Asahi Kasei Corporation
Head Office: 3-3-23 Nakanoshima, 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 3, 2010

Consolidated Results for 1st Quarter Fiscal 2010:
April 1, 2010 – June 30, 2010

(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 income (loss)
Ordinary income (loss)
Net income (loss)
Net income (loss) per share*
Diluted net income (loss) per share*

Q1 2010353,508 [22.2%]
22,845 [—]
20,735 [—]9,262 [—]
6.62—

Q1 2009289,344 [−25.0%](338) [—]
(1,750) [—](1,746) [—](1.25)—* Yen

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

June 2010
1,390,717
640,12245.2%
449.32

March 2010
1,368,892
644,68846.3%
452.91* Yen

Notes:• Net worth consists of shareholders’ equity and valuation and translation adjustments.
• Net worth as of June 30, 2010, was ¥628,306 million; as of March 31, 2010, ¥633,343
million.
II. Cash Dividends
Fiscal year
2009
2010
2010 (forecast)
Note:

Q1
—
—

Cash dividends per share*
Q2
Q3
Q4
Total annual
5.00
—
5.00
10.00
5.00

—

5.00

10.00
* Yen

No revision of cash dividend forecast during the period.

Asahi Kasei
Consolidated Results

August 3, 2010
1/12

III. Forecasts for Fiscal 2010 (April 1, 2010 – March 31, 2011)
1. Latest forecasts (percent change from results in year-ago period in brackets)
Net sales
Operating income
Ordinary income
Net income
Net income per share*First half
789,000 [19.8%]
52,000 [189.5%]
48,000 [218.4%]
23,000 [442.2%]
16.45

Full year
1,677,000 [17.0%]
80,000 [38.8%]
77,500 [37.5%]
42,500 [68.1%]
30.39
* Yen

2. Comparison of previous and revised H1 2010 forecasts

Net sales
Operating income
Ordinary income
Net income

Previous H12010 forecast
792.0
31.5
31.0
13.0

Revised H12010 forecast
789.0
52.0
48.0
23.0

Increase(decrease)
(3.0)
20.5
17.0
10.0

(billions of yen)cf. H1 2009
results
658.6
18.0
15.1
4.2

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 whichcannot be foreseen.
• The forecast for the first half of fiscal 2010 announced on May 10, 2010, has beenrevised.
• The forecast for the full year shown above is that which was announced on May 10,
2010. A revision will be made when first half results are announced.
IV. Other Information
1. Changes in significant subsidiaries:

None.

2. Simplified accounting methods and special accounting methods
1) Simplified accounting methods
Method of calculating allowance for doubtful accounts: Because the rate of
unrecoverable receivables as of June 30, 2010, 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.
Valuation of inventories: No physical inventory as of June 30, 2010, 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 noncurrent assets: For assets depreciatedusing the declining-balance method, depreciation expenses for the fiscal year are
calculated in proportion to the fiscal period.
Asahi Kasei
Consolidated Results

August 3, 2010
2/12

Method of calculating deferred tax assets and liabilities: When there is no
significant change in the operating environment or in the occurrence of temporary
differences after the end of the previous fiscal year, collectibility of deferred tax
assets is calculated based on the performance forecasts and tax planning used in
the previous fiscal year. However, when there is significant change in theoperating environment or in the occurrence of temporary differences after the endof the previous fiscal year, collectibility of deferred tax assets is calculated basedon the performance forecasts and tax planning used in the previous fiscal year
together with the effect of such significant change.
2) Special accounting methods
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.
The amount shown as “income taxes” includes both “income taxes – current” and“income taxes – deferred.”
3. Changes in accounting principles/procedures, changes in methods of presentation
1) Application of Accounting Standard for Equity Method of Accounting forInvestments and Practical Solution on Unification of Accounting Policies Applied
to Associates Accounted for Using the Equity Method
Accounting Standard for Equity Method of Accounting for Investments (ASBJ
Statement No. 16) and Practical Solution on Unification of Accounting Policies
Applied to Associates Accounted for Using the Equity Method (PITF No. 24) havebeen applied beginning from the quarter ended June 30, 2010. This change had
no effect on the consolidated quarterly financial statements.
2) Application of Accounting Standard for Asset Retirement Obligations
Accounting Standard for Asset Retirement Obligations (ASBJ Statement No. 18)
and Guidance on Accounting Standard for Asset Retirement Obligations (ASBJ
Guidance No. 21) have been applied beginning from the quarter ended June 30,
2010. As a result, income before income taxes was ¥1,283 million lower than it
would have been if the previous method had been used. The impact on operating
income and ordinary income was immaterial. The change in asset retirement
obligations due to the start of application of this accounting standard, etc., was¥4,038 million.
3) Application of Accounting Standard for Business Combinations and related
matters
Accounting Standard for Business Combinations (ASBJ Statement No. 21),
Accounting Standard for Consolidated Financial Statements (ASBJ Statement No.
22), Partial Amendments to Accounting Standard for Research and Development
Costs (ASBJ Statement No. 23), Revised Accounting Standard for Business
Divestitures (ASBJ Statement No. 7), Revised Accounting Standard for Equity
Method of Accounting for Investments (ASBJ Statement No. 16), and Revised
Guidance on Accounting Standard for Business Combinations and AccountingStandard for Business Divestitures (ASBJ Guidance No. 10) have been applied
beginning from the quarter ended June 30, 2010. With the application of
Accounting Standard for Consolidated Financial Statements (ASBJ Statement No.
Asahi Kasei
Consolidated Results

