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 2, 2018

Consolidated Results for 1st and 2nd Quarter Fiscal 2018:April 1, 2018 – September 30, 2018
(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 2018
1,041,463 [+8.0%]
104,306 [+12.6%]
110,259 [+12.3%]
78,924 [+11.4%]
56.53—

Q1–Q2 2017964,749 [+8.3%]
92,652 [+30.9%]
98,172 [+40.5%]
70,868 [+33.9%]
50.75
—

* Yen
Note: Comprehensive income was ¥110,372 million during Q1–Q2 2018, and ¥101,719 million during Q1–Q2
2017.

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

September 2018
2,572,043
1,390,21453.2%
980.22

March 2018
2,307,154
1,305,21455.8%
922.11* Yen
Notes:• Net worth consists of shareholders’ equity and accumulated other comprehensive income.
• Net worth as of September 30, 2018, was ¥1,368,520 million; as of March 31, 2018, ¥1,287,387 million.

II. Cash Dividends
Fiscal year
2017
2018
2018 (forecast)

Cash dividends per share*Q2
Q3
Q4
14.00
—
20.00
17.00
—
17.00

Q1
—
—

Total annual
34.00
34.00

* Yen
Note: Year-end dividends will be determined based on FY 2018 consolidated net income results in considerationof total return ratio target of 35%.

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Consolidated Results

November 2, 2018
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III. Forecast for Fiscal 2018 (April 1, 2018 – March 31, 2019)
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
2,210,000 [+8.2%]
210,000 [+5.8%]
222,000 [+4.4%]
160,000 [−6.0%]
114.60* 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 2018 announced on May 11, 2018, has been revised.

IV. Other Information
1. Changes in significant subsidiaries which affected scope of consolidation during the period
Addition of two new subsidiaries: Sage Automotive Interiors, Inc. and Asahi Kasei Materials
America, Inc.
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
Changes in accounting policy difficult to distinguish from changes in accounting estimates:
Change in method of depreciation of property, plant and equipment
Whereas Asahi Kasei and its subsidiaries in Japan had previously primarily applied the decliningbalance method for depreciation of property, plant and equipment (except lease assets), this waschanged to the straight-line method from the first quarter of the year ending March 31, 2019.
The Asahi Kasei Group has continued to acquire overseas companies in recent years, and sinceoverseas subsidiaries apply the straight-line method for depreciation of property, plant andequipment, there is an increase in the proportion of property, plant and equipment depreciated by thestraight-line method.
Furthermore, the Asahi Kasei Group is currently advancing investments to expand businesses withcompetitive superiority, as well as investments for modification and rationalization, based on the “Csfor Tomorrow 2018” three-year strategic management initiative. Large-scale expansions ofdomestic manufacturing plants are being implemented or planned, especially in the Material sector,during the year ending March 31, 2019, the final fiscal year of the three-year period. As such
expansions of manufacturing plants are scheduled to successively start operation beginning from theyear ending March 31, 2019, a change in the situation of domestic capital expenditure is foreseeable.
This changing situation surrounding property, plant and equipment presented an opportunity toreconsider the method of depreciation.
Long-term and stable operation of the property, plant and equipment of Asahi Kasei and its
subsidiaries in Japan is expected to contribute to the achievement of stable earnings for Asahi KaseiAsahi Kasei
Consolidated Results

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and its subsidiaries in Japan. Therefore, it was determined that adoption of the straight-line methodof depreciation of property, plant and equipment in Japan as well would not only be a cost allocation
method more accurately reflecting the state of use of property, plant and equipment, but also more
appropriate for performance management of the Asahi Kasei Group.
Due to this change, operating income was ¥3,766 million higher, and ordinary income and income
before income taxes were each ¥3,782 million higher than they would have been with the previous
method.
Additional information:
Application of Partial Amendments to Accounting Standard for Tax Effect Accounting:“Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No. 28)
issued by the Accounting Standards Board of Japan is applied from the first quarter of the year
ending March 31, 2019. Accordingly, all deferred tax assets are shown under investments and otherassets, and all deferred tax liabilities are shown under noncurrent liabilities.
4. Number of shares outstanding

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

Q2 2018
1,402,616,332
6,476,928
1,396,127,850

FY 2017
1,402,616,332
6,491,617
1,396,515,455** Q1–Q2 2017

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Consolidated Results

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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, 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 securitiesLong-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Subtotal
Total noncurrent assets
Total assets

Asahi Kasei
Consolidated Results

At end ofMarch 2018

At end of
September 2018

156,318
341,396
169,948
109,486
80,253
83,956(2,411)
938,947

170,031361,821
189,821
131,881
88,94087,502(2,772)
1,027,224

517,562(285,760)
231,802
1,399,081(1,200,504)
198,577
62,938
11,698(10,901)
798
50,502
153,002(135,571)
17,431
562,048539,372(292,429)
246,9431,438,543(1,226,053)
212,490
64,571
10,251(9,518)733
63,466
158,856(138,254)
20,602608,804

