Asahi Kasei Corporation
Head Office: 1-105 Kanda Jinbocho, Chiyoda-ku, Tokyo, Japan
Security code: 3407
Contact: Corporate Communications, Phone +81-3-3296-3008, Fax +81-3-3296-3162
May 11, 2016

Consolidated Results for Fiscal 2015:
April 1, 2015 – March 31, 2016

(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 2015
1,940,914 [−2.3%]
165,203 [+4.6%]
161,370 [−3.1%]
91,754 [−13.2%]
65.69
—
8.6%
7.6%
8.5%

FY 2014
1,986,405 [+4.7%]
157,933 [+10.2%]
166,543 [+16.6%]
105,652 [+4.3%]
75.62
—
10.6%
8.5%
8.0%
* Yen

Note:
• Comprehensive income—¥(11,925) million during fiscal 2015, ¥214,484 million during fiscal 2014.
• Equity in earnings (losses) of affiliates—¥(854) million during fiscal 2015, ¥1,738 million during fiscal 2014.
2. Financial position
At fiscal year end March
Total assets
Net assets
Net worth/total assets
Net worth per share*

2016
2,211,729
1,057,399
47.1%
745.942015
2,014,531
1,097,722
53.7%
775.05* Yen

Note:• Net worth consists of shareholders’ equity and accumulated other comprehensive income.
• Net worth as of March 31, 2016, was ¥1,041,901 million; as of March 31, 2015, ¥1,082,654
million.
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

1/16

FY 2015
216,218(285,287)
101,365
145,307

FY 2014
137,597(100,470)(74,016)
112,297
May 11, 2016

II. Cash Dividends
Fiscal year
2014
2015
2016
(forecast)

Cash dividends per share*
Total
Q1
Q2
Q3
Q4
annual—9.00— 10.00 19.00— 10.00 — 10.00 20.00
—

10.00

—

10.00

Total annual
dividend
amount26,542
27,936

Dividends/
consolidated
net income
25.1%
30.4%

20.00

Dividends/
consolidated
net worth
2.7%
2.6%

30.4%
* Yen

III. Forecast for Fiscal 2016 (April 1, 2016 – March 31, 2017)(percent change from same period of previous year in brackets)
Net sales
Operating income
Ordinary income
Net income attributable to owners of the parent
Net income per share*

For Q1–Q2
922,000 [−3.7%]
63,000 [−25.4%]
62,000 [−23.9%]
40,000 [−15.2%]
28.64

For the fiscal year
1,910,000 [−1.6%]
145,000 [−12.2%]
143,000 [−11.4%]
92,000 [0.3%]
65.87
*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 two new subsidiaries: Polypore International, LP* and Asahi Kasei Energy Storage
Materials, Inc.
* Polypore International, Inc. changed to Polypore International, LP on March 31, 2016.
2. Changes in accounting policies, changes in accounting estimates, and retroactive restatement
Changes in accounting policy

The Accounting Standards Board of Japan (ASBJ) issued ASBJ Statement No. 21 “Revised
Accounting Standard for Business Combinations,” ASBJ Statement No. 22 “Revised AccountingStandard for Consolidated Financial Statements,” and ASBJ Statement No. 7 “Revised AccountingStandard for Business Divestitures.” These revised accounting standards are applied from the fiscal
year ended March 31, 2016. Accordingly, differences resulting from changes in ownership interestin a subsidiary when control over the subsidiary is retained are recorded under capital surplus, andcosts related to acquisition of increased ownership interest are recognized in the period in which theyarise. Also, transitional accounting is applied to business combinations performed on or after the
beginning of the fiscal year ended March 31, 2016, with revision of purchase price allocation applied
to the quarterly consolidated financial statements during the quarter in which the date of the businesscombination occurs. The presentation method of net income was amended, and “minority interests”
were changed to “non-controlling interests.” For comparison purposes, information for the fiscal
year ended March 31, 2015, is shown in accordance with the new standards in the accompanying
consolidated financial statements.
Transitional accounting in accordance with Article 58, Paragraph 2, Item 4, of ASBJ Statement
No. 21, Article 44, Paragraph 5, Item 4, of ASBJ Statement No. 22, and Article 57, Paragraph 4, Item4, of ASBJ Statement No. 7 is applied from the beginning of the fiscal year ended March 31, 2016.
Asahi Kasei
Consolidated Results