August 3, 2010
3/1222), the evaluation method for assets and liabilities of consolidated subsidiaries
changed from the partial fair value evaluation method to the full fair value
evaluation method. The impact of this change on the consolidated financial
statements was immaterial.
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 2010
1,402,616,332
4,256,124
1,398,370,776

FY 2009
1,402,616,332
4,228,468
1,398,523,188** Q1 2009

V. Overview of Consolidated Results
1. Consolidated group results
The global economy was on a recovery path during the April–June quarter, led byrobust demand in Asia and economic growth in emerging markets, although there wassome impact of the instability of European credit markets. While domestic demandremained weakened with a severe state of public finances and deflation continuing,
the Japanese economy entered a phase of recovery with increased exports,
particularly to China.
The consolidated quarterly results of Asahi Kasei Corp. and its consolidated
subsidiaries and equity-method affiliates (the Asahi Kasei Group) reflected
substantially greater performance buoyed by favorable overseas demand in theChemicals segment as well as performance recovery driven by increased productshipments in the Electronics and Fibers segments. Net sales for the quarter were¥353.5 billion, an increase of ¥64.2 billion (22.2%) from a year ago. Operating
income increased by ¥23.2 billion from the first quarter a year ago to ¥22.8 billion.
Ordinary income increased by ¥22.5 billion from a year ago to ¥20.7 billion. Net
income increased by ¥11.0 billion to ¥9.3 billion.
2. Results by operating segment
Beginning from the quarter ended June 30, 2010, Accounting Standard forDisclosures about Segments of an Enterprise and Related Information (ASBJ
Statement No. 17) and Guidance on Accounting Standard for Disclosures about
Segments of an Enterprise and Related Information (ASBJ Guidance No. 20) havebeen applied, resulting in six reporting segments: Chemicals, Homes, Health Care,
Fibers, Electronics, and Construction Materials.
In describing the state of the Asahi Kasei Group’s businesses by major businessclassification, businesses not included in the above six reporting segments are
categorized as “Others.” The “Others” category is equivalent to the previous Services,
Engineering and Others segment, including plant engineering and environmental
engineering, research and analysis, and employment agency/staffing operations.
The operating expenses of one consolidated subsidiary previously included in Services,
Engineering and Others have been included in “corporate expenses and eliminations”
beginning from the quarter ended June 30, 2010. The impact of this change isimmaterial.
CHEMICALS
Sales increased by ¥45.4 billion (34.2%) from the first quarter a year ago to ¥178.4
billion and operating income increased by ¥13.1 billion (593.7%) to ¥15.3 billion.
Asahi Kasei
Consolidated Results

