Asahi Kasei Corporation
Head Office: 1-2-6 Dojimahama, Kita-ku, Osaka, JapanTokyo Head Office: 1-1-2 Yurakucho, Chiyoda-ku, Tokyo, Japan
Security code: 3407
Contact: Corporate Communications, Phone +81-3-3507-2060, Fax +81-3-3507-2495
January 31, 2008

Consolidated Results for 1st to 3rd Quarter Fiscal 2007:
April 1, 2007 – December 31, 2007

(Unaudited; 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 profitOrdinary profit
Net income
Net income per share*
Diluted net income per share*

Q1–Q3 2007
1,240,318 [+4.5%]
98,121 [+4.2%]
98,048 [+4.8%]
61,381 [+8.0%]
43.88—

Q1–Q3 2006
1,187,059 [+8.8%]
94,187 [+15.4%]
93,528 [+15.8%]
56,851 [+22.0%]
40.62
—
* Yen

2. Financial position
At end ofTotal assets
Net assets
Net worth/total assets
Net worth per share*

December 2007
1,492,347
676,89144.8%
478.31

December 2006
1,485,102
644,11342.9%
454.88* Yen
Note: Net worth consists of shareholders’ equity and valuation,translation adjustment and others.
3. Cash flows
Nine months ended December
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Cash and cash equivalents at end of period

2007
29,052(40,569)(111)
90,075

2006
70,306(69,601)(4,207)85,417

II. Cash Dividends
Fiscal year
2006
2007
2007 (forecast)Asahi Kasei
Consolidated Results

Q1——

Cash dividends per share*Q2
Q3
Q4
Total annual
5.00
—
7.00
12.00
6.00
—
13.00
7.00
* Yen
January 31, 2008
p. 1/8III. Forecast for Fiscal 2007 (April 1, 2007 – March 31, 2008)
Net sales
Operating profit
Ordinary profit
Net income
Net income per share*

1,714,000
130,000
129,000
76,00054.34*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 whichcannot be foreseen.
IV. Other Information
1. Changes in significant subsidiaries which affected scope of consolidation during theperiod ended December 31, 2007: None
2. Adoption of simplified accounting method:Yes

Applied to: Income taxes and others
3. Changes in method of accounting: Yes(1) Change in depreciation method for tangible fixed assets:
Beginning on April 1, 2007, tangible fixed assets are depreciated in accordancewith the amended Corporation Tax Law.
(2) Change in industry segments:
With the April 1, 2007, merger of Asahi Kasei Life & Living with Asahi Kasei
Chemicals, the Life & Living segment was combined with the Chemicals segment.
V. Overview of Consolidated Results
1. Consolidated group results
Although the Japanese economy continued to grow during the nine-month period, withstrong corporate earnings and healthy private-sector capital investment, the outlook
for the operating environment has become obscure with concerns about a slowdown in
the US economy triggered by the rise in subprime mortgage defaults and with highfeedstock and fuel prices persisting.
With strong overseas demand and product prices rising to compensate forincreased feedstock costs in the Chemicals segment, consolidated net sales for theperiod increased by ¥53.3 billion (4.5%) from a year ago to ¥1,240.3 billion andoperating profit increased by ¥3.9 billion (4.2%) to ¥98.1 billion. Ordinary profit was¥98.0 billion, an increase of ¥4.5 billion (4.8%). Net income was ¥61.4 billion, anincrease of ¥4.5 billion (8.0%).

Asahi Kasei
Consolidated Results

January 31, 2008
p. 2/8

2. Results by operating segment
With the April 1, 2007, merger of Asahi Kasei Life & Living with Asahi Kasei
Chemicals, the Life & Living segment was combined with the Chemicals segment.
For comparison purposes, results for the year-ago period in the Chemicals segment
have been revised to include those in the Life & Living segment.
CHEMICALS
Sales increased by ¥65.3 billion (10.9%) from a year ago to ¥662.8 billion andoperating profit increased by ¥13.9 billion (33.6%) to ¥55.1 billion.
In volume products there was strong overseas demand for acrylonitrile and otherchemicals and derivative products. In specialty products there were increased
shipments of ion-exchange membranes for chlor-alkali to China.
HOMES
Sales decreased by ¥24.0 billion (8.7%) from a year ago to ¥251.7 billion and operating
profit decreased by ¥6.2 billion (43.6%) to ¥8.1 billion. New orders for order-built
homes were on par with a year ago at ¥222.9 billion.
Housing-related operations such as remodeling performed well. The number ofdeliveries of unit homes decreased significantly as an effect of fewer orders received
through the first half of 2007 and postponement of delivery of some units due toimproper acquisition of ministerial certification by a supplier of certain components ascame to light in late October 2007. The number of condominium units delivered waslower than a year ago, with this year’s condominium deliveries concentrating in thefourth quarter.
PHARMA
Sales increased by ¥4.8 billion (5.9%) from a year ago to ¥85.7 billion and operating
profit decreased by ¥1.3 billion (9.4%) to ¥13.0 billion.
In devices operations there were increased shipments of APS™
polysulfone-membrane artificial kidneys following increased production capacity. In
pharmaceutical operations there was lower licensing income and higher R&D
expenditures.
FIBERS
Sales increased by ¥6.5 billion (8.3%) from a year ago to ¥84.1 billion and operating
profit increased by ¥2.6 billion (96.3%) to ¥5.2 billion.
Overseas operations for Roica elastic polyurethane filament performed wellwith strong demand. Shipments of Bemberg™ regenerated cellulose fiber grew,
especially in overseas markets.
ELECTRONICS MATERIALS & DEVICES
Sales increased by ¥1.1 billion (1.3%) from a year ago to ¥86.8 billion and operating
profit decreased by ¥1.6 billion (8.4%) to ¥17.0 billion.
Electronics materials operations performed well with shipments generally risingwith strong demand. Electronics devices operations had fewer shipments of LSIs andlower product prices as an effect of inventory adjustments in home electronics markets.
CONSTRUCTION MATERIALS
Sales decreased by ¥4.2 billion (8.8%) from a year ago to ¥43.4 billion and operating
profit decreased by ¥1.9 billion (39.8%) to ¥2.9 billion.
Shipments of Hebel™ autoclaved lightweight concrete (ALC) panels and otherbuilding materials and housing materials declined as an effect of the decline inconstruction starts following a revision of building codes in Japan

