Asahi Kasei Corporation
Head Office: 1-2-6 Dojimahama, Kita-ku, Osaka, JapanTokyo Head Office: 1-105 Kanda Jinbocho, Chiyoda-ku, Tokyo, Japan
Security code: 3407
Contact: Corporate Communications, Phone +81-3-3296-3008, Fax +81-3-3296-3162
November 5, 2008

Consolidated Results for 1st and 2nd Quarters Fiscal 2008:
April 1, 2008 – September 30, 2008
(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 profit
Ordinary profit
Net income
Net income per share*
Diluted net income per share*

Q1–Q2 2008
843,185
40,13940,66523,415
16.74—

Q1–Q2 2007
830,757 [+8.0%]
63,689 [+25.6%]
63,145 [+29.5%]
38,019 [+31.3%]
27.18
—
* Yen

Note: Percent change is omitted as quarterly accounting standards of the AccountingStandards Board of Japan (ASBJ) are newly applied in the current fiscal year.
2. Financial position
At end ofTotal assets
Net assets
Net worth/total assets
Net worth per share*

September 2008
1,491,299
677,91844.9%
479.31March 2008
1,425,367
674,15646.7%
476.39* Yen

Notes:• Net worth consists of shareholders’ equity and valuation, translation adjustments, andothers.
• Net worth as of September 30, 2008, was ¥670,256 million; as of March 31, 2008,¥666,244 million.
II. Cash Dividends
Fiscal year
2007
2008
2008 (forecast)

Q1——

Cash dividends per share*
Q2
Q3
Q4
Total annual
6.00
—
7.00
13.00
7.00
14.00
—
7.00
* Yen

Note: No revision of cash dividend forecast during the period.

Asahi Kasei
Consolidated Results

November 5, 2008
p. 1/12

III. Forecasts for Fiscal 2008 (April 1, 2008 – March 31, 2009)
1. Latest forecasts (percent change from results in year-ago period in brackets)
Net sales
Operating profit
Ordinary profit
Net income
Net income per share*

1,739,000 [+2.5%]
95,000 [−25.6%]
95,000 [−21.1%]
55,000 [−21.4%]
39.33
* Yen

2. Comparison of previous and fiscal 2008 forecasts

Net sales
Operating profit
Ordinary profit
Net income

Previous
forecast
1,810.0
128.0
125.0
75.0

Revisedforecast
1,739.0
95.0
95.0
55.0

Increase(decrease)(71.0)(33.0)(30.0)(20.0)(billions of yen)cf. fiscal
2007 results
1,696.8
127.7
120.5
69.9

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 the fiscal 2008 announced on May 8, 2008, has been revised.
IV. Other Information
1. Changes in significant subsidiaries which affected scope of consolidation during thesix-month period ended September 30, 2008: None.
2. Adoption of simplified accounting methods and special accounting methods for
preparation of quarterly consolidated financial statements.
1) Simplified accounting methods
Method of calculating allowance for doubtful accounts: Because the rate of
unrecoverable receivables as of September 30, 2008, was not significantly different
than that estimated at the end of the previous fiscal year, the rate of unrecoverable
receivables as of the end of the previous fiscal year was used as a basis for
estimating allowance for doubtful accounts.
Valuation of inventories: No physical inventory as of September 30, 2008, wasperformed. Rather, the value of inventories is calculated using a reasonable
method based on the physical inventory performed at the end of the previous fiscal
year. The carrying amount of inventories is reduced to the estimated net saleprice only where a decrease in profitability is apparent.
Method of calculating depreciation of fixed assets: For assets depreciated using
the declining-balance method, depreciation expenses for the fiscal year are
calculated in proportion to the fiscal period.
Method of calculating deferred tax assets and liabilities: Because there was no
significant change in the operating environment or in the occurrence of temporary
Asahi Kasei
Consolidated Results

