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
Board of Directors Meeting: May 8, 2007
May 8, 2007

Consolidated Results for Fiscal Year 2006
April 1, 2006 – March 31, 2007
(All figures in millions of yen, rounded to the nearest million, unless otherwise specified)
I. Summary of Consolidated Results
1. Results for fiscal year ended March 31, 2007
(1) Operating results (percent change from previous year in brackets)
Fiscal year ended March
Net sales
Operating profit
Ordinary profit
Net income
Net income per share*
Diluted net income per share*
Net income/shareholders’ equity
Ordinary profit/total assets
Operating profit/net sales

2007
1,623,791 [+8.4%]
127,801 [+17.5%]
126,507 [+21.4%]
68,575 [+14.9%]
49.00
—
11.1%
8.9%
7.9%

2006
1,498,620 [+8.8%]
108,726 [−6.1%]
104,166 [−7.7%]
59,668 [+5.7%]
42.46
—
10.8%
7.9%
7.3%
* Yen

Note:
Equity in profit of unconsolidated subsidiaries and affiliates:
during previous fiscal year, ¥536 million.

¥2,647 million;(2) Financial position
At fiscal year-end, March
Total assets
Net assets
Net worth/total assets
Net worth per share*2007
1,459,922
653,51044.2%
461.502006
1,376,044
594,21143.2%
424.34* Yen

Note:
Net assets at end of March 2006 does not include minority interests. Net worth atend of March 2006 is the same as shareholders’ equity. Net worth at end of March
2007 comprises shareholders’ equity and valuation, transition adjustment andothers. Shareholders’ equity as of March 2007 is ¥645,655 million.

Asahi Kasei
Consolidated Results

May 8, 2007
p. 1/11

(3) Cash flows
Fiscal year ended March
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Cash and cash equivalents at end of year2007
128,432(81,347)(36,025)
101,719

2006
108,620(60,373)(30,881)
86,390II. Cash Dividends
Fiscalyear
ending
March
2006
2007
2008
(estimate)

Cash dividends per share*

Dividends
payment
amountPayout ratio(consolidated)

Cash dividends/
net assets(consolidated)

InterimYear-endTotal
annual

5.00
5.00

5.00
7.00

10.00
12.00

14,00016,793

23.6%
24.5%

2.5%
2.7%

6.00

7.00

13.00

—

26.0%

—
* Yen

III. Estimate for Fiscal Year Ending March 31, 2008

Net sales
Operating profit
Ordinary profit
Net income
Net income per share*

For semiannual
period ending
September 2007
802,000
50,00049,50025,50018.23

For fiscal year
1,682,000
126,000
123,500
70,000
50.03
* 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 whichcannot be foreseen.
IV. Other Information(1) Changes in scope of consolidation, application of equity method
No. of newly included consolidated subsidiaries: 6
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) Change in method of accounting:(i) Change by revision of accounting standard: Yes(a) Accounting Standard for Presentation on Net Assets in the Balance Sheet(b) Accounting Standard for Directors’ Bonus(c) Accounting Standard for Business Combinations and Accounting Standard forBusiness Divestitures.
(ii) Changes other than the above:
Asahi Kasei
Consolidated Results

No
May 8, 2007
p. 2/11

(3) Number of shares outstanding
Fiscal year ended March
Number of shares outstanding at year end
Number of treasury stocks at year end

2007
1,402,616,332
3,570,390

2006
1,442,616,332
42,799,834

Note:
Average number of shares outstanding, which is the basis for calculation of
consolidated net income per share: 1,399,461,935; during previous fiscal year,
1,400,108,810.
V. Summary of Non-Consolidated Results
1. Results for fiscal year ended March 31, 2007
(1) Operating results (percent change from previous year in brackets)
Fiscal year ended March
Net sales
Operating profit
Ordinary profit
Net income
Net income per share*
Diluted net income per share*2007
42,758 [+0.3%]
28,216 [+2.9%]
29,069 [+7.6%]
28,867 [−0.5%]
20.63
—