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May 11, 2016

As a result, operating income, ordinary income, and income before income taxes each decreasedby ¥2,185 million in the fiscal year ended March 31, 2016.
In the statements of cash flows for the fiscal year ended March 31, 2016, cash flows frompurchases or sales of shares of subsidiaries that do not result in changes in scope of consolidation are
included in cash flows from financing activities, while cash flows from expenses related to purchasesof shares of subsidiaries that result in changes in scope of consolidation and expenses related topurchases or sales of shares of subsidiaries that do not result in changes in scope of consolidation are
included in cash flows from operating activities.
The effect on per-share information is shown in the relevant places.
3. Number of shares outstanding
Fiscal year ended March
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

2016
1,402,616,332
5,861,678
1,396,812,330

2015
1,402,616,332
5,742,862
1,397,093,805

V. Summary of Non-Consolidated Results
1. Results for fiscal 2015 (April 1, 2015 – March 31, 2016)(1) Operating results (percent change from previous year in brackets)
FY 2015
46,790 [−15.9%]
32,655 [−21.8%]
35,023 [−20.5%]
40,055 [−2.1%]
28.68—

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

FY 201455,634 [+22.5%]
41,740 [+30.3%]
44,062 [+29.1%]
40,922 [+16.9%]
29.29
—
* Yen

(2) Financial position
At fiscal year end, March
Total assets
Net assets
Net worth/total assets
Net worth per share*

Asahi Kasei
Consolidated Results

2016
1,325,089
500,06437.7%
358.02

3/16

2015
1,056,881
505,43047.8%
361.83* Yen

May 11, 2016

VI. Overview of Consolidated Results
1. Consolidated group results
Although slower growth persisted in China, and other emerging economies continued to slow down
during fiscal 2015, the global economy overall was on a path of gradual recovery with increased
consumer spending together with improved employment in the US, and signs of recovery in private
consumption in Europe. The Japanese economy saw steady consumer spending along with firm
corporate performance and capital expenditure, but uncertainty remained regarding the risk offurther downturn in emerging economies and appreciation of the yen from the latter half of theperiod.
Consolidated net sales of Asahi Kasei Corp. and its consolidated subsidiaries and equitymethod affiliates (the Asahi Kasei Group) decreased by ¥45.5 billion (2.3%) from a year ago to¥1,940.9 billion with lower market prices for petrochemical products in chemicals operations.
Operating income increased by ¥7.3 billion (4.6%) to ¥165.2 billion, a new record high for the third
consecutive year, with firm performance in homes and critical care operations. Ordinary income
decreased by ¥5.2 billion (3.1%) to ¥161.4 billion with equity in earnings of affiliates transitioning
to equity in losses of affiliates and foreign exchange gains transitioning to foreign exchange loss.
Net income attributable to owners of the parent decreased by ¥13.9 billion (13.2%) to ¥91.8 billion.
2. Results by operating segment
The Asahi Kasei Group’s operations are described by major business classification: four reportablesegments of Chemicals & Fibers, Homes & Construction Materials, Electronics, and Health Care,
together with an “Others” category. Results of Polypore International, LP* and its consolidated
subsidiaries (collectively “Polypore”), acquired on August 26, 2015 (US Eastern time), are includedin the Electronics segment.
* Polypore International, Inc. changed to Polypore International, LP on March 31, 2016.
CHEMICALS & FIBERS
Sales decreased by ¥119.0 billion (12.5%) from a year ago to ¥835.6 billion, and operating income
increased by ¥4.3 billion (6.7%) from a year ago to ¥68.9 billion.
Among chemicals operations, feedstock costs for petrochemical products declined withlower oil and naphtha prices, but market prices deteriorated most notably for acrylonitrile. In
performance polymers, terms of trade improved due to lower feedstock costs, and sales ofengineering plastics and synthetic rubber for fuel-efficient tires were firm. In specialty products,
the effect of the weaker yen was most notable for ion-exchange membranes, and shipment of Saran
Wrap™ cling film increased.
In fibers operations, feedstock costs declined for each product, the weaker yen contributed toperformance, and shipments of Lamous™ artificial suede for automotive upholstery and Roica™
elastic polyurethane filament increased.
HOMES & CONSTRUCTION MATERIALS
Sales increased by ¥28.6 billion (4.7%) from a year ago to ¥632.4 billion, and operating income
increased by ¥8.0 billion (12.6%) from a year ago to ¥71.0 billion.
Among homes operations, in order-built homes, deliveries of Hebel Maison™ apartmentbuildings increased, and selling, general and administrative expenses such as promotional expenses
decreased. In real estate, management of rental units was firm. In remodeling, orders increased
centering on renovation work and equipment installation.
In construction materials operations, shipments decreased for foundation systems.
Feedstock costs declined. Sales of Neoma™ high-performance phenolic foam insulation panels
were firm.
ELECTRONICS
Sales increased by ¥24.1 billion (16.0%) from a year ago to ¥174.5 billion, and operating income
decreased by ¥7.4 billion (51.8%) from a year ago to ¥6.9 billion.
Electronic devices operations benefitted from the weaker yen, and sales of devices for
Asahi Kasei
Consolidated Results

