Annual Report 2009
ASAHI KASEI CORPORATION
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Contributing to human life and human livelihood
through constant innovation and advances
based in science and the human intellect.
CONTENTS
1 Consolidated Financial Highlights
2 To Our Shareholders
4 A Message from the President
10 At a Glance
12 Operating Segments
12 Chemicals
Asahi Kasei Chemicals Corp.
14 Homes
Asahi Kasei Homes Corp.
16 Health Care
Asahi Kasei Pharma Corp.
Asahi Kasei Kuraray Medical Co., Ltd./Asahi Kasei Medical Co., Ltd.
18 Fibers
Asahi Kasei Fibers Corp.
20 Electronics
Asahi Kasei Microdevices Corp.
Asahi Kasei E-materials Corp.
22 Construction Materials
Asahi Kasei Construction Materials Corp.
24 Services, Engineering and Others
25 Toward Sustainable Growth
33 Financial Section
66 Major Subsidiaries and Affi liates
68 Corporate Profi le
69 Investors Information
1
(%)
60
Consolidated Financial Highlights
Asahi Kasei Corporation and consolidated subsidiaries
Fiscal year beginning April 1
2008
2007
¥ billion
2006
2005
2004
US$ million*
2008
For the year
Net sales
Operating income
Net income
At year-end
Total assets
Net worth†
Per share
Net income
Net worth‡
Cash dividends
Key indexes
Operating margin
Payout ratio
ROA
ROE
Net worth to total assets‡
D/E ratio‡
¥ 1,553.1
¥ 1,696.8
¥ 1,623.8
¥ 1,498.6
¥ 1,377.7
$ 15,848
35.0
4.7
127.7
69.9
127.8
68.6
108.7
59.7
115.8
56.5
356
48
¥ 1,379.3
¥ 1,425.4
¥ 1,459.9
¥ 1,376.0
¥ 1,270.1
$ 14,075
603.8
666.2
645.7
594.2
511.7
6,162
¥
US$*
¥ 3.39
431.77
10.00
¥ 50.01
¥ 49.00
¥ 42.46
¥ 40.16
$ 0.03
476.39
13.00
461.50
12.00
424.34
10.00
365.43
8.00
4.41
0.10
2.3%
295.0%
0.3%
0.7%
43.8%
0.52
7.5%
26.0%
4.8%
10.7%
46.7%
0.32
7.9%
24.5%
4.8%
11.1%
44.2%
0.34
7.3%
23.6%
4.5%
10.8%
43.2%
0.40
8.4%
19.9%
4.5%
11.7%
40.3%
0.49
* U.S. dollar amounts in this annual report are translated from Japanese yen, for convenience only, at the rate of ¥98=US$1 as described in Note 1 of Notes to
Consolidated Financial Statements.
† Net assets less minority interest. Through the year beginning April 1, 2005, fi gures for shareholders’ equity shown.
‡ At fi scal year end.
Net Sales
(¥ billion)
Operating Income,
Operating Margin
(¥ billion)
1,696.8
1,623.8
1,553.1
2,000
1,500
1,000
500
0
127.8
127.7
7.9
7.5
150
120
90
60
30
0
(%)
15
12
9
6
3
0
35.0
2.3
Net Income, ROE
Total Assets,
Net Worth to Total Assets
(¥ billion)
(%)
(¥ billion)
68.6
69.9
11.1
10.7
80
60
40
20
0
20
15
10
5
1,500
1,459.9
1,425.4
1,379.3
1,000
500
44.2
46.7
43.8
40
20
0
4.7
0.7
0
0
FY
06
07
08
FY
06
07
08
FY
06
07
08
FY*
06
07
08
Operating income, left scale
Net income, left scale
Total assets, left scale
Operating margin, right scale
ROE, right scale
Net worth to total assets, right scale
* At year end.
2
Asahi Kasei Annual Report 2009
To Our Shareholders
Nobuo Yamaguchi, Chairman of the Board (left), and Shiro Hiruta, President (right)
“
Accelerating progress in the
Growth Action – 2010 mid-term
initiative to reinforce the stable
foundation of earnings
”
3
The global economy entered a severe economic downturn beginning in the second
half of the fi scal year as the fi nancial crisis triggered by the rise in subprime mortgage
defaults in the US spread into the real economy worldwide. Sharply impacted by the
global economic slump, the Japanese economy fell into an economic recession of
historic proportions with a broad decline in exports and a rapid appreciation of the
exchange value of the yen, which led to deteriorating corporate earnings, cuts in
private sector capital investment, and curtailment of production, resulting in reduced
employment and the emergence of related social problems.
The Asahi Kasei Group faced an extremely challenging operating climate, with high
feedstock and fuel costs continuing through the fi rst half of the fi scal year before
falling sharply in the second half, and with the sharp rise in the value of the yen, steep
declines in product demand, especially for petrochemicals and electronics products,
and inventory adjustments among customers necessitating cutbacks in production for
many products.
The Group’s consolidated fi nancial performance for the fi scal year thus saw a decline
in sales and a substantial decline in profi ts. The year-end dividend was set at ¥3 per
share for a total of ¥10 per share, ¥3 per share less than a year earlier.
Due to the effects of the global economic downturn, it has become highly unlikely that
we will be able to achieve our original performance targets in the Growth Action –
2010 mid-term initiative currently in progress. We therefore performed a strategic
review, including a reexamination of strategies in place and a revision of fi nancial
performance forecasts. This review reinforced our view that there was no need to
fundamentally change our management strategy focusing on the expansion of global
businesses and the enhancement of domestic businesses. Rather, we will further
accelerate our progress in advancing strategic actions to reinforce the stable
foundation of earnings as a base for greater fi nancial strength and the sustained
expansion and growth of operations.
August 2009
Nobuo Yamaguchi
Chairman of the Board
Shiro Hiruta
President
4
Asahi Kasei Annual Report 2009
A Message from the President
Transforming to a business portfolio for the future
Steadily implementing strategic
actions under Growth Action –
2010, advancing our business
portfolio transformation for the
future
We have performed a strategic review of Growth
Action – 2010 , our fi ve-year management initiative
for the fi scal years 2006 through 2010, given that the
global economic downturn which began in autumn
2008, triggered by the spread of subprime mortgage
defaults in the US, has dramatically altered the
operating environment when compared to our initial
assumptions.
Advancement of strategic management
initiatives
The development and growth of the Asahi Kasei
Group over the years has been driven by constant
realignments of the business portfolio, as we
transformed from a fi ber-centered operation to the
diversifi ed enterprise we are today – with fi elds of
Strategic
management
initiatives
Ishin-2000
(FY 1999–2002)
Ishin-05
(FY 2003–2005)
Selectivity and focus
Disposal of negative legacies
Selective diversification
Creation of cash flow
Management speed and autonomy*
* Transition to holding company configuration in Oct. 03.
Growth Action – 2010
(FY 2006–2010)
Business portfolio realignment for
expansion and growth
Strategic investment
5
Growth Action – 2010 concept
Expanding global
businesses
Chemical-based,
specialized function
Electronic materials
Medical devices
Electronic devices
High growth businesses
Enhancing domestic
businesses
Domestic businesses
(housing, construction materials,
pharmaceuticals, home-use products, etc.)
Polymers
(including processed products)
Monomers
(acrylonitrile, MMA, styrene, etc.)
Stable growth, stable earnings businesses
Long-term investments (¥ billion)
Investment from
FY 2003 to FY 2005
70–80/year
Strategic investment for
FY 2006 to FY 2010
Total for FY 2006 to FY 2010
400
800
Organic
M&A
Resources for
dividends
220
150
30
business spanning from chemicals to housing and
construction, from health care to electronics. Since
the 1990s we have achieved several notable structural
transformations. From fi scal 1999 to 2002 we
executed our Ishin-2000 initiative to bring greater
selectivity and focus to our business portfolio. This
was followed by our Ishin-05 initiative to strengthen
operations as a selectively diversifi ed enterprise group,
building greater fi nancial strength.
Based on this renewed strength, our Growth
Action – 2010 initiative is directed toward the
expansion of global businesses and the enhancement
of domestic businesses, advancing the transformation
to a growth-oriented portfolio, for greater corporate
value and brand strength. Our plan provided for
some ¥400 billion in strategic investment focused on
the fi elds of chemical-based/specialized function
products, electronics products, and health care
products. Together with ordinary investments, we
targeted total capital expenditure over the fi ve-year
term of some ¥800 billion, with fi scal 2010
performance targets including sales of ¥1,800 billion
and operating income of ¥150 billion.
Progress under Growth Action – 2010
As a result of progress under Growth Action – 2010 in
expanding global businesses and making proactive
strategic investments including M&A, results in fi scal
2007 exceeded our targets for the year. The impact of
the severe operating climate in fi scal 2008, however,
resulted in sales of ¥1,553.1 billion and operating
income of ¥35.0 billion, and with fi scal 2009 forecast
to remain challenging, there is little prospect of
achieving our initial targets for fi scal 2010.
There are three main factors behind this
deterioration in fi nancial performance. The fi rst is a
large decrease in sales and income from chemicals
and electronics operations. In chemicals, despite
progress in shifting to specialty products, we still have
a high ratio of volume products in cyclical markets.
The impact of petrochemical feedstock price
fl uctuations and the impact of falling demand both in
Japan and overseas were substantial. In electronics,
we have many products which are used in IT
equipment and home electronics, where markets tend
to be cyclical, and the launch of new products to
extend our market coverage has been slower than
planned.
The second factor is a gradual decrease in sales
and income from housing and construction materials
operations. Recognizing that Japan’s declining
population and ageing demographic mean that
construction demand growth will be meager at best,
we have achieved growth in housing-related operations
6
Asahi Kasei Annual Report 2009
Strategic review of Growth Action – 2010
Although the drastic change in the business
environment has resulted in a substantial
deterioration in the Asahi Kasei Group’s consolidated
fi nancial performance, we have determined that no
fundamental change in our Growth Action – 2010
strategic management initiative is necessary. Rather,
we will implement additional measures to accelerate
the expansion of high-growth businesses such as
electronics and health care, work to hold down
inventories and cut fi xed costs, and place greater
management emphasis on profi tability and
investment effi ciency, with accelerated streamlining of
volume-product business operations and
transformation of the business portfolio.
As, in light of operating performance in the
second half of fi scal 2008, it has become highly
unlikely that we will be able to achieve our original
fi nancial targets, the outlook for fi nancial
performance in fi scal 2010 has been revised to
¥1,350–1,500 billion of net sales and ¥60–80 billion
of operating income.
such as remodeling and real estate. Our portfolio
realignment has nevertheless been insuffi cient to
overcome shrinking markets in this fi eld.
The third factor is a deterioration of fi nancial
strength. The sharp rise in feedstock and fuel prices
followed by a drop in demand resulted in excessive
cash-out for working capital, and the strategic
investments we made under Growth Action – 2010
have yet to bring suffi cient results, particularly with
the recent economic decline. The result has been an
increase in borrowings and a rise in our D/E ratio.
Revision of fi nancial performance forecasts
(¥ billion)
FY 2007
FY 2008
FY 2009 forecast
(as of May 2009)
FY 2010 outlook
FY 2010 original target
Net sales
1,696.8
1,553.1
1,355.0
1,350.0–1,500.0
1,800.0
Operating income
Net income
127.7
69.9
35.0
4.7
41.0
15.0
60.0–80.0
—
150.0
80.0
Revision of investment plan
Original plan (a)
Results by FY08
Revised plan (b)
(Decision adopted, ¥ billion)
Decrease from original
plan (b-a)
Maintenance
Expansion
R&D
M&A
Subtotal
Renewing
petrochemical
complex
Dividends,
restructuring, etc.
Total
200
360
40
150
550
20
30
800
125
198.8
22.4
39.8
261
12
17
415
195
240
40
150
430
15
30
670
FY 09–10
¥255 billion
(5)
(120)
0
0
(120)
(5)
0
(130)
7
Four business sectors
Holding company
Asahi Kasei
Core operating companies
Asahi Kasei
Fibers
Asahi Kasei
Chemicals
Asahi Kasei
Construction
Materials
Asahi Kasei
Homes
Asahi Kasei
Microdevices
Asahi Kasei
E-materials
Asahi Kasei
Pharma
Asahi Kasei
Kuraray Medical
Asahi Kasei
Medical
Chemicals &
Fibers business sector
Homes & Construction
Materials business sector
Electronics business sector
Health Care business sector
Whereas strategic investment of ¥800 billion had
been planned for the fi ve-year period of Growth
Action – 2010, this will now be reduced by ¥130
billion to ¥670 billion. Investments for expansion of
volume-product businesses are put on hold for the
time being, and other investments are subject to
careful selectivity in consideration of the business
environment. By maintaining our D/E ratio at 0.5 or
less, we will retain the ability to raise capital under
competitive terms.
Accelerating portfolio realignment and new
businesses development
To accelerate our business portfolio realignment with
an overall strengthening of the Asahi Kasei Group,
holding company Executive Offi cers were installed
with purview corresponding to each of our four main
business sectors: Chemicals & Fibers, Homes &
Construction Materials, Electronics, and Health Care.
In their capacity as Executive Offi cers of the holding
company, they work to advance strategic and effective
allocation of resources to each business sector from
the company-wide perspective, including investment,
human resources, and R&D. In addition, a group-
wide system was established for new business
development to accelerate growth with the
installation of offi cers responsible for technology and
business development in each key fi eld, and enhanced
business development capability at the holding
company.
This portfolio realignment has also entailed the
downsizing and withdrawal of underperforming
businesses. At the end of September 2009, we will
cease in-house production of polyester fi lament and
withdraw from monofi lament operations. At the end
of December 2009, we will withdraw from PTT fi ber
operations by dissolving our joint-venture for PTT
fi ber with Teijin Fibers Ltd. At the end of September
2009 we will withdraw from coenzyme Q10
operations, and at the end of March 2010 will close
our construction materials plant in Shiraoi, Hokkaido.
Even as further such restructuring will be
implemented as necessary, we will continue to
advance the creation and development of new
businesses to effect a transformation of our business
portfolio for healthy growth.
Actions by business sector
Chemicals & Fibers
With operating losses in fi scal 2008 and global
oversupply forecast to continue, we are focused on
heightening profi tability rather than expanding the
scale of operations. In chemicals, the effi ciency of
petrochemicals operations centered on the naphtha
cracker in Mizushima will be raised, and the ratio of
sales in specialty products will be increased through
accelerated development of overseas business for
water processing systems. In fi bers, creation of new
businesses will be accelerated through advancement
of research and development at the new technology
and R&D center in Moriyama.
Homes & Construction Materials
Under declining market conditions, stable earnings
will be secured through expansion of peripheral
businesses. In homes, new products featuring a new
framing system and environmental compatibility will
be launched to obtain increased orders for high-end
urban homes, and housing-related businesses such as
remodeling and real estate will be expanded. In
construction materials, we will advance market
development for Neoma™ foam high-performance
insulation panels and expand other unique businesses
such as piling systems for small-scale construction.
8
Asahi Kasei Annual Report 2009
Global business operations
Taiwan
Korea
Formosa Asahi Spandex Co., Ltd.
Asahi Kasei EMD Taiwan Corp.
Asahi Kasei Wah Lee Hi-Tech Corp.
Asahi-Schwebel (Taiwan) Co., Ltd.
Hong Kong
Asahi Kasei Plastics (Hong Kong) Co., Ltd.
Asahi Chemical (HK) Ltd.
Thailand
Asahikasei Plastics (Thailand) Co., Ltd.
Thai Asahi Kasei Spandex Co., Ltd.
Singapore
Asahi Kasei Plastics Singapore Pte. Ltd.
Polyxylenol Singapore Pte. Ltd.
Indonesia
PT Nippisun Indonesia
China
Tong Suh Petrochemical Corp., Ltd.
Asahi Kasei Chemicals Korea Co., Ltd.
Asahi Kasei EMD Korea Corp.
America
Asahi Kasei America, Inc.
Asahikasei Plastics (America) Inc.
Asahi Kasei Plastics North America, Inc.
Sun Plastech Inc.
Asahi Kasei TechniKrom, Inc.
Asahi Kasei Medical America Inc.
Asahi Kasei Spandex America, Inc.
AKM Semiconductor, Inc.
Europe
Asahi Kasei Plastics Europe SA/NV
Asahi Kasei Medical Europe GmbH
Asahi Kasei Planova Europe SA
Asahi Pharma Spain, SL
Asahi Kasei Spandex Europe GmbH
Asahi Kasei Fibers Italy SRL
Asahi Kasei Fibers Deutschland GmbH
Asahi Photoproducts (Europe) SA/NV
Asahi Photoproducts (UK) Ltd.
Zhangjiagang
Nantong
Asahi-DuPont POM (Zhangjiagang)
Co., Ltd.
Asahi Kasei Performance
Chemicals Corp.
Suzhou
Shanghai
Asahikasei (Suzhou) Plastics
Compound Co., Ltd.
Asahi Kasei Electronics
Materials (Suzhou)
Co., Ltd.
Hangzhou
Asahi Kasei Business Management
(Shanghai) Co., Ltd.
Asahikasei Plastics (Shanghai) Co., Ltd.
Asahi Kasei Microza (Hangzhou) Co., Ltd.
Asahi Kasei Medical (Hangzhou) Co., Ltd.
Hangzhou Asahikasei Spandex Co., Ltd.
Hangzhou Asahikasei Textiles Co., Ltd.
Holding Company
Chemicals segment
Health Care segment
Fibers segment
Electronics segment
Japan
Hozumi
Shiga
Moriyama
Gunma
Saitama
Ageo
Osaka
head office
Ono
Mizushima
Iwakuni
Chikushino
Oita
Nobeoka
Hyuga
Mibu
Tomobe
Sakai
Tokyo head office
Chiba
Tateyama
Kawasaki
Ohito
Wakayama
Fuji
Nagoya
Suzuka
Electronics
We will accelerate business expansion from the
perspective of energy and resource conservation,
adding new products in line with changing market
trends. In electronic devices, the product lineup will
be complimented with the power management
semiconductor businesses acquired from Toko Inc. in
April 2009. Development of products combining
magnetic sensors and LSIs is advancing, and
adoption of one such product, the electric compass,
is expanding in cell phone applications. In electronic
materials, Asahi Kasei E-materials began operation as
a new core operating company in April 2009 to
heighten management speed and effi ciency.
Production capacity for Hipore™ Li-ion rechargeable
battery separators is being raised with an expansion
of the plant in Moriyama and the construction of a
new plant in Hyuga. To prepare for full-scale
adoption of Li-ion batteries in automotive
applications, R&D is being reinforced and an
expansion of the business, including through M&A,
is being studied.
Health Care
We are advancing the expansion and globalization of
business in line with heightening health-related needs.
In pharmaceuticals, the fi rst priority is on ramping up
sales and obtaining profi tability from the
Recomodulin™ intravenous anticoagulant approved
in Japan in fi scal 2008. By enhancing the sales
network with an increased number of medical
representatives, we will be able to obtain solid
earnings from Recomodulin™ from fi scal year 2011
onward. Having acquired from Roche Diagnostics
GmbH all intellectual property rights related to
naftopidil, an agent for the treatment of benign
prostatic hyperplasia (BPH) marketed as Flivas™, we
will expand operations to include production as well
as sale. Development of the two compounds we have
in Phase Ш clinical trials is advancing smoothly.
In medical devices and related operations, we
concluded alliance with NxStage Medical, Inc. of the
US to secure a base in Germany for the assembly of
Asahi Kasei Kuraray Medical’s artifi cial kidneys.
Following our assembly plant in China, this will serve
9
Operating income breakdown in FY 2015
Chemicals & Fibers
Electronics
Chemicals & Fibers
Electronics
Health Care
Homes &
Construction Materials
Homes &
Construction Materials
Health Care
FY 2005
Vision for FY 2015
as our second overseas base for artifi cial kidney
assembly. For the further global expansion of our
dialysis products business, we are also considering the
construction of new assembly lines in other overseas
locations in line with market trends. Having acquired
full ownership of TechniKrom’s bioprocess business,
Asahi Kasei Medical will expand operations in
products for biopharmaceutical production by
building on the combination of its separation media
technology with TechniKrom’s bioprocess equipment
and systems technology. We have also entered into
the fi eld of advanced medical devices through the
acquisition of exclusive rights for the sale in Japan of
Medtronic Japan’s Reveal™ DX insertable cardiac
monitor. This was followed by the start of clinical trials
for the Evaheart™ ventricular assist system in the US in
cooperation with Misuzu & Sun Medical Holdings.
Return to shareholders
While we had successively increased dividends along
Net income and dividends
(¥ billion)
100
80
60
40
20
0
FY
(¥ per share)
14
13
12
68.6
69.9
10
10
10
59.7
56.5
8
6
27.7
03
04
05
06
07
15.0
4.7
08
09
(forecast)
12
10
8
6
2
0
Net income, left scale
Cash dividends per share, right scale
with growth in consolidated fi nancial performance,
dividends for fi scal 2008 were reduced by ¥3 per share
from a year earlier to ¥10 due to the substantial
deterioration in operating results. Although the
challenging operating climate is forecast to continue
in fi scal 2009, we intend to maintain annual dividends
at ¥10 per share. Over the longer term, we will
heighten return to shareholders by achieving growth
in consolidated earnings.
Vision for fi scal 2015
In fi scal 2005, the Chemicals & Fibers business sector
earned around 40–45% of the Asahi Kasei Group’s
total operating income, and in fi scal 2007 this rose to
around 50–55%. By steadily implementing strategic
actions under Growth Action – 2010 and advancing
our business portfolio transformation for the future,
growth will be concentrated in the Electronics and
Health Care business sectors, resulting in a balanced
structure where roughly a quarter of operating
income is earned in each of our four main business
sectors by fi scal 2015. At the same time we will
advance preparations for the next phase of growth as
a fast and lean enterprise coping effectively with
challenges related to resources and the environment.
Core Operating Company Directors
(As of April 1, 2009)
Fiscal 2008 Composition of
Net Sales, Operating Income (Loss)
10
Asahi Kasei Annual Report 2009
At a Glance
Operating Segments,
Core Operating Companies
Chemicals
Asahi Kasei Chemicals Corp.
Homes
Asahi Kasei Homes Corp.
Health Care
Asahi Kasei Pharma Corp.
Asahi Kasei Kuraray Medical
Co., Ltd.
Asahi Kasei Medical Co., Ltd.
Asahi Kasei Chemicals Corp.
Masaki Sakamoto
Keiji Kamei
Masami Fujimori
Koji Fujiwara
Kyosuke Komiya
Hajime Nagahara
Tadashi Akaishi
Yuji Kobayashi
Heiichiro Obanawa
President & Representative Director
Presidential Executive Offi cer
Director, Vice-Presidential Executive Offi cer
Director, Primary Executive Offi cer
Director, Primary Executive Offi cer
Director, Senior Executive Offi cer
Director, Senior Executive Offi cer
Director, Senior Executive Offi cer
Director, Senior Executive Offi cer
Director, Senior Executive Offi cer
Asahi Kasei Homes Corp.
Shingo Hatano
Masahito Hirai
Eisuke Ikeda
Morio Watanabe
Hiroshi Kobayashi
President & Representative Director
Presidential Executive Offi cer
Director, Primary Executive Offi cer
Director, Primary Executive Offi cer
Director, Senior Executive Offi cer
Director
Asahi Kasei Pharma Corp.
Tsutomu Inada
Akio Kobayashi
Toshio Asano
Yasuyuki Yoshida
President & Representative Director
Presidential Executive Offi cer
Director, Senior Executive Offi cer
Director, Senior Executive Offi cer
Director
Asahi Kasei Kuraray Medical Co., Ltd.
Yasuyuki Yoshida
President & Representative Director
Presidential Executive Offi cer
Director, Vice-Presidential Executive Offi cer
Director, Primary Executive Offi cer
Director, Primary Executive Offi cer
Director
Hideo Horii
Naoyuki Ohya
Takao Kiyota
Tsutomu Inada
Asahi Kasei Medical Co., Ltd.
Yasuyuki Yoshida
President & Representative Director
Presidential Executive Offi cer
Director, Primary Executive Offi cer
Director, Primary Executive Offi cer
Director
Fibers
Asahi Kasei Fibers Corp.
Naoyuki Ohya
Takao Kiyota
Tsutomu Inada
Asahi Kasei Fibers Corp.
Hidefumi Takai
Fujio Nishimura
Masaki Sakamoto
President & Representative Director
Presidential Executive Offi cer
Director, Senior Executive Offi cer
Director
Asahi Kasei Microdevices Corp.
Makoto Konosu
Hideki Kobori
Masafumi Nakao
President & Representative Director
Presidential Executive Offi cer
Director, Primary Executive Offi cer
Director, Executive Offi cer
Asahi Kasei E-materials Corp.
Katsuhiko Yamazoe
Koji Yamada
Tetsuro Ota
Makoto Konosu
President & Representative Director
Presidential Executive Offi cer
Director, Executive Offi cer
Director, Executive Offi cer
Director
Asahi Kasei Construction Materials Corp.
Hiroshi Kobayashi
Fumio Nakagawa
Masafumi Funaki
Shingo Hatano
President & Representative Director
Presidential Executive Offi cer
Director, Senior Executive Offi cer
Director, Senior Executive Offi cer
Director
Electronics
Asahi Kasei Microdevices Corp.