2006
42,649 [+40.7%]
27,410 [+37.4%]
27,013 [+32.9%]
29,010 [+59.7%]
20.67
—
* Yen

(2) Financial position
At fiscal year-end, March
Total assets
Net assets
Net worth/total assets
Net worth per share*2007
706,186
411,63858.3%
294.18

2006
706,371399,74956.6%
285.52* Yen

2. Estimate for fiscal year ending March 31, 2008

Net sales
Operating profit
Ordinary profit
Net income
Net income per share*

For semiannual
period ending
September 2007
23,50015,50016,00018,00012.86

For fiscal year
42,50026,50027,50031,000
22.15
* 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 whichcannot be foreseen.

Asahi Kasei
Consolidated Results

May 8, 2007
p. 3/11

VI. Overview of Consolidated Results
1. Consolidated group results
Although consumer spending remained moderate, the Japanese economy grew withstrong corporate earnings, an improved employment outlook, and increased
private-sector capital investment. The operating climate nevertheless remained
challenging, with persistently elevated prices for petroleum and petrochemical
feedstocks such as naphtha necessitating cost-cutting measures and sales priceincreases.
Consolidated net sales grew by ¥125.2 billion from a year ago to ¥1,623.8 billion, an
8.4% increase. Sales growth was greatest in chemicals operations, with product prices
rising to compensate for increased feedstock costs. Operating profit grew by ¥19.1
billion to ¥127.8 billion, a 17.5% increase. Operating profit growth was greatest inchemicals operations, with strong overseas market conditions, pharmaceuticals
operations, with significant licensing income, and in electronics operations, with strong
demand in consumer electronics applications. Ordinary profit grew by ¥22.3 billion to¥126.5 billion, a 21.4% increase. Net income grew by ¥8.9 billion to ¥68.6 billion, a
14.9% increase.
2. Results by operating segment
CHEMICALS
Sales for the segment grew by ¥92.2 billion to ¥752.6 billion, a 14.0% increase.
Operating profit grew by ¥11.5 billion to ¥52.0 billion, a 28.3% increase.
Sales and operating profit in volume products, comprising chemicals/derivative
products and polymer products, increased. Product price increases and strong overseas
demand helped to overcome higher feedstock costs. In chemicals and derivative
products, operating profit increased with strong overseas demand for acrylonitrile andstyrene, and with a sharp rise in the market price of adipic acid due to a tight market
balance. In polymer products, profitability of Leona™ nylon 66 resin and filament
increased.
Sales and operating profit in specialty products grew with increased shipments ofHipore™ Li-ion rechargeable battery separators following plant expansion, export ofmembrane-process chlor-alkali electrolyzers to China, and increased shipments ofion-exchange membranes for chlor-alkali.
HOMES
Sales for the segment grew by ¥1.2 billion to ¥405.7 billion, a 0.3% increase.
Operating profit decreased by ¥0.7 billion to ¥27.5 billion, a 2.5% decline.
Unit prices of order-built homes increased, but the number of deliveries of bothorder-built homes and condominiums declined, and sales and operating profit in housing
operations decreased. Marketing efforts for order-built homes were focused on eliciting
demand for rebuilding, but new orders worth ¥303.4 billion received during the period
were ¥10.0 billion less than a year ago.
Sales and 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 ¥1.4 billion to ¥104.5 billion, a 1.3% decline.
Operating profit grew by ¥2.8 billion to ¥13.9 billion, a 25.5% increase.
Sales in pharmaceuticals operations decreased with reimbursement price cuts anddecreased shipments of pharmaceutical intermediates. Operating profit grew withlicensing income for fasudil hydrochloride rho-kinase inhibitor.
Sales and operating profit in devices grew with increased shipments of APS™