August 3, 2010
4/12

Operating income in chemicals and derivative products operations increased as
the impact of a plant maintenance turnaround was outweighed by generally strong
demand. In particular, overseas market prices for acrylonitrile (AN) and adipic acidincreased substantially. In polymer products operations, shipment volumes
increased driven by a recovery of demand in automotive and electronics applications,and plant operating rates improved. In specialty products operations, sales of homeuse products such as Saran Wrap™ increased.
HOMES
Sales increased by ¥6.0 billion (10.3%) from the first quarter a year ago to ¥64.5
billion and the operating loss decreased by ¥2.0 billion to ¥0.9 billion. Orders fororder-built homes increased by ¥12.9 billion (16.9%) to ¥89.3 billion
In order-built homes, deliveries of both Hebel Haus™ unit homes and Hebel
Maison™ apartment buildings increased as orders began recovering during theprevious fiscal year.
HEALTH CARE
Sales increased by ¥0.2 billion (0.8%) from the first quarter a year ago to ¥28.7 billion
and operating income increased by ¥0.3 billion (8.8%) to ¥3.3 billion.
In pharmaceuticals operations, shipments of Recomodulin™ recombinant
thrombomodulin and the Flivas™ agent for the treatment of benign prostatic
hyperplasia increased, but NHI price revisions had a negative impact on productprices. In devices-related operations, shipments of APS™ polysulfone-membrane
artificial kidneys and therapeutic apheresis devices increased, but performance inPlanova™ virus removal filters was sluggish and the strong yen had an impact on
performance in each product category.
FIBERS
Sales increased by ¥4.1 billion (18.2%) from the first quarter a year ago to ¥26.5
billion and operating income increased by ¥2.7 billion to ¥1.2 billion.
Shipments of Bemberg™ regenerated cellulose increased significantly both inJapan and overseas. Performance of Roica™ elastic polyurethane filament, Leona™
nylon 66 filament, and nonwovens including spunbond was favorable, buoyed by arecovery in demand.
ELECTRONICS
Sales increased by ¥9.4 billion (29.8%) from the first quarter a year ago to ¥40.9
billion and operating income increased by ¥5.8 billion to ¥5.2 billion.
In electronic devices operations, shipments of LSIs in new applications increased.
In electronic materials operations, shipments of Hipore™ Li-ion rechargeable battery
separator and Sunfort™ dry film photoresist increased.
CONSTRUCTION MATERIALS
Sales decreased by ¥0.6 billion (5.4%) from the first quarter a year ago to ¥11.0 billion
but operating income increased by ¥0.4 billion to ¥0.3 billion.
While shipments of Hebel™ autoclaved aerated concrete (AAC) panels and other
AAC-related products as well as shipments of piling systems for foundations
decreased due to a downturn in new construction starts, shipments of Neoma™ highperformance foam insulation panels increased supported by government policies forenergy conservation. Significant operating cost reductions were also achieved.
OTHERS
Sales in “Others” comprising engineering operations and employment agency/staffing
operations decreased by ¥0.4 billion (9.1%) from the first quarter a year ago to ¥3.5
billion, and operating income decreased by ¥0.1 billion (24.0%) to ¥0.3 billion.
Asahi Kasei
Consolidated Results

August 3, 20105/12

VI. Consolidated Balance Sheets

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable, trade
Short-term investment securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
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
Deferred tax assets
Other
Allowance for doubtful accounts
Subtotal
Total noncurrent assets
Total assets

Asahi Kasei
Consolidated Results

At end ofJune 2010

At end ofMarch 2010

87,338256,193554
128,538
94,87256,06923,396
51,959(1,395)697,523

93,928238,931985
124,557
75,04451,484
23,10654,027(1,654)660,408

409,471(227,016)
182,455
1,183,705(1,017,515)
166,190
55,378
6,953(2,096)
4,857
18,959116,440(101,147)
15,293443,131404,974(224,608)
180,366
1,169,979(1,005,094)
164,885
55,031
5,808(1,132)
4,676
27,380115,024(99,867)
15,158447,497

5,747
27,66533,412

5,927
28,72934,656160,686
6,069
19,97330,159(237)
216,650
693,193
1,390,717

175,059
6,074
15,38329,962(147)
226,331
708,485
1,368,892

August 3, 2010
6/12

Liabilities
Current liabilities
Notes and accounts payable, trade
Short-term loans payable
Commercial paper
Lease obligations
Income taxes payable
Accrued expenses
Advances received
Provision for repairs
Provision for product warranties
Asset retirement obligations
Other
Total current liabilities
Noncurrent liabilities
Bonds payable
Long-term loans payable
Lease obligations
Deferred tax liabilities
Provision for retirement benefits
Provision for directors’ retirement benefits
Provision for repairs
Asset retirement obligations
Long-term guarantee deposited
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total valuation and translation adjustments
Minority interests
Total net assets
Total liabilities and net assets