Asahi Kasei
Consolidated Results

January 31, 2008
p. 3/8SERVICES, ENGINEERING AND OTHERS
Sales increased by ¥3.8 billion (17.1%) from a year ago to ¥25.8 billion and operating
profit increased by ¥0.5 billion (15.9%) to ¥3.5 billion.
Engineering operations performed well with overseas plant engineering work.
VI. Consolidated Balance Sheets

AssetsCurrent assets
Cash on hand and in banks
Notes and accounts receivable, tradeMarketable securities
Inventories
OthersFixed assets
Property, plant and equipment
Intangible fixed assets
Investments and other assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable, trade
Short-term borrowings
Commercial paper
Current portion of corporate bondsOthers
Long-term liabilities
Corporate bonds
Long-term borrowings
Accrued pension and severance costs
OthersTotal liabilities
Net assets
Stockholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock, at cost
Valuation, translation adjustment andothers
Minority interest in consolidated
subsidiaries
Total net assets
Total liabilities, and net assets

Asahi Kasei
Consolidated Results

At end ofMarch 2007

At end ofDec. 2007

Increase(decrease)722,995
101,514300,386400
240,006
80,689736,927
426,959
28,466
281,5021,459,922

792,12389,880
321,590391
287,096
93,166700,224
422,463
25,968
251,794
1,492,347

69,128(11,634)
21,204(9)
47,09012,477(36,703)(4,496)(2,498)(29,708)
32,425503,570

556,760

53,190186,900
63,828—24,000228,842
302,842
60,00069,074125,364
48,403
806,412190,293
37,15675,00022,000232,311258,696
30,00069,906
119,787
39,002815,456

3,393(26,672)
75,000(2,000)3,469(44,146)(30,000)
832(5,577)(9,401)
9,044

561,755
103,389
79,396
380,515(1,544)604,474
103,389
79,419423,682(2,015)42,719—23
43,167(471)

83,90064,450(19,450)

7,855

7,967

112

653,510
1,459,922

676,891
1,492,347

23,381
32,425January 31, 2008
p. 4/8

VII. Consolidated Statements of Income

Net sales
Cost of sales
Gross profit
Selling, general and administrative
expenses
Operating profit
Non-operating income
Interest income
Dividend income
Equity in net earnings ofunconsolidated subsidiaries andaffiliates
OthersNon-operating expenses
Interest expense
OthersOrdinary profit
Special gains
Gain on sales of investment
securities
Gain on sale of property, plantand equipment
Gain on change in equity
Special losses
Loss on sales of investment
securities
Loss on disposal of property,
plant and equipment
Impairment loss
Restructuring charges
Income before income taxes andminority interests

Q1–Q3
2006
1,187,059
891,871295,188

Q1–Q3
2007
1,240,318
932,679
307,639

Increase(decrease)53,25940,80812,451

Percentchange4.5
4.6
4.2

201,001

209,518

8,517

4.2

94,187
7,009
337
2,257

98,121
8,921
551
2,882

3,934
1,912
214
625

4.2—
—
—

1,865

3,234

1,369

—

2,550
7,669
2,880
4,788
93,528
2,053

2,254
8,995
3,077
5,918
98,048
1,653

(296)
1,326
197
1,130
4,520
(400)

—
—
—
—
4.8
—

1,267

943

(324)

—

786

151

(635)

—

—
4,597

559
7,906

559
3,309

—
—

185

274

89

—

4,412

2,416

(1,996)

