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, 2023

Consolidated Results for Fiscal 2022:
April 1, 2022 – March 31, 2023
(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)
FY 2022

FY 20212,726,485 [+10.8%]

2,461,317 [+16.9%]

Operating income

128,352 [-36.7%]

202,647 [+17.9%]

Ordinary income

121,535 [-42.7%]

212,052 [+19.1%]

Net income attributable to owners of the parent-91,312 [―]161,880 [+102.9%]

Net sales

Net income per share*-65.84116.68

Diluted net income per share*――

Net income/shareholders’ equity

-5.5%

10.3%

Ordinary income/total assets

3.6%

6.8%

Operating income/net sales

4.7%

8.2%

* Yen
Notes:• Comprehensive income was ¥25,818 million during fiscal 2022, and ¥261,502 million during fiscal 2021.
• Equity in earnings of affiliates was ¥923 million during fiscal 2022, and ¥8,878 million during fiscal 2021.

2. Financial position
At fiscal year end March

2023

2022

Total assets

3,454,526

3,349,075

Net assets

1,696,009

1,718,815

Net worth/total assets

48.1%

50.4%

Net worth per share*

1,198.30

1,216.33* Yen
Notes:• Net worth consists of shareholders’ equity and accumulated other comprehensive income.
• Net worth was ¥1,660,922 million as of March 31, 2023, and ¥1,687,410 million as of March 31, 2022.

3. Cash flows
FY 2022

FY 2021

Cash flows from operating activities

90,804

183,271

Cash flows from investing activities(213,584)(221,019)

Cash flows from financing activities

111,780
247,903

42,321

Cash and cash equivalents at end of period

Asahi Kasei
Consolidated Results

242,948

May 10, 2023
1/17

II. Cash Dividends

Fiscal year
2021
2022
2023
(forecast)

Cash dividends per share*
Total
Q1
Q2
Q3
Q4
annual— 17.00 — 17.00 34.00— 18.00 — 18.00 36.00
—

18.00

—

18.00

Total annual
dividend
amount47,18749,962

Dividends/
consolidated
net income
29.1%
—

36.00

Dividends/
consolidated
net worth
3.0%
3.0%

49.9%
* Yen

III. Forecast for Fiscal 2023 (April 1, 2023 – March 31, 2024)(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
1,360,000 [+0.6%]
51,500 [−40.0%]
51,000 [−41.0%]
28,000 [−45.9%]
20.20

For the fiscal year
2,865,000 [+5.1%]
160,000 [+24.7%]
165,000 [+35.8%]
100,000 [—]
72.15
* 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 one new subsidiary:
Bionova Holdings, Inc.
2. Changes in accounting policies, changes in accounting estimates, and retroactive restatement
i. Application of Implementation Guidance on Accounting Standard for Fair Value Measurement
Accounting Standards Board of Japan (ASBJ) Guidance No. 31 “Implementation Guidance on
Accounting Standard for Fair Value Measurement” is applied from the beginning of the fiscal year
ended March 31, 2023. In accordance with Article 27-2 of the Implementation Guidance on
Accounting Standard for Fair Value Measurement regarding transitional treatment, the new
accounting policy is to be applied in the future. This change has no effect on the consolidated
financial statements for the fiscal year ended March 31, 2023.
ii. Application of ASC 842 lease accounting standard
At subsidiaries that apply US GAAP, ASC 842 is applied from the fiscal year ended March 31,
2023. This accounting standard requires a lessee to recognize in principle all leases as assets andliabilities on the balance sheets. As a transitional treatment, the cumulative effect of application ofthis accounting standard is recognized as of the date of the start of application. As a result, other
under property, plant and equipment increased by ¥19,442 million, lease obligations under current
liabilities increased by ¥3,576 million, and lease obligations under noncurrent liabilities increased by¥16,356 million on the consolidated balance sheets for the fiscal year ended March 31, 2023. The
effect on the consolidated statements of income is immaterial.

