643(8,878)(26,545)
511
(912)
7,526
—

—

(45,911)

6,110
1,706
1,371
8,190
15,896
318,744
8,690(3,086)(70,672)
253,676(73,257)
21,392
10,184
10,546(19,112)238,843
7,212(3,647)(59,137)
183,271(6,262)
4,333(133,347)
656(16,945)(8,061)
20,264(3,267)
7,224(142,256)
1,280(27,452)(5,805)33,437(4,811)(80,912)(17,566)(6,144)
10,428(297)(157,751)—(6,102)2,782
52(221,019)

May 13, 2022
12/21

Cash flows from financing activities
Net (decrease) increase in short-term loans payable(Decrease) increase 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 (used in) provided by financing activities
Effect of exchange rate change on cash and cash equivalents
Net 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

FY 2020

FY 2021(168,641)(55,000)
143,467(16,936)
50,000(1,226)(10)
69(45,800)(1,198)65,63229,000896(51,094)
50,000(2,298)(412)
125(47,187)(2,190)

(307)

—

(287)
(95,869)
9,639
9,695
204,771(152)
42,321
21,02725,600216,235

1,769

1,112

216,235

242,948

VIII. Business combinations
1) Purchase of shares of Respicardia, Inc.
ZOLL Medical Corporation (ZOLL), a consolidated subsidiary of Asahi Kasei, has acquired Respicardia,
Inc.* (Respicardia), a U.S. medical equipment company which manufactures and sells the remedē®
System, an implantable neurostimulator device for the treatment of central sleep apnea (CSA). The
acquisition process was completed on April 9, 2021 (U.S. Eastern time).
* Registered in Delaware head office functions in Minnesota.
1. Outline of business combination(1) Name and nature of business of counterparty
Name of acquired company: Respicardia, Inc.
Nature of business: Development, manufacture, and sale of an implantable neurostimulator
device(2) Main reasons for the acquisition
With established businesses centered on cardiopulmonary resuscitation, notably defibrillators for
medical professionals, automated external defibrillators (AEDs), and LifeVest® wearable
defibrillators, ZOLL has sought to further expand in the field of acute critical care including
peripheral areas such as heart failure and respiratory dysfunction. Respicardia develops
innovative therapies for conditions with large unmet clinical needs. With this acquisition, ZOLL
will combine its expertise in cardiac and respiratory care with Respicardia’s novel remedē® System
to make a meaningful difference in the health and quality of life for many patients.
(3) Acquisition date
April 9, 2021
(4) Statutory form of business combination
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Stock purchase for mainly cash as consideration(5) Name of company after transaction
ZOLL Respicardia, Inc.
(6) Acquired voting right
Voting right before the acquisition:
0%
Voting right after the acquisition:
100%(7) Grounds for determining acquiring company
Stock purchase for mainly cash as consideration by a consolidated subsidiary
2. The period of acquired company’s results included in the consolidated financial statements
From April 9, 2021, to March 31, 2022
3. Cost of acquisition and details
Purchase consideration*

cashloans and accrued interest

Purchase price¥18,878 million¥11,775 million¥30,653 million* Including conditional consideration of ¥5,640 million (fair value)

4. Major acquisition related costs
Advisory fees and others: ¥17 million
5. Substance of conditional consideration specified in the stock purchase agreement and policy foraccounting treatment(1) Substance of conditional consideration
The agreement provides for additional payment based on the acquired company’s achievement ofcertain performance targets(2) Policy for accounting treatment
Variable portion of conditional consideration will be treated in accordance with Generally
Accepted Accounting Principles of the United States
6. Amount of goodwill, measurement principle, amortization method, and useful life
(1) Amount of goodwill:¥14,362 million(2) Measurement principle:
Goodwill is measured as the excess of the purchase price over the fair value of identifiable assets
acquired and liabilities assumed(3) Amortization method and useful life:
Straight-line method over 20 years
7. Details of assets acquired and liabilities assumed as of the acquisition dateCurrent assets¥408 million
Noncurrent assets¥16,185 million
Total assets¥16,593 million
Current liabilities¥278 million
Noncurrent liabilities¥24 million
Total liabilities¥301 million
8. Amount of identifiable intangible assets other than goodwill, its details and major weighted average
useful life

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(1) Purchase price allocated to intangible assets and its major items
Technology assets¥14,243 million
Customer relationships¥721 million
Trademarks¥623 million(2) Major weighted average useful life
Technology assets
13 years
Customer relationships
12 years
Trademarks
10 years
Total
13 years
9. Pro forma effects on the consolidated statements of income assuming the business combination
had been completed at the beginning of fiscal year, and method of calculation thereofInformation is omitted due to immateriality. This note is not subject to audit.

