Asahi Kasei Corporation
Head Office: 2-6, Dojimahama 1-chome, Kita-ku, Osaka, JapanTokyo Head Office: 1-2, Yurakucho 1-chome, Chiyoda-ku, Tokyo, Japan
Security code: 3407
Contact: Corporate Communications, Phone +81-3-3507-2060, Fax +81-3-3507-2495
January 31, 2007

Consolidated Results for 1st to 3rd Quarter Fiscal 2006:
April 1, 2006 – December 31, 2006

(Unaudited; all figures in millions of yen, rounded to the nearest million, unless otherwise specified)

I. Conditions for Preparation of Quarterly Statements
1. Change in scope of consolidation, application of equity methodNo. of newly consolidated subsidiaries:

4.

No. of consolidated subsidiaries newly excluded:0.

No. of unconsolidated subsidiaries and affiliates for which the equity method is newlyapplied: 1.
No. of unconsolidated subsidiaries and affiliates newly excluded from the equity method:
3.
II. 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–Q3 2006
1,187,059 [+8.8%]
94,187 [+15.4%]
93,528 [+15.8%]
56,851 [+22.0%]
40.62—

Q1–Q3 2005
1,090,749 [+7.8%]
81,630 [−8.9%]
80,785 [−8.5%]
46,581 [−0.3%]
33.25
—
* Yen

2. Financial position
At end ofTotal assets
Net assets
Net worth/total assets
Net worth per share*Dec. 2006
1,485,102
644,11342.9%
454.88Dec. 2005
1,412,554
574,09840.6%
410.09* Yen

Note: Net assets at end of December 2005 does not include minority interests. Networth at end of December 2005 is the same as shareholders’ equity. Net worth at endof December 2006 comprises shareholders’ equity and valuation, translation
adjustment and others.

Asahi Kasei
Consolidated Results

January 31, 2007
p. 1/7

3. Cash flows
Nine months ended December
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Cash and cash equivalents at end of period

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

2005
37,198(41,466)
12,14876,712

III. Forecast for fiscal year ending March 31, 2007
1. Consolidated forecast results*Net sales
Ordinary profit
Net income
Net income per share (yen)1,617,000
121,000
68,00048.60* 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.
2. Cash dividends
A ¥7 per share year-end dividend is planned, ¥1 per share higher than had beenplanned previously, making annual dividends of ¥12 per share together with the ¥5 pershare interim dividend.
IV. Overview of Consolidated Results
1. Consolidated group results
The length of Japan’s economic expansion exceeded that of the “Izanagi boom” of thelate 1960s, with increasing private-sector capital investment and steady growth ofindustrial production during the nine-month period under review. The outlook for theoperating climate nevertheless remains obscure, with persistently elevated feedstock
prices, moderate domestic consumer spending, and increasingly severe competition in
China and other world markets.
Consolidated net sales grew by ¥96.3 billion from a year ago to ¥1,187.1 billion, an
8.8% increase. Sales growth was greatest in chemicals operations, with product prices
rising to compensate for increased feedstock costs. Operating profit grew by ¥12.6billion to ¥94.2 billion, a 15.4% increase. Ordinary profit grew by ¥12.7 billion to¥93.5 billion, a 15.8% increase. Net income grew by ¥10.3 billion to ¥56.9 billion, a
22.0% increase.