Asahi Kasei
Consolidated Results

May 10, 2023
2/17

iii. Changes in presentation
Consolidated statements of income:
Foreign exchange gains, which were included in other under non-operating income for the fiscal
year ended March 31, 2022, became foreign exchange loss in the fiscal year ended March 31, 2023,
and reported separately due to increased materiality. Foreign exchange gains were ¥796 million in
the fiscal year ended March 31, 2022.
Costs of idle facilities, which was included in other under non-operating expenses for the fiscal
year ended March 31, 2022, is reported separately from the fiscal year ended March 31, 2023, due toincreased materiality. Consolidated statements of income for the fiscal year ended March 31, 2022,
are restated to reflect this change. As a result, other under non-operating expenses, previously
reported to be ¥8,614 million, is separated into other of ¥7,764 million and costs of idle facilities of¥850 million.
3. Number of shares outstanding
FY 2022
1,393,932,032
7,864,299
1,386,887,194

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

FY 2021
1,393,932,032
6,640,935
1,387,432,219

V. Summary of Non-Consolidated Results
1. Results for fiscal 2022 (April 1, 2022 – March 31, 2023)(1) Operating results (percent change from previous year in brackets)
FY 2022

FY 2021Net sales

713,961 [+9.4%]

652,631 [+19.1%]

Operating income (loss)(11,073) [―]35,059 [+450.0%]

Ordinary income

38,942 [-52.5%]

81,940 [+26.9%](201,425) [―]Net income (loss)

52,484 [-22.5%]

Net income (loss) per share*(145.24)

37.83

Diluted net income per share*

―

―

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

2023
1,995,939
506,7802022
2,149,337
771,809

25.4%

35.9%

Net worth per share*

365.62556.34* Yen

VI. Overview of Consolidated Results
1. Consolidated group results
Net sales increased in all three sectors, notably with the expansion of existing businesses, effect of
the weaker yen, higher market prices for petrochemical products, and the effect of consolidation of
Asahi Kasei
Consolidated Results

May 10, 2023
3/17

acquisitions in the Homes sector, reaching ¥2,726.5 billion, an increase of ¥265.2 billion from ayear ago. Although operating income remained firm in the Homes sector, operating income in the
Material and Health Care sectors decreased with the deteriorating economic climate and impact of
temporary factors. As a result, operating income decreased by ¥74.3 billion to ¥128.4 billion andordinary income decreased by ¥90.5 billion to ¥121.5 billion. Net income attributable to ownersof the parent was impacted by the recording of an impairment loss on goodwill and other intangible
assets related to Polypore in the separator business, resulting in a net loss of ¥91.3 billion, asignificant decline of ¥253.2 billion from the net income of the previous year.
Regarding non-consolidated results, net sales increased by ¥61.3 billion to ¥714.0 billion,
there was an operating loss of ¥11.1 billion representing a ¥46.1 billion decline from the operating
income of the previous year, ordinary income decreased by ¥43.0 billion to ¥38.9 billion, and there
was a net loss of ¥201.4 billion representing a ¥253.9 billion decline from the net income of theprevious year. Decreases in operating income and ordinary income were mainly due todeterioration of performance in the Material segment. The net loss was due to a loss on valuationof shares of subsidiaries and affiliates of ¥257.7 billion related to Asahi Kasei Energy Storage
Materials, Inc., the holding company of Polypore, as an effect of the aforementioned impairment
loss.
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.
Accompanying organizational changes at the beginning of the fiscal year, a certain portion ofbusiness in Homes and Others, and a certain portion of R&D in corporate expenses, weretransferred to Material. Results for the year-ago period have been recalculated for comparison
purposes.
MATERIAL
Sales increased by ¥106.6 billion from a year ago to ¥1,316.6 billion, and operating income
decreased by ¥65.0 billion from a year ago to ¥41.0 billion.
Although sales increased with the weaker yen and higher selling prices as a result of passing
on increased costs due to higher market prices for petrochemicals, operating income decreased
considerably with decreased shipment volumes and lower operating rates for separators andengineering plastics, and deteriorated terms of trade and impact of inventory valuation in basic
materials.
HOMES
Sales increased by ¥76.5 billion from a year ago to ¥899.0 billion, and operating income increasedby ¥3.1 billion from a year ago to ¥76.0 billion.
Operating income in order-built homes increased with larger and higher value-added units
overcoming increased costs for steel and other materials. Real estate operations were firm.
Although construction starts in North America decreased, operating income in overseas operations
increased with the effect of the weaker yen and consolidation of the newly acquired Focus
Companies.
HEALTH CARE
Sales increased by ¥81.0 billion from a year ago to ¥496.9 billion, and operating income decreasedby ¥10.3 billion from a year ago to ¥41.9 billion.
Although consolidation of Bionova had a negative impact, operating income in health careincreased with firm performance of mainstay products.
Operating income in critical care decreased with normalization of the previous year’s surge
in demand for ventilators due to COVID-19, temporary factors related to the acquisitions of Itamar
and Respicardia, and the impact of difficulty in parts procurement.
OTHERS
Sales increased by ¥1.0 billion from a year ago to ¥14.0 billion, and operating income increased by¥0.1 billion from a year ago to ¥4.2 billion.

