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

May 10, 2019

Consolidated Results for Fiscal 2018:
April 1, 2018 – March 31, 2019
(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 2018
2,170,403 [+6.3%]
209,587 [+5.6%]
219,976 [+3.5%]
147,512 [−13.4%]
105.66
—
11.1%
9.0%
9.7%

FY 2017
2,042,216 [+8.5%]
198,475 [+24.6%]
212,544 [+32.3%]
170,248 [+48.0%]
121.93
—
14.0%
8.7%
9.7%
* Yen

Notes:• Comprehensive income was ¥148,696 million during fiscal 2018, and ¥177,717 million during fiscal
2017.
• Equity in earnings of affiliates was ¥12,112 million during fiscal 2018, and ¥13,137 million during
fiscal 2017.
2. Financial position
At fiscal year end March
Total assets
Net assets
Net worth/total assets
Net worth per share*

2019
2,575,203
1,402,710
53.6%
989.512018
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 March 31, 2019, was ¥1,381,485 million; as of March 31, 2018, ¥1,287,387 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

FY 2018
212,062(198,917)
17,388
180,520

FY 2017249,891(110,294)(134,412)
148,596

May 10, 2019
1/19

II. Cash Dividends

Fiscal year
2017
2018
2019
(forecast)

Cash dividends per share*
Total
Q1
Q2
Q3
Q4
annual— 14.00 — 20.00 34.00— 17.00 — 17.00 34.00
—

—

—

—

Total annual
dividend
amount47,48447,484

Dividends/
consolidated
net income
27.9%
32.2%

36.00

Dividends/
consolidated
net worth
3.9%
3.6%

34.1%
* Yen

III. Forecast for Fiscal 2019 (April 1, 2019 – March 31, 2020)(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
1,088,000 [+4.5%]
97,500 [−6.5%]
102,000 [−7.5%]
67,000 [−15.1%]
47.99

For the fiscal year
2,268,000 [+4.5%]
205,000 [−2.2%]
214,000 [−2.7%]
147,500 [−0.0%]
105.65* 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:
Sage Automotive Interiors, Inc. and Asahi Kasei Materials America, Inc.
2. Changes in accounting policies, changes in accounting estimates, and retroactive restatementi. Changes in presentation
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 year ended March 31,
2019. Accordingly, all deferred tax assets are shown under investments and other assets, and all
deferred tax liabilities are shown under noncurrent liabilities.
Due to this change, in the consolidated balance sheets for the year ended March 31, 2018,
deferred tax assets of ¥20,032 million under current assets and ¥8,983 million from among deferred
tax liabilities under noncurrent liabilities are included in the ¥17,775 million shown as deferred tax
assets under investments and other assets, while deferred tax liabilities are shown as ¥36,639 million.
Consolidated balance sheets:
Asset retirement obligations, which were reported separately under current liabilities andnoncurrent liabilities for the year ended March 31, 2018, are included in other from the year ended
March 31, 2019, due to diminished materiality. Consolidated balance sheets for the year ended
March 31, 2018, are restated to reflect this change. As a result, ¥557 million, previously reported as
Asahi Kasei
Consolidated Results

May 10, 20192/19

asset retirement obligations, is included in other under current liabilities, and ¥3,282 million,
previously reported as asset retirement obligations, is included in other under noncurrent liabilities.
ii. 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 thedeclining-balance method for depreciation of property, plant and equipment (except lease assets), thiswas changed to the straight-line method from the year ended March 31, 2019.
The Asahi Kasei Group has continued to acquire overseas companies in recent years, and since
overseas 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
with competitive superiority, as well as investments for modification and rationalization, based on
the “Cs for Tomorrow 2018” three-year strategic management initiative. Large-scale investments indomestic manufacturing plants were implemented, especially in the Material sector, during the year
ended March 31, 2019, the final fiscal year of the three-year period. As such expansions of
manufacturing plants are successively starting operation beginning from the year ended March 31,
2019, the situation of domestic capital expenditure is changing.
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 Kasei
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 ¥9,727 million higher, and ordinary income andincome before income taxes were each ¥9,760 million higher, than they would have been with theprevious method.
3. 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