4/16

May 11, 2016

smartphones such as audio LSIs and devices for camera modules were firm, but shipments ofelectronic compasses declined.
In electronic materials operations, production and sale of general purpose epoxy resin were
terminated, but the weaker yen contributed to performance, and sales of Hipore™ Li-ion battery
separator were firm.
The effect on operating income from amortization of goodwill and other intangible assets,etc. related to the acquisition of Polypore was ¥9.8 billion.
HEALTH CARE
Sales increased by ¥28.3 billion (11.0%) from a year ago to ¥285.4 billion, and operating income
increased by ¥5.4 billion (17.5%) from a year ago to ¥36.2 billion.
In pharmaceuticals operations, sales of Teribone™ osteoporosis drug and Recomodulin™
recombinant thrombomodulin were firm, while shipments of Flivas™ agent for treatment of benign
prostatic hyperplasia decreased due to competition from generics.
In medical devices operations, shipments increased for dialysis products and Planova™
virus removal filters.
In critical care operations, the LifeVest™ wearable defibrillator business continues toexpand consistently, and sales of other products such as defibrillators and related accessories
increased, but selling, general and administrative expenses grew with reinforced sales activity.
OTHERS
Sales decreased by ¥7.4 billion (36.4%) from a year ago to ¥13.0 billion, and operating income
decreased by ¥0.4 billion (41.7%) from a year ago to ¥0.6 billion.

Asahi Kasei
Consolidated Results

5/16

May 11, 2016

VII. Consolidated Financial Statements
1. Balance sheets

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable–trade
Short-term investment securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
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
Net defined benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Subtotal
Total noncurrent assets
Total assets

Asahi Kasei
Consolidated Results

6/16

At end ofMarch 2015

At end ofMarch 2016

123,821
325,568
1,802
161,554
112,81365,311
21,70780,520(1,517)
891,579

146,054
280,095
1,534
159,441
108,684
68,61818,13375,324(1,865)856,018

471,033(261,352)
209,681
1,345,790(1,170,771)
175,019
59,287
13,054(10,232)
2,822
37,566
143,593(125,461)
18,133
502,507495,817(268,635)
227,183
1,348,103(1,149,544)
198,559
61,046
12,928(11,183)
1,745
49,240147,286(129,072)
18,215555,989

153,835
132,241
286,076

305,112
189,470
494,582

289,393
9,952
2,929
11,35121,016(273)
334,368
1,122,952
2,014,531

244,598
16,35320,09824,280(189)
305,140
1,355,711
2,211,729

May 11, 2016

Liabilities
Current liabilities
Notes and accounts payable–trade
Short-term loans payable
Lease obligations
Accrued expenses
Income taxes payable
Advances received
Provision 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 periodic repairs
Provision for removal cost of property, plant andequipment
Provision for loss on litigation
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