Asahi Kasei E-materials Corp.
Construction Materials
Asahi Kasei Construction
Materials Corp.
Services, Engineering
and Others
Note: The former Pharma and Electronics Materials & Devices
segments were renamed Health Care and Electronics,
respectively, on April 1, 2009.
Net Sales 48% ¥741.5 billion
¥741.5 billion
¥741.5 billion
Operating loss ¥0.4 billion
¥0.4 billion
¥0.4 billion
Net Sales 26% ¥409.9 billion
Operating income ¥21.9 billion
Net Sales 8% ¥119.6 billion
Operating income ¥12.0 billion
Net Sales 7% ¥102.2 billion
Operating loss ¥0.9 billion
Net Sales 6% ¥91.7 billion
Operating income ¥3.3 billion
Net Sales 4% ¥60.9 billion
Operating income ¥1.7 billion
Net Sales 2% ¥27.3 billion
Operating income ¥5.6 billion
11
Main Businesses
Major Consolidated Subsidiaries
Organic and inorganic industrial chemicals, synthetic
resin, synthetic rubber, coating materials, latex,
pharmaceutical and food additives, explosives,
photopolymers and plate-making systems,
separation and ion-exchange membranes, systems,
and equipment.
Sanyo Petrochemical Co., Ltd.
Asahi Kasei Pax Corp.
Asahi Kasei Home Products Corp.
Japan Elastomer Co., Ltd.
Asahi Kasei Technoplus Co., Ltd.
Tong Suh Petrochemical Corp., Ltd.
Asahi Kasei Plastics Singapore Pte. Ltd.
Asahikasei Plastics (America) Inc.
Asahi Kasei Performance Chemicals Corp.
Asahi Kasei Microza (Hangzhou) Co., Ltd.
Hebel Haus™ houses, Hebel Maison™ apartments,
condominiums, remodeling, real estate, residential
land development, fi nancial services.
Asahi Kasei Jyuko Co., Ltd.
Asahi Kasei Mortgage Corp.
Asahi Kasei Reform Co., Ltd.
Asahi Kasei Real Estate, Ltd.
Pharmaceuticals, pharmaceutical intermediates,
diagnostic reagents, hemodialyzers and other
medical devices.
Asahikasei Aime Co., Ltd.
Asahi Kasei Medical (Hangzhou) Co., Ltd.
Roica™ elastic polyurethane fi lament (spandex),
Eltas™ spunbond, Lamous™ artifi cial suede,
Bemliese™ cupro cellulosic nonwoven, Bemberg™
cupro cellulosic fi ber, polyester fi lament, Solotex™
polytrimethylene terephthalate (PTT) fi ber.
Kyokuyo Sangyo Co., Ltd.
Thai Asahi Kasei Spandex Co., Ltd.
Hangzhou Asahikasei Spandex Co., Ltd.
Asahi Kasei Spandex Europe GmbH
Asahi Kasei Spandex America, Inc.
Asahi Chemical (HK) Ltd.
Hangzhou Asahikasei Textiles Co., Ltd.
Pimel™ photosensitive polyimide precursor,
Sunfort™ dry fi lm photoresist, Hall elements, LSIs,
glass fabric for printed circuit boards, photomask
pellicles.
Asahi Kasei Electronics Materials
(Suzhou) Co., Ltd.
Asahi-Schwebel (Taiwan) Co., Ltd.
Hebel™ autoclaved aerated concrete, construction
piles, Neoma™ foam and other thermal insulation.
Asahi Kasei Foundation Systems Corp.
Plant, equipment, process engineering, employment
agency, think tank
Asahi Research Center Co., Ltd.
Asahi Finance Co., Ltd.
Asahi Kasei Engineering Co., Ltd.
Asahi Kasei Amidas Co., Ltd.
12
Asahi Kasei Annual Report 2009
Operating Segments
With Creating the Future with Chemistry as our basic ideal, we will
contribute to environmental protection and human health through
our diverse business operations, advancing as a vigorous, high-
earnings company.
Masaki Sakamoto
President, Asahi Kasei Chemicals
Chemicals
MAJOR PRODUCTS
Chemicals and derivative products
Ammonia, nitric acid, caustic soda,
acrylonitrile (AN), styrene, adipic acid,
methyl methacrylate (MMA),
Suntec™ polyethylene (PE),
synthetic rubber and elastomer.
Polymer products
Stylac™-AS styrene-acrylonitrile,
Stylac™-ABS acrylonitrile-butadiene-
styrene, Tenac™ polyacetal, Xyron™
modifi ed polyphenylene ether (mPPE),
Leona™ nylon 66 polymer and
fi lament*, Saran Wrap™ cling fi lm,
Ziploc™ storage bags, plastic fi lm,
sheet, and foam.
Specialty products
Coating materials, styrene-butadiene
latex, Ceolus™ microcrystalline
cellulose, explosives, APR™
photosensitive resin**,
AFP™ photosensitive plates**,
printing plate-making systems**,
Microza™ UF and MF membranes and
systems, Hipore™ microporous
membrane**, ion-exchange
membranes and electrolysis systems.
* Leona™ fi lament transferred to Fibers operating
segment on April 1, 2009.
** Products transferred to Electronics operating
segment on April 1, 2009.
Growth Action – 2010
Each business is classifi ed either as a strategic expansion business, with
management resources focused on achieving growth and high earnings, or as a
stable growth, stable earnings business, with efforts focused on strengthening
and enhancement to heighten profi tability.
Strategic expansion businesses, characterized by the potential to attain greater
earnings and stronger market position through expansion of scale, include
AN, MMA, and synthetic rubber and elastomers. Those characterized by the
potential to attain growth through linkage with growing market segments,
building on established strengths, and extension into peripheral fi elds, include
water treatment systems and ion-exchange membrane systems.
Stable earnings businesses, characterized by the potential to attain greater
added value and stable earnings growth through a leading position in growing
market segments, include polymers/compounds and performance chemicals.
Those characterized by the potential to maintain stable earnings through a
strengthened operational base and structure include petrochemicals, basic
chemicals, and ethylene center derivatives with the exception of those marked
for strategic expansion.
Fiscal 2008 Review
Sales decreased by ¥137.7 billion (15.7%) from a year ago to ¥741.5 billion and an
operating loss of ¥0.4 billion resulted with a ¥65.6 billion decline in profi tability.
In volume products operations, both chemicals and derivative products and
polymer products, profi tability fell with the sharp impact of high feedstock prices in
the fi rst half of the fi scal year and with a steep decline in shipment volumes due to
deteriorating market conditions both in Japan and worldwide, the sharp impact of the
appreciation of the yen, and the impact of devaluation of inventories in the second
half of the fi scal year.
Although specialty products operations performed well during the fi rst half of the
fi scal year, shipments of Hipore™ Li-ion rechargeable battery separator membranes
and of ion-exchange membranes for chlor-alkali electrolysis decreased with the
sudden deterioration of market conditions in the second half of the fi scal year, and
operating income decreased.
Operating Income (Loss),
Operating Margin
(¥ billion)
7.0
56.6
7.4
65.2
(%)
9.0
6.0
3.0
(0.4)
0
(0.06)
(2.0)
06*
07
08
80
60
40
20
0
(100)
FY
Net Sales
(¥ billion)
1,000
879.2
800
805.2
741.5
600
400
200
0
FY
06*
07
08
* Including former Life & Living segment.
Fiscal 2009 Outlook
The severe operating climate which began in the second half of fi scal 2008 is expected
to continue, with weak product demand and a strong yen. For volume products, we
forecast falling prices for naphtha and other feedstocks, some extent of recovery in
sales volumes, and lower inventory valuation losses. In specialty products operations,
we forecast falling feedstock prices and recovering sales volumes.
R&D and Capital Expenditure
R&D expenditure
R&D expenditure as
% of net sales
Capital expenditure
(¥ billion except %)
Depreciation and
amortization
Fiscal 2008
Fiscal 2007
19.2
18.5
2.6%
2.1%
45.7
34.3
36.7
37.1
Major Capital Investments
Completed in fi scal
2008
Capacity expansion of solution-polymerized styrene-butadiene rubber
production facility
Under construction in
fi scal 2008
New boiler and power generation turbine using SDA pitch
New AN and MMA plants in Thailand
Capacity expansion for Hipore™ Li-ion rechargeable battery separators
New plant for Hipore™ Li-ion rechargeable battery separators
R&D
Technology development in line with the basic ideal of Creating the Future with
Chemistry is directed toward the fi elds of petrochemicals, electronics and optics, and
environment and energy.
The focus in petrochemicals and monomers is on advances and innovations in
catalysts and chemical processes for diversifi cation of feedstocks, as with the world’s
fi rst propane process for acrylonitrile (AN) which was recently developed. In
electronics and optics, a wide range of functional sheets and fi lms are nearing
commercialization. Development in the fi eld of energy will be expanded from the
base of Hipore™ Li-ion rechargeable battery separator technology to various materials
for distributed energy systems. In ecology, development of water treatment materials
technology is advancing for expansion into promising new markets. In polymers/
compounds and performance chemicals, the focus is on obtaining higher added value.
13
HIGHLIGHTS
Wastewater recycling plant in
Suzhou, China
In February 2009, Asahi Kasei
Chemicals began operation of a
plant to provide wastewater
recycling service to Sony Chemicals
(Suzhou) Co., Ltd. in a BOO (build-
own-operate) project. In addition to
design and construction, Asahi
Kasei Chemicals owns and operates
the plant, treating recovered
wastewater and supplying industrial
water to the client. This project
marks a milestone for further
expansion of the water treatment
business of Asahi Kasei Chemicals,
enabling full utilization of the
company’s superior membrane
performance, experience, and
operating know-how, extending the
business model beyond the sale of
Microza™ fi ltration membrane
modules and systems.
Sony Chemicals (Suzhou), site of the fi rst
BOO project for wastewater recycling
Expansion of production
capacity for Hipore™
Hipore™ Li-ion rechargeable
battery separators used in notebook
PCs and cell phones hold a global
market share of over 50%. To meet
strong demand growth, Asahi Kasei
Chemicals is expanding production
capacity at its existing plant in
Moriyama, Shiga, Japan, and at the
same time building a new plant in
Hyuga, Miyazaki, Japan.
Market development is also
being advanced, particularly in the
fi eld of batteries for hybrid electric
vehicles and all-electric vehicles, an
example of chemical technology
helping to contribute to ecological
compatibility.
Hipore™ Li-ion rechargeable battery separator
14
Asahi Kasei Annual Report 2009
Marketing capability is strengthened through a reconfi guration of
the sales organization, and the Long Life Home product strategy for
maintaining and enhancing customer satisfaction over the long term
is advanced to obtain growth in new orders. Expansion of housing-
related businesses will be built on the established base of Hebel
Haus™ homes sold to date.
Shingo Hatano
President, Asahi Kasei Homes
Homes
MAJOR PRODUCTS
Hebel Haus™ houses,
Hebel Maison™ apartments,
condominiums, remodeling,
real estate, residential land
development, home fi nancing.
Sales Trends
(Asahi Kasei Homes non-consolidated)
354.1
1.1
33.6
347.5
1.0
28.9
319.4
317.6
332.0
1.1
20.1
310.7
322.5
1.0
24.5
323.0
1.5
35.5
338.7
1.5
29.9
307.3
297.1
286.0
(¥ billion)
400
300
200
100
0
FY
04
05
06
07
08
09
Forecast
Others
Pre-built homes
Order-built homes
Orders Received
(¥ billion)
400
300
301.8
313.3
303.4
306.1
309.0
291.1
200
100
0
FY
04
05
06
07
08
09
Forecast
Growth Action – 2010
Marketing of order-built homes is focused on demand for
home rebuilding in major urban areas, as a high-earnings
operational structure is reinforced and expanded.
Specifi c actions include:
• Successive development of new products tailored to specifi c market
characteristics in different regions.
• Advancement of cost reductions through shared procurement and logistical
networks with other home builders.
• Productivity enhancements through reduced home construction time.
• Advanced development of technology to enhance the Long Life Home
product strategy.
Long-term customer relationships are maintained through the
provision of remodeling, real estate, and fi nancial services.
Specifi c actions include:
• Expansion of real estate operations in brokerage of used Hebel Haus™ homes.
• Expansion of remodeling operations through high value-added services for
long-term maintenance and enhancement of home asset value.
• Establishment of stable earnings in home fi nancing operations with mortgage
securitization and development of homeowners insurance business.
• Development of new businesses utilizing proprietary technology, know-how,
and the asset value of Hebel Haus™ homes.
Fiscal 2008 Review
Sales increased by ¥23.7 billion (6.1%) from a year ago to ¥409.9 billion and operating
income increased by ¥0.5 billion (2.3%) to ¥21.9 billion.
Although deliveries of Hebel Haus™ unit homes recovered from the decline a year
ago due to falsifi cation of the performance of certain components as came to light in
late October 2007, and there were deliveries of condominium units with the
completion of a large construction project, operating income in order-built and pre-
built homes operations decreased with the impact of high costs for materials and a
devaluation of real estate held as inventory for sale.
Although real estate operations struggled, operating income from housing-related
operations increased with remodeling and fi nancing operations performing well.
New orders for order-built homes decreased by ¥15.0 billion from a year ago to
¥291.1 billion as an effect of a sharp decline in market conditions beginning in the
second half of the fi scal year.
Net Sales
(¥ billion)
500
400
405.7
409.9
386.2
300
200
100
0
FY
06
07
08
Operating Income,
Operating Margin
(¥ billion)
30
20
10
0
FY
27.5
21.4
21.9
6.8
5.5
5.3
06
07
08
(%)
9.0
6.0
3.0
0
15
HIGHLIGHTS
New Hebel Haus™ structure
The Fine Hebel Haus™ series of
home products featuring high-
endurance thermal insulation and
airtight structure was launched in
September 2008, extending
performance from the perspective
of long-term home durability. By
separating the insulation layer and
airtight barrier layer from interior
walls and ceilings, the new product
line enables future remodeling with
no loss of insulation performance.
This new structure marks a notable
advance in the Long Life Home
concept for maintenance of high
asset value over the long term.
In May 2009 it was adopted for all
Hebel Haus™ products, supplanting
the Fine series.
Fiscal 2009 Outlook
Deliveries of large condominiums will increase and housing-related operations will
expand. Deliveries of unit homes will decline due to decreased orders received.
R&D and Capital Expenditure
R&D expenditure
R&D expenditure as
% of net sales
Capital expenditure
(¥ billion except %)
Depreciation and
amortization
Fine Hebel Haus™
Fiscal 2008
Fiscal 2007
2.5
2.1
0.6%
0.5%
7.0
7.5
3.4
2.7
R&D
R&D is focused on enhancing core technologies. Shelter technology brings greater
safety and security through earthquake resistance, seismic damping, and fi re
resistance; greater long-term usability through physical durability/evaluation,
systematic maintenance, and ease of remodeling; enhanced livability through thermal
insulation, air circulation, and sound barrier; and enhanced ecology through energy
conservation and reduced CO2 emissions. Lifestyle technology brings greater
comfort, convenience, and satisfaction, while evaluation/simulation technology is
being enhanced to enable buyers to more intuitively appreciate the real-world effects
of variations and modifi cations to a home design so that it is optimized to taste before
building. Additional research is focused on the physiological and psychological
aspects of comfort, and how these can be utilized through technological development
to achieve greater energy effi ciency and environmental compatibility in homes
optimized for health and comfort.
In October 2007, the main functions for housing R&D were transferred to a new
center in Fuji, the central location of R&D facilities for the Asahi Kasei Group. The
location of the new R&D center in Fuji affords a larger scale and wider range of
facilities, with housing R&D further advanced by the synergy of interaction with other
Asahi Kasei research facilities at the same site.
Hebel Haus™ homes featuring
electric power generation
A promotion campaign for Hebel
Haus™ homes featuring electric
power generation with leading-edge
performance began in January
2009. The homes are available with
a solar panel array combined with
either an “Ene Farm” residential fuel
cell or the geothermal heating/
cooling system developed by Asahi
Kasei Homes. The company will
continue to advance the
development of eco-effi cient homes
which facilitate energy conservation
and reduced CO2 emissions while
maintaining convenience and
comfort.
Hebel Haus™ with power generation
16
Asahi Kasei Annual Report 2009
The pharmaceutical
business is advancing as a
specialized, R&D-centered
operation, expanding
earnings through the launch
of new drugs and reinforcing
the operational foundation
through the steady
advancement of R&D.
Tsutomu Inada
President, Asahi Kasei Pharma
Health Care
MAJOR PRODUCTS
Pharmaceutical-related
Elcitonin™, Bredinin™, Flivas™,
Toledomin™, Recomodulin™, and
other pharmaceuticals, diagnostic
enzymes and reagents.
Medical device-related
APS™ artifi cial kidneys, Cellsorba™
leukocyte adsorption columns,
Planova™ virus removal fi lters,
Sepacell™ leukocyte reduction fi lters.
With the expansion of medical
devices-related operations
identifi ed as a strategic
objective for the group, the
global development of business
will be advanced through
proactive capital investment
and R&D for innovative
therapeutic and medical-related
devices and systems.
Yasuyuki Yoshida
President, Asahi Kasei Kuraray Medical
& Asahi Kasei Medical
(formerly Pharma segment)
Growth Action – 2010
Pharmaceutical-related:
Advancement as a specialized, R&D-centered operation, with management
resources focused on selected therapeutic fi elds. Expansion of operations
through structural reform and slim, robust management, building on an
established presence in selected therapeutic fi elds in the Japanese market. In
diagnostics, investment of management resources is focused on products with
strong growth prospects.
Medical device-related:
Based on established leadership in devices for extracorporeal circulation, the
business is being transformed for development as a comprehensive leader in
blood-related healthcare systems, spanning from disease treatment to
preventive medicine and blood-based risk-factor analysis/diagnosis. Over the
longer term, healthcare systems will be developed in regenerative medicine,
the nervous system, and other fi elds.
Fiscal 2008 Review
Sales increased by ¥8.4 billion (7.5%) from a year ago to ¥119.6 billion and operating
income decreased by ¥0.6 billion (5.0%) to ¥12.0 billion.
Although reimbursement prices decreased and R&D expenses increased,
operating income from pharmaceutical operations increased with licensing income
for the anti-herpes agent Famvir™.
Although shipments of APS™ polysulfone-membrane artifi cial kidneys and
Planova™ virus removal fi lters increased, particularly exports, operating income in
devices operations decreased with increased depreciation expenses following
production capacity expansion and with the effect of the appreciating yen.
Fiscal 2009 Outlook
For the pharmaceutical business, we forecast an increase in sales volume for Flivas™
therapy for benign prostatic hyperplasia, a decrease in licensing income, and an
increase in R&D expenditure for the development of new pharmaceuticals. For the
medical device-related business, we forecast an increase in sales volume for APS™
artifi cial kidneys and Planova™ virus fi lters, and an impact on profi tability from
increased expenses for depreciation and R&D, and from appreciation of the yen.
Net Sales
(¥ billion)
120
104.5
100
119.6
111.2
80
60
40
20
0
FY
Operating Income,
Operating Margin
(¥ billion)
13.9
12.7
13.3
15
12
9
6
3
0
(%)
15.0
12.0
12.0
11.4
10.1
9.0
6.0
3.0
0
06
07
08
FY
06
07
08
17
HIGHLIGHTS
Lucica™ GA-L selected by
Japanese Red Cross Society
In March 2009, the Japan Red
Cross Society (JRCS) selected
Asahi Kasei Pharma’s Lucica™
GA-L liquid reagent kit for the
measurement of glycated albumin
as a marker for glycemic control in
diabetes. Having decided to add a
marker for glycemic control to its
slate of biochemical tests on
donated blood, the JRCS selected
the measurement of glycated
albumin with Lucica™ GA-L for the
low cost and ease of use enabled.
Lucica™ GA-L thus now plays a key
role in helping to counteract the
increase in the number of diabetes
patients in Japan.
R&D and Capital Expenditure
R&D expenditure
R&D expenditure as
% of net sales
Capital expenditure
(¥ billion except %)
Depreciation and
amortization
Fiscal 2008
Fiscal 2007
16.4
14.7
13.7%
13.2%
31.6
10.0
10.3
6.1
Major Capital Investments
Completed in fi scal
2008
New plant with integrated spinning & assembly lines for APS™ polysulfone-
membrane dialyzers
Lucica™ GA-L liquid reagent kit
New plant for Sepacell™ virus removal fi lters
Under construction in
fi scal 2008
Capacity expansion for spinning polysulfone hollow-fi ber membrane for APS™
dialyzers
New assembly plant for Planova™ virus removal fi lters
R&D
In pharmaceuticals, the focus is on new drug development in the fi elds of orthopedics,
the central nervous system, and urology; clinical development; and extension of
market life through enhanced product conformation. In medical devices and related
systems, developments are advancing in hemodialysis, therapeutic apheresis, leukocyte
reduction, and virus removal, with next-generation fi elds of research including
regenerative medicine utilizing autohemotherapy.
Pharmaceutical Product Pipeline
Development stage
Product
Objective
Class
Phase III
AT-877
(injection)
PTH
(injection)
Additional
indication
Rho-kinase inhibitor
New biologic
Synthetic human
parathyroid hormone
(as of May 2009)
Indication
Acute cerebral
thrombosis
Osteoporosis
Acquisition of TechniKrom’s
bioprocess business
In March 2009, Asahi Kasei Medical
acquired the bioprocess business
of TechniKrom, Inc., a world leader
in bioprocess equipment
technology. This acquisition
accelerates Asahi Kasei Medical’s
expansion of business in the
growing bioprocess market,
enabling the provision of a wide
range of equipment and separation
media used in biopharmaceutical
production in addition to Planova™
virus removal fi lters.
Preparing for Phase III
AK-120 (oral)
Phase II
AT-877 (oral)
Preparing for Phase II
Phase II
(overseas)
AK150
(injection)
ART-123
(injection)
Additional
indication
Additional
indication
Famiclovir antiviral
Herpes simplex
Rho-kinase inhibitor
Pulmonary
hypertension
New biologic
Pentosan polysulfate
Osteoarthritis
New biologic
Recombinant human
thrombomodulin
Septicemia with
disseminated intra-
vascular coagulation
Planova™ virus removal fi lter
AK106
New biologic
Anti-infl ammatory
Rheumatoid arthritis
18
Asahi Kasei Annual Report 2009
We are advancing our business portfolio realignment through
development of business in non-apparel and industrial-use
materials, expansion of global business, and enhancement of
production infrastructure, in line with our basic strategy to reinforce
the operational foundation and achieve stable growth.
Hidefumi Takai
President, Asahi Kasei Fibers
Fibers
MAJOR PRODUCTS
Roica™ elastic polyurethane fi lament,
Eltas™ spunbond, Lamous™ artifi cial
suede and other nonwovens,
Bemberg™ cupro cellulosic fi ber,
polyester fi lament.
Growth Action – 2010
Advancing a transformation from a business structure centered on products
for the Japanese market for apparel through expansion of overseas business
and development of business in non-apparel and industrial-use materials.
Strengthening base for profi tability in domestic business operations.
Developing new businesses as next-generation core fi elds of operation.
For greater earnings in established businesses:
• Advancement of global development.
• Expansion and development of non-apparel and industrial-use materials.
• Securing profi tability by heightening facilities utilization and enhancing the
processing and production infrastructure.
• Continuous cost reduction.
For expansion of new businesses:
• Commercialization of Cyberlon™ polyketone fi ber business.
• Development of new businesses peripheral to established cellulosic fi bers
and nonwovens businesses. Rapid scale-up to form new core business.
• Extension of business domain based on established technology and know-
how, in growth fi elds not limited to fi ber production.
• Advancement of alliances and joint projects with partners within and
outside the Asahi Kasei Group.
Fiscal 2008 Review
Sales decreased by ¥11.9 billion (10.4%) from a year ago to ¥102.2 billion and an
operating loss of ¥0.9 billion resulted with an ¥8.1 billion decline in profi tability.
Operating income in elastic polyurethane fi lament operations decreased as
deteriorating overseas market conditions resulted in lower product prices and
shipment volumes, and with the effect of the appreciating yen.
Although shipments to overseas markets remained fi rm, operating income in
Bemberg™ regenerated cellulose fi ber operations decreased with high feedstock and
fuel costs and with the effect of the appreciating yen.
Profi tability of nonwovens operations fell with high feedstock and fuel costs and
decreased shipment volumes as an effect of deteriorating market conditions.
Net Sales
(¥ billion)
120
100
80
60
40
20
0
FY
114.1
106.6
102.2
06
07
08
Operating Income (Loss),
Operating Margin
(¥ billion)
8
6
4
2
0
(20)
FY
7.2
6.3
4.2
3.9
(0.8)
(0.9)
06
07
08
(%)
8.0
6.0
4.0
2.0
0
(2.0)
Fiscal 2009 Outlook
Feedstock and fuel costs will be lower and shipments of Lamous™ artifi cial suede will
increase in automobile interior applications, but recovery in shipments of other
products will take more time.