—

—
—

4,442
774

4,442
774

—
—

90,984

91,794810

0.9

33,740(393)
56,851

29,951(462)
61,381(3,789)
(69)
4,530

—
—
8.0

Income taxes
Minority interests
Net incomeAsahi Kasei
Consolidated Results

January 31, 2008
p. 5/8

VIII. Cash flows

Nine months ended December

2006

2007

Cash flows from operating activities
Income before income taxes and minority
interests
Depreciation and amortization
Increase in notes and accounts
receivable, trade
Increase in inventories
Increase in notes and accounts payable,
trade
OthersCash flows from investing activities
Payments for acquisition of property,
plant and equipment
Payments for purchases of investment
securities
OthersCash flows from financing activities
Effect of exchange rate changes on cash
and cash equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning ofperiod
Cash and cash equivalents held by newly
consolidated subsidiaries
Cash and cash equivalents at end of period

70,306

29,052

Increase(decrease)(41,254)

90,984

91,794810

52,38254,401

2,019(44,123)(23,805)

20,318(39,240)(48,800)(9,560)57,527

5,609(51,918)(47,224)(69,601)(50,147)(40,569)(2,923)29,032(66,007)(39,965)

26,042(3,184)(2,772)412(409)(4,207)

2,168
(111)

2,577
4,096

294

(16)

(310)

(3,209)(11,643)(8,434)86,390101,719

15,3292,236—(2,236)

85,417

90,075

4,658

IX. Operating Segment Information
1. Consolidated net sales

Chemicals*
Homes
PharmaFibersElectronics Materials & Devices
Construction Materials
Services, Engineering and Others
Total

Asahi Kasei
Consolidated Results

Q1–Q3
2006
597.6
275.7
80.9
77.6
85.7
47.6
22.0
1,187.1

Q1–Q3
2007
662.8
251.7
85.7
84.1
86.8
43.4
25.8
1,240.3(billions of yen)
Increase
FY 2007(decrease)
forecast
65.3
886.0(24.0)
381.0
4.8115.0
6.5
117.0
1.1
118.0
(4.2)
59.0
3.8
38.0
53.3
1,714.0

January 31, 2008
p. 6/8

2. Consolidated operating profit

Chemicals*Homes
PharmaFibersElectronics Materials & Devices
Construction Materials
Services, Engineering and Others
Combined
Corporate expenses and eliminations
Consolidated

Q1–Q3
2006
41.3
14.3
14.4
2.7
18.5
4.9
3.0
99.0
(4.8)
94.2

Q1–Q3
2007
55.1
8.1
13.0
5.2
17.0
2.9
3.5
104.8
(6.7)
98.1

(billions of yen)
Increase
FY 2007(decrease)
forecast
13.9
67.5
(6.2)
19.5(1.3)
14.0
2.6
7.0
(1.6)
22.0
(1.9)
3.5
0.5
5.0
5.9
138.5
(1.9)
(8.5)
3.9
130.0

3. Operating profit increases/decreases by segment(billions of yen)SalesvolumeChemicals*
Homes
PharmaFibersElectronics Materials& Devices
Construction Materials
Services, Engineeringand Others
Corporate expenses
and eliminations
Consolidated

2.4(6.5)
3.8
0.9

Increase (decrease) due to:OperatingSales prices [of which,costs anddue to foreign exchange]others39.8
1.0(28.3)
19.1—(18.8)
(0.8)
0.6
(4.3)
3.9
1.1(2.2)

Netincrease(decrease)
13.9
(6.2)
(1.3)
2.6

1.0(3.3)

0.3

0.7(1.6)

(1.6)

0.4

—

(0.7)

(1.9)

0.7

0.0

0.0(0.2)

0.5

———

(1.9)

(1.9)

0.7

59.0

3.0(55.8)

3.9* For comparison purposes, results for the year-ago period in the Chemicals segment
have been revised to include those in the Life & Living segment.
4. Contract trends for home construction operations

Value of orders received (¥ billion)
No. of orders received (home units)
Backlog of orders (¥ billion)
No. of sales (home units)
Value of sales (¥ billion)

Asahi Kasei
Consolidated Results

Q1–Q3
2006
222.0
9,409
315.8
9,060
210.1

Q1–Q3
2007
222.9
9,531
315.3
8,018
197.4

Increase(decrease)
0.9
122
(0.6)
(1,042)(12.7)FY 2007
forecast
310.0
13,404309.8
12,793290.0

January 31, 2008
p. 7/8

5. Key operating factors

Naphtha price(yen/kL, domestic)
Yen/US$ exchange rate
(market average)

Q1–Q3
2006

Q1–Q3
2007

Increase(decrease)

FY 2007
forecast

50,30059,7009,400

61,3001161171114

6. Interest-bearing debt

Short-term borrowings
Commercial paper
Current portion of
corporate bonds
Corporate bonds
Long-term debt
Total

Asahi Kasei
Consolidated Results

At end ofMarch 2007
63.8—

At end ofDec. 2007
37.2
75.0

(billions of yen)
Increase(decrease)(26.7)
75.0

24.0

22.0

(2.0)

60.0
69.1
216.9

30.0
69.9
234.1

(30.0)
0.8
17.2

January 31, 2008
p. 8/8