November 5, 2008
p. 2/12differences after the end of the previous fiscal year, collectibility of deferred tax
assets was calculated based on the performance forecasts and tax planning used in
the previous fiscal year.
2) Special accounting methods for presenting quarterly consolidated financial
statements.
Income tax expenses: A reasonable estimate of the effective tax rate after
applying tax-effect accounting for the current fiscal year is made, and quarterly
income before income taxes is multiplied by the corresponding effective tax rate.
3. Changes in accounting principles/procedures, changes in methods of presentation in
preparation of quarterly consolidated financial statements: Yes.
1) Application of Accounting Standard for Quarterly Financial Reporting and related
guidance.
Accounting Standards for Quarterly Financial Reporting (ASBJ Statement No. 12)
and Guidance on Accounting Standard for Quarterly Financial Reporting (ASBJ
Guidance No. 14) are applied beginning with the current fiscal year, ending March
31, 2009. Quarterly consolidated financial statements are prepared in accordancewith Regulation for Quarterly Consolidated Financial Reporting.
2) Application of Accounting Standard for Measurement of Inventories.
Accounting Standard for Measurement of Inventories (ASBJ Statement No. 9) isapplied beginning with the first quarter ended June 30, 2008. Previously,
inventories were stated at the lower of cost or market value (residential lots anddwellings of sale were stated at specifically identified costs). Now, inventories
held for sale in the ordinary course of business are stated at the lower of cost or net
sales value. The effect is that operating profit is lower by ¥1,333 million andordinary profit and income before income taxes and minority interests are lower by¥1,016 million than they would have been using the previous method.
3) Application of Practical Solution on Unification of Accounting Polices Applied toForeign Subsidiaries for Consolidated Financial Statements.
Practical Solution on Unification of Accounting Polices Applied to Foreign
Subsidiaries for Consolidated Financial Statements (ASBJ Practical Issues Task
Force No. 18) is applied beginning with the first quarter ended June 30, 2008, andnecessary modifications have been made for consolidation. The impact of thischange is immaterial.
4) Application of Accounting Standard for Lease Transactions and related guidance.
Financial lease transactions without title transfer were formerly accounted for as
operating leases. Accounting Standard for Lease Transactions (ASBJ Statement
No. 13) and Guidance on Accounting Standard for Lease Transaction (ASBJ
Guidance No. 16) are applied voluntarily beginning with the first quarter ended
June 30, 2008. The accounting standard requires that all financial leases becapitalized. Leased assets related to financial lease transactions without title
transfer are depreciated on a straight-line basis, with their useful lives as the lease
periods and no residual value. For financial lease transactions without title
transfer whose transaction date precedes the application of the new standard andAsahi Kasei
Consolidated Results

November 5, 2008
p. 3/12

guidance, the previous method of accounting for lease transactions continues to be
applied. The impact of this change is immaterial.
5) Change of standard for conversion of sales and costs at foreign subsidiaries, etc.
Beginning with the first fiscal quarter ended June 30, 2008, the standard forconversion of sales and costs at foreign subsidiaries, etc. to yen was changed fromconversion at the spot foreign exchange value at the date of closing to conversion at
the average market value during the fiscal period. This change was applied sothat operating performance shown in yen more closely matches actual operating
performance. The impact of this change is immaterial.
6) Change of evaluation standard and method of evaluation for other securities whose
fair values are readily determinable.
Beginning with the first fiscal quarter ended June 30, 2008, the evaluation
standard and method of evaluation for other securities whose fair values arereadily determinable was changed from a method based on the average market
value during the month preceding the date of closing to the conventional method
based on the market value as of the date of closing. This change was applied sothat the financial condition be shown more accurately. As a result, investment
securities are lower by ¥5,299 million, deferred income tax liabilities are lower by¥2,135 million, net unrealized gain on securities is lower by ¥3,112 million, andincome before income taxes and minority interests is lower by ¥52 million thanthey would have been using the previous standard and method.
4. Additional Information
With regard to the cost of remediation work to restore deficient eave assembly
specifications for certain order-built homes delivered by consolidated subsidiary Asahi
Kasei Homes Corp. other than that attributable to the company, a memorandum has
been concluded with the supplier of soffit panels, and expenses forecast to be incurred
are seen to be recoverable.
Expenses forecast for remediation work including that attributable to the company areincluded in allowance for after-care of products in the consolidated balance sheets, andthe amount to be recovered from the supplier is included in other under current assets
and in other under investments and other assets in the consolidated balance sheets.
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–Q2 2008
1,402,616,332
4,241,732
1,398,467,549