R&D and Capital Expenditure
R&D expenditure
R&D expenditure as
% of net sales
Capital expenditure
(¥ billion except %)
Depreciation and
amortization
Fiscal 2008
Fiscal 2007
3.8
3.4
3.7%
3.0%
12.3
9.3
6.4
5.7
Major Capital Investments
Completed in fi scal
2008
Capacity expansion for Roica™ elastic polyurethane fi lament in Thailand
New technology and R&D center
Under construction in
fi scal 2008
Capacity expansion for Roica™ elastic polyurethane fi lament in Thailand
R&D
R&D is focused on the development of new materials and high value-added grades of
existing materials. In September 2008, a new technology and R&D center was opened
in Moriyama, Shiga, as a base for R&D of Asahi Kasei Fibers. R&D for new materials
includes development of Cyberlon™ polyketone, creation of new cellulose-related
business, and development of new nonwovens. R&D on existing materials is directed
toward the development of new high-value added grades of Roica™ spandex,
Bemberg™ cupro, Leona™ nylon 66, and nonwovens which meet market needs for
advanced performance.
19
HIGHLIGHTS
Completion of new technology
and R&D center
In June 2008, a new fi bers
technology and R&D center was
completed in Moriyama, Shiga. The
functions of two former research
centers of Asahi Kasei Fibers in
Moriyama and Takatsuki, Osaka,
were integrated and expanded in
the new R&D center. With its
enhanced capabilities, the new
center will enable Asahi Kasei
Fibers to accelerate R&D to achieve
its mid-range strategic objectives to
expand overseas business and
develop new applications for
industrial-use materials,
accelerating the establishment of
new core businesses.
New technology and R&D center
Leona ™ nylon 66 fi lament
business transfer
The Leona™ fi lament business was
transferred from Asahi Kasei
Chemicals to Asahi Kasei Fibers in
April 2009. Leona™ fi lament is
used in industrial applications such
as tire cord, with strong growth
forecast in automobile air-bag
applications. The addition of
Leona™ fi lament to the product
family of Asahi Kasei Fibers will
accelerate the realignment of the
business portfolio through
expansion in the fi eld of industrial-
use materials. Asahi Kasei Fibers
will further reinforce and expand the
Leona™ fi lament business through
applications development based on
its advanced technical know-how in
the fi eld of fi bers.
Leona™ nylon 66 fi lament
20
Asahi Kasei Annual Report 2009
Growth of a high-earnings
operational structure is
obtained through leadership
in the development of
products for emerging
applications in electronic
devices markets.
Profi table growth in market
share is obtained through
ongoing development of
competitive grades and
advancement of cost
performance as well as
development of new
products which provide new
value to customers.
Makoto Konosu
President, Asahi Kasei Microdevices
Katsuhiko Yamazoe
President, Asahi Kasei E-materials
Electronics
(formerly Electronics Materials & Devices segment)
MAJOR PRODUCTS
Pimel™ photosensitive polyimide
precursor (PSPI), Sunfort™ dry fi lm
photoresist (DF), glass fabric,
photomask pellicles, mixed-signal
LSIs, Hall elements, fi ne-pattern coils.
A new core operating company of the
Asahi Kasei Group, Asahi Kasei E-materials
Corp., integrating businesses in
electrochemicals-related* product fi elds,
was established in April 1, 2009.
The “E” represents the company’s main
business fi elds – “energy materials” and
“electronic materials” – and “ecology” as
a key focus in products and operations.
Asahi Kasei E-materials is committed
to contributing to sustainable growth and
prosperity, using chemical technology for
green electronic materials, enhancing the
environmental performance of electronic
products.
Operating performance of Asahi Kasei
E-materials will be reported in the
Electronics segment beginning with fi scal
2009.
Profi le of Asahi Kasei E-materials:
President: Katsuhiko Yamazoe
Paid-in capital: ¥3 billion
Address: 1-105 Kanda Jinbocho,
Chiyoda-ku, Tokyo 101-8101 Japan
Phone: +81-(0)3-3296-3939
Main products:
Hipore™ microporous membrane,
photomask pellicles, plastic optical
fi ber, light-diffusion plates, APR™
photosensitive resin and systems,
epoxy resin, Pimel™ photosensitive
polyimide precursor, Sunfort™ dry fi lm
photoresist, glass fabric.
* Electronic materials based on chemical technology
used in applications such as semiconductor
packaging, displays, and batteries.
Growth Action – 2010
Advancement of high-earnings operations securing industry leadership status in
each market segment and functional category, building a presence as a vital
partner which provides customers with materials and functions that are
indispensable for production processes and fi nal products, utilizing superior
development, design, and production technologies and marketing strength.
In electronic devices:
Expansion of business maintaining high profi tability through addition of
peripheral functions in established applications and market development in new
high-growth fi elds, based on the two core technologies of sensor technology and
analog/digital mixed-signal LSI technology, including new developments which
combine the two core technologies. Further business expansion in markets in
Europe and the US with synergies between our proprietary technologies and the
IP cores and process technologies for power management semiconductors held by
the business obtained from Toko Inc.
In electronic materials:
Expansion and reinforcement of No. 1 businesses including Hipore™ Li-ion
rechargeable battery (LiB) separators, Sunfort™ dry fi lm photoresist, and large
photomask pellicles, while launching new products featuring reduced
environmental burden. For Hipore™, reinforcement of the No. 1 position in
portable applications and establishment of a leading position in the promising
market for automobile applications. For Sunfort™, with the world’s largest
production capacity, solidifying the market position in high-end applications and
heightening competitiveness to further expand market share.
Fiscal 2008 Review
Sales decreased by ¥21.5 billion (19.0%) from a year ago to ¥91.7 billion and operating
income decreased by ¥18.9 billion (85.0%) to ¥3.3 billion.
Operating income in electronics materials and electronics devices operations
decreased as a broad and rapid deterioration of market conditions occurred
throughout all product sectors including cell phones, notebook PCs, and other IT and
home electronics products, resulting in decreased shipment volumes, and with a sharp
impact of the appreciating yen.
Net Sales
(¥ billion)
120
112.1
113.3
91.7
Operating Income,
Operating Margin
(¥ billion)
22.6
22.2
20.2
19.6
25
20
15
10
5
0
(%)
30.0
20.0
10.0
0
3.6
3.3
08
06
07
08
FY
06
07
100
80
60
40
20
0
FY
Fiscal 2009 Outlook
For electronic materials, we forecast growing sales volume in line with a recovery of
market conditions beginning in the second half of the fi scal year, although product
prices are likely to decline. For electronic devices, the semiconductor business
purchased from Toko Inc. will contribute to sales and a cost-cutting effort will yield
positive effects.
R&D and Capital Expenditure
R&D expenditure
R&D expenditure as
% of net sales
Capital expenditure
(¥ billion except %)
Depreciation and
amortization
Fiscal 2008
Fiscal 2007
11.2
9.7
12.2%
8.5%
21.6
17.0
15.4
13.9
Major Capital Investments
Completed in
fi scal 2008
R&D
Construction of a new production line for photomask pellicles
Capacity expansion for Sunfort™ dry fi lm photoresist in China
R&D
Swift R&D keeping pace with the rapid technology innovation of the electronics
industry is directed toward the creation of products which meet emerging needs and
demanding requirements, as identifi ed through close interaction with the customer.
In electronic devices, advanced development of high-performance products is based
on compound semiconductor process technology gained through development of
high-sensitivity magnetic sensors and digital/analog mixed-signal LSI technology.
Development of new electronic materials compatible with emerging standards for
fi ne patterning, high density, and high transmission speeds in the fi eld of semicon-
ductors and package substrates is based on technologies for the design, synthesis,
thin-fi lm coating, and fi ne-pattern processing of photosensitive polymers. Other
advanced developments include materials with new added value for fl at-panel displays.
21
HIGHLIGHTS
Capacity expansion for
Sunfort™ dry fi lm photoresist*
To meet growing demand for dry
fi lm photoresist (dry fi lm) used to
form circuit patterns for cell phones
and home electronics, Asahi Kasei
EMD completed a large expansion
of production capacity at its plant in
China for Sunfort™ dry fi lm in June
2008. With this expansion, the
company has obtained the world’s
largest dry fi lm capacity, securing
stable product supply as demand
grows, particularly in China.
* Sunfort™ business transferred to Asahi
Kasei E-materials on April 1, 2009.
Sunfort™ dry fi lm photoresist
Transfer of semiconductor
business from Toko Inc.
In January 2009 Asahi Kasei EMD
concluded an agreement to acquire
the semiconductor business of Toko
Inc., and Asahi Kasei Toko Power
Device Corp. began operation in
April 2009 as a consolidated
subsidiary. Demand for LSIs with
higher performance is forecast to
grow as consumer electronics
products feature greater
functionality, smaller size, and lower
power consumption. Integration of
the power management
semiconductor business from Toko
will enable higher added value,
faster product development,
provision of products and services
more closely aligned with consumer
needs, and advancement of the
global expansion of operations.
LSI products
22
Asahi Kasei Annual Report 2009
With a reinforced commitment to customer focus, safety, security,
and comfort, we contribute to a heightening of the quality of
construction through enhancement of our unique product family,
development of promising peripheral businesses, and establishment
of new business models.
Hiroshi Kobayashi
President, Asahi Kasei Construction Materials
Construction Materials
MAJOR PRODUCTS
Hebel™ autoclaved aerated concrete
(AAC) panels, steel-frame structural
components, piles and foundation
systems, Neoma™ foam insulation
panels.
Growth Action – 2010
AAC-related:
Thorough reduction of operating costs and strengthening of operations.
Development of peripheral businesses.
Foundation systems:
Expansion and reinforcement of Eazet™ and ATT Column™ small-scale
piles business. Development of new construction methods.
Insulation materials:
Expansion of sales of Neoma™ high-performance foam insulation panels in
line with extended implementation of next-generation energy conservation
standards. Development of new applications for Neoma™ foam.
Structural materials:
Expansion of sales through reinforced marketing capability and enhanced
product lineup, with demand supported by the revision of Building
Standards Act.
Fiscal 2008 Review
Sales increased by ¥5.2 billion (9.3%) from a year ago to ¥60.9 billion and operating
income decreased by ¥1.1 billion (39.5%) to ¥1.7 billion.
Although the BasePack™ earthquake-resistant column base attachment system
performed well and shipments of Hebel™ autoclaved aerated concrete panels were
maintained, operating income in building materials and housing materials operations
decreased with increased costs for fuel and materials.
Operating income in foundation systems operations increased as shipments of the
Eazet™ and ATT Column™ piling systems for small-scale construction, and of the
DynaWing™ pre-cast concrete piling system featuring minimal soil disposal and high
load-bearing capacity, increased.
Despite increased costs for fuel and materials, profi tability of insulation materials
operations improved with higher product prices.
Operating Income,
Operating Margin
(¥ billion)
5.0
4.0
3.0
2.0
1.0
0
FY
5.0
8.3
2.8
5.0
1.7
2.8
06
07
08
(%)
10.0
8.0
6.0
4.0
2.0
0
Net Sales
(¥ billion)
70
60.8
60.9
55.7
60
50
40
30
20
10
0
FY
06
07
08
Fiscal 2009 Outlook
Although a decline of sales volume is forecast due to decreasing construction demand,
we will cut fi xed costs, including through optimization of the production
infrastructure.
R&D and Capital Expenditure
R&D expenditure
R&D expenditure as
% of net sales
Capital expenditure
(¥ billion except %)
Depreciation and
amortization
Fiscal 2008
Fiscal 2007
1.0
0.9
1.7%
1.7%
2.4
2.5
3.6
3.1
R&D
The Neoma™ phenolic foam thermal insulation business will be expanded through
developments to enhance production effi ciency and enable composite product
variations. High-performance materials for housing, ecoeffi cient building foundation
systems, and AAC panels with additional functions are under development.
23
HIGHLIGHTS
Launch of CSV™ system in Japan
Having acquired an exclusive license
from Bauer Spezialtiefbau GmbH to
use the CSV™ process and related
equipment in Japan, Asahi Kasei
Construction Materials launched
business with the CSV™ system in
the Kanto area in October 2008. The
original system has been widely
used in Germany, including for
reinforcement of the roadbed for the
Inter City Express high-speed train
and for an extension of the
Autobahn. Enabling the formation of
foundations with no waste soil
generation and minimal noise and
vibration, the CSV™ system was
modifi ed by Asahi Kasei
Construction Materials to match
conditions in Japan. Orders for
foundations made using the system
in small-scale construction projects
are growing.
Foundation formed with CSV™ system
Expansion of FreeDonut™
product lineup
Four new products were added to
the FreeDonut™ lineup in January
2008. The FreeDonut™ system for
reinforcement of openings to pass
plumbing and wiring through steel I-
beams has been used in a wide
range of buildings since its launch in
2006, enabling freedom in design,
cost savings, and shortened
construction periods. In response to
customer demand, the new products
are applicable for larger openings.
This expansion of the FreeDonut™
lineup is part of a strategic expansion
of business by Asahi Kasei
Construction Materials in the fi eld of
innovative structural components
and systems for steel frames.
Plug weld
Sleeve
Ring
FreeDonut™ installation schematic
24
Asahi Kasei Annual Report 2009
Net Sales
(¥ billion)
40
37.0
28.9
27.3
30
20
10
0
Operating Income,
Operating Margin
(¥ billion)
5.6
5.2
3.9
20.6
13.3
13.9
6
5
4
3
2
1
0
(%)
30
25
20
15
10
5
0
Services,
Engineering and Others
FY
06
07
08
FY
06
07
08
MAJOR PRODUCTS
Fiscal 2008 Review
Plant engineering, environmental
engineering, personnel staffi ng and
placement, think tank services.
Sales decreased by ¥9.7 billion (26.3%) from a year ago to ¥27.3 billion and operating
income increased by ¥0.5 billion (9.2%) to ¥5.6 billion.
Although overseas plant engineering decreased with the completion of a major
phase of work, operating income in engineering operations increased with business
related to the provision of services for Asahi Kasei Group operations performing well.
Fiscal 2009 Outlook
Sales and operating income will decline due to deterioration of performance in plant
engineering operations.
R&D and Capital Expenditure
R&D expenditure
R&D expenditure as
% of net sales
Capital expenditure
(¥ billion except %)
Depreciation and
amortization
Fiscal 2008
Fiscal 2007
0.09
0.05
0.3%
0.1%
1.1
0.8
0.8
0.8
R&D
Engineering developments in progress include technology to inspect for internal pipe
corrosion and a joint project for next-generation automotive safety features.
25
Toward Sustainable Growth
CONTENTS
26 Corporate Governance
30 Corporate Social Responsibility
32 Directors, Corporate Auditors, Executive Offi cers
26
Asahi Kasei Annual Report 2009
Corporate Governance
The Asahi Kasei Group constantly endeavors to heighten
fast-moving and transparent management as essential
for maximum corporate value and greater earnings. The
effort for enriched and enhanced corporate governance
is ongoing, building on the October 2003 transformation
to a holding company confi guration with separate
execution and oversight functions which established a
management framework with clear delineation of
executive authority and responsibility.
Corporate Governance System
Holding company
Asahi Kasei
Board of Corporate Auditors
Shareholders
Board of Directors
Group Advisory Committee
Chairman of the Board
President
Strategic Management Council
CSR Council
Executive Officers for the four
main business sectors
Group staff functions
(cid:129) Strategic planning & analysis
(cid:129) Compliance & risk management
(cid:129) Resources administration
New Business Development
Internal Auditing
Internal Control
Core operating companies
Asahi Kasei
Fibers
Asahi Kasei
Chemicals
Asahi Kasei
Construction
Materials
Asahi Kasei
Homes
Asahi Kasei
Microdevices
Asahi Kasei
E-materials
Asahi Kasei
Pharma
Asahi Kasei
Kuraray
Medical
Fiber, textiles
Chemicals
Construction
materials
Housing
Electronic
devices
Electronic
materials
Pharmaceuticals
Medical
devices
Asahi Kasei
Medical
Medical-related
products/
systems
Services,
Engineering
and Others
Chemicals &
Fibers business sector
Homes & Construction
Materials business sector
Electronics
business sector
Health Care
business sector
(As of April 1, 2009)
Board of Directors
Oversees group management, and deliberates and
decides on basic group policy and strategy, and on
substantive proposals by the Strategic Management
Council. The Chairman of the holding company chairs
meetings of the Board of Directors. Meets once or twice
per month.
Strategic Management Council
Deliberates and decides on substantive matters relating
to the operation of the holding company and of the
group. Its decisions are made by the President of the
holding company, who chairs meetings of the council,
after deliberation by the attending constituent members.
Meets twice per month.
Group Advisory Committee
The advisory body to the holding company Board of
Directors, composed of the Chairman and the President
of the holding company and outside advisors. Meets
twice per year.
Board of Corporate Auditors
Comprises four Corporate Auditors, two of whom are
Outside Corporate Auditors. Corporate Auditors
exchange views, deliberate, and decide on substantive
matters relating to auditing. Meets at least once per
quarter.
27
Executive Offi cer System
Authority and responsibility for the management of each
core operating company is held by the President and the
other Executive Offi cers of that company. Authority and
responsibility for the management of the holding
company and of the group is held by the President and
the other Executive Offi cers of the holding company.
The President of the holding company oversees the
executive management and performance of the core
operating companies and of their Presidents. The
holding company Board of Directors oversees the
executive management and performance of the holding
company President and of the group.
Installation of Executive Offi cers for the main business sectors
In April 2009, holding company Executive Offi cers were
installed with purview corresponding to the four main
business sectors: Chemicals & Fibers, Homes &
Construction Materials, Electronics, and Health Care. In
their capacity as Executive Offi cers of the holding
company, they work to advance strategic and effective
allocation of resources to each business sector, and the
enhancement of synergies within the group.
Election of Outside Directors
Three Outside Directors, Yuzo Seto, former President
and Representative Director of Asahi Breweries, Ltd.,
Yukiharu Kodama, former Administrative Vice Minister
of the Ministry of International Trade and Industry, and
Morio Ikeda, former President and CEO of Shiseido Co.,
Ltd., were elected at the 117th Ordinary General Meeting
of Shareholders held in June 2008. Outside Directors
now comprise 30% of the membership of the Board of
Directors.
Audits
Internal Auditing is a corporate organ under the direct
authority of the President of the holding company. Each
year, Internal Auditing prepares plans for an internal
audit in accordance with basic corporate regulations for
internal audits, obtains the President’s approval for these
plans, and then performs the internal audit.
In accordance with the audit policy adopted by the
Board of Corporate Auditors, each Corporate Auditor
attends meetings of the Board of Directors and audits
Directors in the discharge of their duties through
examination of business performance. The Corporate
Auditors Offi ce provides staff to support Corporate
Auditors in their duties.
PricewaterhouseCoopers Aarata is contracted as the
Independent Auditors to perform fi nancial audits in
accordance with the Companies Act and Financial
Instruments and Exchange Act. Partners of the
Independent Auditors designated to perform the audit
for fi scal 2008 were Mr. Katsunori Sasayama and Mr.
Masahiko Hagimori. The Independent Auditors form a
team of assistants for performance of the audit in
accordance with its audit plan. The team mainly
comprises certifi ed public accountants and junior
accountants, and also includes certifi ed information
systems accountants and other specialist accountants.
Internal Auditing, the Board of Corporate Auditors,
and the Corporate Auditors of core operating companies
and other subsidiaries regularly meet to confi rm the
effectiveness of internal governance systems for legal
compliance and risk management. The Board of
Corporate Auditors provides counsel to the Independent
Auditors with respect to its audit plan, and receives the
results of the consolidated fi nancial audit of Asahi Kasei
each quarter and each fi scal year.
28
Asahi Kasei Annual Report 2009
Adoption of Shareholder Rights Plan
The Asahi Kasei Group has established a basic corporate
policy concerning the nature of parties who would
control the company’s fi nancial and operational
decisions. The adoption of a Shareholder Rights Plan,
comprising measures in response to large acquisition of
shares to prevent control of the company’s fi nancial and
operational decisions by inappropriate parties in light of
this basic corporate policy, was approved at the Ordinary
General Meeting of Shareholders held in June 2008.
The purpose of the Shareholder Rights Plan is to
secure and heighten the company’s corporate value and
the common interest of shareholders in the event of a
purchase of 20% or more of the company’s shares, by
ensuring necessary and suffi cient information and time
for shareholders to make proper judgment, by obtaining
an opportunity to negotiate with the purchasing party,
and otherwise. Please refer to the relevant news release
at www.asahi-kasei.co.jp/asahi/en/news/2008/e080423.
html for more details.
Compliance
Corporate Ethics
Our Corporate Ethics – Basic Policy and Code of Conduct
is the standard and guide for ethical conduct throughout
the day-to-day work of each and every member of the
Asahi Kasei Group. It has been translated into English
and Chinese, and in principle applies to all majority-held
subsidiaries the world over.
Protection of Personal Information
Asahi Kasei is committed to the proper handling and use
of personal information, in accordance with our basic
policy shown below. Education and training for all
employees includes the distribution of an information
security handbook which covers issues related to
personal information protection, is monitored by the
Corporate Ethics Committee.
Corporate Ethics – Basic Policy
(cid:129) Creating value, contributing to society
(cid:129) Caring for environment, health, and safety
(cid:129) Honoring law and norms of society
(cid:129) Excluding subversive elements
(cid:129) Respecting the individual
(cid:129) Ensuring transparency
(cid:129) Respecting information and intellectual property
(cid:129) Practicing corporate ethics
Basic Policy for Protection of Personal
Information
(cid:129) We handle personal information properly and in
compliance with the Personal Information
Protection Law and other applicable statutes, and
in conformance with generally accepted norms
and standards.
(cid:129) We ensure that personnel throughout the Asahi
Kasei Group thoroughly understand and faithfully
comply with corporate standards and regulations
for the handling of personal information.
(cid:129) We use personal information only for the specifi c
purposes which have been indicated or
announced at the time of its receipt.
(cid:129) We employ appropriate measures in the
maintenance and management of personal
information to ensure against unauthorized
alteration, disclosure, and loss of personal
information.
(cid:129) We will respond in good faith to requests to
confi rm, revise, cease using, or delete personal
information.
29
Information Disclosure Policy
The Asahi Kasei Group has established an Information
Disclosure Policy, enhancing the management and
disclosure of corporate information to obtain greater
corporate value. Corporate regulations for information
disclosure based on this policy were adopted on July 1,
2008. The basic principles of the Information Disclosure
Policy are shown below.
• With our Basic Credo of “contributing to human life
and human livelihood through constant innovation
and advances based in science and the human
intellect,” we hold “progressing in concert with society,
and honoring the laws and standards of society as a
good corporate citizen” as a Guiding Precept.
“Ensuring transparency” is a fundamental element of
our Corporate Ethics – Basic Policy. We proactively
engage in information disclosure and communication
based on these basic concepts.
• Corporate information is disclosed fairly, impartially,
accurately, and as swiftly as possible to stakeholders
such as customers, suppliers, shareholders, investors,
employees, and local communities, and to the general
public.
• In our communication with stakeholders and with the
general public, we strive for dialog which fosters a
relationship of trust, promoting greater understanding
of the Asahi Kasei Group and its operations, to
increase brand strength and heighten corporate value.
Compliance Monitoring by the Corporate Ethics Committee
Monitoring of compliance and oversight of education
and training for compliance throughout the Asahi Kasei
Group are performed by the Corporate Ethics
Committee, which was formed in July 1998. Where
shortcomings are discovered, the committee formulates
and implements measures for improvement.
The committee discusses the training programs
implemented at each group company, measures for
prevention of sexual harassment, environmental
countermeasures, the state of compliance with personal
information protection law, and operation of the
Compliance Hotline.
Risk Management
Risk Management Committee
The Risk Management Committee was established in
April 2005 to enhance the risk management system for
prevention of operational crises and minimization of the
effects should a crisis occur. The Board of Directors
enacted Basic Risk Management Regulations, effective
April 1, 2007, providing clear guidelines to heighten the
capability and effectiveness for risk management and
emergency response throughout the Asahi Kasei Group.
Corporate Risk Management
Corporate Risk Management works with the various
divisions and departments to guide the proper response
to any major accidents, incidents, or problems which
cause signifi cant damage to Asahi Kasei Group
operations or which may foreseeably cause Asahi Kasei
Group operations to have adverse effects on the general
public. In fi scal 2008, a New Infl uenza Response Manual
was instituted in preparation for any global pandemic of
a new strain of infl uenza.
Role of Corporate Risk Management
Information disclosure through
Corporate Communications
Corporate
Risk Management
Emerging crisis
Direction and guidance
Stakeholders
Employees
Typhoon, earthquake,
or other natural disaster;
industrial accident causing
pollution or injury; terrorism;
infectious disease; product
safety incident, etc.
Response
Fact checking,
Fact checking,
Fact checking,
coordination
coordination
coordination
Responsible
division or
department
30
Asahi Kasei Annual Report 2009
Corporate Social Responsibility
CSR at the Asahi Kasei Group
CSR in Action
We believe that CSR is achieved through the sustainable
expansion of operations effecting increased corporate
value, enabling fulfi llment of the needs and expectations
of our various stakeholders, in accordance with our basic
tenets of contribution to human life and human
livelihood through constant innovation and advances
based in science and the human intellect.
CSR Fundamentals
Based in an understanding of the effects of our
operations on the global environment and the global
community, efforts and actions related to CSR are based
in our four CSR Fundamentals: Compliance, Respect
for Employee Individuality, Responsible Care*, and
Corporate Citizenship.
