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
August 6, 2008

Consolidated Results for 1st Quarter Fiscal 2008:
April 1, 2008 – June 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 2008
385,992
19,401
21,24913,465
9.63—

Q1 2007385,170 [+10.5%]
25,919 [+69.4%]
28,235 [+87.4%]
18,066 [+96.7%]
12.91
—
* 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*

June 2008
1,480,473
674,72845.0%
476.91March 2008
1,425,367
674,15646.7%
476.39* Yen

Notes:• Net worth consists of shareholders’ equity and valuation, translation adjustment andothers.
• Net worth as of June 30, 2008, was ¥666,940 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

—

7.00

14.00
* Yen

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

Asahi Kasei
Consolidated Results

August 6, 2008
p. 1/11

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*First half
858,000
38,00037,00022,00015.73

Full year
1,810,000 [+6.7%]
128,000 [+0.3%]
125,000 [+3.8%]
75,000 [+7.2%]
53.63
* Yen

2. Comparison of previous and revised H1 2008 forecasts

Net sales
Operating profit
Ordinary profit
Net income

Previous H1
Revised H1
2008 forecast 2008 forecast
856.0
858.0
50.5
38.0
49.5
37.0
30.0
22.0

3. Annual forecast

Net sales
Operating profit
Ordinary profit
Net income

Increase in H1
2008 forecast
2.0(12.5)(12.5)(8.0)(billions of yen)cf. H1 2007
results
830.8
63.7
63.1
38.0

(billions of yen)
FY 2008 forecast
1,810.0
128.0
125.0
75.0

cf. FY 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 first half of fiscal 2008 announced on May 8, 2008, has been revised.
• A revision of the forecast for the full year will be made when first half results areannounced.
IV. Other Information
1. Changes in significant subsidiaries which affected scope of consolidation during the
fiscal quarter ended June 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 June 30, 2008, was not significantly different thanthat 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.
Asahi Kasei
Consolidated Results

August 6, 2008
p. 2/11

Valuation of inventories: No physical inventory as of June 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.
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 ¥766 million andordinary profit and income before income taxes and minority interests are lower by¥643 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
Asahi Kasei
Consolidated Results

August 6, 2008
p. 3/11

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 andguidance, 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 ¥5,159 million, deferred income tax liabilities are lower by¥2,099 million, and net unrealized gain on securities is lower by ¥3,060 million
than they would have been using the previous standard and method.
4. 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 2008
1,402,616,332
4,145,417
1,398,515,789

FY 2007
1,402,616,332
4,080,805
1,399,004,932

V. Overview of Consolidated Results
1. Consolidated group results
The global economy remained insecure during the April to June quarter, with rising
feedstock and fuel prices and lower economic growth in the US. Economic growth inJapan was also lower, with sluggish consumer spending and decreasing corporate
earnings. As such, the operating environment for Asahi Kasei and its consolidated
subsidiaries (the Asahi Kasei Group) was particularly challenging.
Asahi Kasei’s consolidated net sales for the quarter were ¥386.0 billion, an
increase of ¥0.8 billion (0.2%) from a year ago. Operating profit was ¥19.4 billion, adecrease of ¥6.5 billion (25.1%), with high feedstock and fuel prices having aconsiderable impact on profitability in the Chemicals, Fibers, and Construction
Materials segments. Ordinary profit was ¥21.2 billion, a decrease of ¥7.0 billion(24.7%). Net income was ¥13.5 billion, a decrease of ¥4.6 billion (25.5%).