2) Purchase of additional shares in McDonald Jones Homes Pty Ltd
Asahi Kasei Homes Australia Pty Ltd, a consolidated subsidiary of Asahi Kasei, concluded an agreement
on April 16, 2021, to purchase additional shares in McDonald Jones Homes Pty Ltd (McDonald Jones), an
equity-method affiliate of Asahi Kasei. The transaction was completed on June 11, 2021, and McDonald
Jones became a consolidated subsidiary of Asahi Kasei.
1. Outline of business combination(1) Name and nature of business of counterparty
Name of acquired company: McDonald Jones Homes Pty Ltd
Nature of business: Construction of custom-built homes and sale of pre-built homes(2) Main reasons for the acquisition
In July 2017, Asahi Kasei acquired a 40% interest in McDonald Jones, a detached housing
company in Australia. Expertise of Asahi Kasei Homes Corp., a consolidated subsidiary of Asahi
Kasei, regarding industrialized housing provided valuable support for sales and marketing, andhelped to reduce costs by shortening the construction period. The acquisition of additional shares
will accelerate such measures and enable further market expansion and growth in the Australian
housing market, contributing to sustainable growth in corporate value for Asahi Kasei.
(3) Acquisition dateJune 11, 2021
(4) Statutory form of business combination
Stock purchase for cash as consideration(5) Name of company after transaction
McDonald Jones Homes Pty Ltd(6) Acquired voting right
Voting right before the acquisition:
Additionally acquired voting right:
Voting right after the acquisition:

40%
40%
80%

(7) Grounds for determining acquiring company
Stock purchase for cash as consideration by a consolidated subsidiary
2. The period of acquired business’s results included in the consolidated financial statements
From April 1, 2021, to March 31, 2022
3. Cost of acquisition and details
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Value of equity stake immediately prior to transaction
Additional purchase consideration
cash
Purchase price:¥9,555 million¥9,555 million¥19,110 million

4. Difference between cost of acquisition and total of individual transactions leading to the acquisition
Gain on step acquisitions: ¥1,700 million
5. Major acquisition related costs
Advisory fees and others: ¥117 million
6. Amount of goodwill, measurement principle, amortization method, and useful life
(1) Amount of goodwill:¥5,454 million(2) Measurement principle:
Goodwill is measured as the excess of the purchase price over the fair value of identifiable assets
acquired and liabilities assumed(3) Amortization method and useful life:
Straight-line method over 20 years
7. Details of assets acquired and liabilities assumed as of the acquisition dateCurrent assets¥24,301 million
Noncurrent assets¥19,877 million
Total assets¥44,178 million
Current liabilities¥23,084 million
Noncurrent liabilities ¥4,172 million
Total liabilities¥27,256 million
8. Amount of identifiable intangible assets other than goodwill, its details and major weighted average
useful life
(1) Purchased price allocated to intangible assets and its major items
Trademarks¥8,736 million
Customer relationships¥422 million(2) Major weighted average useful life
Trademarks
20 years
Customer relationships
5 years
Total
19 years

3) Purchase of shares of Itamar Medical Ltd.
ZOLL Medical Corporation (ZOLL), a consolidated subsidiary of Asahi Kasei, concluded an agreement on
September 13, 2021, to acquire all outstanding ordinary shares of Itamar Medical Ltd. (Itamar), an Israeli
medical device and digital health company focused on the integration of sleep apnea diagnosis into thecardiac patient care pathway. The acquisition closed on December 16, 2021 (US Eastern time).
1. Outline of business combination(1) Name and nature of business of counterparty
Name of acquired company: Itamar Medical Ltd.
Nature of business: Development, manufacture, and sale of diagnostic devices for sleep apnea(2) Main reasons for the acquisition
With established businesses centered on cardiopulmonary resuscitation, notably defibrillators for
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medical professionals, automated external defibrillators (AEDs), and LifeVest® wearable
defibrillators, ZOLL has sought ways to improve outcomes for patients in related areas such asheart failure and respiratory dysfunction.
There are two primary classifications of sleep apnea: obstructive sleep apnea (OSA) andcentral sleep apnea (CSA). While OSA results from a blockage of the upper airway, CSA occurs
when the brain fails to send appropriate signals to the breathing muscles that stimulate a regularbreathing pattern. Research has shown complex interrelationships between cardiovascular disease
and both obstructive sleep apnea (OSA) and central sleep apnea (CSA). OSA is associated withincreases in the incidence and progression of coronary heart disease, heart failure, stroke, and atrial
fibrillation, while CSA associated with Cheyne-Stokes respiration predicts incident heart failure
and atrial fibrillation, and strongly predicts mortality among patients with heart failure.
In April 2021, ZOLL acquired Respicardia, Inc., a U.S. medical equipment company which
manufactures and sells the remedē® System, an implantable neurostimulator device for thetreatment of CSA. The acquisition of Itamar allows ZOLL to extend its business in this field.
(3) Acquisition date
December 16, 2021
(4) Statutory form of business combination
Stock purchase for cash as consideration(5) Name of company after transaction
Itamar Medical Ltd.
(6) Acquired voting right
Voting right before the acquisition:
0%
Voting right after the acquisition:
100%(7) Grounds for determining acquiring company
Stock purchase for cash as consideration by a consolidated subsidiary
2. The period of acquired business’s results included in the consolidated financial statements
From December 16, 2021, to March 31, 2022
3. Cost of acquisition and details
Purchase consideration
Purchase pricecash¥60,855 million¥60,855 million