Asahi Kasei
Consolidated Results

2019
1,402,616,332
6,491,383
1,396,129,891

2018
1,402,616,332
6,491,617
1,396,322,137

May 10, 2019
3/19

V. Summary of Non-Consolidated Results
1. Results for fiscal 2018 (April 1, 2018 – March 31, 2019)(1) Operating results (percent change from previous year in brackets)
FY 2018
665,839 [+7.1]
51,072 [+15.6%]
106,679 [+13.3%]
89,279 [+5.9%]
63.95—

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

FY 2017621,875 [+8.6]
44,192 [+47.1%]
94,163 [+18.9%]
84,284 [−57.6%]
60.36
—
* Yen

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

2019
1,759,139
778,22344.2%
557.42

2018
1,649,268
758,25446.0%
543.11* Yen

VI. Overview of Consolidated Results
1. Consolidated group results
The global economy was favorable during the first half of fiscal 2018 buoyed by a strong US
economy, but the outlook became increasingly obscure during the second half as the Chinese
economy slowed considerably due to US-Chinese trade friction. Although firm economic growthcontinued in Japan despite the occurrence of natural disasters, concern of a downturn spread during
the second half due to such global economic trends.
Consolidated net sales of Asahi Kasei Corp. and its consolidated subsidiaries and equitymethod affiliates (the Asahi Kasei Group) increased by ¥128.2 billion from a year ago to ¥2,170.4
billion, operating income increased by ¥11.1 billion to ¥209.6 billion, and ordinary income
increased by ¥7.4 billion to ¥220.0 billion with improved terms of trade in chemical operations in
the Material segment, as well as generally firm sales overall. Net income attributable to owners of
the parent decreased by ¥22.7 billion to ¥147.5 billion with lower gain on sales of investment
securities and absence of the previous year’s one-time beneficial effect of the US tax reform.
2. Results by operating segment
The Asahi Kasei Group’s operations are described by major business classification: three reportablesegments of Material, Homes, and Health Care, together with an “Others” category.
MATERIAL
Sales increased by ¥88.5 billion from a year ago to ¥1,176.2 billion, and operating income
increased by ¥7.6 billion from a year ago to ¥129.6 billion.
Although fibers & textiles operations were impacted by higher feedstock costs, sales andoperating income increased with greater shipments of nonwovens such as Lamous™ microfiber
suede and Bemliese™ cupro nonwoven fabric, improved profitability of Bemberg™ cupro fiber,
and the consolidation of Sage Automotive Interiors, Inc.
Among chemical operations, in petrochemicals, sales and operating income increased withimproved terms of trade for acrylonitrile and absence of the previous year’s impact from a
maintenance turnaround at the naphtha cracker of Asahi Kasei Mitsubishi Chemical Ethylene Corp.
In performance polymers, although terms of trade for engineering plastics improved, terms of trade
Asahi Kasei
Consolidated Results

May 10, 20194/19

for synthetic rubber were not as favorable as in the previous year, and sales increased while
operating income was flat. In performance materials and consumables, sales of ion-exchange
membranes were firm while shipments of electronic materials declined, and sales increased but
operating income decreased.
Among electronics operations, although shipments of Li-ion battery separator increased, thelead-acid battery separator business was impacted by lower shipments and increased costs
associated with capacity expansion, and sales in separators increased while operating income
decreased. Sales and operating income in electronic devices decreased as sales of devices for
smartphones were lower than in the previous year.
HOMES
Sales increased by ¥18.8 billion from a year ago to ¥659.8 billion, and operating income increasedby ¥3.8 billion from a year ago to ¥68.2 billion.
Sales decreased in order-built homes operations as the number of unit-home buildingsdelivered decreased, but operating income was flat as an effect of cost reduction. The value oforders increased by 11.3% with firm orders for unit homes and some rush demand ahead of theupcoming consumption tax increase seen for apartment buildings. Rental management andcondominiums in real estate performed well, and remodeling operations were firm. Sales andoperating income increased for homes operations overall.
Sales and operating income increased in construction materials operations with greater
shipments of each product.
HEALTH CARE
Sales increased by ¥19.9 billion from a year ago to ¥316.2 billion, and operating income increasedby ¥2.4 billion from a year ago to ¥41.8 billion.
Shipments of Teribone™ osteoporosis drug and Kevzara™ agent for rheumatoid arthritis
increased, but sales and operating income in pharmaceutical operations decreased with reduced
reimbursement prices and lower shipments of other products due to competition from generics.
Although shipments of Planova™ virus removal filters increased, dialysis products were
impacted by reduced reimbursement prices, and sales in medical devices operations increased
while operating income decreased.
Sales and operating income in critical care operations grew with considerably increased
shipments of defibrillators for professional use.
OTHERS
Sales increased by ¥1.0 billion from a year ago to ¥18.3 billion, and operating income increased by¥0.5 billion from a year ago to ¥2.4 billion.

