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 12, 2020

Consolidated Results for Fiscal 2019:
April 1, 2019 – March 31, 2020
(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
Ordinary income
Net income attributable to owners of the parent
Net income per share*
Diluted net income per share*
Net income/shareholders’ equity
Ordinary income/total assets
Operating income/net sales

FY 2019
2,151,646 [−0.9%]
177,264 [−15.4%]
184,008 [−16.4%]
103,931 [−29.5%]
74.85
—
7.6%
6.8%
8.2%

FY 2018
2,170,403 [+6.3%]
209,587 [+5.6%]
219,976 [+3.5%]
147,512 [−13.4%]
105.66
—
11.1%
9.0%
9.7%
* Yen

Notes:
 Comprehensive income was ¥37,167 million during fiscal 2019, and ¥148,696 million during fiscal
2018.
 Equity in earnings of affiliates was ¥7,138 million during fiscal 2019, and ¥12,112 million during
fiscal 2018.
2. Financial position
At fiscal year end March
Total assets
Net assets
Net worth/total assets
Net worth per share*

2020
2,797,975
1,383,460
48.6%
979.692019
2,575,203
1,402,710
53.6%
989.51* Yen
Notes:
 Net worth consists of shareholders’ equity and accumulated other comprehensive income.
 Net worth as of March 31, 2020, was ¥1,359,314 million; as of March 31, 2019, ¥1,381,485 million.
3. Cash flows

Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Cash and cash equivalents at end of period

Asahi Kasei
Consolidated Results

FY 2019
124,460(318,156)
221,923
204,771

FY 2018
212,062(198,917)
17,388
180,520

May 12, 2020
1/18

II. Cash Dividends

Fiscal year
2018
2019
2020

Q1
—
—
—

Cash dividends per share*
Total
Q2
Q3
Q4
annual17.00 — 17.00 34.00
18.00 — 16.00 34.00————

Total annual
dividend
amount47,48447,188Dividends/
consolidated
net income
32.2%
45.4%
—

Dividends/
consolidated
net worth
3.6%
3.5%
* Yen

Forecast of cash dividends for the year ending March 31, 2021, remains indeterminate due to unavailabilityof a rational performance forecast at the current time.
III. Forecast for Fiscal 2020 (April 1, 2020 – March 31, 2021)
Forecast of financial results for the year ending March 31, 2021, remains indeterminate due to thedifficulty of making a reasonable assessment at the current time. The forecast will be promptly disclosed
when it becomes possible to do so.
IV. Other Information
1. Changes in significant subsidiaries which affected scope of consolidation during the period:
Addition of three new subsidiaries:
Cardiac Science Corporation
Veloxis Pharmaceuticals A/S
Asahi Kasei Pharma Denmark A/S
2. Changes in accounting policies, changes in accounting estimates, and retroactive restatement:

None

3. 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

Asahi Kasei
Consolidated Results

2020
1,393,932,032
6,440,327
1,388,564,157

2019
1,402,616,332
6,491,383
1,396,129,891

May 12, 2020
2/18

V. Summary of Non-Consolidated Results
1. Results for fiscal 2019 (April 1, 2019 – March 31, 2020)(1) Operating results (percent change from previous year in brackets)
FY 2019599,972 [−9.9%]
20,648 [−59.6%]
76,768 [−28.0%]
57,873 [−35.2%]
41.68—

Net sales
Operating income
Ordinary income
Net income
Net income per share*
Diluted net income per share*

FY 2018
665,839 [+7.1%]
51,072 [+15.6%]
106,679 [+13.3%]
89,279 [+5.9%]
63.95
—
* Yen