Asahi Kasei Group CSR
The
customer
Customer
satisfaction
The
employee
Employee
fulfillment
The
supplier
Fair business
dealings
The
community
Community
outreach
The
environment
Environmental
protection
Sustainable increase
in corporate value
The
shareholder
Shareholder
returns
The local
economy
Local economic
participation
Business operations
CSR Fundamentals
Compliance
Respect for Employee
Individuality
Responsible Care
Corporate Citizenship
* Responsible Care represents the commitment and initiative to secure and improve safety and environmental protection at every step of the product life-cycle through
the individual determination and responsibility of each fi rm producing and handling chemical products. As of October 2008, fi fty-three countries throughout the world
have a Responsible Care program.
31
Highlight
Life-cycle CO2 emissions reduced by 7.2 million tons/year in three product families
CO2 reduction equivalent to emission from
some 1.34 million households
Products and technologies of the Asahi Kasei Group
used in production processes of caustic soda, water for
injection, colloidal silica, and polycarbonate, have an
annual reduction of CO2 emissions of approximately 7.2
million tons, as quantifi ed by Life Cycle Assessment,
when compared with the CO2 emissions generated with
the conventional production processes. This reduction
is equivalent to the annual CO2 emissions from some
1.34 million households in Japan (average 5.35 tons/year
per household*).
* According to The GHGs Emissions Data of Japan (1990–2007) by the
Greenhouse Gas Inventory Offi ce of Japan.
Caustic soda production
Water treatment in
production of water for
injection and colloidal silica
Polycarbonate production
Conventionally mercury process
and diaphragm process
Conventionally evaporation
and distillation
Conventionally phosgene
process, etc.
CO2 reduced by
5.2 million tons/year
CO2 reduced by
1.2 million tons/year
CO2 reduced by
0.8 million tons/year
Asahi Kasei’s ion-exchange
membrane process
There are three production processes
which are generally employed in the
production of caustic soda: The
membrane process, the diaphragm
process, and the mercury process.
Asahi Kasei Chemicals produces
ion-exchange membranes for
production of caustic soda by the
membrane process.
Among those processes, the ion-
exchange membrane process
features highest energy-effi ciency
and lowest power consumption,
thus reducing the CO2 emissions
generated for production of the
required electricity.
Water treatment with
Asahi Kasei’s microfi ltration
membrane
Production of water for injection
conventionally requires distillation,
and production of colloidal
conventionally requires
concentration of silica sol by
evaporation. Each of these processes
requires a large amount of energy.
Microfi ltration using Microza™
modules from Asahi Kasei
Chemicals enables water for
injection to be produced without
distillation and colloidal silica to be
produced without evaporation.
As the process of water
circulation and fi ltration using
Microza™ requires much less energy
than distillation and evaporation,
generation of CO2 is reduced.
Asahi Kasei’s
non-phosgene process
Asahi Kasei Chemicals has
developed a phosgene-free
polycarbonate production process
which uses CO2 as a starting
material, and is licensing the process
to polycarbonate producers around
the world.
By using CO2 as a starting
material, and by eliminating the
need to use phosgene and caustic
soda, whose production is energy-
intensive, the non-phosgene process
results in lower CO2 release than the
conventional processes.
Ion-exchange membrane
Microza™ microfi ltration membrane
CDs made of polycarbonate
32
Asahi Kasei Annual Report 2009
Directors, Corporate Auditors, Executive Offi cers
(As of June 26, 2009)
Nobuo Yamaguchi
Shiro Hiruta
Ichiro Itoh
Taketsugu Fujiwara
Chairman of the Board &
Representative Director
President & Representative Director
Presidential Executive Offi cer
Director
Vice-Presidential Executive Offi cer
(Strategy, Accounting & Finance,
Internal Control)
Director
Vice-Presidential Executive Offi cer
(Production Technology, ESH, PL,
Procurement, Logistics, IT)
Kiyoshi Tsujita
Yuji Mizuno
Director
Senior Executive Offi cer
(HR, Compliance)
Director
Lead Executive Offi cer
(General Affairs, Compliance)
Yoshio Hayashi
Director
Lead Executive Offi cer
(R&D)
Yuzo Seto
Outside Director
Yukiharu Kodama
Morio Ikeda
Outside Director
Outside Director
Yuji Tsuchiya
Corporate Auditor
Ryo Matsui
Lead Executive Offi cer
Makoto Konosu
Executive Offi cer
Haruyuki Yoneda
Executive Offi cer
Kenji Nakamae
Corporate Auditor
Masanori Mizunaga
Lead Executive Offi cer
Masaki Sakamoto
Executive Offi cer
Shinichiro Nei
Executive Offi cer
Kazuo Tezuka
Outside Corporate Auditor
Toshikatsu Sunami
Lead Executive Offi cer
Shingo Hatano
Executive Offi cer
Yuji Aoki
Outside Corporate Auditor
Yutaka Shibata
Lead Executive Offi cer
Tsutomu Inada
Executive Offi cer
33
Financial Section
CONTENTS
34 Consolidated Eleven-Year Summary
36 Management’s Discussion and Analysis
42 Risk Analysis
44 Consolidated Balance Sheets
46 Consolidated Statements of Income
47 Consolidated Statements of Changes in Net Assets
48 Consolidated Statements of Cash Flows
49 Notes to Consolidated Financial Statements
65 Report of Independent Auditors
34
Asahi Kasei Annual Report 2009
Consolidated Eleven-Year Summary
Asahi Kasei Corporation and consolidated subsidiaries
For the years ended March 31
Net sales
Chemicals
Life & Livinga
Chemical and Chemical-related
Chemicals and Plastics
Homes
Housing and Construction Materials
Pharmab
Fibersb
Electronics Materials & Devicesb
Construction Materials
Special Products and Services
Electronics
Membranes and Systems
Biotechnology and Medical Products
Foods and Liquors
Engineering and Othersb
Services, Engineering and Othersb
Domestic sales
Overseas sales
Operating income
Ordinary income
Income (loss) before income taxes
Net income (loss)
Net income (loss) per share, yen
Capital expenditure
Depreciation and amortization
R&D expenditures
Cash dividends per share, yen
As of March 31
Total assets
Inventories
Property, plant and equipment
Investments and other assets
Net worthc
Net worth per share, yen
Net worth/total assets, %
Number of employees
2009
2008
2007
2006
¥ 1,553,108 ¥ 1,696,789 ¥ 1,623,791 ¥ 1,498,620
741,486
879,235
752,632
660,402
—
—
—
—
—
—
52,558
51,942
—
—
—
—
409,882
386,227
405,695
404,539
—
—
—
—
119,619
111,232
104,474
105,842
102,176
114,072
106,639
89,704
91,721
113,267
112,094
102,859
60,927
55,732
60,818
56,512
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
27,297
37,024
28,881
26,821
1,159,143
1,209,452
1,195,751
1,125,454
393,965
487,337
428,040
373,166
34,959
127,656
127,801
108,726
32,500
120,456
126,507
104,166
19,031
105,599
114,883
4,745
69,945
68,575
3.39
126,725
79,436
60,849
10.00
50.01
82,911
73,983
56,170
13.00
49.00
84,413
71,646
52,426
12.00
94,481
59,668
42.46
66,310
69,399
51,467
10.00
2009
2008
2007
2006
¥ 1,379,337 ¥ 1,425,367 ¥ 1,459,922 ¥ 1,376,044
273,539
272,372
240,006
214,062
441,271
424,193
426,959
414,368
218,477
234,873
281,502
284,390
603,846
666,244
645,655
594,211
431.77
476.39
461.50
424.34
43.8
46.7
44.2
43.2
24,244
23,854
23,715
23,030
a. The Life & Living segment was combined with the Chemicals segment in the year ended March 31, 2008.
b. For continuity, fi gures for business categories which were renamed are shown on the same line.
(cid:129) Through the year ended March 31, 2003: Figures shown as Pharma are those for the previous Health Care sector, fi gures shown as Fibers are those for the previous Fibers
and Textiles sector, fi gures shown as Electronics Materials & Devices are those for the previous Electronics sector, and fi gures shown as Services, Engineering and Others are
those for the previous Liquors, Services and Others sector.
(cid:129) With the divestment of foods operations, the “foods and liquors” and “engineering and services” segments are combined as “engineering and others.” Through the year
ended March 31, 1999, fi gures shown as “engineering and others” are those for the previous “engineering and services” segment.
c. Net assets less minority interest. Though the year ended March 31, 2006, fi gures for shareholders’ equity shown.
d. For comparison purposes, results for the year ended March 31, 2005, are recalculated to refl ect the April 2005 transfer of Leona™ nylon 66 fi lament operations from the Fibers
segment to the Chemicals segment.
35
Millions of yen, except where noted
2005d
2004
2003e
2003
2002
2001f
2001
2000
1999
¥ 1,377,697 ¥ 1,253,534 ¥ 1,193,614 ¥ 1,193,614 ¥ 1,195,393 ¥ 1,269,415 ¥ 1,269,415 ¥ 1,194,462 ¥ 1,171,845
570,182
453,707
424,673
59,149
59,813
52,908
—
—
—
—
—
—
—
477,581
440,698
449,470
—
—
—
—
—
—
—
—
—
—
—
—
—
—
375,755
361,273
320,553
—
—
—
—
—
430,934
379,677
375,048
—
—
—
—
—
—
—
383,654
408,474
433,440
433,440
412,954
372,649
103,933
105,965
105,463
105,463
98,686
95,481
—
—
—
91,518
101,514
110,551
110,551
125,908
134,791
134,791
139,181
148,277
71,579
64,062
95,999
—
—
—
—
—
—
—
—
270,250
262,650
275,871
93,024
59,908
82,484
60,622
71,579
63,101
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
96,228
18,307
95,481
—
80,653
17,967
93,460
—
60,234
70,570
66,212
18,133
88,050
90,068
13,408
—
24,228
28,156
44,786
44,786
57,565
60,234
—
—
1,067,893
1,011,366
981,064
981,064
1,006,810
1,086,219
1,086,219
1,044,630
1,009,439
309,804
242,168
212,550
212,550
188,583
183,196
183,196
149,832
162,406
115,809
112,876
60,932
53,643
61,555
50,389
61,555
50,389
91,141
56,454
40.16
68,479
71,531
50,715
8.00
54,820
(100,869)
(100,869)
27,672
(66,791)
(66,791)
19.62
86,387
64,408
48,420
6.00
(47.63)
93,985
60,808
49,311
6.00
(47.63)
93,985
60,808
49,311
6.00
45,664
39,849
10,679
5,180
3.61
74,826
60,676
49,574
6.00
96,024
86,747
50,318
25,177
17.45
69,188
62,222
49,768
6.00
96,024
86,747
50,318
25,177
17.45
69,188
62,222
49,768
6.00
74,323
85,853
39,615
20,525
14.23
63,213
63,629
50,015
6.00
51,237
42,443
37,525
17,392
12.06
70,461
63,845
56,844
6.00
2005
2004
2003
2003
2002
2001
2001
2000
1999
¥ 1,270,057 ¥ 1,249,206 ¥ 1,212,374 ¥ 1,212,374 ¥ 1,193,011 ¥ 1,240,008 ¥ 1,240,008 ¥ 1,180,372 ¥ 1,185,249
202,521
181,609
176,788
176,788
180,826
196,510
196,510
181,771
193,691
419,969
428,302
427,188
427,188
415,193
419,168
419,168
416,881
435,005
223,958
226,825
198,697
198,697
181,618
176,177
176,177
127,013
132,251
511,726
450,451
407,639
407,639
496,826
516,013
516,013
476,159
464,339
365.43
321.41
290.92
290.92
353.16
357.70
357.70
330.07
321.88
40.3
36.1
33.6
33.6
41.6
41.6
41.6
40.3
39.2
23,820
25,011
25,730
25,730
26,227
26,695
26,695
26,580
29,263
e. For comparison purposes, results by business category for the year ended March 31, 2003, are recalculated in accordance with the revised categories for the year ended
March 31, 2004, which are aligned with the core operating companies in the holding company confi guration adopted on October 1, 2003.
(cid:129) The “fabricated home products” segment of the Chemical and Chemical-related sector is separated to an independent Life & Living segment. The remainder of the Chemical
and Chemical-related sector is reclassifi ed as the Chemicals segment.
(cid:129) The Housing and Construction Materials sector is separated into the Homes segment and the Construction Materials segment.
(cid:129) The Health Care sector is renamed the Pharma segment.
(cid:129) The Fibers and Textiles sector is renamed the Fibers segment.
(cid:129) The Electronics sector is renamed the Electronics Materials & Devices segment.
(cid:129) With the divestment of liquors operations, the Liquors, Services and Others sector is renamed the Services, Engineering and Others segment.
f. For comparison purposes, results by business category for the year ended March 31, 2001, are recalculated in accordance with the revised categories for the year ended
March 31, 2002.
(cid:129) Operations of the “membranes and systems” segment combine with the Chemicals and Plastics sector to form the Chemical and Chemical-related sector.
(cid:129) The “electronics” segment is reclassifi ed as the Electronics sector.
(cid:129) Operations of the “biotechnology and medical products” segment are reclassifi ed as the Health Care sector.
(cid:129) The remaining operations comprise the Liquors, Services and Others sector, in place of the “engineering and others” segment.
36
Asahi Kasei Annual Report 2009
Management’s Discussion and Analysis
Fiscal year 2008 (April 1, 2008 – March 31, 2009)
Overview of fi scal 2008 consolidated results
Operating environment
Domestic sales decreased by ¥50.3 billion (4.2%) to
¥1,159.1 billion due to a decrease in demand and a steep
decline in product shipments, particularly in Chemicals.
The global economy entered a severe economic downturn
Operating income decreased by ¥92.7 billion to ¥35.0
beginning in the second half of the fi scal year as the
billion, a 72.6% decline. As a percentage of net sales, cost
fi nancial crisis triggered by the rise in subprime mortgage
of sales increased by 3.7 percentage points to 79.7%,
defaults in the US spread into the real economy worldwide.
largely due to increases in the cost of feedstock and fuel in
Sharply impacted by the global economic slump, the
the fi rst half of the year and reduced operating rates in line
Japanese economy fell into an economic recession of
with decreased demand. SG&A increased by ¥0.2 billion
historic proportions with a broad decline in exports and a
and increased as a percentage of net sales by 1.5
rapid appreciation of the exchange value of the yen, which
percentage points to 18.0% as an effect of the sales
led to deteriorating corporate earnings, cuts in private
decline. Operating income as a percentage of net sales
sector capital investment, and curtailment of production,
decreased by 5.2 percentage points to 2.3%.
resulting in reduced employment and the emergence of
related social problems.
Non-operating income and expenses, ordinary income
The Asahi Kasei Group faced an extremely
Net non-operating expenses were ¥2.5 billion, ¥4.7 billion
challenging operating climate, with high feedstock and fuel
lower than the ¥7.2 billion of a year earlier. This was largely
costs continuing through the fi rst half of the fi scal year
due to lower foreign exchange loss and a change to
before falling sharply in the second half, and with the sharp
recording loss on disposal of inventories under cost of
rise in the value of the yen, steep declines in product
sales, although equity in earnings of affi liates decreased by
demand, and inventory adjustments among customers
¥2.9 billion. As a result, ordinary income decreased by
necessitating cutbacks in production for many products.
¥88.0 billion to ¥32.5 billion, a 73.0% decline.
Net sales, operating income
Extraordinary income and loss
Consolidated net sales for the fi scal year decreased by
The net extraordinary loss was ¥13.5 billion, ¥1.4 billion lower
¥143.7 billion (8.5%) from a year ago to ¥1,553.1 billion.
than the ¥14.9 billion of a year earlier. Although business
Overseas sales decreased, largely in Chemicals, by ¥93.4
structure improvement expenses increased by ¥3.7 billion,
billion (19.2%) to ¥394.0 billion, a 3.3 percentage point
impairment loss decreased by ¥4.5 billion and loss on
decrease from 28.7% to 25.4% of consolidated net sales.
disposal of noncurrent assets decreased by ¥0.9 billion.
Net Sales
(¥ billion)
2,000
1,500
1,000
500
0
Operating Income,
Operating Margin
(¥ billion)
150
120
90
60
30
0
SG&A, SG&A Ratio
(%)
15
(¥ billion)
300
12
240
9
6
3
0
180
120
60
0
(%)
20
16
12
8
4
0
Net Income,
Net Income per Share
(¥ billion)
80
60
40
20
0
(¥)
60
45
30
15
0
FY
06
07
08
FY
06
07
08
FY
06
07
08
FY
06
07
08
Operating income, left scale
SG&A, left scale
Net income, left scale
Operating margin, right scale
SG&A ratio, right scale
Net income per share, right scale
37
Net income
volumes due to deteriorating market conditions both in
With ordinary income of ¥32.5 billion and the net
Japan and worldwide, the sharp impact of the appreciation
extraordinary loss of ¥13.5 billion, income before income
of the yen, and the impact of devaluation of inventories in
taxes was ¥19.0 billion. Currently payable income taxes of
the second half of the fi scal year.
¥8.5 billion and deferred income tax obligation of ¥5.2
Although specialty products operations performed
billion combined for an income tax expense of ¥13.7
well during the fi rst half of the fi scal year, shipments of
billion. Minority interest in income of consolidated
Hipore™ Li-ion rechargeable battery separator membranes
subsidiaries was ¥0.6 billion. As a result, net income
and of ion-exchange membranes for chlor-alkali
decreased by ¥65.2 billion to ¥4.7 billion, a 93.2%
electrolysis decreased with the sudden deterioration of
decrease, and net income per share decreased by ¥46.62
market conditions in the second half of the fi scal year, and
to ¥3.39 from the ¥50.01 of a year earlier.
operating income decreased.
Results by segment
Operating segments
Homes
Sales increased by ¥23.7 billion (6.1%) from a year ago to
¥409.9 billion and operating income increased by ¥0.5
Six operating segments correspond to the main fi elds of
billion (2.3%) to ¥21.9 billion.
business, and the Services, Engineering and Others
Although deliveries of Hebel Haus™ unit homes
segment comprises the remainder of operations.
recovered from the decline a year ago due to falsifi cation of
Consolidated net sales and consolidated operating income
the performance of certain components as came to light in
and loss in each operating segment were as follows.
late October 2007, and there were deliveries of
Chemicals
condominium units with the completion of a large
construction project, operating income in order-built and
Sales decreased by ¥137.7 billion (15.7%) from a year ago
pre-built homes operations decreased with the impact of
to ¥741.5 billion and an operating loss of ¥0.4 billion
high costs for materials and a devaluation of real estate
resulted with a ¥65.6 billion decline in profi tability.
held as inventory for sale.
In volume products operations, both chemicals and
Although real estate operations struggled, operating
derivative products and polymer products, profi tability fell
income from housing-related operations increased with
with the sharp impact of high feedstock prices in the fi rst
remodeling and fi nancing operations performing well.
half of the fi scal year and with a steep decline in shipment
New orders for order-built homes decreased by ¥15.0
ROE
(%)
12
9
6
3
0
Chemicals
Homes
(¥ billion)
1,000
800
600
400
200
0
(200)
(¥ billion)
(¥ billion)
(¥ billion)
7.0%
7.4%
100
500
80
60
40
20
0
400
300
200
100
(0.06)%
(20)
0
6.8%
5.5%
5.3%
30
24
18
12
6
0
FY
06
07
08
FY
06*
07
08
FY
06
07
08
Net sales, left scale
Net sales, left scale
Operating income (loss), right scale
Operating income, right scale
Operating margin (%)
Operating margin (%)
* Including former Life & Living segment.
38
Asahi Kasei Annual Report 2009
billion from a year ago to ¥291.1 billion as an effect of a
fi ber operations decreased with high feedstock and fuel
sharp decline in market conditions beginning in the second
costs and with the effect of the appreciating yen.
half of the fi scal year.
Pharma
Profi tability of nonwovens operations fell with high
feedstock and fuel costs and decreased shipment volumes
as an effect of deteriorating market conditions.
Sales increased by ¥8.4 billion (7.5%) from a year ago to
¥119.6 billion and operating income decreased by ¥0.6
Electronics Materials & Devices
billion (5.0%) to ¥12.0 billion.
Sales decreased by ¥21.5 billion (19.0%) from a year ago
Although reimbursement prices decreased and R&D
to ¥91.7 billion and operating income decreased by ¥18.9
expenses increased, operating income from
billion (85.0%) to ¥3.3 billion.
pharmaceutical operations increased with licensing income
Operating income in electronics materials and
for the anti-herpes agent Famvir™.
electronics devices operations decreased as a broad and
Although shipments of APS™ polysulfone-membrane
rapid deterioration of market conditions occurred
artifi cial kidneys and Planova™ virus removal fi lters
throughout all product sectors including cell phones,
increased, particularly exports, operating income in devices
notebook PCs, and other IT and home electronics
operations decreased with increased depreciation
products, resulting in decreased shipment volumes, and
expenses following production capacity expansion and
with the sharp impact of the appreciating yen.
with the effect of the appreciating yen.
Construction Materials
Fibers
Sales increased by ¥5.2 billion (9.3%) from a year ago to
Sales decreased by ¥11.9 billion (10.4%) from a year ago
¥60.9 billion and operating income decreased by ¥1.1
to ¥102.2 billion and an operating loss of ¥0.9 billion
billion (39.5%) to ¥1.7 billion.
resulted with an ¥8.1 billion decline in profi tability.
Although the BasePack™ earthquake-resistant
Operating income in elastic polyurethane fi lament
column base attachment system performed well and
operations decreased as deteriorating overseas market
shipments of Hebel™ autoclaved aerated concrete panels
conditions resulted in lower product prices and shipment
were maintained, operating income in building materials
volumes, and with the effect of the appreciating yen.
and housing materials operations decreased with
Although shipments to overseas markets remained
increased costs for fuel and materials.
fi rm, operating income in Bemberg™ regenerated cellulose
Operating income in foundation systems operations
Pharma
Fibers
Electronics Materials &
Devices
(¥ billion)
(¥ billion)
(¥ billion)
(¥ billion)
(¥ billion)
(¥ billion)
13.3%
11.4%
10.1%
150
120
90
60
30
0
FY
06
07
08
15
12
9
6
3
0
120
90
60
30
0
(30)
FY
6.3%
3.9%
8
6
4
2
0
(0.8)%
(2)
150
20.2%
19.6%
120
90
60
30
0
30
24
18
12
6
0
3.6%
06
07
08
FY
06
07
08
Net sales, left scale
Net sales, left scale
Net sales, left scale
Operating income, right scale
Operating income (loss), right scale
Operating income, right scale
Operating margin (%)
Operating margin (%)
Operating margin (%)
39
increased as shipments of the Eazet™ and ATT Column™
piling systems for small-scale construction, and of the
Liquidity and capital resources
DynaWing™ pre-cast concrete piling system featuring
Financial position
minimal soil disposal and high load-bearing capacity,
Total assets at fi scal year end were ¥1,379.3 billion, ¥46.0
increased.
billion (3.2%) lower than a year earlier.
Despite increased costs for fuel and materials,
Although cash and deposits were increased by ¥15.1
profi tability of insulation materials operations improved with
billion to secure liquidity, current assets decreased by
higher product prices.
Services, Engineering and Others
¥57.9 billion (7.8%) to ¥682.2 billion, with notes and
accounts receivable, trade, decreasing by ¥89.9 billion as
net sales declined due to lower product market prices and
Sales decreased by ¥9.7 billion (26.3%) from a year ago to
decreased shipment volumes.
¥27.3 billion and operating income increased by ¥0.5
Although the market value of investment securities
billion (9.2%) to ¥5.6 billion.
decreased by ¥33.9 billion, noncurrent assets increased by
Although overseas plant engineering decreased with
¥11.8 billion (1.7%) to ¥697.1 billion. Property, plant and
the completion of a major phase of work, operating
equipment increased by ¥17.1 billion and intangible assets
income in engineering operations increased with business
increased by ¥11.2 billion as increases from capital
related to the provision of services for Asahi Kasei Group
expenditure exceeded depreciation and amortization
operations performing well.
Geographical information
combined with loss on disposal of noncurrent assets.
Deferred tax assets increased by ¥16.1 billion. Notable
capital expenditure included the construction of a plant
Geographic segment information is not shown because
with integrated spinning and assembly lines for APS™
over 90% of total sales were from operations domiciled in
polysulfone-membrane dialyzers, a new assembly plant for
Japan and over 90% of total assets were located in Japan.
Planova™ virus removal fi lters, and a new R&D complex in
Fuji, Shizuoka, Japan.
Although short-term loans payable were increased by
¥57.6 billion as necessary for operating funds due to
deteriorating fi nancial performance, current liabilities
decreased by ¥25.5 billion (5.0%) to ¥487.9 billion. Notes
and accounts payable, trade, decreased by ¥41.7 billion
Construction Materials
Services, Engineering and
Others
(¥ billion)
(¥ billion)
(¥ billion)
(¥ billion)
8.3%
90
60
30
0
6
4
2
0
5.0%
2.8%
40
30
20.6%
20
13.3%
13.9%
10
0
8
6
4
2
0
FY
06
07
08
FY
06
07
08
Net sales, left scale
Net sales, left scale
Operating income, right scale
Operating income, right scale
Operating margin (%)
Operating margin (%)
40
Asahi Kasei Annual Report 2009
due to lower feedstock and fuel prices and reduced
operating rates at production facilities, and accrued
expenses decreased by ¥22.0 billion.
