Asahi Kasei Corporation
Head Office: 2-6, Dojimahama 1-chome, Kita-ku, Osaka, JapanTokyo Head Office: 1-2, Yurakucho 1-chome, Chiyoda-ku, Tokyo, Japan
Security code: 3407
Contact: Corporate Communications, Phone +81-3-3507-2060, Fax +81-3-3507-2495
October 31, 2006

Consolidated Results for 1st Half Fiscal Year 2006
April 1, 2006 – September 30, 2006

(All figures in millions of yen, rounded to the nearest million, unless otherwise specified)

I. Summary of Consolidated Results
1. Results for fiscal half ended September 30, 2006
(1) Operating results (percent change from first half of previous year in brackets)
Fiscal half ended September
Net sales
Operating profit
Ordinary profit
Net income
Net income per share*
Diluted net income per share*

2006
768,878 [+7.0%]
50,690 [+6.8%]
48,765 [+3.2%]
28,958 [+13.9%]
20.69—

2005
718,458 [+9.0%]
47,459 [−13.9%]
47,244 [−14.6%]
25,413 [−5.5%]
18.15
—
* Yen

Notes:
1. Equity in profit of unconsolidated subsidiaries and affiliates: ¥517 million; during
first half of previous fiscal year, ¥658 million.
2. Average shares outstanding, consolidated: 1,399,697,913; during first half ofprevious fiscal year, 1,400,259,042.
3. Change in method of accounting: None.

(2) Financial position
At end ofTotal assets
Net assets
Net worth/total assets
Net worth per share*Sep. 2006
1,459,818
620,11842.0%
438.06

Mar. 2006
1,376,044
594,21143.2%
424.34* Yen

Note: Net assets at end of March 2006 does not include minority interests. Net
worth at end of March 2006 is the same as shareholders’ equity. Net worth at end of
September 2006 comprises shareholders’ equity and valuation, translation adjustment
and others.

Asahi Kasei
Consolidated Results

October 31, 2006
p. 1/11

(3) Cash flows
Fiscal half ended September
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Cash and cash equivalents at end of period

2006
47,660(40,913)(2,104)93,362

2005
33,153(27,473)(13,680)
60,759(4) Scope of consolidation, application of equity method
No. of consolidated subsidiaries: 109
No. of unconsolidated subsidiaries for which the equity method is applied:No. of affiliate companies for which the equity method is applied: 2429(5) Changes in scope of consolidation, application of equity method
No. of newly included consolidated subsidiaries: 4
No. of consolidated subsidiaries newly excluded: 0
No. of unconsolidated subsidiaries and affiliate companies for which the equity
method is newly applied: 1
No. of unconsolidated subsidiaries and affiliate companies newly excluded fromapplication of the equity method: 3
2. Forecast for fiscal year ending March 31, 2007*
Net sales
Ordinary profit
Net incomeNote:

1,612,000
112,000
64,000Net income per share, ¥45.73* 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.
II. Overview of Consolidated Results
1. Consolidated group results
The Japanese economy continued its recovery during the six-month period, with healthy
corporate earnings, a high level of private-sector capital investment, and ongoing
improvement in the employment outlook. The operating climate neverthelessremained challenging, with persistently elevated prices for petroleum and petrochemical
feedstocks such as naphtha necessitating increases in product sales prices.
Consolidated net sales grew by ¥50.4 billion from a year ago to ¥768.9 billion, a7.0% increase. Sales growth was greatest in chemicals operations, with sales prices
rising to compensate for increased feedstock costs. Operating profit grew by ¥3.2billion to ¥50.7 billion, a 6.8% increase. Operating profit growth was greatest inelectronics operations, with strong demand in IT and home electronics applications, andbenefited from a lower yen exchange rate. Ordinary profit grew by ¥1.5 billion toAsahi Kasei
Consolidated Results

October 31, 2006
p. 2/11¥48.8 billion, a 3.2% increase.
13.9% increase.