Asahi Kasei
Consolidated Results

May 10, 20195/19

VII. 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
Deferred tax assets
Other
Allowance for doubtful accounts
Subtotal
Total noncurrent assets
Total assets

Asahi Kasei
Consolidated Results

At end ofMarch 2018

At end ofMarch 2019

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

193,893
350,716
201,699
131,686
93,961
82,900(3,461)
1,051,393

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
562,048

547,422(294,536)
252,886
1,439,166(1,222,201)
216,966
63,88910,159(9,423)736
64,188160,631(137,930)
22,701
621,366

252,724
161,898
414,621319,898
210,080
529,978

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

296,330
19,99327,50829,052(418)
372,465
1,523,810
2,575,203

May 10, 20196/19

Liabilities
Current liabilities
Notes and accounts payable–trade
Short-term loans payable
Commercial paper
Current portion of bonds payable
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

At end ofMarch 2018

At end ofMarch 2019

171,413118,018
20,000—199
105,787
29,714
70,142
28
3,185
2,730

180,429
97,57977,00020,000164
113,221
24,97175,836
82
5,342
3,102

2,425

2,251

65,505589,146

81,877
681,853

20,000143,176352
36,639172
3,263

20,000209,878
253
48,299
289
2,929

2,699

3,018

170,634
20,65815,198412,793
1,001,939

168,685
21,143
16,145490,639
1,172,493

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

103,389
79,7081,077,586(3,936)
1,256,747

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

101,971(40)
42,020(19,213)
124,738
21,225
1,402,710
2,575,203

May 10, 2019
7/19

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 losses
Business structure improvement expenses
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

FY 2017
2,042,216
1,393,111
649,105450,630
198,475

FY 2018
2,170,403
1,481,855
688,548
478,960
209,587

2,078
6,626
13,137
5,961
27,802

3,094
6,060
12,112
4,238
25,504

4,594
2,971
6,169
13,733
212,544

4,371
2,686
8,058
15,115219,976

15,164534
15,698

11,580655
12,235

31
6,261
2,158
1,460
9,908
218,333
63,239(17,095)
46,143
172,190
1,941
170,248

173
6,630
11,0903,921
21,814
210,397
63,730(3,148)60,582
149,8152,303
147,512

May 10, 20198/19

(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

FY 2017
172,190

FY 2018
149,815

7,651(19,058)37(12,252)
9,735

(132)
12,464
4,311

356

1,297

5,528
177,717(1,119)148,696

175,557
2,160

146,3392,357

May 10, 20199/19

3. Statements of changes in net assets
FY 2017

FY 2018

Shareholders’ equity
Capital stock
Balance at beginning of fiscal year

103,389

103,389

Balance at end of fiscal year

103,389

103,389

79,44379,440

1
(4)
(3)

6
262
268

79,44079,708

850,532

981,934(39,106)
170,248259(51,674)
147,512(187)

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

131,402
981,934

95,652
1,077,586(3,242)(3,930)

(688)
1

(40)
34

Total changes of items during the period
Balance at end of fiscal year(687)
(3,930)(6)(3,936)