4. Major acquisition related costs
Advisory fees and others: ¥844 million
5. Amount of goodwill, measurement principle, amortization method, and useful life
(1) Amount of goodwill:¥37,776 million** Based on provisional calculation as purchase price allocation is incomplete due to the shorttime between closing of the transaction and fiscal year end preventing completion ofidentification and estimation of the value of identifiable assets and liabilities.
(2) Measurement principle:
Goodwill is measured as the excess of the purchase price over the fair value of identifiable assets
acquired and liabilities assumed(3) Amortization method and useful life:
Not determined
6. Details of assets acquired and liabilities assumed as of the acquisition dateCurrent assets¥9,896 million
Noncurrent assets¥17,839 million
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Total assets¥27,735 million
Current liabilities¥4,398 million
Noncurrent liabilities¥258 million
Total liabilities¥4,656 million
7. Amount of identifiable intangible assets other than goodwill, its details and major weighted average
useful life
(1) Purchase price allocated to intangible assets and its major items
Technology assets¥12,563 million
Trademarks¥3,084 million
Customer relationships ¥1,656 million(2) Major weighted average useful life
Technology assets
9 years
Trademarks
14 years
Customer relationships
13 years
Total
10 years
8. Purchase price allocation
Purchase price allocation is incomplete because calculation of fair value of assets and liabilities has
not been completed as of the end of the consolidated fiscal year. Provisional treatment is based onrational information available at that time.
9. Pro forma effects on the consolidated statements of income assuming the business combination
had been completed at the beginning of fiscal year, and method of calculation thereofInformation is omitted due to immateriality. This note is not subject to audit.

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IX. Segment Information
1. Reporting segments(1) Fiscal 2020

692,63922

407,90424

2,091,770
5,561

14,28141,0102,106,051
46,572996,743
66,461
1,567,831

692,661
63,548568,563

407,928
67,603734,658

2,097,331
197,6122,871,052

55,2923,800
92,8782,152,623
201,413
2,963,930

Subtotal

991,227
5,515

HealthCare

Total

AssetsOthers1

Total
Operating income

Homes

Sales
Customers
Intersegment

Material

Reporting segments

Other items
Depreciation and
59,01911,18031,106
101,305
1,538
102,843
amortization2
Amortization of goodwill—
11,93491
12,87824,90324,903
Investments in associates
accounted for using
62,204
14,121
2,192
78,517
19,08597,602equity method
Increase in property, plantand equipment, and100,458
18,65815,934135,050809
135,859
intangible assets
1 Plant and environmental engineering, research and analysis, employment agency/staffing operations, etc.
2 Excluding amortization of goodwill.

(2) Fiscal 2021

833,351

415,883

2,447,479

13,8382,461,317

6,705
1,204,951

66
833,41720
415,903

6,791
2,454,270

41,78955,627

48,5802,509,898

110,274
1,781,037

73,159639,253

52,159861,139

235,591
3,281,429

3,247
101,665

238,838
3,383,094

Subtotal

1,198,246

HealthCare

Total

AssetsOthers1

Intersegment
Total
Operating income

Homes

Sales
Customers

Material

Reporting segments

Other items
Depreciation and
63,675
13,84734,504
112,026
1,562
113,588
amortization2
Amortization of goodwill
12,775556
15,05928,391—
28,391
Investments in associates
accounted for using
70,3368,342
2,314
80,992
20,504
101,496
equity method
Increase in property, plantand equipment, and120,751
18,60024,882
164,233
3,533
167,766
intangible assets
1 Plant and environmental engineering, research and analysis, employment agency/staffing operations, etc.
2 Excluding amortization of goodwill