Net income grew by ¥3.5 billion to ¥29.0 billion, a

2. Results by operating segment
CHEMICALS
Sales for the segment grew by ¥48.7 billion to ¥367.5 billion, a 15.3% increase.
Operating profit grew by ¥0.3 billion to ¥20.5 billion, a 1.7% increase.
Operating profit in volume products, comprising chemicals/derivative products andpolymer products, was on par with a year ago. A sharp rise in feedstock costs was
essentially offset by sales price increases and by increased profitability in thenylon-related operations of adipic acid and Leona™ nylon 66 resin and filament.
Operating profit in specialty products grew with increased shipments of Hipore™
Li-ion rechargeable battery membrane separators, export of membrane-process
chlor-alkali electrolyzers to China, and increased shipments of ion-exchange membranes
for chlor-alkali.
HOMES
Sales for the segment decreased by ¥16.2 billion to ¥169.1 billion, an 8.7% decline.
Operating profit decreased by ¥3.0 billion to ¥5.4 billion, a 35.9% decline.
Operating profit from the sale of new homes decreased, largely the effect of adecrease in orders until the middle of last year and the completion of large condominium
construction projects during the year-ago period. New orders for order-built homes
grew by ¥5.7 billion to ¥156.1 billion as marketing efforts were focused on customers
seeking to replace older houses.
Operating profit in housing-related operations increased. Real estate operations
had rising income from rentals. Remodeling operations also grew.
PHARMA
Sales for the segment decreased by ¥2.5 billion to ¥51.1 billion, a 4.6% decline.
Operating profit grew by ¥1.6 billion to ¥7.2 billion, a 28.7% increase.
Sales in pharmaceutical operations decreased as an effect of reimbursement pricecuts and lower sales of pharmaceutical intermediates. Operating profit grew withincreased shipments of Flivas™ therapy for benign prostatic hyperplasia and income
from licensing fasudil hydrochloride, a Rho-kinase inhibitor.
Operating profit in devices grew with increased shipments of APS™
polysulfone-membrane artificial kidneys enabled by expanded production capacity,heightened productivity at the new polysulfone hollow-fiber membrane spinning plant
which began operation in Nobeoka last year, and increased exports of Planova™ virus
removal filters.

Asahi Kasei
Consolidated Results

October 31, 2006
p. 3/11FIBERSSales for the segment grew by ¥7.1 billion to ¥50.6 billion, a 16.3% increase.
Operating profit decreased by ¥1.0 billion to ¥1.3 billion, a 42.8% decline.
Shipments of Roica™ elastic polyurethane filament grew, but operating profit
decreased with lower market prices and higher feedstock costs. The Dorlastan™
elastic polyurethane filament business acquired from Lanxess of Germany operated at aloss.
Shipments of Bemberg™ cupro fiber grew, notably in overseas markets and forlinings in Japan, but operating profit decreased with high feedstock costs and the effectof a tornado in September.
Operating profit in nonwovens decreased as sales price increases were not sufficient
to offset elevated feedstock costs.
ELECTRONICS MATERIALS AND DEVICES
Sales for the segment grew by ¥7.6 billion to ¥56.4 billion, a 15.7% increase.
Operating profit grew by ¥4.0 billion to ¥12.4 billion, a 47.9% increase.
Operating profit in electronics devices grew with generally strong demand in IT andhome electronics applications. Growth in shipments was most notable for LSIs and forHall ICs used in cell phones.
Operating profit in electronics materials grew with increased shipments ofSunfort™ photosensitive dry film resist enabled by a large capacity expansion at a plantin China, and with increased shipments of ultra-thin glass fabric for printed wiringboards.
CONSTRUCTION MATERIALS
Sales for the segment grew by ¥2.2 billion to ¥30.6 billion, a 7.7% increase. Operatingprofit grew by ¥0.7 billion to ¥2.5 billion, a 37.9% increase.
Operating profit in building materials and housing materials increased as generaldemand for Hebel™ autoclaved lightweight concrete (ALC) panels grew and shipmentsof Hebel Powerboard™ ALC panels grew with a successful expansion of the user base.
Operating profit in foundation systems increased as new applications continued togrow for Eazet™ and ATT Column™ piles for small-scale construction.
Operating profit in insulation materials increased as shipments of Neoma™
high-performance phenolic foam panels grew with a successful expansion of the userbase.
LIFE & LIVING
Sales for the segment were unchanged at ¥26.7 billion. Operating profit decreased by¥0.3 billion to ¥2.2 billion, a 12.4% decline.
Shipments of Saran Wrap™ cling film increased and exports of Saran™ fiber grew,
but operating profit in home-use products decreased with higher feedstock costs andadvertising expenses.
Operating profit in packaging materials decreased moderately, as sales priceincreases and fixed cost reductions were not sufficient to offset elevated feedstock costs.
SERVICES, ENGINEERING AND OTHERS
Sales for the segment grew by ¥3.5 billion to ¥16.9 billion, a 26.0% increase.
Operating profit grew by ¥1.0 billion to ¥2.3 billion, an 80.7% increase.
Operating profit in engineering operations grew with a climate of increasing capital
investment in plant and equipment both in Japan and overseas. Operating profit inpersonnel staffing and placement operations grew with increased sales.

