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
August 4, 2020

Consolidated Results for 1st Quarter Fiscal 2020:
April 1, 2020 – June 30, 2020

(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 2020455,159 [−9.3%]
30,103 [−27.2%]
30,221 [−31.3%]
13,588 [−44.3%]
9.79—

Q1 2019502,083 [+2.5%]
41,343 [−13.7%]
43,967 [−15.1%]
24,380 [−33.0%]
17.52
—

* Yen
Note: Comprehensive income was ¥19,014 million during Q1 2020, and ¥(2,521) million during Q1 2019.

2. Financial position
At end ofTotal assets
Net assets
Net worth/total assets
Net worth per share*June 2020
2,788,099
1,379,056
48.6%
976.55

March 2020
2,822,277
1,383,460
48.2%
979.69* YenNotes:• Net worth consists of shareholders’ equity and accumulated other comprehensive income.
• Net worth as of June 30, 2020, was ¥1,354,957 million; as of March 31, 2020, ¥1,359,314 million.
• Calculation of total assets as of March 31, 2020, previously based on provisional accounting treatment related
to business combinations, has been finalized.

II. Cash Dividends
Fiscal year
2019
2020
2020 (forecast)

Q1——

Cash dividends per share*
Q2
Q3
Q4
18.00
—
16.00
—

—

—

Note: Forecast of cash dividends for the year ending March 31, 2021, remains indeterminate.

Asahi Kasei
Consolidated Results

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Total annual
34.00—* YenAugust 4, 2020

III. Forecast for Fiscal 2020 (April 1, 2020 – March 31, 2021)
1. Latest forecasts (percent change from results in year-ago period in brackets)
Net sales

For Q1–Q2
979,000 [−8.4%]

Operating income

66,000 [−35.1%]

Ordinary income
Net income attributable to owners of the parent
Net income per share*

66,500 [−36.8%]
33,000 [−57.6%]
23.78

For the fiscal year— [—]120,000–130,000[−32.3% – −26.7%]— [—]— [—]—* 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 2020 has been revised.
• The full-year operating income forecast is shown as a range.

IV. Other Information
1. Changes in significant subsidiaries which affected scope of consolidation during the period: None
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: None
4. Notable changes in shareholders’ equity: None
5. 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

Q1 2020
1,393,932,032
6,440,890
1,387,491,589

FY 2019
1,393,932,032
6,440,327
1,391,781,100** Q1 2019

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Consolidated Results

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August 4, 2020

V. Qualitative Information on Quarterly Results
1. Description of operating results
In the April–June period of 2020, operating income in the Material segment decreased from the yearago period as an effect of the global economic slowdown resulting from the novel coronavirus
pandemic, while operating income in the Homes and Health Care segments increased.
MATERIAL
Basic Materials operating income decreased with reduced shipment volumes, effects of lowermarket prices for petrochemical feedstocks on inventories, and deteriorated terms of trade foracrylonitrile (AN).
Performance Products operating income decreased as an effect of broad declines in demand
among automobile-related markets and apparel-related markets.
Specialty Solutions operating income increased with favorable demand related tocommunications infrastructure and tablet PCs, while lithium-ion battery separator shipments
increased firmly.
HOMES
Orders for order-built homes decreased from the year-ago period with restriction of admission tomodel homes to prevent the spread of novel coronavirus infection, while operating income increased
with firm performance of condominiums in real estate, and a portion of deliveries of order-built
homes being postponed from the previous period due to delayed supply of components as an effect of
the novel coronavirus.
HEALTH CARE
Despite negative factors such as reduced outpatient visits and curtailed business activity due tothe novel coronavirus, and amortization of goodwill related to the acquisition of Veloxis
Pharmaceuticals Inc., operating income increased with shipment growth for ventilators and virus
removal filters as an effect of elevated demand due to the novel coronavirus.
2. Description of consolidated performance forecast and future outlook
i. Second quarter forecast
Q2 operating income is expected to be even with Q1 in the Material segment and to increase from Q1
in the Homes and Health Care segments. Year-on-year, Q2 operating income is expected to decrease
overall with a decrease in the Material and Homes segments and an increase in the Health Caresegment.
MATERIAL
Recovery of demand is expected, especially with recovery of vehicle production, but operating
income is expected to be even with Q1 as a portion of product shipments extend into Q3. Year-onyear, a decrease is expected with effects of lower petrochemical feedstock prices and declines indemand among automobile-related and apparel-related markets similar to Q1.
HOMES
Firm performance in real estate such as condominiums is expected, but year-on-year operating
income is expected to decrease with reduced deliveries of order-built homes as measures to prevent
novel coronavirus infection make construction work slower, and remodeling is impacted by lowerorders. Orders for order-built homes are expected to recover with gradual recovery of customervisits to model homes and the use of digital marketing leveraging IT.
HEALTH CARE
Year-on-year, operating income is expected to decrease in the Health Care business category
with the impact of amortization of goodwill related to Veloxis, effect of the novel coronavirus, andreduced reimbursement prices in Japan, but operating income is expected to increase in the Critical
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Consolidated Results