7/16

At end ofMarch 2015

At end ofMarch 2016

151,867
96,015
1,383
101,164
10,20374,675
2,396
2,562

126,653
313,587919
98,71732,73574,667
3,908
2,355

2,832

2,130

533
63,817507,449

568
69,423725,662

40,000130,400
1,219
57,943
1,248

40,00094,632537
64,930
558

7,865

7,228

2,316
142,035
3,506
19,146
3,683
409,360
916,8092,171
186,300
3,480
20,131
8,702
428,669
1,154,330

103,389
79,408699,259(3,041)
879,014103,389
79,410763,076(3,150)942,724

113,562(1,697)
99,531(7,757)
203,639
15,0681,097,722
2,014,531

92,280(179)
48,429(41,353)
99,177
15,4981,057,399
2,211,729

May 11, 2016

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
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expense
Equity in losses of affiliates
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 sales of investment securities
Loss on valuation of investment securities
Loss on disposal of noncurrent assets
Impairment loss
Business structure improvement expenses
Litigation settlement
Loss on piling businessBusiness integration expense
Special retirement expenses and other
Loss on discontinuation of joint sales agreement
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

8/16

FY 2014
1,986,405
1,439,344
547,061
389,128
157,933

FY 2015
1,940,914
1,354,698
586,216
421,013
165,203

1,389
3,923
1,738
5,197
5,041
17,288

1,417
4,757
—
—
5,148
11,322

3,056
—
—
5,622
8,678
166,543

3,611
854
3,679
7,010
15,154
161,370

2,756
382
3,137

8,275
917
9,192

112
1,136
4,728
1,255
4,010
—
—
—
—
—
11,241
158,440
44,0597,483
51,542
106,898
1,246
105,652

—
363
5,214
3,493
3,606
1,201
1,456
1,547
2,027
5,266
24,173
146,389
55,419(2,441)
52,97893,412
1,658
91,754

May 11, 2016

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

9/16

FY 2014106,898

FY 2015
93,41237,947(21,098)(1,526)48,94517,096

1,519(48,860)(33,331)

5,125(3,567)

107,587
214,484(105,337)(11,925)

212,159
2,326(12,708)783

May 11, 2016

3. Statements of changes in net assets
Shareholders’ equity
Capital stock
Balance at beginning of fiscal year
Balance at end of fiscal year
Capital surplus
Balance at beginning of fiscal year
Changes during the fiscal year
Disposal of treasury stock
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
Change of scope of consolidation
Change of scope of equity method
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
Change of scope of equity method
Total changes of items during the period
Balance at end of fiscal year

Asahi Kasei
Consolidated Results

10/16

FY 2014

FY 2015

103,389
103,389

103,389
103,389

79,404

79,4083
3
79,4082
2
79,410635,403(15,741)
619,662699,259—699,259(26,547)
105,652
296
197
79,597699,259(27,937)
91,754——63,817763,076(2,591)(3,041)

(455)
5
(450)
(3,041)

(113)
4
(109)
(3,150)815,605(15,741)
799,863

879,014—879,014(26,547)
105,652
(455)
8
296
197
79,151
879,014(27,937)
91,754(113)
6——63,710942,724

May 11, 2016

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
Change of scope of equity method
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

11/16

FY 2014

FY 201575,626

113,562

37,93737,937
113,562(21,282)(21,282)
92,280(171)(1,697)(1,526)(1,526)(1,697)

1,519
1,519
(179)

46,734

99,531

52,797
52,797
99,531(51,102)(51,102)48,429(25,094)(7,757)

17,33817,338(7,757)(33,596)(33,596)(41,353)

97,095

203,639

106,545
106,545
203,639(104,462)(104,462)
99,177

13,067

15,0682,002
2,002
15,068430
430
15,498925,766(15,741)
910,025

1,097,722—
1,097,722(26,547)
105,652
(455)
8
296
197
108,546
187,697
1,097,722(27,937)
91,754(113)
6——(104,032)(40,323)
1,057,399
May 11, 2016

4. Statements of cash flows

Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Impairment loss
Amortization of goodwill
Amortization of negative goodwill(Decrease) increase in provision for periodic repairs
Increase (decrease) in provision for product warranties
Decrease in provision for removal cost of property, plant andequipment
Decrease in net defined benefit liability
Interest and dividend income
Interest expense
Equity in (earnings) losses 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) decrease in inventories
Decrease in notes and accounts payable–trade
Increase (decrease) in accrued expenses(Decrease) 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