Asahi Kasei
Consolidated Results

October 31, 2006
p. 4/11

III. Consolidated Statements of IncomeNet salesCost of sales
Gross profit
Selling, general andadministrative expenses
Operating profit
Non-operating income
Non-operating expenses
Ordinary profit
Special gains
Special losses
Income before income taxes
and minority interests
Net income

Asahi Kasei
Consolidated Results

Fiscal half
ended Sep.
2006
768,878

Fiscal half
ended Sep.
2005
718,458

584,502
184,375

Increase(decrease)

Percentchange541,146
177,31150,42043,356
7,064

+7.0
+8.0
+4.0

133,685

129,853

3,832

+3.0

50,6903,970
5,895
48,765
1,160
3,994

47,4594,790
5,004
47,244325
6,948

3,231(820)
891
1,521
835(2,954)

+6.8
—
—+3.2
—
—

45,931

40,622

5,309

+13.1

28,95825,413

3,545

+13.9

October 31, 2006
p. 5/11

IV. Consolidated Balance Sheets

AssetsCurrent assets
Fixed assets
Property, plant and equipment
Intangible fixed assets
Investments and other assets
Total assets
Liabilities
Current liabilities
Long-term liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock, at cost
Valuation, translation adjustment
and others
Net unrealized gain on securities
Deferred profit on hedges
Revaluation surplus
Foreign currency translation
adjustment
Minority interest in consolidated
subsidiaries
Total net assets
Total liabilities, and net assets
Minority interest in consolidated
subsidiaries
Shareholders’ equity
Issued and outstanding
Capital surplus
Retained earnings
Revaluation surplus
Net unrealized gains on securities
Foreign currency translation
adjustment
Common stock in treasury, at cost
Total liabilities, minority interestand shareholders’ equity

Asahi Kasei
Consolidated Results

At end ofSep. 2006

At end ofMar. 2006

Increase(decrease)715,880
743,938
432,089
30,108281,740
1,459,818

644,192
731,852
414,368
33,094284,390
1,376,044

71,68812,086
17,721(2,986)(2,650)83,774

517,047
322,653
839,700

439,724
335,193774,916

77,323(12,540)
64,784529,429
103,389
79,444364,230(17,633)

—
—
—
—
—

—
—
—
—
—

83,588——82,466
79
966

—
—
—

—
—
—

77

—

—

7,101

—

—

620,118
1,459,818

—
—

—
—

—

6,917

—

—
—
—
—
——

594,211103,389
79,433
342,450966
85,384———————(99)——(17,311)——

1,376,044—

October 31, 2006
p. 6/11

V. Cash Flows
Fiscal half ended September
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Effect of exchange rate changes on cash andcash equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents held by newly
consolidated subsidiaries
Cash and cash equivalents at end of period

2006
47,660(40,913)(2,104)

2005
33,153(27,473)(13,680)

94

161

4,736

(7,839)86,39068,4562,236

142

93,36260,759VI. Segment Information
1. Industry segments

Homes

PharmaFibersElectronics
Materials
and Devices

Services,
Engineeringand Others

Combined

Corporate
Expenses*andEliminations

Consolidated

367,483
7,968
375,451

169,102148
169,249

51,121
4
51,12550,639899
51,53856,368 30,571 26,721
615 6,097 1,908
56,984 36,668 28,629

16,873
15,43332,306

768,878
33,072801,950—(33,072)(33,072)

768,878—
768,878354,905

163,869

43,91550,23644,625 34,141 26,425

29,964

748,080(29,892)

718,188

20,545

5,380

7,211

1,303

12,3582,342

53,870(3,180)50,690Asahi Kasei
Consolidated Results

Construction
Materials

Chemicals
Sales
Customers
Intersegment
Total
Operatingexpenses
Operating profit

Life & Living(1) Fiscal half ended September 30, 2006

2,526

2,205

October 31, 2006
p. 7/11Fibers

Electronics
Materials andDevices

Services,
Engineeringand Others

Combined

Corporate
Expenses*andEliminations

Consolidated

185,30645
185,351

53,577
16
53,59343,5481,334
44,882

48,738 28,391 26,723
466 5,703 1,872
49,204 34,093 28,595

13,38812,502
25,889718,458
29,944
748,402—(29,944)(29,944)718,458—
718,458

306,585

176,959

47,98942,60540,849 32,261 26,079

24,593697,921(26,922)670,999

20,209

8,392

5,604

2,277

8,355

1,296

50,481(3,022)47,4591,832Life & Living

Pharma318,787
8,008
326,795

Construction
Materials

Homes

Sales
Customers
Intersegment
Total
Operatingexpenses
Operating profit

Chemicals(2) Fiscal half ended September 30, 2005

2,516

* Operating expenses for which allocation to operating segments was not feasible were
¥7,152 million in the fiscal half ended September 30, 2006 and ¥6,987 million in thefiscal half ended September 30, 2005.
2. Geographic information(1) Fiscal half ended September 30, 2006
Segment information is not shown because over 90% of total sales were fromoperations domiciled in Japan and over 90% of total assets were located in Japan.
(2) Fiscal half ended September 30, 2005
Segment information is not shown because over 90% of total sales were fromoperations domiciled in Japan and over 90% of total assets were located in Japan.
3. Overseas sales(1) Fiscal half ended September 30, 2006
Overseas sales
Consolidated net sales
Overseas sales/
consolidated net sales