FY 2007
1,402,616,332
4,080,805
1,398,863,847** Q1–Q2 2007

Asahi Kasei
Consolidated Results

November 5, 2008
p. 4/12

V. Overview of Consolidated Results
1. Consolidated group results
The global economic environment during the six-month period was challenging, with aslowdown in the US economy triggered by the rise in subprime mortgage defaults andsigns of slowing growth in China. As the Japanese economy was also in a phase ofslowing growth, with high feedstock and fuel prices, corporate earnings declining due
to the softening US and Chinese economies, and weak domestic consumer spending,the operating climate for Asahi Kasei and its consolidated subsidiaries (the Asahi
Kasei Group) was particularly challenging.
With higher product prices accompanying increased feedstock and fuel costs in
the Chemicals segment and with licensing income in the Pharma segment,
consolidated net sales for the period increased by ¥12.4 billion (1.5%) from a year ago
to ¥843.2 billion. Operating profit decreased by ¥23.6 billion (37.0%) to ¥40.1 billion
with increased feedstock and fuel costs and slack market conditions in many productfields. Ordinary profit was ¥40.7 billion, a decrease of ¥22.5 billion (35.6%). Net
income was ¥23.4 billion, a decrease of ¥14.6 billion (38.4%).
2. Results by operating segment
CHEMICALS
Sales increased by ¥6.8 billion (1.5%) from a year ago to ¥453.2 billion and operating
profit decreased by ¥17.7 billion (48.9%) to ¥18.5 billion.
In specialty products, sales of Hipore microporous membrane separator for
Li-ion rechargeable batteries grew. Volume products, comprisingchemicals/derivative products and polymer products, were sharply impacted by slack
market conditions in Japan and overseas and by steep feedstock and fuel prices
increases.
HOMES
Sales increased by ¥3.4 billion (2.0%) from a year ago to ¥170.3 billion and operating
profit decreased by ¥1.8 billion (37.3%) to ¥3.0 billion. Orders for order-built homes
increased by ¥3.5 billion (2.3%) to ¥157.1 billion.
In housing-related operations, remodeling operations performed well withincreased maintenance work. Order-built home operations were impacted by adecrease in deliveries of Hebel Haus unit homes and higher prices for materials.
PHARMA
Sales increased by ¥8.0 billion (14.5%) from a year ago to ¥62.8 billion and operating
profit increased by ¥2.4 billion (31.2%) to ¥10.2 billion.
Both pharmaceuticals and medical devices operations were impacted byreimbursement price reductions. Pharmaceuticals operations had licensing income
for the Famvir™ antiviral for herpes zoster. Devices operations had increased salesof APS™ polysulfone-membrane artificial kidneys and Sepacell™ leukocyte reduction
filters.
FIBERS
Sales decreased by ¥1.1 billion (1.9%) from a year ago to ¥55.9 billion and operating
profit decreased by ¥1.8 billion (52.1%) to ¥1.7 billion.
Roica elastic polyurethane filament operations were impacted by slack
overseas market conditions and a higher yen exchange value. Bemberg™
regenerated cellulose fiber operations and spunbond and other nonwovens operations
were sharply impacted by high feedstock and fuel costs.

Asahi Kasei
Consolidated Results

November 5, 2008
p. 5/12

ELECTRONICS MATERIALS & DEVICES
Sales decreased by ¥1.9 billion (3.2%) from a year ago to ¥55.8 billion and operating
profit decreased by ¥3.2 billion (28.2%) to ¥8.2 billion.
Sales of Sunfort dry film photoresist grew, particularly in China, where local
production capacity was expanded. Operations throughout both the electronics
materials and electronics devices product lineups were impacted by slack market
conditions and a higher yen exchange value.
CONSTRUCTION MATERIALS
Sales increased by ¥1.4 billion (4.6%) from a year ago to ¥31.3 billion and operating
profit decreased by ¥1.3 billion (60.5%) to ¥0.8 billion.
Foundation systems operations performed well with the development of demandin new applications. Sales of Hebel autoclaved lightweight concrete (ALC) panels
decreased with sluggish demand as an effect of the economic slowdown. Both Hebel
ALC operations and Neoma high-performance phenolic foam insulation panel
operations were sharply impacted by high feedstock and fuel costs.
SERVICES, ENGINEERING AND OTHERS
Sales decreased by ¥4.2 billion (23.1%) from a year ago to ¥13.9 billion and operating
profit increased by ¥0.3 billion (12.1%) to ¥3.1 billion.
In engineering, overseas plant engineering decreased with the completion of amajor phase of work, while business related to the provision of services for Asahi Kasei
Group operations performed well.