Asahi Kasei
Consolidated Results

May 10, 2023
4/17

VII. Consolidated Financial Statements
1. Balance sheets

AssetsCurrent assets
Cash and deposits
Notes, accounts receivable–trade, and contract assets
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
Long-term advance payments–trade
Net defined benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Subtotal
Total noncurrent assets
Total assets

Asahi Kasei
Consolidated Results

At end ofMarch 2022

At end ofMarch 2023

244,641
434,595
252,521
146,120
141,608
117,195(2,471)
1,334,209

251,181442,692
310,380
162,255
169,918
154,335(2,567)
1,488,195

646,311(333,966)
312,344
1,569,782(1,288,462)
281,320
69,567
8,679(6,814)
1,865
102,284
159,312(121,477)
37,834805,215

663,642(347,877)
315,765
1,611,495(1,313,694)
297,801
69,232
12,017(6,457)
5,560
120,299
188,994(125,950)
63,045
871,701

431,335
405,508
836,843

368,089
368,695
736,784

246,701
6,227
30,432
1,193
54,276
34,404(426)
372,808
2,014,866
3,349,075

212,6118,466
28,267
25,83645,91637,248(498)
357,846
1,966,332
3,454,526

May 10, 2023
5/17

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 and equipment
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 and equipment
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 2022

At end ofMarch 2023

178,092
239,491
113,000―
2,224
146,275
58,11562,476
208
4,738
4,007
4,445
110,778
923,850

180,560
196,032
124,000
40,0006,766
147,163
17,491
72,948
80
8,410
4,240
3,788
110,683
912,163

160,000
253,785
8,715
52,017490
5,396
12,298152,081
22,49039,139706,410
1,630,260

170,000
409,424
28,526
27,767339
4,309
15,910128,708
22,70338,671
846,355
1,758,517

103,389
79,887
1,282,325(6,219)1,459,381

103,389
79,841
1,142,325(7,426)
1,318,129

66,287(341)
167,225(5,142)228,029
31,405
1,718,815
3,349,075

52,31072
265,013
25,397342,79335,087
1,696,009
3,454,526

May 10, 2023
6/17

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
Costs of idle facilities
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Gain on sales of noncurrent assets
Insurance income
Gain on step acquisitions
Total extraordinary income
Extraordinary loss
Loss on valuation of investment securities
Loss on disposal of noncurrent assets
Impairment loss
Loss on fire at plant facilities
Business structure improvement expenses
Total extraordinary loss
Income (loss) before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income (loss)
Net income attributable to non-controlling interests
Net income (loss) attributable to owners of the parent

Asahi Kasei
Consolidated Results

FY 20212,461,317
1,691,549
769,769
567,122202,647

FY 20222,726,485
1,952,709
773,776
645,424
128,352

1,364
4,332
8,878
7,088
21,663

3,896
4,021
923
5,210
14,050

3,643
―
850
7,764
12,257
212,052

5,907
2,287
3,300
9,371
20,867
121,535

26,545
912
3,777
1,700
32,93432,201
729
8,814―
41,744

511
7,526
6,811
―
15,017
29,866215,12193,046(41,759)
51,287
163,834
1,954
161,8802,805
12,517
189,446
7,092
13,326225,186(61,906)
56,118(28,654)
27,464(89,370)
1,942(91,312)

May 10, 2023
7/17

(2) Statements of comprehensive income
Net income (loss)
Other comprehensive income
Net increase (decrease) in unrealized gain on other securities
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 2021
163,834