Asahi Kasei
Consolidated Results

At end ofJune 2010

At end ofMarch 2010

140,378
104,979
32,0001,171
5,415
74,82751,538
2,905
2,877
513
54,649471,253

121,409
93,962
19,0001,123
12,16091,37137,815
8,191
3,607
—
46,189434,827

25,000112,001
3,488
5,658
109,147
1,270
905
3,475
18,331
68
279,342
750,595

25,000121,9213,593
7,597
109,450
1,225
169—
18,321
2,101
289,378
724,204

103,389
79,403434,647(2,031)
615,408

103,389
79,403432,114(2,017)
612,888

28,432

36,692

0(15,535)
12,898
11,816640,122
1,390,717(109)(16,128)
20,455
11,346644,688
1,368,892

August 3, 2010
7/12

VII. Consolidated Statements of Income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividends income
Equity in earnings of affiliates
Other
Total non-operating income
Non-operating expenses
Interest expense
Equity in losses of affiliates
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income (loss)
Extraordinary loss
Loss on valuation of investment securities
Loss on disposal of noncurrent assets
Impairment loss
Environmental expenses
Loss on adjustment for changes of accounting
for asset retirement obligations
Business structure improvement expenses
Total extraordinary loss
Income (loss) before income taxes
Income taxes
Income before minority interests
Minority interests in income (loss)
Net income (loss)

Asahi Kasei
Consolidated Results

Q1 2009289,344
225,176
64,16864,506(338)

Q1 2010353,508
262,490
91,01968,173
22,845

167
949
—
590
1,706

206
1,049
443
961
2,658

907
604
485
1,122
3,118
(1,750)

871
—
2,296
1,601
4,768
20,735

36
203
58
—

136
1,051
18
604

—

1,240

961
1,259
(3,008)(1,160)—(103)(1,746)

3,873
6,923
13,813
4,130
9,683
421
9,262

August 3, 2010
8/12

VIII. Cash flows

Cash flows from operating activities:
Income (loss) before income taxes
Depreciation and amortization
Impairment loss
Amortization of goodwill
Amortization of negative goodwill
Increase (decrease) in provision for repairs
Increase (decrease) in provision product warranties
Increase (decrease) in provision for retirement benefits
Interest and dividend income
Interest expense
Equity in (earnings) losses of affiliates
Loss (gain) on valuation of investment securities
Loss (gain) on disposal of noncurrent assets
Decrease (increase) in notes and accounts receivable,
trade
Decrease (increase) 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
Net cash provided by (used in) operating activities
Cash flows from investing activities:
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
Proceeds from purchase of investments in subsidiaries
resulting in change in scope of consolidation
Payments of loans receivableCollection of loans receivable
Other, net
Net cash provided by (used in) investing activities

Asahi Kasei
Consolidated Results

Q1 2009

Q1 2010(3,008)18,479
58
292
(9)
(126)
(1,741)262(1,116)
907
604
36
203

13,81319,80818
265(67)(4,549)(730)(291)(1,255)
871
(443)
136
1,051

(12,675)(15,114)(8,267)(25,075)(4,620)14,740(18,896)
14,406
15,28271
1,927(1,068)(3,735)(2,805)(16,520)
13,737
12,287
12,683
1,692(931)(11,619)
1,825(19,863)67(2,483)(5,122)
5,014(14,140)
202(1,211)
(578)
329

1,332

—

(4,896)2,708(960)(24,203)

(787)
829
(877)
(16,232)

August 3, 2010
9/12

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
Redemption of bonds
Repayments of lease obligations
Purchase of treasury stock
Proceeds from disposal of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders
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 from change of scope of consolidation
Cash and cash equivalents at end of period

Q1 2009

Q1 2010(136)
37,0003,727(12,367)(20,000)
(156)
(26)
7
(4,196)
(157)
(19)
3,678

822
13,000
207
(574)
—
(287)
(17)
3
(6,992)
(361)
98
5,898

273

295

(23,057)
98,092(8,214)
93,125360

876

75,39585,788IX. Additional Information
Beginning from the quarter ended June 30, 2010, Accounting Standard for Disclosuresabout Segments of an Enterprise and Related Information (ASBJ Statement No. 17) and
Guidance on Accounting Standard for Disclosures about Segments of an Enterprise andRelated Information (ASBJ Guidance No. 20) have been applied, resulting in six reporting
segments: Chemicals, Homes, Health Care, Fibers, Electronics, and Construction
Materials.
The “Others” category is equivalent to the previous Services, Engineering andOthers segment, including plant engineering and environmental engineering, research
and analysis, and employment agency/staffing operations.
The operating expenses of one consolidated subsidiary previously included inServices, Engineering and Others have been included in “corporate expenses andeliminations” beginning from the quarter ended June 30, 2010. The impact of thischange is immaterial.