Asahi Kasei
Consolidated Results

May 8, 2007
p. 4/11polysulfone-membrane artificial kidneys and Planova™ virus removal filters, and withmeasures to reduce operating costs.
FIBERS
Sales for the segment grew by ¥16.9 billion to ¥106.6 billion, an 18.9% increase.
Operating profit grew by ¥0.1 billion to ¥4.2 billion, a 3.4% increase.
Sales of elastic polyurethane filament grew with increased shipments of Roica™,
improved market conditions, and the inclusion of the Dorlastan™ business acquired
from Lanxess, but operating profit decreased as the Dorlastan™ business operated at aloss. Roica™ production equipment is being installed at the Dorlastan™ plants in the
US and Europe, and the business is forecast to become profitable in fiscal year 2007.
Sales and operating profit in Bemberg™ cupro grew with increased exports.
Nonwovens operations were impacted by the effect of elevated feedstock costs, but sales
and operating profit grew with increased shipments of Lamous™ artificial suede in car
seat applications.
ELECTRONICS MATERIALS AND DEVICES
Sales for the segment grew by ¥9.2 billion to ¥112.1 billion, a 9.0% increase.
Operating profit grew by ¥3.3 billion to ¥22.6 billion, a 17.0% increase.
Sales and operating profit in electronic devices grew as shipments of LSIs andmagnetic sensors increased with strong demand in cell phone and home electronics
applications.
Sales and operating profit in electronic materials grew as shipments of Sunfort™
photosensitive dry film resist increased following a large expansion of production
capacity and shipments of ultra-thin grades of glass fabric for printed circuit boards
increased.
CONSTRUCTION MATERIALS
Sales for the segment grew by ¥4.3 billion to ¥60.8 billion, a 7.6% increase. Operating
profit grew by ¥1.2 billion to ¥5.0 billion, a 32.0% increase.
Building materials and housing materials operations were affected by highfeedstock and fuel costs for production of Hebel™ autoclaved lightweight concrete (ALC)
panels, but sales and operating profit grew with measures to reduce operating costs andhigher sales prices.
Sales and operating profit in foundation systems grew with an expansion of new
applications for Eazet™ and ATT Column™ piles for small-scale construction. Sales
and operating profit in insulation materials grew with a successful expansion of the userbase for Neoma™ high-performance phenolic foam panels resulting in increased
shipments.
LIFE & LIVING
Sales for the segment grew by ¥0.6 billion to ¥52.6 billion, a 1.2% increase. Operating
profit decreased by ¥0.2 billion to ¥4.6 billion, a 5.0% decline.
Sales of home-use products grew with increased shipments of Saran Wrap™ cling
film and Saran™ fiber, but operating profit decreased with higher feedstock andpackaging costs and increased advertising expenses.
Sales of packaging materials were on par with a year ago, but operating profit
decreased as a result of the impact of elevated feedstock costs.
SERVICES, ENGINEERING AND OTHERS
Sales for the segment grew by ¥2.1 billion to ¥28.9 billion, a 7.7% increase. Operating
profit grew by ¥0.6 billion to ¥3.9 billion, a 17.4% increase.
Sales and operating profit in engineering operations grew with strong business inoverseas plant engineering. Sales of personnel staffing and placement operations
increased with growing demand, and operating profit was on par with a year ago.

Asahi Kasei
Consolidated Results

May 8, 2007
p. 5/11

VII. 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 gain on securities
Foreign currency translation
adjustment
Common stock in treasury, at cost
Total liabilities, minority interestand shareholders’ equity

Asahi Kasei
Consolidated Results

At end ofMar. 2007

At end ofMar. 2006

Increase(decrease)722,995
736,927
426,959
28,466
281,5021,459,922

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

78,803
5,075
12,591(4,628)(2,888)83,878503,570
302,842806,412439,724
335,193774,916

63,846(32,351)
31,496

561,755
103,389
79,396
380,515(1,544)

—
—
—
—
—

—
—
—
—
—

83,900——79,823
58
1,106

—
—
—

—
—
—

2,913

—

—

7,855

—

—

653,510
1,459,922

—
—

—
—

—

6,917

—

—
—
—
—
—
—

594,211103,389
79,433
342,450966
85,384

—

(99)