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

2020
1,919,199
744,19938.8%
536.36

2019
1,759,139
778,22344.2%
557.42* Yen

VI. Overview of Consolidated Results
1. Consolidated group results
Operating income increased in the Homes segment with firm performance of real estate operations
and in the Health Care segment with steady expansion of critical care operations, while the Material
segment was impacted by declining Chinese market growth, slowing automotive markets, lower
petrochemical market prices, and, beginning in the fourth quarter, the global economic
deterioration caused by the novel coronavirus. Consolidated net sales decreased by ¥18.8 billion
from a year ago to ¥2,151.6 billion, operating income decreased by ¥32.3 billion from a year ago to¥177.3 billion, and ordinary income decreased by ¥36.0 billion from a year ago to ¥184.0 billion.
Net income attributable to owners of the parent decreased by ¥43.6 billion to ¥103.9 billion with
impairment loss of noncurrent assets and business structure improvement expenses.
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.
MATERIAL
Sales decreased by ¥83.1 billion from a year ago to ¥1,093.1 billion, and operating income
decreased by ¥37.2 billion from a year ago to ¥92.4 billion.
Basic Materials: Operating income decreased with maintenance shutdown of the naphtha
cracker and plants for derivatives, suspension of naphtha cracker operation, lower prices offeedstock such as naphtha resulting in inventory valuation loss by the gross average method,
deteriorating terms of trade for various products, and unfavorable currency exchange rates for
Korean subsidiary Tongsuh Petrochemical Corp. Ltd.
Performance Products: Although consolidation of Sage Automotive Interiors, Inc., made apositive contribution, operating income decreased with lower operation rate, decreased shipments,
and deteriorated terms of trade for synthetic rubber, decreased shipments of fiber products andengineering plastics, and increased fixed costs in each business.
Specialty Solutions: Although shipments of Hipore™ Li-ion battery separator increased
mainly for automotive applications, operating income decreased with lower shipments of
Asahi Kasei
Consolidated Results

May 12, 2020
3/18

Celgard™ Li-ion battery separator as an effect of energy storage system (ESS) fires in Korea andthe appreciation of the yen.
HOMES
Sales increased by ¥44.7 billion from a year ago to ¥704.4 billion, and operating income increasedby ¥4.5 billion from a year ago to ¥72.7 billion.
Although deliveries of order-built homes decreased and fixed costs such as outsourcing
expenses increased in homes operations, operating income increased with higher average unit
prices due to increased deliveries of larger homes and with firm performance of the condominiums
business in real estate.
HEALTH CARE
Sales increased by ¥21.6 billion from a year ago to ¥337.8 billion, and operating income increasedby ¥1.7 billion from a year ago to ¥43.5 billion.
Operating income increased with firm performance in critical care operations and lower
fixed costs in pharmaceutical operations.
OTHERS
Sales decreased by ¥2.0 billion from a year ago to ¥16.3 billion, and operating income increased by¥0.8 billion from a year ago to ¥3.2 billion.

Asahi Kasei
Consolidated Results

May 12, 2020
4/18

VII. Consolidated Financial Statements
1. Balance sheets

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable–trade
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
Deferred tax assets
Other
Allowance for doubtful accounts
Subtotal
Total noncurrent assets
Total assets

Asahi Kasei
Consolidated Results

At end ofMarch 2019

At end ofMarch 2020

193,893
350,716
201,699
131,686
93,961
82,900(3,461)
1,051,393

207,957
330,999
216,463
160,064
101,313
92,153(1,519)1,107,430

547,422(294,536)
252,886
1,439,166(1,222,201)
216,966
63,88910,159(9,423)736
64,188160,631(137,930)
22,701
621,366

563,110(305,259)
257,851
1,466,958(1,243,780)
223,179
67,024
9,645(8,964)681
75,487
172,674(143,210)
29,464
653,686

319,898
210,080
529,978

469,535
215,947
685,482

296,330
19,993—27,50829,052(418)
372,465
1,523,810
2,575,203

244,581
7,951
20,46749,92928,883(435)
351,377
1,690,545
2,797,975

May 12, 2020
5/18

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 andequipment
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 andequipment
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 2019

At end ofMarch 2020

180,429
97,57977,00020,000164
113,221
24,97175,836
82
5,342
3,102

131,207275,671
139,000—
1,006
121,520
18,14573,623
78
4,043
3,738

2,251

2,640

81,877
681,853

71,863
842,531

20,000209,878
253
48,299289
2,929

60,000229,172
3,506
46,298
412
4,560

3,018

5,771

168,685
21,143
16,145490,639
1,172,493

174,365
21,613
26,287
571,985
1,414,515

103,389
79,7081,077,586(3,936)
1,256,747

103,389
79,641
1,125,738(5,990)1,302,777

101,971(40)
42,020(19,213)
124,738
21,225
1,402,710
2,575,203

67,027(241)
13,027(23,275)
56,53824,145
1,383,460
2,797,975

May 12, 2020
6/18

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
Total extraordinary income
Extraordinary loss
Loss on valuation of investment securities
Loss on disposal of noncurrent assets
Impairment losses
Loss on disaster
Loss on product compensation
Business structure improvement expenses
Total extraordinary loss
Income before income taxes
Income taxes—current
Income taxes—deferred
Total income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of the parent

