Summary of Financial Results Briefing for Fiscal 2022
May 10, 2023
Asahi Kasei Corporation
Participants
Toshiyasu Horie
CFO
Motomichi Kishino
Senior General Manager, Corporate Accounting & FinanceYozo Sato
Senior Managing Executive, Corporate Accounting & FinanceTakuya Takahashi
Senior Managing Executive, Environmental Solutions SBU
Takahiro Onodera
General Manager, Separator Planning & Strategy, Environmental Solutions SBU
Tsuguo Moriwaki
Senior General Manager, Planning & Coordination, Mobility & Industrial SBU
Hiroyuki Igarashi
Senior General Manager, Planning & Coordination, Life Innovation SBU
Yuta Kume
General Manager, Accounting & Control Dept., Asahi Kasei Homes Corp.
Masayuki Takahashi
General Manager, Business Strategy & Planning, Asahi Kasei Pharma Corp.
Tomoo Otsubo
General Manager, Investor Relations

Presentation
P. 2 Focus of FY 2022 results and FY 2023 forecast
Horie: Today’s presentation will focus on the FY 2023 forecast, which assumes that the businessenvironment will remain generally difficult in H1 of the year, but will gradually improve in H2.
Regarding shareholder returns, the year-end dividend for FY 2022 was 18 yen per share,as planned, for a total of 36 yen per share for the full year, and we basically presume we can maintainthis level for FY 2023.
With regard to the business portfolio transformation outlined in the medium-term
management plan, we recently announced the decision to close the Iwakuni Plant of Asahi Kasei
Construction Materials.
1. Consolidated results for FY 2022
P. 4

Financial results for FY 2022 (consolidated)
FY 2022 sales were 2,726.5 billion yen, a record high. Operating income was 128.4 billion
yen, slightly higher than the forecast announced on March 8.
Net loss attributable to owners of the parent of 91.3 billion yen was recorded due to theimpact of the 186.4 billion yen impairment loss on Polypore.

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P. 5

Results by segment
Operating income in Health Care declined from FY 2021. In Critical Care, there were thetemporary impact of acquisitions and difficulty in parts procurement, as well as normalization of theeffect from a surge in demand for ventilators.
Homes performed well, posting an increase in operating income over the previous year.
Material recorded a significant decrease in operating income from the previous year. In
Basic Materials, in addition to deterioration of the terms of trade, the supply-demand balance
worsened due to economic slowdown mainly in China. In businesses other than Basic Materials,
shipments of LIB separators and engineering plastics declined.
P. 6

Statements of income
Non-operating income/loss decreased by 16.2 billion yen from the previous year to a lossof 6.8 billion yen. The reasons include deterioration of net equity in earnings of affiliates due to thedecreased earnings of PTT Asahi Chemical Company Limited and other companies. In addition,some businesses with long lead times from order receipt to delivery suffered foreign exchange losses
due to yen depreciation because of early foreign exchange forward contracts.
P. 7

Extraordinary income and loss
Extraordinary income/loss deteriorated significantly from the previous year due to therecording of an impairment loss on Polypore. Other factors include a provision for removal costs ofthe coal-fired equipment at a power plant in Nobeoka, Miyazaki Prefecture, in loss on disposal of
noncurrent assets, and expenses related to the Bemberg plant fire in April 2022 in loss on fire at plantfacilities.
P. 8

Balance sheets
On the balance sheets, intangible assets decreased due to the impairment on Polypore,
while inventories increased. As a result, total assets amounted to 3,454.5 billion yen, up
approximately 100 billion yen from the end of March 2022.
In net assets, retained earnings decreased in relation to the impairment on Polypore, whilein liabilities, noncurrent liabilities increased.
P. 9

Cash flows
Operating cash flow was a net cash inflow of approximately 90 billion yen due to anincrease in working capital and other factors. Free cash flows after dividends were a net cash outflow
of approximately 170 billion yen.
P. 10