FY 2022(89,370)(25,746)5
114,406
5,403(13,706)414
95,34330,593

3,599

2,544

97,668
261,502

115,188
25,818258,322
3,180

23,452
2,367

May 10, 2023
8/17

3. Statements of changes in net assets
Shareholders' equity
Capital stock
Balance at beginning of fiscal year
Balance at end of fiscal year
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
Cumulative effect of changes in accounting policies
Restated balance
Changes during the fiscal year
Dividends from surplus
Net income (loss) attributable to owners of the parent
Change of scope of consolidation
Change of scope of equity method
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
Total changes of items during the period
Balance at end of fiscal year
Total shareholders’ equity
Balance at beginning of fiscal year
Cumulative effect of changes in accounting policies
Restated balance
Changes during the fiscal year
Dividends from surplus
Net income (loss) attributable to owners of the parent
Purchase of treasury stock
Disposal of treasury stock
Change of scope of consolidation
Change of scope of equity method
Capital increase of consolidated subsidiaries
Total changes of items during the period
Balance at end of fiscal year

Asahi Kasei
Consolidated Results

FY 2021

FY 2022103,389
103,389

103,389
103,389

79,64179,8870245
245
79,8870(46)(46)
79,841

1,158,792
9,212
1,168,004

1,282,325―
1,282,325(47,187)
161,880(371)―
114,321
1,282,325(48,575)(91,312)(139)
25(140,000)
1,142,325(5,932)(6,219)

(412)
125
(287)
(6,219)(1,414)208(1,207)(7,426)

1,335,890
9,212
1,345,102

1,459,381―
1,459,381(47,187)
161,880
(412)
125
(371)
―
245
114,279
1,459,381(48,575)(91,312)(1,414)
208
(139)
25
(46)
(141,253)
1,318,129

May 10, 2023
9/17

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 otherthan 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
Cumulative effect of changes in accounting policies
Restated balance
Changes during the fiscal year
Dividends from surplus
Net income (loss) attributable to owners of the parent
Purchase of treasury stock
Disposal of treasury stock
Change of scope of consolidation
Change of scope of equity method
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 2021

FY 2022

91,88766,287(25,600)(25,600)
66,287(13,977)(13,977)
52,310

(347)

(341)

5
5
(341)

414
414
72

50,462

167,225

116,763
116,763
167,225

97,78997,789265,013(10,416)(5,142)

5,274
5,274
(5,142)30,53830,53825,397

131,586

228,029

96,44396,443228,029

114,764
114,764
342,793

27,05831,405

4,347
4,347
31,4053,682
3,682
35,087

1,494,535
9,212
1,503,747

1,718,815―
1,718,815(47,187)
161,880
(412)
125
(371)
―
245
100,789
215,069
1,718,815(48,575)(91,312)(1,414)
208
(139)
25
(46)
118,446(22,806)
1,696,009

May 10, 2023
10/17

4. Statements of cash flows

Cash flows from operating activities
Income (loss) before income taxes
Depreciation and amortization
Impairment loss
Amortization of goodwill
Increase (decrease) in provision for grant of shares
Increase (decrease) in provision for periodic repairs
Increase (decrease) in provision for product warranties
Increase (decrease) in provision for removal cost of property,
plant and equipment
Increase (decrease) in net defined benefit liability
Interest and dividend income
Interest expense
Equity in (earnings) losses of affiliates(Gain) loss on sales of investment securities(Gain) loss on valuation of investment securities(Gain) loss on sale of property, plant and equipment(Gain) loss on disposal of noncurrent assets(Increase) decrease in notes, accounts receivable–trade, andcontract assets(Increase) decrease in inventories
Increase (decrease) in notes and accounts payable–trade
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Other, net
SubtotalInterest and dividend income, received
Interest expense paid
Income taxes (paid) refund
Net cash provided by (used in) 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 of loans receivableCollection of loans receivable
Other, net
Net cash provided by (used in) investing activities

Asahi Kasei
Consolidated Results

FY 2021

FY 2022215,121
119,738
6,811
28,391
60
(502)
233

(61,906)
138,956
189,446
37,695
(279)
2,585
198

(1,562)

2,951(2,939)(5,696)
3,643(8,878)(26,545)
511
(912)
7,526

(5,838)(7,917)
5,907(923)(32,201)
2,805
(729)
12,517(45,911)