Asahi Kasei
Consolidated Results

November 5, 2008
p. 6/12

VI. Consolidated Balance Sheets

AssetsCurrent assets
Cash on hand and in banks
Notes and accounts receivable, tradeMarketable securities
Merchandise and finished goods
Work in progress
Raw materials and supplies
Deferred income taxes
Other
Allowance for doubtful accounts
Fixed assets
Property, plant and equipment, net ofaccumulated depreciation
Buildings
Less: Accumulated depreciation
Buildings – net
Machinery and equipment
Less: Accumulated depreciation
Machinery and equipment – net
Land
Leased assets
Less: Accumulated depreciation
Leased assets – net
Construction in progress
Other
Less: Accumulated depreciation
Other – net
Intangible fixed assets
Goodwill
Other
Investments and other assets
Investment securities
Long-term receivables
Deferred income taxes
Other
Allowance for doubtful accounts
Total assets

Asahi Kasei
Consolidated Results

At end of
Sept. 2008

At end ofMarch 2008

774,264
59,819305,790508
147,780
108,378
53,26525,00275,241(1,518)717,035

740,075
82,903298,788303
131,505
93,59747,26926,13061,239(1,660)685,292

438,728

424,193385,873(220,289)
165,584
1,144,386(974,178)
170,208
53,974785(54)730
31,110108,104(90,980)
17,12336,802
5,449
31,353
241,505
190,235
4,290
14,212
32,929(161)
1,491,299

377,385(217,434)
159,951
1,123,378(958,159)
165,220
54,096–––29,339103,908(88,320)
15,58826,226
5,707
20,519234,873
190,991
4,703
12,777
26,514(113)
1,425,367

November 5, 2008
p. 7/12At end of
At end of
Sept. 2008 March 2008
Liabilities
Current liabilities
Notes and accounts payable, trade
Short-term borrowings
Commercial paper
Current portion of corporate bonds
Short-term lease obligations
Accrued income taxes
Deferred tax liabilities
Accrued expenses
Advanced received
Allowance for repairs
Allowance for after-care of products
Other current liabilities
Long-term liabilities
Corporate bonds
Long-term borrowings
Deferred tax liabilities
Long-term lease obligations
Accrued pension and severance costs
Allowance for repairs
Advanced received
Other long-term liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock, at cost
Valuation, translation adjustments, and others
Net unrealized gain on securities
Net deferred profit on hedges
Revaluation surplus
Cumulative translation adjustments
Minority interest in consolidated subsidiaries
Total net assets
Total liabilities and net assets

Asahi Kasei
Consolidated Results

592,066
174,326
47,08895,00025,000146
15,091
5
98,32765,211
2,069
12,40357,400221,315
5,000
68,472
8,712
586
113,865
3,372
18,9662,311
813,381

513,413155,120
43,22055,00025,000–9,730
58108,947
49,7184,716
6,018
55,885
237,798
25,00063,187
9,155–
117,130
2,078
18,9352,314
751,211627,453
103,389
79,432446,743(2,111)42,80447,240221–(4,658)
7,662
677,918
1,491,299

613,042
103,389
79,427432,246(2,019)53,201
51,091
11
873
1,226
7,912
674,156
1,425,367

November 5, 2008
p. 8/12

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 of unconsolidated subsidiaries and affiliates
Other
Non-operating expenses
Interest expense
Other
Ordinary profit
Special gains
Gain on sale of investment securities
Gain on sale of property, plant and equipment
Special losses
Loss on devaluation of investment securities
Loss on disposal of property, plant and equipment
Impairment loss
Income before income taxes and minority interest
Income taxes
Minority interest in income of consolidated subsidiaries
Net income

Asahi Kasei
Consolidated Results

Q1–Q2
2008
843,185
657,996
185,189
145,050
40,139
4,906
607
1,607
590
2,102
4,381
2,135
2,246
40,665
70
12
58
1,427
178
1,033
216
39,307
15,398495
23,415

November 5, 2008
p. 9/12

VIII. Cash flows
Q1–Q2 2008
Cash flows from operating activities:
Income before income taxes and minority interest
Depreciation and amortization
Impairment loss
Amortization of goodwill
Amortization of negative goodwill
Decrease in allowance for repairs
Increase in allowance for after-care of products
Decrease in accrued pension and severance costs
Interest and dividend income
Interest expense
Equity in net earnings of unconsolidated subsidiaries and affiliates
Gain on sale of investment securities
Loss on devaluation of investment securities
Gain on sale of property, plant and equipment
Loss on disposal of property, plant and equipment
Increase in notes and accounts receivable, trade
Increase in inventories
Increase in notes and accounts payable, trade
Decrease in accrued expenses
Increase in advances received
Other
SubtotalInterest and dividend income, received
Interest expense, paid
Income taxes, paid
Net cash provided by operating activities
Cash flows from investing activities:
Payments for acquisition of property, plant and equipment
Proceeds from sale of property, plant and equipment
Payments for acquisition of intangible fixed assets
Payments for purchase of marketable securities
Proceeds from sale of marketable securities
Payments for loan receivables
Collections of loan receivables
Other
Net cash used in investing activities
Cash flows from financing activities:
Proceeds from short-term borrowings
Proceeds from issuance of commercial paper
Proceeds from long-term loans
Repayment of long-term loans
Repayment of bonds
Payments for purchase of treasury stock
Proceeds from sale of treasury stock
Dividends paid by parent company
Dividends paid to minority interests in consolidated subsidiaries
Other
Net cash used provided by financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
Asahi Kasei
Consolidated Results