Asahi Kasei
Consolidated Results

August 3, 2010
10/12

1. Consolidated net sales and operating income (loss) by segment
1) Consolidated net sales
Q1 2009

Q1 2010

132.9
58.5
28.5
22.4
31.5
11.6
3.9
289.3

178.4
64.5
28.7
26.5
40.9
11.0
3.5
353.5

Chemicals
Homes
Health Care
FibersElectronics
Construction Materials
Others
Total

Increase(decrease)
45.4
6.0
0.2
4.1
9.4
(0.6)
(0.4)
64.2

(billions of yen)First half FY
2010 forecast
386.0
174.0
58.0
53.0
85.0
24.0
9.0
789.0

(billions of yen)First half FY
2010 forecast
32.0
8.5
3.5
1.5
9.5
1.0
0.5
56.5

2) Consolidated operating income (loss)

Chemicals
Homes
Health Care
FibersElectronics
Construction Materials
OthersCombined
Corporate expenses andeliminations
Consolidated

Q1 2009

Q1 2010

2.2
(3.0)
3.1
(1.5)
(0.6)
(0.0)
0.4
0.6

15.3
(0.9)
3.3
1.2
5.2
0.3
0.3
24.8

Increase(decrease)
13.1
2.0
0.3
2.7
5.8
0.4
(0.1)
24.2

(1.0)

(2.0)

(1.0)

(4.5)

(0.3)

22.8

23.2

52.0

2. Operating income increases/decreases by segment

Sales
volumeChemicals
Homes
Health Care
FibersElectronics
Construction Materials
OthersCorporate expenses
and eliminations
Consolidated

Asahi Kasei
Consolidated Results

2.9
0.6
0.4
1.4
6.5
(0.0)
(0.1)

(billions of yen)
Increase (decrease) due to:Net
Operatingincrease
Sales prices [of which,costs and(decrease)
due to foreign exchange]others25.1(1.6)(14.9)
13.1
1.0
—
0.4
2.0
(0.8)
(0.5)
0.7
0.3
0.0
(0.2)
1.3
2.7
(4.2)
(0.4)
3.5
5.8
(0.1)
—
0.5
0.4
0.0
0.0
(0.0)
(0.1)

—

—

—

(1.0)

(1.0)

11.7

21.0

(2.7)

(9.6)

23.2

August 3, 2010
11/12

3. Major financial metrics (consolidated)(billions of yen, except employees and D/E ratio)
Q1 2009
Q1 2010
Capital expenditure (tangible)
21.9
16.7
Capital expenditure (intangible)
2.7
1.0
Purchase of investment securities
5.1
0.6
Depreciation and amortization
18.5
20.1
Balance of payments
0.2
0.4
of which, dividends received
0.9
1.0
Employees at end of period
25,33325,393
D/E ratio
0.55
0.44
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
2009

Q1
2010

Increase(decrease)

First half FY
2010 forecast

3,171
76.4
321.1
1,511
37.9

3,840
89.3
355.7
1,566
40.8

669
12.9
34.5
55
2.9

7,680
175.0
356.1
5,210
126.0

5. Key operating factors

Naphtha price(yen/kL, domestic)
Exchange rates
Yen/US$(market average) Yen/€

Q1
2009

Q1
2010

Increase(decrease)

First half FY
2010 forecast

33,30049,700(16,400)

46,350

97
133

92
117

(5)
(16)

90
115

6. Interest-bearing debt (consolidated)

Short-term loans payable
Commercial paper
Long-term loans payable
Bonds payable
Lease obligations
Total

Asahi Kasei
Consolidated Results

At end ofMarch 2010
94.0
19.0
121.9
25.0
4.7
264.6

(billions of yen)
At end ofIncrease
June 2010(decrease)
105.0
11.0
32.0
13.0
112.0
(9.9)
25.0
—
4.7
(0.1)
278.6
14.0

August 3, 201012/12