12/16

FY 2014

FY 2015

158,440
86,058
1,255
9,320
(159)
(4,496)22

146,389
93,811
3,493
15,821
(159)
824
(193)

(1,723)(1,339)(2,300)(5,312)
3,056(1,738)(2,644)
1,136
(382)
4,728
717
(3,610)(13,559)
5,662(6,553)(8,587)219,331
6,761(3,081)(85,415)
137,597(9,227)(6,173)3,611
854(8,275)
363
(917)
5,214
48,513
12,901(24,104)(3,980)120(4,863)
272,687
7,558(3,596)(60,431)
216,218(17,182)
13,436(82,990)944(10,661)(1,349)5,341(6,360)17,364(85,184)774(10,330)(7,017)
10,197(2,808)(193,680)(3,763)(5,296)
6,295(2,438)(100,470)(200)(11,131)2,520(2,241)(285,287)

May 11, 2016

Cash flows from financing activities
Net (decrease) increase in short-term loans payable
Decrease in commercial paper
Proceeds from long-term loans payable
Repayment of long-term loans 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
Other, net
Net cash (used in) provided by financing activities
Effect of exchange rate change on cash and cash equivalents
Net (decrease) 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

13/16

FY 2014

FY 2015(24,324)(10,000)
10,950(21,064)(1,830)(462)
8(26,547)(745)(2)(74,016)
5,467(31,423)
143,139

213,417—
9,445(91,760)(1,411)(113)
6(27,937)(653)
371
101,365(5,560)26,736112,297

581

6,273

112,297

145,307

May 11, 2016

5. Notes to consolidated financial statements
Consolidated balance sheets
Contingent liabilities
It has become clear that Asahi Kasei Construction Materials Corp., a consolidated subsidiary ofAsahi Kasei Corp., which performed pile installation work as secondary subcontractor for theconstruction of a condominium complex in Yokohama, Kanagawa, Japan, submitted incorrect data inthe pile installation report for the precast concrete piles installed for this project. There wasmanipulation of ammeter data obtained when boring holes for installation, and manipulation of
flowmeter data for the injection of cement milk for consolidation of pile tips.
Asahi Kasei Corp. established a task force and fact-finding committee as well as an independent
commission to advance investigation, and on October 22, 2015, Asahi Kasei Construction Materials
Corp. reported its record of similar pile installation work over the past 10 years to Japan’s Ministry ofLand, Infrastructure, Transport and Tourism (MLIT).
On November 24, 2015, Asahi Kasei Construction Materials Corp. completed all possible
investigation of whether or not there was manipulation of data regarding the installation of precast
concrete piles, and reported the results to the MLIT. Out of the 3,052 projects subject toinvestigation, manipulation of data was found for 360 projects.
On January 13, 2016, Asahi Kasei Construction Materials Corp. received instructions inaccordance with Paragraph 1 of Article 28 of the Construction Business Act, an order to suspend
business in accordance with Paragraph 3 of Article 28 of the Construction Business Act, and arecommendation in accordance with Paragraph 1 of Article 41 of the Construction Business Act fromthe Kanto Regional Development Bureau of the MLIT.
Regarding projects where manipulation of data was found, Asahi Kasei Construction Materials is
cooperating with the prime contractors and the owners of the buildings in efforts to confirm safety
based on instructions from the MLIT. Regarding projects where a Specific Administrative Agency
has confirmed safety, the Specific Administrative Agency will issue a report to the MLIT.
As an effect of this matter, an extraordinary loss of ¥1,456 million was recorded in fiscal 2015 as“loss on piling business” for expenses for investigation, etc., of the manipulation of data.
Although there is a possibility that an effect on the consolidated results of Asahi Kasei Corp. may
emerge such as the recording of an additional reserve, etc., no such effect is reflected in the
consolidated financial statements for fiscal 2015 due to the difficulty of making a rational estimate of
the amount of financial impact from this matter as of the time of preparation of the consolidated
financial statements.
Consolidated statements of income
Loss on piling business
It has become clear that there was manipulation of ammeter data and flowmeter data in the pile
installation work which consolidated subsidiary Asahi Kasei Construction Materials Corp. performed
as secondary subcontractor for the construction of a condominium complex in Yokohama, Kanagawa,Japan, and a portion of similar pile installation work performed over the past 10 years. Expenses
incurred such as for investigation of the data manipulation are recorded as “loss on piling business.”