39,30737,507216
262(46)(1,353)
6,385(3,139)(2,214)
2,135
(590)
(12)
178
(58)
1,033
(9,239)(38,398)
20,804(10,421)
15,489(21,866)
35,9803,690(2,225)(10,237)
27,209(45,847)788(16,310)(5,973)125(3,475)3,485(810)(68,016)
1,251
40,00010,700(1,329)(20,000)(154)
64(9,791)(298)(190)
20,254(2,334)(22,887)
83,03360,146

November 5, 2008
p. 10/12

IX. Operating Segment Information
1. Consolidated net sales

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

Q1–Q2
2007
446.4
166.9
54.8
56.9
57.7
29.9
18.1
830.8

Q1–Q2
2008
453.2
170.3
62.8
55.9
55.8
31.3
13.9
843.2

Increase(decrease)
6.8
3.4
8.0
(1.1)
(1.9)
1.4
(4.2)
12.4

(billions of yen)
Fiscal 2008
forecast
879.0
412.0
125.0
115.0
118.0
62.0
28.0
1,739.0

Q1–Q2
2007
36.2
4.8
7.7
3.5
11.5
2.1
2.7
68.6

Q1–Q2
2008
18.5
3.0
10.2
1.7
8.2
0.8
3.1
45.5

Increase(decrease)(17.7)
(1.8)
2.4
(1.8)
(3.2)
(1.3)
0.3
(23.1)(billions of yen)
Fiscal 2008
forecast
43.5
23.0
15.0
2.0
14.0
1.5
5.0
104.0

(4.9)

(5.3)

(0.5)

(9.0)

63.7

40.1

(23.6)

95.0

2. Consolidated operating profit (loss)

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

3. Operating profit increases/decreases by segment

Sales
volumeChemicals
Homes
PharmaFibersElectronics Materials& Devices
Construction Materials
Services, Engineeringand Others
Corporate expenses
and eliminations
Consolidated

Asahi Kasei
Consolidated Results

(2.3)
(0.4)
3.5
(0.2)

(billions of yen)

Increase (decrease) due to:OperatingSales prices [of which,costs anddue to foreign exchange]others
21.6(10.0)(37.0)
1.4
—
(2.8)
(2.9)
(0.3)
1.8
0.3
(1.2)
(1.9)

Net
increase(decrease)(17.7)
(1.8)
2.4
(1.8)

0.6

(3.8)

(1.6)

(0.0)

(3.2)

0.3

0.3

—

(1.9)

(1.3)

0.3

0.0

0.0

0.0

0.3

—

—

—

(0.5)

(0.5)

2.0

16.8

(13.1)(42.4)(23.6)

November 5, 2008
p. 11/12

4. Contract trends for home construction operations

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

Q1–Q2
2007

Q1–Q2
2008

Increase(decrease)

Fiscal 2008
forecast

6,604

6,412

(192)

13,300

153.6

157.1

3.5

318.0

312.3

326.6

14.3

308.8

5,450
131.2

5,148
129.4

(302)
(1.8)

12,720
308.0

Q1–Q2
2007

Q1–Q2
2008

Increase(decrease)

Fiscal 2008
forecast

58,75078,35019,60066,675

119

106

(13)

103

162

163

1

147

5. Key operating factors

Naphtha price(yen/kL, domestic)
Yen/US$ exchange rate
(market average)
Yen/€ exchange rate
(market average)
6. Interest-bearing debt

Short-term borrowings
Commercial paper
Corporate bonds
Long-term debt
Lease obligations
Total

Asahi Kasei
Consolidated Results

At end ofMarch 2008
43.2
55.0
50.0
63.2
—
211.4

(billions of yen)
At end ofIncrease
Fiscal 2008
Sept. 2008
(decrease)
forecast
47.1
3.9
95.0
40.0
30.0
(20.0)
68.5
5.3
0.7
0.7
241.3
29.9
290.0

November 5, 2008
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