Asahi Kasei
Consolidated Results

FY 2018
2,170,403
1,481,855
688,548
478,960
209,587

FY 2019
2,151,646
1,476,606
675,040
497,776
177,264

3,094
6,060
12,112
4,238
25,504

2,769
5,251
7,138
5,320
20,479

4,371
2,686
989
7,069
15,115219,976

4,016
2,328
1,642
5,750
13,735
184,008

11,580655
12,235

13,6794,268
17,948173
6,630
11,090——3,921
21,814
210,397
63,730(3,148)60,582
149,8152,303
147,512

1,953
9,668
21,949
2,437
5,173
4,840
46,022
155,934
54,173(3,967)50,206
105,728
1,797
103,931

May 12, 2020
7/18

(2) Statements of comprehensive income

Net income
Other comprehensive income
Net increase (decrease) in unrealized gain on othersecurities
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 2018
149,815

FY 2019
105,728(19,058)(34,895)(132)
12,4644,311(201)(26,115)(3,867)

1,297(3,482)(1,119)148,696(68,561)
37,167

146,3392,357

35,7301,437

May 12, 2020
8/18

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
Cancellation of treasury stock
Transfer from retained earnings to capital surplus
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
Changes during the fiscal year
Dividends from surplus
Net income attributable to owners of the parent
Transfer from retained earnings to capital surplus
Change of scope of consolidation
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
Cancellation 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
Changes during the fiscal year
Dividends from surplus
Net income attributable to owners of the parent
Purchase of treasury stock
Disposal of treasury stock
Change of scope of consolidation
Capital increase of consolidated subsidiaries
Total changes of items during the period
Balance at end of fiscal year

Asahi Kasei
Consolidated Results

FY 2018

FY 2019

103,389
103,389

103,389
103,389

79,44079,708

6
—
—
262
268
79,7080(7,878)
7,856
(46)
(67)
79,641

981,934

1,077,586(51,674)
147,512—(187)
95,652
1,077,586(48,723)
103,931(7,856)
801
48,152
1,125,738(3,930)(3,936)

(40)
34
—
(6)
(3,936)(10,016)
83
7,878(2,055)(5,990)1,160,833

1,256,747(51,674)
147,512
(40)
40
(187)
262
95,914
1,256,747(48,723)
103,931(10,016)
84
801
(46)
46,0301,302,777

May 12, 2020
9/18

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 other than 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
Changes during the fiscal year
Dividends from surplus
Net income attributable to owners of the parent
Purchase of treasury stock
Disposal of treasury stock
Change of scope of consolidation
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 2018

FY 2019

121,128

101,971(19,157)(19,157)
101,971(34,945)(34,945)
67,027

92

(40)

(132)
(132)
(40)

(201)
(201)
(241)

28,67642,02013,344
13,34442,020(28,993)(28,993)
13,027(23,343)(19,213)

4,130
4,130
(19,213)(4,062)(4,062)(23,275)

126,553

124,738(1,815)(1,815)
124,738(68,200)(68,200)
56,53817,827

21,225

3,398
3,398
21,2252,920
2,920
24,1451,305,214

1,402,710(51,674)
147,512
(40)
40
(187)
262
1,582
97,496
1,402,710(48,723)
103,931(10,016)
84
801
(46)
(65,280)(19,250)
1,383,460

May 12, 2020
10/18

4. Statements of cash flows

Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Impairment loss
Amortization of goodwill
Amortization of negative goodwill
Increase in provision for grant of shares
Increase in provision for periodic repairs
Increase in provision for product warranties
Increase in provision for removal cost of property, plant andequipment
Decrease in net defined benefit liability
Interest and dividend income
Interest expense
Equity in earnings of affiliates
Gain on sales of investment securities
Loss on valuation of investment securities
Gain on sale of property, plant and equipment
Loss on disposal of noncurrent assets
Decrease in notes and accounts receivable–trade
Increase in inventories
Decrease in notes and accounts payable–trade
Increase 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 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 for transfer of business
Payments of loans receivableCollection of loans receivable
Other, net
Net cash used in investing activities