Main KPIs
In FY 2022, the operating margin declined significantly. ROIC, the numerator of which isoperating income minus income taxes, also dropped to 4%; ROE, the numerator of which is net
income, was negative in FY 2022.
2. Forecast for FY 2023
P. 13

Current situation and outlook for management environment
Regarding the business environment as the premise for the FY 2023 forecast, we expect a
gradual improvement toward H2 of the year in general, but still quite severe conditions in H1.
P. 14

FY 2023 operating performance forecast (consolidated)
For FY 2023, we are forecasting record-high sales of 2,865 billion yen and operating
income of 160 billion yen. The operating margin is expected to improve though not yet fully recover.
Net income is expected to be 100 billion yen, a significant improvement from the net loss recorded
in FY 2022 due to the impairment on Polypore. The forecast assumes exchange rates of 130 yen per
US dollar and 135 yen per euro, and 68,000 yen per kiloliter for the domestic naphtha price.

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P. 15FY 2023 operating performance forecast by segment
Now I will explain the operating income trends for each segment compared to FY 2022.
In the Health Care segment, the Health Care business category is expected to see a decreasein operating income due to higher R&D and activity costs in Pharmaceuticals and the impact ofhigher feedstock and fuel costs in Medical, despite steady sales of mainstay products. Critical Careis expected to see an increase in operating income, as the parts procurement difficulties are expected
to gradually improve and demand is expected to recover in H2. The segment as a whole is expected
to post increased operating income.
Homes is also expected to increase its operating income with steady performance.
In Material, there is a decrease in amortization of goodwill, etc., of 14.7 billion yen related
to the impairment on Polypore, but operating income is expected to increase even excluding this.
P. 16

Shareholder returns
As mentioned earlier, we intend to maintain the current dividend level in FY 2023, despite
the uncertainties in the business environment.
3. Results by segment
P. 18

Material: Sales and operating income increase/decrease
The graph shows the factors that contributed to increases and decreases in Material fromFY 2021 to FY 2022. The largest factor after feedstock costs is the others factor of -51.2 billion yen,of which approximately -20.0 billion yen is for Mobility & Industrial and -9.0 billion yen is for Life
Innovation. In Mobility & Industrial, shipments of engineering plastics declined due to sluggish
demand, and fixed cost deterioration, such as capacity utilization difference, was a major negative
factor. In Life Innovation, negative factors included a decrease in the transfer of expenses related tothe semiconductor plant fire to extraordinary loss, and an increase in fixed costs due to capacity
expansion etc. in several businesses.
The others factor in Environmental Solutions was -0.6 billion yen, but this includes 30.2
billion yen of profit from internal sales. Actually, there is a negative factor of over 30.0 billion yen
from inventory valuation losses, deteriorated fixed costs such as lower capacity utilization due tolower shipments, and other factors. The profit from internal sales is offset for Material as a whole,
but as an adjustment to present the analysis clearly, we put positive and negative 30.2 billion yen in
the feedstock cost factor and the others factor, respectively, in “Others in Material.”
P. 19

Material: Overview by BusinessWe expect operating income/loss in Environmental Solutions to increase from a loss of 2.3
billion yen in FY 2022 to income of 16.4 billion yen in FY 2023, including the effect of a 14.7 billion
yen decrease in amortization of goodwill, etc. on Polypore, as well as a gradual improvement indemand and market conditions in Basic Materials toward H2 of the year. Mobility & Industrial is
expected to see an increase in operating income from 10.8 billion yen to 12.3 billion yen. Although
overall supply and demand will not improve significantly, we expect a recovery in shipments of car
interior materials and engineering plastics. Operating income in Life Innovation is expected toincrease from 27.8 billion yen to 30.5 billion yen with expansion of Digital Solutions, which is oneof our growth businesses.
P. 21