Asahi Kasei
Consolidated Results

January 31, 2007
p. 2/7

2. Results by operating segment
CHEMICALS
Sales for the segment grew by ¥66.1 billion to ¥556.2 billion, a 13.5% increase.
Operating profit grew by ¥2.6 billion to ¥37.0 billion, a 7.6% increase.
Sales and operating profit in volume products, comprising chemicals/derivative
products and polymer products, increased. Higher feedstock costs were overcome byproduct price increases and by increased profitability in the nylon-related operations ofadipic acid and Leona™ nylon 66 resin and filament.
Sales and operating profit in specialty products grew with increased shipments ofHipore™ Li-ion rechargeable battery membrane separators, export ofmembrane-process chlor-alkali electrolyzers to China, and increased shipments ofion-exchange membranes for chlor-alkali.
HOMES
Sales for the segment grew by ¥0.1 billion to ¥275.7 billion, a 0.1% increase.
Operating profit decreased by ¥0.1 billion to ¥14.3 billion, a 0.7% decline. New orders
worth ¥222.0 billion were received during the period for order-built homes, ¥4.2 billion
less than a year ago.
Sales increased slightly, with growth in housing-related operations such as
remodeling and real estate offsetting a sales decrease from fewer deliveries oforder-built unit homes. Operating profit decreased slightly, as profit growth from large
condominium construction projects and in housing-related operations such as
remodeling and real estate was insufficient to overcome the effect of fewer deliveries oforder-built unit homes.
PHARMA
Sales for the segment decreased by ¥0.1 billion to ¥80.9 billion, a 0.2% decline.
Operating profit grew by ¥4.4 billion to ¥14.4 billion, a 43.8% increase.
Sales decreased with reimbursement price cuts throughout pharmaceutical andmedical device operations. Operating profit grew with increased shipments of Flivas™
therapy for benign prostatic hyperplasia and APS™ polysulfone-membrane artificial
kidneys, and with licensing income.
FIBERS
Sales for the segment grew by ¥12.1 billion to ¥77.6 billion, an 18.5% increase.
Operating profit decreased by ¥0.4 billion to ¥2.7 billion, a 13.1% decline.
Sales grew with product price increases to offset elevated feedstock costs, increased
shipments of Roica™ elastic polyurethane filament and Bemberg™ cupro fiber, andfavorable exchange rates. Operating profit decreased with the effect of a tornado in
September in Nobeoka, Miyazaki, and with the Dorlastan™ elastic polyurethane
filament business acquired from Lanxess operating at a loss.
ELECTRONICS MATERIALS AND DEVICES
Sales for the segment grew by ¥9.7 billion to ¥85.7 billion, a 12.8% increase.
Operating profit grew by ¥4.1 billion to ¥18.5 billion, a 28.4% increase.
Product prices declined with intensified competition, and shipments in some
application segments decreased as consumer electronics manufacturers adjusted
inventories. Sales and operating profit nevertheless grew with generally strong
demand for both electronic materials and electronic devices.

Asahi Kasei
Consolidated Results

January 31, 2007
p. 3/7

CONSTRUCTION MATERIALS
Sales for the segment grew by ¥3.7 billion to ¥47.6 billion, an 8.5% increase.
Operating profit grew by ¥1.2 billion to ¥4.9 billion, a 32.3% increase.
Sales and operating profit grew as demand for Hebel™ autoclaved lightweight
concrete (ALC) panels and Eazet™ piles for small-scale construction was generally
healthy, and with increased shipments of Neoma™ high-performance phenolic foampanels.
LIFE & LIVING
Sales for the segment grew by ¥0.3 billion to ¥41.3 billion, a 0.8% increase. Operatingprofit decreased by ¥0.2 billion to ¥4.3 billion, a 5.2% decline.
Sales grew with increased shipments of Saran Wrap™ cling film and Saran™ fiber.
Operating profit decreased with higher advertising expenses and elevated feedstock
costs.
SERVICES, ENGINEERING AND OTHERS
Sales for the segment grew by ¥4.3 billion to ¥22.0 billion, a 24.4% increase.
Operating profit grew by ¥1.3 billion to ¥3.0 billion, a 71.4% increase.
Engineering operations continued to perform well.
V. Consolidated Statements of Income

Net sales
Cost of sales
Gross profit
Selling, general andadministrative expenses
Operating profit
Non-operating income
Non-operating expensesOrdinary profit
Special gains
Special losses
Income before income taxes
and minority interests
Net income

Asahi Kasei
Consolidated Results

Q1–Q3 2006

Q1–Q3 2005

Increase(decrease)