Asahi Kasei
Consolidated Results

FY 2018

FY 2019

210,397
84,556
11,09019,490
(159)
170
1,823
364

155,934
96,016
21,94922,288
(79)
119
332
640

145

3,141

(4,287)(9,154)
4,371(12,112)(11,580)
173
(655)
6,630
3,942
(57,968)
(776)
5,859
5,266
15,328272,914
11,247(4,412)(67,687)
212,062(4,069)(8,021)
4,016(7,138)(13,679)
1,953(4,268)
9,668
16,919(51,950)(45,562)2,624(1,925)(20,688)
178,218
10,834(4,203)(60,388)
124,460(13,812)
7,880(114,718)
652(10,136)(2,624)
17,030(4,195)
13,343(138,354)
5,693(16,096)(10,820)
23,543(93,487)(175,759)(2,764)(5,092)
18,813(659)(198,917)(1,964)(23,170)
9,253
369(318,156)

May 12, 2020
11/18

Cash flows from financing activities
Net (decrease) increase in short-term loans payable
Increase in commercial paper
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of bonds payable
Redemption of bonds
Repayments of lease obligations
Purchase of treasury stock
Proceeds from disposal of treasury stock
Proceeds from share issuance to non-controlling interests
Cash dividends paid
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 financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from changes inscope of consolidation
Cash and cash equivalents at end of period

FY 2018

FY 2019(36,840)
57,00085,492(53,833)
20,000
—
(237)
(40)
40
—
(51,674)(1,155)172,02262,00045,816(17,586)
40,000(20,000)(1,276)(10,016)
84
849(48,723)(1,052)(1,148)—(217)
17,388543
31,077
148,596(194)
221,923(4,060)24,167
180,520846

85

180,520

204,771

VIII. Business combinations
Business combinations by purchase1) Cardiac Science Corporation
1. Outline of business combination(1) Name and nature of business of counterparty
Name of acquired company: Cardiac Science Corporation
Nature of business: Development, manufacture, and sale of AEDs
(2) Main reasons for the acquisition
To expand the AED product lineup and to obtain the sales network of Cardiac Science Corporation
with strength in commercial facilities, etc.
(3) Acquisition dateAugust 26, 2019(4) Statutory form of business combination
Stock purchase for cash as consideration(5) Name of company after transaction
Cardiac Science Corporation(6) Acquired voting right
Voting right before the acquisition: 0%
Voting right after the acquisition: 100%
Asahi Kasei
Consolidated Results

May 12, 2020
12/18

(7) Grounds for determining acquiring company
Stock purchase for cash as consideration by a consolidated subsidiary
2. The period of acquiree’s results included in the consolidated financial statements
From August 26, 2019, to March 31, 2020
3. Cost of acquisition and details
Stock purchase price: ¥29,063 million
Purchase price: ¥29,063 million
4. Major acquisition related costs
Advisory fees and others: ¥253 million
5. Amount of goodwill, measurement principle, amortization method, and useful lifea) Amount of goodwill: ¥17,635 millionb) Measurement principle:
Goodwill is measured as the excess of the purchase price over the fair value of identifiable assets
acquired and liabilities assumedc) Amortization method and useful life:
Straight-line method over 10 years
6. Details of assets acquired and liabilities assumed as of the acquisition dateCurrent assets¥2,870 million
Noncurrent assets¥13,860 million
Total assets¥16,730 million
Current liabilities¥2,848 million
Noncurrent liabilities ¥2,455 million
Total liabilities¥5,302 million
7. Amount of identifiable intangible assets other than goodwill, its details and major weighted average
useful lifea) Purchased price allocated to intangible assets and its major items
Customer-related assets¥10,636 million
Trademark rights¥2,028 million
Technology-related assets ¥494 millionb) Major weighted average useful life
Customer-related assets
14 years
Trademark rights
10 yearsTechnology-related assets 10 years
Total
13 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.