Asahi Kasei
Consolidated Results

East Asia*
119,972—

Other regions†
89,795—

Total
209,767
768,878

15.6%

11.7%

27.3%

October 31, 2006
p. 8/11(2) Fiscal half ended September 30, 2005
Overseas sales
Consolidated net sales
Overseas sales/
consolidated net sales

East Asia*
105,055—

Other regions†
71,267—Total176,322718,458

14.6%

9.9%

24.5%

* China (including Hong Kong), Korea, and Taiwan.
† Southeast Asia (except East Asia), US, Europe, and others.
VII. Overview of Operating Segments
1. Consolidated net sales by operating segment

Chemicals
Homes
PharmaFibersElectronics Materials
and Devices
Construction
Materials
Life & Living
Services, Engineeringand Others
Total

Asahi Kasei
Consolidated Results

Fiscal half ended
September 2006
Net sales % of total
367,48347.8
169,10222.0
51,121
6.6
50,639
6.6

Fiscal half ended
September 2005
Net sales % of total
318,78744.4
185,306
25.8
53,577
7.4
43,548
6.1

Increase(decrease)

Percentchange48,696(16,204)(2,456)
7,091

+15.3
−8.7
−4.6
+16.3

56,368

7.3

48,738

6.8

7,630

+15.7

30,571

4.0

28,391

3.9

2,180

+7.7

26,721

3.5

26,723

3.7

(2)

−0.0

16,873

2.2

13,388

1.9

3,485

+26.0

768,878

100.0

718,458

100.0

50,420+7.0

October 31, 2006
p. 9/11

2. Major products, by operating segment
Chemicals
Chemicals and derivative products• Ammonia• Nitric acid
• Caustic soda
• Acrylonitrile (AN)• Styrene• Methyl methacrylate (MMA)• Polymethyl methacrylate (PMMA)• High-compound fertilizers• Adipic acidPolymer products• Suntec™ polyethylene (PE)• Stylac™-AS styrene-acrylonitrile (SAN)• Stylac™-ABS acrylonitrile-butadiene-styrene• Synthetic rubber and elastomer• Tenac™ polyacetal• Xyron™ modified polyphenylene ether (mPPE)• Leona™ nylon 66 polymer and filamentSpecialty products• Coating materials• Latex• Ceolus™ microcrystalline cellulose• Explosives• Explosion-bonded metal clad
• APR™ photosensitive resin• AFP™ photosensitive plates• Printing plate making systems• Microza™ UF and MF membranes and systems• Hipore™ microporous membrane• Ion-exchange membranes and electrolysis systems
Homes• Hebel Haus™ houses• Hebel Maison™ apartments• Condominiums• Remodeling• Real estate• Residential land development• Home financing

Asahi Kasei
Consolidated Results

October 31, 2006
p. 10/11

Pharma• Elcitonin™, Bredinin™, Flivas™, Toledomin™, and other pharmaceuticals• Pharmaceutical intermediates• Functional food additives• Diagnostic reagents• APS™ artificial kidneys• Sepacell™ leukocyte reduction filters• Cellsorba™ leukocyte adsorption columns• Planova™ virus removal filters• Contact lenses
Fibers• Roica™ elastic polyurethane filament (spandex)• Eltas™ spunbond, Lamous™ artificial suede, and other nonwovens• Bemberg™ cuprammonium rayon (cupro)• Polyester filament
Electronics Materials and Devices• Pimel™ photosensitive polyimide precursor (PSPI)• Sunfort™ photosensitive dry film resist (DFR)• Photomask pellicles• Luminous™ plastic optical fiber• LSIs• Hall elements• Glass fabricConstruction Materials• Hebel™ autoclaved lightweight concrete (ALC) panels• Steel-frame structural components• Piles and foundations systems• Neoma™ foam insulation panels• Artificial fish reefs and marine structures
Life & Living• Saran Wrap™ cling film
• Ziploc™ storage bags
• Film• Sheet• FoamServices, Engineering and Others• Plant engineering• Environmental engineering• Personnel staffing and placement• Think tank services

Asahi Kasei
Consolidated Results

October 31, 2006
p. 11/11