Material: Separator business condition
Let me explain the situation of the separator business in more detail. The graph on the left
shows the sales volume of Hipore wet-process LIB separator. The light blue area is consumer
electronics applications, and the dark blue area is automotive applications. Automotive applications
have been growing since around FY 2020 and now exceed consumer electronics applications.
In the figure on the right, the bar graph shows the sales of the total separator business, andthe line graph shows EBITDA. In FY 2022, EBITDA declined significantly due to decreased demandin high-end consumer electronics applications in China, in addition to a decrease in the average priceof Hipore as the ratio of automotive applications increased.
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P. 22Homes: Sales and operating income increase/decrease
Operating income in Homes increased to 76.0 billion yen in FY 2022 from 72.9 billion yen
in FY 2021. In domestic order-built homes, an increase in the average unit price due to larger andhigher value-added units offset the impact of higher material prices. Real estate and overseas
businesses also grew.
P. 23

Homes: Overview by business
For FY 2023, we expect a slight decrease in operating income in domestic order-built
homes, mainly due to a decrease in orders received in FY 2022. On the other hand, real estate is
expected to see an increase in operating income due to firm performance in the rental managementbusiness and the completion of large condominiums, while overseas operations are also expected tosee an increase in operating income as operating margins improve with progress in passing on higher
material prices in the Australian operations. As a result, the segment as a whole is expected toincrease its operating income compared to FY 2022.
P. 27

Health Care: Sales and operating income increase/decrease
Operating income in Health Care declined to 41.9 billion yen in FY 2022 from 52.2 billion
yen in FY 2021. The others factor is -11.7 billion yen with several special factors. In addition to theimpact of the consolidation of Bionova in Medical, in Critical Care there were the remaining effectof the surge in demand for ventilators due to COVID-19 in FY 2021, the impact of consolidation of
Itamar, and the positive effect of accounting treatment on the Respicardia acquisition in FY 2021.
P. 28

Health Care: Overview by business
In FY 2023, the Health Care business category is forecasting a slight decrease in operating
income. In Pharmaceuticals, license income was high in FY 2022, and an increase in SG&A,
including licensing-in costs, is expected in FY 2023, while steady growth for Veloxis’ Envarsus XR
is forecasted.
Critical Care is expected to see an increase in operating income. In addition to firm
performance of LifeVest, the impact of parts procurement difficulties for defibrillators is expected to
improve toward H2. Orders for defibrillators for professional use have been slowing down since H2of FY 2022, but are expected to improve gradually through H2 of FY 2023.
P. 30

Health Care: Performance trend in Critical Care (dollar-based)
The graph shows the performance of Critical Care in US dollars. As mentioned earlier,several special factors contributed to the decrease in operating income from FY 2021 to FY 2022:
from H2 2019 to H1 2021, there was special demand for ventilators due to COVID-19; FY 2022 saw
the loss of that effect, as well as the negative impact of the consolidation of acquired companies. In
FY 2023, we expect Critical Care to return to a growth path.
Questions and Answers
Questioner 1: Regarding the FY 2023 forecast, while the economy is heading for a downturn, theH2 operating income of 108.5 billion yen is higher than H2 of the year in which the highest income
was recorded for the full year in the past. Please explain your view of the significant increase inprofit from H1 to H2.
Horie: With regard to Material, we have factored in the impact of maintenance turnaround for thenaphtha cracker etc. in the Mizushima Works in H1, but there will be no such turnaround in H2. We
also expect acrylonitrile (AN) market prices to gradually increase from H1 to H2. This is due to thefact that global demand for AN, which declined year-on-year in FY 2022, is expected to increaseagain in FY 2023, and that Chinese manufacturers are expected to add fewer units in FY 2023 than4