Asahi Kasei
Consolidated Results

May 12, 2020
13/18

2) Veloxis Pharmaceuticals A/S
1. Outline of business combination(1) Name and nature of business of counterparty
Name of acquired company: Veloxis Pharmaceuticals A/SNature of business: R&D, manufacture, and sale of pharmaceuticals and medical care related
products, and ancillary operations(2) Main reasons for the acquisition
The acquisition of Veloxis provides Asahi Kasei with a U.S. pharmaceutical business platform.
By maximizing the value of both the existing and acquired pharmaceutical businesses, Asahi Kasei
transforms into a Global Health Care Company in both pharmaceutical and medical device
businesses, which will remain committed to accelerating its growth in Health Care and contributing
to a sustainable increase in its corporate value. Asahi Kasei aims to achieve the following
synergies through the acquisition.
a) Enhance licensing activity to obtain new pharmaceuticals as growth drivers by leveraging
Asahi Kasei’s business platform in Japan and Asia together with Veloxis’ business platformin the U.S.
b) Discover and develop new pipeline opportunities that will meet high unmet medical need by
combining Asahi Kasei’s drug discovery capabilities and Veloxis’ ability to identify medical
needs in the U.S.
c) Accelerate the creation of new health care business by leveraging access to innovation andclinical practices in the U.S.
(3) Acquisition date
January 23, 2020
(4) Statutory form of business combination
Stock purchase for cash as consideration(5) Name of company after transaction
Veloxis Pharmaceuticals A/S(6) Acquired voting right
Voting right before the acquisition: 2.2%
Voting right after the acquisition: 100.0%(7) Grounds for determining acquiring company
Stock purchase for cash as consideration by a special purpose subsidiary
2. The period of acquiree’s results included in the consolidated financial statements
As the deemed acquisition is the end of the consolidated fiscal year, earnings of the acquiredcompany are not included.
3. Cost of acquisition and details
Stock purchase price: ¥147,220 million
Purchase price: ¥147,220 million
4. Major acquisition related costs
Advisory fees and others: ¥2,105 million
5. Amount of goodwill, measurement principle, amortization method, and useful lifea) Amount of goodwill: ¥149,100 million
Note that the above figure is based on provisional calculation, as purchase price allocation has
not been completed due to the short period between the acquisition date and the financial closing
date precluding the completion of the process to determine and estimate the price of identifiable
assets and liabilities as of the acquisition date.
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b) Measurement principle:
Goodwill is measured as the excess of the purchase price over the fair value of identifiable assets
acquired and liabilities assumedc) Amortization method and useful life:
Not determined at this time.
6. Details of assets acquired and liabilities assumed as of the acquisition dateCurrent assets¥11,012 million
Noncurrent assets¥5,630 million
Total assets¥16,641 million
Current liabilities¥20,100 million
Noncurrent liabilities ¥30 million
Total liabilities¥20,130 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.

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IX. Segment Information
1. Reporting segments(1) Fiscal 2018659,754

316,166

2,152,138

18,2652,170,403

5,066
1,181,283

207
659,96134
316,201

5,307
2,157,445

31,35949,62436,6662,207,069

129,565
1,492,277

68,161
523,692

41,825472,846

239,5512,488,815

2,411
84,873241,9622,573,688

Subtotal

1,176,217

HealthCare

Total

AssetsOthers1

Intersegment
Total
Operating income

Homes

Sales
Customers

Material

Reporting segments

Other items
Depreciation and
50,471
9,069
18,042
77,582
1,375
78,957amortization2
Amortization of goodwill－
10,70015
8,774
19,49019,490Investments in associates
accounted for using
55,424
11,671
226
67,321
19,42486,745equity method
Increase in property, plantand equipment, and86,64017,613
17,306
121,558
1,624
123,182
intangible assets
1 Plant and environmental engineering, research and analysis, employment agency/staffing operations, etc.
2 Excluding amortization of goodwill.