—
—
—
—
—
—
—

—

(17,311)——

1,376,044—

May 8, 2007
p. 6/11

VIII. Consolidated Statements of Income

Net sales
Cost 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

Year ended
March 2007
1,623,791
1,224,041
399,750

Year ended
March 2006
1,498,620
1,127,530
371,090

Increase(decrease)125,171
96,511
28,660Percentchange
+8.4%
+8.6%
+7.7%

271,949

262,364

9,585

+3.7%

127,801
13,081
14,376
126,507
3,091
14,715

108,726
7,416
11,976104,166
5,880
15,565

19,0755,665
2,400
22,341(2,789)(850)+17.5%

114,883

94,481

20,402+21.6%

68,57559,6688,907+14.9%

Year ended
March 2007
128,432(81,347)(36,025)

Year ended
March 2006
108,620(60,373)(30,881)+21.4%IX. Cash Flows

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 decrease in cash and cash equivalents
Cash and cash equivalents at beginning ofyear
Cash and cash equivalents held by newly
consolidated subsidiaries
Cash and cash equivalents at end of year

Asahi Kasei
Consolidated Results

Increase(decrease)
19,812(20,974)(5,144)

643

426

217

11,703

17,792(6,089)86,39068,456

17,934

3,625

142

3,483

101,719

86,39015,329

May 8, 2007
p. 7/11

X. Segment Information
1. Industry segments

Consolidated

Corporate
Expenses,
Assets, andEliminations*

Combined

Services,
Engineeringand Others

Life & Living

Construction
Materials

Electronics
Materials andDevicesFibersPharmaHomes

Chemicals(1) Fiscal year ended March 31, 2007

Sales
Customers
752,632 405,695 104,474 106,639 112,094 60,818 52,558 28,881 1,623,791—
1,623,791
Intersegment
16,589315
81,870
1,210 12,465 3,875 29,305
65,638 (65,638)—
Total
769,222 406,011 104,483 108,509 113,303 73,283 56,433 58,186 1,689,429 (65,638) 1,623,791
Operatingexpenses
717,255 378,502 90,610 104,356 90,682 68,246 51,848 54,331 1,555,829 (59,839) 1,495,990
Operating profit(loss)
51,967 27,509 13,873
4,153 22,622 5,037 4,585
3,855
133,599(5,799)127,801
Identifiable assets, depreciation and amortization, impairment loss, and capital expenditure
Identifiable assets 594,205 212,739 120,926 115,575 123,764 55,141 49,473 317,537 1,589,360 (129,438) 1,459,922
Depreciation andamortization
31,934
2,383 6,553
5,302 13,357 3,040 4,152
735
67,455
4,191
71,646
Impairment loss
164
—
1,659
—
—
—
—
—
1,823
25
1,848
Capitalexpenditure
42,5692,701 5,722
6,362 16,234 2,301 3,455
760
80,104
4,308
84,413* Includes corporate operating expenses of ¥14,325 million (mainly expenses for basic research andgroup management), and corporate assets of ¥433,000 million, such as surplus funds (cash on
hand and in banks), long-term-investment funds (investment securities, etc.), and land, etc.