in the previous year. In addition, the ammonia price, which had been soaring, is coming down, andthat will have a significant positive impact, too.
As for Homes, in addition to the usual seasonality of domestic order-built homes, where
earnings are weighted toward H2, sales of condominiums in real estate will be concentrated in H2 of
FY 2023. As for overseas operations, despite the financial instability in the U.S., fundamentally there
is a shortage of homes in Arizona and Nevada, where we operate, and demand is expected to recover
toward H2.
In Health Care, sales of AEDs and LifeVest are expected to improve in H2. Parts
procurement difficulties for defibrillators still remain, but they have been resolved to a large extent.
The slowdown in orders for defibrillators for professional use is also expected to improve graduallyfrom H1 to H2.
Questioner 2: Could you elaborate on the FY 2023 forecast for Health Care? In Critical Care, youmentioned that parts procurement difficulties for defibrillators are being resolved. Is the situation nolonger a concern for production? Are there any other risks in this business?
Otsubo: The impact of parts procurement difficulties is expected to be largely resolved between
FY 2022 and FY 2023. Even for those parts that are still difficult to procure, they are not entirely
unavailable, and the situation is improving. As a result, we expect an increase in shipments of AEDs
in particular, in FY 2023. As for defibrillators for professional use, the slowdown in orders since H2of FY 2022 will remain in FY 2023, but the situation is expected to gradually improve.
Questioner 2: Regarding the Health Care business category, sales growth from FY 2022 to FY 2023
is expected to be only 7.5 billion yen for Pharmaceuticals and 10 billion yen for Medical. Sales inPharmaceuticals seems a bit low considering the growth of Envarsus XR, even with the NHI pricereduction. In addition, you mentioned that Medical is affected by soaring feedstock and fuel prices,
but is it difficult to pass on costs to prices even for B-to-B products such as virus removal filters?
Please explain the factors that are putting pressure on the profitability of the Health Care businesscategory in FY 2023, the probability that these factors will be resolved, and the background to them.
M. Takahashi: I will answer about the domestic pharmaceuticals business. We had significant
license income in FY 2022, but this will not repeat in FY 2023. Sales of Teribone, Kevzara, andPlaquenil are expected to grow steadily, but as for Teribone, the increase in autoinjectors is expected
to be partially offset by the decrease in the conventional formulation due to the impact of a generic.
Otsubo: Regarding the overseas pharmaceuticals business, sales of Envarsus XR grew by about
30% from FY 2021 to FY 2022, and are expected to grow similarly through FY 2023.
As for Medical, in addition to the increase in shipments of Planova, we also expect
increased income from Bionova, a CDMO consolidated in July 2022. The higher feedstock and fuelprices will still have an impact, although we are working to raise prices. In addition, we have factored
in an increase in activity costs with the subsidence of COVID-19.
Questioner 3: With regard to Material, I would like to know greater detail on the factors of increase
and decrease in operating income through FY 2023 for each subsegment.
As for Digital Solutions in Life Innovation, the increase in operating income appears to belarge compared to the general demand environment for electronic materials and components. On theother hand, Comfort Life is expected to see a decrease in operating income, and even if there is an
impact from the integration of the spunbond nonwovens business, the decrease appears to be large.
What factors are there respectively?
Regarding Mobility & Industrial, I have the impression that the plan is conservative,
considering the price pass-on situation at Sage and other factors. How do you see the impact of therecovery in automobile production?