(2) Fiscal 2019704,423

337,788

2,135,356

16,2902,151,646

5,105
1,098,249

123
704,54611
337,799

5,240
2,140,595

36,64552,93541,8842,193,530

92,365
1,481,133

72,711
551,515

43,506
679,472

208,582
2,712,120

3,177
84,093211,758
2,796,213

Subtotal

1,093,145

HealthCare

Total

AssetsOthers1

Intersegment
Total
Operating income

Homes

Sales
Customers

Material

Reporting segments

Other items
Depreciation and
58,561
10,545
19,26888,374
1,472
89,845amortization2
Amortization of goodwill
12,072
60
10,15622,288—22,288Investments in associates
accounted for using
56,9029,543
1,500
67,945
18,38886,333equity method
Increase in property, plantand equipment, and104,466
18,20815,943
138,616
2,175
140,792
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 2018
2,157,445
49,624(36,666)
2,170,403

Fiscal 2019
2,140,595
52,935(41,884)
2,151,646

Operating income
Fiscal 2018
Fiscal 2019
Total of reporting segments
239,551
208,582
Operating income in “Others” category
2,411
3,177
Elimination of intersegment transactions
(133)
303
Corporate expenses, etc.*(32,241)(34,797)
Operating income on consolidated statements of income
209,587
177,264* Corporate expenses, etc. include corporate revenue, basic research expense, and groupmanagement expense, etc. which are not allocated to reporting segments.
AssetsFiscal 2018
Fiscal 2019
Total of reporting segments
2,488,815
2,712,120
Assets in “Others” category
84,87384,093Elimination of intersegment transactions(425,141)(589,354)
Corporate assets*
426,656
591,115
Total assets on consolidated balance sheets
2,575,203
2,797,975* Corporate assets include assets of Asahi Kasei Corp.—surplus operating funds (cash anddeposits), long-term investment capital (investment securities, etc.), and land, etc.

X. Geographic information
1. Fiscal 2018
(1) Net salesJapan
1,311,136

United States
227,993(2) Property, plant and equipment
Japan
United States
428,900
104,413

China
211,504

Other regions
419,770

Other regions
88,053

Total
621,366

China
188,553

Other regions
403,535

Other regions
70,403

Total
653,686

Total
2,170,403

2. Fiscal 2019(1) Net salesJapan
1,290,077

United States
269,481(2) Property, plant and equipment
Japan
United States
477,359
105,925

Asahi Kasei
Consolidated Results

Total
2,151,646

May 12, 2020
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XI. Additional information
Acquisition of stocks and assets of automotive fabrics business of Adient, plc
Sage Automotive Interiors, Inc., an Asahi Kasei subsidiary, concluded an agreement with Adient, plc on
March 5, 2020, to acquire Adient’s automotive fabrics business for $175 million. Completion of theacquisition is subject to obtaining regulatory clearance and other customary closing conditions.
(1) Objective of the acquisition of stocks and assets
Centered in the US, Sage develops, manufactures, and sells various fabric materials forautomotive interiors, and is one of the world’s leading suppliers of vehicle seat fabric with a firm
established presence among automotive OEMs and Tier-1 suppliers. To facilitate further growth,Sage had sought to expand its footprint in Europe, the largest market for automotive interior fabricand the source of innovative automotive trends.
By acquiring Adient’s automotive fabrics business, Sage will gain several operating sites aroundthe world centered in Europe. The business to be acquired has a strong reputation for design andquality among Europe’s major vehicle manufacturers, and is one of the leading suppliers in theEuropean market for automotive seat fabric.
The agreement for the acquisition was reached based on a recognition that Adient’s automotive
fabrics business with its strengths in marketing, manufacturing, and development centered in Europe
would complement Sage’s strengths and enable the combined business to create positive synergies
while further expanding in Europe.
By advancing its regional strategy and product strategy around the world to reinforce its position
as one of the leading suppliers of vehicle seat fabric and strengthen its relationships with automotive
OEMs in each region, Sage is expected to make a growing contribution to the Asahi Kasei Group’s
overall expansion of business in the automotive field.
(2) Name of counterparty to acquisition of stocks and assets
Adient, plc(3) Profile of the targeted businessWith this acquisition, assets related to the automotive fabric business and stocks comprising thebusiness will be purchased.
(4) Purchase price (reference value)$175 million
Note: The actual purchase price is subject to change due to the balance of cash and cash
equivalents, borrowings, etc., as well as increase/decrease of working capital at the time of closing.
(5) Method of raising funds
Cash on hand and borrowing

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