Consolidated

Corporate
Expenses,
Assets, andEliminations*

Combined

Services,
Engineeringand Others

Life & Living

Construction
Materials

Electronics
Materials andDevicesFibersPharmaHomes

Chemicals(2) Fiscal year ended March 31, 2006

Sales
Customers
660,402 404,539 105,842 89,704 102,859 56,512 51,942 26,821 1,498,620—
1,498,620
Intersegment
16,659111
192,262
991 11,595 3,624 27,247
62,510 (62,510)—
Total
677,061 404,650 105,861 91,966 103,850 68,107 55,566 54,068 1,561,130 (62,510) 1,498,620
Operating
636,549 376,432 94,803 87,950 84,517 64,292 50,740 50,785 1,446,068 (56,174) 1,389,894
expenses
Operating profit
40,512 28,218 11,058
4,016 19,333 3,815 4,826
3,283
115,062(6,336)
108,726(loss)
Identifiable assets, depreciation and amortization, impairment loss, and capital expenditure
Identifiable assets 529,100 200,066 118,721 105,718 114,743 49,557 50,970 317,171 1,486,046 (110,002) 1,376,044
Depreciation and
31,281
2,448
6,364
5,337
12,052 3,129 4,352
715
65,677
3,722
69,399amortization
Impairment loss
—
251
—
—
—
—
—
—
251
3,548
3,799
Capital
3,583
4,897
5,417
14,960 2,313 4,655
1,038
63,4952,815
66,31026,632
expenditure* Includes corporate operating expenses of ¥15,209 million (mainly expenses for basic research andgroup management), and corporate assets of ¥447,076 million, such as surplus funds (cash on
hand and in banks), long-term-investment funds (investment securities, etc.), and land, etc.

Asahi Kasei
Consolidated Results

May 8, 2007
p. 8/11

2. Geographic information(1) Fiscal year ended March 31, 2007
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 year ended March 31, 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.
3. Overseas sales(1) Fiscal year ended March 31, 2007
East Asia* Other regions
Overseas sales
245,276
182,764
Consolidated net sales——
Overseas sales/
15.1%
11.3%
consolidated net sales* China (including Hong Kong), Korea, and Taiwan.

Total
428,040
1,623,791
26.4%(2) Fiscal year ended March 31, 2006
East Asia* Other regions
Overseas sales
222,377
150,789
Consolidated net sales——
Overseas sales/
14.8%
10.1%
consolidated net sales* China (including Hong Kong), Korea, and Taiwan.

Asahi Kasei
Consolidated Results

Total
373,166
1,498,620
24.9%

May 8, 2007
p. 9/11

XI. 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

Year ended
March 2007
Net sales % of total
752,63246.4
405,695
25.0
104,474
6.4
106,639
6.6

Year ended
March 2006
Net sales % of total
660,40244.1
404,53927.0
105,842
7.0
89,704
6.0

112,094

6.9

102,859

60,818

3.7

52,558

Increase(decrease)

Percentchange92,2301,156(1,368)16,935

+14.0
+0.3
−1.3
+18.9

6.9

9,235

+9.0

56,512

3.8

4,306

+7.6

3.2

51,942

3.4

616

+1.2

28,881

1.8

26,821

1.8

2,060

+7.7

1,623,791

100.0

1,498,620

100.0

125,171+8.4

2. Major products, by operating segment
Chemicals
Chemicals and derivative products• Ammonia• Nitric acid
• Caustic soda
• Acrylonitrile (AN)• Styrene• Adipic acid
• Methyl methacrylate (MMA)• Polymethyl methacrylate (PMMA)
Polymer products• Suntec™ polyethylene (PE)• Stylac™-AS styrene-acrylonitrile• 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, and printing plate making
systems• Microza™ UF and MF membranes and systems• Hipore™ microporous membrane• Ion-exchange membranes and electrolysis systems

Asahi Kasei
Consolidated Results

May 8, 2007
p. 10/11

Homes• Hebel Haus™ houses• Hebel Maison™ apartments• Condominiums• Remodeling• Real estate• Residential land development• Home financing
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• Eltas™ spunbond, Lamous™ artificial suede, and other nonwovens• Bemberg™ cuprammonium rayon• Polyester filament
Electronics Materials and Devices• Pimel™ photosensitive polyimide precursor (PSPI)• Sunfort™ photosensitive dry film resist (DFR)• Photomask pellicles• Luminous™ plastic optical fiber (POF)• LSIs• Hall elements• Glass fabricConstruction Materials• Hebel™ autoclaved lightweight concrete (ALC) panels• Steel-frame structural components• Piles and foundation 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

May 8, 2007
p. 11/11