8,405(73,257)
21,392
10,184
10,546(19,112)238,843
7,212(3,647)(59,137)
183,271(84,053)(7,949)(5,167)8,040(8,982)
193,563
13,666(5,859)(110,565)
90,804(3,267)
7,224(142,256)
1,280(27,452)(5,805)33,437(5,209)3,702(151,973)
7,796(20,185)(7,352)
43,200(80,912)(78,420)(6,102)2,782
52(221,019)(6,661)
2,132(613)(213,584)

May 10, 2023
11/17

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Increase (decrease) in commercial paper
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of bonds payable
Repayments of lease obligations
Purchase of treasury stock
Proceeds from disposal of treasury stock
Cash dividends paid
Proceeds from share issuance to non-controlling interests
Cash dividends paid to non-controlling interests
Purchase of shares in subsidiaries not resulting in change inscope of consolidation
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase (decrease) in cash and cash equivalents resulting fromchanges in scope of consolidation
Cash and cash equivalents at end of period

FY 2021

FY 2022

65,63229,000896(51,094)
50,000(2,298)(412)
125(47,187)―(2,190)(29,778)
11,000209,648(75,461)
50,000(3,665)(1,415)208(48,575)
1,499(1,371)

―

(163)

(152)
42,321
21,02725,600216,235(149)
111,780
15,744
4,744
242,948

1,112

212

242,948247,903

VIII. Business combinations
1) Purchase of shares of Bionova Holdings, Inc.
Asahi Kasei Medical Co., Ltd. (Asahi Kasei Medical), a consolidated subsidiary of Asahi Kasei, concluded
an agreement through Asahi Kasei Bioprocess Holdings, Inc., a U.S. subsidiary of Asahi Kasei Medical, towholly acquire Bionova Holdings, Inc. (Registered in Delaware, U.S.; CEO: Darren Head), the 100%parent company of Bionova Scientific, LLC, a provider of contract process development services and GMP(Good Manufacturing Practice) compliant contract manufacturing services to biopharmaceuticalcompanies, especially those developing next-generation antibody based drugs. The acquisition process
was completed on May 31, 2022 (JST).
1. Outline of business combination(1) Name and nature of business of counterparty
Name of acquired company: Bionova Holdings, Inc.
Nature of business: Biopharmaceutical manufacturing process development, GMP-compliant
contract manufacturing of current and next-generation antibody drugs via its 100% owned
operating subsidiary Bionova Scientific, LLC(2) Main reasons for the acquisition
This acquisition enables Asahi Kasei Medical to add a biopharmaceutical CDMO (contractdevelopment and manufacturing organization) to its bioprocess business. As process development
and GMP manufacturing operations are key to the overall success of biopharmaceutical customers’
businesses and the launch of new drugs, being able to offer a broader range of critical know-how
driven services to biopharmaceutical customers will allow Asahi Kasei Medical to grow its
bioprocess business more rapidly by better serving the industry and by reaching a broader range ofcustomers, including those at the cutting edge of next generation biopharmaceuticals.
(3) Acquisition date
May 31, 2022

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(4) Statutory form of business combination
Stock purchase for cash as consideration(5) Name of company after transaction
Bionova Holdings, Inc.
(6) Acquired voting right
Voting right before the acquisition:
0%
Voting right after the acquisition:
100%(7) Grounds for determining acquiring company
Stock purchase for cash as consideration by a consolidated subsidiary
2. The period of acquired company’s results included in the consolidated financial statements
From July 1, 2022, to March 31, 2023
3. Cost of acquisition and details
Purchase consideration
Purchase pricecash¥42,882 million¥42,882 million

4. Major acquisition related costs
Advisory fees and others: ¥534 million
5. Amount of goodwill, measurement principle, amortization method, and useful life
(1) Amount of goodwill:¥35,455 million(2) Measurement principle:
Goodwill is measured as the excess of the purchase price over the fair value of identifiable assets
acquired and liabilities assumed(3) 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¥1,543 million
Noncurrent assets¥13,246 million
Total assets¥14,789 million
Current liabilities¥1,491 million
Noncurrent liabilities ¥3,056 million
Total liabilities¥4,547 million
7. Amount of identifiable intangible assets other than goodwill, its details and major weighted average
useful life
(1) Purchase price allocated to intangible assets and its major items
Customer relationships¥6,559 million(2) Major weighted average useful life
Customer relationships
20 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.