Asahi Kasei
Consolidated Results

14/16

May 11, 2016

VIII. Segment Information
1. Reporting segments(1) Fiscal 2014

Subtotal

Others

Sales
Customers

603,786

150,388257,133

1,965,929

20,476 1,986,405

Intersegment
Total
Operating income

18,216
972,83868
603,853544
150,93241
257,174

18,8681,984,798

22,283
41,152
42,760 2,027,557

64,624
810,787

63,037414,028

14,300179,10230,845501,990

172,806
1,905,906

949 173,755
62,874 1,968,780

AssetsOther items
Depreciation
Amortization of
goodwill
Investments inassociates accounted
for using equity
methodIncrease in property,
plant and equipment,
and intangible assets

35,6559,430

13,874

20,10479,064

1,094

80,158

484

—

17

8,555

9,056

264

9,320

46,243—304—

46,547

17,01363,56041,718

10,864

11,60016,59580,776

1,389

82,165

Total

Health Care

954,623

Chemicals& Fibers

Electronics

Homes &
Construction
Materials

Reporting segments(2) Fiscal 2015

Subtotal

Others

Sales
Customers

632,418

174,477

285,404

1,927,882

13,032 1,940,914

Intersegment
Total
Operating income

12,341
847,92253
632,472367
174,84448
285,452

12,8091,940,691

23,72836,53836,761 1,977,452

Assets

68,948
737,604

71,000449,289

6,889
563,680

36,235474,265

183,072
2,224,838

553 183,625
62,613 2,287,451

Other items
Depreciation
Amortization of
goodwill
Investments inassociates accounted
for using equity
methodIncrease in property,
plant and equipment,
and intangible assets

37,435

9,529

17,275

21,53985,7781,251

87,030

517

—

5,369

9,646

15,533288

15,82131,802—

333—

32,135

17,39849,534

43,66911,947

16,70819,382

91,706

1,513

93,220Asahi Kasei
Consolidated Results

15/16

Total

Health Care

835,582

Chemicals& Fibers

Electronics

Homes &
Construction
Materials

Reporting segments

May 11, 2016

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 2014
1,984,798
42,760(41,152)
1,986,405

Fiscal 2015
1,940,691
36,761(36,538)
1,940,914

Operating income
Fiscal 2014
Fiscal 2015
Total of reporting segments
172,806
183,072
Operating income in “Others” category949
553
Elimination of intersegment transactions
1,087
170
Corporate expenses, etc.*(16,910)(18,592)
Operating income on consolidated statements of income
157,933
165,203* Corporate expenses, etc. include corporate revenue, basic research expense, and groupmanagement expense, etc. which are not allocated to reporting segments.
AssetsFiscal 2014
Fiscal 2015
Total of reporting segments
1,905,906
2,224,838
Assets in “Others” category
62,87462,613Elimination of intersegment transactions(249,428)(320,251)
Corporate assets*
295,179
244,529
Total assets on consolidated balance sheets
2,014,531
2,211,729* Corporate assets include assets of Asahi Kasei Corp.—surplus operating funds (cash anddeposits), long-term investment capital (investment securities, etc.), and land, etc.
IX. Geographic information
1. Net sales(1) Fiscal 2014
Japan
1,313,128

China
194,007

Other regions
479,271

Total
1,986,405(2) Fiscal 2015
Japan
1,261,203

China
185,241

Other regions
494,470

Total
1,940,914

2. Property, plant and equipment(1) Fiscal 2014
Japan
361,130

United States
30,814

Other regions
110,563

Total
502,507(2) Fiscal 2015
Japan361,825

United States
91,425

Other regions
102,739

Total
555,989

Asahi Kasei
Consolidated Results

16/16

May 11, 2016