1,030,122

1,160,833(39,106)
170,248
(688)
2
259
(4)
130,7121,160,833(51,674)
147,512
(40)
40
(187)
262
95,914
1,256,747

Capital surplus
Balance at beginning of fiscal year
Changes during the fiscal year
Disposal of treasury stock
Capital increase of consolidated subsidiaries
Total changes of items during the period
Balance at end of fiscal year
Retained earnings
Balance at beginning of fiscal year
Changes during the fiscal year
Dividends from surplus
Net income attributable to owners of the parent
Change of scope of consolidation

Total shareholders’ equity
Balance at beginning of fiscal year
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
Capital increase of consolidated subsidiaries
Total changes of items during the period
Balance at end of fiscal year

Asahi Kasei
Consolidated Results

May 10, 201910/19

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
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
Capital increase of consolidated subsidiaries
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

FY 2017

FY 2018

113,475

121,128

7,653
7,653
121,128(19,157)(19,157)
101,971

55

92

37
37
92

(132)
(132)
(40)

40,831

28,676(12,155)(12,155)
28,676

13,344
13,34442,020(33,140)(23,343)

9,797
9,797
(23,343)

4,130
4,130
(19,213)

121,222

126,553

5,331
5,331
126,553(1,815)(1,815)
124,738

16,771

17,8271,057
1,057
17,8273,398
3,398
21,225

1,168,115

1,305,214(39,106)
170,248
(688)
2
259
(4)
6,388
137,100
1,305,214(51,674)
147,512
(40)
40
(187)
262
1,582
97,496
1,402,710

May 10, 201911/19

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
Increase in provision for grant of shares
Increase in provision for periodic repairs
Increase in provision for product warranties(Decrease) increase in provision for removal cost of property,
plant and equipment
Decrease 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) decrease in notes and accounts receivable–trade
Increase in inventories
Increase (decrease) in notes and accounts payable–trade
Increase 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

FY 2017

FY 2018

218,333
95,415
2,158
18,048
(159)
200
1,280
280

210,397
84,556
11,09019,490
(159)
170
1,823
364

(1,066)145(2,137)(4,875)(8,704)
4,594(13,137)(15,164)
31
(534)
6,261
(38,986)(11,815)
23,0206,014(2,463)
17,259293,851
10,267(4,736)(49,492)
249,891—(4,287)(9,154)
4,371(12,112)(11,580)
173
(655)
6,630
3,942
(57,968)
(776)
5,859
5,266
15,328272,914
11,247(4,412)(67,687)
212,062(9,508)
3,012(82,909)
1,601(13,363)(11,564)
17,774(13,812)
7,880(114,718)
652(10,136)(2,624)
17,030—(93,487)—(45,261)
30,568(645)(110,294)(2,764)(5,092)
18,813(659)(198,917)

May 10, 201912/19

Cash flows from financing activities
Net decrease in short-term loans payable(Decrease) increase in commercial paper
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of bonds 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
Purchase of shares in subsidiaries not resulting in change inscope of consolidation
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

FY 2017

FY 2018(28,935)(36,000)
15,395(23,532)—(20,000)
(389)
(688)
2
(39,106)(1,141)(36,840)
57,00085,492(53,833)
20,000
—
(237)
(40)
40
(51,674)(1,155)—(1,148)(18)(134,412)
(937)
4,247
144,077(217)
17,388543
31,077
148,596272

846

148,596

180,520

VIII. Business combinations
Business combinations by purchase1) Senseair AB
1. Outline of business combination(1) Name and nature of business of counterparty
Name of acquired company: Senseair AB
Nature of business: Manufacture and sale of NDIR gas sensor modules(2) Main reasons for the acquisition
In addition to joint development through which Senseair’s optical path design technology andmanufacturing know-how for gas sensors is combined with the small, high-quality IR light emitting
elements and detectors based on the core technology for compound semiconductors of consolidated
subsidiary Asahi Kasei Microdevices Corp., the acquisition will make it possible for the twocompanies to more deeply integrate their technological knowledge and market networks, enablingan expansion of business activities in the market for air, gas, and alcohol sensors, where rapid
growth is forecasted.
(3) Acquisition date
April 4, 2018(4) Statutory form of business combination
Stock purchase for cash as consideration(5) Name of company after transaction
Senseair AB
Asahi Kasei
Consolidated Results