2) Purchase of ownership of Focus Companies
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Asahi Kasei Homes Corp. (Asahi Kasei Homes), a consolidated subsidiary of Asahi Kasei, concluded anagreement on October14, 2022 (U.S. Eastern time) through a U.S. subsidiary of Asahi Kasei Homes, toacquire 100% ownership of Focus Plumbing LLC, Focus Framing, Door & Trim LLC, Focus Electric
LLC, Focus Concrete, LLC, and Focus Fire Protection LLC (collectively referred to as “Focus
Companies”), a Nevada-based residential plumbing, framing, electric, concrete, and fire protection group(CEO: Steve Menzies). The transaction was completed on October 31, 2022 (U.S. Eastern time).
1. Outline of business combination(1) Name and nature of business of counterparty
Names of acquired companies: Focus Plumbing LLC, Focus Framing, Door & Trim LLC, Focus
Electric LLC, Focus Concrete, LLC, Focus Fire Protection LLC
Nature of business: Nevada-based residential plumbing, framing, electric, concrete, and fire
protection group(2) Main reasons for the acquisition
While strengthening its core business of order-built unit homes in Japan, Asahi Kasei Homesconsiders North American and Australian businesses to be important sources of additional growth,
positioned as one of the Asahi Kasei Group’s “10 Growth Gears” (GG10), businesses to lead thenext phase of growth in fields of focus as part of its medium-term management plan for fiscal 2024
focused on the theme “Be a Trailblazer.” In North America, Asahi Kasei Homes acquired fullownership of Erickson Framing Operations LLC, an Arizona-based supplier of prefabricatedbuilding components in 2018; Austin companies1, an Arizona-based residential electrical, concrete,and HVAC group in 2020; and Brewer companies2, an Arizona-based residential plumbing group in
2021. Asahi Kasei Homes aims to enhance productivity and quality at manufacturing andconstruction sites by leveraging its systemization know-how.
The Focus Companies have provided high-quality services for residential plumbing, framing,
electric, concrete, etc., earning a strong reputation among builders. The acquisition of the Focus
Companies was agreed based on expectation of firm housing demand resulting from a shortage of
housing due to population growth in Nevada, while having positive synergies with existing
businesses in the adjacent state of Arizona. Asahi Kasei Homes aims to provide high-quality
home-building services for the construction industry in the U.S., which has many challenges suchas labor shortages and long construction periods.
1 Austin Electric Services, LLC, Austin Concrete & Stone, LLC, and Austin HVAC, LLC
2 Brewer Companies, LLC, Brewer Enterprises, Inc., Brewer Commercial Services, LLC,JBKB LLC (dba Benjamin Franklin Plumbing), and T-Plug LLC(3) Acquisition date
October 31, 2022
(4) Statutory form of business combination
Ownership purchase for cash as consideration(5) Names of companies after transaction
Focus Plumbing LLC, Focus Framing, Door & Trim LLC, Focus Electric LLC, Focus Concrete,
LLC, Focus Fire Protection LLC(6) Acquired voting right
Voting right before the acquisition:
0%
Voting right after the acquisition:
100%(7) Grounds for determining acquiring company
Ownership purchase for cash as consideration by a consolidated subsidiary
2. The period of acquired business’s results included in the consolidated financial statements
From November 1, 2022, to March 31, 2023

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3. Cost of acquisition and details
Purchase consideration
Purchase price:cash¥36,183 million¥36,183million

4. Major acquisition related costs
Advisory fees and others: ¥724 million
5. Amount of goodwill, measurement principle, amortization method, and useful life
(1) Amount of goodwill:¥34,952 million** Based on provisional calculation.
(2) Measurement principle:
Goodwill is measured as the excess of the purchase price over the fair value of identifiable assets
acquired and liabilities assumed(3) Amortization method and useful life:
Not determined
6. Details of assets acquired and liabilities assumed as of the acquisition dateCurrent assets¥9,620 million
Noncurrent assets¥986 million
Total assets¥10,606 million
Current liabilities¥9,375 million
Total liabilities¥9,375 million
7. 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) Finalization of provisional accounting treatment for business combination
At the close of the fiscal year ended March 31, 2022, provisional accounting treatment was applied to thebusiness combination with Itamar Medical Ltd., which was performed on December 16, 2021 (U.S.
Eastern time). The accounting treatment was finalized during the fiscal year ended March 31, 2023. As
a result of review of purchase price allocation, the amount of goodwill has changed from the provisionalamount of ¥37,776 million to ¥37,989 million, an increase of ¥213 million.
1. Amount of goodwill, measurement principle, amortization method, and useful life
(1) Amount of goodwill:¥37,989 million(2) Measurement principle:
Goodwill is measured as the excess of the purchase price over the fair value of identifiable assets
acquired and liabilities assumed(3) Amortization method and useful life:
Straight-line method over 20 years