Asahi Kasei
Consolidated Results

August 6, 2008
p. 4/11

2. Results by operating segment
CHEMICALS
Sales decreased by ¥7.7 billion (3.5%) from the first quarter a year ago to ¥210.4
billion and operating profit decreased by ¥8.1 billion (47.3%) to ¥9.1 billion.
In specialty products, sales of Hipore™ Li-ion rechargeable battery separatorsand of ion-exchange membranes for chlor-alkali increased. In volume products, bothchemicals and derivative products and polymer products, operations were sharply
impacted by rising feedstock and fuel costs.
HOMES
Sales increased by ¥1.4 billion (2.2%) from the first quarter a year ago to ¥63.7 billion
and the operating loss increased by ¥0.9 billion to ¥3.7 billion. Orders for order-built
homes decreased by ¥2.4 billion (3.0%) to ¥77.3 billion.
Remodeling operations performed well, but order-built homes operations had
decreased deliveries of unit homes.
PHARMA
Sales increased by ¥7.4 billion (27.3%) from the first quarter a year ago to ¥34.6 billion
and operating profit increased by ¥4.4 billion (95.1%) to ¥9.0 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 ¥1.5 billion (5.4%) from the first quarter a year ago to ¥26.7 billion
and operating profit decreased by ¥0.5 billion (28.1%) to ¥1.2 billion.
Market conditions for Roica™ elastic polyurethane filament operations
deteriorated. Bemberg™ regenerated cellulose and nonwovens operations were
sharply impacted by rising feedstock and fuel costs.
ELECTRONICS MATERIALS & DEVICES
Sales decreased by ¥1.1 billion (3.6%) from the first quarter a year ago to ¥28.2 billion
and operating profit decreased by ¥1.2 billion (21.6%) to ¥4.5 billion.
Shipment volumes rose throughout both the electronics materials and electronics
devices product lineups, but performance was impacted by lower sales prices andunfavorable foreign exchange movements.
CONSTRUCTION MATERIALS
Sales decreased by ¥0.6 billion (3.6%) from the first quarter a year ago to ¥14.7 billion
and operating profit decreased by ¥0.7 billion (67.8%) to ¥0.3 billion.
Operations in Hebel™ autoclaved lightweight concrete (ALC) panels andNeoma™ high-performance phenolic foam insulation panels were impacted by adecline in the number of new construction starts and a sharp rise in feedstock and fuelcosts.
SERVICES, ENGINEERING AND OTHERS
Sales increased by ¥2.9 billion (59.2%) from the first quarter a year ago to ¥7.7 billion
and operating profit increased by ¥0.9 billion (a multiple of 3.6) to ¥1.3 billion.
Engineering operations performed well with increased business related tooverseas plants.

Asahi Kasei
Consolidated Results

August 6, 2008
p. 5/11

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
Machinery and equipment
Land
Leased assets
Construction in progress
Other
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 ofJune 2008

At end ofMarch 2008

767,071
84,716296,362
239
135,910
109,582
51,04728,70262,024(1,511)
713,402740,075
82,903298,788303
131,505
93,59747,26926,13061,239(1,660)685,292

429,046

424,193

161,461
166,832
54,092261
29,734
16,666
37,6005,499
32,101
246,756
206,2444,649
8,860
27,152(148)
1,480,473

159,951
165,220
54,096–29,33915,58826,226
5,707
20,519234,873
190,991
4,703
12,777
26,514(113)
1,425,367

August 6, 2008
p. 6/11

Liabilities
Current liabilities
Notes and accounts payable, trade
Short-term borrowings
Commercial paper
Current portion of corporate bonds
Lease obligations
Accrued income taxes
Deferred tax liabilities
Accrued expenses
Advanced received
Allowance for repairs
Allowance for after-care of products
Other
Long-term liabilities
Corporate bonds
Long-term borrowings
Deferred tax liabilities
Lease liabilities
Accrued pension and severance costs
Allowance for repairs
Advanced received
Other
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

At end ofJune 2008

At end ofMarch 2008

582,467
161,679
45,182110,000
30,00050
11,602
15
84,32867,2791,965
5,892
64,475223,278
5,000
68,882
9,973
211
115,377
2,725
18,9662,145
805,745

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
751,211617,551
103,389
79,428436,792(2,058)49,38957,383(212)–(7,781)
7,788
674,728
1,480,473