May 10, 201913/19

(6) Acquired voting right
Voting right before the acquisition: 8.1%
Additional voting right acquired as of the acquisition date: 91.9%
Voting right after the acquisition: 100%
(7) Basic means of materializing the acquisition
Stock purchase for cash as consideration by a consolidated subsidiary
2. The period of acquiree’s results included in the consolidated financial statements
From April 4, 2018, to March 31, 2019
3. Cost of acquisition and details
Stock purchase price: ¥6,079 million
Purchase price: ¥6,079 million
4. Major acquisition related costs
Advisory fees and others: ¥295 million
5. Difference between cost of acquisition and total of individual transactions leading to the acquisition¥173 million
6. Amount of goodwill, measurement principle, amortization method, and useful lifea) Amount of goodwill: ¥4,171 millionb) Measurement principle:
Goodwill is measured as the excess of the purchase price over the fair value of identifiable assets
acquired and liabilities assumedc) Amortization method and useful life:
Straight-line method over 20 years
7. Details of assets acquired and liabilities assumed as of the acquisition dateCurrent assets¥1,296 million
Noncurrent assets¥1,544 million
Total assets¥2,840 million
Current liabilities¥580 million
Noncurrent liabilities¥352 million
Total liabilities¥932 million
8. Amount of identifiable intangible assets other than goodwill, its details and major weighted average
useful lifea) Purchased price allocated to intangible assets and its major items
Customer-related assets¥693 million
Technology-related assets ¥681 millionb) Major weighted average useful life
Customer-related assets
20 yearsTechnology-related assets 10 years
Total
15 years
9. Pro forma effects on the consolidated statements of income assuming the business combination
had been completed at the beginning of fiscal year, and method of calculation thereofInformation is omitted due to immateriality. This note is not subject to audit.

Asahi Kasei
Consolidated Results

May 10, 2019
14/19

2) Sage Automotive Interiors, Inc.
1. Outline of business combination(1) Name and nature of business of counterparty
Name of acquired company: Sage Automotive Interiors, Inc
Nature of business: Development, manufacture, and sale of fabrics as automotive interior material(2) Main reasons for the acquisition• Enhanced access to vehicle manufacturers and Tier-1 suppliers, in order to swiftly and accurately
ascertain trends and needs in the automotive industry• Proposal and provision of comprehensive vehicle interior designs and solutions leveraging Sage’s
design and marketing capabilities in combination with various Asahi Kasei products andtechnologies such as fibers, plastics, and sensors• Utilizing Sage’s sales, manufacturing, and marketing bases as management infrastructure andresources for the global expansion of Asahi Kasei’s operations(3) Acquisition date
September 27, 2018(4) Statutory form of business combination
Stock purchase for cash as consideration(5) Name of company after transaction
Sage Automotive Interiors, Inc.
(6) Acquired voting right
Voting right before the acquisition: 0%
Voting right after the acquisition: 100%
(7) Basic means of materializing the acquisition
Stock purchase for cash as consideration by a special purpose subsidiary
2. The period of acquiree’s results included in the consolidated financial statements
From October 1, 2018, to March 31, 2019
3. Cost of acquisition and details
Stock purchase price: ¥79,904 million
Purchase price: ¥79,904 million
4. Major acquisition related costs
Advisory fees and others: ¥1,430 million
5. Amount of goodwill, measurement principle, amortization method, and useful lifea) Amount of goodwill: ¥68,171 millionb) Measurement principle:
Goodwill is measured as the excess of the purchase price over the fair value of identifiable assets
acquired and liabilities assumedc) Amortization method and useful life:
Straight-line method over 20 years
6. Details of assets acquired and liabilities assumed as of the acquisition dateCurrent assets¥23,467 million
Noncurrent assets¥59,076 million
Total assets¥82,543 million
Current liabilities¥55,254 million
Noncurrent liabilities ¥11,193 million
Total liabilities¥66,447 million
Asahi Kasei
Consolidated Results