Percentchange1,187,059
891,871295,188

1,090,749
815,392
275,357

96,31076,47919,831

+8.8
+9.4
+7.2

201,001

193,727

7,274

+3.8

94,187
7,009
7,669
93,5282,053
4,597

81,6306,082
6,926
80,785
1,874
7,742

12,557927
743
12,743179(3,145)

+15.4
+15.2
+10.7
+15.8
+9.6
−40.6

90,98474,91816,066+21.4

56,851

46,581

10,270+22.0

January 31, 2007
p. 4/7

VI. Consolidated Balance Sheets

AssetsCurrent assets
Fixed assets
Property, plant and equipment
Intangible fixed assets
Investments and other assets
Total assets
Liabilities
Current liabilities
Long-term liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock, at cost
Valuation, translation adjustment
and others
Minority interest in consolidated
subsidiaries
Total net assets
Total liabilities, and net assets
Minority interest in consolidated
subsidiariesShareholders’ equity
Issued and outstanding
Capital surplus
Retained earnings
OthersCommon stock in treasury, at cost
Total liabilities, minority interestand shareholders’ equity

Asahi Kasei
Consolidated Results

At end ofDec. 2006

At end ofMar. 2006

Increase(decrease)738,427
746,674
432,347
28,821
285,507
1,485,102

644,192
731,852
414,368
33,094284,390
1,376,044

94,235
14,822
17,979(4,273)
1,117
109,058

530,785
310,204
840,989439,724
335,193774,916

91,061(24,989)
66,073550,186
103,389
79,447385,125(17,775)——————————

86,291—

—

7,636

—

—

644,113
1,485,102

—
—

—
—

—

6,917

—

—
—
———
—

594,211103,389
79,433
342,450
86,251(17,311)

——
—
—
—
—

—

1,376,044—

January 31, 2007
p. 5/7

VII. Cash Flows
Nine months ended December
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Effect of exchange rate changes on cash andcash equivalents
Net increase (decrease) in cash and cashequivalents
Cash and cash equivalents at beginning ofperiod
Cash and cash equivalents held by newly
consolidated subsidiaries
Cash and cash equivalents at end of period

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

2005
37,198(41,466)
12,148294

234(3,209)8,113

86,39068,4562,236

142

85,41776,712

VIII. Operating Segment Information
1. Consolidated net sales

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

Q1–Q3
2006
556.2
275.7
80.9
77.6
85.7
47.6
41.3
22.0
1,187.1

Q1–Q3
2005
490.1
275.6
81.0
65.5
76.0
43.9
41.0
17.7
1,090.7(billions of yen)
Increase
FY 2006(decrease)
forecast
66.1
744.0
0.1
407.0
(0.1)
104.0
12.1
107.0
9.7
113.0
3.7
62.0
0.3
53.0
4.3
27.0
96.3
1,617.0

Q1–Q3
2006
37.0
14.3
14.4
2.7
18.5
4.9
4.3
3.0
99.0
(4.8)
94.2

Q1–Q3
2005
34.3
14.4
10.0
3.1
14.4
3.7
4.5
1.8
86.2
(4.6)
81.6

(billions of yen)
Increase
FY 2006(decrease)
forecast
2.6
48.5
(0.1)
28.5
4.4
15.0
(0.4)
3.5
4.1
23.0
1.25.0(0.2)
4.5
1.3
4.0
12.8
132.0
(0.2)
(7.0)
12.6
125.0

2. Consolidated operating profit

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

Asahi Kasei
Consolidated Results

January 31, 2007
p. 6/7

3. Contract trends for home construction operations

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

Q1–Q32006
222.0
9,409
315.8
9,060
210.1

Q1–Q3
2005
226.2
10,099
324.3
9,266
211.9

Increase(decrease)
(4.2)
(690)
(8.5)
(206)
(1.8)

FY 2006
forecast
301.0
12,821287.0
14,278318.0

4. Key operating factors

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

Asahi Kasei
Consolidated Results

Q1–Q3
2006
50,300116

FY 2006
forecast
49,600116

January 31, 2007
p. 7/7