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

August 6, 2008
p. 7/11

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
Foreign exchange gain, net
Other
Non-operating expenses
Interest expense
Other
Ordinary profit
Special losses
Loss on disposal of property, plant and equipment
Income before income taxes and minority interests
Income taxes
Total income taxes
Minority interest in income of consolidated subsidiaries
Net income

Asahi Kasei
Consolidated Results

Q1 2008
385,992
295,624
90,36870,966
19,401
4,348
252
1,378
431
1,513
774
2,500
984
1,516
21,249582
582
20,667
6,934
6,934
268
13,465

August 6, 2008
p. 8/11

VIII. Cash flows
Q1 2008
Cash flows from operating activities:
Income before income taxes and minority interest
Depreciation and amortization
Amortization of goodwill
Amortization of negative goodwill
Decrease in allowance for repairs
Decrease 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
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

20,667
17,814136(23)(2,104)(126)(1,691)(1,630)
984
(431)
582
(752)
(26,419)
8,902(24,209)
17,565
(765)
8,499
2,901
(1,190)(5,426)
4,784(21,049)788(14,672)(5,698)
113
(978)
1,208
(226)
(40,514)598
55,00010,000(345)(15,000)(48)
9(9,791)(20)(131)
40,272(2,803)
1,739
83,03384,773

August 6, 2008
p. 9/11

IX. Operating Segment Information
1. Consolidated net sales

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

Q1 2007

Q1 2008

218.1
62.3
27.2
28.2
29.2
15.2
4.8
385.2

210.4
63.7
34.6
26.7
28.2
14.7
7.7
386.0

Increase(decrease)
(7.7)
1.4
7.4
(1.5)
(1.1)
(0.6)
2.9
0.8

(billions of yen)First half FY
2008 forecast
460.0
173.0
63.0
56.0
58.0
30.0
18.0
858.0

(billions of yen)First half FY
2008 forecast
16.5
3.0
10.0
1.5
9.0
0.5
2.5
43.0

2. Consolidated operating profit (loss)

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

Q1 2007

Q1 2008

17.2
(2.8)
4.6
1.7
5.8
1.1
0.4
27.9

9.1
(3.7)
9.0
1.2
4.5
0.3
1.3
21.7

Increase(decrease)
(8.1)
(0.9)
4.4
(0.5)
(1.2)
(0.7)
0.9
(6.2)

(2.0)

(2.3)

(0.3)

(5.0)

25.9

19.4

(6.5)

38.0

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

(1.4)
(0.9)
2.3
0.0

(billions of yen)

Increase (decrease) due to:OperatingSales prices [of which,costs anddue to foreign exchange]others
5.5(6.1)(12.2)
0.5
—
(0.6)
(1.9)
(0.2)
4.0
0.4
(0.3)
(0.9)

Net
increase(decrease)
(8.1)
(0.9)
4.4
(0.5)

0.5

(1.6)

(1.2)

(0.2)

(1.2)

(0.2)

0.1

—

(0.6)

(0.7)

1.0

0.0

0.0

(0.0)

0.9

—

—

—

(0.3)

(0.3)

1.4

2.9

(7.8)

(10.8)(6.5)

August 6, 2008
p. 10/11

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
2007

Q1
2008

Increase(decrease)

First half FY
2008 forecast

3,474

3,199

(275)

6,550

79.6

77.3

(2.4)

154.0

322.8

331.7

8.9

322.2

1,962
46.6

1,852
44.4

(110)
(2.2)

5,350
130.6

Q1
2007

Q1
2008

Increase(decrease)

First half FY
2008 forecast

57,80070,90013,10078,950

121

105

(16)

105

5. Key operating factors

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

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

Asahi Kasei
Consolidated Results

At end ofMarch 2008
43.2
55.0
50.0
63.2

At end ofJune 2008
45.2
110.0
35.0
68.9

(billions of yen)
Increase(decrease)
2.0
55.0(15.0)
5.7

—

0.3

0.3

211.4

259.3

47.9

August 6, 2008
p. 11/11