May 10, 2019
15/19

7. Amount of identifiable intangible assets other than goodwill, its details and major weighted average
useful lifea) Purchase price allocated to intangible assets and its major items
Customer-related assets¥45,886 million
Trademarks¥2,953 millionb) Major weighted average useful life
Customer-related assets
19 years
Trademarks
20 years
Total
19 years
8. Pro forma effects on the consolidated statements of income assuming the business combination
had been completed at the beginning of fiscal year, and method of calculation thereofInformation is omitted due to immateriality. This note is not subject to audit.
3) Erickson Framing Operations LLC
1. Outline of business combination(1) Name and nature of business of counterparty
Name of acquired company: Erickson Framing Operations LLC
Nature of business: Manufacture, sales, and installation of panelized walls and trusses, along withdoors and trim in Arizona, California, and Nevada(2) Main reasons for the acquisition
A leading US provider of building components including panelized walls and roof trusses forwooden houses, Erickson serves homebuilders by supplying and installing the building components
for more than 3,000 houses per year. Whereas houses in the US are generally built by fabricating
and assembling at the construction site, Erickson’s panelized framing systems streamline theconstruction process by pre-fabricating components at a factory to be shipped and erected at thebuilding site. As construction costs in the US continue to climb due to a persistent manpower
shortage and rising material prices, there is growing demand for pre-fabricated building systems
which enable cost reduction with less labor and shorter construction time. Consolidated subsidiary
Asahi Kasei Homes believes that this presents an opportunity to leverage the systemization knowhow gained through its business of providing high quality and high value-added Hebel Haus™
order-built unit homes in Japan, leading to further enhancement of Erickson’s pre-fabricatedbuilding system in order to create new value for the US housing market.
(3) Acquisition dateNovember 30, 2018(4) Statutory form of business combination
Membership interests purchase for cash as consideration(5) Name of company after transaction
Erickson Framing Operations LLC(6) Acquired voting right
Voting right before the acquisition: 0%
Voting right after the acquisition: 100%
(7) Basic means of materializing the acquisition
Membership interests purchase for cash as consideration by a consolidated subsidiary
2. The period of acquiree’s results included in the consolidated financial statements
From January 1, 2019, to March 31, 2019
Asahi Kasei
Consolidated Results

May 10, 2019
16/19

3. Cost of acquisition and details
Membership interests purchase price: ¥10,050 million
Purchase price: ¥10,050 million
4. Major acquisition related costs
Advisory fees and others: ¥281 million
5. Amount of goodwill, measurement principle, amortization method, and useful lifea) Amount of goodwill: ¥1,230 millionb) Measurement principle
Goodwill is measured as the excess of the purchase price over the fair value of identifiable assets
acquired and liabilities assumed.
c) Amortization method and useful life
Straight-line method over 20 years
6. Details of assets acquired and liabilities assumed as of the acquisition dateCurrent assets¥3,728 million
Noncurrent assets¥9,137 million
Total assets¥12,864 million
Current liabilities¥4,240 million
Noncurrent liabilities¥38 million
Total liabilities¥4,278 million
7. Amount of identifiable intangible assets other than goodwill, its details and major weighted average
useful lifea) Purchased price allocated to intangible assets and its major items
Customer-related assets¥6,779 million
Order backlog¥1,138 millionb) Major weighted average useful life
Customer-related assets
19 years
Order backlog
4 years
Total
17 years
8. Pro forma effects on the consolidated statements of income assuming the business combination
had been completed at the beginning of fiscal year, and method of calculation thereofInformation is omitted due to immateriality. This note is not subject to audit.