Noncurrent liabilities increased by ¥42.3 billion
(17.8%) to ¥280.1 billion, with a ¥69.3 billion increase in
long-term loans payable.
Although ¥25.0 billion in bonds were redeemed,
interest-bearing debt increased by ¥104.2 billion to ¥315.6
billion, with a ¥126.9 increase in borrowings from fi nancial
institutions.
Chemicals
Homes
Pharma
Fibers
Electronics Materials & Devices
Construction Materials
Services, Engineering and Others
Net assets decreased by ¥62.8 billion (9.3%) from the
Combined
Totals for the year
(¥ million)
Compared to
previous year (%)
45,667
7,037
31,569
12,257
21,557
2,430
1,082
121,598
133.0
94.4
315.5
132.4
126.7
96.9
136.4
149.4
333.8
152.8
¥674.2 billion of a year ago to ¥611.4 billion. With net
Corporate assets and eliminations
5,127
income of ¥4.7 billion, dividend payments were ¥19.6
billion, valuation difference on available-for-sale securities
decreased by ¥27.8 billion, and foreign currency translation
Consolidated
126,725
adjustment decreased by ¥19.6 billion. Net worth per
Notable capital expenditure by operating segment was as
share decreased by ¥44.62 to ¥431.77. Net worth/total
follows.
assets decreased from 46.7% to 43.8%, and debt-to-
(cid:129) Chemicals: Expansion of capacity for Hipore™ Li-ion
equity ratio increased by 0.20 to 0.52.
rechargeable battery separators; plant modifi cation,
rationalization, and maintenance.
Capital expenditure
(cid:129) Homes: Leases; construction system modifi cation,
Capital expenditure was primarily for new and expanded
rationalization, and maintenance.
production plant and equipment in long-term growth fi elds.
(cid:129) Pharma: Acquisition of intellectual property rights for
Investments were also made for rationalization,
Flivas™ agent for treatment of benign prostatic
modifi cation, maintenance, and IT systems to bring greater
hyperplasia; expansion of capacity for assembly of
product reliability and cost reductions. Capital expenditure
APS™ polysulfone-membrane artifi cial kidneys;
by operating segment shown below is for property, plant
expansion of capacity for Planova™ virus removal fi lters;
and equipment and intangible assets, combined, before
plant modifi cation, rationalization, and maintenance.
consumption tax.
Total Assets, Net Worth
Net Worth to Total Assets
Interest-Bearing Debt,
D/E Ratio
Capital Expenditure,
Depreciation and Amortization
(¥ billion)
1,500
1,200
900
600
300
0
(%)
(¥ billion)
50
40
30
20
10
0
400
300
200
100
0
(¥ billion)
1.00
150
0.75
0.50
0.25
0.00
120
90
60
30
0
FY
06
07
08
FY
06
07
08
FY
06
07
08
FY
06
07
08
Total assets
Net worth
Interest-bearing debt, left scale
Capital expenditure
D/E ratio, right scale
Depreciation and amortization
41
(cid:129) Fibers: Expansion of capacity for Roica™ elastic
Cash fl ows from operating activities
polyurethane fi lament; construction of new R&D and
Cash used included ¥37.3 billion for decrease in notes and
technology center; plant modifi cation, rationalization, and
accounts payable, trade, ¥21.5 billion for decrease in
maintenance.
accrued expenses, and ¥25.0 billion for income taxes,
(cid:129) Electronics Materials & Devices: Expansion of capacity
paid. Income before income taxes generated ¥19.0 billion,
for LSIs; expansion of capacity for Sunfort™ dry fi lm
depreciation and amortization generated ¥79.4 billion, and
photoresist; plant modifi cation, rationalization, and
decrease in notes and accounts receivable, trade, largely
maintenance.
in Chemicals and Homes, generated ¥83.7 billion. Net
(cid:129) Construction Materials: Plant modifi cation,
cash generated from operating activities was ¥68.8 billion,
rationalization, and maintenance.
¥4.1 billion less than a year earlier.
(cid:129) Services, Engineering and Others: IT systems,
rationalization, labor-saving, and maintenance.
Cash fl ows from investing activities
(cid:129) Corporate assets: Corporate research facilities;
Cash used included ¥97.2 billion for purchase of property,
maintenance.
Cash fl ows
plant and equipment for continuing expansion of
competitively superior operations and enhancement of
overall competitiveness, ¥22.0 billion for purchase of
Free cash fl ows were a negative ¥66.9 billion as cash
intangible assets, and ¥17.5 billion for purchase of
used, principally for acquisition of noncurrent assets and
investment securities. Net cash used in investing activities
investment securities, exceeded cash generated,
was ¥135.7 billion, ¥66.6 billion more than a year earlier.
principally operating income and depreciation and
amortization. Cash fl ows from fi nancing activities,
Cash fl ows from fi nancing activities
principally increased borrowings, were a net ¥87.3 billion
In addition to ¥25.0 billion for redemption of bonds, ¥19.6
cash generated. Effect of exchange rate change on cash
billion was used for payment of parent-company dividends.
and cash equivalents was a ¥5.4 billion decrease. As a
Fund-raising including through borrowing generated
result, cash and cash equivalents at fi scal year end were
¥132.0 billion. A net ¥87.3 billion was generated by
¥98.1 billion, ¥15.1 billion more than a year earlier.
fi nancing activities, ¥109.6 billion more than a year earlier.
Free Cash Flows
Cash Flows
(¥ billion)
50
25
0
(25)
(50)
(75)
FY
(¥ billion)
150
75
0
(75)
(150)
06
07
08
FY
06
07
08
Net cash provided by operating activities
Net cash used in investing activities
Net cash provided by (used in) financing activities
42
Asahi Kasei Annual Report 2009
Risk Analysis
Operating risks and non-operating risks which may infl uence investor decisions are described below. The
management maintains awareness of the possibility that these scenarios may emerge, and measures to avoid
their emergence and to minimize their impact on corporate performance in the event that they do emerge are
implemented to the fullest possible extent.
The description of risks given here includes elements which may emerge in the future, but being based on
current evaluations as this report is being prepared it does not include risks which could not be foreseen at this time.
Crude oil and naphtha prices
Housing-related tax policy, interest rate fl uctuation
Operating costs in operations based on petrochemicals
Operations in the Homes segment are affected by
are affected by prices for crude oil and naphtha. If crude
Japanese tax policies as they relate to home acquisition
oil and naphtha prices rise, selling prices for products
and by fl uctuations in Japanese interest rates. Changes in
derived from these feedstocks must be increased in a
Japanese tax policy, including consumption taxes, or
timely manner to maintain suffi cient price spreads. Price
fl uctuations in Japanese interest rates may result in
spreads may diminish, thereby affecting our consolidated
diminished housing demand, thereby affecting our
performance and fi nancial condition.
consolidated performance and fi nancial condition.
Exchange rate fl uctuation
Profi tability of electronics-related businesses
Operations based overseas maintain accounts in the local
The electronics industry is characterized by sharp market
currency where they operate. The yen value of items
cycles. The profi tability of electronics-related businesses
carried in these accounts is affected by the rate of
may decline signifi cantly in a relatively short time, thereby
exchange at the time of conversion to yen. Although
affecting our consolidated performance and fi nancial
measures such as currency exchange hedges are utilized
condition. Because products in this fi eld rapidly become
to minimize the short-term effects of exchange rate
obsolete, the timely development and commercialization of
fl uctuations, such fl uctuations may exceed the foreseeable
leading-edge devices and materials is required. New
range over the short to long term, thereby affecting our
product development may be delayed, or demand
consolidated performance and fi nancial condition.
fl uctuations may exceed expectations, thereby affecting
our consolidated performance and fi nancial condition.
Overseas operations
Overseas operations may face a variety of risks which
Pharmaceuticals and medical devices
cannot be foreseen, including the existence or emergence
of economically unfavorable circumstances due to legal
Pharmaceutical and medical device businesses may be
and regulatory changes, vulnerability of infrastructure,
signifi cantly affected by government measures to curtail
diffi culty in hiring/retaining qualifi ed employees, or other
health care expenditure or other changes in government
factors, and social or political instability due to terrorism,
policy. Unforeseeable side effects or complications may
war, or other factors. Overseas operations may be
emerge, signifi cantly affecting these businesses. The
impaired by such scenarios, thereby affecting our
pharmaceutical business additionally faces the possibility
consolidated performance and business plans.
that product approval may be withdrawn as a result of
43
Japan’s reexamination system, and that competition may
intensify as a result of the market entry of generics. For
pharmaceuticals and medical devices under development,
regulatory approval may fail to be obtained, market
demand may be lower than expected, and the national
reimbursement prices may be lower than expected. Such
scenarios may affect our consolidated performance and
fi nancial condition.
Industrial accidents and natural disasters
The occurrence of a signifi cant industrial accident or
natural disaster at a plant or elsewhere may result in a loss
of public trust, the emergence of costs associated with
accident response, including compensation, and the
emergence of costs associated with plant shutdown,
including opportunity loss and compensation to
customers, thereby affecting our consolidated performance
and fi nancial condition.
Intellectual property, product liability, and legal
regulation
An unfavorable ruling may emerge in a dispute relating to
intellectual property, a product defect resulting in a large-
scale recall and compensation whose costs exceed
insurance coverage may emerge, and detrimental legal
and regulatory changes may emerge in any country where
we operate. Such scenarios may affect our consolidated
performance and fi nancial condition.
Irrecoverable credits
Credits extended to customers may become irrecoverable
to an unforeseeable extent, necessitating additional losses
or allowances to be recorded in fi nancial accounts, and
thereby affecting our consolidated performance and
fi nancial condition.
44
Asahi Kasei Annual Report 2009
Consolidated Balance Sheets
Asahi Kasei Corporation and consolidated subsidiaries
March 31, 2009 and 2008
ASSETS
Current assets:
Cash and deposits (Note 8 (a))
Notes and accounts receivable, trade
Millions of yen
Thousands of
U.S. dollars (Note 1)
2009
2008
2009
¥
97,969
¥
82,903
$
999,681
208,868
298,788
2,131,305
Short-term investment securities (Notes 8 (a) and 10)
406
303
4,143
Merchandise and fi nished goods (Note 3 (a))
138,098
131,505
1,409,168
Work in progress (Note 3 (a))
Raw materials and supplies (Note 3 (a))
Deferred tax assets (Note 13)
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets:
Property, plant and equipment
Buildings and structures (Note 5 (c), (e))
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles (Note 5 (c), (e))
Accumulated depreciation
Machinery, equipment and vehicles, net
Land (Note 5 (e))
Lease assets (Notes 3 (c) and 9)
Accumulated depreciation
Lease assets, net
Construction in progress
Other (Note 5 (c), (e))
Accumulated depreciation
Other, net
Subtotal
Intangible assets—
Goodwill
Other
Subtotal
82,832
52,609
18,444
85,626
(2,648)
93,597
47,269
26,130
61,239
(1,660)
845,227
536,823
188,206
873,737
(27,019)
682,205
740,075
6,961,272
381,725
(217,710)
164,014
1,138,427
(977,646)
160,781
53,740
2,540
(227)
2,313
44,140
377,385
(217,434)
159,951
1,123,378
(958,159)
165,220
54,096
—
—
—
29,339
3,895,149
(2,221,533)
1,673,616
11,616,606
(9,975,980)
1,640,626
548,372
25,922
(2,318)
23,604
450,405
109,437
103,908
1,116,700
(93,155)
16,282
(88,320)
15,588
(950,557)
166,144
441,271
424,193
4,502,766
7,449
29,935
37,384
5,707
20,519
26,226
76,013
305,459
381,472
Investments and other assets—
Investment securities (Notes 3 (e), 5 (b) and 10)
157,091
190,991
1,602,973
Long-term receivables
Deferred tax assets (Note 13)
Other
Allowance for doubtful accounts
Subtotal
2,670
28,874
29,993
(151)
4,703
12,777
26,514
(113)
27,244
294,632
306,048
(1,539)
218,477
234,873
2,229,357
Total noncurrent assets
697,132
685,292
7,113,596
Total assets
¥ 1,379,337
¥ 1,425,367
$ 14,074,868
The accompanying notes are an integral part of these statements.
45
LIABILITIES AND NET ASSETS
Liabilities:
Current liabilities—
Millions of yen
Thousands of
U.S. dollars (Note 1)
2009
2008
2009
Notes and accounts payable, trade
¥ 113,378
¥ 155,120
$ 1,156,914
Short-term loans payable (Notes 5 (c) and 18)
Commercial paper (Note 18)
Current portion of bonds (Note 18)
Lease obligations (Notes 3 (c) and 9)
Income taxes payable
100,786
55,000
20,000
489
4,097
Deferred tax liabilities (Notes 3 (e) and 13)
—
43,220
55,000
25,000
—
9,730
58
108,947
49,718
4,716
6,018
55,885
1,028,433
561,224
204,082
4,987
41,804
—
887,215
410,236
17,080
95,881
570,933
86,947
40,203
1,674
9,396
55,951
487,921
513,413
4,978,790
5,000
132,474
1,845
4,257
25,000
63,187
—
9,155
51,020
1,351,776
18,825
43,443
109,864
116,133
1,121,065
1,046
4,499
19,149
1,931
997
2,078
18,935
2,314
10,671
45,904
195,396
19,707
280,065
767,986
237,798
751,211
2,857,807
7,836,597
Accrued expenses
Advances received
Provision for repairs
Provision for product warranties (Note 2 (d) iii))
Other
Total current liabilities
Noncurrent liabilities—
Bonds payable (Note 18)
Long-term loans payable (Notes 5 (c) and 18)
Lease obligations (Notes 3 (c) and 9)
Deferred tax liabilities (Notes 3 (e) and 13)
Provision for retirement benefi ts
Provision for directors’ retirement benefi ts
Provision for repairs
Long-term guarantee deposited
Other
Total noncurrent liabilities
Total liabilities
Net assets:
Shareholders’ equity:
Capital stock—
Authorized—4,000,000,000 shares
Issued and outstanding—1,402,616,332 shares
103,389
103,389
1,054,985
Capital surplus
Retained earnings (Note 7 (b) (2))
Treasury stock—
(2009—4,070,731 shares, 2008—4,080,805 shares)
Total shareholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities (Note 3 (e))
Deferred gains or losses on hedges
Revaluation surplus (Notes 3 (b) and 5 (a))
Foreign currency translation adjustment
Total valuation and translation adjustments
Minority interest
Total net assets
Commitments and contingent liabilities (Notes 5 (d) and 9)
79,404
79,427
810,244
418,292
432,246
4,268,288
(1,946)
(2,019)
(19,858)
599,139
613,042
6,113,659
23,301
(178)
—
(18,416)
4,708
7,504
51,091
11
873
1,226
53,201
7,912
237,766
(1,813)
—
(187,916)
48,038
76,575
611,351
674,156
6,238,271
Total liabilities and net assets
¥ 1,379,337
¥ 1,425,367
$ 14,074,868
The accompanying notes are an integral part of these statements.
46
Asahi Kasei Annual Report 2009
Consolidated Statements of Income
Asahi Kasei Corporation and consolidated subsidiaries
Years ended March 31, 2009 and 2008
Net sales (Note 15)
Cost of sales (Note 6 (a), (b))
Gross profi t
Selling, general and administrative expenses (Note 6 (a))
Operating income (Note 15)
Non-operating income:
Interest income
Dividends income
Equity in earnings of affi liates
Insurance income
Other
Total non-operating income
Non-operating expenses:
Interest expense
Loss on disposal of inventories (Note 6 (b))
Foreign exchange loss
Other
Total non-operating expenses
Ordinary income
Extraordinary income:
Gain on sales of investment securities (Note 7)
Gain on sales of noncurrent assets (Note 6 (c))
Gain on change in equity
Total extraordinary income
Extraordinary loss:
Loss on sales of investment securities
Loss on valuation of investment securities
Loss on disposal of noncurrent assets (Note 6 (d))
Impairment loss (Notes 6 (e) and 15)
Environmental expenses (Note 6 (f))
Business structure improvement expenses (Notes 6 (g) and 15)
Total extraordinary loss
Income before income taxes
Income taxes (Note 13)—current
—deferred
Total income taxes
Minority interest in income
Net income
The accompanying notes are an integral part of these statements.
Millions of yen
Thousands of
U.S. dollars (Note 1)
2009
2008
2009
¥ 1,553,108
¥ 1,696,789
$ 15,848,038
1,237,815
315,293
280,333
34,959
1,288,965
407,824
280,168
127,656
12,630,767
3,217,271
2,860,543
356,728
1,021
2,594
831
1,131
2,963
8,540
4,284
—
1,359
5,356
10,999
32,500
17
524
—
540
70
721
5,943
343
1,932
5,001
14,009
19,031
8,521
5,174
13,695
592
879
3,188
3,757
941
3,335
12,100
4,202
2,658
5,428
7,012
19,300
120,456
3,432
309
559
4,300
—
1,027
6,821
4,802
2,239
3,000
1,269
19,157
105,599
34,555
450
35,005
649
10,419
26,469
8,477
11,536
30,239
87,139
43,718
—
13,869
54,652
112,238
331,629
171
5,343
—
5,514
710
7,359
60,639
3,495
19,717
—
51,032
142,952
194,192
86,945
52,797
139,741
6,036
¥
4,745
¥
69,945
$
48,414
Charge for remediation of homes delivered in previous years
—
47
Consolidated Statements of Changes in Net Assets
Asahi Kasei Corporation and consolidated subsidiaries
Years ended March 31, 2009 and 2008
Shareholders’ equity
Valuation, translation adjustments
Millions of yen
Capital
stock
Capital
surplus
Retained
earnings
(Note 7 (b))
Treasury
stock
Total
shareholders’
equity
Valuation
difference on
available-for-
sale securities
Deferred
gains or
losses on
hedges
Revaluation
surplus
(Note 5 (a))
Foreign
currency
translation
adjustment
Total
valuation,
translation
adjustments
Minority
interest
Total
net assets
Balance at March 31, 2008 ¥ 103,389 ¥ 79,427 ¥ 432,246 ¥ (2,019) ¥ 613,042 ¥ 51,091 ¥ 11 ¥ 873 ¥ 1,226 ¥ 53,201 ¥ 7,912 ¥ 674,156
Reversal of revaluation
reserve due to unifi cation
of accounting standards
at overseas subsidiaries
(Note 3 (b))
Changes during the fi scal year
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Change of scope of
equity method
Net changes of items
other than shareholders’
equity
Total changes of items
during the period
873
873
(873)
(873)
—
(19,581)
4,745
(23)
(241)
314
10
(19,581)
4,745
(241)
291
10
(19,581)
4,745
(241)
291
10
—
(23)
(14,826)
73
(14,777)
(27,790)
(189)
—
(19,642)
(47,621)
(408)
(62,805)
(27,790)
(189)
—
(19,642)
(47,621)
(408)
(48,029)
Balance at March 31, 2009 ¥ 103,389 ¥ 79,404 ¥ 418,292 ¥ (1,946) ¥ 599,139 ¥ 23,301 ¥ (178) ¥ — ¥ (18,416) ¥ 4,708 ¥ 7,504 ¥ 611,351
Shareholders’ equity
Valuation, translation adjustments
Millions of yen
Capital
stock
Capital
surplus
Retained
earnings
(Note 7 (b))
Treasury
stock
Total
shareholders’
equity
Valuation
difference on
available-for-
sale securities
Deferred
gains or
losses on
hedges
Revaluation
surplus
(Note 5 (a))
Foreign
currency
translation
adjustment
Total
valuation,
translation
adjustments
Minority
interest
Total
net assets
Balance at March 31, 2007 ¥ 103,389 ¥ 79,396 ¥ 380,515 ¥ (1,544) ¥ 561,755 ¥ 79,823
¥ 58 ¥ 1,106
¥ 2,913 ¥ 83,900 ¥ 7,855 ¥ 653,510
Changes during the fi scal year
Dividends
Net income
Purchase of treasury stock
Disposal of treasury stock
Decrease due to merger
Net increase (decrease)
in net assets others than
shareholders’ equity
Total changes during
the fi scal year
(18,188)
69,945
31
(26)
(18,188)
69,945
(542)
98
(26)
(542)
67
(18,188)
69,945
(542)
98
(26)
—
31
51,731
(475)
51,287
(28,732)
(47)
(233)
(1,687)
(30,699)
57
20,646
(28,732)
(47)
(233)
(1,687)
(30,699)
57
(30,642)
Balance at March 31, 2008 ¥ 103,389 ¥ 79,427 ¥ 432,246 ¥ (2,019) ¥ 613,042 ¥ 51,091
¥ 11 ¥ 873
¥ 1,226 ¥ 53,201 ¥ 7,912 ¥ 674,156
Thousands of U.S. dollars (Note 1)
Shareholders’ equity
Valuation, translation adjustments
Capital
stock
Capital
surplus
Retained
earnings
(Note 7 (b))
Treasury
stock
Total
shareholders’
equity
Valuation
difference on
available-for-
sale securities
Deferred
gains or
losses on
hedges
Revaluation
surplus
(Note 5 (a))
Foreign
currency
translation
adjustment
Total
valuation,
translation
adjustments
Minority
interest
Total
net assets
Balance at March 31, 2008 $ 1,054,985 $ 810,477 $ 4,410,670 $ (20,599) $ 6,255,533 $ 521,342 $ 114 $ 8,907 $ 12,507 $ 542,870 $ 80,738 $ 6,879,142
Reversal of revaluation
reserve due to unifi cation
of accounting standards
at overseas subsidiaries
(Note 3 (b))
Changes during the fi scal year
Dividends from surplus
Net income
Purchase of treasury stock
Change of scope of
equity method
Net changes of items
other than shareholders’
equity
Total changes of items
during the period
8,907
8,907
(8,907)
(8,907)
—
Disposal of treasury stock
(234)
3,200
2,966
(199,807)
48,414
(199,807)
48,414
(2,458)
(2,458)
103
103
(199,807)
48,414
(2,458)
2,966
103
—
(234)
(151,289)
742
(150,781)
(283,575)
(1,927)
—
(200,423)
(485,926)
(4,163)
(640,870)
(283,575)
(1,927)
—
(200,423)
(485,926)
(4,163)
(490,089)
Balance at March 31, 2009 $ 1,054,985 $ 810,244 $ 4,268,288 $ (19,858) $ 6,113,659 $ 237,766 $ (1,813) $ — $ (187,916) $ 48,038 $ 76,575 $ 6,238,271
The accompanying notes are an integral part of these statements.
48
Asahi Kasei Annual Report 2009
Consolidated Statements of Cash Flows
Asahi Kasei Corporation and consolidated subsidiaries
Years ended March 31, 2009 and 2008
Cash fl ows from operating activities:
Income before income taxes
Depreciation and amortization
Impairment loss
Amortization of goodwill
Amortization of negative goodwill
Increase (decrease) in provision for repairs
Increase in provision for product warranties
Decrease in provision for retirement benefi ts
Interest and dividend income
Interest expense
Equity in earnings of affi liates
Loss (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 (increase) in notes and accounts receivable, trade
Increase in inventories
Decrease in notes and accounts payable, trade
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Other, net
Subtotal
Interest and dividend income, received
Interest expense, paid
Income taxes, paid
Net cash provided by operating activities
Cash fl ows 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 sales of investments in subsidiaries resulting in change
in scope of consolidation
Payments of loans receivable
Collection of loans receivable
Other, net
Net cash used in investing activities
Cash fl ows from fi nancing activities:
Increase in short-term loans payable
Decrease in short-term loans payable
Proceeds from issuance of commercial paper
Redemption of commercial paper
Proceeds from long-term loans payable
Decrease in long-term loans payable
Redemption of bonds
Repayment of lease obligations
Purchase of treasury stock
Proceeds from disposal of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders
Other
Net cash provided by (used in) fi nancing 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 year
Increase in cash and cash equivalents resulting from change of
scope of consolidation
Cash and cash equivalents at end of year (Note 8 (a))
The accompanying notes are an integral part of these statements.