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IX. Segment Information
1. Reporting segments

Homes

HealthCare

1,210,013

822,449

415,883 2,448,344

Total

Material

Subtotal

Reporting segments

Others 1(1) Fiscal 2021

Sales
Customers
Intersegment
Total
Operating income

7,639

6,677

1,217,652

829,126

20

14,336415,903 2,462,680

40,50854,84453,481 2,516,161

105,969

72,91852,1591,792,383

635,784

861,139 3,289,305

94,687 3,383,992

Depreciation and amortization2

64,241

13,84734,504

112,593

1,047

113,640

Amortization of goodwill

12,775556

15,05928,391－

28,39170,355

8,342

2,314

81,011

20,485

101,496

121,289

18,60024,882

164,771

3,020

167,792

Assets231,046

12,973 2,461,317

4,114

235,160

Other items

Investments in associates
accounted for using equity method
Increase in property, plant andequipment, and intangible assets

1 Plant and environmental engineering, research and analysis, employment agency/staffing operations, etc.
2 Excluding amortization of goodwill.

(2) Fiscal 2022

Homes

HealthCare

Total

Others 1

Material

Subtotal

Reporting segments

Customers

1,316,615

898,971496,881 2,712,466Intersegment

10,7398,291

1,327,354

907,262496,914 2,731,530

58,906 2,790,436

41,01676,01841,8604,250

1,751,117

673,257

954,538 3,378,911

72,07816,171

43,397

131,646775

132,421

15,384

1,200

21,111

37,695－37,69566,560

5,242

2,502

74,30522,55396,858106,494

25,685

25,106

157,285645

157,930

Sales

Total
Operating income
Assets33

19,063
158,895

14,019 2,726,485
44,88863,951
163,145

102,287 3,481,198

Other items
Depreciation and amortization
Amortization of goodwill

2

Investments in associates
accounted for using equity method
Increase in property, plant andequipment, and intangible assets

1 Plant and environmental engineering, research and analysis, employment agency/staffing operations, etc.
2 Excluding amortization of goodwill

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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 2021
2,462,680
53,481(54,844)2,461,317

Fiscal 2022
2,731,530
58,906(63,951)
2,726,485

Operating income
Total of reporting segments
Operating income in “Others” category
Elimination of intersegment transactions

Fiscal 2021
Fiscal 2022
231,046
158,895
4,114
4,250
189
301
1
(32,702)(35,095)
Corporate expenses, etc.
Operating income on consolidated statements of income
202,647
128,3521
Corporate expenses, etc. include corporate revenue, basic research expense, and group management expense, etc.
which are not allocated to reporting segments.
AssetsTotal of reporting segments
Assets in “Others” category
Elimination of intersegment transactions

Fiscal 2021
Fiscal 2022
3,289,305
3,378,911
94,687102,287(533,096)(519,877)
498,180493,205
Corporate assets 1
Total assets on consolidated balance sheets
3,349,075
3,454,5261
Corporate assets include assets of Asahi Kasei Corp.—surplus operating funds (cash and deposits), long-term
investment capital (investment securities, etc.), and land, etc.

X. Geographic information
1. Fiscal 2021
(1) Net salesJapan
1,276,878

United States
357,472

China
238,681

Other regions
588,286

United States
119,423

Other regions
116,578

Total
805,215

United States
455,712

China
241,960

Other regions
680,855

Other regions
119,551

Total
871,701

Total
2,461,317(2) Property, plant and equipment
Japan569,214

2. Fiscal 2022
(1) Net salesJapan
1,347,958

Total
2,726,485(2) Property, plant and equipment
Japan595,513

Asahi Kasei
Consolidated Results

United States
156,637

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