Asahi Kasei
Consolidated Results

May 10, 2019
17/19

IX. Segment Information
1. Reporting segments(1) Fiscal 2017

640,988296,258

2,024,966

17,251

2,042,216

5,014
1,092,734

39
641,026

34
296,292

5,086
2,030,052

27,55744,80732,643
2,074,860

121,925
1,332,202

64,357483,342

39,464450,846

225,746
2,266,390

1,870
78,427

227,616
2,344,817

Subtotal

1,087,720

HealthCare

Total

AssetsOthers1

Intersegment
Total
Operating income

Homes

Sales
Customers

Material

Reporting segments

Other items
Depreciation and
56,002
9,506
19,34084,848
1,665
86,513amortization2
Amortization of goodwill
8,961
—
8,821
17,782266
18,048Investments in associates
accounted for using
45,02012,318450
57,78817,172
74,961equity method
Increase in property, plantand equipment, and59,814
18,431
12,18690,431
1,226
91,657
intangible assets
1 Plant and environmental engineering, research and analysis, employment agency/staffing operations, etc.
2 Excluding amortization of goodwill.

(2) Fiscal 2018659,754207

316,166
34

2,152,138
5,307

18,26531,3592,170,403
36,666

1,181,283
129,565
1,492,277

659,961
68,161
523,692

316,201
41,825472,846

2,157,445
239,5512,488,815

49,6242,411
84,8732,207,069
241,9622,573,688

Subtotal

1,176,217
5,066

HealthCare

Total

AssetsOthers1

Total
Operating income2

Homes

Sales
Customers
Intersegment

Material

Reporting segments

Other items
Depreciation and
50,471
9,069
18,042
77,582
1,375
78,957amortization3
Amortization of goodwill
10,70015
8,774
19,490—19,490Investments in associates
accounted for using
55,424
11,671
226
67,321
19,42486,745equity method
Increase in property, plantand equipment, and86,64017,613
17,306
121,558
1,624
123,182
intangible assets
1 Plant and environmental engineering, research and analysis, employment agency/staffing operations, etc.
2 As shown IV. Other Information 2. Changes in accounting policies, changes in accounting estimates, andretroactive restatement, the company and its subsidiaries in Japan changed from the declining-balance method to thestraight-line method for depreciation of property, plant and equipment (except lease assets) from the year ended
March 31, 2019. Due to this change, operating income in Material was ¥7,111 million higher, in Homes ¥1,005
million higher, in Health Care ¥674 million higher, and in Others ¥937 million higher than it would have been using
the previous method.
3 Excluding amortization of goodwill.

Asahi Kasei
Consolidated Results

May 10, 201918/19

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 2017
2,030,052
44,807(32,643)
2,042,216

Fiscal 2018
2,157,445
49,624(36,666)
2,170,403

Operating income
Fiscal 2017
Fiscal 2018
Total of reporting segments
225,746
239,551
Operating income in “Others” category
1,870
2,411
Elimination of intersegment transactions
381
(133)
Corporate expenses, etc.*(29,522)(32,241)
Operating income on consolidated statements of income
198,475
209,587* Corporate expenses, etc. include corporate revenue, basic research expense, and groupmanagement expense, etc. which are not allocated to reporting segments.

AssetsFiscal 2017
Fiscal 2018
Total of reporting segments
2,266,390
2,488,815
Assets in “Others” category
78,42784,873Elimination of intersegment transactions(512,163)(425,141)
Corporate assets*
474,499
426,656
Total assets on consolidated balance sheets
2,307,154
2,575,203* Corporate assets include assets of Asahi Kasei Corp.—surplus operating funds (cash anddeposits), long-term investment capital (investment securities, etc.), and land, etc.

X. Geographic information
1. Fiscal 2017
(1) Net salesJapan
1,274,548

United States
191,765(2) Property, plant and equipment
Japan
United States
384,076
85,003

China
183,425

Other regions
392,477

Other regions
92,969

Total
562,048

China
211,504

Other regions
419,770

Other regions
88,053

Total
621,366

Total
2,042,216

2. Fiscal 2018
(1) Net salesJapan
1,311,136

United States
227,993(2) Property, plant and equipment
Japan
United States
428,900
104,413

Asahi Kasei
Consolidated Results

Total
2,170,403

May 10, 201919/19