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2. Differences between total amounts of reporting segments and recorded amounts on consolidated
financial statements
Sales
Total of reporting segments
Net sales in “Others” category
Elimination of intersegment transactions
Net sales on consolidated statements of income

Fiscal 2020
2,097,331
55,292(46,572)
2,106,051

Fiscal 2021
2,454,270
55,627(48,580)
2,461,317

Operating income
Total of reporting segments
Operating income in “Others” category
Elimination of intersegment transactions
Corporate expenses, etc.1
Operating income on consolidated statements of income

Fiscal 2020
197,6123,800
551(30,156)
171,808

Fiscal 2021
235,591
3,247
189(36,380)
202,647

1

Corporate expenses, etc. include corporate revenue, basic research expense, and group management
expense, etc. which are not allocated to reporting segments.

AssetsTotal of reporting segments
Assets in “Others” category
Elimination of intersegment transactions
Corporate assets1
Total assets on consolidated balance sheets
1

Fiscal 2020
2,871,052
92,878(602,842)
557,853
2,918,941

Fiscal 2021
3,281,429
101,665(532,202)
498,183
3,349,075

Corporate assets include assets of Asahi Kasei Corp.—surplus operating funds (cash and deposits), longterm investment capital (investment securities, etc.), and land, etc.

X. Geographic information
1. Fiscal 2020
(1) Net salesJapan
1,204,218

United States309,723(2) Property, plant and equipment
Japan
United States
518,408
107,365

China
198,903

Other regions
393,206

Other regions
91,489Total
717,262

China
238,681

Other regions
588,286

Other regions
116,578

Total
805,215

Total
2,106,051

2. Fiscal 2021
(1) Net salesJapan
1,276,878

United States
357,472(2) Property, plant and equipment
Japan
United States
569,214
119,423

Asahi Kasei
Consolidated Results

Total
2,461,317

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XI. Important Subsequent Events
1) Fire at Bemberg Plant
On April 9, 2022, a fire occurred at the Bemberg Plant of Asahi Kasei (Nobeoka, Miyazaki, Japan).
While the fire was extinguished the following day, the state of damage, prospects for recovery, and theforthcoming effect on business activity are currently being investigated, making it difficult to rationallyestimate the amount of loss incurred due to the fire.
2) Acquisition of Bionova Holdings, Inc. in the U.S.
Asahi Kasei Medical Co., Ltd. (Asahi Kasei Medical), a consolidated subsidiary of Asahi Kasei, concluded
an agreement on April 14, 2022 (JST) through Asahi Kasei Bioprocess Holdings, Inc., a U.S. subsidiary ofAsahi Kasei Medical, to wholly acquire Bionova Holdings, Inc. (Registered in Delaware, U.S.; CEO:
Darren Head), the 100% parent company of Bionova Scientific, LLC, a provider of contract processdevelopment services and GMP (Good Manufacturing Practice) compliant contract manufacturing services
to biopharmaceutical companies, especially those developing next-generation antibody based drugs.
1. Main reason for the acquisition
This acquisition will enable Asahi Kasei Medical to add a biopharmaceutical CDMO (contractdevelopment and manufacturing organization) to its bioprocess business. As process development
and GMP manufacturing operations are key to the overall success of biopharmaceutical customers’
businesses and the launch of new drugs, being able to offer a broader range of critical know-how
driven services to biopharmaceutical customers will allow Asahi Kasei Medical to grow its bioprocessbusiness more rapidly by better serving the industry and by reaching a broader range of customers,
including those at the cutting edge of next generation biopharmaceuticals.

2. Corporate profile of Bionova Holdings, Inc.
Name:
Bionova Holdings, Inc.
CEO:
Darren Head
Registered Office:Wilmington, Delaware, USA
Establishment:
2019
Operations:
Biopharmaceutical manufacturing process development, GMP-compliant
manufacturing of current and next-generation antibody drugs (all via its
100% owned operating subsidiary, Bionova Scientific, LLC)
3. Outline of the acquisition(1) Methods and procedures
The agreement is among Asahi Kasei, Asahi Kasei Bioprocess Holdings, Inc., and Bionova
Holdings, Inc. and its shareholders. Closing of the acquisition is subject to receipt of necessary
regulatory clearances.
(2) Transaction price (reference value)
The transaction price is approximately US$333 million, on a cash and debt free basis as of the timeof closing.
(3) Change in percentage of voting rights
Voting rights before the acquisition:
0%
Voting rights after the acquisition: 100%

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