Asahi Kasei Corp.
May 9, 2024

Notice of equity in losses of affiliates, impairment loss, loss on valuation of shares, anddifferential between performance forecast and results
Please be informed that Asahi Kasei has recorded equity in losses of affiliates and impairment loss
on its consolidated financial statements for fiscal 2023 (April 1, 2023 – March 31, 2024). Also, adifferential has emerged between the consolidated performance forecast in the fiscal year ended
March 31, 2024 (April 1, 2023 – March 31, 2024) announced on February 7, 2024, and actualresults announced today.
1. Recording of equity in losses of affiliates (consolidated financial statements)
On the consolidated financial statements for the fiscal year ended March 31, 2024, ¥41.7 billion
was recorded as equity in losses of affiliates under non-operating expenses as an effect of therecording of an impairment loss in relation to noncurrent assets of equity-method affiliate PTT
Asahi Chemical Co., Ltd.
2. Recording of impairment loss (consolidated financial statements)
Centered on the Basic Materials business in the Material Sector, a severe operating environment
continues with diminished demand and elevated costs for feedstock, fuel, and logistics. Basedon studies of future recoverability in light of the recent operating environment, impairment loss of¥90.6 billion was recorded under extraordinary loss in the consolidated financial statements forthe fiscal year ended March 31, 2024, as shown below.
Business
Equipment related to asset group for general-purpose
petrochemicals and resins
Equipment for manufacturing regenerated fiber
Goodwill etc. related to gas sensor business
Other equipment for manufacturing, etc.

Amount of impairment loss
¥58.4 billion¥12.2 billion¥4.0 billion¥16.0 billion

3. Recording of loss on valuation of shares of subsidiaries and affiliates (non-consolidatedfinancial statements)
As the actual value of shares of PTT Asahi Kasei Chemical Co., Ltd., an equity-method affiliate, issignificantly diminished, ¥20.3 billion was recorded as loss on valuation of shares of subsidiaries
and affiliates on the non-consolidated financial statements for the fiscal year ended March 31,
2024. The corresponding loss on valuation of shares of subsidiaries and affiliates is eliminated in
the consolidated financial statements for the fiscal year ended March 31, 2024.

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Asahi Kasei Corp.
May 9, 2024

4. Differential between consolidated performance forecast and actual results for the fiscal year
ended March 31, 2024

Previous
forecast
Actualresults
Increase(decrease)
Percentchangecf. fiscal
2022

Net sales(¥ million)

Operatingincome(¥ million)

Ordinaryincome(¥ million)

Net income
attributableto owners ofthe parent(¥ million)

2,775,000

130,000

120,000

80,00057.71

2,784,878

140,746

90,11843,806

31.60

9,878

10,746(29,882)(36,194)

—

0.4%

8.3%

−24.9%−45.2%—

2,726,485

127,716

120,900(91,948)(66.30)Net incomeper share(¥)

5. Reason for differential between forecast and results
Results for net sales were largely in line the previous forecast. Operating income exceeded theprevious forecast with an increase in the Material segment as terms of trade for basic materials
improved. Ordinary income was lower than previously forecasted due to the recording of equity
in losses of affiliates. Regarding net income attributable to owners of the parent, as described ina separate announcement issued today, “(Update to Previous Disclosure) Notice of Loss on Salesof Shares and Gain from Income Taxes by Transfer of Shares between Consolidated Subsidiaries,”from income taxes–current decreased by ¥24.1 billion and from income taxes–deferred decreasedby ¥42.3 billion, but with the recording of the impairment loss described above, the result waslower than previously forecasted.
Please refer to Consolidated Results for Fiscal 2023 issued today.