Millions of yen
Thousands of
U.S. dollars (Note 1)
2009
2008
2009
¥ 19,031
79,436
343
619
(90)
(621)
3,380
(6,011)
(3,615)
4,284
(831)
53
721
(524)
5,943
83,714
(6,737)
(37,272)
(21,530)
(9,498)
(18,728)
92,068
5,925
(4,185)
(24,996)
68,812
(97,214)
1,948
(22,016)
(17,518)
516
—
(6,374)
5,791
(839)
(135,707)
81,230
(34,439)
135,000
(135,000)
97,131
(11,947)
(25,000)
(206)
(249)
147
(19,581)
(352)
581
87,314
(5,360)
15,059
83,033
¥ 105,599
73,983
4,802
478
(171)
2,287
2,617
(9,211)
(4,067)
4,202
(3,757)
(3,432)
1,027
(309)
6,821
(104)
(33,295)
(30,571)
6,120
553
(6,168)
117,403
5,613
(4,497)
(45,572)
72,947
(68,822)
1,026
(7,384)
(2,115)
10,231
998
(9,748)
8,333
(1,654)
(69,135)
27,057
(45,147)
75,000
(20,000)
2,585
(9,258)
(34,000)
—
(551)
89
(18,174)
(145)
213
(22,330)
(219)
(18,736)
101,719
$ 194,192
810,569
3,495
6,321
(923)
(6,341)
34,491
(61,337)
(36,887)
43,718
(8,477)
539
7,359
(5,343)
60,639
854,223
(68,740)
(380,324)
(219,690)
(96,915)
(191,099)
939,468
60,462
(42,700)
(255,063)
702,167
(991,981)
19,876
(224,654)
(178,759)
5,266
—
(65,038)
59,089
(8,564)
(1,384,766)
828,876
(351,420)
1,377,551
(1,377,551)
991,133
(121,911)
(255,102)
(2,097)
(2,542)
1,496
(199,807)
(3,595)
5,925
890,957
(54,696)
153,662
847,277
—
¥ 98,092
50
¥ 83,033
—
$ 1,000,939
49
Notes to Consolidated Financial Statements
Asahi Kasei Corporation and consolidated subsidiaries
1. Major policies for preparing the consolidated fi nancial statements:
The consolidated fi nancial statements, which are fi led with the
prime minister of Japan as required by the Financial Instruments
and Exchange Act in Japan, are prepared in accordance with
accounting principles generally accepted in Japan, which are
different in certain respects from the application and disclosure
requirements of International Financial Reporting Standards. The
accompanying consolidated fi nancial statements are a translation
of those fi led with the prime minister of Japan and incorporate
certain modifi cations to enhance foreign readers’ understanding of
the fi nancial statements. In addition, the notes to the consolidated
fi nancial statements include certain fi nancial information which is
not required under the disclosure regulations in Japan, but is
presented herein as additional information. In addition, certain
reclassifi cations of previously reported amounts have been made
to conform to current classifi cations. Such modifi cations or
reclassifi cations have no effect on net income or retained earnings.
The U.S. dollar amounts presented in the fi nancial statements
are included solely for the convenience of readers. These
translations should not be construed as representations that the
Japanese yen amounts actually represent, or have been or could
be converted into U.S. dollars. As the amounts shown in U.S.
dollars are for convenience only, and are not intended to be
computed in accordance with generally accepted translation
procedures, the approximate current exchange rate of ¥98=US$1
prevailing on March 31, 2009, has been used.
Consolidation and investments in affi liated companies—
The consolidated fi nancial statements consist of the accounts of
the parent company and 103 subsidiaries (106 subsidiaries at
March 31, 2008, hereinafter collectively referred to as the “Company”)
which, with minor exceptions due to materiality, are all majority and
wholly owned companies, including 8 core operating companies
2. Signifi cant accounting policies:
(a) Cash and cash equivalents
For cash fl ow statement purposes, cash and cash equivalents
include all highly liquid investments, generally with original maturities
of three months or less, which are readily convertible to known
amounts of cash and are so near maturity that they present an
insignifi cant risk of changes in value due to changes in interest rates.
(b) Inventories
Inventories held for sale in the ordinary course of business are
stated at the lower of cost or net sales value. Residential lots and
dwellings for sale are stated at specifi cally identifi ed costs.
(c) Noncurrent assets and depreciation/amortization
Property, plant and equipment (except lease assets) are stated at
cost. Signifi cant renewals and improvements are capitalized at
cost, while maintenance and repairs are charged to income as
incurred. Depreciation is provided for under the declining-balance
method for property, plant and equipment, except for buildings
which are depreciated using the straight-line method, at rates
based on estimated useful lives of the assets, principally ranging
from fi ve to sixty years for buildings and from four to twenty-two
years for machinery and equipment.
Intangible fi xed assets (except lease assets), including software
for internal use, are amortized using the straight-line method over
the estimated useful lives of the assets. The estimated useful life
of software for internal use is mainly fi ve years.
Lease assets are depreciated/amortized on a straight-line
basis over the period of the lease with no residual value. For
(Asahi Kasei Chemicals Corp., Asahi Kasei Homes Corp., Asahi
Kasei Pharma Corp., Asahi Kasei Kuraray Medical Co., Ltd., Asahi
Kasei Medical Co., Ltd., Asahi Kasei Fibers Corp., Asahi Kasei
EMD Corp. [English name changed to Asahi Kasei Microdevices
Corp. on April 1, 2009], and Asahi Kasei Construction Materials
Corp.), Tong Suh Petrochemical Corp. Ltd. (Korea), and Sanyo
Petrochemical Co., Ltd. Material inter-company transactions and
accounts have been eliminated.
Investments in unconsolidated subsidiaries and 20% to 50%
owned companies in which the Company exercises signifi cant
infl uence are accounted for, with minor exceptions due to materiality,
using the equity method of accounting. There were 51 such
unconsolidated subsidiaries and 20% to 50% owned companies
to which the equity method is applied at March 31, 2009 (50 at
March 31, 2008), including Asahi Kasei Metals Ltd., Asahi Kasei
Finechem Co., Ltd., and Asahi Organic Chemicals Industry Co., Ltd.
Certain subsidiaries results are reported in the consolidated
fi nancial statements using a December 31 or a February 28
year-end. Material differences in inter-company transactions and
accounts arising from the use of different fi scal year-ends are
appropriately adjusted for through consolidation procedures.
The excess of the cost over the underlying net equity of
investments in subsidiaries and affi liated companies accounted for
using the equity method of accounting is allocated to identifi able
assets and liabilities based on fair values at the date of acquisition.
The unassigned residual value of the excess of the cost over the
underlying net equity is recognized as goodwill or negative good-
will. The Company amortizes goodwill and negative goodwill using
the straight-line method over the estimated period of benefi t over
a fi ve or twenty-year period, with the exception of minor amounts,
which are charged to income in the year of acquisition.
fi nancial lease transactions without title transfer whose transaction
date is before March 31, 2008, the previous method of accounting
for lease transactions continues to be applied, with periodic lease
charges for fi nancing leases charged to income as incurred. (See
(c) Application of Accounting Standard for Lease Transactions and
related guidance., Sec. 3 Changes in signifi cant accounting policies.)
(d) Signifi cant allowances
i) Allowance for doubtful accounts
Estimates of the unrecoverable portion of receivables, generally
based on historical rates and for specifi c receivables of particular
concern based on individual estimates of recoverability, are
recognized as allowance for doubtful accounts.
ii) Provision for repairs
The portion of foreseeable repair expenses deemed to corre-
spond to normal wear and tear of plant and equipment as of
the closing date of the consolidated fi scal period is recognized
as provision for repairs.
iii) Provision for product warranties
Estimates of product warranty expenses based on historical
rates and the amount required for remediation of defi cient
eave assembly specifi cation are recognized as provision for
product warranties.
iv) Provision for retirement benefi ts
Provision for retirement benefi ts represent the estimated present
value of projected benefi t obligations in excess of the fair value
of the plan assets. Unrecognized actuarial gains/losses,
50
Asahi Kasei Annual Report 2009
resulting from variances between actual results and economic
estimates or actuarial assumptions, are amortized on a straight-
line basis primarily over the following ten years. Unrecognized
prior service costs are amortized on a straight-line basis
primarily over the following ten years.
v) Provision for directors’ retirement benefi ts
Provision is made for lump-sum indemnities to directors and
corporate auditors equal to the estimated liability calculated
under the internal rules of the Company.
(e) Financial instruments
i) Securities
Securities are classifi ed into four categories; trading securities,
held-to-maturity debt securities, equity securities of unconsoli-
dated subsidiaries and affi liates, and other securities. At March
31, 2009 and 2008, the Company did not have trading securities
or held-to-maturity debt securities.
Equity securities of unconsolidated subsidiaries and affi liates
are accounted for, with minor exceptions due to materiality,
using the equity method of accounting.
Other securities whose fair values are readily determinable
are carried at fair value with net unrealized gains or losses
included as a component of net assets, net of related taxes.
Other securities whose fair values are not readily determinable
are stated at cost. In cases where any signifi cant decline in the
realizable value is assessed to be other than temporary, the
cost of other securities is devalued by the impaired amount
and is charged to income.
Realized gains and losses are determined using the average
cost method and are refl ected in the income statement.
ii) Derivative fi nancial instruments
All derivatives are stated at fair value. Gains or losses arising
from changes in fair value are charged or credited to income for
the period in which they arise, except for derivatives that are
designated as hedging instruments. Gains or losses arising from
3. Changes in signifi cant accounting policies:
(a) Accounting Standards for Measurement of Inventories
The Accounting Standards Board of Japan (ASBJ) issued ASBJ
Statement No. 9, “Accounting Standards for Measurement of
Inventories.” The Company has adopted the Standard, effective
from the fi scal year ended March 31, 2009, while inventories were
stated at the lower of cost or market value (residential lots and
dwellings of sale were stated at specifi cally identifi ed costs) until
previous years. The Standard requires that inventories held for sale
in the ordinary course of business are stated at the lower of cost or
net sales value. The effect is to lower operating income by ¥12,923
million (US$131,864 thousand), ordinary income and income
before income taxes by ¥2,536 million (US$25,882 thousand),
respectively than they would have been using the previous method.
Further, losses on devaluation of inventories using the previous
method have been recorded in the non-operating expenses
previously, whereas loss on devaluation of inventories is currently
recorded in the cost of sales. The effect is to lower operating
income by ¥10,386 (US$105,982 thousand) than it would have
been using the previous method.
In addition, whereas loss on disposal of inventories was previously
classifi ed in non-operating expenses, it is currently classifi ed into
the cost of sales with the application of the Accounting Standard.
The effect is to lower operating income by ¥3,933 million (US$40,134
thousand) than it would have been using the previous method.
changes in fair value of these qualifying hedges are deferred
as “Deferred gains or losses on hedges” to be offset against
gains or losses of the underlying hedged assets and liabilities.
(f) Taxes
Accrued income taxes are stated at the estimated amount payable
for corporation, enterprise, and inhabitant taxes. The asset and
liability approach is used to recognize deferred tax assets and
liabilities for the expected future tax consequences of temporary
differences between the carrying amounts and the tax bases of
assets and liabilities.
In Japan, the consumption tax system is designed so that all
goods and services are taxed at a fl at rate of 5% unless specifi ed
otherwise. Assets, liabilities, and profi t and loss accounts are
stated net of consumption tax.
The Company has elected to fi le its return under the consolidated
tax fi ling system.
(g) Translation of foreign currencies
Foreign currency receivables and payables are translated into
Japanese yen at the exchange rates prevailing at the balance
sheet date. Resulting gains and losses are charged or credited to
income for the period.
Assets and liabilities of foreign subsidiaries and 20% to 50%
owned companies accounted for using the equity method of
accounting are translated into Japanese yen at year-end
exchange rates, and income and expenses of same are translated
into Japanese yen at the average exchange rate for the fi scal
year. Shareholders’ equity of foreign subsidiaries and 20% to 50%
owned companies is translated into Japanese yen at the historical
exchange rates. The translation differences in Japanese yen
amounts arising from the use of different rates are recognized as
foreign currency translation adjustment in the balance sheets.
A portion of the foreign currency translation adjustment is allo-
cated to “Minority interest” and the Company’s portion is presented
as a separate component of net assets in the balance sheets.
The effect of this application by industry segment is presented
in Note 15.
(b) Practical Solution on Unifi cation of Accounting Policies
Applied to Foreign Subsidiaries for Consolidated
Financial Statements
ASBJ issued ASBJ Practical Issues Task Force No. 18, “Practical
Solution on Unifi cation of Accounting Policies Applied to Foreign
Subsidiaries for Consolidated Financial Statements.” The Company
has adopted the Standard in the fi scal year ended March 31, 2009,
and necessary adjustments have been made for consolidation
accounts. The effect of the application is not signifi cant.
(c) Accounting Standard for Lease Transactions and
its Implementation Guidance
ASBJ issued ASBJ Statement No. 13, “Accounting Standard for
Lease Transactions” and ASBJ Guidance No. 16, “Guidance on
Accounting Standard for Lease Transactions.” The Company has
adopted these Standards, effective form the fi scal year ended
March 31, 2009, that require the fi nance lease transactions, which
do not transfer its ownership, to be accounted for in a similar manner
with ordinary sale and purchase transactions. Previously, fi nance
lease transactions that do not transfer ownership to be accounted
for in a manner similar to accounting treatment for ordinary rental
transactions. At the inception of the lease, a lessee shall recognize
the leased asset and the related lease obligation at present value.
51
Depreciation expenses arising from a leased asset in a fi nance
lease transaction that does not transfer ownership shall be calcu-
lated based on the assumption that the useful life equals to the
lease term and the residual value equals to zero. Depreciation is
provided for under the straight-line method.
With respect to lease transactions whose commencement
day falls prior to the fi rst year of implementation of the Accounting
Standard, the accounting treatment has continued to be applied
for similar method used for ordinary rental transactions. The
impact of this change is immaterial.
(d) Change in translation method of income and expenses
of foreign subsidiaries and affi liates
Previously income and expense accounts of foreign subsidiaries
and affi liates were translated at the prevailing exchange rates at
fi scal year end of the subsidiaries and the affi liates. However,
effective from the fi scal year ended March 31, 2009, the conversion
rate into reporting currency in Japanese yen is changed to use
the average exchange rate during the period. This change allows
more realistic translations of all income and expense items that
accrue during the fi scal year.
The effect is to increase net sales by ¥21,505 million
(US$219,439 thousand), operating income by ¥1,235 million
(US$12,597 thousand), ordinary income by ¥1,559 million
(US$15,906 thousand), income before income taxes by ¥1,330
million (US$13,567 thousand), and net income by ¥921 million
(US$9,397 thousand), than they would have been using the previous
method. The effect by industry segment is shown in Note 15.
(e) Changes in a valuation basis of other securities
Effective for the year ended March 31, 2009, the Company has
changed its accounting method relating to valuation of fair value
for such equity securities from using mark-to-market on an average
current-value for one month prior to the year end to mark-to-market
on a current value as of the year end. This change was applied
for in order to present the fi nancial condition in better.
As a result, investment securities are increased by ¥1,758 million
(US$17,941 thousand), deferred tax liabilities by ¥714 million
(US$7,283 thousand), valuation difference on available-for-sale
securities by ¥1,040 million (US$10,615 thousand), and income
before income taxes by ¥4 million (US$43 thousand), respectively
than they would have been using the previous basis.
4. Additional information:
With regard to the cost of remediation work to restore defi cient eave
assembly specifi cations for certain order-built homes delivered by
consolidated subsidiary Asahi Kasei Homes Corp. other than that
attributable to the company, a memorandum has been concluded
with the supplier of soffi t panels, and expenses forecast to be
incurred are seen to be recoverable.
Expenses forecast for remediation work including that
attributable to the company are included in provision for product
warranties in the consolidated balance sheets, and the amount to
be recovered from the supplier is included in other under current
assets and in other under investments and other assets in the
consolidated balance sheets.
5. Notes to Consolidated Balance Sheets:
(a) Revaluation surplus
A revaluation surplus which had been recorded by a consolidated foreign subsidiary in accordance with applicable law was reversed in
the year ended March 31, 2009, due to the application of Practical Solution on Unifi cation of Accounting Policies Applied to Foreign
Subsidiaries for Consolidated Financial Statements. (See Note 3 (b).)
(b) Investment securities
Among investment securities, shares of unconsolidated subsidiaries and affi liates as of March 31, 2009 and 2008, amounted to
¥62,170 million (US$634,384 thousand) and ¥51,247 million, respectively. Included in those amounts are investments in joint ventures of
¥25,583 million (US$261,047 thousand) and ¥17,238 million, respectively.
(c) Hypothecated assets and secured debt
A summary of assets pledged as collateral and secured debt as of March 31, 2009 and 2008, is shown below:
Hypothecated assets
Buildings and structures
Machinery, equipment and vehicles
Land
Other
Secured debt
Short-term loans payable
Long-term loans payable
Millions of yen
2009
¥ 534
21
—
1
¥ 556
¥ 4
8
¥ 12
2008
¥ 642
34
97
1
¥ 774
¥ 113
757
¥ 870
Thousands of
U.S. dollars
2009
$ 5,446
217
—
6
$ 5,669
$
46
79
$ 124
Besides the above, investment securities pledged to suppliers as transaction guarantee at March 31, 2009 and 2008, were ¥80 million
(US$817 thousand) and ¥112 million, respectively.
52
Asahi Kasei Annual Report 2009
(d) Contingent liabilities
Contingent liabilities at March 31, 2009 and 2008, arising in the ordinary course of business are as follows:
Loans guaranteed
Commitment for guarantees
Letters of awareness
Completion guarantees
Notes discounted
Millions of yen
2009
¥ 8,525
1,394
637
4,764
152
2008
¥ 9,737
1,738
267
—
208
Thousands of
U.S. dollars
2009
$ 86,991
14,221
6,500
48,614
1,554
¥ 15,472
¥ 11,950
$ 157,880
The parent company and certain of its subsidiaries and affi liates are defendants in several pending lawsuits. However, based upon
the information currently available to both the Company and its legal counsel, management of the Company believes that any damages
from such lawsuits will not have a material effect on the Company’s consolidated fi nancial statements.
(e) Reduction entries due to state subsidies, etc.
Cumulative reduction entries due to state subsidies, etc. for the acquisition of property, plant and equipment as of March 31, 2009 and
2008, were ¥4,078 million (US$41,609 thousand) and ¥2,454 million, respectively. The breakdown of reduction entries as of March 31,
2009, is as follows:
Buildings and structures
Machinery, equipment and vehicles
Land
Other
6. Notes to Consolidated Statements of Income:
(a) Selling, general and administrative expenses
Major components of selling, general and administrative expenses are as follows:
Freight and storage
Salaries and benefi ts
Research and development (*)
Millions of yen
2009
¥ 2,105
1,622
238
112
¥ 4,078
Thousands of
U.S. dollars
2009
$ 21,480
16,551
2,431
1,147
$ 41,609
Millions of yen
2009
¥ 33,940
88,988
43,249
2008
¥ 35,086
89,729
39,618
Thousands of
U.S. dollars
2009
$ 346,331
908,037
441,318
(*) The aggregate amounts of research and development expenses included in manufacturing costs and selling, general and administrative expenses for the years ended March 31, 2009 and
2008, were ¥60,849 million (US$620,909 thousand) and ¥56,170 million, respectively.
(b) Loss on devaluation of inventories
Inventories held for sale in the ordinary course of business are stated at the lower of cost or net sales value as of March 31, 2009. Loss
on devaluation of inventories of ¥12,923 million (US$131,864 thousand) was included in cost of sales for the year ended March 31, 2009.
(c) Gain on sales of noncurrent assets
Gain on sales of noncurrent assets for the years ended March 31, 2009 and 2008, was primarily gain on the sale of land, etc. amounting
to ¥514 million (US$5,245 thousand) and ¥253 million, respectively.
(d) Loss on disposal of noncurrent assets
Loss on disposal of noncurrent assets for the years ended March 31, 2009 and 2008, was primarily loss on abandonment and sale, etc.
of buildings, machinery and equipment, etc. The abandonment and sale of buildings, machinery and equipment, etc. was performed
under a single, all-inclusive contract for each facility.
53
(e) Impairment loss
Impairment loss for the years ended March 31, 2009 and 2008, was as follows:
Use
Asset class
Location
Production facility for autoclaved aerated
concrete (AAC) panels and others
Machinery and
equipment, etc.
Shiraoi, Hokkaido, and
elsewhere
Production facility for polyester fi lament Machinery and
Nobeoka, Miyazaki
Production facility for functional food
additives
Production facility for fi ne-pattern
devices
equipment, etc.
Machinery and
equipment, etc.
Machinery and
equipment, etc.
Shiraoi, Hokkaido
Hyuga, Miyazaki
2009
¥ 754
264
112
79
Millions of yen
2008
Thousands of
U.S. dollars
2009
¥ —
$ 7,691
3,753
—
1,049
2,694
1,142
801
Grouping of operating assets is based on managerial accounting categories, with consideration given to production process, geographic
location, and domain of authority for making investment decisions. Idle assets are recorded separately in each fi xed assets class.
With respect to assets shown in the above table, the book value was reduced to the recoverable amount due to diminished profi tability.
The recoverable amount is stated as future cash fl ow less 5% as measured by usability value. The resulting extraordinary loss for production
facility for autoclaved aerated concrete (AAC) panels and others and for production facility for functional food additives was recorded
under business structure improvement expenses for the year ended March 31, 2009.
(f) Environmental expenses
Environmental expenses for the years ended March 31, 2009 and 2008, were mainly for decontamination of idle land etc.
(g) Business structure improvement expenses
Major components of the business structure improvement expenses are as follows:
Loss on disposal and devaluation of assets and others
Impairment of fi xed assets
Loss on liquidation of subsidiaries and others
7. Notes to Consolidated Statements of Changes in Net Assets:
(a) Class and total number of issued and outstanding shares and treasury stock
Millions of yen
2009
¥ 3,271
866
865
¥ 5,001
2008
¥ 1,123
—
146
¥ 1,269
Thousands of
U.S. dollars
2009
$ 33,376
8,833
8,823
$ 51,032
Issued and outstanding shares
Capital stock
Total
Treasury stock
Capital stock (Notes 1 & 2)
Total
Number of
shares as of
March 31, 2008
Increase in
number of shares
during the fi scal year
Decrease in
number of shares
during the fi scal year
Number of
shares as of
March 31, 2009
Thousands of shares
1,402,616
1,402,616
4,081
4,081
—
—
530
530
—
—
540
540
1,402,616
1,402,616
4,071
4,071
Notes: 1. The increase of 530 thousand shares in capital stock of treasury stock was due to purchase of shares in quantities of less than one share unit.
2. Of the decrease of 540 thousand shares in capital stock of treasury stock, a decrease of 348 thousand was due to sale of shares in quantities of less than one share unit, and a decrease
of 193 thousand was the portion of the Company’s shares which had been recorded as the Company’s treasury stock which were sold by an affi liate for which the equity method applies.
(b) Dividends
(1) Cash dividends paid
a) The following was resolved by the Board of Directors on May 8, 2008.
Regarding dividends for capital stock
Total dividends
Dividend per share
Date of record
Payment date
¥9,791 million (US$99,909 thousand)
¥7.00 (US$0.07)
March 31, 2008
June 6, 2008
54
Asahi Kasei Annual Report 2009
b) The following was resolved by the Board of Directors on November 5, 2008.
Regarding dividends for capital stock
Total dividends
Dividend per share
Date of record
Payment date
¥9,790 million (US$99,898 thousand)
¥7.00 (US$0.07)
September 30, 2008
December 1, 2008
(2) Dividends for which the date of record falls within the fi scal year under review but the payment date occurs in the
following fi scal year
a) The following was resolved by the Board of Directors on May 12, 2009.
Regarding dividends for capital stock
Total dividends
Source of dividends
Dividend per share
Date of record
Payment date
¥4,196 million (US$42,813 thousand)
Retained earnings
¥3.00 (US$0.03)
March 31, 2009
June 3, 2009
8. Note of Consolidated Statements of Cash Flows:
(a) Cash and cash equivalents
Reconciliation of cash and cash equivalents on the consolidated statements of cash fl ows to the amounts disclosed on the balance
sheets at March 31, 2009 and 2008, is as follows:
Cash and deposits
Time deposits with deposit term of over 3 months
Money market funds, medium-term government bond funds, and others included
in marketable securities
Cash and cash equivalents
9. Leases:
(a) Financial lease transactions
Financial lease transactions without title transfer
i) Components of lease assets are as follows:
Millions of yen
2009
¥ 97,969
(163)
286
¥ 98,092
2008
¥ 82,903
(170)
300
¥ 83,033
Thousands of
U.S. dollars
2009
$ 999,681
(1,662)
2,919
$ 1,000,939
a) Property, plant and equipment: Mainly model homes (buildings and structures) for housing operations.
b) Intangible fi xed assets: Software.
ii) Depreciation of lease assets:
As stated in 2. Signifi cant accounting policies (c) Noncurrent assets and depreciation/amortization. For fi nancial lease transactions
without title transfer whose transaction date is before March 31, 2008, the previous method of accounting for lease transactions
continues to be applied.
The cost of the assets and the related accumulated amortization, computed using the straight-line method over the term of the
lease, at March 31, 2009 and 2008, would have been as follows:
Buildings and structures
Machinery, equipment and vehicles
Property, plant and equipment—other
Intangible fi xed assets—other
Millions of yen
2009
Accumulated
amortization
¥ 6,418
191
926
223
¥ 7,758
Net amount
¥ 3,433
160
534
187
¥ 4,315
Cost
¥ 9,851
351
1,460
410
¥ 12,072
55
Millions of yen
2008
Accumulated
amortization
¥ 8,421
258
972
242
¥ 9,892
Thousands of U.S. dollars
2009
Accumulated
amortization
$ 65,489
1,949
9,452
2,271
$ 79,160
Cost
¥ 15,191
457
1,837
527
¥ 18,012
Cost
$ 100,521
3,582
14,903
4,180
$ 123,186
Net amount
¥ 6,770
199
866
285
¥ 8,120
Net amount
$ 35,032
1,633
5,451
1,910
$ 44,026
Buildings and structures
Machinery, equipment and vehicles
Property, plant and equipment—other
Intangible fi xed assets—other
Buildings and structures
Machinery, equipment and vehicles
Property, plant and equipment—other
Intangible fi xed assets—other
The future lease payments under the Company’s fi nancing leases and non-cancelable operating leases at March 31, 2009 and 2008,
including amounts representing interest, were as follows:
Due within one year
Due after one year
Millions of yen
2009
¥ 2,353
1,961
¥ 4,315
2008
¥ 3,761
4,359
¥ 8,120
Thousands of
U.S. dollars
2009
$ 24,014
20,012
$ 44,026
Lease charges were ¥3,459 million (US$35,293) and ¥4,628 million for the years ended March 31, 2009 and 2008, respectively. The
amortization amounts of the leased assets, computed using the straight-line method over the term of the leases and no residual value,
were ¥3,459 million (US$35,293 thousand) and ¥4,628 million for the years ended March 31, 2009 and 2008, respectively.