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T. Takahashi: I will explain about Environmental Solutions. In Basic Materials, earnings
deteriorated in FY 2022 each quarter from Q1 to Q4. In addition to a general decline in demand,
falling market prices, and worsening terms of trade, the negative impact of inventory valuation loss
due to falling feedstock prices was also a major factor. In addition, there was a one-time factor ofcoal inventory write-down in Q4. In contrast, in FY 2023, we expect a gradual recovery in demand
and an improvement in inventory valuation toward H2. We plan a maintenance turnaround at theMizushima Works in H1, and expect earnings to improve toward H2.
As for businesses other than Basic Materials, one of the major factors is a decrease ingoodwill amortization in the separator business due to the impairment on Polypore. Excluding this,operating income is not forecasted to increase, but shipments of LIB separators are expected to grow.
Moriwaki: Let me explain about Mobility & Industrial. Global automobile production is estimatedto be 76 million units in 2022 and 83 million units in 2023, and in response, we expect an
improvement in shipments and capacity utilization in FY 2023 for engineering plastics, car interiormaterials, and other products. Although feedstock and fuel costs, especially energy costs, areexpected to remain high, we expect operating income to increase year-on-year in FY 2023.
Igarashi: I will explain about Life Innovation. In Digital Solutions, semiconductor-related products
performed well in H1 2022, but market conditions deteriorated in Q3 and Q4. A recovery in market
conditions is expected toward H2 2023. In addition, in both electronic components and electronicmaterials, we expect to obtain new projects in the high-end areas that we are targeting in the medium
term, from H2 2023 onward.
Comfort Life, on the other hand, expects a year-on-year decline in operating income in FY
2023. Market conditions will gradually recover, but fixed costs are expected to increase. Some
expenses related to the Bemberg plant fire, which were transferred to extraordinary loss in FY 2022,
will be returned to operating expenses as operations resume, as well as the impact of higher energy
costs and higher amortization expenses due to capacity expansion in some products.
Questioner 3: With regard to Mobility & Industrial, why are sales flat in FY 2023 despite theassumption that shipments will increase in line with the recovery in automobile production?
Moriwaki: This is due to price declines in some products and market conditions not recovering
enough for some products, especially in H1.
Questioner 3: The H2 2023 forecast for Digital Solutions appears somewhat strong. What kind of
projects are you expecting to obtain in the areas you are targeting?
Igarashi: For example, in the area of substrate materials among electronic materials, we arefocusing on high-performance packaging applications. In the area of electronic components, soundmanagement-related products for automotive applications are beginning to show results for relatively
high-end vehicle models.
Questioner 3: In Environmental Solutions, operating income of the businesses other than Basic
Materials is forecasted to decrease by about 2 billion yen excluding the reduced amortization related
to Polypore. What is the reason for this?
T. Takahashi: In the synthetic rubber business, there is an impact from high-cost inventories
produced in FY 2022. As for the separator business, although shipments are expected to grow, it willtake some time for operating income to recover due to increased fixed costs and other factors.
Questioner 4: I would like to ask you about Health Care. In the Health Care business category, you
explained that sales of Veloxis’ Envarsus XR would grow by about 30% year-on-year in FY 2023,
but sales declined from Q3 to Q4 of FY 2022, and the growth rate from FY 2021 to FY 2022 has also