252,724
161,898
414,621358,561
181,424
539,984

314,830
27,793
17,77531,406(266)
391,538
1,368,207
2,307,154

316,383
26,11921,14732,654(272)
396,030
1,544,819
2,572,043

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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 sharesProvision for periodic repairs
Provision for product warranties
Provision for removal cost of property, plant andequipment
Asset retirement obligations
Other
Total current liabilities
Noncurrent liabilities
Bonds payable
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for grant of shares
Provision for periodic repairs
Provision for removal cost of property, plant andequipment
Net defined benefit liability
Asset retirement obligations
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 2018

At end of
September 2018

171,413118,018
20,000199
105,787
29,714
70,142
28
3,185
2,730

190,329
215,366
71,000166
101,759
23,661
85,621
—
4,153
2,974

2,425

2,422

557
64,948589,146

501
69,761
767,710

20,000143,176352
36,639172
3,263

20,000136,555291
44,194
172
2,465

2,699

2,156

170,634
3,282
20,658
11,917412,793
1,001,939

169,218
3,576
20,818
14,672
414,118
1,181,829

103,389
79,440981,934(3,930)1,160,833

103,389
79,4381,032,904(3,912)
1,211,818

121,12892
28,676(23,343)
126,553
17,8271,305,214
2,307,154

116,887
10
60,244(20,439)
156,701
21,694
1,390,214
2,572,043

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2. Statements of income and statements of comprehensive income
1) Statements of income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Equity in earnings of affiliates
Other
Total non-operating income
Non-operating expenses
Interest expense
Foreign exchange loss
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Gain on sales of noncurrent assets
Total extraordinary income
Extraordinary loss
Loss on valuation of investment securities
Loss on disposal of noncurrent assets
Impairment 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 2017964,749
651,543
313,206
220,554
92,652

Q1–Q2 2018
1,041,463
704,955
336,508
232,202104,306

960
2,841
5,349
1,646
10,795

1,563
3,309
6,688
1,518
13,078

2,298
923
2,054
5,275
98,172

2,203
1,448
3,474
7,125
110,259

5,845
416
6,261

6,811
259
7,070

—
1,477
567
699
2,743
101,690
29,736
71,954
1,086
70,868

19
1,318
183
661
2,181
115,148
35,13180,018
1,094
78,924

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2) Statements of comprehensive income

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

Asahi Kasei
Consolidated Results

Q1–Q2 2017
71,954

Q1–Q2 2018
80,018

12,613(4,180)(85)
12,542
3,919(82)
30,050
2,950

776

1,617

29,765
101,719

30,355
110,372

100,330
1,389

109,072
1,301

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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 goodwillDecrease in provision for grant of shares(Decrease) increase in provision for periodic repairs
Increase in provision for product warranties
Decrease in provision for removal cost of property, plant andequipment
Increase in provision for loss on litigation
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
Increase in notes and accounts receivable–trade
Increase in inventories
Increase 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 securitiesPurchase of shares in subsidiaries resulting in change in scopeof consolidation
Payments of loans receivableCollection of loans receivable
Other, net
Net cash used in investing activities

Asahi Kasei
Consolidated Results

Q1–Q2 2017

Q1–Q2 2018

101,690
45,817
567
9,063
(79)
—
(2,463)
223

115,148
39,844183
8,900(79)
(28)
170
230

(1,949)(546)

2(1,765)(3,801)
2,298(5,349)(5,845)—(416)
1,477(16,156)(15,206)
12,517(3,834)9,380
14,012
140,183
5,229(2,437)(27,966)
115,009—(1,635)(4,872)
2,203(6,688)(6,811)19(259)1,318(10,017)(41,644)
9,150(5,580)15,030(3,277)110,760
6,463(2,190)(41,308)
73,724(1,725)
1,232(36,822)
1,010(4,785)(9,166)
6,306

(925)
7,441
(55,500)
426(4,330)(1,054)
8,101—(78,454)(36,663)
27,936(279)(52,956)(5,389)10,998(431)(119,117)

November 2, 2018
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Cash flows from financing activities
Net decrease in short-term loans payable
Increase in commercial paper
Proceeds from long-term loans payable
Repayment of long-term loans payable
Redemption of bonds
Repayments of lease obligations
Purchase of treasury stock
Proceeds from disposal of treasury stock
Cash dividends paid
Cash dividends paid to non-controlling interests
Other, net
Net cash (used in) 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

Asahi Kasei
Consolidated Results

Q1–Q2 2017

Q1–Q2 2018

(2,435)4,000
5,676(12,064)(20,000)
(211)
(675)
1(19,553)(680)
3(45,937)
1,121
17,237144,077

48,28751,0002,658(12,008)—(120)(10)
28(27,932)(674)
17
61,245
3,503
19,356
148,596272

826

161,586

168,777

November 2, 20189/9