No impairment loss is allocated to the leased assets.
(b) Operating lease transactions
Future lease payments for the non-cancelable portion of the Company’s operating leases at March 31, 2009, were as follows:
Due within one year
Due after one year
Millions of yen
2009
¥ 4,525
16,172
¥ 20,696
Thousands of
U.S. dollars
2009
$ 46,170
165,017
$ 211,187
10. Marketable securities and investment securities:
(a) Other securities with available fair value—
The aggregate cost, carrying amount which was identical to fair value, and gross unrealized gains and losses of debt and equity securities
classifi ed as other securities for which fair values were available at March 31, 2009 and 2008, were as follows:
Securities with unrealized gains:
Equity securities
Securities with unrealized losses:
Equity securities
Debt securities
Millions of yen
2009
Carrying
amount
Cost
Unrealized gains
(losses)
¥ 32,070
¥ 73,118
¥ 41,048
11,177
0
11,177
¥ 43,247
9,478
0
9,478
¥ 82,596
(1,700)
—
(1,700)
¥ 39,349
56
Asahi Kasei Annual Report 2009
Securities with unrealized gains:
Equity securities
Securities with unrealized losses:
Equity securities
Debt securities
Securities with unrealized gains:
Equity securities
Securities with unrealized losses:
Equity securities
Debt securities
Millions of yen
2008
Carrying
amount
Cost
Unrealized gains
(losses)
¥ 37,310
¥ 123,847
¥ 86,537
3,943
23
3,966
¥ 41,276
Cost
3,261
23
3,283
¥ 127,130
(683)
—
(683)
¥ 85,854
Thousands of U.S. dollars
2009
Carrying
amount
Unrealized gains
(losses)
$ 327,243
$ 746,102
$ 418,859
114,055
1
114,055
$ 441,298
96,712
1
96,713
$ 842,815
(17,342)
—
(17,342)
$ 401,517
Losses on devaluation of other securities whose fair values are readily determinable for the years ended March 31, 2009 and 2008,
totaled ¥497 million (US$5,074 thousand) and ¥404 million, respectively.
(b) The realized gains and losses on the sale of other securities during the year ended March 31, 2009 and 2008, were as follows:
Selling amount
Gain on sales of securities
Loss on sales of securities
Millions of yen
2009
¥ 463
17
70
2008
¥ 8,673
3,278
—
Thousands of
U.S. dollars
2009
$ 4,728
171
712
(c) The carrying amounts of other securities for which fair values were not readily determinable at March 31, 2009 and 2008, were as follows:
Equity investment in funds
Equity investment in nonpublic companies
Millions of yen
2009
¥ 8,001
3,907
2008
¥ 5,001
6,980
Thousands of
U.S. dollars
2009
$ 81,639
39,869
(d) Redemption schedules for maturity of debt securities at March 31, 2009 and 2008, were as follows:
Debt securities:
Government and municipal bonds
Corporate bonds
Debt securities:
Government and municipal bonds
Corporate bonds
Millions of yen
2009
Due within one year
Due after one year,
within fi ve years
Due after fi ve years,
within ten years
Due after more than
ten years
¥ 2
120
¥ 122
¥ 7
—
¥ 7
¥ —
—
¥ —
¥ —
—
¥ —
Millions of yen
2008
Due within one year
Due after one year,
within fi ve years
Due after fi ve years,
within ten years
Due after more than
ten years
¥ 5
—
¥ 5
¥ 9
120
¥ 129
¥ —
—
¥ —
¥ —
—
¥ —
57
Debt securities:
Government and municipal bonds
Corporate bonds
11. Derivative fi nancial instruments:
Thousands of U.S. dollars
2009
Due within one year
Due after one year,
within fi ve years
Due after fi ve years,
within ten years
Due after more than
ten years
$
23
1,224
$ 1,247
$ 70
—
$ 70
$ —
—
$ —
$ —
—
$ —
The Company operates internationally, giving rise to exposure to
market risks from fl uctuations in foreign currency exchange and
interest rates. In the normal course of its risk management efforts,
the Company uses a variety of derivative fi nancial instruments,
which include foreign currency forward exchange contracts,
interest rate swap agreements and currency swap agreements, to
reduce its exposures. In accordance with the Company’s policy,
these fi nancial instruments are utilized solely for hedging purposes
and the Company does not hold or issue fi nancial instruments for
trading or speculation purposes.
The Company has entered into foreign currency forward
exchange contracts with banks as hedges against receivables
and payables denominated in foreign currencies. As these foreign
currencies forward exchange contracts are utilized solely for
hedging purposes, the resulting gains or losses are offset against
foreign exchange gains or losses on the underlying hedged assets
and liabilities.
Interest rate swap agreements and currency swap agreements
are used to limit the Company’s exposure to losses in relation to
interest expense from adverse fl uctuations in foreign currency
exchange and interest rates. The related differentials to be paid or
received under the interest rate swap agreements are recognized
in interest expense over the terms of the agreements. Currency
swap agreements are accounted for in a manner similar to that
used for foreign currency forward exchange contracts. Interest rate
swap agreements for housing loan securitization transactions are
used to reduce interest volatility risk between the time of execution
of housing loans and the time of execution of their securitization.
The Company does not anticipate any credit loss from non-
performance by the counter-parties to foreign currency forward
exchange contracts, interest rate swap agreements, or currency
swap agreements.
Hedging accounting is applied for all derivative fi nancial
instruments of the Company other than those for housing loan
securitization, with gains or losses arising from changes in fair value
deferred as “Deferred gains or losses on hedges” to be off-set
against foreign exchange gains or losses on the underlying
hedged assets and liabilities.
The fair value of the housing loan securitization transactions as of March 31, 2009 and 2008, was as follows:
Classifi cation
Items
Dealings other than market
dealings
Interest rate swap
receipt change /
payment fi xation
Amount of contract
(Amount of contract over 1 year)
Fair value
Profi t (loss) from valuation
12. Provision for retirement benefi ts:
Millions of yen
2009
¥ 750
—
8
8
2008
¥ 1,700
—
(46)
(46)
Thousands of
U.S. dollars
2009
$ 7,653
—
77
77
Upon terminating employment, employees of the parent company
and its major subsidiaries in Japan are entitled, under most circum-
stances, to lump-sum severance indemnities and/or pension
payments determined by reference mainly to their current basic
rate of pay and length of service. Additional benefi ts may be
granted to employees depending on the conditions under which
termination of employment occurs. Certain foreign subsidiaries
have defi ned benefi t pension plans or defi ned contribution plans.
The obligation for these severance indemnity benefi ts is provided
for through accruals, contributory funded defi ned benefi t pension
plans, contributory funded defi ned benefi t enterprise pension
plans and non-contributory funded tax-qualifi ed pension plans.
Information on provision for retirement benefi ts at March 31, 2009 and 2008, was as follows:
(a) Projected benefi t obligations
(b) Fair value of plan assets
(c) Unfunded benefi t obligations [(a)+(b)]
(d) Unrecognized actuarial gains/losses
(e) Unrecognized prior service costs
(f) Amount shown on balance sheet [(c)+(d)+(e)]
(g) Prepaid pension cost
(h) Provision for retirement benefi ts [(f)-(g)]
Millions of yen
2009
2008
Thousands of
U.S. dollars
2009
¥ (296,676)
¥ (297,343)
$ (3,027,310)
152,927
(143,749)
45,072
(5,615)
(104,292)
5,572
190,955
(106,388)
2,639
(7,009)
1,560,484
(1,466,826)
459,921
(57,300)
(110,758)
(1,064,204)
5,374
56,861
¥ (109,864)
¥ (116,133)
$ (1,121,065)
Note: The fi gures in the above table do not include additional benefi t payables amounting to ¥59 million (US$597 thousand) and ¥310 million at March 31, 2009 and 2008, respectively. The
amounts were recorded as part of current liabilities on the consolidated balance sheets at March 31, 2009 and 2008.
58
Asahi Kasei Annual Report 2009
Periodic retirement benefi t expenses for employees for the years ended March 31, 2009 and 2008, include the following components:
Service cost*
Interest cost
Expected return on plan assets
Amortization of unrecognized actuarial gains/losses
Amortization of unrecognized prior service costs
Retirement benefi t expenses
Millions of yen
2009
¥ 8,896
7,282
(4,728)
(249)
(1,394)
2008
¥ 8,856
7,325
(5,289)
(2,814)
(1,393)
Thousands of
U.S. dollars
2009
$ 90,777
74,303
(48,242)
(2,544)
(14,227)
¥ 9,807
¥ 6,685
$ 100,068
Note: In addition to the above costs, additional benefi ts amounting to ¥453 million (US$4,619 thousand) and ¥1,303 million were charged to income for the years ended March 31, 2009 and
2008, respectively.
* Not including contributions made by employees.
The assumptions used in calculation of the above information are as follows:
Discount rate
Expected rate of return on plan assets
2009
2.5%
2.5%
2008
2.5%
2.5%
Method of attributing the projected benefi ts to periods of employee service
Straight-line basis
Straight-line basis
Amortization of unrecognized prior service costs
Amortization of unrecognized actuarial gains/losses
Mainly 10 years
Mainly 10 years
Mainly 10 years
Mainly 10 years
13. Taxes:
Income taxes applicable to the parent company and subsidiaries in Japan include (1) corporation tax, (2) enterprise tax, and (3) inhabitants tax.
Signifi cant components of the deferred tax assets and liabilities at March 31, 2009 and 2008, were as follows:
Deferred tax assets:
Provision for retirement benefi ts
Tax loss carryforwards
Accrued bonuses
Loss on disposal of noncurrent assets
Unrealized gain on noncurrent assets and others
Impairment loss
Provision for repairs
Devaluation of investment securities
Devaluation of inventories
Provision for product warranties
Environmental expenses
Depreciation
Allowance for doubtful accounts
Accrued enterprise tax
Other
Subtotal deferred tax assets
Less: Valuation allowance
Total deferred tax assets
Deferred tax liabilities:
Valuation difference on available-for-sale securities
Reserve for noncurrent assets reduction
Reserve for special depreciation
Other
Total deferred tax liabilities
Net deferred tax assets
Millions of yen
2009
2008
Thousands of
U.S. dollars
2009
¥ 44,448
¥ 46,847
$ 453,550
14,736
6,496
3,764
3,225
2,887
2,396
2,141
1,947
1,418
1,030
934
801
692
8,452
95,366
(15,016)
80,350
(18,479)
(13,585)
(164)
(5,061)
(37,289)
5,795
8,722
6,826
4,354
3,897
2,644
1,401
2,817
2,501
874
551
476
1,409
8,741
97,854
(11,770)
86,084
(37,484)
(14,235)
(537)
(4,134)
(56,390)
150,368
66,289
38,407
32,907
29,458
24,444
21,843
19,869
14,473
10,508
9,527
8,175
7,056
86,247
973,122
(153,226)
819,896
(188,563)
(138,619)
(1,672)
(51,647)
(380,502)
¥ 43,061
¥ 29,694
$ 439,394
59
Net deferred tax assets (liabilities) at March 31, 2009 and 2008, were included in the following entries on the consolidated balance sheets.
Current assets—Deferred tax assets
Non-current assets—Deferred tax assets
Current liabilities—Deferred tax liabilities
Non-current liabilities—Deferred tax liabilities
Millions of yen
2009
¥ 18,444
28,874
—
(4,257)
2008
¥ 26,130
12,777
(58)
(9,155)
Thousands of
U.S. dollars
2009
$ 188,206
294,632
—
(43,443)
Reconciliation of the differences between the statutory tax rate and the effective income tax rate for the year ended March 31, 2009
and 2008, was as follows:
Statutory tax rate
2009
40.7%
Statutory tax rate
Increase (reduction) in taxes resulting from:
Increase (reduction) in taxes resulting from:
Non-deductible expenses and non-taxable income
15.0
Non-deductible expenses and non-taxable income
Equalization of inhabitants taxes
Amortization of goodwill
Equity in earnings of unconsolidated
subsidiaries and affi liates
Difference of tax rates for foreign subsidiaries
Valuation allowance
Unrealized profi t
Consolidated tax fi ling system
Other
Effective income tax rate
2.2
0.9
(2.4)
(5.5)
17.1
8.0
(3.8)
(0.3)
Equalization of inhabitants taxes
R&D expenses tax credit from income taxes
Amortization of goodwill
Equity in earnings of unconsolidated
subsidiaries and affi liates
Difference of tax rates for foreign subsidiaries
Other
72.0%
Effective income tax rate
2008
40.7%
2.7
0.4
(4.7)
0.2
(1.5)
(3.3)
(1.3)
33.2%
14. Business combinations, etc.:
1. Transactions under common control, etc.
Transactions under common control, etc. in the fi scal year ended
March 31, 2009, were as follows:
a) Transfer of common shares by Corporate Split under Company
Law of Asahi Kasei Kuraray Medical Co., Ltd., and Asahi Kasei
Medical Co., Ltd., subsidiaries of Asahi Kasei Pharma Corp., a
consolidated subsidiary of Asahi Kasei Corp.
i. Names of entities combining subject to transaction
Asahi Kasei Corp., Asahi Kasei Pharma Corp.
ii. Nature of businesses
Shares of Asahi Kasei Kuraray Medical Co., Ltd. and
Asahi Kasei Medical Co., Ltd., companies engaged in
medical-related operations.
v. Outline of transaction including purpose of transaction
Medical-related operations are positioned as a fi eld of focus
for growth in the Asahi Kasei Group, and a growth strategy
including proactive business development and capital
expenditure has been advanced. For continuous growth from
fi scal 2010 onward, reconfi guration of the management
confi guration was considered necessary.
The transfer of common shares of Asahi Kasei Kuraray
Medical Co., Ltd. and Asahi Kasei Medical Co., Ltd. to Asahi
Kasei Corp. will both clarify medical-related operations as a
fi eld of focus for growth in the Asahi Kasei Group and facilitate
greater management effi ciency in a structure for swift execution
of strategic decisions and resource investment.
iii. Statutory form of business combination
b) Outline of the accounting treatment implemented
Transfer of common shares of Asahi Kasei Kuraray Medical
Co., Ltd. and Asahi Kasei Medical Co., Ltd., owned by Asahi
Kasei Pharma Corp., to Asahi Kasei Corp. by Corporate Split
under Corporate Law.
iv. Name of company after transaction
Asahi Kasei Corp. (unchanged)
Asahi Kasei Pharma Corp. (unchanged)
Asahi Kasei Kuraray Medical Co., Ltd. (becoming a subsidiary
of Asahi Kasei Corp.)
Asahi Kasei Medical Co., Ltd. (becoming a subsidiary of
Asahi Kasei Corp.)
This transaction was accounted for as a transaction under
common control based on the Accounting Standard for
Business Combinations issued by the Business Accounting
Council in Japan and Guidance on Accounting Standard for
Business Combinations and Accounting Standard for Business
Divestitures (Accounting Standard Guidance No. 10) issued by
the Accounting Standards Board of Japan.
60
Asahi Kasei Annual Report 2009
15. Business segment information:
(1) Industry segments—
Sales and operating income (loss) for the year ended March 31:
Sales:
Chemicals
Homes
Pharma
Fibers
Millions of yen
2009
Electronics
Materials &
Devices
Construction
Materials
Services,
Engineering
and
Others
Combined
Corporate
expenses
and
eliminations
Consolidated
Customers
¥ 741,486 ¥ 409,882 ¥ 119,619 ¥ 102,176 ¥ 91,721 ¥ 60,927 ¥ 27,297 ¥ 1,553,108 ¥
— ¥ 1,553,108
Intersegment
Total
15,728
71
11
1,990
654
12,676
32,567
63,697
(63,697)
—
757,214
409,952
119,630
104,166
92,375
73,603
59,864
1,616,804
(63,697)
1,553,108
Operating expenses
757,632
388,082
107,590
105,027
89,030
71,919
54,237
1,573,519
(55,370)
1,518,148
Operating income (loss)
¥
(419) ¥ 21,871 ¥ 12,040 ¥
(861) ¥ 3,345 ¥ 1,683 ¥ 5,627 ¥
43,286 ¥ (8,326) ¥
34,959
Sales:
Chemicals
Homes
Pharma
Fibers
Millions of yen
2008
Electronics
Materials &
Devices
Construction
Materials
Services,
Engineering
and
Others
Combined
Corporate
expenses
and
eliminations
Consolidated
Customers
¥ 879,235 ¥ 386,227 ¥ 111,232 ¥ 114,072 ¥ 113,267 ¥ 55,732 ¥ 37,024 ¥ 1,696,789 ¥
— ¥ 1,696,789
Intersegment
Total
14,081
86
6
2,120
1,045
11,742
27,534
56,613
(56,613)
—
893,316
386,313
111,238
116,192
114,312
67,474
64,559
1,753,402
(56,613)
1,696,789
Operating expenses
828,098
364,933
98,560
108,972
92,081
64,690
59,407
1,616,741
(47,608)
1,569,133
Operating income (loss)
¥ 65,218 ¥ 21,380 ¥ 12,678 ¥ 7,220 ¥ 22,230 ¥ 2,784 ¥ 5,151 ¥ 136,661 ¥ (9,005) ¥ 127,656
Sales:
Chemicals
Homes
Pharma
Fibers
Thousands of U.S. dollars
2009
Electronics
Materials &
Devices
Construction
Materials
Services,
Engineering
and
Others
Combined
Corporate
expenses
and
eliminations
Consolidated
Customers
$ 7,566,181 $ 4,182,465 $ 1,220,605 $ 1,042,617 $ 935,928 $ 621,700 $ 278,543 $ 15,848,038 $
— $ 15,848,038
Intersegment
160,488
723
109
20,305
6,676
129,349
332,315
649,966
(649,966)
—
Total
7,726,669
4,183,188
1,220,714
1,062,922
942,604
751,049
610,857
16,498,003
(649,966)
15,848,038
Operating expenses
7,730,944
3,960,018
1,097,861
1,071,708
908,471
733,872
553,440
16,056,313
(565,003)
15,491,309
Operating income (loss)
$
(4,274) $ 223,170 $ 122,854 $
(8,786) $ 34,133 $ 17,177 $ 57,418 $
441,690 $ (84,962) $
356,728
Identifi able assets, depreciation and amortization, impairment loss and capital expenditure as of and for the year ended March 31:
Millions of yen
2009
Chemicals
Homes
Pharma
Fibers
Electronics
Materials &
Devices
Construction
Materials
Services,
Engineering
and
Others
Combined
Corporate
assets
and
eliminations
Consolidated
Identifi able assets
¥ 583,614 ¥ 216,716 ¥ 176,699 ¥ 107,781 ¥ 115,154 ¥ 43,736 ¥ 449,637 ¥ 1,693,337 ¥ (314,000) ¥ 1,379,337
Depreciation and
amortization
Impairment loss
36,666
3,439
10,275
6,440
15,428
3,619
806
76,673
2,763
79,436
—
—
112
264
79
754
—
1,208
—
1,208
Capital expenditure
45,667
7,037
31,569
12,257
21,557
2,430
1,082
121,598
5,127
126,725
61
Millions of yen
2008
Chemicals
Homes
Pharma
Fibers
Electronics
Materials &
Devices
Construction
Materials
Services,
Engineering
and
Others
Combined
Corporate
assets
and
eliminations
Consolidated
Identifi able assets
¥ 618,877 ¥ 213,846 ¥ 142,774 ¥ 113,251 ¥ 122,310 ¥ 44,993 ¥ 332,164 ¥ 1,588,214 ¥ (162,847) ¥ 1,425,367
Depreciation and
amortization
Impairment loss
37,122
2,690
6,102
5,727
13,902
3,138
792
69,474
4,509
73,983
—
—
—
3,753
1,049
—
—
4,802
—
4,802
Capital expenditure
34,344
7,451
10,007
9,255
17,018
2,507
793
81,375
1,536
82,911
Thousands of U.S. dollars
2009
Chemicals
Homes
Pharma
Fibers
Electronics
Materials &
Devices
Construction
Materials
Services,
Engineering
and
Others
Combined
Corporate
assets
and
eliminations
Consolidated
Identifi able assets
$ 5,955,240 $ 2,211,383 $ 1,803,054 $ 1,099,811 $ 1,175,037 $ 446,290 $ 4,588,134 $ 17,278,949 $ (3,204,081) $ 14,074,868
Depreciation and
amortization
Impairment loss
374,144
35,092
104,845
65,719
157,432
36,928
8,222
782,381
28,191
810,572
—
—
1,142
2,694
801
7,691
—
12,328
—
12,328
Capital expenditure
465,988
71,803
322,135
125,069
219,972
24,792
11,036
1,240,795
52,320
1,293,115
Notes: 1. The Company’s industry segments are aggregated into seven segments based primarily upon similarities of products, services, and economic characteristics.
Chemicals —
The Company produces, processes and sells chemicals and derivative products (such as ammonia, nitric acid, caustic soda, acrylonitrile, styrene monomer, methyl methacrylate (MMA)
monomer, PMMA resin, and adipic acid), polymer products (such as Suntec™ polyethylene (PE), Stylac™-AS (styrene-acrylonitrile), Stylac™-ABS (acrylonitrile-butadiene-styrene),
synthetic rubber, Tenac™ polyacetal, Xyron™ modifi ed polyphenylene ether (mPPE), and Leona™ nylon 66 polymer and fi lament), specialty products (such as coating materials, latex,
Ceolus™ microcrystalline cellulose, explosives, explosion-bonded metal clad, APR™ photosensitive resin and printing plate making systems, Microza™ UF and MF membranes and
systems, Hipore™ microporous membrane, ion-exchange membranes and electrolysis systems, Saran Wrap™ cling fi lm, Ziploc™ storage bags, and plastic fi lms, sheets, and foams).
Homes —
The Company builds Hebel Haus™ custom-built pre-fabricated homes and Hebel Maison™ apartments, and operates related businesses such as condominiums, remodeling, real
estate, residential land development, and home fi nancing.
Pharma —
The Company produces and sells pharmaceuticals (such as Elcitonin™, Bredinin™, Flivas™, and Toledomin™), pharmaceutical intermediates, and diagnostics reagents. The Company
also manufactures APS™ artifi cial kidneys, Sepacell™ leukocyte reduction fi lters, Cellsorba™ leukocyte adsorption columns, Planova™ virus removal fi lters, and contact lenses.
Fibers —
The Company produces and sells Roica™ elastic polyurethane fi lament, nonwoven fabrics (such as Eltas™ spunbond and Lamous™ artifi cial suede), Bemberg™ cuprammonium
rayon, and polyester fi lament.
Electronics Materials & Devices —
The Company produces and sells Pimel™ photosensitive polyimide, Sunfort™ dry-fi lm photoresist (DF), photomask pellicles, LSIs, Hall elements, and glass fabric.
Construction Materials —
The Company produces and sells autoclaved aerated concrete (AAC) panels (such as Hebel™), piles, and Neoma™ foam insulation panels.
Services, Engineering and Others —
The Company provides plant engineering, environmental engineering, personnel staffi ng and placement, and think tank services.
2. Corporate operating expenses included in “Corporate expenses and eliminations” for the years ended March 31, 2009 and 2008, amounted to ¥14,726 million (US$150,263
thousand) and ¥16,149 million, respectively.
3. Corporate assets such as surplus funds (cash and deposits), long-term-investment funds (investment securities etc.), and land etc. included in “Corporate assets and eliminations” for
the years ended March 31, 2009 and 2008, amounted to ¥457,979 million (US$4,673,258 thousand) and ¥413,698 million, respectively.
4. Among impairment losses for the year ended March 31, 2009, ¥112 million (US$1,142 thousand) in Pharma and ¥754 million (US$7,691 thousand) in Construction Materials are
included in business structure improvement expenses under extraordinary losses.
5. Changes in the basis for preparation of consolidated fi nancial statements
a) Accounting Standards for Measurement of Inventories
The Accounting Standards Board of Japan (ASBJ) issued ASBJ Statement No. 9, “Accounting Standards for Measurement of Inventories.” The Company has adopted the Standard,
effective from the fi scal year ended March 31, 2009, while inventories were stated at the lower of cost or market value (residential lots and dwellings of sale were stated at specifi cally
identifi ed costs) until previous years. The Standard requires that inventories held for sale in the ordinary course of business are stated at the lower of cost or net sales value.
The effect by segment of the change to statement of inventories at the lower of cost or net sales value is that operating income is lower by ¥9,286 million (US$94,751 thousand)
in Chemicals, ¥2,536 million (US$25,882 thousand) in Homes, ¥862 million (US$8,794 thousand) in Pharma, ¥174 million (US$1,777 thousand) in Fibers, ¥53 million (US$542
thousand) in Electronics Materials & Devices, and ¥11 million (US$114 thousand) in Services, Engineering and Others than they would have been using the previous method.