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August 4, 2020

Care business category centered on increased demand for ventilators, and operating income for theHealth Care segment overall is expected to increase.
ii. Second-half and full-year forecasts
Regarding the impact of the novel coronavirus, although it remains difficult to anticipate the spread ofinfections, economic policies, and recovery of markets in various countries, it is believed that thegeneral trend for recovery of economic activity with measures to prevent infection will continue.
Due to obscurity of the market environment outlook, the second-half and full-year forecasts for the
Material segment, having a broad scope of business activity, are determined in a range, as are theoverall consolidated operating income forecasts.
From the first half to the second half, operating income in the Material segment is expected toincrease with improved automobile-related demand due to recovery of vehicle production, andrecovery of demand and improved terms of trade for petrochemical products such as AN. Operating
income in the Homes segment is expected to increase slightly with gradual easing of restrictions toprevent novel coronavirus infection. Operating income in the Health Care segment is expected todecrease as ventilator demand subsides and due to a tendency for fixed costs in the Health Carebusiness category to occur in the second half.
For the full year, net sales in the Health Care segment are expected to increase by over 15% with
contribution from acquired businesses and operating income to increase by around 25%, net sales in
the Material segment are expected to decrease by around 15% and operating income to decrease byaround 50% with significant impact from the novel coronavirus, and net sales in the Homes segment
are expected to decrease by around 5% and operating income to decrease by around 30%. Together
with curtailment of corporate expenses, overall operating income is expected to decrease by around
30% to ¥120–130 billion. While the severe operating environment and uncertainty about the outlookpersist, efforts will be made to improve performance by curtailing fixed costs, reducing inventories,
and making swift and appropriate management decisions according to changes in the environment.
iii. Policy for shareholder returns
The basic policy for stable dividends and continuously increased dividends remains unchanged.
Interim dividends are to be determined based on first-half results and the full-year forecast after Q2,and annual dividends are to be determined based on full-year results and ascertaining the effect of thenovel coronavirus on the subsequent fiscal year.

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Consolidated Results

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August 4, 2020

VI. 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 securities
Long-term loans receivable
Long-term advance payments–trade
Deferred tax assets
Other
Allowance for doubtful accounts
Subtotal
Total noncurrent assets
Total assets

Asahi Kasei
Consolidated Results

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At end ofMarch 2020

At end ofJune 2020

207,957
330,999
216,463
160,064
101,313
92,153(1,519)1,107,430

210,084
278,539
217,945
175,074
104,114
86,598(1,461)
1,070,893

563,110(305,259)
257,851
1,466,958(1,243,780)
223,179
67,024
9,645(8,964)681
75,487
172,674(143,210)
29,464
653,686

567,709(308,300)
259,4091,479,679(1,256,562)
223,118
67,182
9,379(8,730)650
84,749174,069(144,429)
29,640664,748

365,680
349,566
715,246

355,457
340,907696,364

244,581
7,951
20,46744,46628,883(435)
345,914
1,714,846
2,822,277

252,389
8,040
24,52541,98829,662(511)
356,094
1,717,206
2,788,099

August 4, 2020

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

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At end ofMarch 2020

At end ofJune 2020

131,207275,671
139,000
1,006
121,520
18,14573,623
78
4,043
3,738

117,971
205,030
87,000991
98,482
18,26278,811
68
4,107
3,550

2,640

5,147

71,863
842,531

69,726689,144

60,000229,172
3,506
70,600412
4,560

110,000
308,806
3,299
68,206
422
4,935

5,771

3,975

174,365
21,613
26,287596,286
1,438,817

173,604
21,50525,148719,898
1,409,043

103,389
79,641
1,125,738(5,990)1,302,777

103,389
79,6601,116,896(5,991)
1,293,954

67,027(241)
13,027(23,275)
56,53824,145
1,383,460
2,822,277

73,951(246)
9,477(22,178)
61,00324,0991,379,056
2,788,099

August 4, 2020

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 incomeEquity in earnings of affiliates
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 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

7/10

Q1 2019502,083
339,362
162,721
121,378
41,343Q1 2020455,159
305,280
149,879
119,776
30,103

732
1,963
2,162
1,092
5,949

504
1,733
—
721
2,958

992
—
906
1,427
3,325
43,967

864
92
428
1,456
2,840
30,221

522
360
883

20
55
75

—
995
11
88
1,094
43,757
18,84424,913533
24,380

46
1,654
3
3,131
4,834
25,463
11,156
14,306718
13,588August 4, 2020

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

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Consolidated Results

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Q1 2019
24,913Q1 2020
14,306(5,264)

6,860

(59)
(23,947)
1,867(5)(4,779)
1,091

(31)

1,541

(27,434)(2,521)

4,708
19,014(2,847)327

18,053960

August 4, 2020

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 goodwill(Decrease) increase in provision for periodic repairs
Increase (decrease) in provision for product warranties(Decrease) increase 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) 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 in inventories
Decrease 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 depositsProceeds 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

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Q1 2019

Q1 2020

43,757
21,625
115,267
(40)
(590)
82

25,46325,951
36,320—438(180)

(228)

712

(879)
(2,695)992(2,162)(522)—(360)
995
19,382(15,130)(21,372)(21,476)
8,216(4,292)30,5804,519(494)(18,732)
15,872(762)(2,237)
864
92
(20)
46
(55)
1,654
55,249(18,682)(14,390)(23,917)
5,451(4,126)57,873
3,738(366)(11,106)
50,139(457)
12,132(27,618)220(2,825)(1,517)
5,355

(749)
691
(27,239)
79(3,669)(2,287)28(2,363)—(862)(2,334)3,990(129)(16,406)—(248)
643(88)(32,839)

August 4, 2020

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Increase (decrease) 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 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

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Consolidated Results

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Q1 2019

Q1 2020

13,206
16,00020(203)—(48)(10,005)
1(23,742)(708)(80,982)(52,000)
90,000(196)
50,000(338)(1)
0(22,206)(556)—(307)

175(5,304)(4,279)(10,117)
180,520147(16,438)
(524)
338
204,77186

1,700

170,489

206,809

August 4, 2020