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slowed down slightly. Please elaborate on the situation. Also, you mentioned that Bionova is
expected to grow in FY 2023. What is your assumption regarding the financial instability in the U.S.?
Regarding Critical Care, defibrillators for professional use have been affected by the
economic conditions in the U.S. How sure are you of recovery toward H2? Also, what was the statusof LifeVest in Q4 2022?
Otsubo: Regarding Envarsus XR in Pharmaceuticals, sales in the U.S. for FY 2022 grew 30% yearon-year, which is in line with our expectations. We expect a similar level of growth in FY 2023, andconsider the decline in sales in Q4 2022 to be within the normal range of fluctuation. Prescriptions
for new kidney transplant patients have increased beyond initial expectations. We believe that ourshare of the tacrolimus market has reached over 15%. Veloxis is obtaining new customers asconstraints on sales activity due to COVID-19 have been removed.
For Bionova in Medical, we expect steady growth in both sales and operating income in
FY 2023. While financial instability in the U.S. has made it difficult for bio-startup companies toraise funds, Bionova has had almost no cancellations, although some customers have postponed
projects or prioritized their pipelines. New orders are also being received.
As for Critical Care, the impact of parts procurement difficulties for defibrillators is
improving, and AED shipments are expected to increase in FY 2023. On the other hand, orders fordefibrillators for professional use have slowed down since H2 2022, and are expected to remain
sluggish until H1 2023. We expect this trend to gradually improve in H2 2023. Regarding LifeVest,
in FY 2022, we were able to offset the impact of lower orders due to a shortage of sales personnel
by improved reimbursement status, etc. In FY 2023, in addition to the improvement in reimbursement
status, an increase in sales personnel will take effect in H2, leading to increased business performance.
Questioner 5: I would like to ask about Material. The operating income of Digital Solutions of Life
Innovation was 3.2 billion yen in Q3 2022 and 500 million yen in Q4 2022. I understand that thisbusiness is highly seasonal, but from there, you plan a significant improvement to 7.1 billion yen in
H1 2023. Please tell us about the status of electronic materials and electronic components,
respectively. Based on the current market conditions, I do not expect much improvement from Q4 to
Q1. I think the impact from smartphones in China is also significant to your company, but how doyou see the improvement?
Also, what is the outlook for shipments of LIB separators in FY 2023 for consumer
electronics and automotive applications, respectively? Will the growth be for European automakers
or North American automakers?
Igarashi: Regarding the operating income of Digital Solutions, the H1 2023 forecast of 7.1 billion
yen is at a lower level than the 6.7 billion yen in Q1 2022, and will only be a partial recovery fromthe 500 million yen in Q4 2022. As the basis for expecting a recovery, for example, according tostatistics from America’s Semiconductor Industry Association, global semiconductor sales (on a 3month moving average) for March 2023 turned positive month-on-month for the first time in 10
months. Also, a major Taiwanese foundry announced that its sales were positive for the second monthin a row on a month-on-month basis, although still negative year-on-year. Our customers’ order plans
also show an increase in volume from October onward, and in some cases from July onward.
Onodera: Regarding the separator business, the sales volume of Hipore LIB separators is shownon page 21 of the briefing material. In FY 2020 and FY 2021, sales for consumer electronics
applications grew significantly due to the COVID-19 stay-at-home demand. In FY 2022, in addition
to the decline in reaction, sales for consumer electronics applications dropped significantly,
especially in Q4, due to the economic slowdown and a change in COVID-19 policy since December
2022 in China. FY 2023 is expected to see a gradual recovery from Q1 to Q4, depending on economic
trends in China. However, it will not reach the levels of FY 2020 and FY 2021.
For automotive applications, FY 2022 saw a decline in shipments in Q1 due to the shortageof automotive parts caused by the Russia–Ukraine situation, in addition to the shortage ofsemiconductors. The circumstances are gradually improving, and we expect an increase in shipments
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from Q1 to Q4 in FY 2023. Through existing customers centered on Asia, we will meet demand in
Asia and Europe, as well as the U.S. where market expansion is expected in the future.
Questioner 5: Is the recovery in consumer electronics applications for specific major smartphone
manufacturers or the overall recovery trend? Also, what is your estimate of the growth in shipmentsof LIB separators in FY 2023?
Onodera: We expect an overall recovery in consumer electronics applications, especially in thesmartphone market in China, and we plan for shipments of LIB separators in FY 2023 to grow by
about 50% over FY 2022.
Questioner 6: In the Homes business category, you are forecasting a year-on-year decrease inoperating income for FY 2023, with operating income of 11.2 billion yen in H1 and 22.9 billion yen
in H2, with a bias toward H2. Is this forecast based on the assumption that orders will recover fromthe current sluggish situation, or are there other factors other than that? Also, your FY 2023 ordertarget is a 10% increase year-on-year. What is the reason for this high growth?
Kume: Performance will increase in H2 because of seasonal factors as well as the increased average
unit price. Regarding the order target, we still have room for growth in the middle- to high-end
market for both unit homes and apartment buildings, and we intend to achieve the target by promoting
larger and higher value-added units, which we have been working on for some time. For unit homes,
we launched a new heavy steel-frame, large-roofed product in April 2023, expanding the productlineup for the affluent class. For apartment buildings, we will pursue collaboration between Asahi
Kasei Homes and Asahi Kasei Realty & Residence, and focus on orders for apartment buildings withhigher added value.
Questioner 6:

Which has more impact on achieving a 10% increase in orders: unit price or volume?

Kume: Unit prices are expected to increase mainly for apartment buildings.
Otsubo:That concludes the financial results briefing. Thank you for your participation.

Note: The forecasts and estimates mentioned in this document are dependent on a variety of assumptions andeconomic conditions. Plans and figures depicting the future do not imply a guarantee of actual outcomes.
Reasonable efforts have been made to ensure the accuracy of the transcription, but no representation or
guarantee is made with respect to the presence of any errors or omissions.

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