The effect by segment of the change to recording loss on disposal of inventories under cost of sales is that operating income is lower by ¥1,055 million (US$10,765 thousand)
in Chemicals, ¥15 million (US$155 thousand) in Homes, ¥1,008 million (US$10,281 thousand) in Pharma, ¥183 million (US$1,865 thousand) in Fibers, ¥1,598 million (US$16,311
thousand) in Electronics Materials & Devices, ¥68 million (US$696 thousand) in Construction Materials, and ¥6 million (US$61 thousand) in Services, Engineering and Others than
they would have been using the previous method. As a result, consolidated operating income is lower by ¥3,933 million (US$40,134 thousand).
b) Change in translation method of income and expenses of foreign subsidiaries and affi liates
Previously income and expense accounts of foreign subsidiaries and affi liates were translated at the prevailing exchange rates at fi scal year end of the subsidiaries and the affi liates.
However, effective from the fi scal year ended March 31, 2009, the conversion rate into reporting currency in Japanese yen is changed to use the average exchange rate during
the period.
The effect by segment of the change to conversion of sales and costs at foreign subsidiaries and affi liates to yen at the average market value during the fi scal period is that
net sales are higher by ¥16,847 million (US$171,909 thousand) in Chemicals, ¥3,052 million (US$31,144 thousand) in Fibers, ¥1,542 million (US$15,730 thousand) in Electronics
Materials & Devices, and ¥64 million (US$656 thousand) in Services, Engineering and Others than they would have been using the previous method, and that operating income is
higher by ¥877 million (US$8,954 thousand) in Chemicals, ¥27 million (US$280 thousand) in Pharma, ¥57 million (US$577 thousand) in Fibers, ¥270 million (US$2,758 thousand)
in Electronics Materials & Devices, and ¥3 million (US$28 thousand) in Services, Engineering and Others than they would have been using the previous method. As a result,
consolidated sales is higher ¥21,505 million (US$219,439 thousand) and consolidated operating income is higher by ¥1,235 million (US$12,597 thousand).
62
Asahi Kasei Annual Report 2009
(2) Geographic areas—
Total sales and assets of consolidated subsidiaries located in countries or regions outside of Japan as of and for the years ended
March 31, 2009 and 2008, were not signifi cant.
(3) Overseas sales—
Overseas sales for the years ended March 31, 2009 and 2008, were as follows:
Millions of yen
Thousands of U.S. dollars
2009
2008
East Asia
Others
Total
East Asia
Others
Total
East Asia
2009
Others
Total
Overseas sales
¥233,219 ¥160,746
¥393,965 ¥287,862 ¥199,475
¥487,337 $2,379,784 $1,640,263
$4,020,047
Consolidated net sales
—
— 1,553,108
—
— 1,696,789
—
— 15,848,038
Percentage of consolidated
net sales (%)
15.0%
10.3%
25.4%
17.0%
11.8%
28.7%
Notes: 1. Geographical distance is considered in the classifi cation of country or area.
2. Major countries or areas included in each category are as follows;
East Asia: China, Korea, and Taiwan
Others: Southeast Asia (except East Asia), U.S.A., Europe, and others.
3. Overseas sales represent the sales of the Company to countries and areas outside of Japan.
16. Reconciliation of the differences between basic and diluted net income per share:
Reconciliation of the differences between basic and diluted net income per share for the years ended March 31, 2009 and 2008, was
as follows:
Basic net assets per share
Basic net income per share
(a) Net assets per share
Total net assets
Amount deducted from total net assets
Of which, minority interest
Net assets allocated to capital stock
Yen
2009
¥ 431.77
¥ 3.39
2008
¥ 476.39
¥ 50.01
Millions of yen
2009
2008
U.S. dollars
2009
$ 4.41
$ 0.03
Thousands of
U.S. dollars
2009
¥ 611,351
¥ 674,156
$ 6,238,271
7,504
7,504
7,912
7,912
76,575
76,575
¥ 603,846
¥ 666,244
$ 6,161,696
Number of shares of capital stock outstanding at fi scal year end used in calculation
of net assets per share (thousand)
1,398,546
1,398,536
1,398,546
(b) Net income per share
Net income
Amount not allocated to capital stock
Net income allocated to capital stock
Millions of yen
2009
¥ 4,745
2008
¥ 69,945
—
—
¥ 4,745
¥ 69,945
Thousands of
U.S. dollars
2009
$ 48,414
—
$ 48,414
Weighted-average number of shares of capital stock (thousand)
1,398,428
1,398,704
1,398,428
As the Company had no dilutive securities at March 31, 2009 and 2008, the Company does not disclose diluted net income for the
years ended March 31, 2009 and 2008.
63
17. Subsequent events:
(1) Acquisition of company etc. through purchase of shares
On April 1, 2009, Asahi Kasei Microdevices Corp., subsidiary of
Asahi Kasei Corp., purchased 80% of the issued and outstanding
shares of Tateyama Device Inc. from Toko Inc. based on an agree-
ment concluded on February 4, 2009, pertaining to share transfer,
etc. Based on said agreement, Asahi Kasei Microdevices Corp. is
scheduled to purchase the remaining issued and outstanding
shares (20%) from Toko Inc., in principle three years later.
ii. From Asahi Kasei Chemicals Corp.
(cid:129) Hipore & Battery Materials Division (Hipore™ Li-ion
rechargeable battery separators)
(cid:129) Photoproducts & Epoxy Resins Division (APR™
photopolymer and printing plate making systems, etc.)
(cid:129) Portions of Polymer Products Division (light diffusion plates)
iii. From Asahi Kasei EMD Corp.
(cid:129) Electronics Materials Division (Pimel™ photosensitive
a) Reason for company acquisition through purchase of shares
It was determined that the IP cores and process technology
related to power management semiconductors included in the
acquired business would enable synergies in product develop-
ment, and that it would be effective to utilize the company’s
commercial record in overseas markets in the further expansion
of business in European and American markets.
b) Name of company from which shares were acquired
Toko Inc.
c) Acquired company name
Tateyama Device Inc.
d) Nature of business acquired
All semiconductor operations of Toko Inc. and its subsidiaries.
e) Scale of business acquired
The consolidated net sales of the semiconductor operations of
Toko Inc. in the fi scal year ended March 31, 2008, were ¥15.6
billion.
f) Number of shares purchased, purchase price
Of the 2,000 issued and outstanding shares of Tateyama
Device Inc., 1,600 shares were purchased on April 1, 2009.
The purchase price is currently being calculated based on the
March 31, 2009, book value of assets and liabilities transferred
from Toko Inc.
(2)
Change in classifi cation of businesses within
industry segments
Reconfi guration of electrochemicals-related operations
Asahi Kasei E-materials Corp. was established in April 1, 2009,
by business split of Asahi Kasei Chemicals Corp. and Asahi Kasei
EMD Corp. (renamed Asahi Kasei Microdevices Corp. on April 1,
2009). Beginning with the year ended March 31, 2010, the business
of Asahi Kasei E-materials Corp. will be in the Electronics segment
based on the similarity of product types and characteristics to
those of electronics operations.
a. Main organizational entities transferred
i. From Asahi Kasei Corp.
Marketing Center for FPC/FPD Materials, New Business
Development
polyimide precursor)
(cid:129) Electronics Interconnecting Materials Division (Sunfort™ dry
fi lm photoresist)
(cid:129) Electronics Insulation Materials Division (glass fabric for
printed wiring boards)
(cid:129) Electronics Performance Products Division (photomask
pellicles, etc.)
Note: No segment change for the entities listed under iii., above.
b. Effect of segment reclassifi cation (based on results for the year
ended March 31, 2009).
i. From corporate expenses and eliminations to Electronics
segment
Operating income
Assets
Millions of yen
¥ (2,817)
2,615
Thousands of
U.S. dollars
$ (28,745)
26,684
ii. From Chemicals segment to Electronics segment
Net sales
Operating income
Assets
Millions of yen
¥ 37,934
6,758
39,782
Thousands of
U.S. dollars
$ 387,082
68,959
405,939
Transfer of Leona fi lament business
On April 1, 2009, Asahi Kasei Chemicals Corp., operating the
Company’s Leona™ businesses, performed a reorganization
related to the Leona™ fi lament business, transferring said business
to Asahi Kasei Fibers Corp, operating fi bers businesses. As a
result, beginning with the fi scal year ending March 31, 2010, the
Leona™ fi lament business will be included in the Fibers segment.
a) Business transferred
Nylon 66 fi lament
b) Effect of segment reclassifi cation
Net sales
Operating income
Assets
Millions of yen
¥ 14,229
(648)
12,108
Thousands of
U.S. dollars
$ 145,194
(6,612)
123,551
64
Asahi Kasei Annual Report 2009
18. Borrowings:
(1) Bonds payable at March 31, 2009 and 2008, comprised the following:
Unsecured 1.02% to 2.15% yen bonds due 2008 to 2009
Unsecured 0.29% to 2.83% Euro yen bonds due 2007 to 2009
Unsecured 2.45%, US$1.90% to 3.10% reversal dual currency Euro yen bonds
due 2008 to 2013
Notes: 1. Current portion of bonds payable is recorded under current liabilities on the consolidated balance sheets.
2. In the case of fl oating interest rates, the rate at the end of March is shown.
3. The interest rates of Euro yen bonds paid in yen and paid in US dollars are shown separately.
4. The aggregate annual maturities of long-term debt after March 31, 2009, are as follows:
2009
2010
2011
2012
2013 and thereafter
(2) Loans payable at March 31, 2009 and 2008, are comprised of the following:
Short-term loans payable with interest rate 1.23%
Current portion of long-term loans payable with interest rate 1.63%
Current portion of lease obligations with interest rate 2.38%
Millions of yen
2009
¥ 20,000
—
5,000
¥ 25,000
2008
¥ 35,000
4,000
11,000
¥ 50,000
Millions of yen
¥ 20,000
—
—
—
5,000
¥ 25,000
Millions of yen
2009
¥ 78,373
22,413
489
2008
¥ 34,116
9,104
—
Long-term loans payable (except portion due within one year) with interest rate 1.42%
132,474
63,187
Lease obligations (except portion due within one year) with interest rate 2.39%
Commercial papers with interest rate 0.57%
1,845
55,000
¥ 290,594
—
55,000
¥ 161,407
Notes: 1. Interest rates shown are weighted average interest rates for the balance outstanding at the end of March.
2. The aggregate annual maturities of long-term loans payable and lease obligations (except portion due within one year) after March 31, 2009, are as follows:
Thousands of
U.S. dollars
2009
$ 204,082
—
51,020
$ 255,102
Thousands of
U.S. dollars
$ 204,082
—
—
—
51,020
$ 255,102
Thousands of
U.S. dollars
2009
$ 799,726
228,707
4,987
1,351,776
18,825
561,224
$ 2,965,246
Year ending March 31
2010
2011
2012
2013
2014 and thereafter
Long-term loans payable
Lease obligations
Millions of yen
¥ 14,839
30,217
29,704
23,229
34,485
Thousands of
U.S. dollars
$ 151,421
308,337
303,100
237,036
351,883
Millions of yen
¥ 500
512
517
307
8
Thousands of
U.S. dollars
$ 5,106
5,526
5,274
3,134
8
65
66
Asahi Kasei Annual Report 2009
Major Subsidiaries and Affi liates
As of April 1, 2009
Company
Chemicals Segment
Asahi Kasei Chemicals Corp.*
Sanyo Petrochemical Co., Ltd.*
Asahi Kasei Pax Corp.*
Main products/business line
Chemicals
Benzene, ethylene
Packaging products and solutions
Asahi Kasei Home Products Corp.*
Cling fi lm, other household products
Asahi Kasei Metals Ltd.
Asahi Kasei Finechem Co., Ltd.*
Aluminum paste
Specialty chemicals
Asahi Kasei Geotechnologies Co., Ltd.
Sale of industrial explosives, civil engineering materials
Asahi SKB Co., Ltd.
Shotgun cartridges
Asahi Kasei Clean Chemical Co., Ltd.
Water treatment equipment, environmental chemicals
Asahi Kasei Technoplus Co., Ltd.*
Processing and sale of plastic and fi ber
Japan Elastomer Co., Ltd.*
Synthetic rubber
Sundic Inc.
Biaxially oriented polystyrene sheet
Wacker Asahikasei Silicone Co., Ltd.
Silicone
Okayama Chemical Co., Ltd.
Kayaku Japan Co., Ltd.
PS Japan Corp.
Chisso Asahi Fertilizer Co., Ltd.
Caustic soda, chlorine
Industrial explosives
Polystyrene
Fertilizer
Asahi Organic Chemicals Industry Co., Ltd.
Synthetic resin, fabricated plastic products
Asahikasei Plastics (America) Inc.*
Compounded performance resin operations
Asahi Kasei Plastics North America, Inc.*
Coloring and compounding of performance resin
Sun Plastech Inc.*
Sale of purging compound
Tong Suh Petrochemical Corp., Ltd.*
Acrylonitrile, sodium cyanide
Asahi Kasei Chemicals Korea Co., Ltd.
Adipic acid
Asahikasei Plastics (Shanghai) Co., Ltd.
Sale of performance resin
Asahikasei (Suzhou) Plastics Compound Co., Ltd. Coloring, compounding, and sale of performance resin
Asahi-DuPont POM (Zhangjiagang) Co., Ltd.
Polyacetal
Asahi Kasei Performance Chemicals Corp.*
High-performance HDI-based polyisocyanate
Asahi Kasei Microza (Hangzhou) Co., Ltd.*
Industrial membranes and systems
Asahi Kasei Plastics (Hong Kong) Co., Ltd.
Sale of performance resin
Asahi Kasei Plastics Singapore Pte. Ltd.*
Performance resin
Polyxylenol Singapore Pte. Ltd.*
PPE powder
Paid-in capital
(million)
Equity
interest (%)
¥
¥
¥
¥
¥
¥
¥
¥
¥
¥
¥
¥
¥
¥
¥
¥
¥
¥
3,000
100.0
2,000
100.0
490
250
250
175
132
100
100
160
1,000
1,050
1,050
1,000
60
5,000
305
5,000
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.4
75.0
50.0
50.0
50.0
50.0
45.0
35.0
30.1
US$
US$
US$
17.8** 100.0
21.7** 100.0
1.0
100.0
W 50,642
100.0
W
1,500
100.0
CNY
CNY
US$
CNY
CNY
HK$
US$
US$
18
50
32.0
100.0
51.0
50.0
149
100.0
49
20
46.0
35.0
100.0
100.0
100.0
70.0
Asahikasei Plastics (Thailand) Co., Ltd.
Coloring, compounding, and sale of performance resin
B
140
100.0
PT Nippisun Indonesia
Coloring, compounding, and sale of styrenic resin
Asahi Kasei Plastics Europe SA/NV*
Sale of compounded performance resin
US$
A
6.3
5.0
25.7
100.0
Homes Segment
Asahi Kasei Homes Corp.*
Asahi Kasei Jyuko Co., Ltd.*
Asahi Kasei Mortgage Corp.*
Asahi Kasei Reform Co., Ltd.*
Asahi Kasei Real Estate, Ltd.*
Health Care Segment
Asahi Kasei Pharma Corp.*
Housing
Steel frames
Financial services
Home maintenance and remodeling
Home leasing, real estate brokerage
Pharmaceuticals, medical products
Asahi Kasei Kuraray Medical Co., Ltd.*
Hemodialyzers, therapeutic apheresis devices
Asahi Kasei Medical Co., Ltd.*
Medical devices, medical systems
Asahikasei Aime Co., Ltd.*
Asahi Kasei TechniKrom, Inc.*
Contact lenses
Bioprocess equipment and systems
Asahi Kasei Medical America Inc.
Sale of medical devices, medical systems
* Consolidated subsidiary
** Including capital reserve
¥
¥
¥
¥
¥
¥
¥
¥
¥
3,250
100.0
2,820
100.0
1,000
100.0
250
200
100.0
100.0
3,000
100.0
800
200
480
93.0
100.0
100.0
US$
US$
30.0
100.0
0.5
93.0
67
Paid-in capital
(million)
Equity
interest (%)
CNY
A
A
A
¥
¥
Company
Main products/business line
Asahi Kasei Medical (Hangzhou) Co., Ltd.*
Hemodialyzers
Asahi Kasei Medical Europe GmbH
Sale of medical devices, medical systems
Asahi Kasei Planova Europe SA/NV
Sale of virus removal fi lters
Asahi Pharma Spain, SL
Fibers Segment
Asahi Kasei Fibers Corp.*
Kyokuyo Sangyo Co., Ltd.*
Asahi Kasei AGMS Corp.*
Pharmaceuticals
Fiber, textiles
Processing and sale of fi ber, textiles
Computerized grading, marking, and pattern-making systems ¥
DuPont-Asahi Flash Spun Products Co., Ltd.
Flash spun
Asahi Kasei Spandex America, Inc.*
Hangzhou Asahikasei Spandex Co., Ltd.*
Spandex
Spandex
Hangzhou Asahikasei Textiles Co., Ltd.*
Warp-knit spandex textiles
Formosa Asahi Spandex Co., Ltd.
Spandex
Asahi Chemical (HK) Ltd.*
Promotion and marketing of fi ber and textiles
Thai Asahi Kasei Spandex Co., Ltd.*
Asahi Kasei Spandex Europe GmbH*
Spandex
Spandex
Asahi Kasei Fibers Italy SRL*
Sale of spandex and cupro cellulosic fi ber
Asahi Kasei Fibers Deutschland GmbH
Sale of artfi cial suede
Electronics Segment
Asahi Kasei Microdevices Corp.*
Asahi Kasei E-materials Corp.*
Asahi Kasei Epoxy Co., Ltd.*
Asahi Kasei Microsystems Co., Ltd.*
Asahi-Schwebel Co., Ltd.*
Asahi Kasei Electronics Co., Ltd.*
Electronic devices
Electronic materials
Epoxy resin
LSIs
Glass fabric
Hall elements
Asahi Kasei Toko Power Devices Corp.*
Power management semiconductors
AKM Semiconductor, Inc.*
Asahi Kasei EMD Korea Corp.
Sale of LSIs
Sale of pellicles
Asahi Kasei Electronics Materials (Suzhou) Co., Ltd.* Dry fi lm photoresist
Asahi Kasei EMD Taiwan Corp.
Sale of pellicles
Asahi Kasei Wah Lee Hi-Tech Corp.*
Dry fi lm photoresist
Asahi-Schwebel (Taiwan) Co., Ltd.*
Glass fabric
Asahi Photoproducts (Europe) SA/NV*
Sale of photopolymer, printing-plate making systems
Asahi Photoproducts (UK) Ltd.*
Sale of photopolymer, printing-plate making systems
Construction Materials Segment
Asahi Kasei Construction Materials Corp.*
Construction materials
Asahi Kasei Foundation Systems Corp.*
Installation of piles
Services, Engineering and Others Segment
Asahi Research Center Co., Ltd.*
Information and analysis
Asahi Finance Co., Ltd.*
Investment, fi nance
Asahi Kasei Engineering Co., Ltd.*
Plant, equipment, process engineering
Asahi Kasei Trading Co., Ltd.*
Sun Trading Co., Ltd.*
Asahi Kasei Amidas Co., Ltd.*
AJS Inc.
Asahi Kasei America, Inc.*
Sale of Asahi Kasei products
Sale of Asahi Kasei products
Employment agency, consulting
Computer software, IT systems
Business support services
Asahi Kasei Business Management (Shanghai) Co., Ltd. Business support services
* Consolidated subsidiary
** Including capital reserve
¥
US$
CNY
CNY
NT$
HK$
B
A
A
A
¥
¥
¥
¥
¥
¥
¥
US$
W
CNY
NT$
NT$
NT$
A
£
¥
¥
¥
¥
¥
¥
¥
¥
¥
US$
US$
163
0.2
0.2
0.1
93.0
93.0
100.0
100.0
3,000
100.0
80
50
100.0
100.0
450
50.0
32.3** 100.0
132
100.0
78
801
82.5
50.0
65
100.0
1,350
60.0
19.6** 100.0
3.0
0.3
100.0
100.0
3,000
100.0
3,000
100.0
300
100.0
50
50
50
100
2.9
820
181
1
49
326
3.4
0.3
100.0
100.0
100.0
80.0
100.0
100.0
100.0
100.0
80.6
51.0
100.0
100.0
3,000
100.0
200
100.0
1,000
100.0
800
400
98
94
80
800
0.1
3.0
100.0
100.0
100.0
100.0
100.0
49.0
100.0
100.0
68
Asahi Kasei Annual Report 2009
Corporate Profi le
As of March 31, 2009
Company Name
Asahi Kasei Corporation
Date of Establishment
May 21, 1931
Paid-in Capital
¥103,388,521,767
Employees
24,244 (consolidated)
823 (non-consolidated)
Asahi Kasei Group Offi ces
Asahi Kasei Corporation
Core Operating Companies
Tokyo Head Offi ce
1-105 Kanda Jinbocho, Chiyoda-ku
Tokyo 101-8101 Japan
Phone: +81-3-3296-3000
Fax: +81-3-3296-3161
Osaka Head Offi ce*
3-3-23 Nakanoshima, Kita-ku
Osaka 530-8205 Japan
Phone: +81-6-7636-3111
Fax: +81-6-7636-3077
Beijing Offi ce
Room 1407
New China Insurance Tower
No.12 Jian Guo Men Wai Avenue
Chao Yang District
Beijing 100022 China
Phone: +86-10-6569-3939
Fax: +86-10-6569-3938
Shanghai Offi ce
Room 2321
Shanghai Central Plaza
381 Huaihai Zhong Road
Shanghai 200020 China
Phone: +86-21-6391-6111
Fax: +86-21-6391-6686
Asahi Kasei America, Inc.
535 Madison Avenue, 33rd Floor
New York, NY 10022 USA
Phone: +1-212-371-9900
Fax: +1-212-371-9050
Asahi Kasei Chemicals
1-105 Kanda Jinbocho, Chiyoda-ku
Tokyo 101-8101 Japan
Phone: +81-3-3296-3200
Asahi Kasei Homes
1-24-1 Nishi-shinjuku, Shinjuku-ku
Tokyo 160-8345 Japan
Phone: +81-3-3344-7111
Asahi Kasei Pharma
1-105 Kanda Jinbocho, Chiyoda-ku
Tokyo 101-8101 Japan
Phone: +81-3-3296-3600
Asahi Kasei Kuraray Medical
1-105 Kanda Jinbocho, Chiyoda-ku
Tokyo 101-8101 Japan
Phone: +81-3-3296-3750
Asahi Kasei Medical
1-105 Kanda Jinbocho, Chiyoda-ku
Tokyo 101-8101 Japan
Phone: +81-3-3296-3750
Asahi Kasei Fibers*
3-3-23 Nakanoshima, Kita-ku
Osaka 530-8205 Japan
Phone: +81-6-7636-3500
Asahi Kasei Microdevices†
1-105 Kanda Jinbocho, Chiyoda-ku
Tokyo 101-8101 Japan
Phone: +81-3-3296-3911
Asahi Kasei E-materials‡
1-105 Kanda Jinbocho, Chiyoda-ku
Tokyo 101-8101 Japan
Phone: +81-3-3296-3939
Asahi Kasei Construction Materials
1-105 Kanda Jinbocho, Chiyoda-ku
Tokyo 101-8101 Japan
Phone: +81-3-3296-3500
* Moved to this address on May 7, 2009.
† Renamed from Asahi Kasei EMD on April 1, 2009.
‡ Began operation as a core operating company on April 1, 2009.
69
Investors Information
As of March 31, 2009
Stock Listings
Stock Code
Tokyo, Osaka, Nagoya, Fukuoka, Sapporo
3407
Authorized Shares
4,000,000,000
Outstanding Shares
1,402,616,332
Transfer Agent
Sumitomo Trust & Banking Co., Ltd.
4-5-33 Kitahama, Chuo-ku
Osaka 541-8639 Japan
Independent Auditors
PricewaterhouseCoopers Aarata
Number of Shareholders
133,188
Largest Shareholders
% of equity*
Master Trust Bank of Japan, Ltd. (trust account)
Japan Trustee Services Bank, Ltd. (trust account 4G)
Japan Trustee Services Bank, Ltd. (trust account)
Nippon Life Insurance Co.
Employees’ Stockholding
Sumitomo Mitsui Banking Corp.
Tokio Marine & Nichido Fire Insurance Co., Ltd.
Meiji Yasuda Life Insurance Co.
Mizuho Corporate Bank, Ltd.
Sumitomo Life Insurance Co.
* Percentage of equity ownership after exclusion of treasury stock.
6.18
6.03
5.75
5.22
2.84
2.53
2.22
1.49
1.45
1.40
Distribution by Type of Shareholder
Distribution by Number of Shares Held
Japanese financial institutions
49.39%
Foreign investors
21.19%
100,000 or more
78.56%
Japanese individuals and groups 24.08%
Japanese securities companies
0.73%
10,000–99,999
1,000–9,999
7.43%
13.62%
Other Japanese companies
4.61%
Less than 1,000
0.39%
In this annual report, the TM symbol indicates a trademark or registered trademark of Asahi Kasei Corporation,
affi liated companies, or third parties granting rights to Asahi Kasei Corporation or affi liated companies.
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9
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www.asahi-kasei.co.jp
Corporate Communications
Tel: +81-3-3296-3008, Fax: +81-3-3296-3162
This annual report was printed with
vegetable-based ink on recycled paper.
Printed in Japan
2009.10